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Tahua ā-Tau
Annual Budget 2017/2018
Volume 1: Our plan for 2017/2018

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.

He karere nā te koromatua

Message from the Mayor

Auckland is New Zealand's only global city - a place where we want talent and enterprise to thrive so that all people no matter their background have the opportunity to succeed and live their dreams.

Ours is an open and diverse city. We are consistently ranked as one of the best places in the world to live thanks to our stunning natural environment, strong economy and the rich and diverse cultures that call Auckland home.

Auckland is successful and that is reflected in our phenomenal growth. We attract 45,000 new people to Auckland annually - the equivalent of Tauranga every three years. That growth will continue in the decades to come with our city projected to add up to another million people over the next 30 years.

Accommodating that growth requires vision, planning and investment. That means building more dwellings at scale and of every sort - family homes, units, apartments and terraced housing. It means creating a world-class transport system that reduces pressure on our roads and gets people where they're going quickly and conveniently. It means ensuring that every person has a home and nobody is forced to live in garages, cars or on the streets. And it means ensuring the costs of growth are shared equitably and not shouldered by ratepayers alone.

This budget is part of delivering that vision. We are investing in infrastructure while sharing the burdens of growth more fairly across all who benefit from working and living in our city.

The Annual Budget 2017/2018 introduces new measures to broaden Auckland Council's revenue base through a targeted rate on accommodation and large developments, which will increase our ability to invest in vital infrastructure. For ratepayers this will provide relief, with a general rates increase of 2.5 per cent after years of double-digit growth for many.

This budget commits $2 billion to capital investment in this financial year, with over $800 million of that going to transport. Over $1.3 billion of operating expenditure will also be spent on transport.

This budget also supports our most vulnerable Aucklanders, with a living wage for the council's lowest paid employees and funding to coordinate action on homelessness.

I want to thank the more than eight thousand Aucklanders who took the time to make their voices heard during consultation on this budget. Your submissions helped to shape this plan and the future of our city. You have done your part for Auckland and the council will continue to do its part on your behalf - by managing our finances responsibly, investing in our city's future and governing in the interests of all Aucklanders.

Phil Goff

Mayor of Auckland

How this Annual Budget 2017/2018 is arranged

This is Auckland Council's plan for delivering services and building infrastructure during the 2017/2018 financial year, the third year of the council's 10-year budget (Long-term Plan 2015-2025 or LTP).

This plan was adopted by the Governing Body on 29 June 2017 following public consultation in February and March 2017.

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

Finding your way around the volumes

Volume 1: Our plan for 2017/2018

Part 1 provides context and background to the plan including a message from the Mayor. It outlines what we will be doing in 2017/2018.

Part 2 outlines the activities and services of Auckland Council.

Part 3 contains our financial overview, prospective financial statements for 2017/2018, prospective funding impact statement and other key financial information.

Part 4 contains the summary of the Tūpuna Maunga Authority Operational Plan 2017/2018.

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

Volume 2: Local Board information and agreements

Part 1 provides information on local boards and a summary of planned expenditure for 2017/2018.

Part 2 contains specific information for each of the 21 local boards, including a local board agreement (outlining local activity initiatives and budgets for 2017/2018), and an introductory section that provides context for each agreement.

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

Part 4 contains a glossary of terms and key word index.

Rārangi Kōrero

Contents

Message from the Mayor

PART 1: OUR PLAN FOR 2017/2018

PART 2: OUR ACTIVITIES

2.1 Transport

2.2 Parks, community and lifestyle

2.3 Environmental management and regulation

2.4 Auckland development

2.5 Economic and cultural development

2.6 Governance and support

2.7 Water supply and wastewater

PART 3: OUR FINANCES

3.1 Financial overview

3.2 Prospective financial statements and notes

3.3 Prospective funding impact statement

3.4 Financial reporting and prudence benchmarks

PART 4: SUMMARY OF THE TŪPUNA MAUNGA OPERATIONAL PLAN 2017/2018

PART 5: ADDITIONAL INFORMATION

How the organisation is structured

How to contact the council

Glossary of terms

Wāhanga 1: Tā tātou mahere mō te tau 2017/2018

Part 1: Our plan for 2017/2018

Auckland's rapid growth is the most significant factor influencing Auckland Council's budget. More people and houses create additional demand for public transport, roads, water, sewerage, parks and community facilities, along with all the other services the council provides.

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

Text description of figure 1 infographic is after this image

Figure 1 text description:

  • From January to June 2016: Statistics show that 122 new Aucklanders arrived every day. Auckland has become a more attractive place to live, with more and more people making Auckland their home.
  • From 2010 to 2016: Auckland had a 174,000 population increase over six years. In the last five years Auckland's population has increased by more than the entire population of Hamilton or Tauranga.
  • From 2015 to 2045: Forecasts predict this growth will continue at pace over the next 30 years. 736,000 more Aucklanders, increasing our population to 2.2 million.
  • More people means more housing is required.
  • $1.4 billion Investment in new assets for 2017/2018: More housing means we need more investment in infrastructure and services the council provides - things like playgrounds, parks, rubbish services, libraries, wastewater, transport and community facilities will all need to be improved or expanded to cope with the growth.
  • This investment will be paid for by a combination of Central Government funding, increased bank borrowing, user charges and rates.
  • For 2017/2018 the average general rates increase is 2.5 per cent.

     

End of figure 1 text description.

Aucklanders have told us that we need to keep rates affordable and find fairer ways to cover our costs.

While we are having some constructive conversations with central government about new ways to raise funds, doing things differently can take some time. In the meantime, we have decided to make better use of the tools we already have. Two key examples are:

  • using a targeted rate on accommodation providers (such as hotels and motels) to pay for part of the costs of tourism promotion and major events
  • changing our financial policy to allow targeted rates on development areas to be used as an additional option for paying for things like the roads, drains and water pipes that are needed to support new houses.

Our 10-year budget, prepared a couple of years ago, included an average general rates increase of 3.5 per cent in 2017/2018. We have reviewed this and found enough savings to reduce this to 2.5 per cent while still delivering all of our planned investments and services for 2017/2018.

We have been able to boost our spending on infrastructure in 2017/2018 by $200 million compared to what we had planned in our 10-year budget, taking our total infrastructure spend to $2 billion for the year. Of this, $1.4 billion is spending on new assets to provide for a growing Auckland and improve services and $600 million is to look after our existing assets.

The extra spending includes $161 million more for Auckland Transport's work on projects such as AMETI, route protection for mass transit, the Manukau interchange, Lincoln Road, improvements in Newmarket as well as investing in our public transport programme.

Savings have also enabled us to offset the costs of things like implementing a living wage policy for all council staff over the next three years and coordinating collaboration on reducing homelessness.

In recent years the transition to one rating policy across Auckland has resulted in large variations in rates for many Aucklanders. Our focus this year is on stability so we are looking to ensure all ratepayers receive the same percentage rate increase.

What Auckland Council delivers

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

  • Transport - We aim to transform Auckland by moving to outstanding public transport within one network. This can be achieved by improving the speed, accessibility, frequency, affordability, reliability and attractiveness of public transport.
  • Parks, Community and Lifestyle - We provide a range of facilities, services, and events that help people to be healthy and have fun. These encompass sports, arts, culture, recreation and leisure experiences, for example by providing a wide range of libraries, pools, fields, parks and community centres.
  • Environmental management and regulation - We provide many services that support Auckland's environments to be safe, sustainable and to enable thriving communities. We work alongside iwi and community partners to restore and enhance our natural environment. We also collect rubbish and recycling and minimise the risk that our homes and businesses flood when it rains.
  • Auckland Development - We aim to create a city with great neighbourhoods, centres, parks and public spaces that are loved by Aucklanders. We aim to provide choices, reflect Auckland's Māori identity as our point of difference in the world and connect people to places and to each other.
  • Economic and Cultural Development - We aim to raise living standards through attracting investment and visitors, delivering and attracting events, progressing training and innovation programmes, and providing major cultural and sporting facilities.
  • Governance and Support - We provide a variety of administrative, management and support functions that are necessary to keep Auckland running. This includes providing funding support for external organisations such as the Auckland War Memorial Museum and MOTAT.
  • Water supply and wastewater - Every day we supply around 354 million litres of safe, clean and reliable drinking water to Aucklanders and collect, treat and discharge around 392 million litres of wastewater.

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

Figure 2 lists some of the specific investment highlights across Auckland for 2017/2018.  For further information on our projects please visit our website aucklandcouncil.govt.nz.

Figure 2: Key developments and improvements across the Auckland region 2017/18

Text description of figure 2 infographic is after this image

Figure 2 text description:

North Auckland

  • Northcote town centre - town centre developments
  • Albany Community Hub - new community facility
  • Silverdale Park n' Ride - Public transport project upgrade
  • Manowai Road / Takatu Road - seal extension programme.

West Auckland

  • Westgate library and community centre - new community facility
  • Westgate park n' ride - public transport project
  • Te Pai park - netball court surface renewal
  • Lincoln road / Triangle road / SH16 intersection - roading improvement.

CBD / East Auckland

  • Mount Albert town centre - town centre developments
  • Waikaraka Park extension - sportsfield project
  • Westhaven promenade - Waterfront development
  • Auckland Zoo - South East Asia precinct - upgrade facilities.

South Auckland

  • Ormiston - town centre development
  • Waiuku sports park - sportsfield development
  • Norana park walkway - parks project
  • Manukau bus / rail interchange - public transport project.

Region-wide

  • Work continuing on the City rail link
  • Creating new cycleways and walkways
  • Continuing implementing bus lane improvement
  • Upgrading Māngere wastewater treatment plant.

End of figure 2 text description.

Part 2 of this document provides some further information about some of the key projects we will be progressing across the region in 2017/2018.

Your rates

Your rates pay for a wide range of council services. While the council is working hard to find more and more cost savings each year, the ownership costs of all the new assets the council is providing for a growing Auckland means that it is not possible to keep rate increases down at the rate of inflation and continue to provide all the services our diverse communities expect.

General rates and rating stability

After listening to public feedback and carefully weighing up the need to keep rates affordable against the need to invest in Auckland and continue delivering council services, we decided on an average general rates increase of 2.5 per cent for 2017/2018. By pausing our long-term strategy of reducing the proportion of general rates paid for by business for one year, we have ensured that all ratepayer groups (residential, business, farm and lifestyle) will receive an average rates increase of 2.5 per cent.

Accommodation provider targeted rate

In 2017/2018, $13.45 million of expenditure on visitor attraction and major events previously funded from general rates will instead be funded by a new targeted rate on commercial accommodation providers. The rate for individual properties will vary depending on the type of accommodation (such as hotels, motels, backpackers) and where that accommodation is located.

While this targeted rate will mean some commercial accommodation providers will experience large rates increases, we expect that they will have options for managing the increased cost, including passing it on to their customers (who are mainly visitors to Auckland).  Individual providers will need to make their own decisions about how to manage the increased cost.  We will consider granting rates remissions to providers that face restrictions on passing on the costs. At an estimated $2 to $6 per night for hotels and $1 and $3 per night for motels (if passed on) we do not believe that this targeted rate will make a big difference to Auckland's visitor numbers.

Using the new targeted rate to fund these costs will free up the general rates funding that previously paid for this expenditure.  This freed up general rates fudning will allow us to invest an additional $100 million over the next six years in transport infrastructure, specifically mass transit to the airport and other airport access improvements.

Growth infrastructure targeted rates

We have decided to change our funding policy to allow for growth infrastructure targeted rates to be used alongside existing growth charges so that those who benefit from the infrastructure (including those who get the resulting increase in their land values) help to pay for it, rather than ratepayers across Auckland. This policy change provides another tool that can be used to overcome critical barriers to getting more houses built sooner, while also providing an incentive for developers to release land rather than land bank. Full consultation with affected parties will be taken before any growth infrastructure targeted rates are actually put in place.

Other targeted rates

In 2015 we introduced an interim transport targeted rate to help fund $523 million of additional transport investment over three years.  2017/2018 is the last year of that three year period, with our transport investment and funding set to be reviewed as part of developing our Long-term Plan 2018-2028.

Some waste management services are paid for by a waste management targeted rate.  For 2017/2018, there are a number of changes to council waste management services and the associated charges.  Information on these changes is set out on page 65.

Targeted rates are also used to fund a range of other initiatives including improvements to the city centre and various Business Improvement Districts (BIDs) across the region. For 2017/2018, we have agreed to proposals from three business associations to expand the boundaries of the Manukau, Uptown and Wiri BIDs.

Revised funding policy

Some of the changes discussed above involve amendments to one of our key funding policies, known as the Revenue and Financing Policy.  This revised policy is available on the Auckland Council website > Plans, policies and projects > Policies.

Rates revenue

We are budgeting to receive $1.7 billion in total rates revenue in 2017/2018. The following table summarises the amount of revenue each category of rates is expected to generate.

Rate categoryEstimated rate amount in 2017/2018 (excluding GST) ($million)
General rates1,541.5
Waste management targeted rate75.9
Interim transport targeted rate62.8
City centre targeted rate21.9
Accommodation provider targeted rate 13.5
Growth infrastructure targeted rates0.0
Business Improvement District (BID) targeted rates16.9
Other targeted rates6.6

Further information about your rates for 2017/2018 is detailed in the Prospective Funding Impact Statement in Part 3 of this volume.

How we will achieve better outcomes with and for Māori

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

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

  • The Māori Responsiveness Framework - goals to realise Treaty obligations, organisational responsiveness and Māori outcomes
  • The Auckland Plan
  • Local Board Plans
  • Proposed Auckland Unitary Plan
  • Long-term Plan.

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

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

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

Te Toa Takitini oversees four programmes of transformational activities:

Whai Rawa - Māori economic well-being:
To significantly lift Māori economic well-being and enable and contribute to Māori economic needs and aspirations through activities that target tribal development, whānau well-being, and Māori business sector development.

Whai Painga - Māori social well-being
To significantly lift Māori social well-being and enable and contribute to Māori social needs and aspirations through activities that target mana whenua, mataawaka, whānau well-being and Māori social sector organisations.

Whai Tiaki - Māori cultural well-being:
To significantly lift Māori cultural well-being and enable mana whenua involvement in the stewardship and kaitiakitanga of natural resources through activities that target mana whenua, mataawaka, whanau well-being, taurahere organisations, and Māori cultural sector organisations.

Whai Tika - Effectiveness for Māori:
To significantly lift the council's performance in meeting Treaty and statutory obligations; and building effective relationships with Māori by transforming the council group's culture, thinking and practices through activities that target decision-makers, departments and council controlled organisations (CCOs).

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Part 2: Our activities

Area of spendCapital spend 2017/2018

$1.961bn

Operating spend 2017/2018

$3.822bn

How operating costs are fundedRates per $100What will be deliveredKey performance indicators
Transport$844 million$1324 millionRates: 54 %

Other, including fees and charges: 46 %

$37
  • building and maintaining all local and main arterial roads
  • footpaths, cycle paths, bridges, carparks, culverts etc.
  • providing public transport services - trains, buses, ferries
  • invest in rail, bus stations and ferry infrastructure
  • transport safety, education and enforcement
  • continued work on key infrastructure projects, including City Rail Link and AMETI
  • year 3 of the accelerated transport programme, which included an additional $523m capital expenditure over three years funded by the interim transport levy.
  • increase public transport boardings to over 93 million trips, improve punctuality to 94 per cent and customer satisfaction to 85 per cent
  • maintain optimum travel time on key freight routes for 85 per cent of trips
  • grow annual number of cycling trips on Auckland Transport's designated routes to 1.8 million per year.
Parks, Community and Lifestyle$279 million$578 millionRates: 84%

Other, including fees and charges: 16%

$26
  • regional and local parks
  • libraries, community facilities, community services and grants
  • new community facility at Westgate
  • arts and cultural facilities, activities and community events
  • swimming pools and recreation centres.
  • maintain and increase overall service levels for our local and regional parks to continue to enjoy high visitor numbers
  • significant investment in sportsfields to improve satisfaction of the provision and quality to 80 per cent
  • 25 sites of significance on Tūpuna Maunga with mitigation measures to improve or maintain their condition
  • increase the number of customers satisfied with the range of collection items at regional libraries to 72 per cent.
Environmental Management and Regulation$117 million$494 millionRates: 54%

Other, including fees and charges: 46%

$15
  • building and maintaining the stormwater network
  • improving the quality of water in streams and harbours
  • waste collection, including recycling and reducing waste to landfill
  • protecting biodiversity
  • undertaking regulatory activities such as resource and building consents, dog control, food licensing and swimming pool inspections.
  • ensure no more than 1 in 1000 properties connected to our stormwater system is flooded per year
  • have four resource recovery facilities operational
  • establish 8 hectares of new forest or wetland habitats per year
  • Ensure all closed landfills are compliant with their discharge consents
  • Protect waterways with 37 kilometres of riparian planting and or fencing
  • 30 per cent of catchments have key source of contaminants identified and mitigated.
Auckland Development$202 million$204 millionRates: 61%

Other, including fees and charges: 39%

$8
  • planning and policy development, waterfront development, town centre development, property management and development
  • enabling housing development through existing and future spatial priority areas.
  • maintain the proportion of Aucklanders satisfied with historic heritage management in Auckland to 75 per cent
  • creating a vibrant Waterfront that attracts over 75 per cent of Aucklanders to the Waterfront each year
  • Create 50 economic, business, and city building opportunities through the Auckland Council global engagement programme
  • Protect 2180 historic heritage places in the Unitary Plan.
Economic and Cultural Development$57 million$189 millionRates: 62%

Other, including fees and charges: 38%

$7
  • managing major attractions, venues and sports stadiums
  • an increased focus on marketing Auckland as a leisure destination.
  • major events contributing $49m in 2016/17 towards the regional GDP
  • grow visitors to Auckland Zoo and Art Gallery to 1.17 million visitors per year and maintain a 90 per cent customer satisfaction level
  • host 830 public art performances through Auckland Live
  • host 785 days of commercial events and 980 days of community events at our stadiums.
Governance and Support$160million$482 millionRates: 30%

Other, including fees and charges: 70%

$7
  • Local Body support and meeting processes
  • corporate functions such as finance, legal, communications and human resources
  • Auckland Council Investments Ltd, including Ports of Auckland
  • grants to Auckland War Memorial Museum, MoTAT and the Auckland Regional Facilities and Amenities.
  • reducing corporate costs through an ongoing efficiency programme to achieve annual savings of $260 million by end of 2017/2018
  • deliver a return on equity of 11.5 per cent on major investments.
Water Supply and Wastewater$358 million$536 millionRates: 0%

Other, including fees and charges: 100%

$0
  • building and maintaining the network of pipes, dams, treatment plants, pumps required to provide a high standard of drinking water and treating wastewater
  • continue to work on the delivery of major projects such as the Central Interceptor wastewater project.
  • maintain 100 per cent compliance with Drinking-water Standards for New Zealand
  • less than 10 wastewater system overflows per 1000 connections in dry weather conditions.

