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1. APOLOGIES

   That the apology from Councillor Leighton for lateness be accepted.

   CARRIED

2. EXTRAORDINARY BUSINESS

   There was no extraordinary business.

3. GENERAL RATING POLICY FOR 2005/2006

   The Chairman moved:

   That the committee:

   Confirms a 2.7% inflation adjustment in the general rate.

   Notes that the implementation of the next step of the long-term differential strategy has already been confirmed.

   Reduces the uniform annual general charge from $189 to $95, with the difference being made up through the value based rate.

   Councillor Milne moved the following amendments:

   (i) That the Finance committee note that the tone and content of the mayor and deputy mayor's media releases and press conferences convey the clear impression that major decisions on rates and policy have already been made and that this appears to usurp the consultation processes required by the legislation and accordingly the Finance committee request that the chief executive seek a legal opinion on whether this is the case and act on the advice received. LOST

   (ii) That as a matter of policy the full council be briefed on major rating and policy announcements prior to them being released to the public and media. CARRIED Councillor Armstrong moved the following amendments:

   (iii) That (i) be amended to add the words "that this be levied by increasing the uniform annual general component charge of the rate". A division was called for, voting on which was as follows: For the Amendment: Against the Amendment: Cr D Armstrong Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Richard Simpson Cr Faye Storer His Worship the Mayor Cr Vern Walsh The amendment was declared LOST by 14 votes to 6.

   (iv) That (iii) be deleted. A division was called for, voting on which was as follows: For the Amendment: Against the Amendment: Cr D Armstrong Cr Christine Caughey Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Richard Simpson Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Faye Storer His Worship the Mayor Cr Vern Walsh The amendment was declared LOST by 12 votes to 8.

   The Chairman put the following substantive motion in parts:

   1. That the committee:

      Confirms a 2.7% inflation adjustment in the general rate.

      A division was called for, voting on which was as follows: For the Motion: Against the Motion: Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Richard Simpson Cr Faye Storer His Worship the Mayor Cr Vern Walsh Cr D Armstrong Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills The motion was declared CARRIED by 14 votes to 6.

      (ii) Notes that the implementation of the next step of the long-term differential strategy has already been confirmed. CARRIED

      (iii) Reduces the uniform annual general charge from $189 to $95, with the difference being made up through the value based rate. A division was called for, voting on which was as follows: For the Motion: Against the Motion: Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Faye Storer His Worship the Mayor Cr Vern Walsh Cr D Armstrong Cr Christine Caughey Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Richard Simpson The motion was declared CARRIED by 12 votes to 8.

   2. That as a matter of policy the full council be briefed on major rating and policy announcements prior to them being released to the public and media.

   CARRIED

   The Chairman adjourned the meeting at 11.10am and reconvened the meeting at 11.20am.

4. SUMMARY OF RATING POLICY IMPACTS

   The Chairman moved:

   That the information from the Senior Analyst, Treasury and the Financial Policy Analyst, Treasury dated 9 February 2005 be received.

   Councillor Milne moved the following amendments:

   (i) That officers be asked to present a budget to Combined Committees that limits any rates increase to within the rate of inflation.

   A division was called for, voting on which was as follows: For the Amendment: Against the Amendment: Cr D Armstrong Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Richard Simpson Cr Faye Storer His Worship the Mayor Cr Vern Walsh The amendment was declared LOST by 14 votes to 6. (ii) That the following words be added - "noting that the officers advise that the rates increase being considered would result in a rates increase of approximately 10%. This is 3.5 times the expected rate of inflation and far greater than under the previous council." LOST

   The Chairman put the following substantive motion:

   That the information from the Senior Analyst, Treasury and the Financial Policy Analyst, Treasury dated 9 February 2005 be received.

   CARRIED

5. RATES REMISSION POLICIES AND DISCOUNT POLICY FOR 2005/2006

   The Chairman moved:

   That the committee confirm that a proposal for an extended rates rebate scheme to address the issue of assistance to low-income individual ratepayers be prepared.

