APOLOGIES

There were no apologies.

EXTRAORDINARY BUSINESS

CARRIED

CARRIED

CARRIED

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

The Chief executive gave a presentation regarding the long-term vision for Auckland City. The General manager finance also provided a graph entitled "Cumulative rate increases versus CPI increases" which included the targeted rates.

[ATTACHMENT 3A and 3B]

1. That for Auckland City to become a successful global city, the council needs to have a shared long-term vision with the community and a robust strategic plan setting out clear priority strategies to achieve the long-term vision.
2. That it is proposed to carry out a rolling programme of strategic assessments of the council's activities over the next four years to ensure limited resources are focused on what is important and to achieve efficiencies and productivity increases.
3. The significant opportunities and challenges facing Auckland, in particular:
   • the challenges arising from the continued strong population growth, the historic underinvestment in infrastructure and the need to fund strategies that will ensure Auckland progresses towards the shared long term sustainable direction;
   • the range of possible funding levers that can be used, provided they are fair, equitable and appropriate in the circumstances.

CARRIED

SUMMARISED 10 YEAR PROJECTIONS OF SOME KEY PARAMETERS AFFECTING AUCKLAND CITY

The General manager arts, community and recreation gave a presentation regarding items 4, 5 and 6 of the agenda.

[ATTACHMENT 4A]

Councillor Simpson also tabled a paper outlining statistics regarding the position of the Ports of Auckland in relation to other ports in the country.

[ATTACHMENT 4B]

The Chairman moved:

That the committee note, and consider in their deliberations as part of the development of the Long Term Council Community Plan, projections of key variables affecting Auckland City, and 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 sustainability
• risks to the health of our population.

Councillor Raffills moved the following amendment which was voted on in parts:

That the following bullet points be added to the projections of key variables:

• Affordability of rates and taxes.

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

Cr Faye Storer was absent.

The amendment was declared LOST by 13 votes to 6.

• Researching sustainable funding sources.

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

The amendment was declared LOST by 11 votes to 9.

• 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
• increased emphasis on environmental sustainability
• risks to the health of our population.
• increased emphasis on social sustainability

CARRIED

OVERVIEW OF THE FUTURE AUCKLAND COMMUNITY OUTCOMES

CARRIED

UPDATE: PROGRESS TOWARDS A STRATEGIC DIRECTION FOR AUCKLAND CITY

CARRIED

LEADING IN URBAN SUSTAINABILITY

The Chairman moved:

1. That the report of His Worship the Mayor and Deputy Mayor, Cr Hucker, dated 8 November 2005 entitled "Leading in Urban Sustainability" be received with the following amendments:
   • (agenda page 12) - 5.2(d) – change "Auckland Housing Forum" to "National Homelessness Forum"
   • (agenda page 13) – 5.3(b) – add an 's' to the word "partner" to read as follows: Demonstration project partners.…
   • (agenda page 14) – add an l) implement a homeless action plan
   • (agenda page 23) – 8.3 (c) add in "gay, lesbian and transgender community."
2. That the Environment Heritage and Urban Form Committee has an additional priority of a commitment to a landscape assessment of the isthmus to be completed in the 2006/2007 and 2007/2008 years.

Councillor Armstrong moved the following amendment:

3. That the Leading in Urban Sustainability report be referred to 15 December 2005 Annual Plan Direction Setting meeting for discussion and possible adoption.

CARRIED

The Chairman put the following substantive motion:

1. That the report of His Worship the Mayor and Deputy Mayor, Cr Hucker, dated 8 November 2005 entitled "Leading in Urban Sustainability" be received with the following amendments:
   • (agenda page 12) - 5.2(d) – change "Auckland Housing Forum" to "National Homelessness Forum"
   • (agenda page 13) – 5.3(b) – add an 's' to the word "partner" to read as follows: Demonstration project partners….
   • (agenda page 14) – add an l) implement a homeless action plan
   • (agenda page 23) – 8.3 (c) add in "gay, lesbian and transgender community."
2. That the Environment Heritage and Urban Form Committee has an additional priority of a commitment to a landscape assessment of the isthmus to be completed in the 2006/2007 and 2007/2008 years.

