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AGENDA ATTACHMENTS

I hereby give notice that an extraordinary Annual Plan Direction Setting meeting of the

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

   An apology has been received from Councillor Northey for lateness.

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-
   (a)	The local authority by resolution so decides; and
   (b)	The presiding member explains at the meeting at a time when it is open to the public,-
   	(i)	The reason why the item is not on the agenda; and
   	(ii)	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,-
   (a)	That item may be discussed at that meeting if-
   	(i)	That item is a minor matter relating to the general business of the local authority; and
   	(ii)	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
   (b)	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. RATES POSTPONEMENT AND EXTEND REBATE SCHEMES

   G Webb
   Financial policy analyst	29 November 2006

   Reporting on the proposal to modify the rates postponement scheme to make it accessible to most ratepayers that own their home, not just those suffering financial hardship. Also, officers do not propose any changes to the rates rebate scheme for 2006/2007, however, the expected surplus for this period is currently around $500,000.

   Recommending that officers modify the rates postponement policy for financial hardship so that the qualifying criterion is based entirely on the ratepayer's equity in the property and not just those experiencing financial hardship, and that the requirement to pay the first $520 of rates is made optional; that provided the forecast extended rates rebate surplus for 2006/2007 continues along current trends, the allowable income be increased for 2007/2008 to utilise more of the budgeted funding.

   Further recommending that the committee notes that officers will finalise the details of the proposed rates postponement scheme, and report on the level of the expected surplus for 2006/2007 rates rebate scheme and the level that the allowable income could be increased to for 2007/2008 to the March 2007 Combined Committees.

   [ATTACHMENT 3]

   Pages 1 - 8

4. REFUSE COLLECTION TARGETED RATE - FUNDING WASTER MINIMISATION INITIATIVES

   G Webb,
   Financial policy analyst	28 November2006

   Reporting on a process that would allow any large-scale residential blocks with an approved rubbish collection service to opt out of the council's rubbish collection service. Those properties would be charged the full refuse collection targeted rate, but it would be overlaid with a new remission policy that remits the rubbish component of the charge.

   This report also investigates options for keeping the refuse collection targeted rate at $168 per service for 2007/2008, although officers support the fully funded option for the targeted rate to be $191.

   Recommending that the committee agree that any large-scale residential blocks with an approved rubbish collection service be allowed to opt out of Auckland City's rubbish collection service from 1 July 2007; that properties that opt out may pay the refuse collection targeted rate, but that a remission policy be introduced to remit the cost of Auckland City's rubbish collection service from their targeted rate. Further recommending that the committee note the draft remission policy will be included in the draft 2007/2008 Annual Plan and amendments to the LTCCP for consultation. Also recommending that the committee confirm that the refuse collection targeted rate will continue to fully fund the costs of Auckland city's refuse services.

   [ATTACHMENT 4]

   Pages 9 - 18

5. THE RATING OF UTILITY NETWORKS

   R Latimer / G Webb
   Financial policy analysts	14 November 2006

   Reporting on the arguments put forward in favour of either exempting utility networks from all rates; exempting utility networks from all targeted rates; or setting a specific differential for utility networks that is lower than the differential applied to other non-residential rating units.

   Recommending that the committee confirm that there will be no change to the current method of rating utility networks.

   [ATTACHMENT 5]

   Pages 19 - 24

6. RURAL AND HAURAKI GULF ISLAND RATING ISSUES

   S Prebble / G Webb
   Policy analyst / Financial policy analyst	27 November 2006

   Reporting on concerns raised by Hauraki Gulf island ratepayers about the above average rates increases they experienced in 2006/2007 following the 2005 property revaluation, examining options for addressing these concerns through changes to Auckland City's rating policy.

   Recommending that the committee note that officers do not recommend any change to the differential policy for rural and Hauraki Gulf island properties. Further, that the committee agrees that officers prepare draft policies to be included for consultation in the draft 2007/2008 Annual Plan as follows:

   1. a postponement policy for commercially farmed land
   2. a postponement policy for Great Barrier island businesses
   3. a remission policy for private land voluntarily set aside for conservation purposes.

   Officers will report to the March 2007 Combined Committees meeting on the impacts of the recommended policies and any implementation issues that may arise, including the draft policy wording for the Annual Plan.

