Skip navigation
Council member and meetings
Annual Plan meetings
Back to contents MINUTES ATTACHMENTS

MINUTES OF AN EXTRAORDINARY MEETING OF THE FINANCE AND STRATEGY COMMITTEE

HELD ON TUESDAY, 18 NOVEMBER 2008 AT 9:30AM

PRESENT: Councillor Douglas Armstrong, QSO Chairperson
  His Worship the Mayor, Hon John Banks, QSO [until 10:45am; from 10:55am until 11:20am; from 11:35am until 1:07pm]
  Councillors Ken Baguley  
    Aaron Bhatnagar  
    Leila Boyle  
    Dr Cathy Casey  
    Bill Christian, JP  
    Mark Donnelly [until11:46am; from 11:50am]
    Graeme Easte  
    Glenda Fryer  
    Paul Goldsmith [until 12:13pm; from 12:17pm until 12:49pm; from 12:55 until 2:40pm; from 2:45pm]
  Deputy Mayor David Hay, JP [until 12:19pm; from 12:25pm]
    Peseta Sam Lotu-Iiga Deputy Chairperson
        [from 2:05pm]
    Toni Millar, JP  
    Greg Moyle, E.D.  
    Graeme Mulholland, JP [until 10:50am; from 11:00am]
    Richard Northey, ONZM  
    Noelene Raffills  
    Denise Roche [from 10:13am]

  1. Top APOLOGIES

    That the apologies from Councillor Lister for non-attendance and Councillor Lotu-Iiga and Councillor Roche for lateness be accepted.

    CARRIED

  2. Top EXTRAORDINARY BUSINESS

    There was no extraordinary business.

    CARRIED

    OVERVIEW

  3. Top TEN-YEAR PLAN PROCESS OVERVIEW

    The Chairperson moved:

    1. That the Finance and Strategy Committee notes that it is a statutory requirement for council to prepare and consult every three years on its ten-year plan and this process is subject to audit.
    2. That the Finance and Strategy Committee notes to achieve a ten-year budget where the overall rate increase is within council's rate of inflation requires significant reductions in the capital expenditure programme.
    3. That the Finance and Strategy Committee notes to prepare a prioritised list of capital projects, officers have:
      1. categorised capital projects into statutory, contractual, need to do and discretionary; and
      2. linked each capital project to a strategy and strategic priority.
    4. That the Finance and Strategy Committee notes the suggested approach to adopting draft ten-year budgets is to:
      1. confirm the capital projects and operating activities that are predominantly statutory, contractual or a need to do;
      2. agree to the budgets that are proposed to be removed from the ten-year plan; and
      3. agree to the budgets of discretionary activities and capital projects that are proposed to be within the ten-year plan, including timing and re-scoped projects.
    5. That the Finance and Strategy Committee notes between 18 November and finalising the draft Ten-year plan in March that there is opportunity to amend the capital projects and operating activities lists in a manner that will not materially impact on the document before going out to public consultation.
    6. That the Finance and Strategy Committee notes that following the public submission process, the capital projects and operating activities lists will be reviewed and may be amended again.

    Councillor Northey moved the following amendment by way of replacement to B:

    1. That the Finance and Strategy Committee notes to achieve a ten-year budget where the overall rate increase is within council's rate of inflation would require savage and unacceptable slashing of the capital expenditure programme and would intensify the current recession and generate significant unemployment in Auckland and therefore the net capital expenditure reductions will not be as great or extensive as is envisaged in the 'Ten-year Plan Process Overview' report.

    A division was called for, voting on which was as follows:

    For the Amendment: Against the Amendment:
    Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    Cr Denise Roche

    		 Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Mark Donnelly

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    His Worship the Mayor


    Councillor John Lister and Councillor Peseta Sam Lotu-Iiga were absent.

    The amendment was declared LOST by 12 votes to 6.

    The Chairperson put the substantive motion:

    1. That the Finance and Strategy Committee notes that it is a statutory requirement for council to prepare and consult every three years on its ten-year plan and this process is subject to audit.
    2. That the Finance and Strategy Committee notes to achieve a ten-year budget where the overall rate increase is within council's rate of inflation requires significant reductions in the capital expenditure programme.
    3. That the Finance and Strategy Committee notes to prepare a prioritised list of capital projects, officers have:
      1. categorised capital projects into statutory, contractual, need to do and discretionary; and
      2. linked each capital project to a strategy and strategic priority.
    4. That the Finance and Strategy Committee notes the suggested approach to adopting draft ten-year budgets is to:
      1. confirm the capital projects and operating activities that are predominantly statutory, contractual or a need to do;
      2. agree to the budgets that are proposed to be removed from the ten-year plan; and
      3. agree to the budgets of discretionary activities and capital projects that are proposed to be within the ten-year plan, including timing and re-scoped projects.
    5. That the Finance and Strategy Committee notes between 18 November and finalising the draft Ten-year plan in March that there is opportunity to amend the capital projects and operating activities lists in a manner that will not materially impact on the document before going out to public consultation
    6. That the Finance and Strategy Committee notes that following the public submission process, the capital projects and operating activities lists will be reviewed and may be amended again.

    The amendment was put by show of hands and declared CARRIED by 12 votes to 6.

    BUDGETS

  4. Top TEN-YEAR PLAN BUDGETS

    [ATTACHMENT 4A and 4Ea]

    The Chairperson moved:

    1. That the Finance and Strategy Committee notes that:
      1. The resolution of 7 October 2008 Long-term Council Community Plan (LTCCP) Direction Setting meeting required officers to prepare the ten-year plan on the basis of:
        • all expenditure being value for money; and
        • affordable progress with a plan that is in keeping with the economic times facing New Zealand by keeping rates increases over the ten-year plan to less than or equal to council's rate of inflation each year;
      2. Achieving affordable progress requires a thorough review and prioritisation of all operating activities and capital projects, the result of which is that some activities and projects have to be delayed, scaled back or discontinued.
    2. That the Finance and Strategy Committee receives the report outlining the ten-year budgets, noting the strategic priorities agreed on the 7 October 2008 have been applied to achieve rates increases within the forecasted council rate of inflation over each of the ten years.
    3. That the Finance and Strategy Committee acknowledges that to achieve the budgets as presented, the chief executive is required to deliver increased efficiency savings each year and/or reprioritised service levels.
    4. That the Finance and Strategy Committee agrees to the classification of capital projects as:
      1. statutory
      2. contractual
      3. need to do
      4. discretionary IN
      5. discretionary OUT
        as a framework to prioritise the capital expenditure and deliver council's strategic priorities.
    5. That the Finance and Strategy Committee agree to include in the draft ten-year plan consultation funding for all projects classified as statutory, contractual and need to do as set out in Appendices 1-3 [refer to Attachment 4A] with the following amendment;
    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee 147 Western Spring Asset renewals For flood lights. Reduction of $780,971 in 2009/10 $100,000
    1. That the Finance and Strategy Committee agrees to exclude from the draft ten-year plan for public consultation capital projects classified as discretionary OUT as set out in Appendix 5 which do not meet the statutory, contractual, need to do criteria and are not aligned with council's strategic priorities, except for the following changes which are to be included in Appendix 4 of the Discretionary IN [refer to Attachment 4A]:
    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee Pool Swimming pools For a swimming pool in Auckland City. The balance to be funded by other means Increased $3.75m 2015/16 and 2016/17. $7.5 million
    Arts, Culture and Recreation Committee 99 Pah Homestead restoration Restoration of Pah homestead Increased to $100,000 for 2009/10 $100,000
    Arts, Culture and Recreation Committee 26 Churchill Park development Stage 2 For fencing and paths, upgrade of signage and installation of a small number of benches and dog litterbins. Increased by $250,000 for 2009/10 and 2010/11 $500,000
    Community Services Committee 42 Wesley Community Centre Stage 2 Development of the community centre Increased for 2009/10 $2.5 million
    Transport Committee 141 Underground cabling for street lighting Undergrounding of power cables across the city Increased to $1 million per annum $10 million
    1. That the Finance and Strategy Committee agrees to include in the draft ten-year plan for public consultation funding for capital projects classified as Discretionary IN as set out in Appendix 4 which are not statutory, contractual, or need to do, but are aligned with council's strategic priorities with the following amendments [Refer to Attachment 4A]:
    Committee PG Number Project group Description Type of Change 10 Year Total
    Finance and Strategy Committee and Community Services Committee113 and 144 Waiheke service centre new building and redevelopment of Waiheke library support centre Construction of s new service centre on Waiheke. Current Waiheke library facilities are inadequateReduction of $2.5 million across both projects in 2009/10 $5.55 million for both projects
    Arts, Culture and Recreation Committee 48 Development of art gallery collection Purchase of new art works over ten year period to refresh and improve collection. Reduction of $300,000 per annum commencing 2011/12 onwards $3 million
    Arts, Culture and Recreation Committee 146 Waterfront programme Development of waterfront Harbour Bridge Park Reduction of $4.725 million in 2015/16 $1.5 million
    Finance and Strategy Committee 6 Aotea Centre CAPEX Refurbishment of Aotea Centre ASB Theatre and back of stage Reduction of $6 million in 2015/16 and $3 million in 2016/17 and $1.5 million in 2017/18 and 2018/19 $18 million
    Finance and Strategy Committee 49 Development with vision Budget for purchases which meet development with vision objectives, over the ten years of the plan. Reduction of $1 million per annum $140 million
    Arts, Culture and Recreation Committee 67 Beach restoration Includes Harbour Walkway, Herne Bay, Judges Bay, Orakei Walkway, Point England, and Blockhouse Bay to Onehunga. No Change in total value $10 million

