annual budget 2016-17 volume 1 - auckland council · kua whakakāinga ki roto i a koe. kua noho mai...

Annual Budget2016/2017

Tahua ā-Tau 2016/2017

Volume 1: Our plan for 2016/2017

Auckland Council Annual Plan 2016/2017, Volume 1 of 2

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.

Auckland Council Annual Budget 2016/17, Volume 1 of 2 1 Auckland Council Annual Plan 2016/2017, Volume 1 of 2

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.

Auckland Council Annual Budget 2016/2017, Volume 1 of 2

He karere nā te koromatua

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

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

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

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

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

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

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

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

Len Brown MAYOR OF AUCKLAND

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

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

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

Finding your way around the volumes

Volume 1: Our plan for 2016/2017

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

Part 2 outlines the activities and services of Auckland Council.

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

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

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

Volume 2: Local Board information and agreements

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

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

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

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

2

Auckland Council Annual Budget 2016/17, Volume 1 of 2 3


Rārangi Kōrero

Contents

Message from the Mayor 1PART 1: OUR PLAN FOR 2016/2017 5 PART 2: OUR ACTIVITIES 10 2.1 Transport 12 2.2 Parks, community and lifestyle 17 2.3 Environmental management and regulation 21 2.4 Auckland development 25 2.5 Economic and cultural development 29 2.6 Governance and support 33 2.7 Water supply and wastewater 37 PART 3: OUR FINANCES 41 3.1 Financial overview 41 3.2 Prospective financial statements and notes 45 3.3 Prospective funding impact statement 70 PART 4: SUMMARY OF THE TŪPUNA MAUNGA OPERATIONAL PLAN 2016/2017 89 PART 5: APPENDICES 97 How the organisation is structured 97 How to contact the council 103 Glossary of terms 105 Key word index 108

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Auckland Council Annual Budget 2016/17, Volume 1 of 24 Auckland Council Annual Budget 2016/2017, Volume 1 of 2

4


Part 1: Our plan for 2016/2017 Responding to Auckland’s growth


Wahanga 1: Tā tātou mahere mō te tau 2016/2017

Part 1: Our plan for 2016/2017 Responding to Auckland’s growth We need to make substantial investments in infrastructure to respond to Auckland's rapidly growing population. Combined with the additional cost of providing day-to-day services for more people, rising asset ownership pressures are increasing the council's total operating costs faster than the rate of inflation. While efficiency gains and higher growth-related revenue are helping, rates increases higher than the rate of inflation are necessary for Auckland to continue to invest in response to this rapid population growth.

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

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

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

Figure 1

5

This investment will be paid for by a combination of:

average general rates increase

S

Central Government

Funding

Increased Bank

BorrowingUser Charges Rates

$1.4b

per week+1.9% $5.12

+2.5%per week


Part 1: Our plan for 2016/2017 What Auckland Council delivers


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.

Area of spend Our priorities

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 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.

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

We 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.

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.

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.

Every day we deliver 326 million litres of safe, clean and reliable drinking water to Aucklanders and collect, treat and discharge 400 million litres of wastewater.

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

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

6


Part 1: Our plan for 2016/2017 What Auckland Council delivers


Figure 2

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

7

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

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

Auckland Council delivering in 2016/2017

Figure 2.Re

gion

-wid

e

and a new organicProcessing facility

BuildingHunua 4

Watermain

Creating newCycle ways

Work commencing on theCity Rail Link

Wes

t Auc

klan

d

Te Atatubus interchangePublic transport project

Westgate Library and Community Centre

New community facility

Westgate Town Centre

Town centre development

Lincoln and Te Atatu road improvements

Roading project

Sout

h A

uckl

and

Waiuku Sports Park

Community facility upgrade

Ormiston and Pukekohe

Town centre developments

Manukau, Ōtāhuhu and Pukekohe

Public transport interchanges

Flatbush Main Street LinkRoading project

CBD

/Eas

t Auc

klan

d

Pioneer Women’s and Ellen Melville HallCommunity facility upgrade

Myers Park

Improvement project

Ngapipi Intersection and Tamaki Drive

Roading project

Westhaven Marine Village


Nor

th A

uckl

and

Albany Stadium Pool

New community facility

Warkworth Western Collector

Roading project

Warkworth Showgrounds

Community facility upgrade

Silverdale Park and Ride

Public transport project

https://www.watercare.co.nz/about-watercare/projects/hunua4/Pages/Hunua%204%20Watermain%20Project.aspx

https://www.watercare.co.nz/about-watercare/projects/hunua4/Pages/Hunua%204%20Watermain%20Project.aspx

https://at.govt.nz/cycling-walking/cycling-and-walking-programme/

https://at.govt.nz/projects-roadworks/city-rail-link/

https://at.govt.nz/projects-roadworks/te-atatu-bus-station/

https://at.govt.nz/projects-roadworks/te-atatu-bus-station/

https://at.govt.nz/projects-roadworks/lincoln-road-upgrade/

https://at.govt.nz/projects-roadworks/te-atatu-corridor-improvement/

https://at.govt.nz/projects-roadworks/te-atatu-corridor-improvement/

http://www.panuku.co.nz/ormiston-town-centre

http://www.panuku.co.nz/ormiston-town-centre

https://at.govt.nz/projects-roadworks/auckland-rail-upgrade/station-improvements/manukau-station/

https://at.govt.nz/about-us/news-events/a-boost-for-transport-connections-in-otahuhu/

http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/CouncilProjects/Pages/pioneerwomensandellenmelvillehall.aspx

http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/CouncilProjects/Pages/pioneerwomensandellenmelvillehall.aspx

http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/ccmp/Pages/MyersPark.aspx

http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/ccmp/Pages/MyersPark.aspx

https://at.govt.nz/projects-roadworks/tamaki-dr-and-ngapipi-rd-intersection/

https://at.govt.nz/projects-roadworks/tamaki-dr-and-ngapipi-rd-intersection/

http://www.westhaven.co.nz/westhaven/the-forum/the-westhaven-plan/westhaven-marine-village/

http://www.westhaven.co.nz/westhaven/the-forum/the-westhaven-plan/westhaven-marine-village/

http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/CouncilProjects/Pages/albanystadiumpool.aspx

http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/CouncilProjects/Pages/albanystadiumpool.aspx

https://at.govt.nz/projects-roadworks/warkworth-western-collector/

https://at.govt.nz/projects-roadworks/warkworth-western-collector/


Part 1: Our plan for 2016/2017 Your rates


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

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

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

Key rates policy settings for 2016/2017 An average general rates increase of 2.4 per cent.

A fixed charge (Uniform Annual General Charge or UAGC) of $394 (including GST).

The three-year Interim Transport Levy (ITL) was introduced as part of the Long-term Plan 2015-2025 to help fund a number of crucial transport projects including busways, cycleways and walking options. This remains a fixed charge of $113.85 (including GST) for non-business ratepayers and $182.85 (incl. GST) for business ratepayers.

A general rate for farm and lifestyle properties retained at its present level of 80 per cent of the urban residential rate.

Key rates policy changes this year Amendments to our rates remission and postponement policies to better reflect the limitations on the sale

and use of some Māori land.

The establishment of a two year pilot programme providing financial assistance of up to $35,000 per property to eligible owners in Piha, Te Henga, Karekare and Little Oneroa catchments to replace or upgrade their failing septic tank systems. This will be funded by a targeted rate set from 1 July 2017.

The introduction of a waste management targeted rate in rural Franklin to fund a new fortnightly kerbside fully commingled recycling collection service from 1 November 2016.

Changes to targeted rates for three expanded Business Improvement Districts to support improvements to local business areas and help attract new business and customers.

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

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Part 1: Our plan for 2016/2017 How we will achieve better outcomes with and for Māori


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.

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 activities that deliver on the Auckland Plan, transform the organisation and deliver Aucklanders great value for money. The name Te Toa Takitini is a call to action for the entire council group and draws from the whakatauki (proverb):

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

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

Te Toa Takitini oversees five programmes of action:

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, 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, taurahere organisations, and Māori cultural sector organisations.

Whai tika – effectiveness for Māori: To significantly lift the council’s performance and relationships with Māori by transforming the council group’s culture, thinking and practises through activities that target decision-makers, departments and council controlled organisations (CCOs).

Whai tahinga – treaty of Waitangi Settlements: To influence and optimise treaty settlement opportunities for mana whenua, council and the wider public of Auckland, through activities that target decision-makers, departments, council controlled organisations and the Crown.

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

9


Part 2: Our activities


Wahanga 2: Ā tātou mahi


10

Area of spendCapital spend

2016/2017 $1.945bn

Operating spend2016/2017$3.668bn

How operating costs are funded

Rates value per $100 What will be delivered Key performance indicators

• building and maintaining all local and main arterial roads • footpaths, cycle paths, bridges, carparks, culverts etc• providing public transport services – trains, buses, ferries • invest in rail, bus stations and ferry infrastructure• transport safety, education and enforcement• continued work on key infrastructure projects, including City Rail Link and AMETI• year 2 of the accelerated transport programme, which included $523m capital expenditure over three years funded with the support of the interim transport levy.

• increase public transport boardings to over 88 million trips, improve punctuality to 93% and customer satisfaction to 84%• maintain optimum travel time on at least 85% of key freight routes• grow annual number of cycling trips on Auckland Transport’s designated routes to 1.2 million per year.

• regional and local parks• libraries, community facilities, community services and grants• arts and cultural facilities, activities and community events• swimming pools and recreation centres• burial and cremation facilities in our cemeteries.

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

• building and maintaining the stormwater network• improving the quality of water in streams and harbours• waste collection, including recycling and reducing waste to landfill• protecting biodiversity• undertaking regulatory activities such as resource and building consents, dog control, food licensing and swimming pool inspections.

• ensure no more than 1 in 1000 properties connected to our stormwater system is flooded per year• have three resource recovery facilities operational• establish 8 hectares of new forest or wetland habitats per year• process 100% of building and non-notified resource consents within 20 working days• 30% of catchments have key source of contaminants identified and mitigated.

• Unitary Plan and local plans, policy development, waterfront development, town centre development, property management and development• enabling housing development through existing and future spatial priority areas.

• creating a vibrant Waterfront that attracts over 73% of Aucklanders to the Waterfront each year• increase the proportion of residents who are proud of the way their local area looks and feels from 64% in 2010 to 90% in 2040.

• managing major attractions, venues and sports stadiums• delivery of World Masters Games 2017• an increased focus on marketing Auckland as a leisure destination in Australia.

• major events contributing $86m in 2016/17 towards the regional GDP• grow visitors to Auckland Zoo and Art Gallery to 1.17 million visitors per year and maintain a 90% customer satisfaction level• host 825 public art performances through Auckland Live• host 775 commercial events and 970 community events at our stadiums.

• Local Body elections and elected member support and meeting processes• corporate functions such as finance, legal, communications and human resources• Auckland Council Investments Ltd, including Ports of Auckland• grants to Auckland War Memorial Museum, MoTAT and the Auckland Regional Facilities and Amenities.

• reducing corporate costs through an ongoing efficiency programme to achieve annual savings of $243 million by end of 2017• deliver a return on equity of 7.4% on major investments.

• 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 major projects to cater for growth, such as the Central and Northern Interceptor wastewater projects.

• maintain 100% compliance with Drinking-water Standards for New Zealand• less than 10 wastewater system overflows per 1000 connections in dry weather conditions.

$205m $201m

$8Auckland

Development

63%

37%

Rates

Other, including fees and charges

$40m $193mEconomic and

Cultural Development42%

58%Rates

Other, including fees and charges $6

$117m $470m42%

EnvironmentalManagement and

Regulation

58%Rates


$238m $449m Governance

and Support

22%

78%

Rates


$254m $570mParks, Community

and Lifestyle

85%

15%

Rates


$765m $1253mTransport 45%

55%Rates


$326m $532mWater Supply and

Wastewater

0%

100%

Rates





ANNUAL BUDGET 2016/2017

Area of spendCapital spend

2016/2017 $1.945bn

Operating spend2016/2017$3.668bn


Rates value per $100 What will be delivered Key performance indicators

• building and maintaining all local and main arterial roads • footpaths, cycle paths, bridges, carparks, culverts etc• providing public transport services – trains, buses, ferries • invest in rail, bus stations and ferry infrastructure• transport safety, education and enforcement• continued work on key infrastructure projects, including City Rail Link and AMETI• year 2 of the accelerated transport programme, which included $523m capital expenditure over three years funded with the support of the interim transport levy.

• increase public transport boardings to over 88 million trips, improve punctuality to 93% and customer satisfaction to 84%• maintain optimum travel time on at least 85% of key freight routes• grow annual number of cycling trips on Auckland Transport’s designated routes to 1.2 million per year.

• regional and local parks• libraries, community facilities, community services and grants• arts and cultural facilities, activities and community events• swimming pools and recreation centres• burial and cremation facilities in our cemeteries.

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

• building and maintaining the stormwater network• improving the quality of water in streams and harbours• waste collection, including recycling and reducing waste to landfill• protecting biodiversity• undertaking regulatory activities such as resource and building consents, dog control, food licensing and swimming pool inspections.

• ensure no more than 1 in 1000 properties connected to our stormwater system is flooded per year• have three resource recovery facilities operational• establish 8 hectares of new forest or wetland habitats per year• process 100% of building and non-notified resource consents within 20 working days• 30% of catchments have key source of contaminants identified and mitigated.

• Unitary Plan and local plans, policy development, waterfront development, town centre development, property management and development• enabling housing development through existing and future spatial priority areas.

• creating a vibrant Waterfront that attracts over 73% of Aucklanders to the Waterfront each year• increase the proportion of residents who are proud of the way their local area looks and feels from 64% in 2010 to 90% in 2040.

• managing major attractions, venues and sports stadiums• delivery of World Masters Games 2017• an increased focus on marketing Auckland as a leisure destination in Australia.

• major events contributing $86m in 2016/17 towards the regional GDP• grow visitors to Auckland Zoo and Art Gallery to 1.17 million visitors per year and maintain a 90% customer satisfaction level• host 825 public art performances through Auckland Live• host 775 commercial events and 970 community events at our stadiums.