   Councillor Millar moved the following amendment:

   (i) That the committee record its view that assistance to low income individuals to meet living expenses including rates is primarily the responsibility of central government and any policies of council shall not result in ratepayers with the similar valued residential properties paying different amounts of rates. A division was called for, voting on which was as follows: For the Amendment: Against the Amendment: Cr D Armstrong Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Faye Storer Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Richard Simpson His Worship the Mayor Cr Vern Walsh The amendment was declared LOST by 13 votes to 7. The Chairman put the following substantive motion: That the committee confirm that a proposal for an extended rates rebate scheme to address the issue of assistance to low-income individual ratepayers be prepared. A division was called for, voting on which was as follows: For the Motion: Against the Motion: Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Richard Simpson Cr Faye Storer His Worship the Mayor Cr Vern Walsh Cr D Armstrong Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills The motion was declared CARRIED by 14 votes to 6.

6. TARGETED RATES UPDATE AND OPTIONS

   The Chairman moved:

   That the committee:

   Confirms that the targeted rate for refuse collection continues to be based on a fixed amount per refuse collection service (currently estimated to be $129 per service) for 2005/2006.

   Requests that officers report to Combined Committees on the impact of removing the Waiheke Island transfer station targeted rate or retaining it at it's current level of $26.

   Confirms the adopted CBD targeted rate that captures the savings accrued to the CBD business community resulting from the adopted general rate differential strategy, to fund the redevelopment and revitalisation of the CBD.

   Confirms that the CBD targeted rate to apply to CBD residential ratepayers continues to be based on a fixed charge of $52 per residential unit in 2005/2006.

   Confirms that the targeted rates for transport, open space and volcanic cones and heritage and urban design be applied as value-based targeted rates based on the differential targets for the general rate.

   Notes that further work on the stormwater targeted rate will be deferred.

   Notes that the officers will continue to liaise with Newmarket business association on a streetscape upgrade for the Newmarket business centre.

   That the Mayor continue to work with Local Government New Zealand and the Government to identify and implement alternative sources of revenue in addition to rates.

   Councillor Armstrong moved the following amendment:

   (i) That (ii) be deleted and the officers recommendations be confirmed, i.e. that the Waiheke Island Refuse Station targeted rate be increased to $52. A division was called for, voting on which was as follows: For the Amendment: Against the Amendment: Cr D Armstrong Cr Linda Leighton Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Richard Simpson Cr Faye Storer His Worship the Mayor Cr Vern Walsh Cr Toni Millar was absent. The amendment was declared LOST by 14 votes to 5.

   (ii) That (v) be amended to read - "that any targeted rates adopted by council are levied on a uniform basis and not on value for reasons of equity." The above amendment was put by show of hands and declared LOST by 12 votes to 8. The Chairman put the following substantive motion in parts: That the committee: Confirms that the targeted rate for refuse collection continues to be based on a fixed amount per refuse collection service (currently estimated to be $129 per service) for 2005/2006. Confirms the adopted CBD targeted rate that captures the savings accrued to the CBD business community resulting from the adopted general rate differential strategy, to fund the redevelopment and revitalisation of the CBD. Confirms that the CBD targeted rate to apply to CBD residential ratepayers continues to be based on a fixed charge of $52 per residential unit in 2005/2006. Notes that further work on the stormwater targeted rate will be deferred. Notes that the officers will continue to liaise with Newmarket business association on a streetscape upgrade for the Newmarket business centre. That the Mayor continue to work with Local Government New Zealand and the Government to identify and implement alternative sources of revenue in addition to rates. CARRIED

   vii) Requests that officers report to Combined Committees on the impact of removing the Waiheke Island transfer station targeted rate or retaining it at it's current level of $26. CARRIED

   viii) Confirms that the targeted rates for transport, open space and volcanic cones and heritage and urban design be applied as value-based targeted rates based on the differential targets for the general rate. CARRIED

   The Chairman adjourned the meeting at 12.35pm and reconvened at 1.00pm.

7. TRANSPORT TARGETED RATE

   The Chairman moved:

   1. That the committee confirms the direction towards the introduction of a 5.0% targeted transport rate.
   2. That the committee request officers to review the list of projects in line with the decreased percentage in the rate and report the amended list back to Combined Committees in March 2005.

   Councillor Raffills moved the following amendments:

   (i) That a C be added - "that such a targeted rate only be implemented if all other external funding sources are exhausted and that there is overwhelming support from all major stakeholders including business demonstrated in the consultation process."

