MINUTES OF A MEETING OF THE *COMBINED COMMITTEES HELD ON WEDNESDAY, 7 MARCH 2007 AT 9.30 AM

1. APOLOGIES

   That the apology for non-attendance from Councillor Leighton, and Councillors Leighton, Millar, Mulholland, Sefuiva and Storer for lateness be accepted.

   CARRIED

2. CONFIRMATION OF MINUTES

   That the minutes of the *Combined Committees meeting held on Thursday, 22 June 2006 confirmed as a true and correct record.

   CARRIED

3. EXTRAORDINARY BUSINESS

   There was no extraordinary business.

   STRATEGIC OVERVIEW

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

   The Chief executive gave a presentation outlining the city's vision, issues and challenges for the draft 2007/2008 Annual Plan and the delivering of the Long-term council community plan.

   [ATTACHMENT 4A]

   The Chairman moved:

   That Combined Committees recommends to council:

   1. That it be noted that the Long-term council community plan 2006-2016 (LTCCP) was adopted by Combined Committees and Council in June 2006 and has set the strategic direction for the next 10 years, including commitment to significant investment in identified projects and service improvement initiatives to address the challenge of growth and accelerate progress towards achievement of the First City of the Pacific, long-term vision.
   2. That it be noted that the Annual Plan 2007/2008 should give effect to the direction set in the LTCCP. This includes:
      • ˇ refining planning for year two of the LTCCP
      • ˇ meeting our statutory obligations around public disclosure and consultation
      • ˇ engaging with the community about our plans and projects.
   3. That should the following changes to policy positions be accepted it be noted that an amendment to the Long-term council community plan is required in response to:
      • ˇ significant changes in policy positions on debt, development contributions, rates postponement and remission policies, and Maori freehold land
      • ˇ changes to a number of fees and charges including consent, inspection and registration fees.
   4. That the range of issues that need to be considered in the development of the annual plan be noted. These include:
      • ˇ that the draft budget, inclusive of recommended new initiatives, results in an overall rates increase of 2.7 per cent;
      • ˇ the growth issue for Auckland which must be managed based on the principles of sustainable development;
      • ˇ issues regarding rates, fees and charges, grants and subsidies, development contributions and debt;
      • ˇ investigation of additional funding sources: including tolling, regional petrol tax and other options for transport, tourism and the regional funding initiative for a range of facilities;
      • ˇ the challenges the organisation faces in implementation of the long-term vision and LTCCP, and in building its reputation as an organisation that provides value for money and consistent, high-quality customer service;
      • ˇ other current developments: regional governance, one plan, Auckland region's long-term sustainability framework, the Metro project action plan and the local government rates enquiry.

   Councillor Milne moved the following amendment - resolution D, bullet point one and adding a new resolution E - to read as follows:

   4. That the range of issues that need to be considered in the development of the annual plan be noted. These include:
      • ˇ that the draft budget, inclusive of recommended new initiatives, results in an overall rates increase of 2.7 per cent (as per officer recommended initiatives) versus 8% in the Long-term council community plan. This reduction is achieved by the following expedient measures:
        1. borrowing $23 million;
        2. failing to budget for the $15.5 million (approx) base operating surplus which has been a customary practice in past years;
        3. eliminating the Strategic Asset Fund that partially resulted from the sale of Airport shares;
   5. That it be noted:

      1. that the charitable payment of $18 million from Metrowater (for 2007/2008) agreed to in the Long-term council community plan is included in the draft 2007/2008 Annual Plan which will have the effect of requiring an increase in water charges.
      2. that the proposed debt policy will see borrowings reach a level of approximately $1.33 billion by 2015/2016.

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

   For the Amendment:	Against the Amendment:
   Cr Doug Armstrong Cr Bill Christian 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 Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Richard Simpson Cr Faye Storer His Worship the Mayor Dick Hubbard Cr Vern Walsh

   Cr Linda Leighton and Cr Penny Sefuiva were absent.

   The amendment was declared LOST by 12 votes to 6.

   Councillor Casey moved the following amendment to resolution D bullet point 4 - remove "including tolling" - to read as follows:

   • investigation of additional funding sources: regional petrol tax and other options for transport, tourism and the regional funding initiative for a range of facilities;

   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 Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Cr Richard Northey Cr Faye Storer	Cr Doug Armstrong Cr Christine Caughey Deputy Mayor, Cr Dr Bruce Hucker Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Richard Simpson His Worship the Mayor Dick Hubbard Cr Vern Walsh

   Cr Linda Leighton and Cr Penny Sefuiva were absent.

   The amendment was declared LOST by 10 votes to 8.

   The Chairman put the following substantive motion:

   That Combined Committees recommends to council:

   1. That it be noted that the Long-term council community plan 2006-2016 (LTCCP) was adopted by Combined Committees and Council in June 2006 and has set the strategic direction for the next 10 years, including commitment to significant investment in identified projects and service improvement initiatives to address the challenge of growth and accelerate progress towards achievement of the First City of the Pacific, long-term vision.
   2. That it be noted that the Annual Plan 2007/2008 should give effect to the direction set in the Long-term council community plan (LTCCP). This includes:
      • ˇ refining planning for year two of the LTCCP
      • ˇ meeting our statutory obligations around public disclosure and consultation
      • ˇ engaging with the community about our plans and projects.
   3. That should the following changes to policy positions be accepted it be noted that an amendment to the Long-term council community plan is required in response to:
      • ˇ significant changes in policy positions on debt, development contributions, rates postponement and remission policies, and Maori freehold land
      • ˇ  changes to a number of fees and charges including consent, inspection and registration fees.
   4. That the range of issues that need to be considered in the development of the annual plan be noted. These include:
      • ˇ that the draft budget, inclusive of recommended new initiatives, results in an overall rates increase of 2.7 per cent;
      • ˇ the growth issue for Auckland which must be managed based on the principles of sustainable development;
      • ˇ issues regarding rates, fees and charges, grants and subsidies, development contributions and debt;
      • ˇ investigation of additional funding sources: including tolling, regional petrol tax and other options for transport, tourism and the regional funding initiative for a range of facilities;
      • ˇ the challenges the organisation faces in implementation of the long-term vision and LTCCP, and in building its reputation as an organisation that provides value for money and consistent, high-quality customer service;
      • ˇ other current developments: regional governance, one plan, Auckland region's long-term sustainability framework, the Metro project action plan and the local government rates enquiry.

   CARRIED

5. STRATEGIC MILESTONE REVIEW FOR THE ANNUAL PLAN 2007/2008

   The Chairman moved:

   That it be a recommendation to council:

   That the revised strategic milestones attached at Appendix 1 of the report by the Senior strategic analyst dated 12 February 2007, be amended as follows and approved for inclusion in the Draft Annual Plan 2007/2008.

   Agenda page 19, number 24 add another bullet point as follows:

   • "Reducing charges for some users where appropriate".

   Councillor Caughey moved the following amendment - under Strategic Milestones City Development - agenda page 22 - amend number 2 a) by adding after "biodiversity aspects" the following:

   ".....and includes a landscape assessment of the built and natural environment."

   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 Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Richard Simpson Cr Faye Storer His Worship the Mayor Dick Hubbard Cr Vern Walsh	Cr Doug Armstrong Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills

   Cr Linda Leighton and Cr Penny Sefuiva were absent.

   The amendment was declared CARRIED by 13 votes to 5.

   The amendment became part of the substantive motion.

   Councillor Armstrong moved the following amendment:

   That it be a recommendation to council:

   That the revised strategic milestones attached at Appendix 1 of the report by the Senior strategic analyst dated 12 February 2007, and approved for inclusion in the Draft Annual Plan 2007/2008, be substantially modified to achieve the following budget objectives:

   1. the rates increase does not exceed the rate of inflation for the 2007/2008 financial year
   2. borrowing is not undertaken unless the business case indicates a favourable position for council;
   3. the cost of achieving the milestones are covered by compensatory savings.

