VolumeOne of the Draft Annual Plan

7/29/2019 VolumeOne of the Draft Annual Plan

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An overviewoF 2013/20141volu

me

2013/2014m A i n tA i n i n g m o m e n t u m


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Tr t waka te hoea ake e koe i te moana o te Waitemat kia mai r ki te kau i kahu.Ki reira, ka mihi ake ai ki ng maunga here krero,ki ng pari whakarongo tai,ki ng awa tuku kiri o na manawhenua, na mana -iwitaketake mai, tauiwi atuE koro m, e kui m i te whi ngaro, ko Tmaki Makaurau tkoutou i whakarere iho ai,ki ng reanga whakaheke, ki ng uri whakatupu ki t iti, ki t rahi.Tmaki makau a te rau, murau a te tini, wenerau a te mano.Khore t rite i te ao.

T ahureinga titi rawa ki ng pmanawa o mtou kuawhakakinga ki roto i a koe.Kua noho mai koe hei toka herenga i mtou manako katoa.Kua hia nei mtou e koe ki te korowai o t atawhai,ki te huru o t awhi,ki te kuku rawa o t manawa.He mea tturu tonu whakairihia,hei thuhu m te rangi e t iho nei,hei whriki m te papa e takoto ake neiKia kpakina mtou e koe ki raro i te whakamarumaru o umanaakitanga.

E te marae whakatut puehu o te mano whioio,e rokohanga nei i ng muna, te huna tonu i whruaruai ng hua e taea te hauhake i mra kai,i ng rawa e hei te kekerihia i pkoro.Te mihia nei koe e mtou.

Tmaki Makaurau, ko koe me t kotahi i te ao nei, nku temringanui kia mhio ki a koe,kia miria e te kakara o te hau pangi e kawe nei i rongo.Ka whtiki nei au i taku hope ki ng pepeh o onamata, ki kutmanako m ppme ku whakaritenga kua tutuki m te r nei.

Tmaki Makaurau, tukuna t wairua kia rere.

HE MIHI

tHe DrAFt AnnuAl PlAn 2013/2014volume 1


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Let your canoe carry you across the waters of the Waitematuntil you make landfall at kahu.There, to greet the mountains, repository of all that has beensaid of this place,there to greet the cliffs that have heard the ebb and ow of thetides of time,and the rivers that cleansed the forebears of all who camethose born of this land and the newcomers among us all.To all who have passed into realms unseen, Auckland is thelegacy you leave to those who follow,

your descendants the least, yet, greatest part of you all.Auckland beloved of hundreds, famed among the multitude,envy of thousands.You are unique in the world.

Your beauty is infused in the hearts and minds of those of uswho call you home.You remain the rock upon which our dreams are built.You have cloaked us in your care,taken us into the safety of your embrace,to the very soul of your existence.It is only right that you are held in high esteem,the solid ground on which all can stand.You bestow your benevolence on us all.

The hive of industry you have becomemotivates many to delve the undiscovered secrets of your realm,the fruits that can still be harvested from your food storesand the resources that lie fallow in your eldsWe thank you.

Auckland you stand alone in the world, it is my privilege to know you,to be brushed by the gentle breeze that carries the fragrance ofall that is you.

And so I gird myself with the promises of yesteryear, my hopes fortomorrow and my plans for today.

Auckland let your spirit soar.

PArt i: An ovErvIEw of our drAft AnnuAl PlAn 2013/2014


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This is Auckland Councils draft annual plancovering the period 1 July 2013 to30 June 2014. It represents year two of ourLong-term Plan (LTP) 2012-2022, updated forbetter information and some proposed changesin priorities and policies outlined in the

LTP 2012-2022.This draft annual plan has been shaped by AucklandCouncils vision for the future outlined in our keystrategic planning documents, the Auckland Plan(adopted in March 2012) and the LTP 2012-2022.It has also been inuenced by our commitment toMori and customer transformation.

In preparing this draft annual plan, the council hasreviewed its operating costs and revenues with the aimof reducing the rate requirement to a level closer to

the rate of ination. This exercise was about rening

budgets and looking for savings that did not compromise

our strategic priorities.

The outcome of this review was a proposed average

rates increase of 2.9 per cent for 2013/2014, with only

minor reductions proposed to some service levels.

This draft plan was approved by the governing body on19 December 2012 for consultation commencing on

24 January 2013. We are now seeking your feedback on

this draft plan. The consultation process is a key way for

you to participate in council decision-making.

Once nalised the plan will provide a basis for ensuring

the council remains accountable to the community.

This will primarily be achieved through reporting back

on progress against the plan via our Annual Report

2013/2014 which will be delivered in September 2014.

About tHIs

drAft AnnuAl PlAn

To request a Microsoft Word or large print version of this document,please email [email protected] or call 09 301 0101.

tHe DrAFt AnnuAl PlAn 2013/2014volume 1: an overview of 2013/2014


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How tHIs PlAn Is ArrAngEdvolume 1: An overview oF 2013/2014

This volume is divided into four parts:

Part I provides context and background to the plan. It outlines our proposals forthe year, and how to tell us what you think about our proposals and how to givefeedback during the consultation process.

Part II covers the activities and services of Auckland Council, including key projectsand nancial and performance information.

Part III contains information on our council-controlled organisations (CCOs).

Part IV is the appendices and presents the structure of and contact informationfor the organisation, a glossary of terms and a submission form.

volume 2: locAl boArD inFormAtionAnD DrAFt Agreements

This volume is divided into two parts:

Part I provides information on the decision-making responsibilities of local boards,

the development of local board plans and agreements and a summary of plannedexpenditure for 2013/2014 across all local boards.

Part II contains specic information for each of the 21 local boards, including a draftlocal board agreement that contains detailed information about local activities and thecorresponding budgets for 2013/2014, along with an introductory section that providescontext for the draft agreement and sets out proposed changes to 2013/2014 budgetsand new advocacy areas for consultation.

volume 3: FinAnciAl inFormAtion, cHAngesAnD AmenDments to tHe long-term PlAn

In addition to the draft annual plan, the council is consulting on changes and amendmentsto the LTP 2012-2022. These are contained within parts III and IV of this document.

This volume is divided into ve parts:

Part I contains detailed nancial statements for the Auckland Council, includingstatements by parent and group and signicant forecasting assumptions.

Part II provides updated information on rating policy and other rates related policies.

Part III identies changes and amendments to nancial policies in the LTP 2012-2022.

Part IV contains a proposal for Regional Facilities Auckland to grant the proceeds ofa land sale to the Counties Manukau Pacic Trust to fund the second stage of the

TelstraClear Pacic Events Centre development.

Part V contains the Auditor-Generals opinion on the councils statement of proposal in part IV.

The full nancial and non-nancial policies can be found in Volume Three of theLong-term Plan 2012-2022.



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ContEnts of tHIs voluME

PArt i: An ovErvIEw of our

drAft AnnuAl PlAn 2013/2014

Message from the mayor 8

Message from the chief executive 9

Strategic context 10

What we are planning for 2013/2014 14

How to have your say 28

Financial overview 30

PArt ii: our ACtIvItIEs

Introduction to themes and

groups of activities 35Governance theme 37

Planning theme 46

Commercial and investment theme 51

Economic development theme 58

Built and natural environment theme 72

Solid waste theme 86

Stormwater and food protection theme 90

Water supply and wastewater theme 97

Transport theme 104

Community theme 117

Lifestyle and culture theme 137

Corporate support theme 164

Prospective consolidated

activities statement 169

Capital projects for 2013/2014 172



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PArt iii: CounCIl-ControllEd

orgAnIsAtIons (CCos)

Overview 187

The substantive CCOs 187

The non-substantive CCOs 191

PArt iv: APPEndICEs

How the organisation is structured 193

How to contact the council 199

Glossary of terms 200

Submission form 204



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Maintaining momentum

With input from tens of thousands of Aucklanders, weput in place the Auckland Plan last year, our roadmapto becoming the worlds most liveable city.

We then formed our Long-term Plan (LTP)2012-2022, the implementation plan for the rst10 years of the Auckland Plan, which outlines theprojects we are going to deliver over that time and,most importantly, how we are going to pay for them.

This draft annual plan represents year two of theLTP 2012-2022 and we are committed to deliveringmany of the projects that will enable us to build thevision and cater for the forecast growth over thenext 30 years.

The two key focus areas for the next few years aretransport and the economy.

The City Rail Link is our most importanttransformational project. As well as faster and morefrequent rail journeys across the entire rail network,it will bring economic and transport benets of up

to $3.8 billion. In the draft Annual Plan 2013/2014,we will continue the work on designating andsecuring the route for the rail link. Other majortransport projects include improving our bus network,Aucklands new electric trains, the Auckland ManukauEastern Transport Initiative (AMETI) project and theAlbany Highway upgrade.