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

   For the Amendment:	Against the Amendment:
   Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey 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 Bill Christian Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills

   The motion was declared CARRIED by 13 votes to 7.

3. That the Leading in Urban Sustainability report be referred to 15 December 2005 Annual Plan Direction Setting meeting for discussion and possible adoption.

A show of hands was called for which resulted in 19 votes cast for the resolution and 1 against. The motion was declared CARRIED by 19 to 1.

LONG TERM COUNCIL COMMUNITY PLAN

The General manager finance gave a presentation regarding items 8 to 13 of the agenda.

[ATTACHMENT 8A]

CARRIED

OPERATIONAL EXPENDITURE 2006/2007 TO 2008/2009

CARRIED

CAPITAL EXPENDITURE FUNDING FOR THE 2006-2016 LTCCP

The Chairman moved:

1. That the 'master list' contained in Appendix I of the Financial strategy manager's report dated 3 November 2005 summarising potential new capital expenditure projects across council at various stages of investigation that have some alignment with the strategic vision being developed by council be adopted.
2. That officers report back to the next Annual Plan Direction Setting meeting on 15 December 2005 with:
   1. a first cut of alternative costed scenarios incorporating smaller prioritised subsets of the master list and 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 capital expenditure projects approved by council in June 2005 as well as the costed scenarios.
3. That in order to minimise future general rates increases, the report under recommendation B consider the following funding sources:
   1. increasing future charitable payments from Metrowater over and above the $5 million per annum currently budgeted
   2. utilising the $30 million strategic asset fund
   3. possible issuance of approximately $200 million redeemable preference shares ("RPS") supported by future Auckland International Airport Limited (AIAL) dividends
   4. ordinary borrowings supported by targeted rates increases.

Councillor Armstrong moved the following amendment:

Reinstate the officer's recommendations for C (iii) and (iv) and add a new (v) being:

3. partial or full sale of council's $300 million shareholding in Auckland International Airport to fund high-priority income producing strategic capital expenditure projects
4. alternatively, if council chooses to retain the Auckland International Airport Limited (AIAL) shareholding, issuance of approximately $200 million redeemable preference shares ("RPS") supported by future AIAL dividends
5. that agreement to issue redeemable preference shares only proceed when council has full assurance it will not affect its ability to sell the shares or use them as collateral to secure loans.

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

Voting in the division was TIED with 10 votes for and against. The Chairman exercised his casting vote against the amendment. The amendment was declared LOST by 11 votes to 10.

Councillor Millar moved the following amendment:

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

Voting in the division was TIED with 10 votes for and against. The Chairman exercised his casting vote for the amendment. The amendment was declared CARRIED by 11 votes to 10.

That in order to optimize the return on the water and wastewater tariff and gain the statutory powers associated with a rate, Metro Water Limited be structured as a Council Controlled Stand Alone Business Unit.

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

Cr Faye Storer abstained from voting.

The amendment was declared LOST by 15 votes to 4, with 1 abstention.

At this point the Chairman put the substantive motion, however further discussion resulted in the following amendment being put to the substantive motion:

Councillor Armstrong moved the following amendment:

That C. (iv) be replaced with the following

C. (iv) ordinary borrowings supported by rates increases for items where the income exceeds the borrowing costs.

LOST

The Chair put the following substantive motion in parts:

CARRIED

3. That in order to minimise future general rates increases, the report under recommendation B consider the following funding sources:
   1. increasing future charitable payments from Metrowater over and above the $5 million per annum currently budgeted and that any charitable payment be targeted for stormwater upgrades

   CARRIED

   2. utilising the $30 million strategic asset fund

   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 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 Bill Christian Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills

   Cr Richard Simpson was absent.

   The motion was declared CARRIED by 12 votes to 7.

