TAHUA TAUNGAHURU TE MAHERE TAUNGAHURU THE 10-YEAR BUDGET LONG-TERM PLAN VOLUME 2: OUR DETAILED BUDGETS, STRATEGIES AND POLICIES

Transcription

1 TE TAHUA TAUNGAHURU TE MAHERE TAUNGAHURU THE 10-YEAR BUDGET LONG-TERM PLAN VOLUME 2: OUR DETAILED BUDGETS, STRATEGIES AND POLICIES

2 How this Long-term Plan is arranged Finding your way around the volumes Volume 1: An overview of our 10-year budget This volume provides an overview of our 10-year budget. Part 1 provides an overview of our plans, strategies and budgets for the next 10 years. Part 2 contains our prospective financial statements for and other key financial information. Part 3 is the appendices, including a glossary of terms, key word index and information on the council, its structure and people, and how to contact us is also included, along with the Mayor and Chief Executive Officer s message. This volume also contains the Auditor-General opinion on this plan. Volume 2: Our detailed budgets, strategies and policies This volume is divided into five parts: Part 1 provides a strategic overview, including Auckland s 30-year Infrastructure Strategy and our Financial Strategy. Part 2 covers the activities and services of Auckland Council. Part 3 contains our policies and other information, including the Revenue and Financing policy. Part 4 contains information on our council-controlled organisations (CCOs). Part 5 is the appendices, including a glossary of terms and key word index. Volume 3: Local Board information This volume is divided into two parts: Part 1 provides information on local boards, the development of local board plans and agreements and a summary of planned local board expenditure for Part 2 contains specific information for each of the 21 local boards, including a local board agreement (outlining local activity initiatives and budgets for 2015/2016), and an introductory section that provides context for the agreement. Part 3 is the appendices, including a glossary of terms and key word index.

3 RĀRANGI KŌRERO Contents PAE TUATAHI: NGĀ RAUTAKI MATUA PART 1: OUR KEY STRATEGIES Page No. 1 He rautaki uhinganui 1.1 Strategic overview Auckland Plan and transformational shifts Contributing to Māori wellbeing Information on the spatial priorities 11 Rautaki hanganui ngahuru mā toru 1.2 Auckland 30 year infrastructure strategy Rautaki tahua pūtea 1.3 Financial strategy PAE TUARUA: Ā MĀTOU MAHI PART 2: OUR ACTIVITIES Whanaketanga o Tāmaki Makaurau 2.1 Auckland development Whanaketanga ōhanga me te ahurea 2.2 Economic and cultural development Ngā whakahaere taiao me ōna herenga 2.3 Environmental management and regulation Tumu whakarae me ngā tautoko 2.4 Governance and support Ngā papa ātea, me te āhua nohoanga a hapori 2.5 Parks, community and lifestyle Ngā kawekawenga 2.6 Transport Te waiora me ngā waiparapara 2.7 Water supply and, wastewater treatment and disposal PAE TUATORU: Ō MĀTOU KAUPAPA HERE PART 3: OUR POLICIES AND OTHER INFORMATION 3.1 Revenue and financing policy Funding impact statement (incorporating rating mechanism) Funding impact statements for groups of activities Financial reporting and prudence benchmarks Local board funding policy Summary of Significance and Engagement policy Allocation of decision making policy 3.6 Summary of the Tūpuna Maunga o Tāmaki Makaurau Authority Operational Plan 2015/ Housing for Older People Partnering Policy

4 PAE TUAWHA: NGĀ RŌPŪ E HERE ANA KI TE KAUNIHERA PART 4: OUR COUNCIL CONTROLLED ORGANISATIONS (CCOs) Tirohanga whānui 4.1 Overview Ngā rōpū herenga matua ki te kaunihera 4.2 The substantive CCOs Ngā rōpū herenga ririki ki te kaunihera 4.3 Other CCOs Ngā take taumau 4.4 Accountability policy PAE TUARIMA: PURONGO TĀPIRI PART 5: APPENDICES He papakupu Glossary of terms Ngā kupu matua Key word index

5 Part 1: Our key strategies PAE TUATAHI NGĀ RAUTAKI MATUA Part 1: Our key strategies This part sets out key Auckland Council strategies for this Long-term Plan (LTP). It includes: 1.1 Strategic overview, including: Auckland Plan and transformational shifts Contributing to Māori well-being Spatial priorities 1.2 Infrastructure strategy 1.3 Financial strategy 1

6 Part 1: Our key strategies 1.1 Strategic overview HE RAUTAKI UHINGANUI 1.1 Strategic overview Auckland today Auckland is an emerging international city and is fast developing a reputation for the high quality of life it offers its residents. We have many advantages, including our size and scale, and our ethnically diverse and internationally connected communities. Auckland has the largest Māori population in New Zealand with a culture and identity that is our point of difference in the world. We have a growing economy and a motivated business community keen to do its part to grow our city. There are a number of large scale issues facing Auckland such as the current housing challenges and transport infrastructure requirements. These need to be addressed to ensure the wellbeing of our current and future residents. Auckland continues to grow at a very fast rate. It is critical that we plan for and support that growth. The establishment of Auckland Council on 1 November 2010 has given Auckland an unprecedented opportunity to tackle challenges and plan for its future in an integrated way. For the first time in its history Auckland speaks with one voice and through the Auckland Plan has a shared vision to be the world s most liveable city. Over 10,000 Aucklanders helped write the Auckland Plan and Aucklanders will continue to work towards achieving the vision. Auckland Council plays a major role in this and the Long-term Plan is the first opportunity to align Auckland Council s activities to the strategic priorities of the Auckland Plan. Strategic framework for the Long-term Plan The Auckland Plan is our road map to achieving our vision and helps us to prioritise the right things to do. The Long-term Plan is the council s funding tool which assists us in getting the most out of every dollar spent and the sequencing of when we carry out activities and projects. The prioritisation tools used to shape the Longterm Plan are; Auckland Transformational Shifts (set in the Auckland Plan) Spatial Priorities (Part 1.1.3) The six transformational shifts describe the big changes Auckland needs to make to achieve the vision of the Auckland Plan, including shifts to public transport within one network and quality urban living. The Long-term Plan prioritises programmes that contribute to the transformational shifts. Spatial prioritisation ensures that we put the council s limited resources into areas that will enable multiple benefits. These include more jobs, more houses, greater transport options, connected communities, improved recreation, and a quality environment. We can t do everything at the same time and need to sequence our investment across Auckland. Spatial priorities will change over time. Once the council has enabled successful outcomes and change in an area, new spatial priorities will be identified and considered as part of future longterm planning processes. Contributing to Māori well-being and enabling better outcomes with Māori (Part 1.1.2) The Māori Responsiveness Framework in the Auckland Plan articulates our commitments and obligations to Māori. Building relationships with Māori, establishing partnerships to support common aspirations and increasing Aucklanders' understanding of Māori and their needs and aspirations are important ways to demonstrate and realise our commitments to Māori. The Long-term Plan aligns the council activities to the Auckland Plan through the transformational shifts including significantly lifting Māori social and economic wellbeing. This is an important focus and together all the shifts will significantly contribute to lifting Māori wellbeing. 2