Job growth is supported by our ongoing investmentin attracting both domestic and international visitors,nurturing the marine and food industries, and thedevelopment of the innovation precinct in the

Wynyard Quarter.Planning for Aucklands long-term future is hugelyimportant at a regional level and so is buildingstrong local communities the hundreds of villagesthat make up Auckland. Councillors and local boardmembers are very conscious of this, and more than$175 million of investment expenditure in locallibraries, parks, recreational, arts and cultural facilitiesis planned for 2013/2014.

Investment in our future, and delivery of theseregional and local projects and activities, has to be

balanced with nancial prudence. The rst two yearsof the Auckland Council have been challenging, as

we brought together eight different councils andtheir previous commitments. Despite the challenges,we have absorbed the inherited $78 million cost ofamalgamation and found $1.7 billion of cumulativesaving and efciencies over the 10 years of theLTP 2012-2022.

I have consistently indicated that I saw theLTP 2012-2022 forecast rate increases as startingpoints and that we should seek to drive these downeach year in the preparation of the annual plan. In

the LTP 2012-2022, the 2013/2014 year was forecastto have a 4.8 per cent rates increase. After a detailedreview of our costs, we have managed to achieve aprojected rate increase of 2.9 per cent. This is thethird straight year of falling increases 3.9 per cent,3.6 per cent and now 2.9 per cent.

Much of this cost reduction has been achieved withlittle impact on council services. We have reducedsome corporate costs and also focused on deliveringservices by staff rather than through consultants.However, there are some changes that will haveservice impacts in some parts of Auckland. Forexample, only the previous Auckland City Councilmowed street berms, whereas the other councils didnot. This is proposed to be removed, so that all partsof Auckland are on an equal footing.

Some fees have been reviewed and these proposals,along with the changes in service levels and overallbudget, are now open to your feedback.

I look forward to hearing your views.

Len BrownMayor of Auckland

MEssAgE froM tHE MAYor



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LTP 2012-2022 on track with second full-yearannual plan (2013/2014)

The annual plan will continue delivering on theground in line with the direction set by the AucklandPlan and LTP 2012-2022. In order to be successfuland move ahead, Auckland needs to invest in theinfrastructure our region needs to be competitive.

But the council also needs a balanced operatingbudget. The council is prudent about how it spendsratepayers money and operates within its means.

This plan shows our continued focus on reducingcosts and being more efcient, to drive rates as low aspossible while maintaining high service levels.

Auckland is a city typical of growing metropolitanregions which use debt to serve the needs of a largeurban population. I acknowledge that the councilsdebt levels will necessarily increase over the coming

years. Its important to remember that we believe thisdebt is affordable.

Debt is primarily being used to fund growth and

transformational projects that will benet current andfuture generations. The lack of coordination beforeamalgamation now sees our region investing to catchup, particularly in transport infrastructure. But wealways use debt responsibly - the fairest way to payfor our future, and get things moving.

The forecast rates increase of 2.9 per cent for2013/2014 compares with the 5.7 per cent averageannual rates increase from 2002 to 2010 of theformer Auckland region councils, clearly demonstratesthe benets of amalgamation. We can all be veryproud that the council is delivering better value while

increasing our investment levels in Aucklands future.

Weve had to take a hard look at where we can ndfurther savings and efciencies to secure rates at thislower level. Savings in this annual plan build on the$131 million of savings per annum that the councilhas found since its inception in November 2010.There will be more to come.

To this end, Auckland Council has made a smallnumber of changes to the services we offer. Thegoverning body (the mayor and councillors) tried tobe fair, and made trade-offs which balance the impacton service levels against the impact of increase forratepayers.

We need your input on these proposals to make thebest choices for our region. I want to emphasise thatno decisions will be made on these trade-offs until wehear what Aucklanders think early in 2013 and any

proposed changes to services will only happen afterthe annual plan is adopted in June.

Id like to acknowledge our hard-working staff whohave been involved in identifying rates reductionoptions for 2013/2014, without losing sight ofwhat we still have to deliver in 2012/2013 and ourresponsibilities to residents and ratepayers.

The council is committed to the mayors vision tocreate the worlds most liveable city. We will continueto invest in an integrated transport network, andother projects and initiatives that boost our economy

and create jobs. Rates will be kept as low as possible,even as we provide quality services and facilities forour communities. This document outlines how weplan to achieve that balancing act in a scally prudentand responsible manner.

Doug McKayChief Executive

of Auckland Council

MEssAgE froM tHE CHIEf ExECutIvE



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strAtEgIC ContExtThis draft annual plan has been shaped byAuckland Councils vision for the future outlinedin our key strategic planning documents, the

Auckland Plan (adopted in March 2012) andthe Long-term Plan (LTP) 2012-2022. These setclear goals and outcomes which the communitywant us to achieve.

The plan also reects our commitment to ourMori identity as a city and advancing theposition of Mori in our community.

Together, these provide the overarching strategicdirection for our decisions, projects and priorities.

imPlementing tHeAucklAnD PlAn

The Auckland Plan is the councils strategy to makeAuckland an even better place than it is now, and createthe worlds most liveable city. It describes the kind ofplace Aucklanders have told us they want, and outlineswhat is needed to achieve it. We are implementingthis vision year by year though a number of outcomes,strategic directions and priorities. You can read moreabout the outcomes in this section Introduction to

themes and groups of activities in part II of this volume.These activities have shaped the development of this planand been reected in the themes, activities and budgetsof the council projects. Further work is being done toensure stronger alignment to the Auckland Plan in futureannual and long-term plans.

The seven community outcomes below are the key goalsof the Auckland Plan. They are what we want Auckland tobe in 2040, and they have guided our decision-making forthis Annual Plan. They are:

1. a fair, safe and healthy Auckland

2. a green Auckland

3. an Auckland of prosperity and opportunity

4. a well-connected and accessible Auckland

5. a beautiful Auckland that is loved by its people

6. a culturally rich and creative Auckland

7. Te Hau o Te Whenua, Te Hau o Te Tangata a Mori identity that is Aucklands point of differencein the world.

For further information on the community outcomes,see part II of this volume.

trAnsForming ourcustomer serviceTo achieve on the Auckland Plan, the council is improving

its capability to deliver better customer experiences,and value for money for ratepayers and residents,through a transformation programme. Two years ago,Auckland Council was formed out of the amalgamationof eight different councils. This meant bringing togethermany different organisations operating systems.

By May 2012, we had put in place innovative governanceand planning, held the Rugby World Cup 2011,re-valued 510,000 of our citys homes, and much more,all while maintaining services. Behind the scenes, we havesuccessfully amalgamated the various councils nance,payroll, HR, procurement and communications functionsand systems, and all our websites.

However this work is ongoing and the transformationprogramme will continue over the next 3-5 years todeliver value to the community, more efciency, a bettercustomer experience, simplied and more user-friendlysystems including self-service systems.

Operating more effectively is crucial to controlling ourcosts. In future this will mean greater use of technology,sharing backroom services across the council and buildinga culture of improvement and performance.



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The auckland Plan is Thecouncils sTraTegy To make

auckland an even beTTer

Place Than iT is now

PArt i: strAtEgIC ContExt


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our commitment to mAoriAuckland Council is committed to meeting its

responsibilities in relation to Te Tiriti o Waitangi/theTreaty of Waitangi and its broader legal obligations toMori. It recognises these responsibilities are distinctfrom the Crowns Treaty obligations and fall within alocal government/Tmaki Makaurau context. The councilwill work to ensure its policies and actions consider theprotection and recognition of Mori rights and interestswithin Tmaki Makaurau, and how to address andcontribute to the needs and aspirations of Mori.

These commitments are articulated in the councils keystrategic planning documents the Auckland Plan and

the Long-term Plan 2012-2022. The overarching outcomebeing sought is a Mori identity that is Aucklands pointof difference in the world.

The councils strategic direction is to enable Moriaspirations through recognition of Te Tiriti o Waitangi/theTreaty of Waitangi and customary rights.

As part of our commitment to Mori, the funding andscope of the following mayoral priority project areas inthe annual plan will be investigated to determine theircontribution to Mori outcomes, and opportunities will beidentied where this contribution can be enhanced. The

priority project areas are:

major events a Mori event

transport, walking and cycling infrastructure Te Reosignage/narrative, Mori design and public artworks

Southern Initiative investigate Mori interests

Unitary Plan funding of mana whenua engagement,use of iwi management plans; sites of signicance andother Mori provisions

Tamaki Transformation project affordable housing,

Marae and associated education and cultural facilities

stormwater investment incorporate MataurangaMori.