     

    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee Pool Swimming pools For a swimming pool in Auckland City. The balance to be funded by other means Increased $3.75m 2015/16 and 2016/17. $7.5 million
    Arts, Culture and Recreation Committee 99 Pah Homestead restoration Restoration of Pah homestead Increased to $100,000 for 2009/10 $100,000
    Arts, Culture and Recreation Committee 26 Churchill Park development Stage 2 For fencing and paths, upgrade of signage and installation of a small number of benches and dog litterbins. Increased by $250,000 for 2009/10 and 2010/11 $500,000
    Community Services Committee 42 Wesley Community Centre Stage 2 Development of the community centre Increased for 2009/10 $2.5 million
    Transport Committee 141 Underground cabling for street lighting Undergrounding of power cables across the city Increased to $1 million per annum $10 million
    1. That the Finance and Strategy Committee accepts the ten-year operating budget commencing with a rates income of $446 million in 2009/10, a rates increase of 5% over the previous year, rising to $732 million in 2018/19, reflecting the activities outlined in the service profiles as set out in Appendix 9 of the "Ten-year Plan Budgets" report;
    2. That the Finance and Strategy Committee requests that council officers' work programme include:
      1. Work to facilitate a public private partnership on The Landing development;
      2. Work to add more red light cameras where this can be done purely at a cost recovery for Council;
      3. Continue investigation of projects that will foster economic development including the convention centre and overseas passenger terminal;
      4. Cooperation with government's broadband initiatives so that Auckland City is a priority for that investment;
      5. Investigate the merits of an increased capital investment programme that would require a real rates increase for consideration and consultation during preparation of the 2010/11 annual plan as a potential response to the economic situation;
      6. Further analysis and review by council officers and the relevant committees of the operating expenditure detailed in the service profiles including an assessment of the merits of each activity,
      7. Advocate to the Auckland Regional Transport Authority (ARTA) that they fund the building of park and ride facilities around railway stations; and
      8. Investigate the car parking for the Western Springs Precinct.
    3. That the Finance and Strategy Committee notes that the capital and operating expenditure programme proposed by council provides for the continuation of almost all existing activities and substantial real investment in the city of over $1.5 billion over the next ten years, and that the capital expenditure programme for 2009/10 is over $500 million, which is the largest level of capital expenditure in a single year by Auckland City Council.

    Councillor Northey moved the following amendments:

    1. The Committee acknowledges that to achieve the budgets presented, the Chief Executive is required to deliver increased efficiency savings each year, which will probably at some point in the future, impact on current service levels.

    Amendment C was put by show of hands and declared LOST by 11 votes to 6.

    1. That the Finance and Strategy Committee agrees that the proposed Ten-year plan budget set out in this report will result in harmful and damaging and unacceptable cuts in the provision of council projects, activities and services and in reductions in the service levels required for a good city and would also worsen the economic and employment situation in Auckland City and therefore the Committee reverses substantially the proposed cuts in capital and operating expenditure set out in the "Ten-year Plan Budgets" report.

    Amendment D was put by show of hands and declared LOST by 11 votes to 6.

    1. That the Finance and Strategy Committee agrees that the service levels and expenditure for:
      1. Waiheke beach monitoring;
      2. Public arts programme funding at the edge; and
      3. Community services and organisations grants be retained at the level set in the current of Long-term Council Community Plan (LTCCP).

    Voting on amendment K was taken line by line and put by show of hands and K(a), K(b) and K(c) were declared LOST by 10 votes to 7 respectively.

    Councillor Easte moved the following amendment by way of addition to E:

    [Refer to ATTACHMENT 4(E)(a)]

    1. a. That the Finance and Strategy Committee agrees to include in the draft ten-year plan consultation funding for all projects classified as Need to do [Appendix 3] with the following amendment:
    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee 102 Park network development Development of park network around the city Increase by $303,000 in 2010/11 for Grey Lynn park $303,000

    and a corresponding reduction of $303,000 in the Discretionary IN classification:

    Arts, Culture and Recreation Committee 102 Park network development Addition and improvements to the park network Reduced $21,653,000

    A division was called for, voting on which was as follows:

    For the Amendment: Against the Amendment:
    Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Mark Donnelly

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    Cr Denise Roche

    		 Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Toni Millar

    Cr Graeme Mulholland

    Cr Noelene Raffills

    His Worship the Mayor

    Councillor Lister and Councillor Lotu-Iiga were absent. Councillor Moyle abstained from voting.

    The amendment was declared LOST by 10 votes to 7, with 1 abstention.

    Councillor Fryer moved the following amendment by way of addition to E:

    1. a. That the Finance and Strategy Committee agrees to include in the draft ten-year plan consultation funding for all projects classified as Need to do [Appendix 3] with the following amendment:
    Committee PG Number Project group Description Type of Change 10 Year Total
    City Development Committee 143 Waiheke Island waste minimisation initiatives Purchase of wheelie-bins and upgrade of the present facility of handling Waiheke Island refuse. Reduce by $450,000 through removing purchase of wheelie-bins $450,000

    A division was called for, voting on which was as follows:

    For the Amendment: Against the Amendment:
    Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    		 Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Mark Donnelly

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    His Worship the Mayor

    Councillor Lister and Councillor Lotu-Iiga were absent. Councillor Roche declared a conflict of interest and did not speak nor vote on line 143.

    The amendment was declared LOST by 12 votes to 5, with 1 abstention.