7 Part 1: Our key strategies 1.1 Strategic overview Auckland Plan and transformational shifts Auckland Plan and transformational shifts Auckland Plan The Auckland Plan describes the kind of place Aucklanders have told us they want. It sets out our vision; to make Auckland the world s most liveable city and outlines what this will look like in A liveable Auckland is described through seven aspirational outcomes: Achieving this vision requires transformational change. The Auckland Plan outlines how we will make this happen through identifying the big things we need to focus on: the game changers or transformational shifts. Not everything that Auckland Council does is (or needs to be) transformational. We have an important day to day role in delivering services that help keep our city moving whilst still contributing to the delivery of the Auckland Plan. Through the development of each long-term plan we look at the mix of services provided and how we can deliver these services more efficiently and effectively. Where possible the services we provide are tracked against the Auckland Plan. This enables us to check progress. Auckland s Transformational Shifts The Auckland Plan is our road map to achieving our vision. The Auckland Plan transformational shifts work together to achieve the transformations that are required to get there. While they are all important, we know from conversations we have had with Aucklanders that transport and quality urban living are two of our most immediate issues. Investments in these areas will also drive positive environmental, economic and social outcomes. 3

8 Part1: Our key strategies 1.1 Strategic overview Auckland Plan and transformational shifts Move to outstanding public transport within one Network. A higher quality public transport system with far greater levels of use is critical to Auckland s economic performance and people s quality of life. This can be achieved by improving the speed, accessibility, frequency, affordability, reliability and attractiveness of public transport. What we have already done to deliver this shift Significant progress has been made over the past decade to improve public transport in Auckland, following on from decades of under-investment. Aucklanders make over 12 million rail trips a year (up from 2.5 million in 2003), with 57 new electric trains enabling significant further growth in rail use. The bus network carries over 57 million trips a year and ferries more than 5 million. Rail electrification enables improved peak frequencies on the three main lines of the rail network, a significant boost to the capacity of the rail system and much quieter and comfortable travel. The recently completed integrated ticketing system enables the Hop Card to be used on all bus, train and ferry services with the possibility of integrated fares. A new public transport network is planned that will provide Aucklanders with a more frequent and connected travel. How the Long-term Plan will continue to deliver on this shift The City Rail link will expand the capacity of our entire rail network. Improvements to public transport, motorways and important freight routes, including East West Connections and Fanshawe Street, Ōtāhuhu and Manukau bus interchanges, will help reduce congestion, improve access for all and support improved economic performance. The interim transport levy for the first three years of this LTP will allow for additional investment of $523 million in transport over the next three years, while the council seeks government support for alternative funding for transport in time for the next LTP. This accelerated transport programme will deliver additional investment in public transport, including CBD bus infrastructure improvements, an additional 45 kilometres of bus lanes across the city, improvements to bus-bus and bus-rail interchanges, Park and Rides extensions at Silverdale, Pukekohe and Papakura and a new facility for Westgate. Radically improve the quality of urban living. Auckland will have great neighbourhoods, centres, open spaces and public realms that are loved by all and connect people to places and each other. Providing and encouraging a greater number and range of high quality living opportunities within our current urban areas will give Aucklanders increased choices. What we have already done to deliver this shift Currently Auckland Council has a number of roles in ensuring a high quality urban environment. Through the Auckland Plan and the Unitary Plan we create the policy which enables quality growth. The Unitary Plan is a major exercise which, involving significant input from the community in determining the form and nature of future Auckland. Alongside the planning framework we provide technical and urban design advice and spend close to $2 million a year on heritage advice and assistance. The provision of housing choice, quality housing and housing affordability have also become major focus areas for us in recent times. The Housing Project Office facilitates the provision of housing through a streamlined process that is aligned with the Special Housing Areas legislation. This initiative provides incentives for quality, planned development. We also partner with the private and not-for-profit sectors to leverage our existing land holdings to achieve better housing outcomes e.g. Wilsher Village, Wynyard Quarter, Hobsonville, Papatoetoe town centre, Ormiston and the Tamaki regeneration project. How the Long-term Plan will continue to deliver on this shift A new Council-Controlled Organisation, Development Auckland Ltd, will be established, replacing Waterfront Auckland and Auckland Council Properties Limited. The new agency will manage an annual operating budget averaging $70 million per annum and a capital budget of $430 million over 10 years (this includes Auckland Council budgets that the new agency will manage on behalf of the council). The purpose of Development Auckland is to facilitate, in selected locations, urban redevelopments that optimise and integrate good public 4

9 Part 1: Our key strategies 1.1 Strategic overview Auckland Plan and transformational shifts transport outcomes, efficient infrastructure and quality public services and amenities. Development Auckland will deliver great value for money to Aucklanders by strategically managing the council s non-service property portfolio and recycling or redeveloping sub-optimal or underutilised assets. Significantly lift Māori social and economic well-being. The world s most liveable city te pai me te whai rawa o Tāmaki (the abundance and prosperity of Auckland) is a call to action, where Māori drive their prosperity and quality of life for all who live, work or play here. This means a focus on identifying practical opportunities for collaboration with others and investing in actions that significantly lift Māori well-being. This shift focuses on working with Māori and other partners to recognise and showcase our unique Māori identity and the opportunities Māori bring. Our first step is to support and strengthen Māori culture and institutions and ensure that the council s actions and programmes are fit for purpose for Māori, thus increasing Māori well-being and their contribution to "the world s most liveable city te pai me te whai rawa o Tāmaki. What we have already done to deliver this shift Auckland Council held a Māori Economic Forum to support dialogue and sharing across Māori businesses and undertook initial feasibility work to deliver a signature Māori event. We contribute to the capacity of the 19 tribal authorities that represent mana whenua interests in Tamaki Makaurau to work with us and have contributed to the development of self-sustainable marae. A number of our environmental programmes work closely with mana whenua to ensure cultural knowledge and expertise are at the forefront of those projects. Auckland Council worked closely with mana whenua to develop provisions for the draft unitary plan that acknowledge both the cultural and economic platforms provided by Māori and Treaty settlement land to increase social and economic wellbeing. For more information on contributing to Māori well-being refer to Part How the Long-term Plan will continue to deliver on this shift This LTP has identified a total of $121 million (combined capital and operating expenditure) as directly contributing to this transformational shift. This includes funding to continue to support papakāinga housing and marae becoming self-sustainable, as well as provide for Māori public art and Māori cultural facilities. A waka programme in partnership with mana whenua will bring waka back to Auckland s harbours and waterways. Auckland Council will together with Māori showcase Auckland s Māori identity across the region through a range of events including a Māori signature event. Entering into co-governance arrangements with mana whenua provides an opportunity to significantly enhance mana whenua participation in the management of natural resources and enables shared and multiple outcomes on behalf of all Aucklanders. Auckland Council is a party to five co-governance arrangements. This LTP provides funding of $97 million (combined capital and operating expenditure) over 10 years for co-governance arrangements. Strongly commit to environmental action and green growth. Our environmental assets will remain a key contributor to Auckland s quality of life only if we respond now to the significant and unsustainable pressure that is being placed on them. This requires a holistic approach to managing the environment, and a focus on our urban form, consumption of non-renewable resources, and the quality of our waterways, forests and air. What we have already done to deliver this shift There are many projects and initiatives across Auckland Council that deliver on this area including the significant investment in public transport infrastructure development. This will have major environmental benefits, particularly the shift to electric trains. Our stormwater investment of $872 million over ten years, as well as managing flood risk, also plays an important part in ensuring run-off entering our streams and harbours is cleaned of harmful elements. Increasingly we will look to introduce more natural approaches to stormwater management through the Healthy Waterways project and projects such as the daylighting of La Rosa stream. 5