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2.1 Transport

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

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

We are in the third year of the Accelerated Transport Programme while continuing work on key infrastructure projects, including City Rail Link and AMETI.

Key highlights and priorities for the Annual Budget 2017/2018

Auckland continues to face serious transport access issues involving the city centre, the inner suburbs, the Airport and the south. As the population and demand for public transport increases, the number of buses and cars from those areas which are not served by rail will cause significant congestion and affect economic growth. Auckland Transport (AT) continues its work to determine an effective public transport solution to this issue.

City Rail Link

The City Rail Link (CRL) is a new underground rail line linking Britomart and the city centre with the existing western line near Mt Eden. It is key to delivering the Auckland Plan, the City Centre Master Plan, the Long-term Plan and the Integrated Transport Programme.

The CRL will use twin 3.4km long tunnels up to 42 metres below the city centre streets. It's estimated to take 5-and-a-half years to build. The project is funded by Auckland Council and the government. The council's share of the project is $78 million for 2017/2018.

AMETI

Auckland Manukau Eastern Transport Initiative (AMETI) Eastern Busway is a group of projects in south-east Auckland which will improve transport choices and connections in the area.

The next stage will be NZ's first urban busway with buses travelling on their own congestion-free lanes between Panmure and Pakuranga town centres. The total budget for this project is $81 million for 2017/2018.

Mass transit network

In 2017/2018, $40 million is budgeted for AT to progress this work. This includes:

A budget of $10 million to progress investigations and design of mass transit options for Auckland's important gateway corridors

A further $30 million to advance opportunities for route protection and early acquisition of strategically important land.

Māori transformational activities

Transport contributes to the following Māori transformational shift activities:

  • Whai tiaki - Māori cultural well-being
  • Whai painga -Māori social well-being.

Young Māori drivers and passengers is a road safety programme that targets the issues surrounding the safety of young Māori drivers and passengers in urban south, central and west Auckland. 

Investment in the young Māori drivers and passengers programme will continue in 2017/2018.

Financial information

$000

Capital spend

2017/2018

Organisational support

7,250

Organisational support

7,250

Parking and enforcement

7,560

Other

7,560

Public transport and travel demand management

237,123

Bus

35,070

City Rail Link

78,281

Electric trains

3,100

Ferry

7,450

Multi-modal

16,165

PT Multi-modal

38,503

Rail

49,255

Rail safety

9,300

Roads and footpaths

592,244

AMETI

80,987

Flat Bush

34,530

Footpath

18,620

NorSGA

8,275

Other

102,468

Ring fenced: Drury South

14,000

Ring fenced: Local Board Fund

13,703

Ring fenced: Residential Growth Infrastructure Fund

45,745

Roads

193,430

Roads safety

27,624

Seal Extensions

3,584

Walking and Cycling

49,279

Total

844,177

 

$000

Operating spend

Non-rates revenue

Operating expenditure

Parking and enforcement

82,347

39,861

Public transport and travel demand management

399,329

814,338

Roads and footpaths

60,927

469,951

Total

542,603

1,324,150

> Back to contents list

2.2 Parks, Community and Lifestyle

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

Key highlights and priorities for the Annual Budget 2017/2018

Westgate library and community centre

The new Westgate multi-purpose facility will be an integrated community hub enabling people to come together to create, explore, connect, belong, learn and participate.

The facility, expected to open in 2018, will offer interactive learning environments and multi-purpose community spaces. This next generation library and community centre is set to become the centrepiece of Westgate's new urban heart.

The integrated multi-purpose facility is a building of 3600m2 and will include:

  • library spaces
  • integrated arts and children's multi-purpose area
  • internal and external toilets
  • community multi-purpose spaces
  • a digital and creative hub
  • a business and innovation hub
  • a food hub
  • an event hub.
Waiuku sports park

Franklin Local Board, the Waiuku Districts Rugby Club, and Waiuku College/the Ministry of Education have agreed to a multi-sport concept plan for Waiuku Sports Park.

This new complex will include six rugby fields, a cricket pitch, 12 netball courts, soccer and hockey fields, two indoor courts, an athletics track including triple jump, long jump, discus, shotput, javelin, high jump, pole vault, and a 400 metre regional level running tack.

Māori transformational activities

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

  • Whai tiaki - Māori cultural well-being.

The objective of Beneath our Feet is to support mana whenua to tell the stories of Tāmaki Makaurau.  The stories will be delivered by mana whenua, and give the opportunity for more Aucklanders to know about the history of Tāmaki Makaurau.

Financial information

$000

Capital spend

2017/2018

Local Community services

20,917

Community facilities - upgrades and new facilities

7,643

Community facility renewals

7,681

Library facility and technology renewals

5,592

Local Parks sport and recreation

132,023

Aquatic and recreation facilities - upgrades and new facilities

610

Aquatic and recreation facility renewals

10,636

Community facilities - upgrades and new facilities

17,975

LDI fund

19,584

Local and sports parks renewals

46,171

Local park development

12,669

Sportsfield upgrades and development

17,351

Town centre upgrade

5

Walkway and cycleway development

7,023

Regional Community services

20,196

Events equipment upgrades and renewals

68

Library collection renewals

12,801

Library facility and technology renewals

2,333

Public art development and renewals

2,867

Housing for older persons

2,127

Regional Parks sport and recreation

105,753

City Parks vehicle and plant renewals

3,479

Co-governance entity capital investment

2,610

Land acquisition and development

52,272

Leisure facility developments

1,019

Regional and specialist parks

45,617

Regional heritage development

611

Sportsfield upgrades and development

145

Total

278,889

 

$000

Operating spend

Non-rates revenue

Operating expenditure

Local Community services

9,124

173,819

Local Parks sports and recreation

32,589

115,035

Regional Community services

13,518

120,628

Regional Parks sport and recreation

27,224

168,522

Total

82,455

578,004

> Back to contents list

2.3 Environmental management and regulation

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

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

Key highlights and priorities for the Annual Budget 2017/2018

Waste management and charges

As part of our Waste Management and Minimisation Plan (WMMP), Auckland Council has successfully introduced region-wide inorganic and recycling collections, and is establishing a network of Community Recycling Centres. The programme team is reviewing the planned implementation of food waste and refuse collections. This is to ensure services for all waste streams are planned holistically, implemented in a manner giving best value for money, and support the aspirational goal of zero waste to landfill by 2040. The review will delay rolling out the food waste and user pays refuse collection services.

The intent of our WMMP is to move to a charging regime that promotes waste minimisation. Waste management services have been transitioning to a region-wide delivery approach. The associated charges have been incrementally adjusted from the legacy council regimes.

In 2017/2018 every ratepayer will be provided with the same inorganic collections and recycling services, funded by a standard region-wide rate of $102 (including GST).  The new recycling service will offer all residents the choice of a 120 litre, 240 litre or 360 litre bin.  With customers now having the option of the larger 360 litre bin funded from their base rate, the council will charge an additional $62 per annum for an additional bin and will no longer provide a free commercial cardboard collection in selected town centres and commercial areas in the former Rodney, North Shore and Waitakere council areas.

Next year the council will also introduce a rates funded 120 litre refuse bin service in the former Manukau City Council area.  Residents with a high volume of refuse will be able to have a 240 litre bin instead of a 120 litre for an additional $55 per annum. 

Māori transformational activities

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

  • Whai Tiaki - Māori cultural well-being is to partner and work with mana whenua.

Para kore ki Tāmaki - Zero waste marae, is a marae-based waste diversion project that builds on Māori practices and knowledge, and best practice environmental waste management.  In 2016/2017, 13 marae participated in the project which is continuing to support marae from across Tāmaki Makaurau to reduce their waste-to -landfill through a matauranga Māori lens.

Financial information

$000

Capital spend

2017/2018

Regulation

195

Regulatory activity renewals and replacements

195

Solid waste and environmental services

13,269

Emergency management asset upgrades and renewals

741

Environmental remediation and improvements

2,845

Solid waste upgrades and renewals

9,682

Stormwater management

103,154

Stormwater - Catchment plans

8,400

Stormwater - Environmental improvements

6,439

Stormwater - Flood protection

6,166

Stormwater - Growth

37,218

Stormwater - Renewals

44,931

Total

116,619

 

$000

Operating spend

Non-rates revenue

Operating expenditure

Regulation

187,701

227,904

Solid waste and environmental services

33,520

151,942

Stormwater management

213

109,114

Local environmental management

0

4,641

Total

221,434

493,601

> Back to contents list

2.4 Auckland development

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

Key highlights and priorities for the Annual Budget 2017/2018

Mount Albert town centre

Mt Albert is a key transport hub with more than 2100 people using public transport every day on top of the thousands of road users travelling through the centre.

Over the next 30 years, Mt Albert is expected to change significantly, so the new streetscape design seeks to acknowledge the past and create a legacy for the future by reconnecting the town centre with our maunga (mountain) - Owairaka Mount Albert.

The town centre upgrade will include: more trees, landscaped garden areas, a pocket park on the corner of Mt Albert and New North Roads, better lighting and signage, a wider footpath width through the town centre with new street furniture, drinking fountains, and a new pedestrian crossing.

This project is expected to be completed in February 2018.

Business Improvement District rates

Business Improvement District (BID) support improvements to local business areas and help attract new business and customers.

The council is making three changes to BID targeted rates at the request of the following business associations:

  • Manukau Central: extend the boundaries of the BID rate
  • Wiri: extend the boundaries of the BID rate
  • Uptown: extend the boundaries of the BID rate area.

Māori transformational activities

Auckland development contributes to the following Māori transformational shift activities:

  • Whai rawa - Māori economic well-being
  • Whai tiaki - Māori cultural well-being
  • Whai tika - effectiveness for Māori.

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

84 new sites nominated by mana whenua will be assessed in 2017/2018.

Financial information

$000

Capital spend

2017/2018

Local Planning

33,581

Community facilities - upgrades and new facilities

59

Priority growth area infrastructure

14,709

Town centre upgrade

18,813

Property development

90,340

Commercial property development

71,874

Commercial property renewals

4,594

Housing for older persons

13,872

Regional Planning

16,630

City centre upgrade

10,823

Heritage fund

3,236

Research and monitoring equipment renewals

588

Smoke free signs

469

Town centre upgrade

1,514

Waterfront development

60,966

Marina development and renewals

15,434

Waterfront commercial property upgrades

7,018

Waterfront public space upgrades

38,513

Total

201,517

 

 

$000

Operating spend

Non-rates revenue

Operating expenditure

Local Planning

0

24,887

Property development

20,617

14,112

Regional Planning

7,093

95,715

Waterfront development

39,386

68,838

Total

67,096

203,552

> Back to contents list

2.5 Economic and cultural development

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

Key highlights and priorities for the Annual Budget 2017/2018

Auckland's Major Events

Tens of thousands of visitors and international media are visiting Auckland in 2017, for large-scale international events including the DHL New Zealand Lions Series and the Rugby League World Cup, as part of Auckland's Major Events Portfolio. More than 34,000 international and domestic visitors are expected in Auckland for Lions Series. Alongside hosting three matches, Auckland has free entertainment and activities on offer as part of its famous fantrail and a showcase of local culture and talent at fanzones.

Auckland's Major Events Portfolio also includes the city's most popular cultural festivals - the Auckland Lantern and Diwali Festivals, Pasifika and Tamaki Herenga Waka Festival; international shows and events like Matilda the Musical and the Volvo Ocean Race Auckland Stopover; and new for 2017/2018, the inaugural MCKAYSON New Zealand Women's Open featuring Auckland's own Lydia Ko.

GridAKL

Auckland's Innovation Precinct in Wynyard Quarter is growing rapidly with one of Auckland's leading co-working providers, Generator, announced as the operator of two new buildings opening in the precinct later this year. From September 2017, GridAKL will expand to occupy three buildings in the innovation precinct, bringing together a growing community of innovators, entrepreneurs, advisors and businesses ranging from start-ups through to large, global companies.

Auckland Zoo

Auckland Zoo's 10-year redevelopment programme continues with further works being completed in the major new South East Asia development.

The Southeast Asia animal precinct takes visitors through the forests of Indonesia. Pathways through the flooded forest offer views of orangutans in the trees, while Sumatran tigers and Asian small-clawed otters are encountered at eye level on the forest floor.

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

 

Stadiums

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

Māori transformational activities

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

  • Whai Rawa - Māori economic well-being.

The Tāmaki Herenga Waka Festival 2017 was successfully delivered by ATEED over Auckland Anniversary weekend 2017, and was attended by approximately 30,189 visitors; a 232 per cent increase on last year's attendance of 13,000 visitors.  The satisfaction survey was conducted and 95 per cent of event patrons were satisfied with the event this year compared to 86 per cent of those surveyed at last year's event.

Financial information

$000

Capital spend

2017/2018

Economic growth and visitor economy

187

Corporate support

187

Regional Facilities

57,273

Art gallery collection and renewals

981

Event centre upgrades and renewals

25,662

Other regional facility renewals

2,660

Stadium upgrades and renewals

15,570

Zoo infrastructure development and renewals

12,400

Total

57,460

 

$000

Operating spend

Non-rates revenue

Operating expenditure

Economic growth and visitor economy

15,034

63,649

Regional Facilities

58,084

125,008

Total

73,118

188,657

> Back to contents list

2.6 Governance and support

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

Key highlights and priorities for the Annual Budget 2017/2018

Auckland council service review

As part of legislative requirements, Auckland Council will be undergoing a review of the services provided by the council and its council-controlled organisations. This review will ensure that the ratepayers are getting value-for-money.

The first areas to be reviewed are water, wastewater, storm water, waste and organisational support.

Ports of Auckland Limited

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

Visited by more than 1500 commercial vessels a year, Auckland is New Zealand's largest container port and a vital part of Auckland's prosperity. An estimated 187,000 jobs in the Auckland Region rely on trade through the ports.

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

Māori transformational activities

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

  • Whai Painga - Māori social well-being
  • Whai Tiaki - Māori cultural well-being
  • Whai Tika - effectiveness for Māori.

The Māori cultural investment fund invests in a range of programmes. In 2016/2017 the focus was on marae development and papakāinga housing. Assessment of the infrastructure of 31 marae (14 mataawaka and 17 mana whenua) across Auckland was completed with five marae applying for funding for infrastructure investment.  The council is working with seven organisations and developing relationships with central government to progress papakāinga housing.

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

Financial information

$000

Capital spend

2017/2018

Investment

184,271

Ports of Auckland capital investment

184,271

Organisational support

65,323

Corporate property renewals

29,307

IT hardware and software

25,424

Other organisational support investment

57

Transformation capital investment

10,535

Capital delivery timing adjustment

(90,000)

Total

159,594

 

$000

Operating spend

Non-rates revenue

Operating expenditure

Investment

216,225

165,682

Organisational support

27,083

195,480

Regional Governance

2,350

92,813

Local Governance

0

28,692

Total

245,658

482,667

> Back to contents list

2.7 Water supply and wastewater

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

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

Key highlights and priorities for the Annual Budget 2017/2018

Hunua 4 watermain

Works are progressing to install a new water main to cater for population growth and increasing the security of Auckland's water supply. The 32-kilometre-pipeline route started at the Redoubt North Reservoir in Manukau Heights reaching the reservoir in Khyber Pass Road, Grafton. Construction of the final section of the Hunua 4 watermain, from Market Road to Khyber Pass, is scheduled to start in 2018.

Mangere: biological nutrient removal upgrades

Preliminary earthworks are under way for a three-year, $136 million upgrade of Watercare's Mangere wastewater treatment plant.

The upgrade's centrepiece is an additional Biological Nutrient Removal (BNR) facility, which will be situated to the south of the existing operations. The project also includes the construction of a new road linking Ascot Road and Puketutu Island, and an embankment that will shield the plant's neighbours from the new facility and ultimately provide a pathway between the Watercare Coastal Walkway and the Greenwood Road Park.