The council is subject to a wide range of legal obligationsin relation to Te Tiriti o Waitangi/the Treaty of Waitangiand/or to Mori. There is no one source of the councilslegal obligations and these arise in different ways undera wide range of legislation.

In responding to the councils commitment and legalobligations, we have developed a Mori Responsiveness

Framework, focused on enhancing and guiding theAuckland Councils commitment to Mori.



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FulFilstAtutorymA oriobligAitons

vAlue

teAo

mA ori

enAb

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orioutcomes

enAbletetiritiowAitAngi

Effecti

ve

Mor

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ati

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AnEm

pow

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StrongMoriCommunities

tHe worlDs most liveAble cityte PAi me te wHAi rAwA o tAmAki

The Abundance and Prosperity of Auckland

frAMEwork drIvErs

Enable Te Tiriti o Waitangi /the Treaty of Waitangi outcomes.

Enable Mori outcomes.Fulfil statutory Mori obligations.

Value Te Ao Mori.

frAMEwork goAls

Effective Mori participationin democracy.

An empowered organisation.Strong Mori communities.

tHe mAori resPonsivenessFrAmework is DePicteD intHe Following DiAgrAm:

The council works to ensure the integration of MoriResponsiveness goals as part of our decision-makingprocesses, policy thinking, capability building and

provision of services, as well as being a good employerfor Mori.

The council also recognises the important role theIndependent Mori Statutory Board (IMSB) plays inadvocating for issues of signicance for Mori andensuring the council fulls its statutory obligations to

Mori, including statutory provisions related toTe Tiriti o Waitangi/the Treaty of Waitangi. Thecouncil is committed to working with the IMSB

to achieve its purpose.

PArt i: strAtEgIC ContExt


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wHAt wE ArE PlAnnIng for

2013/2014tHe Following Are our key Projects For 2013/2014to work towArDs tHe goAls oF tHe AucklAnD PlAn:



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PArt i: wHAt wE ArE PlAnnIng for 2013/2014


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kEY ProjECtsThe council enables decision-making and action

by, and on behalf of, communities to promote the

well-being of Aucklanders now and for the future.

Preparing for and conducting the 2013 local

government elections will ensure our governance

arrangements are both representative and effective.

Aucklands mana whenua groups are represented

on a selection body that appoints the IMSBs nine

members. Board members serve a three-year termof office. The council will support the selectionbody to appoint the IMSB 2013-2016.

Reviewing the performance of our council-controlled organisations (CCOs), includingdirectors remuneration and our smaller CCOsinherited from the previous councils, will ensureappropriate oversight and management of ourCCOs activities.

kEY ProjECtsThe council is involved in a wide range of planning andregulation activities to protect and enhance Aucklandsnatural and built environment, protect public healthand safety, and ensure that Auckland is an attractiveand desirable city that copes well with pressures fromdevelopment and growth.

The development of Auckland Councils firstUnitary Plan will combine the best of our existingdistrict and regional plans with the direction ofthe Auckland Plan to provide consistent, clear andsimplified rules on what development can happenand where. While funding was provided in theLTP 2012-2022, additional resourcing is essential($753,000) for more extensive communityengagement to deliver this complex and challengingpiece of work within the tight deadline.

The Auckland Plans Development Strategy sets out

how Auckland will change and grow over the next30 years. Given population growth, Auckland needsto enable balanced residential and business growthin existing urban areas and in new greenfieldsareas. The council is committed to providing60 per cent to 70 per cent of total new dwellingsinside the existing urban area. The DevelopmentStrategy Action Plan seeks to increase the supply ofhousing and to ensure it becomes more affordablefor people on low to middle incomes.

Implementing the Auckland Plan includes thedevelopment of supporting strategies and actionplans such as the Children and Young PeopleStrategic Action Plan, the Community DevelopmentStrategy, the Housing Strategic Action Plan andthe Arts and Culture Strategy. Area plans will help

to implement the directions and outcomes of theAuckland Plan at a local level and reflect aspirationsin the local board plans.

The Southern Initiative is one of the two place-basedinitiatives in the Auckland Plan designed to boosteducational achievement, economic development,

job growth, increased public transport, betterhousing and improved social conditions for childrenand families in the south. In 2013/2014, we willimplement actions and initiatives as part of ourmulti-sector action plan.

The LTP 2012-2022 included funding to enable thecouncil to investigate, and consult upon, selectedalternative funding options for transport. Furtherwork will be done to enable the council and othertransport funding and delivery agencies to fundAucklands transport needs.

govErnAnCE

PlAnnIng



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CoMMErCIAl And InvEstMEnt EConoMIC dEvEloPMEnt

kEY ProjECtsThe council uses the CCOs Auckland CouncilProperty Limited and Auckland CouncilInvestments Limited as well as a range of smallerscale commercial entities to optimise nancialreturns while supporting the achievement of thecouncils broader strategies.

Continuation of the Hobsonville MarinePrecinct (Yard 37) development ($9.5 million).Creating a dedicated environment for themarine industry, including boat building,

maintenance, marine services and retail, whichis projected to create up to 2000 jobs.

Ongoing revitalisation of the Papatoetoe TownCentre ($500,000). The planned refurbishmentof the existing mall will improve public safety,parking layout and pedestrian access to thestadium reserve. The project will also providenew housing.

Continued development of Ormiston TownCentre ($2.4 million). Once complete, this willinclude retail, cafs, restaurants, commercial

office space, medical facilities, housingopportunities and open spaces for recreation,library and a community/arts centre.

kEY ProjECtsThe council is committed to driving economicgrowth and development for the city. Aneconomically vibrant Auckland will investin people to boost skills and educationalachievement, create jobs, grow existing and newbusinesses and attract more tourists and foreigninvestment to help deliver the step-change weurgently need. We can enhance our ability tocompete internationally in tourism, major events,and business and sector development, therebyimproving social and economic well-being for

Aucklanders and New Zealand as a whole.

Attracting and delivering major signatureevents such as the V8 Supercars, Asia PacificChampionship Ironman 70.3, World BMXChampionships and the Pasifika Festivalcontributes to Aucklanders social andeconomic well-being through creating jobs andsupporting local businesses.

Promoting Auckland as a destination throughthe roll out of our Auckland Visitor Plan willhelp grow the visitor economy. This includeslaunching a new Great Walk product in Aucklandand initiating a new, major international anddomestic marketing campaign.

Managing transformational projects thatdeliver on the City Centre Masterplan,the redevelopment of New Lynn and therevitalisation of the waterfront, helpspromote Auckland as a key destination andevents venue for businesses, residents andvisitors. It is critical in creating a stunning andeconomically dynamic city centre full of life

and activity. The next stage of sustainableurban transformation of the Wynyard Quarteris the central area. Progress on improvingpublic access to the water will include thewaterfront walkway and cycleway linkingWynyard Quarter to Westhaven and the HalseyStreet upgrade. Our programme will continueto deliver diverse activities and events in thenew waterfront area to attract visitors, interimuses and support local businesses.



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kEY ProjECtsThe council aims to protect and enhanceAucklands natural environment by seekingto minimise the effects of development andpollution in the regions air, land and waterresources and ensuring world class urban design inour built environment.

The Built Heritage Protection Fund will provide$3.1 million this year for two area-basedheritage assessments. The council will alsobe developing a policy to incentivise theprotection and restoration of natural and

historic heritage.

Initiate development of a marine spatial planfor the Hauraki Gulf Marine Park. This plan willfind ways to address existing problems andmanage activities in the Gulf to reduce futurenegative impacts.

Project Twin Streams is a restoration projectcarried out by the community and council onfive streams in Waitkere. It is restoring 56 kmof stream banks with native trees to improvewater quality. The $1.5 million for this year willinclude funding riparian planting, weed controlto help plants establish, communications onthe project and coordination.

Implementation of the Auckland BiodiversityStrategy that was adopted in July 2012.This includes developing a new Regional PestManagement Plan, managing threatenedecosystems, working with iwi to restoreand enhance ecosystems and ongoingmonitoring, reporting and reviewing of theBiodiversity Strategy.

kEY ProjECtsThrough this activity the council provides high-quality refuse collection and disposal and aims todeliver these services more efciently, nd betterways to recover and re-use resources, and sendless waste to landll.

Operating a $500,000 funding scheme in 2013to seed fund community and business wasteminimisation initiatives to reduce waste andencourage effective waste management.