   3. possible issuance of approximately $200 million redeemable preference shares ("RPS") supported by future Auckland International Airport Limited (AIAL) dividends

   CARRIED

   4. ordinary borrowings supported by targeted rates increases.

   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 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 Bill Christian Cr Linda Leighton Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills

   The motion was declared CARRIED by 13 votes to 7.

The meeting adjourned at 3:07pm and reconvened at 3:25pm.

FOUR LEVERS

CARRIED

The Chairman moved:

1. That it be noted:
   1. That the higher property values provided by the 2005 citywide revaluation will not increase rate revenue but will redistribute rates between ratepayers.
   2. That growth in the rating base over 2005/2006 (from new properties and improvements to existing properties) will increase the rates revenue in 2006/2007 (as it always does).
2. That the general rate for 2006/2007 be set to meet Auckland City's budget requirements; this will mean that the general rate will have to increase by at least the expected rate of inflation for 2006/2007 to keep its level constant in real terms (inflation for 2006/2007 is currently estimated at 3.1%).
3. That the next step of the general rate differential strategy be applied in 2006/2007.
4. That the $95 uniform annual general charge (UAGC) in the general rate be retained for 2006/2007, to provide greater stability in rates incidence as the effects of the 2005 revaluation flow through to the 2006/2007 rates.
5. That the refuse collection targeted rate be increased to cover the identified increases in refuse collection costs pending alternative revenue sources being considered by the Works & Services Committee.
6. That the Central Business District (CBC) targeted rate on CBD non-residential ratepayers be increased to match the decrease in that group's general rate, in line with the CBD targeted rate policy.
7. That the 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, (currently estimated at 3.1% for 2006/2007).
8. That Auckland City should use targeted rates strategically to get optimal benefit from them; to facilitate this, the specific circumstances and triggers for establishing a new targeted rate need to be clearly identified and stated in the revenue and financing policy.
9. That the due dates for Auckland City's rate instalments in 2006/2007 be brought forward by one month (first instalment would be due 20 August 2006), and that rate instalments be moved to a four instalment pattern from 2006/2007 (that is, 20 August, 20 November, 20 February, 20 May).

Councillor Milne moved the following amendment:

Replace resolution B with the following:

2. That the general rate for 2006/2007 be set to meet Auckland City's budget requirements, and that this requirement be kept within the expected rate of inflation for 2006/2007 (currently estimated at 3.1%) and that any increase be collected by way of increasing the uniform annual general charge.

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

The amendment was declared LOST by 14 votes to 6.

Councillor Mulholland moved the following amendment:

Replace resolution D with the following words:

4. That the uniform annual general charge be increased for 2006/2007 to $195 with the inflation rate increase incorporated in this and the variable rate to be reduced as necessary to balance the rate take.

LOST

Councillor Leighton moved the following amendment:

That resolution G be amended to delete the targeted rate for housing as follows:

7. That the three targeted rates for transport, open spaces and volcanic cones, heritage and urban design remain at the same level as for 2005/2006 and that the targeted rate for community development and housing be terminated.

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

The amendment was declared LOST by 13 votes to 7.

Councillor Northey moved the following amendment:

That resolution D be replaced as follows:

4. That the decision about the uniform annual general charge be deferred to a later meeting to allow its implications and impacts to be fully considered.

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

The amendment was declared LOST by 11 votes to 9.

The Chairman put the following substantive motion in parts:

1. That it be noted:
   1. That the higher property values provided by the 2005 citywide revaluation will not increase rate revenue but will redistribute rates between ratepayers.
   2. That growth in the rating base over 2005/2006 (from new properties and improvements to existing properties) will increase the rates revenue in 2006/2007 (as it always does).
2. That the general rate for 2006/2007 be set to meet Auckland City's budget requirements; this will mean that the general rate will have to increase by at least the expected rate of inflation for 2006/2007 to keep its level constant in real terms (inflation for 2006/2007 is currently estimated at 3.1%).
3. That the next step of the general rate differential strategy be applied in 2006/2007.