Glen Eden wastewater storage tank and pipeline

The system needs to be upgraded to support the significant population growth predicted for Glen Eden. The population is likely to rise from 24,700 to approximately 45,600 by 2051.

The existing wastewater network in the Glen Eden area does not have enough capacity to manage flows during wet weather events. During heavy rainfalls, the network overflows diluted wastewater into the surrounding environment, as well as private properties. The new storage tank and pipeline will cater for growth and reduce these overflows from an average of 10 per year to two or fewer.

Māori transformational activities

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

  • Whai Tiaki - Māori cultural well-being activities.

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

The Watercare Mana Whenua Kaitiaki forum and its engagement process will continue in 2017/2018.

Financial information

$000

Capital spend

2017/2018

Wastewater treatment and disposal

223,063

Central Interceptor

2,017

Northern Interceptor

4,626

Other

32,863

Southern Interceptor

5,000

Wastewater treatment

100,826

Water collection

77,731

Water supply

135,401

Hunua No. 4 Water Supply

3,360

North Harbour 2 Watermain

5,544

Other

16,041

Treated Water Network

63,662

Waikato Augmentation and Second Pipeline

13,050

Water Treatment Plant

33,743

Total

358,464

 

$000

Operating spend

Non-rates revenue

Operating expenditure

Wastewater treatment

377,011

343,629

Water supply

203,668

192,614

Total

580,679

536,243

 

> Back to contents list

Wāhanga 3: Ā tātou pūtea

Part 3: Our finances

3.1 Financial overview

Introduction

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

In 2017/2018 we will continue to focus on controlling core costs and increasing our capacity to invest in the city. We have been able to reduce the average general rates increase for 2017/2018 from 3.5 per cent to 2.5 per cent while maintaining our AA credit rating. Our key budget numbers are as follows:

Capital investment

$2 billion

 

Operating expenditure

$3.8 billion

 

New assets

$1.4 billion

Renewals

$0.6 billion

Core costs

$2.4 billion

Interest and depreciation

$1.4 billion

Capital investment and debt levels

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

In 2017/2018 Auckland Council is planning to invest more than ever before in new assets for the city. Of a total capital budget of $2 billion, 70 per cent is being spent to help cater for population growth or to improve levels of service.

A key area of the council's focus is investment in core infrastructure to improve the transport network and to support new houses. Transport investment makes up 42 per cent of capital spend and another 18 per cent is spent on water network infrastructure (water supply, wastewater and stormwater management).

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

Renewing or replacing existing assets: 30%

Supporting population growth: 40%

Service level improvement: 30%

The following tables show how we plan to fund our capital expenditure and other capital outflows in 2017/2018.

Capital expenditure and other outflows

$ million

 Annual plan 2017/18

Growth

798

Service level improvement

609

Renewals

610

Weathertightness claims and other outflows

14

 

Total

2,031

 

Funding sources

$ million

 Annual plan 2017/18

Subsidies

403

Development contributions

214

Asset sales (incl. financial assets)

340

Operating cash surplus

720

Borrowings

354

Total

2,031

The continued investment in Auckland will see us increasing council debt from $8.2 billion to $8.5 billion.

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

Our financial strategy sets limits on the council's borrowing, to maintain debt at a sustainable level. While total group debt is projected to reach $11.4 billion by 2025, it will still remain at a prudent level in comparison to our income. This prudent approach to debt is a key reason why we have a credit rating of AA from Standard & Poor's.

Operating expenditure and revenue sources

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

A staff review of the planned operating expenditure for 2017/2018 set in the Long-term Plan 2015-2025 identified a number of cost pressures and savings opportunities in day-to-day costs as well as changes to the capital related costs through updated interest rates and project timings. The net impact of these changes is a total operating expenditure budget of $3.8 billion.

The table below shows how council has worked to contain growth in core operating costs to around the rate of inflation while capital driven costs are growing at a faster rate, reflecting our focus on investment in new assets for the city.

Figure 3: Council group operating expenditure

Text description of figure 3 column graph is after this image

Figure 3 text description:

Former councils

Year

Core operating costs

Interest

Depreciation

2008

1857

175

483

2009

2124

203

529

2010

2357

228

605

Actual results

Year

Core operating costs

Interest

Depreciation

2011

2151

297

610

2012

2114

299

624

2013

2004

345

681

2014

2058

372

737

2015

2173

422

778

2016

2174

417

828

Annual plans

Year

Core operating costs

Interest

Depreciation

2017

2242

465

885

2018

2270

465

925

End of figure 3 text description.

The following tables show our operating expenditure and funding sources for 2017/2018.

Operating expenditure

$ million

 Annual plan 2017/18

Staff

864

Interest

465

Depreciation

925

Other

1,553

Total

3,807

 

Funding sources

$ million

 Annual plan 2017/18

Rates

1,715

Fees and user charges

1,256

Subsidies and grants

274

Other

356

Total

3,601

The total of our operating funding sources is less than the total budgeted operating expenditure for 2017/2018 due to our plan to move to full funding of depreciation over the current long-term plan period. Depreciation ($925 million) is a non-cash item that represents the cost of our asset base spread across the asset lives. Our total operating funding sources of $3.6 billion is greater than our cash requirement of $2.9 billion, creating a cash surplus of $720 million to fund capital expenditure.

To help pay for continued investment in Auckland (including the $1.4 billion investment in new assets for 2017/2018) we will:

  • increase general rates by an average of 2.5 per cent (an average increase of $1.10 per week for residential properties)
  • retain the three-year Interim Transport Levy of $114 per year for residential and farm/lifestyle properties and $183 for business properties
  • water prices will increase by 2.5 per cent, and wastewater services will increase by 3.3 per cent (about $0.49 per week for a household with average water use)
  • introduce a new targeted rate on commercial accommodation providers to recover $13.45 million, being 50 per cent of our budgeted spend on visitor attraction and major events.

> Back to contents list

3.2 Prospective financial statements and notes

Prospective statement of comprehensive revenue and expenditure

Auckland Council group consolidated
$000

Financial year ending 30 June

Annual Plan

2016/17

Long-term Plan

2017/18

Annual Plan

2017/18

Variance from LTP 2017/18

 

Notes

 

Revenue

blank

blank

blank

blank

blank

Rates

1,636,654

1,726,803

1,710,004

(16,799)

1

Fees and user charges

1,227,958

1,401,158

1,255,681

(145,477)

2

Grants and subsidies

499,971

439,444

676,788

237,344

3

Development and financial contributions

163,318

261,579

214,359

(47,220)

4

Vested assets

195,852

177,539

201,594

24,055

blank

Other revenue

239,767

206,178

277,405

71,227

2

Finance revenue

5,394

5,863

8,171

2,308

blank

Total revenue

3,968,914

4,218,564

4,344,002

125,438

 

blank

blank

blank

blank

blank

blank

Expenditure

blank

blank

blank

blank

blank

Employee benefits

810,916

781,363

864,197

82,834

5

Depreciation and amortisation

885,370

923,480

924,899

1,419

blank

Grants, contributions and sponsorship

124,891

123,819

134,426

10,607

blank

Other operating expenses

1,381,651

1,481,273

1,418,551

(62,722)

6

Finance costs

465,403

518,426

464,802

(53,624)

7

Total expenditure

3,668,231

3,828,361

3,806,875

(21,486)

 

 

blank

blank

blank

blank

blank

Operating surplus

300,683

390,203

537,127

146,924

 

blank

blank

blank

blank

blank

blank

Share of surplus in associates and joint ventures

55,109

47,265

61,449

14,184

blank

blank

blank

blank

blank

blank

blank

Surplus before income tax

355,792

437,468

598,576

161,108

 

blank

blank

blank

blank

blank

blank

Income tax expense

27,011

37,063

30,825

(6,238)

blank

blank

blank

blank

blank

blank

blank

Surplus after income tax

328,781

400,405

567,751

167,346

 

 

 

 

 

 

 

Surplus after income tax is attributable to:

blank

blank

blank

blank

blank

Ratepayers of Auckland Council

328,781

400,405

567,751

167,346

blank

blank

blank

blank

blank

blank

blank

Other comprehensive revenue

blank

blank

blank

blank

blank

Net gain on revaluation of property, plant and equipment

1,018,085

424,104

1,309,459

885,355

blank

Tax on revaluation of property, plant and equipment

(91,295)

0

(126,398)

(126,398)

blank

Total other comprehensive revenue

926,790

424,104

1,183,061

758,957

 

blank

blank

blank

blank

blank

blank

Total comprehensive revenue

1,255,571

824,509

1,750,812

926,303

 

blank

blank

blank

blank

blank

blank

Total comprehensive revenue is attributable to:   blankblank

blank

Ratepayers of Auckland Council

1,255,571

824,509

1,750,812

926,303

 

 

Notes to previous table:

  1. The lower rates revenue reflects lower general rates increases in 2016/2017 and 2017/2018 compared with the 3.5 per cent increases projected in the Long-term Plan 2015-2025 (LTP). This is partially offset by a new targeted rate on commercial accommodation providers.
  2. The decrease in fees and user charges is primarily driven by lower revenue from public transport operators, water connection and supply fees and changes to waste services (all of which are largely off-set by reduced expenditure). It is also reduced by a reclassification to "other revenue".
  3. The increase in subsidies and grants is mainly due to the earlier central government contribution towards the costs already incurred for the City Rail Link.
  4. Population growth is continuing to drive growth in development contribution revenue but at a level lower than projected in the LTP.
  5. The increase in staff costs can be attributed to insourcing of parks maintenance contracts, an increase in building and resource consent levels which is on-chargeable as fees and user charges, and additional transport business growth related to public transport. In addition to this there have been corrections in coding between employee benefits and other operating expenses in Watercare Services Limited and Regional Facilities Auckland that show as an increase in the former and a reduction in the latter. 
  6. Decreases in inflation projections and lower expenditure paid to public transport operators (see note 2 for corresponding decrease in public transport operator revenue) have driven lower other operating expenses.
  7. Finance costs are lower than projected in the LTP due to a decrease in forecast interest rates, combined with lower than anticipated debt levels.

Prospective statement of changes in equity

Auckland Council group consolidated
$000

Financial year ending 30 June

Annual plan 2016/17

Long-term Plan
2017/18

Annual plan 2017/18

Variance from LTP 2017/18

Notes

Contributed equity blank blank blank blankblank
Opening balance

26,728,538

26,734,382

26,728,538

(5,844)

1

Surplus after income tax

0

0

0

0

blank
Other comprehensive revenue

0

0

0

0

blank
Total comprehensive revenue

0

0

0

0

 
Transfer to/ (from) reserves

0

0

0

0

blank
Balance as at 30 June

26,728,538

26,734,382

26,728,538

(5,844)

 
blankblankblankblankblankblank
Accumulated funds blank blank blank blankblank
Opening balance

740,457

1,303,144

579,769

(723,375)

2

Surplus/ (deficit) after income tax

328,781

400,405

567,751

167,346

3

Other comprehensive revenue

0

0

0

0

blank
Total comprehensive revenue

328,781

400,405

567,751

167,346

 
Transfer to/ (from) reserves

4,964

6,702

9,224

2,522

blank
Balance as at 30 June

1,074,202

1,710,251

1,156,744

(553,507)

 
blankblankblankblankblankblank
Reserves blank blank blank blankblank
Opening balance

5,332,417

6,274,916

6,861,523

586,607

4

Surplus after income tax

0

0

0

0

blank
Other comprehensive revenue

926,789

424,104

1,183,061

758,957

blank
Total comprehensive revenue

926,789

424,104

1,183,061

758,957

 
Transfer to/ (from) reserves

(4,964)

(6,702)

(9,224)

(2,522)

blank
Balance as at 30 June

6,254,242

6,692,318

8,035,360

1,343,042

 
blank blank blank blank blankblank
Total equity (1) blank blank blank blank

5

Opening balance

32,801,412

34,312,442

34,169,830

(142,612)

blank
Surplus after income tax

328,781

400,405

567,751

167,346

blank
Other comprehensive revenue

926,789

424,104

1,183,061

758,957

blank
Total comprehensive revenue

1,255,570

824,509

1,750,812

926,303

 
Transfer to/ (from) reserves

0

0

0

0

blank
Balance as at 30 June

34,056,982

35,136,951

35,920,642

783,691

 

 Notes to table:

  1. The reduction in opening equity is the result of restructuring loans within the group in 2015/2016.   
  2. The reduction in opening accumulated funds reflects a lower closing position in the audited 2015/2016 annual accounts.
  3. For variances in surplus after tax and other comprehensive revenue refer to notes on the Prospective statement of comprehensive revenue and expenditure.
  4. The variance on reserves opening balance and movement is due to the early revaluation in 2015/2016 of council land and buildings due to large increases in property values across Auckland.
  5. There is no minority interest in the group. Total equity represents ratepayer equity.
     

Prospective statement of financial position

Auckland Council group consolidated
$000

Financial year ending 30 June

Annual plan

2016/17

Long-term Plan

2017/18

Annual plan

2017/18

Variance from LTP

2017/18

Notes

 

ASSETS

blank

blank

blank

blank

blank

Current assets

blank

blank

blank

blank

blank

Cash and cash equivalents

329,518

240,000

240,000

0

blank

Receivables and prepayments

262,339

282,378

281,657

(721)

blank

Other financial assets

265,760

365,956

101,812

(264,144)

1,2

Derivative financial instruments

1,594

556

0

(556)

blank

Inventories

17,129

23,725

29,418

5,693

1

Non-current assets held for sale

52,650

55,973

114,504

58,531

3

Total current assets

928,990

968,588

767,391

(201,197)

blank

blank

blank

blank

blank

blank

blank

Non-current assets

blank

blank

blank

blank

blank

Receivables and prepayments

25,616

108,294

78,840

(29,454)

1

Other financial assets

138,515

160,973

151,982

(8,991)

blank

Derivative financial instruments

200,068

93,748

263,000

169,252

1

Property, plant and equipment

42,571,345

44,031,428

44,763,460

732,032

1

Intangible assets

389,031

465,568

352,534

(113,034)

1

Biological assets

1,704

1,764

2,000

236

blank

Investment property

559,574

457,281

681,000

223,719

1

Investments in associates and joint ventures

900,045

861,889

1,082,610

220,721

5

Total non-current assets

44,785,898

46,180,945

47,375,426

1,194,481

blank

blank

blank

blank

blank

blank

blank

TOTAL ASSETS

45,714,888

47,149,533

48,142,817

993,284

 

blank

blank

blank

blank

blank

blank

LIABILITIES

blank

blank

blank

blank

blank

Current liabilities

blank

blank

blank

blank

blank

Employee entitlements

87,355

82,887

96,859

13,972

1

Payables and accruals

753,670

735,552

757,124

21,572

1,5

Borrowings

1,611,654

1,749,481

1,363,488

(385,993)

4

Derivative financial instruments

1,913

40,553

7,000

(33,553)

1

Tax payable

2,048

0

0

0

1

Provisions

60,672

35,620

70,483

34,863

1

Total current liabilities

2,517,312

2,644,093

2,294,954

(349,139)

blank

blank

blank

blank

blank

blank

blank

Non-current liabilities

blank

blank

blank

blank

blank

Employee entitlements

5,316

5,459

5,381

(78)

blank

Payables and accruals

61,525

81,229

82,892

1,663

blank

Borrowings

7,153,552

7,621,022

7,179,966

(441,056)

4

Derivative financial instruments

485,034

235,666

1,207,000

971,334

1

Provisions

242,725

190,124

198,187

8,063

1

Deferred tax liabilities

1,192,442

1,234,989

1,253,795

18,806

1

Total non-current liabilities

9,140,594

9,368,489

9,927,221

558,732

blank

blank

blank

blank

blank

blank

blank

TOTAL LIABILITIES

11,657,906

12,012,582

12,222,175

209,593

 

blank

blank

blank

blank

blank

blank

NET ASSETS

34,056,982

35,136,951

35,920,642

783,691

 

blank

blank

blank

blank

blank

blank

Equity

blank

blank

blank

blank

blank

Contributed equity

26,728,538

26,734,382

26,728,538

(5,844)

blank

Accumulated funds

1,074,202

1,710,251

1,156,744

(553,507)

1

Reserves

6,254,242

6,692,318

8,035,360

1,343,042

1

Total ratepayers equity

34,056,982

35,136,951

35,920,642

783,691

blank

blank

blank

 

 

 

 

TOTAL EQUITY

34,056,982

35,136,951

35,920,642

783,691

 


 

Notes to previous table:

  1. Variances are due to the updating of opening balances to reflect balances in the audited 2015/16 annual accounts.
  2. The anticipated increase in capital drawdown of the diversified financial asset portfolio reduces the projected level of financial assets and borrowings.
  3. The asset sales target is adjusted to reflect a change in classification of certain capital revenue items related to property development to asset sales.
  4. The decrease in borrowings is due to lower opening balances from the audited 2015/2016 annual accounts as well as an increase in capital subsidy revenue from central government.
  5. Payables and accruals are expected to increase based on a higher capital expenditure programme.