10 Part1: Our key strategies 1.1 Strategic overview Auckland Plan and transformational shifts Our regional parks network includes areas of ecological significance as well as allowing Aucklanders to enjoy the natural environment. In addition to these major investment areas we have a variety of environmental programmes covering a spectrum of education, incentivising landowners, working with community groups, and a major role in monitoring environmental indicators. How the Long-term Plan will continue to deliver on this shift The Waste Management and Minimisation Plan (WMMP) has a long-term, aspirational goal of zero waste by This LTP includes a standardised annual inorganic collection service (on-property, booked in advance), paid for via the solid waste targeted rate. The Retrofit your Home programme focuses on improving the quality and sustainability of existing housing in Auckland to make them warmer, dryer, and more energy and water efficient. This programme will provide up to $9 million per annum of financial assistance, but with a maximum debt exposure of $35 million. This LTP provides for the building and maintenance of the storm water network and improving the quality of water in streams and harbours including the central interceptor project which will reduce sewage overflows into waterways in Central Auckland and the Waitematā Harbour. Dramatically accelerate the prospects of Auckland s children and young people. Auckland will have a prosperous future if all children and young people are thriving and reaching their potential. This means a focus on healthy and safe homes, connected neighbourhoods and communities, quality education and skills-development opportunities. What we have already done to deliver this shift Young people make up 37 per cent of our population. Much of our community infrastructure is heavily used by our young people. We have a wonderful network of sports parks and local parks, most of the latter with a great range of children s play equipment. Fifty six per cent of the 9 million visits to our swimming pools and leisure centres are by children and young people. We run environmental programmes with over 50 per cent of secondary schools participating, and support programmes such as Watersafe and the Find Your Field of Dreams. Much of our infrastructure provision is also a great enabler for our young people. The multi-million dollar investments into public transport are heavily used by students and those without access to vehicles. Our expanding network of Wi-Fi hotspots cater for the digital generation. How the Long-term Plan will continue to deliver on this shift This LTP will continue to provide and build on the services important to children and young people including, regional and local parks, libraries, community facilities, community services and swimming pools and recreation centres. Libraries are popular with young people. This LTP includes the standardisation of library hours across the region, to achieve an equitable base service level across Auckland. Substantially raise living standards for all Aucklanders and focus on those most in need. Auckland will have an inclusive, equitable and fair society that is abundant in opportunity for all citizens. Aucklanders will be reaching their full potential, communities will thrive and businesses will flourish. Because of this, we will retain and attract talented people, and people from outside the region will want to visit and invest in Auckland. What we have already done to deliver this shift The amalgamation of Auckland local government was driven by the view that Auckland needed to lift its economic performance for the sake of all New Zealand. Economic development is an underlying driver of much of our activity and the living standards of Aucklanders are closely tied to our economic success. 6

11 Part 1: Our key strategies 1.1 Strategic overview Auckland Plan and transformational shifts Our planning activity which enables new land to be zoned for commercial and industrial purposes is also a key enabler for economic growth. We spend more than $80 million per annum focused on attracting visitors, future residents and businesses, business growth and skills development. Skills development supports projects such as the Youth Traction plan, the work of COMET and many programmes focused on children and young people including literacy programmes and access to digital technology in libraries. The other very important component of living standards in Auckland is the work we do targeted at creating a safe and cohesive society. Auckland Council has a huge role in creating a sense of community. We do this through the provision of our network of 56 community centres, 40 recreation and aquatic centres, 55 libraries and 3,235 local and 31 regional parks. These are all places which act as centres for community activity. How the Long-term Plan will continue to deliver on this shift This LTP continues to build and support Auckland s economy though working with the business sector to grow jobs. Auckland Council continues to work with government and other agencies on addressing the shortage of emergency housing for the homeless. $864,000 of operating expenditure has been allocated in this LTP to for emergency housing, homelessness and rough-sleeping responses across Auckland. Grants are a critical tool for delivering social, cultural, arts, environmental, heritage and sport and recreation outcomes for Auckland. The grants programme will be critical to implementing the Empowered Communities Approach which is endorsed in this LTP. The Empowered Community Approach will develop a new more effective and empowering approach to the way council and the community delivers services and supports community activities. 7

12 Part 1: Our key strategies 1.1 Strategic overview Contributing to Māori well-being Contributing to Māori well-being Contributing to Māori well-being brings together the activities, budgets, levels of service, and measures contributing to achieving the Māori transformational shift, uplifting Māori well-being and achieving better outcomes with Māori. The Auckland Plan sets out the overarching framework and strategic direction for Auckland Council. Whiria Te Muka Tangata - the Māori Responsiveness Framework articulates the council s commitments and obligations to Māori. It is embedded within the Auckland Plan and local board plans and enabled through the Long-term Plan, Unitary Plan and other council strategies and plans. These commitments require the council to ensure its policies and actions consider the recognition and protection of Māori rights and interests in Tāmaki Makaurau and how the council will address and contribute to Māori needs and aspirations. Activities directly contributing to Māori well-being The activities that directly contribute to Māori well-being are captured within groups of activities that span the council group. The total budget for activities that directly contribute to Māori well-being totals $121 million (combined capital and operating expenditure). These have been brought together in this section to provide a council group overview that enables the council to monitor progress towards achieving the Māori transformational shift, uplifting Māori well-being and achieving better outcomes with Māori. Activities fall within five focus areas outlined below. More detail on each activity can be found within the groups of activities set out in Part 2. Key Focus Activities Why the council is involved Whai Rawa Māori Economic Well-being Whai Painga Māori Social Well-being Whai Tiaki Māori Cultural Well-being Enabling all Māori to contribute to and benefit from Auckland s economic successes. Māori events including a signature event Waka programme Māori growth forum, Māori tourism development, Māori media lab Iwi investment fund Māori wardens and public transport Enabling all Māori to harness the opportunities that come from living in Auckland. Tamariki, rangatahi, pākeke, older people, whānau hauā Māori sport and recreation Mataawaka contribution to council decision-making Celebrating and sustaining Māori cultural identity, knowledge and practice. Māori capital projects marae, papakāinga, cultural facilities, Māori public art Sites of significance Kaitiakitanga of Tāmaki Makaurau Pukekiwiriki, Poutukeka (Pūkaki Crater), Waiomanu comanagement arrangements Māori arts and culture Māori knowledge and information services The council s leadership, operational activities and procurement leverage can both enable and transform Māori economic well-being. The council s place-making role, its presence in communities and community activities shape, impact and can transform community well-being. The council s leadership can have a transformative effect on the place and sustainability of Māori cultural well-being. Whai Tika Effectiveness for Māori Whai Tahinga Treaty of Waitangi settlements Activities include: Māori responsiveness planning and implementation Treaty audit response Ngā kete akoranga learning and development. Activities include: Coordination of Council s response to Crown-Iwi Treaty of Waitangi settlement negotiations Coordination of Councils implementation of Treaty of Waitangi settlements Ensuring the council has the capability and capacity to deliver on its commitments and obligations to Māori. Ensuring treaty settlement outcomes enable and provide benefits to mana whenua and the council on behalf of all Aucklanders. 8