• Local Body elections and elected member support and meeting processes• corporate functions such as finance, legal, communications and human resources• Auckland Council Investments Ltd, including Ports of Auckland• grants to Auckland War Memorial Museum, MoTAT and the Auckland Regional Facilities and Amenities.

• reducing corporate costs through an ongoing efficiency programme to achieve annual savings of $243 million by end of 2017• deliver a return on equity of 7.4% on major investments.

• 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 major projects to cater for growth, such as the Central and Northern Interceptor wastewater projects.

• maintain 100% compliance with Drinking-water Standards for New Zealand• less than 10 wastewater system overflows per 1000 connections in dry weather conditions.


Part 2: Our activities 2.1 Transport


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.

Building and maintaining local and main arterial roads, footpaths,

cycle paths, bridges,

carparks,and culverts

Providing public transport services and infrastructure – trains, buses and ferries

Transport safety, education and enforcement

Continued work on key

infrastructure projects,

including City Rail Link and AMETI

Year two of Accelerated Transport Programme

12

Area of spend Capital spend2016/2017

Operating spend2016/2017


Rates value per $100

$765m $1253mTransport 45%

55%Rates


2016/2017 budget at a glance




Key highlights and priorities for the Annual Budget 2016/2017

City Rail Link

Accelerated Transport Programme

The CRL will enable trains to run every 7-10 minutes at peak times for most stations, carrying up to

30,000 people an hour

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

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

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

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

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

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

13




Ōtāhuhu Bus-Train Interchange

Albany Highway upgrade

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

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

Covered bus platforms, cycle storage racks and a dedicated passenger drop-off zone

will make using public transport easier and more enjoyable

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

The Albany Highway North upgrade is Auckland Transport’s biggest roading project on the North Shore since the Northern Busway. Albany Highway serves the North Harbour industrial estate, five schools, Massey University and growing residential areas. Traffic volumes on the highway are expected to rise from 15,000 to 20,000 vehicles per day by 2021. The project is important to support growth, reduce congestion, improve safety and encourage use of a range of transport modes along the corridor. The upgrade involves the provision of new transit lanes, on and off-road cycle routes, wider footpaths, a new bridge over Oteha Stream (Day’s Bridge) and the replacement of three major roundabouts with signalised intersections. Construction on this project began in November 2014 and is expected to be completed in late 2016, well ahead of schedule.

14




Other priorities

Rollout of Simplified Zone Fares – the new integrated fares system for Auckland from August 2016.

Providing a network of buses, trains and ferry services.

Managing roads, footpaths, on-street and off-street parking and parking buildings.

Implementation of the public transport New Network – new network and operator contracts in south Auckland, tendering new services in west Auckland, and progressing new key interchanges at Ōtāhuhu, Manukau, Pukekohe, Te Atatu, Westgate and Silverdale.

Continued delivery of the three year cycling and walking programme.

Warkworth Western Collector stage one – delivery of a new bridge between Falls Road and Mansel Drive in Warkworth.

Beginning construction on improvements to the Tāmaki / Ngapipi intersection.

Delivering additional bus services for the World Masters Games.

Increasing train frequency on the western line to 10 minutes at peak and 20 minutes inter-peak.

Māori transformational activities

Transport contributes to the following Māori transformational shift activities:

Whai rawa – Māori economic well-being

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. During the Long-term Plan 2015-2025 three Ready for Road programmes were completed in conjunction with marae and the New Zealand Police and a full time staff position established.

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

15




Financial information

Capital spend

By activity area By category

Key projects

Operating spend


$96m

$430m

$239m

Capex for Growth

Improving services

Renewal of assets

$169.5m

$30.0m

$22.6m

$13.1m

$11.6m

$10.5m

$10.0m

$8.5m

$6.9m

$6.9m

$6.9m

$4.0m

City Rail Link

Strategic Land Acquisition

Manukau Bus Interchange (Lot 59)

Pukekohe Station Upgrade

AMETI

Electric Trains

Te Atatu roads upgrade

Streetlighting Upgrade LED

Glen Innes to Tāmaki Drive Shared Path

Ōtāhuhu Bus Interchange

Waterview Cycleway Connection

Albany Highway Upgrade

$338m

$186m

$729m

Depreciation

Interest

Otherexpenditure

16


Part 2: Our activities 2.2 Parks, community and lifestyle


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.

Provide parks, sportsfields and recreational facilities.

Create a sense of belonging and pride with a partnership

model for community

empowerment.Libraries collections

for Auckland's diverse

communities.

Deliver community events and facilities.

17






$254m $570mParks, Community

and Lifestyle

85%

15%

Rates






Sportsfield development

Albany stadium pool

New 4,000 square metre facility opening in 2017 to serve the

growth near Albany

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

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

44 fields to be floodlit

39 fields to be sand carpeted

3 fields to be developed as artificial turf fields

4 fields to be developed as fibre-reinforced sand carpet fields plus floodlights.

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

A zero-depth splash pad will provide toddlers with their first aquatic experience with exciting splash and spray water toys.

The shallow pools will include slides, water cannons and a large play structure for children to develop confidence in the water.

For more confident children and adults the leisure pool can be set up for an array of water activities and structured lane swimming, and will have a permanent climbing wall in the deep end.

18




Other priorities

Delivery of the final stages of the Warkworth Showgrounds Redevelopment making this a premiere park for northern Rodney.

Beginning work on redeveloping the Avondale Community Centre.

Running community events, arts and festivals.

Managing libraries and recreation centres.

Running regional parks e.g. Botanic gardens and cemeteries.

Managing local parks and open space, swimming pools and leisure centres.

An additional operating expenditure of $150,000 to deliver town and local centre clean-ups across the region.


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

Whai painga – Māori social well-being


Whai tika – effectiveness for Māori.

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

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

19





Capital spend


Key projects

Operating spend


$428.2 m

$53.1 m

$89.0 m

Other expediture

Interest

Depreciation

$100.9 m

$61.8 m

$91.8 m

Renewal of assets

Improving services

Capex for growth

$1.0 m$1.2 m$1.3 m$1.6 m$1.8 m$1.9 m$2.5 m$3.3 m

$10.3 m$41.4 m

Library Development (Flat Bush)

Sports park (Waiuku)

Art centre redevelopment (Uxbridge)

Community facility upgrade (Ōtara-Papatoetoe)

Leisure Centre extension (Hibiscus & Bays)

Showgrounds (Warkworth)

Community centre replacement (Avondale)

Upgrade (Myers Park)

Stadium Pool (Albany)

Sportsfield upgrades and development

20


Part 2: Our activities 2.3 Environmental management and regulation


2.3 Environmental management and regulation

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

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

Flourishing indigenous

biodiversity, healthy waterways and

harbours

New and improved waste services

including the Waste Management and Minimisation Plan

Water Sensitive Design that seeks to protect, enhance and mimic natural

systems and processes

Building and Resource consenting, Licensing and

Compliance services

21





$117m $470m42%

EnvironmentalManagement and

Regulation

58%Rates







Collection and processing of waste

With the roll out of a regionally consistent kerbside recycling collection service we will introduce 240 litre wheelie bins to residential and commercial premises in Rodney, Waitākere and the North Shore. The same service will be rolled out in rural Franklin in November 2016. We aim to establish 12 Community Recycling Centres across the region over a 10-year period. Sites at Waiuku, Helensville and Devonport have been secured and contracted to local community enterprises to operate. A fourth site in Waitākere is being trialled and is likely to be tendered in late 2016. Work is also underway across the region. This includes preparing two sites in the central area, a scoping study in the south. Trials in the Hauraki Gulf Islands are also starting the process of identifying sites and building capacity amongst potential future operators.

Stormwater infrastructure

Balancing the demand for new stormwater infrastructure, whilst maintaining the existing network

Standardised refuse service across the region combined with new Community Recycling Centres

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

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

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

22




Consenting Made Easy

Other priorities

Managing bylaws.

Delivering pest and weed control programmes.

Delivering water quality improvement.


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 2015/2016, 11 marae participated in the project, where over a three month period, 83 per cent of waste was diverted from landfill (89,340 litres). In 2016/2017 we will build on last year’s success of reducing waste to land fill and on expanding the programme.

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

23





Capital spend


Key projects

Operating Spend


$4.1 m

$4.6 m

$7.2 m

$7.3 m

$9.9 m

$11.1 m

$13.7 m

Tāmaki college stream daylighting

Pond renewal & rehabilitation - Wattle Farm

Takanini conveyance channel

Refuse bins for Waste Minimisation Plan

Inner west triangle stormwater

Critical stormwater asset renewals

Waste solution - Organics processing facility

$377.8 m

$32.6 m

$59.4 m

Otherexpenditure

Interest

Depreciation

$27.2 m

$51.6 m

$38.3 m

Renewal ofassets

Improvingservices

Capex for growth

24


Part 2: Our activities 2.4 Auckland development


2.4 Auckland development

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

Unitary Plan, local plans and

policy development


Waterfront development

Property management and development

Enabling housing development

through existing and future

spatial priority areas

25






$205m $201m

$8Auckland

Development

63%

37%

Rates

Other, including fees and charges





Westgate Town Centre

Transform Manukau

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

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

26




City Centre Projects

Other priorities

Delivering local business area planning, local street environment and town centres.

Deliver on a range of strategic and geographic planning objectives.

Facilitate the redevelopment of urban locations.

Design of the Karangahape Road Streetscape Enhancement project.

Design the next stage of upgrades within the Britomart precinct.

Design of the upgrade to the southern end of Federal Street and parts of Hobson and Nelson Streets.

Revitalisation of the waterfront.


Auckland development contributes to the following Māori transformational shift activities:



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 2016/2017.

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

27





Capital spend


Key projects

Operating spend


$113m

$75m

$17m

Capex forGrowth

Improvingservices

Renewal ofassets

$28.7m

$22.1m

$21.3m

$20.5m

$20.0m

$18.8m

$15.9m

$13.1m

$7.7m

$3.1m

$2.8m

Waterfront commercial property upgrades

Town centre upgrades (including Westgate Town Centre)

Community facilities - upgrades and new facilities

Waterfront public space upgrades

Transform Manukau

City centre upgrade

Hobsonville residential development

Marina development and renewals

Priority growth area infrastructure

Heritage fund

Town centre development (Ormiston)

$14m

$30m

$157m

Depreciation

Interest

Other expenditure

28


Part 2: Our activities 2.5 Economic and cultural development


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.

Supporting and growing Auckland’s economy through

major events such as World Masters Games 2017

Working with the business

sector to attract investment and

grow jobs

Managing major attractions, venues and

sports stadiums

Promoting Auckland as a

tourism destination

29






$40m $193mEconomic and

Cultural Development42%

58%Rates






World Masters Games 2017

Innovation Precinct GridAKL

Auckland Zoo

World Masters Games is the world’s largest multi-sport event and is

expected to deliver 250,000 visitor nights

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

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

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

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

30




Stadiums

Other priorities

A refreshed strategic approach to major events leveraging Auckland’s status as “Best Medium Sports City”.

Attracting visitor dollars and jobs for Auckland.

Managing high-quality venues and facilities.

Increased focus on marketing Auckland as a leisure destination in Australia.

Focus on Auckland as an innovation hub of the Asia-Pacific rim.

Supporting the growth of Auckland’s advanced industries.

Regional Facilities Auckland (RFA) will continue to identify, develop and implement opportunities for increasing external revenue to minimise the cost to ratepayers of delivering activities.


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


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

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

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.

31





Capital spend


Key projects

Operating spend


$9.0m

$7.7m

$6.3m

$1.5m

Auckland Zoo

Innovation Precinct GridAKL

Stadiums development

Development (Aotea Precinct)

$9m

$7m

$24m

Capex for Growth

Improving services

Renewal of assets

$26m

$13m

$154m

Depreciation

Interest

Other expenditure

32


Part 2: Our activities 2.6 Governance and support

Auckland Council Annual Budget 2016/2017. Volume 1 of 2

2.6 Governance and support

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

Enable the Mayor and

councillors to govern

effectively

Manage Auckland

Council’s major equity

investments in POAL, AIAL and Auckland Film

studio

Provides advice and support to the Local Board elected members

Support functions such as

Finance, Information Services, and Customer Services

Funding for Auckland War Memorial

Museum and other regional amenities

33






$238m $449m Governance

and Support

22%

78%

Rates






Local body elections

The October 2016 Local Body elections with 1,054,619 registered voters is a key programme for Governance for this year. In October Aucklanders will elect their new Mayor, 20 Councillors and 149 Local Board members who will govern the city for the next three years. This year our objective is simple: deliver an excellent experience for candidates and voters with an increased voter turnout and organise elections that are both innovative and transparent. Key to the success of the elections is our communications and engagement campaign, which will include a strong online presence and offer more in-depth candidate information using a variety of social media platforms.

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

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

.

Ports of Auckland Limited

NewCore delivery allows a regional view across legacy

Council systems, showing one view of the customer

Local body elections use new media to reach voters. A public awareness campaign began in

December 2015

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

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

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

34



Auckland Council Annual Budget 2016/2017. Volume 1 of 2

Other priorities

Sound commercial governance of investments.

Day-to-day operational functions like risk, legal, audit, finance and the customer support centre.

Elections, webcasting and elected members support.

Provide funding for the War Memorial Museum, MoTaT and Auckland Regional Amenities.


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 tika – effectiveness for Māori

Whai tahinga – Treaty of Waitangi settlements.

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

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

35





Capital spend


Key projects

Operating spend


$271.8 m

$46.9 m

$129.8 m

Other expediture

Interest

Depreciation

$74.1 m

$25.8 m

$137.9 m

Renewal ofassets

Improvingservices

Capex for growth

$14.4 m

$17.8 m

$26.5 m

$160.5 m

Building renewals

Information Services

NewCore

POAL Capital Investments

36


Part 2: Our activities 2.7 Water supply and wastewater treatment and disposal


2.7 Water supply and wastewater treatment and disposal

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

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

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

Provide a high standard of drinking

water and wastewater treatment

Building and maintaining the network of pipes, dams, treatment plants, pumps

Deliver major projects such as the Central & Northern

Interceptor wastewater projects to cater for growth

Delivering projects such as Hunua 4 Watermain toprovide for

Auckland’s future growth

37






$326m $532mWater Supply and

Wastewater

0%

100%

Rates






Northern Interceptor

Pukekohe East Reservoirs

Hunua 4 Watermain

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

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

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

38




Other priorities

To complete the expansion of the Waikato Water Treatment Plant to provide for growth and water supply resilience.