   LOST

   The Chairman put the following substantive motion:

   That it be a recommendation to council:

   That the revised strategic milestones attached at Appendix 1 of the report by the Senior strategic analyst dated 12 February 2007, be amended as follows and approved for inclusion in the Draft Annual Plan 2007/2008.

   • Agenda page 19, number 24 add another bullet point as follows:

   "Reducing charges for some users where appropriate".

   • under Strategic Milestones City Development - agenda page 22 - amend number 2 a) by adding after "biodiversity aspects" the following:

   ".....and includes a landscape assessment of the built and natural environment."

   CARRIED

6. LEADING IN URBAN SUSTAINABILITY

   The Chairman moved:

   That it be recommendation to council:

   That the committees' priority activities be noted for 2007/2008.

   Councillor Milne moved the following amendments:

   That it be a recommendation to council:

   1. That sustainability be recognised as a core value of Auckland City and that it be embedded in all of its activities, in a common sense manner.

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

   For the Amendment:	Against the Amendment:
   Cr Doug Armstrong Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Richard Northey Cr Noelene Raffills Cr Richard Simpson Cr Faye Storer His Worship the Mayor Dick Hubbard Cr Vern Walsh	Cr Neil Abel Cr Glenda Fryer

   Cr Linda Leighton and Cr Penny Sefuiva were absent.

   The amendment was declared CARRIED by 16 votes to 2.

   The amendment became part of the substantive motion.

   2. That council notes that many of the standing committees' priority activities will automatically be achieved more effectively and efficiently in an ongoing pro-active way.

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

   For the Amendment:	Against the Amendment:
   Cr Doug Armstrong 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, Cr Dr Bruce Hucker Cr Richard Northey Cr Richard Simpson His Worship the Mayor Dick Hubbard Cr Vern Walsh

   Cr Linda Leighton and Cr Penny Sefuiva were absent.

   The amendment was declared LOST by 12 votes to 6.

   The Chairman put the following substantive motion:

   That it be recommendation to council:

   1. That the committees' priority activities be noted for 2007/208.
   2. That sustainability be recognised as a core value of Auckland City and that it be embedded in all of its activities, in a common sense manner.

   CARRIED

   2007/2008 BUDGET AND POLICIES

7. GENERAL MANAGER FINANCE OVERVIEW

   The General manager finance gave a presentation on the issues for consideration for the draft 2007/2008 Annual Plan.

   [ATTACHMENT 7]

   That the information presented by the General manager finance be received.

   CARRIED

8. 2007/2008 ANNUAL PLAN BUDGET UPDATE INCLUDING NEW UNFUNDED INITIATIVES

   The Chairman moved:

   That it be a recommendation to council:

   1. That the operating budget for 2007/2008 be accepted based on an overall rate increase of 3.6%, which includes all new budget initiatives recommended in Appendix 3, 4 & 5 be accepted as follows:

   Appendix 3 - non-discretionary
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards
   1	Align property boundaries with Land Information NZ (LINZ) information.	$60,000	$0 and ongoing
   2	City Planning restructure	$120,000	$120,000 and ongoing
   3	Civil Defence	$180,000	$255,000 in 2008/2009 and $260,000 in 2009/2010
   4	Filenet product	$75,000	$75,000 and ongoing
   5	HR service delivery model	$170,000	$170,000 and ongoing
   6	Mayoral Task Force on sustainable development	$600,000	$400,000 in 2008/2009 and for 2009/2010
   7	Programme Office implementation project	($116,000) - $720,000 additional expense offset by $836,000 by capitalising time charges)	($116,000) net and ongoing
   8	Proposed fee increases relating to:
   	- Building consent fee	-$348,700	-$348,700 and ongoing
   	- Building inspection fees	-$280,100	-$280,100 and ongoing
   	- Environmental health fees	-$175,500	-$175,500 and ongoing
   	- LIM fees	-$94,100	-$94,100 and ongoing
   	- Dog registrations	-$58,200	-$58,200 and ongoing
   	- Land use fees	-$258,000	-$258,000 and ongoing
   	- Engineering fees	-$168,900	-$168,900 and ongoing
   	- Resource consent monitoring fees	-$60,000	-$60,000 and ongoing
   	- subdivision consent fees	-$56,200	-$56,200 and ongoing
   	- Building consent authority accreditation.	$0 (net figure)	-$0 and ongoing
   	- Dog registration	$0 (net figure)	$0 and ongoing
   	- Environmental health fees	$7,500	$7,500 and ongoing
   9	Re-brand administration buildings	$0	$0 and ongoing
   10	Regulatory improvement programme	$1,466,000	$1,066,000 in 2008/2009
   11	Remuneration Policy review	$2 million	To be determined
   12	Risk management	$90,000	$90,000 and ongoing
   13	Continued need for education and enforcement on all bylaws including the signs and billboards bylaw	$350,000	$350,000 in 2008/2009 and ongoing
   14	Sports regional strategy	$51,000	$51,000 and ongoing
   15	The EdgeŽ - Aotea Square market grant	$52,000	$52,000 in 2008/2009
   16	Value campaign	$167,300	$167,300 and ongoing
   17	Other requests	$335,000	$0
   		$4,100,300

    

   Appendix 4 - discretionary
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards
   1	Aotea quarter consisting of: - New Theatre Initiative	$110,000	$110,000 and ongoing.
   2	Aotea quarter - Town hall arts precinct	$200,000	Subject to outcome of business case.
   3	City Safe Plan	$150,000	$150,000 and ongoing
   4	Community libraries - extension of Sunday service	$200,000	$330,000 and ongoing
   5	Extended rates rebate scheme	($500,000)	($500,000) and ongoing
   6	Grant request - Major events in the Domain	$25,000	Long-term funding recommendations to go to April Arts, Culture and Recreation committee
   7	Large residential blocks funding waste minimisation	$0 (saving to other ratepayers by compelling large residential blocks to fund waste minimisation is close to $1)	$0 and ongoing
   8	Maori Freehold Land	$40,000	$40,000 and ongoing
   9	Mega-events	$200,000	$0
   10	Public toilet cleaning	$100,000	Subject to outcomes of trial
   11	Rates postponement policy for commercially farmed land	$200,000	$200,000 (+ongoing average residential rate increases)
   12	Rates postponement policy on financial hardship	$0 in 2007/2008. No direct cost of modification although there may be impacts on cash flow and net interest income if the take-up rate of the modified is significantly greater.	$0 and ongoing
   13	Rates remission policy for private land voluntarily set aside for conservation purposes	$30,000	$30,000 (+ongoing average rate increases)
   14	School travel plans	$250,000	$250,000 and ongoing
   15	Sportsfield partnerships with schools and others	$50,000	$50,000 and ongoing
   16	The EdgeŽ - Facilities Asset Management - base load energy costs.	$200,000	Ongoing plus CPI
   17	The EdgeŽ - Performing arts productions and commercial musical theatre - annual operating grant	$112,000	$112,000 and ongoing
   		$1,367,000

    

   Appendix 5 - discretionary - councillor requested new initiatives
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards
   1	Avondale College Stadium	$20,000	$20,000 in 2008/2009 and 2009/2010
   2	Broadband and council portal	$500,000	$500,000 and ongoing
   3	Commercial town centre cleaning	$1,700,000	Increasing up to $5.9 million in 2008/2009 and $7.2 million in 2009/2010 ongoing
   4	Grant request - NZ National Maritime Museum	$85,000	$85,000 and ongoing
   5	Grant request - Sport Auckland	$48,000	$49,500 in 2008/2009 and $51,500 in 2009/2010
   6	Grant request - Stardome Observatory and planetarium redevelopment proposal	$50,000 ($865,000 as a loan)	$50,000
   7	Rates postponement policy for Great Barrier Island businesses	$40,000	$40,000 (+ongoing average non-residential rate increases)
   8	Tamaki Innovation Precinct	$200,000	$200,000 and ongoing
   9	The EdgeŽ - Performing arts productions - -international series - Venture fund	$0 (transfer of $300,000 from Production Fund to the Venture Fund)	The EdgeŽ has requested $300,000 per annum for 3 years
   10	Grant request from NZBio/Auckland	$20,000	$100,000 for 2008/2009 and 2009/2010
   11	Other requests	$549,000	$500,000
   		$3,312,000

   2. That it be noted that to achieve an overall rate increase of 3.6% requires funding $23 million of new capital works by raising debt, rather than from the current year's rates, as forecast in the Long-term council community plan.