13 Part 1: Our key strategies 1.1 Strategic overview Contributing to Māori well-being Key Focus Activities Why the council is involved Identification of post Treaty of Waitangi settlement opportunities that benefit Council, mana whenua and Auckland has a whole. Māori measures and targets Measures and targets are important to demonstrate how the council is delivering on its commitments to Māori. This long-term plan contains specific Māori measures and targets that align to each of the five focus areas. The measures provide a mainly financial focus on services and activities. These measures can be found within relevant groups of activities in Part 2. Examples include: Group of Activity LTP Level of Service LTP Measure LTP Target 2015/16 LTP Target 2016/17 LTP Target 2017/18 LTP Target 2018/19 to 2024/25 Regional Governance Ensure communities can easily engage in council decision making and have access to information Percentage of Māori residents who feel they can participate in Auckland Council decision making 50% 50% 50% 50% Regional Planning Protect and conserve Tāmaki Makaurau - Auckland s historic heritage and Māori cultural heritage for the benefit and enjoyment of present and future generations Number of sites and places of significance to mana whenua formally protected in the Unitary Plan Kaitiakitanga of natural resources Auckland Council will work with mana whenua to recognise and respect their rights and interests in Auckland s natural resources as well as their shared legacy, aspirations and responsibilities for future generations. Mechanisms to enable this are co-management and co-governance arrangements. Present co-management arrangements include Pukekiwiriki Pā Reserve, Te Pūkaki Tapu o Poutukeka Reserve and Waiomanu Pā Kāinga Reserve. Present co-governance arrangements include Ngāti Whātua o Ōrākei Reserves Board, Hamlin s Hill (Mutukāroa) Management Trust, Te Motu a Hiaroa (Puketutu Island) Governance Trust, Parakai Recreation Reserves Board and Ngā Tupuna Maunga o Tāmaki Makaurau Authority (Maunga Authority). Funding for cogovernance and co-management arrangements total $97 million (combined capital and operating expenditure), which is additional to the $121 million. Contribution to Māori capacity The Local Government Act 2002 requires local authorities to consider ways in which it may foster the development of Māori capacity to contribute to the decision-making processes of the local authority. The projects and activities that make up this programme are captured within the activities kaitiakitanga of Tāmaki Makaurau and mataawaka contribution to council decision-making. Auckland Council contributes in several ways including: Contributing to mana whenua research and input into relevant policy and strategy documents. Recent examples include the development of the Proposed Auckland Unitary Plan. Provision of Māori capacity contracts enabling mutually beneficial outcomes. Learning and development opportunities. Supporting forums that represent mana whenua and Māori resident and ratepayer interests. 9

14 Part 1: Our key strategies 1.1 Strategic overview Contributing to Māori well-being Providing resource in kind such as technical expertise, research assistance, meeting rooms and event spaces. Co-ordinating an integrated approach between Auckland Council and its CCOs as a way to address matters of significance to Māori. Wider Auckland Council services The council delivers a range of services, programmes and activities that benefit Māori as residents and ratepayers. Throughout the period of this Long-term Plan, the council will work to understand and quantify the impact of these services, programmes and activities on Māori to better understand the council s total contribution to Māori well-being. 10

15 Part 1: Our key strategies 1.1 Strategic overview Spatial priorities Spatial priorities There is a need to prioritise when and where we spend our money to develop Auckland. We are no longer eight separate councils with eight distinct areas and cannot do everything, everywhere, all at the same time. Our focus is to target our investment over time so that we don t spread the money so thinly that the outcomes are poor and don t work for our communities. Prioritisation is critical to ensure we put the council s limited resources into areas that will enable multiple outcomes, including more jobs, more homes, greater mobility, connected communities, improved recreation, and quality environment. Spatial priorities align with the Auckland Plan s Development Strategy and six transformational shifts. There is a focus on key infrastructure requirements, optimising and completing existing investment and stimulating economic development. Spatial priorities will change over time. New spatial priorities will be identified through future planning processes once the council investment and actions have enabled successful outcomes and change in an area. 11

16 Part 1: Our key strategies 1.1 Strategic overview Spatial priorities Identifying spatial priorities There are four parts to the spatial priorities. Geographic spatial priorities There are 10 geographic areas that have been identified as priority areas of focus across Auckland. They are: City centre; Inner west triangle; Greater Tamaki; Ōtāhuhu-Middlemore; Manurewa-Takinini- Papakura corridor; NorSGA; Greater Takapuna; Pukekohe-Wesley (Paerata); Manukau metro and Flatbush. The following pages provide a map of each area, a brief description of the opportunities for each area and examples of critical projects. Figure 1 sets out the geographic priorities and SHAs across Auckland. Special Housing Areas (SHA) SHAs are identified areas for fast-track development of housing, including affordable housing. They are part of the plan to help combat Auckland s housing crisis under the Auckland Housing Accord. The Auckland Housing Accord was signed by Auckland Council and the New Zealand Government in October 2013 and aims to consent around 39,000 new homes and sections over 3 years. We currently have 84 SHAs across Auckland, 56 of which are outside the proposed geographic spatial priority areas The SHAs range from small urban sites in existing residential neighbourhoods to multi-hectare sites on the more rural edges of Auckland. Provision of infrastructure, including water, wastewater, roads, public transport, community facilities and open space are an important part of SHAs. Sometimes it s the council that will provide this infrastructure and sometimes it s the developer. The following pages identify the SHAs within each of the geographic priority areas. Figure 2 provides an overview of the approved SHAs across the Auckland region. Network Requirements This refers to physical and social infrastructure, including water, wastewater, roads, public transport, community facilities and open space, which are necessary to provide for new growth or to fill a gap in the existing network. Physical infrastructure in particular often crosses boundaries and serves a much wider catchment than just a neighbourhood or suburb. Other agencies like New Zealand Transport Agency (state highways), Transpower (national electricity grid), telecommunication companies (mobile, wifi, broadband) are also responsible for key Auckland infrastructure Some examples of critical infrastructure that the council is responsible for: o o o o o o o o City Rail Link Hunua #4 watermain Central Interceptor (wastewater) Northern Interceptor (wastewater) North Harbour #2 watermain AMETI (Auckland Manukau Eastern Transport Initiative) Stormwater upgrades and improvements Buying and developing park land. Other This refers to projects which are outside the proposed geographical spatial priority areas and SHAs but need to be completed because of factors like contractual obligations, health and safety needs or environmental necessity. Further planning is also needed to consider future urban areas and what investment may be needed in the long term. 12

17 Part 1: Our key strategies 1.1 Strategic overview Spatial priorities Ten geographic priority areas and SHAs within each area 1. City Centre This area is bordered by the motorway ring and the harbour and is one of two placebased initiatives in the Auckland Plan. The council s focus is on the delivery of projects to ensure that the City Centre remains the economic, financial, commercial and tourist centre of Auckland. Some examples of critical projects planned include: o o o City Rail Link Streetscape upgrades Queens Wharf redevelopment. 2. Inner West Triangle This area includes the neighbourhoods of New Lynn, Avondale, Waterview, Mt Albert and Owairaka and the Point Chevalier centre. The council s focus is on the opportunity to leverage off transport investment, the Central Interceptor and the enhancement of Oakley Creek Includes strategic SHAs around New Lynn, Waterview and along Great North Road Some examples of critical projects planned include: o o o Central Interceptor (wastewater) Open space, walking/cycling and environmental enhancement projects relating to SH20 Waterview and Oakley Creek Mt Albert centre station and square development. 13