    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee 26 Churchill park Stage 2   $250,000 for 2009/10 and $550,000 for 2010/11 $800,000
    City Development Committee 129 Stormwater programme Flood alleviation, development of infrastructure, improvement of water quality drained to the sea. Increase by $43 million over the 10 years and exact timing to be determined $273 million
    Community Services Committee 32 Citywide library furniture and fitting renewals Cyclical renewals of furniture and fittings in libraries around the city Increase by $90,000 $1.691 million
    Community Services Committee 45 Current use collection renewals Renewals to refresh and improve current collections. Increase by $2 million $39.3 million
    Transport Committee 53 Footpaths Construction of new footpaths around the city. Increase by $39.5 million over the first 5 years $258 million
    Transport Committee 105 Passenger Transport Initiatives Developing park and ride facilities to support rapid transport (bus/rail stations). Sites include Glen Innes, Panmure, Orakei, Avondale and Otahuhu. Increase by $3.5 million over the first 3 years $3.625 million
    Transport Committee 117 Road safety Cyclical safety renewals of roads in the city. Increase by $400,000 per annum $60 million
    Transport Committee 124 Specific projects Development of Sandringham road redevelopment. Reduce by $7 million $7 million

    A division was called for, voting on which was as follows:

    For the Amendment: Against the Amendment:
    Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Mark Donnelly

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    Cr Denise Roche

    		 Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    His Worship the Mayor

    Councillor Lister and Councillor Lotu-Iiga were absent.

    The amendment was declared LOST by 11 votes to 7.

    Councillor Boyle moved the following amendment:

    1. That the Finance and Strategy Committee agrees to exclude from the draft ten-year plan for public consultation capital projects classified as Discretionary OUT as set out in Appendix 5 which do not meet the statutory, contractual, need to do criteria and are not aligned with council's strategic priorities, except for the following changes which are to be included in Appendix 4 [Discretionary IN]:
    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee 97 Swimming pools For a swimming pool in Otahuhu Increase of $7.5 million in 2015/16 and 2016/17 $15 million
    Arts, Culture and Recreation Committee 16 Avondale pool development Construction of a swimming pool in Avondale $508,891 commencing in 2017/18, $7,000,183 in 2018/19 $7,491,305 in 19/20 $7.5 million (note that the remaining $7.5 million will need to be funded in 2019/20)
    Arts, Culture and Recreation Committee 34 Citywide playground developments Development of playgrounds around the city $1 million per annum $10 million
    Arts, Culture and Recreation Committee 37 Citywide town centre upgrade Town centre upgrades, including Pt Chevalier and Royal Oak $650,000 in 2009/10 and $120,000 in 2010/11 and $830,000 in 2011/12 $1.6 million
    Arts, Culture and Recreation Committee 52 Facilities partnerships Partner with external organisations (eg, schools or community organisations) and provide grant for facilities Restore budget of $9 million and increase by another $10 million, and spread over years as previously $19 million
    Arts, Culture and Recreation Committee 57 Glen Innes Music Art Centre A new building for youth to develop music and art skills Restore $2 million in 2013/14 and $3 million in 2014/15 $5 million
    Arts, Culture and Recreation Committee 59 Glen Innes town centre upgrade AUL P1 Upgrade of Glen Innes town centre Restore original budget at $7 million $7 million
    Arts, Culture and Recreation Committee 70 Land purchases to improve harbours access Acquisition of land to improve access to coast $5 million in 2011/12 $5 million
    Arts, Culture and Recreation Committee 80 Michaels Ave Reserve Amenity building Demolish existing building and build new changing rooms. Sports clubs have been fundraising to build new clubroom on top. $1 million in 2011/12 $1 million
    Arts, Culture and Recreation Committee 83 Monte Cecilia development Development in line with master plan for park, including restoration of Pah homestead $1.2 million in 2016/17, $1 million in 2017/18 and $1 million in 2018/19 $3.2 million
    Arts, Culture and Recreation Committee 85 Mt Richmond development Improve quality of existing reserves at Mt Richmond, including Sturges park Increased $100,000 in 2013/14 and $800,000 in 2014/15 and $300,000 in 2015/16 $1.2 million
    Arts, Culture and Recreation Committee 102 Park network development Development of park network around the city Increase to $2 million per annum $20 million
    Arts, Culture and Recreation Committee 120 Service level improvement Purchase of land and park development. Both are growth related and service level improvements Increase to $9 million per annum commencing from 2015/16 onwards $36 million
    Arts, Culture and Recreation Committee 133 Sylvia Park surrounds Development of Sylvia park surrounds $2 million 2014/15 and $2 million in 2015/16 $4 million
    Arts, Culture and Recreation Committee 134 Tamaki Streetscape Upgrade Upgrade of streetscapes $2 million per annum in 2015/16, 2016/17 and 2017/18 $6 million
    Arts, Culture and Recreation Committee 145 Waikaraka Park extension Extension of Waikaraka park $10 million in 2009/10 $10 million
    City Development Committee 51 Economic Development Development of broadband around the city $5 million per annum in 2009/10 and 2010/11 $10 million
    Community Services Committee 42 Community centre and hall growth projects Expansion of centres and halls to provide for growth $1 million per annum $10 million
    Community Services Committee 60 Grey Lynn library development This redevelopment was scheduled to occur in 2013/14 but has been DEFERRED beyond 10 years. Restore $1.5 million in 2013/14 $1.5 million
    Community Services Committee 75 Glen Innes Library Development of the Glen Innes Library $750,000 in 2012/13 and $750,000 in 2013/14 $1.5 million in 2011/12
    Transport Committee 53 Footpaths Construction of new footpaths around the city $39.5 million over the first 5 years $39.5 million
    Transport Committee 63 Hauraki Gulf specific projects To investigate, prepare construction drawings and implement physical works to renew existing bridges, seawalls and retaining walls that are nearing the end of their design life. $171,000 per annum for all 10 years $1.71 million
    Transport Committee 77 Liveable streets An investment programme to manage speed in residential streets where safety issues and speed related crashes have been identified $1.5 million per annum $15 million
    Transport Committee 87 Neighbourhood Accessibility Plan & Travel Demand Management   $500,000 per annum $5 million
    Transport Committee 105 Passenger Transport Initiatives Reduction $1 million per annum $10 million

    A division was called for, voting on which was as follows:

    For the Amendment: Against the Amendment:
    Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    Cr Denise Roche

    		 Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Mark Donnelly

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    His Worship the Mayor

    Councillor Lister and Councillor Lotu-Iiga were absent.

    The amendment was declared LOST by 12 votes to 6.

    The meeting adjourned for morning tea at 11:05am and reconvened at 11:20am.

