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Te Tahua Taungahuru Te Mahere Taungahuru 2018-2028
The 10-year Budget Long-term Plan 2018-2028

Volume 2: Our detailed budgets, strategies and policies

He Mihi

Tērā tō waka te hoea ake e koe i te moana o te Waitematā kia ū mai rā ki te ākau i Ōkahu.
Ki reira, ka mihi ake ai ki ngā maunga here kōrero,
ki ngā pari whakarongo tai,
ki ngā awa tuku kiri o ōna manawhenua, ōna mana ā-iwi taketake mai, tauiwi atu.
E koro mā, e kui mā i te wāhi ngaro, ko Tāmaki Makaurau tā koutou i whakarere iho ai, ki ngā reanga whakaheke,
ki ngā uri whakatupu – ki tō iti, ki tō rahi.
Tāmaki – makau a te rau, murau a te tini, wenerau a te mano. Kāhore tō rite i te ao.
Tō ahureinga titi rawa ki ngā pūmanawa o mātou kua whakakāinga ki roto i a koe.
Kua noho mai koe hei toka herenga i ō mātou manako katoa.
Kua ūhia nei mātou e koe ki te korowai o tō atawhai, ki te āhuru o tō awhi, ki te kuku rawa o tō manawa.
He mea tūturu tonu whakairihia, hei tāhuhu mō te rangi e tū iho nei, hei whāriki mō te papa e takoto ake nei.
Kia kōpakina mātou e koe ki raro i te whakamarumaru o āu manaakitanga.
E te marae whakatutū puehu o te mano whāioio, e rokohanga nei i ngā muna, te huna tonu i ō whāruarua
i ngā hua e taea te hauhake i ō māra kai, i ngā rawa e āhei te kekerihia i ō pūkoro. Te mihia nei koe e mātou.
Tāmaki Makaurau, ko koe me tō kotahi i te ao nei, nōku te māringanui kia mōhio ki a koe, kia miria e te kakara o
te hau pūangi e kawe nei i ō rongo.
Ka whītiki nei au i taku hope ki ngā pepehā o onamata, ki ōku tūmanako mō āpōpō me ōku whakaritenga kua
tutuki mō te rā nei.
Tāmaki Makaurau, tukuna tō wairua kia rere.

Let your canoe carry you across the waters of the Waitematā until you make landfall at Ōkahu.
There, to greet the mountains, repository of all that has been said of this place,
there to greet the cliffs that have heard the ebb and flow of the tides of time, and the rivers that cleansed the forebears
of all who came,
those born of this land and the newcomers among us all.
To all who have passed into realms unseen, Auckland is the legacy you leave to those who follow,
your descendants – the least, yet, greatest part of you all.
Auckland – beloved of hundreds, famed among the multitude, envy of thousands. You are unique in the world.
Your beauty is infused in the hearts and minds of those of us who call you home.
You remain the rock upon which our dreams are built.
You have cloaked us in your care, taken us into the safety of your embrace, to the very soul of your existence.
It is only right that you are held in high esteem, the solid ground on which all can stand. You bestow your benevolence
on us all.
The hive of industry you have become motivates many to delve the undiscovered secrets of your realm,
the fruits that can still be harvested from your food stores and the resources that lie fallow in your fields.
We thank you.
Auckland you stand alone in the world, it is my privilege to know you,
to be brushed by the gentle breeze that carries the fragrance of all that is you.
And so I gird myself with the promises of yesteryear, my hopes for tomorrow and my plans for today.

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 nonregulatory 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
Contents

Volume 2: Our detailed budgets, strategies and policies

Pae tuatahi: Ngā rautaki matua
Part 1: Our key strategies
1.1 Summary of The Auckland Plan 2050
1.2 Māori Identity and Wellbeing
1.3 Infrastructure Strategy
1.4 Financial Strategy

Pae tuarua: Ā mātou mahi
Part 2: Our activities
2.0 Activities overview
2.1 Roads and footpaths
2.2 Public Transport and travel demand management
2.3 Water supply
2.4 Wastewater treatment and disposal
2.5 Stormwater management
2.6 Local council services
2.7 Regionally delivered council services
2.8 Council controlled services

Pae tuatoru: Ō mātou kaupapa here
Part 3: Our policies
3.1 Revenue and Financing policy
3.2 Prospective funding impact statement
3.3 Financial reporting and prudence benchmarks
3.4 Local Boards Funding Policy
3.5 Allocation of decision making responsibility for non-regulatory activities
3.6 Summary of Significance and Engagement policy
3.7 CCO Accountability Policy

Pae tuawha: Kawanatanga kotahi
Part 4: Co-governance
4.0 Summary of the Tūpuna Maunga Operational Plan 2018/2019

Pae tuarima: Ngā rōpū e here ana ki te kaunihera
Part 5: Our council controlled organisations
5.1 Overview of Auckland Council CCOs

Pae tuaono: Purongo tāpiri
Part 6: Supplementary information
6.1 Glossary of terms

1.1 Summary of The Auckland Plan 2050 –Tāmaki Makaurau in the future

This section summarises The Auckland Plan 2050 which was adopted on 5 June 2018.

The Auckland Plan includes outcome measures to cover things such as housing delivery, employment and greenhouse gas emissions which the council contributes towards but is not wholly responsible for. We are continuing to work with central government on the development of suitable targets for these outcome measures. We are also developing a performance management framework with clear linkages between these outcome measures and our contribution to these outcomes as represented by the performance information in our Groups of Activity statements (found in Part 2 of this volume).

Auckland’s key challenges

Auckland is a culturally diverse and vibrant region with a stunning natural environment, thriving urban area and productive rural land. As the largest commercial centre in New Zealand, it contributes almost 40 per cent of New Zealand’s GDP. 

Over 1.6 million people of more than 120 different ethnicities live in Tāmaki Makaurau. While there will be more children and young people living in Auckland in the future, the proportion of Aucklanders who are children and young people will decrease. The number of older Aucklanders (those aged 65 and over) is projected to more than double in the decades between 2013 and 2043.  Auckland’s population is expected to be around two million people by 2028 and 2.4 million by 2048.

The speed and scale of Auckland’s continuing growth brings three key challenges:

  • Population growth and its implications
    Population growth is outstripping the ability to provide enough housing and supporting infrastructure (transport, water, wastewater, libraries, community facilities, parks etc). It puts pressure on our communities, our environment, our housing and our roads. It means increasing demand for space, infrastructure and services. We need to find new ways to pay for the critical infrastructure necessary to build new communities and support existing communities and more people with the right skills to deliver that infrastructure.
  • Sharing prosperity with all Aucklanders
    Auckland's success is dependent on how well Auckland's prosperity is shared. Many Aucklanders are prosperous and have high living standards yet there are significant levels of socio-economic deprivation across Auckland, 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.
  • Reducing environmental degradation
    Much of Auckland's appeal is based on the natural environment. Auckland's significant features include harbours, beaches, lakes, coastline, maunga, rain-forest clad ranges, and the Hauraki Gulf islands. They are part of our cultural heritage and are an important part of Auckland's identity. But they are vulnerable to degradation from the impacts of human activities. Despite regulation and considerable effort, Auckland's environment continues to be affected by past decisions, and its rapid growth and development. Many of our environmental indicators are in decline. We need to improve the health of our environment and continue to improve our resilience to emerging threats such as climate change effects. Each delay in making sustainable decisions means fewer and fewer opportunities to halt the decline in our already stressed environment.

The Auckland Plan 2050 sets out 20 directions and 37 focus areas that will address these challenges over the next 30 years, and that will give life to six broad outcomes Aucklanders told us mattered most to them.

Tāmaki Makaurau in the future

The Auckland Plan 2050 sets the direction for improving the social, economic, environmental and cultural wellbeing of Aucklanders into the future through six outcomes and the Development Strategy.

Outcome

Outcome description

Belonging and Participation

All Aucklanders will be part of and contribute to society, access opportunities, and have the chance to develop to their full potential

 

Māori Identity and Wellbeing

A thriving Māori identity is Auckland’s point of difference in the world – it advances prosperity for Māori and benefits all Aucklanders

 

Homes and Places

Aucklanders live in secure, healthy, and affordable homes, and have access to a range of inclusive public places

 

Transport and Access

Aucklanders will be able to get where they want to go more easily, safely and sustainably

 

Environment and Cultural Heritage

Aucklanders preserve, protect and care for the natural environment as our shared cultural heritage, for its intrinsic value, and for the benefit of present and future generations

 

Opportunity and Prosperity

Auckland is prosperous with many opportunities and delivers a better standard of living for everyone

 

The Auckland Plan 2050 also sets out our Development Strategy, Auckland’s plan for how we will physically manage growth and change until 2050, including how we will sequence growth and development. It takes account of the outcomes we want to achieve, as well as population growth projections and what the Auckland Unitary Plan allows for. It provides a pathway for Auckland’s future physical development and a framework to align planning and infrastructure provision. This includes:

  • significant redevelopment and intensification in areas that are already developed
  • newly established communities in the future urban areas
  • enabling business growth by supporting flexible and adaptable business areas
  • limiting residential growth in rural areas to ensure that rural production can continue and develop, while maintaining rural values.
How do the 10-year Budget 2018-2028 and Auckland Plan 2050 fit together?

The Auckland Plan 2050 sets our long-term direction for the next 30 years. It looks at the important challenges we need to address and recommends ways in which Aucklanders and others involved in the future of Auckland can best respond to the big issues our region faces. Auckland Council is required by law to prepare and develop this plan with, and on behalf of all Aucklanders, and we all have a shared responsibility for implementing it.

The 10-year Budget outlines Auckland Council’s funding priorities and sets out how we’re going to pay for them to deliver our contribution to the Auckland Plan 2050.  Auckland’s councillors make decisions through the 10-year Budget process on what will be funded and when funding will be available, and how much ratepayers, residents and other users will contribute to delivering on different outcomes in the Auckland Plan 2050.

How will this 10-year Budget contribute to the Auckland Plan 2050?

The Auckland Plan 2050, adopted in June 2018, sets out Auckland’s strategic direction.  Auckland Council has worked closely with central government during its development and will continue to do so through the plan’s implementation, particularly where we have shared implementation roles. The work to update the 2012 Auckland Plan has been timed to ensure that there are opportunities for the new directions and approaches in the Auckland Plan 2050 to be reflected in Auckland Council’s 10-year Budget 2018-2028 decisions and also in the new government’s first budget cycle.

Auckland Plan 2050 outcome: Belonging and Participation

All Aucklanders will be part of and contribute to society, access opportunities, and have the chance to develop to their full potential.

We have a diverse population in terms of ethnicity and national origin, culture, religion, lived experience, socio-economic status, gender, gender identity, sexual orientation, disability, age, and rural or urban location. To ensure positive life experiences for all Aucklanders, we need to be open to learning about and valuing differences, and to understand our shared and different histories.  This will lead to living together with greater acceptance, trust and mutual respect, and people working together to create a shared future.

We will achieve this outcome by:

  • fostering an inclusive Auckland where everyone belongs
  • improving the health and wellbeing for all Aucklanders by reducing harm and disparities in opportunities

In practice this means:

  • creating safe opportunities for people to meet, connect, participate in and enjoy community and civic life
  • providing accessible services and social and cultural infrastructure that are responsive in meeting peoples’ evolving needs
  • supporting and working with communities to develop the resilience to thrive in a changing world
  • valuing and providing for Te Tiriti o Waitangi / the Treaty of Waitangi as the bicultural foundation for an inter-cultural Auckland
  • recognising, valuing and celebrating Aucklanders’ differences as a strength
  • focussing investment to address disparities and serve communities of greatest need 
  • recognising the value of arts, culture, sport and recreation to quality of life.

We will measure success across this outcome by evaluating:

  • Aucklanders' sense of community in their neighbourhood
  • Aucklanders' sense of safety in their homes and neighbourhood
  • Aucklanders’ quality of life
  • relative deprivation across Auckland
  • Aucklanders’ health
  • Te Tiriti o Waitangi / Treaty of Waitangi awareness and understanding.

This 10-year Budget will contribute to this outcome by providing safe and accessible parks, reserves and beaches, and sport and recreation programmes and opportunities to get Aucklanders more active, more often.  It also provides opportunities for people to meet, connect and participate in and enjoy community and civic life through support for community organisations, providing community facilities and services and funding events that celebrate Auckland’s diversity.  

Specific initiatives supporting this outcome funded in this 10-year Budget include:

  • the establishment of a Sport and Recreation Facilities Investment Fund
  • the development of two new swimming pool and recreation facilities
  • new community facilities at Takanini, Westgate and Avondale
  • additional operating funding for the Auckland Art Gallery
  • additional funding for regional grants programmes.
Auckland Plan 2050 outcome: Māori Identity and Wellbeing

A thriving Māori identity is Auckland’s point of difference in the world - it advances prosperity for Māori and benefits all Aucklanders.

The strengths and contributions Māori bring to Auckland will fuel growth and advance Māori social, cultural, economic and environmental wellbeing.  Māori continue to be important to Auckland’s success, and successful outcomes can be achieved when we create opportunities for Māori self-determination and expression, shared efforts between Māori and others, and the integration of Māori values into planning, decision-making and delivery.

We will achieve this outcome by:

  • advancing Māori wellbeing
  • promoting Māori success, innovation and enterprise
  • recognising and providing for Te Tiriti o Waitangi outcomes
  • showcasing Auckland’s Māori identity and vibrant Māori culture.

In practice this means:

  • meeting the needs and supporting the aspirations of tamariki and their whānau
  • investing in marae to be self-sustaining and prosperous
  • strengthening rangatahi leadership, education and employment outcomes
  • growing Māori inter-generational wealth
  • advancing mana whenua rangatiratanga in leadership and decision-making and providing for customary rights
  • celebrating Māori culture and supporting te reo Māori to flourish
  • reflecting mana whenua mātauranga and Māori design principles throughout Auckland.

We will measure success across this outcome by evaluating:

  • the benefits of whānau Māori measured through tamariki and rangatahi
  • Māori in employment, education and training
  • Māori decision making
  • Te reo Māori across Tāmaki Makaurau.

This 10-year Budget will contribute to this outcome by enabling effective mana whenua and Māori participation in the council’s regional governance processes, supporting co-governance and co-management arrangements, the ongoing development and implementation programme to promote Māori design work, and showcasing Māori identity and culture.

Specific initiatives supporting this outcome funded in this 10-year Budget include:

  • additional funding for the Tūpuna Maunga Authority to protect and enhance Auckland’s maunga (volcanic cones)
  • additional funding to progress high-priority Māori responsiveness outcomes including relationship agreements, unique Maori identity co-design and protecting sites of historical and cultural significance.
Auckland Plan 2050 outcome: Homes and Places

Aucklanders will live in secure, healthy, and affordable homes, and have access to a range of inclusive public places.

Auckland must think strategically about how the housing system can provide secure, healthy and affordable homes for all Aucklanders. As Auckland’s population grows, we must provide sufficient public places that meet the needs of residents. They are an extension of our homes and the way we live, and their design must therefore be flexible to accommodate how people of all age groups will use them.  Public places reflect who we are and where we have come from; they are the destinations we travel to and they contribute to our feeling of belonging.

We will achieve this outcome by:

  • developing a quality compact urban form to accommodate Auckland’s growth
  • accelerating the construction of homes that meet Aucklanders’ changing needs and preferences
  • shifting to a housing system that ensures secure and affordable homes for all
  • providing sufficient public places and spaces that are inclusive, accessible and contribute to urban living.

In practice this means:

  • accelerating quality development at a scale that improves housing choices
  • increasing security of tenure and broadening the range of tenure models, particularly for those most in need
  • improving the built quality of existing dwellings, particularly rental housing
  • investing in and supporting Māori to meet their specific housing aspirations
  • creating urban places for the future.

We will measure success across this outcome by evaluating:

  • new dwellings consented by location and type
  • net new dwellings consented and completed
  • housing costs as a percentage of household income
  • homelessness
  • resident satisfaction with the built environment at a neighbourhood level.

This 10-year Budget will contribute to this outcome through its building control and resource consents functions, by delivering projects and initiatives that unlock development opportunities and encourage development at scale, and through providing enabling bulk and social infrastructure and public places and spaces. 

Specific initiatives supporting this outcome funded in this 10-year Budget include:

  • significant infrastructure investment to support new housing development
  • funding for Panuku’s urban regeneration programmes within its Unlock and Transform areas 
  • funding to cover the costs of consenting and development contributions for the Auckland City Mission’s redeveloped Hobson Street site.
Auckland Plan 2050 outcome: Transport and Access

Aucklanders will be able to get where they want to go more easily, safely and sustainably.

To lead successful and enjoyable lives, it is vital that people can easily, safety and sustainably reach the things that matter most to them, such as work, school, friends, recreation and healthcare. We need efficient ways for people, goods and services to move within and across Auckland, throughout New Zealand and across the world. We also need to make sure that people of all ages and mobility levels can go about their daily lives and get from one place to another easily, affordably and safely. Making it easier and more affordable for people to get to work, school or training is particularly important for increasing economic productivity and everyone's prosperity.

We will achieve this outcome by:

  • better connecting people, places, goods and services
  • increasing genuine travel choices for a healthy, vibrant and equitable Auckland
  • maximising safety and environmental protection.

In practice this means:

  • making better use of existing transport networks
  • targeting new transport investment to the most significant challenges
  • maximising the benefits from transport technology
  • making walking, cycling and public transport preferred choices for many more Aucklanders
  • better integrating land-use and transport
  • moving to a safe transport network, free from death and serious injury
  • developing a sustainable and resilient transport system.

We will measure success across this outcome by evaluating:

  • access to jobs
  • delays from congestion
  • use of public transport, walking and cycling
  • household transport costs
  • transport-related deaths and injuries.

Auckland Council contributes to this outcome by providing transport services and infrastructure and by facilitating the delivery of infrastructure and alignment of investments with central government. This 10-year Budget includes $12 billion of transport capital investment over the next ten years (including funds from leveraging the fuel tax). This is in addition to the government investment, bringing the total combined government transport investment in Auckland up to $28 billion (capital and net operating costs) over the next ten years.

Auckland Plan 2050 outcome: Environment and Cultural Heritage

Aucklanders preserve, protect and care for the natural environment as our shared cultural heritage for its intrinsic value and for the benefit of present and future generations.

Auckland’s natural environment supports and enables all aspects of our society, economy and culture.  It is connected to Aucklanders’ sense of identity and place through our customs, practices, places, objects and artistic expressions and values passed on from generation to generation.  Our natural environment affects our health and wellbeing too, and it provides us with clean air to breathe and fresh water to drink. It is home to many special local ecosystems and is essential for the survival of both indigenous wildlife and species from across the world. The impacts of climate change present challenges for Auckland, including damage to ecosystems and infrastructure as a result of changing climate conditions or extreme weather events. The environment and our shared cultural heritage provides an anchor for the sense of belonging that communities have to their place. 

We will achieve this outcome by:

  • ensuring the natural environment is valued and cared for
  • applying a Māori world view to treasure and protect our natural environment (taonga tuku iho)
  • using Auckland’s growth and development to protect and enhance the natural environment
  • ensuring Auckland’s infrastructure is future-proofed.

In practice this means:

  • encouraging all Aucklanders to be stewards of the natural environment and to make sustainable choices
  • focussing on restoring environments as Auckland grows
  • accounting fully for the past and future impacts of growth
  • protecting Auckland’s significant natural environments and cultural heritage from further loss
  • adapting to a changing water future
  • using green infrastructure to deliver greater resilience, long-term cost savings and quality environmental outcomes.

We will measure success across this outcome by evaluating:

  • the state and quality of locally, regionally and nationally significant environments
  • marine and fresh water quality
  • air quality and greenhouse gas emissions
  • protection of the environment
  • resilience to natural threats
  • treasuring the environment.

Auckland Council contributes to this outcome by providing water services (through its council-controlled organisation, Watercare Services Ltd) as well as stormwater and a range of other environmental services.

Our harbours, beaches and streams are being polluted by overflows from ageing sewerage and stormwater systems that can’t cope with heavy rainfall and from contaminants washed into natural waterways. Through the use of a water quality targeted rate, this 10-year Budget will contribute to this outcome by speeding up delivery of Auckland’s water quality programme from 30 years to 10 years.

This 10-year Budget will also enable us to invest more in environmental initiatives, funded through a targeted rate, to address the spread of pests, weeds and diseases that are threatening native species, in particular kauri dieback. 

Other specific initiatives supporting this outcome funded in this 10-year Budget include:

  • the establishment of a Climate Change Response fund to address emergency infrastructure repair works as well as proactively monitor and remediate at-risk infrastructure
  • additional funding to manage the council’s coastal assets.
Auckland Plan 2050 outcome: Opportunity and prosperity

We need to ensure Auckland is prosperous, with many opportunities, and delivering a better standard of living for everyone. To be truly successful Auckland needs sustainable prosperity that puts people and the environment at the centre of economic progress.

Targeted investment in education, training and skill development for all ages and lifelong education is vitally important.

Innovation and entrepreneurship will be essential elements for increasing employment and raising wages. This will strengthen Auckland’s economy in a globally competitive environment and allow the economy to meet the needs of our growing population. Innovation among enterprises of all sizes can provide Auckland with the resilience to adapt in a rapidly changing world.

We will achieve this outcome by:

  • creating the conditions for a resilient economy through innovation, employment growth and raised productivity
  • attracting and retaining skills, talent and investment
  • developing skills and talent for the changing nature of work and lifelong achievement.

In practice this means:

  • harnessing emerging technologies and ensuring equitable access to high quality digital data and services
  • ensuring regulatory, planning and other mechanisms support business, innovation and productivity growth
  • advancing Māori employment and support Māori business and iwi organisations to be significant drivers of Auckland’s economy
  • leveraging Auckland’s position to support growth in exports
  • increasing educational achievement, lifelong learning and training, with a focus on those most in need.

We will measure success across this outcome by evaluating:

  • labour productivity
  • Aucklanders’ average wages
  • employment in advanced industries
  • zoned industrial land
  • level of unemployment
  • use of internet in the home relative to income
  • educational achievement of young people.

This 10-year Budget will contribute to this outcome by delivering projects and initiatives that highlight Auckland’s profile which help to attract investment in areas that support business, innovation and productivity.

 Specific initiatives supporting this outcome funded in this 10-year Budget include:

  • continuing the development and implementation of the Wynyard Quarter Innovation Precinct
  • expansion of The Southern Initiative to West Auckland (The Western Initiative).  Its aim is to stimulate and enable community and social innovation in response to a number of social and economic challenges the west faces.  
Auckland Plan 2050 Development Strategy

The Auckland Plan 2050 also sets out our Development Strategy, Auckland’s plan for how we will physically manage growth and change until 2050, including how we will sequence growth and development. Around 1.6 million people currently live in Auckland. Over the next 30 years this number could grow by another 720,000 people to reach 2.4 million. This means we could need another 313,000 dwellings and up to 263,000 extra jobs.

Growth on this scale is significant and requires us to work together and ensure we have a clear understanding of where and when, investment in planning and infrastructure needs to be made and maintained.  The Development Strategy provides the strategic direction for how and where growth can be realised over the life of the plan. It identifies the expected location, timing, and sequence of future development capacity in the existing urban areas and future urban areas.

We will achieve this by taking a quality compact approach to growth and development.

This means that future development will be focused in existing and new urban areas within Auckland’s urban footprint, limiting expansion into the rural hinterland. By 2050, most growth will have occurred within this urban footprint, particularly focused in and around:

  • the city centre - the focus of Auckland’s business, tourism, cultural and civic activities
  • the nodes - Albany, Westgate and Manukau, including their catchments, are critical to growth across the region, offering a broad range of business and employment activity, civic services and residential options
  • identified development areas - specific locations that are expected to undergo a significant amount of housing and business growth in the next 30 years. Each development area will be different. Planning and investment will be targeted and prioritised to the areas where development capacity is taken up and will focus on addressing the impacts of increased demand on infrastructure and services.
  • future urban areas - new communities will be established on the fringe of Auckland's existing urban area, and in rural and coastal settlements. The strategy sets out the agreed timing and sequencing for when future urban land will have live zoning and the necessary bulk infrastructure in place to enable development to commence. Sequencing spans three decades which helps to spread associated costs.

In practice this means:

  • ensuring sufficient capacity for growth across Auckland
  • embedding good design in all development
  • sequencing what gets delivered
  • aligning the timing of infrastructure provision with development
  • supporting rural production.

We will measure success by evaluating:

  • new dwellings consented
  • location of new dwellings consented
  • typology of new dwellings consented
  • resident satisfaction with built environment at a neighbourhood level
  • number of jobs accessible in the morning peak
  • hectares of industrial zoned land.

In implementing the Development Strategy, Auckland Council has important regulatory, policy and facilitation roles. The council is also a provider of key infrastructure: stormwater, community facilities, parks and open space. Water, wastewater and local transport infrastructure is planned for and delivered by two council-controlled organisations: Watercare and Auckland Transport.  The council works in partnership with central government agencies to implement infrastructure and plan for growth.

This 10-year Budget will contribute to the Development Strategy by enabling infrastructure to be delivered (see 1.3 Infrastructure strategy) to support housing and congestion outcomes, upgraded water infrastructure to support growth and address water quality issues, and additional investment in parks and community facilities to support growth and meet community expectations.

It will also support the Panuku Development Auckland urban regeneration projects within its Transform, Unlock and Support locations.

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1.2 Māori Identity and Wellbeing

To support a thriving Māori identity and the wellbeing of Māori in Auckland, Auckland Council contributes through council group activities, budgets, levels of service and measures which collectively contribute to achieving Māori outcomes for Auckland, as guided by the directions and focus areas in the Auckland Plan 2050.

Auckland Plan 2050

The Auckland Plan sets out the overarching framework and strategic directions for Auckland Council. It includes activities that council does not provide, but for which it still has a role to advocate to other agencies (such as central government agencies) for improvement. Outcome 2 of the Auckland Plan is “Māori identity and wellbeing”, where a thriving Māori identity is Auckland’s point of difference in a world that advances prosperity for Māori and benefits all Aucklanders. Of the other five Auckland Plan outcomes, four have a Māori direction, focus area or content woven into the narrative.  This approach reflects the interrelationships between Māori wellbeing and the other outcome areas in the Auckland Plan 2050.

The Auckland Plan identifies the following Directions and Focus Areas to deliver a thriving Māori identity in Auckland:

Outcomes and Directions

Focus Areas

Outcome 1: Belonging and Participation

 

Focus Area 4

Value and provide for te Tiriti o Waitangi / the Treaty of Waitangi as the bi-cultural foundation for an inter-cultural Auckland

Outcome 2: Māori Identity and Wellbeing

Direction 1

Advance Māori well-being

Direction 2

Promote Māori success, innovation and enterprise

Direction 3

Recognise and provide for te Tiriti o Waitangi outcomes

Direction 4

Showcase Auckland’s Māori identity and vibrant Māori culture

Focus Area 1

Meet the needs and support the aspirations of tamariki and their whānau

Focus Area 2

Invest in marae to be self-sustaining and prosperous

Focus Area 3

Strengthen rangatahi leadership, education and employment outcomes

Focus Area 4

Grow Māori inter-generational wealth

Focus Area 5

Advance mana whenua rangatiratanga in leadership and decision-making and provide for customary rights

Focus Area 6

Celebrate Māori culture and support te reo Māori to flourish

Focus Area 7

Reflect mana whenua mātauranga and Māori design principles throughout Auckland

Outcome 3: Homes and Places

 

Focus Area 4

Invest in and support Māori to meet their specific housing aspirations

Outcome 5: Environment and Cultural Heritage

Direction 2

Apply a Māori world view to treasure and protect our natural environment (taonga tuku iho)

 

Outcome 6: Opportunity and Prosperity

 

Focus Area 5

Advance Māori employment and enable Māori businesses and iwi organisations to be significant drivers of Auckland’s economy

Council groups of activities contributing to Māori identity and wellbeing

Whiria Te Muka Tangata – the Māori Responsiveness Framework articulates and focuses on Auckland Council’s commitments and obligations to Māori within the wider network of agencies in Auckland. These commitments require that the council group ensures its policies and actions consider:

  • the recognition and protection of Māori rights and interests in Tamaki Makaurau and,
  • how the council will address and contribute to Māori needs and aspirations within the wider network of agencies in Auckland.
The total budget for activities that directly contribute to Māori identity and wellbeing totals $150 million (combined capital and operating expenditure).

The Māori Responsiveness Framework (MRF) outlines the goals, outcomes and priorities that council group will focus on to deliver on the Auckland Plan. These activities have been brought together in this section to provide the council group an overview that enables monitoring of progress towards the shared outcomes and priorities of the council group. Activities, outlined below, align to the three goals of the Māori Responsiveness Framework and form the basis of the council-family’s Māori outcomes programme.

Whiria Te Muka Tangata Goal: Strong Māori Communities

Auckland council focuses its efforts on delivering outcomes in communities and will work with Māori to strengthen and enable Māori communities to thrive. Activities to deliver this are grouped under the four wellbeing outcomes below with identified council priorities:

Strong Māori Communities

Social Auckland council activity strengthens Māori wellbeing and resilience

Activities include:

Priority: Papakainga and Māori Housing

  • Enabling the development of #257;ori housing and papakāinga through funding assistance and improvement of processes and planning.

Priority: Whānau and Tamariki Wellbeing

  • Supporting whānau and tamariki wellbeing through services delivered in council facilities (e.g. libraries) as well as support whānau safety through licensing activities.

These activities help deliver on the Auckland Plan, Outcome 1: Homes and Places, and Outcome 2: Māori Identity and Wellbeing of the Auckland Plan.

Cultural Māori cultural identity, heritage, and mātauranga Māori thrive

Activities include:

Priority: Marae Development

  • Supporting Marae to be sustainable cultural hubs for Māori and the wider community.

Priority: Reo Māori Outcomes

  • Te Reo Māori is seen, heard and spoken throughout council activity.

Priority: Māori Identity and Culture

  • Māori identity and culture is advanced through cultural experiences, such as events, and placemaking activities such as urban design and the application of Te Aranga design principles in our spaces and places, sites of significance work, and Māori public art.

These activities help deliver on Outcome 1: Belonging and Participation, and Outcome 2: Māori Identity and Wellbeing, of the Auckland Plan.

Economic Auckland council activity promotes Māori success, innovation and enterprise

Activities include:

Priority: Māori Business, Tourism and Employment

  • Council actively provides economic opportunities for Māori and supports Māori growth in business, tourism and enterprise.

Priority: Realising Rangatahi Potential

  • Council enables rangatahi participation in council activities to support rangatahi in leadership, training and employment.

These activities help deliver on Outcome 2: Māori Identity and Wellbeing, and Outcome 6: Opportunity and Prosperity, of the Auckland Plan.

Environmental Auckland council protects, enhances and restores environmental taonga by applying a Māori world-view

Activities include:

Priority: Kaitiakitangi Outcomes (particularly water)

  • Council actively provides for the Māori participation in the management of taonga resources.
  • Council works with Mana Whenua in the management, restoration and protection of our water resources.

These activities help deliver on Outcome 5: Environment and Cultural Heritage of the Auckland Plan.

Whiria Te Muka Tangata Goal: Effective Māori Participation

Council will work with mana whenua and mataawaka to identify areas that are of value to them and enable opportunities for leadership and influence. This includes council establishing mutually beneficial relationships with Māori, and the support of appropriate fora to enable Māori participation both at a governance and operational level. This also includes establishing formal relationship agreements between council’s governing body, local boards and Mana Whenua, the continuation and establishment of appropriate co-governance and co-management arrangements, and the provision of capacity contracts.

Contribution to Māori capacity

The Local Government Act 2002 requires local authorities to consider ways in which it may foster the development of Māori capacity to contribute to the decision-making processes of the local authority. The projects and activities that make up this programme are captured within the council-family Māori outcomes programme. Auckland Council contributes in several ways including:

  • Provision Māori capacity contracts enabling mutually beneficial outcomes.
  • Supporting forums that represent mana whenua and Māori resident and ratepayers interests.
  • Providing resource in kind such as technical expertise, research assistance, meetings rooms and event spaces.
  • Co-ordinating an integrated approach between Auckland Council and its CCOs as a way to address matters of significance to Māori.

Whiria Te Muka Tangata Goal: An Empowered Organisation

Council will work to ensure staff are enabled to meet obligations under Te Tiriti o Waitangi / The Treaty of Waitangi, through appropriate training (for example ngā kete akoranga), the MAHI strategy. Council will also work to ensure that its policies, processes, plans and strategies are appropriately revised to the other two goals of Whiria Te Muka Tangata. This includes ensuring the council group and departments focus on delivering effective Māori Responsiveness Plans which identify how departments and the six substantive council-controlled organisations will deliver on outcomes and priorities of the Māori Responsiveness Framework.

Māori measures and targets

This 10-year Budget identifies specific Māori measures and targets that align with the outcomes within the goals of Whiria Te Muka Tangata/Māori Responsiveness Framework. These measures are important to demonstrate progress of delivery against commitments to Māori. Measures are focused on the activities that council delivers and are tied back to the outcomes of the Auckland Plan.

AP Outcome

MRF Goal

Level of Service

Suggested Measure

Target by 2028

Groups of Activities

O2: Māori Identity and Wellbeing

Strong Māori Communities - Culture

We contribute to resilient, sustainable, and thriving marae facilities and infrastructure that support marae as hubs for their communities

The number of mana whenua and mataawaka marae that receive support to renew or upgrade marae infrastructure (Out of 33 existing Marae)

33

2.7 Regionally delivered council services

O3: Homes and places

Strong Māori Communities - Social

We support the Māori led housing and papakainga development through the planning processes

The number of Māori organisations and trusts projects that have been supported to achieve Māori housing and papakāinga development

25

2.7 Regionally delivered council services

O1 Belonging and participation and

O2 Māori Identity and Wellbeing

Strong Māori Communities - Culture

We showcase Auckland's Māori identity and vibrant Māori culture

 

The percentage of regional programmes, grants and activities that respond to Māori aspirations

17.20%

2.7 Regionally delivered council services

O1 Belonging and participation and

O2 Māori Identity and Wellbeing

Strong Māori Communities - Culture

We showcase Auckland's Māori identity and vibrant Māori culture

The percentage of local programmes, grants and activities that respond to Māori aspirations

11.4%

2.6     Local council services

O1 Belonging and participation and

O2 Māori Identity and Wellbeing

Effective Māori participation

We provide opportunities for Māori to contribute to community and civic life

The number of iwi that have signed a formal relationship agreement with the Governing Body (Out of 19)

19

2.7 Regionally delivered council services

O1 Belonging and participation and

O2 Māori Identity and Wellbeing

Effective Māori participation

We provide opportunities for Māori to contribute to community and civic life

The number of local boards that have signed a formal relationship agreement with at least one iwi (Out of 21)

21

2.6     Local council services

O1 Belonging and participation and

O2 Māori Identity and Wellbeing

Effective Māori participation

We provide opportunities for Māori to contribute to community and civic life

The percentage of Māori residents who feel they can participate in the council decision making

50%

2.7 Regionally delivered council services

O6: Opportunity and Prosperity

Strong Māori Communities: Economic

We deliver information, advice, programmes and initiatives to support the creation of high value jobs for all Aucklanders

The number of Māori businesses that have been through an ATEED programme or benefitted from an ATEED intervention

120

2.8 Council controlled services

O3: Homes and Places

Strong Māori Communities: Social

We provide a coordinated council response to major development and infrastructure programmes, including major housing developments

The percentage of Development Programme Office programmes that identify and engage with key stakeholders including Mana Whenua and Māori organisations

95%

2.7 Regionally delivered council services

O3: Homes and Places

Strong Māori Communities: Cultural

We make the waterfront and town centres dynamic, culturally-rich, safe and sustainable places for Aucklanders and visitors to enjoy

The number of significant Māori initiatives implemented per annum

78

2.8 Council controlled services

O3: Homes and Places

An Empowered Organisation

We meet all planning and legislative requirements

The percentage of adopted core strategies, policies, and plans incorporating Māori outcomes or developed with Māori participation

100%td>

2.7 Regionally delivered council services

O1: Belonging and Participation

Strong Māori Communities: Cultural

Regional Facilities Auckland deliver arts, wildlife, collections, sports and events that provide experiences that are engaging and embraced by Aucklanders

The number of programmes contributing to the visibility and presence of Māori in Auckland, Tamaki Makaurau

20

2.8 Council controlled services

Monitoring progress

Overseeing the delivery of Māori outcomes will be Te Toa Takitini executive leadership group that has been established to lead and influence better outcomes with Māori for Tāmaki Makaurau/Auckland by:

  • Driving a shift in culture across the Auckland Council group, in thinking and practice to improve outcomes for Māori in Tāmaki Makaurau
  • Ensure that this cultural shift is embedded in ways that are self-sustaining and systemic
  • Providing executive leadership to the delivery of Māori outcomes through Te Toa Takitini Māori Outcomes portfolio.

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1.3 Auckland’s 30-year Infrastructure Strategy

Section one: Introduction and Context

The services provided by well-functioning infrastructure networks underpin the success of Auckland as a place to live, visit and invest. Auckland needs infrastructure that can cope with increasing demand as the city grows, a changing environment and that meets community expectations for service delivery.

Infrastructure investments have long-term consequences for the future of Auckland. They will influence the form of our city and how well it functions for future generations. Auckland Council’s expenditure on creating and maintaining infrastructure is of a magnitude that investment decisions are important for the ongoing financial well-being of Auckland Council and ratepayers.

This strategy takes a medium to long-term view of Auckland’s Infrastructure, covering the period to 2048. The strategy explains:

  • Auckland Council’s infrastructure portfolio, role in providing infrastructure and the contribution this makes to our strategic outcomes
  • The significant infrastructure challenges and opportunities facing Auckland over the next 30 years, and our responses to these
  • The key infrastructure decisions
  • An overview of the anticipated investment in infrastructure by Auckland Council to 2048.

Supporting assumptions used in development of this strategy are outlined in section five.

This strategy should be read in conjunction with the Financial Strategy, which sets out the current financial constraints of funding the anticipated investment in infrastructure and options for different funding mechanisms.

The strategy covers Auckland Council group assets required under section 101B of the Local Government Act 2002 and other assets with a high value and level of expenditure that make a high contribution towards achieving Auckland’s strategic outcomes. Asset covered include:

  • transport assets - public transport, roads and footpaths
  • water assets - wastewater, water supply and stormwater, including flood control
  • community assets - parks and community facilities.

Some of the infrastructure issues discussed in this strategy (such as housing outcomes and the development of the city centre and town centres) necessarily involve multiple categories of infrastructure. A key element of this strategy is the need to take a coordinated approach to infrastructure investment across the council group.

Table 1.1: Auckland Council’s Infrastructure Portfolio

Auckland Council and its Council-Controlled Organisations have an extensive infrastructure portfolio, with the current value of assets across the infrastructure types covered by this strategy estimated to be $30 billion. This represents about two thirds of total group assets.

Transport

$9.3 billion

  • 7452km roads
  • 7137km footpaths
  • 41 rail stations
  • 21 wharves
  • 15 bus and busway stations
  • 10 multi-storey car park buildings
  • 818 pay by plate units

Stormwater

$4 billion

  • 6000km of stormwater pipes
  • 541 ponds and wetlands
  • 150,000 manholes

Water Supply

$3.6 billion

  • 12 dams
  • 13 bores and springs
  • 3 river sources
  • 15 water treatment plants
  • 91 reservoirs
  • 9096km water pipes

Wastewater

$4.4 billion

  • 7999km wastewater pipes
  • 515 wastewater pump stations
  • 18 wastewater treatment plants

Community Services

$8.6 billion

  • 32 regional parks
  • 3575 local parks
  • 190 sports parks
  • 54 cemeteries
  • 55 libraries
  • 191 community halls / centres
  • 42 recreational/aquatic facilities
  • 40 art facilities

Delivering Auckland’s Infrastructure

Auckland’s infrastructure directly supports how well the city and region functions. Decisions on infrastructure investments are important to achieving the outcomes identified in the overarching strategy for the region, the Auckland Plan 2050 (see figure 1.1), which was adopted in June 2018.

Auckland Council has a number of roles in the planning and delivery of infrastructure and is a major investor across a broad range of infrastructure types. It is a facilitator, working with other infrastructure providers to deliver affordable services to residents and businesses. It also has a regulatory role; designating, consenting, monitoring and developing new planning rules and policy for infrastructure.

Responsibilities for the infrastructure subject to this strategy are spread across the council group, including the Council-Controlled Organisations (CCOs) Auckland Transport and Watercare Services Limited.


While this strategy focuses on infrastructure for which Auckland Council is responsible, other public and private organisations play important roles in the delivery of infrastructure networks, depending on either the type or scale of infrastructure. Figure 1.2 illustrates responsibilities for infrastructure delivery in Auckland.

Figure 1.1: The Auckland Plan 2050

The Auckland Plan 2050 establishes outcomes, focus areas and direction for the long-term development of Auckland. The plan guides the actions of Auckland Council, including the CCOs, and provides direction to align decision making about growth and infrastructure investment between the public and private sectors.

The Auckland Plan 2050 identifies three long-term infrastructure challenges and opportunities:

  • Coordinating investment and planning to enable growth
  • Enhancing the performance of Auckland’s infrastructure
  • Creating resilient infrastructure networks.
Belonging and ParticipationMāori Identity and WellbeingHomes and PlacesTransport and AccessEnvironment and Cultural HeritageOpportunity and Prosperity
Improving and maintaining health

Increasing access to people

Enabling greater social cohesion

Recognising the role of mana whenua as kaitiaki

Supporting papakainga housing and marae development

Increasing investment opportunities for Māori

Showcasing and protecting Māori heritage and wāhi tapu

Enabling new homes

Improving amenity and the quality of urban areas

Providing places for socialising

 

Improving access to opportunities Improving travel choices Enabling the efficient movement of goods and services Enabling and supporting growthMinimising detrimental impacts on the environment

Increasing resilience to climate change and natural hazards

Reducing greenhouse gases

Protecting areas of environmental and heritage value

Improving business productivity and international competitiveness

Increasing business activity, skills and employment

Increasing attractiveness for investment

Attracting talent to Auckland

Figure 1.2: Delivering Auckland’s Infrastructure

Delivering Auckland’s infrastructure requires co-ordination across a number of public and private organisations depending on the type or scale of infrastructure. Typically:

  • Government provides state highways, railway lines, and some social infrastructure such as schools and hospitals. It also subsidises other transport infrastructure.
  • Auckland Council, including its council-controlled organisations, provides arterial roads, public transport systems, water supply, wastewater and stormwater networks and social infrastructure such as community facilities and parks.
  • Developers initially construct local streets and pipe networks which are then vested with council to own and maintain.
  • Energy and communications infrastructure is typically supplied by private utility companies.

Auckland over the next 30-years

Many infrastructure assets last for a long time and provide services for several decades.  How Auckland grows and changes over the next 30-years and beyond will affect the performance of current infrastructure and future investment needs.  Some of the changes expected to Auckland’s people, environment and economy over this time that will influence infrastructure are discussed below.

People:

Auckland is a fast-growing city with a current population of 1.7 million. Over the next 30 years the city could grow by another 720,000 to reach 2.4 million. This means another 313,000 dwellings and 263,000 jobs for Auckland. The rate and speed of growth in Auckland puts pressure on infrastructure to cater for increased demand and enable the additional housing and business space needed to provide for a larger population.

Demographic changes will also affect the demand for, and the range of, services that need to be delivered by Auckland’s infrastructure.  Over the next 20 years, there will be increasing numbers of older people and they will make up a greater proportion of Auckland’s population. Households are expected to decrease in size, from approximately 3 to 2.7 people per dwelling. The population is also expected to become more ethnically diverse, with Pacific and Asian people expected to make up a larger proportion of Auckland’s population

Environment:

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.

 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 degradation if not managed carefully. Increasing density in the existing urban area has the potential to exceed the capacity of existing infrastructure if investment does not keep up with growth.

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.

Economy:

Auckland is New Zealand’s main commercial centre, generating 38 per cent of New Zealand’s Gross Domestic Product (GDP).  The relative scale of Auckland compared with the rest of New Zealand is expected to continue to grow over the next 30 years. For example, Auckland’s growth in the last two years is higher than the projected growth for Wellington over the next 30 years and 75 per cent of growth in the working age population (15 - 64 years) to 2043 will be in Auckland. The resilience and performance of Auckland’s infrastructure is important for New Zealand’s success, as more people and economic activity are concentrated in Auckland.

While employment is relatively dispersed across the region, further growth in the professional service sector is expected to concentrate employment in fewer, larger centres. This has implications for the transport network, as more people need to move to fewer locations during peak times.

Inter-regional connections between Auckland, Hamilton, Tauranga and Northland are important for economic and social success. Collectively, these areas are home to over half of New Zealand’s population and generate more than half of the national gross domestic product. Auckland’s ports also play a vital role connecting New Zealand to the rest of the world. Roughly 31 per cent of New Zealand’s total trade passes through the Ports of Auckland and Auckland Airport accounts for 75 per cent of international arrivals and approximately 15 per cent of foreign trade by value. Auckland’s transport system needs to provide efficient access through the region and to the ports.

Chart 1.1: Auckland population, household and employment forecasts 2018 - 2048

Chart 1.1: Auckland population, household and employment forecasts 2018 - 2048 , table of the charted information follows

Table of data will be available at a later date.

Section two: Auckland’s long-term infrastructure challenges, opportunities and responses

The population and economic growth anticipated in Auckland over the next 30 years, together with environmental pressures, present a number of infrastructure-related challenges and opportunities including:

  • coordinating investment and planning to enable growth
  • enhancing the performance of Auckland’s infrastructure
  • creating resilient infrastructure networks.

There are two elements to Auckland’s strategic response to these challenges and opportunities.

Significant investment is needed to maintain and expand infrastructure networks. Without an appropriate infrastructure investment response, there will be a significant reduction in council service levels in key areas such as transport, water quality and access to community services. Our proposed investment is outlined in the 30-year investment scenario (section 4) of this strategy. The current financial constraints of funding the anticipated investment and options for different funding mechanisms are outlined in the Financial Strategy, Section 1.4 of this document.

Auckland must also improve how infrastructure is planned and delivered to ensure future investments, and current assets, make the greatest possible contribution towards achieving the outcomes sought for the region, and deliver value for money.

Image: Figure 2.1

This section of the strategy identifies key strategic responses, and examples of current initiatives, that are being progressed across the council group to improve how infrastructure is planned and delivered to address the long-term challenges and opportunities.

Coordinating investment and planning to enable growth

The next 30 years will require significant investment in infrastructure. Coordinated action between public and private infrastructure providers and the development sector is needed to enable the scale of development required to accommodate Auckland’s growth.  It is crucial that this investment is coordinated and aligned with growth, in order to minimise the opportunity costs of under-utilised assets, increase Auckland’s productivity and achieve better environmental outcomes.

The National Policy Statement for Urban Development Capacity requires the provision of surplus capacity in infrastructure networks to accommodate fluctuations in the rate of growth and to meet housing and business needs over the short, medium and long-term. Ensuring that infrastructure networks have sufficient capacity to service growth is critical. This will require alignment between the expansion of bulk strategic water and transport networks, and investment in local infrastructure, particularly in areas where significant growth is planned to occur.

The scale of construction needed to cater for Auckland’s growth also poses challenges to the operation of existing infrastructure networks. Aligning forward work programmes (i.e. ‘dig once’) allows for more efficient delivery and is less disruptive to existing communities.  Construction impacts, such as additional heavy vehicle movements, may increase maintenance requirements for existing networks.

 

Strategic responses include:

  • Providing clear direction on the future location and timing of expected growth and infrastructure provision, such as refreshing Auckland’s long-term development strategy (see figure 2.2).
  • Collaborating with central government on long-term infrastructure investment plans, such as the Auckland Transport Alignment Project.
  • Improving co-ordination across the council group to respond to major development and infrastructure programmes, such as establishing the Development Programme Office.
  • Aligning forward work programmes, such as developing an online portal to share information on planned projects and upcoming events to enable alignment between infrastructure providers.
Figure 2.2: The Auckland Plan 2050 Development Strategy

The Auckland Plan 2050 Development Strategy is a key tool for integrating growth and infrastructure over the next 30-years. The development strategy aligns the location and timing of investment across the council, CCOs, central government and the private sector by identifying:

Strategic Infrastructure Networks (refer figures in section 4)

Strategic networks influence where and when significant urban growth can occur. They provide bulk services in public transport, roads, water, and wastewater. Projects to expand strategic networks often require substantial public investment and have long lead-in times.

Future Urban Areas (refer figure 2.2)

Future urban areas are presently rural areas that will be urbanised in the future. They are currently not serviced with infrastructure needed to support urban development. Investment is required in bulk infrastructure to service these areas before they can develop, and then local infrastructure is required as they grow.

Nodes and Development Areas (refer figure 2.2)

Nodes and development areas are locations with the existing urban areas that are expected to grow significantly. Investment is required to ensure local infrastructure networks in these areas have capacity to keep up with growth.

Figure 2.2 (map): The Auckland Plan 2050 Development Strategy

Map showing details of The Auckland Plan 2050 Development Strategy including Strategic Infrastructure Networks, Future Urban Areas, Nodes and Development Areas

Enhancing the performance of Auckland’s infrastructure

Even without the pressure of anticipated changes in Auckland’s population over the next 30-years, Auckland’s current infrastructure assets require maintenance, renewal and replacement. Regional disparities in service provision, resulting from historical underinvestment, need to be addressed.

Dealing with ageing and obsolete infrastructure

Some of Auckland’s infrastructure is getting old and will need replacing. The investment in renewing ageing infrastructure is expected to significantly increase in the next three decades. For example, pipe networks established during Auckland’s post-war urban expansion between the 1940s and 1960s are expected to require renewal from the 2020s onwards.

In addition, some infrastructure systems are becoming obsolete, do not meet modern standards or changing community needs. For example, the combined sewer and stormwater system in parts of the isthmus is prone to overflows, which have negative social and environmental impacts.  Many older community buildings require investment to address hazards such as asbestos or seismic risk, and to ensure they are fit-for-purpose for changing community needs. Replacing ageing infrastructure presents opportunities to improve the environmental performance and resilience of networks, while increasing the capacity to provide for growth.