18 Part 1: Our key strategies 1.1 Strategic overview Spatial priorities 3. Greater Tāmaki This area includes the neighbourhoods of Panmure, Point England and Glen Innes and encompasses the Tāmaki Regeneration Company (TRC) area in Tāmaki The council s focus is to continue the partnership with central government and the TRC in Tāmaki and leverage off the bulk infrastructure investment already undertaken SHAs are helping to speed up the delivery of houses in Tāmaki Some examples of critical projects planned include: o o o AMETI (Auckland Manukau Eastern Transport Initiative) road, public transport, walking and cycling Eastern Rail Cycleway (Glen Innes to Tamaki Drive) Work with mana whenua on proposed redevelopment of Ruapotaka marae. 4. Ōtāhuhu-Middlemore This area includes the neighbourhoods of Ōtāhuhu and Middlemore as well as the industrial land along the rail corridor The council s focus is to leverage off the library/pool development and new rail/bus interchange at Ōtāhuhu and to work with large landowners to identify opportunities for jobs and local employment Includes a strategic SHA across the whole residential area to the east of Ōtāhuhu centre and into Middlemore Some examples of critical projects planned include: o o o Upgrade of Ōtāhuhu bus and train interchange Improve youth skills, training and job opportunities through the Youth Connections programme Western Foreshore (Waikaraka to Ōtāhuhu) and Portage cycleways. 14

19 Part 1: Our key strategies 1.1 Strategic overview Spatial priorities 5. Manurewa-Takanini-Papakura Corridor This area includes the neighbourhoods of Manurewa, Takanini and Papakura The council s focus is future planning to ensure integration of infrastructure and development and to realise the future of Papakura as a metro centre Includes a strategic SHA around Takanini Some examples of critical projects planned include: o o o Stormwater improvements to allow for more houses and commercial activities Implementation of Pahurehure management plan Improvements to local parks. 6. NORSGA Stage 1 This area includes Westgate (Massey North), Hobsonville Road and Hobsonville Point The council s focus is completing the development of the new town centre and transport improvements as well as integrating the development within existing communities Hobsonville Point is identified as an SHA and there are others nearby at Scotts Point, Whenuapai and Redhills Some examples of critical projects planned include: o o o Completing Massey North (Westgate) including new library, youth facility and town square New parks in Westgate and Hobsonville New stormwater ponds and upgrades. 15

20 Part 1: Our key strategies 1.1 Strategic overview Spatial priorities 7. Greater Takapuna This includes Takapuna central, Smales Farm, North Shore Hospital area and light industrial area around Barrys Point Road The council s focus is to develop councilowned land, improvements to Takapuna Beach and provide more integrated transport options in the area Includes a strategic SHA to the west of Takapuna Centre Some examples of critical projects planned include: o o o Improvements around The Strand, Hurstmere Road and Takapuna Beach Improvements to Takapuna-Milford coastal walkway Improvements to coastal water quality through stormwater upgrades. 8. Pukekohe-Wesley (Paerata) This includes Pukekohe centre and the Wesley College (Paerata) area to the north The council s focus is on delivering infrastructure requirements to provide for growth, including wastewater treatment and rail Includes a SHA in the Wesley College (Paerata) area Some examples of critical projects planned include: o o Pukekohe wastewater treatment plant upgrade Stormwater upgrades and improvements. 16

21 Part 1: Our key strategies 1.1 Strategic overview Spatial priorities 9. Manukau Metro This relates to the Manukau city centre area The council s focus is on working with others to see development of the area and providing for residential development in the centre of Manukau Some examples of critical projects planned include: o o Stormwater upgrades and improvements Working with others on Te Papa Manukau. 10. Flat Bush This relates to the Flat Bush development The council s focus is on completing the infrastructure requirements Includes a strategic SHA across most of Flat Bush Some examples of critical projects planned include: o o o Stormwater ponds and parks Implementation of Barry Curtis Park master plan Flat Bush local road, walking and cycling improvements. 17

22 Part 1: Our key strategies 1.1 Strategic overview Spatial priorities Figure 1: Geographic spatial priorities and SHAs across Auckland 18

23 Part 1: Our key strategies 1.1 Strategic overview Spatial priorities Figure 2: Approved Special Housing Areas 19

24 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy RAUTAKI HANGANUI NGAHURU MĀ TORU 1.2 Auckland 30-year Infrastructure Strategy Prepared under Section 101B of the Local Government Act (2002) for the following Auckland Council infrastructure: Transport Wastewater Water Stormwater and flood control Community facilities Open space 1 Introduction Auckland is a young city with a bold vision to become the world s most liveable city. Auckland consistently ranks highly for its quality of life and is working to build a reputation as a city which is business friendly. The success of Auckland is important for the success of New Zealand. As one integrated council we now have a greater ability to plan and deliver the infrastructure that is needed across Auckland as a foundation for our communities, homes and workplaces, including recognising and protecting Māori interests, rights and values associated with the development, delivery and operation of infrastructure. Auckland is supported by a broad range of infrastructure networks based on pipes, reservoirs, dams, treatment plants, roads, footpaths, cycleways and public transport services, parks and community facilities. This core Auckland Council infrastructure is the focus on this strategy. This infrastructure underpins Auckland as a city; protecting public health, by providing clean drinking water and ensuring our waste is removed and treated. It facilitates the movement of people and goods enabling economic and social exchanges essential for the viability, health and development of Auckland. It provides the public spaces and community spaces that benefit the social and cultural wellbeing of Aucklanders. Infrastructure also protects our homes and businesses from flooding and inundation from the sea, while working to reduce the harmful effects of urban activity on the natural environment. Investing in infrastructure has a direct benefit on Auckland s and New Zealand s economy and enables Auckland s businesses to be internationally competitive. Infrastructure has been a powerful determinant of Auckland s current success and many transformative projects delivered have shaped our city. However, underinvestment combined with rapid growth mean that Auckland now faces substantial demand for new and expanded infrastructure. Rising community expectations, changing demographics, the need to improve sustainability and resilience to natural disasters all add to this demand. At the same time, we also need to look after Auckland s large existing asset base. Infrastructure is a big ticket item and the cost of meeting this demand is substantial. Many of the projects that will be needed to underpin Auckland s ongoing success as it grows will require significant capital investment and on-going operational costs. However for Auckland to be successful, it must be also an affordable place to live, work and do business. Despite significant funding streams from central government and potential opportunities to partner with the private sector and Māori, this will inevitably mean that funding for Auckland infrastructure will be constrained. The Auckland Plan states that Auckland expects that the quality and effectiveness of its infrastructure will be improved as the population increases, through enhanced efficiency and prudent investment. The development of this strategy provides an opportunity to help deliver this. 20

25 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy 2 Purpose Articulate how we will manage demand for infrastructure services A key purpose of this strategy is to set out how we are going to manage the major drivers of demand for Auckland s infrastructure over the next 30 years within a constrained funding environment. This is illustrated in the following diagram (Figure 1). Auckland has a bold vision to be the world s most liveable city. Achieving this will require us to prioritise in order to make the most of available funding. Figure 1 Auckland s Infrastructure Strategy Provide a long-term perspective Infrastructure assets have long-term impacts as many of their life spans are greater than the 30 year term of this strategy. Many also are transformational in nature and have the ability to influence the form of our city in addition to the way it functions. As illustrated in the diagram below (Figure 2), history demonstrates that past infrastructure projects have had a powerful influence on Auckland s current urban form in terms of where housing and businesses are located, and how future growth can be accommodated. In a similar way future projects may have the power to enable transformational change and move us toward our vision to be the world s most liveable city. For this reason it is important that we make the right decisions about how we provide services. Can we make better use of our existing assets, perhaps delaying the need for new infrastructure in some instances? If we do need new infrastructure then we need to consider what we need, where we need it, when it is needed and understand whether the decisions that we make will limit our future options. 21