The 2013/2014 year will also see pilots and

trials for new services which will be rolled outfrom 2015. These include services such asdisposer pays charging for refuse using RadioFrequency Identification tags on bins andkerbside organics collections.

kEY ProjECtsThe council manages stormwater infrastructure toprotect people, property and the environment fromthe adverse effects of flooding, erosion, streamdegradation and water pollution.

Investing in our stormwater network ($17.8million) to mitigate the erosion of streams andforeshore areas, and flooding potential, andimprove the stormwater quality. This includesRanfurly Road (tara) project (stages 3-6),South Street overland diversion (Papakura),

Stanmore Road to Fife Street (Waitemat) andKaraka/Dominion (Devonport-Takapuna).

Capital projects ($14.9 million) on the FloodAlleviation Programme that addresses andmanages flooding in areas of Auckland. Thisincludes Madills Farm and Freemans Bay.

$800,000 will be spent on LaRosa StreamDay Lighting. Day lighting opens up pipedstreams, improving stormwater quality andcreates recreational spaces around Aucklandswaterways.

buIlt And nAturAl EnvIronMEnt

storMwAtEr Andflood ProtECtIon

solId wAstE



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kEY ProjECtsThe council is providing Auckland with a transportnetwork that is safe and efcient to use. We alsoprovide funding to Auckland Transport with the aimof connecting people and places with easy, affordableaccess to safe and sustainable transport choices.

Continued investigation and property acquisitionfor the City Rail Link (CRL) project ($178 million).

This includes protection of the route. The CRLenables a doubling of passenger rail services bymaking Britomart a through station rather than aterminating station.

Completion of Phase one of AMETI ($85 million).This is a major, multi-year project that will deliverincreased passenger transport, transport andgrowth demand management and economicopportunities for the south-east of the Aucklandregion. The first stage includes the PanmureTransport Plan to support business and the

residential growth planned for Glen Innes, Panmure,Mt Wellington and Sylvia Park.

Electrification of the rail network continues.The council is funding the new electric trainsrequired ($154 million) and the upgrade of railstations where necessary.

Stage one implementation of the upgrade to thepublic transport network, with new services insouth Auckland and new bus-rail interchangesat thuhu and Manukau ($5 million). This willprovide a simpler, connected network with more

frequent service options throughout the day.

Upgrades begin to iconic Dominion Road($9.2 million). This will improve bus speeds andreliability on this key transport route, new cycleroutes improving safety and pedestrian facilities,creating even more of a thriving community.

Upgrade and widening of Albany Highway, withover $32.1 million of investment planned during2013/2014. This includes road cycle facilities andwider footpaths, with new medians for safety,undergrounding power and telecommunicationlines with planting and landscaping to make thearea more attractive.

Continuation of the major upgrade of TivertonRoad and Wolverton Streets ($10.3 million). Thiswill provide an improved and safer experiencefor all users of this busy 2.2km stretch of arterialroad between New Windsor and New Lynn,

while strengthening connectivity of the area andproviding capacity for future transport demands.

To support the new ferry service in Hobsonville,a park and ride facility will be developed, addingto the creation of a waterfront amenity forHobsonville residents and connectivity to the CBD.

Continued implementation of walking and cyclinginitiatives ($10.3 million). This includes improvedand new school, community and business travelplans to provide greater transport choices to

kEY ProjECtsWatercare works to deliver high quality, reliable andaffordable water supply and wastewater services toAuckland. In addition to operating and maintainingthe existing network, Watercare is working to providefor growth in the region.

This year, Watercare will invest $342 million torenew and upgrade existing infrastructure anddeliver new infrastructure. Key projects during

2013/2014 include an upgrade of the MngereWastewater Treatment Plant to cater for growthand protect the Manukau Harbour, progressingthe installation of the Hunua 4 bulk water main toincrease the security of Aucklands water supply,and planning for the Central Interceptor to caterfor growth and reduce wastewater overflows toWaitemat Harbour.

wAtEr suPPlY And wAstEwAtEr

trAnsPort



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CoMMunItY

kEY ProjECtsServices provided under the community theme helpcreate a strong, inclusive and equitable society that

ensures opportunity for all Aucklanders.Upgrade and expansion of regional cemeteries at

Manukau Memorial Gardens and Waikumete toprovide burial facilities that meet Aucklandersneeds ($1.5 million).

Initiatives to ensure Aucklanders are well-preparedto respond to an emergency, and to enhancerural fire readiness, are a key focus for EmergencyManagement. This year it includes investment ina public alerting system to advise the public andminimise the impact on Auckland.

Over the next year, the council plans to spend upto $23.2 million on capital expenditure on newlibrary development, including the completion ofthe Waiheke, and begin work on new libraries atthuhu, Massey-Westgate, Ranui, Devonport andTe Atatu. These facilities will provide much-neededadditional capacity.

Completion of a programme of social housingrefurbishment and renewal works totalling $1.2million to support low-income older people to beactive and independent within their communities.

The Youth Connections Programme (launchedin June 2012 by the mayor) is a joint initiative

between Auckland Council, the Tindall Foundationand Auckland Airport Community Trust to linkschool leavers with further education, trainingand employment.

A key challenge will be bringing together the verydifferent approaches to community developmentof the former councils and developing a consistentset of policies and delivery models. We willdeliver programmes that strengthen and connectcommunities, with a focus on youth, migrants andthose most in need; and to prevent and reduceviolence, crime and injury, in delivering saferenvironments.

Upgrade and develop new facilities to give thecommunity places to meet and participate inactivities. Key priorities in 2013/2014 are:upgrade of tara-Papatoetoe communityfacilities ($500,000) and assessing the need fora community facility in the Upper Harbour area.



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kEY ProjECtsThe council supports a range of arts services andfacilities across Auckland including galleries, events,

museums, parks and the zoo to ensure Auckland is adynamic, exciting and distinctive area in which to live,work and visit.

Acquiring land for parks across the region($36.4 million) to provide residents with qualityopen spaces for our growing city.

Progressing with the upgrade of the OnehungaBay foreshore, bringing back a natural coastaledge and creating recreational opportunities forthe Onehunga and wider community. The parkdevelopment will provide high-quality open

space, beaches, a boat ramp and picnic areas. Anew bridge will connect the new parkland to theOnehunga lagoon ($10.4 million).

Redeveloping the Lopdell House precinct inTitirangi involving the build of a new carpark, therestoration of Lopdell Hall, the seismic upgrade andheritage restoration of Lopdell House and buildinga new gallery which will provide larger and climatecontrolled exhibition spaces ($6.4 million).

Progressing development of the thuhuswimming pool ($8.4 million in 2013/2014) as part

of the development of the thuhu RecreationPrecinct, which also involves a new library and

open-spaces. A new swimming pool in thuhuwill fill a gap in the regional aquatic network and

contribute to the development of the precinct asa hub of community activity and a focal point forthuhu.

Commencing construction of the Glen InnesMusic and Arts Centre, which when completed in

July 2015, will be providing tailored programmesand experiences for young people in Glen Innes($5 million).

Upgrading and improving the acoustics in theTown Hall precinct to enable sound isolationbetween the Aotea Square, the Great Hall and

Concert Chamber so the Town Hall can hostmultiple events at the same time without noisespilling into other rooms ($2.5 million).

Commencing construction of the northernrecreation facility in Albany ($10.6 million in2013/2014), expected to be completed by 2015.It will provide a community hub at North HarbourStadium with aquatic and fitness facilities for theUpper Harbour and Bays local board areas.

lIfEstYlE And CulturE



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kEY ConsultAtIon toPICsLast year, Auckland Council prepared its rstlong-term plan (LTP), and as part of that heldan extensive consultation process. We received

10,084 submissions and spent many hourslistening to the communitys feedback beforedeciding on the nal version of the LTP2012-2022.

As this annual plan represents year two of the LTP2012-2022, we are consulting primarily on those areaswhere we are proposing changes to the LTP 2012-2022.As set out earlier in this document, the proposed changesand amendments do not undermine the overall directionof the Auckland Plan and LTP 2012-2022 but are minoradjustments aimed at reducing costs (and therefore

rates) and putting some additional resource into a fewareas that have a shortfall.

Much of the reduction in cost has been achieved byreducing some of our corporate costs such as informationtechnology, legal services, human resources andcommunications. We have also reduced our consultantcosts and, instead, will use existing staff resource todeliver projects.

rEduCtIon In sErvICEsWhile many of the cost savings that were identied willnot have any impact on frontline customer services, thereare two areas that will impact on some members of the

community and on which we would like your feedback.

Mowing of berms in the former Auckland City Councilarea most of the former councils did not provide aberm mowing service but the former Auckland CityCouncil did. This means that, currently, there aredifferent levels of service across Auckland. We areproposing to remove the service from central Auckland,which will save all ratepayers $3 million. To extend theservice to all of Auckland would cost approximately$12-15 million.