   3. That a capital expenditure programme of $535 million for 2007/2008 plus the capital projects listed in appendix 7, an increase of $24.6 million over the forecast in the Long-term council community plan, be approved:

   Appendix 7 - Capital expenditure not included in the 2007/2008 annual plan
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards
   1	Okiwi Airfield improvement - Great Barrier Island	$100,000 (option B)	$0
   2	Broadband	$500,000	$0

   4. That Council notes the re-scoping and re-pricing of the Central transit corridor (CTC) project and:

   1. agree to the change in budget for the CTC project to $42.66 million of which council's contribution is $9.58 million, noting the tender process is still to be completed.

   2. agrees to fund the council's $9.58 million contribution to the CTC from the following sources:

   • $0.9 million from the existing CTC project budget

   •  $3.0 million from the city wide footpath and drainage budgets on the assumption of the reprioritisation of work

   •  $5.68 million from the Rapid Transit Fund.

   Councillor Caughey moved the following amendment:

   6. That the budget for the Recreation and Community Services Division for 2007/2008 annual plan be increased by $14,000 for the funding of community volunteer clean up programmes.

   The amendment was put by a show of hand and declared LOST by 9 votes to 7.

   Councillor Abel moved the following amendment:

   7. That the small local improvement projects (SLIPs) budget be increased by $500,000 per annum to reach in the 2009/2010 financial year a total of $5.2 million.

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

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

   Cr Linda Leighton was absent.

   The amendment was declared LOST by 12 votes to 7.

   Secretarial note:

   The voting taken on the Cr Milne's following amendment has been recorded in a column against each row.

   Councillor Milne moved the following amendments:

   That the following amendments be made to resolution A i.:

   Appendix 3 - non-discretionary
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards	Voting
   3	Civil Defence	$180,000 $100,000	$255,000 in 2008/2009 and $260,000 in 2009/2010	LOST
   4	Filenet product	$75,000 $50,000	$75,000 and ongoing	The amendment was put by a show of hands and declared LOST by 12 votes to 7.
   6	Mayoral Task Force on sustainable development	$600,000 $100,000	$400,000 in 2008/2009 and for 2009/2010	LOST
   11	Remuneration Policy review	$2 million $1 million	To be determined	LOST
   13	Continued need for education and enforcement on all bylaws including the signs and billboards bylaw	$350,000 $200,000	$350,000 in 2008/2009 and ongoing Lost 5-15	The amendment was put by a show of hands and declared LOST by 15 votes to 2.

    

   Appendix 4 - discretionary
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards	Voting
   4	Community libraries - extension of Sunday service	$200,000 $100,000	$330,000 and ongoing	The amendment was put by a show of hands and declared LOST by 16 votes to 3.

    

   Appendix 5 - discretionary - councillor requested new initiatives
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards	Voting
   8	Tamaki Innovation Precinct	$200,000 $0	$200,000 and ongoing	The amendment was put by a show of hands and declared LOST by 12 votes to 7.

   3. That a capital expenditure programme of $535 million for 2007/2008 plus the capital projects listed in appendix 7, an increase of $24.3 million over the forecast in the Long-term council community plan, be approved:

   Appendix 7 - Capital expenditure not included in the 2007/2008 annual plan
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards
   2	Broadband	$500,000 $200,000	$0

   LOST

   Councillor Simpson moved the following amendments:

   1. 3. iii. Appendix 5 - row 2 - Broadband and council portal

   1. That $600,000 for operational expenses and $1.0 million in 2007/2008 and $1.0 million in 2008/2009 for projects.

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

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

   Cr Linda Leighton was absent.

   The amendment was declared CARRIED by 11 votes to 8.

   The amendment became part of the substantive motion.

   1. 3. 2. That in addition new funding options be explored for accelerating the establishment of better broadband access and affordability, facilitate fibre passage by way of improved duct management and connectivity, and provision of Council's enterprise wide data into a publicly accessible geospatial clearinghouse.  Examples of potential funding sources include developer contributions, targeted e-rates, research grants and central Government funding initiatives.
         3. That council will have a role in facilitating in broadband infrastructure roll out and developing demand through greater access and affordability.

   CARRIED

   4. That council makes no funding contribution towards the currently proposed Eden Park upgrade for the Rugby World Cup in 2011.

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

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

   Cr Linda Leighton was absent.

   The amendment was declared LOST by 16 votes to 3.

   The Chairman put the following substantive motion:

   That it be a recommendation to council:

   1. 1. That the operating budget for 2007/2008 be accepted based on an overall rate increase of 3.6%, which includes all new budget initiatives recommended in Appendix 3, 4 & 5 be accepted as follows:

   Appendix 3 - non-discretionary
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards
   1	Align property boundaries with Land Information NZ (LINZ) information.	$60,000	$0 and ongoing
   2	City Planning restructure	$120,000	$120,000 and ongoing
   3	Civil Defence	$180,000	$255,000 in 2008/2009 and $260,000 in 2009/2010
   4	Filenet product	$75,000	$75,000 and ongoing
   5	HR service delivery model	$170,000	$170,000 and ongoing
   6	Mayoral Task Force on sustainable development	$600,000	$400,000 in 2008/2009 and for 2009/2010
   7	Programme Office implementation project	($116,000) - $720,000 additional expense offset by $836,000 by capitalising time charges)	($116,000) net and ongoing
   8	Proposed fee increases relating to:
   	- Building consent fee	-$348,700	-$348,700 and ongoing
   	- Building inspection fees	-$280,100	-$280,100 and ongoing
   	- Environmental health fees	-$175,500	-$175,500 and ongoing
   	- LIM fees	-$94,100	-$94,100 and ongoing
   	- Dog registrations	-$58,200	-$58,200 and ongoing
   	- Land use fees	-$258,000	-$258,000 and ongoing
   	- Engineering fees	-$168,900	-$168,900 and ongoing
   	- Resource consent monitoring fees	-$60,000	-$60,000 and ongoing
   	- subdivision consent fees	-$56,200	-$56,200 and ongoing
   	- Building consent authority accreditation.	$0 (net figure)	-$0 and ongoing
   	- Dog registration	$0 (net figure)	$0 and ongoing
   	- Environmental health fees	$7,500	$7,500 and ongoing
   9	Re-brand administration buildings	$0	$0 and ongoing
   10	Regulatory improvement programme	$1,466,000	$1,066,000 in 2008/2009
   11	Remuneration Policy review	$2 million	To be determined
   12	Risk management	$90,000	$90,000 and ongoing
   13	Continued need for education and enforcement on all bylaws including the signs and billboards bylaw	$350,000	$350,000 in 2008/2009 and ongoing
   14	Sports regional strategy	$51,000	$51,000 and ongoing
   15	The EdgeŽ - Aotea Square market grant	$52,000	$52,000 in 2008/2009
   16	Value campaign	$167,300	$167,300 and ongoing
   17	Other requests	$335,000	$0
   		$4,100,300

    