Prospective statement of cash flows

Auckland Council group consolidated
$000

Financial year ending 30 June

Annual Plan

2016/17

Long-term Plan

2017/18

Annual Plan

2017/18

Variance from LTP

2017/18

Notes

 

Cash flows from operating activities

blank

blank

blank

blank

blank

Receipts from rates revenue

1,627,888

1,721,390

1,710,004

(11,386)

blank

Receipts from customers and other services

2,103,403

2,302,923

2,391,762

88,839

blank

Interest received

5,394

5,863

8,171

2,308

blank

Dividends received

54,416

46,826

59,805

12,979

blank

Payments to suppliers and employees

(2,296,206)

(2,484,469)

(2,380,242)

104,227

blank

Interest paid

(454,767)

(510,884)

(457,207)

53,677

blank

Income tax refund/(paid)

(9,412)

(15,390)

(7,763)

7,627

 

Net cash from operating activities

1,030,716

1,066,259

1,324,530

258,271

1

blank

blank

blank

blank

blank

blank

Cash flows from investing activities

blank

blank

blank

blank

blank

Proceeds from sale of other financial assets

100,024

18,016

236,401

218,385

2

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

87,407

52,651

114,505

61,854

3

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

(1,945,333)

(1,643,479)

(2,016,720)

(373,241)

4

Proceeds from community loan repayments

0

0

2,350

2,350

blank

Acquisition of other financial assets

(5,414)

(6,497)

(6,497)

0

blank

Advances to external parties

(9,000)

(7,000)

(8,876)

(1,876)

 

Net cash from investing activities

(1,772,316)

(1,586,309)

(1,678,837)

(92,528)

blank

blank

blank

blank

blank

blank

blank

Cash flows from financing activities

blank

blank

blank

blank

blank

Proceeds from borrowings

2,222,100

2,160,690

1,965,961

(194,729)

blank

Repayment of borrowings

(1,480,500)

(1,640,640)

(1,611,654)

28,986

 

Net cash from financing activities

741,600

520,050

354,307

(165,743)

5

 

 

 

 

 

 

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

0

0

0

0

blank

Opening cash and cash equivalents and bank overdrafts

329,518

240,000

240,000

0

blank

Closing cash and cash equivalents and bank overdrafts

329,518

240,000

240,000

0

 

 Notes to table:

  1. Variances in cash flows from operating activities reflect the updated projections included in the Prospective statement of comprehensive revenue and expenditure. In addition to this the forecast changes in working capital due to adjusted opening balances and a change in revenue and expenditure profiles is forecast to lead to higher cash flows from operations.
  2. The increase in proceeds from the sale of other financial assets is due to the anticipated increase in capital drawdown of the diversified financial asset portfolio.
  3. The asset sales target is adjusted to reflect a change in classification of certain capital revenue items related to property development to asset sales.
  4. The increase in purchase of property, plant and equipment is mainly due to increased capital expenditure on transport activities as well as carry-forward of capital expenditure from prior years.
  5. The decrease in borrowing requirement is due to capital grants receivable from Central Government for the City Rail Link, partially offset by additional borrowings for an increase in capital expenditure budgets and a lower projection of development contributions revenue.

3.2.1 Notes to the prospective financial statements

Note 1: Statement of significant accounting policies
Reporting Entities

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

Financial information within this Annual Budget 2017/2018 is prepared and disclosed on a full group basis (except where specifically stated otherwise). The Auckland Council Group (the Group) consists of the council, its CCOs, associates and joint ventures. All entities are domiciled in New Zealand.

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

The council has a balance date of 30 June and these prospective financial statements are for the period from 1 July 2017 to 30 June 2018. The actual results achieved for the period covered by this plan are likely to vary from the information presented in this document, and these variances may be material. The council does not intend to update the prospective financial statements after publication.

Statement of Compliance

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

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

Basis of Preparation

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

These financial statements are prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP), the LGA 2002, the LGACA 2009 and the Local Government (Financial Reporting and Prudence) Regulations2014 and comply with PBE Accounting Standards. In particular, these prospective financial statements have been prepared in accordance with PBE Financial Reporting Standard-42: Prospective Financial Statements.

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

These statements were adopted by the Governing Body of Auckland Council on 29 June 2017.

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

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

Basis of Consolidation

The prospective consolidated financial statements include the projections of the council and its subsidiaries which is added on a line-by-line basis, together with the projections of its associates, and joint ventures, both of which are accounted for using the equity method.

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

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

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

Comparative Information

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

Cost Allocation

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

  • Direct costs are those costs directly attributable to a significant activity.
  • Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific significant activity. Indirect costs are allocated to significant activities using appropriate costs drivers.
Significant Judgements and Estimates

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

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

The present value of future cash flows for significant provisions such as weather tightness and contaminated land and closed landfills are calculated using a discount rate of 5.40 per cent, being the average forecast cost of funds for the Group. The risk premium specific to the liability is included in the undiscounted estimate of future cash flows.

Summary of Significant Accounting Policies
Item Policy
Prospective statement of comprehensive revenue and expenditure  
RevenueThe Group derives its revenue from exchange or non-exchange transactions. Exchange transaction revenue arises when the Group provides goods or services to a third party and directly receives approximately equal value in return. Non-exchange transaction revenue arises when the Group receives value from another party without giving approximately equal value directly in exchange for the value received. Non-exchange revenue comprises rates, and transfer revenue. Transfer revenue includes grants and subsidies and fees and user charges derived from activities that are partially funded by rates. Revenue is measured at fair value which is usually the cash value of a transaction. 
Type Recognition & measurement
RatesIn full at point of issuance of the ratings notice and measured at the amount assessed, which is the fair value of the cash received or receivable.
Grants When they become receivable unless there is an obligation in substance to return the funds. If there is such an obligation, the grants are initially recorded at fair value as grants received in advance and recognised as revenue when conditions of the grant are satisfied.
Development contributionsWhen the council is capable of providing the service for which the contribution was levied.
Financial contributionsWhen they are expended on the activity for which the contribution was levied.
Vested assets1When control of the asset is transferred to the Group at its fair value.
Fines and infringementsWhen the infringement notice is issued.
Finance revenue2Using the effective interest method.
Dividend revenueWhen the Group's right to receive the dividend is established.
Fees and user charges 
Water and wastewaterWhen invoiced or accrued in the case of unbilled services at fair value of cash received or receivable.
Sale of goodsWhen the substantial risks and rewards of ownership have been passed to the buyer.
Sale of servicesOn a percentage of completion basis over the period of the service supplied.
Port operationsIn the period the services are rendered, by reference to the percentage of completion of the specific transaction.
ConsentsBy reference to the percentage of completion of the transaction at balance date based on the actual service rendered
Licences and permitsOn receipt of application as these are non-refundable.
  1. Arise when property developers undertake development which requires them to build infrastructure in the development area. When the development is complete these are vested to the Group.
  2. Includes interest revenue and realised gains from the early close-out of derivative positions.
Expenditure blank
Employee benefitsEmployee entitlements for salaries and wages, annual leave, long service leave and other similar benefit are recognised as an expense and liability when they accrue to employees.
Grants, contributions and sponsorship expenseWhere grants and subsidies are discretionary, the expense is recognised when the Group has advised its decision to pay and when conditions, if any, are satisfied. Non-discretionary grants are recognised on receipt of application that meets the specified criteria.
Finance CostsFinance costs include interest expense, the unwinding of discounts on provisions and financial assets; and net realised losses on the early close-out of derivatives. Interest expense is recognised using the effective interest rate method. Interest expense includes the amortisation of borrowing costs recognised over the borrowing term.
Income taxThe council is exempt from income tax under the Income Tax Act 2007 except for certain income received from CCOs and port-related earnings.

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

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

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

Operating Leases Lessee

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

Lessor

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

Prospective statement of financial position  
Cash and cash equivalentsCash and cash equivalents are made up of cash on hand, on-demand deposits and other short-term highly liquid investments. The carrying value of cash at bank and short-term deposits with maturities less than three months approximates their fair value.
Receivables and prepaymentsReceivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

Provision for impairment of receivables

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

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

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

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

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

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

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

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

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

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

Cash flow hedges

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

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

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

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

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

Initial recognition and subsequent measurement

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

Revaluation

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

Depreciation

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

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

Asset class

Estimated useful life (years)

Revaluation method
Infrastructure

 

 
Land

Indefinite

Cost less accumulated impairment losses
Roads

10-120

Depreciated replacement cost
Water and wastewater

3-200

Depreciated replacement cost
Machinery

3-200

Depreciated replacement cost
Stormwater

10-200

Depreciated replacement cost
Other infrastructure

10-120

Depreciated replacement cost
Operational

 

 
Land and buildings

Land - Indefinite

Buildings -1-101

Market value based on recent equivalent sales information.

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

Marina structures

40-100

Depreciated replacement cost and cash flow method
Train stations

5-99

Depreciated replacement cost
Bus stations and shelters

10-99

 
Works of art

Indefinite

Fair value
Rolling stock

2-35

Depreciated replacement cost
Wharves

2-100

Depreciated replacement cost
Heritage assets

various

Deemed cost less accumulated impairment losses
Other operational 

1-100

Cost less accumulated depreciation and impairment losses
Restricted

 

 
Parks and reserves

Indefinite

Fair value
Improvements

3-100

Cost less accumulated depreciation and impairment losses
Buildings

5-90

Depreciated replacement cost

Disposals

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

Service concession assets

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

Intangible assets Initial recognition and subsequent measurement

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

Amortisation

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

Asset class

Estimated useful life (years)

Subsequent measurement
Computer software

1-15

Cost less accumulated amortisation and impairment
Intellectual property

4-35

Cost less accumulated amortisation and impairment
Other intangible assets

1-63

Cost less accumulated amortisation and impairment

Disposals

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

Investment propertyInvestment property includes land, commercial buildings and water space licences held to generate income. Investment property is initially recognised at cost and subsequently measured at fair value, determined annually by an independent registered valuer. Gains or losses arising from fair value changes are included in surplus or deficit. Investment properties are valued individually and not depreciated.
Asset impairment Impairment of property, plant and equipment and intangible assets

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

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

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

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

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

Impairment of financial assets

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

Employee entitlementsEmployee entitlements to be settled within 12 months are reported at the amount expected to be paid. The liability for long-term employee entitlements is reported at the present value of estimated future cash outflows.
Payables and accrualsCurrent payables and accruals are recognised at cost, are non-interest bearing and normally settled on 30-day terms; therefore the carrying value approximates fair value. Non-current payables and accruals are measured at the present value of the estimated future cash outflows.
BorrowingsBorrowings are initially recognised at face value plus transaction costs and are subsequently measured at amortised cost using the effective interest rate method.
ProvisionsProvisions are recognised in the statement of financial position only where the Group has a present legal or constructive obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation and the amount can be estimated reliably.

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

Ratepayer equityRatepayer equity is the Auckland community's interest in the Group. Ratepayer equity has been classified into various components to identify those portions of equity held for specific purposes.  Contributed equity is the net asset and liability position excluding restricted reserves at the time the council was formed.
Other policies  
Foreign currency transactionsForeign currency transactions are translated using the exchange rate at the dates of transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from translation, using the exchange rates at balance date, of monetary assets and liabilities denominated in foreign currencies are recognised in the Prospective statement of comprehensive revenue and expenditure, except when deferred in other comprehensive revenue as qualifying cash flow hedges.

 

Note 2: Significant forecasting assumptions

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

Assumption data for Annual Plan 2017/2018 and source Risks and consequences
Population and development growth (including growth in the rating base)
Auckland's rapid population and development growth are key drivers of both the demand for council services and also many of its revenue sources.

Our forecast of population has been updated slightly since publishing our 10-year budget. Latest forecasts project the population of Auckland to increase by over 24,000 (1.5 per cent) in 2017/2018.

The council projects a growth in its rating base of 1.69 per cent in 2017/2018. The council uses this as an indicative adjustment to the total nominal rates increase to provide an indication of the average rates increase for existing ratepayers.

The council has made assumptions around the rate, level, location and type of residential and non-residential development growth that will occur in the future. Where this growth results in additional infrastructure requirements council can collect a portion of the cost through development contributions. Development contribution revenue is forecasted to be $214 million in 2017/2018.

Level of uncertainty - Low

Risk- Growth differs significantly from that forecasted.

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

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

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

The updated inflation rates for 2017/2018 operating expenditure are:

Staff costs

2.2%

Other

1.5%

Inflation rates for capital expenditure range from 1.9 to 2.7 per cent.

Level of uncertainty - Moderate

Risk - actual inflation is different from forecast inflation

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

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

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

The council has assumed that it maintains its AA credit rating in preparing the interest rate projections. For the 2017/2018 year the forecast average interest rate on council borrowing is 5.40 per cent, and on cash holdings is 2 per cent.

 

 

 

Level of uncertainty - Low

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

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

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

$000

Financial year ending 30 June

Annual plan

2016/17

Long-term Plan

2017/18

Annual plan

2017/18

Variance from LTP

2017/18

blank

blank

blank

blank

blank

Operating surplus/ (deficit) after income tax per Prospective Statement of comprehensive revenue

328,781

400,405

567,751

167,346

blank

blank

blank

blank

blank

Items recognised as income in Statement of comprehensive revenue and as capital expenditure funding sources in Funding Impact Statement:

blank

blank

blank

blank

Capital subsidies

(240,362)

(171,772)

(403,083)

(231,311)

Development contributions

(163,318)

(261,579)

(214,359)

47,220

blank

blank

blank

blank

blank

Non-cash items recognised in Statement of comprehensive revenue and not included in Funding Impact Statement:

blank

blank

blank

blank

Depreciation

885,370

923,480

925,591

2,111

Depreciation of make good provision added back in funding impact statement

(2,213)

0

(2,211)

(2,211)

Discounting of provisions

12,849

7,542

9,806

2,264

Recognition of revenue from vested assets

(195,852)

(177,539)

(201,594)

(24,055)

Amortisation of prepaid leases

(729)

(914)

(1,000)

(86)

blank

blank

blank

blank

blank

Other reconciling items:

blank

blank

blank

blank

Retro-fit your home targeted rate included in funding impact statement but not recognised as revenue in the statement of comprehensive income

0

0

4,706

4,706

Retro-fit your home targeted rate interest component recognised as revenue in the statement of comprehensive income

0

0

(2,356)

(2,356)

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

(5,122)

(3,956)

(4,644)

(688)

Prepaid lease revenue recognised in funding impact statement

6,210

24,800

18,015

(6,785)

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

17,599

21,673

23,062

1,389

blank

blank

blank

blank

0

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

643,213

762,140

719,684

(42,456)

 

Note 4: Prospective prudential financial ratios

Borrowing

$000

Financial year ending 30 June

Annual Plan 2016/17

 

Long-term Plan 2017/18

 

Annual Plan 2017/18

 

Variance from LTP 2017/18

 

Auckland Council Group borrowing

8,765,206

9,370,503

8,543,454

(827,049)

Less Watercare Services Limited

(1,669,495)

(2,092,262)

(1,715,435)

376,827

Other adjustments:

blank

blank

blank

blank

Liquid assets (Diversified Assets Portfolio)

(265,760)

(365,956)

(101,812)

264,144

Electric Motor Units (trains) borrowing (NZTA share)

(294,919)

(278,262)

(267,620)

10,642

Cash and cash equivalents

(329,518)

(240,000)

(240,000)

0

Net borrowing

6,205,514

6,394,023

6,218,587

(175,436)

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

8,067,307

8,570,408

8,441,936

(128,472)

Revenue

$000

Financial year ending 30 June

Annual plan 2016/17

 

Long-term Plan 2017/18

 

Annual Plan 2017/18

 

Variance from LTP 2017/18

 

Total rates per statement of comprehensive revenue

1,636,654

1,726,803

1,710,004

(16,799)

Add back internal rates elimination

44,576

47,051

44,458

(2,593)

Gross rates

1,681,230

1,773,854

1,754,462

(19,392)

Total revenue per statement of comprehensive revenue

3,968,914

4,218,564

4,344,002

125,438

Adjustments:

blank

blank

blank

blank

Less back vested assets

(195,852)

(177,539)

(201,594)

(24,055)

Add back internal rates elimination

44,576

47,051

44,459

(2,592)

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

49,987

43,311

56,805

13,494

Less development contributions to fund capital expenditure

(123,437)

(222,200)

(170,890)

51,310

Less subsidies and grants to fund capital expenditure

(240,362)

(171,772)

(403,083)

(231,311)

Gross Group Operating Revenue

3,503,826

3,737,415

3,669,699

(67,716)

Less Watercare Services Limited

(550,510)

(600,181)

(580,679)

19,502

Other adjustments:

blank

blank

blank

blank

Electric Motor Units (trains) Revenue (NZTA payments)

(19,750)

(20,722)

(19,225)

1,497

Adjusted revenue for ratio calculation

2,933,566

3,116,512

3,069,795

(46,717)

Interest

$000

Financial year ending 30 June

Annual plan 2016/17

 

Long-term Plan 2017/18

 

Annual Plan 2017/18

 

Variance from LTP 2017/18

 

Auckland Council Group interest expense

452,550

510,886

454,995

(55,891)

Auckland Council Group interest income

(5,394)

(5,863)

(8,171)

(2,308)

Less Watercare Services Limited

(91,781)

(112,435)

(94,827)

17,608

Other adjustments:

blank

blank

blank

blank

Electric Motor Units (trains) Interest (NZTA funded)

(16,781)

(17,530)

(16,163)

1,367

Net interest expense

338,594

375,058

335,834

(39,224)

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

440,035

467,477

460,469

(7,008)

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

420,308

443,464

438,616

(4,848)

Ratios

Financial year ending 30 June

Annual plan 2016/17

Long-term Plan 2017/18

Annual Plan 2017/18

Variance from LTP 2017/18

Net debt as a percentage of total revenue

211.5%

205.2%

202.6%

-2.6%

Net interest as a percentage of total revenue

11.5%

12.0%

10.9%

-1.1%

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

20.1%

21.1%

19.1%

-2.0%

Notes:

  1. Watercare is excluded from the calculation of prudential ratios as it is not reliant on Auckland Council to fund its operation.
  2. The Diversified Financial Assets Portfolio is a portfolio of liquid assets that can be converted to cash if required in an emergency.  For the purposes of the prudential ratios the value of this portfolio is offset against borrowings.
  3. Borrowing, revenue and interest have been adjusted for the purchase of Electric Motor Units for Auckland Transport for which there is a dedicated loan from central government.
  4. Development Contributions (DCs) are recognised as operating revenue where they are charged to fund interest costs on DC-related borrowing.
     