    Councillor Roche moved the following amendment:

    1. That the Finance and Strategy Committee agrees to include in the draft ten-year plan for public consultation funding for capital projects classified as discretionary IN as set out in Appendix 4 which are not statutory, contractual, or need to do, but are aligned with council's strategic priorities with the following amendments:
    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee 67 Beach Restoration Upgrade of beaches across the city. Other work is still being scoped out, but will include Point England. Restoration work includes dredging, resanding of beaches and provision of other amenities (e.g boardwalks) Reduce $1.5 million in 2009/10 and $3.5 million from 2010/11 for Judges Bay $5 million
    Arts, Culture and Recreation Committee 30 Citywide artworks Art works around the city Increase by $7.1 million so that there is $2 million of expenditure each annum $20 million
    Arts, Culture and Recreation Committee 93 Onehunga Bay foreshore upgrade The motorway expansion to SH20 proposed by Transit provides the council with the opportunity to develop Onehunga foreshore into high quality open space and coastal environment Increase by $2.5 million in 2011/12 and 2012/13 $15 million
    Arts, Culture and Recreation Committee 102 Park network development Development of park network around the city Increase by $3.6 million in 2016/17, 2017/18 and 2018/19 $64.556 million
    Arts, Culture and Recreation Committee 128 Stonefields open space development Open space development at Stonefields Defer one year to 2010/11 No Change
    Arts, Culture and Recreation Committee 146 Waterfront Programme Development of waterfront, including Wynyard Quarter development and development of Harbour Bridge Park and Marine Events Centre Reduce by $1 million in 2009/10 $1 million
    Community Services Committee 86 Mt Roskill library development Redevelopment of Mt Roskill library facilities No budget change - move timetable to 2015/16 and 2016/17 $1.598 million
    Transport Committee 46 Cycleway and Walkway Improvements Improving cycle and walkways initially in CBD, Kingsland, Mt Albert and Newmarket Increase by $23 million to the original programme $27.1 million
    Transport Committee 63 Hauraki Gulf specific projects To investigate, prepare construction drawings and implement physical works to form a new public road on Jenny's road (Great Barrier Island) No budget change - Restore original timetable $1.8 million
    Transport Committee 105 Passenger Transport Initiatives Land purchase and detailed design of improvement for Dominion Road Reduce $1 million over the 8 years programme $75.958 million
    Transport Committee 117 Road safety Safety initiatives to improve safety around schools Restore original budget $48.108 million

    A division was called for, voting on which was as follows:

    For the Amendment: Against the Amendment:
    Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    Cr Denise Roche

    		 Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Mark Donnelly

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    Councillor Lister, Councillor Lotu-Iiga and His Worship the Mayor were absent.

    The amendment was declared LOST by 11 votes to 6.

    Councillor Donnelly moved the following amendment by way of addition:

    1. That the Finance and Strategy Committee establishes a working party consisting of the Chairperson of the Finance and Strategy Committee and Councillors Baguley, Donnelly, Northey and Goldsmith to co-ordinate the analysis and review by council officers of the operating expenditure (as detailed in resolution I(vi)) and to also:
      1. review current methods of capital expenditure cost/benefit analysis; and
      2. analyse current Council policies which have an impact on the cost of future capital expenditure projects.

    The amendment was put by show of hands and declared CARRIED by 17 votes to 1.

    Councillor Casey moved the following amendments by way of addition:

    1. That the Finance and Strategy Committee agrees to restore the Volcanic Restoration programme budget as agreed in the 2006-2016 Long-term Council Community Plan (LTCCP) i.e. $1 million per year throughout totalling $10 million;

    A division was called for, voting on which was as follows:

    For the Amendment: Against the Amendment:
    Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Mark Donnelly

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    Cr Denise Roche

    		 Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    His Worship the Mayor

    Councillor Lister and Councillor Lotu-Iiga were absent.

    Amendment K was declared LOST by 11 votes to 7.

    1. That the Finance and Strategy Committee requests officers to provide a scoping report on options for the provision of a breeding herd of elephants at the Zoo to the March 2009 Combined Committee.

    Amendment L was put by show of hands and declared CARRIED by 17 votes to 1.

    The Chairperson put the substantive motion:

    1. That the Finance and Strategy Committee notes that:
      1. The resolution of 7 October Long-term Council Community Plan (LTCCP) Direction Setting meeting required officers to prepare the ten-year plan on the basis of:
        • all expenditure being value for money; and
        • affordable progress with a plan that is in keeping with the economic times facing New Zealand by keeping rates increases over the ten-year plan to less than or equal to council's rate of inflation each year;
      2. Achieving affordable progress requires a thorough review and prioritisation of all operating activities and capital projects, the result of which is that some activities and projects have to be delayed, scaled back or discontinued.
    2. That the Finance and Strategy Committee receives the report outlining the ten-year budgets, noting the strategic priorities agreed on the 7 October have been applied to achieve rates increases within the forecasted council rate of inflation over each of the ten years.
    3. That the Finance and Strategy Committee acknowledges that to achieve the budgets as presented, the chief executive is required to deliver increased efficiency savings each year and/or reprioritised service levels.
    4. That the Finance and Strategy Committee agrees to the classification of capital projects as:
      1. statutory
      2. contractual
      3. need to do
      4. discretionary IN
      5. discretionary OUT
        as a framework to prioritise the capital expenditure and deliver council's strategic priorities.
    5. That the Finance and Strategy Committee agree to include in the draft ten-year plan consultation funding for all projects classified as statutory, contractual and need to do as set out in Appendices 1-3 [refer to Attachment 4A] with the following amendment;
    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee 147 Western Spring Asset renewals For flood lights. Reduction of $780,971 in 2009/10 $100,000
    1. That the Finance and Strategy Committee agrees to exclude from the draft ten-year plan for public consultation capital projects classified as discretionary OUT as set out in Appendix 5 which do not meet the statutory, contractual, need to do criteria and are not aligned with council's strategic priorities, except for the following changes which are to be included in Appendix 4 of the Discretionary IN [refer to Attachment 4A]:
    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee Pool Swimming pools For a swimming pool in Auckland City. The balance to be funded by other means Increased $3.75m 2015/16 and 2016/17. $7.5 million
    Arts, Culture and Recreation Committee 99 Pah Homestead restoration Restoration of Pah homestead Increased to $100,000 for 2009/10 $100,000
    Arts, Culture and Recreation Committee 26 Churchill Park development Stage 2 For fencing and paths, upgrade of signage and installation of a small number of benches and dog litterbins. Increased by $250,000 for 2009/10 and 2010/11 $500,000
    Community Services Committee 42 Wesley Community Centre Stage 2 Development of the community centre Increased for 2009/10 $2.5 million
    Transport Committee 141 Underground cabling for street lighting Undergrounding of power cables across the city Increased to $1 million per annum $10 million
    1. That the Finance and Strategy Committee agrees to include in the draft ten-year plan for public consultation funding for capital projects classified as Discretionary IN as set out in Appendix 4 which are not statutory, contractual, or need to do, but are aligned with council's strategic priorities with the following amendments [refer to Attachment 4A]:
    Committee PG Number Project group Description Type of Change 10 Year Total
    Finance and Strategy Committee and Community Services Committee 113 and 144 Waiheke service centre new building and redevelopment of Waiheke library support centre Construction of s new service centre on Waiheke. Current Waiheke library facilities are inadequate Reduction of $2.5 million across both projects in 2009/10 $5.55 million for both projects
    Arts, Culture and Recreation Committee 48 Development of art gallery collection Purchase of new art works over ten year period to refresh and improve collection. Reduction of $300,000 per annum commencing 2011/12 onwards $3 million
    Arts, Culture and Recreation Committee 146 Waterfront programme Development of waterfront Harbour Bridge Park Reduction of $4.725 million in 2015/16 $1.5 million
    Finance and Strategy Committee 6 Aotea Centre CAPEX Refurbishment of Aotea Centre ASB Theatre and back of stage Reduction of $6 million in 2015/16 and $3 million in 2016/17 and $1.5 million in 2017/18 and 2018/19 $18 million
    Finance and Strategy Committee 49 Development with vision Budget for purchases which meet development with vision objectives, over the ten years of the plan. Reduction of $1 million per annum $140 million
    Arts, Culture and Recreation Committee 67 Beach restoration Includes Harbour Walkway, Herne Bay, Judges Bay, Orakei Walkway, Point England, and Blockhouse Bay to Onehunga. No Change in total value $10 million