Differences in service provision and standards

Disparities in performance across different parts of Auckland need to be addressed. For example the transport network provides comparatively poor access to employment opportunities from south and west Auckland. Planned investment in strategic infrastructure networks, such as the construction of the City Rail Link, will help to address these issues as it will decrease travel time, particularly from the western urban area.

When Auckland Council was established it inherited an infrastructure portfolio built by predecessor local authorities with different policies, specifications and business practices.  While the design and specification of assets and the levels of service provided need to be appropriate for different locations and communities, clear requirements for the provision and specification of infrastructure are essential to provide certainty for developers, and enable efficiencies in asset design, construction and maintenance over the entire asset lifecycle.

Demand management and emerging technologies  

Demand management and emerging technologies will improve the performance of existing infrastructure networks and defer the need for some future investments. The ability to collect and analyse data on a large scale will improve understanding of how individuals and households use infrastructure systems and will allow for more targeted investment. For example, advancements in transport technology such as autonomous vehicles and real-time road user pricing, are expected to increase the capacity of existing roads and improve environmental outcomes. Demand management techniques, such as user pays for water and wastewater services, incentivise the efficient use of infrastructure.

Strategic responses include:

  • Standardising requirements for the provision and design of infrastructure, by updating policies and technical guidelines such as the Subdivision Code of Practice and the Auckland Design Manual.
  • Using new technology to make better use of existing infrastructure, such as trialing smart water meters and investigating smarter transport pricing.
  • Improving asset information and analysis, such as developing the Smart Growth Portal to improve understanding of asset condition and capacity to inform development planning.

Creating resilient infrastructure networks

Auckland’s infrastructure needs to be resilient and able to cope with disruptive events (such as natural disasters) and on-going stresses (such as climate change). It needs to be able to respond to the evolving needs of Aucklanders, as well as the possibility of human error.

Understanding the consequences and likelihood of failure, and also the changing demands on our infrastructure systems, allows us to better manage risks to these networks.

Failure of Auckland’s critical infrastructure networks poses significant risks. These assets are prioritised in investment programmes and in emergency contingency planning, as they are essential for Auckland to function (see figure 2.3). For example, the planned investment in water infrastructure allows Watercare to continue to manage Auckland’s water supply in full compliance with the six fundamental principles of drinking water safety for NZ identified by Havelock North Drinking Water Inquiry.

Auckland’s infrastructure systems also need to be resilient to evolving trends. Improving resilience is a driver for investment in infrastructure networks, as well as guiding policies, regulations and specifications.

There is inherent uncertainty about the type, timing and impacts of change. It is important to consider how resilient planned investments are to emerging changes, as well as the possible impact on the operation of current networks.  Ensuring our investments deliver multiple benefits, such as providing for growth while also enhancing the environment, health and improving resilience is essential.  For example, using green infrastructure that achieves water management outcomes, while also enhancing biodiversity, recreation and urban amenity.

Strategic responses include:

  • 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.
  • Avoiding development in land subject to hazards, such as flooding, ground instability and coastal inundation, by updating policies and regulations such as the Auckland Unitary Plan.
  • Improving understanding of the dependencies, implications and responses to failure of infrastructure networks, particularly working with other critical infrastructure providers through the Auckland Lifelines Group.
  • Adopting resilient design principles, such as applying Water Sensitive Design principles to development of the stormwater network, or ensuring new community buildings are multi-functional and can provide for a diverse range of uses.

Figure 2.3 (map): Auckland’s critical infrastructure

Map showing details of Auckland’s critical infrastructure including rail, power, water, electricity and telecommunication connections

Section three: Key decisions

Addressing Auckland’s long-term infrastructure needs

Auckland Council undertakes strategic long-term planning with key stakeholders, including central government and the community to understand the demand for infrastructure over the next 30-years.

Given that significant progress has been made on defining and agreeing the long-term infrastructure demand, the most important decision currently facing Auckland is balancing the timing of when we invest in that infrastructure with the need to keep Auckland an affordable place to live, work and do business.

The projects proposed in Auckland’s strategic plans exceed the short – medium term funding available for the first decade (2018-2028) due to:

  • rapid growth
  • increasing expectations and service levels
  • addressing deficits and equity issues in current provision
  • financial constraints.

Given these conditions are expected to continue for the foreseeable future, there will be an ongoing need to prioritise the infrastructure requirements identified in strategic plans with available funding capacity over the next 30-years. The Financial Strategy sets out the options for funding, prioritisation and the need to balance the investment in infrastructure identified in strategic plans with costs that are acceptable to the community.

This section outlines the key decisions that need to be made to balance infrastructure requirements with affordability.

Figure 3.1 shows how our long-term strategic planning identifies demand for infrastructure over 30 years. The key decision is balancing, through the 10-year budget process, the demand for investment in infrastructure against our current funding capacity. 

Figure 3.1: Auckland’s key infrastructure decisions, text description follows
Text description of figure 3.1

The Auckland Plan 2050: The Auckland plan 2050 sets out the long -term vision and strategic direction for Auckland across social, economic, environment, and cultural outcomes.

Strategic land-use plans and Strategic Infrastructure Plans: Long-term strategic plans broadly identify how Auckland’s growth will be accommodated and the infrastructure needed to support a larger population.

Indicative 30 year infrastructure demand: Aucklands’ strategic infrastructure plans collectively identify the indicative demand for infrastructure over the next 30 years.

10 year budget: Aucklands’ key infrastructure decisions are prioritising which projects are funded in the 10-year budget.

Text description ends.

Project level decision-making

The major individual infrastructure programmes and projects identified by Auckland’s long-term infrastructure and land use plans are outlined in section 4 of this strategy along with details of the approximate cost, timing and location of these projects. The timing of the programmes and projects identified reflect a baseline scenario under current financial settings.

Decisions on major infrastructure projects are made at a number of stages, such as when strategic plans, budgets and business cases are adopted, or contracts awarded. The information in section 4 indicates the decade in which infrastructure is expected to be needed, and approximate timeframe for when investment decisions will be confirmed. Strategic infrastructure plans are regularly reviewed in response to changes in the rate and location of growth and other factors. 

Due to the strategic outlook of these plans, options for projects in the long-term (years11-30) are considered at a general level. Projects are subsequently refined, alternatives considered and the need confirmed closer to when demand for the infrastructure is expected to occur. Options expected to be considered include: 

  • the delivery mechanism
  • the staging and timing of implementation
  • the technical solution, including:
    • approximate route or location
    • possible construction methodology
    • capacity required.

Many projects in the 10-year budget are already committed, such as the City Rail Link, Central Interceptor and a number of park acquisitions. Additionally, the need to maintain and renew existing assets is generally prioritised before funding new capital projects. This means that without additional funding streams, there is often relatively limited ‘discretionary’ funding available for new capital investments within each 10-year budget.

Key infrastructure decisions

Taking into account all of the above, seven key infrastructure investment decisions were considered for the 10-year budget 2018-2028. These address the most immediate aspects of the long-term infrastructure challenges and opportunities. The key infrastructure investment decisions were:

Table 3.1: Key infrastructure investment decisions for the 10-year budget 2018-2028

Key decision area

Co-ordinating investment and planning to enable growth

Enhancing the performance of Auckland’s infrastructure

Creating resilient infrastructure networks

Transport Choices

X

X

X

Water quality improvement programme

 

X

 

Coastal management and response to climate change

 

 

X

Renewal of community facilities

 

X

 

Community assets to support growth and development

X

 

 

City Centre investment timing and 2021 events

X

 

 

Progressing urban development

X

 

 

The follow section outlines each key infrastructure decision and the final decision that is included in the 2018 10-year budget and 30-year investment scenario (section 4). As required by legislation the following section also sets out the other principal options that we considered.

As a result of feedback from consultation, and further development of options while finalising the 10-year budget, some options have been refined and vary from those included in the draft Infrastructure Strategy and consultation budget.  

Transport Choices

Without an appropriate infrastructure investment response, there will be a significant reduction in transport service levels. For example:

  • 25 per cent of Auckland’s arterial roading network is now congested in the morning peak compared to 18 per cent three years ago.
  • Congestion outside peak times and on weekends is also becoming more frequent with over 10 per cent of the network now experiencing inter-peak congestion.
  • Auckland has also seen a near-doubling in road deaths and serious injuries over the past five years.

ATAP set out a $28 billion investment package (local and central government combined) that seeks to balance transformational change while addressing the critical transport challenges that Auckland currently faces. The key outcomes expected from the ATAP package include:

  • Supporting substantial growth in rapid transit corridors, to enhance capacity and the potential for housing growth.
  • Initial support to enable greenfield development where around 30 per cent of Auckland’s growth is expected to occur.
  • Support for an increase in public transport and cycling mode share, with flow on benefits for health, safety, the environment and congestion.
  • Improved access as a result of more congestion free alternatives for travel and changes in land use enabled by rapid transit investment.
  • A 60 per cent reduction in deaths and serious injuries on Auckland’s transport network, from 813 in 2017 to no more than 325 by 2027.
  • Improved environmental outcomes through the provision of lower carbon alternatives for travel and by encouraging less single-occupant travel.

As part of the overall ATAP package, the council is planning $12 billion of capital investment over the next 10 years (representing the combined programmes of Auckland Transport, City Rail Link Limited and Crown Infrastructure Partners). This investment will help progress key ATAP outcomes as follows:

  • Increasing total public transport boardings from 88.4 million in 2016/2017 to 149.7 million by 2027/2028
  • Improving the productivity of key arterial roads in the morning peak by 14 per cent by 2028, which when combined with increased public transport usage and provision for walking and cycling will support the ATAP outcome of maintaining congestion at 2016 levels
  • Reducing deaths and serious injuries on local roads by 60 per cent compared to 690 in the year to December 2017, which when combined with safety improvements for state highways and walking and cycling will support the ATAP objective of reducing deaths and serious injuries on the total Auckland network by 60 per cent

This investment will also ensure that we look after our existing assets and ensure that at least 80 per cent of our urban roads meet maintenance standards in terms of ride quality.  

Key decision: The level of investment in transport infrastructure and funding mechanism

Final decision for this 10-year Budget

Option B, $12 billion of capital investment in transport over 10-years supported by a regional fuel tax

Option A:

 

Rely on existing funding tools

 

A $9 billion capex investment package in transport over 10 years. This level of investment will primarily deliver renewals and committed projects, including:

  • committed projects such as City Rail Link and electric trains
  • renewals and ongoing operational requirements
  • minor safety improvements
  • Some high priority projects, e.g. Eastern Busway

Committed projects, such as the City Rail Link and Eastern Busway, will improve access to the City Centre and public transport services from the east.  Some support is available to enable new greenfield growth areas in the North and South.

Additional safety projects, new investment in public transport infrastructure, walking and cycling, optimisation and technology, and road capacity are unable to be funded at this level of investment.

The current challenges of escalating congestion, rising deaths and serious injuries on the roading network, negative environmental impacts from transport and supporting housing growth will not be addressed.

Option B:

Implement the ATAP package, enabled by a regional fuel tax

A $12 billion  capex investment package in transport over 10 years enabled by a regional fuel tax of 10 cents per litre plus GST.

This level of investment enables implementation of the April 2018 ATAP package.  Projects in the overall programme, partly funded by the regional fuel tax, include:

  • Bus priority improvements
  • City Centre bus infrastructure
  • Improving Airport access
  • Eastern Busway (formerly AMETI)
  • Park and Rides
  • Electric trains and stabling
  • Downtown ferry redevelopment
  • Road safety
  • Active transport
  • Penlink
  • Mill Road corridor
  • Road corridor improvements
  • Network capacity and performance improvements
  • Growth related transport infrastructure

This option is expected to achieve the key outcomes of the ATAP package, such as supporting growth in transit corridors and greenfield development areas, increasing public transport and cycling mode share, improving access by providing congestion free alternatives for travel, reducing deaths and serious injuries and improving environmental outcomes.

Option C:

Entire Auckland Transport capital programme identified in the Regional Land Transport Plan

If additional funding is available the delivery of lower priority projects could be advanced. Examples of projects currently not funded in the Regional Land Transport Plan include:

  • New bus station at Grand Drive (Orewa)
  • Level crossing safety improvements and grade separation
  • Some ferry terminal upgrades and other ferry improvements
  • Enhanced park and ride programme
  • Some supporting growth infrastructure in the North, North-west and South

This option would cost substantially more the $12 billion programme in option B. It would be challenging for council and central government to finance and for the construction sector to deliver within the first decade. Projects would likely be delivered over a longer period.

Water quality improvement programme

Auckland has a significant issue of pollution of its waterways across the region. There are areas of Auckland’s beaches, harbours, streams and aquifers that are significantly affected by poor water quality. Many waterways and beaches are unsafe for swimming after storm events, and some beaches are permanently closed to swimming. This is a result of pollution from a number of sources including:

  • wastewater overflows from the combined sewer network when stormwater overwhelms the system capacity
  • pollution from road run-off
  • sedimentation from urban and rural land use
  • old or poorly maintained onsite wastewater systems (septic tanks etc.)
  • impacts from farming such as livestock in streams and fertiliser runoff.

The Water Quality Improvements Programme of work has been developed to address these issues. The key projects and outcomes are as follows:

  • 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
    • develop a warrant of fitness style scheme to ensure the systems perform.

Key decision: Introduction of a targeted rate to accelerate the implementation of the Water Quality Improvement Programme

Final decision for this 10-year Budget

Option B, delivery of programme by 2028.

Option A:

Status quo funding

Delivery of Programme by 2048

 

Costs in line with current budgets and deliverable with current funding sources, continues with existing works included in the Asset Management Plans of Watercare and Healthy Waters.

The benefits of the Water Quality Improvement Programme would be realised over a 30-year timeframe.

Includes Central Interceptor project and some stormwater upgrades. Reduces the number of locations in the Western Isthmus that experience wastewater overflows every time it rains from 43 points to 31 points by 2028.

The number of overflow points in the Western Isthmus that spill more than twice a year reduces from 218 to 214 by 2028.

Option B:

Delivery of programme by 2028

 

Accelerate the delivery of the Water Quality Improvement Programme, realising the benefits over a 10-year timeframe.

The programme includes:

  • leveraging the investment in Central Interceptor by bringing forward investment in the Western Isthmus from outer years of Asset Management Plans to achieve improved water quality outcomes within ten years
  • infrastructure for stormwater contaminant removal across the region
  • rehabilitation of urban and rural streams
  • introduction of regional septic tank monitoring.

By 2028 overflow points on the Western Isthmus is expected to be reduced to 10 locations that are anticipated to overflow 2-6 times per year on average.  Reduced faecal contamination of waterways from onsite wastewater systems in high risk areas. Reduced sediment runoff in to the Kaipara Harbour.

Additional funding requirement of $856 million between 2019 and 2028.

Coastal management and response to climate change

Auckland Council owns and manages approximately $350 million of coastal protection, access and amenity related assets over Auckland’s 3,200km of coastline. These form part of the roading and community asset categories described elsewhere in this strategy depending on the specific function of the each asset.  We consider them as a related group here because they face a common issue.

Historic underinvestment in these assets has primarily addressed reactive works only and resulted in an asset base that is in relatively poor condition with insufficient funding available to renew all damaged assets for the next 10-years. The predicted impacts of climate change, coupled with failing assets, has led to community groups requesting improved coastal protection, with calls to better manage our coastal assets.

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.

Consultation on the proposed budget options for coastal assets led to a wider discussion about funding responses to climate change, which is leading to increasing numbers of extreme weather events, causing storm damage and landslips. There is a need to respond quickly to infrastructure damage that arise from frequent storms, and fund urgent or emergency works. Funding is also needed to proactively address areas at risk of landslips. 

Key decision: The level of funding for renewal and management of coastal assets and responding to climate change

Final decision for this 10-year Budget

Option B, strategic approach

Option A:

Reactive investment when assets fail.

(status quo)

Coastal assets are replaced when perceived to be in poor condition, within limited budget.. Maintenance expenditure continues at previous levels.

There is no asset management plan driving the forward work programme and implementation is based on local budgets, making large projects difficult to plan and fund.

Assets are replaced on or after failure until funding is exhausted, with approximately six per cent of assets renewed in next 10-years. Maintenance budgets will not be sufficient to address or resolve deterioration issues.

This option is expected to reduce service levels from coastal protection, access and amenity assets over time due to deterioration and the combined effects of coastal erosion and predicted climate change. Increases the risk of disruption to services.

Option B:

Strategic approach.

 

 

 

Introduces a delivery model where asset replacement is based on prioritised need for protection and development of new assets. This requires initial investment to develop coastal compartment management plans that include public engagement, which will then inform a region wide coastal asset management plan (AMP).

The operational funding required for the development of compartment management plans and a coastal asset management plan is $1 million over the first two years of the 10-year budget. Approximately $200,000 operational budget will be required annually between 2021 and 2028.

The AMP will more accurately inform future funding requirements. As an interim measure, the increased capital investment required is estimated to be $11 million over the first three years of the budget (in addition to the $19 million of funding in the status quo option), and an additional $79 million between 2021 and 2028. 

In addition to funding for management of coastal assets, the climate change response fund will establish new funding for the management of non-coastal assets, such as land slips on council land. The fund consists of:

  • a pro-active capex budget of $2 million per annum
  • a $20 million reactive fund that will be rolled over annually until the fund is exhausted.  

This option provides a higher level of service than option A and mitigates some risks of disruption to services.

Option C:

Replace assets when assessed to be in poor condition, and new works.

 

 

Involves replacing assets when they are assessed to be in poor condition, infrequent new works, and construction of the Orewa seawall during the first two years of the 10-year budget.

Current demand for renewals and larger scale interventions is assumed to continue. Without the benefit of a coastal asset management plan, it is accepted that capital expenditure would be more ad-hoc and therefore potentially higher.

Total capex has been estimated at $150 - $200 million between 2019 and 2028. The assessment of future demand for capital investment assumes that up to 35-40 per cent of assets could require replacement and additional work in the next 10 years without prioritisation in place.

This option is less likely to deliver long term sustainable solutions than option B.

 

Renewal of community facilities

Auckland’s portfolio of community facilities is aging and faces a range of challenges such as weathertightness, asbestos and seismic strength issues. The financial impacts of asbestos, seismic and weathertightness are still being quantified based on the outcome of the asset condition reviews across the portfolio.

Due to demographic and social changes in the community, many of our facilities are no longer fit for purpose or reflective of community needs. Services and assets need to respond to pervasive technology and changing demand patterns.

Key decision: The level of funding for renewal of community assets (parks, recreation and community facilities)

Final decision for this 10-year Budget

Option A, baseline

Option A:

Baseline

 

Funding of $961 million has been allocated to renewals for 2019-2028.

Primarily funds renewal of critical assets, resulting in increasing reactive maintenance and operational costs. Will require renewal expenditure to be carefully prioritised to ensure maximum value for money taking into account asset condition, community needs and asset utilisation.  

There is a risk of decreased levels of service over the longer term as assets are only renewed when critical, resulting in deteriorating assets which increases the risk of failure and asset closure.

Mitigation of this risk requires a focus on creating a fit for service portfolio through trade-offs between ageing facilities, disposal of assets and investigation of optimisation opportunities to mitigate impacts on service levels. This may mean some facilities that are not well utilised (or not meeting current community needs) are not replaced, and instead investment is focused on new facilities that are more fit for purpose.

This represents an increase from the 2015-2025 LTP of $200 million.

Option B:

Significant increase above baseline

Significant increase of $759 million above baseline over 10-years.

Fully funds the renewal of appropriate assets keeping the portfolio in a good condition but will require more resources to deliver.

Minimal trade-offs with continued optimisation options to ensure assets are fit for purpose.

Funding requirement of $1.72 billion between 2019 and 2028.

Community assets (parks, recreation and community facilities) to support growth and development

Auckland’s forecasted growth is expected to increase demand for community assets (parks, recreation and community facilities) including:

  • the provision of parks and recreation networks in future urban areas
  • increased use of parks and recreation facilities in the existing urban area due to intensification
  • re-development of existing and provision of new multi-purpose facilities to support rapidly growing and diverse communities
  • additional provision of land for cemeteries (including development)

Key decision: The level and focus of investment in providing for growth and diversity in community assets (parks, recreation and community facilities)

Final decision for this 10-year Budget

Option B, moderate increase above baseline

Option A:

Baseline

 

Minimal provision of new community assets (parks, recreation and community facilities) to provide for growth and diversification.

Results in a lower level of provision than identified in the council’s adopted policy.

This option includes:

  • committed projects 
  • cemetery land acquisition and development 
  • park acquisition and associated infrastructure development limited to key priority areas only
  • new community facilities in Takanini , Westgate and Flat Bush
  • new pool and leisure centre in Flat Bush

Requires optimisation of existing assets and improved service delivery to maintain the existing level of service.

Funding requirement of $1.5 billion between 2019 and 2028.

Option B:

Moderate increase

Limited provision of new community assets (parks, recreation and community facilities) to provide for growth and diversification.

Results in a lower level of provision than identified in the council’s adopted policy.

In addition to Option A this option includes:

  • open space acquisition and associated infrastructure development limited to priority greenfield and brownfield areas, including an additional $200 million above the baseline option 
  • new community facility in Avondale
  • new pool and recreation facility in Avondale/New Lynn by 2028
  • investigation and business case for a new pool in the north west, with delivery in  the second decade
  • establishment of a Sport and Recreation Facilities Investment Fund with additional capital expenditure of $100 million to create a total fund of $120 million. The objective of the fund is to allow the council to deliver on the Sports Facilities Investment Policy (under development)  and provide value for money by leveraging external investment
  • additional funding of $170 million to support delivery of the community related One Local Initiative Programme (excludes sub-regional projects)

Total funding requirement of $2.1 billion between 2019 and 2028

This option will require optimisation of existing assets and improved service delivery to maintain the existing level of service.

Option C:

Substantial increase

Moderate additional provision of community assets (parks, recreation and community facilities) to provide for growth and diversification.

Achieves a lower level of provision than identified in the council’s adopted policy.

In addition to option B this option includes:

  • acquisition of new parks and associated infrastructure in line council policy, and limited additional park development
  • some further provision of community facilities in key priority areas

Optimisation, improved access and capacity within the network will primarily meet growth requirements and maintain existing service levels.  

Total funding requirement of $2.41 billion between 2019 and 2028.

City centre investment timing and 2021 events

Auckland’s city centre is an increasingly important ‘economic engine’ for both the region and the whole of New Zealand, and has experienced growth significantly above forecasts over the last five years. Auckland is likely to be the host city for two key and high profile events in 2021, namely the America’s Cup (AC36) and APEC, which have the potential to provide significant economic and legacy benefits for Auckland and New Zealand.

The City Centre Masterplan (CCMP) presents a 20-year vision that sets the direction for Auckland's city centre as its cultural, civic, retail and economic heart. It presents a vision of a city centre that is more family, pedestrian and environmentally friendly. The City Centre Masterplan identifies numerous projects to implement the vision, requiring investment in stormwater, transport and community services infrastructure.

The city centre investments encompass four integrated programmes of works, including:

  • America’s Cup 36 Infrastructure – delivers infrastructure for the America’s Cup event as well as a legacy for the city centre. The total forecasted cost of this programme is $123 million, of which $66 million is funded by central government.
  • Downtown – Delivers a connected and accessible waterfront, prepares for growth of cruise and ferry services and supports activation of Queens Wharf. This programme aligns with the America’s Cup event in 2021. Total forecasted cost of this programme is $430 million.
  • Midtown and Uptown – delivers improved pedestrian and public spaces around key transport hubs. The programme is aligned with, and leverages off, development opportunities from the City Rail Link, bus infrastructure, and the New Zealand International Conference Centre. Total forecasted cost of this programme is $430 million (including $95 million for stage 2 and 3 of the Victoria Linear Park and Wellesley Street streetscape and amenity upgrade)
  • Wynyard Quarter and Westhaven – progresses planning and engagement for Wynyard Point, builds on the success of the waterfront’s regeneration and continues to deliver an accessible and sustainable waterfront. Total forecasted cost of this programme is $144 million.

Key decision: The timing of implementation of the City Centre Masterplan

Final decision for this 10-year Budget

Option B, fund complete downtown programme

Option A:

Baseline

$911 million

 

At the baseline level of funding the downtown programme is unable to be completed in time for the America’s Cup and APEC events in 2021. As a result, the full economic and legacy benefits of these events will not be realised, such as making the downtown more family, pedestrian and environmentally friendly. Delivery of the entire downtown programme is at risk due to the interrelationship between projects in this area.

Stages 2 and 3 The Victoria Linear Park and Wellesley Street streetscape and amenity upgrade will not be able to be delivered in the midtown programme.  The opportunity to leverage benefits from substantial transport investments in the midtown area, such as the City Rail Link and the Wellesley Street Bus Corridor project, will be reduced.

The America’s Cup 36 Infrastructure programme and the Wynyard Quarter and Westhaven programmes are fully funded.

Option B:

Fund complete downtown programme

$966 million

 

 

Option B enables the downtown programme to be fully completed in time for the America’s Cup and APEC events in 2021.

The America’s Cup 36 infrastructure programme and the Wynyard Quarter and Westhaven programmes are fully funded.

This is expected to deliver the following benefits:

  • Align the city centre’s development with the America’s Cup 36 and APEC events in 2021.
  • Leverage off opportunities from the City Rail Link, bus infrastructure and other transport infrastructure developments, to minimise disruption and maximise efficiency
  • Alignment of council family investments, public and private developments to achieve a holistic outcome
  • Supporting growth – continue to improve access into the city and create high quality public spaces for people to live, work and play

Stages 2 and 3 of the Victoria Linear Park and Wellesley Street streetscape and amenity upgrade would not be delivered in the midtown programme in the first decade.  The opportunity to leverage benefits from substantial transport investments in the midtown area, such as the City Rail Link and the Wellesley Street Bus Corridor project, would be reduced.

Additional funding sources such as further development contributions, targeted rates and private sector investment could be implemented to fully deliver the midtown and uptown programme once the costs and timings of these projects are confirmed.

Option C:

Fund all programmes

$1,061 million

Option C fully funds all programmes, including midtown and uptown.

This option provides a greater degree of certainty of funding and delivering the uptown and midtown programme timed with completion of the City Rail Link and Wellesley Street Bus Corridor Project.

Progressing urban development

A number of town centres have been identified as priorities for regeneration through Panuku Development Auckland. These town centres are known as Transform, Unlock and Support locations. Urban regeneration of existing town centres across Auckland contributes to the delivery of the Auckland Plan and the following priorities:

  • leverages the investment in the transport network (existing and planned), in particular public and active transport
  • facilitates housing through intensified development to help ease the shortage of housing and improve affordability
  • protects the environment by updating tired centres with more sustainable and resilient development and reduces sprawl onto rural land
  • makes Auckland a great place to live, work, play and visit, as an inclusive city which celebrates its unique mana whenua identity and cultural diversity, driven by place making and engagement.

Successful regeneration and development requires investment in amenity and infrastructure upfront to build community support, homeowner demand and private sector interest. All categories of infrastructure covered by this strategy are relevant to success regeneration of these areas. Panuku has a balanced strategy for each location combining commercial development, place making and activation, public realm upgrades and other public good investment. Panuku also works closely with a range of Crown agencies including Housing New Zealand (HNZ) in a number of locations (e.g. Manukau, Avondale, Northcote, Onehunga).

Key decision: The number of Transform and Unlock areas to be progressed within the next 10 years

Final decision for this 10-year Budget

Option B, credible progress

Option A:

Baseline

Funding requirement of $344 million over 10-years.

Enables completion of legacy projects at Hobsonville, Ormiston, Wynyard Central Stage 1, and slower progress towards implementation in Transform Manukau. Implementation progress will be limited to commercial sales of sites and completion of legacy projects.

Strategic and commercial value is not achieved from the sale of council-owned sites and the overall impact of the Panuku programme is small and incremental.

Does not optimise opportunities to work with partners including HNZ.

In the majority of locations local board and community aspirations will not be met until a much later date.

Option B:

Credible progress

 

Option B includes additional funding from asset sales of $406 over 10-years and amendments to repayment periods for the Strategic Development Fund.

Additional funding of $406 million can be allocated to the Transform and Unlock Programme (excluding the waterfront) from the reinvestment of the proceeds of property sales.

Locations that can be funded through the sale and reinvestment of assets have been prioritised. These include the Transform locations at Manukau and Onehunga along with the Unlock locations at Avondale, Henderson, Hobsonville, Northcote, Ormiston, Papatoetoe, Panmure and Takapuna.

A longer repayment period has been agreed for the Strategic Development Fund for acquiring properties that facilitate complex, larger developments.

Looking ahead: longer-term decisions

Beyond the seven key infrastructures investment decisions considered for the 10-year budget 2018-2028, decisions will be required in the future about infrastructure investments over the remaining two decades of this strategy.

The major projects and programmes identified in the 30 year investment scenario of this strategy reflect current plans and assumptions. While there is a reasonable degree of certainty about the investment identified in the first decade, projects identified in decades two and three (2028-2048) are more conceptual, and are likely to change in response to future needs.

This section of the strategy identifies some of the key decisions that we expect will be required in the future about our longer-term infrastructure investments and some of the key options and choices we will need to consider. At this stage, the timing of when we will make these decisions is unclear and while some cost estimates are included in the 30 year scenario, further work will be needed to determine the likely scale and extent of each decision.

Water

A range of responses are likely to be required to meet Auckland's long-term drinking water requirements. Beyond the next decade, decisions about investment in water infrastructure may include:

  • The future sources of Auckland’s drinking water
  • The extent to which new technologies might increase water supply
  • The extent to which demand management can help to reduce water consumption.

Watercare’s water asset strategy, which is reflected in the 30-year investment scenario of this strategy, presents a package of inter-related investments that provide a safe, resilient supply of drinking water that will meet Auckland’s forecasted growth. It includes major investments in the Waikato and western treatment plants to service metropolitan Auckland. This is complimented with significant investment in the transmission network and reservoirs, including a second Waikato pipeline by 2048.

New technology, such as water recycling, may provide alternative options for sourcing some of Auckland’s future drinking water.  Smart water metering, pricing and other demand management initiatives may reduce per-capita consumption, reducing demand for some new investments. 

Wastewater

Auckland’s population growth and increasing environmental expectations require a substantial investment in wastewater infrastructure. Watercare’s wastewater asset strategy, which is reflected in the 30-year investment scenario of this strategy, presents a package of inter-related investments that will meet Auckland’s long term wastewater needs. This includes upgrades to the two major wastewater plants at Mangere and Rosedale, construction of the Central and Northern Interceptors and augmentation of the southern interceptor to service the metropolitan area of Auckland. Major upgrades to sub-regional treatment plants at Snells Beach, Army Bay and Waiuku are also planned. 

The investments in the first decade of this strategy establish the core network that will meet Auckland’s medium to long-term wastewater needs. Major investments in the second and third decades aim to augment the network established in first decade. As such, longer term decisions about wastewater investments are more likely to focus on the quality of treatment that is required.

Stormwater

The Water Sensitive Design approach to stormwater and flooding management adopted by the council means that, beyond the first decade, the majority of stormwater investments are expected to be relatively small projects in response to where and when grow occurs.

The largest investment currently identified in the second and third decades is the southern future urban area programme, which will enable urban development of a number of areas subject to significant flooding constraints including Opaheke, Drury and Takanini. Decisions will be required about the optimal technical solution to address flooding in this area, and given the relatively small area of benefit of this investment, the appropriate funding mechanism for this investment.

Community services

While demand for community services is expected to increase over the next 30-years, there is a high degree of uncertainty about future demand due to:

  • the rate and distribution of population growth
  • demographic changes, such as increasingly diverse communities
  • changes in recreational trends, such as an increase in informal recreation
  • a higher proportion of medium and high density housing, which typically have less private open space
  • increasing expectation to deliver services to meet demand.

There is also uncertainty about the adequacy of the existing network of community facilities into the future. Auckland’s portfolio of community facilities is aging and faces a range of challenges such as weathertightness, asbestos and seismic strength issues. Due to demographic and social changes in the community, many facilities are no longer fit for purpose or reflective of community needs.

Beyond the first decade, these factors will mean there is a continuing need to review the portfolio to ensure the provision of community facilities will meet changing community needs and provide value for money. Long-term decisions about investment in community facilities may include:

  • the type of facilities provided by council
  • the role of council in delivering community services, such whether as service is best delivered by the council, a community organisation, or in partnership
  • the optimal level of provision and network that will meet future community needs
  • whether facilities that are not well utilised or meeting community needs are replaced.
Transport

Between 2015 and 2018 Auckland Council worked closely with the government through the Auckland Transport Alignment Project to develop a recommended long-term strategic approach to transport in Auckland. This included an indicative 10-year package of priority investments, which formed the basis of the 10-year budget, and has informed the 30 year investment scenario identified in this strategy.

Looking beyond the next decade, ATAP identifies some key decisions that will need to be made in the future, such as:

  • the alignment, mode and timing of further major investments
  • the extent to which transport challenges should be addressed through demand management (e.g. road pricing) rather than infrastructure investment
  • the extent to which new and developing transport technologies (e.g. ridesharing, connected and autonomous vehicles) can help address our transport challenges.

These are discussed further below:

Future major investments

The 10-year transport programme will complete much of Auckland’s rapid transit network and continue the targeted development of the strategic roading network. Further improvements to these networks are identified in ATAP as future priorities, and are shown indicatively in the 30-year investment scenario of this strategy. Key future decisions on these projects may include:

Longer-term transport decisions:

Future investment

Key decisions

Rail network development

  • What track upgrades to the rail network are required to reduce passenger and freight conflicts?
  • What track, station and rolling stock upgrades are required to enable express and inter-city train services?

North Shore rapid transit (City centre to Takapuna and Orewa)

  • What can extend the life of the current Northern Busway?
  • Is light-rail the right mode for North Shore rapid transit?
  • What alignment should North Shore rapid transit follow, especially through future greenfield areas?
  • How should rapid transit integrate with a potential future road crossing of the Waitemata Harbour?

Upper Harbour rapid transit (Westgate to Albany)

  • What type of corridor and mode (e.g. shoulder bus lanes, full busway, light rail etc.) is most appropriate for this corridor?
  • Where should future stations be located and how should they integrate with the rest of the public transport network?

Additional Waitemata Harbour Crossing (road)

  • What is the optimal timing of the investment?
  • What is the exact route for the project?
  • What associated upgrades to the rest of the transport network might be required to maximise the project’s benefits?
  • How does the project integrate with North Shore rapid transit?

Cross isthmus rapid transit (New Lynn to Onehunga)

  • What route should this corridor follow?
  • What mode should this corridor be?
  • Where should the stations be located and how should this corridor integrate with the rest of the public transport network?

Access to Ports of Auckland

  • What scale of improvement is required?
  • What upgrades are still necessary if the Port moves from its current location?

Supporting greenfield growth

  • What is the right alignment and form for projects supporting greenfield growth?
  • How will major investments support the desired urban form in greenfield growth areas?

The role of demand management (e.g. road pricing)

ATAP highlighted that achieving a step-change improvement in the performance of Auckland’s transport network would only be possible through a greater focus on travel demand, particularly through moving to directly incentivising more efficient travel patterns through road pricing. ATAP also highlighted that substantial further work would be necessary before road pricing should be implemented. A joint Council-Government project investigating road pricing is currently underway.

Key future decisions around transport technology may include:

  • What are the impacts on travel affordability, and what mitigation might be required, particularly for lower income residents who face long commutes?
  • What are the impacts on overall accessibility to jobs, education and services?
  • What investments that improve travel choices (e.g. improving public transport and cycling infrastructure) need to be completed before road pricing should be implemented?
  • What investments will be more, or less, necessary with road pricing in place?

The role of developing transport technologies

Developing technologies like connected and autonomous vehicles (including public transport), especially when combined with ride-sharing, have the potential to fundamentally reshape the way transport is used and provided, blurring the boundaries between private and public transport. These developments could create several benefits, including increasing the number of vehicles that can travel on a road at the same time and reducing deaths and serious injuries from traffic incidents. There is also a risk that these technology advances could create negative effects, particularly if they lead to large-scale growth in vehicle travel or poorer quality street environments.

While rapid technological progress is anticipated, it's hard to know which developments will be successful or when we will be able to use them.  Key future decisions around transport technology may include:

  • What regulation is required to maximise benefits and minimise the risks from new technologies?
  • What investment in upgrading infrastructure will be necessary to maximise the benefits from new vehicular technology?
  • How might the delivery of public transport services evolve over time due to changing technology?
  • What investments may no longer be required, or may be required earlier, if the pace of technology developments and uptake is different to what we expect?

Section four: 30-year Investment Scenario

Investment in council infrastructure is constrained by funding availability. This scenario reflects the $26 billion of funding available in the first decade (2019-2028) for capital expenditure with the funding tools as set out in the Financial Strategy in Part 1.4 of this volume.

This section outlines what we consider to be the most likely scenario for the management of the council’s infrastructure assets over the next 30 years. If additional funding becomes available, the council may be able to accelerate investment in improving infrastructure provision across the region.

The scenario consists of three parts:

  • total projected expenditure by infrastructure type over the next 30-years
  • projected annual capital and operational expenditure for each infrastructure type between 2019-2048
  • a summary of major projects and programmes included in the 30-year scenario.

Overview of projected expenditure by infrastructure type:

Table 4.1: Total expenditure by infrastructure type 2019-2048

Infrastructure type

Capital expenditure

Operating expenditure

Roads and footpaths

$25.0 billion

$27.1 billion

Public transport

$19.7billion

$44.6 billion

Total Transport

$44.7billion

$71.7 billion

Water supply

$7.7 billion

$10.7 billion

Wastewater

$11.6 billion

$18.0 billion

Stormwater

$6.1 billion

$7.0 billion

Total Water

$25.4 billion

$35.7 billion

Community Services

$18.5 billion

$27.8 billion

Total infrastructure investment

$88.6 billion

$135.2 billion

Note: The financial projections for transport infrastructure are for Auckland Transport expenditure only.  Some major NZTA and KiwiRail investments are identified in the summary of major transport programmes and projects to provide context for the council investment in transport infrastructure. 

Chart 4.1: Projected capital expenditure by infrastructure type

Chart 4.1: Projected capital expenditure by infrastructure type, table of the charted information follows
Table of the charted information
Infrastructure type  2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
Roads and footpaths 564 575 648 637 586 663 647 712 1,054 1,151 734 969 806 1,037
Public transport 454 633 633 656 625 524 490 296 218 107 390 625 723 1,281
Water supply 184 185 135 150 140 292 316 161 191 195 211 254 309 377
Wastewater 325 375 475 512 457 400 401 236 261 273 290 350 427 520
Stormwater 131 135 129 134 138 141 145 146 146 149 170 208 254 309
Community Services 256 265 311 272 288 400 463 501 491 451 536 659 796 963

Table of the charted information ends.

Chart 4.2: Projected operational expenditure by infrastructure type

Chart 4.2: Projected operational expenditure by infrastructure type, table of the charted information follows
Table of the charted information
Infrastructure type  2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
Roads and footpaths 449 467 491 515 544 565 583 611 652 694 799 963 1,157 1,394
Public transport 904 965 1,020 1,074 1,126 1,177 1,219 1,258 1,295 1,324 1,198 1,458 1,789 2,193
Water supply 203 210 215 231 235 243 266 277 284 303 299 368 447 542
Wastewater 357 372 390 426 447 467 503 521 535 564 483 591 722 880
Stormwater 123 127 129 134 139 147 153 158 165 172 199 244 298 363
Community Services 602 590 604 628 651 675 700 729 765 803 814 955 1,122 1,318

Table of the charted information ends.

Roads and footpaths

Chart 4.3: Projected capital expenditure

Chart 4.3: Projected capital expenditure, table of the charted information follows
Table of the charted information
Capital expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
New assets 344 343 426 348 308 365 329 363 663 726 347 509 305 508
Renewals 175 172 196 209 223 282 319 344 376 425 388 460 501 529
Externally delivered (Crown Infrastructure Partners) 46 60 26 80 56 16 0 5 15 0    

Table of the charted information ends.

Chart 4.4: Projected operating expenditure

Chart 4.4: Projected operating expenditure, table of the charted information follows
Table of the charted information
Operating expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
Core operating expenditure 112 112 118 123 125 128 129 131 137 143 289 408 563 761
Depreciation 252 270 291 314 348 373 396 427 459 484 510 554 594 634

Table of the charted information ends.

 Table 4.2: Roads - major programmes and projects

Project

Description

Map reference

Nominal $ (millions)
Decade 1

2019-2028

Nominal $ (millions)
Decade 2

2029-2038

Nominal $ (millions)
Decade 3

2039-2048

Auckland Transport initiatives

Matakana Link Road

A connection between State Highway 1 and Matakana Road.

1

89

 

 

Lincoln Road Corridor Improvements

Improvements to Lincoln Road between Henderson and SH16, including bus priority measures

2

85

 

 

Mill Road

A new arterial road between Manukau and Drury (delivered in two stages)

3

507

875

 

Penlink

A new connection between the Northern Motorway and the Whangaparāoa Peninsula

4

200

 

 

Network Capacity and Performance Improvements

Interventions to optimise specific routes through initiatives such as synchronisation of traffic signals, best-use of road layout, and addressing traffic restrictions

 

290

Continuing programmes

Continuing programmes

Walking and Cycling Programme

Walking and cycling programmes, including completion of Urban Cycleways Programme, improving city centre access, access to RTN stations, walking and cycling in metropolitan areas, and providing new footpaths

 

536

Continuing programmes

Continuing programmes

Safety Programme

A programme of investment to address safety and operational deficiencies across AT's road, motorcycle, pedestrian and cycle networks, including safety improvements in high risk urban and rural roads and intersections

 

703

Continuing programmes

Continuing programmes

Growth-related initiatives delivered by Auckland Transport and Crown infrastructure Partners

Local Residential Growth Fund

A fund to provide transport infrastructure to support local residential housing growth

 

 

391

350

350

Greenfields Transport Infrastructure (Auckland Transport)

Infrastructure programme to support high priority greenfield areas.  Projects include upgrading Trig Road and new Redhills and Wainui connections 

5

300

 

 

Crown Infrastructure Partners

Delivery of growth related projects in the North and South

6

360

 

 

The following roading, public transport and active transport investment has been identified to enable development of future urban areas.  Some projects will be funded and delivered by Auckland Transport in decade 1using the greenfields transport infrastructure fund or by Crown Infrastructure Partners.

 

Warkworth

7

 

221

 

Wainui, Silverdale and Dairy Flat

8

 

769

1,342

Whenuapai, Redhills, Kumeu, Huapai and Riverhead

9

 

1224

53

Pukekohe, Paerata, Drury West, Drury-Opaheke and Takanini (excluding Mill Road)

10

 

925

161

NZTA initiatives

Northern Motorway (SH1) Improvements

Safety and capacity upgrade of SH1 between Greville Road and Upper Harbour Drive

11

576

 

 

A new SH1 / SH18 motorway-to-motorway connection

12

SH1 improvements north of Albany, including bus shoulder lanes from Albany to Silverdale

13

332

Additional crossing of the Waitematā  Harbour

14

 

 

TBC

SH1 widening Constellation to Onewa Road and provision of south-facing ramps at SH1 / SH18 interchange

15

TBC

Southern Motorway (SH1) Improvements

Capacity and safety improvements from SH1 / SH20 interchange at Manukau to Bombay

16

480

 

 

Improvements at various points along SH1 to improve access / egress, improve throughput and reduce travel times

 

 

TBC

 

SH1 widening Hill Road to Papakura

17

 

 

TBC

Northwestern Motorway (SH16) Improvements

Completion of SH16 / SH18 motorway-to-motorway connection

18

 

TBC

 

Improvements / extension of SH16 to provide improved access to Grafton Gully and the Port

19

 

TBC

 

SH16 widening Te Atatu to Westgate

20

 

TBC

TBC

South West Motorway (SH20 and SH20A) improvements and improved northern airport access

SH20 and SH20A widening Mangere Bridge to Mangere Town Centre to Airport

21

 

 

TBC

State Highway 20B Improvements

Capacity improvements along SH20/SH20B

22

459

 

 

New strategic roads to Kumeu and Pukekohe

New road connections to the Kumeu and Pukekohe growth areas

23

 

TBC

 

 

 East West Link (revised)

Improved access to key freight destinations

24

800

 

 

Connecting Northland (SH1 improvements)

Puhoi to Warkworth

25

778

 

 

Warkworth to Wellsford

26

 

TBC

 

Figure 4.1 (map): Roads - major programmes and projects

Map showing details of Auckland’s rural land, existing urban areas, future urban areas and road improvements over decades 1, 2 and 3

Public transport

Chart 4.5 - Projected capital expenditure

Chart 4.5 - Projected capital expenditure , table of the charted information follows
Table of the charted information
Capital expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
New assets 210 368 258 301 296 415 417 253 146 65 310 512 552 1,069
Renewals 9 11 16 21 26 35 40 42 42 42 79 113 171 212
Externally delivered (Crown Infrastructure Partners) 235 254 359 334 304 74 34 0 30 0    

Table of the charted information ends.

Chart 4.6 - Projected operating expenditure

Chart 4.6 - Projected operating expenditure, table of the charted information follows
Table of the charted information
Operating expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
Core operating expenditure 688 728 756 782 809 841 871 899 927 954 1,046 1,273 1,548 1,883
Depreciation 93 94 93 94 96 102 108 117 128 137 152 186 241 310

Table of the charted information ends.

Table 4.3: Public transport – major programmes and projects

Project / Programme

Description

Map Reference

Nominal $ (millions)
Decade 1

2019-2028

Nominal $ (millions)
Decade 2

2029-2038

Nominal $ (millions)
Decade 3

2039 - 2048

City Rail Link

City Rail Link

An underground rail line linking Britomart and the city centre with the existing western rail line near Mt Eden

1

2,852

(net of asset sales and including government contribution)

 

 

Auckland Transport Initiatives

Northern Busway Stations

A new station at Rosedale and improvements to Constellation Station associated with the extension of the Northern Busway to Albany

2

117

 

 

Eastern Busway

Projects in south east Auckland to improve transport choices and connections in the area, including a busway between Panmure, Pakuranga and Botany, the Reeves Road Flyover and Morrin to Merton Connection

3

 

923

271

 

Park and Ride Programme

Delivery of new and extended park’n’ride facilities to enhance access and increase patronage on the rapid and frequent public transport networks 

 

81

 

 

Electric train fleet expansion

Acquisition of additional electric trains and stabling to provide increased train frequencies and provide additional capacity to respond to patronage growth

 

509

410

768

CBD Bus Infrastructure Improvements

 

Delivery of bus infrastructure in the CBD, including bus priority along Wellesley Street; a new Learning Quarter bus interchange; and a new Downtown bus interchange.

4

161

 

 

Airport to Botany RTN via Manukau and Airport Access Improvements

Programme to improve airport access, including Puhinui bus-rail interchange upgrade and a range of other measures including localised bus priority and walking/cycling improvements

5

79

317

 

New Lynn to Onehunga rapid transit

 

6

 

 

123

NZTA initiatives

Light Rail 

A light rail connection between the City Centre and Auckland Airport.

     7

1,815

 

 

A light rail connection from the City Centre to Westgate-Kumeu (possibly staged with buses in the interim)

8

Northern Busway

 

Northward extension of the Northern Busway between Constellation and Albany Station

9

 

309

 

 

Improvements to SH1 between Albany and Orewa to improve the travel time reliability, including provision of bus shoulder lanes between Albany and Silverdale

10

 

332

 

 

Rapid Transit – City Centre to Takapuna and Orewa

A rapid transit connection from the City Centre to Takapuna and Orewa

11

 

TBC

TBC

Upper Harbour Rapid Transit

A rapid transit connection between Westgate and Constellation Drive

12

 

 

TBC

TBC

Below Track Rail

Auckland Rail Development

Additional rail infrastructure to support strong growth in PT passenger trips and freight carried by rail. Includes electrification to Pukekohe, third / fourth mains along the Southern Line, and an Auckland Train Control Centre

13

751

Below-track rail

Below-track rail

Level crossing improvements

Safety improvements at level crossings across the Auckland region, including level crossing closures, pedestrian level crossing improvements and level crossing grade separations

 

239

 

 

 

Below-track rail

 

Figure 4.2 (map): Public Transport – major programmes and projects

Map showing details of Auckland’s rural land, existing urban areas, future urban areas and road improvements over decades 1, 2 and 3

Water supply

Chart 4.7: Projected capital expenditure

Chart 4.7: Projected capital expenditure, table of the charted information follows
Table of the charted information
Capital expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
New assets 122 117 60 61 47 92 108 60 65 79 83 99 121 147
Renewals 52 68 65 84 87 201 197 92 121 116 128 155 188 230
Externally delivered (Crown Infrastructure Partners) 10 0 10 5 5 0 10 10 5 0    

Table of the charted information ends.

Chart 4.8: Projected operating expenditure

Chart 4.8: Projected operating expenditure, table of the charted information follows
Table of the charted information
Operating expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
Core operating expenditure 80 83 86 89 92 96 99 102 105 109 126 155 190 232
Depreciation 108 109 111 124 125 126 140 143 146 160 173 214 257 310

Table of the charted information ends.

Table 4.4: Water supply – major programmes and projects

Programme / project

Description

Map reference

Nominal $ (millions)

Decade 1

2019-2028

Nominal $ (millions)

Decade 2

2029-2038

Nominal $ (millions)

Decade 3

2039 -2048

North of Albany water supply programme

Upgrade of Wellsford , Helensville, Warkworth and Snells Beach water supply systems  

 

Orewa No.1 watermain replacement, Hibiscus Coast boost pumping and an additional watermain from Albany to Orewa.

1

 

 

 

 

2

$61

$170

$105

North West water supply programme

Replacement of the Huia Treatment Plant

Replacement of  Waitakere Treatment Plant

Replacement of Huia 1 and Nihotupu 1 watermains

Construction of the North Harbour 2 watermain between Huia and Albany.