Note 5: Reserve funds
Auckland Council Group

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

Reserve Purpose Activities
Cash flow hedge reserve Gains from revaluation of the Diversified Financial Assets portfolio  
Available-for-sale investment revaluation reserve Recognition in group accounts of associated' reserves  
Share of associates' reserves Accumulated gains from asset revaluation  
Asset revaluation reserve Accumulated gains from asset revaluation  
Restrict equity reserves    
Statutory funds (Off street parking) Funds accumulated under legislation (primarily related to subdivisions or off-street parking). Parking and enforcement
Trust and bequests These trusts are primarily related to assets held by council. The trust deeds restrict council's action in relation to these assets. Various
Other restricted equity Reserve funds related to particular projects or assets whereby council is restricted in its decision-making ability. Various
Targeted rates reserves    
Central City targeted Rate reserve Targeted rate collected for enhancement of central business district as a place to work, live, visit and do business. Regional planning
Glorit Flood Gate Restoration targeted rate reserve Targeted rate being collected to recover the costs of the restoration of the Glorit flood gate. Stormwater management
Riverhaven Drive targeted rate reserve Targeted rate being collected to recover the costs of the construction of a road. Roads and footpaths
Jackson Crescent wastewater targeted rate reserve Targeted rate collected to recover the cost of the council providing financial assistance to connect to a wastewater scheme. Wastewater treatment
Point Wells wastewater targeted rate reserve Targeted rate collected to recover the cost of the council providing financial assistance to connect to a wastewater scheme. Wastewater treatment
Harbourview Orangihina Park targeted rate reserve Targeted rate collected for development of Harbourview Orangihina Park. Regional parks, sports and recreation
Open space/ Volcanic cones Legacy targeted rates. No longer levied. Regional parks, sports and recreation
Araparera Araparera Forest harvest proceeds set aside for roading development in the area. Property development

The funding flows for these reserves are:

$000

Financial year ending 30 June

Annual report 2016

Deposits

Withdrawals

Budget 2017

Deposits

Withdrawals

Annual Plan 2018

Cash flow hedge reserve

(3,000)

 

 

(3,000)

 

 

(3,000)

Available-for-sale investment revaluation reserve

12,000

blank

blank

12,000

blank

blank

12,000

Share of associates' reserves

451,000

blank

blank

451,000

blank

blank

451,000

Asset revaluation reserve

6,105,021

227,832

 

6,332,853

1,183,061

 

7,515,914

Restricted equity reserves

 

 

 

 

 

 

 

Statutory funds

10,142

203

(407)

9,938

193

(297)

9,834

Trust and bequests

1,553

30

(19)

1,564

31

(19)

1,576

Other restricted equity

26,366

448

(1,886)

24,928

5,992

(8,735)

22,185

Total restricted equity

38,061

681

(2,312)

36,430

6,216

(9,051)

33,595

Targeted rates reserves

 

 

 

 

 

 

 

Central City targeted Rate reserve

25,333

21,533

(19,486)

27,380

23,447

(26,576)

24,251

Glorit Flood Gate Restoration targeted rate reserve

(103)

38

(5)

(70)

38

(4)

(36)

Riverhaven Drive targeted rate reserve

(861)

72

(49)

(838)

72

(39)

(805)

Jackson Crescent wastewater targeted rate reserve

(4)

1

0

(3)

1

0

(3)

Point Wells wastewater targeted rate reserve

(102)

14

(3)

(91)

15

(3)

(79)

Harbourview Orangihina Park targeted rate reserve

1,405

29

0

1,434

28

0

1,462

Open space/ Volcanic cones

2,500

0

(876)

1,624

0

(563)

1,061

Araparera

2,749

55

0

2,804

28

(2,832)

0

Total targeted rates reserves

30,917

21,742

(20,419)

32,240

23,629

(30,017)

25,851

Total reserves

6,633,999

250,255

(22,731)

6,861,523

1,212,906

(39,068)

8,035,360

 

Note 6: Auckland Council (parent) financial statements
Prospective statement of comprehensive revenue and expenditure

Auckland Council parent

$000

Financial year ending 30 June

Annual Plan

2016/17

Long-term Plan

2017/18

Annual Plan

2017/18

Variance to LTP

2017/18

Notes

 

Revenue

blank

blank

blank

blank

blank

Rates

1,648,791

1,740,266

1,721,646

(18,620)

1

Fees and user charges

241,855

257,268

267,315

10,047

blank

Grants and subsidies

36,795

28,519

249,409

220,890

blank

Development and financial contributions

163,318

261,579

214,359

(47,220)

2

Vested assets

74,352

63,445

502,445

439,000

3

Other revenue

184,174

169,024

164,436

(4,588)

blank

Finance revenue

94,534

132,425

108,545

(23,880)

1,4

Total revenue

2,443,819

2,652,526

3,228,155

575,629

 

blank

blank

blank

blank

blank

blank

Expenditure

blank

blank

blank

blank

blank

Employee benefits

480,892

489,068

525,978

36,910

5

Depreciation and amortisation

255,760

261,662

263,831

2,169

blank

Grants, contributions and sponsorship

1,057,015

1,024,193

1,260,049

235,856

6

Other operating expenses

481,391

487,812

481,148

(6,664)

7

Finance costs

415,170

455,850

425,713

(30,137)

8

Total expenses

2,690,228

2,718,585

2,956,719

238,134

 

 

blank

blank

blank

blank

blank

Operating (deficit)/ surplus

(246,409)

(66,059)

271,436

337,495

 

 

blank

blank

blank

blank

blank

Share of surplus in associates and joint ventures

0

0

2,541

2,541

blank

 

blank

blank

blank

blank

blank

Operating (deficit)/ surplus before income tax

(246,409)

(66,059)

273,977

340,036

 

blank

blank

blank

blank

blank

blank

Income tax expense

0

0

0

0

blank

blank

blank

blank

blank

blank

blank

(Deficit)/ surplus after income tax

(246,409)

(66,059)

273,977

340,036

 

 

 

 

 

 

 

(Deficit)/ surplus after income tax is attributable to:

blank

blank

blank

blank

blank

Ratepayers of Auckland Council

(246,409)

(66,059)

273,977

340,036

blank

blank

blank

blank

blank

blank

blank

Other comprehensive revenue

blank

blank

blank

blank

blank

Net gain on revaluation of property, plant and equipment

111

359,495

491,138

131,643

blank

Total other comprehensive revenue

111

359,495

491,138

131,643

 

blank

blank

blank

blank

blank

blank

Total comprehensive revenue/ (expenditure)

(246,298)

293,436

765,115

471,679

 

blank

blank

blank

blank

blank

blank

Total comprehensive revenue/ (expenditure) is attributable to:    blankblank 
Ratepayers of Auckland Council

(246,298)

293,436

765,115

471,679

 


Notes to previous table:

  1. The lower rates revenue reflects movement from 3.5 per cent average general rates increase to existing ratepayers to 2.5 per cent. This is partially offset by a new targeted rate on the accommodation sector.
  2. Population growth is continuing to drive growth in Development Contribution revenue but at a level lower than projected in the Long-term plan 2015-2025 (LTP).
  3. The increase in vested assets is due to City Rail Link assets vesting in council from Auckland Transport.
  4. A reduction in the projected capital expenditure as well as lower opening borrowings for Watercare services Limited will result in lower borrowings by this council-controlled organisation, through the parent and therefore lower finance revenue.
  5. The increase in staff costs can be attributed to insourcing of parks maintenance contracts which is offset by a decrease in other operating expenditure, as well as an increase in building and resource consent staff levels which is on-chargeable as fees and user charges.
  6. The increase in grants and contributions compared to the long-term plan is mainly due to increased capital expenditure funding to Auckland Transport.
  7. Decreases in inflation projections and insourcing of certain council functions (refer to note 4) have driven lower other operating expenses.
  8. Finance costs are lower than projected in the LTP due to a decrease in forecast interest rates, combined with lower debt levels.
     
Prospective statement of changes in equity

Auckland Council parent

$000

Financial year ending 30 June

Annual Plan 2016/17

Long-term Plan 2017/18

Annual Plan 2017/18

Variance from LTP 2017/18

Notes

Contributed equity blank blank blank blank blank
Opening balance

26,569,092

26,569,092

26,569,092

0

blank
Surplus after income tax

0

0

0

0

blank
Other comprehensive revenue

0

0

0

0

blank
Total comprehensive revenue

0

0

0

0

 
Transfer to/ (from) reserves

0

0

0

0

blank
Balance as at 30 June

26,569,092

26,569,092

26,569,092

0

 
blankblankblankblankblankblank
Accumulated funds blank blank blank blank blank
Opening balance

(236,056)

(396,123)

(878,258)

(482,135)

1

Surplus/ (deficit) after income tax

(245,089)

(66,059)

273,977

340,036

3

Other comprehensive revenue

0

0

0

0

blank
Total comprehensive expenditure

(245,089)

(66,059)

273,977

340,036

 
Transfer to/ (from) reserves

4,964

6,702

9,224

2,522

blank
Balance as at 30 June

(476,181)

(455,480)

(595,057)

(139,577)

 
blankblankblankblankblankblank
Reserves blank blank blank blankblank
Opening balance

2,094,208

1,965,241

3,199,525

1,234,284

2

Surplus after income tax

0

0

0

0

blank
Other comprehensive revenue

111

359,495

491,138

131,643

blank
Total comprehensive revenue

111

359,495

491,138

131,643

 
Transfer to/ (from) reserves

(4,964)

(6,702)

(9,224)

(2,522)

blank
Balance as at 30 June

2,089,355

2,318,034

3,681,439

1,363,405

 
blank blank blank blank blankblank
Total equity blank blank blank blank

4

Opening balance

28,427,244

28,138,210

28,890,359

752,149

blank
Surplus/ (deficit) after income tax

(245,089)

(66,059)

273,977

340,036

blank
Other comprehensive revenue

111

359,495

491,138

131,643

blank
Total comprehensive revenue/ (expenditure)

(244,978)

293,436

765,115

471,679

 
Transfer to/ (from) reserves

0

0

0

0

blank
Balance as at 30 June

28,182,266

28,431,646

29,655,474

1,223,828

 

 Notes to table:

  1. The reduction in opening accumulated funds reflects a lower closing position in the audited 2015/2016 annual accounts.
  2. The increase in reserves reflect a higher closing position in the audited 2015/2016 annual accounts.
  3. For variances in surplus/ (deficit) after tax and other comprehensive revenue refer to notes on the Prospective statement of Comprehensive revenue and expenditure.
  4. There is no minority interest in the group. Total equity represents ratepayer equity.
     
Prospective statement of financial position

Auckland Council parent

$000

Financial year ending 30 June

Annual Plan

2016/17

Long-term Plan

2017/18

Annual Plan

2017/18

Variance from LTP

2017/18

Notes

 

ASSETS blank blank blank blank blank
Current assets blank blank blank blank blank
Cash and cash equivalents

282,441

225,000

215,000

(10,000)

1

Receivables and prepayments

213,097

158,679

201,160

42,481

1

Other financial assets

287,884

500,556

185,790

(314,766)

1,2

Derivative financial instruments

811

39,291

0

(39,291)

1

Inventories

4,609

4,552

8,000

3,448

1

Non-current assets held for sale

52,651

55,973

114,504

58,531

3

Total current assets

841,493

984,051

724,454

(259,597)

blank
blankblankblankblankblankblank
Non-current assets blank blank blank blank blank
Receivables and prepayments

15,669

95,837

17,782

(78,055)

1

Other financial assets

1,912,122

2,407,091

1,627,419

(779,672)

4

Derivative financial instruments

198,018

98,126

255,000

156,874

1

Property, plant and equipment

13,059,276

13,518,444

14,236,828

718,384

1

Intangible assets

282,448

232,340

226,220

(6,120)

blank
Biological assets

1,704

1,764

2,000

236

blank
Investment property

102,105

94,301

121,000

26,699

1

Investments in associates and joint ventures

17,571

4,564

452,940

448,376

5

Investments in subsidiaries

21,178,513

20,621,738

21,379,000

757,262

4

Deferred tax asset

0

0

0

0

 
Total non-current assets

36,767,426

37,074,205

38,318,189

1,243,984

blank

blankblankblankblankblankblank
TOTAL ASSETS

37,608,919

38,058,256

39,042,643

984,387

 
blankblankblankblankblankblank
LIABILITIES blank blank blank blank blank
Current liabilities blank blank blank blank blank
Employee entitlements

50,204

49,874

57,596

7,722

1

Payables and accruals

679,477

526,422

625,718

99,296

1,6

Borrowings

1,407,358

1,494,614

1,024,285

(470,329)

1,7

Derivative financial instruments

1,198

40,217

2,000

(38,217)

1

Tax payable

0

0

0

0

blank
Provisions

55,389

34,363

62,762

28,399

1

Other current liabilities

0

52,478

0

(52,478)

1

Total current liabilities

2,193,626

2,197,968

1,772,361

(425,607)

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blankblankblankblankblankblank
Non-current liabilities blank blank blank blank blank
Employee entitlements

1,780

1,960

2,173

213

blank
Payables and accruals

50,270

58,155

24,200

(33,955)

1

Borrowings

6,617,711

7,007,094

6,802,455

(204,639)

1

Derivative financial instruments

326,840

173,214

901,000

727,786

1

Provisions

236,527

188,219

198,908

10,689

 
Total non-current liabilities

7,233,128

7,428,642

7,928,736

500,094

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blankblankblankblankblankblank
TOTAL LIABILITIES

9,426,754

9,626,610

9,701,097

74,487

 
blankblankblankblankblankblank
NET ASSETS

28,182,165

28,431,646

29,341,546

909,900

 
blankblankblankblankblankblank
Equity blank blank blank blank blank
Contributed equity

26,569,092

26,569,092

26,569,092

0

blank
Accumulated funds

(476,282)

(455,480)

(563,317)

(107,837)

blank
Reserves

2,089,355

2,318,034

3,335,771

1,017,737

 
Total ratepayers equity

28,182,165

28,431,646

29,341,546

909,900

blank
Minority interests

0

0

0

0

blank
TOTAL EQUITY

28,182,165

28,431,646

29,341,546

909,900

 

 Notes to previous table:

  1. Variances are due to the updating of opening balances to reflect balances in the audited 2015/2016 annual accounts.
  2. The anticipated increase in capital drawdown of the diversified financial asset portfolio in 2016/2017 and 2017/2018 reduces the projected level of financial assets and borrowings.
  3. The asset sales target is adjusted to reflect a change in classification of certain capital revenue items related to property development to asset sales.
  4. A number of loans from the parent to council-controlled organisations have been converted, during 2015/2016, into equity. This has resulted in a decrease in non-current other financial assets and an increase in investments in subsidiaries.        
  5. The increase in Investments in associates and joint ventures is due to the transfer of City Rail Link assets to City Rail Link Ltd.
  6. The increase in payables and accruals is due to an updated opening balance (refer to note 1) as well as higher forecast payables due to an increased capital expenditure programme.
  7. The decrease in borrowings is due to an updated opening balance (refer to note 1), partially offset by additional borrowings for an increased budgeted capital expenditure programme.
     
