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AGENDA ATTACHMENTS

FINANCE AND CORPORATE BUSINESS COMMITTEE

will be held as follows:

Members: * All Councillors are deemed members of the Finance and Corporate Business Committee for Annual Plan purposes

1. APOLOGIES

   At the close of the agenda no apologies had been received.

2. EXTRAORDINARY BUSINESS

   Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

   "An item that is not on the agenda for a meeting may be dealt with at that meeting if-

   1. The local authority by resolution so decides; and
   2. The presiding member explains at the meeting at a time when it is open to the public,-
      1. The reason why the item is not on the agenda; and
      2. The reason why the discussion of the item cannot be delayed until a subsequent meeting."

   Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

   "Where an item is not on the agenda for a meeting,-

   1. That item may be discussed at that meeting if-
      1. That item is a minor matter relating to the general business of the local authority; and
      2. The presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but
   2. no resolution, decision, or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion."

3. THE CHIEF EXECUTIVE'S OVERVIEW OF DIRECTION SETTING FOR THE DRAFT 2006-2016 LONG-TERM COUNCIL COMMUNITY PLAN

   L Manaia
   Committee Manager	3 November 2005

   The Chief Executive provides an overview of the strategic and funding contexts for the development of the Long Term Council Community Plan (LTCCP) 2006 – 2016.

   This item was not available at the time the agenda went to print and will be circulated under separate cover.

4. SUMMARISED 10 YEAR PROJECTIONS OF SOME KEY PARAMETERS AFFECTING AUCKLAND CITY

   S R Vaughan
   Strategy Manager Public Policy	25 October 2005

   Summarising projections as well as underlying assumptions over the period of the Long Term Council Community Plan (LTCCP), and providing estimates of the likely variability of the projections.

   Recommending that council note and consider in their deliberations as part of the development of the LTCCP, projections of key variables affecting Auckland City, in particular:

   • continued population growth
   • increasing ethnic diversity
   • significant movement of people into and out of the city.
   • expected good economic performance relative to New Zealand as a whole
   • low uptake of digital technology
   • continued attention required to environmental quality
   • risks to the health of the population.

   [ATTACHMENT 4]

   Pages 1 - 17

5. OVERVIEW OF THE FUTURE AUCKLAND COMMUNITY OUTCOMES

   Simon Harvey
   Strategic Policy Analyst	26 October 2005

   Reporting that twenty-one community outcomes have been identified which summarise the findings of the research and consultation process. Four of the outcome statements relate to the leadership outcome area. The remaining seventeen relate to the four well-being areas.

   The community outcomes, and how they have been identified, will be described in the Long Term Council Community Plan (LTCCP), together with a description of how council's activities will contribute to those outcomes. The LTCCP will also outline how council will work with local, regional, public and private organisations, Maori and central government to further community outcomes.

   Recommending that the 21 community outcomes be noted including the top three priority outcome areas identified in the research:

   • Auckland is safe
   • Auckland has real transport choices
   • Auckland is interesting and enjoyable.

   [ATTACHMENT 5]

   Pages 1 - 26

6. UPDATE: PROGRESS TOWARDS A STRATEGIC DIRECTION FOR AUCKLAND CITY

   N de Blaauw
   Strategic Policy Analyst	11 November 2005

   Advising that it is time for council to renew the strategic direction for Auckland city. The process has commenced, with a councillor workshop preceded by individual councillor interviews. The two major cluster issues identified by councillors were - managing and benefiting from growth; and enabling better mobility for people and goods.

   A pyramid methodology developed and trialled by council's senior management for scoping the preferred destination was used at the councillor workshop, which identified themes and the direction in which the city should be heading.

   Recommending that council confirm the initial statement of the strategic destination of Auckland city in preparation of the draft Long Term Council Community Plan and that a programme for consultation be planned and reported to the March 2006 Combined Committees. Further, that council agree to undertake a review of the outstanding strategic plan milestones.

   [ATTACHMENT 6]

   Pages 1 - 8

7. LEADING IN URBAN SUSTAINABILITY

   L Manaia
   Committee Manager	3 November 2005
   This report was not available at the time the agenda went to print and will be circulated under separate cover.

8. LONG TERM COUNCIL COMMUNITY PLAN

   Robert Nelson
   LTCCP Champion	26 October 2005

   Reporting that Auckland City is required by the Local Government Act to prepare and adopt a Long Term Council Community Plan (LTCCP) by 30 June 2006. The report outlines the LTCCP requirements, process and milestones.

   Recommending that the report by Robert Nelson dated 26 October 2005 outlining the Long Term Council Community Plan requirements, process and milestones be received.

   [ATTACHMENT 8]

   Pages 1 - 4

9. OPERATIONAL EXPENDITURE 2006/2007 TO 2008/2009

   Colin Field
   Manager Financial Planning	30 October 2005

   Updating projections for the 2006/2007, 2007/2008 and 2008/2009 financial years and outlining the impacts on rates.

   Recommending that the committee note the shortfall of $700,000 in 2006/2007 and that new services are not included in these budget projections.