   Appendix 4 - discretionary
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards
   1	Aotea quarter consisting of: - New Theatre Initiative	$110,000	$110,000 and ongoing
   2	Aotea quarter - Town hall arts precinct	$200,000	Subject to outcome of business case.
   3	City Safe Plan	$150,000	$150,000 and ongoing
   4	Community libraries - extension of Sunday service	$200,000	$330,000 and ongoing
   5	Extended rates rebate scheme	($500,000)	($500,000) and ongoing
   6	Grant request - Major events in the Domain	$25,000	Long-term funding recommendations to go to April Arts, Culture and Recreation committee
   7	Large residential blocks funding waste minimisation	$0 (saving to other ratepayers by compelling large residential blocks to fund waste minimisation is close to $1)	$0 and ongoing
   8	Maori Freehold Land	$40,000	$40,000 and ongoing
   9	Mega-events	$200,000	$0
   10	Public toilet cleaning	$100,000	Subject to outcomes of trial
   11	Rates postponement policy for commercially farmed land	$200,000	$200,000 (+ongoing average residential rate increases)
   12	Rates postponement policy on financial hardship	$0 in 2007/2008. No direct cost of modification although there may be impacts on cash flow and net interest income if the take-up rate of the modified is significantly greater.	$0 and ongoing
   13	Rates remission policy for private land voluntarily set aside for conservation purposes	$30,000	$30,000 (+ongoing average rate increases)
   14	School travel plans	$250,000	$250,000 and ongoing
   15	Sportsfield partnerships with schools and others	$50,000	$50,000 and ongoing
   16	The EdgeŽ - Facilities Asset Management - base load energy costs.	$200,000	Ongoing plus CPI
   17	The EdgeŽ - Performing arts productions and commercial musical theatre - annual operating grant	$112,000	$112,000 and ongoing
   		$1,367,000

    

   Appendix 5 - discretionary - councillor requested new initiatives
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards
   1	Avondale College Stadium	$20,000	$20,000 in 2008/2009 and 2009/2010
   2	Broadband and council portal	$600,000	$600,000 and ongoing
   3	Commercial town centre cleaning	$1,700,000	Increasing up to $5.9 million in 2008/2009 and $7.2 million in 2009/2010 ongoing
   4	Grant request - NZ National Maritime Museum	$85,000	$85,000 and ongoing
   5	Grant request - Sport Auckland	$48,000	$49,500 in 2008/2009 and $51,500 in 2009/2010
   6	Grant request - Stardome Observatory and planetarium redevelopment proposal	$50,000 ($865,000 as a loan)	$50,000
   7	Rates postponement policy for Great Barrier Island businesses	$40,000	$40,000 (+ongoing average non-residential rate increases)
   8	Tamaki Innovation Precinct	$200,000	$200,000 and ongoing
   9	The EdgeŽ - Performing arts productions - -international series - Venture fund	$0 (transfer of $300,000 from Production Fund to the Venture Fund)	The EdgeŽ has requested $300,000 per annum for 3 years
   10	Grant request from NZBio/Auckland	$20,000	$100,000 for 2008/2009 and 2009/2010
   11	Other requests	$549,000	$500,000
   		$3,312,000

   2. That Council consider the 2015 ANZAC Day Centenary as a significant event commemorating the 25 April 1915 Landing of NZ troops at Gallipoli, Turkey and that the matter be referred to the Events Sub-committee and the Economic Development and Sustainable Business Committee for consideration.
   3. 1. That it be noted resolution A i. (appendix 5, row 2 - Broadband and council portal) has been amended to include $600,000 for operational expenses and resolution C (appendix 7, row 2 - Broadband) has been amended to inlcude $1.0 million in 2007/2008 and $1.0 million in 2008/2009 for projects.

   2. That in addition new funding options be explored for accelerating the establishment of better broadband access and affordability, facilitate fibre passage by way of improved duct management and connectivity, and provision of Council's enterprise wide data into a publicly accessible geospatial clearinghouse. Examples of potential funding sources include developer contributions, targeted e-rates, research grants and central Government funding initiatives.
   3. That council will have a role in facilitating in broadband infrastructure roll out and developing demand through greater access and affordability.

   4. That Auckland City Council delay any announcement on the contribution to the Eden Park upgrade, if any, until it has heard from Central Government on costs and contributions.

   2. That it be noted that to achieve an overall rate increase of 3.6% requires funding $23 million of new capital works by raising debt, rather than from the current year's rates, as forecast in the Long-term council community plan.

   3. That a capital expenditure programme of $535 million for 2007/2008 plus the capital projects listed in appendix 7, an increase of $24.6 million over the forecast in the Long-term council community plan, be approved:

   Appendix 7 - Capital expenditure not included in the 2007/2008 annual plan
   Row	Initiative	Budget impact in 2007/2008	Budget impact in 2008/2009 and onwards
   1	Okiwi Airfield improvement - Great Barrier Island	$100,000 (option B)	$0
   2	Broadband	$1,000,000	$1,000,000

   4. That Council notes the re-scoping and re-pricing of the Central transit corridor (CTC) project and:

   1. agree to the change in budget for the CTC project to $42.66 million of which council's contribution is $9.58 million, noting the tender process is still to be completed.
   2. agrees to fund the council's $9.58 million contribution to the CTC from the following sources:

   • $0.9 million from the existing CTC project budget
   • $3.0 million from the city wide footpath and drainage budgets on the assumption of the reprioritisation of work
   • $5.68 million from the Rapid Transit Fund.

   Councillor Northey declared a conflict of interest and did not take part in the debate on the Stardome Observatory and planetarium redevelopment proposal item, Appendix 5, row 6.

   CARRIED

9. INTERGENERATIONAL EQUITY AND THE SUSTAINABLE DEBT POLICY

   The Chairman moved:

   That it be a recommendation to council:

   1. That it be noted:

   1. that the 2006-2016 Long-term council community plan (LTCCP) previously forecast a "core rates surplus" over and above operating expenditure plus depreciation of $44.7 million for 2007/2008, to be used primarily to fund new works capital expenditure.
   2. that the quantum of the second step for 2008/2009 will be determined next planning round once the split between targeted rates funded capital expenditure (capex) and operational expenditure (opex) is better defined. This analysis may shift some of the approved targeted rate funding to opex (eg: preparatory work required before the capital expenditure can begin) and thereby reduce the value of rates funded capital expenditure that can be substituted with borrowing.
   3. that this change will significantly reduce total required rates increases over the next 30 years compared with those forecast in the LTCCP (or implied beyond 2016 under the 2006-2016 LTCCP policy settings), but require higher rates beyond 2036 (when all core council debt would have otherwise been repaid under the LTCCP policy settings).
   4. that under the amended sustainable debt policy:

   1. over the long term, capital expenditure that renews or replaces existing assets will be fully funded by the depreciation component of the council's revenues, without reliance on borrowing.
   2. development contributions and the capital components of financial contributions and subsidies (eg: Land Transport New Zealand (LTNZ) transport subsidies) are dedicated to funding capital projects. Over the long term, these projects will be fully funded by capital revenues, without reliance on borrowing.
   3. while borrowing is not routinely used to fund operating expenditure and renewal capital expenditure, it is allowable in special circumstances when the expenditure generates long-term benefits (notwithstanding being classified as operating expenditure under accounting rules, eg: grants and other large one-off operational expenditure investments) and to "smooth" the impact on rates of large one-off renewal capital expenditure investments.