Free music downloads at libraries currently libraryusers can download three free pieces of music perweek. This costs all ratepayers $205,000 per annum.We are proposing to cease this service.

See submission question 1 in submission formon page 204.



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your rAtes in 2013/2014The proposed average rates increase for 2013/2014

is 2.9 per cent, which is considerably lower thanthe 4.8 per cent projected for 2013/2014 in theLTP 2012-2022. This has been achieved by reningbudgets and looking for savings that did notcompromise the strategic intent of the LTP 2012-2022 and resulted in only minor reductions to someservice levels.

Your rates may increase by a higher or lowerpercentage than this, depending on your particularcircumstances. In particular, the transition from theeight rating systems of the former councils into one

system has resulted in signicant changes to ratesboth up and down for many people. The councilsRates Transition Management Policy effectivelyspreads this impact out over three years.

Rate increases for residential ratepayers will becapped at 10 per cent in 2013/2014, with ratedecreases capped at 2.5 per cent to fund this. Forbusiness ratepayers, the impact of the move to thesingle rates policy will be phased in over three years,with one third of the change applying each year.

Your rates are comprised of general rates that apply

to all ratepayers, and targeted rates that apply toa subset of ratepayers. Your general rates include axed component (Uniform Annual General Chargeor UAGC) of $363.35 (including GST) which will bepaid by all ratepayers. This UAGC will be charged oneach separately used or inhabited part of a property,e.g. each shop in a mall. The balance of the rates isspread across all ratepayers based on the capital valueof their property; with different charges applying

to different categories of ratepayers (e.g. urban

residential or rural business).

The council has a long-term differential strategy on itsvalue-based general rate, lowering the differential forbusinesses over 10 years. The 2013/2014 period willbe the rst year of the application of the long-termdifferential strategy. This reduces the urban businessdifferential to 2.53 and the rural business differentialto 2.28. It will also be the rst year of the strategy tomove the Franklin business differential in line withthe business differential in the rest of the region. Thisincreases the urban Franklin business differential to 2.13

and the rural Franklin business differential to 1.92.The average rates increase of 2.9 per cent for2013/2014 will be applied proportionately to bothUAGC and the part of your rates based on capital value.

We are also proposing to introduce two local activitytargeted rates in the Mngere-thuhu and tara-Papatoetoe local board areas. This will be chargedon properties in these local board areas only, and isto fund free entry for adults 17 years and over toswimming pools located in these areas. Full detailsof these proposals can be found in Part II of Volume

3 and in the respective local board agreements inVolume 2.

The full details of the councils proposed rating policyfor 2013/2014 including policies on discounts andpenalties are set out in Part II and policies on ratesremissions in Part III of Volume 3 of this draft plan.

See submission question 2.



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HAIrdrEssEr lICEnsE fEEsAs with food premise fees these were approached verydifferently across Auckland. These fees currently rangefrom $141 to $301. It is proposed to standardise the

annual fee at $207 which will recover 100 per cent ofcouncil costs and has no significant impact on rates.

MoorIng PErMIt fEEsThese are largely standardised across Auckland, apartfrom the former Rodney District Council area. It isproposed that the Rodney area is charged at the same

rate as other parts of Auckland and this is set at a levelto recover 100 per cent of the costs i.e. swing mooring$215.50 and pile mooring $790.50 per annum. This hasvery little impact on rates.

increAseD cost recovery

AnD stAnDArDisAtion oFregionAl FeesAs part of the LTP 2012-2022, a number of fees werereviewed and standardised across Auckland. Howevera few fees were postponed for consideration in theAnnual Plan 2013/2014. In addition, the cost recovery ofparticular activities from fees, rather than rates, has beenfurther considered.

The following changes to fees and charges or costrecovery levels will amend the LTP 2012-2022.

food PrEMIsE lICEnsIng fEEsThese were approached very differently by the previouscouncils. As a result, there are 153 different fees acrossAuckland, so the proposed changes are substantial insome areas. Currently the council is recovering 63 percent of its costs through fees ratepayers meet therest of the costs. We are proposing to recover 90 percent of costs and to have a consistent level of feesacross Auckland. The changes will be introduced overfive years to mitigate increases in any one year. Oncefully implemented, these proposed changes will reducethe cost to ratepayers by $2 million. In 2013/2014, thisreduces the cost to rate payers by $330,000.

The table below shows the full fee structure. Licenceholders on lower fees will have these gradually increasedover ve years.

Grade High Risk Medium Risk Low Risk

A

Annual fee $1,014 Up to 2 full inspections

per year 5285 premises

Annual fee $525 1 full inspection per year 1477 premises

Annual fee $394 1 full inspection per year 508 premises

B

Annual fee $1,194 2 full inspections and 2

follow-up inspections per year 667 premises

Annual fee $883

Up to 2 full inspections andup to 2 follow-up inspectionsper year

186 premises

Annual fee $448 1 full inspection and 1

follow-up inspection per year 64 premises

D





Annual fee $609 2 full inspections and 2


E

Annual fee $1,731 At least 4 full inspections and

as many follow up inspections

as required per year 8 premises

Annual fee $1,385 At least 4 full inspections and



Annual fee $824 At least 3 full inspections and



Regrading $571 (for all risks and grades)

Newpremises

$239 (for all risks and grades)



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swIMMIng Pool fEnCE InsPECtIonsCurrently the fees for the three-yearly inspection of

swimming pool fences are set so that the rst inspectionis free, and second and subsequent inspections arecharged at $250 each. The new proposal is to charge therst inspection at $75 and subsequent inspections areat $125 each. This will reduce rates by $160,000 andensure all pool owners make a contribution to the cost ofinspections

wAItA-

kErE trAnsfEr stAtIonGreen waste fees are well below other transfer stations.It is proposed to increase the gate charge from $87.80 to$95 per tonne, saving ratepayers $36,000 per annum.

bACH And CAMPIng fEEsA number of our regional parks provide bach and

camping accommodation at relatively modest cost.We are proposing to increase bach fees by 10 per centduring peak period and 5 per cent off peak. Vehicle-basedcamping fees are proposed to increase by $1 per night foradults with no increase for children. This reduces rates byapproximately $60,000.

solId wAstE bYlAw fEEsThe council adopted the Solid Waste Bylaw 2012 inOctober. The bylaw requires all waste collectors anddonation collection point operators across Aucklandto be licensed by the council from October 2013. This

will increase the cost to the Council by $75,000 in2013/2014. The council is proposing changes to theexisting fee structure to increase the share of cost paidfor by these operators and to meet the additional cost ofimplementing the bylaw. The proposed changes wouldincrease the revenue to the council by $115,000 in2013/2014.

See submission question 3 to have your sayon any of the above fee changes.

dog fEEsA proposal to substantially increase the cost recoveryfrom dog owners was put forward as part of the LTP2012-2022. There was a signicant level of feedbackfrom dog owners and we agreed to defer considerationof dog fees until after the adoption of the new dog policyand bylaw. This is now completed and a new set of feesis now proposed for feedback. The proposal includes

moving from the current 51 per cent cost recovery to60 per cent over two years. In 2013/2014, this reducesthe cost to ratepayers by $800,000 with a further$600,000 reduction in 2014/2015. In 2013/2014,examples of new fees would be:

Fee descriptionCurrent fee(incl. GST)

Proposed 2013/2014(incl. GST)

Proposed 2014/2015(incl. GST)

Responsible dog owner licence (RDOL) withde-sexed dog

$49 $55 $60

De-sexed dog (no RDOL) $77 $87 $96

Standard fee $107 $121 $134

Supergold Community Services ComboCard holder

$49 $55 $60

Working farm dog $24 $27 $30



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PArks And oPEn sPACEThe council has an extensive network of parks andopen spaces across Auckland. Some savings havebeen identied by reduced use of consultants andstandardisation of mowing contracts that do not impacton service. Other proposals that affect parks are:

increased provision for maintenance and restoration ofvolcanic cones of $388,000 per annum

increased resourcing for co-ordinating parks volunteersacross Auckland of $154,000 per annum

capital expenditure for a caf in the Arataki visitor centreof $56,000 which will make a small profit contribution.


CoMMunItY And EvEntsAt a local level, there is a wide range of events and

community groups supported by local boards. At theregional level, Auckland Tourism, Events and EconomicDevelopment (ATEED) organise events with a positiveeconomic impact for Auckland. A gap has been identiedwith funding for events and community groups that spanmore than one local board area but do not meet theATEED criteria. An additional $307,000 is proposed tosupport these events and groups.