     

    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee Pool Swimming pools For a swimming pool in Auckland City. The balance to be funded by other means Increased $3.75m 2015/16 and 2016/17. $7.5 million
    Arts, Culture and Recreation Committee 99 Pah Homestead restoration Restoration of Pah homestead Increased to $100,000 for 2009/10 $100,000
    Arts, Culture and Recreation Committee 26 Churchill Park development Stage 2 For fencing and paths, upgrade of signage and installation of a small number of benches and dog litterbins. Increased by $250,000 for 2009/10 and 2010/11 $500,000
    Community Services Committee 42 Wesley Community Centre Stage 2 Development of the community centre Increased for 2009/10 $2.5 million
    Transport Committee 141 Underground cabling for street lighting Undergrounding of power cables across the city Increased to $1 million per annum $10 million
    1. That the Finance and Strategy Committee accept the ten-year operating budget commencing with rates income of $446 million in 2009/2010, a rates increase of 5% over the previous year, rising to $734 million in 2018/2019, reflecting the activities outlined in the service profiles as set out in Appendix 9; which are of the Ten-year Plan Budgets Report;
    2. That the Finance and Strategy Committee requests that council officers' work programme include:
      1. Working to facilitate a public private partnership on The Landing development;
      2. Working to add more red light cameras where this can be done purely at a cost recovery for Council;
      3. Continued investigation of projects that will foster economic development including the convention centre and overseas passenger terminal;
      4. Cooperation with government's broadband initiatives so that Auckland City is a priority for that investment;
      5. Investigation of the merits of an increased capital investment programme that would require a real rates increase for consideration and consultation during preparation of the 2010/11 annual plan as a potential response to the economic situation;
      6. Further analysis and review by council officers and the relevant committees of the operating expenditure detailed in the service profiles including an assessment of the merits of each activity,
      7. Advocating to the Auckland Regional Transport Authority (ARTA) that they fund the building of park and ride facilities around railway stations; and
      8. Investigation of the car parking for the Western Springs Precinct.
    3. That the Finance and Strategy Committee notes that the capital and operating expenditure programme proposed by council provides for the continuation of almost all existing activities and substantial real investment in the city of over $1.5 billion over the next ten years, and that the capital expenditure programme for 2009/10 is over $500 million, which is the largest level of capital expenditure in a single year by Auckland City Council.
    4. That the Finance and Strategy Committee establish a working party consisting of the Chairperson of the Finance and Strategy Committee and Councillors Baguley, Donnelly, Northey and Goldsmith to co-ordinate the analysis and review by council officers of the operating expenditure (as detailed in resolution I(vi)) and to also:
      1. review current methods of capital expenditure cost/benefit analysis; and
      2. analyse current Council policies which have an impact on the cost of future capital expenditure projects.
    5. That the Finance and Strategy Committee requests officers to provide a scoping report on options on the provision of a breeding herd of elephants at the Zoo to the March 2009 Combined Committee.

    The motion was put by show of hands and declared CARRIED by 11 votes to 6. Councillors Northey, Boyle, Casey, Easte, Fryer and Roche requested their vote against resolution 4 A - J be recorded.

    The meeting adjourned for lunch at 1:05pm and reconvened at 1:45pm.

  5. Top MAINSTREET AND BUSINESS IMPROVEMENT DISTRICT DRAFT BUDGETS 2009/2010

    1. That the Finance and Strategy Committee includes the following estimated draft Mainstreet and Business Improvement District (BID) budgets in the 2009/10 Annual Plan and Budget:
    Estimate A
    Mainstreet / BID Proposed 2009/10
    Programme Budgets (excl GST)
    Avondale 100,000.00
    Blockhouse Bay 44,290.00
    Eden Valley 97,500.00
    Ellerslie 90,145.00
    Glen Innes 156,248.40
    Heart of the City 3,425,822.40
    Karangahape Road 250,981.00
    Mt Eden 68,035.27
    Newmarket 1,034,000.00
    Onehunga 367,416.00
    Otahuhu 399,300.00
    Panmure 366,025.00
    Parnell 294,816.50
    Ponsonby 220,000.00
    Remuera 235,587.00
    Rosebank 198,000.00
    Programme Budgets (excl GST)
    St Heliers 131,890.00
    Total 7,480,057

    Note: Estimate A is based on the boundaries of all Mainstreet and BID programmes remaining the same as 2008/2009

    Estimate B
    Mainstreet / BID Proposed 2009/10
    Programme Budgets (excl GST)
    Avondale 100,000.00
    Blockhouse Bay 44,290.00
    Eden Valley 97,500.00
    Ellerslie 90,145.00
    Glen Innes 156,248.40
    Heart of the City 3,425,822.40
    Karangahape Road 250,981.00
    Mt Eden 68,035.27
    Newmarket 1,190,000.00
    Onehunga 367,416.00
    Otahuhu 399,300.00
    Panmure 366,025.00
    Parnell 294,815.00
    Ponsonby 220,000.00
    Remuera 235,587.00
    Rosebank 198,000.00
    St Heliers 131,890.00
    Total 7,636,057

    Note: Estimate B is based on the boundary extension poll for the Newmarket BID gaining approval.

    1. That the Finance and Strategy Committee confirms that the boundaries of all Mainstreet and Business Improvement District (BID) programmes remain the same as those for the 2008/09 financial year, subject to the outcome of the Newmarket boundary extension poll in December 2008, noting that in the event that the boundary extension is approved, the Newmarket boundary will be changed to reflect the extended area.

    CARRIED

    POLICIES

  6. Top PROPOSED 2009-2019 Long-term Council Community Plan (LTCCP) LTCCP POLICIES

    1. That the Finance and Strategy Committee agrees that because the council's policy on partnerships with the private sector remains relevant and appropriate, no changes to the policy will be consulted on via the draft 2009-2019 Ten-year plan.
    2. That the Finance and Strategy Committee notes that the revenue and financing policy will be updated for the decisions made at the 18 November meeting, and will be included in the draft Ten-year plan that will be adopted by Council at the March 2009 Combined Committees for consultation with the public.
    3. That the Finance and Strategy Committee notes that the funding impact statement will be updated for the decisions made at the 18 November 2008 Long-term Council Community Plan (LTCCP) meeting, and will be included in the draft Ten-year plan that will be adopted by Council at the March 2009 Combined Committees for consultation with the public.
    4. That the Finance and Strategy Committee notes that the following policies are considered in separate reports in the 18 November agenda, with their own recommendations about policy changes to be consulted on via the draft Ten-year plan:
      1. Airport shares policy;
      2. Development Contributions policy (including summary of Financial Contribution rules);
      3. Rates assistance schemes;
      4. Significance policy; and
      5. Treasury management policy.