   2. That the funding of new works capital expenditure from the core rates surplus will be phased out over two years beginning with the 2007/2008 year. This capital expenditure will instead be funded by borrowing.
   3. That in 2007/2008, the first step of implementing the new capital expenditure policy will replace $23.3 million of forecast rates funding of new works capital expenditure with borrowing. This will be achieved by lowering forecast rates increases in order to eliminate the previously planned $15.9 million base operating surplus and $7.4 million net transfers to designated funds for 2007/2008.
   4. That 60% of all new debt entered into to fund new works capital expenditure will be repaid over a 30 year period.
   5. That the following prudential limits will be applied, allowing new borrowings only if sufficient rates and other revenues are planned so that all four ratios are forecast to remain within their respective limits over the entire 40-year forecast period:

   1. Debt / Total Income is not more than 3.0 times
   2. Debt / Total Assets is not more than 25%
   3. Interest expense / Total Income is not more than 20%
   4. Operating income (before interest) / Interest is not less than 2.5 times

   6. That the amendments to the sustainable debt policy (which are highlighted in the attached Treasury management policies) be adopted for consultation via the draft 2007/2008 Annual Plan and amendments to the Long-term council community plan subject to the following changes:

   • Agenda page 107
     -line 4 - put in "throughout" for "over"
     - line 20 - put in "adequate" for "limited"
   • Agenda page 108
     - line 15 - put in "300%" for "150%"

   Councillor Armstrong moved the following amendment:

   That it be noted that the proposed intergenerational equity and debt policy moves the city in a direction away from funding capital projects from business debt and its operational surpluses to borrowing to fund capital projects ($1.33 billion over the next ten years). This will remove an important financial discipline on council and that the opinion of the public should be sought on this major philosophical change during public consultation of the draft 2007/2008 Annual Plan.

   LOST

   The Chairman put the following substantive motion:

   That it be a recommendation to council:

   1. That it be noted:

   1. that the 2006-2016 Long-term council community plan (LTCCP) previously forecast a "core rates surplus" over and above operating expenditure plus depreciation of $44.7 million for 2007/2008, to be used primarily to fund new works capital expenditure.
   2. that the quantum of the second step for 2008/2009 will be determined next planning round once the split between targeted rates funded capital expenditure (capex) and operational expenditure (opex) is better defined. This analysis may shift some of the approved targeted rate funding to opex (eg: preparatory work required before the capital expenditure can begin) and thereby reduce the value of rates funded capital expenditure that can be substituted with borrowing.
   3. that this change will significantly reduce total required rates increases over the next 30 years compared with those forecast in the LTCCP (or implied beyond 2016 under the 2006-2016 LTCCP policy settings), but require higher rates beyond 2036 (when all core council debt would have otherwise been repaid under the LTCCP policy settings).
   4. that under the amended sustainable debt policy:

   1. over the long term, capital expenditure that renews or replaces existing assets will be fully funded by the depreciation component of the council's revenues, without reliance on borrowing.
   2. development contributions and the capital components of financial contributions and subsidies (eg: Land Transport New Zealand (LTNZ) transport subsidies) are dedicated to funding capital projects. Over the long term, these projects will be fully funded by capital revenues, without reliance on borrowing.
   3. while borrowing is not routinely used to fund operating expenditure and renewal capital expenditure, it is allowable in special circumstances when the expenditure generates long-term benefits (notwithstanding being classified as operating expenditure under accounting rules, eg: grants and other large one-off operational expenditure investments) and to "smooth" the impact on rates of large one-off renewal capital expenditure investments.

   2. That the funding of new works capital expenditure from the core rates surplus will be phased out over two years beginning with the 2007/2008 year. This capital expenditure will instead be funded by borrowing.
   3. That in 2007/2008, the first step of implementing the new capital expenditure policy will replace $23.3 million of forecast rates funding of new works capital expenditure with borrowing. This will be achieved by lowering forecast rates increases in order to eliminate the previously planned $15.9 million base operating surplus and $7.4 million net transfers to designated funds for 2007/2008.
   4. That 60% of all new debt entered into to fund new works capital expenditure will be repaid over a 30 year period.
   5. That the following prudential limits will be applied, allowing new borrowings only if sufficient rates and other revenues are planned so that all four ratios are forecast to remain within their respective limits over the entire 40-year forecast period:

   1. Debt / Total Income is not more than 3.0 times
   2. Debt / Total Assets is not more than 25%
   3. Interest expense / Total Income is not more than 20%
   4. Operating income (before interest) / Interest is not less than 2.5 times

   6. That the amendments to the sustainable debt policy (which are highlighted in the attached Treasury management policies) be adopted for consultation via the draft 2007/2008 Annual Plan and amendments to the Long-term council community plan subject to the following changes:

   • Page 107
     -line 4 - put in "throughout" for "over"
     - line 20 - put in "adequate" for "limited"
   • Page 108
     - line 15 - put in "300%" for "150%"

   7. That it be noted that the proposed intergenerational equity and sustainable debt policy will have the opinion of the public sought on it during public consultation on the draft 2007/2008 Annual Plan.

   CARRIED

10. RURAL AND HAURAKI GULF ISLAND RATINGS ISSUES

    The Chairman moved:

    That it be a recommendation to council:

    1. That the following draft policies, attached as appendices to the report entitled "Rural and Hauraki Gulf island rating issues" by the Financial policy analyst dated 14 February 2007, be included in the draft 2007/2008 Annual Plan for public consultation:

    1. A remission policy for private land voluntarily covenanted under the QEII National Trust Act (a 100% remission for the covenanted portion of land).
    2. A postponement policy for commercial farmland (a postpone of 25% of the rates for farms over 12 hectares that are GST registered - written off after five years if the property use remains the same).
    3. A postponement policy for Great Barrier island commercial properties (on the difference between the rates based on rateable value and the rates based on 80% of annual rental - written off after five years if the property use remains the same).

    2. That it be noted that if the council also wishes to actively encourage landowners to covenant their land voluntarily with the council under the Reserves Act, officers recommend further work to explore what resources would be needed to support and monitor the covenants.

    Councillor Raffills moved the following amendment - add resolution C:

    3. That council develop a city-wide policy and budget proposal which would create a culture of encouragement for ratepayers to preserve important land and buildings for the public good utilising mechanisms such as:

    1. rates remission and write-off
    2. covenanting
    3. capital grants to cover any loss in value

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

    For the Amendment:	Against the Amendment:
    Cr Doug Armstrong Cr Bill Christian 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 Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Richard Simpson His Worship the Mayor Dick Hubbard Cr Vern Walsh

    Cr Linda Leighton was absent.

    The amendment was declared LOST by 12 votes to 7.

    The Chairman put the following substantive motion:

    That it be a recommendation to council:

    1. That the following draft policies, attached as appendices to the report entitled "Rural and Hauraki Gulf island rating issues" by the Financial policy analyst dated 14 February 2007, be included in the draft 2007/2008 Annual Plan for public consultation:

    1. A remission policy for private land voluntarily covenanted under the QEII National Trust Act (a 100% remission for the covenanted portion of land).
    2. A postponement policy for commercial farmland (a postpone of 25% of the rates for farms over 12 hectares that are GST registered - written off after five years if the property use remains the same).
    3. A postponement policy for Great Barrier island commercial properties (on the difference between the rates based on rateable value and the rates based on 80% of annual rental - written off after five years if the property use remains the same).

    2. That it be noted that if the council also wishes to actively encourage landowners to covenant their land voluntarily with the council under the Reserves Act, officers recommend further work to explore what resources would be needed to support and monitor the covenants.

    CARRIED

11. REMISSION AND POSTPONEMENT OF RATES ON MAORI FREEHOLD LAND

    The Chairman moved:

    That it be a recommendation to council:

    1. That a draft policy for the remission of rates on Maori freehold land be included in the draft 2007/2008 annual plan. This draft policy would:

    1. provide a full remission of rates on land that is undeveloped
    2. provide a remission on land that is developed and used by Iwi members for non-commercial purposes, which would 'cap' the rates using a low percentile of property values in the city.