To continue to plan and gain consents for the North Harbour 2 water main which will support growth and improve the security of supply across western and northern parts of Auckland.

To continue to assess options and consult with the community on the need to replace the ageing Huia Water Treatment Plant.

To continue the detailed design of the Central Interceptor (wastewater pipe), which will support growth, replace ageing assets and reduce wastewater overflows to the Waitematā Harbour.

To continue to gain consents for the Army Bay Outfall Replacement Project which will not only support growth but also improve environmental outcomes by reducing the frequency and volume of overflows.


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 2016/2017.

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Capital spend


Key projects

Operating spend


$218m

$17m

$91m

Capex forGrowth

Improvingservices

Renewal ofassets

$81.2m

$70.9m

$23.1m

$19.7m

$18.9m

$17.3m

$15.9m

$15.6m

$10.7m

$9.9m

$4.5m

Collection System Expansion

Wastewater Treatment Expansion

Hunua No. 4 Water Supply Scheme

Waikato Augmentation

Treated Water Network Expansion

Collection System Replacement

Treated Water Network Rehab/Replacement

Wastewater Treatment Improvement

Central Interceptor

Water Treatment Plant Improvement

Northern Interceptor

$227m

$92m

$213m

Depreciation

Interest

Otherexpenditure

40


Part 3: Our finances 3.1 Financial overview


Wahanga 3: Ā tātou pūtea


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

Key financial parameters for 2016/2017 ($ million) Long-term Plan

2015/16 Long-term Plan

2016/17 Annual Plan

2016/17 Total capital expenditure 1,802 1,911 1,945Total operating expenditure 3,446 3,689 3,667

Rates revenue 1,571 1,646 1,637Average general rates increase 2.5% 3.2% 2.4%

Total assets 42,825 45,849 45,715 Total borrowing 8,046 8,850 8,767Total equity 32,214 34,312 34,057 Interest to revenue ratio 11.3% 11.6% 11.5%

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

almost a billion dollars on roads and footpaths, including Tiverton Road and Wolverton Street in New Lynn, Albany Highway, Te Atatu Road, and continued investment in the Auckland Manukau Eastern Transport Initiative (AMETI)

$1.1 billion on public transport, including the rollout of 57 electric trains, the new rail station and transport hub at Manukau, upgraded stations and bus interchanges across the network, and new ferry facilities and services to Hobsonville and Beach Haven

$220 million on land for new parks, including local parks in new developments

$190 million expanding and improving our stormwater network

$900 million on water and wastewater infrastructure, including the upgrade of the Waikato Water Treatment Plant, expanding networks to support urban growth, and wastewater solutions to protect our harbours

$50 million on new or upgraded libraries including Ōtāhuhu, Ranui, Devonport, Wellsford and Waiheke.

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

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

41




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

Capital expenditure and other outflows Funding sources2016/2017 $ million 2016/2017 $ millionGrowth 705 Subsidies 240

Service level improvement 667 Development contributions 163

Renewals 573 Asset sales 87

Weathertightness claims and other movements

24

Operating cash surplus 644

Borrowings 835

Total 1,969 Total 1,969

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

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

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

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

0%

2%

4%

6%

8%

10%

12%

14%

16%

2012* 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Actual results Updated budget Long-term Plan 2015-2025

Figure 3: Key prudential ratio: interest to revenue

Ratio Limit Target

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

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

Some key examples of these costs include:

over $110 million per annum to maintain more than 7000km of road, 7000km of footpaths, 41 rail stations, 21 wharves, 14 ferry facilities and six busway stations

over $110 million per annum to assist the funding of public transport trips

$17 million per annum to mow our 241 sports parks and 3000 local parks

over $65 million per annum to maintain and operate parks, sport and recreation facilities (including 927 playgrounds and 43 aquatic and recreation centres)

$50 million per annum to run 54 local libraries along with the central library

over $200 million per annum to run water and wastewater services (Watercare)

$90 million per annum to provide rubbish collection, recycling and inorganic collections.

We also provide assistance to other organisations including:

funding assistance to major facilities such as Auckland War Memorial Museum $30 million, MOTAT $13 million, Auckland Zoo $8 million, Auckland Art Gallery $11 million

grants of over $50 million to support a range of regional and local community, arts and cultural groups and facilities such as Auckland Theatre Company, Auckland Arts Festival, Auckland Philharmonia, Howick Historic Village, Te Tuhi, Lopdell House, Q Theatre, North Shore Theatre and Arts Trust.

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

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

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

Operating expenditure Funding sources 2016/17 $ million 2016/17 $ million Staff 811 Rates 1,637

Interest 466 Fees and user charges 1,228

Depreciation 885 Subsidies and grants 260

Other 1,505 Other 300

Total 3,667 Total 3,425

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

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

increase overall average general rates by 2.4 per cent (an average increase of $1.13 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

increase water and wastewater charges by 2.5 per cent (an average increase of $0.40 per week for residential properties).

44


Part 3: Our finances 3.2 Prospective financial statements and notes


3.2 Prospective financial statements and notes

Prospective statement of comprehensive revenue and expenditure

Auckland Council group consolidated $000Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual Plan

2016/17

Variance2016/17

Notes

Revenue Rates 1,571,188 1,646,308 1,636,654 (9,654) 1Fees and user charges 1,143,071 1,303,191 1,227,958 (75,233) 2Grants and subsidies 427,336 513,208 499,971 (13,237) 3Development and financial contributions 164,834 198,800 163,318 (35,482) 4Vested assets 169,930 186,533 195,852 9,319Other revenue 175,937 196,777 239,767 42,990 2Finance revenue 5,383 5,629 5,394 (235)Total revenue 3,657,679 4,050,446 3,968,914 (81,532)

Expenditure Employee benefits 771,527 782,635 810,916 28,281 5Depreciation and amortisation 823,205 871,836 885,370 13,534 6Grants, contributions and sponsorship 127,913 120,663 124,891 4,228Other operating expenses 1,283,145 1,428,057 1,380,432 (47,625) 5,7Finance costs 440,617 485,613 465,403 (20,210) 8Total expenditure 3,446,407 3,688,804 3,667,012 (21,792)

Operating surplus 211,272 361,642 301,902 (59,740)

Share of surplus in associates and joint ventures 43,443 45,937 55,109 9,172

Surplus before income tax 254,715 407,579 357,011 (50,568)

Income tax expense 28,267 29,656 27,011 (2,645)

Surplus after income tax 226,448 377,923 330,000 (47,923)

Surplus after income tax is attributable to: Ratepayers of Auckland Council 226,448 377,923 330,000 (47,923)

Other comprehensive revenue Net gain on revaluation of property, plant and equipment 4,634 1,805,900 1,018,085 (787,815) 6Tax on revaluation of property, plant and equipment 0 (85,201) (91,295) (6,094)Total other comprehensive revenue 4,634 1,720,699 926,790 (793,909)

Total comprehensive revenue 231,082 2,098,622 1,256,790 (841,832)

Total comprehensive revenue is attributable to: Ratepayers of Auckland Council 231,082 2,098,622 1,256,790 (841,832)

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Notes to variances in the previous table: 1. The lower rates revenue reflects the movement from a 3.2 per cent average general rates increase to existing ratepayers to 2.4 per cent.

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

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

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

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

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

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

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

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Prospective statement of changes in equity Auckland Council group consolidated $000 Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual Plan

2016/17

Variance2016/17

Notes

Contributed equity

Opening balance 26,734,382 26,734,382 26,728,438 (5,944) 1

Surplus after income tax 0 0 0 0

Other comprehensive revenue 0 0 0 0

Total comprehensive revenue 0 0 0 0

Transfer to/ (from) reserves 0 0 0 0

Balance as at 30 June 26,734,382 26,734,382 26,728,438 (5,944)

Accumulated funds

Opening balance 694,488 920,549 739,338 (181,211) 2

Surplus/ (deficit) after income tax 226,448 377,923 330,000 (47,923) 3


Total comprehensive revenue 226,448 377,923 330,000 (47,923)

Transfer to/ (from) reserves (387) 4,672 4,964 292

Balance as at 30 June 920,549 1,303,144 1,074,302 (228,842)

Reserves

Opening balance 4,553,869 4,558,890 5,332,417 773,527 4


Other comprehensive revenue 4,634 1,720,698 926,789 (793,909) 4

Total comprehensive revenue 4,634 1,720,698 926,789 (793,909)

Transfer to/ (from) reserves 387 (4,672) (4,964) (292)


Total equity 5

Opening balance 31,982,739 32,213,821 32,800,193 586,372

Surplus after income tax 226,448 377,923 330,000 (47,923)

Other comprehensive revenue 4,634 1,720,698 926,789 (793,909)

Total comprehensive revenue 231,082 2,098,621 1,256,789 (841,832)



Notes to variances in the above table: 1. The reduction in opening equity is the result of restructuring loans within the group.

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

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

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

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

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Prospective statement of financial position Auckland Council group consolidated $000Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual Plan

2016/17

Variance2016/17

Notes

ASSETS Current assets Cash and cash equivalents 240,000 240,000 329,518 89,518 1Receivables and prepayments 244,231 272,835 262,339 (10,496)Other financial assets 365,956 365,956 265,760 (100,196) 2Derivative financial instruments 556 556 1,594 1,038Inventories 22,581 23,146 17,129 (6,017) 1Non-current assets held for sale 67,121 52,651 52,650 (1) Total current assets 940,445 955,144 928,990 (26,154)

Non-current assets Receivables and prepayments 93,665 104,634 25,616 (79,018) 1Other financial assets 133,062 147,476 138,515 (8,961) Derivative financial instruments 93,748 93,748 200,068 106,320 1Property, plant and equipment 39,766,458 42,748,712 42,439,345 (309,367) 1Intangible assets 485,649 482,614 521,031 38,417 1Biological assets 1,764 1,764 1,704 (60) Investment property 457,281 457,281 559,574 102,293 1Investments in associates and joint ventures 853,415 857,933 900,045 42,112 1Total non-current assets 41,885,042 44,894,162 44,785,898 (108,264)

TOTAL ASSETS 42,825,487 45,849,306 45,714,888 (134,418)

LIABILITIES Current liabilities Employee entitlements 81,844 83,022 87,355 4,333 Payables and accruals 717,411 772,317 753,404 (18,913) 1Borrowings 1,490,518 1,640,640 1,612,639 (28,001) 2Derivative financial instruments 40,553 40,553 1,913 (38,640) 1Tax payable 0 0 2,048 2,048 1Provisions 61,159 48,873 60,672 11,799 1Total current liabilities 2,391,485 2,585,405 2,518,031 (67,374)

Non-current liabilities Employee entitlements 5,390 5,468 5,316 (152) Payables and accruals 52,269 59,261 61,506 2,245 Borrowings 6,555,787 7,209,813 7,152,851 (56,962) 2Derivative financial instruments 235,666 235,666 485,034 249,368 1Provisions 259,487 227,935 242,726 14,791 1Deferred tax liabilities 1,111,582 1,213,316 1,192,442 (20,874) 1Total non-current liabilities 8,220,181 8,951,459 9,139,875 188,416

TOTAL LIABILITIES 10,611,666 11,536,864 11,657,906 121,042

NET ASSETS 32,213,821 34,312,442 34,056,982 (255,460)

EQUITY Contributed equity 26,734,382 26,734,382 26,728,438 (5,944) Accumulated funds 920,549 1,303,144 1,074,302 (228,842) 1Reserves 4,558,890 6,274,916 6,254,242 (20,674) 1Total ratepayers equity 32,213,821 34,312,442 34,056,982 (255,460)

TOTAL EQUITY 32,213,821 34,312,442 34,056,982 (255,460)

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Notes to variances in the previous table: 1. Variances are due to the updating of opening balances to reflect balances in the audited 2014/2015 annual accounts.

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

Prospective statement of cash flows

Auckland Council group consolidated $000Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual Plan

2016/17

Variance2016/17

Notes

Cash flows from operating activities Receipts from rates revenue 1,563,551 1,630,199 1,627,888 (2,311)Receipts from customers and other services 1,884,531 2,171,818 2,103,403 (68,415)Interest received 5,383 5,629 5,394 (235)Dividends received 42,596 45,102 54,416 9,314Payments to suppliers and employees (2,208,271) (2,327,569) (2,295,556) 32,013Interest paid (428,422) (475,120) (454,766) 20,354Income tax refund/(paid) (11,957) (13,123) (9,412) 3,711Net cash from operating activities 847,411 1,036,936 1,031,367 (5,569) 1

Cash flows from investing activities Proceeds from sale of other financial assets 17,125 17,483 100,024 82,541 2Sale of property, plant and equipment, investment property and intangible assets

69,172 67,121 87,407 20,286 3

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

(1,801,742) (1,911,273) (1,945,333) (34,060) 4

Proceeds from community loan repayments 0 0 0 0Acquisition of other financial assets (4,512) (5,414) (5,414) 0Advances to external parties (9,000) (9,000) (9,000) 0Net cash from investing activities (1,728,957) (1,841,083) (1,772,316) 68,767

Cash flows from financing activities Proceeds from borrowings 1,943,495 2,294,665 2,221,449 (73,216)Repayment of borrowings (1,069,949) (1,490,518) (1,480,500) 10,018Net cash from financing activities 873,546 804,147 740,949 (63,198)

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

(8,000) 0 0 0

Opening cash and cash equivalents and bank overdrafts 248,000 240,000 329,518 89,518 5Closing cash and cash equivalents and bank overdrafts 240,000 240,000 329,518 89,518

Notes to variances in the above table: 1. Variances in cash flows from operating activities reflect the updated projections included in the Prospective statement of comprehensive

revenue and expenditure.

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

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

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

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

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Part 3: Our finances 3.2 Prospective financial statements and notes 3.2.1 Notes to the prospective financial statements


3.2.1 Notes to the prospective financial statements

Note 1: Statement of significant accounting policies

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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

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

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

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Item Policy


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

Type Recognition & measurement

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

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

Development contributions

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

Financial contributions

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

Vested assets1 When control of the asset is transferred to the Group at its fair value, unless there is a use or return condition attached to the asset.