Construction of Waitakere 2 watermain

Increase in capacity of western reservoirs

3
 

4
 

5
 

6

 

7

8

$731

$201

$221

North Shore water supply programme

New watermain connection across the Waitematā Harbour to the North Shore

New transmission pipeline between Albany and Pinehill reservoirs

9

 

10

$11

$77

$270

Central water supply programme

Increase in capacity of central reservoirs

Completion of the Hunua 4 watermain 

11

12

$103

$68

$83

South water supply programme

Increasing capacity of Redoubt reservoirs

Increasing capacity of Pukekohe reservoirs

Upgrade of Waiuku  water supply systems

Increasing capacity of the Waikato Treatment Plant

Second water pipeline from Waikato Treatment Plant to Redoubt Reservoirs

13
 

14
 

15

 

16

 

17

$136

$358

$1185

Figure 4.3 (map): Water supply – major programmes and projects

Map showing details of Auckland’s rural land, existing urban areas, future urban areas and water supply connections such as dams, reservoirs, treatment plants and the watermain network

Wastewater

Chart 4.9: Projected capital expenditure

Chart 4.9: Projected capital expenditure, table of the charted information follows
Table of the charted information
Capital expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
New assets 229 279 382 399 338 256 279 122 135 179 172 202 247 301
Renewals 71 69 88 84 109 134 117 103 116 94 118 148 180 219
Externally delivered (Crown Infrastructure Partners) 25 28 5 30 10 10 5 10 10 0    

Table of the charted information ends.

Chart 4.10: Projected operating expenditure

Chart 4.10: Projected operating expenditure, table of the charted information follows
Table of the charted information
Operating expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
Core operating expenditure 136 141 146 151 158 164 170 176 182 188 219 273 338 418
Depreciation 144 146 149 167 171 177 199 207 215 237 264 318 384 462

Table of the charted information ends.

Table 4.5: Wastewater – major programmes and projects

Programme / Project

Description

Map Reference

Nominal $ (millions)
Decade 1

2019-2028

Nominal $ (millions)
Decade 2

2029-2038

Nominal $ (millions)
Decade 3

2039 - 2048

North East sub-regional wastewater treatment plant catchment

A new sub-regional treatment plant at Snells Beach and staged increases in capacity

Upgrade to outfall and  construction of a new transmission pipeline from Warkworth

1

 

2

 

$199

$113

$46

Army Bay wastewater treatment plant catchment

Upgrade of treatment plant and outfall

Improvements to transmission network to provide for growth in Wainui, Silverdale and Dairy Flat future urban areas

3

 

4

$82

$168

$506

Rosedale wastewater treatment plant catchment

Increasing the capacity of Rosedale Treatment Plant

Construction of the Northern Interceptor to divert flows from West and NW Auckland to Rosedale Treatment Plant

Upgrades to North Shore trunk sewer and pump stations to reduce overflows

5

 

6

 

7

 

$400

$518

$85

Mangere wastewater treatment plant catchment

Construction of the Central Interceptor

Newmarket Upgrades

Improvements to Howick Diversion

Otara Catchment

Increasing the capacity of Mangere Treatment Plant

Puketutu Island Project

Augmentation of the Southern Interceptor

8
 

9

10
 

11

12

13

$2125

$327

$637

Pukekohe wastewater treatment plant catchment

Increasing the capacity of the Pukekohe Treatment Plant

Conveyance improvements from Pukekohe to the treatment plant

14

15

$126

$19

$436

South West sub-regional wastewater treatment plant catchment

Construction of a new sub-regional treatment plant and transmission network between Waiuku, Clarks Beach and Glenbrook

 

16

$134

$26

$46

Figure 4.4 (map): Wastewater - major programmes and projects

Map showing details of Auckland’s rural land, existing urban areas, future urban areas, the wastewater network and improvements over decades 1, 2 and 3

Stormwater

Chart 4.11: Projected capital expenditure

Chart 4.11: Projected capital expenditure, table of the charted information follows
Table of the charted information
Capital expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
New assets 83 97 99 104 104 104 109 109 109 111 127 155 189 230
Renewals 39 38 29 30 34 36 37 38 37 38 43 53 64 79
Externally delivered (Crown Infrastructure Partners) 10 0 0 0 0 9 9 9 0 0    

Table of the charted information ends.

Chart 4.12: Projected operating expenditure

Chart 4.12: Projected operating expenditure, table of the charted information follows
Table of the charted information
Operating expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
Core operating expenditure 46 48 50 54 57 64 68 72 78 82 104 135 172 216
Depreciation 61 63 64 67 71 74 78 80 84 88 95 109 126 146

Table of the charted information ends.

Table 4.6: Stormwater - major programmes and projects

Project / Programme

Description

Map reference

Nominal $ (millions)
Decade 1

2019-2028

Nominal $ (millions)
Decade 2

2029-2038

Nominal $ (millions)
Decade 3

2039 - 2048

North future urban area programme

Provision of stormwater infrastructure to enable development of Warkworth, Wainui, Silverdale and Dairy Flat future urban areas

 

1

$35

$99

$49

Existing urban area growth programme

Provision of stormwater infrastructure to enable growth in the existing urban area

2

$209

$461

$329

North west future urban area programme

Provision of stormwater infrastructure to enable development of Whenuapai, Kumeu, Huapai, Riverhead and Red Hills future urban areas

 

3

$45

$85

$49

Western Isthmus Water Quality Improvement programme

A programme of wastewater and stormwater improvements to improve water quality and provide for growth.

Includes current projects:

  • Picton Street Separation
  • St Marys Bay / Masefield Beach Upgrade

 

4

 

$395

 

TBC

 

TBC

Ports of Auckland Outfall Upgrade project

Installation of new stormwater pipe from Quay Street across Ports of Auckland to the Waitematā Harbour.

5

$39

$0

$0

Oakley Walmsley & Underwood Park stream upgrade project

Upgrading culverts and widening of Oakley Creek through Walmsley Park to convey flood flows to enable intensification and redevelopment in the upper catchment.

Total project cost is $21m, remaining expenditure is $6m

6

$6

$0

$0

Takanini Cascades and Grove Rd McLennan Culvert  project

A new open channel and culvert to service the Takanini 2a and 2b Growth Areas.

Includes land purchase

Total project cost is $82m, remaining expenditure is $17m

7

$17

$0

$0

Artillery Drive Tunnel to inlet project

A tunnel from McLennan Park to Pahurehure Inlet to service the Takanini Growth Areas.

Total project cost is $25m, remaining expenditure is $1m

8

$1

$0

$0

Takanini School Rd Area 6A_6B and Popes Rd project

A pipeline along Takanini School Road and a stormwater pond

Total project cost is $22m, remaining expenditure is $6m

9

$6

$0

$0

South future urban area programme

Provision of stormwater infrastructure to enable development of Pukekohoe, Paerata, Drury West,Drury/ Opaheke and Takanini future urban areas

10

$69

$117

$980

Figure 4.5 (map): Stormwater - major programmes and projects

Map showing details of Auckland’s rural land, existing urban areas, future urban areas and stormwater networks

Community services

Chart 4.13 - Projected capital expenditure

Chart 4.13 - Projected capital expenditure, table of the charted information follows
Table of the charted information
Capital expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
New assets 147 140 197 170 172 246 307 316 315 272 332 411 498 603
Renewals 108 125 114 102 116 155 156 185 176 179 204 248 298 360

Table of the charted information ends.

Chart 4.14 - Projected operating expenditure

Chart 4.14 - Projected operating expenditure, table of the charted information follows
Table of the charted information
Operating expenditure 2019
$million
2020
$million
2021
$million
2022
$million
2023
$million
2024
$million
2025
$million
2026
$million
2027
$million
2028
$million
Average
2029-2033
$million
Average
2034-2038
$million
Average
2039-2043
$million
Average
2044-2048
$million
Core operating expenditure 467 449 457 477 493 510 527 546 567 587 581 685 807 950
Depreciation 136 141 148 151 158 165 174 183 198 216 234 270 315 368

Table of the charted information ends.

Table 4.7: Community services  – major programmes and projects

Project / Programme

Description

Map Reference

Nominal $ (millions)
Decade 1

2019-2028

Nominal $ (millions)Decade 2

2029-2038

Nominal $ (millions)
Decade 3

2039-2048

 

Community assets growth programme

Provision of new libraries and community centres.

Investment in decade one includes:

  • Takanini multi-purpose facility
  • Westgate multi-purpose facility
  • Avondale library & community centre
  • Flat Bush library & community centre

Investment in decades two and three includes, but is not limited to Wainui, North West, Paerata, Glen Innes, Mangere, St Heliers and Drury.

1

2

3

4

$75

Continuing programme

Continuing programme

Provision of new pools, leisure and recreation centres, including:

  • Flat Bush pool and leisure centre
  • Avondale/New Lynn pool and recreation centre
  • North-west pool

 

 

5

6

7

$152

$120

Continuing programme

Acquisition and development of open space in brownfield and greenfield growth areas

Acquisition including, but not limited to, additional open space in Whenuapai, Wainui/Silverdale, Paerata and Opaheke/Drury

 

 

8

$696

$859

$381

Local Park development

 

$484

Continuing programme

Continuing programme

Sport and Recreation Facilities Investment Fund

Establishment of a Sport and Recreation Facilities Investment Fund to deliver on the Sports facilities Investment policy (under development) and provide value for money by leveraging external investment.

 

$120

Continuing programme

Continuing programme

Figure 4.6 map): Community services – major programmes and projects

Map showing details of Auckland’s rural land, existing urban areas, future urban areas and community service programme areas

Section five: Supporting assumptions

Asset life cycles

Asset life-cycle assumptions inform forecasts of future maintenance and renewal requirements. Renewals and maintenance are interrelated. Maintenance levels can hasten or delay the need for renewals, and if renewals are deferred, this can increase maintenance costs to ensure assets continue to deliver agreed levels of service.

Although there are specific asset renewal and maintenance strategies for different asset classes, a similar performance risk approach is used across the council and CCOs. This focuses planned renewal programmes on critical assets and places less priority on non-critical assets, which may be renewed or replaced once they fail.

There is a degree of uncertainty with asset data across the council group due to issues such as the quality of historical records, the costs and practicality of inspecting underground assets, unknown effective lifespans (the length of time the asset functions adequately) for some types of assets. The reliability of asset data for transport and water assets is generally good, with less certainty for some community assets. This may result in less certainty in forecasts of future operational and renewal costs for community assets. 

The wide range of asset lives in the tables below reflects the variety of assets within each asset group.

Transport

The future life cycle costs of transport are dominated by the road network which represents 88 per cent of Auckland Transport’s depreciable assets as at June 2017.

Within the road network the main assets are the road carriageway, which has a life of 50 years for arterials and 100 years for local roads, and the associated pavement surface which has a life of between 10 and 15 years. Footpaths have a life of between 25 and 50 years and bridges 99 years.

Auckland Transport uses a condition-based forecasting model to optimise long-term renewals investment across its asset portfolio. Renewal work is focused on critical or highly utilised asset groups, particularly structures including bridges, retaining walls, ferry facilities, bus shelters and rail assets. Non-critical assets are assessed less frequently, which may result in earlier asset failure than forecast.

Table 5.1: Transport asset values and useful lives

Roads and footpaths

Asset group

Number / length

Current value ($m)

Asset life (years)

Roads

7452 km

6135

10-120

Bridges, major culverts, underpasses

1258

836

25-110

Footpaths

Footpaths – 7137 km

Cycleways 326 km

806

15-43

Traffic systems

Signs – 111,293

81

15-30

Street lighting

Traffic systems – 45,201

124

15-30

Parking

Buildings -10

Open carparks – 415

169

7 -100

Public transport

Asset group

Number / length

Current value ($m)

Asset life (years)

Train stations

41

580

5-99

Rolling Stock (trains)

57 electric trains

10 diesel trains

435

2-35

Bus Stations

15 bus stations

1520 bus shelters

80

10-99

Wharves

21 ferry wharves

67

50-100

Water

Pipe assets account for a high proportion of the total value of Auckland’s water assets, being approximately 70 per cent for stormwater and 64 per cent for water and wastewater. Considerable emphasis is placed on understanding the condition of pipe networks to address the uncertainty surrounding buried assets. Stormwater assets owned by Auckland Transport are also identified in table 5.2.

Table 5.2: Water asset values and useful lives

Asset group

Number / length

Current value ($m)

Asset life (years)

Water supply

 

 

 

Water supply dams

11

285

200

Raw water aqueducts and tunnels

36

100

80 to 150

Water mains

9,096

2,374

36 to 100

Water reservoirs

89

191

80 to 100

Valves

82,600

113

30 to 100

Hydrants

41,404

51

30 to 100

Wastewater

 

 

 

Wastewater Pipes

7,999km

2,726

50 to 167+

Manholes

165,610

740

90

Stormwater

 

 

(see note)

Pipes and culverts

 (minor)

AT = 244km

AC = 6200 km

AT = 167

AC =2,766

128

Channels

(including kerbs)

AT =4,097 km, (Surface water channel), 8,566 km

(kerb and channel)

AC =377km

AT = 691

AC =77

148

Manholes

AT = 6,233

AC =145,238

AT =25

AC =608

128

Catchpits

AT =59,715

AC =6,673

AT =146

AC =10

104

Pump Stations

AC = 3

AC = 1

90

Inlets and outlets

AC = 25,019

AC = 120

114

Soakholes

AT =2,467

AC = 361

AT =34

AC =5

80

Ponds

AC = 492

AC = 238

100

Water quality devices

AC = 436

AC = 17

55

Service connections

AC = 127,235

AC = 128

128

Note: asset life information for stormwater assets is the averaged effective asset life.

Community services

Table 5.3: Community Services asset values and useful lives

Asset

Number / length

Current value ($m)

Asset life (years)

Open Spaces

 

 

 

Regional Parks

13,328 assets,  40,988 ha

 

 

 

8,600

 

 

10-50

Cemeteries

7,040 assets,  290 ha

10-50

Coastal assets

2186 assets, 21.9 ha

10-50

Utilities

110 assets

60-100

Sports and local parks

43,073 assets,    5,141 ha

3-40

Community Infrastructure

 

 

Buildings

2,009 assets, 209 ha

30-80

Demand for services

A common driver for Auckland’s demand for infrastructure services is the significant population, household and employment growth forecast to occur between 2018- 2048. Additionally, the expansion of the urban area by approximately 15,000 hectares during this period will necessitate investment in infrastructure networks to service future urban areas.

A consistent growth model has been used across the council group for the 10-year budget that distributes future population, household and employment growth into approximately 557 sub-areas across the region.[1] The model version used for forecasts in this strategy and 10-year budget 2018-2028 is ART i11v3. There is some uncertainty with long-term growth projections, including where growth is expected to occur within the region. The council monitors growth and updates its long-term infrastructure plans to address variations in the rate or location of growth. 

Table 5.4: Demand for transport services

Service

2018

2048

Road network

 

 

Daily AM Vehicle trips

484,000

740,000

Total vehicle kilometres travelled

28,900,000

44,200,000

Public transport network

 

 

Daily AM public transport trips

61,000

169,000

Modelled AM bus service Km

24,000

61,000

Modelled AM rail service Km

1,780

7,700

Modelled AM ferry service Km

1,100

1,500

Active transport network

 

 

Daily active (cycling and walking) trips

500,000

940,000

 

 Table 5.5: Demand for  water services

 Service

2018

2048

Water supply

 

 

Population Serviced

1,500,000

2,150,000

Annual Average Demand (Metropolitan Source Abstraction)

413 MLD

545 MLD

Wastewater

 

 

Population Serviced

1,550,000

2,230,000

Annual Demand

451 MLD

610 MLD

Stormwater

 

 

Impervious coverage in Auckland region

6%[2]

20%

Impervious coverage in urban area

31%

64%

Environmental changes

  • average annual rainfall patterns decreasing by 1-3% by 2040 and 3-5% by 2090
  • more frequent heavy rainfall events and westerly winds
  • a rise in sea-level of between 0.28 and 0.98 between 1990 and 2100

Table 5.6: Demand for community services

 Service

2018

2048

Weekly visits to leisure centres

175,000

See notes below:

Weekly participants in active sports

89,732

Weekly visits to community centres, halls and facilities

92,000

Annual visits to regional parks

6,450,000

Annual visits to libraries

118,000,000

Annual visits to arts and cultural centres

272,000

Future demand for services provided by parks and community assets are not currently quantified. While demand is expected to increase over the period of this strategy, there is a high degree of uncertainty of future demand for community services due to:

  • the rate and distribution of population growth
  • demographic changes, such as increasingly diverse communities
  • changes in recreational trends
  • a higher proportion of medium and high density housing, which typically have less private open space
  • increasing expectation to deliver services to meet demand.

The impact of this uncertainty will be to change the quantum, type and location of investment in community infrastructure to meet demand. We will continue to monitor and assess this over time so that we can respond appropriately. 

Levels of service

There is a range of factors, in addition to growth and renewal, which necessitates the need to upgrade or replace assets or to provide new ones. These factors are categorised as level of service improvements and include regulatory compliance and risk mitigation provisions.

The council’s levels of service statements and performance measures illustrate the expected performance of Auckland’s infrastructure under the 30-year investment scenario. Future levels of service for transport and community services are less confident due to uncertainty about future funding levels in these areas.  Additional information on levels of service is available in asset management plans.

Table 5.7: Transport levels of service

 

 

2018 - 2028

2028 - 2038

2038 - 2048

We specify, contract for and promote public transport services and provide safe, high quality public transport infrastructure

Total public transport boardings (millions)

Increasing to 150

Increasing to 225

The percentage of public transport trips that are punctual

95%

90 - 95%

90 – 95%

The percentage of passengers satisfied with public transport services

85%

80-85%

80%

We provide safe, high quality and efficient local roads, footpaths and cycle ways for pedestrians, cyclists, public transport users and drivers

 

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

Rural

90%

90%

90%

Urban

80%

80%

80%

Average AM peak period lane productivity across 30 monitored arterial routes

Increasing to 24,000

Increasing to 26,500

Increasing to 28,500

Proportion of freight network operating at Level of Service C or better during the inter-peak

 

85%

85%

85%

The change from the previous financial year in the number of deaths and serious injuries on the local road network, expressed as a number

 

Reduce by average of 50 per annum by 2028

 

Decreasing to less than 277 DSI per annum consistent with Vision Zero approach.

Table 5.8: Water levels of service

 

 

2018 - 2028

2028 - 2038

2038 - 2048

Water supply

We provide Aucklanders with a reliable supply of safe water

 

The extent to which Watercare’s drinking water supply complies with part 4 of the drinking-water standards (bacteria compliance criteria)

100%

100%

100%

The extent to which Watercare’s drinking water supply complies with part 5 of the drinking-water standards (protozoal compliance criteria)

100%

100%

100%

The total annual number of complaints received by Watercare about any of the following:

a) drinking water clarity

b) drinking water taste

c) drinking water odour

d) drinking water pressure or flow

e) continuity of supply

f) Watercare's response to any of these issues

expressed per 1000 connections to the local authority's networked reticulation system

≤10

≤10

≤10

The percentage of real water loss from Watercare's networked reticulation system

≤13%

≤13%

≤13%

The average consumption of drinking water per day per resident

Decreasing from 266 to253

253

253

Wastewater

We collect and treat Auckland's waste water in a safe and sustainable way

The annual number of dry weather overflows from Watercare's sewerage system, expressed per 1000 sewerage connections to that sewerage system

≤10

≤10

≤10

Compliance with the Watercare's resource consents for discharge from its sewerage system measured by the annual number of:

a)  abatement notices

b)  infringement notices

c)  enforcement orders

d)  convictions

received by Watercare in relation to those resource consents

a) ≤2
b) ≤2
c) ≤2
d) 0

a) ≤2
b) ≤2
c) ≤2
d) 0

a) ≤2
b) ≤2
c) ≤2
d) 0

Stormwater

We manage the stormwater network to minimise the risks of flooding to Aucklanders

The number of flooding events that occur and the associated number of habitable floors affected per 1000 properties connected to Auckland Councils stormwater network

 

< 1 per 1000

 

< 1 per 1000

 

< 1 per 1000

 

The median response time to attend a flooding event, measured from the time that Auckland Council receives notification to the time that service personnel reach the site

 

< 2 hours

< 2 hours

< 2 hours

The number of complaints (reported blockage in stormwater network ) received about the performance of the stormwater system per 1000 properties connected to Auckland Councils stormwater system

 

< 3 per 1000 per annum

< 3 per 1000 per annum

< 3 per 1000 per annum

The percentage of response time during storms to close stormwater manholes within three hours

90%

90%

90%

We manage our harbours and waterways through sustainable management of the stormwater network

Auckland Council Stormwater compliance with resource consents for discharge from its stormwater system, measured by the number of:

a)    abatement notices; and

b)    infringement notices; and

c)    enforcement orders; and

d)   successful prosecutions, received in relation those resource consents

None

None

None

Table 5.9: Community services levels of service

 

 

2018 - 2028

2028 - 2038

2038 - 2048

We provide and maintain cemeteries, memorial areas and facilities for families, friends and visitors

Percentage of visitors satisfied with the presentation of cemeteries

 

81%

81%

81%

We provide safe and accessible parks, reserves and beaches                                               

The percentage of residents who visited a local park  in the last 12 months

83%

83%

83%

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

76%

76%

76%

The percentage of park visitors satisfied with the overall quality of their visit

96%

96%

96%

The percentage of users who are satisfied with the overall quality of local parks

73%

73%

73%

We provide library services and programmes that support Aucklanders with reading and literacy, and opportunities to participate in community and civic life

The percentage of customers satisfied with the quality of library service delivery

85%

85%

85%

We provide art facilities, community centres and hire venues that enable Aucklanders to run locally responsive activities, promoting participation, inclusion and connection

The number of participants in activities at art facilities, community centres and hire venues (million, per annum)

6.1

6.8

7.4

> Back to contents list

1.4 Financial Strategy

Introduction

This strategy sets out the approach for achieving the balance between investing in the assets and services for Auckland’s progress and ensuring that the costs of supporting those investments are acceptable to the community.

Section one provides context around Auckland’s growth and infrastructure. Infrastructure investment is the most significant driver of all council group costs currently and will continue to be so for the foreseeable future. This strategy should be read in conjunction with the infrastructure strategy which sets out the drivers of infrastructure investment and the choices the council has made in prioritising that investment.

Section two looks at the key financial challenges the council faces and how we plan to respond. These challenges are around balancing the investment needs against the acceptability of costs to the community and the sustainability of our borrowing. This includes our key strategic settings around limits on rates increases and debt levels.

Section three looks in more detail at the key funding decisions made for this 10-year Budget and how they have enabled our response to our growth and environmental challenges.

Section four shows how decisions around our response to financial challenges reflect into the capital investment programme, our balance sheet position and the makeup of our operating expenditure and funding sources. This section also identifies the key assumptions behind these projections.

Section one: Growth and infrastructure context

Auckland is experiencing significant population growth and this is expected to continue. Over the next 30 years our population is projected to grow by over 720,000 people, with 293,000 of these people arriving in the next 10 years. We anticipate that to accommodate this growth, 120,000 new dwellings and 5.1 million square meters of business space will need to be built over the next 10 years.

While Auckland’s growth is not a new phenomenon, the pace of this growth has increased dramatically with growth of around 130,000 people over the last three years. Auckland’s population is now anticipated to reach 2 million people four years earlier than previously forecast.

Chart: Recent increase in Auckland's population

Chart: Recent increase in Auckland's population, table of the charted information follows
Table of the charted information
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Estimated total population as at June 1,373,000 1,390,400 1,405,500 1,421,700 1,439,600 1,459,600 1,476,500 1,493,200 1,526,900 1,569,900 1,614,500 1,657,200
Estimated annual increase in population for year to June  blank 17,400 15,100 16,200 17,900 20,000 16,900 16,700 33,700 43,000 44,600 42,700

Table of the charted information ends.

Chart: Auckland's future population growth

Auckland's future population growth, table of the charted information follows
Table of the charted information
2013 2018 2023 2028 2033 2038 2043
Medium projection (Feb 2015) 1,493,200 1,646,500 1,767,500 1,890,900 2,010,500 2,123,000 2,229,300
Medium projection (Feb 2017) 1,493,200 1,699,900 1,859,300 1,990,100 2,112,000 2,222,700 2,326,200

Table of the charted information ends.

In 2016 Auckland Council adopted the first Unitary Plan for Auckland. The Unitary Plan enables the forecast population growth to be housed and employed through major land use change. Intensification of existing urban areas and development of new urban areas are envisaged through the plan and will place significant demand on the council for new and upgraded infrastructure.

Our 30-year infrastructure strategy describes how we intend to manage this growth driven demand, as well as addressing existing issues such as congestion and environmental degradation. Without an appropriate infrastructure investment response, there will be a significant reduction in council service levels in key areas such as transport, water quality and access to community amenities.

In transport, almost 25 per cent of Auckland’s arterial roading network is now congested[3] in the morning peak compared to 18 per cent less than four years ago. Congestion outside peak times and on weekends is also becoming more frequent with over 10 per cent of the network now experiencing inter-peak congestion. Auckland has also seen a near-doubling in road deaths and serious injuries over the past five years

Chart: Arterial road congestion - morning peak

Arterial road congestion - morning peak, table of the charted information follows
Table of the charted information
Month and year Morning peak hour
(12 months rolling)
June 2014 18.0%
July 2014 18.0%
August 2014 18.1%
September 2014 18.3%
October 2014 18.2%
November 2014 18.4%
December 2014 18.7%
January 2015 19.2%
February 2015 19.5%
March 2015 19.6%
April 2015 18.8%
May 2015 19.1%
June 2015 19.5%
July 2015 19.9%
August 2015 20.1%
September 2015 20.5%
October 2015 21.0%
November 2015 21.4%
December 2015 21.6%
January 2016 21.2%
February 2016 21.4%
March 2016 21.6%
April 2016 22.2%
May 2016 22.6%
June 2016 23.0%
July 2016 23.1%
August 2016 23.4%
September 2016 23.6%
October 2016 23.7%
November 2016 23.9%
December 2016 24.2%
January 2017 24.4%
February 2017 24.4%
March 2017 24.6%
April 2017 25.0%
May 2017 25.1%
June 2017 24.9%
July 2017 24.5%
August 2017 24.3%
September 2017 24.4%
October 2017 23.8%
November 2017 23.6%
December 2017 23.7%
January 2018 23.8%
February 2018 23.9%
March 2018 23.9%
April 2018 23.2%

Table of the charted information ends.

Chart: Road deaths and serious injuries

Road deaths and serious injuries, table of the charted information follows
Table of the charted information
  2011 2012 2013 2014 2015 2016 2017
Serious injuries 403 380 437 447 567 613 749
Deaths 51 41 48 36 52 46 64

Table of the charted information ends.

Pollution from an overwhelmed combined sewer network is resulting in overflows of wastewater into the Waitemata in 218 places more than twice a year, and in 43 places every time it rains.

Our community infrastructure is also under pressure from growth and changes to the way in which facilities are used and the places in which they are needed.

These projected changes in population and land use are therefore the primary drivers of the $26 billion capital investment outlined in this strategy, and as a consequence, the primary drivers of our 10-year operating expenditure budgets growing from $4 billion in 2018/2019 to $5.6 billion in 2027/2028.

Section two: Financial Challenges and Responses

The rapid growth of Auckland and its resulting demand for new and enhanced infrastructure, the historic underinvestment in assets and high level of expectation from the community for improved service levels have created two significant financial challenges. These involve balancing the need for investment with:

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

This section of the strategy sets out the responses to these two issues

Cost acceptability

Previous feedback has told us that Aucklanders clearly support making progress, particularly with fixing Auckland’s transport problems and improving the quality of Auckland’s urban and natural environment. However we are also conscious of the community’s ability to pay for the significant investments that need to be made. A key challenge is how to enable faster progress without unacceptably high general rates increases.

Our response to balancing the demand for investment with acceptable cost increases can be summarised as follows:

  • setting revenue parameters that reflect acceptable levels of increases
  • maximising the value of the revenue received
  • managing our investments to optimise returns.
Revenue parameters

The following parameters represent our approach to the balance between progress and acceptability to the community:

  • average general rates increases of 2.5 per cent for the next two years and 3.5 per cent thereafter
  • water charges that are currently projected to increase at an average of 2.5 per cent per annum
  • wastewater charges projected to increase by 3.3 per cent per annum
  • targeted rates to deliver accelerated investment in water quality improvement and the natural environment
  • development contribution charges set to recover the costs of growth
  • user charges that are standardised across the region, adjusted to represent appropriate levels of cost recovery and then increased with inflation each year
  • A regional fuel tax of 10 cents a litre (plus GST).

To provide certainty and predictability to ratepayers around general council expenditure, Auckland Council is proposing to continue to limit average rates increases for existing ratepayers to 3.5 per cent per annum. This limit includes targeted rates that apply generally across Auckland and refers to the overall average increase across all ratepayers (including different ratepayer groups such as business, farm and lifestyle ratepayers).  Targeted rates that apply to specific groups of ratepayers are excluded.

 

2018/19

2019/20

2020/21

2021/22

2022/23

2023/24

2024/25

2025/26

2026/27

2027/28

Annual rates increase limit

3.5%

3.5%

3.5%

3.5%

3.5%

3.5%

3.5%

3.5%

3.5%

3.5%

Growth in rating base

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

Total annual increase

5.5%

5.5%

5.5%

5.5%

5.5%

5.5%

5.5%

5.5%

5.5%

5.5%

Rates limit ($billion)

1.69

1.79

1.88

1.99

2.10

2.21

2.33

2.46

2.60

2.74

For 2018/2019 and 2019/2020, the average rates increase will be well below the 3.5 per cent limit because of the decision to increase average general rates by 2.5 per cent in those years.

For residential ratepayers the average overall rates increase (including general rates and targeted rates applied generally across Auckland) will also be 2.5 per cent for 2018/2019. This is because the impact of the introduction of the water quality and natural environment targeted rates is offset by the impact of the Interim Transport Levy finishing. The overall average rates increase across all ratepayer groups is slightly higher at 2.7 per cent, because those new targeted rates and the Interim Transport Levy have different impacts on business and farm/lifestyle ratepayers.

The average overall rates increase for years two and beyond are slightly below the 2.5 per cent and 3.5 per cent average general rates increases. This is because the new targeted rates do not increase each year.

Chart: Rates increases

Rates increases, table of the charted information follows
Table of the charted information
  2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Limit on rates increase 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%
Average rates increase 2.7% 2.3% 3.4% 3.3% 3.3% 3.3% 3.3% 3.3% 3.2% 3.2%

Table of the charted information ends.

Rates for individual properties are not restricted by the 3.5 per cent average rates increase limit and will vary depending on a range of factors including property revaluations and whether the property is used for business, residential or farming purposes[4].  

Targeted rates are considered separately where the charges relate to a specific group of ratepayers who benefit from the associated expenditure, for example targeted rates for refuse collections that are charged to the houses that receive the service or Business Improvement District targeted rates that fund the activities that benefit a local business association.

We do not have a quantified limit on these targeted rates because the acceptability of their cost is viewed differently by the community.  They are specifically consulted on, along with the associated investment that they enable, and as a result provide greater transparency.

In addition, limiting these kinds of targeted rates would restrict the ability of specific groups of ratepayers (such as local communities or specific business sectors) to invest in increased service levels that they aspire to and are willing to contribute towards. 

Another key issue for this 10-year budget is the regional fuel tax. This is not included in our rates increase limit as it is not a rate. In addition, the cost impact of this tax is highly variable between businesses and residents and based on their fuel consumption rather than property value. 

Development contributions are another important revenue source for council. We will be consulting on changes to our development contribution policy separately from the 10-year Budget.

Maximising the value from every dollar collected

Given these revenue parameters, we have sought to ensure that we get the most value out of every dollar we collect to help us address Auckland’s investment needs.  The primary ways we have done this are:

  • maximising efficiency savings
  • maximising the disposal of non-strategic surplus assets
  • partnering with others and investigating alternative funding mechanisms.
1.     Efficiency savings

In an environment where we cannot afford to do everything today it is essential that we make sure that every dollar we do spend provides value for money. In recent years we have been successful in finding sufficient additional efficiency savings to allow us to reduce average annual rates rises below our 3.5 per cent cap.

Some of the ways we do this include improving business processes, using better procurement and tendering processes, better utilising technology and bringing work in-house where it is more cost-effective to do so. 

Because interest and depreciation costs are determined by our investment in assets and not able to be directly controlled through operating activities, our efficiency programmes focus on core operating expenditure (total group operating expenditure less interest and depreciation expense).

Core operating expenditure might normally be expected to rise annually by a combination of inflation (price movement) and population growth (as a measure of demand). Our target is to deliver savings that keep this growth below 3.5 per cent per annum (after allowing for increased spend funded from targeted rates or driven by increased public transport patronage).

2.     Disposal of non-strategic surplus assets

Auckland Council has a very large holding of land and buildings, some of which are not needed for providing council services, are not providing a market rental income, are poorly utilised or simply located in the wrong place.  Because we will not have sufficient funding to provide all the new infrastructure we would like over the next 10 years, disposing of surplus assets will help maximise what we can provide.  The following table shows the amount of disposals we are targeting for the next 10 years. These disposals are additional to projected assets sales associated with specific urban development programmes.

Disposal of non-strategic surplus assets

Financial year ending 30 June
($ million)

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

Net proceeds from disposal

24

24

24

20

20

20

20

20

20

20

3.     Partnering and new funding mechanisms

Auckland Council recognises that we can achieve greater progress by partnering with other organisations including the private sector, central government, charitable organisations and community groups. Examples of this include recent collaboration with central government in the establishment of City Rail Link Limited, Housing Infrastructure Fund, Crown Infrastructure Partners, and on transport programme alignment through the Auckland Transport Alignment Project (ATAP). Looking forward the government has indicated a willingness to expand the use of Crown Infrastructure Partners and identified a number of work programmes from ATAP.

The council is continuing to explore new ways of funding infrastructure. In 2017 our Revenue and Financing Policy was changed to enable the use of growth infrastructure targeted rates and we are ready to make use of these where appropriate. We also continue to work with government and Crown Infrastructure Partners to support the implementation of contractual funding tools and new legislative instruments arising from the Urban Growth Strategy.

Investment management

The council is expecting $1.2 billion in revenue from financial investments over the next 10 years. The three key types of investments, the council’s objectives for holding them and target returns, where appropriate, are discussed below. More information on how council manages its investment is contained in our Treasury Management Policy which can be found on the Auckland Council website > Plans, policies, bylaws, reports and projects > Our policies > Treasury Management Policy.

1.     Equity investments in commercial activities

The council has significant shareholdings in Ports of Auckland Limited and Auckland International Airport Limited. The council manages these investments[5] to maximise financial returns while supporting the realisation of the council’s broader strategic objectives. The council has set a return on investment target for these major investments of dividend growth at a rate equivalent to the increase in the Consumer Price Index (CPI) plus 1.5 per cent.

2.     Trusts and reserves

The council has a number of trusts and reserves to fund specific activities. The trusts are mainly endowments from private individuals and organisations to help fund specified activities. The council manages these and uses the returns to fund the relevant activities. For the purposes of this 10-year Budget, revenue from trusts and reserves is assumed to be utilised for specified activities in the year it is received. Accordingly, no movement in trusts and reserves balances is forecast.

The council has set a return on investment target for the Trust and Reserves portfolio to exceed the Official Cash Rate (OCR).

3.     Shareholding in the New Zealand Local Government Funding Agency (NZLGFA)

The council is a shareholder in the New Zealand Local Government Funding Agency (NZLGFA) and expects to fund some of its borrowings from NZLGFA.

The NZLGFA’s Board’s policy is to pay a dividend that provides an annual rate of return to shareholders equal to NZLGFA’s cost of funds plus 2 per cent over the medium term.

Prudent financial management

Our Revenue and Financing policy identifies that a major funding stream for investment in infrastructure is borrowings. The Revenue and Financing Policy can be found in Section 3.1 of this volume. Our tools for ensuring prudent financial management are debt management and funding depreciation.

Debt management

The use of debt allows the costs of infrastructure to be spread over the life of the asset and paid for by all users of the asset across generations.  The management of debt to ensure sustainable financial management 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).

Our projected debt of $13.1 billion by June 2028 will remain at a prudent level relative to our assets and income. This is reflected in council’s very high credit rating (an independent evaluation of our ability to repay debt and the likelihood of defaulting on our obligations).

Entity

S&P credit rating

New Zealand Government

AA+

New Zealand Local Government Funding Agency

AA+

Auckland Council

AA

Bank of New Zealand (BNZ)

AA-

Fonterra

A-

Spark

A-

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. When assessing our debt to revenue ratio against this limit, a number of adjustments are made which are consistent with Standard and Poor’s approach when they undertake their credit rating assessment[6].

This limit is an indicator of the ability of council to cover its borrowing costs from its different revenue sources. We will ensure that debt levels remain within this limit over the 10-year horizon. To avoid normal variability in our key forecasting assumptions triggering a breach of this limit, we will apply a 5 per cent “safety margin” and ensure that our budget decisions do not result in us projecting a debt to revenue ratio in excess of 265 per cent in any future year.

Higher debt levels increase the council’s interest costs. The council uses a combination of operating income sources to pay for interest including rates, fees and charges such as water and wastewater tariffs, and investment income such as commercial rental revenue and ports revenue.

The council faces a number of key risks in relation to its borrowings. Our Treasury Management Policy details how we manage those risks. For further information this policy can be found on the Auckland Council website > Plans, policies, bylaws, reports and projects > Our policies > Treasury Management Policy. Two of the most significant risks are the risk of rising interest rates and risk that we are unable to borrow funds when needed.

In a similar way to how you might fix your mortgage, we protect the council from rises in interest rates through the use of fixed interest rates. To a large extent, this locks in council’s future borrowing cost for a certain period of time to protect us from rising interest rates.

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

In general, the council provides rates revenue as security for its borrowings including its borrowings through the New Zealand Local Government Funding Agency (NZLGFA), domestic and offshore borrowing programmes. However, in specific cases, the council may consider whether alternative security is appropriate, for example security over property that is specifically connected with the borrowing.

Funding depreciation

To ensure that debt remains at prudent levels, we will fully fund depreciation by 2025. Depreciation is a non-cash charge that reflects the reduction in the usability of our assets over time. Because this is a non-cash expense, any revenue raised to cover depreciation generates a cash surplus which is used to fund capital expenditure.

Fully funding depreciation from rates and current revenue would mean that on average, over the long run, we are not relying on borrowing to fund asset replacement expenditure. This represents a sustainable approach. The legacy councils only funded 63 per cent of depreciation so we propose to progressively move to 100 per cent by 2025.

The council currently projects to balance its budget in every year of this plan. However, because depreciation is included in our budget as an expense item (even though it is a non-cash expense), our policy of moving towards fully funding depreciation by 2025 means that our budget may not completely balance in each of the years from 2018 to 2024. Nevertheless, we consider that situation is prudent and sustainable as long as we continue moving towards that fully-balanced end point of the policy.

Section three: Funding decisions

Four key decisions made in the development of this plan have enabled a significant increase in the level of capital investment from $18.7 billion in our last 10-year Budget to over $26 billion this year. These include:

  • the introduction of a regional fuel tax to support the funding of our contribution to the ATAP transport programme
  • a targeted rate to fund the acceleration of water quality improvement investment
  • increased spending on environmental initiatives funded through a specific targeted rate
  • a reinvestment approach to funding centre development.

Transport investment and the Regional Fuel Tax

As highlighted earlier, the combination of existing issues such as congestion and the added pressures from growth are driving a significant transport infrastructure response to avoid significant reductions in service levels.

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 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 investment in transport is projected to:

  • Increase total public transport boardings from 88.4 million in 2016/2017 to 149.7 million by 2027/2028,
  • Improve the productivity of key arterial roads in the morning peak by 14 per cent by 2028, which when combined with increased public transport usage and provision for walking and cycling will support the ATAP outcome of maintaining congestion at 2016 levels.
  • Reduce deaths and serious injuries (DSI) on local roads by 60 per cent compared to 690 in the year to December 2017, which when combined with safety improvements for state highways and walking and cycling will support the ATAP objective of reducing DSI on the total Auckland network by 60 per cent.
  • Ensure that we look after our existing assets and that at least 80 per cent of our urban roads meet maintenance standards in terms of ride quality.

Water quality improvement programme and targeted rate

Another area of challenge identified in our infrastructure strategy is pressure on our environment from our aging networks and the added pressures from growth.

Auckland has a significant issue of pollution of its waterways across the region. There are areas of Auckland’s beaches, harbours, streams and aquifers that are significantly affected by poor water quality. Many waterways and beaches are unsafe for swimming after storm events, and some beaches are permanently closed to swimming. This is a result of pollution from a number of sources including:

  • wastewater overflows from the combined sewer network when stormwater overwhelms the system capacity
  • pollution from road run-off
  • sedimentation from urban and rural land use
  • old or poorly maintained onsite wastewater systems (septic tanks etc.)
  • impacts from farming such as livestock in streams and fertiliser runoff.

The Water Quality Improvements Programme of work has been developed to address these issues. 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:

Project

Outcomes

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 wastewater 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.

Natural environment targeted rate

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.

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.

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

Activity

Programmes

Split of additional funding

Pest control

  • Management of pest plants and animals, including on parks, regional programmes, spread to islands, freshwater

40% ($124.4m)

Islands

(Kawau, Waiheke, Aotea)

  • Pest eradication - Waiheke and Kawau multi-species

6% ($18.7m)

Kauri

  • Research, community engagement, hygiene stations

22% ($68.4m)

Kauri

  • Capex track upgrades, installation of vehicle wash downs

14% ($43.5m)

Marine biosecurity

  • Marine Biosecurity pathway management and response

1% ($3.1m)

Grant funding

  • Regional Ecological and Natural Heritage fund to support community action

4% ($12.4m)

Pest Free Auckland

  • Community engagement programme to support trapping, data management, grants, monitoring and reporting

9% ($28m)

Pest Free Auckland

  • CAPEX - Traps, data systems, telemetry

1% ($3.1m)

Marine ecology

  • Habitats - survey and evaluation

1% ($3.1m)

Marine ecology

  • Seabirds - implement monitoring and restoration

1% ($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 15-25 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 of 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.

Centre development

A number of town centres have been identified as priorities for regeneration through Panuku Development Auckland. These town centres are known as Transform, Unlock and Support locations.

This programme and budget alignment will deliver amenity, activation and infrastructure as well as acquire strategic sites, consistent with Auckland Council approved plans.

New housing and private investment will be supported by the upgraded facilities, improved amenity, increase in vibrancy and safety of centres.

The investment in urban development was increased by $406 million.

The council has decided to fund this investment from the proceeds of property sales from the respective urban development areas, noting that sale proceeds will be ring-fenced for the programme as a whole rather than for individual locations. The Strategic Development Fund was also adjusted to allow Panuku more flexibility in maximising the redevelopment value of the fund.

Section four: Budget

Auckland Council’s responses to the issues of cost acceptability and prudent management of debt enable a programme of over $26 billion of capital investment for Auckland.

At the core of this budget is the investment in network infrastructure outlined in our Infrastructure Strategy that responds to growth as well as addressing existing issues such as congestion and environmental degradation.

The following chart shows the split of the capital programme between the two key types of network infrastructure and other areas of investment. This is the level of capital expenditure that is required to maintain existing levels of service currently provided, to increase these service levels where identified in our infrastructure strategy and to provide infrastructure to support the development to accommodate a growing city.

Chart: Capital investment for Auckland

Capital investment for Auckland, table of the charted information follows
Table of the charted information
$million Annual Plan
2017/18
10-year Budget
2018/19
10-year Budget
2019/20
10-year Budget
2020/21
10-year Budget
2021/22
10-year Budget
2022/23
10-year Budget
2023/24
10-year Budget
2024/25
10-year Budget
2025/26
10-year Budget
2026/27
10-year Budget
2027/28
Other council assets 711 838 597 485 501 635 642 736 1,142 809 764
Transport infrastructure 844 1,025 1,217 1,290 1,300 1,219 1,197 1,147 1,017 1,284 1,270
Water infrastructure 462 641 695 739 796 734 842 870 552 598 617
Total  2,017 2,504 2,510 2,515 2,597 2,587 2,681 2,753 2,711 2,691 2,650

Table of the charted information ends.

This level of spend will 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. The following charts show how this projected debt level compares with our asset projections and how the growth in debt compares with our investment in new assets (non-renewals capital expenditure).

Chart: Borrowings and assets

Borrowings and assets, table of the charted information follows
Table of the charted information
$million Annual Plan
2017/18
10-year Budget
2018/19
10-year Budget
2019/20
10-year Budget
2020/21
10-year Budget
2021/22
10-year Budget
2022/23
10-year Budget
2023/24
10-year Budget
2024/25
10-year Budget
2025/26
10-year Budget
2026/27
10-year Budget
2027/28
Assets 48,143 51,333 54,190 58,662 60,262 63,039 67,278 68,887 71,737 75,788 77,214
Debt 8,543 9,241 9,945 10,657 11,142 11,685 12,135 12,440 12,847 13,044 13,097

Table of the charted information ends.

Chart: New assets and growth in borrowings

New assets and growth in borrowings, table of the charted information follows
Table of the charted information
$million Annual Plan
2017/18
10-year Budget
2018/19
10-year Budget
2019/20
10-year Budget
2020/21
10-year Budget
2021/22
10-year Budget
2022/23
10-year Budget
2023/24
10-year Budget
2024/25
10-year Budget
2025/26
10-year Budget
2026/27
10-year Budget
2027/28
Growth in borrowings 354 697 704 712 485 543 451 305 407 196 54
New works capital expenditure 1,407 1,520 1,587 1,514 1,526 1,524 1,608 1,683 1,734 1,640 1,601

Table of the charted information ends.

The following chart shows how the capital investment for Auckland of $26 billion will result in projected debt to revenue ratio within the limits stated in this strategy.

Chart: Debt to revenue ratio

Debt to revenue ratio, table of the charted information follows
Table of the charted information
$million Annual Plan
2017/18
10-year Budget
2018/19
10-year Budget
2019/20
10-year Budget
2020/21
10-year Budget
2021/22
10-year Budget
2022/23
10-year Budget
2023/24
10-year Budget
2024/25
10-year Budget
2025/26
10-year Budget
2026/27
10-year Budget
2027/28
Capex delivered for Auckland 2,017 2,504 2,510 2,515 2,597 2,587 2,681 2,753 2,711 2,691 2,650
Debt limit 270% 270% 270% 270% 270% 270% 270% 270% 270% 270% 270%
Internal ceiling 265% 265% 265% 265% 265% 265% 265% 265% 265% 265% 265%
Debt to revenue ratio 244% 254% 260% 264% 263% 264% 264% 259% 258% 252% 243%

Table of the charted information ends.

The investment will drive continued growth in our operating expenditure from $4 billion in 2018/2019 to $5.6 billion in 2027/2028.

The parameters and targets outlined in this strategy will also enable us to spend $48 billion over 10 years on the operational cost of delivering council services and initiatives. This includes the interest and ownership cost of new assets. The following chart shows the make-up of this spend over the next 10 years.

Chart: Operating expenditure by type

Operating expenditure by type, table of the charted information follows
Table of the charted information
$million Annual Plan
2017/18
10-year Budget
2018/19
10-year Budget
2019/20
10-year Budget
2020/21
10-year Budget
2021/22
10-year Budget
2022/23
10-year Budget
2023/24
10-year Budget
2024/25
10-year Budget
2025/26
10-year Budget
2026/27
10-year Budget
2027/28
Core direct expenditure 2,417 2,587 2,655 2,744 2,817 2,911 3,006 3,093 3,181 3,276 3,371
Interest 465 473 517 565 596 612 631 643 660 676 686
Depreciation 925 953 999 1,038 1,107 1,165 1,214 1,297 1,371 1,452 1,554
Total 3,807 4,014 4,172 4,347 4,521 4,688 4,852 5,034 5,213 5,404 5,611

Table of the charted information ends.

The following chart shows the projected path of the council’s different operating revenue sources including general and targeted rates, user charges, government subsidies and the regional fuel tax.

Chart: Council's sources of operating funding

Council's sources of operating funding, table of the charted information follows
Table of the charted information
$million Annual Plan
2017/18
10-year Budget
2018/19
10-year Budget
2019/20
10-year Budget
2020/21
10-year Budget
2021/22
10-year Budget
2022/23
10-year Budget
2023/24
10-year Budget
2024/25
10-year Budget
2025/26
10-year Budget
2026/27
10-year Budget
2027/28
General rates 1,517 1,588 1,660 1,752 1,849 1,950 2,056 2,168 2,286 2,409 2,538
Targeted rates 198 213 224 220 227 232 237 241 245 250 255
Fees and charges 1,256 1,348 1,424 1,530 1,594 1,657 1,725 1,789 1,854 1,927 2,001
Regional Fuel Tax 0 150 150 150 150 150 150 150 150 150 150
Government subsidies 274 287 297 306 314 321 329 336 343 349 356
Other revenue 357 351 364 360 377 394 384 403 385 395 403
Total  3,601 3,937 4,119 4,318 4,510 4,704 4,881 5,086 5,262 5,480 5,704

Table of the charted information ends.

As set out in our infrastructure strategy, these levels of spending will be sufficient to maintain the condition of our major types of assets over the medium to long term with the exception of community facility assets (libraries, swimming pools, playgrounds etc). We can’t fully meet the costs of renewing these assets to the standards we would like and will need to choose what are the most important things to do.

These levels of capital and operating expenditure will also be sufficient to maintain existing service levels in many areas and provide some response to growth pressures. However, the pressure of Auckland’s rapid growth is such that a $26 billion 10-year capital investment programme will not be sufficient to fully meet community expectations of service levels in all areas. The Infrastructure Strategy sets out a summary of the major projects included in that programme.

Key Assumptions

The levels of capital and operating expenditure outlined in the previous section are highly dependent on some key assumptions which are subject to differing degrees of uncertainty. These critical assumptions are:

  • The assumed central government contribution towards transport capital and operating expenditure, as indicated in ATAP, will be enabled through continued work with central government agencies.
  • Projected growth and development will occur, and consequently revenue forecasts for rates, consenting revenue, development contribution and growth-related user charges (e.g water charges) will eventuate.
  • That a new development contributions policy is adopted that reflects the Revenue and Financing Policy position that growth-related public infrastructure is funded by development contributions.
  • Inflation and interest rates will turn out as projected.

