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Finance and Strategy Committee
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MINUTES OF A MEETING OF THE
FINANCE AND STRATEGY COMMITTEE
HELD ON WEDNESDAY, 19 AUGUST 2009 AT 9.30AM
IN THE COMMITTEE ROOM, LEVEL 15
CIVIC ADMINISTRATION BUILDING
1 GREYS AVENUE, AUCKLAND

PRESENT:

Councillors:

Douglas

Armstrong, QSO

[Chairperson]

 

 

Paul

Goldsmith

[Deputy Chairperson] [from 9:35am, item 2; until 11:25am, item C1; from 11:27 am, item C3]

 

 

Aaron

Bhatnagar

[until 10:35am, item 6; from 10:37am, item 6]

 

 

Dr Cathy

Casey

 

 

 

Mark

Donnelly

[until 11:10am, item 15]

 

Deputy Mayor

David

Hay, JP

[from 9:40am, item C2; until 10:27am, item C2; from 11:25 am, item C1]

 

 

Richard

Northey, ONZM

 

 

 

 

 

 

ALSO PRESENT:

Councillors:

Leila

Boyle

[from 10:34am, item 6]

 

 

Bill

Christian, JP

 

 

 

Glenda

Fryer

[from 9:35am, item 2; until 10:34am, item 5; from 10:35am, item 6; until 10:52am, item 7; from 10:53am, item 7]

 

 

Denise

Roche

[from 10:05am, item C2; until 10:58am, item 7; from 11:05am, item 9]

  1. Top APOLOGIES

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

    CARRIED

  2. Top CONFIRMATION OF MINUTES

    1. That the minutes of the Finance and Strategy Committee meeting held on Wednesday, 17 June 2009 be confirmed as a true and correct record.

    2. That the minutes of the Finance and Strategy Committee - Council Controlled Organisation meeting held on Wednesday, 24 June 2009 be confirmed as a true and correct record.

    CARRIED

  3. Top EXTRAORDINARY BUSINESS

    That the apparent postponement of Auckland City Council projects and property purchases at the request of the Auckland Transition Agency as reported in the New Zealand Herald (18 August 2009) be the subject of discussion as Item 15.

    CARRIED

    [Secretarial note: Items 14A (C2), 14B and C2 were taken at this point.]

  4. Top PUBLIC FORUM

    There were no requests to speak in public forum.

  5. Top REPORTS REQUESTED/PENDING

    That the reports/requested pending from the Democracy Advisor, dated 7 August 2009, be received, noting changes listed:

    Row No.

    Date Requested

    Target Date

    Officer(s) Reporting

    Report Name

    Comments

    1

    20 May 2009 - Item 15

    From Aug-09 to Sept-09 F&S CCO

    Advisor - Business Performance & Reporting

    Review of the Aotea Centre Board of Management's Theatrical Risk Policy

    The Finance and Strategy Committee requests that the Aotea Centre Board of Management submit its review of the Board's Theatrical Risk Policy to the August 2009 Finance and Strategy Committee, and suggests that the policy is amended to ensure:
    (i) comparison of the same productions across different markets takes into account different market factors (e.g. relative affordability of shows);
    (ii) comparison of productions in the same market takes into greater account competition from other types of entertainment and the type of risk sharing arrangement agreed between THE EDGEŽ and its partners;
    (iii) greater emphasis on risk mitigation planning;
    (iv) greater sensitivity to economic conditions; and
    (v) regular interim reports to council on productions that are risky or involve a relatively high investment from THE EDGEŽ between the decision to support their undertaking the production and the time that it is staged.

    2

    24 June 2009 - Item 6 & C4

    From Aug-09 to Sept-09 F&S CCO

    Advisor - Business Performance & Reporting

    Review of THE EDGEŽ's Performance for The Nine months Ending 31 March 2009

    That the Finance and Strategy Committee requests that THE EDGEŽ include a projection of future capital expenditure requirements in its assessment of the ticketing business to be reported to the Finance & Strategy Committee in August 2009.

    Officers have advised that the report will be available in September 2009 Finance & Strategy-CCO meeting.

    CARRIED

  6. Top JUNE 2009 QUARTER TREASURY OUTCOMES VERSUS RISK LIMITS

    1. That the Finance and Strategy Committee notes that during the June 2009 quarter, the Treasury Group operated within the policy limits established by the Treasury Management Policy, as approved by council, and in accordance with the strategic risk limits approved by the Treasury Management Steering Group.
    2. That the Finance and Strategy Committee notes that there was full compliance with New Zealand Exchange listing requirements during the June 2009 quarter.
    3. That the Finance and Strategy Committee notes that as at 30 June 2009, the cost of the debt portfolio was 7.00% and the return on the Trusts and Reserves portfolio was 6.80%.
    4. That the Finance and Strategy Committee notes that the Auckland City Council's actual group interest expense for the 2008/2009 financial year was $28.083 million, equating to 6.89% per annum based on the average debt balance over the financial year.
    5. That the Finance and Strategy Committee notes that the General Manager Finance has been delegated authority to discuss borrowing strategies with the Auckland Transition Agency.
    6. That the Finance and Strategy Committee notes that the Auckland Regional Financial Officers have supported removal of the restriction on borrowing in foreign currencies in line with the resolution on 20 May 2009 of the Finance and Strategy Committee.
    7. That the Finance and Strategy Committee notes that a Working Party of the region's Chief Financial Officers and Treasury Managers are preparing a draft Treasury Management Policy and framework to co-ordinate the existing councils' financial and capital markets activities during the transition to the Auckland Council.
    8. That the Finance and Strategy Committee requests that any proposed amalgamation of a significant council function across the region be reported to the appropriate Auckland City Council committee, preferably before the amalgamation is carried out.