Fines and infringements

When the infringement notice is issued.

Finance revenue2 Using the effective interest method.

Dividend revenue When the Group’s right to receive the dividend is established.

Fees and user charges

Water and wastewater

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

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

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

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

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

Licences and permits On receipt of application as these are non-refundable.

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

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

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Item Policy

Expenditure

Employee benefits

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

Grants,contributions and sponsorship expense

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

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

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

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

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

Operating Leases

Lessee

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

Lessor

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

Prospective statement of financial position

Cash and cash equivalents

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

Receivables and prepayments

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

Provision for impairment of receivables

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

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

53




Item Policy

assets the surplus or deficit.

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

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

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

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

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

Derivative financial instruments

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

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

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

Cash flow hedges

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

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

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

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

Property, plant and equipment

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

• Infrastructure assets include land under roads and systems and networks integral to the city’s infrastructure and intended to be maintained indefinitely, even if individual assets or components are replaced or upgraded;

• Operational assets include property, plant and equipment used to provide core council services, either for administration, as a community service or as a business activity. Other operational assets include landfills, motor vehicles, office equipment, library books and furniture and fittings; and,

• Restricted assets include property and improvement where the use or transfer of title outside of the Group is legally restricted.

Initial recognition and subsequent measurement

54





Item Policy

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

Revaluation

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

Depreciation

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

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

Asset class Estimated useful life (years)

Revaluation method

Infrastructure Land Indefinite Cost less accumulated impairment losses

Roads 10-120 Depreciated replacement cost

Water and wastewater

3-200 Depreciated replacement cost

Machinery 3-200 Depreciated replacement cost

Stormwater 10-200 Depreciated replacement cost

Operational Land and buildings Land – Indefinite

Buildings – 1-101Market value based on recent equivalent sales information.Depreciated replacement cost is used where no market exists for operational buildings with allowance for age and condition of building, and configuration

Marina structures 40-100 Depreciated replacement cost and cash flow method

Works of art Indefinite Fair value

Rolling stock 2-35 Depreciated replacement cost

Wharves 2-100 Depreciated replacement cost

Heritage assets various Deemed cost less accumulated impairment losses

Other operational 1-100 Cost less accumulated depreciation and impairment losses

Restricted Parks and reserves Indefinite Fair value

Improvements 3-100 Cost less accumulated depreciation and impairment losses

Buildings 5-90 Depreciated replacement cost

Disposals

55




Item Policy

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

Service concession assets

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

Intangible assets

Initial recognition and subsequent measurement

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

Amortisation

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

Asset class Estimated useful life (years)

Subsequent measurement

Computer software 1-10 Cost less accumulated amortisation and impairment

Intellectual property 4-35 Cost less accumulated amortisation and impairment

Other intangible assets 1-63 Cost less accumulated amortisation and impairment

Disposals

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

Investment property

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

Asset impairment

Impairment of property, plant and equipment and intangible assets

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

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

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

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

56





Item Policy

replacement cost.

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

Impairment of financial assets

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

Employee entitlements

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

Payables and accruals

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

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

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

Ratepayer equity

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

Other policies

Foreign currency transactions

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

57




Note 2: Significant forecasting assumptionsThe significant forecasting assumptions are based on the assumptions published in the Long-term Plan 2015-2025 and only assumptions that have been adjusted for this Annual Plan are listed below:

Assumption data for AP 2016/2017 and source Risks and consequences

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

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

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

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

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

Level of uncertainty - Low

Risk - Growth differs significantly from that forecasted.

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

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

Inflation

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

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

Staff costs 0.7% Other 0.8%

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

Level of uncertainty - Moderate

Risk - actual inflation is different from forecast inflation

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

Interest rates

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

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

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

Level of uncertainty - Low

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

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

Asset sales

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

Level of uncertainty - Moderate

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

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

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Note 3: Reconciliation between prospective statement of comprehensive revenue and expenditure and prospective funding impact statement $000 Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual Plan

2016/17

Variance2016/17

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

226,448 377,923 330,000 (47,923)

Items recognised as income in Prospective statement of comprehensive revenue and expenditure and as capital expenditure funding sources in Prospective funding impact statement: Capital subsidies (172,279) (246,291) (240,362) 5,929Development contributions (164,834) (198,800) (163,318) 35,482

Non-cash items recognised in Prospective statement of comprehensive revenue and expenditure and not included in Prospective funding impact statement: Depreciation 823,205 871,836 885,370 13,534Depreciation of make good provision added back in Prospective funding impact statement

0 0 (2,213) (2,213)

Discounting of provisions 12,195 10,493 12,849 2,357Recognition of revenue from vested assets (169,930) (186,533) (195,852) (9,319)Amortisation of prepaid leases (564) (729) (729) 0

Other reconciling items: Share of equity accounted surplus from associates not distributed by way of dividends to Auckland Council

(4,492) (4,518) (5,122) (604)

Prepaid lease revenue recognised in the Prospective funding impact statement

4,800 5,200 6,210 1,010

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

16,310 16,533 17,599 1,066

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

570,859 645,114 644,432 (681)

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Note 4: Prospective prudential financial ratios Auckland Council group consolidated

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

Borrowing $000 Financial year ending 30 June

Notes Long-term Plan 2015/16

Long-term Plan 2016/17

Annual Plan 2016/17

Variance2016/17

Auckland Council Group borrowing 8,046,305 8,850,453 8,765,490 (84,963)

Less Watercare Services Limited 1 (1,731,442) (1,939,379) (1,669,495) 269,884

Other adjustments: Liquid assets (Diversified Assets Portfolio) 2 (365,956) (365,956) (265,760) 100,196 Electric Motor Units (trains) borrowing (NZTA share) 3 (278,262) (278,262) (294,919) (16,657)Cash and cash equivalents (240,000) (240,000) (329,518) (89,518)

Net borrowing 5,430,645 6,026,856 6,205,798 178,942 Net borrowing to total revenue limit (less than 275%) 7,495,609 8,145,561 8,067,307 (78,254)

Revenue $000 Financial year ending 30 June



Annual Plan 2016/17

Variance2016/17

Total rates per Prospective statement of comprehensive revenue and expenditure

1,571,188 1,646,308 1,636,654 (9,654)

Add back internal rates elimination 44,949 46,396 44,576 (1,820)Gross rates 1,616,137 1,692,704 1,681,230 (11,474)

Total revenue per Prospective statement of comprehensive revenue and expenditure

3,657,679 4,050,446 3,968,914 (81,532)

Adjustments: Less back vested assets (169,930) (186,533) (195,852) (9,319)Add back internal rates elimination 44,949 46,396 44,576 (1,820)Add back dividend elimination reflected in share of associate's surplus

38,950 41,420 49,987 8,567

Less development contributions to fund capital expenditure 4 (132,115) (161,271) (123,437) 37,834 Less subsidies and grants to fund capital expenditure (172,279) (246,291) (240,362) 5,929 Gross Group Operating Revenue 3,267,254 3,544,167 3,503,826 (40,341)

Less Watercare Services Limited 1 (519,220) (561,423) (550,510) 10,913

Other adjustments: Electric Motor Units (trains) Revenue (NZTA payments) 3 (22,358) (20,722) (19,750) 972

Adjusted revenue for ratio calculation 2,725,676 2,962,022 2,933,566 (28,456)

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Interest $000 Financial year ending 30 June



Annual Plan 2016/17

Variance2016/17

Auckland Council Group interest expense 428,427 475,126 452,550 (22,576)Auckland Council Group interest income (5,383) (5,629) (5,394) 235

Less Watercare Services Limited 1 (96,708) (107,232) (91,781) 15,451

Other adjustments: Electric Motor Units (trains) Interest (NZTA funded) 3 (19,417) (17,720) (16,781) 939

Net interest expense 306,919 344,545 338,594 (5,951)Net interest to total revenue limit (less than 15%) 408,851 444,303 440,035 (4,268)Net interest to total rates limit (less than 25%) 404,034 423,176 420,308 (2,869)

Ratios $000 Financial year ending 30 June



Annual Plan 2016/17

Variance2016/17

Net debt as a percentage of total revenue 199.2% 203.5% 211.5% 8.1%Net interest as a percentage of total revenue 11.3% 11.6% 11.5% -0.1%Net interest as a percentage of annual rates income (debt secured under debenture)

19.0% 20.4% 20.1% -0.2%

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

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

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

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

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Note 5: Reserve funds Auckland Council Group The Local Government Act 2002 requires the annual plan to identify each reserve set aside by the council, the purpose of each fund, the activities to which each fund relates and the funding flows for the period of the plan.

Reserve Purpose Activities

Cash flow hedge reserve Gains recognised as balance date revaluation of hedged funds

Available-for-sale investment revaluation reserve

Gains from revaluation of the Diversified Financial Assets portfolio

Share of associates' reserves Recognition in group accounts of associated' reserves

Asset revaluation reserve Accumulated gains from asset revaluation

Restricted equity reserves

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

Parking and enforcement

Trust and 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

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

Solid waste and environmental services

Harbourview Orangihina Park targeted rate reserve

Targeted rate collected for development of Harbourview Orangihina Park.

Regional parks, sports and recreation

Targeted Rates Open Spaces/Volcanic Cones

Legacy targeted rates. No longer levied. Regional parks, sports and recreation

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

Property development

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The funding flows for these reserves are:

$000 As at

Annual Report

30 June 2015

Deposits Withdrawals Budget

30 June 2016

Deposits Withdrawals Annual Plan

30 June 2017Cash flow hedge reserve 4,000 4,000 4,000

Available-for-sale investment revaluation reserve

10,000 10,000 10,000

Share of associates' reserves 280,000 280,000 280,000

Asset revaluation reserve 4,488,000 496,758 4,984,758 926,790 5,911,548

Restricted equity reserves

Statutory funds 9,491 1,114 (470) 10,135 189 (3,211) 7,113

Trust and bequests 2,648 1,650 (27) 4,271 107 (24) 4,354

Other restricted equity 12,624 141 (839) 11,926 124 (1,789) 10,261

Total restricted equity 24,763 2,905 (1,336) 26,332 420 (5,024) 21,728

Targeted rates reserves

City Centre targeted rate reserve

20,304 21,959 (19,929) 22,334 22,421 (20,269) 24,486

Glorit Flood Gate Restoration targeted rate reserve

(133) 38 (8) (103) 38 (8) (73)

Riverhaven Drive targeted rate reserve

(897) 90 (53) (860) 108 (53) (805)

Jackson Crescent wastewater targeted rate reserve

(4) 1 0 (3) 1 0 (2)

Point Wells wastewater targeted rate reserve

(118) 15 (4) (107) 15 (4) (96)

Targeted Rate - Refuse 0 0 0 0 0 0 0

Harbourview Orangihina Park targeted rate reserve

1,366 19 0 1,385 17 (692) 710

Targeted Rates Open Spaces/Volcanic Cones

2,500 0 (563) 1,937 0 (563) 1,374

Araparera 2,672 73 0 2,745 0 (1,373) 1,372

Total targeted rates 25,690 22,195 (20,557) 27,328 22,600 (22,962) 26,966

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Note 6: Auckland Council (parent) financial statements


Auckland Council parent

$000 Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual Plan

2016/17

Variance2016/17

Notes

Revenue

Rates 1,584,210 1,659,530 1,648,791 (10,739) 1

Fees and user charges 230,126 240,807 241,855 1,048

Grants and subsidies 28,156 43,911 36,795 (7,116)

Development and financial contributions 164,834 198,800 163,318 (35,482) 2

Vested assets 59,592 74,352 74,352 0

Other revenue 166,410 167,888 181,892 14,004 3

Finance revenue 102,531 116,914 94,534 (22,380) 3,4

Total revenue 2,335,859 2,502,202 2,441,537 (60,665)

Expenditure

Employee benefits 481,101 484,072 480,892 (3,180)

Depreciation and amortisation 233,805 252,898 255,760 2,862

Grants, contributions and sponsorship 970,747 1,029,133 1,057,015 27,882 5

Other operating expenses 479,404 485,368 480,172 (5,196)

Finance costs 375,900 416,511 415,170 (1,341) 6

Total expenditure 2,540,957 2,667,982 2,689,009 21,027

Operating deficit (205,098) (165,780) (247,472) (81,692)

Share of surplus in associates and joint ventures 0 0 2,383 2,383

Operating deficit before income tax (205,098) (165,780) (245,089) (79,309)

Income tax expense 0 0 0 0

Deficit after income tax (205,098) (165,780) (245,089) (79,309)

Deficit after income tax is attributable to:

Ratepayers of Auckland Council (205,098) (165,780) (245,089) (79,309)

Other comprehensive revenue

Net gain on revaluation of property, plant and equipment 102 584,794 111 (584,683) 7

Total other comprehensive revenue 102 584,794 111 (584,683)

Total comprehensive revenue/ (expenditure) (204,996) 419,014 (244,978) (663,992)

Total comprehensive revenue/ (expenditure) is attributable to:

Ratepayers of Auckland Council (204,996) 419,014 (244,978) (663,992)

64





Notes to variances in the previous table: 1. The lower rates revenue reflects the movement from a 3.2 per cent average general rates increase to existing ratepayers to 2.4 per cent.

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

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

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

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

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

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

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Prospective statement of changes in equity



Long-term Plan

2015/16

Long-term Plan

2016/17

Annual Plan

2016/17

Variance2016/17

Notes

Contributed equity

Opening balance 26,569,092 26,569,092 26,569,092 0



Total comprehensive revenue 0 0 0 0


Balance as at 30 June 26,569,092 26,569,092 26,569,092 0

Accumulated funds

Opening balance (29,530) (235,015) (236,056) (1,041)

Deficit after income tax (205,098) (165,780) (245,089) (79,309) 1


Total comprehensive expenditure (205,098) (165,780) (245,089) (79,309)

Transfer to/ (from) reserves (387) 4,672 4,964 292

Balance as at 30 June (235,015) (396,123) (476,181) (80,058)

Reserves

Opening balance 1,384,630 1,385,119 2,094,208 709,089 2


Other comprehensive revenue 102 584,794 111 (584,683) 2

Total comprehensive revenue 102 584,794 111 (584,683)

Transfer to/ (from) reserves 387 (4,672) (4,964) (292)

Balance as at 30 June 1,385,119 1,965,241 2,089,355 124,114

Total equity 3

Opening balance 27,924,192 27,719,196 28,427,244 708,048

Deficit after income tax (205,098) (165,780) (245,089) (79,309)

Other comprehensive revenue 102 584,794 111 (584,683)

Total comprehensive revenue/ (expenditure) (204,996) 419,014 (244,978) (663,992)


Balance as at 30 June 27,719,196 28,138,210 28,182,266 44,056

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

comprehensive revenue and expenditure.