26 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Figure 2 Auckland city shaping projects and urban form Therefore, this strategy focuses on understanding our medium to long-term infrastructure requirements, which would subsequently inform our shorter term decision-making. By taking a long-term view, we can assess whether there are potential investment gaps or affordability issues beyond the 10 year horizon of this long-term plan. Signalling our longer term view also provides direction to the wider community, including other infrastructure and skills training providers, which informs and supports their long-term planning. In developing a long-term view for infrastructure, input from Auckland s communities must form part of the decision-making process. Coordinate effective and efficient infrastructure management Well considered Infrastructure investment may deliver a broad range of wider benefits to Auckland. Infrastructure provides a foundation for Auckland. Beyond the immediate impact on the land use patterns of Auckland, potentially it has wider economic, environmental, social and cultural benefits as shown in the following table. Economic benefits Improving business productivity and international competiveness Increasing business activity and jobs Increasing attractiveness for investment Attracting people to live in or visit Auckland Increasing investment opportunities for Māori Social benefits Enabling greater social cohesion Improving access to jobs, education community and recreation facilities Increasing opportunities for children and young people Improving and maintaining public health Environmental benefits Minimising detrimental impacts on the environment Enabling environmental standards to be met Increasing resilience to climate change and natural hazards Providing resource efficiencies Reducing greenhouse gases Cultural benefits Supporting papakāinga housing and marae development Strengthening community participation, spirit and resilience Recognising the role of mana whenua as kaitiaki Table 1 Wider benefits that may be delivered from infrastructure investment 22

27 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Providing resilient infrastructure may have benefits across all well-being areas. Resilience enables communities and businesses to continue to function after disasters; bouncing back and retaining jobs. It can also limit the impact of disasters as infrastructure failure may affect widespread areas. Resilience is also significant in preventing, or reducing, environmental damage resulting from infrastructure failure. This strategy will help ensure that our investment in infrastructure can achieve the potential benefits as efficiently and effectively as possible. This will require coordination. This strategy aims to be a focal point for coordinating and integrating individual plans for individual assets and providing a coherent perspective across asset groups. 23

28 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy 3 The Auckland context 3.1 An overview of Auckland Council s infrastructure assets Auckland Council and council-controlled organisations have an extensive infrastructure portfolio, with assets across the infrastructure types covered by this strategy estimated to be valued at over $30.8 billion. This ranges from pipes under the ground to roads and community facilities. In some cases assets serve multiple purposes, for example stormwater reserves which serve as open space. Some key information about each of the infrastructure types is provided below 1. Transport, including roading, footpaths, parking and public transport Auckland s transport system is one of the region s most valuable assets, at $13.4 billion. This includes; 7,302km of roads, 6,959km of footpaths, 1020 major bridges and culverts, 41 rail stations on five lines, 21 wharves and 14 ferry facilities, 6 busway stations, 6 multi-storey car park buildings and 872 pay and display units. Auckland Transport is a council-controlled organisation which is responsible for the development, operation and management of all of Auckland s local land transport services 2. Integrated planning with other transport providers such as the New Zealand Transport Agency (NZTA) and Kiwirail is a key role. The primary sources of funding for Auckland Transport are the council (50 per cent) and NZTA (30 per cent) with the remaining 20 per cent coming from operating revenues, including user charges and fees. Water supply and wastewater Watercare Services Limited is a council-controlled organisation responsible for the provision of Auckland s safe and reliable drinking water and the treatment of wastewater to a high standard and in an environmentally sustainable manner 3. Watercare has $8.4 billion worth of assets including; 12 dams, 15 bores and springs, 3 river sources, 19 water treatment plans, 90 reservoirs, 8,938km clean water pipes, 90 water pump stations, 7,834km wastewater pipes, 500 wastewater pump stations and 18 wastewater treatment plants. During 2014 Watercare provided on average 326 million litres of water each day. Watercare is required to fund its own activities as it does not receive any funding from Auckland Council or central government. Stormwater and flood control Auckland Council has $4 billion of stormwater assets including 6,000km of stormwater pipes, 20,000km of streams, 150,000 manholes and 370 ponds and wetlands. The council manages and operates this stormwater infrastructure ensuring that stormwater flows are managed cost-effectively and adverse impacts on public health and safety, the environment, public and private property and the economy are reduced. The water quality of our harbours and waterways is particularly related to stormwater management. Stormwater and flood control are funded out of the council s general rate. The council s Stormwater Unit works to minimise the potential for damage to both Auckland s natural and built environments and to limit the disruption in basic services should flood events happen. 1 For more detailed information please refer to the ITP and Asset Management Plans for Auckland Transport, Watercare, Stormwater, Open Space and Community Facilities. 2 Excluding the state highway network and the rail corridor which are the responsibility of the New Zealand Transport Agency and Kiwi Rail respectively. 3 With the exception of Papakura, where Veolia Water retails water and wastewater services to homes and businesses under a legacy franchise agreement. 24

29 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Parks, community and lifestyle Auckland Council has $5 billion worth of parks, community and lifestyle assets, this includes; 26 regional parks, over 3,000 local parks, 241 sports parks, 55 libraries, 62 community houses/centres, 43 recreational/aquatic facilities and 40 art facilities Auckland Council s role in providing infrastructure The council operates within a legislative and regulatory framework that includes the Local Government Act (2002), Resource Management Act (1991), Land Transport Management Act (2003), as well as other national standards and policy statements; these direct the way in which the council invests in and manages infrastructure. Auckland Council has a number of roles in the planning and delivery of infrastructure and is a major investor across a broad range of infrastructure types. It is a facilitator, working with other infrastructure providers to deliver affordable services to residents and businesses. It also has a regulatory role; designating, consenting, monitoring and developing new planning rules and policy for infrastructure. Investor/Provider Facilitator Regulator Investing directly in and providing infrastructure Contracting infrastructure services to third parties Organising private public partnerships Providing funding to community groups Ensuring Māori are involved in decision making on the planning, delivery and operation of infrastructure Table 2 Auckland Council s role in providing infrastructure Promoting private investment in Auckland Organising industry advisory groups and panels Working with mana whenua and communities to assist in infrastructure development Developing regional planning frameworks (within a national context) for integrated land-use and infrastructure Processing resource consents, notices of requirement, outline plans, and plan changes Producing new planning regulations e.g. Proposed Auckland Unitary Plan 3.3 Demographic context Auckland has diverse demographic characteristics and different parts of Auckland have distinct demographic characteristics. Auckland is home to over 180 ethnicities and almost 39 per cent of Aucklanders were born outside New Zealand. Whilst the majority of Auckland s population is New Zealand European (59 per cent), we also have the largest Polynesian population of any city of the world (15 per cent), the largest Māori population in New Zealand (around 25 per cent of Māori live in Auckland) and 23 per cent of our residents identify as Asian. Like many other parts of New Zealand Auckland s population is aging and between 2006 and 2013 we experienced a 27 per cent increase in the number of residents aged 65 years and over (an additional 34,608 older people). However, our population is, on average, younger than the rest of New Zealand and this is particularly apparent in some parts of Auckland where there are high concentrations of children and young people. 3.4 Auckland s physical context Auckland covers almost 500,000ha, from Te Hana in the north, to Waiuku on the edge of the Manukau Harbour in the south. It is home to a range of outstanding natural features. These defining features contribute significantly to Aucklanders' quality of life but also present some challenges for Auckland s infrastructure. The shape and nature of Auckland s urban form has been significantly influenced by its setting and natural features. Auckland is built on a narrow isthmus bordered by the Waitematā and Manukau harbours. 4 Regional facilities including the Auckland War Memorial Museum and the Auckland Art Gallery are not included in this strategy. 25