In addition, the 2013/2014 year sees the start of theWorld War 1 one hundred year commemorations.Funding of $123,000 has been provided to support eventsand $89,000 to accelerate refurbishments of cenotaphs,war graves and public war memorials.


PlAnnIng And EConoMIC dEvEloPMEntFollowing the adoption of the Auckland Plan, one ofour highest priority projects is the development ofthe Unitary Plan which will guide the future growth ofAuckland. In order to make sure that we have as muchearly input as possible from Aucklanders, we are proposingto add $753,000 to this project which will be partly offsetby a reduction in local planning budgets of $439,000.

We are also proposing to add $102,000 per annum toour budget for overseas trade missions which have beenextremely successful in creating new opportunities forAuckland based businesses.


rAtEs rEMIssIon And PostPonEMEnt PolICYWe propose to extend the qualifying criteria in theRemission for residents of licence to occupy retirementvillages scheme to papakainga1 housing. This will enablethe council to remit the uniform annual general chargeon residents of papakainga housing who would otherwisequalify for the central government rates rebate, except thatthey occupy the unit under a licence to occupy agreement.

We also propose to replace the Rates transitionmanagement grant scheme with a Rates transitionmanagement remission scheme with the same benetsand qualifying criteria as the grant scheme. This changeis introduced because remissions are designed to addressanomalies arising from the general application of thecouncils rating policy. This will have no impact on the

benets those eligible for this scheme receive.


MAorI frEEHold lAnd rAtEs rEMIssIonAnd PostPonEMEnt PolICYAt present no Mori freehold land properties qualify forthe rates remission for community use. To ensure thatsupport is available for these properties it is proposed toamend the policy to provide for the rates attributable tothe value of the land to be remitted. This is estimated tocost $50,000 per annum.

As land is returned to Mori through the settlementprocess, many of the types of activities the council wishesto support, such as papakainga housing developmentand the preservation of heritage sites are now occurringon properties not in Mori freehold land title. To supportthese properties, the remission policy is being extendedto include Mori land held in multiple ownership at anestimated cost of $100,000 per annum.


fundIng for dEvEloPMEnt of stAgE two of

tHE tElstrAClEAr PACIfIC EvEnts CEntrEThe Counties Manukau Pacic Trust is seeking fundingfrom the council to undertake the second stage of itsdevelopment of the TelstraClear Pacic Events Centre.This involves the construction of a white water raftingand kayaking course along with associated cultural andeducational facilities. The development is forecast tobring $2 million additional spending per annum to theAuckland region, and provide for 15,000 school children toparticipate in white water rafting and kayaking and 30,000in other programmes each year. The total cost of thedevelopment is $59 million. Regional Facilities Aucklands

(RFA) contribution will be funded from the net proceedsof the sale of adjacent land owned by RFA (estimated at$20-30 million). Funding is also being sought from avariety of other external sources. There are some nancialrisks associated with the project. Further details of theproposal including the benets, risks and other options canbe found in part IV of Volume 3.

This will amend the LTP 2012-2022.


Notes:1. Papakainga is a form of community housing development which occurs

on multiply-owned Mori or ancestral land. It may be used to providepensioner housing for kaumtua or other forms of social housing.



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review oF tHe cAPitAl ProgrAmme 2013/2014The Long-term Plan 2012-2022 forecast that AucklandCouncil would invest $20 billion of capital expenditureover 10 years to provide new assets as well as renew andupgrade existing assets.

The $1.7 billion capital programme for 2013/2014 setout in this draft annual plan is based on year two ofthe Long-term Plan after adjusting for revised ination

projections, capital expenditure carried forward from2012/2013 and some minor budget renements.

Since the budgets for this draft annual plan wereadopted, there has been further scrutiny of the capitalprogramme to review the timeframes and fundingrequirements of some specic projects. There has beenno re-litigation of strategic priorities or deletion ofprojects that have been agreed with the community.

The capital programme will continue to be reviewed asthe Annual Plan 2013/2014 is nalised. At this stage thecouncil has identied $93 million of capital expenditurethat is currently budgeted for 2012/2013 but is unlikelyto be spent within that timeframe. Apart from somerevisions to project cost estimates, this expenditure willbe spent over the remaining years of the LTP 2012-2022.The additional capital expenditure in 2013/2014 wouldbe $42 million or 2.5 per cent of the capital programme.

It is intended that further work on the capital expenditurereview will include an in-depth look at the capitalexpenditure planned to be delivered by AucklandTransport and Watercare.



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How to HAvE Your sAYDrAFt AnnuAl PlAn2013/2014 consultAtion ProcessThis is your opportunity to ensure the mayor, councillors and local board members

hear your views about the draft Annual Plan 2013/2014 and draft local boardagreements and proposed changes and amendments to the Long-term Plan2012-2022. The consultation and submission process is part of the specialconsultative procedure outlined within the Local Government Act 2002.



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HeArings

Auckland Council provides opportunities forresidents to have a say in shaping plans that affect

them, consistent with legislative requirements.

Making an oral submission provides you with the

opportunity to reinforce what you have said in

your written submission. It also allows elected

representatives the opportunity to clarify points

raised in your submission.

Your submission form will ask you to indicate

whether you wish to speak in support of your

annual plan submission. If you indicate that youdo wish to attend a hearing, you will be contacted

regarding a time and place for you to speak in

support of your submission. Notication may be

at short notice and hearings are generally open to

the public and the news media.

In order to help coordinate the hearings schedule,

we need you to provide as much information as

possible on your submission form, including:

an indication of the most important topic from

your submission

your local board area

an indication of which submitter group and/or

organisation you are submitting on behalf of

make sure you provide us with clearly legible

contact details.

To obtain further information or copies of this

draft plan, download from: www.aucklandcouncil.

govt.nz/annualplan. If you have any further

queries about the draft Annual Plan 2013/2014 or

the submission process, please call 09 301 0101

or email [email protected]

mAking A submissionHave your say on any part of this draft annual plan and

your local boards draft agreement. Submissions will beaccepted between 24 January and 25 February 2013.

You can make a submission in the following ways:

onlInEWe recommend you make your submissions online at:www.aucklandcouncil.govt.nz/annualplan

You can use the internet free of charge at anyAuckland Council library.

EMAIlYou can also send us your submission form via email.Simply complete the submission form, scan it (PDF),attach to your email and send it to:[email protected]

bY PostThe submission form is available to download from ourwebsite or on request at any Auckland library or servicecentre. Post your completed submission to us using thefreepost details on the back of your submission form to:

Draft Annual Plan 2013/2014Auckland Council

Freepost Authority 239296Private Bag 92300Auckland 1142

In PErsonYou can deliver your submission form in person to yournearest local library, council service centre or a localboard ofce. A list of our service centres and contactinformation can be found in part IV of this volume.

The closing date for submissions is 4pm on Monday,25 February 2013. Please ensure we have yoursubmission before this time, as we will not accept latesubmissions.

Please note that all submissions (including personaldetails name, address and phone number) will bemade public.

PArt i: How to HAvE Your sAY


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our FinAnciAl strAtegy

The Long-term Plan (LTP) 2012-2022 set therst budget for delivery of the aspirations ofthe Auckland Plan. It also set the councils rstnancial strategy that enables the signicantinvestment required to deliver on the AucklandPlan, while maintaining affordability for currentand future ratepayers.

To provide a degree of certainty to ratepayers, thecouncils nancial strategy sets a limit on the averagegeneral rate increases to 4.9 per cent for the nancial

years 2013/2014 to 2021/2022. The 2.9 per centproposed average rates increase for 2013/2014 is wellbelow that limit.

The nancial strategy also sets limits on the councilsborrowing to maintain debt at a sustainable level andprovide exibility to deal with unforeseen events. Whiletotal group debt is projected to increase from $5.7 billionto $6.7 billion in 2013/2014, it will still be at a prudentlevel in comparison to our income and can be managedwithin our limits on rates and debt. Council considersthis increase in debt to be appropriate on the basis thatit is primarily driven by investment in new assets and thebenet of the expenditure is spread over time, therebypromoting intergenerational equity.

The following tables show how the key nancialparameters for the annual plan compares to theLTP 2012-2022 and the limits set in the nancial strategy.

Table 1: Key nancial parameters for 2013/2014

Parameter ($ Millions) Annual Plan Long-term Plan

Total operating expenditure1 3,180 3,208

Total capital expenditure 1,677 1,685

Rates revenue2 1,437 1,464

Total assets3 39,145 39,427

Borrowing 6,700 6,692

Total equity 29,926 30,379

Table 2: Financial strategy compliance for 2013/2014

Parameter Annual Plan Long-term Plan Limit

Average rates increase 2.9% 4.8% 4.9%

Net debt as percentage of total revenue 189.4% 187.2% < 275%

Net interest as percentage of total revenue 10.4% 10.5%


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investing in AucklAnDTo maintain its assets, cater for growth and deliver thelevel of service improvements required to deliver on

the Auckland Plan vision, the Auckland Council groupis forecasting capital expenditure of $1.7 billion andoperating expenditure of $3.2 billion in 2013/2014.