   [ATTACHMENT 6]

   Pages 25 - 46

7. INTERGENERATIONAL EQUITY AND THE SUSTAINABLE DEBT POLICY

   R Tucker
   Policy analyst, Treasury	16 November 2006

   Providing further information on how changes could be made to the debt policy to achieve a more optimal balancing of intergenerational equity and financial prudence.

   Recommending that the committee agree that funding of capital expenditure from the "core rates surplus" be phased out and that capital expenditure that was to have been paid for by the surplus be funded by borrowings to help deliver improved intergenerational funding. Further recommending that officers report back to March 2007 Combined Committees on the updated 2007/2008 budget and long term forecasts.

   [ATTACHMENT 7]

   Pages 47 - 82

8. UPDATE ON BUDGETS FOR 2007-2008

   S Ross / D Jeffrey
   Corporate planning manager /	November 2006

   Reporting on the 2007/2008 budgets. To maintain a net operating surplus of approximately $44 million as outlined in the Long-term council community plan, the council would be required to approve an overall rate increase of approx 8 percent. Suggesting four levers to achieve the councillors request of a balanced budget with an average residential rate increase of 4 percent.

   Recommending that officers report to the March 2007 Combined Committees on a draft 2007/2008 budget confirming the total requested increase in net operating expenditure.

   Further recommending that officers report to the February 2007 Finance and Corporate Business Committee meeting on initiatives for commercial town centre cleaning; broadband and council portal, Aotea precinct (including Town Hall and new theatre initiative) and grant assistance to NZ Bio/Auckland, Auckland Philharmonia Orchestra, Auckland Festival Trust, Stardome Observatory, Auckland Netball Centre and major concerts in the Auckland Domain.

   [ATTACHMENT 8]

   Pages 1 - 8

9. ANNUAL REVALUATIONS

   J Wells
   Manager valuation and master data	28 November 2006

   Reviewing the frequency of revaluations to evaluate the effect of moving from triennial revaluation to annual revaluation.

   Recommending that the interval between revaluations be maintained at three years.

   [ATTACHMENT 9]

   Pages 83 - 92

10. FUNDING MECHANISMS FOR FUTURE PERFORMING ARTS PRODUCTIONS AND COMMERCIAL MUSICAL THEATRE

    L Rhodes
    Policy analyst	24 November 2006

    This report will now be considered under the Confidential section of the meeting. Please refer to Item 19 of this agenda.

11. AUCKLAND FESTIVAL TRUST - REQUEST FOR ADDITIONAL OPEX GRANT 2007/2008 AND 2008/2009

    L Redshaw
    Senior business partnership manager	8 November 2006

    Reporting on a request by the Auckland Festival Trust for further financial assistance of $200,000 per annum in 2007/2008 and 2008/2009 or a one-off payment of $400,000 in the 2009 year. This will go towards a modest increase in programme expenditure and further consolidation of infrastructure and provide protection against rising costs.

    Recommending that the committee defer its decision for additional funding to the Auckland Festival Trust for the 2008 and 2009 years until after the Auckland Festival AK07, noting that the proposed Auckland Regional Amenities Funding Bill 2006 may remove the need for Auckland City to commit to extra funding. Furthermore, that officers report back to the Arts, Culture & Recreation Committee in mid 2007 regarding whether increased funding should be considered.

    [ATTACHMENT 11]

    Pages 93 - 100

12. NEW THEATRE INITIATIVE - REQUEST FOR ADDITIONAL OPEX GRANT 2007/2008 AND SUBSEQUENT YEARS

    L Redshaw
    Senior business partnership manager	8 November 2006

    Reporting on a request by the New Theatre Initiative (NTI) project seeking an additional $110,000 (for a total of $250,000) in 2007/2008 to assist in the increased activity required towards lodging a resource consent to progress the project as required.

    Recommending that the committee agree that the additional funding request for the sum of $110,000 in 2007/2008 (total of $250,000) towards the increased operating costs of the Flexiform theatre project costs be referred to the March 2007 Combined Committees meeting for consideration with all other funding requests.

    [ATTACHMENT 12]

    Pages 101 - 104

13. STARDOME OBSERVATORY AND PLANETARIUM REDEVELOPMENT PROPOSAL

    L Redshaw
    Senior business partnership manager	13 October 2006

    Reporting on a request by Stardome for $865,000 to assist in a major upgrade of the planetarium, namely the installation of "full dome technology" at the Stardome Observatory.