    CARRIED

  7. Top PROPOSED RATES-RELATED POLICIES FOR 2009/2010

    The Chairperson moved:

    1. That the Finance and Strategy Committee confirms continuing to apply the next step of the long-term general rate differential strategy, which narrows the distribution of rates between residential and non-residential ratepayers, will transfer around $2.7 million from non-residential groups to the residential group for 2009/10 (meaning an additional rates increase of 1.6 per cent for residential properties next year).
    2. That the Finance and Strategy Committee agrees that the Uniform Annual General Charge (UAGC) should be increased to $350 per separately used or inhabited part (SUIP) for 2009/10, which is 13.5 per cent of council's total rates and notes that the uniform charges (UAGC, refuse collection targeted rate and the CBD targeted rate for residential units in the CBD) is 21.2 per cent of council's total rates.
    3. That the Finance and Strategy Committee confirms increasing the refuse collection targeted rate from $210 to around $220 per service to fully fund the cost of the services. The increase covers the higher cost of the existing services and the new waste minimisation levy. It also includes using some of the surplus from 2007/08 to reduce the revenue by $2 million for 2009/10.
    4. That the Finance and Strategy Committee confirms increasing the CBD targeted rate for non-residential ratepayers in line with the reduction in the general rate by applying the next step of the differential strategy will increase the targeted rate revenue by around $2.3 million to $13.4 million (excluding GST.
    5. That the Finance and Strategy Committee confirms increasing the CBD targeted rate for residential ratepayers from $55 to $58 per residential unit to reflect council's rate of inflation and to help fund higher development costs associated with the development and revitalisation of the CBD.
    6. That the Finance and Strategy Committee confirms expanding the remission of rates for land covenanted under the Queen Elizabeth II National Trust Act to include Reserves Act covenants, as long as the additional resources to manage this process are available. Officers estimate this could cost around $50,000 in resources for 2009/10.
    7. That the Finance and Strategy Committee confirms a discount for early payment of rates of 2.64 per cent for 2009/10, reflecting council's projected short-term borrowing rate for 2009/10.
    8. That the Finance and Strategy Committee notes that the October Direction Setting meeting resolved to introduce a new targeted rate for those ratepayers wanting additional recycling services. The charge is projected at around $71 per service.
    9. That the Finance and Strategy Committee notes that officers will report the actual level of the different rates to the March 2009 Combined Committees for inclusion in the draft 2009-2019 LTCCP.
    10. That the Finance and Strategy Committee confirms that the annual rates increase from 2010/11 will be by increasing the uniform annual general charge, after taking in to account the other targeted rates, until uniform charges are 30 per cent of the total rates revenue, which is the maximum permitted under the Local Government (Rating) Act 2002.

    Councillor Boyle moved the following amendment to B:

    1. That the Finance and Strategy Committee agrees that the Uniform Annual General Charge (UAGC) should be retained at the current level of $162 per separately used or inhabited part (SUIP) for 2009/10, thus balancing out the impact of the movement of the urban fire fighting water levy from Council to Metrowater.

    A division was called for, voting on which was as follows:

    For the Amendment: Against the Amendment:
    Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    Cr Denise Roche

    		 Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Mark Donnelly

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Peseta Sam Lotu-Iiga

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    Councillor Lister and His Worship the Mayor were absent.

    The amendment was declared LOST by 12 votes to 6.

    Councillor Fryer moved the following amendment to C:

    1. That the Finance and Strategy Committee confirms retaining the refuse collection targeted rate at $210 per service which will be partly funded by using all of the surplus from the 2007/08 financial year.

    The amendment was put by show of hands and declared LOST by 12 votes to 6.

    Councillor Northey moved the following amendment to E:

    1. That the Finance and Strategy Committee agrees to increase the targeted rate for CBD residential ratepayers by 5%, but apply the rate on a value base system as occurs for CBD non-residential ratepayers.

    The amendment was put by show of hands and declared LOST by 12 votes to 6.

    The Chairperson put the substantive motion:

    1. That the Finance and Strategy Committee confirms continuing to apply the next step of the long-term general rate differential strategy, which narrows the distribution of rates between residential and non-residential ratepayers, will transfer around $2.7 million from non-residential groups to the residential group for 2009/10 (meaning an additional rates increase of 1.6 per cent for residential properties next year).
    2. That the Finance and Strategy Committee agrees that the Uniform Annual General Charge (UAGC) should be increased to $350 per separately used or inhabited part (SUIP) for 2009/10, which is 13.5 per cent of council's total rates and notes that the uniform charges (UAGC, refuse collection targeted rate and the CBD targeted rate for residential units in the CBD) is 21.2 per cent of council's total rates.
    3. That the Finance and Strategy Committee confirms increasing the refuse collection targeted rate from $210 to around $220 per service to fully fund the cost of the services. The increase covers the higher cost of the existing services and the new waste minimisation levy. It also includes using some of the surplus from 2007/08 to reduce the revenue by $2 million for 2009/10.
    4. That the Finance and Strategy Committee confirms increasing the CBD targeted rate for non-residential ratepayers in line with the reduction in the general rate by applying the next step of the differential strategy will increase the targeted rate revenue by around $2.3 million to $13.4 million (excluding GST.
    5. That the Finance and Strategy Committee confirms increasing the CBD targeted rate for residential ratepayers from $55 to $58 per residential unit to reflect council's rate of inflation and to help fund higher development costs associated with the development and revitalisation of the CBD.
    6. That the Finance and Strategy Committee confirms expanding the remission of rates for land covenanted under the Queen Elizabeth II National Trust Act to include Reserves Act covenants, as long as the additional resources to manage this process are available. Officers estimate this could cost around $50,000 in resources for 2009/10.
    7. That the Finance and Strategy Committee confirms a discount for early payment of rates of 2.64 per cent for 2009/10, reflecting council's projected short-term borrowing rate for 2009/10.
    8. That the Finance and Strategy Committee notes that the October Direction Setting meeting resolved to introduce a new targeted rate for those ratepayers wanting additional recycling services. The charge is projected at around $71 per service.
    9. That the Finance and Strategy Committee notes that officers will report the actual level of the different rates to the March 2009 Combined Committees for inclusion in the draft 2009-2019 LTCCP.

    The motion 7 A – I was put by show of hands and declared CARRIED by 12 votes to 6 and Councillor Northey, Easte, Fryer, Casey, and Boyle requested their vote against resolutions 7 A - I be recorded.

    1. That the Finance and Strategy Committee confirms that the annual rates increase from 2010/11 will be by increasing the uniform annual general charge, after taking in to account the other targeted rates, until uniform charges are 30 per cent of the total rates revenue, which is the maximum permitted under the Local Government (Rating) Act 2002.

    A division was called for, voting on which was as follows:

    For the Motion: Against the Motion:
    Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Mark Donnelly

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Peseta Sam Lotu-Iiga

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    		 Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    Cr Denise Roche


    Councillor Lister and His Worship the Mayor were absent.

    The motion J was declared CARRIED by 12 votes to 6.

  8. Top OVERVIEW DEVELOPMENT CONTRIBUTIONS POLICY 2009

    1. That the Finance and Strategy Committee notes that work is currently underway to refine and extend this policy, in order to ensure the development contributions charges, and the revenue raised through the development contributions policy, remain at appropriate levels, including:
      1. evaluating the council's cost of growth based on the most up to date capital programme, as this evolves;
      2. revising the calculations and methodologies supporting the policy to reflect new information, such as levels of development activity, assumptions regarding future interest and inflation rates, the amount and timing of capital spend, and relevant methodology refinements;
      3. possible extensions to the way that the policy applies for development on the Hauraki Gulf islands;
      4. updating the current policy wording to reflect; these changes and amendments to the assessment for actual credits where a financial contribution has previously been assessed.
    2. That the Finance and Strategy Committee notes that decisions made at the Long-term Council Community Plan (LTCCP) Direction Setting meeting on the capital programme will have a direct impact on the council's identified cost of growth, and therefore on the level of per unit charges and the year-by-year revenue generated through the policy.
    3. That the Finance and Strategy Committee notes that as part of supporting an updated development contributions policy (to be consulted on as part of the ten year plan), officers provide the December meeting of the City Development committee with an updated report on proposed policy amendments, reflecting in particular the work described above, decisions made at this meeting, and other information as will be available then.