The full set of our significant financial assumptions are available in Part two of Volume One of this document, along with an assessment of the level and impact of uncertainty on each assumption. 

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Part 2: Our Activities

Overview

The following sections describe each of the groups of activities that comprise the council’s service delivery. This includes the contributions to Auckland Plan outcomes, the statements of service provision, and financial information presented by activity in table format and by group of activity in funding impact statement format.

Summary of revenue and expenditure by group of activity

Group of activity

Activity

10-year Budget total
Non-rates revenue
$000

10-year Budget total
Direct operating expenditure
$000

10-year Budget total
Capital expenditure
$000

Roads and Footpaths

Roads and Footpaths

1,564,724

1,735,444

6,933,099

Public Transport and travel demand management

Parking and enforcement

972,751

273,268

94,096

 

Public transport and travel demand management

5,867,065

7,733,708

3,012,288

Water supply

Water supply

2,582,417

942,980

1,893,647

Wastewater

Wastewater

4,973,372

1,612,038

3,582,675

Stormwater

Stormwater

23,726

617,961

1,383,667

Local Council Services

Local planning and development

0

4,560

43,770

 

Local environmental management

0

17,386

0

 

Local governance

0

236,550

0

 

Local community services

442,626

2,955,820

2,141,569

Regionally delivered council services

Regional planning

73,500

844,056

695,053

 

Regulatory services

2,086,154

2,305,782

2,382

 

Waste services

520,667

1,510,748

80,041

 

Environmental services

8,407

484,614

63,492

 

Auckland emergency management

0

62,350

5,186

 

Investment

3,532,688

1,802,078

735,975

 

Organisational support

112,171

86,309

657,475

 

Regional governance

32,088

665,959

2,600

 

3rd party amenity and grant

0

795,440

0

 

Regional community services

356,213

2,595,719

1,556,610

Council controlled services

Development Auckland

620,176

575,728

762,064

 

Economic growth and visitor economy

204,198

727,211

5,442

 

Regional facilities

698,507

1,057,887

397,151

Total

 

24,671,450

29,643,596

24,048,282

Levels of service, performance measures and targets are also set out for each group of activity. Note that some of the descriptions of our levels of service, performance measures and targets have changed from how they have previously been described. This is to better explain our activities and to align the descriptions to those used in other strategic plans. This change in our measurement approach does not necessarily mean that our actual levels of service delivered have changed. 

Further information about how these activities contribute to the council’s strategic outcomes is set out in sections 1.1. (The Auckland Plan 2050 – Tamaki Makaurau in the Future) and 1.3 (Auckland’s 30-year Infrastructure Strategy). As described in these sections through this 10-year Budget we have improved services levels in some key areas.

The performance information set out in the following section forms part of a broader performance management framework. This framework will include outcome measures for Auckland that Auckland Council contributes towards, but is not wholly responsible for. Key examples include measures relating to housing delivery, employment and greenhouse gas emissions.  This framework will also include more detailed management and CCO accountability measures to monitor performance within the council group.

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2.1 Roads and footpaths

Auckland Transport is responsible for managing Auckland’s roads and footpaths in a way that is consistent with the strategic direction set by the council.

Key activities

  • Managing and maintaining every aspect of the road network from the infrastructure that supports the road itself, the road structure and surface, lighting and road marking through to operational management of traffic signals, incident response and safety; and
  • Maintaining and improving footpaths and streetscapes so more people will naturally walk for short trips. 

Auckland Transport’s approach to managing roads and footpaths emphasises that roads have many users – car and truck drivers, bus passengers, pedestrians and cyclists.  Currently many people have no choice but to travel by car, yet congestion at peak times on some routes makes travelling by car inefficient.  However, in parts of Auckland where people have a range of attractive choices to get to where they are going, increasing numbers of people are choosing to travel in ways that not only work for them personally, but also contribute to a more efficient transport network overall.

How these activities drive Auckland Plan outcomes

Belonging & participation

All Aucklanders will be part of and contribute to society, access opportunities, and have the chance to develop to their full potential.

  • Providing opportunities for physical activity

Homes & places

Aucklanders live in secure, healthy, and affordable homes, and have access to a range of inclusive public places.

  • delivering projects and initiatives that unlock development opportunities
  • contributing funding that supports the provision of bulk infrastructure within Auckland, unlocking potential development

Transport & access

Aucklanders will be able to get where they want to go more easily, safely and sustainably.

  • providing the services and infrastructure to make walking and cycling preferred choices for many more Aucklanders

Environment & cultural heritage

Aucklanders preserve, protect and care for the natural environment as our shared cultural heritage, for its intrinsic value, and for the benefit of present and future generations.

  • managing the impact of runoff to the receiving environments

Opportunity & prosperity

Auckland is prosperous with many opportunities and delivers a better standard of living for everyone.

  • delivering a well-functioning roading network that minimises barriers for productivity growth

Key projects

  • Safety improvement projects including:
    • Urban Regional Safety Programme
    • Safety Speed Management
    • Rural Regional Safety Programme.
  • Network Optimisation Programme including optimising traffic signal operations, making best use of the existing infrastructure; and identification and implementation of small to medium scale infrastructure improvements to address localised infrastructure-related deficiencies and maximise best use of the immediate and wider network
  • Walking and cycling programme
  • Mill Road
  • Matakana Link Road
  • Lincoln Road
  • Lake Road
  • Infrastructure to support growth
  • Road maintenance and renewals programme
  • Seal extensions for unsealed roads
  • Local Board transport capital fund.

Performance information

Overall, we will measure our performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We provide safe, high quality and efficient local roads, footpaths and cycle ways for pedestrians, cyclists, public transport users and drivers

 

The change from the previous financial year in the number of deaths and serious injuries on the local road network, expressed as a number (1)

546

Reduce by at least 9 

Reduce by at least 9

Reduce by at least 18

Reduce by at least 36

Reduce by average of 50 per annum

Average AM peak period lane productivity across 30 monitored arterial routes (2)

N/A

New measure

21,000

22,000

23,000

Increasing to

24,000

Proportion of the freight network operating at Level of Service C or better during the inter-peak (3)

N/A

New measure

85%

85%

85%

85%

Number of cycle movements past selected count sites (4)

3.502m

3.663m

3.644m

3.826m

4.018m

Increasing to

5.653m

Road maintenance standards (ride quality) as measured by smooth travel exposure (STE) for all urban and rural roads (5)

Rural 94%

Urban 87%

Rural 91%

Urban 81%

Rural 92% Urban 81%

Rural 92% Urban 81%

Rural 92% Urban 81%

Decreasing to

Rural 90% Urban 80%

Percentage of the sealed local road network that is resurfaced

8.1%

7.5%

6.0%

5.8%

6.5%

Increasing to 7%

Percentage of footpaths in acceptable condition (6)

99.5%

99%

95%

95%

95%

95%

Percentage of customer service requests relating to roads and footpaths which receive a response within specified time frames (7)

87%

85%

85%

85%

85%

85%

Proportion of road assets in acceptable condition (8)

N/A

New measure

95%

95%

95%

95%

Notes to previous table:

1.     The actual number of deaths and serious injuries on the local road network for the year to December 2017 was 690. The targets from 2018/2019 represent reductions from this 690 number.

2.     The monitored arterial routes are defined in the Auckland Transport Statement of Intent. Productivity is measured as the average speed multiplied by number of people per lane in one hour.

3.     The monitored freight network is defined in the Auckland Transport Statement of Intent.

4.     Targets for 2018/19 onwards reduced from previous years due to a reduction in the number of count sites monitored. Count sites for 2018/19 onwards are:

  • City Centre: Curran Street, Te Wero Bridge, Quay Street, Beach Road, Grafton Gully, Grafton Road, Grafton Bridge, Symonds Street, Upper Queen Street, Light Path, Karangahape Road, Hopetoun Street and Victoria Street West
  • Regional: Upper Harbour Drive, Great South Road, Highbrook, Lake Road, North-Western cycleway Kingsland and Te Atatu, Orewa Cycleway, Tamaki Drive (E/bound), Tamaki Drive (west side of the road), Twin Streams path, Mangere Bridge, SH20 Dominion Road, East Coast Road and Lagoon Drive

5.     Smooth travel exposure measures the proportion of vehicles kilometres travelled in a year (VKT) that occurs on ‘smooth’ sealed roads and indicates the ride quality experienced by motorists.

6.     As defined in Auckland Transport’s Asset Management Plans.

Targets for 2018/19 onwards reduced from previous years due to a change in performance measure methodology:

  • Improved information from a detailed network-wide survey of footpath condition
  • A reassessment of the Asset Management Plan definition of acceptable condition.

7.     Response times are within:

  • 1 hour for emergencies,
  • 2 days for incident investigation as a high priority, or
  • 3 days for an incident investigation as a normal priority.

8.     As defined in Auckland Transport’s Asset Management Plans.

As discussed in the Financial Strategy found as 1.4, Volume 2 the introduction of the Regional Fuel Tax will allow us to significantly increase the service levels for this group of activities. 

Significant negative effects

There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities.

Negative effect

Our response

The road network upgrades contribute to a large number of negative environmental effects including water, air pollution and increased noise levels, and there are safety impacts.

Future planning of the transport network aims to reduce or mitigate the adverse environmental effects of further development. A connected roading and footpath network will reduce negative environmental impacts by reducing travel distances and times. Heavy metals and other contaminants will be controlled and/or treated before entering waterways.

Financial information

Activity

Operating cost and revenue $000

Financial year ending 30 June

2017/18

Year 1

2018/19

Year 2

2019/20

Year 3

2020/21

Year 4-10 2021/22-2027/28

Total

Roads and Footpaths

Non-rates revenue

60,927

149,541

151,417

152,739

1,111,027

1,564,724

 

Direct operating expenditure*

132,811

162,548

165,716

167,409

1,239,771

1,735,444

 

Capital expenditure

599,493

518,617

514,857

621,772

5,277,853

6,933,099

*Direct operating expenditure does not include interest and depreciation. 

Prospective Funding Impact Statement

$000

Financial year ending 30 June

Annual Plan 2017/18

LTP 2018/19

LTP 2019/20

LTP 2020/21

LTP 2021/22

LTP 2022/23

LTP 2023/24

LTP 2024/25

LTP 2025/26

LTP 2026/27

LTP 2027/28

Sources of operating funding:

 

          

General rates, UAGCs, rates penalties

285,818

255,949

243,991

250,722

255,127

264,767

270,932

278,118

284,372

295,559

310,680

Targeted rates

44,032

1,551

1,602

1,656

1,712

1,768

1,826

1,887

1,949

2,012

2,077

Subsidies and grants for operating purposes

45,389

50,452

52,384

53,762

55,543

56,890

58,398

59,921

61,215

63,056

64,102

Fees and charges

4,537

4,502

4,499

4,497

4,495

4,494

4,492

4,490

4,489

4,487

4,486

Internal charges and overheads recovered

0

0

0

0

0

0

0

0

0

0

0

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

11,001

94,587

94,534

94,480

94,448

94,416

94,379

94,347

94,322

94,291

94,266

Total operating funding

390,777

407,041

397,010

405,117

411,325

422,335

430,027

438,763

446,347

459,405

475,611

            

Applications of operating funding:

           

Payment to staff and suppliers

132,811

162,548

165,716

167,409

169,912

172,373

174,899

177,035

179,372

181,829

184,354

Finance costs

81,051

86,012

84,821

82,280

78,251

70,717

63,736

57,105

52,643

56,027

66,613

Internal charges and overheads applied

0

0

0

0

0

0

0

0

0

0

0

Other operating funding applications

0

0

0

0

0

0

0

0

0

0

0

Total applications of operating funding

213,862

248,560

250,537

249,689

248,163

243,090

238,635

234,140

232,015

237,856

250,967

            

Surplus (deficit) of operating funding

176,915

158,481

146,473

155,428

163,162

179,245

191,392

204,623

214,332

221,549

224,644

            

Sources of capital funding:

           

Subsidies and grants for capital expenditure

139,021

302,642

350,632

385,079

383,906

339,289

422,646

423,407

375,275

454,831

578,757

Development and financial contributions

63,188

47,855

67,551

71,773

71,405

73,495

73,495

73,495

73,495

71,634

70,795

Increase (decrease) in debt

220,369

9,639

(49,799)

9,492

(61,663)

(61,962)

(40,191)

(54,141)

43,491

290,987

276,457

Gross proceeds from sale of assets

0

0

0

0

0

0

0

0

0

0

0

Lump sum contributions

0

0

0

0

0

0

0

0

0

0

0

Other dedicated capital funding

0

0

0

0

0

0

0

0

0

0

0

Total sources of capital funding

422,578

360,136

368,384

466,344

393,648

350,822

455,950

442,761

492,261

817,452

926,009

            

Application of capital funding:

           

Capital expenditure:

           

- to meet additional demand

164,693

82,063

82,449

84,758

68,911

47,205

61,955

64,182

74,491

156,551

179,271

- to improve the level of service

204,534

261,838

260,712

340,946

278,691

260,302

302,997

264,663

288,598

505,966

546,289

- to replace existing assets

230,266

174,716

171,696

196,068

209,208

222,560

282,390

318,539

343,504

376,484

425,093

Increase (decrease) in reserves

0

0

0

0

0

0

0

0

0

0

0

Increase (decrease) in investments

0

0

0

0

0

0

0

0

0

0

0

Total applications of capital funding

599,493

518,617

514,857

621,772

556,810

530,067

647,342

647,384

706,593

1,039,001

1,150,653

            

Surplus (deficit) of capital funding

(176,915)

(158,481)

(146,473)

(155,428)

(163,162)

(179,245)

(191,392)

(204,623)

(214,332)

(221,549)

(224,644)

            

Funding balance

0

0

0

0

0

0

0

0

0

0

0

> Back to contents list

2.2 Public transport and travel demand management 

This activity covers travel demand management through efficient public transport network and parking management.

Key Activities

Public transport

Over the next few years, Auckland Transport is moving to a simpler and more integrated public transport network for Auckland. This will deliver a new network of buses and trains that will change the way people travel. The new network is a region-wide public transport network that will include frequent, connector, local and peak services.

Auckland will soon be enjoying more frequent, more connected travel where you just turn up and go at a bus stop, train station or ferry terminal. Offering flexible travel options over large parts of the city, the new network will make public transport more useful for a range of travel purposes.

The heart of the public transport new network will be the City Rail Link, a 3.5 km rail tunnel which punches through the dead end at Britomart and loops up Albert Street, with stations at Aotea Square and Karangahape Rd, before passing under the motorways to link with the Western rail line at Mt Eden. By providing easy, congestion-free access to the CBD, the City Rail Link will unlock the potential of Auckland’s public transport network, with flow-on benefits across the whole of Auckland. 

Parking and enforcement

Auckland Transport also manages on-street and off-street parking, including parking buildings and off-street car park sites, and enforces parking, traffic and special vehicle lane restrictions. 

Auckland Transport’s parking services are geared to balance demand for parking spaces with the needs of road users, residents and businesses. This is achieved through paid parking in off-street parking buildings, and through balancing supply and demand for on-street parking spaces using pay-and-display parking options, parking time restrictions, and unrestricted on-street parking.

How these activities drive Auckland Plan outcomes

Belonging & participation

All Aucklanders will be part of and contribute to society, access opportunities, and have the chance to develop to their full potential.

  • providing reliable, safe and affordable travel choices for Aucklanders to get around.

Māori identity & wellbeing

A thriving Māori identity is Auckland’s point of difference in the world – it advances prosperity for Māori and benefits all Aucklanders.

  • Auckland’s unique Māori identity being reflected in transport infrastructure design.

Homes & places

Aucklanders live in secure, healthy, and affordable homes, and have access to a range of inclusive public places.

  • integrating travel choices for where people live, work and play.

Environment & cultural heritage

Aucklanders preserve, protect and care for the natural environment as our shared cultural heritage, for its intrinsic value, and for the benefit of present and future generations.

  • providing viable alternative to private vehicle.

Transport & access

Aucklanders will be able to get where they want to go more easily, safely and sustainably.

  • influencing travel demand
  • maximising benefits from transport technology.
  •  

Opportunity & prosperity

Auckland is prosperous with many opportunities and delivers a better standard of living for everyone.

  • delivering public transport services and projects that minimise barriers for productivity growth.

Key projects

  • City Rail Link
  • Additional electric trains (EMUs)
  • Eastern Busway (formerly known as AMETI)
  • Puhinui Interchange (Bus-Rail)
  • Business Technology – AT HOP/Metro
  • Rosedale Busway Station
  • Bus Priority – Whole of Route Strategic Programme
  • City Centre bus improvements
  • Park and rides
  • Downtown ferry redevelopment

Performance information

Overall, we will measure our performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We specify, contract for and promote public transport services and provide safe, high quality public transport infrastructure

 

Total public transport boardings (millions)

88.4

93.0

96.3

100.6

104.8

Increasing to 149.7

The percentage of public transport trips that are punctual

95.2%

94.0%

94.5%

95.0%

95.5%

95.5%

The percentage of passengers satisfied with public transport services

90%

85%

85%

85%

85%

85%

The percentage of the total public transport cost recovered through fares (1)

47.1%

47-50%

46-50%

46-50%

47-50%

47-50%

We specify, contract for and promote public transport services and provide safe, high quality public transport infrastructure

Active and sustainable mode share (2) at schools where Travelwise programme is implemented

49%

40%

40%

40%

40%

Increasing to 45%

Active and sustainable mode share (2) for morning peak commuters where a Travelwise Choices programme is implemented

48%

40%

40%

40%

40%

Increasing to 45%

Notes to table:

1.     A farebox recovery measures the contribution passenger fares make to the operating cost of providing public transport services. The measure calculates farebox recovery in accordance with NZ Transport Agency guidelines.

2.     Active and sustainable mode share refers to the proportion of the population that use walking, cycling or public transport.

As discussed in the Financial Strategy found as 1.4, Volume 2 the introduction of the Regional Fuel Tax will allow us to significantly increase the service levels for this group of activities. 

Significant negative effects

There may be significant negative effects arising from these activities.

Significant negative effect

Our response

Travel disruption and congestion due to CRL construction and maintenance of public transport infrastructure, may have a significant impact on people and the environment, including air and water pollution.

Public signage and information will be provided and alternative transport options will be encouraged. Construction will be coordinated to minimise disruption and by communicating effectively with travellers and communities likely to be affected.

 

Negative effect

Our response

Heavy metals and other contaminants will be controlled and/or treated before entering the water.

Air pollution will be mitigated by specifying standards relating to the emissions of heavy/construction vehicles provided by commercial and contracted operators.

 

Financial information

Activity

Operating cost and revenue $000

Financial year ending 30 June

2017/18

Year 1

2018/19

Year 2

2019/20

Year 3 2020/21

Year 4-10 2021/22-2027/28

Total

Public transport and travel demand management

Non-rates revenue

399,329

492,865

516,181

537,934

4,320,085

5,867,065

 

Direct operating expenditure*

612,657

633,672

670,545

702,523

5,726,968

7,733,708

 

Capital expenditure

237,123

219,066

379,120

273,856

2,140,246

3,012,288

Parking and enforcement

Non-rates revenue

82,347

85,876

89,041

92,190

705,644

972,751

 

Direct operating expenditure*

30,743

29,347

29,053

28,904

185,964

273,268

 

Capital expenditure

7,560

6,660

9,251

9,601

68,584

94,096

*Direct operating expenditure does not include interest and depreciation.

Prospective Funding Impact Statement

$000

Financial year ending 30 June

Annual

Plan

2017/18

LTP

2018/19

LTP

2019/20

LTP

2020/21

LTP

2021/22

LTP

2022/23

LTP

2023/24

LTP

2024/25

LTP

2025/26

LTP

2026/27

LTP

2027/28

Sources of operating funding:

 

          

General rates, UAGCs, rates penalties

286,388

310,428

350,689

355,485

391,968

505,212

531,659

543,639

563,811

595,606

604,142

Targeted rates

18,840

2,453

2,538

2,628

2,720

2,813

2,910

3,010

3,113

3,218

3,326

Subsidies and grants for operating purposes

204,241

216,672

227,140

233,862

239,781

245,835

252,125

257,204

262,009

266,267

272,222

Fees and charges

243,433

260,686

275,656

293,246

307,568

321,603

339,474

355,419

371,197

391,579

408,538

Internal charges and overheads recovered

0

0

0

0

0

0

0

0

0

0

0

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

34,002

101,383

102,426

103,016

103,093

103,715

104,492

105,050

105,608

106,183

106,765

Total operating funding

786,904

891,622

958,449

988,237

1,045,130

1,179,178

1,230,660

1,264,322

1,305,738

1,362,853

1,394,993

 

 

          

Applications of operating funding:

 

          

Payment to staff and suppliers

643,400

663,019

699,598

731,427

758,509

785,778

817,060

845,212

871,655

902,815

931,896

Finance costs

103,914

124,057

145,197

172,567

199,511

221,777

237,035

243,164

244,760

242,332

237,117

Internal charges and overheads applied

0

0

0

0

0

0

0

0

0

0

0

Other operating funding applications

0

0

0

0

0

0

0

0

0

0

0

Total applications of operating funding

747,314

787,076

844,795

903,994

958,020

1,007,555

1,054,095

1,088,376

1,116,415

1,145,147

1,169,013

 

 

          

Surplus (deficit) of operating funding

39,590

104,546

113,654

84,243

87,110

171,623

176,565

175,946

189,323

217,706

225,980

 

 

          

Sources of capital funding:

 

          

Subsidies and grants for capital expenditure

263,987

56,626

122,875

90,241

87,261

91,552

129,461

137,613

136,380

125,954

52,628

Development and financial contributions

12,064

21,911

30,929

32,862

32,011

32,016

32,016

32,016

32,016

31,847

31,743

Increase (decrease) in debt

(70,958)

277,343

375,013

435,211

457,086

337,455

195,297

(10,658)

(52,467)

(175,260)

(191,088)

Gross proceeds from sale of assets

0

0

0

0

0

0

0

0

0

0

0

Lump sum contributions

0

0

0

0

0

0

0

0

0

0

0

Other dedicated capital funding

0

0

0

0

0

0

0

0

0

0

0

Total sources of capital funding

205,093

355,880

528,817

558,314

576,358

461,023

356,774

158,971

115,929

(17,459)

(106,717)

 

 

          

Application of capital funding:

 

          

Capital expenditure:

 

          

- to meet additional demand

56,211

32,096

50,697

36,546

50,606

52,674

68,671

60,361

25,684

14,882

7,064

- to improve the level of service

165,931

180,856

323,807

227,747

253,777

246,057

350,680

360,463

231,280

136,951

62,623

- to replace existing assets

22,541

12,774

13,867

19,164

25,185

30,415

39,688

45,493

48,288

48,414

49,576

Increase (decrease) in reserves

0

0

0

0

0

0

0

0

0

0

0

Increase (decrease) in investments

0

234,700

254,100

359,100

333,900

303,500

74,300

(131,400)

0

0

0

Total applications of capital funding

244,683

460,426

642,471

642,557

663,468

632,646

533,339

334,917

305,252

200,247

119,263

 

 

          

Surplus (deficit) of capital funding

(39,590)

(104,546)

(113,654)

(84,243)

(87,110)

(171,623)

(176,565)

(175,946)

(189,323)

(217,706)

(225,980)

 

 

          

Funding balance

0

0

0

0

0

0

0

0

0

0

0

> Back to contents list

2.3 Water supply

Watercare Services Limited provides essential services to Auckland. Our water and wastewater services are critical to the economic, social and environmental health and well-being of our communities.

Watercare provides 1.5 million Aucklanders with ‘Aa’-grade safe and reliable drinking water. The company collects, treats and distributes drinking water from 27 water sources including rivers and underground aquifers. Around 360 million litres of water per day was supplied in 2016/2017.

Key activities

The key activities are managing and maintaining:

  • 27 sources of water including 12 dams
  • 15 water treatment plants
  • 91 water reservoirs
  • 9,096 km of water pipes.

How these activities drive Auckland Plan outcomes

Māori identity & wellbeing

A thriving Māori identity is Auckland’s point of difference in the world – it advances prosperity for Māori and benefits all Aucklanders.

  • support to co-governance and co-management arrangements through the provision of services and advice on water supply

Homes & places

Aucklanders live in secure, healthy, and affordable homes, and have access to a range of inclusive public places.

  • identifying initiatives that deliver development opportunities
  • contributing funding that supports the provision of bulk infrastructure within Auckland, unlocking potential development

Environment & cultural heritage

Aucklanders preserve, protect and care for the natural environment as our shared cultural heritage, for its intrinsic value, and for the benefit of present and future generations.

  • providing resilient infrastructure that is adaptive to future changes
  • managing the impact of water consumption to the environment
  •  

Key projects

Hunua 4 Watermain is a 31-kilometre water pipe that will ultimately connect the reservoirs in Redoubt Rd, Manukau, to those in Khyber Pass, Grafton. It provides security of water supply and allows for population growth in Auckland. Construction began in 2012 and is expected to be completed in 2020.

North Harbour No. 2 Watermain will service growth areas in Auckland’s north by increasing the conveyance of treated water from the west to the Albany Reservoirs. It provides an additional route for conveying water from the west to the north to provide security of water supply. Currently, one pipe (North Harbour No.1) carries water from Titirangi to supply people living in the North Shore, Whangaparaoa and Orewa. This pipe was built between 1975 and 1985 and Watercare is unable to carry out maintenance on it without disrupting the local water supply. Construction will begin in 2018.

Huia Water Treatment Plant upgrade The Huia Water Treatment Plant, Auckland’s third largest, is nearing the end of its operational life and needs to be replaced in order to continue supplying a growing Auckland with high quality water from the western water supply dams. Watercare is currently assessing the preferred site (Manuka Road, Waima) and undertaking further technical, ecological and geotechnical analysis with a view to lodge consent applications for the site in mid-2018.

Nihotupu No. 1 and Huia No. 1 Watermains replacement involves two critical watermains which are nearing the end of their design lives and need to be replaced. Construction is expected to be complete in 2022.

Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measure

Actual 2016/17

Target
2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We provide Aucklanders with a reliable supply of safe water

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The extent to which the local authority's drinking water supply complies with part 4 of the drinking-water standards(1) (bacteria compliance criteria)

100%

100%

100%

100%

100%

100%

The extent to which the local authority's drinking water supply complies with part 5 of the drinking-water standards (protozoal compliance criteria)

100%

100%

100%

100%

100%

100%

Median response time for attendance for urgent call-outs: from the time that the local authority receives notification to the time that service personnel reach the site

41 mins

≤60 mins

≤60 mins

≤60 mins

≤60 mins

≤60 mins

Median response time for resolution of urgent calls-outs: from the time that the local authority receives notification to the time that service personnel confirm resolution of the fault or interruption

3 hours

≤5 hours

≤5 hours

≤5 hours

≤5 hours

≤5 hours

Median response time for attendance for non-urgent call-outs: from the time that the local authority receives notification to the time that service personnel reach the site

1 day

≤3 days

≤5 days

≤5 days

≤5 days

≤5 days

Median response time for resolution of non-urgent call-outs: from the time that the local authority receives notification to the time that service personnel confirm resolution of the fault or interruption

2 days

≤6 days

≤6 days

≤6 days

≤6 days

≤6 days

The total number of complaints received by the local authority about any of the following:
  a) drinking water clarity

  b) drinking water taste

  c) drinking water odour

  d) drinking water pressure or flow

  e) continuity of supply

  f) the local authority's response to

     any of these issues

expressed per 1000 connections to the local authority's networked reticulation system

6

≤10

≤10

≤10

≤10

≤10

The percentage of real water loss from the local authority's networked reticulation system(2)

11.9%

≤13%

≤13%

≤13%

≤13%

≤13%

The average consumption of drinking water per day per resident within the territorial authority district

273 litres

268 litres +/- 2.5%

266 litres +/- 2.5%

264 litres +/- 2.5%

262 litres +/- 2.5%

Decreasing to

253.3 litres +/- 2.5%

Notes to table:

1.     Further details can be found at www.health.govt.nz/publication/drinking-water-standards-new-zealand-2005-revised-2008.

2.     This measure tracks unexplained water losses as a percentage of total water produced.  Real Losses are defined as total water produced less water sales and accounted-for water losses.

Significant negative effects

There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities.

Negative effect

Our response

Service disruption during network upgrades and new construction can have economic, social and/or environmental effects.

Significant catchment areas are required to collect water into reservoirs. The construction of large infrastructure projects will have effects on the environment. Dams and associated water discharges can have downstream impacts on flora and fauna ecosystems.

Capturing finite freshwater resources in rural areas may over the long-term limit other uses, for example horticultural/agricultural activities.

We are committed to minimising any detrimental effects of water supply activity where possible and encouraging water conservation. Initiatives are in place to encourage our customers and stakeholders to be efficient with their water use to reduce pressure on Auckland’s water supply.  In rural areas water resources are managed through resource consent processes to ensure over-allocation of aquifers and streams does not occur. Disruption from water main construction works will be mitigated by working collaboratively with service providers and informing the public of disruptions prior to work commencing and ensuring that all areas will be reinstated to original condition.

Watercare carefully manages the discharges from its dams to ensure the downstream ecosystems have sufficient water flow. Compensation and free-discharge valves have been installed on all the dams which allow the release of a continuous flow of water downstream and to simulate floods and reduce algae build-up in the streams. Watercare operates a trap and haul programme for both fish and eels to ensure that migration paths of native fish species are not interrupted by the dams. Whitebait (juvenile galaxiid species) and elvers (juvenile eels) are trapped in downstream river systems and transferred to upstream of the dam. Adult migrating eels, generally between 15 and 40 years old, are caught from within the dams and transferred to suitable locations downstream to complete their breeding cycle in the sea.

Financial information

Activity

Operating cost and revenue $000

Financial year ending 30 June

2017/18

Year 1

2018/19

Year 2

2019/20

Year 3

2020/21

Year 4-10 2021/22-2027/28

Total

Water supply

Non-rates revenue

203,667

218,994

228,819

236,496

1,898,109

2,582,418

 

Direct operating expenditure*

78,959

80,451

83,326

85,942

693,261

942,980

 

Capital expenditure

135,400

174,457

184,915

125,490

1,408,785

1,893,647

*Direct operating expenditure does not include interest and depreciation.

Prospective Funding Impact Statement

$000

Financial year ending 30 June

Annual Plan

2017/18

LTP 2018/19

LTP 2019/20

LTP 2020/21

LTP 2021/22

LTP 2022/23

LTP 2023/24

LTP 2024/25

LTP 2025/26

LTP 2026/27

LTP 2027/28

Sources of operating funding:

 

          

General rates, UAGCs, rates penalties[7]

(688)

(713)

(741)

(779)

(818)

(860)

(904)

(949)

(995)

(1,043)

(1,094)

Targeted rates

0

0

0

0

0

0

0

0

0

0

0

Subsidies and grants for operating purposes

0

0

0

0

0

0

0

0

0

0

0

Fees and charges

150,117

159,593

166,301

172,587

179,538

186,873

194,991

202,220

210,019

218,047

227,108

Internal charges and overheads recovered

0

0

0

0

0

0

0

0

0

0

0

Local authorities fuel tax, fines, infringement[8] fees and other receipts

53,550

59,401

62,518

63,909

66,401

64,975

65,732

65,572

70,872

70,365

75,398

Total operating funding

202,979

218,281

228,078

235,717

245,121

250,988

259,819

266,843

279,896

287,369

301,412

 

 

          

Applications of operating funding:

 

          

Payment to staff and suppliers

78,959

80,451

83,326

85,942

89,231

92,303

96,105

99,043

102,181

105,383

109,016

Finance costs

14,644

14,038

16,841

18,443

18,134

17,604

20,272

27,310

31,826

33,097

34,555

Internal charges and overheads applied

0

0

0

0

0

0

0

0

0

0

0

Other operating funding applications

0

0

0

0

0

0

0

0

0

0

0

Total applications of operating funding

93,603

94,489

100,167

104,385

107,365

109,907

116,377

126,353

134,007

138,480

143,571

 

 

          

Surplus (deficit) of operating funding

109,376

123,792

127,911

131,332

137,756

141,081

143,442

140,490

145,889

148,889

157,841

 

 

          

Sources of capital funding:

 

          

Subsidies and grants for capital expenditure

0

0

0

0

0

0

0

0

0

0

0

Development and financial contributions

0

0

0

0

0

0

0

0

0

0

0

Increase (decrease) in debt

26,024

50,666

57,004

(5,842)

6,927

(6,566)

148,935

165,026

5,338

36,994

36,746

Gross proceeds from sale of assets

0

0

0

0

0

0

0

0

0

0

0

Lump sum contributions

0

0

0

0

0

0

0

0

0

0

0

Other dedicated capital funding

0

0

0

0

0

0

0

0

0

0

0

Total sources of capital funding

26,024

50,666

57,004

(5,842)

6,927

(6,566)

148,935

165,026

5,338

36,994

36,746

 

 

          

Application of capital funding:

 

          

Capital expenditure:

 

          

- to meet additional demand

61,993

95,043

100,513

57,998

57,979

39,942

65,589

80,456

56,943

62,007

76,392

- to improve the level of service

21,731

27,031

16,068

2,293

3,064

7,212

26,267

27,628

2,719

2,986

2,573

- to replace existing assets

51,676

52,384

68,334

65,199

83,640

87,361

200,521

197,432

91,565

120,890

115,622

Increase (decrease) in reserves

0

0

0

0

0

0

0

0

0

0

0

Increase (decrease) in investments

0

0

0

0

0

0

0

0

0

0

0

Total applications of capital funding

135,400

174,458

184,915

125,490

144,683

134,515

292,377

305,516

151,227

185,883

194,587

 

 

          

Surplus (deficit) of capital funding

(109,376)

(123,792)

(127,911)

(131,332)

(137,756)

(141,081)

(143,442)

(140,490)

(145,889)

(148,889)

(157,841)

            

Funding balance

0

0

0

0

0

0

0

0

0

0

0

> Back to contents list

2.4 Wastewater treatment and disposal                

Watercare Services Limited provides essential services to Auckland. Our water and wastewater services are critical to the economic, social and environmental health and well-being of our communities.

Watercare provides safe and reliable wastewater services to 1.5 million Aucklanders. In 2016/2017, Watercare’s wastewater network collected and treated around 458 million litres of wastewater to a high standard, every day.  The two main wastewater plants servicing the majority of the region are located at Māngere on the Manukau Harbour and Rosedale on the North Shore.

Key Activities

The key activities are managing and maintaining:

  • 7999 km of wastewater pipes
  • 515 wastewater pump stations
  • 18 wastewater treatment plants.

How these activities drive Auckland Plan outcomes

Māori identity & wellbeing

A thriving Māori identity is Auckland’s point of difference in the world – it advances prosperity for Māori and benefits all Aucklanders.

  • support to co-governance and co-management arrangements through the provision of services and advice on wastewater treatment and disposal

Homes & places

Aucklanders live in secure, healthy, and affordable homes, and have access to a range of inclusive public places.

  • identifying initiatives that deliver development opportunities
  • contributing funding that supports the provision of bulk infrastructure within Auckland, unlocking potential development

Environment & cultural heritage

Aucklanders preserve, protect and care for the natural environment as our shared cultural heritage, for its intrinsic value, and for the benefit of present and future generations.

  • providing resilient infrastructure that is adaptive to future changes
  • managing the impact of wastewater discharges to the receiving environments

Key projects

Central Interceptor is a 13-kilometre wastewater pipeline to run between Western Springs and the Māngere Wastewater Treatment Plant. It will run underground at a depth of between 22 and 110 metres, crossing the Manukau Harbour at about 15 meters below the seabed. The pipeline will increase the capacity of the wastewater network, replace ageing infrastructure and reduce wet-weather wastewater overflows. Construction is likely to commence in 2019 and be completed in 2025.

Northern Interceptor is a large wastewater pipe that will divert flows from north-west Auckland, which currently connect to the Māngere Wastewater Treatment Plant, to the Rosedale Wastewater Treatment Plant on the North Shore. This has two major benefits: it utilises spare capacity at the Rosedale plant and it gives the Māngere plant greater capacity to support growth in the central and southern areas. Construction is planned to be completed in 2021. Future planned phases are to occur when growth requires it.

Pukekohe Wastewater Treatment Upgrade will provide additional capacity to cater for population growth in the Pukekohe wastewater treatment catchment. Construction is planned to be completed in 2020.

Sub-regional Wastewater Servicing – Major wastewater treatment plant consolidation and pipe upgrades are planned for two sub-regions. The areas serviced are the south-west communities of Kingseat, Waiuku, Glenbrook and Clarks Beach and the north-east communities of Warkworth, Snells Beach and Algies Bay. At present, the wastewater treatment plants serving these communities are effective, and the upgrades will cater for population growth and produce high-quality treated wastewater for discharge. Construction of the upgrades in the north-east is planned for completion in 2022. The south-west servicing scheme is currently under appeal.

Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target

 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We collect and treat Auckland's waste water in a safe and sustainable way

The number of dry weather overflows from the territorial authority's sewerage system, expressed per 1000 sewerage connections to that sewerage system

0.4

≤10

≤10

≤10

≤10

≤10

Compliance with the territorial authority's resource consents for discharge from its sewerage system measured by the number of:
a) abatement notices
b) infringement notices
c) enforcement orders
d) convictions

received by the territorial authority in relation to those resource consents

a) 0
b) 0
c) 0
d) 0

a) ≤2
b) ≤2
c) ≤2
d) 0

a) ≤2
b) ≤2
c) ≤2
d) 0

a) ≤2
b) ≤2
c) ≤2
d) 0

a) ≤2
b) ≤2
c) ≤2
d) 0

a) ≤2
b) ≤2
c) ≤2
d) 0

Attendance at sewerage overflows resulting from blockages or other faults:  median response time for attendance - from the time that the territorial authority receives notification to the time that service personnel reach the site

50 mins

≤60 mins

≤60 mins

≤60 mins

≤60 mins

≤60 mins

Attendance at sewerage overflows resulting from blockages or other faults:  median response time for resolution - from the time that the territorial authority receives notification to the time that service personnel confirm resolution of the blockage or other fault

3 hours

≤5 hours

≤5 hours

≤5 hours

≤5 hours

≤5 hours

The total number of complaints received by the territorial authority about any of the following:
  a)  sewerage odour
  b)  sewerage system faults
  c)  sewerage system blockages
  d)  the territorial authority's response to issues with its sewerage system expressed per 1000 connections to the territorial authority's sewerage system

24

≤50

≤50

≤50

≤50

≤50

Significant negative effects

There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities.

Negative effect

Our response

Watercare’s wastewater network effectively moves wastewater from private properties to our wastewater treatment plants. However, during periods of heavy rainfall, wet-weather overflows occur when the volume of stormwater entering the wastewater network exceeds the capacity of our pipes. This is different to dry-weather overflows, which occur when there is a build-up of fat or items like wet wipes in a pipe. These things don’t break down in water. Instead, they form large, impenetrable clumps that block pipes and cause overflows.

Watercare operates a preventive maintenance programme, with regular inspections and clearing of known blockage points and has an emergency overflow response and clean-up procedure. We have an Auckland-wide bio solids strategy and are trialling screens on overflow structures to remove solid material from wastewater discharges. Work programmes also include upgrades of non-metropolitan treatment plants, environmental monitoring and sampling programmes. Long-term responses include interceptors planned for the central, western and northern areas.

 

Financial information

Activity

Operating cost and revenue $000

Financial year ending 30 June

2017/18

Year 1

2018/19

Year 2

2019/20

Year 3

2020/21

Year 4-10 2021/22-2027/28

Total

Wastewater

Non-rates revenue

377,011

405,872

426,319

444,637

3,696,544

4,973,372

 

Direct operating expenditure*

132,471

136,230

141,404

146,162

1,188,242

1,612,038

 

Capital expenditure

223,063

299,629

347,806

469,731

2,465,509

3,582,675

*Direct operating expenditure does not include interest and depreciation.

Prospective Funding Impact Statement

$000

Financial year ending 30 June

Annual

Plan

2017/18

LTP 2018/19

LTP 2019/20

LTP 2020/21

LTP 2021/22

LTP 2022/23

LTP 2023/24

LTP 2024/25

LTP 2025/26

LTP 2026/27

LTP 2027/28

Sources of operating funding:

 

          

General rates, UAGCs, rates penalties[9]

(1,471)

(1,504)

(1,563)

(1,643)

(1,727)

(1,815)

(1,907)

(2,003)

(2,100)

(2,201)

(2,308)

Targeted rates

0

0

0

0

0

0

0

0

0

0

0

Subsidies and grants for operating purposes

0

0

0

0

0

0

0

0

0

0

0

Fees and charges

324,327

347,566

364,985

381,718

400,171

419,751

441,392

461,317

482,873

505,270

530,423

Internal charges and overheads recovered

0

0

0

0

0

0

0

0

0

0

0

Local authorities fuel tax, fines, infringement fees and other receipts[10]

52,684

58,306

61,334

62,919

65,617

65,023

66,228

66,669

62,251

62,551

67,009

Total operating funding

375,540

404,368

424,756

442,994

464,061

482,959

505,713

525,983

543,024

565,620

595,124

 

 

          

Applications of operating funding:

 

          

Payment to staff and suppliers

132,471

136,230

141,404

146,162

151,439

157,656

163,835

169,891

175,655

181,545

188,210

Finance costs

80,185

76,860

83,988

95,061

106,979

118,168

126,568

134,052

138,290

138,649

138,363

Internal charges and overheads applied

0

0

0

0

0

0

0

0

0

0

0

Other operating funding applications

0

0

0

0

0

0

0

0

0

0

0

Total applications of operating funding

212,656

213,090

225,392

241,223

258,418

275,824

290,403

303,943

313,945

320,194

326,573

 

 

          

Surplus (deficit) of operating funding

162,884

191,278

199,364

201,771

205,643

207,135

215,310

222,040

229,079

245,426

268,551

 

 

          

Sources of capital funding:

 

          

Subsidies and grants for capital expenditure

0

0

0

0

0

0

0

0

0

0

0

Development and financial contributions

0

0

0

0

0

0

0

0

0

0

0

Increase (decrease) in debt

60,179

108,351

148,442

267,960

277,173

239,713

175,027

173,492

(3,354)

5,793

4,483

Gross proceeds from sale of assets

0

0

0

0

0

0

0

0

0

0

0

Lump sum contributions

0

0

0

0

0

0

0

0

0

0

0

Other dedicated capital funding

0

0

0

0

0

0

0

0

0

0

0

Total sources of capital funding

60,179

108,351

148,442

267,960

277,173

239,713

175,027

173,492

(3,354)

5,793

4,483

 

 

          

Application of capital funding:

 

          

Capital expenditure:

 

          

- to meet additional demand

124,923

193,664

235,844

296,528

303,652

249,714

166,683

163,771

80,258

94,147

134,921

- to improve the level of service

10,165

35,362

43,323

84,983

95,176

88,491

89,181

114,809

42,232

41,126

43,681

- to replace existing assets

87,975

70,603

68,639

88,220

83,988

108,643

134,473

116,952

103,235

115,946

94,432

Increase (decrease) in reserves

0

0

0

0

0

0

0

0

0

0

0

Increase (decrease) in investments

0

0

0

0

0

0

0

0

0

0

0

Total applications of capital funding

223,063

299,629

347,806

469,731

482,816

446,848

390,337

395,532

225,725

251,219

273,034

 

 

          

Surplus (deficit) of capital funding

(162,884)

(191,278)

(199,364)

(201,771)

(205,643)

(207,135)

(215,310)

(222,040)

(229,079)

(245,426)

(268,551)

            

Funding balance

0

0

0

0

0

0

0

0

0

0

0

> Back to contents list

2.5 Stormwater management

This group of activities include the operation and maintenance of an extensive network of built and natural stormwater infrastructure and implementation of projects funded through the water quality targeted rate.

Key Activities

Auckland Council’s stormwater management, flood protection and control, and waterways management functions including:

  • Improving water quality through the management and regulation of land uses, runoff, private discharges and public drainage.
  • Operating and maintaining an extensive network of natural and built stormwater systems.
  • Planning, design, and construction of new stormwater systems, flood protection and control structures, and waterway enhancements.
  • Management and enhancement of waterways and aquifers.

These activities will continue our investment in an extensive network of built and natural stormwater infrastructure for environmental protection, renewals, safety concerns and the provision for priority growth areas.

It is important to note that under the Local Government Act, councils are required to show flood protection and control works (such as major stop banks and dams) designed to protect urban and rural areas from flooding, as a separate group of activities.  Due to the relatively short river catchments in the Auckland Region, Auckland Council does not have any flood protection and control works of a size and scale that qualify as major flood protection and control schemes under the criteria relating to reporting requirements set out in the Non-Financial Performance Measure Rules 2013. Therefore, the council manages any minor flood protection and control works within our stormwater management activity.

How these activities drive Auckland Plan outcomes

Māori identity & wellbeing

A thriving Māori identity is Auckland’s point of difference in the world – it advances prosperity for Māori and benefits all Aucklanders.

  • support to co-governance and co-management arrangements through the provision of services and advice on stormwater management arrangements

Homes & places

Aucklanders live in secure, healthy, and affordable homes, and have access to a range of inclusive public places.

  • identifying initiatives that deliver development opportunities
  • contributing funding that supports the provision of bulk infrastructure within Auckland, unlocking potential development

Environment & cultural heritage

Aucklanders preserve, protect and care for the natural environment as our shared cultural heritage, for its intrinsic value, and for the benefit of present and future generations.

  • providing resilient infrastructure that is adaptive to future changes
  • managing the impact of stormwater discharges to the receiving environments
  • supporting and delivering projects that embed water-sensitive urban design and future-proofed infrastructure

Key projects

Over the 10 years of LTP 2018-2028, the council will optimise and improve water outcomes for Auckland through key infrastructure initiatives described below:

  • Design and deliver stormwater upgrade and improvement projects:
    • Takanini Cascades and Grove Road Culvert (including land purchase) – A new open channel and culvert incorporating cascading weirs, and associated green space to convey up to 100-year flood flows to service the Takanini Growth Areas.
    • Takanini School Road Area and Popes Road – A new trunk pipeline along Takanini School Road and a stormwater quality pond at 2 Popes Road to service development as per Takanini Plan Change 6A and 6B.
    • Ports of Auckland Outfall Upgrade – Design and installation of a 3.3 metres diameter stormwater pipe from the south side of Quay Street across Ports of Auckland to the Waitematā Harbour. This is to replace the existing pipeline which is in poor condition.
    • Oakley Walmsley and Underwood Park stream conveyance – Upgrade culverts and widening of Oakley Creek through Walmsley Park to convey flood flows to enable intensification and redevelopment in the upper catchment.
  • Implement the water quality improvement programme, through delivering joint initiatives by Watercare, Auckland Transport and Auckland Council to upgrade critical stormwater and wastewater network infrastructure that the council is responsible for, such as the Western Isthmus Water Quality Improvement programme (WIWQIP). This will improve water quality in the receiving environment, reduce wastewater overflows and unlock the potential of the area for business and residential growth.  This will be achieved through investment in green infrastructure, stormwater treatment, network extensions and combined sewer separation projects to allow capacity for growth, reduce wastewater overflows and improve infrastructure resilience.  Key examples are as follows:
    • Central Interceptor consisting of a tunnel with a diameter of 4.5 metres from the Māngere Wastewater Treatment Plant to Western Springs (and potentially beyond to Saint Marys), together with a terminal pump station and link sewers, which will collect wastewater and stormwater from parts of the combined network in the western isthmus area and convey them to the Māngere Wastewater Treatment Plant.
    • Picton Street the separation of the combined wastewater/stormwater system on Picton Street and installation of new stormwater network to reduce wastewater overflow volumes to Wynyard Wharf outfall and alleviate property flooding.
    • Saint Marys Bay/Masefield Beach stormwater upgrade –  A collaborative project between Healthy Waters, Watercare and Panuku to divert combined sewer overflows from Saint Marys Bay and Masefield beach to a discharge point further out in the harbour; and renewal of a failing stormwater coastal outfall.
      Other water quality improvement programmes include:
    • a programme to reduce contaminants such as sediments and heavy metals entering waterways
    • rehabilitation of urban and rural streams – e.g. Oamaru creek in East Tamaki
    • introduction of a proactive onsite waste water monitoring programme
    • development of a safe networks programme to investigate sources of contamination coming into stormwater system from cross connections and other types of unconsented discharge.
  • Deliver on the National Policy Statement for Freshwater Management for Auckland

In addition, to support the development of the above water quantity and quality initiatives, a comprehensive communication and education programme to encourage water sensitive and low impact design for stormwater infrastructure, optimisation of operational practices, as well as asset and service risk management will be undertaken.

Performance information

Overall, we will measure our performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We manage the stormwater network to minimise the risks of flooding to Aucklanders

The number of flooding events that occur and the associated number of habitable floors affected per 1000 properties connected to Auckland Council’s stormwater network

N/A

1 per 1000 properties

1 per 1000 properties

1 per 1000 properties

1 per 1000 properties

1 per 1000 properties

The median response time to attend a flooding event, measured from the time that Auckland Council receives notification to the time that service personnel reach the site

N/A

2 hours

2 hours

2 hours

2 hours

2 hours

The number of complaints received about the performance of the stormwater system per 1000 properties connected to Auckland Council’s stormwater system

1.01 per 1000 properties

3 per 1000 properties

3 per 1000 properties

3 per 1000 properties

3 per 1000 properties

3 per 1000 properties

The percentage of response time during storms to close stormwater manholes within three hours

N/A

New Measure

90%

90%

90%

90%

We manage our harbours and waterways through sustainable management of the stormwater network

Auckland Council stormwater compliance with resource consents for discharge from its stormwater system, measured by the number of:
a) abatement notices; and
b) infringement notices; and
c) enforcement orders; and
d) successful prosecutions, received in relation to those resource consents

0

0

0

0

0

0

We provide safe water quality at beaches and coastal areas for recreation (Auckland swimmabilty Index)

The proportion of time beaches are suitable for contact recreation during the summer swimming season (1 November to 30 April)

N/A

New Measure

78%

79%

80%

Increasing 1% every year to 87% in 2027/28

As discussed in the Financial Strategy found as 1.4, Volume 2 the introduction of the Water Quality Targeted Rate will allow us to significantly increase the service levels for this group of activities. 