30 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Despite being New Zealand s largest city over 70 per cent of Auckland s landmass is rural. These rural areas vary from productive pastures for livestock, agriculture, horticulture and equestrian activities, to forestry areas and areas of protected native bush. A significant portion of the gulf islands are rural, with large holdings of conservation land. Much of Auckland is built on the Auckland Volcanic Field which covers 360 square kilometres and contains at least 50 volcanoes. The geology of Auckland means that some areas are prone to land instability 5. There are differences in ability of soils to drain and over time Auckland s land surface has been extensively modified by urban development, altering natural water drainage. Auckland has approximately 2,000km of coastline. Our coastal environment is diverse and includes developed urban areas, natural estuaries, harbours and bays. There are sheltered white sand beaches to the east contrasting with rugged black sand beaches in the west. The coast is a desirable location for development but has challenges including storm surge, coastal instability, high winds and tsunami. Our climate is changing. This may result in changes to temperature, rainfall and sea level. Over time, climate change will place pressure on our infrastructure which will need to be able to respond to different environmental effects such as extreme weather patterns. 3.5 Auckland s strategic context The Auckland Plan The Auckland Plan is the strategic guide for Auckland s future over the next 30 years. It sets a shared vision for Auckland as the world s most liveable city based on a quality, compact approach to accommodating projected growth. The Auckland Plan describes outcomes needed to achieve this vision by 2040, highlighting six transformational shifts where a step-change is needed, as shown in Figure 3. Figure 3 Auckland Plan vision, outcomes and transformational shifts Three of the six transformational shifts - the move to outstanding public transport, radically improving the quality of urban living and strongly commit to environmental action and green growth - relate closely to infrastructure provision and can be seen as enablers of the other transformations. Investment in these areas has the potential to drive change across environmental, economic, social and cultural outcomes. Aucklanders have expressed a clear desire to improve these outcomes. This translates into greater demand for new infrastructure as well as higher levels of service from existing infrastructure. As noted in the issues section, this will have impacts in terms of the funding that would be required to meet those expectations. Delivery of the 5 Portions of the Northland Allochthon feature north of Albany (which can present significant slope stability and site development issues). Parts of the south are characterised by Holocene Alluvium which typically comprises highly compressible soft to firm organic soils. It often includes layers of peat (typically considered unsuitable or difficult to construct over). 26

31 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Auckland Plan will be supported and enabled by a range of core strategies and plans; some such as the Economic Development Strategy and the Low Carbon Auckland Action Plan (LCAAP) are already in place, others such as the Proposed Auckland Unitary Plan are currently in development. The Auckland Plan considers Auckland s Physical and Social Infrastructure (Chapter 12) which sets out a strategic direction, targets and priorities for infrastructure including Auckland Council s portfolio as well as other infrastructure owned and managed by central government or private providers. Figure 4 Auckland Plan strategic direction, targets and priorities for Chapter 12 Auckland s Physical & Social Infrastructure The Auckland Plan also sets out seven principles we will work by to achieve its outcomes, these are all relevant to developing and implementing the Infrastructure Strategy. These principles are: work together; value Te Ao Māori; be sustainable; act fairly; make the best use of every dollar spent; be affordable; check progress and adapt to improve. Enabling better outcomes with Māori Auckland Council is committed to ensuring its policies and actions consider the recognition and protection of Māori rights and interests, and how it can address and contribute to Māori needs and aspirations. The council recognises the kaitiaki and manaaki responsibilities of mana whenua and the aspirations of Māori as residents and ratepayers in Auckland. Preservation of the mauri or life essence of the flora and fauna, land, water and waterways is a matter of great importance to Māori and is an issue that is central to many of Auckland s infrastructure projects. Iwi management plans are an important mechanism to understand mana whenua perspectives and aspirations that will inform infrastructure planning, and form the basis of strengthening the council s relationships and engagement with mana whenua. The development and renewal of infrastructure can directly assist to achieve the Auckland Plan outcome A Māori identity that is Auckland s point of difference in the world. The Auckland Plan also acknowledges that it will work to achieve Māori aspirations through partnership and active engagement in the planning, delivery and supply of infrastructure. Subsequently, the Māori Responsiveness Framework has been developed to enhance and guide how the council, including council-controlled organisations, works, supporting multiple outcomes including the Independent Māori Statutory Board s schedule of issues of significance. 27

32 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy The Housing Accord and Special Housing Areas Auckland Council and central government entered into the Auckland Housing Accord in September 2013 to help tackle Auckland s housing challenges of providing adequate supply and affordability. Through the Accord and associated legislation, Auckland Council s Housing Project Office (HPO) has been tasked with the identification and processing of applications associated with Special Housing Areas (SHAs). SHAs involve fast tracked planning processes to deliver the agreed housing targets in the Accord. Infrastructure availability is a critical factor in considering SHA applications. Civil defence and emergency management Auckland Council has a statutory role in planning for civil defence and emergency management (CDEM) to meet the requirements of the CDEM Act This planning employs a resilience approach for infrastructure, including project assessment for the impact of various hazards on Auckland's infrastructure, identifying ways to reduce these impacts, and working collaboratively to increase preparedness. CDEM also assists Auckland through resilience building to support the community when the capacity of infrastructure is exceeded, for instance in storm events. This approach will be supported through the Infrastructure Strategy. 28

33 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy 4 Significant infrastructure issues The overarching infrastructure issue facing Auckland over the next 30 years is how to respond to the various demands on infrastructure given the funding constraints we face. Our response needs to take into account the long-term perspective and align across infrastructure types. Projecting future demand for infrastructure is critical to ensuring that the right level of investment is made in the right infrastructure, in the right locations at the right time. Not doing this will significantly affect the council s ability to effectively and affordably deliver new infrastructure as well as maintain existing infrastructure. 4.1 Drivers of demand for infrastructure Auckland s growth Over the next 30 years Auckland is expected to experience significant population growth, with our population projected to grow by over 716,000 people 6. This level of growth will place significant pressure on the capacity of existing infrastructure and create demand for new infrastructure. The scale and speed with which our population grows over the next 30 years in combination with when and where across Auckland this growth occurs will impact on infrastructure needs and costs. Delivering infrastructure at the right scale, in the right locations and at the right time to accommodate this level of growth will be challenging. Poor alignment between the location and timing of growth and infrastructure investment can lead to infrastructure networks that are over-stressed and unable to deliver good outcomes, or to assets which are under-utilised, or to communities that do not have the right infrastructure at the right time. While development contributions can to some extent be used to fund the cost of providing growth-related infrastructure, this mechanism can only help fund the initial capital cost of the infrastructure rather than funding the full lifecycle and then the replacement cost of the infrastructure. In addition, increases in development contribution charges may impact on housing costs and may thereby have adverse consequences for housing affordability. Demographic change Auckland s demographic characteristics contribute to the thriving, cosmopolitan nature of Auckland. However, different demographic groups have different needs and preferences, for example some groups have a greater need for public transport services than others, and this affects demand for infrastructure and services. The demographic characteristics of Auckland s communities will continue to change over time and this will impact on demand for infrastructure and services. For example, recreational preferences are likely to change and diversify over time, influencing the way in which our parks, sports fields and leisure centres are used in the future. We will need to be agile and flexible and respond to changing preferences and manage competing demands for how our assets are used. Different demographic groups also have a differing capacity to pay for infrastructure and services. As our population ages an increasing proportion will, for example, be more reliant on fixed incomes to absorb increased costs of services. Service level expectations Even before the 716,000 anticipated additional people arrive in Auckland over the next 30 years, there is a significant gap between the service levels necessary for Auckland to achieve its goal of becoming the world s most liveable city and what our current infrastructure can deliver. Nowhere is this more prominent than in our transport networks, particularly for public transport, walking and cycling, despite significant catch-up investment in the last 5-10 years. Similarly, there are existing properties with known flood risks and an expectation that these will be rectified. In addition, expectations for Auckland s arts and community centres, playgrounds, sportsfields and our walking and cycling networks are all rapidly increasing. 6 Source: Auckland Council long-term growth data, September

