Back to contents

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 Abel.

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. THE CHIEF EXECUTIVE'S OVERVIEW OF DIRECTION SETTING FOR THE 2007-2008 ANNUAL PLAN

   D Rankin
   Chief executive	1 November 2006

   Reporting on the strategic and funding contexts for the development of the 2007/2008 annual plan.

   Recommending that the Annual Plan Direction Setting meeting notes that the annual plan 2007/2008 should complement the direction set in the 2006-2016 Long-term council community plan. Further noting the range of issues that need to be considered in the development of the annual plan including:

   • issues regarding generates rates, targeted rates, grants and subsidies, development contributions, borrowings and charitable payments from Metrowater.
   • investigation of additional funding sources.
   • challenges the organisation faces in delivery the long-term visions and the long-term plan.
   • other current developments: regional governance, sustaining the Auckland Region Together, the Metro project action plan and the local government rates enquiry.

   This reports was not available at the time the agenda was compiled. The report will be circulated under separate cover.

   [ATTACHMENT 3]

   Pages

4. 2007/2008 ANNUAL PLAN  

   S Ross
   Corporate planning manager, Corporate Finance and Planning	10 November 2006

   Providing an overview of the budget process for the 2007/2008 Annual Plan. The projections for the 2007/2008 financial year published in the Long-term council community plan are the starting point for both operating and capital budgets.

   Recommending that officers report to the 11 December Annual Plan Direction Setting meeting on the 2007/2008 budgets and proposed rates increases.

   [ATTACHMENT 4]

   Pages 1 - 4

5. RATING POLICY ISSUES OVERVIEW

   B Latimer/S Prebble/G Webb
   Financial policy analyst/Policy analyst/Financial policy analyst, Treasury	25 October 2006

   Outlining some of the rating policy issues that are being addressed and will be subject to public consultation as part of the 2007/2008 annual plan process. Key issues include:

   • The rates adjustment to fund the cost increase for Auckland city providing its existing services.
   • The level of the uniform annual general charge.
   • The long-term general rate differential strategy.
   • The level of the targeted rates for refuse collection, transport, open spaces & volcanic cones, heritage & urban design, community development & housing and city development.
   • The targeted rate for the CBD upgrade
   • The level of the discount for early payment of rates.
   • The central government independent inquiry into local government funding issues.

   Recommending that the Annual Plan Direction Setting (APDS) meeting notes:

   • That the Auckland city's cost increase to deliver existing services for 2007/2008 will be based on the actual increase in its underlying costs and not on CPI.
   • That officers will provide recommendations to the December APDS meeting about increasing the targeted rates.
   • That officers will be recommending that the five value-based targeted rates be increased as required to recover the cost increases for providing existing services as well as funding new projects.
   • That officers will prepare a report for consideration at the March Combined Committees meeting on the draft rating and rates-related policies based on the agreed recommendations from these meetings.

   Further recommending that the long-term rate differential strategy be confirmed; that the uniform annual general charge be retained at $95; that the CBD targeted rate be used to fund the redevelopment of the CBD programme; and that the CBD targeted rate for redevelopment for CBD residential ratepayers be retained at a fixed charge of $52 per residential unit.

   [ATTACHMENT 5]

   Pages 5 - 22

6. RURAL AND HAURAKI GULF ISLAND RATING ISSUES

   S Prebble/G Webb
   Financial policy analyst/Policy analyst, Treasury	1 November 2006

   Summarising rating issues for rural and Hauraki Gulf Island properties and outlining some of the options that have been identified.

   Recommending that a full report be presented to the December 2006 Annual Plan Direction Setting meeting.

   [ATTACHMENT 6]

   Pages 23 - 30

7. UPDATE ON RATES POSTPONEMENT AND REBATES SCHEMES

   G Webb,
   Financial policy analyst, Treasury	2 November 2006

   Reporting on the rates postponement scheme and the extended rates rebate scheme for assistance to ratepayers suffering financial hardship.

   Recommending that the Annual Plan Direction Setting meeting note officers are considering reducing the requirement to pay the first $520 of rates and reducing the qualifying criteria for Auckland city's financial hardship postponement scheme. This matter will be reported to the March 2007 Combined Committees meeting. Further recommending that Auckland city not join the consortium's rates postponement scheme and that the maximum rebate be increased from $500 to $600 in 2006/2007 to utilise the expected $600,000 surplus due to lower than expected rebate applications.

   [ATTACHMENT 7]

   Pages 31 - 48

8. REMISSION AND POSTPONEMENT OF RATES ON MAORI FREEHOLD LAND

   S Prebble
   Policy Analyst, Financial & Revenue Strategy Financial Strategy, Treasury	19 October 2006

   Reporting on the Local Government Act requirement for local authorities to adopt a policy on the remission and postponement of rates on Maori freehold land (Section 102). Auckland City's current policy is to offer no remission or postponement of rates on this land. The Local Government Act requires that Maori be consulted appropriately and that the policy goes through a special consultative procedure. It is timely to review the present arrangements with a view to achieving a consistent, transparent and future-proof rating policy for Maori freehold land.

   Recommending that the council note that officers are drafting a policy on the remission and postponement of rates on Maori freehold land for consultation in the draft 2007/2008 Annual Plan and that further consultation will be undertaken with the three ahi kaa groups in November and December 2006. Noting that a full report on the matter will be presented to the March 2007 Combined Committee.

   [ATTACHMENT 8]

   Pages 49 - 62

9. TARGETED RATES FOR THE MUSEUM / MOTAT AND WYNYARD POINT / VIADUCT HARBOUR

   G Webb
   Financial Policy Analyst - Financial & Revenue Strategy Revenue Strategy, Treasury	16 October 2006

   Reporting on the merits of substituting the funding of two groups of expenditure currently paid for by existing general rates and targeted rates with two new targeted rates:

   • a museum targeted rate
   • a Wynyard Point/Viaduct Harbour targeted rate.

   Recommending that the Auckland War Memorial Museum and the Museum of Transport and Technology continue to be funded from the general rates. Noting that the benefits of a new the Wynyard Point/Viaduct Harbour are more compelling and that further work is required on the level of costs that should be levied exclusively on these properties for a report back to the 11 December Annual Plan Direction Setting meeting.

   [ATTACHMENT 9]

   Pages 63 - 70

10. INTERGENERATIONAL EQUITY AND THE SUSTAINBLE DEBT POLICY

    R Tucker
    Policy Analyst, Financial Strategy, Treasury	25 October 2006

    Providing an overview of the current debt policy and discussing issue of intergenerational equity which allows the use of debt to spread the funding of new capital works over the useful life of the asset created for funding.

    Recommending that officers report to the 11 December Annual Plan Direction Setting meeting regarding changes to the sustainable debt policy for incorporation in the draft 2007/2008 Annual Plan and amended Long-term council community plan.

    [ATTACHMENT 10]

    Pages 71 - 76

11. 2007-2008 ANNUAL PLAN POLITICAL PROCESS

    L Manaia
    Committee Manager Democracy Services	3 October 2006

    Reporting on the proposed consultation, submission and hearings processes for the 2007-2008 draft annual plan.

    Recommending that the timeline and processes set out in the attachment to the Committee manager's report be adopted and that status quo of one month for the consultation period remain. Further recommending that the information booths continue and the listing the consultation to be undertaken with key stakeholder groups.

    [ATTACHMENT 11]

    Pages 77 - 92

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

    Lee Manaia
    Committee Manager	2 November 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.	Development Contributions: Policy Developments For 2007/2008	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)]
    	To prevent the disclosure or use of official information for improper gain or improper advantage.	[Section 7(2)(j)]