Significant negative effects

There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities.

Negative effect

Our response

Stormwater which is not treated can pollute harbours by transporting environmental contaminants. It can also degrade streams and rivers in heavy rainfall, and cause property damage as well as potentially impact on the environment with associated health risks.

We are enhancing our current treatment programme to reduce the effects of stormwater. We will work with, and where necessary regulate, industry and developers to reduce pollutant loads at their source or install treatment devices to remove contaminants from stormwater in sensitive areas. We are also actively looking at water sensitive design options to better manage and filter stormwater contaminants. Our regular maintenance programme will help reduce risks.

Financial information

Activity

Operating cost and revenue $000

Financial year ending 30 June

2017/18

Year 1

2018/19

Year 2

2019/20

Year 3

2020/21

Year 4-10 2021/22-2027/28

Total

Stormwater

Non-rates revenue

2,132

2,168

2,212

2,256

17,090

23,726

 

Direct operating expenditure*

35,983

45,724

48,375

50,146

473,716

617,961

 

Capital expenditure

103,154

121,477

134,978

128,863

998,349

1,383,667

*Direct operating expenditure does not include interest and depreciation.

Prospective Funding Impact Statement

$000

Financial year ending 30 June

Annual Plan 2017/18

LTP 2018/19

LTP 2019/20

LTP 2020/21

LTP 2021/22

LTP 2022/23

LTP 2023/24

LTP 2024/25

LTP 2025/26

LTP 2026/27

LTP 2027/28

Sources of operating funding:

 

          

General rates, UAGCs, rates penalties

86,750

122,112

121,812

120,022

126,346

134,946

144,736

152,799

159,622

167,171

172,663

Targeted rates

38

40,976

41,696

42,529

43,363

44,235

45,106

45,963

46,836

47,726

48,633

Subsidies and grants for operating purposes

0

0

0

0

0

0

0

0

0

0

0

Fees and charges

0

0

0

0

0

0

0

0

0

0

0

Internal charges and overheads recovered

0

0

0

0

0

0

0

0

0

0

0

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

2,132

2,168

2,212

2,256

2,301

2,347

2,394

2,442

2,474

2,541

2,591

Total operating funding

88,920

165,256

165,720

164,807

172,010

181,528

192,236

201,204

208,932

217,438

223,887

 

 

          

Applications of operating funding:

 

          

Payment to staff and suppliers

27,475

31,250

34,221

37,684

41,432

44,459

48,760

52,613

56,554

60,932

65,243

Finance costs

14,647

17,025

15,941

14,560

12,722

10,977

9,254

7,419

5,549

3,490

1,352

Internal charges and overheads applied

8,508

14,474

14,154

12,462

12,172

12,980

14,854

15,002

15,375

16,629

16,707

Other operating funding applications

0

0

0

0

0

0

0

0

0

0

0

Total applications of operating funding

50,630

62,749

64,316

64,706

66,326

68,416

72,868

75,034

77,478

81,051

83,302

 

 

          

Surplus (deficit) of operating funding

38,290

102,507

101,404

100,101

105,684

113,112

119,368

126,170

131,454

136,387

140,585

 

 

          

Sources of capital funding:

 

          

Subsidies and grants for capital expenditure

0

0

0

0

0

0

0

0

0

0

0

Development and financial contributions

55,647

42,431

59,895

63,638

56,550

52,558

52,558

52,558

52,558

50,468

49,276

Increase (decrease) in debt

9,217

(23,461)

(26,321)

(34,876)

(28,701)

(27,825)

(31,360)

(33,577)

(37,516)

(41,018)

(40,938)

Gross proceeds from sale of assets

0

0

0

0

0

0

0

0

0

0

0

Lump sum contributions

0

0

0

0

0

0

0

0

0

0

0

Other dedicated capital funding

0

0

0

0

0

0

0

0

0

0

0

Total sources of capital funding

64,864

18,970

33,574

28,762

27,849

24,733

21,198

18,981

15,042

9,450

8,338

 

 

          

Application of capital funding:

 

          

Capital expenditure:

 

          

- to meet additional demand

31,088

46,915

48,551

47,501

55,838

52,492

41,569

37,862

38,176

42,352

42,122

- to improve the level of service

32,389

35,935

48,086

51,904

47,956

51,557

62,717

70,673

70,616

66,779

69,083

- to replace existing assets

39,677

38,627

38,341

29,458

29,739

33,796

36,280

36,616

37,704

36,706

37,718

Increase (decrease) in reserves

0

0

0

0

0

0

0

0

0

0

0

Increase (decrease) in investments

0

0

0

0

0

0

0

0

0

0

0

Total applications of capital funding

103,154

121,477

134,978

128,863

133,533

137,845

140,566

145,151

146,496

145,837

148,923

 

 

          

Surplus (deficit) of capital funding

(38,290)

(102,507)

(101,404)

(100,101)

(105,684)

(113,112)

(119,368)

(126,170)

(131,454)

(136,387)

(140,585)

            

Funding balance

0

0

0

0

0

0

0

0

0

0

0

> Back to contents list

2.6 Local council services

Local council services focus on activities governed locally by Auckland Council's 21 Local Boards. While primarily centring on community services and public spaces, these services also include programmes to improve local environmental and economic development outcomes.

Key activities

  • Local community services
    Local community services contribute to community wellbeing and a sense of belonging by increasing participation in local events, programmes and activities, across library information and literacy services, arts and culture, parks sport and recreation and, events facilitation. These services are provided through the provision of community facilities and spaces that are owned or managed by the council, and in some instances through community group partnerships.
    Community-led action and volunteering is supported through provision of local grants programmes, community leases, advice and activities where local communities or communities of interest can get involved and shape the way we deliver services or provide community assets.
    Celebrating our cultural heritage means Auckland has a unique point of difference.  Investment in dual-naming (Te Reo and English) of our libraries, community facilities, parks and landmarks connect us with the rich history of Auckland as a place, while programmes such as Auckland Libraries Dare to Explore summer reading programme (provided in English and Te Reo) mean all Aucklanders have opportunities to learn our official language.
  • Local environmental management
    Local environmental management activities include local habitat restoration, pest animal and plant control, species management, native planting, water quality improvements, support for community environmental initiatives, local low carbon, sustainability and zero waste activities and local environmental education programmes.
  • Local planning and development
    Local planning and development includes local business area planning, local street environment and town centres and local environment and heritage protection. These activities are economic, environmental, heritage and spatial projects, and enable plans for and delivery of great local places. This activity also includes grants made to Business Improvement Districts (BIDs), which are funded by a targeted rate.
  • Local governance
    Local governance activities support our 21 local boards to engage with and represent their communities, make decisions on local activities and support local board input into regional plans, policies and strategies. This support also includes providing strategic advice, leadership of the preparation of local board plans, support in developing Local Board Agreements, community engagement including relationships with mana whenua and Māori communities, and democracy and administrative support.

How these activities drive Auckland Plan outcomes

Belonging & participation

All Aucklanders will be part of and contribute to society, access opportunities, and have the chance to develop to their full potential.

  • provision of social policy
  • supporting community organisations and providing community facilities and services
  • funding events and other initiatives that celebrate and showcase Auckland’s diversity
  • encouraging participation in the decision-making process by a range of diverse groups and communities through advisory panels.

Māori identity & wellbeing

A thriving Māori identity is Auckland’s point of difference in the world that advances prosperity for Māori and benefits all Aucklanders.

 

  • provision of support to co-governance and co-management arrangements.

Homes & places

Aucklanders live in secure, healthy, and affordable homes, and have access to a range of inclusive public places.

  • delivering projects and initiatives that provide public places and spaces.

Environment & cultural heritage

Aucklanders preserve, protect and care for the natural environment as our shared cultural heritage for its intrinsic value and for the benefit of present and future generations.

  • delivering projects and initiatives that protect and enhance the environment and cultural heritage
  • encouraging environmental stewardship by the community.

Transport & access

Aucklanders will be able to get where they want to go more easily, safely and sustainably.

  • Local planning considers accessibility and transport outcomes.

Opportunity & prosperity

Auckland is prosperous with many opportunities and delivers a better standard of living for everyone.

  • providing services that encourage lifelong learning and training with a focus on those most in need.

Key projects

Local community services

Focus on improving service to customers by:

  • Joining up our services and programmes in new and existing service sites so that customers can access literacy, digital literacy, learning, arts and cultural programmes, community networking spaces, public information and wider council services from three multipurpose library and community hubs at Westgate, Takanini and Flatbush and a new library and community centre in Avondale.
  • Making it easy for people to get out and about and be physically active by continuing our walkway and trail programme with further development of the Tamaki, Norana Park and Te Whau walkways and continuing our sports parks redevelopment programme with investment in parks such as Rautawhiri park, Hobsonville Point/Scotts Road, Fowlds park and Colin Maiden park. 
  • Serving new communities or addressing gaps in provisions for learn to swim, community recreation and fitness programmes and having fun as a family by completing a new pool and recreation facility at Flatbush and a second at New Lynn or Avondale. Planning for a new pool in the Northwest and Albert-Eden will also commence.
  • Continued investment through renewals for existing assets to ensure they are fit for purpose and maintained to a good standard.
  • Connecting people and nature through an ongoing parks development programme with further development at Marlborough, Moire, Keith Hay, Crown Lynn, Barry Curtis parks.
  • Working with local boards to support the One Local Board Initiatives programme through development of business cases to allocate investment and delivery of projects.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We provide library services and programmes that support Aucklanders with reading and literacy, and opportunities to participate in community and civic life

The number of visits to library facilities

11.9 million

11.4 million

11.0 million

10.5 million

10.0 million

Decreasing to 7.8 million

The number of internet sessions at libraries (unique sessions over public computing or public WIFI networks)

7.4 million

7.5 million

7.9 million

7.9 million

7.9 million

7.9 million

Percentage of customers satisfied with the quality of library service delivery

80%

90%

85%

85%

85%

85%

We provide recreation programmes, opportunities and facilities to get Aucklanders more active, more often

The percentage of park visitors who are satisfied with the overall quality of sportsfields

73%

73%

74%

74%

74%

74%

The customers' Net Promoter Score for Pool and Leisure Centres (1)

27

27

29

29

29

29

We provide safe and accessible parks, reserves and beaches

The percentage of users who are satisfied with the overall quality of local parks

72%

75%

73%

73%

73%

73%

The percentage of residents who visited a local park in the last 12 months

83%

85%

83%

83%

83%

83%

Provide safe, reliable and accessible social infrastructure for Aucklanders that contributes to placemaking and thriving communities

Percentage of Aucklanders that feel their local town centre is safe - day time

80%

84%

80%

80%

80%

80%

Percentage of Aucklanders that feel their local town centre is safe - night time

35%

55%

40%

40%

40%

40%

We fund, enable and deliver community events and experiences that enhance identity and connect people

The number of attendees at Council-led community events (2)

N/A

New measure

62,500

62,500

62,500

62,500

The percentage of attendees satisfied with a nominated local community event (3)

N/A

New measure

73%

73%

73%

73%

We fund, enable and deliver arts and culture experiences that enhance identity and connect people

The percentage of arts, and culture programmes, grants and activities that are community led (4)

N/A

New measure

77%

77%

77%

77%

Utilising the Empowered Communities Approach, we support Aucklanders to create thriving, connected and inclusive communities

The percentage of Empowered Communities activities that are community led (4)

N/A

New measure

35%

40%

45%

45%

The percentage of Empowered Communities activities that build capacity and capability to assist local communities to achieve their goals

N/A

New measure

30%

35%

40%

40%

We provide art facilities, community centres and hire venues that enable Aucklanders to run locally responsive activities, promoting participation, inclusion and connection

The number of participants in activities at art facilities, community centres and hire venues

N/A

New measure

5.9 million

6.0 million

6.1 million

6.1 million

The percentage of art facilities, community centres and hire venues network that is community led (4)

N/A

New measure

57%

60%

62%

62%

We showcase Auckland’s Māori identity and vibrant Māori culture

The percentage of local programmes, grants and activities that respond to Māori aspirations

N/A

New measure

11.4%

11.4%

11.4%

11.4%

Notes to table

1.     Net promoter score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a product or service to others.

2.     Council-led events are those primarily funded by the council (excluding sponsorship) and council staff plan or deliver the event.

3.     Each local board will nominate an event from the council-led events programme held in their board area for which attendees will be surveyed on their satisfaction.

4.     Community led activities are those where the main deliverer of the programme is not council staff and the deliverers receive some support from council. Support is either in the form of funding or brokerage for the programme to happen, council doesn’t have control over the programme.

Local environmental management
  • Continue to work closely with community groups, schools and iwi to improve water quality and biodiversity through local board investment, for example through the North West Wild Link, Industry Pollution Prevention Programmes and local restoration activities.
  • Ongoing delivery of local board funded ecological restoration or water quality initiatives.
  • Supporting local Pest Free Auckland initiatives such as community rat and possum trappers, weed control and community restoration groups.
  • Localised low carbon programmes to support local actions at a household level such as Healthy Rentals, Love Your Neighbourhood, Eco Neighbourhoods and Low Carbon Networks.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We manage Auckland's natural environment

The proportion of local programmes that deliver intended environmental actions and/or outcomes

96%

90%

98%

98%

98%

98%

Local planning and development
  • Developing plans for town centres and local areas
  • Identifying and protecting heritage places and providing heritage advice.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We help attract investment, businesses and a skilled workforce to Auckland

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

98%

100%

100%

100%

100%

100%

Local governance
  • Develop and deliver three-yearly local board plans.
  • Develop annual local board agreements (budgets).
  • Develop and deliver a three-year development programme for all elected members.
  • Support local boards input into regional strategies, polices and plans.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We provide opportunities for Māori to contribute to community and civic life

The number of local boards that have signed a formal relationship agreement with at least one iwi (Out of 21)

N/A

New measure

15

21

21

21

Significant negative effects

There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities.

Negative effect

Our response

To manage the risk of pest plants and pest animals on our indigenous biodiversity and primary productivity our biosecurity activities may result in negative impacts due to the use of toxins.

To manage the potential negative effects arising from toxin use council complies with all appropriate standards and regulations. This ensures that any negative effects are avoided, minimised or mitigated. 

 

Financial information

Activity

Operating cost and revenue $000

Financial year ending 30 June

2017/18

Year 1

2018/19

Year 2

2019/20

Year 3

2020/21

Year 4-10 2021/22-2027/28

Total

Local community services

Non-rates revenue

41,713

39,229

40,614

41,809

320,974

442,626

 

Direct operating expenditure*

246,906

282,081

282,129

281,676

2,109,934

2,955,820

 

Capital expenditure

152,938

149,324

145,507

203,462

1,643,276

2,141,569

Local environmental management

Non-rates revenue

0

0

0

0

0

0

 

Direct operating expenditure*

4,485

6,232

1,204

1,176

8,774

17,386

 

Capital expenditure

0

0

0

0

0

0

Local planning and development

Non-rates revenue

0

0

0

0

0

0

 

Direct operating expenditure*

2,625

1,668

287

279

2,326

4,560

 

Capital expenditure

33,581

20,509

2,514

2,495

18,252

43,770

Local governance

Non-rates revenue

0

0

0

0

0

0

 

Direct operating expenditure*

27,890

19,591

24,732

24,185

168,042

236,550

 

Capital expenditure

0

0

0

0

0

0

*Direct operating expenditure does not include interest and depreciation.

Prospective Funding Impact Statement

$000

Financial year ending 30 June

Annual

Plan 2017/18

LTP

2018/19

LTP

2019/20

LTP

2020/21

LTP

2021/22

LTP

2022/23

LTP

2023/24

LTP

2024/25

LTP

2025/26

LTP

2026/27

LTP

2027/28

Sources of operating funding:

 

          

General rates, UAGCs, rates penalties

281,398

318,292

329,768

343,163

361,544

379,028

397,870

417,529

438,904

465,163

488,164

Targeted rates

17,978

18,754

18,872

19,272

19,681

20,099

20,527

20,963

21,409

21,865

22,331

Subsidies and grants for operating purposes

7,713

4,384

4,471

4,561

4,652

4,745

4,841

4,937

5,036

5,137

5,240

Fees and charges

28,251

32,117

32,888

33,636

34,341

35,067

35,806

36,554

37,321

38,105

38,909

Internal charges and overheads recovered

0

0

0

0

0

0

0

0

0

0

0

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

5,749

2,728

3,255

3,612

3,768

3,956

4,143

4,315

4,499

4,697

4,908

Total operating funding

341,089

376,275

389,254

404,244

423,986

442,895

463,187

484,298

507,169

534,967

559,552

 

 

          

Applications of operating funding:

 

          

Payment to staff and suppliers

254,282

273,027

278,369

283,621

288,435

293,388

298,196

303,146

308,148

313,207

318,411

Finance costs

45,164

51,437

60,408

69,556

78,551

83,975

89,569

97,365

108,485

121,196

131,937

Internal charges and overheads applied

44,736

54,235

47,050

40,762

38,390

39,542

42,235

41,150

40,916

42,241

41,144

Other operating funding applications

0

0

0

0

0

0

0

0

0

0

0

Total applications of operating funding

344,182

378,699

385,827

393,939

405,376

416,905

430,000

441,661

457,549

476,644

491,492

 

 

          

Surplus (deficit) of operating funding

(3,093)

(2,424)

3,427

10,305

18,610

25,990

33,187

42,637

49,620

58,323

68,060

 

 

          

Sources of capital funding:

 

          

Subsidies and grants for capital expenditure

75

0

0

0

0

0

0

0

0

0

0

Development and financial contributions

14,496

33,027

46,620

49,533

49,221

51,255

51,255

51,255

51,255

50,750

50,602

Increase (decrease) in debt

173,041

137,230

97,974

146,119

97,902

58,677

126,239

142,260

237,063

192,548

154,822

Gross proceeds from sale of assets

0

0

0

0

0

0

0

0

0

0

0

Lump sum contributions

0

0

0

0

0

0

0

0

0

0

0

Other dedicated capital funding

0

0

0

0

0

0

0

0

0

0

0

Total sources of capital funding

187,612

170,257

144,594

195,652

147,123

109,932

177,494

193,515

288,318

243,298

205,424

 

 

          

Application of capital funding:

 

          

Capital expenditure:

 

          

- to meet additional demand

61,124

43,400

28,320

61,902

50,244

10,885

31,902

45,828

76,811

64,250

49,564

- to improve the level of service

29,445

41,150

27,100

57,685

44,503

40,881

84,456

96,197

137,967

123,390

108,529

- to replace existing assets

95,950

85,283

92,601

86,370

70,986

84,156

94,323

94,127

123,160

113,981

115,391

Increase (decrease) in reserves

0

0

0

0

0

0

0

0

0

0

0

Increase (decrease) in investments

(2,000)

(2,000)

0

0

0

0

0

0

0

0

0

Total applications of capital funding

184,519

167,833

148,021

205,957

165,733

135,922

210,681

236,152

337,938

301,621

273,484

 

 

          

Surplus (deficit) of capital funding

3,093

2,424

(3,427)

(10,305)

(18,610)

(25,990)

(33,187)

(42,637)

(49,620)

(58,323)

(68,060)

            

Funding balance

0

0

0

0

0

0

0

0

0

0

0

> Back to contents list

2.7 Regionally delivered council services

Auckland Council directly delivers a range of regional service-based activities which aims to create a city with great neighbourhoods, centres, parks and public spaces that are loved by Aucklanders. We also support the Mayor and councillors governing Auckland for the benefit of ratepayers, citizens and communities.

Key activities

  • Regional community services
    This activity includes regional parks, programmes and services, holiday parks, baches and camping, cemeteries and crematoria and parks co-governance services.  We also invest in other organisations to deliver events, arts and cultural, sport and recreation, and community outcomes through provision of a regional grants programme.
    Our customers and communities’ information, learning and recreation needs are changing when it comes to what they expect to access from our regional library collections. A greater shift to new technologies and formats like e-books will be complemented by a focus on capturing the stories of Auckland though heritage and photographic collections. These collections are funded regionally and distributed locally.
    Regional community services also include:
    • management and service support for our local council services such as library and information services, events, recreation, community empowerment, arts and culture, community parks, centres and venues
    • community facilities and parks asset management including new builds and renewals, maintenance, community leasing, land advisory services, and project support for community-led projects that deliver assets.
  • Regulatory services
    Regulatory services perform consenting and inspection services for resource, building, and development engineering consents. We license food and alcohol premises, manage the city’s bylaws, dog control, noise control, provide property information and enforce compliance for non-compliant development. These services contribute to the successful development of Auckland.
  • Waste services
    Waste services manage the region’s kerbside domestic refuse, recycling, hazardous and inorganic waste, public litterbins, and community recycling centres, as well as loose litter. Implementing Auckland’s Waste Management and Minimisation Plan 2018 (WMMP) will be a key focus.
    There are 200 closed landfills in the Auckland region. Engineering and technical services invest in remedial works to the surface and internal infrastructure, and undertake operational management of sites to minimise effects of leachate and gas discharges.
  • Regional planning
    Regional planning services comprise Auckland strategy and research, Unitary and area planning, community and social policies, Natural environment and heritage protection, urban design, Housing and infrastructure and the Southern and Western Initiatives.
    The priorities are:
    • Delivery of the Auckland Plan including integrated strategies and ongoing research, analysis and monitoring of housing, urban development, infrastructure, transport, natural environment and sustainability & climate change
    • Developing plans for town centres and local areas, identifying and protecting heritage places and providing heritage advice
    • Policy advice on regional and local investment in community services, social issues, public safety and order. Advice and protection program for Heritage Assets
    • Provision of urban design and landscape inputs into the regulatory process, management of design review panels program, refresh and implementation of the City Centre Masterplan, activation and placemaking within the City Centre
    • Delivery of the Southern Initiative transformation programme in South Auckland (focussed on shared prosperity, resilience and thriving children and whanau) and extension of programme to West Auckland
    • Enabling the delivery of major development, including housing (and Māori housing), through programme management, advice on infrastructure and development strategy. In addition, carrying out negotiations to secure the necessary finance and funding agreements to deliver developments.
  • Environmental services
    Environmental services are responsible for managing the region’s biodiversity and biosecurity on public and private land, enabling Aucklanders to adopt low carbon behaviours, and fostering environmental stewardship.
    Managing our natural environment supports Auckland’s native flora and fauna to flourish. This is achieved through implementing Auckland’s Indigenous Biodiversity Strategy, the Regional Pest Management Plan, marine biosecurity initiatives and other projects funded through the natural environment targeted rate. Aucklanders are enabled to adopt low carbon behaviours to ensure Auckland meets its carbon emissions target through the implementation of the Low Carbon Action Plan.
    Environmental services is also responsible for fostering youth kaitiakitanga and direct sustainability and resilience outcomes through youth-led action across environmental outcome areas including waste, water, biodiversity and low carbon.
  • 3rd party amenity & grant
    Auckland Council contributes funding to the Auckland War Memorial Museum and the Museum of Transport and Technology (MOTAT). We also contribute funding to 10 other independent regional organisations through the Auckland Regional Amenities Funding Act. This supports those organisations in their delivery of services and facilities to Auckland residents.
  • Regional governance
    Regional governance manages local elections, provides support to the mayoral office, councillors and CCOs, and supports the decision-making process of the governing body and its committees. This activity also includes enabling effective Māori participation in the council’s regional governance processes, administering remuneration and expenses of elected members, running hearings, and supporting advisory panels and boards.
  • Auckland emergency management
    Auckland emergency management work with Auckland Council’s partner agencies and stakeholders to ensure effective response to, and recovery from, hazard events in Auckland.
    The priorities are:
    • reducing risks from hazards to Auckland
    • increasing community awareness, understanding preparedness and participation in emergency management
    • enhancing Auckland’s capability to manage disasters; and
    • enhancing Auckland’s capability to recover from disasters.
  • Investment
    Auckland Council holds 100 per cent of the shares in Ports of Auckland Limited (POAL) as well as 22.3 per cent of the shares in Auckland International Airport Limited (AIAL), a New Zealand Stock Exchange (NZX) listed entity.
    The council is focused on management of investments in POAL and AIAL to provide an efficient structure for the ownership of these assets.
  • Organisational support
    The services provided in this activity support the operational functioning of the council, and the day to day services it provides to decision makers (the governing body and local boards) and the public as those receiving the council services.
    These include finance, procurement, corporate property, information communications and technology, people and performance, legal and risk, technical services and communications and engagement.

How these activities drive Auckland Plan outcomes

Belonging & participation

All Aucklanders will be part of and contribute to society, access opportunities, and have the chance to develop to their full potential.

  • provision of social policy
  • supporting community organisations and providing community facilities and services
  • funding events and other initiatives that celebrate and showcase Auckland’s diversity
  • encouraging participation in the decision-making process by a range of diverse groups and communities through advisory panels.

Māori identity & wellbeing

A thriving Māori identity is Auckland’s point of difference in the world – it advances prosperity for Māori and benefits all Aucklanders.

 

  • provision of support to co-governance and co-management arrangements
  • active partnering with others e.g. The Southern Initiative
  • advancing Māori identity and culture
  • support delivery of Papakāinga and Māori housing.

Homes & places

Aucklanders live in secure, healthy, and affordable homes, and have access to a range of inclusive public places.

  • delivering projects and regulatory services that unlock development opportunities
  • partnering with developers through the qualified partner service and the premium service (consents)
  • investigating and advocating for measures that support security of tenure for rental housing
  • championing good design
  • securing funding and delivery of supporting infrastructure to enable delivery of housing.

Transport & access

Aucklanders will be able to get where they want to go more easily, safely and sustainably

  • integrating land-use and transport factors when making decisions on timing and location of development
  • planning for cycling and walking in new development.

Environment & cultural heritage

Aucklanders preserve, protect and care for the natural environment as our shared cultural heritage for its intrinsic value and for the benefit of present and future generations.

  • supporting and delivering projects that embed water-sensitive urban design and future-proofed infrastructure
  • encouraging environmental stewardship by the community
  • delivering regulatory services that consider Auckland’s environment and cultural heritage.

Opportunity & prosperity

Auckland is prosperous with many opportunities and delivers a better standard of living for everyone.

  • delivering projects and regulatory services that support innovation and productivity growth
  • providing services to encourage lifelong learning and training with a focus on those most in need.

Regional Community Services

Key projects
  • Increasing focus on digital services by providing Aucklanders with information and services that makes their lives easy and enjoyable. Auckland Libraries will increasingly focus on innovation and technology with their regionally funded collections. Improving access to information that Aucklanders need to participate and contribute to shaping council decisions and the way we deliver our services will be a priority.
  • Investing in sector and community-led arts and cultural activities, events, community development and safety is reconfirmed with an increase of $4.3 million grants funding for the Regional Grants Programme.
  • Expanding cemeteries and crematoria to meet the needs of a growing Auckland. We will develop the southern block at North Shore Memorial Park and new areas at Waikumete and at Manukau Memorial Park cemeteries. Over the next 10 years we will need to decide how we continue to meet demand and will investigate new cemetery provision in the north of the city.
  • Investing in our existing regional parks like Tawharanui and Te Arai and in new initiatives like the pacific pathway and extending the carpark to accommodate increased visitors at Botanic Gardens. In addition the Sculpture in the Gardens event is secured through additional ongoing investment of $1 million over 10 years.
  • Supporting Tūpuna Maunga o Tāmaki Authority to protect and restore the maunga, progress the development of visitor infrastructure and support the UNESCO world heritage bid.
  • Supporting the Ngāti Whātua Ōrākei Reserves Board through the construction of an iconic Pou at the harbour entrance and restoration and construction of infrastructure at Pourewa Creek Recreation Reserve.
  • Supporting Te Poari o Kaipātiki ki Kaipara to improve the health and safety of its facilities at the reserve and the commencement of infrastructure investment to develop the front of the reserve to provide an enhanced public space.
  • Replacing and renewing coastal assets, including the Orewa seawall project. Coastal compartment management plans will be developed which will inform the coastal asset management plan. This will prioritise the need for protection and development of new coastal assets using the $90 million of additional capex approved in the LTP for this purpose.
  • Implementing Auckland Council Sports Facilities Investment Plan, which will provide the framework for the newly established Sport and Recreation Facilities Investment Fund. Decisions on allocation will be made by the relevant committee.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We provide library services and programmes that support Aucklanders with reading and literacy, and opportunities to participate in community and civic life

The number of library items checked out (including e-items)

15.3 million

15.0 million

14.6 million

14.2 million

14.0 million

13.3 million

The number of website sessions on Auckland Libraries website (corrected for the percentage of bounces, or non-productive page landings)

N/A

New measure

7.0 million

7.5 million

8.0 million

9.0 million

The number of active library members (members who have used their membership account at least once in the past 12 months)

N/A

New measure

0.39 million

0.39 million

0.38 million

0.37 million

We deliver region-wide graffiti eradication services to improve the beautification of the city and enhance perceptions of safety and wellbeing

The percentage of all assets that are graffiti free across the city

94%

94%

95%

95%

95%

95%

We fund, enable and deliver arts and culture experiences that enhance identity and connect people

The percentage of eligible capital budget dedicated to public art

N/A

New measure

1%

1%

1%

1%

We showcase Auckland's Māori identity and vibrant Māori culture

The percentage of regional programmes, grants and activities that respond to Maori aspirations

N/A

New measure

13.9%

15.5%

17.2%

17.2%

We provide rental services to older tenants and maintain the older persons property portfolio

The percentage of tenants satisfied with provision and management of 'housing for older people'

62%

75%

76%

77%

78%

Increasing to 80%

We provide and maintain cemeteries, memorial areas and facilities for families, friends and visitors

The percentage of visitors satisfied with the presentation of cemeteries

75%

82%

81%

81%

81%

81%

We manage Auckland’s natural environment and help Aucklanders adopt a low carbon lifestyle

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

60,955

60,000

60,000

60,000

60,000

60,000

The number of volunteer hours worked in regional parks each year

84,860

80,000

80,000

80,000

80,000

80,000

We provide safe and accessible parks, reserves and beaches

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

72%

76%

76%

76%

76%

76%

The percentage of park visitors satisfied with the overall quality of their visit

96%

96%

96%

96%

96%

96%

We provide recreation programmes, opportunities and facilities to get Aucklanders more active, more often

The percentage of residents participating in sport and recreation at least once per week

68%

72%

72%

72%

72%

72%

The percentage of available time that sportsfields are booked (utilisation rate)

N/A

New measure

87%

90%

90%

90%

Regulatory services

Key projects
  • Deliver on new technology enabling digital consent processing
  • Implement customer-initiated improvement programmes
  • Provide technical guidance to support developers and their suppliers to provide infrastructure that meets council’s requirements and environmental targets set through the Unitary Plan.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We make it easy for customers to apply for consents and we process these in a timely and professional way

 

 

 

The percentage of customers satisfied with the overall quality of building consent service delivery

55%

65%

60%

63%

65%

65%

The percentage of building consent applications processed within 20 statutory working days(1)

80%

100%

100%

100%

100%

100%

The percentage of building consent applications processed within 10 working days(1)

N/A

New measure

20%

20%

20%

20%

The percentage of customers satisfied with the overall quality of resource consents service delivery

58%

55%

55%

60%

65%

65%

The percentage of non-notified resource consent applications processed within 20 statutory working days(1)

77%

100%

100%

100%

100%

100%

The percentage of non-notified resource consent applications processed within 10 working days(1)

N/A

New measure

20%

25%

30%

30%

The percentage of notified resource consent applications processed within statutory time frame(1)(2)

45%

100%

100%

100%

100%

100%

We help reduce harm from noise and other nuisances

The percentage of complainants satisfied with the noise control service

59%

52%

51%

60%

60%

60%

The percentage of verified noise complaints issued with a formal notice

N/A

New measure

90%

99%

99%

99%

We regulate the safe operation of premises selling food and/or alcohol

 

The percentage of licensees satisfied with the food and hygiene licensing service

82%

70%

70%

80%

80%

80%

The percentage of food premises that improve from a D or E grade to an A, B or C grade when revisited

N/A

New measure

95%

95%

95%

95%

The percentage of licensees satisfied with the alcohol licensing service

83%

68%

67%

85%

85%

85%

The percentage of off-licence premises that pass a Controlled Purchase Operation targeting underage drinkers

N/A

New measure

90%

90%

90%

90%

We register dogs and respond effectively when animals cause harm or nuisances

The percentage of cases of non-compliance for menacing dogs that reach compliance within 3 months

N/A

New measure

90%

90%

90%

90%

Note to table:

1.     The time it takes to process consents is measured according to MBIE and IANZ guidelines as to the correct application of the Building Act 2004 and the Resource Management Act 1991 about when timing starts and stops.

2.     The statutory timeframe differs depending on the nature of the notified resource consent. The applicable statutory timeframes relating to this measure are included in Part 6 of the Resource Management Act 1991.

Waste services

Key projects
  • Refuse: Moving from the current range of legacy services to a consistent regional refuse service, including introducing pay-as-you-throw refuse bins to every household
  • Food waste: Implement rates funded, weekly kerbside collected food scraps service to all households in urban areas by 2020/2021, starting with the legacy Papakura area in 2018
  • Resource Recovery Network: By 2025 the council will have 12 Community Recycling Centres that receive, collect and process unwanted inorganic material from the public. A resource recovery infrastructure plan will also be developed to look at Auckland’s long-term infrastructure requirements for getting to Zero Waste
  • Advocate for an increased waste levy and product stewardship, including a mandatory nationwide container deposit scheme (CDS)
  • Address three priority commercial waste streams – Construction and Demolition (C&D) waste, organic waste and plastic waste
  • Improve waste diversion from our own activities, broadening the focus to include the council and CCO’s operational activities
  • Closure of Greenmount as a managed fill site
  • Improvements of various closed landfills to reduce water ingress and instability issues. Sites include Waikowhai, Ngataringa, Archibald Park, Motions/Meola, Barrys Point, Taipari Strand
  • Remediation work at Seaside Park, Corbans Reserve, Whangateau, and Ngati Otara
  • Leachate system upgrades
  • Preparation of Rosedale as a public use site.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We manage land use and development on the council's closed landfills to safeguard the region's environment, productivity and economic value of soil

 

The percentage of the council controlled closed landfill discharge consents achieving category one or two compliance ratings

100%

98%

98%

98%

98%

98%

The percentage of customers satisfied with overall reliability of waste collection services

74%

76%

76%

76%

76%

76%

We help Aucklanders minimise waste to landfills

The volume of domestic kerbside refuse per capita per annum

144kg

110kg

150kg

144kg

144kg

Decreasing to 110kg

The total number of Resource Recovery Facilities(1)

4

4

6

7

8

Increasing to 12

The total waste to landfill per year (kg per capita)

N/A

New measure

877kg

877kg

877kg

Decreasing to 582kg

Note to table:

1.     A Resource Recovery Facility is a facility in the community where the public can drop off reusable and recyclable items. Resource Recovery Facilities can vary greatly - from simple drop off stations in small rural areas through to large eco-industrial parks.

Regional planning

Key projects
  • Implementing the Auckland Plan 2050
  • Developing a future management framework for Auckland’s waters
  • Developing the Auckland Climate Change Action Plan
  • Developing planning frameworks for the City to Mangere, Light Rail Transport project 
  • Supporting growth and housing delivery
  • Ensuring the Auckland Unitary Plan remains fit for purpose and adapts to an ever-changing Auckland by evaluating the environmental, social, economic and cultural outcomes it is achieving and making changes where needed
  • Planning for new housing and employment land in ‘future urban zoned’ areas on the edge of the existing urban area; planning to support investment in light rail; and protecting Māori cultural heritage
  • Policy/bylaw focus is on Smoke-free policy implementation, New Freedom Camping & Public Places Bylaw, Local Alcohol Policy, indicative business plans for community and sports and recreation facilities, service design pilots for Tamariki wellbeing and increasing belonging and participation, Regional Investment Plans for Golf, Sports and Recreation, Play and Outdoor Recreation, Homelessness Plan and Affordable Housing think-piece
  • Refresh of the Auckland Design Manual (ADM) to align to Auckland Plan 2050. The ADM provides urban design guidance to developers and the public, to support quality design of the built environment
  • Refresh of the City Centre Masterplan
  • Supporting the redevelopment of the city centre, including the 36th America’s Cup in 2021
  • Enable delivery of major regional growth projects such as Westgate, Hobsonville Point and Three Kings, including through working with the crown and developers to secure the financing and funding to provide development infrastructure
  • Extension of The Southern Initiative to the West Auckland areas of Whau, Henderson-Massey and Waitakere (The Western Initiative), with a focus on social procurement policy and local economic development.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We meet all planning legislative requirements

 

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

100%

100%

100%

100%

100%

100%

The percentage of adopted core strategies, policies and plans incorporating Māori outcomes or developed with Māori participation

100%

85%

100%

100%

100%

100%

We provide a coordinated council response to major development and infrastructure programmes, including major housing developments

The percentage of Development Programme Office programmes that identify and engage with key stakeholders, including Mana Whenua and Māori organisations

 N/A

 New measure

95%

95%

95%

95%

The percentage of City Centre Targeted Rate programme delivered on time and within budget

N/A

New measure

80%

80%

80%

80%

Environmental Services

Key projects

Implementation of key projects funded through the natural environment targeted rate, including:

  • Coordination and support for Pest Free Auckland – A community-led conservation programme designed to engage the community in eradicating pest animals, plants and pathogens; restore and connect native ecosystems
  • Coordinate and implement Auckland Council’s accelerated programme for kauri dieback management programme, to protect taonga kauri
  • Support adoption of proposed Regional Pest Management Plan and implementation of the plan once operational. This is a statutory tool which identifies and controls priority pests (including kauri dieback disease, pest animal and plant management)
  • Auckland Biodiversity Strategy implementation – Protecting high priority indigenous species and ecosystems through site and species focused strategies in partnership with wider stakeholders
  • Marine biosecurity – deliver a marine biosecurity education and behaviour change programme, develop and implement an inter-regional marine pest pathway management plan and carry out increased surveillance and monitoring in relation to marine pests.

Delivery of other key sustainability initiatives:

  • Live Lightly – A collaborative behaviour change programme designed to encourage the adoption of everyday lifestyle changes that enable Aucklanders to save money, improve health and reduce their carbon emissions
  • Retrofit Your Home –through the provision of financial assistance (loans) to adopt interventions including insulation, clean heating, moisture extraction, water tank installation, energy and water efficiency devices
  • Sustainable Schools – Environmental Education for Sustainability programmes that engage school communities in sustainability initiatives, develops youth leadership through mentoring, networking and directly delivers community environmental action.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We support Aucklanders to adopt a low carbon lifestyle

The percentage of schools engaging in sustainability education programmes

N/A

New measure

58%

58%

58%

58%

The number of Aucklanders engaged in living low carbon lifestyles

 N/A

 New measure

20,000

30,000

30,000

30,000

We manage Auckland's natural environment

The percentage of priority native habitats under active management

N/A

 New measure

25%

50%

64%

72%

The percentage of threatened plants and animals under active management

34%

34%

38%

42%

49%

68%

The proportion of kauri areas on Auckland Council land that have active management in place for kauri dieback disease

68%

70%

75%

85%

85%

85%

The number of hectares under community pest control

124,000

90,000

130,000

160,000

180,000

200,000

As discussed in the Financial Strategy found as 1.4, Volume 2 the introduction of the Natural Environment Targeted Rate will allow us to significantly increase the service levels for this activity. 

3rd party amenity and grant

Key projects
  • Completion of the Auckland Cultural Heritage institutions review: Auckland Council is undertaking a review of Auckland’s major cultural heritage institutions. The focus of this review is to maximise the cultural and community benefit from Auckland’s investment in cultural heritage institutions (Auckland War Memorial Museum, MOTAT Auckland Art Gallery, Stardome Observatory and Planetarium and the New Zealand Maritime Museum). This review will look at both strategic investment priorities, and also the funding and governance structures of the cultural heritage sector and its institutions.
  • Focused on completing the Auckland War Memorial Museum’s capital refurbishment programme.
Performance information

There is no performance measure for this activity.

Regional governance

Key projects
  • Conduct an online voting trial in the 2019 local body elections subject to the enabling legislation being passed in time to procure and implement a suitable online voting solution and the Governing Body giving final approval for any trial to go ahead.
  • Make better use of technology to support the work of elected members and make it easier for the public to engage with the council.
  • Implement community engagement and education initiatives to increase voter participation in local body elections.
  • Pro-actively coordinate the council’s response to Treaty settlements.
  • Provide opportunities for improved governance and working relationships with mana whenua and Māori communities.
  • Enable thriving Māori wellbeing and identity through supporting Māori culture and prosperity in Tāmaki Makaurau.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We provide opportunities for Aucklanders to contribute to community and civic life

 

The percentage of residents who feel they can participate in the council decision making

34%

50%

50%

50%

50%

50%

The number of complaints regarding council democratic processes upheld by the Ombudsmen or Privacy Commissioner

0

0

0

0

0

0

The percentage of eligible voters who voted in the local elections (3 yearly)

38.5%

N/A

N/A

40%

N/A

40%

The percentage of post-hearing survey respondents who feel they have had a fair hearing (annual)

N/A

New measure

75%

75%

75%

75%

The percentage of LGOIMA and Privacy requests completed within statutory timeframes

N/A

New measure

95%

95%

95%

95%

We provide opportunities for Māori to contribute to community and civic life

The number of iwi that have signed a formal relationship agreement with the Governing Body (Out of 19)

N/A

New measure

11

19

19

19

The percentage of Māori residents who feel they can participate in the council decision making

32%

50%

50%

50%

50%

50%

We contribute to resilient, sustainable, and thriving marae facilities and infrastructure that support marae as hubs for their communities

The number of mana whenua and mataawaka marae that receive support to renew or upgrade marae infrastructure (Out of 33 existing Marae)

N/A

New measure

4

7

11

Increasing to 33

We support the Māori led housing and papakainga development through the planning processes

The number of Māori organisations and trusts projects that have been supported to achieve Māori housing and papakāinga development

N/A

New measure

14

16

18

Increasing to 25

Auckland Emergency Management

Key projects
  • Management of natural hazards and risks through strong governance, key partnerships with stakeholders and working with Auckland’s communities to build resilience.
  • Increased capability and capacity to effectively respond to, and recover from an emergency.
  • Enhanced emergency preparedness through effective warning and hazard monitoring systems.
  • Develop resilience within Auckland cities and communities.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 – 28

We work with partner agencies and stakeholders to coordinate the response in a hazard event and build resilience in the Auckland community

The percentage of Aucklanders who are prepared for an emergency

N/A

New measure

65%

65%

65%

Progressively increasing to 68%

The percentage of Aucklanders that have a good understanding of the types of emergencies that could occur in Auckland

N/A

New measure

75%

75%

75%

75%

Investment

Key projects

Auckland Council focuses on maximising its contribution to the Auckland economy through the investments it owns and provides substantial financial returns, which are financially sustainable in the long term, to the council.

Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 – 28

We manage the Council's investment in Ports of Auckland and Auckland international Airport

The annual growth in Auckland Council’s dividend compared to the Consumer Price Index growth

N/A

New measure

CPI plus 1.5%

CPI plus 1.5%

CPI plus 1.5%

CPI plus 1.5%

Organisational support

Key projects
  • A portfolio of projects that deliver against organisational strategy outcomes including cost savings and efficiencies such as group shared services and group strategic procurement
  • Section 17A value for money programmes across the council group
  • Diversity programme aimed at community-centred thinking and decision making, reaching Auckland’s 220 ethnicities.
Performance information

There is no performance measure for this activity.

Significant negative effects

There are no significant negative effects associated with the activities within this group of activities, but there are some negative effects arising from these activities.

Negative effect

Our response

Our natural and cultural heritage protection activities may result in restrictions on what landowners and developers can do on particular sites, such as restricting bush clearance and destruction of certain sites.

Consultation is typically undertaken before any restrictions are put in place to ensure those affected can put forward their views before any decisions are made.

Depositing of waste in landfills may affect the environment. This creates landfill gas and leachate liquid, and requires landfills to be completed and closed safely, with ongoing costs for future management.

The council manages these risks and issues through the closed landfills team with capital and operating budgets for closed landfills in line with appropriate resource consents.

There is some visual pollution of the environment during refuse collection times. Refuse may also cause odour, public health issues, the obstruction of footpaths and could be blown into private properties, waterways or be illegally dumped.

Emissions of odours, spread of disease and water/land contamination should waste contracts not be performed as specified to collect and correctly dispose of waste.

The council will continue to reduce the quantity of waste going to landfill through full implementation of the Waste Management and Minimisation Plan and proven waste minimisation strategies. We continue to educate residents in waste minimisation behaviours and collection best practice, for example, reducing the time between putting out the refuse and its collection. The council will monitor services and enforce contractual terms to ensure contractor requirements are complied with.

To manage the risk of pest plants and pest animals on our indigenous biodiversity and primary productivity our biosecurity activities may result in negative impacts due to the use of toxins.

To manage the potential negative effects arising from toxin use council complies with all appropriate standards and regulations. This ensures that any negative effects are avoided, minimised or mitigated.

There could be some negative effects arising from the activities undertaken by the entities in which the council is investing.

We will closely monitor our investments and use our rights as a shareholder to mitigate any negative effects.

 

Financial information

Activity

Operating cost and revenue $000

Financial year ending 30 June

2017/18

Year 1

2018/19

Year 2

2019/20

Year 3

2020/21

Year 4-10 2021/22-2027/28

Total

Regional community services

Non-rates revenue

40,743

31,400

32,715

33,536

258,562

356,213

 

Direct operating expenditure*

189,200

203,737

221,322

224,127

1,946,533

2,595,719

 

Capital expenditure

125,950

106,411

119,265

108,030

1,222,904

1,556,610

Regulatory services

Non-rates revenue

185,345

190,514

194,326

198,214

1,503,100

2,086,154

 

Direct operating expenditure*

208,595

212,913

216,460

219,329

1,657,080

2,305,782

 

Capital expenditure

195

206

213

220

1,743

2,382

Waste services

Non-rates revenue

32,834

35,543

34,011

53,647

397,466

520,667

 

Direct operating expenditure*

119,439

125,969

131,856

144,279

1,108,644

1,510,748

 

Capital expenditure

4,198

40,961

5,206

5,789

28,085

80,041

Regional planning

Non-rates revenue

7,093

6,701

6,807

7,013

52,979

73,500

 

Direct operating expenditure*

78,715

76,265

76,960

78,779

612,052

844,056

 

Capital expenditure

16,630

253,096

143,326

40,006

258,625

695,053

Environmental services

Non-rates revenue

686

697

711

816

6,183

8,407

 

Direct operating expenditure*

19,925

39,469

45,484

48,406

351,255

484,614

 

Capital expenditure

8,329

12,742

21,823

22,365

6,562

63,492

3rd party amenity and grant

Non-rates revenue

0

0

0

0

0

0

 

Direct operating expenditure*

85,157

78,350

79,677

79,677

557,736

795,440

 

Capital expenditure

0

0

0

0

0

0

Regional governance

Non-rates revenue

2,350

2,446

4,096

2,576

22,970

32,088

 

Direct operating expenditure*

92,380

54,603

56,503

53,728

501,125

665,959

 

Capital expenditure

0

100

1,250

1,250

0

2,600

Auckland emergency management

Non-rates revenue

0

0

0

0

0

0

 

Direct operating expenditure*

4,511

5,769

5,854

5,913

44,814

62,350

 

Capital expenditure

742

570

1,000

465

3,151

5,186

Investment

Non-rates revenue

270,490

253,602

284,500

321,332

2,673,254

3,532,688

 

Direct operating expenditure*

121,102

145,792

156,772

163,940

1,335,574

1,802,078

 

Capital expenditure

184,271

180,342

54,828

65,134

435,671

735,975

Organisational support

Non-rates revenue

212,220

9,195

7,811

7,924

87,241

112,171

 

Direct operating expenditure*

191,437

30,474

(614)

13,826

42,623

86,309

 

Capital expenditure

(24,677)

171,615

48,771

35,634

401,455

657,475

*Direct operating expenditure does not include interest and depreciation.