   (ii) That if overwhelming support is demonstrated such a targeted rate be equitably levied by way of a uniform charge rather than a value mechanism. A division was called for, voting on which was as follows: For the Amendment: Against the Amendment: Cr D Armstrong Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Richard Simpson Cr Faye Storer His Worship the Mayor Cr Vern Walsh The amendments were declared LOST by 14 votes to 6.

   Councillor Simpson moved the following amendment: (iii) That A be amended to read – "That the committee confirms the direction towards the introduction of a 5.5% targeted transport rate." LOST

   The Chairman put the following substantive motion:

   1. That the committee confirms the direction towards the introduction of a 5.0% targeted transport rate.
   2. That the committee request officers to review the list of projects in line with the decreased percentage in the rate and report the amended list back to Combined Committees in March 2005.

   CARRIED

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

   For the Motion:	Against the Motion:
   Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Richard Simpson His Worship the Mayor Cr Vern Walsh	Cr D Armstrong Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills

   Cr Faye Storer abstained from voting.

   The motion was declared CARRIED by 13 votes to 6, with 1 abstention.

8. OVERVIEW REPORT - OPEN SPACE & VOLCANIC CONES TARGETED RATE

   The Chairman moved:

   1. That the committee confirms the direction towards the introduction of a targeted rate for open space and volcanic cones equivalent to 1%.
   2. That the committee endorses the proposed targeted rate project list as a basis for the 1% targeted rate.

   Councillor Millar moved the following amendments:

   (i) That a C. be added - "that such a targeted rate only be implemented if all other external funding sources are exhausted and that there is overwhelming support from all major stakeholders including business demonstrated in the consultation process."

   (ii) That if overwhelming support is demonstrated such a targeted rate be equitably levied by way of a uniform charge rather than a value mechanism.

   The above amendments were put by show of hands and declared LOST by 13 votes to 7.

   The Chairman put the following substantive motion:

   1. That the committee confirms the direction towards the introduction of a targeted rate for open space and volcanic cones equivalent to 1%.
   2. That the committee endorses the proposed targeted rate project list as a basis for the 1% targeted rate.

   CARRIED

9. CITY DEVELOPMENT TARGETED RATE

   The Chairman moved:

   1. That the committee confirms the direction towards a targeted rate of 0.5% for heritage and urban design for incorporation into the draft annual plan.
   2. That detailed funding be considered at Combined Committees in March 2005.

   Councillor Leighton moved the following amendments:

   (i) That a C be added - "that such a targeted rate only be implemented if all other external funding sources are exhausted and that there is overwhelming support from all major stakeholders including business demonstrated in the consultation process."

   (ii) That if overwhelming support is demonstrated such a targeted rate be equitably levied by way of a uniform charge rather than a value mechanism.

   LOST

   The Chairman put the following substantive motion:

   1. That the committee confirms the direction towards a targeted rate of 0.5% for heritage and urban design for incorporation into the draft annual plan.
   2. That detailed funding be considered at Combined Committees in March 2005.

   CARRIED

10. THE ROLE OF AUCKLAND CITY IN ECONOMIC DEVELOPMENT, TOURISM AND MAJOR EVENTS

    The Chairman moved:

    1. That the Committee endorse a proactive approach to attracting, developing and retaining major events in Auckland City in view of the positive economic, social and cultural benefits to the city which such events can generate.
    2. That an additional $100,000 be added to the events promotion budget together with a reallocation of up to $200,000 from the existing events promotion budget that is carried out in a way that is not at the expense of smaller and local events, with the primary purpose of supporting the retention and growth of existing major events through assistance with compliance and ancillary costs such as barriers, signs and consents and the secondary purpose to attract new events leaving $621,632 available for existing events promotion.
    3. That it be noted the level of funding recommended for smaller events is the delegation of the Arts, Culture and Recreation Committee and that the Economic Development and Sustainable Business Committee does not advocate the reduction of funding for smaller events.
    4. That a further commitment of $223,000 be made for the Auckland Waterfront Festival Event in 2005/2006 to support the proposed Auckland Waterfront Festival.
    5. That the Committee also note that a proposal to provide $100,000 for council initiatives to support the development of the technology industry is included in the 2005/2006 budget for consideration at the Combined Committees meeting in March.
    6. That during the 2005/2006 financial year, further exploration be made to establishing a long term sustainable funding base for tourism and major events, including:

       (i) exploring rates or charges that are targeted at the infrastructure or costs generated by the tourism industry, and

       (ii) the concept of a targeted rate to achieve this being explored in consultation with affected parties.