CAPItAl ExPEndIturECapital expenditure (capex) is for purchasing, building,replacing or developing the citys assets (for exampleroads, libraries, parks and sports elds).

Table 3 provides an overview of capital expenditure byactivity theme for 2013/2014. The majority of capitalexpenditure is forecast to be spent on transport, followedby water supply and wastewater, and the lifestyle andculture themes.

The capital programme is driven by:

service level improvements $728.6 million(43 per cent) including $593 million for roading andpublic transport

renewal of existing assets $524.1 million(31 per cent) including $309.1 million to maintainexisting service levels associated with networkinfrastructure (transport, water, wastewater, andstormwater)

growth $424 million (25 per cent) to cater foradditional demand arising from changes in populationand land use.

Table 3: 2013/2014 gross capital expenditure for groupby theme

Theme $000Percentage

of total capex

Governance 1,702 0%

Planning 0 0%

Commercial andinvestment

42,565 3%

Economicdevelopment

123,840 7%

Built and naturalenvironment

12,273 1%

Solid waste 699 0%

Stormwater andood protection 81,975 5%

Water supply andwastewater

342,096 20%

Transport 860,539 51%

Community 65,409 4%

Lifestyle and culture 225,696 13%

Corporate support 79,833 5%

Carried forwardcapital expenditure1

(159,966) -10%

Total capitalexpenditure

1,676,661 100%

Notes:1. This represents the proportion of capital expenditure planned for

2013/2014 that is anticipated to remain unspent by the end of thenancial year and carried forward into future years.

PArt i: fInAnCIAl ovErvIEw


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oPErAtIng ExPEndIturEOperating expenditure (opex) covers the councils day-to-day operations and services,from collecting rubbish to maintaining parks and issuing building consents. Table 4provides the split of operating expenditure by activity theme. Transport is by far thelargest area of operating expenditure (31 per cent).

Table 4: 2013/2014 gross operating expenditure for group by theme

Theme $000Percentage

of total opex

Governance 54,723 2%

Planning 47,717 2%

Commercial and investment 203,732 6%

Economic development 158,210 5%

Built and natural environment 229,685 7%

Solid waste 98,157 3%

Stormwater and ood protection 110,073 3%

Water supply and wastewater 507,460 16%

Transport 994,130 31%

Community 182,015 6%

Lifestyle and culture 487,505 15%

Corporate support 106,747 3%

Total operating expenditure 3,180,154 100%

Councils operating expenditure is forecast to increase from $3 billion in 2012/2013to $3.2 billion in 2013/2014. This increase is largely as a result of the consequentialimpact of the capital programme, growth in number of households and businesses tobe serviced, inationary price increases and service level increases.

The council has an efciency programme to leverage savings from the amalgamationand build a culture of value for money. The programme has been successful inidentifying ongoing efciency gains and other cost savings of $131 million from2012/2013; permanently reducing the general rates requirement by this amount.

ongoing efficiency gains

and oTher cosT savings of$131 million from 2012/2013



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FunDing tHe investmentWhen setting our nancial strategy in the LTP 2012-2022, the council decided to fundits expenditure primarily through rates, user charges and borrowing. This mix of fundingsources represented the councils view on the most appropriate way to fund its activitiesbased on the application of the funding principles contained in its revenue and nancingpolicy.

Table 5: 2013/2014 funding source overview

Funding source $000Percentage oftotal funding

source

General rates 1,339,424 30%

Targeted rates 97,696 2%Activity user chargesand fees

1,228,982 27%

Borrowings 1,158,159 26%

Grants and subsidies 409,927 9%

Developmentcontributions

129,320 3%

Asset sales 57,684 1%

Other revenue 51,786 1%

Total funding 4,472,978 100%

Table 6: 2013/2014 group operating surplus

Funding source $000

Total income 3,223,162

Total expenditure 3,198,307

Operating surplus/(decit)1

24,855

User charges are the primary means of funding the water and wastewater servicesprovided by Watercare Services Limited. Water and wastewater charges are maintainedat minimum levels consistent with the effective conduct of Watercares total businessand the maintenance of the long-term integrity of its assets. For 2013/2014, waterprices are projected to increase by 3.5 per cent and wastewater prices are projected toincrease by 3.8 per cent.

The total revenue for water and wastewater in 2013/2014 is forecast to be $0.5 billion.

Despite the substantial investment in capital and operating expenditure, theAuckland Council group is projecting an operating surplus of $24 million in 2013/2014(refer table 6 below).

The chart below shows how each $100 of general ratesfunding is applied to specic themes. The largest proportionof rates funding is used to fund the Transport theme,followed by Lifestyle and Culture which includes fundingfor events, parks, recreation and arts services.

Built and natural

environment, $8

Transport,$35 Community,

$11

Economicdevelopment,$7

Governance,$4

Other, $3

Stormwater andood protection, $7

Lifestyle and

culture,* $25

*includes events, parks, recreation and art services

Notes:1. This is the operating surplus/(decit) before tax and share of equity

accounted investments.

PArt i: fInAnCIAl ovErvIEw


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Part II: Our activities

Introduction to themes and groups of activities


Introduction to themes and groups of activitiesThe information in this chapter will provide you with a good understanding of Auckland Councils anticipated

activities over the 2013/2014 year.

We have grouped the many services the council provides and the things it does into themes, groups of activities

and activities in an easy-to-understand format, from providing services and amenities to our residents and

visitors to managing our organisation and processes.

With Aucklands population forecast to grow by over one million people over the next 30 years, we must start to

lay the foundations to cope with that huge growth and the resulting increased demand for services, and to

maximise our efficiency. We have identified seven key outcomes.

Each group of activities contributes to one or more of those outcomes, as shown below.

Symbols guide

A fair, safe and healthy Auckland

Auckland is a strong and equitable society

where social and economic disadvantage is

reduced, particularly for children and young

people. It has strong families and cohesive

communities. People value the excellent

services available to them and participation in

civic activities is significantly higher than at

present. Aucklanders are healthier, more

active and live in higher quality housing than in

2012.

A green Auckland

Our waterways and coastlines are cleaner,

healthier and full of life. We protect the natural

environment and are recognised for our clean air,

quality water supplies and low greenhouse gas

emissions, Our urban development is world-

leading.

Many Aucklanders prefer to use public transport or

telecommute, our energy supply is resilient (and

sustainably sourced) and our households are

energy efficient. Our richly biodiverse city is well

endowed with tree-lined streets, networks of parks

and protected areas of native bush and wetlands.

We leverage existing expertise and our clean and

green reputation to develop important industries in

leading edge clean tech and green technology.

An Auckland of prosperity and

opportunity

Auckland is a global city with a strong and

vibrant economy providing ample business

growth and job opportunities. We are

technological innovators with strong high tech

business clusters that work with our excellent

tertiary institutes and making use of innovation

and ideas from their research. The region is

home to many flourishing small and medium-

sized businesses. The city centre and

waterfront are vibrant, attractive and well

developed, We have many business areas in

villages and hubs across the city that provide

local employment. Auckland has strong

connections internationally.

A well connected and accessible Auckland

Aucklands infrastructure is well-planned, built to

last, has kept up with growth and meets the needs

of its communities and the economy. There is an

effective, efficient and integrated transport system,

offering choices, including a completed road

network and public transport that is preferred by

the majority of commuters The movement of

people and freight around greater Auckland is

considerably easier than it is today. Our sea and

airports continue to play a crucial role in New

Zealands export economy and we have a world-

class telecommunications network including high

speed broadband


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Introduction to themes and groups of activities

A beautiful Auckland that is loved by its

people

Auckland remains one of the most beautiful

cities in the world, offering superb lifestyle

opportunities in a quality environment, It has

vibrant urban and neighbourhood areas full ofcharacter, stunning coastal areas with clean

and attractive beaches, many recreational

opportunities, and rural areas that are easy to

access and enjoy. Communities take great

pride in their surroundings and work together,

and with council to maintain and improve

those areas. Aucklanders love exploring their

diverse city in town and country and visitors

are drawn to explore those attractions.

A culturally rich and creative Auckland

Arts and culture are alive and well and part of

everyday life. We have a year-round arts and

cultural programme that is world-class and offers

something for everyone. Our major arts and

cultural institutions are known internationally fortheir excellence and innovation and are major

tourist draw cards. The many local arts and cultural

events are popular and well attended and

contribute to the export earnings of our creative

industries.