Prospective Funding Impact Statement

$000

Financial year ending 30 June

Annual Plan 2017/18

LTP 2018/19

LTP 2019/20

LTP 2020/21

LTP 2021/22

LTP 2022/23

LTP 2023/24

LTP 2024/25

LTP 2025/26

LTP 2026/27

LTP 2027/28

Sources of operating funding:

 

          

General rates, UAGCs, rates penalties

537,754

446,342

481,289

543,290

573,738

514,219

550,544

607,643

662,281

693,275

764,779

Targeted rates

103,305

135,202

145,199

139,813

144,644

148,151

151,516

153,399

156,148

158,784

161,933

Subsidies and grants for operating purposes

12,622

13,182

11,013

11,188

11,261

11,336

11,507

11,580

11,752

11,823

11,994

Fees and charges

238,713

490,315

524,442

585,908

608,935

629,412

649,007

667,429

686,729

706,268

728,293

Internal charges and overheads recovered

185,137

215,735

215,958

201,386

195,606

204,179

218,429

218,386

222,722

232,564

232,693

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

44,799

82,678

85,057

83,590

88,684

92,367

93,360

95,696

99,552

100,508

102,845

Total operating funding

1,122,330

1,383,454

1,462,958

1,565,175

1,622,868

1,599,664

1,674,363

1,754,133

1,839,184

1,903,222

2,002,537

 

 

          

Applications of operating funding:

 

          

Payment to staff and suppliers

840,028

1,024,359

1,034,409

1,068,158

1,090,054

1,131,363

1,168,796

1,202,610

1,239,904

1,278,012

1,316,552

Finance costs

58,740

72,068

86,425

92,888

87,196

75,266

69,313

63,736

60,191

50,040

41,951

Internal charges and overheads applied

129,551

147,027

154,754

148,163

145,044

151,656

161,339

162,234

166,431

173,694

174,844

Other operating funding applications

0

0

0

0

0

0

0

0

0

0

0

Total applications of operating funding

1,028,319

1,243,454

1,275,588

1,309,209

1,322,294

1,358,285

1,399,448

1,428,580

1,466,526

1,501,746

1,533,347

 

 

          

Surplus (deficit) of operating funding

94,011

140,000

187,370

255,966

300,574

241,379

274,915

325,553

372,658

401,476

469,190

 

 

          

Sources of capital funding:

 

          

Subsidies and grants for capital expenditure

0

52,600

13,200

0

0

0

0

0

0

0

0

Development and financial contributions

66,126

57,247

80,810

85,860

85,316

88,843

88,843

88,843

88,843

87,967

87,712

Increase (decrease) in debt

(237,705)

348,478

201,332

15,943

(95,241)

(50,487)

(106,458)

(19,650)

(120,573)

(121,659)

(213,906)

Gross proceeds from sale of assets

0

24,000

24,000

24,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

Lump sum contributions

0

0

0

0

0

0

0

0

0

0

0

Other dedicated capital funding

0

0

0

0

0

0

0

0

0

0

0

Total sources of capital funding

(171,579)

482,325

319,342

125,803

10,075

58,356

2,385

89,193

(11,730)

(13,692)

(106,194)

 

 

          

Application of capital funding:

 

          

Capital expenditure:

 

          

- to meet additional demand

77,316

420,161

212,190

138,615

142,796

171,983

179,131

219,868

169,352

158,070

121,955

- to improve the level of service

50,293

238,418

102,387

62,121

37,460

32,789

33,146

46,522

10,883

39,220

38,897

- to replace existing assets

3,758

107,462

81,106

78,155

86,987

89,973

119,272

156,116

159,703

156,516

187,560

Increase (decrease) in reserves

62,453

32,319

81,369

78,655

38,820

16,620

12,631

12,393

10,325

6,385

3,001

Increase (decrease) in investments

(271,388)

(176,035)

29,660

24,223

4,586

(11,630)

(66,880)

(20,153)

10,665

27,593

11,583

Total applications of capital funding

(77,568)

622,325

506,712

381,769

310,649

299,735

277,300

414,746

360,928

387,784

362,996

 

 

          

Surplus (deficit) of capital funding

(94,011)

(140,000)

(187,370)

(255,966)

(300,574)

(241,379)

(274,915)

(325,553)

(372,658)

(401,476)

(469,190)

 

 

          

Funding balance

0

0

0

0

0

0

0

0

0

0

0

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2.8 Council controlled services

Council controlled services encompass a range of non-infrastructure-based activities. Each activity is governed by an independent board of directors or similar governance group. These activities include property development services, provision of major events and major facilities, and commercial investments.

Infrastructure based activities are covered in Section 2.1 Roads and footpaths, Section 2.2 Public transport and travel demand management, Section 2.3 Water supply, Section 2.4 Wastewater treatment and disposal, and Section 2.5 Stormwater management.

Key Activities

  • Regional facilities
    Auckland Council owns and operates 13 landmark venues and more than 16,000 artworks. These are managed by Regional Facilities Auckland (RFA). RFA creates exciting, creative and educative experiences for Aucklanders and visitors to our city as it develops and works with the arts, culture and heritage, wildlife conservation, leisure, sport, entertainment and corporate sectors. It offers a wide and unique range of services including art and maritime exhibitions, care of wildlife species, event programming and delivery across its venues.
    These core services are further supported by conservation, research, industry and talent development, community outreach, public engagement and educational activities across the business. RFA’s service delivery model is enabled by its six business brands: Auckland Live, Auckland Art Gallery, Auckland Zoo, Auckland Stadiums, New Zealand Maritime Museum and Auckland Conventions. Together they work towards building Auckland’s reputation as a world-class city.
  • Economic growth and visitor economy
    As the region’s economic development agency, Auckland Tourism, Events and Economic Development’s (ATEED’s) focus is in two areas. Firstly, its economic development activities including business support, business attraction and investment, local economic development, trade and industry development, skills employment and talent and innovation and entrepreneurship. The second area of focus is on the sustainable growth of the visitor economy, including destination marketing and management, major events, business events (meetings and conventions) and international student attraction and retention.
  • Development Auckland
    Redevelopment and housing intensification activities in priority urban locations (mostly town centres), to create vibrant, liveable places that leverage transport investment and accommodate growth, are delivered by Panuku Development Auckland (Panuku). Panuku creates strategic and commercial value from council’s underutilised property portfolio. Across the programme including the waterfront, Panuku facilitates investment through collaboration with the private sector, third-party sector, Iwi and the Crown as partners in urban redevelopment. It manages a property portfolio, much of which is held for future infrastructure or service purposes, undertakes property acquisitions and disposals, and manages a variety of business interests on the council’s behalf.

How these activities drive Auckland Plan outcomes

Belonging & participation

All Aucklanders will be part of and contribute to society, access opportunities, and have the chance to develop to their full potential.

  • funding events and other initiatives that celebrate and showcase Auckland’s diversity

Māori identity & wellbeing

A thriving Māori identity is Auckland’s point of difference in the world – it advances prosperity for Māori and benefits all Aucklanders.

  • adoption of Te Aranga Māori Design Principles and Te Reo Māori policy – both support the use of Māori design and te reo Māori in council infrastructure, communications and publications

Homes & places

Aucklanders live in secure, healthy, and affordable homes, and have access to a range of inclusive public places.

  • delivering projects and initiatives that unlock development opportunities and encourage development at scale

Transport & access

Aucklanders will be able to get where they want to go more easily, safely and sustainably.

  • urban design in regeneration projects which facilitates all modes of transport

Environment & cultural heritage

Aucklanders preserve, protect and care for the natural environment as our shared cultural heritage, for its intrinsic value, and for the benefit of present and future generations.

  • provision of Auckland Art Gallery and its range of exhibitions and programmes
  • inclusion of art and cultural input into urban development and events

Opportunity & prosperity

Auckland is prosperous with many opportunities and delivers a better standard of living for everyone.

  • delivering projects and initiatives that highlight Auckland’s profile which help to attract investment in areas that support business, innovation and productivity

Regional facilities

Key projects

Over the 10 years of this LTP, RFA will:

  • Continue the delivery of Auckland Zoo’s essential renewals programme aimed at addressing ageing infrastructure at the zoo, changing requirements for animal care and the need to modernise facilities for customer convenience.
  • Complete the refurbishment of the Aotea Centre to address weather tightness issues and provide an aesthetic facelift while meeting current building codes.
  • Improve safety of visitors, staff, animals and assets through investment in security infrastructure and health and safety across all venues. 
  • Continue the improvement to Auckland Stadiums network utilisation and financial sustainability through rationalisation, key strategic investments and carrying out essential renewals on the ageing infrastructure. 
  • Strategic operational and capital improvements to meet customer expectations across all brands and venues.
  • Carry out a programme of essential renewals work across all venues so that facilities remain fit for purpose and meet expected levels of service and customer expectations.
  • Work with Auckland Council to establish a future-proofed storage facility for Auckland Art Gallery’s growing art collections.
Performance information

We will measure performance against the following levels of service:

Level of service statement Performance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28 

Regional Facilities Auckland deliver arts, wildlife, collections, sports and events that provide experiences that are engaging and embraced by Aucklanders

 

 

 

The number of people who experience Regional Facilities Auckland's arts, environment and sports venues and events

3.2 million

3.3 million

3.5 million

3.7 million

3.9 million

Increasing to 4.0 million

The net promoter score for Regional Facilities Auckland's audiences and participants (1)

16

17

18

19

20

20

The percentage of operating expenses funded through non-rates revenues

68%

71%

65%

65%

65%

65%

The number of programmes contributing to the visibility and presence of Māori in Auckland, Tamaki Makaurau

10

12

14

16

18

20

Note to the previous table:

1.     Net promoter score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a product or service to others.

Note: The performance measures for RFA have now been changed to represent aggregated results across all facilities. The actuals and the targets for 2017/2018 have been restated on this basis.

Economic growth and visitor economy

Key projects

Over the 10 years of the LTP, ATEED’s key initiatives are:

  • Sustainably growing the value of Auckland’s visitor economy by partnering to implement the Destination Auckland strategy and through major events, with a focus on destination marketing and management, major events, business events (meetings and conventions) and international student attraction and retention.
  • Working with central government, corporates, education providers, and the Auckland Council group to support local economic and employment outcomes across Auckland, including a focus on less prosperous areas of Auckland.
  • Supporting Auckland businesses to grow by connecting them to support, such as the Regional Business Partner Programme, that builds their capability, enhances export performance and helps them prepare for technological change and disruption.
  • Supporting jobs and skills matching initiatives such as Jobfest to assist Aucklanders who are not currently in the workforce or who are underemployed to access employment and progression opportunities in growing sectors and associated development projects.
  • Working with partners to develop and deliver initiatives that promote Māori Economic Development, with a focus on building an eco-system of support for Māori businesses, developing the Māori creative sector, and developing youth entrepreneurship and employment pathways.
  • Continuing the development and implementation of the Wynyard Quarter Innovation Precinct, focusing on the management and strategic leasing of the GridAKL buildings (Lysaght, Mason Brothers, and 12 Madden Street buildings), and the development of services and a network of affiliated partner organisations, with the objective of growing businesses, creating jobs and building Auckland’s culture of innovation and entrepreneurship.
  • Promote Auckland as a global destination for business and investment with a focus on target places and sectors of interest.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We support the sustainable growth of the Auckland visitor economy through destination management and marketing, major events, business events and international education attraction and support programmes

The contribution to regional GDP from major events and business events attracted or supported(1)

N/A

New measure

$49m

$52.5m

$66.5m

Increasing to $70m

The number of visitor nights generated as a result of an ATEED intervention(2)

N/A

New measure

340,000

370,000

435,000

Increasing to 442,500

We deliver information, advice, programmes and initiatives to support the creation of high value jobs for all Aucklanders

The number of businesses that have been through an ATEED programme or benefitted from an ATEED intervention(2)

4,178

3,000

3,000

3,000

3,000

3,000

The number of Māori businesses that have been through an ATEED programme or benefitted from an ATEED intervention(2)

183

120

120

120

120

120

Notes to table:

1.     The current 2020/2021 target reflects the scheduled opening of the NZ International Convention Centre (NZICC) and ATEED's role in attracting events to that, and other, venues. The 2020/2021 target does not include 36th America’s Cup (AC36) or Asia Pacific Economic Cooperation (APEC) events as ATEED's role in these events is still subject to scoping and confirmation.

2.     Intervention is a programme or service delivered by ATEED. The targets reflect ATEED's emerging strategy which is likely to result in the delivery of fewer larger interventions.

Development Auckland

Key projects

Over the 10 years of this LTP, Panuku will:

  • Facilitate projects that will deliver 10,000 additional housing units, including affordable housing, in partnership with the private sector, Crown, Iwi and the third-party sector.
  • Regenerate town centres through public realm upgrades, such as improving connections, cycling and walking links and environmental enhancement, activation and other initiatives, increasing the vibrancy, safety and success of the centres.
  • Complete legacy commercial projects in City Centre, Wynyard Quarter, Hobsonville and Ormiston, attracting significant private investment.
  • Deliver new social housing units for older people as part of the redevelopment of the Haumaru Portfolio working closely with the service provider Haumaru Housing Ltd.
  • Accelerate planning for the development of the waterfront park on Wynyard Point and the next phase of commercial mixed use development.
  • Acquire strategic sites to add strategic and commercial value to council underutilised sites and improve urban development outcomes.
  • Optimise the return to the council from both disposal programme and management of the non-service property portfolio.
Performance information

We will measure performance against the following levels of service:

Level of service statementPerformance measureActual 2016/17Target 2017/18

Long-term Plan Targets
2018/19

Long-term Plan Targets
2019/20

Long-term Plan Targets
2020/21

Long-term Plan Targets
2021 - 28

We make the waterfront and town centres dynamic, culturally-rich, safe and sustainable places for Aucklanders and visitors to enjoy

The percentage of visitors surveyed satisfied with their experience of the public spaces on the city centre waterfront(1)

93%

75%

80%

80%

80%

80%

The percentage of Aucklanders surveyed who have visited the city centre waterfront in the past year

73%

73%

73%

73%

73%

73%

The number of significant Māori initiatives implemented per annum

48

47

50

52

54

Increasing to 78

The percentage of marina customers surveyed who are satisfied with marina facilities and services(2)

93%

74%

88%

88%

88%

85%

We manage and maintain Council's properties, assets and services to optimise financial returns

The return on investment on like-for-like properties managed for Auckland Transport and Auckland Council(3)

3.10%

≥ 2.2%

≥ 2.25%

≥ 1.75%

≥ 1.75%

Decreasing to 1.25%

The monthly average occupancy rate for tenantable properties(4)

98%

≥ 95%

≥ 95%

≥ 95%

≥ 95%

≥ 95%

The return on equity on commercial assets and services(5)

12.70%

8.4%

8.25%

8.25%

8.25%

Increasing to 8.75%

Notes to the previous table:

1.     The city centre and town centres visitor satisfaction is set to 80 per cent taking into account the potential adverse impact on visitors from disruption caused by projects such as road construction and building activities occurring.

2.     The marina facilities customer satisfaction is set to 88 per cent considering the potential adverse impact on customers from disruption caused by building activities that affect the Westhaven Marina such as America's Cup, Promenade stage 2.

3.     The return on investment is projected to decrease as Panuku sells higher returning assets as part of their “Transform” and “Unlock” programme of works.

4.     The average occupancy rate of 95 per cent considers the condition of properties and the fact that a significant portion of the portfolio are mainly held for projects affecting the length of tenure.

5.     The return on equity is expected to reduce over the time due to assets being transferred out of Panuku's ownership as they are leased to property developers on long term leases.

Significant negative effects

There are no significant negative effects associated with the activities within this group of activities, but there are some negative effects arising from these activities.

Negative effects

Our response

Large commercial operations, such as forestry, landfills and quarries, will place a burden on infrastructure such as roading and have an effect on the natural environment through the contamination of soil and water, destruction of vegetation, dust and loud noise pollution.

Contracts with the commercial operators will provide for make-good on the sites. In addition, we will ensure traffic management plans, health and safety plans, resource consent conditions and regular monitoring to ensure compliance and minimise impact.

Large urban redevelopment projects may result in some negative impacts on existing residents and businesses, such as travel and business disruption and noise during construction, or changes in land use and activity. A number of these are addressed as part of business as usual activities such as stakeholder communication and engagement, traffic management, resource consent conditions (e.g. noise and dust) and other.

Through working closely with Local Boards and stakeholders and delivering on council-endorsed plans, we're committed to minimising the detrimental effects of redevelopment projects in line with legislative requirements and best practice. The outcomes and impacts of development programmes are monitored.

 

The large renewals projects may result in a range of negative impacts from noise and travel disruption through to environmental damage.

We're committed to minimising the detrimental effects of these renewals projects in line with legislative requirements and best practice.

Events can cause some inconvenience for some members of the community due to noise, restriction of traffic movement and adverse environmental effects such as littering.

Events are managed and monitored to ensure event organisers manage the potential for inconvenience to a minimum via waste management plans, traffic management plans and compliance with event-specific consent conditions.

Financial information

Activity

Operating cost and revenue $000

Financial year ending 30 June

2017/18

Year 1

2018/19

Year 2

2019/20

Year 3

2020/21

Year 4-10 2021/22-2027/28

Total

Regional facilities

Non-rates revenue

58,084

62,983

64,712

67,330

503,482

698,507

 

Direct operating expenditure*

82,875

97,580

97,948

101,183

761,176

1,057,887

 

Capital expenditure

57,273

101,556

42,219

33,843

219,533

397,151

Economic growth and visitor economy

Non-rates revenue

15,035

19,152

19,180

19,325

146,541

204,198

 

Direct operating expenditure*

62,583

66,820

67,870

69,018

523,503

727,211

 

Capital expenditure

187

3,428

198

204

1,612

5,442

Development Auckland

Non-rates revenue

79,565

58,503

57,187

58,915

445,571

620,176

 

Direct operating expenditure*

53,508

52,338

52,637

53,667

417,086

575,728

 

Capital expenditure

151,306

186,255

131,010

86,486

358,313

762,064

*Direct operating expenditure does not include interest and depreciation.

Prospective Funding Impact Statement

$000

Financial year ending 30 June

Annual Plan 2017/18

LTP

2018/19

LTP

2019/20

LTP

2020/21

LTP

2021/22

LTP

2022/23

LTP

2023/24

LTP

2024/25

LTP

2025/26

LTP

2026/27

LTP

2027/28

Sources of operating funding:

 

          

General rates, UAGCs, rates penalties

41,117

146,001

159,652

175,212

182,796

195,647

202,092

211,086

212,941

215,024

215,902

Targeted rates

13,450

13,679

13,952

14,231

14,516

14,806

15,102

15,404

15,712

16,027

16,347

Subsidies and grants for operating purposes

3,740

2,283

2,299

2,316

2,362

2,410

2,458

2,507

2,557

2,608

2,660

Fees and charges

266,301

53,210

55,510

57,965

58,856

59,740

59,859

61,110

61,759

62,953

63,739

Internal charges and overheads recovered

0

0

0

0

0

0

0

0

0

0

0

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

153,133

99,734

102,419

96,658

102,865

116,987

103,547

119,310

94,925

104,137

99,630

Total operating funding

477,741

314,907

333,832

346,382

361,395

389,590

383,058

409,417

387,894

400,749

398,278

 

 

          

Applications of operating funding:

 

          

Payment to staff and suppliers

309,963

216,738

218,455

223,868

228,453

233,414

238,658

243,897

247,910

252,213

257,084

Finance costs

56,653

34,236

44,784

50,293

53,135

54,287

54,131

53,241

51,767

50,104

48,195

Internal charges and overheads applied

2,343

0

0

0

0

0

0

0

0

0

0

Other operating funding applications

7,763

0

0

0

0

0

0

0

0

0

0

Total applications of operating funding

376,722

250,974

263,239

274,161

281,588

287,701

292,789

297,138

299,677

302,317

305,279

 

 

          

Surplus (deficit) of operating funding

101,019

63,933

70,593

72,221

79,807

101,889

90,269

112,279

88,217

98,432

92,999

 

 

          

Sources of capital funding:

 

          

Subsidies and grants for capital expenditure

0

0

0

0

0

0

0

0

0

0

0

Development and financial contributions

2,837

2,020

2,852

3,030

3,011

3,136

3,136

3,136

3,136

3,105

3,096

Increase (decrease) in debt

174,676

72,286

19,982

(1,716)

(108,529)

(46,176)

(16,690)

(58,167)

(64,681)

(91,922)

(62,025)

Gross proceeds from sale of assets

114,505

153,000

80,000

47,000

154,000

45,000

23,000

20,000

37,000

44,000

19,000

Lump sum contributions

0

0

0

0

0

0

0

0

0

0

0

Other dedicated capital funding

0

0

0

0

0

0

0

0

0

0

0

Total sources of capital funding

292,018

227,306

102,834

48,314

48,482

1,960

9,446

(35,031)

(24,545)

(44,817)

(39,929)

 

 

          

Application of capital funding:

 

          

Capital expenditure:

 

          

- to meet additional demand

220,305

66,748

68,541

51,096

76,353

53,700

32,554

18,100

21,412

24,122

23,502

- to improve the level of service

94,623

108,137

58,136

31,250

18,585

18,186

10,309

12,006

6,940

6,890

5,502

- to replace existing assets

78,109

116,354

46,750

38,189

33,351

31,963

56,852

47,142

35,320

22,603

24,066

Increase (decrease) in reserves

0

0

0

0

0

0

0

0

0

0

0

Increase (decrease) in investments

0

0

0

0

0

0

0

0

0

0

0

Total applications of capital funding

393,037

291,239

173,427

120,535

128,289

103,849

99,715

77,248

63,672

53,615

53,070

 

 

          

Surplus (deficit) of capital funding

(101,019)

(63,933)

(70,593)

(72,221)

(79,807)

(101,889)

(90,269)

(112,279)

(88,217)

(98,432)

(92,999)

 

 

          

Funding balance

0

0

0

0

0

0

0

0

0

0

0

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3.1 Revenue and Financing Policy

Policy purpose and overview

The purpose of the Revenue and Financing Policy is to provide predictability and certainty about sources and levels of funding available to the council.  It explains the rationale for, and the process of selecting various tools to fund the operating and capital expenditures of the council.

Policy background

Funding principles

To assist with the identification of the appropriate funding methods, the council has used a set of guiding principles that incorporate the matters set out in Section 101 of the Local Government Act 2002. These are set out in table 3.1.1 below.

Table 3.1.1

Principle

Rationale for its application

Paying for benefits received or costs imposed

Under this principle, the council considers benefit distribution and cost causation and the period in or over which benefits and costs are expected to occur. The allocation of costs to those who benefit from a council service or those who impose costs to the council (whether the community as a whole, any identifiable part of community, or individuals) is considered economically efficient and equitable and the extent to which the actions or inaction of individuals or a group contribute to the need to do the activity

Section 101(3)(a)(ii), Section 101(3)(a)(iv), Section 101(3)(a)(iii)

Transparency, accountability and costs and benefits of funding activities separately

This principle is applied when considering the costs and benefits of separate funding. Transparency of funding enables the users of services to assess whether they get value for money. Accountability makes the council more efficient in providing these services.  From the perspective of the service users, transparency and accountability also enables them to make more informed decisions in using council services

Section 101(3)(a)(v)

Market neutrality

This principle is relevant when the council is competing with the private sector in producing or delivering services. The council can be placed in an advantageous position vis a vis the private sector because of its ability to fund such services from rates, either fully or partially. This can lead to market distortions and economic inefficiencies. It can also discourage private enterprise. To avoid this, in tandem with other principles such as affordability, the council will apply commercial best practice when providing such services

Section 101(3)(b)

Financial prudence and sustainability

This principle is relevant in determining appropriate funding mixes. It is recognised that additional revenue may be required to support debt repayment and manage treasury ratios

Section 101(2)

Optimal capital usage

This principle relates to the effectiveness of funding tools in achieving efficiencies. The council’s limited financial resources should be used in such a way to maximise the benefits provided to the community, while minimising the burden on ratepayers. Among other things, this principle influences the council’s decisions on the best mix of funding (between rates income, other revenue sources, borrowings and asset sales) to pay for its assets and activities

Section 101(3)(b)

Strategic alignment

The Auckland Plan sets out a vision for the city over the next 30 years. The Revenue and Financing Policy should have regard to its impact on the broader strategies and priorities as set out in the council’s vision and the Auckland Plan

The infrastructure strategy outlines how the council intends to manage its infrastructure assets.  The Revenue and Financing Policy will show how investment in infrastructure is funded

Section 101(3)(b)

Overall social, economic, environmental and cultural impacts

Decisions on how the council’s revenue requirements will be met (by ratepayers and other groups) should take into account the impact of such decisions on the current and future social, economic, environmental and cultural well-being of the community and the community outcomes to which the activity relates

Section 101(3)(b)

Community outcomes in the Auckland Plan

Decisions on how the councils revenue requirements will be met (by ratepayers and other groups) should take into account the impact of such decisions on the community outcomes in the Auckland Plan

Section 101(3)(a)(i)

Affordability

The council needs to consider the impact of funding methods on people’s ability to pay as this can have implications for community well-being

Section 101(3)(b)

Minimise the effects of change

The integration and harmonisation of the policies of the former councils may lead to major changes in the incidence or rates and user charges for services. Funding and financial policies should seek to minimise or manage the impact of these changes

Section 101(3)(b)

Efficiency and effectiveness

The councils financial policies should have regard to the costs of carrying them out, and how effective they will be in achieving their objectives

Section 101(3)(a)(v)

Practicality of policy

The councils funding policies must be achievable and unconstrained by practical issues that will prevent compliance

Section 101(3)(a)(v)

Legal compliance

The LGA 2002 and related legislation include a number of legal requirements for the development of the Revenue and Financing Policy. All aspects of the policy will comply with legislation

There are some inherent conflicts between these guiding principles. In practice, establishing the council’s specific revenue and financing policies involves balancing competing guiding principles. For example, the principle of paying for benefits received may call for a high degree of user pays for an activity, but this must be balanced against the principle of affordability. In practice, when the council applies these principles to assess how to fund the separate activities, the council then considers the overall impact of any allocation of liability on the community.

Policy details

Expenditure to be funded

Legislation requires the council to make adequate provision in its long-term plan to meet expenditure needs identified. Generally, this will mean that all expenditure is funded. Exceptions include funding of depreciation expenditure where it is financially prudent not to do so. In determining the level of non-funded depreciation, the council will have regard to:

  • whether at the end of its useful life, the replacement of an asset will be funded by way of a grant or subsidy from a third party
  • whether the council has elected not to replace an asset at the end of its useful life
  • whether a third party has a contractual obligation to maintain the service potential of an asset throughout all or part of its useful life or to replace the asset at the end of its useful life
  • whether fully funding depreciation in the short-term will result in an unreasonable burden on ratepayers, presenting conflict between funding principles, for example between affordability and financial prudence and sustainability. In such circumstances, the council will remain prudent and ensure it promotes both the current and future interests of the community by forecasting to reach a position over time where it fully funds depreciation (apart from the exceptions above).

Table 3.1.2 below sets out the minimum level of depreciation funding the council will incorporate when calculating its rates requirement.

Table 3.1.2 Proportion of depreciation expenditure to be funded

Year

2018/19

2019/20

2020/21

2021/22

2022/23

2023/24

2024/25

2025/26

2026/27

2027/28

Funded

78%

82%

85%

89%

93%

96%

100%

100%

100%

100%

Not funded

22%

18%

15%

11%

7%

4%

0%

0%

0%

0%

As a result of this policy of moving towards funding 100 per cent of depreciation by 2025 the council has resolved that for three of the next 10 years, the councils operating revenue (adjusted for items such as vested assets and development contributions) will be less than the councils total operating expenditure (including depreciation). This implies that in the early years of the plan, the council is more reliant on borrowings, rather than rates and other current revenue, to fund its capital expenditure. However, the council considers that the level of council debt is manageable and prudent in every year of the plan. In particular, the projected level of council debt will not exceed our prudential limit of 270 per cent of revenue. Further information about our prudent approach to managing debt is included in our Financial Strategy in section 1.4.

The council considers that this policy on funding depreciation and the consequential impacts on councils operating budgets and debt levels is financially prudent, reasonable and appropriate having had regard to our funding principles, the factors in section 100(2) of the Local Government Act 2002 and all other relevant matters.

Sources of funding

The sources of funding applied under this policy are limited to those set out under section 103 (2) of the LGA 2002.

Sources of funding: Operating expenditure

The council has determined the funding sources for operating expenditure after considering the funding principles set in Table 3.1.1.Table 3.1.3 Funding sources for operating expenditure.

Funding source

Rationale

Fees and charges

Fees and charges can be applied where the users of a service can be identified and charged according to their use of the service (and those that do not pay are denied access to the service). This is based on the paying for benefits received principle. Fees are also appropriate where an individual’s action or inaction creates the need for an activity (cost causation). For example, the cost of obtaining a building consent is met by the building owner

Grants and subsidies

Grants and subsidies are generally only appropriate for funding the operating costs of the particular activity that the grant or subsidy is intended to pay for. For example, NZTA (government) transport subsidies can only be used to fund transport projects.

Development or financial contributions

Development contributions or financial contributions can only be used to fund capital expenditures related to growth, Development contributions also include financing costs incurred due to timing differences between growth-related capital expenditure being incurred and the related development contribution being received

Targeted rates

Appropriate to fund operating expenditure (including projects to support growth) where one or more of the following apply:

  • that benefit a specific group of ratepayers
  • to incentivise land owners to develop land in response to a commitment to the provision of infrastructure
  • to provide certainty of the council recovering its costs
  • where greater transparency in funding the cost of the activity is desirable
  • where an individual or a group of ratepayers voluntarily chooses to adopt the rate, such as for business improvement districts or the Retrofit Your Home scheme
  • where the rate is for a specific service, or bundle of services, such as for waste collection.

General rates

General rates are appropriate for funding activities where it is not practicable or cost-effective to identify the individual or group of beneficiaries (or causers of costs) of the service and charge them for the benefits received or costs imposed (e.g. regional parks and open spaces). It is also appropriate for general rates to partially fund activities where the provision of a private good also generates wider social benefits or where the application of fees and charges either causes affordability issues or compromises the wider objectives of the activity. This is consistent with the guiding principle of affordability

CCO profits, and net rental and interest from investments

CCO profits and net returns from investments will be used to offset the general rates funding requirement of other council activities, reducing the burden on all ratepayers

Borrowing

Borrowing will not generally be used to fund operating expenses. The council may choose to borrow for an operating expense where it is providing a grant to an external community organisation that is building an asset such as a community facility or in other cases where operating expenditure provides enduring economic benefits. Borrowing may also be used to fund the interest expense accrued on borrowing during the period of construction of an asset; and to fund the cost of discovered liabilities such as the council’s share of weathertightness claims. In these cases borrowing and repaying the debt over time promotes intergenerational equity by spreading the responsibility for funding across the generations who will benefit

Trusts, bequests and other reserve funds

Certain operating expenditure may be funded from restricted or special funds that are subject to special conditions of use, whether under statute or accepted as binding by the council. Transfers from reserves may only be made when the specified conditions for use of the funds are met

Other funding sources

The use of any other funding sources should be assessed with regard to the guiding principles. Any miscellaneous revenue not linked to a specific activity should be used to fund activities that would otherwise be funded through the general rate

Surpluses from previous financial years

A surplus may be available to be carried forward if the actual surplus/(deficit) is improved compared to the forecast surplus/(deficit). Generally, only those factors that are cash in nature will be available for use in determining the level of surplus to be carried forward. The amount of any surplus carried forward will be accounted for as an operating deficit in the year the benefit is passed to ratepayers

Regional Fuel Tax

A Regional Fuel Tax may be used to fund the operating expenditure associated with approved list of transport capital projects as set out in the Regional Fuel Tax scheme.

Note: Auckland Council does not intend to use lump sum contributions or proceeds from asset sales to fund operating expenditure.

The funding mix for activities shown in Table 3.1.6 below reflects the application of the above principles and rationale to the operating expenditure of individual activities.

Sources of funding: Capital expenditure

The council has determined the funding sources for capital expenditure after considering the funding principles set out in Table 3.1.1.

Table 3.1.4 Funding sources for capital expenditure

Funding source

Rationale

General rate

Appropriate funding source where it is not practicable or cost-effective to identify the individual or group of beneficiaries (or causers of costs) of the capital expenditure

Targeted rates

Appropriate to fund capital expenditure projects (including projects to support growth) where one or more of the following apply:

  • that benefit a specific group of ratepayers
  • to incentivise land owners to develop land in response to a commitment to the provision of infrastructure
  • to provide certainty of the council recovering its costs
  • where greater transparency in funding the cost of the activity is desirable

Fees and charges

Appropriate funding source where users of a service can be identified and charged according to their service.

Examples include water charges and Infrastructure Growth Charges from Watercare Services Limited

Interest and dividends from investments

Interest and dividends from investments may be used where appropriate and consistent with the councils funding principles to fund capital expenditure projects and to reduce the reliance on ratepayer funding.

Borrowing

Borrowing is used to spread the funding requirement for capital expenditure across multiple years.  Given assets deliver benefits throughout their useful lives it is appropriate that the funding is spread across the useful life

Proceeds from asset sales

Funds received from the sale of surplus assets will generally be used to repay borrowings.

On a case-by-case basis these surpluses may be used to fund investment in another asset of higher strategic priority than the asset sold

Development or financial contributions

Appropriate to fund capital expenditure in anticipation of or in response to development (growth) that will generate a demand for additional reserves, network or community infrastructure (such as stormwater systems). Contributions are set through the council’s Contributions Policy

Grants, subsidies, and donations

Appropriate to fund specific capital expenditure projects as per terms of the grant, subsidy or donation.

An example of this is NZTA subsidies to partially fund transport projects

Trusts, bequests and other reserve funds

Certain capital expenditure may be funded from restricted or special funds that are subject to special conditions of use, whether under statute or accepted as binding by the council. Transfers from reserves may only be made when the specified conditions for use of the funds are met

Other sources

Other revenue sources may be used where appropriate and consistent with the council’s funding principles to fund capital expenditure projects and to reduce the reliance on ratepayer funding.

An example of this is the use of commercial returns from property holdings to fund capital spend on those property assets

Regional Fuel Tax

A Regional Fuel Tax may be used to fund the capital expenditure associated with approved list of transport capital projects as set out in the Regional Fuel Tax scheme.

Note: Auckland Council does not intend to use lump sum contributions to fund capital expenditure.

The funding mix for activities shown in Table 3.1.6 below reflects the application of the above principles and rationale to the operating and capital expenditure of individual activities.

Rating Policy

The council will use general rates to fund activities which have a ‘public good’ element, e.g. civil defence, or where it wishes to subsidise the provision of services because of the wider social benefits they provide e.g. libraries.

Valuation basis

The general rate will be set on the basis of capital value.  Capital value better reflects the level of benefit a property is likely to receive from services rather than land value or annual value.

Application of a uniform annual general charge

To ensure that the rates incidence isn’t disproportionately borne by higher value properties the council sets a uniform annual general charge (UAGC).  Every ratepayer will therefore make a minimum contribution to meeting the council’s costs.

The charge will apply to every separately used or inhabited part of a rating unit e.g. shop in a mall or granny flat.  This ensures equal treatment between these properties and main street shops or apartments on individual titles. 

Rates differentials

It is the council’s view that some land uses receive more benefit from, or place more demand on, council services and/or may have a differing ability to pay rates.  The differentials will be determined based on land use (including consideration of land use classifications determined under the Rating Valuation Rules) and location.

The council will apply general rates differentially (the base level for rating is the residential sector) and may also apply targeted rates differentially to:

  • business properties in the urban area
  • business properties in rural areas
  • residential properties in the rural areas
  • farm/lifestyle properties
  • moderate-occupancy online accommodation providers in the rural areas
  • moderate-occupancy online accommodation providers in the urban area
  • medium-occupancy online accommodation providers in the rural areas
  • medium-occupancy online accommodation providers in the urban area
  • properties with no direct or indirect road access and properties on uninhabited islands.

The council has decided that the appropriate differential for business is to raise 25.8 per cent of the general rates take, which is substantially lower than the current level.  Business rates will move to that level in equal steps by 2037/2038 to manage the affordability impact of the shift in the rates incidence to the non-business sector.

Targeted rates

The council mainly uses targeted rates where there is a clearly identifiable group benefiting from a specific council activity. Targeted rates will apply to properties that receive certain services, or which are located in specified areas. Targeted rates may be used where the council wishes to incentivise development in areas where infrastructure investments have been made and/or to provide more certainty over the timing of payment for those investments.  Targeted rates may also apply universally to fund a specific activity where a greater degree of transparency is desired. The council does not have a lump sum contribution policy and will not invite lump sum contributions for any targeted rate.

The council intends to set targeted rates to fund activities as set out in Table 3.1.5 below.

Table 3.1.5: Services to be funded by targeted rates

Targeted rate

Services to be funded or part funded

Solid waste targeted rates

Refuse, inorganic, food scraps collection, resource recovery centres and recycling services as appropriate for former council areas

City centre targeted rate

Investment in projects to enhance the central city environs

Local targeted rates as proposed by local boards

Local or regional activities in the local board’s area

Business improvement district targeted rates

Investments to e area of the business association as agreed with the business association

Loan repayment targeted rates

To repay financial assistance provided by the council to ratepayers for specific purposes

Waitakere rural sewerage targeted rate

To pay for the provision of inspection and pump out services for on-site waste management systems

Infrastructure targeted rates

Activities requiring infrastructure investment

Accommodation provider  targeted rate

ATEEDs visitor attraction and major events expenditure

Water Quality targeted rate

Additional investment in improving water quality

Natural Environment targeted rate

Additional investment in improving environmental outcomes

Annual adjustments to regulatory fees and charges

The council will amend its regulatory fees and charges annually to:

  • reflect increases in costs as measured by the council rate of inflation and/or
  • maintain the cost recovery levels underlying the basis for setting the fee levels.

The change to fee levels will be made on a practical basis recognising that the percentage change applied to individual fees may not precisely equal the council rate of inflation. This also means smaller fees may increase by more material amounts in one year and remain constant for a period before being adjusted again.

Application of funding principles to the funding of operating and capital expenditure for each activity

The council has determined the sources of funding for capital and operating expenditure for each of its activities after considering the principles set out in Table 3.1.1 and the rationale for the use of funding sources in Tables 3.1.3 and 3.1.4 above.  A brief summary of the decisions and consideration of funding principles for each activity is set out in table 3.1.6 below.

Table 3.1.6 Funding sources for operating and capital expenditure for each activity

Groups of Activities: Council controlled services

Activities

Consideration of funding principles

Funding policy

Development Auckland

This involves both commercial operations that deliver private benefits and public initiatives that benefit the community as a whole

Lessees, tenants and purchasers derive the full benefit

Costs of commercial operations are funded from user charges and other non-rates revenue

Costs of public initiatives are primarily funded from the general rate

Targeted rates are used to fund operations, maintenance and renewal costs where a project benefits a specific group of ratepayers

Targeted rates are used to fund interest and capital expenditure cost for infrastructure (including projects to support growth) not funded from development contributions where a project benefits a specific group of ratepayers

Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growth-related public infrastructure

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Economic growth and visitor economy

The related industries benefit from increased visitor numbers

The community as a whole benefit from growth in the economy and employment

Visitor attraction and major events expenditure is funded by a mix of general and targeted rates

Economic development costs are primarily funded from the general rate

Subsidies from government and other sources are utilised where available

User charges are applied where benefits are private (event tickets)

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Regional facilities

Users of the facilities derive a direct benefit

The community as a whole benefit through a more diverse and vibrant lifestyle and an increased sense of pride and identity created by the events hosted in the facilities

An enhancement to the overall economy and employment resulting from increased visitor numbers

The majority of the costs are funded from the general rate with the balance funded from user charges such as venue hire

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Groups of Activities: Local services

Activities

Consideration of funding principles

Funding policy

Local planning and development

Business improvement districts (BIDs) directly benefit from council expenditure on local economic development made at their direction

The rest of the councils service in local planning and development benefits the community as a whole

Grants provided to each BID for spending in the BID area are funded from the respective BID targeted rate

Revenue from any other sources (including from any user charges, targeted rate, grants, donations and sponsorships) will be utilised should they become available

The balance of the costs are funded from the general rate

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Local environmental management

These are public goods that benefit the community as a whole

Costs are fully funded from the general rate

Revenue from any other sources (including from any user charges, targeted rate, grants, donations and sponsorships) will be utilised should they become available

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Local governance

These are public goods that benefit the community as a whole

Costs are primarily funded from the general rate

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Local community services

Service users derive a direct benefit

The wider public benefit from a more vibrant and friendly community, a safer community environment and access to high quality open space

In most cases it is impractical to directly charge users

In some cases the service is private and a charge can be implemented (e.g. use of park space or facilities for private functions)

The target recipients of the services may have affordability issues

Costs are primarily funded from the general rate

User charges may apply where the service is private and a charge can be implemented without compromising the council’s social objectives

Subsidies from government and other sources, (including from any targeted rate, grants, donations and sponsorships) are utilised where available

Targeted rates are used to fund operations, maintenance and renewal costs where a project benefits a specific group of ratepayers

Targeted rates are used to fund interest and capital expenditure cost for infrastructure (including projects to support growth) not funded from development contributions where a project benefits a specific group of ratepayers

Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growth-related public infrastructure

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Groups of Activities: Regional council services

Activities

Consideration of funding principles

Funding policy

Regional planning

The community as a whole benefit from this activity

The city centre redevelopment programme directly benefits businesses in the city centre area through enhancing the quality of the environment in the city centre for workers and visitors

Costs are primarily funded from the general rate

Costs associated with the city centre redevelopment programme are funded from a combination of the city centre targeted rate and general rates

Targeted rates are used to fund operations, maintenance and renewal costs where a project benefits a specific group of ratepayers

Targeted rates are used to fund interest and capital expenditure cost for infrastructure (including projects to support growth) not funded from development contributions where a project benefits a specific group of ratepayers

Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growth-related public infrastructure

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Regulatory services

The need for the council involvement is mainly caused by licence or consent applicants or holders whose activities, if unregulated, could cause nuisance to the public or pose a threat to the safety or health of the community

In some cases it is difficult to identify and charge the parties who cause the costs (e.g. owners of unregistered dogs)

In some cases charging the full cost may discourage compliance

Certain related services (e.g. provision of property information) deliver private benefit to users

Costs are primarily funded from user charges

Certain charges are set at a level below cost to encourage compliance, with the balance funded from general rates

Where costs cannot be easily attributed to individual parties, they are funded from the general rate

Targeted rates are used where there is a clearly identifiable group benefiting from a specific council activity (e.g. on-site sewerage pump out)

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Organisational support

Certain services within this activity (e.g. provision of financial assistance to certain ratepayers and supply of information for commercial or private use) deliver private benefits

The remainder of the activity contributes to the council’s provision of other external services

Targeted rates are used where financial assistance is provided  by the council for a specific group of ratepayers to fund local projects that solely benefit those ratepayers

There is a small amount of revenue from fees and charges

The remainder of the costs are allocated to the council’s external services

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Regional governance

These are public goods that benefit the community as a whole

Costs are primarily funded from the general rate (see note below)

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Regional community services

Service users derive a direct benefit

The wider public benefit from a more vibrant and friendly community, a safer community environment and access to high quality open space

In most cases it is impractical to directly charge users

In some cases the service is private and a charge can be implemented (e.g. use of park space or facilities for private functions)

The target recipients of the services may have affordability issues

Costs are primarily funded from the general rate

User charges may apply where the service is private and a charge can be implemented

Subsidies from government and other sources (including from any targeted rate, grants, donations and sponsorships) are utilised where available

Targeted rates are used to fund operations, maintenance and renewal costs where a project benefits a specific group of ratepayers

Targeted rates are used to fund interest and capital expenditure cost for infrastructure (including projects to support growth) not funded from development contributions where a project benefits a specific group of ratepayers

Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growth-related public infrastructure

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Environmental services

The provision of environmental services is primarily a public good that benefits the community as a whole

Costs are funded predominantly from the general rate

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Targeted rates applied universally on a differential basis (business and non-business) are used where a greater degree of transparency is desired in relation to how funds are spent

Investment

All ratepayers as a whole bear the risk of the investments

Any profit realised is used to reduce the general rate requirement

Any loss would be funded from the general rate or other revenue

Borrowings are used to address cash-flow timing differences

3rd party amenities and grants

Regional amenities such as MOTAT and Auckland War Memorial Museum benefit the community as a whole

Council is required under legislation to provide funding for amenities included in this activity

Costs to the council are primarily funded from the general rate

Borrowings may be used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Note: Revenue from council owned cafeteria is currently grouped under this activity and is used to offset the general rate.

Groups of Activities: Roads and Footpaths

Activities

Consideration of funding principles

Funding policy

Road and footpaths

Road and footpath users derive a direct benefit

There are legal and practical constraints in directly charging users

The vast majority of the public are users

Costs are funded from a combination of the general rate, user charges, and government grants.

Targeted rates may also be used where financial assistance is provided  by the council for a specific group of ratepayers to fund local projects that solely benefit those ratepayers

Costs associated with the city centre redevelopment programme are funded from a combination of the city centre targeted rate and general rates

Targeted rates are used to fund operations, maintenance and renewal costs where a project benefits a specific group of ratepayers

Targeted rates are used to fund interest and capital expenditure cost for infrastructure (including projects to support growth) not funded from development contributions where a project benefits a specific group of ratepayers

Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growth-related public infrastructure

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

The Regional Fuel Tax may be used to fund the some of the operating and capital expenditure associated with approved list of transport capital projects as set out in the Regional Fuel Tax scheme

Groups of Activities: Public Transport and Travel Demand Management

Activities

Consideration of funding principles

Funding policy

Public Transport and travel demand management

Service users derive a direct benefit

Public transport provides benefit for the wider community by reducing demand from private transportation for roading infrastructure

 

Costs are funded from a combination of the general rate, user charges and government grants

Targeted rates are used to fund operations, maintenance and renewal costs where a project benefits a specific group of ratepayers

Targeted rates are used to fund interest and capital expenditure cost for infrastructure (including projects to support growth) not funded from development contributions where a project benefits a specific group of ratepayers

Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growth-related public infrastructure

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

The Regional Fuel Tax may be used to fund the some of the operating and capital expenditure associated with approved list of transport capital projects as set out in the Regional Fuel Tax scheme

Parking and enforcement

Parking customers derive the full benefit

Individuals failing to comply with restrictions create the need for the council involvement

Costs are fully funded from user charges and fines

Borrowings are used to address cash-flow timing differences

Organisational support (Auckland Transport)

Certain services within this activity (e.g. provision of financial assistance to certain ratepayers and supply of information for commercial or private use) deliver private benefits

The remainder of the activity contributes to the council’s provision of other external services

Costs are allocated to the council’s external services

Targeted rates are used where financial assistance is provided  by the council for a specific group of ratepayers to fund local projects that solely benefit those ratepayers

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Groups of Activities: Stormwater Management

Activities

Consideration of funding principles

Funding policy

Stormwater management

These are public goods that benefit the community as a whole (except for a small number of local projects that benefit a specific group of ratepayers)

Costs are primarily  funded from the general rate

Targeted rates are used where financial assistance is provided  by the council for a specific group of ratepayers to fund local projects that solely benefit those ratepayers

Targeted rates are used to fund operations, maintenance and renewal costs where a project benefits a specific group of ratepayers

Targeted rates are used to fund interest and capital expenditure cost for infrastructure (including projects to support growth) not funded from development contributions where a project benefits a specific group of ratepayers

Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growth-related public infrastructure

Financial contributions are used to fund the costs of environmental mitigation through the resource consent process

Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences

Targeted rates applied universally on a differential basis (business and non-business) are used where a greater degree of transparency is desired in relation to how funds are spent

 Groups of Activities: Wastewater treatment and disposal

Activities

Consideration of funding principles

Funding policy

Wastewater

Water and wastewater customers derive the full benefit

Costs are mainly funded from user charges

Targeted rates are used to fund operations, maintenance and renewal costs where a project benefits a specific group of ratepayers

Targeted rates are used to fund interest and capital expenditure cost for infrastructure (including projects to support growth) and are not funded by other user charges and/or development contributions where a project benefits a specific group of ratepayers

Borrowings are used to spread the costs fairly and prudently across different generations of water users and to address cash-flow timing differences

Groups of Activities: Water Supply

Activities

Consideration of funding principles

Funding policy

Water supply

Water and wastewater customers derive the full benefit

Costs are mainly funded from user charges

Targeted rates are used to fund operations, maintenance and renewal costs where a project benefits a specific group of ratepayers

Targeted rates are used to fund interest and capital expenditure cost for infrastructure (including projects to support growth) and are not funded by other user charges and/or development contributions where a project benefits a specific group of ratepayers

Borrowings are used to spread the costs fairly and prudently across different generations of water users and to address cash-flow timing differences

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3.2 Prospective funding impact statement

Prospective consolidated funding impact statement

Auckland Council group consolidated

$000

Financial year ending 30 June

Annual  Plan

2017/18

LTP 2018/19

LTP 2019/20

LTP 2020/21

LTP 2021/22

LTP 2022/23

LTP 2023/24

LTP 2024/25

LTP 2025/26

LTP 2026/27

LTP 2027/28

Sources of operating funding:           
General rates, UAGCs, rates penalties

1,517,067

1,588,388

1,660,153

1,752,213

1,848,734

1,949,845

2,055,738

2,167,522

2,285,588

2,409,220

2,538,303

Targeted rates

197,643

212,615

223,859

220,129

226,636

231,872

236,987

240,626

245,167

249,632

254,647

Subsidies and grants for operating purposes

273,705

286,973

297,307

305,689

313,599

321,216

329,329

336,149

342,569

348,891

356,218

Fees and charges

1,255,679

1,347,989

1,424,281

1,529,557

1,593,904

1,656,940

1,725,021

1,788,539

1,854,387

1,926,709

2,001,496

Interest and dividends from investments

67,976

70,661

70,961

70,930

70,825

72,391

74,118

75,946

77,918

79,889

81,909

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

289,074

430,324

442,794

439,510

456,352

471,395

460,157

477,455

456,585

465,384

471,503

Total operating funding

3,601,144

3,936,950

4,119,355

4,318,028

4,510,050

4,703,659

4,881,350

5,086,237

5,262,214

5,479,725

5,704,076

            
Applications of operating funding:           
Payment to staff and suppliers

2,418,699

2,587,623

2,655,498

2,744,272

2,817,466

2,910,733

3,006,309

3,093,448

3,181,378

3,275,935

3,370,765

Finance costs

454,998

467,214

513,661

562,389

594,238

611,472

630,593

643,051

660,264

675,602

685,461

Other operating funding applications

7,763

0

0

0

0

0

0

0

0

0

0

Total applications of operating funding

2,881,460

3,054,837

3,169,159

3,306,661

3,411,704

3,522,205

3,636,902

3,736,499

3,841,642

3,951,537

4,056,226

            
Surplus (deficit) of operating 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

            
            
Sources of capital funding:           
Subsidies and grants for capital expenditure

403,083

411,868

486,707

475,320

471,167

430,841

552,107

561,020

511,655

580,785

631,385

Development and financial contributions

214,358

204,491

288,657

306,696

297,514

301,303

301,303

301,303

301,303

295,771

293,224

Increase (decrease) in debt

354,308

591,532

703,627

712,291

484,954

542,829

450,799

304,585

407,301

196,463

53,551

Gross proceeds from sale of assets

114,505

177,000

104,000

71,000

174,000

65,000

43,000

40,000

57,000

64,000

39,000

Lump sum contributions

0

0

0

0

0

0

0

0

0

0

0

Other dedicated capital funding

0

0

0

0

0

0

0

0

0

0

0

Total sources of capital funding

1,086,254

1,384,891

1,582,991

1,565,307

1,427,635

1,339,973

1,347,209

1,206,908

1,277,259

1,137,019

1,017,160

            
Application of capital funding:           
Capital expenditure:           
- to meet additional demand

797,653

980,090

827,105

774,944

806,379

678,595

648,054

690,428

543,127

616,381

634,791

- to improve the level of service

609,111

539,727

759,619

738,929

719,212

845,475

959,753

992,961

1,191,235

1,023,308

966,177

- to replace existing assets

609,952

658,203

581,334

600,823

623,084

688,867

963,799

1,012,417

942,479

991,540

1,049,458

Increase (decrease) in reserves

65,329

32,319

81,369

78,655

38,820

16,620

12,631

12,393

10,325

6,385

3,001

Increase (decrease) in investments

(276,107)

56,665

283,760

383,323

338,486

291,870

7,420

(151,553)

10,665

27,593

11,583

Total applications of capital funding

1,805,938

2,267,004

2,533,187

2,576,674

2,525,981

2,521,427

2,591,657

2,556,646

2,697,831

2,665,207

2,665,010

            
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 balance

0

0

0

0

0

0

0

0

0

0

0

Rating mechanism

This section sets out how the council will set its rates for 2018/2019. It explains the basis on which rating liability will be assessed. In addition, it covers the council’s early payment discount policy.