   [ATTACHMENT 9]

   Pages 1 - 10

10. CAPITAL EXPENDITURE FUNDING FOR THE 2006-2016 LTCCP

    Philip Neutze
    Financial Strategy Manager	3 November 2005

    Nine new capital expenditure ("capex") projects totalling approximately $90 million were approved by Combined Committees on 23 June. Officers do not recommend council decide on funding for these projects ahead of formulating the integrated funding package for the Long Term Council Community Plan (LTCCP). Integrated funding recommendations will be provided to the 15 December Annual Plan Direction Setting meeting including scenarios illustrating the impacts of progressing at different speeds and/or to different levels of achievement with the strategic vision.

    Under current policy setting, council's funding sources for capital expenditure are fully committed for the next ten years. Other capital funding alternatives will need to be considered.

    Recommending that council notes:

    • the 'master list' contained in Appendix I summarising potential new capex projects across council at various stages of investigation that have some alignment with the strategic vision being developed by council.
    • that officers will report back to council at the 15 December Annual Planning Direction Setting meeting with:
      1. a first cut of alternative costed scenarios illustrating the impacts on ratepayers of progressing at different speeds and/or to different levels of achievement with the strategic vision.; and
      2. integrated funding recommendations for the $90 million new capex projects approved by council in June 2005 as well as the costed scenarios.

    [ATTACHMENT 10]

    Pages 1 - 17

11. FOUR LEVERS

    Robert Nelson
    LTCCP Champion	26 October 2005

    Reporting that council is required to adopt a balanced budget for each of the 10 years in the Long Term Council Community Plan (LTCCP) which means a base operating surplus of $15.5 million per annum. This report advises that four levers are available to council that can be applied to produce a balanced budget:

    • What we do
    • Service levels
    • Generating additional revenue
    • Being efficient and effective

    Recommending that the initiatives are grouped under the four levers by the General Manager Finance during the LTCCP budget process, and report to the March 2006 meeting of Combined Committees identifying achievements under each of the levers.

    [ATTACHMENT 11]

    Pages 1 - 8

    RATING REPORTS

12. 12

    12.1. OVERVIEW OF RATING POLICY ISSUES

    Catherine Temple / Grant McInman
    Revenue Strategy Manager, Treasury / Group Manager, Data Services	2 November 2005

    Providing an overview of the key rating issues for the Long Term Council Community Plan for 2006-2016.

    Recommending that the:

    1. general rate for 2006/2007 increase by at least the expected rate of inflation
    2. next step of the general rate differential strategy be applied in 2006/2007
    3. $95 uniform annual general charge in the general rate be retained for 2006/2007
    4. refuse collection targeted rate be increased
    5. Central Business District (CBD) targeted rate on CBD non-residential ratepayers be increased to match the decrease in that group's general rate
    6. four targeted rates for transport, open spaces and volcanic cones, community development and housing, and heritage and urban design be increased for 2006/2007 by the expected rate of inflation
    7. due dates for Auckland City's rate instalments in 2006/2007 be brought forward by one month and that rate instalments be moved to a four instalment pattern.

    [ATTACHMENT 12.1]

    Pages 1 - 24

    12.2. NOTICE OF MOTION : RATES PARAMETERS

    Doug Armstrong
    Councillor	21 October 2005

    Advising that it is important to provide guidelines to officers on overriding considerations; the most important of which is the capacity to increase rates in the 2006/2007 year.

    Recommending that officers be instructed to prepare papers on the basis that rate increases for the 2006/2007 year be kept within the rate of inflation.

    [ATTACHMENT 12.2]

    Pages 1 - 2

13. DEVELOPMENT CONTRIBUTIONS POLICY FOR 2006: UPDATE ON EXPECTED CHANGES

    G Marr / M Dendale
    Project Manager / Manager Financial Contributions	27 October 2005

    Proposing that the development contributions policy is extended through the introduction of a new activity to recover growth costs, such as transport; a review of the charges for activities already included in the policy (community amenities, parks – community and reserves, and stormwater as these charges are expected to increase); and the extension to the policy to recover the growth costs relating to the proposed new library building for Waiheke Island. The expected changes to the policy continue the incremental improvement of Auckland city's approach to funding growth.

    Recommending that the committee notes that work is underway to extend the development contributions policy to recover more of the growth costs for the activities included in the existing policy, and to include charges for a new transport activity. Further, to note that work is underway to extend the development contributions policy to include recovery of the growth component of the proposed library building for Waiheke Island.

    [ATTACHMENT 13]

    Pages 1 - 10

14. 2006-2016 LONG TERM COUNCIL COMMUNITY PLAN (LTCCP) POLITICAL PROCESS

    Lee Manaia
    Committee Manager	17 October 2005

    Reporting on the proposed consultation, submission and hearings processes for the 2006-2016 long-term council community plan.

    Recommending that the time-line and processes be adopted, the information booths continue at shopping centres and local markets and that stakeholder forums be held as set out in the report. Furthermore, that the hearings process under Option A of the report be adopted.

    [ATTACHMENT 14]

    Pages 1 - 12