Te Hau o Te Whenua, Te Hau o Te

Tangata - A Mori identity that is

Auckland's point of difference in theworld

Mana whenua, who are the original inhabitants

of Tmaki Makaurau, and other Mori

originating from across Aotearoa/New Zealand

living in Auckland have the opportunity to

contribute to the social, cultural, economic and

environmental success of Auckland. In doing

so, the Treaty of Waitangi is appropriately

recognised and provided for through the

statutory obligations of the Auckland Council.

The celebration of Mori culture and identity

highlights Aucklands point of difference withthe rest of the world and opportunities that

benefit all.

Group of activities financial statements

The prospective group of activities statements have been prepared on a full group basis. They include the

activities and services provided by the Auckland Council, being the parent entity, and, where appropriate, the

activities and services provided by those entities that comprise the Auckland Council Group entity (including all

subsidiaries, associates and joint venture arrangements). An outline of the Auckland Council Group and the

basis for consolidation is set out in the notes to the prospective financial statements in Part I of Volume 3.


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Governance theme

Governance themeThrough its governance activities the council enables decision-making and action by, and on behalf of,communities to promote the well-being of Aucklanders now and for the future.

The Auckland Council represents a unique model of local government in New Zealand comprising:

shared decision-making between the governing body (made up of the mayor and 20 ward councillors) and21 local boards

the Independent Mori Statutory Board's (IMSB)

seven substantive council-controlled organisations (CCOs) and a large number of smaller councilorganisations

advisory panels and boards, such as the statutory Pacific Peoples and Ethnic Peoples Advisory Panels andnon-statutory panels established by the mayor.

For more details on this structure see part IV in this volume.

Community outcomes for Auckland

The groups of activities within this theme are listed below. These contribute to delivering the followingcommunity outcomes.

Community

outcome

Group of

activities

Governance

anddemocracy

Local

governance

How the activities in this theme contribute to the Auckland Plan

Governance activities support the councils contribution to a strong, inclusive and equitable society that providesopportunity for all Aucklanders by:

ensuring the council's decision-making is well informed and robust, balancing regional strategic prioritieswith local views in a transparent manner

ensuring the council meets its Treaty obligations and its objectives in relation to Mori as set out in theAuckland Plan and other documents. This includes specific emphasis on participation in democracy

ensuring that local boards and the governing body are fully supported and the council's decision-makingprocesses consider the views of Auckland's diverse communities and meet all applicable statutoryobligations

ensuring that the council is ready as an organisation to help generate the transformational shifts identified inthe Auckland plan.


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Governance theme

How the activities in this theme contribute to Mori outcomes

The council has committed to enabling and supporting mana whenua and Mataawaka aspirations and providingopportunities for Mori to contribute to the future well-being of Auckland. Achieving this requires ensuring Moriare fully engaged in decisions concerning matters of significance to them. These matters may include decisionsof the governing body, local boards, CCOs and council officers. The council's Mori Responsiveness Portfolio isfocused on transforming Councils responsiveness to Mori and co-ordinating a cross-organisation response to:

Treaty of Waitangi settlements

Communication and engagement with Mori

Contribution to Mori well-being

Te Tiriti o Waitangi Audit Response.

The council recognises the important role that the IMSB plays in advocating for issues of significance for Moriand ensuring we fulfil our statutory obligations to Mori, including provisions related to the Treaty. We arecommitted to working with the Board to achieve this.

Te Waka Angamua, the Mori Strategy and Relations Department within Council, works to ensure theintegration of councils commitment to Mori aspirations and well-being into decision-making policy, developingorganisational capability and the provision of services.


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Governance theme

Group of activities: Governance and democracy

Group of activities: Governance and democracyThe activities within this group lie at the heart of ensuring our governance is both effective and representativethrough providing strong and efficient regional leadership.

The following activities are delivered:

Elections - conducting triennial elections and by- elections for the Mayor, councillors and local boardmembers

Independent Mori Statutory Board (IMSB) support - providing support to the IMSB to fulfil itsresponsibilities including identifying issues significant to mana whenua and Mataawaka and ensuring thecouncil responds appropriately to its Te Tiriti o Waitangi/the Treaty of Waitangi (the Treaty) responsibilities

Mayoral office - providing policy advice, strategic and logistical support to meet the statutoryresponsibilities of the Mayor of Auckland

Monitoring of council-controlled organisations (CCO) - monitoring CCOs to ensure their activitiescontribute to and align with the councils strategic direction

Regional governance and democracy - supporting the decision-making process of the governing bodyincluding remuneration and expenses of councillors and support for advisory panels and boards, such as

the statutory Pacific Peoples and Ethnic Peoples Advisory Panels and non-statutory panels established bythe mayor.

Key projects and priorities for 2013/2014

Preparing for and conducting 2013 local government elections will ensure our governance arrangementsare both representative and effective

Supporting the selection body to appoint the IMSB to 2016. Auckland's mana whenua groups arerepresented on a selection body that appoints the IMSBs nine members. Board members serve athree-year term of office.

Reviewing the performance of our council-controlled organisations (CCOs), including directorsremuneration and our smaller CCOs inherited from the previous councils, will ensure appropriate oversightand management of our CCOs activities.

How we measure performance

Level of service statement Performance measure Actual

2011/2012

LTP target

2013/2014

Annual Plan

target

2013/2014

Manage council elections and by-elections through fair and

transparent processes

Percentage eligible residents whovoted in the local elections

45%(1)

40% 40%

The number of candidates per

available seat (excludes local board

elections)

No election

held(2)

2.5 2.5

The number of candidates per

available seat for local board

elections

6

(2)

3(3)

3

Number of complaints regarding

electoral processes upheld

0 0 0


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Governance theme


Level of service statement Performance measure Actual

2011/2012

LTP target

2013/2014

Annual Plan

target

2013/2014

Ensure the community can

participate and contribute to

governing body decision-making

Percentage of residents who feel

they can participate in governing

body decision-making

24% 50% 50%

Percentage of Mori residents who

feel they can participate in governing

body decision-making

Baseline to be

established in

2012/2013

Maintain or

improve

Maintain or

improve

Percentage of formalised

arrangements with the governing

body providing for kaitiaki

management of ancestral lands

Baseline to be

established in

2012/2013(4)

Maintain or

improve

Maintain or

improve

Percentage compliance with

statutory requirements for publishing

agendas and minutes

99%

(5)

100% 100%

Number of complaints regarding

council democratic processes upheld

by the Auditor General or

Ombudsman

0 0 0

Ensure Auckland Council is able to

govern its CCOs effectively and hold

them to account

Percentage of CCO related LTP

measures that met targets

Baseline to be

established in

2012/2013

90% 90%

Percentage of CCO related

monitoring and accountability

requirements that met targets

Baseline to be

established in

2012/2013

90% 90%

Notes:1. The target is to maintain or better the national local election turnout average, estimated to be 40 per cent. This target may vary

accordingly.

2. This also includes any by-elections held during the year. If there are no elections in a given year, then the target will not apply and the

measure will not be reported on for that year.

3. There was a by-election held in Waiheke Local Board, where six candidates stood for one seat. However, historically by-elections

attract more candidates than general elections.

4. Formalised arrangements are service level agreements, memoranda of understating, joint management, private public partnerships or

any service contracts between the council and mana whenua (kaitiaki) that provides for the expression of Kaitiakitanga (exercise of

guardianship) over ancestral lands. Kaitiaki, in this context, are the formally recognised mana whenua groups that have tribal authority

and cultural obligations to act as stewards over tribal lands, waters, waahi tapu and taonga (highly prized possessions or holdings).

5. As per statutory requirements, agenda must be made available two full working days prior to the advertised meeting.


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Governance theme


Financial information

Prospective consolidated group of activities statement

$000 Budget

2013

LTP

2014

Draft Annual

Plan 2014

Variance Notes

Financial year ending 30 June

OPERATING EXPENDITURE

Elections 770 5,616 5,395 (221)

Independent Mori Statutory Board support 2,796 2,901 2,789 (112)

Mayoral office 5,114 5,337 4,994 (343)

Monitoring of council-controlled organisations 1,218 1,260 1,179 (81)

Regional governance and democracy 10,667 11,070 10,570 (500) 1

Total operating expenditure 20,565 26,184 24,927 (1,257)

Comprised of:

Employee benefits 7,964 7,941 7,895 (46)Depreciation and amortisation 84 55 49 (6)

Finance costs (6) (9) (8) 1

Other expe

Documents

VolumeOne of the Draft Annual Plan