    2. That it be noted that formal comment from the Iwi Trust Boards will be provided on the draft remission and postponement of rates on Maori freehold land policy during the public consultation phase.  Consultation with one Iwi, Ngati Rehua, is still in early stages and will continue during the public consultation phase.
    3. That it be noted that further work may be needed to refine the policy in response to comments from Iwi and the public during public consultation.

    Councillor Armstrong moved the following amendment - add resolutions D and E:

    4. That any policies developed under resolutions A, B and C in relation to Maori freehold land also apply in an "even-handed" way to non-Maori land used for similar purposes.
    5. That in general where rates are remitted on Maori freehold land there be a condition of public access to this land.

    LOST

    The Chairman put the following substantive motion:

    That it be a recommendation to council:

    1. That a draft policy for the remission of rates on Maori freehold land be included in the draft 2007/2008 annual plan. This draft policy would:

    1. provide a full remission of rates on land that is undeveloped
    2. provide a remission on land that is developed and used by Iwi members for non-commercial purposes, which would 'cap' the rates using a low percentile of property values in the city.

    2. That it be noted that formal comment from the Iwi Trust Boards will be provided on the draft remission and postponement of rates on Maori freehold land policy during the public consultation phase. Consultation with one Iwi, Ngati Rehua, is still in early stages and will continue during the public consultation phase.
    3. That it be noted that further work may be needed to refine the policy in response to comments from Iwi and the public during public consultation.

    CARRIED

12. UPDATE ON RATES POSTPONEMENT AND REBATES SCHEMES

    That it be a recommendation to council:

    1. That it be noted that the new processes for the modified rates postponement policy are expected to be met from existing budgets and that no additional budget is required for 2007/2008.
    2. That the budget for the extended rates rebate scheme (ERRS) for 2007/2008 be reduced from $850,000 to $350,000, while retaining the existing ERRS criteria.
    3. That the draft rates postponement policy be adopted for inclusion in the 2007/2008 draft Annual Plan.

    CARRIED

    The Chairman moved:

    That items 14, 16 and 17 be considered at this point.

    CARRIED

13. PROPOSED RATES POLICY FOR 2007/2008

    The Chairman moved:

    That it be a recommendation to council:

    1. That it be noted that:

    1. the next step of the general rate differential strategy will be applied in 2007/2008, as resolved at the Annual Plan Direction Setting meeting in November 2006;
    2. the Central Business District (CBD) targeted rate for the CBD non-residential group will be increased to match the group's reduction in the general rate, which results from implementing the next step in the long-term differential strategy for the general rate, as agreed at the November 2006 Annual Plan Direction Setting meeting. The targeted rate will be assessed on annual value and will generate revenue of $8.3 million (GST exclusive) for 2007/2008;
    3. the Central Business District (CBD) targeted rate to apply to CBD residential ratepayers will continue to be applied as a fixed charge of $52 (including GST) per residential unit for 2007/2008, as agreed at the November 2006 Annual Plan Direction Setting meeting; and
    4. Auckland City's discount rate for early payment of rates for 2007/2008 be set at 2.83%; this will be applied to 2007/2008 rates paid in full by the first rate instalment date [a discount rate of 2.83% is equivalent to a 11.19% return to the ratepayers (before tax)], as agreed at the November 2006 Annual Plan Direction Setting meeting.

    2. That the five targeted rates for city development, transport, open spaces and volcanic cones; community development and housing; and heritage and urban design, be changed to generate the following revenues in 2007/2008:

    1. City development from $3.5m to $2.4m (-30.8% decrease, as the strategic asset fund will fund some of these projects in 2007/2008)
    2. Transport from $15.7m to $21.5m (36.6% increase)
    3. Open spaces and volcanic cones from $3.0m to $3.5m (16.6% increase)
    4. Heritage and urban design from $1.5m to $1.6m (9.6% increase)
    5. Community development and housing from $2.4m to $4.3m (77.3% increase)

    3. That the draft Mainstreet budgets for 2007/2008 be confirmed as resolved in item 14 of the 7 March 2007 Combined Committees meeting.
    4. That the four rate remission policies for 2006/2007 (remission of rate penalties; remission of rates on car parks; remission of rates on Rural 3 properties; and remission of rates in miscellaneous circumstances) remain unchanged and apply again for 2007/2008.
    5. That it be noted that a 3.6% overall citywide rate increase to fund the proposed budget for 2007/2008 is recommended in a separate report in the 7 March 2007 Combined Committees agenda entitled "Update on budgets for 2007/2008".
    6. That the $95 uniform annual general charge (UAGC) for 2007/2008 be retained.
    7. That the citywide targeted rate for refuse collection be increased to $199 per service for 2007/2008 to cover the increases in the existing refuse services and fund the waste minimisation initiatives adopted to speed up achieving the vision.
    8. That a new remission policy be introduced from 2007/2008 to remit the cost of the rubbish service component from the refuse collection targeted rate for large residential blocks that have an approved alternative rubbish collection service.
    9. That the refuse collection targeted rate policy statement be modified to allow large residential blocks with an approved rubbish service to opt out of Auckland City's rubbish service;
    10. That the text for the proposed rating policy statements (provided separately in this agenda) be included in the draft funding impact statement for consultation in the annual plan for 2007/2008.
    11. That the text for the proposed policy statements for the discount for early payment of rates, remission of rate penalties, remission of rates on car parks, remission of rates on Rural 3 properties, remission of rates in miscellaneous circumstances, remission of rates for refuse, and postponement of rates payments (provided separately in this agenda) be included in the annual plan for 2007/2008.

    Councillor Northey moved the following amendment to G - replace "increased to $199" with "increased to $183 as projected in the Long-term council community plan" - to read as follows:

    7. That the citywide targeted rate for refuse collection be increased to $183 as projected in the Long-term council community plan.

    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 Dr John Hinchcliff Cr Richard Northey Cr Faye Storer	Cr Doug Armstrong Cr Christine Caughey Cr Bill Christian Deputy Mayor, Cr Dr Bruce Hucker Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Penny Sefuiva Cr Richard Simpson Cr Vern Walsh

    Cr Glenda Fryer, Cr Linda Leighton and His Worship the Mayor Dick Hubbard were absent.

    The amendment was declared LOST by 11 votes to 6.

    Councillor Simpson moved the following amendment to resolution F and add resolutions L and M:

    6. That the uniform annual general charge be set at $185 and the amount collected by the general rate be reduced accordingly.

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

    For the Amendment:	Against the Amendment:
    Cr Doug Armstrong Cr Christine Caughey Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Richard Simpson Cr Faye Storer	Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Bill Christian Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva His Worship the Mayor Dick Hubbard Cr Vern Walsh

    Cr Glenda Fryer and Cr Linda Leighton were absent.

    The amendment was declared LOST by 10 votes to 8.

    12. That Council recognises a targeted rate scheme driven by property values has no alignment with rate affordability given factors that 40% of properties in Auckland are rented, and asset wealth does not necessarily correlate with disposable income.

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

    For the Amendment:	Against the Amendment:
    Cr Doug Armstrong Cr Christine Caughey Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Richard Simpson Cr Faye Storer	Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Bill Christian Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva His Worship the Mayor Dick Hubbard Cr Vern Walsh

    Cr Glenda Fryer and Cr Linda Leighton were absent.

    The amendment was declared LOST by 10 votes to 8.

    13. That Council recognises a truly "sustainable city" needs to align its revenue generation with the desired goals of sustainability, and therefore will actively seek to move beyond traditional property tax regime towards increasingly more informative and innovative conservation rating schemes while inducing better evidence driven decision making.

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

    For the Amendment:	Against the Amendment:
    Cr Doug Armstrong Cr Christine Caughey Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Richard Simpson Cr Faye Storer	Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Bill Christian Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva His Worship the Mayor Dick Hubbard Cr Vern Walsh

    Cr Glenda Fryer and Cr Linda Leighton were absent.