CARRIED

4. That the $95 uniform annual general charge (UAGC) in the general rate be retained for 2006/2007, to provide greater stability in rates incidence as the effects of the 2005 revaluation flow through to the 2006/2007 rates.

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

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

   Voting in the division was TIED with 10 votes for and against. The Chairman exercised his casting vote for the motion. The motion was declared CARRIED by 11 votes to 10.

5. That the refuse collection targeted rate be increased to cover the identified increases in refuse collection costs pending alternative revenue sources being considered by the Works and Services Committee.
6. That the Central Business District (CBD) targeted rate on CBD non-residential ratepayers be increased to match the decrease in that group's general rate, in line with the CBD targeted rate policy.

CARRIED

DEVELOPMENT CONTRIBUTIONS POLICY FOR 2006: UPDATE ON EXPECTED CHANGES

CARRIED

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

The Chairman moved:

1. That the time-line and processes as set out in the attachments to the report from the Committee manager dated 17 October 2005 be adopted.
2. That information booths promoting the draft plan continue at shopping centres and local markets to increase awareness and encourage participation in the consultation and submission process for the long-term council community plan.
3. That the following stakeholder forums be held:
   1. Ahi kaa (iwi) x 3 – to be hosted by the Pou Tahuhu (Iwi relationships councillor) and staff.
   2. Pasifika fono x 3 – to be hosted by a committee chairperson and staff in conjunction with the Ministry of Pacific Island Affairs. The first of the fono will be for Pacific Island Church Ministers with the second two fono open to pacific peoples at the Fickling Convention Centre and Glen Innes Community Centre
   3. Business Forum – to be hosted by Mayor, Deputy Mayor and Chairman, Finance & Corporate Business Committee with representatives from the Employers Manufacturers Association, Auckland Chamber of Commerce, Property Council and Heart of the City
   4. Public and community board forums x 3 – to be hosted by a committee chairperson and staff in the Town Hall, Fickling Convention Centre and the Glen Innes Community Centre
   5. Asian forum - to be hosted by a committee chairperson and staff in conjunction with the Asian Network Steering Group
   6. Youth forum – to be hosted by a committee chairperson and staff, inviting representatives from each of the secondary and tertiary institutions throughout the city along with the Auckland City Youth Council
   7. One union forum.
4. That the following hearings process be adopted, ie: that hearings be scheduled on the following basis: (details of the process and locations be determined once submissions have been received)
   1. over three days from Tuesday 6 June to Thursday 8 June 2006
   2. daytime hearings be scheduled from 9.30am to 4.30pm
   3. one evening hearing be scheduled from 5.30pm to 8.30pm
   4. deliberations are held on Friday 9 June 2006 from 9.30am to 1pm in the Town Hall or earlier, if the hearing of submissions finishes earlier.
5. That the committee general manager in conjunction with the committee manager determine the timing for individual, community board and business submitters.
6. That no ordinary scheduled committee meetings be held during June 2006 due to the time the draft plan submissions, hearings and combined committees processes take in June.

Councillor Mulholland moved the following amendment:

That resolution B be deleted.

LOST

Councillor Raffills moved the following amendments:

Amend C. (ii) and (iv) as follows:

2. One only Pacific Island fono.

A show of hands was called for which resulted in 9 votes cast against the resolution and 8 for. The motion was declared LOST by 9 to 8.

4. The public and community board forum proposed to be held at the Glen Innes Community Centre be held at a venue in Eastern Bays.

LOST

Councillor Armstrong moved the following amendment:

Add the following to resolution C:

8. The major 150 ratepayers (dollar value) or their representatives, to be hosted by The Mayor, Deputy Mayor, Chairman of Finance & Corporate Business Committee and General Managers.

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

Cr Neil Abel and Cr Christine Caughey were absent.

Voting in the division was TIED with 9 votes for and against. The Chairman exercised his casting vote against the amendment. The amendment was declared LOST by 10 votes to 9.

The Chairman put the following substantive motion:

CARRIED

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

CARRIED

There being no further business the Chairman declared the meeting closed at 5:30 pm.