       Councillor Milne moved the following amendment:

       (i) That A be amended to add the following words after endorsed… "the previous council's" and after the word generate… "recognising that inevitably some residents may be adversely affected but council need to have regard for the greater good of the city in reaching a decision on individual events."

       Councillor Hinchcliffe moved the following procedural motion:

       That the matter be put.

       CARRIED

       The amendment from Councillor Milne was put and declared LOST.

    The Chairman put the following substantive motion:

    1. That the Committee endorse a proactive approach to attracting, developing and retaining major events in Auckland City in view of the positive economic, social and cultural benefits to the city which such events can generate.
    2. That an additional $100,000 be added to the events promotion budget together with a reallocation of up to $200,000 from the existing events promotion budget that is carried out in a way that is not at the expense of smaller and local events, with the primary purpose of supporting the retention and growth of existing major events through assistance with compliance and ancillary costs such as barriers, signs and consents and the secondary purpose to attract new events leaving $621,632 available for existing events promotion.
    3. That it be noted the level of funding recommended for smaller events is the delegation of the Arts, Culture and Recreation Committee and that the Economic Development and Sustainable Business Committee does not advocate the reduction of funding for smaller events.
    4. That a further commitment of $223,000 be made for the Auckland Waterfront Festival Event in 2005/2006 to support the proposed Auckland Waterfront Festival.
    5. That the Committee also note that a proposal to provide $100,000 for council initiatives to support the development of the technology industry is included in the 2005/2006 budget for consideration at the Combined Committees meeting in March.
    6. That during the 2005/2006 financial year, further exploration be made to establishing a long term sustainable funding base for tourism and major events, including:

       (i) exploring rates or charges that are targeted at the infrastructure or costs generated by the tourism industry, and

       (ii) the concept of a targeted rate to achieve this being explored in consultation with affected parties.

    7. That council continuously seek to retain and enhance popular existing events enjoyed by the public of Auckland such as the Western Springs Speedway.

    CARRIED

11. ENHANCED ROLE OF COMMUNITY DEVELOPMENT FROM LEADING IN URBAN SUSTAINABILITY

    The Chairman moved:

    1. That the funding of 0.5% of the general rate for an enhanced role in community development be included in the draft annual plan.
    2. That officers be authorised to:

       Undertake further work with Housing New Zealand, the private sector and third party sector providers to determine the nature of joint venture and other partnership arrangements to increase the supply of affordable housing.

       Scope the community development initiatives listed as priorities for 2005/2006 in Leading in Urban Sustainability with a view to reporting back to Combined Committees in March 2005.

       Councillor Mulholland moved the following amendments:

       (i) That the following be added to A - "that such funding only be provided if there is overwhelming support from all major stakeholders including business demonstrated in the consultation and overwhelming support is demonstrated such funding be levied by way of a uniform charge mechanism rather than a value based mechanism."

       (ii) That affordable housing is a Central Government responsibility, accordingly Council's role be limited to supporting facilitation of affordable housing and this should not be funded through rates.

       LOST

    The Chairman put the following substantive motion:

    1. That the funding of 0.5% of the general rate for an enhanced role in community development be included in the draft annual plan.
    2. That officers be authorised to:

       Undertake further work with Housing New Zealand, the private sector and third party sector providers to determine the nature of joint venture and other partnership arrangements to increase the supply of affordable housing.

       Scope the community development initiatives listed as priorities for 2005/2006 in Leading in Urban Sustainability with a view to reporting back to Combined Committees in March 2005.

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

       For the Motion:	Against the Motion:
       Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Richard Simpson His Worship the Mayor Cr Vern Walsh	Cr D Armstrong Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Faye Storer

       The motion was declared CARRIED by 13 votes to 7.

    There being no further business the Chairman declared the meeting closed at 2:35pm.