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

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

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Prospective statement of financial position Auckland Council parent $000 Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual Plan

2016/17

Variance2016/17

Notes

ASSETS Current assets Cash and cash equivalents 225,000 225,000 282,441 57,441 1Receivables and prepayments 140,622 150,190 212,845 62,655 1Other financial assets 500,556 500,556 287,884 (212,672) 1,2Derivative financial instruments 39,291 39,291 811 (38,480) 1Inventories 4,552 4,552 4,609 57Non-current assets held for sale 65,013 52,651 52,651 0 Total current assets 975,034 972,240 841,241 (130,999)

Non-current assets Receivables and prepayments 84,931 90,710 15,651 (75,059) 1Other financial assets 1,864,265 2,239,967 1,912,122 (327,845) 1,3Derivative financial instruments 98,126 98,126 198,018 99,892 1Property, plant and equipment 12,076,564 12,903,288 13,059,276 155,988 1Intangible assets 247,502 246,463 282,448 35,985 1Biological assets 1,764 1,764 1,704 (60)Investment property 94,301 94,301 102,105 7,804Investments in associates and joint ventures 4,564 4,564 17,672 13,108 1,3Investments in subsidiaries 20,621,738 20,621,738 21,178,513 556,775Deferred tax asset 0 0 0 0 Total non-current assets 35,093,755 36,300,921 36,767,509 466,588

TOTAL ASSETS 36,068,789 37,273,161 37,608,750 335,589

LIABILITIES Current liabilities Employee entitlements 49,061 49,364 50,204 840Payables and accruals 514,796 515,798 678,975 163,177 1Borrowings 1,274,699 1,409,017 1,408,329 (688) 2Derivative financial instruments 40,217 40,217 1,198 (39,019) 1Tax payable 0 0 0 0Provisions 59,506 47,410 55,389 7,979Other current liabilities 20,716 35,818 0 (35,818) 1Total current liabilities 1,958,995 2,097,624 2,194,095 96,471

Non-current liabilities Employee entitlements 1,928 1,940 1,780 (160)Payables and accruals 56,881 56,985 50,261 (6,724)Borrowings 5,900,598 6,578,953 6,616,980 38,027 2,4Derivative financial instruments 173,214 173,214 326,840 153,626 1Provisions 257,977 226,235 236,528 10,293 1Total non-current liabilities 6,390,598 7,037,327 7,232,389 195,062

TOTAL LIABILITIES 8,349,593 9,134,951 9,426,484 291,533 0

NET ASSETS 27,719,196 28,138,210 28,182,266 44,056

EQUITY Contributed equity 26,569,092 26,569,092 26,569,092 0Accumulated funds (235,015) (396,123) (476,181) (80,058)Reserves 1,385,119 1,965,241 2,089,355 124,114 Total ratepayers equity 27,719,196 28,138,210 28,182,266 44,056Minority interests 0 0 0 0TOTAL EQUITY 27,719,196 28,138,210 28,182,266 44,056

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Notes to variances in the previous table: 1. Variances are due to the updating of opening balances to reflect balances in the audited 2014/2015 annual accounts.

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

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

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

Prospective statement of cash flow



Long-term Plan

2015/16

Long-term Plan

2016/17

Annual Plan

2016/17

Variance2016/17

Notes

Cash flows from operating activities 1Receipts from rates revenue 1,567,990 1,648,161 1,639,226 (8,935)Receipts from customers and other services 497,681 556,079 489,106 (66,973)Interest received 102,531 116,914 94,534 (22,380)Dividend received 66,364 70,867 92,569 21,702Payments to suppliers and employees (1,964,023) (2,036,382) (2,064,722) (28,340)Interest paid (363,705) (406,018) (404,533) 1,485 Net cash from operating activities (93,162) (50,379) (153,820) (103,441)

Cash flows from investing activities Proceeds from sale of other financial assets 20,125 20,483 100,024 79,541 2Acquisition of other financial assets (4,512) (5,414) (5,414) 0Advances of loans to related parties (213,231) (361,288) (262,126) 99,162 3Sale of property, plant and equipment, investment property and intangible assets

68,875 65,013 85,300 20,287 4

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

(553,978) (472,088) (591,862) (119,774) 5

Equity investment in subsidiaries and associates 0 0 0 0Advances to external parties (9,000) (9,000) (9,000) 0 Net cash from investing activities (691,721) (762,294) (683,078) 79,216

Cash flows from financing activities Proceeds from borrowings 1,671,242 2,087,372 2,095,897 8,525Repayment of borrowings (886,359) (1,274,699) (1,258,999) 15,700 Net cash from financing activities 784,883 812,673 836,898 24,225

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

0 0 0 0

Cash and cash equivalents and bank overdraft at beginning of the year 225,000 225,000 282,441 57,441 6Cash and cash equivalents and bank overdrafts at end of the year 225,000 225,000 282,441 57,441

Notes to variances in the above table: 1. Variances in cash flows from operating activities reflect the updated projections included in the Prospective statement of comprehensive

revenue and expenditure.

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

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

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

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

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

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Note 7: Depreciation and amortisation by Group of Activities $000 Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual Plan

2016/17

Variance2016/17

Regional governance 120 117 253 136

Local governance 120 178 0 (178)

Regional planning 2,297 2,735 2,921 186

Investment 27,513 28,633 27,512 (1,121)

Property Development 0 0 0 0

Economic Growth and Visitor Economy 707 802 1,198 396

Waterfront development 10,678 11,553 11,182 (371)

Regulation 2,878 3,570 2,502 (1,068)

Solid Waste and Environmental Services 2,839 3,894 4,096 202

Stormwater management 55,433 54,716 52,770 (1,946)

Water supply 93,872 98,471 97,428 (1,043)

Wastewater treatment 123,251 129,559 129,424 (135)

Public transport and travel demand management 67,088 73,555 84,424 10,869

Roads and footpaths 238,079 247,403 245,092 (2,311)

Parking and enforcement 8,296 8,362 8,462 100

Local planning 393 1,247 0 (1,247)

Regional community services 15,302 16,679 19,540 2,861

Local community services 1,605 2,760 1,256 (1,504)

Regional facilities 19,917 20,600 24,888 4,288

Regional Parks, Sport and Recreation 55,916 58,775 67,428 8,653

Local environmental management 14 24 0 (24)

Local Parks, Sport and Recreation 6,244 11,722 756 (10,966)

Organisational support 90,643 96,481 104,238 5,546

Total depreciation and amortisation per Prospective statement of comprehensive revenue and expenditure 823,205 871,836 885,370 11,323

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Part 3: Our finances 3.3 Prospective funding impact statement 3.3.1 Prospective consolidated funding impact statement


3.3 Prospective funding impact statement3.3.1 Prospective consolidated funding impact statement Auckland Council group consolidated


Long-term Plan2015/16


Annual plan2016/17

Sources of operating funding: General rates, UAGCs, rates penalties 1,393,889 1,461,018 1,453,848Targeted rates 177,299 185,291 182,806Subsidies and grants for operating purposes 255,056 266,915 259,607Fees and charges 1,143,073 1,303,193 1,227,958Interest and dividends from investments 47,978 50,731 5,394Local authorities fuel tax, fines, infringement fees and other receipts 176,528 197,563 295,234

Total operating funding 3,193,823 3,464,711 3,424,847

Applications of operating funding: Payment to staff and suppliers 2,182,589 2,331,345 2,318,454Finance costs 428,417 475,129 452,550Other operating funding applications 11,958 13,123 9,411Total applications of operating funding 2,622,964 2,819,597 2,780,415

Surplus (deficit) of operating funding 570,859 645,114 644,432

Sources of capital funding: Subsidies and grants for capital expenditure 172,279 246,292 240,363Development and financial contributions 164,834 198,799 163,319Increase (decrease) in debt 881,547 804,144 833,957Gross proceeds from sale of assets 69,172 67,120 87,407Lump sum contributions 0 0 0Other dedicated capital funding 0 0 0Total sources of capital funding 1,287,832 1,316,355 1,325,046

Application of capital funding: Capital expenditure: - to meet additional demand 616,023 569,282 704,591- to improve the level of service 617,331 669,229 667,275- to replace existing assets 568,386 672,765 573,467Increase (decrease) in reserves 53,854 54,331 62,431Increase (decrease) in investments 3,097 (4,138) (38,286)Total applications of capital funding 1,858,691 1,961,469 1,969,478

Surplus (deficit) of capital funding (570,859) (645,114) (644,432)

Funding balance 0 0 0

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Part 3: Our finances 3.3 Prospective funding impact statement

3.3.2 Rating mechanism


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

Background After considering feedback from consultation on how the rates requirement for both general rates and the Interim Transport Levy (ITL) should be shared amongst residential, farm/lifestyle and business ratepayers the council has decided to maintain the position on these issues set out in the Long-term Plan 2015-2025. The council has set the general rates increase for 2016/2017 at 2.4 per cent. This means all residential and farm/lifestyle ratepayers will have an overall combined (general rates and ITL) increase of approximately 2.5 per cent and all business ratepayers approximately 1.9 per cent1.

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

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

Capital value $484,194,877,138

Land value $289,058,616,918

Rating units 536,018

Separately used or inhabited parts of a property 595,795

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

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

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

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

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

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

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Part 3: Our finances 3.3 Prospective funding impact statement 3.3.2 Rating mechanism


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

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

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

a 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).

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Rates differential definitionsDifferential group

Definition

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

Urban residential

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

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

Rural residential

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

Farm and lifestyle

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

No road access Includes all land (irrespective of use) for which direct or indirect access by road is unavailable or provided for, and all land situated on the islands of Ihumoana, Kaikoura, Karamuramu, Kauwahia, Kawau, Little Barrier, Mokohinau, Motahaku, Motuketekete, Motutapu, Motuihe, Pakatoa, Pakihi, Ponui, Rabbit, Rakitu, Rangiahua, Rotoroa and The Noises

Uninhabitable islands

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

Notes to table:

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

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

The long-term differential strategy

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

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

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

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Value-based general rate differentials for 2016/2017

Property category Effective relative differential ratio for

general rate for 2016/2017

Rate in the dollar for 2016/2017 (including

GST) ($)

Share of value-based general rate

(excluding GST) ($)

Share of value-based general

rate (%)

Urban business 2.74 0.00693795 414,743,025 32.48Urban residential 1.00 0.00253439 715,463,801 56.02Rural business 2.46 0.00624415 48,268,288 3.78Rural residential 0.90 0.00228095 37,289,294 2.92Farm and lifestyle 0.80 0.00202751 61,066,115 4.78No road access 0.25 0.00063360 270,910 0.02Uninhabitable island(1) 0 0 0 0

Note to table:

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

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

Land value general rates

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

Urban business 0.01493053

Rural business 0.01343748

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

Interim Transport Levy

Background

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

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

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

How the rate will be assessed

A differentiated targeted rate will be applied as a fixed amount per SUIP on all rateable land except land classified as uninhabited Islands as defined for rating purposes. A targeted rate of $182.85 (including GST) per SUIP will be applied to all rateable land classified as business (Urban business and Rural business) as defined for rating purposes, and $113.85 (including GST) per SUIP to all rateable land not classified as business (Urban residential, Rural residential, Farm and lifestyle, and No road access) as defined for rating purposes. The fixed

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amounts will remain at this level for three years. This is estimated to produce around $61.8 million (excluding GST) for 2016/2017, $9.1 million from business and $52.7 million from non-business.

Waste Management targeted rate

Background

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

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

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

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

Activities to be funded

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


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

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

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

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

Waste management rates

Differential group Waste management targeted rate

Amount of targeted rate for

2016/2017(including GST) ($)

Charging basis

Share of targeted rate (excluding GST) ($)

Rating units in the former Auckland City

Waste management – full service 232.72 Per available service

32,596,748

Waste management – where refuse opt out applies 99.81 Per available

service 117,774

Waste management – where recycling opt out applies 160.36 Per available

service 6,275

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Differential group Waste management targeted rate

Amount of targeted rate for

2016/2017(including GST) ($)

Charging basis

Share of targeted rate (excluding GST) ($)

Waste management – where both refuse and recycling opt out applies

27.45Per available

service 580,065

Waste management – additional recycling charge 72.36 Per service

provided 52,475

Rating units in the former Franklin District(1)

Waste management – recycling service 72.36 Per SUIP 792,163

Rural rating units in the former Franklin District(2)

Waste management – recycling service (part-year) 48.24 Per SUIP 313,912

Rating units in the former Franklin District

Waste management – refuse service 32.33 Per SUIP 564,252

Rating units in the former Manukau City

Waste management 232.72 Per SUIP 21,744,859

Rating units in the former North Shore City and Waitākere City


Rating units in the former Papakura District


Rating units in the former Rodney District


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

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

collection areas.