Background

The council’s general rate is made up of the Uniform Annual General Charge (UAGC) and the value-based general rate. Revenue from the general rate is used to fund the council activities that are deemed to generally and equally benefit Auckland and that part of activities that are not funded by other sources.

Rating base information

The following table sets out the projected number of rating units at the end of the preceding financial year for each year of the long-term plan.

Financial year ending 30 June

Number of rating units for Auckland Council

2018

559,788

2019

570,704

2020

582,118

2021

593,528

2022

604,923

2023

616,417

2024

628,129

2025

640,063

2026

651,968

2027

663,834

How the increase in the rate requirement is applied

The increase in the general rate requirement is split to maintain the proportion of the UAGC at around 13.4 per cent of the total general rate (UAGC plus value based general rates). This is achieved by applying the general rates increase to the UAGC and rounding to the nearest dollar.

Uniform annual general charge (UAGC) and other fixed rates

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

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

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

  • Waste management targeted rate
  • part of some Business Improvement District targeted rates
  • City centre targeted rate for residential properties
  • Point Wells wastewater targeted rate
  • Jackson Crescent wastewater targeted rate
  • Riverhaven Drive targeted rate
  • Waitākere rural sewerage targeted rate
  • Ōtara-Papatoetoe swimming pool targeted rate
  • Māngere-Ōtāhuhu swimming pool targeted rate
  • Rodney Local Board Transport targeted rate

Funds raised by uniform fixed rates, which include the UAGC and any targeted rate set on a uniform fixed basis[11], cannot exceed 30 per cent of total rates revenue sought by the council for the year (under Section 21 of Local Government (Rating) Act 2002).

A UAGC of $414 (including GST) will be applied per SUIP for 2018/2019. This is estimated to produce around $219.5 million (excluding GST) for 2018/2019.

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

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

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

  • a business operating a motel on a rating unit will be treated for rating purposes as a single separately used or inhabited part. If that rating unit also includes a residential unit, in which the manager or owner resides, then the rating unit will be treated for rating purposes as having two separately used or inhabited parts
  • a hotel will be treated for rating purposes as a single separately used or inhabited part, irrespective of the number of rooms. If, on the premises, there is a florist business and a souvenir business, then the rating unit will be treated for rating purposes as having three separately used or inhabited parts.

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

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

The above definition applies for the purposes of the UAGC as well as any targeted rate which is set on a “per SUIP” basis.

Value-based general rate

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

Rates differentials

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

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

The council defines its rates differential categories using location and the use to which the land is put. When determining the use to which the land is put, the council will consider information it holds concerning the actual use of the land, and the land use classification that council has determined applies to the property under the Rating Valuation Rules.

Where there is no actual use of the land (i.e. the land is vacant), the council considers the location of the land and the highest and best use of the land to determine the appropriate rates differential. Highest and best use is determined by the activities that are permitted, controlled, or discretionary for the area in which the land is situated, and the rules to which the land is subject under an operative district plan or regional plan under the Resource Management Act 1991.

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

Rates differential definitions
Differential groupDefinition
Urban business Land in the Metropolitan Urban Limit (MUL) as well as land within the Pukekohe township that is used for commercial, industrial, transport, utility or public communal – licensed purposes. Also includes any land that is used for community services, but which is used for commercial, or governmental purposes, or which is covered by a liquor licence.

Also includes land in the MUL as well as land within the Pukekohe township, where a residence is let out on a short-term basis, via online web-based accommodation services that offer short-term rental accommodation via peer-to-peer online marketplace such as Airbnb and bookabach, for more than 180 nights in the 12 months ending 30 June of the previous financial year.

Urban residential Land in the MUL, as well as land within the Pukekohe township that is used exclusively or almost exclusively, for residential purposes, and includes tenanted residential land, rest homes and geriatric hospitals. It excludes hotels, motels, serviced apartments, boarding houses and hostels.(1) Land used for community services and used by a not for profit ratepayer for the benefit of the community will be charged the residential rate (this does not include land covered by a liquor licence)
Rural business Land outside the MUL that  is used for commercial, industrial, transport, utility network(2), or public communal – licensed purposes. Also includes any land that is used for community services, but which is used for commercial, or governmental purposes, or which is covered by a liquor licence.

Also includes land outside the MUL where a residence is let out on a short-term basis, via online web-based accommodation services that offer short-term rental accommodation via peer-to-peer online marketplace such as Airbnb and bookabach for more than 180 nights in the 12 months ending 30 June of the previous financial year. 

Rural residential Land outside the MUL that is used exclusively or almost exclusively for residential purposes, and includes tenanted residential land, rest homes and geriatric hospitals. It excludes hotels, motels, serviced apartments, boarding houses and hostels (1). Land used for community services and used by a not for profit ratepayer for the benefit of the community will be charged the residential rate (this does not include land covered by a liquor licence)
Farm and lifestyle Any land that is used for  lifestyle or rural industry purposes, excluding mineral extraction(3)
No road accessIncludes all land (irrespective of use) for which direct or indirect access by road is unavailable or provided for, and all land situated on the islands of Ihumoana, Kaikoura, Karamuramu, Kauwahia, Kawau, Little Barrier, Mokohinau, Motahaku, Motuketekete, Motutapu, Motuihe, Pakatoa, Pakihi, Ponui, Rabbit, Rakitu, Rangiahua, Rotoroa and The Noises
Uninhabitable islandsIncludes land on all Hauraki Gulf islands and Manukau Harbour other than Waiheke, Great Barrier and the islands named in the definition of No road access.
Urban moderate-occupancy online accommodation providerLand in the Metropolitan Urban Limit (MUL) as well as land within the Pukekohe township  where a residence is let out on a short-term basis, via online web-based accommodation services that offer short-term rental accommodation via peer-to-peer online marketplace such as Airbnb and bookabach, for more than 135 nights and less than 181 nights in the 12 months ending 30 June of the previous financial year.
Rural moderate-occupancy online accommodation providerLand outside the MUL where a residence is let out on a short-term basis, via online web-based accommodation that offer short-term rental accommodation services via peer-to-peer online marketplace such as Airbnb and bookabach, for more than 135 nights and less than 181 nights in the 12 months ending 30 June of the previous financial year.
Urban medium-occupancy online accommodation providerLand in the Metropolitan Urban Limit (MUL) as well as land within the Pukekohe township  where a residence is let out on a short-term basis, via online web-based accommodation services that offer short-term rental accommodation via peer-to-peer online marketplace such as Airbnb and bookabach, for more than 28 nights and less than 136 nights in the 12 months ending 30 June of the previous financial year.
Rural medium-occupancy online accommodation providerLand outside the MUL where a residence is let out on a short-term basis, via online web-based accommodation services that offer short-term rental accommodation via peer-to-peer online marketplace such as Airbnb and bookabach, for more than 28 nights and less than 136 nights in the 12 months ending 30 June of the previous financial year.

Notes to previous table:

1.     Hotels, motels, serviced apartments, boarding houses and hostels will be rated as business except when the land is used exclusively or almost exclusively for residential purposes. Ratepayers must provide proof of long-term stay (at least 90 days) as at 30 June of the previous financial year. Proof should be in the form of a residential tenancy agreement or similar documentation.

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

3.     To be considered “lifestyle”, land must be in a rural or semi-rural area, must be predominantly used for residential purposes, must be larger than an ordinary residential allotment, and must be used for some small-scale non-commercial rural activity.

The long-term differential strategy

In 2018/2019 the council is recommencing the long-term differential strategy. The business differential ratios will be set so that 32.4 per cent of general rates (UAGC and value-based general rate) come from businesses.

The table below sets out the rates differentials and rates in the dollar of capital value to be applied in 2018/2019. This is estimated to produce around $1,389.8 million (excluding GST) for 2018/2019.

Value-based general rate differentials for 2018/2019

Property categoryEffective relative differential ratio for general rate for 2018/2019Rate in the dollar for 2018/2019 (including GST) ($)Share of value-based general rate (excluding GST) ($)Share of value-based general rate (%)
Urban business2.790.00512269455,477,14632.8%
Urban residential1.000.00183316773,938,25855.7%
Rural business2.520.0046104244,136,3723.2%
Rural residential0.900.0016498442,162,4513.0%
Farm and lifestyle0.800.0014665371,272,8335.1%
No road access0.250.00045829227,715Less than 0.1%
Uninhabitable island(1)0.000.0000000000%

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

Property categoryEffective relative differential ratio for general rate for 2018/2019Rate in the dollar for 2018/2019 (including GST) ($)Share of value-based general rate (excluding GST) ($)Share of value-based general rate (%)
Urban moderate-occupancy online accommodation provider1.900.00347792422,986Less than 0.1%
Rural moderate-occupancy online accommodation provider1.710.00313013132,995Less than 0.1%
Urban medium-occupancy online accommodation provider1.450.002655541,441,2500.1%
Rural medium-occupancy online accommodation provider1.300.00238999562,761 Less than 0.1%

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

Targeted rates

The council does not have a lump sum contribution policy and will not invite lump sum contributions for any targeted rate. Unless otherwise stated, the targeted rates described below will be used as sources of funding for each year of the Long-term Plan 2018-2028.

Water Quality Targeted Rate

Background

The council is funding an additional investment from 2018/2019 to 2027/2028 to clean up Auckland’s waterways. The rate will fund expenditure within the following activities: Stormwater Management.

Activities to be funded

The Water Quality Targeted Rate (WQTR) will be used to help fund the capital costs of investment in cleaning up Auckland’s waterways.

How the rate will be assessed

A differentiated targeted rate will be applied on the capital value of all rateable land except land categorised as uninhabited Islands as defined for rating purposes. The business differential ratio will be set so that 25.8 per cent of the revenue requirement comes from businesses.  A targeted rate of $0.00010677 (including GST) per dollar of capital value will be applied to all rateable land categorised as business (Urban business and Rural business) as defined for rating purposes, and $0.00006076 (including GST) per dollar of capital value to all rateable land not categorised as business (Urban residential, Rural residential, Farm and lifestyle, Urban moderate-occupancy online accommodation provider, Rural moderate-occupancy online accommodation provider, Urban medium-occupancy online accommodation provider, Rural medium-occupancy online accommodation provider, and No road access) as defined for rating purposes. This is estimated to produce around $41 million (excluding GST) for 2018/2019, $10.6 million from business and $30.4 million from non-business.

Natural Environment Targeted Rate

Background

The council is funding an additional investment from 2018/2019 to 2027/2028 to enhance Auckland’s natural environment. The rate will fund expenditure within the following activities: Regional environmental services.

Activities to be funded

The Natural Environment Targeted Rate (NETR) will be used to help fund the capital and operating costs of investment to deliver enhanced environmental outcomes.

How the rate will be assessed

A differentiated targeted rate will be applied on the capital value of all rateable land except land categorised as uninhabited Islands as defined for rating purposes. The business differential ratio will be set so that 25.8 per cent of the revenue requirement comes from businesses.  A targeted rate of $0.00007603 (including GST) per dollar of capital value will be applied to all rateable land categorised as business (Urban business and Rural business) as defined for rating purposes, and $0.00004326 (including GST) per dollar of capital value to all rateable land not categorised as business (Urban residential, Rural residential, Farm and lifestyle, Urban moderate-occupancy online accommodation provider, Rural moderate-occupancy online accommodation provider, Urban medium-occupancy online accommodation provider, Rural medium-occupancy online accommodation provider, and No road access) as defined for rating purposes. This is estimated to produce around $29.1 million (excluding GST) for 2018/2019, $7.5 million from business and $21.6 million from non-business.

Waste Management targeted rate

Background

The benefit of the provision of waste management services in public areas e.g. public litter bins is funded through the general rate. Privately generated waste is funded through a mixture of targeted rates and pay as you throw charges.

The refuse, recycling, inorganic collection and other waste management services in Auckland are being standardised under the Waste Management and Minimisation Plan (WMMP).  The service will be rolled out across the region gradually until full coverage is achieved in 2020/2021.  Refuse collection is also being standardised.  All areas will move to pre-paid bin collection.  In 2018/2019 Papakura will be the first area to receive a food scraps collection service. Papakura is moving to pay as you throw refuse bins in 2018.

Solid waste targeted rates for 2018/2019 include:

  • a region-wide base rate to cover the cost of recycling, inorganic collection, resource recovery centres, the Hauraki Gulf Islands subsidy and other regional waste services
  • a standard refuse rate will apply in the former Auckland City and the former Manukau City to fund refuse collection
  • an additional targeted rate for Papakura to cover the cost of the food scraps collection
  • additional rates may apply to properties that request additional recycling or refuse services.

Where user charges currently apply, these will continue.

The council is implementing the Auckland WMMP. Information on the plan can be found on the council’s website.

Activities to be funded

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

How the rate will be assessed

For land outside of the district of the former Auckland City Council where a service is provided or available, the targeted rate for the base service and the standard refuse service (for the former Manukau City) and the food scraps service (for the former Papakura District), will be charged on a per SUIP basis. See the UAGC section prior for the council’s definition of a SUIP. The standard refuse service includes one 120 litre refuse bin (or equivalent).

For land within the district of the former Auckland City Council, the targeted rate for the base service and the standard refuse service will be charged based of the number and type of services supplied or available to each rating unit. For rating units made up of one SUIP, the council will provide one refuse collection service. For rating units made up of more than one SUIP, the council will provide the same service as was provided at 30 June 2018, unless otherwise informed by the owner of the rating unit (that is, at least one base service and one refuse collection service). Land which has an approved alternative service will be charged the waste service charge that excludes the approved alternative service or services.

For land within the former district of Auckland City and Manukau City, a large refuse rate will apply, on top of the standard refuse rate, if a 240 litre refuse bin is supplied instead of the standard 120 litre bin.

For all land across Auckland, an additional recycling rate will apply if an additional recycling service is supplied.

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

The following table sets out the waste management targeted rates to be applied in 2018/2019. This is estimated to produce around $78.7 million (excluding GST) for 2018/2019.

Waste management targeted rates
ServiceDifferential group

Amount of targeted rate for 2018/2019 (including GST) $

Charging basis

Share of targeted rate (excluding GST) ($)

Base service Rating units in the former Auckland City

100.39

Per service available

14,298,146

Rating units in the former Franklin District, Manukau City, North Shore City, Papakura District, Rodney District and Waitakere City

100.39

Per SUIP

32,642,193

Base service excluding recyclingRating units in the former Auckland City

35.25

Per service available

802,002

Standard refuseRating units in the former Auckland City

123.78

Per service available

17,490,394

Rating units in the former Manukau City

123.78

Per SUIP

11,944,103

Large refuseRating units in the former Auckland City and Manukau City

58.18

Per service available

463,776

Additional recyclingAll rating units

65.14

Per service available

83,453

Food scrapsRating units in the former Papakura District

67.00

Per SUIP

995,917

For the avoidance of doubt, properties that opt out of one or more council services in the former Auckland City area will be rated as below:

  • land which has an approved alternative refuse service will be charged the base service rate ($100.39)
  • land which has an approved alternative recycling service will be charged the standard refuse rate ($123.78) plus the base service excluding recycling rate ($35.25)
  • land which has approved alternative refuse and recycling services will be charged the base service excluding recycling rate ($35.25).

Accommodation provider targeted rate

Background

Auckland Council, through Auckland Tourism, Events, and Economic Development (ATEED), has a strong focus on developing Auckland’s visitor economy into a sustainable year-round industry, including working with industry partners such as Tourism New Zealand and Auckland International Airport Limited to attract high-value visitors, and facilitating the establishment of world-class attractions. The Auckland Convention Bureau team attracts business events which inject millions annually into the economy.

ATEED is also focused on continuing to expand Auckland as a world-leading events city through attracting, delivering and/or supporting an annual portfolio of more than 30 major events.

Activities to be funded

The Accommodation provider targeted rate will be used to help part fund the costs of visitor attraction, major events and destination and marketing which are part of council’s “economic growth and visitor economy” activity. The rate will apply from 2018/2019.

How the rate will be assessed

A differentiated targeted rate will be assessed on capital value and applied to all land in Zones A and B defined as business, moderate-occupancy online accommodation provider, and medium-occupancy online accommodation provider for rating purposes operated as Tier one, two, three, four, five, or six accommodation. The capital value to which the targeted rate applies excludes the portion of value not attributable to the provision of commercial accommodation.

The rate will be differentiated by provider type and by location as laid out below.

Provider type

The rate will be differentiated by provider type as described in the categories of accommodation below:

  1. hotels
  2. motels and motor inns
  3. lodges
  4. pub accommodation
  5. serviced apartments
  6. campgrounds, motor parks, and holiday parks
  7. backpackers and short stay hostels
  8. bed and breakfasts and homestays.
  9. high-occupancy online accommodation provider (residences let out on a short-term basis, via online web-based accommodation services that offer short-term rental accommodation via peer-to-peer online marketplace such as Airbnb and bookabach, for more than 180 nights in the 12 months ending 30 June of the previous financial year)
  10. moderate-occupancy online accommodation provider (residences let out on a short-term basis, via online web-based accommodation services that offer short-term rental accommodation via peer-to-peer online marketplace such as Airbnb and bookabach, for more than 135 nights and less than 181 nights in the 12 months ending 30 June of the previous financial year)
  11. medium-occupancy online accommodation provider (residences let out on a short-term basis, via online web-based accommodation services that offer short-term rental accommodation via peer-to-peer online marketplace such as Airbnb and bookabach, for more than 28 nights and less than 136 nights in the 12 months ending 30 June of the previous financial year)

Long-stay residential accommodation is excluded from liability for the rate. Note that some motor inns, campgrounds, motor parks or holiday parks may be primarily long-stay accommodation and treated accordingly where appropriate supporting evidence can be provided. Additionally, any portion of commercial accommodation contracted for emergency housing by the Ministry of Social Development will be excluded from liability for the rate.

Where an accommodation operator offers differing accommodation types from one establishment then the different parts should be treated according to their differential category use. For example, many campgrounds, motor parks, and holiday parks offer a mixture of self-contained units (similar to motels), cabins (similar to backpackers), and camp sites.

Provider types will be grouped into the following seven tiers:

  • Tier 1: hotels, serviced apartments and high-occupancy online accommodation providers*
  • Tier 2: motels and motor inns, lodges, pub accommodation, and serviced apartments and high-occupancy online accommodation providers not included in Tier 1
  • Tier 3: moderate-occupancy online accommodation providers that have characteristics similar to hotels (different to motels as described above)
  • Tier 4: moderate-occupancy online accommodation providers that have characteristics similar to motels (as described above)
  • Tier 5: medium-occupancy online accommodation providers that have characteristics similar to hotels (different to motels as described above)
  • Tier 6: medium-occupancy online accommodation providers that have characteristics similar to motels (as described above)
  • Tier 7: other accommodation providers such as backpackers, short stay hostels, bed and breakfasts, homestays and campgrounds.

* serviced apartments  and high-occupancy online accommodation providers that have characteristics similar to motels (such as parking provided directly outside the apartment, managers accommodation on-site, buildings are 1 or 2 levels) will be classified as Tier 2 for the purposes of establishing liability for the Accommodation Provider targeted rate.

Location

The rate will also be differentiated by location as described in the zones below:

  • Zone A: accommodation providers located in local board areas of Albert-Eden, Devonport-Takapuna, Mangere-Ōtāhuhu, Maungakiekie-Tamaki, Ōrākei, Waitematā.
  • Zone B: accommodation providers located in local board areas of Henderson-Massey, Hibiscus and Bays, Howick, Kaipātiki, Manurewa, Ōtara-Papatoetoe, Puketāpapa, Upper Harbour, Waiheke, Whau.
  • Zone C: accommodation providers located in local board areas of Franklin, Great Barrier, Papakura, Rodney and Waitakere Ranges.
Differential ratios

The table below sets out the differential ratios that are applied to the differential categories described above for the Accommodation provider targeted rate:

Location

Provider type: Tier 1

Provider type: Tier 2

Provider type: Tier 3

Provider type: Tier 4

Provider type: Tier 5

Provider type: Tier 6

Zone A

1.0

0.6

0.50

0.30

0.25

0.15

Zone B

0.5

0.3

0.25

0.15

0.125

0.075

Accommodation provider targeted rate

The following table sets out the Accommodation provider targeted rate to be applied to the differential categories described above for 2018/2019. This is estimated to produce around $13.68 million (excluding GST) for 2018/2019.

Rate in the dollar to be based on the portion of capital value of the rating unit used for commercial accommodation (including GST) ($)

Location

Provider type: Tier 1

Provider type: Tier 2

Provider type: Tier 3

Provider type: Tier 4

Provider type: Tier 5

Provider type: Tier 6

Zone A

0.00567049

0.00340230

0.00283525

0.00170115

0.00141762

0.00085057

Zone B

0.00283525

0.00170115

0.00141762

0.00085057

0.00070881

0.00042529

Accommodation located in Zone C or used for Tier 7 purposes will not be liable for the Accommodation provider targeted rate.

City centre targeted rate

Background

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

Activities to be funded

The City Centre redevelopment programme aims to enhance the city centre as a place to work, live, visit and do business. It achieves this by providing a high-quality urban environment, promoting the competitive advantages of the city centre as a business location, and promoting the city centre as a place for high-quality education, research and development. The programme intends to reinforce and promote the city centre as a centre for arts and culture, with a unique identity as the heart and soul of Auckland.  The rate will fund expenditure within the following activities: Regional planning; Roads and footpaths; Local parks, sports and recreation.

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

How the rate will be assessed

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

A rate in the dollar of $0.00126779 (including GST) of rateable capital value will be applied to business land in 2018/2019. This is estimated to produce around $21.3 million (excluding GST) for 2018/2019.

A fixed rate of $60.42 (including GST) per SUIP (see UAGC section prior for the council's definition of a SUIP) will be applied to residential, urban moderate-occupancy online accommodation provider, and urban medium-occupancy online accommodation provider land in 2018/2019. This is estimated to produce around $0.96 million (excluding GST) for 2018/2019.

Rodney Local Board Transport Targeted Rate

Background

The council is funding additional transport investment to deliver improved transport outcomes in the Rodney Local Board area. The rate will fund expenditure within the following activities: Roads and footpaths and Public transport and travel demand management.

Activities to be funded

The Rodney Local Board Transport Targeted Rate (RLBTTR) will be used to help fund the capital and operating costs of additional transport investment and services.

How the rate will be assessed

The targeted rate will be applied as an amount per SUIP (see UAGC section prior for the council's definition of a SUIP) on all rateable land in the Rodney Local Board area except land categorised as uninhabited Islands as defined for rating purposes. The amount of the targeted rate will be $150 (including GST) per SUIP. This is estimated to produce around $3.9 million (excluding GST) for 2018/2019.

Business Improvement District targeted rates

Background

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

Activities to be funded

The main objectives of the BID programmes are to enhance the physical environment, promote business attraction, retention and development, and increase employment and local business investment in BID areas. The programmes may also involve activities intended to identify and reinforce the unique identity of a place and to promote that identity as part of its development.  The rate will fund expenditure within the following activities: Local planning and development – locally driven initiatives, Local planning and development – asset based services.

How the rates will be assessed

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

The BID targeted rates will be assessed using a fixed rate and value-based rate on the capital value of the property. Each BID area may recommend to council that part of its budget be funded from a fixed rate of up to $575 (including GST) per rating unit. The remaining budget requirement will be funded from a value-based rate for each area and be applied as a rate in the dollar. There will be different rates for each BID programme.

The table below sets out the budgets and the rates for each BID area that the council will apply in 2018/2019. This is estimated to produce around $17.7 million (excluding GST) in targeted rates revenue for 2018/2019.

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

BID area

Amount of BID grant 2018/2019 (excluding GST) ($)

Amount of BID targeted rate 2018/2019

(excluding GST) ($)

Amount to be funded by fixed charge for 2018/2019

(excluding GST) ($)

Fixed rate per rating unit for 2018/2019 (including GST) ($)

Amount to be funded by property value rate based on the capital value of the rating unit for 2018/2019

(excluding GST) ($)

Rate in the dollar for 2018/2019 to be multiplied by the capital value of the rating unit

(including GST) ($)

Avondale

140,000

140,000

0

0.00

140,000

0.00116859

Birkenhead

187,000

189,158

0

0.00

189,158

0.00088548

Blockhouse Bay

58,000

58,000

0

0.00

58,000

0.00144837

Browns Bay

150,000

149,925

0

0.00

149,925

0.00053238

Devonport

120,000

120,206

17,391

250.00

102,815

0.00061385

Dominion Road

180,000

179,007

0

0.00

179,007

0.00052696

Ellerslie

152,000

152,000

0

0.00

152,000

0.00192286

Glen Eden

91,920

91,920

0

0.00

91,920

0.00107244

Glen Innes

166,000

167,124

0

0.00

167,124

0.00104201

Greater East Tāmaki

500,000

501,809

332,866

195.00

168,943

0.00003089

Heart of the City

4,643,315

4,656,465

0

0.00

4,656,465

0.00042166

Howick

167,772

167,772

0

0.00

167,772

0.00088557

Hunters Corner

126,590

126,629

0

0.00

126,629

0.00072542

Karangahape Road

425,648

448,579

0

0.00

448,579

0.00051298

Kingsland

210,000

212,271

0

0.00

212,271

0.00039396

Mairangi Bay

63,000

63,000

5,000

250.00

58,000

0.00126774

Māngere Bridge

28,800

28,800

0

0.00

28,800

0.00140697

Māngere East Village

6,100

6,100

0

0.00

6,100

0.00029693

Māngere Town

284,949

284,949

0

0.00

284,949

0.00401509

Manukau Central

490,000

490,376

0

0.00

490,376

0.00032794

Manurewa

142,470

142,626

0

0.00

142,626

0.00092294

Milford

132,000

126,616

0

0.00

126,616

0.00054761

Mt Eden Village

89,035

90,065

0

0.00

90,065

0.00056159

New Lynn

176,091

176,091

0

0.00

176,091

0.00054930

Newmarket

1,634,409

1,636,658

0

0.00

1,636,658

0.00066205

North Harbour

690,621

686,316

328,423

150.00

357,893

0.00009373

North West District

180,000

181,461

91,086

250.00

90,374

0.00020209

Northcote

120,000

120,000

0

0.00

120,000

0.00236693

Old Papatoetoe

113,090

113,090

0

0.00

113,090

0.00146794

Onehunga

405,000

405,937

0

0.00

405,937

0.00109896

Orewa

232,220

221,673

0

0.00

221,673

0.00083269

Ōtāhuhu

628,425

622,045

0

0.00

622,045

0.00064901

Ōtara

90,219

90,219

0

0.00

90,219

0.00155399

Panmure

422,759

427,288

0

0.00

427,288

0.00142816

Papakura

250,000

250,275

0

0.00

250,275

0.00073930

Parnell

815,000

797,613

0

0.00

797,613

0.00051100

Ponsonby

471,586

458,671

0

0.00

458,671

0.00058283

Pukekohe

440,000

436,843

0

0.00

436,843

0.00050761

Remuera

242,564

242,049

0

0.00

242,049

0.00111725

Rosebank

430,000

425,467

0

0.00

425,467

0.00039412

South Harbour

81,325

81,324

0

0.00

81,324

0.00044770

St Heliers

138,484

138,485

0

0.00

138,485

0.00105659

Takapuna

403,541

402,920

0

0.00

402,920

0.00036465

Te Atatu

92,000

88,693

0

0.00

88,693

0.00128390

Torbay

15,415

15,415

0

0.00

15,415

0.00090904

Uptown

270,000

267,084

0

0.00

267,084

0.00014740

Waiuku

122,750

122,963

0

0.00

122,963

0.00099810

Wiri

670,000

672,883

0

0.00

672,883

0.00021195

Total

17,690,098

17,674,861

774,766

 

16,900,095

 

Note to the table: Targeted rate amounts include surpluses and deficits (if any) carried over from 2016/2017 so may differ from grant amounts.

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

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

Māngere-Ōtāhuhu and Ōtara-Papatoetoe swimming pool targeted rates

Background

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

Activities to be funded

To fund the cost of free adult entry to swimming pool facilities in the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas.  The rate will fund expenditure within the following activity: Local parks sport and recreation – asset based services.

How the rate will be assessed

These local activity targeted rates apply to all residential, urban moderate-occupancy online accommodation provider, urban medium-occupancy online accommodation provider, rural moderate-occupancy online accommodation provider, and rural medium-occupancy online accommodation provider land, as defined for rating purposes that are located in the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas.

The local activity targeted rate will be assessed using a fixed rate applied to each SUIP (see UAGC section prior for the council's definition of a SUIP) of a residential property, as defined for rating purposes, in the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas. There will be a different fixed rate for each local board area.

The following table sets out the local activity targeted rates that apply in 2018/2019 for the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas. This is estimated to produce around $1.1 million (excluding GST) for 2018/2019.

Local activity targeted rates
Local board area

Fixed rate for each separately used or inhabited part of a rating unit for 2018/2019 (including GST) ($)

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

Māngere-Ōtāhuhu

31.94

519,793

Ōtara-Papatoetoe

29.94

558,731

Riverhaven Drive targeted rate

The council has constructed Riverhaven Drive for the benefit of the rating units in the immediate area. The construction of the road and the payment of the rate have been agreed with the association representing the owners of the rating units. The Riverhaven Drive targeted rate is used to repay the council for the cost of the road, including interest costs. The rate will fund expenditure within the following activities: Local planning and development – locally driven initiatives, Roads and footpaths.

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

The council will apply a uniform rate of $10,317.02 (including GST) per rating unit for 2018/2019. This is estimated to produce around $72,000 (excluding GST) for 2018/2019.

Glorit Flood Gate Restoration targeted rate

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

The following table sets out the Glorit Flood Gate Restoration targeted rates for 2018/2019. This is estimated to produce around $38,000 (excluding GST) for 2018/2019.

Glorit Flood Gate Restoration targeted rate

Valuation numberLegal description (abbreviated)

Area of benefit in hectares

Amount of targeted rate for 2018/2019
(including GST) ($)

00910-00102Sec 27 SO 59120

245

40,689.21

00910-00502Lot 5 DP 127940

2

332.15

00910-12128597Lot 1 DP 497349

17.5

2,906.37

Waitākere rural sewerage targeted rate

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

For 2018/2019 the council will apply a uniform rate of $194.54 (including GST) for each on-site waste management system utilised in conjunction with the rating unit. This is estimated to produce around $0.8 million (excluding GST) for 2018/2019.

Retro-fit your home targeted rate

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

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

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

The following table sets out the Retro-fit Your Home targeted rate that the council will apply in 2018/2019. This is estimated to produce around $6.2 million (excluding GST) for 2018/2019.

Retro-fit your home targeted rate

Year of repayment

Rate in the dollar for 2018/2019 to be multiplied by the ratepayers outstanding balance as at 30 June 2018 (including GST) ($)

1

0.14678592

2

0.16045527

3

0.17812329

4

0.20178998

5

0.23505519

6

0.28511857

7

0.36877905

Kumeu Huapai Riverhead wastewater targeted rate

The Kumeu Huapai Riverhead wastewater targeted rate is set on land that has received financial assistance from Auckland Council for the purchase and installation of equipment for pumping waste from the property to Watercare’s pressurised wastewater scheme.  The rate will fund expenditure within the following activity: Organisational support.

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

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

The following table sets out the Kumeu Huapai Riverhead wastewater targeted rate that council will apply in 2018/2019. This is estimated to produce around $5,800 (excluding GST) for 2018/2019.

Kumeu Huapai Riverhead wastewater targeted rate

Year of repayment

Rate in the dollar for 2018/2019 to be multiplied by the ratepayers outstanding balance as at 30 June 2018 (including GST) ($)

1

0.11952911

2

0.12467972

3

0.13067747

4

0.13773481

6

0.15630249

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

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

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

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

The following table sets out the On-site wastewater systems (septic tank) upgrades targeted rate that the council will apply in 2018/2019. This is estimated to produce around $2,000 (excluding GST) for 2018/2019.

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

Year of repayment

Rate in the dollar for 2018/2019 to be multiplied by the ratepayers outstanding balance as at 30 June 2018 (including GST) ($)

1

0.11952911

Point Wells wastewater targeted rate

The Point Wells wastewater targeted rate is set on land that received financial assistance to connect to the pressure wastewater collection (PWC) scheme in the Point Wells area.  The rate will fund expenditure within the following activity: Organisational support.

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

The following table sets out the Point Wells wastewater targeted rate that council will apply in 2018/2019. This is estimated to produce around $14,700 (excluding GST) for 2018/2019.

Point Wells wastewater targeted rate

Total assistance provided

Amount of targeted rate per rating unit for 2018/2019 (including GST) ($)

$8,000

$674.60

$8,500

$716.76

$9,000

$758.92

$9,500

$801.08

$10,000

$843.25

Jackson Crescent wastewater targeted rate

The Jackson Crescent wastewater targeted rate is set on the rating unit that received financial assistance to connect to the pressure wastewater collection (PWC) scheme in Jackson Crescent, Martins Bay area.  The rate will fund expenditure within the following activity: Organisational support.

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

The council will apply a uniform rate of $608.88 (including GST) per rating unit in 2018/2019. This is estimated to produce $529 (excluding GST) for 2018/2019.

Rates payable by instalment

Rates will be payable by four equal instalments due on:

  • Instalment 1: 31 August 2018
  • Instalment 2: 28 November 2018
  • Instalment 3: 28 February 2019
  • Instalment 4: 28 May 2019.

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

Penalties on rates not paid by the due date

The council will apply a penalty of 10 per cent of the amount of rates assessed under each instalment in the 2018/2019 financial year that are unpaid after the due date of each instalment. Any penalty will be applied to unpaid rates on the day following the due date of the instalment.

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

Early payment discount policy

Objectives

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

Conditions and criteria

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

Delegation of decision-making

Decisions about applying the discount will be made by staff in accordance with the Chief Executive’s delegation register.

Review process

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

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

Discount in 2018/2019

The discount is 0.87 per cent for 2018/2019.

Sample properties

The following section is intended to provide examples of the individual rates for 2018/2019.The following targeted rates are not shown:

  • Business improvement district targeted rates
  • Riverhaven Drive targeted rate
  • Glorit Flood Gate Restoration targeted rate
  • Point Wells wastewater targeted rate
  • Jackson Crescent wastewater targeted rate
  • On-site wastewater systems (septic tank) upgrades targeted rate.

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

General rates, Water Quality Targeted Rate and Natural Environment Targeted Rate

The table below shows indicative rates (general rate, Water Quality Targeted Rate, and Natural Environment Targeted Rate) for fully rateable rating units with one SUIP at different values for each of the main differential categories. An extra UAGC charge should be added for each extra SUIP the rating unit has.

Differential category

Capital value

UAGC

(including GST) ($)

General rate (including GST) ($)

Water quality targeted rate (including GST) ($)

Natural Environment targeted rate (including GST)

Total rates (including GST) ($)

Urban - business

500,000

414

2,561

53

38

3,067

1,500,000

414

7,684

160

114

8,372

3,000,000

414

15,368

320

228

16,330

10,000,000

414

51,227

1,068

760

53,469

Urban - residential

500,000

414

917

30

22

1,383

750,000

414

1,375

46

32

1,867

1,000,000

414

1,833

61

43

2,351

1,500,000

414

2,750

91

65

3,320

Rural - business

500,000

414

2,305

53

38

2,811

1,500,000

414

6,916

160

114

7,604

3,000,000

414

13,831

320

228

14,794

10,000,000

414

46,104

1,068

760

48,346

Rural - residential

500,000

414

825

30

22

1,291

750,000

414

1,237

46

32

1,729

1,000,000

414

1,650

61

43

2,168

1,500,000

414

2,475

91

65

3,045

Farm/lifestyle

500,000

414

733

30

22

1,199

1,500,000

414

2,200

91

65

2,770

3,000,000

414

4,400

182

130

5,126

10,000,000

414

14,665

608

433

16,120

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

Waste management targeted rate

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

Former council areaServiceTotal amount of charges (including GST) ($)
Number of waste management charges

1

2

3

5

10

Auckland City Full service (base service plus standard refuse service)

224

448

673

1,121

2,242

Opt out of refuse

100

201

301

502

1,004

Opt out of recycling

159

318

477

795

1,590

Opt out of both refuse and recycling

35

71

106

176

353

Additional recycling

65

130

195

326

651

Manukau CityFull service (base service plus standard refuse service)

224

448

673

1,121

2,242

Papakura District, North Shore City, Waitākere City, Franklin District and Rodney DistrictBase service 

100

201

301

502

1,004

Papakura District  Food scraps

67

134

201

335

670

Accommodation provider targeted rate

Some rating units that provide visitor accommodation are liable for the Accommodation provider targeted rate.

Rating units in Zone A that provide visitor accommodation

Capital value

Zone A – Tier 1 rate (including GST) ($)

Zone A – Tier 2 rate (including GST) ($)

Zone A – Tier 3 rate (including GST) ($)

Zone A – Tier 4 rate (including GST) ($)

Zone A – Tier 5 rate (including GST) ($)

Zone A – Tier 6 rate (including GST) ($)

500,000

2,835

1,701

1,418

851

709

425

1,500,000

8,506

5,103

4,253

2,552

2,126

1,276

3,000,000

17,011

10,207

8,506

5,103

4,253

2,552

10,000,000

56,705

34,023

28,352

17,011

14,176

8,506

Rating units in Zone B that provide visitor accommodation

Capital value

Zone B – Tier 1 rate (including GST) ($)

Zone B – Tier 2 rate (including GST) ($)

Zone B – Tier 3 rate (including GST) ($)

Zone B – Tier 4 rate (including GST) ($)

Zone B – Tier 5 rate (including GST) ($)

Zone B – Tier 6 rate (including GST) ($)

500,000

1,418

851

709

425

354

213

1,500,000

4,253

2,552

2,126

1,276

1,063

638

3,000,000

8,506

5,103

4,253

2,552

2,126

1,276

10,000,000

28,352

17,011

14,176

8,506

7,088

4,253

City centre targeted rate

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

Business rating units located in the city centre area

Capital value

Rate (including GST) ($)

500,000

634

1,500,000

1,902

3,000,000

3,803

10,000,000

12,678

Residential rating units located in the city centre area

Number of separately used or inhabited parts

Rate (including GST) ($)

1

60

2

121

3

181

5

302

10

604

Rodney Local Board Transport Targeted Rate

Rating units in the Rodney local board area are liable for the Rodney Local Board Transport Targeted Rate.

Number of separately used or inhabited parts

1

2

3

5

10

Total targeted rate amount (including GST) ($)

$150

$300

$450

$750

$1,500

Swimming pool targeted rates

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

Number of separately used or inhabited parts

1

2

3

5

10

Residential rating units located in Māngere-Ōtāhuhu - Total targeted rate amount (including GST) ($)

32

64

96

160

319

Residential rating units located in Ōtara-Papatoetoe - Total targeted rate amount (including GST) ($)

30

60

90

150

299

Waitākere rural sewerage targeted rate

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

Number of septic tanks pumped out once every 3 years

1

2

3

5

10

Residential rating units located in Waitākere City that have septic tanks pumped out by council - Total targeted rate amount (including GST) ($)

195

389

584

973

1,945

Retro-fit your home targeted rate

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

Outstanding balance at beginning of 2018/2019

Rate for 1st year of repayment (including GST) ($)

Rate for 2nd year of repayment (including GST) ($)

Rate for 3rd year of repayment (including GST) ($)

Rate for 4th year of repayment (including GST) ($)

Rate for 5th year of repayment (including GST) ($)

Rate for 6th year of repayment (including GST) ($)

Rate for 7th year of repayment (including GST) ($)

1,500

220

241

267

303

353

428

553

2,000

294

321

356

404

470

570

738

2,500

367

401

445

504

588

713

922

3,500

514

562

623

706

823

998

1,291

Kumeu Huapai Riverhead wastewater targeted rate

Ratepayers who have taken advantage of the Kumeu Huapai Riverhead wastewater scheme repay the financial assistance provided via a targeted rate.

Outstanding balance at beginning of 2018/2019

Rate for 1st year of repayment (including GST) ($)

Rate for 2nd year of repayment (including GST) ($)

Rate for 3rd year of repayment (including GST) ($)

Rate for 4th year of repayment (including GST) ($)

Rate for 6th year of repayment (including GST) ($)

5,000

598

623

653

689

782

7,000

837

873

915

964

1,094

9,000

1,076

1,122

1,176

1,240

1,407

11,000

1,315

1,371

1,437

1,515

1,719

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3.3 Financial reporting and prudence benchmarks

Long-term plan disclosure statement for the period commencing 1 July 2018 to 30 June 2028

What is the purpose of this statement?

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

The council is required to include this statement in its 10-year budget in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement.

Rates affordability benchmark

For the purposes of this section:

Rates income: General rates including remissions, less any internal rate charges. This does not include income arising from water and wastewater charges and targeted rates that apply to specific groups of ratepayers. The group meets the rates affordability benchmark if:                                                                                

  • its planned rates income equals or is less than each quantified limit on rates; and                
  • its planned rates increases equal or are less than each quantified limit on rates increases.
Rates (income) affordability

The following graph compares the group's planned rates with the quantified limit on rates contained in the financial strategy included in this 10-year budget. The quantified limit is the amount of income from rates, in millions of dollars, represented by the black bars in the graph. This limit includes targeted rates that apply generally across Auckland and refers to the overall average increase across all ratepayers (including different ratepayer groups such as business, farm and lifestyle ratepayers).  Targeted rates that apply to specific groups of ratepayers are excluded.

Chart: Rates (income) affordability
Rates (income) affordability, table of the charted information follows
Table of the charted information
  AP 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Planned rates 1,604 1,679 1,752 1,846 1,944 2,047 2,155 2,269 2,389 2,514 2,645
Quantified limit rates per LTP ($) blank  1,693 1,786 1,884 1,987 2,097 2,212 2,334 2,462 2,597 2,740

Table of the charted information ends.

Rates (increases) affordability 

The following graph compares the group's planned rates increases with a quantified limit on rates increases contained in the financial strategy included in this 10-year budget. The quantified limit is to maintain average rates increases for existing ratepayers to 3.5 per cent per annum[12]. This limit includes targeted rates that apply generally across Auckland and refers to the overall average increase across all ratepayers (including different ratepayer groups such as business, farm and lifestyle ratepayers).  Targeted rates that apply to specific groups of ratepayers are excluded.

Chart: Rates (increases) affordability
Rates (increases) affordability, table of the charted information follows
Table of the charted information
  AP 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Quantified limit rates per LTP ($) 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%
Planned rates 2.5% 2.68% 2.34% 3.36% 3.32% 3.29% 3.27% 3.27% 3.28% 3.24% 3.21%

Table of the charted information ends.

Note to chart:

For 2018/2019 and 2019/2020, the average rates increase will be well below the 3.5 per cent limit because of the decision to increase average general rates by 2.5 per cent in those years.

For residential ratepayers the average overall rates increase (including general rates and targeted rates applied generally across Auckland) will also be 2.5 per cent for 2018/2019. This is because the impact of the introduction of the water quality and natural environment targeted rates is offset by the impact of the Interim Transport Levy finishing. The overall average rates increase across all ratepayer groups is slightly higher at 2.7 per cent, because those new targeted rates and the Interim Transport Levy have different impacts on business and farm/lifestyle ratepayers.

The average overall rates increase for years two and beyond are slightly below the 2.5 per cent and 3.5 per cent average general rates increases. This is because the new targeted rates do not increase each year.

Debt affordability benchmark

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

The following graph compares the council’s planned debt with the quantified limit on borrowing contained in the financial strategy included in this 10-year budget and council’s treasury management policy. The quantified limit is measured in terms of net debt as a percentage of total revenue, and the quantified limit is 270 per cent.

Chart: Debt affordability benchmark
Debt affordability benchmark, table of the charted information follows
Table of the charted information
  AP 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Planned 244% 254% 260% 264% 263% 264% 264% 259% 258% 252% 243%
Quantified limit rates per LTP ($) 270% 270% 270% 270% 270% 270% 270% 270% 270% 270% 270%

Table of the charted information ends.

Balanced budget benchmark

The following graph displays the group's total planned revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluation of property, plant, or equipment) as a percentage of planned operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant, or equipment). The group meets the benchmark if its planned revenue equals or is greater than its planned operating expenses.

Chart: Balanced budget benchmark
Balanced budget benchmark, table of the charted information follows
Table of the charted information
  AP 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Ratio 104% 108% 110% 110% 110% 109% 112% 112% 111% 112% 113%
Quantified limit 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Table of the charted information ends.

Essential services benchmark

The following graph displays the group's planned capital expenditure on network services as a proportion of expected depreciation on network services. The group meets the essential services benchmark if its planned capital expenditure on network services equals or is greater than expected depreciation on network services. Network services refer to infrastructure related to water supply, sewerage treatment and disposal, stormwater drainage, flood protection and control, roads and footpaths.

Chart: Essential services benchmark
Essential services benchmark, table of the charted information follows
Table of the charted information
 AP 2017/182018/192019/202020/212021/222022/232023/242024/252025/262026/272027/28
Ratio145%197%201%219%196%175%196%184%144%179%182%
Quantified limit100%100%100%100%100%100%100%100%100%100%100%

Table of the charted information ends.

Debt servicing benchmark

The following graph displays the group's planned borrowing costs as a proportion of planned revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluation of property, plant, or equipment).

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

Chart: Debt servicing benchmark
Debt servicing benchmark, table of the charted information follows
Table of the charted information
  AP
2017/18
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Revenue 3,989 4,341 4,593 4,789 4,975 5,112 5,423 5,624 5,775 6,056 6,338
Borrowing costs 481 467 514 562 594 611 631 643 660 676 685
Ratio 12% 11% 11% 12% 12% 12% 12% 11% 11% 11% 11%
Quantified limit 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%

Table of the charted information ends.

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3.4 Local Boards Funding Policy

1.   Purpose/Introduction

The Local boards funding policy sets out how local boards are funded to meet the costs of:

  • providing local activities
  • administration support.

2.   Background

Auckland Council’s 21 local boards have decision making responsibility for local activities. The full list of local activities is set out in the Allocation of decision making for non-regulatory activities found as 3.5 in volume 2. They include amongst others:

  • local recreation services e.g. swimming pools
  • local libraries
  • local parks
  • local events
  • local community development.

Funding for local activities is split into three parts based on the nature of the service provided and the allocation of decision making between the Governing Body and local boards.  The three classifications of activities are set out in the table below.

Nature of service

Nature of local board decision making role*

Examples of activities

Asset based services

Make decisions within parameters set by the Governing Body

Swimming pools, Libraries

Local parks

Locally driven initiatives

Make decisions on how locally driven initiative funding allocated from Governing Body is spent

Local events

Local community grants

Locally driven capital projects

Make decisions on how locally driven capital projects funding allocated from Governing Body is spent

Local Park improvements

Streetscape improvements

* Local boards make decisions on specific location, design, and build of new facilities, service standards, and renewals, within parameters set by the governing body. Local boards also decide on use of facilities, including change of use and leases. Local board’s decision making is set out in full in the “Allocation of decision making responsibility for non-regulatory activities” in the Long-term Plan.

Local boards have decision making responsibility for fees and charges for both asset based services and locally driven initiatives within any parameters set by the Governing Body.  For example, local boards can set the fees for adult entry to swimming pools but may not charge for the entry of children, under 16.

How local asset based services, locally driven initiatives, locally driven capital projects and administration support, will be funded is set out below.

3.   Funding for local asset based services

Local asset based services will be funded by:

  1. fees and charges collected from local asset based services for base fee levels set by the Governing Body
  2. plus any other revenue including grants, donations, and sponsorships
  3. plus any revenue from a targeted rate set to fund local asset based services
  4. plus general rate funding to meet the balance of costs for providing the services levels set by the Governing Body in the long-term plan for local asset based services being provided to each local board area.

4.   Funding for locally driven initiatives (operational funding)

4.1 Funding sources

The amount of budget available to each local board for locally driven initiatives is determined by:

  1. fees and charges collected from locally driven initiatives
  2. plus revenue from fees and charges for local asset based services in excess of that projected by the Governing Body where the local boards sets higher fees, (see section 3 above)
  3. minus revenue from fees and charges for local asset based services below that projected by the Governing Body where the local boards sets lower fees, (see section 3 above)
  4. plus any revenue from grants, donations, and sponsorships
  5. plus any revenue from a targeted rate set to fund local activities in the local board area
  6. plus an allocation from a budget pool for locally driven initiatives funded from the general rate.

4.2 Level of total budget available for locally driven initiatives

The total general rates funded budget available for locally driven initiatives will be set by the Governing Body and will be identified in the long-term plan or annual plan. 

4.3 Allocation of total budget pool

Each local board will be allocated a share of the total budget available after deducting the funding for the Great Barrier Island Local Board and the Waiheke Island Local Board, see section 4.4 below.  Each local board’s share of the budget will be equivalent to its share of the regional population adjusted for deprivation[13] and land area, excluding Great Barrier Island and Waiheke Island.  This is set out in the table on the next page.