    CARRIED

  7. Top ESTABLISHMENT OF NEW ZEALAND EXCHANGE REPORTING SUB - COMMITTEE

    1. That the report entitled "Establishment of New Zealand Exchange Reporting Sub-committee", dated 7 August 2009, be received.
    2. That the Finance and Strategy Committee endorses the establishment of a sub-committee, which consists of the Chairperson and Deputy Chairperson of the Finance and Strategy Committee and Councillor Northey, for the purposes of approving Auckland City Council's financial reporting announcements to the New Zealand Exchange.
    3. That the first meeting of the New Zealand Exchange Reporting Sub-committee be held on Thursday, 27 August 2009.

    CARRIED

  8. Top RATES, REMISSIONS

    That the report entitled "Rates, Remissions", dated 29 July 2009, recording rates remissions totalling $3,578,395.69 (which includes provision for $2,429,408 and $1,108,202 of remission associated with ratepayers with an approved alternative collection service) made under delegated authority in terms of Auckland City Council's policies on the Remission of Rates, be received.

    CARRIED

  9. Top RATES, PENALTY REMISSIONS 2008/2009

    That the report entitled "Rates, Penalty Remissions 2008/2009", dated 20 July 2009, recording penalties remitted totalling $527,804 for 2008/2009 made under delegated authority in terms of Auckland City Council's policy on the Remission of Rates Penalties, be received.

    CARRIED

  10. Top RATES, POSTPONED

    That the report entitled "Rates, Postponed", dated 21 July 2009, recording rates postponed totalling $135,125.01 made under delegated authority in terms of Auckland City Council's policies on the Postponement of Rates, be received.

    CARRIED

  11. Top RATING DIFFERENTIALS

    That the Finance and Strategy Committee notes the recommendations from the 15 June 2009 Great Barrier Island Community Board meeting and requests that a report be made to the 10 November 2009 Annual Plan Direction Setting meeting on the remaining issues raised in the report and recommendations.

    CARRIED

  12. Top DELEGATED DECISIONS OF THE GROUP MANAGER PROPERTY AND PROPERTY MANAGEMENT MANAGER

    That the decisions made under delegation by the Group Manager, Property, and the Property Management Manager, be noted.

    CARRIED

  13. Top CONTRACT AND TENDER ACTIVITY MAY - JULY 2009

    That the Finance and Strategy Committee notes the schedules in the report entitled "Contract and Tender Activity May - July 2009", dated 28 July 2009, as follows:

    Schedule 1: Contracts executed under delegation.

    Schedule 2: The opening of tenders and responses to Requests for Proposals (RFP) over $250,000.

    Schedule 3: Contracts awarded but not yet executed.

    CARRIED

  14. Top EXCLUSION OF THE PUBLIC : LOCAL GOVERNMENT OFFICIAL INFORMATION AND MEETINGS ACT 1987

    1. That the public be excluded from the following part(s) of the proceedings of this meeting.

    The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

    Item No.

    General subject of each matter to be considered

    Reason for passing this resolution in relation to each matter

    Particular interest(s) protected (where applicable)

    Ground(s) under section 48(1) for the passing of this resolution

    C1.

    RATES, MAORI LAND

    Public conduct of matter would be likely to result in disclosure of information for which good reason to withhold exists under section 7.

    Section 7(2)(a)

    The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

    In particular, the report contains assessment numbers and property locations of properties for which rates are recommended to be written off which could lead to the identification of the property owners concerned.

    Section 48(1)(a)

    The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

    C2.

    PROPERTY ENTERPRISE BOARD DRAFT STATEMENT OF INTENT FOR 2009/2010 - 2011/2012

    Public conduct of matter would be likely to result in disclosure of information for which good reason to withhold exists under section 7.

    Section 7(2)(h)

    The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

    In particular, the report contains information about potential property transactions that would place council at a disadvantage in carrying out commercial activities if released to the public.

    Section 48(1)(a)

    The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

    C3.

    DELEGATED DECISIONS OF THE GROUP MANAGER PROPERTY AND PROPERTY MANAGEMENT MANAGER

    Public conduct of matter would be likely to result in disclosure of information for which good reason to withhold exists under section 7.

    Section 7(2)(h)

    The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

    In particular, the report contains references to the property's value and information that may impact on the property owner's commercial activities; identification of the site and contract terms which form the basis of negotiations between council and the landowner; sensitive information about council's proposed intentions for the site, which could prejudice or disadvantage its commercial activities.

    Section 48(1)(a)

    The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.
    1. That Mr Chris Aiken and Ms Adrienne Young-Cooper, board members of the Property Enterprise Board, be permitted to remain at this meeting after the public has been excluded for confidential item C2 because of their specific knowledge of the Property Enterprise Board.

    CARRIED

  15. Top MINISTER'S REPORTED COMMENTS IN THE NEW ZEALAND HERALD DATED 18 AUGUST 2009 ON AUCKLAND CITY COUNCIL PROJECTS AND PROPERTY PURCHASES

    [ATTACHMENT 15A]

    The General Manager Finance tabled an email for discussion.

    That the Finance and Strategy Committee notes the information provided by the General Manager Finance.

    CARRIED

    There being no further business the Chairperson declared the meeting closed at 11:29 am.