City centre targeted rate

Background

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


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

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


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

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

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

Business Improvement District targeted rates

Background

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


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

How liability will be assessed

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

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

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

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

BID area Budget for 2016/2017

(excluding GST) ($)

Amount to be funded by fixed

charge for 2016/2017

(excluding GST) ($)

Fixed rate per rating unit for

2016/2017 (including GST)

($)

Amount to be funded by

property value rate based on the

capital value of the rating unit for

2016/2017

Rate in the dollar for 2016/2017 to be

multiplied by the capital value of the

rating unit

(excluding GST) ($)

(including GST) ($)

Avondale 120,000 0 0.00 120,000 0.00145348

Birkenhead 187,000 0 0.00 187,000 0.00124071

Blockhouse Bay 56,530 0 0.00 56,530 0.00189800

Browns Bay 150,000 0 0.00 150,000 0.00065062

Devonport 120,000 18,043 250.00 101,957 0.00083762

Dominion Road 180,000 0 0.00 180,000 0.00083696

Ellerslie 144,000 0 0.00 144,000 0.00265433

Glen Eden 83,678 0 0.00 83,678 0.00129014

Glen Innes 166,250 0 0.00 166,250 0.00163569

Greater East Tāmaki

500,000 329,475 195.00 170,525 0.00004342

Heart of the City 4,211,624 0 0.00 4,211,624 0.00058100

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(excluding GST) ($)



(excluding GST) ($)



($)




2016/2017



rating unit

(excluding GST) ($)

(including GST) ($)

Howick 152,174 0 0.00 152,174 0.00115113

Hunters Corner 126,407 0 0.00 126,407 0.00097756

Karangahape Road

381,350 0 0.00 381,350 0.00065545

Kingsland 210,000 0 0.00 210,000 0.00059865

Mairangi Bay 53,500 5,000 250.00 48,500 0.00133539

Māngere Bridge 28,140 0 0.00 28,140 0.00188364

Māngere East Village

6,100 0 0.00 6,100 0.00039300

Māngere Town 296,839 0 0.00 296,839 0.00516632

Manukau Central 217,957 0 0.00 217,957 0.00053787

Manurewa 138,997 0 0.00 138,997 0.00120568

Milford 132,000 0 0.00 132,000 0.00089400

Mt Eden Village 86,035 0 0.00 86,035 0.00080328

New Lynn 159,720 0 0.00 159,720 0.00067081

Newmarket 1,569,139 0 0.00 1,569,139 0.00089729

North Harbour 626,413 318,771 150.00 307,642 0.00011580

North West District

180,000 89,782 250.00 90,218 0.00033089

Northcote 120,000 0 0.00 120,000 0.00348423

Old Papatoetoe 113,090 0 0.00 113,090 0.00191715

Onehunga 405,077 0 0.00 405,077 0.00166822

Ōrewa 210,650 0 0.00 210,650 0.00110834

Ōtāhuhu 598,500 0 0.00 598,500 0.00101654

Ōtara 76,295 0 0.00 76,295 0.00159309

Panmure 422,759 0 0.00 422,759 0.00212543

Papakura 173,750 0 0.00 173,750 0.00087408

Parnell 700,000 0 0.00 700,000 0.00069001

Ponsonby 389,741 0 0.00 389,741 0.00073593

Pukekohe 402,150 0 0.00 402,150 0.00061541

Remuera 242,564 0 0.00 242,564 0.00147577

Rosebank 395,000 0 0.00 395,000 0.00047608

South Harbour 79,008 0 0.00 79,008 0.00059146

St Heliers 138,484 0 0.00 138,484 0.00143481

Takapuna 366,856 0 0.00 366,856 0.00048645

Te Atatu 82,000 0 0.00 82,000 0.00181102

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(excluding GST) ($)



(excluding GST) ($)



($)




2016/2017



rating unit

(excluding GST) ($)

(including GST) ($)

Torbay 13,915 0 0.00 13,915 0.00101267

Uptown 180,000 0 0.00 180,000 0.00020349

Waiuku 110,000 0 0.00 110,000 0.00113461

Wiri 219,615 0 0.00 219,615 0.00048007

Total 15,723,307 761,071 14,962,236

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

BID Fixed rate per rating unit for 2016/2017

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

($)Greater East Tāmaki 195.00 0.00007980Onehunga 0.00 0.00387688Pukekohe 0.00 0.00132127Rosebank 0.00 0.00107801

Māngere-Ōtāhuhu and Ōtara-Papatoetoe swimming pool targeted rates

Background

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


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

How liability will be assessed

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


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

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

Local board area

Local activity targeted ratesFixed rate for each separately used or

inhabited part of a rating unit for 2016/2017 (including GST) ($)

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

Māngere-Ōtāhuhu 30.86 494,162

Ōtara-Papatoetoe 28.97 531,180

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

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

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

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

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

Glorit Flood Gate Restoration targeted rate

Valuation number Legal description (abbreviated)

Area of benefit in hectares Amount of targeted rate for 2016/2017(including GST) ($)

00910-00102 Sec 27 SO 59120 245 40,689.21

00910-00502 Lot 5 DP 127940 2 332.15

00910-00400 Lot 3 DP 485231 17.5 2,906.37

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

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

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

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

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

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

Retro-fit your home targeted rate

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

1 0.14824703

2 0.16189566

3 0.17954399

4 0.20319261

5 0.23644248

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

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


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

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

The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each

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

Kumeu Huapai Riverhead wastewater targeted rate

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

1 0.12136053

2 0.12648574

4 0.13948996

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

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

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


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

$8,000 674.60

$8,500 716.76

$9,000 758.92

$9,500 801.08

$10,000 843.25

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

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

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

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Rates payable by instalment Rates will be payable by four equal instalments due on:

Instalment 1: 31 August 2016

Instalment 2: 28 November 2016

Instalment 3: 28 February 2017

Instalment 4: 29 May 2017.

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

Penalties on rates not paid by the due date The council will apply a penalty of 10 per cent of the amount of rates assessed under each instalment in the 2016/2017 financial year that are unpaid after the due date of each instalment. Any penalty will be applied to unpaid rates on the day following the due date of the instalment.

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

Objectives

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

Conditions and criteria

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

Delegation of decision-making

Decisions about applying the discount will be made by staff.

Review process

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

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

Discount in 2016/2017

The discount is 0.91 per cent for 2016/2017.

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

Business improvement district targeted rates

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

Kumeu Huapai Riverhead wastewater targeted rate

Riverhaven Drive targeted rate

Glorit Flood Gate Restoration 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 (including urban Franklin business)

500,000 394 3,469 183 4,046

1,500,000 394 10,407 183 10,984

3,000,000 394 20,814 183 21,391

10,000,000 394 69,380 183 69,957

Urban - residential 500,000 394 1,267 114 1,775

750,000 394 1,901 114 2,409

1,000,000 394 2,534 114 3,042

1,500,000 394 3,802 114 4,310

Rural - business (including rural Franklin business)

500,000 394 3,122 183 3,699

1,500,000 394 9,366 183 9,943

3,000,000 394 18,732 183 19,309

10,000,000 394 62,442 183 63,019

Rural - residential 500,000 394 1,140 114 1,648

750,000 394 1,711 114 2,219

1,000,000 394 2,281 114 2,789

1,500,000 394 3,421 114 3,929

Farm/lifestyle 500,000 394 1,014 114 1,522

1,500,000 394 3,041 114 3,549

3,000,000 394 6,083 114 6,591

10,000,000 394 20,275 114 20,783

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

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Waste management targeted rate

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

Former council area

Service Total amount of charges (including GST) ($) Number of waste

management charges 1 2 3 5 10

Auckland City

Full service 233 465 698 1,164 2,327

Recycling only 100 200 299 499 998

Refuse only 160 321 481 802 1,604

Basic service 27 55 82 137 275

Additional recycling 72 145 217 362 724

Franklin District Recycling 72 145 217 362 724

Rural recycling (part-year) 48 96 145 241 482

Refuse 32 65 97 162 323

Manukau City 233 465 698 1,164 2,327

North Shore City and Waitākere City

91 183 274 457 915

Papakura District 105 209 314 523 1,047

Rodney District 107 213 320 533 1,065

City centre targeted rate

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

Business rating units located in the city centre areaCapital value Rate (including GST) ($)500,000 947

1,500,000 2,841

3,000,000 5,682

10,000,000 18,941

Residential rating units located in the city centre areaNumber of separately used or inhabited parts Rate (including GST) ($)1 58.54

2 117.08

3 175.62

5 292.70

10 585.40

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Swimming pool targeted rates

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

Residential rating units located in

Total targeted rate amount (including GST) ($) Number of

separately used or inhabited parts

1 2 3 5 10

Māngere-Ōtāhuhu 31 62 93 154 309

Ōtara-Papatoetoe 29 58 87 145 290

Waitākere rural sewerage targeted rate

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

Residential rating units located in

Total targeted rate amount (including GST) ($)Number of septic tanks pumped

out once every 3 years1 2 3 5 10

Waitākere City that have septic tanks pumped out by council 188 377 565 942 1,885

Retro-fit your home targeted rate

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

Outstanding balance at

beginning of 2016/2017

Rate for first year of

repayment (including GST)

($)

Rate for second year of


($)

Rate for third year of


($)

Rate for fourth year of


($)

Rate for fifth year of repayment

(including GST) ($)

1,500 222 243 269 305 355

2,000 296 324 359 406 473

2,500 371 405 449 508 591

3,500 519 567 628 711 828

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3.3.3 Financial reporting and prudence benchmarks


3.3.3 Financial reporting and prudence benchmarks

Annual plan disclosure statement for the year ending 30 June 2017

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

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

Benchmark Limit Planned Met

Rates affordability benchmark

• income $1,484 million $1,479 million Yes

• increases 3.5% 2.4% Yes

Debt affordability benchmark

• net debt as a percentage of total revenue 275% 211.5% Yes

• net interest as a percentage of total revenue 15% 11.5% Yes

• net interest as a percentage of annual rates income 25% 20.1% Yes

Balanced budget benchmark 100% 99% No

Essential services benchmark 100% 167% Yes

Debt servicing benchmark 15% 12% Yes

Notes 1. Rates affordability benchmark For this benchmark:

the group’s planned rates income 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.

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

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Part 3: Our finances 3.3 Prospective funding impact statement 3.3.3 Financial reporting and prudence benchmarks


There are three quantified limits; they are:

net debt as a percentage of total revenue;

net interest as a percentage of total revenue; and

net interest as a percentage of annual rates income.

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

3. Balanced budget benchmark

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

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

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

4. Essential services benchmark

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

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

5. Debt servicing benchmark

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

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

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

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

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

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

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

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


Wahanga 4: Te Whakarāpopototanga o te Mahere Whakahaere 2016/2017 mō te Tūpuna Maunga o Tāmaki Makaurau Authority

Part 4: Summary of the Tūpuna Maunga Operational Plan 2016/2017 For each financial year the Tūpuna Maunga Authority and Auckland Council must agree an operational plan. The operational plan outlines how Council will carry out the day-to-day maintenance of the Tūpuna Maunga (ancestral mountains) under the direction of the Tūpuna Maunga Authority. This is a requirement under section 60 of the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014.

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

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

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

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

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

The Tūpuna Maunga Authority members are:

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

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

Members Ngarimu Blair Ngā Mana Whenua o Tāmaki Makaurau (Ngāti Whātua Rōpū)

Bill Cashmore Auckland Council (Governing Body)

Tipa Compain Ngā Mana Whenua o Tāmaki Makaurau (Marutūāhu Rōpū)

Chris Darby Auckland Council (Governing Body)

Glenda Fryer Auckland Council (Deputy Chair – Albert-Eden Local Board)

Grant Hawke Ngā Mana Whenua o Tāmaki Makaurau (Ngāti Whātua Rōpū)

Dennis Kirkwood Ngā Mana Whenua o Tāmaki Makaurau (Waiohua-Tāmaki Rōpū)

Kit Parkinson Auckland Council (Deputy Chair – Ōrākei Local Board)

Simon Randall Auckland Council (Chair – Maungakiekie-Tāmaki Local Board)

Te Warena Taua MNZM Ngā Mana Whenua o Tāmaki Makaurau (Waiohua-Tāmaki Rōpū)

Andrew Bignell Crown Representative

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


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

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

Hapū of Ngāti Whātua (other than Ngāti Whātua o Kaipara and Ngāti Whātua Ōrākei) whose members are beneficiaries of Te Rūnanga o Ngāti Whātua, including Te Taoū not descended from Tuperiri.

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

Tūpuna Maunga Ownership Administration

Matukutūruru / Wiri Mountain Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Tūpuna Maunga Authority

Maungakiekie / One Tree Hill1 Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Tūpuna Maunga Authority

Maungarei / Mount Wellington Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Tūpuna Maunga Authority

Maungauika / North Head2 Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Crown

Maungawhau / Mount Eden Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Tūpuna Maunga Authority

Ōhinerau / Mount Hobson Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Tūpuna Maunga Authority

Ōhuiarangi / Pigeon Mountain Taonga Trust for Ngā Mana Whenua o Tāmaki Tūpuna Maunga Authority

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

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

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Tūpuna Maunga Ownership Administration

Makaurau

Ōtāhuhu / Mount Richmond Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Tūpuna Maunga Authority

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

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Tūpuna Maunga Authority

Puketāpapa / Pukewīwī / Mount Roskill


Rarotonga / Mount Smart3 Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Auckland Council

Takarunga / Mount Victoria Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Tūpuna Maunga Authority

Te Kōpuke / Tītīkōpuke / Mount St John


Te Ara Pueru / Te Pane-o-Mataaho / Māngere Mountain4 Crown Tūpuna Maunga Authority

Te Tātua a Riukiuta / Big King Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau Tūpuna Maunga Authority

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

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

91


Par

t 4: S

umm

ary

of th

e D

raft

Tūpu

na M

aung

a O

pera

tiona

l Pla

n 20

16/2

017

Auc

klan

d C

ounc

il An

nual

Bud

get 2

016/

2017

, Vol

ume

1 of

2

Tūpu

na M

aung

a P

rior

itis

ed P

roje

cts

2016

/17

Pro

ject

s to

be

com

plet

ed o

n th

e Tū

puna

Mau

nga

over

the

com

ing

finan

cial

yea

r are

det

aile

d w

ithin

the

Tūpu

na M

aung

a O

pera

tiona

l Pla

n 20

16/1

7. P

roje

cts

are

orga

nise

d th

roug

h th

e Tū

puna

Mau

nga

Val

ues,

whi

ch p

rovi

de a

stra

tegi

c fra

mew

ork

to g

uide

the

Tūpu

na M

aung

a Au

thor

ity in

mak

ing

any

deci

sion

s ab

out

the

Tūpu

na M

aung

a. T

hey

are

also

prio

ritis

ed a

ccor

ding

to th

e ur

genc

y an

d na

ture

of t

he w

ork,

and

ava

ilabi

lity

of fu

ndin

g.

Tabl

e 1:

Tū p

una

Mau

nga

prio

ritis

ed p

roje

cts

2016

/17

Not

e: T

his

tabl

e ou

tline

s a

broa

d w

ork

Pro

gram

me

for t

he Tūp

una

Mau

nga

Aut

horit

y. I

t inc

lude

s re

fere

nce

to p

olic

y, p

lann

ing

and

stra

tegy

wor

kstre

ams,

as

wel

l cap

ex a

nd o

pex

proj

ects

.