Prospective statement of cash flow

Auckland Council parent

$000

Financial year ending 30 June

Annual Plan

2016/17

Long-term Plan

2017/18

Annual Plan

2017/18

Variance from LTP

2017/18

Notes

 

Cash flows from operating activities

blank

blank

blank

blank

blank

Receipts from rates revenue

1,639,022

1,730,311

1,721,646

(8,665)

blank

Receipts from customers and other services

489,041

615,444

764,912

149,468

blank

Interest received

94,534

132,425

108,545

(23,880)

blank

Dividend received

92,568

76,268

94,229

17,961

blank

Payments to suppliers and employees

(2,064,920)

(2,030,692)

(2,239,624)

(208,932)

blank

Interest paid

(404,534)

(448,308)

(418,118)

30,190

 

Net cash from operating activities

153,820

75,448

31,590

(43,858)

1

blank

blank

blank

blank

blank

blank

Cash flows from investing activities

blank

blank

blank

blank

blank

Proceeds from sale of other financial assets

100,024

21,016

236,401

215,385

2

Acquisition of other financial assets

(5,414)

(6,497)

(6,497)

0

blank

Advances of loans to related parties

(262,126)

(153,627)

(81,583)

72,044

3

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

85,300

52,651

114,505

61,854

4

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

(591,862)

(495,729)

(511,382)

(15,653)

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Proceeds from community loan repayments

0

0

2,350

2,350

blank

Advances to external parties

(9,000)

(7,000)

(8,876)

(1,876)

 

Net cash from investing activities

(683,078)

(589,186)

(255,082)

334,104

blank

blank

blank

blank

blank

blank

blank

Cash flows from financing activities

blank

blank

blank

blank

blank

Proceeds from borrowings

2,095,897

1,922,755

1,298,189

(624,566)

blank

Repayment of borrowings

(1,258,999)

(1,409,017)

(1,074,697)

334,320

 

Net cash from financing activities

836,898

513,738

223,492

(290,246)

5

 

 

 

 

blank

 

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

0

0

0

0

blank

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

282,441

225,000

215,000

(10,000)

blank

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

282,441

225,000

215,000

(10,000)

 

Notes to table:

  1. Variances in cash flows from operating activities reflect the updated projections included in the Prospective statement of comprehensive revenue and expenditure.
  2. The increase in proceeds from the sale of other financial assets is due to the anticipated increase in capital drawdown of the diversified financial asset portfolio.
  3. The decrease in loans to related parties is lower projected capital expenditure.
  4. The asset sales target is adjusted to reflect a change in classification of certain capital revenue items related to property development to asset sales.
  5. The decrease in borrowing requirement is due to capital grants receivable from central government for the City Rail Link, partially offset by additional borrowings for an increase in capital expenditure budgets and a lower projection of development contribution revenue.
     
Note 7: Depreciation and amortisation by Group of Activities
$000

Financial year ending 30 June

Annual Plan

2016/17

Long-term Plan

2017/18

Annual Plan

2017/18

Variance from LTP

2017/18

Regional governance

253

82

65

(17)

Local governance

0

201

9

(192)

Regional planning

2,921

3,089

2,638

(451)

Investment

27,512

36,678

27,423

(9,255)

Property Development

0

0

222

222

Economic Growth and Visitor Economy

1,198

1,504

991

(513)

Waterfront development

11,182

11,980

11,149

(831)

Regulation

2,502

3,457

2,062

(1,395)

Solid Waste and Environmental Services

4,096

4,288

5,428

1,140

Stormwater management

52,770

54,284

58,484

4,200

Water supply

97,428

105,976

99,011

(6,965)

Wastewater treatment

129,424

138,213

130,973

(7,240)

Public transport and travel demand management

84,424

82,879

98,712

15,833

Roads and footpaths

245,092

255,479

256,091

612

Parking and enforcement

8,462

8,544

8,172

(372)

Local planning

0

1,764

745

(1,019)

Regional community services

19,540

18,806

21,617

2,811

Local community services

1,256

3,512

1,433

(2,079)

Regional facilities

24,888

20,564

28,545

7,981

Regional Parks, Sport and Recreation

67,428

59,000

65,585

6,585

Local environmental management

0

29

2

(27)

Local Parks, Sport and Recreation

756

17,033

1,396

(15,637)

Organisational support

104,238

96,118

104,838

8,720

Total

885,370

923,480

925,591

2,111

> Back to contents list

3.3 Prospective funding impact statement

3.3.1 Prospective consolidated funding impact statement

Auckland Council group consolidated
$000

Financial year ending 30 June

Annual plan

2016/17

Long-term Plan

2017/18

Annual plan

2017/18

Variance from LTP

2017/18

Sources of operating funding:

blank

blank

blank

blank

General rates, UAGCs, rates penalties

1,453,848

1,537,280

1,517,067

(20,213)

Targeted rates

182,806

189,523

197,643

8,120

Subsidies and grants for operating purposes

259,607

267,672

273,705

6,033

Fees and charges

1,227,958

1,401,157

1,255,679

(145,478)

Interest and dividends from investments

59,810

52,688

67,976

15,288

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

240,818

226,550

289,074

62,524

Total operating funding

3,424,847

3,674,870

3,601,144

(73,726)

blank

blank

blank

blank

blank

Applications of operating funding:

blank

blank

blank

blank

Payment to staff and suppliers

2,319,673

2,386,452

2,418,699

32,247

Finance costs

452,550

510,888

454,998

(55,890)

Other operating funding applications

9,411

15,390

7,763

(7,627)

Total applications of operating funding

2,781,634

2,912,730

2,881,460

(31,270)

blank

blank

blank

blank

blank

Surplus (deficit) of operating funding

643,213

762,140

719,684

(42,456)

blank

blank

blank

blank

blank

Sources of capital funding:

blank

blank

blank

blank

Subsidies and grants for capital expenditure

240,363

171,772

403,083

231,311

Development and financial contributions

163,319

261,578

214,358

(47,220)

Increase (decrease) in debt

835,176

520,051

354,308

(165,743)

Gross proceeds from sale of assets

87,407

52,651

114,505

61,854

Lump sum contributions

0

0

0

0

Other dedicated capital funding

0

0

0

0

Total sources of capital funding

1,326,265

1,006,052

1,086,254

80,202

blank

blank

blank

blank

blank

Application of capital funding:

blank

blank

blank

blank

Capital expenditure:

blank

blank

blank

blank

- to meet additional demand

704,591

424,185

797,653

373,468

- to improve the level of service

667,275

606,540

609,111

2,571

- to replace existing assets

573,467

612,756

609,952

(2,804)

Increase (decrease) in reserves

62,431

56,605

65,329

8,724

Increase (decrease) in investments

(38,286)

68,106

(276,107)

(344,213)

Total applications of capital funding

1,969,478

1,768,192

1,805,938

37,746

blank

blank

blank

blank

blank

Surplus (deficit) of capital funding

(643,213)

(762,140)

(719,684)

42,456

blank

blank

blank

blank

blank

Funding balance

0

0

0

0

 

3.3.2 Rating mechanism

This section sets out how the council will set its rates for 2017/2018. It explains the basis on which each ratepayer's rating liability will be assessed. In addition, it covers the council's early payment discount policy.

Background

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.

The following table sets out the forecast rating base for Auckland Council as at 30 June 2017.

Capital value ($)

492,323,673,954

Land value ($)

293,262,713,192

Rating units

550,439

Separately used or inhabited parts of a property

611,824

How the increase in the rate requirement is applied

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

Uniform annual general charge (UAGC) and other fixed rates

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

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

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

  • Interim Transport Levy (ITL)
  • 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.

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

A UAGC of $404 (including GST) will be applied per SUIP for 2017/2018. This is estimated to produce around $210.7 million (excluding GST) for 2017/2018.

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.

Value-based general rate

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

Rates differentials

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

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

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

Rates differential definitions

Differential groupDefinition
Urban business Land in the Metropolitan Urban Limit (MUL), including vacant land that has a land use classification of commercial, industrial, transport, utility or public communal - licensed. Also includes any land that is used for community services, but which is used for commercial, or governmental purposes, or which is covered by a liquor licence
Urban residential Land in the MUL, as well as land within the Pukekohe township that is used exclusively or almost exclusively, for residential purposes, and includes tenanted residential land, rest homes and geriatric hospitals. It excludes hotels, motels, serviced apartments, boarding houses and hostels.(1) Land used for community services and used by a not for profit ratepayer for the benefit of the community will be charged the residential rate (this does not include land covered by a liquor licence)
Rural business Land outside the MUL, including vacant land, that has a land use classification of commercial, industrial, transport, utility network(2), or public communal - licensed. Also includes any land that is used for community services, but which is used for commercial, or governmental purposes, or which is covered by a liquor licence
Rural residential Land outside the MUL that is used exclusively or almost exclusively for residential purposes, and includes tenanted residential land, rest homes and geriatric hospitals. It excludes hotels, motels, serviced apartments, boarding houses and hostels (1). Land used for community services and used by a not for profit ratepayer for the benefit of the community will be charged the residential rate (this does not include land covered by a liquor licence)
Farm and lifestyle Any property with a land use classification of lifestyle or rural industry, excluding mineral extraction
No road 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.

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. Land owners must provide proof of long-term stay (at least 90 days) as at 30 June each year. Proof should be in the form of a residential tenancy agreement or similar documentation.
  2. Utility networks are classed as rural business differential. However, all other utility rating units are classified based on their land use and location.
The long-term differential strategy

In 2017/2018 the council is pausing the long-term differential strategy by maintaining the proportion of general rates revenue raised from business ratepayers. The business differential ratios will be set so that 32.7 per cent of general rates (UAGC and value-based general rate) come from businesses. This is the same level as in 2016/2017.

The table below sets out the rates differentials and rates in the dollar of capital value to be applied in 2017/2018. This is estimated to produce around $1,331 million (excluding GST) for 2017/2018.

Value-based general rate differentials for 2017/2018

Property categoryEffective relative differential ratio for general rate for 2017/2018Rate in the dollar for 2017/2018 (including GST) ($)Share of value-based general rate (excluding GST) ($)Share of value-based general rate (%)
Urban business2.740.00711134433,741,96332.6%
Urban residential1.000.00259753744,018,73455.9%
Rural business2.460.0064002049,648,3143.7%
Rural residential0.900.0023377839,760,9833.0%
Farm and lifestyle0.800.0020780363,308,9474.8%
No road access0.250.00064938278,146Less than 0.1%
Uninhabitable island(1)0000

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

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

Land value general rates
Differential group

Rate in the dollar for 2017/2018 (including GST)
to be based on the land value of the property ($)

Urban business

0.01555517

Rural business

0.01399966

Targeted rates

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

Interim Transport Levy

Background

The council is funding an accelerated transport programme from 2015/2016 to 2017/2018 to provide better transport outcomes than the basic programme consulted on for the Long-term Plan 2015-2025. The rate will fund expenditure within the following activities: Roads and footpaths; and Public transport and travel demand management.

Activities to be funded

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

The ITL has applied from 2015/2016 and will continue through to 2017/2018.

How the rate will be assessed

A differentiated targeted rate will be applied as a fixed amount per SUIP (see UAGC section prior for the council's definition of a SUIP) on all rateable land except land classified as uninhabited Islands as defined for rating purposes. A targeted rate of $182.85 (including GST) per SUIP will be applied to all rateable land classified as business (Urban business and Rural business) as defined for rating purposes, and $113.85 (including GST) per SUIP to all rateable land not classified as business (Urban residential, Rural residential, Farm and lifestyle, and No road access) as defined for rating purposes. The fixed amounts will remain at this level for three years.  This is estimated to produce around $62.8 million (excluding GST) for 2017/2018, $9.2 million from business and $53.6 million from non-business.

Waste Management targeted rate

Background

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

The refuse, recycling, inorganic collection and other waste management services in Auckland are being standardised under the Waste Management and Minimisation Plan (WMMP). A new targeted rate structure is proposed to reflect the standardisation. This includes:

  • 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
  • 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.

From 2017/2018, properties in rural Franklin will receive a full-year recycling service from the council as well as the inorganic collection service. These will be funded from the base service rate.

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, 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) 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 1 July 2017, 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 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 introduction of the Auckland Waste Management and Minimisation Plan.

The following table sets out the waste management targeted rates to be applied in 2017/2018. This is estimated to produce around $75.9 million (excluding GST) for 2017/2018.

Waste management targeted rates
Service Differential group

Amount of targeted rate for 2017/2018 (including GST) $

Charging basis

Share of targeted rate (excluding GST) ($)

Base service Rating units in the former Auckland City

101.63

Per service available

14,443,495

 Rating units in the former Franklin District, Manukau City, North Shore City, Papakura District, Rodney District and Waitakere City

101.63

Per SUIP

32,505,941

Base service excluding recyclingRating units in the former Auckland City

39.61

Per service available

878,325

Standard refuseRating units in the former Auckland City

117.02

Per service available

16,499,660

 Rating units in the former Manukau City

117.02

Per SUIP

11,145,028

Large refuseRating units in the former Manukau City

55.00

Per service available

415,657

Additional recyclingAll rating units

62.01

Per service available

44,658

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 ($101.63)
  • land which has an approved alternative recycling service will be charged the standard refuse rate ($117.02) plus the base service excluding recycling rate ($39.61)
  • land which has approved alternative refuse and recycling services will be charged the base service excluding recycling rate ($39.61).
 
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 2017/2018.

How the rate will be assessed

A differentiated targeted rate will be applied to all land in Zones A and B defined as business for rating purposes operated as Tier one or two commercial 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 commercial 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.

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 a commercial 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 three tiers:

  • Tier 1: hotels and serviced apartments*
  • Tier 2: motels and motor inns, lodges, pub accommodation, and self-contained accommodation not included in Tier 1
  • Tier 3: other accommodation providers such as backpackers, short stay hostels, bed and breakfasts, homestays and campgrounds.

* serviced apartments 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: commercial accommodation providers located in local board areas of Albert-Eden, Devonport-Takapuna, Mangere-Ōtāhuhu, Maungakiekie-Tamaki, Ōrākei, Waitematā.
  • Zone B: commercial 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: commercial 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:

 

Provider type

 

Differential ratios

Tier 1

Tier 2

 

Zone A

1.0

0.6

Location

Zone B

0.5

0.3

 

Accommodation provider targeted rate

The following table sets out the Accommodation provider targeted rate to be applied to the differential categories described above for 2017/2018. This is estimated to produce around $13.45 million (excluding GST) for 2017/2018.

Rate in the dollar to be based on the portion of capital value of the rating unit used for commercial accommodation (including GST) ($)

Provider type: Tier 1

Provider type: Tier 2

Zone A

0.00811379

0.00486827

Zone B

0.00405690

0.00243414

Commercial accommodation located in Zone C or used for Tier 3 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 activity: 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 will be used to transition the depreciation and consequential operating costs of capital works to the general rate so that from 2019/2020 these costs will be entirely funded from general rates. 

How the rate will be assessed

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

A rate in the dollar of $0.00190468 (including GST) of rateable capital value will be applied to business land in 2017/2018. This is estimated to produce around $20.9 million (excluding GST) for 2017/2018.

A fixed rate of $59.41 (including GST) per SUIP (see UAGC section prior for the council's definition of a SUIP) will be applied to residential land in 2017/2018. This is estimated to produce around $0.9 million (excluding GST) for 2017/2018.

Business Improvement District targeted rates

Background

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

Activities to be funded

The main objectives of the BID programmes are to enhance the physical environment, promote business attraction, retention and development, and increase employment and local business investment in BID areas. The programmes may also involve community development, and are intended to identify and reinforce the unique identity of a place and to promote that identity as part of its development.  The rate will fund expenditure within the following activities: Local planning and development - locally driven initiatives, Local planning and development - asset based services.

How liability will be assessed

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

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

The table below sets out the budgets and the rates for each BID area that the council will apply in 2017/2018. This is estimated to produce around $16.9 million (excluding GST) in targeted rates revenue for 2017/2018.

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

Amount of BID grant 2017/2018 (excluding GST) ($)

Amount of BID targeted rate 2017/2018

(excluding GST) ($)

Amount to be funded by fixed charge for 2017/2018

(excluding GST) ($)

Fixed rate per rating unit for 2017/2018 (including GST) ($)

Amount to be funded by property value rate based on the capital value of the rating unit for 2017/2018

(excluding GST) ($)

Rate in the dollar for 2017/2018 to be multiplied by the capital value of the rating unit

(including GST) ($)

Avondale

130,000

130,443

0

0.00

130,443

0.00156943

Birkenhead

187,000

186,800

0

0.00

186,800

0.00125406

Blockhouse Bay

56,530

56,530

0

0.00

56,530

0.00189800

Browns Bay

150,000

150,897

0

0.00

150,897

0.00066977

Devonport

120,000

117,187

17,391

250.00

99,796

0.00082468

Dominion Road

180,000

179,691

0

0.00

179,691

0.00083173

Ellerslie

144,000

142,432

0

0.00

142,432

0.00262458

Glen Eden

91,920

91,968

0

0.00

91,968

0.00141796

Glen Innes

166,250

162,745

0

0.00

162,745

0.00163249

Greater East Tāmaki

500,000

485,803

331,848

195.00

153,955

0.00003858

Heart of the City

4,422,205

4,391,633

0

0.00

4,391,633

0.00059964

Howick

159,783

162,715

0

0.00

162,715

0.00121697

Hunters Corner

126,406

126,590

0

0.00

126,590

0.00097111

Karangahape Road

415,672

409,103

0

0.00

409,103

0.00074801

Kingsland

210,000

214,492

0

0.00

214,492

0.00061814

Mairangi Bay

58,000

58,127

5,000

250.00

53,128

0.00146280

Māngere Bridge

28,800

28,800

0

0.00

28,800

0.00192782

Māngere East Village

6,100

6,100

0

0.00

6,100

0.00039300

Māngere Town

284,949

284,949

0

0.00

284,949

0.00495938

Manukau Central

490,000

478,121

0

0.00

478,121

0.00046798

Manurewa

142,472

134,141

0

0.00

134,141

0.00116649

Milford

132,000

131,698

0

0.00

131,698

0.00085700

Mt Eden Village

87,535

87,148

0

0.00

87,148

0.00082353

New Lynn

167,706

157,969

0

0.00

157,969

0.00066566

Newmarket

1,579,139

1,529,702

0

0.00

1,529,702

0.00087685

North Harbour

657,734

661,302

324,119

150.00

337,184

0.00012638

North West District

180,000

177,879

88,478

250.00

89,401

0.00033076

Northcote

120,000

118,754

0

0.00

118,754

0.00344805

Old Papatoetoe

100,692

100,692

0

0.00

100,692

0.00172611

Onehunga

410,000

412,895

0

0.00

412,895

0.00170498

Orewa

223,289

222,897

0

0.00

222,897

0.00111686

Ōtāhuhu

598,500

592,170

0

0.00

592,170

0.00099439

Ōtara

82,017

82,017

0

0.00

82,017

0.00171257

Panmure

422,758

431,856

0

0.00

431,856

0.00228894

Papakura

173,510

162,535

0

0.00

162,535

0.00081895

Parnell

765,000

778,613

0

0.00

778,613

0.00075233

Ponsonby

428,715

428,596

0

0.00

428,596

0.00077564

Pukekohe

440,000

437,481

0

0.00

437,481

0.00066414

Remuera

242,564

246,687

0

0.00

246,687

0.00149967

Rosebank

395,000

387,919

0

0.00

387,919

0.00046097

South Harbour

81,378

81,325

0

0.00

81,325

0.00060881

St Heliers

138,484

138,021

0

0.00

138,021

0.00143002

Takapuna

403,541

396,706

0

0.00

396,706

0.00052778

Te Atatu

92,000

93,110

0

0.00

93,110

0.00197667

Torbay

13,915

13,915

0

0.00

13,915

0.00101269

Uptown

270,000

272,539

0

0.00

272,539

0.00020426

Waiuku

121,000

124,186

0

0.00

124,186

0.00128923

Wiri

670,000

669,074

0

0.00

669,074

0.00031415

Total

17,066,564

16,936,954

766,836

 

16,170,118

blank

Note to the table: Targeted rate amounts include deficits and surpluses (if any) carried over from prior years so may differ from grant amounts.