    The amendment was declared LOST by 10 votes to 8.

    Councillor Armstrong moved the following amendment:

    6. That the uniform annual general charge (UAGC) for 2007/2008 be $285 and that the general rates be reduced accordingly.

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

    For the Amendment:	Against the Amendment:
    Cr Doug Armstrong Cr Christine Caughey Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Richard Simpson Cr Faye Storer	Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Bill Christian Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva His Worship the Mayor Dick Hubbard Cr Vern Walsh

    Cr Glenda Fryer and Cr Linda Leighton were absent.

    The amendment was declared LOST by 10 votes to 8.

    Councillor Millar moved the following amendment - add a new B ii and iii:

    2. 2. That the targeted rate for Heritage and Urban Design be split in two; and that the heritage rate be increased to establish a fund to provide rates relief and maintenance assistance to properties specifically identified by Auckland City to be registered as of heritage significance.
       3. That officers report back on a level of funding required to provide a meaningful budgeted amount that will establish and maintain a heritage fund - with an objective of rates relief and maintenance assistance to properties specifically identified by Auckland City to be registered as of heritage significance.

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

    For the Amendment:	Against the Amendment:
    Cr Doug Armstrong 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 Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva His Worship the Mayor Dick Hubbard Cr Vern Walsh

    Cr Richard Simpson abstained from voting.

    Cr Glenda Fryer and Cr Linda Leighton were absent.

    The amendment was declared LOST by 11 votes to 6, with 1 abstention.

    Secretarial note:

    Councillor Simpson requested that it be recorded that he did not take part in the debate nor did he vote on Cr Millar's amendment.

    The Chairman put the following substantive motion:

    That it be a recommendation to council:

    1. That it be noted that:

    1. the next step of the general rate differential strategy will be applied in 2007/2008, as resolved at the Annual Plan Direction Setting meeting in November 2006;
    2. the Central Business District (CBD) targeted rate for the CBD non-residential group will be increased to match the group's reduction in the general rate, which results from implementing the next step in the long-term differential strategy for the general rate, as agreed at the November 2006 Annual Plan Direction Setting meeting. The targeted rate will be assessed on annual value and will generate revenue of $8.3 million (GST exclusive) for 2007/2008;
    3. the Central Business District (CBD) targeted rate to apply to CBD residential ratepayers will continue to be applied as a fixed charge of $52 (including GST) per residential unit for 2007/2008, as agreed at the November 2006 Annual Plan Direction Setting meeting; and
    4. Auckland City's discount rate for early payment of rates for 2007/2008 be set at 2.83%; this will be applied to 2007/2008 rates paid in full by the first rate instalment date [a discount rate of 2.83% is equivalent to a 11.19% return to the ratepayers (before tax)], as agreed at the November 2006 Annual Plan Direction Setting meeting.

    2. That the five targeted rates for city development, transport, open spaces and volcanic cones; community development and housing; and heritage and urban design, be changed to generate the following revenues in 2007/2008:

    1. City development from $3.5m to $2.4m (-30.8% decrease, as the strategic asset fund will fund some of these projects in 2007/2008)
    2. Transport from $15.7m to $21.5m (36.6% increase)
    3. Open spaces and volcanic cones from $3.0m to $3.5m (16.6% increase)
    4. Heritage and urban design from $1.5m to $1.6m (9.6% increase)
    5. Community development and housing from $2.4m to $4.3m (77.3% increase).

    3. That the draft Mainstreet budgets for 2007/2008 be confirmed as resolved in item 14 of the 7 March 2007 Combined Committees meeting.
    4. That the four rate remission policies for 2006/2007 (remission of rate penalties; remission of rates on car parks; remission of rates on Rural 3 properties; and remission of rates in miscellaneous circumstances) remain unchanged and apply again for 2007/2008.
    5. That it be noted that a 2.7% overall citywide rate increase to fund the proposed budget for 2007/2008 is recommended in a separate report in the 7 March 2007 Combined Committees agenda entitled "Update on budgets for 2007/2008".
    6. That the $95 uniform annual general charge (UAGC) for 2007/2008 be retained.
    7. That the citywide targeted rate for refuse collection be increased to $199 per service for 2007/2008 to cover the increases in the existing refuse services and fund the waste minimisation initiatives adopted to speed up achieving the vision.
    8. That a new remission policy be introduced from 2007/2008 to remit the cost of the rubbish service component from the refuse collection targeted rate for large residential blocks that have an approved alternative rubbish collection service.
    9. That the refuse collection targeted rate policy statement be modified to allow large residential blocks with an approved rubbish service to opt out of Auckland City's rubbish service.
    10. That the text for the proposed rating policy statements (provided separately in this agenda) be included in the draft funding impact statement for consultation in the annual plan for 2007/2008.
    11. That the text for the proposed policy statements for the discount for early payment of rates, remission of rate penalties, remission of rates on car parks, remission of rates on Rural 3 properties, remission of rates in miscellaneous circumstances, remission of rates for refuse, and postponement of rates payments (provided separately in this agenda) be included in the annual plan for 2007/2008.

    CARRIED

14. MAINSTREET DRAFT BUDGETS 2007/2008

    That it be a recommendation to council:

    1. That the following draft Mainstreet budgets be included in the 2007/2008 Annual Plan and Budget:

    Mainstreet	2007/2008
    Programme	Budgets
    	(excl GST)
    Avondale	$96,000
    Blockhouse Bay	$36,603
    Eden Valley	$77,500
    Ellerslie	$74,580
    Glen Innes	$135,280
    Heart of the City	$2,852,840
    Karangahape Road	$225,500
    Mt Eden	$66,701
    Newmarket	$860,000
    Onehunga	$349,920
    Otahuhu	$330,000
    Panmure	$302,500
    Parnell	$268,015
    Ponsonby	$200,000
    Remuera	$194,700
    Rosebank	$165,000
    St Heliers	$109,000
    Total	$6,344,139

    2. That the boundaries of all Mainstreet programmes remain the same as those for the 2006/2007 financial year.

    CARRIED

15. 2007/2008 DEVELOPMENT CONTRIBUTIONS POLICY: DRAFT FOR CONSULTATION

    The Consultant advisor tabled updated information, agenda pages 192 and 197.

    [ATTACHMENT 15A & 15B]

    The Chairman moved:

    1. That it be noted that the Urban Strategy and Governance Committee after considering the issues associated with draft Development Contributions Policy has:

    1. agreed that:

    1. the advantages of development contributions in enabling the recovery of growth costs outweigh the disadvantages that development contributions may have in contributing to reductions in the overall affordability of housing in Auckland City; and,
    2. development contributions are the most appropriate means of funding the cost of growth for the various activities identified in the development contributions policy, having regard to the matters set out in s101(3) Local Government Act 2002;

    2. recommended that the draft 2007/2008 Development Contributions Policy be changed to include:

    1. public space infrastructure and land acquisition growth costs of $171 million and $90 million respectively from the central area [now reduced to $149 million for infrastructure];
    2. $200 million in growth costs associated with the Auckland Manukau Eastern Transit Initiative;
    3. the costs of finance and reductions for interest revenue as part of growth costs; and,
    4. updated costs and cost allocations for the Fanshawe street improvements project;

    3. agreed in principle to recommend to Combined Committees that:

    1. public space infrastructure and public space land acquisition development contributions charges are applied to the central area; and,
    2. public space land acquisition costs are recovered through the blended charge option (encompassing a uniform charge for citywide developments and a land value based charge), this being the most appropriate option having regard to the matters set out in s101(3) Local Government Act 2002.

    That it be a recommendation to council:

    2. That the proposed draft development contributions policy as attached, subject to any changes from recommendation C, be included in the draft annual plan, to allow for submissions on this draft policy, in accordance with the special consultative procedure, and to allow adoption of the new policy, with any changes arising from that process, for it to be in place for 1 July 2007.
    3. That the delegated authority be granted to the Chairman of Combined Committees and the General manager finance to make any minor amendments to the draft policy arising from this meeting (including consequential amendments required as a result of other decisions) or arising out of further review of the draft policy by the council's legal advisors.