Tūpu

na M

aung

a Va

lue

Prio

ritis

ed P

roje

cts

Shor

t Ter

m1

– 3

year

s M

ediu

m T

erm

4 –

7 ye

ars

Long

Ter

m

8 –

10 y

ears

W

airu

atan

ga /

Spiri

tual

‐ re

stor

e an

d re

cogn

ise

the

rela

tions

hip

betw

een

the

Mau

nga

and

its p

eopl

e ‐

tread

gen

tly

‐ re

cogn

ise

the

tihi i

s sa

cred

‐

treat

the

Mau

nga

as ta

onga

tuku

iho

– tre

asur

es

hand

ed d

own

the

gene

ratio

ns

Inte

grat

ed M

anag

emen

t Pla

n w

hich

will

set

out

how

we

valu

e, m

anag

e, p

rote

ct a

nd re

stor

e th

e Tū

puna

Mau

nga

X

Dev

elop

men

t of i

ndiv

idua

l Tūp

una

Mau

nga

Man

agem

ent

Plan

s X

X

Man

a A

otūr

oa /

Cul

tura

l and

Her

itage

‐

enab

le M

ana

Whe

nua

role

as

kaiti

aki o

ver t

he

Tūpu

na M

aung

a ‐

enco

urag

e cu

ltura

lly s

afe

acce

ss

‐ re

stor

ing

cust

omar

y pr

actic

es a

nd a

ssoc

iate

d kn

owle

dge

‐ re

cogn

ise

Eur

opea

n an

d ot

her h

isto

ries,

and

in

tera

ctio

n w

ith th

e M

aung

a

Rep

lant

ing

on th

e tih

i of M

aung

akie

kie

/ One

Tre

e H

ill an

d m

aint

enan

ce

X

Res

tora

tion

and

prot

ectio

n of

sig

nific

ant s

ites

such

as

pits

, ter

race

s an

d pā

site

s, a

nd e

nsur

ing

vege

tatio

n co

ntro

l and

rest

orat

ion

plan

tings

in th

ese

area

s X

X

X

Inst

alla

tion

of p

ou

X

X

Tako

tora

nga

/ Lan

dsca

pe

‐ pr

otec

t the

inte

grity

of t

he Tūp

una

Mau

nga

‐ en

cour

age

desi

gn th

at re

flect

s Tū

puna

Mau

nga

Val

ues

‐ pr

omot

e a

conn

ecte

d ne

twor

k of

Mau

nga

‐ pr

eser

ve th

e vi

sual

and

phy

sica

l int

egrit

y of

the

Mau

nga

as la

ndm

arks

of T

āmak

i ‐

activ

e re

stor

atio

n an

d en

hanc

emen

t of t

he n

atur

al

Impr

ovin

g ge

nera

l lan

dsca

pe m

aint

enan

ce a

nd p

rote

ctio

n on

the

Tūpu

na M

aung

a (in

clud

es re

-veg

etat

ion,

re

stor

atio

n of

his

toric

site

s an

d m

onito

ring)

X

X

X

Dev

elop

dis

tinct

ent

ryw

ays

that

refle

ct th

e ch

ange

in

owne

rshi

p of

the

Tūpu

na M

aung

a an

d hi

ghlig

ht th

eir

sign

ifica

nce

to M

ana

Whe

nua

(incl

ude

gate

s, p

edes

trian

ac

cess

, par

king

, lan

dsca

ping

, sig

nage

, way

findi

ng)

X

X

92


Par

t 4: S

umm

ary

of th

e Tū

puna

Mau

nga

Ope

ratio

nal P

lan

2016

/201

7

Auc

klan

d C

ounc

il An

nual

Bud

get 2

016/

2017

, Vol

ume

1 of

2

Tūpu

na M

aung

a Va

lue

Prio

ritis

ed P

roje

cts

Shor

t Ter

m1

– 3

year

s M

ediu

m T

erm

4 –

7 ye

ars

Long

Ter

m

8 –

10 y

ears

fe

atur

es o

f the

Mau

nga

‐ en

cour

age

activ

ities

that

are

in k

eepi

ng w

ith th

e na

tura

l and

indi

geno

us la

ndsc

ape

Car

par

king

upg

rade

to e

ncou

rage

wal

king

and

redu

ctio

n in

veh

icle

s on

the

tihi (

sum

mits

) X

X

X

Fenc

ing

/ bol

lard

s; in

stal

latio

n an

d up

grad

e of

veh

icle

ba

rrier

s, re

mov

al o

f red

unda

nt fe

ncin

g, p

lace

men

t of n

ew

fenc

ing,

rebu

ildin

g of

sto

ne w

alls

X

X

X

Dev

elop

men

t of a

traf

fic m

anag

emen

t byl

aw u

nder

the

Land

Tra

nspo

rt Ac

t X

Dev

elop

men

t of T

ūpun

a M

aung

a D

esig

n G

uide

lines

X

Mau

ri Pū

naha

Hau

ropi

/ Ec

olog

y an

d B

iodi

vers

ity

‐ st

reng

then

eco

logi

cal l

inka

ges

betw

een

the

Mau

nga

‐ M

aung

a tū

mau

ri or

a, m

aung

a tu

mak

aura

u or

a / i

f th

e M

aung

a ar

e w

ell,

Auck

land

is w

ell

‐ re

stor

e th

e bi

odiv

ersi

ty o

f the

Tūp

una

Mau

nga

Ani

mal

and

pes

t con

trol

X

X

X

Veg

etat

ion

man

agem

ent,

incl

udin

g re

mov

al o

f har

mfu

l ex

otic

spe

cies

X

X

X

Dev

elop

men

t of a

Tūp

una

Mau

nga

Plan

ting

Prog

ram

me

X

X X

Dev

elop

men

t of a

Tūp

una

Mau

nga

Bios

ecur

ity a

nd P

est

Man

agem

ent P

lan

X

X

Eve

nt c

eleb

ratin

g pe

dest

rian

conn

ectio

n at

Mau

ngaw

hau

/ Mou

nt E

den

X

Dev

elop

men

t of b

roch

ures

and

info

rmat

ion

for t

he

Tūpu

na M

aung

a X

X

Dev

elop

men

t of a

Tūp

una

Mau

nga

Sign

age

and

Com

mun

icat

ion

Stra

tegy

X

Com

plet

e si

gnag

e re

plac

emen

t (al

l sig

ns to

refle

ct Māo

ri na

min

g an

d Tū

puna

Mau

nga

Auth

ority

bra

ndin

g)

X

X

Way

find

ing

/ int

erpr

etat

ion

(trac

k an

d tra

il m

arki

ng,

inte

rpre

tatio

n of

feat

ures

, not

ice

boar

ds, v

isua

l aid

s,

inte

ract

ive

disp

lays

) X

X

Vis

itor i

nfor

mat

ion

hub

/ cen

tres

X

X

X

93


Par

t 4: S

umm

ary

of th

e D

raft

Tūpu

na M

aung

a O

pera

tiona

l Pla

n 20

16/2

017

Auc

klan

d C

ounc

il An

nual

Bud

get 2

016/

2017

, Vol

ume

1 of

2

Tūpu

na M

aung

a Va

lue

Prio

ritis

ed P

roje

cts

Shor

t Ter

m1

– 3

year

s M

ediu

m T

erm

4 –

7 ye

ars

Long

Ter

m

8 –

10 y

ears

D

evel

opm

ent o

f a P

artn

ersh

ips

and

Sta

keho

lder

s st

rate

gy (w

hich

will

cov

er e

duca

tiona

l pro

gram

mes

) X

Dev

elop

men

t of a

Vol

unte

er F

ram

ewor

k X

Dev

elop

men

t of a

Tūp

una

Mau

nga

Mon

itorin

g S

trate

gy

X

Wha

i Raw

a W

haka

uka

/ Eco

nom

ic a

nd C

omm

erci

al‐

focu

s on

com

mer

cial

act

iviti

es th

at c

reat

e va

lue

and

enha

nce

expe

rienc

e ‐

expl

ore

alte

rnat

ive

and

self-

sust

aini

ng fu

ndin

g op

portu

nitie

s ‐

fost

er p

artn

ersh

ips

and

colla

bora

tion

‐ al

ignm

ent w

ith th

e Tū

puna

Mau

nga

Valu

es

Dev

elop

men

t of a

Tūp

una

Mau

nga

Com

mer

cial

Stra

tegy

X

Man

a W

hai a

Rēh

ia /

Rec

reat

iona

l ‐

prom

ote

heal

th a

nd w

ellb

eing

‐

enco

urag

e in

form

al in

clus

ive

recr

eatio

n ac

tiviti

es

‐ ba

lanc

e in

form

al a

nd fo

rmal

recr

eatio

n ‐

recr

eatio

nal a

ctiv

ities

con

sist

ent w

ith ti

kang

a Māo

ri ‐

Mau

nga

are

spec

ial p

lace

s an

d tre

asur

es h

ande

d do

wn

Upg

rade

of e

xist

ing

faci

litie

s an

d de

velo

pmen

t of n

ew

faci

litie

s w

here

app

ropr

iate

(dev

elop

toile

t fac

ilitie

s as

re

quire

d, u

pgra

de /

re-d

esig

n fu

rnitu

re, b

uild

ing

repa

irs,

mai

nten

ance

of h

isto

rical

ass

ets

incl

udin

g as

set c

ondi

tion

rene

wal

); fu

rnitu

re d

esig

n sh

ould

be

spec

ific

to th

e Tū

puna

Mau

nga

X

X

X

Upg

rade

trac

ks to

impr

ove

acce

ss a

nd p

rote

ctio

n of

im

porta

nt s

ites

X

X

X

94




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

2016/17

Net operating expenditure $2,863,020.00

Capital Projects $ 1,915,844.00

Total funding envelope $4,778,864.00

Targeted rate reserve (total 2.5 million) $562,920.00

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

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

95


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


96


Part 5: Appendices How the organisation is structured


Wahanga 5: Ngā Āpitihanga

Part 5: Appendices TE HANGANGA O TE WHARE

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

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

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

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

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

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

97




Mayor and councillors’ contact details

Len Brown, JP. MAYOR Auckland Council Private Bag 92300 Auckland 1142 Ph: (09) 301 0101 [email protected]

Penny Hulse, DEPUTY MAYOR [Waitākere] Auckland Council Private Bag 92300 Auckland 1142 Ph: (021) 273 4663 [email protected] Chair - CCO Governance and Monitoring Committee; Auckland Development Committee

Arthur Anae [Manukau] 560 Great South Road Ōtāhuhu Auckland 1062 Ph: (021) 921 941 [email protected] Chair – Economic Development Committee

Cameron Brewer [Orākei] PO Box 9733 Newmarket Auckland 1149 Ph: (021) 828 016 [email protected]

Bill Cashmore [Franklin] 389 Kawakawa-Orere Rd RD5, Papakura 2585 Ph: (021) 283 3355 [email protected]

Dr Cathy Casey [Albert-Eden-Roskill] 66 Allendale Road Mt Albert Auckland 1025 Ph: (027) 474 4231 [email protected] Chair - Community Development and Safety Committee

Ross Clow [Whau] Private Bag 92300 Auckland 1142 Ph: (021) 808 214 Ph: 09 817 8456 [email protected]

Linda Cooper [Waitākere] JP 41 Renoir Street West Harbour Auckland 0618 Ph: (021) 629 533 [email protected] Chair - Hearings Committee

Chris Darby [North Shore] Auckland Council, Private Bag 92300 Auckland 1142 Ph: (021) 284 2888 [email protected]

Alf Filipaina [Manukau] 32 Miller Road Māngere Bridge Auckland 2022 Ph: (021) 280 0999 [email protected] Chair - Unitary Plan Committee; Arts, Culture and Events Committee

Hon Christine Fletcher, QSO [Albert-Eden-Roskill] 7 Bourne Street Mt Eden Auckland 1024 Ph: (027) 276 0013 [email protected] Chair - CEO Review Committee; Parks, Recreation and Sport Committee

Denise Krum [Maungakiekie-Tāmaki] Auckland Council, Private Bag 92300 Auckland 1142 Ph: (021) 629 648 [email protected]

98




Mike Lee [Waitematā and Gulf] 15A Burrows Avenue Parnell Auckland 1052 Ph: (027) 494 3198 [email protected] Chair - Infrastructure Committee

Calum Penrose [Manurewa-Papakura] Auckland Council Private Bag 92300 Auckland 1142 Ph: (027) 217 0760 [email protected] Chair - Regulatory and Bylaws Committee

Dick Quax [Howick] PO Box 51-752 Pakuranga Auckland 2140 Ph: (021) 286 7766 [email protected] Chair - Tenders and Procurement Committee

Sharon Stewart [Howick] QSM 21 Treeway Sunnyhills Auckland 2010 Ph: (021) 282 1144 or (09) 577 4127 [email protected] Chair - Civil Defence and Emergency Management Committee

Sir John Walker, KNZM, CBE [Manurewa-Papakura] 6 Railway Street Newmarket Auckland 1023 Auckland Ambassador Ph (09) 266 6616 [email protected] Chair - Audit and Risk Committee

Wayne Walker [Albany] Auckland Council Private Bag 92300 Auckland 1142 Ph: (021) 882 861 [email protected] Chair - Environment, Climate Change and Natural Heritage Committee

John Watson [Albany] Auckland Council Private Bag 92300 Auckland 1142 Ph: (021) 287 5999 [email protected]

Penny Webster [Rodney] 61 Fidelis Avenue Snells Beach Warkworth 0920 Ph: (021) 390 317 [email protected] Chair – Finance and Performance Committee

George Wood, CNZM [North Shore] 54 Grenada Avenue Forrest Hill Auckland 0620 Ph: (021) 281 5555 [email protected] Chair - Regional Strategy and Policy Committee

99




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 2016/2017 are included in this annual budget and can be found in Volume 2 of this document.