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

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

BID

Fixed rate per rating unit for 2017/2018 (including GST) ($)

Rate in the dollar for 2017/2018 (including GST) to be based on the land value of the rating unit ($)

Greater East Tāmaki

195.00

0.00007122

North Harbour

150.00

0.00027569

Onehunga

0.00

0.00396608

Ōtāhuhu

0.00

0.00198837

Pukekohe

0.00

0.00144175

Rosebank

0.00

0.00105716

South Harbour

0.00

0.00134883

Uptown

0.00

0.00036560

Waiuku Town Centre

0.00

0.00250001

 

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 liability will be assessed

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

How the rate will be assessed

The local activity targeted rate will be assessed using a fixed rate applied to each 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 2017/2018 for the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas. This is estimated to produce around $1 million (excluding GST) for 2017/2018.

Local board area

Fixed rate for each separately used or inhabited part of a rating unit for 2017/2018 (including GST) ($)

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

Māngere-Ōtāhuhu

31.14

501,574

Ōtara-Papatoetoe

29.15

539,148

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 2017/2018. This is estimated to produce around $72,000 (excluding GST) for 2017/2018.

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 2017/2018. This is estimated to produce around $38,000 (excluding GST) for 2017/2018.

Glorit Flood Gate Restoration targeted rate
Valuation number Legal description (abbreviated)

Area of benefit in hectares

Amount of targeted rate for 2017/2018

(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 levied 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 2017/2018 the council will apply a uniform rate of $191.29 (including GST) for each on-site waste management system utilised in conjunction with the rating unit. This is estimated to produce around $0.77 million (excluding GST) for 2017/2018.

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 2017/2018. This is estimated to produce around $4.7 million (excluding GST) for 2017/2018.

Retro-fit your home targeted rate

Year of repayment

Rate in the dollar for 2017/2018 to be multiplied by the ratepayers outstanding balance as at 1 July 2017 (including GST) ($)

1

0.14702887

2

0.16069483

3

0.17835963

4

0.20202336

5

0.23528609

6

0.28534778

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 2017/2018. This is estimated to produce around $8,000 (excluding GST) for 2017/2018.

Kumeu Huapai Riverhead wastewater targeted rate

Year of repayment

Rate in the dollar for 2017/2018 to be multiplied by the ratepayers outstanding balance as at 1 July 2017 (including GST) ($)

1

0.11983333

2

0.12497975

3

0.13097333

5

0.14642887

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 2017/2018. This is estimated to produce around $14,700 (excluding GST) for 2017/2018.

Point Wells wastewater targeted rate

Total assistance provided

Amount of targeted rate for 2017/2018 (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 2017/2018. This is estimated to produce $529 (excluding GST) for 2017/2018.

Rates payable by instalment

Rates will be payable by four equal instalments due on:

  • Instalment 1: 31 August 2017
  • Instalment 2: 28 November 2017
  • Instalment 3: 28 February 2018
  • Instalment 4: 28 May 2018.

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 2017/2018 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.

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 2017/2018

The discount is 0.83 per cent for 2017/2018.

Sample properties

The following section is intended to provide examples of the individual rates for 2017/2018.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.

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

General rates and Interim Transport Levy

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

Differential category

Capital value

UAGC

(including GST) ($)

General rate (including GST) ($)

Interim Transport Levy

(including GST) ($)

Total rates (including GST) ($)

Urban - business

500,000

404

3,556

183

4,143

 

1,500,000

404

10,667

183

11,254

 

3,000,000

404

21,334

183

21,921

 

10,000,000

404

71,113

183

71,700

Urban - residential

500,000

404

1,299

114

1,817

 

750,000

404

1,948

114

2,466

 

1,000,000

404

2,598

114

3,116

 

1,500,000

404

3,896

114

4,414

Rural - business

500,000

404

3,200

183

3,787

 

1,500,000

404

9,600

183

10,187

 

3,000,000

404

19,201

183

19,788

 

10,000,000

404

64,002

183

64,589

Rural - residential

500,000

404

1,169

114

1,687

 

750,000

404

1,753

114

2,271

 

1,000,000

404

2,338

114

2,856

 

1,500,000

404

3,507

114

4,025

Farm/lifestyle

500,000

404

1,039

114

1,557

 

1,500,000

404

3,117

114

3,635

 

3,000,000

404

6,234

114

6,752

 

10,000,000

404

20,780

114

21,298

 

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

Waste management targeted rate

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

Former council 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)

219

437

656

1,093

2,187

 Opt out of refuse

102

203

305

508

1,016

 Opt out of recycling

157

313

470

783

1,566

 Opt out of both refuse and recycling

40

79

119

198

396

 Additional recycling

62

124

186

310

620

Manukau CityFull service (base service plus standard refuse service)

219

437

656

1,093

2,187

North Shore City, Waitākere City, Franklin District, Papakura District and Rodney DistrictBase service

102

203

305

508

1,016

Accommodation provider targeted rate

All business rating units that provide visitor accommodation are liable for the Accommodation provider targeted rate.

Business rating units that provide visitor accommodation

Capital value

Zone A - Tier 1 rate

(including GST) ($)

Zone A - Tier 2 rate

(including GST) ($)

Zone B - Tier 1 rate

(including GST) ($)

Zone B - Tier 2 rate

(including GST) ($)

500,000

4,057

2,434

2,028

1,217

1,500,000

12,171

7,302

6,085

3,651

3,000,000

24,341

14,605

12,171

7,302

10,000,000

81,138

48,683

40,569

24,341

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

952

1,500,000

2,857

3,000,000

5,714

10,000,000

19,047

Residential rating units located in the city centre area

Number of separately used or inhabited parts

Rate (including GST) ($)

1

59.41

2

118.82

3

178.23

5

297.05

10

594.10

Swimming pool targeted rates

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

Residential rating units located in Total targeted rate amount (including GST) ($)    
 Number of separately used or inhabited parts

1

2

3

5

10

Māngere-Ōtāhuhu  

31

62

93

156

311

Ōtara-Papatoetoe  

29

58

87

146

292

 
Waitākere rural sewerage targeted rate

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

Residential rating units located in Total targeted rate amount (including GST) ($)    
 

Number of septic tanks pumped out once every 3 years

1

2

3

5

10

Waitākere City that have septic tanks pumped out by council

 

191

383

574

956

1,913

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 2017/2018

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

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

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

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

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

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

1,500

221

241

268

303

353

428

2,000

294

321

357

404

471

571

2,500

368

402

446

505

588

713

3,500

515

562

624

707

824

999

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 2017/2018

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

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

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

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

5,000

599

625

655

732

7,000

839

875

917

1,025

9,000

1,078

1,125

1,179

1,318

11,000

1,318

1,375

1,441

1,611

> Back to contents list

3.4 Financial reporting and prudence benchmarks

Annual plan disclosure statement for the year ended 30 June 2018

What is the purpose of this statement?

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

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

Benchmark

Limit

Planned

Met

Rates affordability benchmark

blank

blank

blank

  • income

1564 million

1541 million

Yes

  • increases

3.5%

2.5%

Yes

Debt affordability benchmark

blank

blank

blank

  • net debt as a percentage of total revenue

275%

202.5%

Yes

  • net interest as a percentage of total revenue

15%

10.9%

Yes

  • net interest as a percentage of annual rates income

25%

19.1%

Yes

Balanced budget benchmark

100%

103.9%

Yes

Essential services benchmark

100%

144.5%

Yes

Debt servicing benchmark

15%

12.1%

Yes

Notes  

1.     Rates affordability benchmark

For this benchmark:

  • the group's planned rates income, including growth in the rating base, for the year is compared with quantified limits on rates contained in the financial strategy included in the group's long-term plan; and
  • the group's planned rates increases for the year are compared with a quantified limit on rates increases for the year contained in the financial strategy included in the group's long-term plan.

The group meets the rates affordability benchmark if:

  • its planned rates income for the year equals or is less than each quantified limit on rates; and
  • its planned rates increases for the year equal or are less than each quantified limit on rates increases.

2.     Debt affordability benchmark

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

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

There are three quantified limits; they are: For the purposes of this section:

  • net debt as a percentage of total revenue;
  • net interest as a percentage of total revenue; and
  • The limits detailed above exclude any income or expenses, asset or liability relating to Watercare, including revenue, debt, investments, interest income, and interest expense. 

Total revenue is defined as earnings from rates, government operating grants and operating subsidies, user charges, interest, dividends, development contributions received to service the borrowing cost relating to growth related capital works, financial and other revenue.        

3.     Balanced budget benchmark

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

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

Note:    In the Long-term plan, operating expenditure is projected to be higher than operating revenue. As discussed in the council's Revenue and Financing Policy, this is due to the moving to fully fund depreciation by 2025. In this Annual Plan 2017/2018 operating revenue is projected to be higher than operating expenditure. This is due to the additional revenue expected from the Accommodation Provider targeted rate and capital subsidy from the crown for the City Rail Link.

4.     Essential services benchmark

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

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

5.     Debt servicing benchmark

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

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

Additional information

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

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

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

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

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

> Back to contents list

Wāhanga 4: Te Whakarāpopototanga o te Mahere Whakahaere 2017/2018 mō te Tūpuna Maunga o Tāmaki Makaurau Authority

Part 4: Summary of the Tūpuna Maunga Authority Operational Plan 2017/2018

The Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014 requires the Tūpuna Maunga o Tāmaki Makaurau Authority (Tūpuna Maunga Authority) and Auckland Council to prepare an Annual Operational Plan and a summary of that plan for inclusion in the Annual Plan 2017/18 process.

The Tūpuna Maunga Authority and Auckland Council are required to approve the Annual Operational Plan.  The Tūpuna Maunga Operational Plan 2017/18 must be considered and adopted concurrently with the Annual Plan 2017/18.  A summary of the Tūpuna Maunga Authority's indicative funding requirements is outlined in this Section.

Ngā Mana Whenua o Tāmaki Makaurau

Ngā Mana Whenua o Tāmaki Makaurau negotiated a collective settlement of their historical Treaty claims with the Crown and the Tūpuna Maunga Authority is the co-governance entity established under the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014. 

The members of Ngā Mana Whenua o Tāmaki Makaurau are:

  • Ngāi Tai ki Tāmaki
  • Ngāti Maru
  • Ngāti Pāoa
  • Ngāti Tamaoho
  • Ngāti Tamaterā
  • Ngāti Te Ata
  • Ngāti Whanaunga
  • Ngāti Whātua o Kaipara
  • Ngāti Whātua Ōrākei
  • Te Ākitai Waiohua
  • Te Kawerau ā Maki
  • Te Patukirikiri
  • Te Rūnanga o Ngāti Whātua.

The Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014

The Collective Redress Act 2014 vested the Crown owned land in 14 Tūpuna Maunga (ancestral mountains / volcanic cones) in Ngā Mana Whenua o Tamaki Makaurau.  They are held for the common benefit of the iwi/hapū of Ngā Mana Whenua o Tāmaki Makaurau and the other people of Auckland.  The Tūpuna Maunga are vested as reserves under the Reserves Act 1977.

The 14 Tūpuna Maunga covered by the Act include:

  • Matukutūruru - Wiri Mountain
  • Maungakiekie - One Tree Hill
  • Maungarei - Mount Wellington
  • Maungawhau - Mount Eden
  • Owairaka / Te Ahi-ka-a-Rakatura - Mount Albert
  • Puketāpapa Pukewīwī / Mount Roskill
  • Te Kōpuke / Tītīkōpuke - Mount St John
  • Ōhinerau / Mount Hobson
  • Ōhuiarangi / Pigeon Mountain
  • Te Tātua a Riukiuta - Big King
  • Ōtāhuhu - Mt Richmond
  • Takurunga / Mount Victoria
  • Maungauika / North Head
  • Rarotonga / Mount Smart.

Tūpuna Maunga o Tāmaki Makaurau Authority (Tūpuna Maunga Authority)

The Collective Redress Act 2014 also established the Tūpuna Maunga Authority, a bespoke co-governance entity, to administer the Tūpuna Maunga.  The Tūpuna Maunga Authority has six representatives from Ngā Mana Whenua o Tāmaki Makaurau and six representatives from the Auckland Council.  There is also currently a non-voting Crown representative.

Under the Collective Redress Act 2014 the Tūpuna Maunga Authority is the administering body for each Maunga for the purposes of the Reserves Act 1977, with the exception of Maungauika / North Head which is administered by the Crown (Department of Conservation).  Maungauika / North Head may be included under the administration of the Tūpuna Maunga Authority in the future if the council, in consultation with the Maunga Authority, agrees to assume responsibility for its future maintenance.

The Tūpuna Maunga Authority is the administering body for Māngere Mountain.

Responsibility for administration and management of Rarotonga / Mt Smart remains with Auckland Council.

Annual Operational Plan

For each financial year, the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014 requires the Tūpuna Maunga Authority and Auckland Council to agree an annual operational plan to provide a framework in which the council will carry out its functions for the routine management of the maunga and administered lands for that financial year, under the direction of the Tūpuna Maunga Authority. 

The Annual Operational Plan must be prepared and adopted concurrently with Auckland Council's Annual Plan and must be included in the Annual Plan in summary form.

A copy of the Operational Plan can be found at the Auckland Council website > About the council > Your mayor and representatives > Tūpuna Maunga o Tāmaki Makaurau Authority > Management of Tūpuna Maunga.

Priorities

The Tūpuna Maunga Authority have identified funding priorities for the short, medium and long term investment into the Tūpuna Maunga which are outlined in Table 1.