    CARRIED

  9. Top REVIEW OF TREASURY MANAGEMENT POLICY FOR 2009 - 2019 LTCCP

    1. That the Finance and Strategy Committee agrees to consult on the following adjustments to the Treasury Management Policy via the draft 2009-2019 Ten-year plan:
      1. changing the mix of prudential ratios in the sustainable debt policy to provide a more focused approach to ensuring financial prudence by discontinuing the use of the interest expense to total income ratio;
      2. including an alternative debt policy for commercially focussed activities to provide the council with greater flexibility to consider options for funding these activities to operate in a more commercial manner while still ensuring that the council remains financially prudent overall;
      3. changes to wording and structure of the sustainable debt policy to improve clarity and readability; and
      4. transferring the detailed liquidity policy limit from the treasury management policy to the treasury operating manual.
    2. That the Finance and Strategy Committee agrees that the draft Treasury Management Policy wording attached as Appendix I of the "Review of Treasury Management Policy for 2009 - 2019 LTCCP" report be included in the draft ten-year plan, with authority to approve any minor wording changes delegated to the Chairperson of the Finance and Strategy Committee.

    CARRIED

  10. Top REVIEW POLICY ON SIGNIFICANCE FOR 2009-2019 LONG-TERM COUNCIL COMMUNITY PLAN (LTCCP)

    The Chairperson moved:

    That the Finance and Strategy Committee on 15 October 2008 recommend to the Long-term Council Community Plan (LTCCP) Direction Setting 18 November meeting:

    1. That the Finance and Strategy Committee notes that while there are a number of proposed improvements to the Policy on Significance, they are minor in nature with the key tenets of the current policy remaining.
    2. That the Finance and Strategy Committee approves the draft Policy on Significance for consultation as part of the draft 2009-2019 Ten-year plan including amendments related to the following:
      1. The council's approach to decision-making;
      2. The council's approach to determining significance;
      3. Reviewing proposals of higher significance;
      4. Consultation requirements;
      5. Exclusions;
      6. Special consultative procedure overview;
      7. Council outputs; and
      8. General editing.

    Councillor Casey moved the following amendment by way of addition:

    1. That the provisions for criteria and consultation in the Policy on Significance be enhanced as follows:
      1. Criteria

    In terms of the criteria (section 3.3 of the draft policy), include an additional criteria, namely:

    1. "The extent to which affected persons or groups are impacted by the decision".

    A division was called for, voting on which was as follows:

    For the Amendment: Against the Amendment:
    Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Bill Christian

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    Cr Denise Roche

    		 Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Mark Donnelly

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Peseta Sam Lotu-Iiga

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    Councillor Lister and His Worship the Mayor were absent.

    Amendment C(i) was declared LOST by 11 votes to 7.

    1. Consultation

    Additionally, include the following lines in the consultation section (section5):

    "As a minimum, each report by officers seeking a decision on a significant proposal will include a statement outlining community views and preferences and how there were views and preferences were gathered."

    Amendment C(ii) was put by show of hands and declared LOST by 11 votes to 7.

    The Chairperson put the substantive motion:

    1. That the Finance and Strategy Committee notes that while there are a number of proposed improvements to the Policy on Significance, they are minor in nature with the key tenets of the current policy remaining.
    2. That the Finance and Strategy Committee approves the draft Policy on Significance for consultation as part of the draft 2009-2019 Ten-year plan including amendments related to the following:
      1. The council's approach to decision-making;
      2. The council's approach to determining significance;
      3. Reviewing proposals of higher significance;
      4. Consultation requirements;
      5. Exclusions;
      6. Special consultative procedure overview;
      7. Council outputs; and
      8. General editing.

    The motion was put by show of hands and declared CARRIED by 12 votes to 6.

  11. Top REVIEW OF POLICY ON AUCKLAND AIRPORT SHARES FOR 2009-2019 LONG-TERM COUNCIL COMMUNITY PLAN (LTCCP)

    1. That the Finance and Strategy Committee agrees there are limited number of scenarios where the purchase of additional shares in Auckland International Airport Limited (AIAL) would be prudent for council, and requests that this be included as an option in the Policy on Auckland Airport Shares to enhance the council's ability to respond to opportunities and mitigate threats as they arise.
    2. That the Finance and Strategy Committee notes that under the proposed changes to the council's Policy on Auckland Airport Shares, any proposal to buy more shares in Auckland International Airport Limited (AIAL) would be subject to Council approval following rigorous analysis against the objectives and criteria outlined in the policy.
    3. That the Finance and Strategy Committee approves the draft Policy on Auckland Airport Shares for consultation as part of the draft 2009-2019 Ten-year plan with the following amendments to the current policy:
      1. update and minor edits;
      2. inclusion of an option to buy more shares outside of a restructuring transaction.

    CARRIED

  12. Top RATEPAYER DIFFERENTIALS AND DEFINITIONS

    The Chairperson moved:

    That the Finance and Strategy Committee on 15 October 2008 recommend to the Long-term Council Community Plan (LTCCP) Direction Setting 18 November meeting:

    1. That the Finance and Strategy Committee confirms that the amended residential ratepayer group definition include hotels, motels, serviced apartments, boarding houses and hostels, if the property owner can provide proof of exclusive or almost exclusive residential use, according to set criteria (property owners must provide proof of long-term stay (at least 90 days) for over 50 per cent of the units in the form of a residential tenancy agreement or similar documentation as at 30 June each year).
    2. That the Finance and Strategy Committee confirms that "Rural 1" be renamed "Farming and open space" and that the definition includes vacant land and bush blocks on Waiheke, Great Barrier and Rakino islands greater than five hectares to better accommodate these types of properties into the rating differential policy.
    3. That the Finance and Strategy Committee confirms that "Rural 2" be renamed "Limited Access" and that the definition remains unchanged.
    4. That the Finance and Strategy Committee confirms that "Rural 3" be renamed "Remote Islands" and that the definition remain unchanged.
    5. That the Finance and Strategy Committee confirms applying the next step of the long-term general rate differential strategy, which transfers around $2.7 million from non-residential groups to the residential group for 2009/10.
    6. That the Finance and Strategy Committee notes that there are no budget changes from the proposed policy changes.

    Councillor Roche moved the following amendment by way of addition:

    1. That officers be asked to report to February 2009 Finance and Strategy Committee on whether the definitions of the rating differentials can be adjusted so that:
      1. residential zones be limited to properties within designated settlement areas defined in the Great Barrier Island district plan maps;
      2. current Rural 1 rating definition be expanded to include all areas of extensive open space and all land designated Land Form 6 (regenerating slopes); and
      3. Rural 2 be defined as limited access for restricted use and include all areas affected by the following designations:
        • Sites of ecological significance
        • sensitive areas
        • Significant ecological features
        • Heritage designations
        • Headland protection areas
        • All areas classified as Landform 1 (coastal slopes and cliffs)
        • All areas classified as Landform 2 (sand and dune systems)
        • Landform 4 (wetlands)
        • Landform 7 (forest and bush)

    CARRIED

    The Chairperson put the substantive motion:

    1. That the Finance and Strategy Committee confirms that the amended residential ratepayer group definition include hotels, motels, serviced apartments, boarding houses and hostels, if the property owner can provide proof of exclusive or almost exclusive residential use, according to set criteria (property owners must provide proof of long-term stay (at least 90 days) for over 50 per cent of the units in the form of a residential tenancy agreement or similar documentation as at 30 June each year).
    2. That the Finance and Strategy Committee confirms that "Rural 1" be renamed "Farming and open space" and that the definition includes vacant land and bush blocks on Waiheke, Great Barrier and Rakino islands greater than five hectares to better accommodate these types of properties into the rating differential policy.
    3. That the Finance and Strategy Committee confirms that "Rural 2" be renamed "Limited Access" and that the definition remains unchanged.
    4. That the Finance and Strategy Committee confirms that "Rural 3" be renamed "Remote Islands" and that the definition remain unchanged.
    5. That the Finance and Strategy Committee confirms applying the next step of the long-term general rate differential strategy, which transfers around $2.7 million from non-residential groups to the residential group for 2009/10.
    6. That the Finance and Strategy Committee notes that there are no budget changes from the proposed policy changes.
    7. That officers be asked to report to February 2009 Finance and Strategy Committee on whether the definitions of the rating differentials can be adjusted so that:
      1. residential zones be limited to properties within designated settlement areas defined in the Great Barrier Island district plan maps;
      2. current Rural 1 rating definition be expanded to include all areas of extensive open space and all land designated Land Form 6 (regenerating slopes); and
      3. Rural 2 be defined as limited access for restricted use and include all areas affected by the following designations:
        • Sites of ecological significance
        • sensitive areas
        • Significant ecological features
        • Heritage designations
        • Headland protection areas
        • All areas classified as Landform 1 (coastal slopes and cliffs)
        • All areas classified as Landform 2 (sand and dune systems)
        • Landform 4 (wetlands)
        • Landform 7 (forest and bush)

    CARRIED

  13. Top TARGETED RATE FOR WYNYARD QUARTER

    That the Finance and Strategy Committee agrees that further investigation in to setting a localised targeted rate for the Wynyard Quarter be delayed until:

    1. the plan change for the precinct is formally adopted;
    2. officers have developed more comprehensive policy around the possible use of targeted rates to fund all or part of the costs associated with new development; and
    3. development plans and expenditure have been finalised and costed.

    CARRIED

  14. Top TOURISM AND EVENTS: RUGBY WORLD CUP 2011 - FUNDING OPTIONS

    The Chairperson moved:

    1. That the Finance and Strategy Committee notes that the council has approved an operational expenditure programme for Rugby World Cup 2011 costing $28.8 million.
    2. That the Finance and Strategy Committee notes that the council has agreed to fund the programme through reprioritisation of currently budgeted expenditure ($6.8 million), external sources ($4 million), and the $11 million 2007/08 operating surplus.
    3. That the Finance and Strategy Committee agrees that the $6.9 million shortfall should be funded through targeted rates, levied in 2011/12 only, on the following basis:
      1. Residential properties as a fixed amount of around $23 per separately used or inhabited part of a property to collect around $3.4 million (49 percent of the $6.9 million), which is on average a 1.35 per cent increase for residential properties;
      2. Non-residential and CBD non-residential properties as a value-based targeted rate to collect around $2.9 million (42 percent of the $6.9 million), which is around 1.35 per cent average rate increase for these properties; and
      3. An additional accommodation sector value-based targeted rate to collect around $600,000 (9 per cent of the $6.9 million), which is around 6 per cent average rate increase for these properties.
    4. That the Finance and Strategy Committee notes that if the council reinstates some projects that were removed from the proposed programme at its 23 October 2008 meeting, these will be funded by diverting some of the surplus to fund expenditure prior to 2011/12 and increasing the citywide targeted rate for 2011/12.
    5. That the Finance and Strategy Committee notes that if the council does not secure the full $4 million external funding, the projects to be funded from external funding will not proceed.
    6. That the Finance and Strategy Committee notes that other councils in the region are also investing significantly in the Rugby World Cup by providing new or improved infrastructure and initiatives within their own areas.

    Councillor Northey moved the following amendment:

    1. That the Finance and Strategy Committee agrees that the $6.9 million shortfall for Rugby World Cup 2011 should be funded through targeted rates, levied in 2011/12 only, on the following basis:
      1. Residential properties as a value based targeted rate to collect around $1.7 million (25 percent of the $6.9 million);
      2. Non-residential and CBD non-residential properties as a value-based targeted rate to collect around $2.9 million (42 percent of the $6.9 million), which is around 1.35 per cent average rate increase for these properties;
      3. An additional accommodation sector value-based targeted rate to collect around $600,000 (9 percent of the $6.9 million), which is around 6 per cent average rate increase for these properties; and
      4. An additional non residential geographically specific (eg 4km from radius from Eden Park) value based targeted rate to collect around $1.7m (25% of the $6.9m).

    The amendment was put by show of hands and declared LOST by 12 votes to 4. Councillor Christian declared a conflict of interest and did not speak nor vote on the amendment.

    The Chairperson put the substantive motion:

    1. That the Finance and Strategy Committee notes that the council has approved an operational expenditure programme for Rugby World Cup 2011 costing $28.8 million.
    2. That the Finance and Strategy Committee notes that the council has agreed to fund the programme through reprioritisation of currently budgeted expenditure ($6.8 million), external sources ($4 million), and the $11 million 2007/08 operating surplus.
    3. That the Finance and Strategy Committee agrees that the $6.9 million shortfall should be funded through targeted rates, levied in 2011/12 only, on the following basis:
      1. Residential properties as a fixed amount of around $23 per separately used or inhabited part of a property to collect around $3.4 million (49 percent of the $6.9 million), which is on average a 1.35 per cent increase for residential properties;
      2. Non-residential and CBD non-residential properties as a value-based targeted rate to collect around $2.9 million (42 percent of the $6.9 million), which is around 1.35 per cent average rate increase for these properties; and
      3. An additional accommodation sector value-based targeted rate to collect around $600,000 (9 per cent of the $6.9 million), which is around 6 per cent average rate increase for these properties.
    4. That the Finance and Strategy Committee notes that if the council reinstates some projects that were removed from the proposed programme at its 23 October 2008 meeting, these will be funded by diverting some of the surplus to fund expenditure prior to 2011/12 and increasing the citywide targeted rate for 2011/12.
    5. That the Finance and Strategy Committee notes that if the council does not secure the full $4 million external funding, the projects to be funded from external funding will not proceed.
    6. That the Finance and Strategy Committee notes that other councils in the region are also investing significantly in the Rugby World Cup by providing new or improved infrastructure and initiatives within their own areas.

    A division was called for, voting on which was as follows:

    For the Motion: Against the Motion:
    Cr Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Peseta Sam Lotu-Iiga

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Richard Northey

    Cr Noelene Raffills

    		 Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Mark Donnelly

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Denise Roche

    Councillor Lister and His Worship the Mayor were absent. Councillor Christian declared a conflict of interest and did not speak nor vote on the motion.

    The motion was declared CARRIED by 11 votes to 6.

    COMMUNICATION

  15. Top TEN YEAR PLAN 2009-2019 CONSULTATION AND RESEARCH

    1. That the Finance and Strategy Committee notes the existing research available within the organisation including community outcomes, Future Planning Framework and the reputation research.
    2. That the Finance and Strategy Committee notes the consultation channels already agreed at the 7 October 2008 meeting.
    3. That the Finance and Strategy Committee approves the additional piece of research to be carried out during the formal submission period in April-May, (via the Listening Post), which will provide additional benefits to council by measuring support for the council's priorities and proposed budget decisions.
    4. That the Finance and Strategy Committee requests that officers compile the questions and background information for the research and prepare a report on the results for presentation to councillors.

    CARRIED

    There being no further business the Chairperson declared the meeting closed at 2:55 pm and warmly thanked staff for their work on the Long-term Council Community Plan.

    CARRIED UNANIMOUNSLY
    WITH ACCLAIMATION