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

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

Council-controlled organisations Auckland Council provides a range of services and programmes to the Auckland region through their substantive CCOs and a range of other CCOs which participate in, and contribute to, the plans made by the council, as well as managing services such as transport. CCOs fulfil two key roles. They provide commercial or specialist expertise that may not be available within the council organisation, and allow the council to focus on its core responsibilities such as strategy, policy or regulatory functions. For more information on the policies, objectives, activities and performance targets of CCOs, see the relevant activity statement in the Long-term Plan 2015-2025, CCO overview in Part 4 of Volume 2.

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

100




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

Mana Whenua representatives Mataawaka representatives

Mr David Taipari, Chairperson (Ngāti Maru, Ngāti Whanaunga, Ngāti Tamaterā, Ngāti Paoa)

John Tamihere (Ngāti Porou, Whakatōhea, Tainui)

Mr Glenn Wilcox, Deputy Chairperson (Ngāti Whātua)

[vacant]

Ms Precious Clark (Ngāti Whātua, Waikato)

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

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

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

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

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

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

the content of the strategies, policies, plans and bylaws of Council

any matters that the panels consider to be of particular interest or concern to respective communities of Auckland

advise to the Mayor and council’s Governing Body and Local Boards of Council’s processes and mechanisms for engagement with respective communities in Auckland.

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

Demographic advisory panels:

Disability Advisory Panel Rainbow Communities Advisory Panel

Ethnic Peoples Advisory Panel Seniors Advisory Panel

Pacific Peoples Advisory Panel Youth Advisory Panel

Sector panels:

Auckland City Centre Advisory Board

Rural Advisory Panel

Heritage Advisory Panel

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

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

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

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

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

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

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

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Part 5: Appendices How to contact the council


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 www.aucklandcouncil.govt.nz. Information can be found under: Contact us > Customer service centres

Service centre Physical addressAlbany 30 Kell Drive, Albany

Birkenhead Nell Fisher Reserve - Hinemoa Street, Birkenhead

Bledisloe House 24 Wellesley Street, Auckland Central

Browns Bay Corner of Bute and Glen Roads, Browns Bay

Devonport 3 Victoria Road, Devonport

Glen Eden 39 Glenmall Place, Glen Eden

Glenfield 90 Bentley Avenue, Glenfield

Graham Street 35 Graham Street, Auckland

Great Barrier Island Hector Sanderson Road, Claris

Helensville 49 Commercial Road, Helensville

Henderson 6 Henderson Valley Road, Henderson Waitākere

Huapai 296 Main Road (SH16) Huapai

Manukau Ground Floor, Kotuku House, 4 Osterley Way, Manukau City Centre

New Lynn 31 Totara Avenue, New Lynn

Ōrewa 50 Centreway Road, Ōrewa

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Part 5: Appendices How to contact the council


Papakura 35 Coles Crescent, Papakura

Pukekohe 82 Manukau Road, Pukekohe

Takapuna 1 The Strand, Takapuna

Waiheke Island 10 Belgium Street, Ostend

Waiuku Corner of King Street and Constable Road, Waiuku

Warkworth 1 Baxter Street, Warkworth

Whangapāraoa 9 Main Street, Whangapāraoa

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Part 5: Appendices Glossary of terms


Glossary of terms Term DefinitionAccelerated Transport Programme An Accelerated Transport Programme has been established to help address urgent

transport investment needs, particularly public transport. An additional $523 million will be invested in the first three years, partially funded by an Interim Transport Levy.

Activity The goods or services the council provides

AMETI Auckland Manukau Eastern Transport Initiative

Annual Plan The plan that sets out what the council will be working to achieve in a financial year, how it will spend its money, the level of service to be provided, and the level of rates and other revenue required to fund that spending

Asset An item of value, usually of a physical nature, that has a useful life of more than 12 months and has future economic benefits over a period of time. Infrastructural assets provide the basic facilities, services and installations needed for a community or society to function, such as stormwater drainage pipes. Non-infrastructural assets are the organisation’s other assets that provide either administrative or operational functions, such as computer software

AT Auckland Transport

ATEED Auckland Tourism, Events and Economic Development Limited

Auckland Council or the council The local government of Auckland established on 1 November 2010. The council is made up of the governing body, 21 local boards, and the council organisation (operational staff)

BID Business improvement district

Centres Localities identified as urban centres which include the city centre and fringe, metropolitan centres, town centres and local centres. Centres are typically higher density, compact mixed-use environments with high quality public transport links and provide a wide range of community, recreational, social and other activities

CRL City Rail Link.

COMET COMET Auckland

Commercial activities Retail, information and communication, finance and insurance, and other service sectors. These sectors typically can afford relatively higher land prices/rents, and locate well in town centres

Council-controlled organisation (CCO)

A company or other entity under the control of local authorities through their shareholding of 50 per cent or more, voting rights of 50 per cent or more, or right to appoint 50 per cent or more of the directors. Some organisations may meet this definition but are exempted as council-controlled organisations

Depreciation The charge representing consumption or use of an asset, assessed by spreading the asset’s value over its estimated economic life. Depreciation includes amortisation of intangible assets unless otherwise stated

Panuku Development Auckland (PDA)

A new CCO combining Waterfront Auckland and ACPL to work as a single outward facing entity in the development of the region.

Development contributions Contributions from developers, collected to help fund new infrastructure required by growth, as set out in the Local Government Act 2002. This can be a financial contribution or provision of services or an asset of the same value.

Governing body The governing body is made up of the mayor and 20 councillors. It shares its responsibility for decision-making with the local boards. The governing body focuses on the big picture and on Auckland-wide strategic decisions. Because each ward may vary in population, some wards have more than one councillor

Grants and subsidies Revenue received from an external agency to help fund an activity or service that the council provides

Gross operating expenditure Total without deductions of depreciation and finance costs

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Term Definition Hapū Kinship group, clan, tribe, sub tribe - section of a large kinship group Household One or more people usually resident in the same dwelling, who share living facilities.

A household can contain one or more families, or no families at all. A household that does not contain a family nucleus could contain unrelated people, related people, or could simply be a person living alone

Infrastructure The fixed, long-lived structures that facilitate the production of goods and services and underpin many aspects of quality of life. Infrastructure refers to physical networks, principally transport, water, energy, and communications

Interim transport levy Interim levy for the first three years of the Long-term Plan 2015-2025 (10-year budget) which contributes towards the additional capital expenditure for the acceleration of the transport capital programme.

Iwi Groups of whānau or hapū related through a common ancestor Kaitiaki Guardians of the environment

Kaitiakitanga Guardianship including stewardship; processes and practices for looking after the environment, guardianship that is rooted in tradition

Local boards There are 21 local boards which share responsibility for decision-making with the governing body. They represent their local communities and make decisions on local issues, activities and facilities

Local Board Agreement An annual agreement between the governing body and each local board, outlining its priorities and preferences in its local board plan for the year

Local Board Plan A plan that reflects the priorities and preferences of the communities within the local board area in respect of the level and nature of local activities to be provided by the council over the next three years

Local Government Act 2002 (LGA 2002)

Legislation that defines the powers and responsibilities of territorial local authorities such as Auckland Council

Local Government (Rating) Act 2002 (LGRA)

Defines how territorial local authorities such as Auckland Council can assess and apply their rating policy

Long-term Plan or the LTP This document sets out the council’s vision, activities, projects, policies, and budgets for a 10-year period. Also commonly referred to as the LTP, the 10-year budget

Mana whenua Iwi, the people of the land who have mana or customary authority. Their historical, cultural and genealogical heritage are attached to the land and sea

Mataawaka Māori who live in Auckland but do not whakapapa to mana whenua.

Mātauranga Māori Māori wisdom. In a traditional context, this means the knowledge, comprehension or understanding of everything visible or invisible that exists across the universe

Maunga Mountain, mount, peak; Auckland’s volcanic cones

Mauri Mauri is the pure state of an object or substance. Sometimes referred to as the 'life force’, mauri is contingent upon all things being in balance or in harmony

New Zealand Transport Agency (NZTA)

Plans and delivers sustainable transport networks across New Zealand, In Auckland and has responsibility for maintaining the state highway network roads

Pā Fortified Māori settlements, villages and towns

Papakāinga A location including meeting facilities, homes, vegetable gardens, a cemetery and other things required to sustain a whānau, hapū or iwi. Known previously as unfortified Māori settlements, villages and towns

Papakāinga housing Housing development within a papakāinga framework

Penlink Penlink is a proposed alternative route between the Whangaparaoa Peninsula and State Highway 1 (SH1) at Redvale.

Rangatahi Younger generation, youth

Rangatira Chief Rangatiratanga Chiefly authority. A state of being. It is expressed in who we are, and how we do

things; ability to make decisions for the benefit of their people and the community in

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Term Definitiongeneral; confers not only status but also responsibility to ensure that the natural world and its resources are maintained into the future; recognises iwi and hapū right to manage resources or kaitiakitanga over the ancestral lands and waters. The Māori version of article 2 of the Treaty uses the word 'rangātiratanga' in promising to uphold the authority that tribes had always had over their lands and taonga.

Rates A charge against the property to help fund services and assets that the council provides

Rūnanga Assembly or council in an iwi context

Taonga A treasured item, which may be tangible or intangible

Tāmaki Makaurau The Māori name for Auckland

Tangata Whenua Indigenous peoples of the land

Targeted rates A targeted rate is a rate set to fund activities where greater transparency in funding is desired or where the council considers the cost should be met by particular groups of ratepayers, as they will be the prime beneficiaries of the activity.

Te Tiriti o Waitangi / The Treaty of Waitangi

The written principles on which the British and Māori agreed to found a nation state and build a government

Te Toa Takitini A top-down council group approach to better enable the council group to identify, invest, and track progress on activities that deliver on the Auckland Plan, transform the organisation and deliver Aucklanders great value for money. It derives from the whakatauki (proverb): Ehara taku toa i te toa takitahi, engari he toa takitini, Success is not determined by me alone, it is the sum of the contribution of many.

Tikanga Customary lore and practice

Transformational shifts Our vision will not be achieved by incremental change. Transformational change is needed, and this requires a commitment to a better future from all Aucklanders. The Auckland Plan’s six transformational shifts are the areas where Auckland needs to make a step change. They are interdependent and interconnected, and taking an integrated, mutually reinforcing and ‘multiplier’ approach will be critical to achieving them.

UAGC Uniform Annual General Charge – a fixed rate set uniformly across all properties regardless of property value or category, applied to every separately used or inhabited part of a rating unit (e.g. a dwelling on a section, a shop in a mall, or a granny flat)

Waka Canoe, vehicle, conveyance

Waste Any matter, whether liquid, gas or solid, which is discharged, unwanted or discarded by the current generator or owner as having little or no economic value, and which may include materials that can be reused, recycled or recovered

Watercare Watercare Services Limited

WMMP Waste Management and Minimisation Plan, the first Auckland-wide plan, aiming at an aspirational goal of Zero Waste, helping people to minimise their waste and create economic opportunities in doing so.

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Part 5: Appendices Key word index


Key word index Page

No. PageNo.

Accelerated transport programme……..……………12, 13, 74 Investment…............1, 5, 6, 8, 15, 18, 29, 30, 31, 33, 34, 35, 41, 42, 43, 44, 51, 53, 56, 62, 68, 77

Alternative financing…………………………………………...42 Local board agreements…………………..…...…………….99

Assets….…...5, 39, 41, 42, 44, 46, 47, 49, 52, 53, 54, 55, 56, 61, 62, 65, 68, 87, 88, 94

Long-term plan (10-year budget)1, 2, 8, 9, 15, 42, 44, 46, 49, 51, 58, 65, 68, 71, 74, 83, 87, 88, 95,

Auckland Plan…………………………………………....2, 9, 50 Māori transformational activities…...15, 19, 23, 27, 31, 35, 39

Business Improvement Districts (BIDs)……..……….8, 77, 79 Maunga …………………………...2, 89, 90, 91, 92, 93, 94, 95

Borrowing.....41, 42, 49, 53, 57, 58, 60, 61, 65, 68, 83, 87, 88 Operating expenditure…….…….….19, 43, 44, 58, 76, 88, 95

Business differential……………...…………………………..73 Priorities……….. 6, 13, 15, 18, 19, 22, 23, 26, 27, 30, 31, 34, 35, 38, 39,

Capital expenditure……...….41, 42, 43, 44, 49, 58, 65, 68 88 Public transport………...….6, 8, 12, 13, 14, 15, 26, 41, 43, 46

Council-controlled organisation (CCO)……………..37, 93, 99 Rates…………. 1, 5, 8, 34, 41, 43, 44, 46, 52, 57, 58, 62, 65, 71, 72, 73, 74, 75, 76, 77, 79, 80, 83, 84, 85, 87

Central and Northern interceptor………………...………37, 38 Renewals…………………………………………….….... 22, 42

City Rail Link (CRL)……………………………..…1, 12, 13, 41

Septic tank……………………………………….….8, 81, 84, 86

Community infrastructure…………...1, 2, 5, 8, 12, 22, 35, 37, 41, 42, 52, 54, 55, 58, 88

Solid waste services…………………………………………. 62

Contributing to Māori…………….…..…..1, 6, 8, 9, 15, 19, 23, 25, 27, 31, 35, 39, 94, 96, 99

Targeted rate………..…. 8, 62, 63, 71, 72, 74, 75, 76, 77, 78, 79, 80, 81, 82, 84, 85, 86, 95

Debt…………………………...5, 41, 42, 46, 53, 58, 65, 87, 88 Te Toa Takitini………………………………………………….9

Demand management………………………………………..69 Wastewater……..6, 37, 38, 39, 41, 43, 44, 52, 55, 62, 63, 69, 71, 81, 82, 84, 86

Diversified Financial Assets Portfolio……………….42, 61, 62

Environment….1, 6, 21, 23, 27, 39, 47, 50, 62, 69, 76, 77, 99

Financial strategy……………...……………………..42, 60, 87

Funding….…6, 33, 35, 43, 44, 58, 59, 62, 63, 65, 68, 74, 75, 77, 92, 94, 95

Growth…….…...1, 5, 6, 14, 18, 22, 31, 37, 38, 39, 41, 42, 46, 58, 65, 73, 88

Interim transport levy………………….1, 8, 13, 44, 71, 74, 84

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Auckland Council disclaims any liability whatsoever in connection with any action taken in reliance of this document for any error, deficiency, flaw or omission contained in it.

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