    Councillor Armstrong moved the following amendment - add resolution D:

    4. That the Chief executive report on the effect of affordability of housing of the following:

    1. council's proposed new development contributions policy;
    2. the requirements to comply with the new leaky building regulations including inspection and risk management costs;
    3. proposals to tighten up the building code caused by sustainability requirements, such as:  double glazing.
    4. the lack of availability of land.

    The amendment was put by a show of hands and declared LOST by 12 votes to 7.

    Councillor Simpson moved the following amendment:

    4. That the proposed draft development contributions policy be amended to include incentive initiatives and charge allocations to contribute directly towards improvement of the City's broadband access and affordability to households and businesses.

    The Chairman moved:

    That Councillor Simpson's amendment to add a new resolution D as follows be withdrawn:

    4. That the proposed draft development contributions policy be amended to include incentive initiatives and charge allocations to contribute directly towards improvement of the City's broadband access and affordability to households and businesses.

    CARRIED

    The Chairman put the following substantive motion:

    1. That it be noted that the Urban Strategy and Governance Committee after considering the issues associated with draft Development Contributions Policy has:

    1. agreed that:

    1. the advantages of development contributions in enabling the recovery of growth costs outweigh the disadvantages that development contributions may have in contributing to reductions in the overall affordability of housing in Auckland City; and,
    2. development contributions are the most appropriate means of funding the cost of growth for the various activities identified in the development contributions policy, having regard to the matters set out in s101(3) Local Government Act 2002;

    2. recommended that the draft 2007/2008 Development Contributions Policy be changed to include:

    1. public space infrastructure and land acquisition growth costs of $171 million and $90 million respectively from the central area [now reduced to $149 million for infrastructure];
    2. $200 million in growth costs associated with the Auckland Manukau Eastern Transit Initiative;
    3. the costs of finance and reductions for interest revenue as part of growth costs; and,
    4. updated costs and cost allocations for the Fanshawe street improvements project;

    3. agreed in principle to recommend to Combined Committees that:

    1. public space infrastructure and public space land acquisition development contributions charges are applied to the central area; and,
    2. public space land acquisition costs are recovered through the blended charge option (encompassing a uniform charge for citywide developments and a land value based charge), this being the most appropriate option having regard to the matters set out in s101(3) Local Government Act 2002.

    That it be a recommendation to council:

    2. That the proposed draft development contributions policy as attached, subject to any changes from recommendation C, be included in the draft annual plan, to allow for submissions on this draft policy, in accordance with the special consultative procedure, and to allow adoption of the new policy, with any changes arising from that process, for it to be in place for 1 July 2007.
    3. That the delegated authority be granted to the Chairman of Combined Committees and the General manager finance to make any minor amendments to the draft policy arising from this meeting (including consequential amendments required as a result of other decisions) or arising out of further review of the draft policy by the council's legal advisors.

    CARRIED

16. TREASURY MANAGEMENT POLICY UPDATED FOR AMENDED LONG-TERM COUNCIL COMMUNITY PLAN (LTCCP)

    That it be a recommendation to council:

    1. That the proposed changes to the treasury management policies be approved as summarised below:

    1. replacing references to quarterly treasury strategies with references to the annual review of strategic risk limits, monthly monitoring of compliance and performance against benchmarks, and quarterly council reviews of outcomes and performance against benchmarks;
    2. replacing the minimum liquidity guideline that "no more than $100 million of debt can be raised or refinanced on any particular day unless approved by the Treasury;
    3. adjusting the required amount of unutilised short-term borrowing facilities above the forecast net cash outflow over the next 12 months from $20 million to a minimum of $20 million or any greater amount as prescribed by the Treasury Management Steering Group;
    4. removal of the interest rate exposure requirement that net floating rate borrowings will not exceed 20% of the consolidated group's total debt portfolio unless approved by the Treasury Management Steering Group (to avoid conflict between this limit and council's overriding modified duration risk limits);
    5. transferring explicit credit limits for investments in local government bodies from the Treasury Management Plan to the Treasury Operating Manual (TOM).

    2. That the treasury management policies contained in attachment 1 to the report entitled "Treasury management policy update for amended Long-term council community plan" by the Funds management analyst dated 22 February 2007, be approved for consultation via the draft 2007/2008 Annual Plan and amendments to the Long-term council community plan with it being noted that the strategic risk limits will be reviewed by a Council committee at least annually.

    CARRIED

17. 2007/2008 ANNUAL PLAN POLITICAL PROCESS - COMMENT FROM COMMUNITY BOARDS

    That it be a recommendation to council:

    That the community boards' recommendations be noted as outlined in Appendix A of the Democracy advisor's report entitled "2007/2008 annual plan political process - comment from community boards" dated 14 February 2007, noting officers' responses.

    CARRIED

    ANNUAL PLAN DOCUMENT

18. VOLUME 1 OF THE DRAFT 2007/2008 ANNUAL PLAN

    That it be a recommendation to council:

    1. That Volume 1 of the draft 2007/2008 Annual Plan be approved for public consultation with the following amendment:

    1. add with the "strengthening our region's governance" section (agenda page 256) having added to it the text of Council's December 2006 resolutions on regional governance and the accompanying text welcoming "submissions you might wish to make on regional governance, including the Council's resolution and any proposals from government, as part of this annual plan consultation."

    2. That the General Manager Finance and Chairman, Finance and Corporate Business Committee be authorised to make amendments to reflect decisions made at the 7 March 2007 Combined Committees meeting and any corrections required prior to the release of final draft 2007/2008 Annual Plan.

    CARRIED

19. VOLUME 2 OF THE DRAFT 2007/2008 DRAFT ANNUAL PLAN

    That it be a recommendation to council:

    1. That Volume 2 of the draft 2007/2008 Annual Plan be approved for public consultation.
    2. That the General Manager Finance and Chairman, Finance and Corporate Business Committee be authorised to make amendments to reflect decisions made at the 7 March 2007 Combined Committees meeting and any corrections required prior to the release of final draft 2007/2008 Annual Plan.

    CARRIED

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

    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.	2007/2008 Annual Plan Budget Update Including New Unfunded Initiatives	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:

    C2.

    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. In particular, the report on the operating activities of the Auckland Netball Centre contains commercially sensitive information with breakdowns of operational and capital expenditure and revenue items and profit forecasts, that Auckland Netball Centre has provided to Auckland City in confidence.	[Section 7(2)(b)(ii)]
    	To enable the Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). In particular, the report contains information, that if released, would prejudice sponsorship negotiations regarding the event.	[Section 7(2)(i)]
    	To enable the Council to carry out, without prejudice or disadvantage, commercial activities. In particular, the information contained in the report will enable council to carry out, without prejudice or disadvantage, commercial activities in the form of structures for the provision of destination marketing, visitor services, convention services and other tourist related activities.	[Section 7(2)(h)]
    To enable the Council to carry out, without prejudice or disadvantage, commercial activities in particular the joint venture proposal from the University of Auckland to establish the Auckland Innovation Centre was supplied in confidence. The university are engaged in confidential discussions with the Ministry of Economic Development regarding funding and the details of the proposal are commercially sensitive. Council must ensure the confidentiality of information supplied by the University of Auckland.
    [Section 7(2)(h)]
    	To enable the Council to carry out, without prejudice or disadvantage, commercial activities. In particular the supporting report contains sensitive information, where if released, would jeopardise negotiations with interested parties on developing broadband initiatives.	[Section 7(2)(h)]

    CARRIED

    There being no further business the Chairman declared the meeting closed at 4:53 pm.