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Addendum Agenda of Extraordinary Finance and Performance Committee

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Addendum Agenda of Extraordinary Finance and Performance Committee I hereby give notice that an extraordinary meeting of the Finance and Performance Committee will be held on: Date: Tuesday, 25 May 2021 Time: 10.00am Meeting Room: Reception Lounge Venue: Auckland Town Hall 301-305 Queen Street Auckland Kōmiti ā Pūtea, ā Mahi Hoki / Finance and Performance Committee OPEN ADDENDUM AGENDA MEMBERSHIP Chairperson Cr Desley Simpson, JP Deputy Chairperson Cr Shane Henderson Members Cr Josephine Bartley Mayor Hon Phil Goff, CNZM, JP IMSB Member Renata Blair Cr Richard Hills Cr Dr Cathy Casey Cr Tracy Mulholland Deputy Mayor Cr Bill Cashmore Cr Daniel Newman, JP Cr Fa’anana Efeso Collins Cr Greg Sayers Cr Pippa Coom Cr Sharon Stewart, QSM Cr Linda Cooper, JP IMSB Chair David Taipari Cr Angela Dalton Cr Wayne Walker Cr Chris Darby Cr John Watson Cr Alf Filipaina Cr Paul Young Cr Christine Fletcher, QSO (Quorum 11 members) Sandra Gordon Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor 24 May 2021 Contact Telephone: (09) 890 8150 Email: [email protected] Website: www.aucklandcouncil.govt.nz Note: The reports contained within this agenda are for consideration and should not be construed as Council policy unless and until adopted. Should Members require further information relating to any reports, please contact the relevant manager, Chairperson or Deputy Chairperson. Finance and Performance Committee 25 May 2021 ITEM TABLE OF CONTENTS PAGE 9 Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal 5 Page 3 Finance and Performance Committee 25 May 2021 Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal File No.: CP2021/05456 Te take mō te pūrongo 9 Item Purpose of the report 1. To set out the mayor’s recommendations for the Recovery Budget (10-year Budget 2021- 2031) for consideration and decisions by the Finance and Performance Committee which will be recommended to the Governing Body meeting on 25 May 2021. Whakarāpopototanga matua Executive summary 2. COVID-19 is still a shadow that hangs over the future of Auckland and our country. While we have been lucky in New Zealand, we have not escaped unscathed. Auckland Council faces an estimated loss of more than $750 million over this and the next three years. 3. This mayoral proposal has been written in light of that. This 10-year Budget 2021-2031 is a recovery budget. While one response might have been austerity, we have chosen not to go down that path. Instead, this budget aims to balance the need to make progress for the city and to help stimulate economic recovery with the city’s financial capacity and rates rises that ratepayers can afford and will accept. 4. To address the $450 million projected loss Auckland Council faced in 2020/2021 and to help the recovery of the city in its Emergency Budget, Council made difficult trade-offs and decisions. For our Recovery Budget, this committee, local boards and staff have met for around 150 hours working to find a solution that will keep moving the city forward and ensure we keep investing in the things that matter the most - infrastructure, environment and the COVID-19 recovery. 5. There has been a concentrated effort to ensure we are keeping up with the infrastructure spend our city needs. The mayoral proposal recommends a total capital investment in this 10-year plan of around $31.8 billion. This is around $400 million more than the draft budget Council consulted on and nearly $6 billion more than the 10-year Budget in 2018-2028. This reflects a major investment increase in three waters as well as increased investment in transport, and in parks and community facilities. 6. This budget allows Auckland to continue to move forward despite the challenges we face. It sets the framework for the next 10 years, but in an uncertain environment we would need to be agile and subsequent Annual Plans will enable us to make changes as circumstances require. 7. Next year we will be able to see what progress we have made and consider other options such as greater investment in climate change mitigation and adaption. 8. In the meantime, I believe we have landed on a budget that helps the city grow and also takes into account the needs of all Aucklanders. Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal Page 5 Finance and Performance Committee 25 May 2021 Ngā tūtohunga Recommendation/s That the Finance and Performance Committee: a) recommend to the Governing Body that the final Recovery Budget (10-year Budget 2021- 2031) package be based on updated consultation budget as outlined in attachment C, which includes: i) financial levers that support continued delivery of key services and strong investment in new and renewed assets, including: Item 9 Item A) $90 million ongoing savings for Auckland Council. B) $70 million annual asset recycling target for the first three years, with additional targets in subsequent years to reflect timing changes for asset recycling opportunities not realised in 2020/2021. C) additional borrowing as represented by the debt to revenue ratio of up to 290 per cent for the first three years, gradually returning to 270 per cent, with an intention to maintain council group’s current credit rating and a strong commitment to long-term financial prudence. D) 5 per cent average general rates increase for 2021/2022 and 3.5 per cent annual average general rates increase thereafter. ii) a package of new climate actions totalling $152 million above existing spending to reduce greenhouse gas emissions and adapt to the impact of climate change. iii) a more focused approach to providing infrastructure to support growth in partnership with the central government and private sector, prioritising Auckland Housing Programme and Tamaki, North West, Drury and City Rail Link stations. iv) a three-year transition towards a more sustainable investment approach to delivering community services that is less reliant on council assets and focuses more on provision through alternative ways such as partnerships, digital channels and multi-use facilities. v) extending the Natural Environment Targeted Rate from 2028 to 2031 to continue the natural environment protection programmes to lock in the benefits realised from past efforts in pest control and ensure ongoing protection for indigenous biodiversity within the region. vi) over next year, scoping work programmes which will provide greater protection to notable trees including actions from Council itself and from the government in terms of restoring provisions for comprehensive protection for notable trees. vii) extending the Water Quality Targeted Rate from 2028 to 2031 and increasing it by 5 per cent in 2021/2022 and then 3.5 per cent annually thereafter, to improve water quality in other areas of the city, in particular the Eastern Isthmus and Manukau Harbour catchments. viii) additional operational funding of $100 million over 10 years for improving public transport services, particularly ferry and new bus services, funded by $50 million additional operational funding from Auckland Council and $50 million operational efficiency from Auckland Transport. Matching funding will be sought from Waka Kotahi. ix) additional capital funding of $182 million over 10 years to Auckland Unlimited to ensure necessary renewal of regional venues. x) operational funding of $11 million over three years to Auckland Unlimited to support Auckland hosting FIFA Women’s World Cup 2023. xi) continuation of $150 million funding to support Māori outcomes over 10 years. Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal Page 6 Finance and Performance Committee 25 May 2021 xii) continuation of $2.067 million in annual grant funding to Auckland Citizen Advice Bureau for the first three years. xiii) continuation of $298,000 in annual operational funding to Mangere Mountain Education Trust for the first three years, noting that further consideration on integrating with Tūpuna Maunga Authority will be given once the authority’s education strategy is developed. xiv) providing $100,000 per annum in grant funding to the Hibiscus Coast Youth Centre for 9 Item the first three years, noting that a changing approach to delivering community services may influence the funding needed in the outer years. Ngā tāpirihanga Attachments No. Title Page A⇩ 10-year Budget 2021-2031 Final Mayoral Proposal 9 B⇩ Investment scenarios and funding levers 21 C⇩ Mayoral Proposal Budget Scenario 49 D⇩ Climate Action 53 E⇩ Housing and Growth Infrastructure 63 F⇩ Community Investments 71 G⇩ Natural Environment Protection 89 H⇩ Water Quality Improvement 93 Ngā kaihaina Signatories Author Phil Goff, Mayor of Auckland Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal Page 7 Finance and Performance Committee 25 May 2021 Item 9 Item Attachment A Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal Page 9 Finance and Performance Committee 25 May 2021 Item 9 Item Attachment A Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal Page 10 Finance and Performance Committee 25 May 2021 Item 9 Item Attachment A Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal Page 11 Finance and Performance Committee 25 May 2021 Item 9 Item Attachment A Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal Page 12 Finance and Performance Committee 25 May 2021 Item 9 Item Attachment A Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal Page 13 Finance and Performance Committee 25 May 2021 Item 9 Item Attachment A Recovery Budget (10-year Budget 2021-2031) - Mayor's final
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