Table 1: Tūpuna Maunga prioritised projects 2017/18

Tūpuna Maunga Value Prioritised Projects

Short Term

1 - 3 years

Medium Term

4 - 7 years

Long Term

8 - 10 years

Wairuatanga / Spiritual

- restore and recognise the relationship between the Maunga and its people

- tread gently

Develop and implement new signage based on the brand identity for the Tūpuna Maunga 

X

blank

blank

- recognise the tihi is sacred

- treat the Maunga as taonga tuku iho

- treasures handed down the generations

Development of individual Tūpuna Maunga Management Plans

X

X

blank

Mana Aotūroa / Cultural and Heritage

- enable Mana Whenua role as kaitiaki over the Tūpuna Maunga

- encourage culturally safe access

- restoring customary practices and associated knowledge

Restoration and protection of significant sites such as pits, terraces and pā sites vegetation

X

X

X

- recognise European and other histories, and interaction with the MaungaInstallation of pou

blank

X

X

Takotoranga / Landscape

- protect the integrity of the Tūpuna Maunga

- encourage design that reflects Tūpuna Maunga Values

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

X

X

X

- promote a connected network of Maunga

- preserve the visual and physical integrity of the Maunga as landmarks of Tāmaki

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

X

X

blank

- active restoration and enhancement of the natural features of the Maunga

- encourage activities that are in keeping with the natural and indigenous landscape

Development of car parking facilities to encourage walking and reduction in vehicles on the tihi (summits)

X

X

X

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

X

X

X

 Development of controls over traffic speed and parking

X

blank

blank

 Development of Tūpuna Maunga Design Guidelines

X

blank

blank

Mauri Pūnaha Hauropi / Ecology and Biodiversity Animal and pest control program

X

X

X

- strengthen ecological linkages between the Maunga

 

Vegetation management, including removal of harmful exotic species and maintenance of key view shafts

X

X

X

- Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well

 

Development of a Tūpuna Maunga Biodiversity strategy

X

blank

X

- restore the biodiversity of the Tūpuna MaungaDevelopment of a Tūpuna Maunga Biosecurity and Pest Management Plan strategy

 

X

 

blank

blank

 Development of brochures and information for to the Tūpuna Maunga

X

X

blank

 Development of a Tūpuna Maunga Signage, Education and Communication Strategy

X

blank

blank

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

X

X

blank

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

X

X

blank

 Visitor information hub / centres

X

X

X

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

X

blank

blank

 Development of a Volunteer Framework

X

blank

blank

 Development of a Tūpuna Maunga Monitoring Strategy

X

X

blank

Whai Rawa Whakauka / Economic and Commercial

- focus on commercial activities that create value and enhance experience

- explore alternative and self-sustaining funding opportunities

- foster partnerships and collaboration

- alignment with the Tūpuna Maunga Values

Development of a Tūpuna Maunga Commercial Strategy

X

blank

blank

Mana Whai a Rēhia / Recreational

- promote health and wellbeing

- encourage informal inclusive recreation activities

- balance informal and formal recreation

Review of facilities, the purpose they serve and consistency with the Values. Potential upgrade of existing facilities and development of new facilities where appropriate (develop toilet facilities as required, upgrade / re-design furniture, building repairs, maintenance of historical assets including asset condition renewal), furniture design should be specific to the Tūpuna Maunga

X

X

X

- recreational activities consistent with tikanga Māori

- Maunga are special places and treasures handed down

Upgrade and maintenance of tracks to improve access and protection of important sites and encourage appropriate pedestrian use

X

X

X

Summary of Indicative Funding Requirements

The funding for Tūpuna Maunga is set at a regional level and is allocated as follows.  This funding was approved in the Auckland Council Long-term Plan 2015-2025:-

Table 2. Summary of Indicative Funding Requirements

 

 2017/18

Net Operating Expenditure

$2,957,120

Capital Projects

$2,536,500

Total Funding Requirement

$5,493,620

Note to table: The Net Operating Expenditure takes into account the funding from the Open Space and Volcanic Cones Targeted Rate Reserve (Targeted Rate Reserve) which has been used to help fund activities over from 2015/2016 to 2020/2021.  Table 3 below shows the funds from the Targeted Rate Reserve which will be applied in 2017/2018.  The targeted rate reserve reflects funding previously generated by the Open Space and Volcanic Cones Targeted rate which now sits in a reserve and must be used for operational purposes associated with the volcanic cones.

Table 3.  Open Space and Volcanic Cones Targeted Rate Reserve

 

 2017/18

Targeted rate reserve

$562,920

> Back to contents list

Wahanga 5: He kōrero anō

Part 5: Additional information

How the organisation is structured

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

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

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

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

The Governing Body

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

The Mayor

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

Mayor and councillors' contact details

 

Phil Goff, MAYOR

Auckland Council

Private Bag 92300

Auckland 1142

Ph: (09) 301 0101

phil.goff@aucklandcouncil.govt.nz

Chair - Governing Body; Appointments  & Performance Review Committee

Bill Cashmore, DEPUTY MAYOR [Franklin]

Auckland Council

Private Bag 92300

Auckland 1142

Ph: (021) 283 3355

bill.cashmore@aucklandcouncil.govt.nz

Deputy Chair - Governing Body

Wayne Walker [Albany]

Auckland Council
Private Bag 92300
Auckland 1142

Ph: (021) 882 861

wayne.walker@aucklandcouncil.govt.nz

Deputy Chair - Regulatory Committee

John Watson [Albany]

Auckland Council
Private Bag 92300
Auckland 1142

Ph: (021) 287 5999

john.watson@aucklandcouncil.govt.nz

Deputy Chair - Civil Defence and Emergency Group Management Committee

Dr Cathy Casey

[Albert-Eden-Roskill]

66 Allendale Road

Mt Albert

Auckland 1025

Ph: (027) 474 4231

cathy.casey@aucklandcouncil.govt.nz

Chair - Community Development & Safety Committee

Hon Christine Fletcher, QSO

[Albert-Eden-Roskill]

7 Bourne Street

Mt Eden

Auckland 1024

Ph: (027) 276 0013

christine.fletcher@aucklandcouncil.govt.nz

Deputy Chair - Appointments & Performance Review Committee

Dick Quax [Howick]

PO Box 51-752

Pakuranga

Auckland 2140

Ph: (027) 490 211

dick.quax@aucklandcouncil.govt.nz

Sharon Stewart QSM [Howick]

21 Treeway

Sunnyhills

Auckland 2010

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

sharon.stewart@aucklandcouncil.govt.nz

Chair - Civil Defence and Emergency Group Management Committee

Fa'anana Efeso Collins [Manukau]

Auckland Council

Private Bag 92300

Auckland 1142

Ph: (021) 242 6585

efeso.collins@aucklandcouncil.govt.nz

Deputy Chair - Community Development and Safety Committee

Alf Filipaina [Manukau]

Auckland Council

Private Bag 92300

Auckland 1142

Ph: (021) 051 9967

alf.filipaina@aucklandcouncil.govt.nz

Deputy Chair - Environment & Community Committee

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

6 Railway Street

Newmarket

Auckland 1023

Ph: (021) 728 325
john.walker@aucklandcouncil.govt.nz

 

Daniel Newman

[Manurewa-Papakura]

Auckland Council,

Private Bag 92300

Auckland 1142

Ph (021) 518 796

daniel.newman@aucklandcouncil.govt.nz

Denise Lee (formerly Krum)

[Maungakiekie-Tāmaki]

Auckland Council,

Private Bag 92300

Auckland 1142

Ph: (021) 629 648

denise.lee@aucklandcouncil.govt.nz

Deputy Chair - Planning Committee

Chris Darby [North Shore]

Auckland Council,

Private Bag 92300

Auckland 1142

Ph: (021) 284 2888

chris.darby@aucklandcouncil.govt.nz

Chair - Planning Committee

Richard Hills [North Shore]

Auckland Council
Private Bag 92300
Auckland 1142

Ph: (021) 286 441

richard.hills@aucklandcouncil.govt.nz

Desley Simpson [Orākei]

Auckland Council

Private Bag 92300

Auckland

Ph: (021) 971 786

desley.simpson@aucklandcouncil.govt.nz

Deputy Chair - Finance and Performance Committee

Greg Sayers [Rodney]

Auckland Council
Private Bag 92300
Auckland 1142

Ph: (021) 285 9900

greg.sayers@aucklandcouncil.govt.nz

Deputy Chair - Audit and Risk reporting Committee

Linda Cooper JP [Waitākere]

41 Renoir Street

West Harbour

Auckland 0618

Ph: (021) 440 281

linda.cooper@aucklandcouncil.govt.nz

Chair - Regulatory Committee

Penny Hulse [Waitākere]

Auckland Council

Private Bag 92300

Auckland 1142

Ph: (021) 273 4663

penny.hulse@aucklandcouncil.govt.nz

Chair - Environment & Community Committee

Mike Lee [Waitematā and Gulf]

15A Burrows Avenue

Parnell

Auckland 1052

Ph: (027) 494 3198

mike.lee@aucklandcouncil.govt.nz

Chair - Strategic Procurement Committee

 

Ross Clow [Whau]

Private Bag 92300

Auckland 1142

Ph: (021) 808 214 Ph: 09 817 8456

ross.clow@aucklandcouncil.govt.nz

Chair - Finance & Performance Committee

Deputy Chair - Strategic Procurement Committee

 

 

 

Local boards

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

Local boards:

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

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

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

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

Council-controlled organisations

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

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

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

Independent Māori Statutory Board (IMSB)

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

The board:

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

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

Independent Māori Statutory Board Members

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

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

Advisory panels

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

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

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

Demographic advisory panels:

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

Sector panels:

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

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

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

Co-governance arrangements

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

  1. The Ngāti Whātua Ōrākei Reserves Board is established under the Ōrākei Act 1991 and currently operates under the Ngāti Whātua Ōrākei Claims Settlement Act 2012 and has three council appointees.
  2. Te Poari o Kaipātiki ki Kaipara (officially the Parakai Recreation Reserve Board) is established under the Ngāti Whātua o Kaipara Claims Settlement Act 2013 and has three council appointees.
  3. The Tūpuna Maunga o Tāmaki Makaurau Authority (or Maunga Authority) is established under the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014 and has six council appointees.

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

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PEHEA TE WHAKAPĀ MAI

How to contact the council

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

Customer service centres

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

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

 

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

Service centrePhysical address
Albany30 Kell Drive, Albany
BirkenheadNell Fisher Reserve - Hinemoa Street, Birkenhead
Bledisloe House24 Wellesley Street, Auckland Central
Browns BayCorner of Bute and Glen Roads, Browns Bay
Devonport3 Victoria Road, Devonport
Glen Eden39 Glenmall Place, Glen Eden
Glenfield90 Bentley Avenue, Glenfield
Graham Street35 Graham Street, Auckland
Great Barrier IslandHector Sanderson Road, Claris
Helensville49 Commercial Road, Helensville
Henderson6 Henderson Valley Road, Henderson Waitākere
Huapai296 Main Road (SH16) Huapai
ManukauGround Floor, Kotuku House, 4 Osterley Way, Manukau City Centre
New Lynn31 Totara Avenue, New Lynn
Ōrewa50 Centreway Road, Ōrewa
Papakura35 Coles Crescent, Papakura
Pukekohe82 Manukau Road, Pukekohe
Takapuna1 The Strand, Takapuna
Waiheke Island10 Belgium Street, Ostend
WaiukuCorner of King Street and Constable Road, Waiuku
Warkworth1 Baxter Street, Warkworth
Whangapāraoa9 Main Street, Whangapāraoa

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Glossary of terms

TermDefinition
Accelerated Transport ProgrammeAn Accelerated Transport Programme has been established to help address urgent transport investment needs, particularly public transport. An additional $523 million will be invested in the first three years, partially funded by an Interim Transport Levy
ActivityThe goods or services the council provides
AMETIAuckland Manukau Eastern Transport Initiative
Annual Plan (Also known as Annual Budget)The plan that sets out what the council will be working to achieve in a financial year, how it will spend its money, the level of service to be provided, and the level of rates and other revenue required to fund that spending
AssetAn item of value, usually of a physical nature, that has a useful life of more than 12 months and has future economic benefits over a period of time. Infrastructural assets provide the basic facilities, services and installations needed for a community or society to function, such as stormwater drainage pipes. Non-infrastructural assets are the organisation's other assets that provide either administrative or operational functions, such as computer software
ATAuckland Transport
ATEEDAuckland Tourism, Events and Economic Development
Auckland Council or the council The local government of Auckland established on 1 November 2010. The council is made up of the governing body, 21 local boards, and the council organisation (operational staff)
BIDBusiness improvement district
CentresLocalities identified as urban centres which include the city centre and fringe, metropolitan centres, town centres and local centres. Centres are typically higher density, compact mixed-use environments with high quality public transport links and provide a wide range of community, recreational, social and other activities
CRLCity Rail Link
COMETCOMET Auckland (Community and Education Trust)
Commercial activitiesRetail, information and communication, finance and insurance, and other service sectors. These sectors typically can afford relatively higher land prices/rents, and locate well in town centres
Council-controlled organisation (CCO)A company or other entity under the control of local authorities through their shareholding of 50 per cent or more, voting rights of 50 per cent or more, or right to appoint 50 per cent or more of the directors. Some organisations may meet this definition but are exempted as council-controlled organisations
DepreciationThe charge representing consumption or use of an asset, assessed by spreading the asset's value over its estimated economic life. Depreciation includes amortisation of intangible assets unless otherwise stated
Panuku Development Auckland (PDA)A new CCO combining Waterfront Auckland and ACPL to work as a single outward facing entity in the development of the region
Development contributionsContributions from developers, collected to help fund new infrastructure required by growth, as set out in the Local Government Act 2002. This can be a financial contribution or provision of services or an asset of the same value
Governing BodyThe governing body is made up of the mayor and 20 councillors. It shares its responsibility for decision-making with the local boards. The governing body focuses on the big picture and on Auckland-wide strategic decisions. Because each ward may vary in population, some wards have more than one councillor
Grants and subsidiesRevenue received from an external agency to help fund an activity or service that the council provides
Gross operating expenditureTotal without deductions of depreciation and finance costs
HapūKinship group, clan, tribe, sub tribe - section of a large kinship group
HouseholdOne or more people usually resident in the same dwelling, who share living facilities.  A household can contain one or more families or no families at all. A household that does not contain a family nucleus could contain unrelated people, related people, or could simply be a person living alone
InfrastructureThe fixed, long-lived structures that facilitate the production of goods and services and underpin many aspects of quality of life. Infrastructure refers to physical networks, principally transport, water, energy, and communications
Interim transport levyInterim levy for the first three years of the Long-term Plan 2015-2025 (10-year budget) which contributes towards the additional capital expenditure for the acceleration of the transport capital programme
IwiGroups of whānau or hapū related through a common ancestor
KaitiakiGuardians of the environment
KaitiakitangaGuardianship including stewardship; processes and practices for looking after the environment, guardianship that is rooted in tradition
Local boardsThere are 21 local boards which share responsibility for decision-making with the governing body. They represent their local communities and make decisions on local issues, activities and facilities
Local Board AgreementAn annual agreement between the governing body and each local board, outlining its priorities and preferences in its local board plan for the year
Local Board PlanA plan that reflects the priorities and preferences of the communities within the local board area in respect of the level and nature of local activities to be provided by the council over the next three years
Local Government Act 2002 (LGA 2002)Legislation that defines the powers and responsibilities of territorial local authorities such as Auckland Council
Local Government (Rating) Act 2002 (LGRA)Defines how territorial local authorities such as Auckland Council can assess and apply their rating policy
Long-term Plan or the LTP (Also known as the 10-year budget)This document sets out the council's vision, activities, projects, policies, and budgets for a 10-year period. Also commonly referred to as the LTP, the 10-year budget
Mana whenuaIwi, the people of the land who have mana or customary authority. Their historical, cultural and genealogical heritage are attached to the land and sea
Mataawaka Māori who live in Auckland but do not whakapapa to mana whenua
Mātauranga MāoriMāori wisdom. In a traditional context, this means the knowledge, comprehension or understanding of everything visible or invisible that exists across the universe
MaungaMountain, mount, peak; Auckland's volcanic cones
MauriMauri is the pure state of an object or substance. Sometimes referred to as the 'life force', mauri is contingent upon all things being in balance or in harmony
New Zealand Transport Agency (NZTA)Plans and delivers sustainable transport networks across New Zealand, In Auckland and has responsibility for maintaining the state highway network roads
Fortified Māori settlements, villages and towns
PapakāingaA location including meeting facilities, homes, vegetable gardens, a cemetery and other things required to sustain a whānau, hapū or iwi. Known previously as unfortified Māori settlements, villages and towns
Papakāinga housingHousing development within a papakāinga framework
PenlinkPenlink is a proposed alternative route between the Whangaparaoa Peninsula and State Highway 1 (SH1) at Redvale
RangatahiYounger generation, youth
RangatiraChief
RangatiratangaChiefly authority. A state of being. It is expressed in who we are, and how we do things; ability to make decisions for the benefit of their people and the community in general; confers not only status but also responsibility to ensure that the natural world and its resources are maintained into the future; recognises iwi and hapū right to manage resources or kaitiakitanga over the ancestral lands and waters. The Māori version of article 2 of the Treaty uses the word 'rangātiratanga' in promising to uphold the authority that tribes had always had over their lands and taonga
RatesA charge against the property to help fund services and assets that the council provides
RūnangaAssembly or council in an iwi context
TaongaA treasured item, which may be tangible or intangible
Tāmaki MakaurauThe Māori name for Auckland
Tangata WhenuaIndigenous peoples of the land
Targeted ratesA targeted rate is a rate set to fund activities where greater transparency in funding is desired or where the council considers the cost should be met by particular groups of ratepayers, as they will be the prime beneficiaries of the activity
Te Tiriti o Waitangi / The Treaty of WaitangiThe written principles on which the British and Māori agreed to found a nation state and build a government
Te Toa TakitiniA top-down council group approach to better enable the council group to identify, invest, and track progress on activities that deliver on the Auckland Plan, transform the organisation and deliver Aucklanders great value for money. It derives from the whakatauki (proverb): Ehara taku toa i te toa takitahi, engari he toa takitini, Success is not determined by me alone, it is the sum of the contribution of many
TikangaCustomary lore and practice
Transformational shiftsOur vision will not be achieved by incremental change. Transformational change is needed, and this requires a commitment to a better future from all Aucklanders. The Auckland Plan's six transformational shifts are the areas where Auckland needs to make a step change. They are interdependent and interconnected, and taking an integrated, mutually reinforcing and 'multiplier' approach will be critical to achieving them
UAGCUniform Annual General Charge - a fixed rate set uniformly across all properties regardless of property value or category, applied to every separately used or inhabited part of a rating unit (e.g. a dwelling on a section, a shop in a mall, or a granny flat)
WakaCanoe, vehicle, conveyance
WasteAny matter, whether liquid, gas or solid, which is discharged, unwanted or discarded by the current generator or owner as having little or no economic value, and which may include materials that can be reused, recycled or recovered
WatercareWatercare Services Limited
WMMPWaste Management and Minimisation Plan, the first Auckland-wide plan, aiming at an aspirational goal of Zero Waste, helping people to minimise their waste and create economic opportunities in doing so

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