Factor

Proportion of total general rate funded locally driven initiative budget

Local board share

Population*

90%

Local board population divided by the total population of all local boards***

Deprivation**

5%

Average local board deprivation divided by the total of the average deprivation of each local board***

Land area

5%

Local board land area divided by the total land area of all local boards***

* adjusted each year to reflect changes in population estimates provided by Statistics New Zealand

** based on the most recently available update of the Index of Deprivation provided by the Ministry of Health

*** excluding Great Barrier Island Local Board and Waiheke Local Board

4.4 Funding for Great Barrier Island Local Board and Waiheke Island Local Board

The amount of budget available for locally driven initiatives on Great Barrier Island and Waiheke Island is determined by:

  1. fees and charges collected from locally driven initiatives
  2. plus revenue from fees and charges for local asset based services in excess of that projected by the Governing Body where the local boards sets higher fees, (see section 3 above)
  3. minus revenue from fees and charges for local asset based services below that projected by the Governing Body where the local boards sets lower fees, (see section 3 above)
  4. plus any revenue from grants, donations, and sponsorships
  5. plus any revenue collected from targeted rates set to fund local activities
  6. plus a general rates allocation

General rates funding will be provided to meet the balance of the costs of providing locally driven initiatives on Great Barrier Island and the Waiheke Island. This will be based on the expenditure on these activities agreed with the Governing Body in their local board agreements each year net of revenue generated from the items in 1 to 5 above. 

4.5 Transition

The table below sets out the transition mechanism that will be applied from 2018/2019 onwards.

Local boards funded to the level of the allocation formula

Local boards funded above their allocation under the formula

Increases in the total budget for locally driven initiatives budget will be applied as per the formula

Locally driven initiatives budget will be held at its current absolute level (no increases for inflation) until it is exceeded by the allocation under the formula

4.6 Definition of local asset based services and locally driven initiatives

The Governing Body, after considering local board feedback, will determine which services are local asset based services and locally driven initiatives when the total budget for local activities is set.

5.   Funding allocation for locally driven initiatives (capital funding)

This funding enables local boards to deliver small local asset based projects, either directly, in partnership with the community, or through joint agreements between boards.

The budget available for locally driven capital projects will be set by the Governing Body and will be identified in the long-term plan or annual plan.  These funds will be allocated to local boards on the following basis:

  1. one per cent of the total fund allocated to the Great Barrier Island local board
  2. two per cent of the total fund allocated to Waiheke Island local board
  3. the remainder of the fund allocated to the remaining local boards, with each board’s share equivalent to its share of the regional population adjusted for deprivation and land area, as set out in the table below:

Factor

Proportion of budget for locally driven capital projects

Local board share

Population*

90%

Local board population divided by the total population of all local boards***

Deprivation**

5%

Average local board deprivation divided by the total of the average deprivation of each local board***

Land area

5%

Local board land area divided by the total land area of all local boards***

* adjusted each year to reflect changes in population estimates provided by Statistics New Zealand

** based on the most recently available update of the Index of Deprivation provided by the Ministry of Health

*** excluding Great Barrier Island Local Board and Waiheke Local Board

6.   Funding allocation for other purposes

The Governing Body may make available funds to local boards for purposes other than local asset based services, locally driven initiatives, locally driven capital projects or administrative support. These funds will be allocated to local boards on the same basis as funding for locally driven initiatives (capital funding).

7.   Funding allocation for administrative support

The funding for administrative support is allocated by adopting the following method:

a)     Allocation for the costs related to elected members in a local board - number of elected members multiplied by the budgeted cost per elected member

b)    Allocation for meeting other administrative costs - estimated cost of other administrative support for all local boards divided by the number of local boards.

In estimating the costs, the special circumstances of the Great Barrier Island and Waiheke Island are taken into consideration to ensure equitable allocation of funds.

8. Funding allocation for non-dedicated purposes

There will be no allocation of non-dedicated (general purpose) funding to local boards in the LTP 2018-2028.

9. Funding sources for funds allocated for local activities

Funding sources for funds allocated for local activities are set out in the Revenue and Financing policy.

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3.5 Allocation of Decision-Making Responsibility for Non-Regulatory Activities

Source of decision-making responsibilities

The Governing Body and local boards obtain their decision-making responsibilities from three sources:

(a)  Statutory decision-making responsibilities

The Governing Body and local boards have statutory responsibilities under the Local Government (Auckland Council) Act 2009 (Act).  These statutory responsibilities are not repeated in the allocation table.

Governing Body: The Governing Body is a local authority, and hence has the power of general competence under section 12 of the Local Government Act 2002. In addition, the Governing Body has specific statutory decision-making responsibility for the following:

  • The regulatory activities of Auckland Council (such as Unitary Plan, consenting, and bylaws)
  • Allocation of non-regulatory activities to either local boards or the Governing Body
  • Any non-regulatory activities of Auckland Council that are allocated to the Governing Body
  • Agreeing local board agreements with local boards
  • Emergency management
  • Compliance with the financial management requirements of section 101 of the Local Government Act (including the Annual Plan, the Long-term Plan, and financial policies)
  • Regional strategies and policies (such as the Auckland Plan and the Local Board Funding Policy)
  • Governance of Council-Controlled Organisations
  • Appointment of the Chief Executive and maintaining the capacity of Auckland Council to provide its services and facilities
  • Transport networks and infrastructure.

Local boards: The statutory role of local boards includes decision-making responsibility for the following:

  • Any non-regulatory activities of Auckland Council that are allocated to local boards
  • Adoption of local board plans
  • Agreement of local board agreements (with the Governing Body) and monitoring the implementation of local board agreements - this can include proposing a local targeted rate
  • Providing input into regional strategies, policies and plans
  • Proposing bylaws for the local area
  • Community engagement, consultation and advocacy.

Local boards are not local authorities but will act as such for specified allocated matters, or those matters set out in the Local Government (Auckland Council) Act 2009.

(b)  Delegation of decision-making responsibilities

The Governing Body can also delegate some of its decision-making responsibilities to local boards. To date the Governing Body has delegated the following decision-making responsibilities to local boards:

  • Input into notification decisions for resource consent applications
  • Authorising the destruction of wandering stock on Great Barrier Island, in accordance with the Impounding Act 1955 is delegated to the Great Barrier Local Board
  • Decision-making on operational cemeteries on Great Barrier Island is delegated to the Great Barrier Local Board.
  • Amendments to the Policy on Dogs in relation to any dog access rules in local parks, local beaches or local foreshore areas in their local board area
  • Making objections to liquor licensing applications under the Sale and Supply of Alcohol Act 2012
  • Making, amending or revoking alcohol bans, except in areas of regional significance.
  • Certain powers under the Reserve Act 1977 for local reserves: declaring a reserve (s.14(1)), classifying a reserve (s.16(1) or 16(2A), reclassifying a reserve (24(1)), and proposing the revocation of reserve status (s.24(1)) in order to manage the land under the Local Government Act 2002.

The Governing Body and local boards can also be delegated decision-making responsibilities from Auckland Transport. There are currently no delegations in place.

(c)  Allocation of decision-making for non-regulatory activities

The Governing Body is required by legislation to allocate decision-making responsibility for the non-regulatory activities of Auckland Council to either the Governing Body or local boards, in accordance with principles contained in section 17(2) of the Act.  This provides as follows:

a)     decision-making responsibility for a non-regulatory activity of the Auckland Council should be exercised by its local boards unless paragraph (b) applies:

b)    decision-making responsibility for a non-regulatory activity of the Auckland Council should be exercised by its Governing Body if the nature of the activity is such that decision-making on an Auckland-wide basis will better promote the well-being of the communities across Auckland because-

  1. the impact of the decision will extend beyond a single local board area; or
  2. effective decision making will require alignment or integration with other decisions that are the responsibility of the Governing Body; or
  3. the benefits of a consistent or co-ordinated approach across Auckland will outweigh the benefits of reflecting the diverse needs and preferences of the communities within each local board area.

Decision-making for non-regulatory activities can only be allocated to either the Governing Body or to a local board.  Where more than one local board has an interest in a local activity then section 16(3) of the Act provides that:

… a local board should collaborate and co-operate with 1 or more other local boards in situations where the interests and preferences of communities within each local board area will be better served by doing so.

The non-regulatory decision-making allocation is required to be identified in the Auckland Council’s Long-Term Plan and Annual Plans.  

Allocation of decision-making for non-regulatory activities

The allocation of decision-making responsibility to the Governing Body and to local boards for the non-regulatory activities of Auckland Council is set out in the following tables.  These will apply from 1 July 2018.

The allocation has been written on an inclusive basis. It does not contain an exhaustive list of all elements that make up an allocated activity. To aid interpretation, elements of the key decision-making responsibilities of local boards and the Governing Body are provided for each allocated activity.

It is intended that the allocation be interpreted on a principled basis. Given the broad range of activities undertaken by Auckland Council it is not possible to list in precise detail all elements that are allocated to a local board or the Governing Body. Instead the allocation is applied on a case-by-case basis.

This needs to take into account the principles of section 17 of the Local Government Auckland Council Act. The general principle is that a non-regulatory decision will be made by local boards unless the activity is such that decision-making on an Auckland-wide basis will better promote the well-being of the communities across Auckland.

Group of activities

Local Board non-regulatory responsibilities

Local boards are allocated decision-making responsibility for the following non-regulatory activities of Auckland Council.

Governing Body non-regulatory responsibilities

The Governing Body is allocated decision-making responsibility for the following non-regulatory activities of Auckland Council.

Local council services

and

Regionally delivered council services

Local governance including:

  • decision-making and oversight of decisions on local activities
  • development of local policy positions such as determining areas in which activities may take place and local service specifications
  • submissions  to government on legislation where it specifically relates to that local board area only
  • civic duties, engagements and functions in the local area, including citizenship ceremonies and recognition of volunteers.

Regional governance including:

  • decision-making and oversight of decision on regional activities
  • submissions to government on legislation including official submissions of Auckland Council incorporating local board views
  • regional civic duties, engagements and functions.

 

Explanatory notes: 

  • A local board does not have the power to make submissions or objections on matters where the council is exercising its regulatory responsibilities unless specifically delegated by the Governing Body.
  • Local boards have a statutory role identifying and communicating the interests and preferences of its communities in relation to policies, plans and bylaws.

Local planning and development including:

  • local place-shaping activities, including local leadership to create a local identity
  • local strategic visioning, policy making and planning within parameters set by regional strategies, policies and plans

Regional planning including:

  • Auckland Plan, area plans, regional spatial priority areas and prioritised development areas focusing on growth development and key infrastructure priorities
  • regional strategies, policies and plans
  • Auckland-wide place-shaping activities, including regional leadership to create Auckland’s identity.

 

Street environment and town centres including:

  • maintenance of the local street environment and local centres, within parameters set by the Governing Body
  • improvements to the local street environment and town centres excluding any improvements that are integral to centres prioritised for growth as set out in the Auckland Plan
  • naming of roads pursuant to section 319(1)(j) of the Local Government Act 1974.

Business area planning including:

  • local economic development plans, projects  and initiatives (including local centre branding and marketing and local business events) within parameters set by regional strategies, policies and plans
  • Business Improvement District (BID) programmes, including the strategic direction (in partnership with the business association), establishment of new BIDs within the parameters set by the BID policy and recommending BID targeted rates to the Governing Body.

Street environment and town centres including:

  • street environment and town centres strategy and policy, including the classification of town centres
  • centres that are prioritised for growth as set out in the Auckland Plan

Economic development including:

  • regional economic development strategy and policy, such as Auckland economic development strategy, investment framework and BID policy
  • international relationships, including entering into new relationships and ending existing relationships
  • Auckland-wide economic development programmes and initiatives, including regional business events, and branding and marketing for the city centre, metropolitan centres and centres prioritised for growth as set out in the Auckland Plan.

Explanatory notes:

  • Area plans will require a high degree of involvement from local boards.
  • Regional strategies and policies are not intended to be prescriptive or unduly restrict the decision-making role of local boards.  Where they relate to local activities, they provide regional parameters within which local boards then make decisions on local activities.
  • Development of the city centre waterfront is the responsibility of Panuku Development Auckland.
  • Auckland Transport has significant decision-making responsibilities within the street environment and town centres
  • A number of agencies will be involved in the delivery of transformation programmes.
  • Major events, tourism and visitor centres, and business attraction and development are the responsibility of ATEED

Local community services including:

Arts and culture including:

  • the specific location, design, build and fit out of new local arts and culture facilities within budget parameters agreed with the Governing Body
  • the use of local arts and culture facilities, including changes of use.
  • local arts and culture projects, initiatives and events
  • local public artwork and local public art programmes
  • local community funding and grants
  • tailoring regional arts and culture programmes and events to local needs.

 

Regional community services including:

Arts and culture including:

  • any new arts and culture facilities acquired for an Auckland-wide purpose or function
  • the number and general location of all new arts and cultural facilities and the prioritisation of major upgrades to all existing arts and culture facilities
  • the use of regional arts and  culture facilities.
  • regional arts and culture strategy and policy
  • regional arts and culture programmes and events
  • regional public artwork and regional public art programmes
  • development, maintenance and access to the regional visual arts collection, including exhibitions and interpretive programmes
  • region-wide community funding and grants
  • regional arts and culture programmes, which can be tailored to local needs.

Events including:

  • attraction, development, delivery and promotion
  • sub-regional events which are the responsibility of the local board in which the event is located, in collaboration with other affected local boards
  • local events sponsorship, funding and grants
  • tailoring regional events programmes to local needs.

Events including:

  • regional events strategy and policy, including region-wide events plan
  • coordinating regional events, including attraction, development, delivery and promotion
  • regional events sponsorship, funding and grants
  • regional events programmes, which can be tailored to local needs.

Community development and facilities including:

  • plans, projects and initiatives specific to the local area
  • tailoring region-wide community development and safety programmes to local needs
  • facilitating community-led placemaking and development initiatives
  • community advisory services
  • local community funding and grants.
  • the specific location, design, build and fit out of new local community facilities within budget parameters agreed with the Governing Body
  • the use of local community facilities, including leasing and changes of use.

Community development and facilities including:

  • regional community development strategy and policy
  • regional community development and safety programmes which can be tailored to local needs
  • regional community funding and grants.
  • the number and general location of all new community facilities and the prioritisation of major upgrades to all existing community facilities
  • the location design and use of any new community facilities developed for an Auckland-wide purpose
  • social housing, such as housing for the elderly.

Libraries including:

  • the specific location, design, build and fit out of new local libraries within budget parameters agreed with the Governing Body
  • the design and type of community facilities within local libraries
  • the use of local libraries including local exhibitions, programmes and events within local libraries.

 

Libraries including:

  • libraries strategy and policy
  • the number and general location of all new libraries and the prioritisation of major upgrades to existing libraries
  • the libraries’ collection policy and practice (including development and maintenance of all library collections)
  • regional exhibitions, programmes and events within libraries
  • the mobile library service
  • the central library, other than the ground and first floors.

Recreation facilities and initiatives including::

  • the specific location, design, build and fit out of new local recreation and sports facilities within budget parameters agreed with the Governing Body
  • the use of local recreation facilities and initiatives including leasing and changes of use
  • local recreation and sports programmes
  • local community funding and grants
  • tailoring regional recreation and sports programmes to local needs.

 

Recreation facilities and initiatives including:

  • any new recreational facilities developed for an Auckland-wide purpose or function
  • the number and general location of all new recreation and sports facilities (including sports stadiums) and the prioritisation of major upgrades to all existing recreation and sports facilities
  • the use of regional recreation and sports facilities (including sports stadiums)
  • coordination of the use of recreation and sports facilities on a regional basis
  • regional recreation and sports strategy and policy
  • regional recreation and sports programmes, which can then be tailored to local needs
  • regional community funding and grants

Parks including:

  • the specific location of new local parks (including the prioritisation for acquisition) within budget parameters agreed with the Governing Body
  • reserve management plans for local parks
  • local parks improvements and place shaping
  • the use of and activities within local parks, such as community events and community planting programmes
  • cemeteries that are no longer in regular active use and are functioning as local parks
  • naming of local parks.

Parks including:

  • any new parks acquired for an Auckland-wide purpose or function
  • regional open space strategy and policy, including open space network plan and volcanic cones strategy
  • reserve management plans for regional parks
  • the number and general location of all new parks and the prioritisation of major upgrades to existing parks (including sports fields within parks)
  • the use of and activities within regional parks
  • acquisition and divestment of all park land, including the disposal of surplus parks, excluding any disposal and reinvestment made in accordance with the Service Property Optimisation Approach
  • coordination of the use of all sports fields on a regional basis
  • Open cemeteries.

Explanatory notes:

  • Definitions of local and regional events are set out in schedule 2 in accordance with the Auckland Council Events Policy.
  • Regional events facilities and amenities are the responsibility of Regional Facilities Auckland (RFA). These include the Viaduct Events Centre, stadium management, The EDGE, Auckland Zoo and the Auckland Art Gallery. Regional sports facilities (including sports stadiums) are generally the responsibility of Regional Facilities Auckland (RFA).

 

Local environmental management including:

  • local environmental initiatives and projects
  • facilitating community-led placemaking and development initiatives
  • local stormwater quality projects
  • within regional frameworks
  • local waste management plans and projects within regional parameters set out in the Waste Minimisation and Management Plan.

Waste services and Environmental services including:

  • regional environmental, heritage and urban design strategy, policy and guidelines
  • regional environmental programmes and projects
  • waste management, including the Waste Minimisation and Management Plan
  • landfill management
  • environmental research and monitoring.

Stormwater

Stormwater management limited to:

  • the Te Arai Drainage District, the Okahuhura Drainage Area and the Glorit Drainage District.  This allocation of decision-making responsibility is to the Rodney Local Board.

Stormwater management including:

  • the stormwater network, including catchment management plans.

 

Relevant to each group of activities/ area

Local board non-regulatory responsibilities

Governing Body non-regulatory responsibilities

Fees and charges

Setting of fees and charges for local activities excluding:

  • library collections fees and charges; and
  • any fees and charges for local activities that are set on a region-wide basis by the Governing Body in a regional policy.

Setting of fees and charges for regional activities and:

  • regional fees and charges for local activities that are set by the Governing Body in a regional policy
  • library collections fees and charges.

Service specifications

Setting of service specifications for local activities subject to any minimum service specifications that the Governing Body has decided, for policy reasons, to set on an Auckland-wide basis.

Setting of service specifications for regional activities and minimum service specifications for local activities where the Governing Body decides to do so for policy reasons.

Procurement

Procurement for local activities excluding:

  • procurement of major service delivery contracts (such as maintenance, security and cleaning contracts) for Auckland-wide local assets and facilities on a coordinated basis.

Procurement for regional activities and

  • procurement of major service delivery contracts (such as maintenance, security and cleaning contracts) for Auckland-wide local assets and facilities on a coordinated basis
  • the procurement policy for Auckland Council.

Explanatory notes:

  • There are significant efficiencies to be gained by the Governing Body procuring some contracts on a larger scale or a coordinated basis. This is likely to cover areas like parks and facilities maintenance, security and cleaning, which involve local and regional assets and facilities across Auckland. (The guidelines for procuring these types of contracts will be contained in the procurement manual. Procurement for most local activities will though, remain a local board decision-making responsibility).
  • Local boards will set the service specifications as they relate to their local area as set out in the allocation above.

 

Asset renewal

Maintaining service capacity and integrity of local assets throughout their useful life in accordance with Auckland-wide parameters and standards set by the Governing Body.

Maintaining the service capacity and integrity of regional assets throughout their useful life and setting Auckland-wide parameters and standards for all asset management planning.

Explanatory note:

  • The local board’s asset renewal decision-making responsibility is within the framework and standards set by the Governing Body to ensure regional consistency

 

Asset acquisition and disposal

Disposal of local service property and reinvestment of sale proceeds in accordance with the service property optimisation approach (as adopted by the Governing Body).

All other acquisition and disposal decisions.

Other activities of Auckland Council

 

All other non-regulatory activities of Auckland Council

Explanatory note:

  • An assessment of the principles for allocating non-regulatory decisions set-out in section 17 of the Local Government Auckland Council Act must be considered before applying this allocation

Schedule 1- Governance of parks

1.    The Governing Body has governance responsibility for the following regional parks and contiguous land.

Regional Parks

Auckland Council has classified the following as regional parks:

  • Ambury
  • Atiu Creek
  • Auckland Botanic Gardens
  • Awhitu
  • Duder
  • Glenfern Sanctuary
  • Hunua Ranges
  • Long Bay
  • Mahurangi
  • Muriwai (excluding Muriwai Village Green)
  • Mutukaroa / Hamlins Hill
  • Omāna
  • Pakiri
  • Te Motu a Hiaroa / Puketutu
  • Scandrett
  • Shakespear
  • Tapapakanga
  • Tawharanui
  • Tawhitokino
  • Te Ārai
  • Te Muri
  • Te Rau Pūriri
  • Waharau
  • Waitākere Ranges
  • Waitawa
  • Wenderholm
  • Whakanewha
  • Whakatiwai

Land contiguous with Regional Parks

Relevant Regional Park

Land to be amalgamated into adjacent Regional Park

Long Bay

Piripiri Park

Section 1 SO 70452

Mahurangi

Scott Point Reserve, Te Kapa Peninsula (subject to continued 24 hour public access)

Lot 15 DP 44711

Sec 216 Mahurangi Village SO 43441

Lot 14 DP 11711

Muriwai

Oaia Reserve, Muriwai

Lot 11 DP 58521

Te Arai

Te Ārai Reserve (subject to continued 24 hour public access)

Lot 1 DP 66227

Lot 1 DP 59556

Waitākere Ranges

Mārama Plantation Reserve, Little Huia

Lot 12 DP 27798

Douglas Scenic Reserve

Lot 31 DP 77453

Rāroa Park

Lot 100 DP 21358

Parkland surrounding Waitākere  Quarry Scenic Reserve

Lot 2 DP 193044

Karekare Reserve

Lot 31 DP 40109

Lone Kauri Road – 3 reserves

Lot 99 DP 42402

Lot 106 DP 42402

Lot 107 DP 42402

South Piha Plantation Reserve

Lot 77 DP 31268

Lake Wainamu Scenic Reserve

Section 3 Block 1/Waitakere SD/

Tasman View Esplanade

Lot 90 DP 42223

Lake Wainamu Walkway

Pt Waitakere 1A (Easement over lake edge only)

Waitoru Reserve, Bethells Rd

Pt Allotment 5 PSH OF Waitakere

2.    The Maunga Authority has governance decision-making responsibility for the following maunga.

Parks under the administration of the Maunga Authority

  • Matukutūruru / Wiri Historic Reserve
  • Maungakiekie / One Tree Hill
  • Maungarei / Mt Wellington
  • Maungauika (North Head) (subject to agreement regarding the council’s role)
  • Maungawhau / Mt Eden
  • Ōhinerau / Mt Hobson
  • Ōhuiarangi / Pigeon Mountain
  • Ōtāhuhu / Mt Richmond
  • Ōwairaka / Te Ahi-kā-a-Rakataura / Mount Albert 
  • Puketāpapa / Pukewīwī / Mount Roskill
  • Takarunga / Mount Victoria
  • Te Kōpuke / Tītīkōpuke / Mount St John
  • Te Pane-o-Mataaho / Te Ara Pueru / Māngere Mountain
  • Te Tātua a Riukiuta / Big King

Note: ownership of Maungakiekie / One Tree Hill Northern land remains with the Crown and it is administered by the Tupuna Maunga Authority under the Nga Mana Whenua o Tamaki Makaurau Collective Redress Act 2014 and the Reserves Act 1977.

3.    Post settlement governance entities have governance responsibility for the following reserves.

Park name

Governance entity

Relevant legislation

Kaipātiki (formerly Parakai Recreation Reserve)

Te Poari o Kaipātiki ki Kaipara (formerly Parakai Recreation Reserves Board)

Ngāti Whātua o Kaipara Claims Settlement Act 2013

Whenua Rangatira and Pourewa Creek Recreation Reserve

Ngāti Whātua o Orākei Reserves Board

Ngāti Whātua Ōrākei Claims Settlement Act 2012

4.    The Governing Body has responsibility for the majority of land contiguous to Tupuna Maunga governed by the Maunga Authority. The Ngā Mana Whenua o Tāmaki Makaurau Redress Act 2014 provides for the transfer of administration by the Council of these lands to the Maunga Authority at the discretion of the Governing Body. 

Land contiguous with parks subject to Treaty of Waitangi settlement

Park subject to Treaty of Waitangi Settlement

Contiguous council owned land allocated to the Governing Body

Maungawhau / Mt Eden

Lot 1 DP 131932

Maungarei / Mt Wellington

Lot 200 DP 436081

Ōhinerau / Mt Hobson

Pt Allotment 2 SECT 11 SBRS OF Auckland

Ōhuiarangi / Pigeon Mountain

Lot 182 DP 98841

Lot 183 DP 98841

Section 1 SO 434440

Section 2 SO 434440

Section 3 SO 434440

Allotment 19 SECT 5 SM FMS NEAR Howick

Ōtāhuhu / Mt Richmond

Lot 1 DP 47429

Lot 2 DP 47429

Lot 3 DP 47429

Lot 4 DP 47429

Lot 5 DP 47429

Lot 6 DP 47429

Lot 7 DP 47429

Lot 8 DP 47429

Pt Lot 10 DP 47429

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

Lot 29A DP 17682

Lot 19 DP 58177

Lot 59 DP 16603

Te Kōpuke / Tītīkōpuke / Mount St John

Lot 1 DP 334602

Lot 2 DP 413830

Lot 13 DP 20564

Lot 2 DP 35331

Te Tātua a Riukiuta / Big King

Lot 4 DP 44196

Lot 3 DP 44196

Lot 5 DP 108794

Lot 4 DP 21107

Lot 5 DP 108794

Lot 1 DP 108794

Pt Allotment 80 SECT 10 SBRS of Auckland

5.    Auckland Domain

Decision making allocation for Auckland Domain is geographically split, with the Waitemata Local Board being allocated responsibility for the playing fields areas and two community recreational leases (Auckland Bowling Club and Parnell Tennis Club), and the balance of land within Auckland Domain being allocated to the Governing Body. The Waitematā Local Board and the Governing Body have delegated decision making to the Auckland Domain Committee, a joint governance committee of the Waitematā Local Board and Governing Body.

6.    Motukorea / Browns Island

The Governing Body has governance responsibility for Motukorea / Browns Island. 

Schedule 2 - Auckland Council Events Policy categories

The Events Policy identifies three categories of events, local, regional and major.

Local events - An event is considered to be a local activity governed by local boards unless it meets the criteria for a regional or major event as defined in this policy.

Regional and major events - An event must demonstrate the strategic outcomes, appeal, profile and economies of scale to be categorised a regional or major event as defined in the table below. It will have most, if not necessarily all, of the distinguishing characteristics below.

Event Category

Strategic Outcomes

Appeal – breadth and depth of the event

Profile

Regional Coordination

Regional

  • delivers regional objectives set by the Governing Body
  • helps deliver on Auckland-wide strategies such as for sport and recreation, arts and culture
  • offers a distinctive event proposition for the region.
  • demonstrates it draws from a regionally-distributed audience e.g. appeals to a specific demographic or interest group that is geographically dispersed across the region
  • demonstrates a size and scale that is regionally significant.
  • has region-wide and maybe national profile, demonstrated through media and wide public awareness.
  • demonstrates clear benefits of decisions being coordinated at a region-wide level only if the nature of the event is such that decision-making on an Auckland-wide basis will better promote community well-being across Auckland e.g. delivered in multiple locations across the region, ensuring regional distribution , ability to attract sponsorship, region-wide marketing and promotion.

Major

  • delivers economic development outcomes
  • delivers significant economic return on investment  provides measureable economic benefits such as significant increase in visitor nights.
  • appeals to regional, national and international audiences and participants
  • a large mass appeal social event that is distinctive to Auckland.
  • has regional, national and international profile.

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3.6 Summary of Significance and Engagement policy

Auckland Council’s Significance and Engagement Policy (the Policy) assists the council to determine the significance of matters and the extent to which the council will engage with the community on those matters before it makes any decisions.  The policy also lists the council’s strategic assets. 

The policy also contains references to supporting information used to support staff in applying the policy and other reference material, together with an overview of council’s decision making responsibilities and some key definitions.

This section provides a summary of the council’s Significance and Engagement Policy. The full policy is available at  https://www.aucklandcouncil.govt.nz/plans-projects-policies-reports-bylaws/our-policies/Documents/significance-engagement-policy201412.pdf

Policy summary

The council will assess the degree of significance of proposals and decisions and the appropriate level of community engagement in accordance with the policy in the early stages of a proposal before decision making occurs. If necessary, the council will reconsider this assessment as the proposal develops.

The council will consider the following matters when assessing the degree of significance of proposals and decisions and the appropriate level of community engagement:

  • legal requirements to engage with the community
  • the number of people affected, the degree to which they are affected and the likely impact of a decision
  • whether the type of decision is likely to generate wide public interest within the local board area (local board decision) or within Auckland and New Zealand (governing body decision)
  • the impact of the decision on the governing body or local board ability to deliver on actions that contribute to the Auckland Plan, as well as any statutory responsibility
  • the impact of the decision on the intended service levels for a group of activities, including the start/stop of any group of activity
  • the financial implications of the decision
  • the degree to which the decision or proposal can be reversed should circumstances warrant, and
  • the relationship of Māori, and their culture and traditions, in respect of any decision impacting on ancestral lands, water, sites, waahi tāpu, valued flora and fauna and other taonga.

Where required, the council will use a special consultative procedure as set out in Section 83 of the Local Government Act 2002.  For all other matters requiring a decision, the council will determine the appropriate level of community engagement on a case by case basis.

The level of community engagement the council will undertake in relation to a proposal or decision will depend on the significance of that proposal or decision. In general, the more significant a matter, the greater the extent to which the council will engage with the community on it.

All engagement with the community by the council will be carried out in accordance with the principles set out in the Local Government Act 2002 and the policy.

In limited cases, the council may need to make a decision that is inconsistent with the policy (for example, where failure to make a decision urgently would result in unreasonable or significant damage to property, or risk people’s health and safety).  In such cases, the council will follow the process set out in section 80 of the Local Government Act 2002.

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3.7 CCO Accountability Policy

This policy sets out the council’s expectations for its substantive council-controlled organisations[14] in accordance with section 90 of the Local Government (Auckland Council) Act 2009 (LGACA). This policy is designed to be read in conjunction with the Governance Manual for Substantive Council-Controlled Organisations (CCOs). The Governance Manual brings together key policies and documents relating to the governance of CCOs, and provides further detail about how this policy should be implemented. It provides guidance for boards, executives and senior staff on the effective governance of the substantive CCOs[15].

1.   The council’s expectations for CCO’s contribution to the council’s objectives and priorities

Section 90(2) of the LGACA sets out the requirements of the accountability policy, and states that:

“(2) The policy must—

a)     include a statement of the Council’s expectations in respect of each substantive council-controlled organisation’s contributions to, and alignment with, the Council’s objectives and priorities.

b)     include a statement of the Council’s expectations in respect of each substantive council-controlled organisation’s contributions to, and alignment with, any relevant objectives and priorities of central government.”

Central government departments have been involved in the development of plans and strategies of the council, including the Auckland Plan and the Auckland Transport Alignment Plan. Therefore, the objectives and priorities of central government are reflected in the expectations set out in this policy. 

1.1 Common expectations          

Auckland Council has a number of expectations of each of its substantive council-controlled organisations in respect of their contribution to, and alignment with, the council’s objectives and priorities. Each substantive CCO is to meet the common expectations set out below and the specific expectations for each.

1.1.1 Build public trust and confidence in the council group

Each substantive CCO is to be responsible for building public trust and confidence in itself and the council group. This is to be achieved by:

  • Acting in the interests of all Aucklanders, both current and future.
  • Recognising that the services and assets it may own or manage are public services and assets, which should be managed in the best interests of Aucklanders. 
  • Meeting the public’s expectation of transparency and accountability, and always considering the council group’s reputation.
  • Improving the public’s perception of transparency and accountability by tracking and reporting investment and performance data in a clear and accessible manner.
  • Operating under a no surprises policy, which means informing the Mayor, councillors or local boards (as appropriate) well in advance of any events, transactions or issues that could attract public interest, whether positive or negative.
  • Ensuring excellent customer service, including understanding the communities it serves. 
  • Ensuring that any conflicts of interest or potential conflicts of interest (whether actual or perceived) are declared and managed appropriately. 
  • Providing transparent information about the activities and services it provides to the community.
  • Including customers and communities in decision-making where appropriate, using the principles in the Significance and Engagement Policy.
  • Being aware, as a public entity, of the need to be especially prudent around sensitive expenditure such as travel and entertainment, and ensuring that it only occurs where there is a justifiable business purpose.
  • Engaging with central government on central government policy through the council parent. Engagement on operational matters does not need to be carried out through the council parent.
  • Improving the recognition of ratepayer funding for public services and assets through the use of consistent, group-wide branding in accordance with the council’s Brand Navigation Guidelines.
  • Ensuring that it acts as a good employer.
1.1.2 Provide value for money

Each substantive CCO is to ensure that it provides value for money for Aucklanders, which means achieving the outcomes and levels of service specified by the council in an efficient and effective way. This is to be achieved by: 

  • Being accountable for decisions about spending and the use of council group resources and assets.
  • Ensuring that all activities and services are underpinned by prudent use of resources and assets.
  • Ensuring that there is a high degree of transparency in financial planning, budgeting, and sources of revenue.
  • Informing the council well in advance of entering into any commitments or obligations that may:
    • have financial impacts which are outside of approved funding; or
    • negatively affect the group’s prudential ratios[16] through a significant increase in group debt or reduction in revenue.
  • Providing transparent information to Aucklanders on financial and non-financial performance to demonstrate value for money.
  • Ensuring that there is a justifiable business purpose for all spending.
  • Ensuring that investment is supported by robust business cases which meet the standards of any relevant group policies and provide a clear and strategic rationale for investment. 
  • Ensuring that the delivery of activities and services is as efficient as possible, and that corporate spending is kept to a minimum.
1.1.3 Building a group approach to achieve outcomes for Aucklanders 

The substantive CCOs are to work with the council and with each other to achieve outcomes for Aucklanders. This is to be achieved by:

  • Working together to align and achieve group strategies as set out in the Auckland Plan and prioritised through the Long-term Plan.
  • Building and maintaining a culture of collaboration across the group to achieve the objectives and priorities of the council and to provide value for money.
  • Open and transparent sharing of information where that is required to achieve outcomes for Aucklanders.
  • Presenting a unified front with the parent and with other CCOs on key issues facing Auckland.
  • Implementing agreed group policies such as those on Treasury, Insurance and Procurement[17], and participating in the development of any further group policies, for example ‘Our Charter’, which includes foundation principles and standards for staff behaviours.
  • Participating proactively and constructively in efforts to achieve efficiencies and savings for the council group and make the most of its size and scale, including group procurement and the use of shared services.
  • Acknowledging the council’s wider policy settings in its own decision-making and considering issues from the perspective of the council.
1.1.4 Improve outcomes for Māori

The substantive CCOs are to give effect to the council’s Māori responsiveness framework and foster more positive and productive relationships between the council group and Māori, develop the ability of the council group and its people to respond more effectively to Māori and contribute to Māori wellbeing by developing strong Māori communities in Tāmaki Makaurau. This is to be achieved by:

  • Ensuring that the principles of te Tiriti o Waitangi, such as shared decision-making, partnership and mutual benefit, are applied consistently in activities and decision-making. 
  • Fulfilling statutory obligations to Māori under the Local Government (Auckland Council) Act 2009, Local Government Act 2002 and other statutes. 
  • Enabling Māori outcomes. 
  • Valuing te ao Māori – the Māori world view.
  • In addition, the substantive CCOs are to contribute to achieving a collaborative and aligned approach across the council group to working with mana whenua and matāwaka.
1.1.5 Health and safety

Each substantive CCO is to give effect to the group Health, Safety and Wellbeing Policy and Behaviours Statement. This sets out principles and behaviours to give effect to the health and safety vision of the group.    

1.1.6 Manage risk appropriately

Each substantive CCO is to proactively manage all their risks including strategic, financial, operational, and reputational risks (including the risk of fraud and/or corruption). Each CCO must:

  • Manage, monitor and report on their risk management activities undertaken in accordance with either the council’s Enterprise Risk Management Policy and Framework, or the CCO’s own risk management framework.  
  • Actively report on the effectiveness of their risk management processes and outcomes.
  • Proactively report on all significant risks and issues and their management to ensure no surprises, transparency and that the significant risks are being appropriately managed.

Section 2.5 contains specific reporting requirements relating to these provisions, including quarterly reporting and appearing before the Audit and Risk Committee for the purpose of addressing risk management and risks.

1.1.7 Understanding and giving effect to Auckland’s shared governance

Both the governing body and the local boards are responsible and democratically accountable for the decision making of Auckland Council.

The governing body has, among other decision-making roles, decision-making in relation to the governance of the council’s CCOs. Therefore the substantive CCOs are directly accountable to Auckland Council through the governing body, and the board of each CCO has a direct governance relationship with the governing body. The substantive CCOs should:

  • Understand the role of the governing body.
  • Proactively build and maintain good relationships with members of the governing body.
  • Actively engage with the relevant ward councillors on projects and issues within their ward.

Local boards make decisions on local activities and services, and play an important role in representing local communities. The activities of CCOs are very important in local communities, and each CCO must ensure that it works effectively with local boards. The substantive CCOs should:

  • Understand the role of local boards, both their role as local decision-makers and their responsibility to identify and communicate the views and preferences of the communities in its local board area. 
  • Proactively build and maintain good relationships with each local board.
  • Consult with local boards genuinely and early in a way that allows them to influence decisions that may:
    • affect a local board’s governance role.
    • have a significant local impact (taking into account any mitigation measures).
    • require a CCO to undertake local or regional community consultation.

Substantive CCOs will need to recognise local interests while ensuring that regional priorities and strategies are achieved.

1.1.8 Climate change and reducing carbon emissions

Each substantive CCO is to contribute towards reducing carbon emissions and contributing towards a climate resilient future. This is to be achieved by:

  • Working with the council in the review and update of Low Carbon Auckland to deliver an integrated approach to climate change, addressing both emissions reduction and climate resilience.
  • Implementing actions identified in the current and future iterations of the plan as appropriate for each CCO.
  • Embedding climate change considerations into decision-making, planning and policies regarding both emissions reduction and addressing the impacts of current and on-going climate change.

1.2 Auckland Tourism, Events and Economic Development

A.    Objectives of Auckland Tourism, Events and Economic Development

The objectives of Auckland Tourism, Events and Economic Development (ATEED) are[18]:

  • To lift Auckland’s economic wellbeing.
  • To support and enhance Auckland’s performance as a key contributor to the New Zealand economy.
  • To support and enhance Auckland’s ability to compete internationally as a desirable place to visit, live, work, invest and do business.

B.    The council’s expectations of ATEED in relation to its objectives and priorities

ATEED is to give effect to the objectives and priorities of the council in the Auckland Plan, and the Auckland Economic Development Strategy, and in particular by:

Opportunities and prosperity

  • Creating the conditions for a resilient economy, innovation, and employment growth, and raising productivity
  • Attracting and retaining skills, talent and investment
  • Developing skills and talent for the changing nature of work and life-long achievement

Māori identity and wellbeing          

  • Promoting Māori success, innovation and enterprise
  • Showcasing Auckland’s Māori identity and vibrant Māori culture

ATEED is to contribute to other relevant outcomes in the Auckland Plan, including:

  • Belonging and Participation

In doing so, ATEED is to:

  • Advance Māori employment and create the environment for Māori business and iwi organisations to be a powerhouse in Auckland’s economy
  • Leverage Auckland’s position to support growth in exports and a competitive New Zealand economy
  • Increase ongoing learning and training in new and emerging areas, with a focus on those most in need

C.    Methods

ATEED is to meet these expectations by:

  • Ensuring that its funding, policies and activities are directed towards achieving the council’s objectives and priorities.
  • Collaborating with the council, council-controlled organisations and the relevant central government agencies to maximise benefits for Aucklanders and ensure value for money. 

1.3 Auckland Transport

A.    Purpose of Auckland Transport

The purpose of Auckland Transport is to contribute to an effective, efficient, and safe Auckland land transport system in the public interest[19].

B.    The council’s expectations of Auckland Transport in relation to its objectives and priorities 

Auckland Transport is to give effect to the objectives and priorities of the council in the Auckland Plan, and in particular by:

  • Better connecting people, places, goods and services
  • Increasing genuine travel choices for a healthy, vibrant and equitable Auckland
  • Maximising safety and environment protection

In doing so, Auckland Transport is to:

  • Make better use of existing transport networks.
  • Target new transport investment to the most significant challenges.
  • Maximise the benefits from transport technology.
  • Make walking, cycling and public transport preferred choices for many more Aucklanders.
  • Better integrate land-use and transport.
  • Move to a safe transport network, free from death and serious injury.
  • Develop a substainable and resilient transport system.

Auckland Transport is to contribute to other relevant outcomes in the Auckland Plan, including:

  • Māori Identity and Wellbeing
  • Belonging and Participation
  • Homes and Places
  • Environment and Cultural Heritage

C.    Methods:

Auckland Transport is to meet these expectations by:

  • Ensuring that its capital and operating expenditure, policies and plans are directed towards achieving these objectives and priorities. 
  • Implementing, through its role as a provider of infrastructure critical to urban development, the Development Strategy set out in the Auckland Plan. The Development Strategy sets out how Auckland will change and grow over the next 30 years, through a quality compact approach.
  • Engaging early with the council to ensure any proposed major investment decisions, city-shaping projects or significant policies align with the council’s objectives and priorities, in accordance with the policy on Strategic Assets in Section 5.
  • Working with the council, other council-controlled organisations and infrastructure providers to achieve the council’s objectives and priorities in an efficient and effective way, including in particular the integration of transport infrastructure with land use.
  • Aiming to secure co-funding from the New Zealand Transport Agency for all eligible investments which are aligned with the council’s priorities to maximise value for money for Aucklanders.

1.4 Panuku Development Auckland

A.    Purpose[20]

The purpose of Panuku Development Auckland (Panuku) is to contribute to the implementation of the Auckland Plan and encourage economic development by facilitating urban redevelopment that optimises and integrates good public transport outcomes, efficient and sustainable infrastructure and quality public services and amenities.

Panuku will manage council’s non-service[21] property portfolio and provide strategic advice on council’s other property portfolios. It will recycle or redevelop sub-optimal or underutilised council assets and aim to achieve an overall balance of commercial and strategic outcomes.

B.    The council’s expectations of Panuku in relation to its objectives and priorities

Panuku is to give effect to the objectives and priorities of the council in the Auckland Plan, and in particular by:

1.     Facilitating redevelopment of urban locations

Panuku is to facilitate private sector, third sector[22], iwi and government investment and collaboration into the sustainable redevelopment of brownfield urban locations consistent with the Development Strategy in the Auckland Plan. It will also co-ordinate the provision of the council’s infrastructure and other investment in these locations.

2.     Accommodating urban growth through redevelopment

Panuku is to contribute to accommodating residential and commercial growth through facilitating the quality redevelopment of urban locations with excellent public infrastructure and services. Redevelopment of the overall portfolio should offer a range of residential choices and price points to cater for diverse households.

3.     Facilitating vibrant places

Panuku is to facilitate the creation of adaptable and resilient places that contribute to wellbeing, promote health and safety and are fully accessible to people with disabilities and older people. It will harness and incorporate the local community's unique identity, attributes and potential to create vibrant communities.

4.     Developing the Auckland waterfront

Panuku is to continue to lead the development of the Auckland waterfront in a way that is consistent with the Waterfront Plan 2012, and which balances commercial and public good objectives, including high quality urban design.

5.     Strategically create value from assets

In partnership with the council group, Panuku is to use its commercial expertise and knowledge of land and property markets to:

  • Facilitate quality redevelopment of underutilised council landholdings within current urban boundaries.
  • Manage the council group’s non-service properties in a way that optimises the returns to the council group.
  • Acquire land consistent with the council’s specifications.
  • Optimise returns from the disposal and development of land in a commercially robust way[23] .

6.     Promoting Māori identity and wellbeing

Panuku is to promote Māori identity and wellbeing by:  

  • Showcasing Auckland’s Māori identity and vibrant Māori culture.
  • Recognising te Tiriti o Waitangi and supporting mana whenua in their unique role as kaitiaki of Tāmaki Makaurau.

C.    Methods

Panuku is to meet these expectations by:

  • Ensuring that its capital and operating expenditure, policies and plans (including locally-specific development plans) are directed towards achieving these objectives and priorities.
  • Working with the council, other council-controlled organisations and infrastructure providers to facilitate urban redevelopment.

1.5 Regional Facilities Auckland Limited

A.    Purpose

The purpose of Regional Facilities Auckland Limited (RFA) is to engage the communities of Auckland through cultural, heritage, and lifestyle opportunities. This will be done primarily by operating, administering and developing various regional facilities on a prudent, commercial basis[24]

B.    The council’s expectations of RFA in relation to its objectives and priorities

Through its activities and the facilities and venues it operates, Regional Facilities Auckland is to contribute to several of the outcome areas in the Auckland Plan.  These include:

  • Belonging and participation, and specifically to recognise the value of arts, culture, sport and recreation to quality of life, and providing opportunities and spaces for people to meet, connect, participate in and enjoy community and civic life.
  • Environment and cultural heritage, and specifically ensuring Auckland’s cultural heritage is valued and cared for. 
  • Showcasing Auckland’s Māori identity and talent, and specifically celebrating Māori culture and supporting te reo Māori to flourish.

In addition, Regional Facilities Auckland is to give effect to the relevant objectives and priorities set out in council strategies including: 

  • Toi Whitiki: Arts and Culture Strategic Action Plan.
  • The Auckland Sport & Recreation Strategic Action Plan. 

C.    Methods

Regional Facilities Auckland is to meet these expectations by:

  • Ensuring that its planning and investment in, and management of, regional venues and facilities is aligned to these objectives and priorities.
  • Taking a regional perspective to the provision of facilities for Aucklanders, including working closely with the council to ensure that plans for regional venues and facilities and plans affecting national-level venues and facilities are aligned with the network of local and community facilities.
  • Ensuring that the development of significant plans and strategies to achieve its aims are carried out in collaboration with the council.
  • Recognising central government as a strategic partner, and aligning, where appropriate, with its policy for and investment in facilities providing cultural, heritage, and lifestyle opportunities.

1.6 Watercare Services Limited

A.    Purpose of Watercare Services Limited

The purpose of Watercare Services Limited (Watercare) is to provide Auckland’s integrated water supply and wastewater services.[25]

B.    The council’s expectations of Watercare in relation to its objectives and priorities 

Watercare is to give effect to the objectives and priorities of the council in the Auckland Plan, and in particular by:[26]

Environment and cultural heritage:

  • Ensuring Auckland’s natural environment and cultural heritage is valued and cared for
  • Applying a Māori world view to treasure and protect our natural environment (taonga tuku iho)
  • Using growth and development to protect and enhance Auckland’s natural environment
  • Ensuring Auckland’s infrastructure is future-proofed

Homes and places:      

  • Developing a quality, compact urban form to accommodate Auckland’s growth

Māori identity and wellbeing:

  • Advance mana whenua rangatiratanga in leadership and decision-making and provide for customary rights. 

C.    Methods:

Watercare is to meet these expectations by:

  • Ensuring that its capital and operating expenditure, policies and plans are directed towards achieving these objectives and priorities.
  • Implementing, through its role as a provider of infrastructure critical to urban development, the Development Strategy set out in the Auckland Plan. The Development Strategy sets out how Auckland will change and grow over the next 30 years through a quality compact approach.
  • Working with the council, other council-controlled organisations and infrastructure providers to achieve the council’s objectives and priorities in an efficient and effective way, including in particular the optimisation and integration of water, wastewater and stormwater (the three waters) outcomes for the benefit of current and future Aucklanders.
  • Actively facilitating the participation of Māori in the management of natural resources.

2.   Additional reporting requirements

Section 90(2) of the LGACA states that: 

“(2) The policy must—

c)     specify any reporting requirements that each substantive council-controlled organisation must undertake in addition to those required under Part 5 of the Local Government Act 2002 or this Act.”

2.1 Statutory requirements

Sections 66 to 68 of the Local Government Act 2002 (LGA) set out requirements for CCOs to provide half-yearly and annual reports on their operations to the council.

The half-yearly report must be provided within two months after the end of the first half of each financial year. The annual report must be delivered to the council no later than three months after the end of the financial year, and must be publicly available on the CCO’s website, with a hard copy available to any member of the public upon request. The release of the half-yearly and annual reports are required to be managed in accordance with  the New Zealand Stock Exchange (NZX) continuous disclosure requirements as noted under Section 2.4.

In addition to the statutory requirements, each substantive CCO is to provide additional reporting as set out below.

2.2 Quarterly reporting

In addition to the statutory requirements for half-yearly and annual reports, the council requires all substantive CCOs to provide a quarterly report on their performance to the council, no later than 1 month after the end of the first and third quarter of each financial year[27] or as per the instructions of the Group Financial Controller.

The quarterly report must report against the performance targets set out in its SOI, and must be in the format required by the council.

2.3 Attendance at council committee meetings

The chair and chief executive of each substantive CCO are expected to appear before the relevant council committee when it meets to consider the CCO’s performance against its SOI.

The board of each substantive CCO may be required to appear before the relevant council committee when it meets to consider its annual report and/or fourth quarter report.

2.4 New Zealand Stock Exchange requirements

Substantive CCOs must adhere to the New Zealand Stock Exchange (NZX) requirements and work with the council on the timing of public release of financial information. In particular, CCO and group information must remain confidential until the group interim report and full Auckland Council annual report have been adopted by the council and released to the NZX at the end of February and September, respectively.

Substantive CCOs must also comply with the requirements of the continuous disclosure policy.  

2.5 Audit and risk reporting requirements

Each substantive CCO is to:

  • Provide a risk report and top risks register (as presented to its own audit and risk committee, board or equivalent) to council staff on a quarterly basis. This information will be reported to the council’s Audit and Risk Committee as a confidential item.
  • Ensure relevant board members (or their delegates) attend the meeting of the council’s Audit and Risk Committee as requested by the council. This will be every six months or as the Committee requires.
  • As part of end of financial year processes, report all Audit New Zealand findings through council staff to the council’s Audit and Risk Committee. 

2.6 Provide information as required

Each substantive CCO is required to provide information on any aspect of a CCO’s performance against its statement of intent if required to by a resolution of the relevant council committee.

3.   Additional planning requirements

Section 90(2) of the LGACA states that: 

“(2) The policy must—

d)     specify any planning requirements that each substantive council-controlled organisation must undertake in addition to those required under Part 5 of the Local Government Act 2002 or this Act.”

3.1 Inputs to L