    Recommending that the committee agree that the sum of $865,000 towards the cost of the upgrade of the planetarium to full-dome technology be referred to the March 2007 Combined Committees for consideration with all other new funding requests.

    [ATTACHMENT 13]

    Pages 105 - 110

14. SPORT AUCKLAND REQUEST FOR ADDITIONAL OPERATIONAL FUNDING

    S Rimmer
    Acting Team leader recreation	24 November 2006

    Reporting on a request from Sport Auckland for a grant increase of $10,000 per annum in recognition of the increased work and cost of delivering programmes in education settings, physical activity initiatives, early childhood and green prescription community programmes. Furthermore, they also request additional grants for 2007/2008, 2008/2009 and 2009/2010 to enable them to deliver on their role as a key partner in the implementation of Active Auckland.

    Recommending that additional funding request from Sport Auckland of $48,000 in 2007/2008 and $49,500 in 2008/2009 and $51,500 in 2009/2010 to deliver four new priority projects be agreed and identified through the Active Auckland Plan be referred to the March Combined Committees meeting for consideration with all other funding requests.

    [ATTACHMENT 14]

    Pages 111 - 118

15. ENVIRONMENTAL HEALTH FEES BENCHMARKING

    L Greenwood
    Business Manager, ACE	18 October 2006

    This item went before the Planning and Regulatory Committee at its meeting held on 9 November 2006 where it was resolved, inter alia as follows:

    "That the information contained in the report of the Business Manager Auckland City environments dated 18 October 2006, be reported to the Annual Plan Direction Setting meeting, including the recommendation that the fee for a brothel licence be reduced to $566.00."

    Recommending that the fee for the brothel licence be reduced to $566.00.

    [ATTACHMENT 15]

    Pages 119 - 124

16. PROPOSED FEE INCREASE - AUCKLAND CITY ENVIRONMENTS AND CITY PLANNING

    J Oxley / P Pirrit
    Group Manager, Auckland City Environments / Group manager, City planning	26 November 2006

    Advising of a proposal to increase fees in line with Consumer Price Index increases. In addition, also proposing to increase deposits for resource consents and dog registrations.

    Recommending that the proposed increases to fees be accepted.

    [ATTACHMENT 16]

    Pages 125 - 128

17. COMMUNITY LIBRARIES - EXTENSION OF SUNDAY SERVICE

    A Dobbie
    Group Manager Libraries	28 November 2006

    Reporting on a request to consider opening extra community libraries on Sundays.

    Recommending that the information and priorities regarding opening of additional community libraries on Sundays be referred to March Combined Committees for consideration with all other new funding requests.

    [ATTACHMENT 17]

    Pages 129 - 135

18. REVIEW OF SLIPS FUNDING

    M Giddey
    Ward manager	29 November 2006

    At the Western Bays Community Board meeting held on Wednesday, 15 November 2006 it was resolved, inter alia as follows:

    3. That the Board again repeat its request for a full review of SLIPs funding in light of :

    1. the significant loss of purchasing power over the last 10 years (arguably of the order of 40%)
    2. the token increase that was made in 2006
    3. assurances that were given in the 2006 budget debate that there would be a review as part of the 2007/2008 annual plan process.

    Recommending that the above resolutions be considered.

    [ATTACHMENT 18]

    Pages 136 - 137

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

    Lee Manaia
    Committee Manager	1 December 2006
    Section 48, Local Government Official Information and Meetings Act 1987:

    The following motion is submitted for consideration:

    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 are as follows:

    Item No.	General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48(1) for the passing of this resolution
    C1.	Auckland Netball Incorporated - Request For Opex Funding 2007/2008	Good Reason to withhold exists under section 7	Section 48(1)(a)
    C2.	Funding Mechanisms for Future Performing Arts Productions and Commercial Musical Theatre	Good Reason to withhold exists under section 7	Section 48(1)(a)

    This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public are as follows:

    Item No.	Reason to withhold information under section 7
    C1.	To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.	[Section 7(2)(b)(ii)]
    C2.	To protect information where the making available of the information would disclose a trade secret.	[Section 7(2)(b)(i)]