34 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Prior to the amalgamation of Auckland Council, there were different approaches to the provision of infrastructure and this has resulted in comparative gaps of provision or in some cases in duplication across the region. This means that different parts of the region have different levels of service and differing access to some types of infrastructure and associated services. Sustainability 7 Auckland benefits from its location and proximity to a number of important natural areas and environments. Our environment is an essential part of our identity, our economy, and the way we live. However, urban development and the age and quality of our infrastructure can have a detrimental effect on our natural environment and on public health; for example, increased stormwater runoff can cause erosion of our streams impacting on water quality. Our existing infrastructure can at times, fail to meet current environmental standards. Expectations about how we treat our environment and national environmental standards are changing there will be costs associated with meeting these. The Auckland Plan recognises that a strong commitment to environmental action and green growth is required as the region develops. This includes recognising the role of mana whenua as kaitiaki and providing opportunities for this responsibility to be expressed as part of infrastructure planning and ongoing monitoring. Resilience Auckland s quality of life, public health and economic wellbeing are reliant on infrastructure. The impact of infrastructure failure can include asset damage, cost of repair, loss of services or access, and resulting business and social disruption. Infrastructure failure can result from network failures, such as the 1998 Auckland city centre power outage caused by the failure of a cable, or due to the impacts of natural hazards as highlighted by the Canterbury earthquake sequence. Within the Auckland region, there are a number of existing and potential natural hazards which pose a risk to the safety and functioning of our infrastructure networks. Some of these hazards, such as flooding, coastal inundation, land instability and storms occur with greater frequency than others. In the future, weather related events are expected to increase in frequency and intensity due to climate change and coastal hazards will impact progressively inland from the areas currently affected as a result of sea level rise. Auckland is also subject to geological hazards, as a result of our city s location on top of the Auckland Volcanic Field, the effects of volcanic ash from other North Island volcanoes and minor earthquakes. The vital role that infrastructure plays in our community means Auckland Council has a responsibility to plan for and invest in the resilience of its infrastructure. Council is working towards developing an organisation-wide understanding of what resilience means in terms of the balance and tradeoffs between the need for stronger more physically robust assets which are less likely to fail versus allowing infrastructure to be less robust because the system within which it operates (e.g. community, the environment) has the ability to adapt or bounce back in the event of failure. The council also acknowledges the need to maintain or improve public health outcomes and mitigate any adverse effects on them. Condition of existing assets Infrastructure, particularly aging infrastructure, can also fail even in optimal conditions. Regular maintenance, renewal and replacement of our networks and assets are critical to ensure that they remain reliable and stable foundations of our region. 7 Sustainability is commonly defined as managing the use, development, and protection of natural and physical resources in a way, or at a rate, which enables people and communities to provide for their environmental, social, economic, and cultural wellbeing and for their health and safety. 30

35 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Underinvestment in infrastructure has been an issue for Auckland. In addition to capacity issues, this also means that some of our assets are no longer in optimal condition. These assets may require investment to ensure they can meet current and future capacity, are fit for purpose, resilient, and of a suitable standard (including standards related to public health). Key assumptions about the current state of our infrastructure assets are included in Appendix 1. For many types of infrastructure assets, the most cost effective asset management strategy is to minimise whole of life costs through preventative planned renewals and maintenance. This is focused on managing the assets to have a suitable condition profile to deliver levels of service and user satisfaction while minimising risk of failure. This approach is primarily to protect the current investment in the networks. At present, most asset categories such as our roads, bridges and parts of our community building portfolio generally have a suitable condition profile because of this preventative planned approach. However, this approach may not be possible across the whole asset portfolio in the short-term given current funding constraints. In this case, there will be some short to medium term risk of reduced levels of service and user satisfaction and increased risk of failure. It may also lead to some increased whole of life costs in the medium to long-term through increased maintenance and remedial works. This is the case for our transport assets as discussed in Appendix 1 and Part 2.6 of this volume. Often when new infrastructure assets are provided, particularly for community infrastructure, there is a tendency to retain the old asset in addition to the new even if it is not needed to achieve the intended level of service. Retaining these old assets can unnecessarily add to operational and renewal requirements. 4.2 Funding constraints While Aucklanders have expressed clear support for creating the world s most liveable city, and in particular expressed a clear desire to fix Auckland s transport problems and improve the quality of Auckland s urban environment, they have also clearly told us they have no appetite for large increases in rates or council debt. The council has access to significant funding streams from central government. It can raise revenue through development contributions, targeted rates and other mechanisms such as fees and charges, and has potential opportunities to partner with the private sector. However, it will remain challenging to balance Aucklanders aspiration for progress against their need for affordability. For transport alone, the gap between the 30 year funding required to achieve the Auckland Plan and currently available funding sources was estimated to be $12 billion. As Auckland grows the full life-cycle cost of maintaining our infrastructure networks will increase over the next 30 years and we need to continue to look for effective and efficient approaches to maintaining and making the best use out of our assets. However, the gap between the demand for infrastructure and our funding constraint is so large that efficient and innovative infrastructure management will not be sufficient to solve the problem by itself. What we need is a bold strategy to: manage growth and demand ensure investment in the right projects that have the potential to be truly transformative, and allow the significant trade-offs between cost, risk and service levels to be adequately considered and safely managed. In addition, we need to consider some new approaches to funding. 31

36 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy 5 Our responses tools and mechanisms As part of developing this document a wide range of options for managing Auckland s infrastructure demand were identified and assessed 8. From this work eight key mechanisms were chosen which form a package of responses to the significant infrastructure demands and the funding constraints outlined above. These are: 1. The Auckland Plan Development Strategy implementation and spatial prioritisation 2. Mechanisms to help manage the demand for infrastructure 3. Smart /transformative infrastructure investment 4. Strategic long-term network and systems planning 5. Efficient and innovative asset management 6. New funding and delivery mechanisms 7. Monitoring and review programme 8. Application of sustainability and resilience principles Some of these mechanisms are already being used as part of the council s current infrastructure management practices. Particular mechanisms may address multiple issues, or alternatively may be more relevant to specific classes of infrastructure; for instance, demand management is an approach used within transport, water and wastewater rather than for community infrastructure. Some mechanisms are likely to have greater relative impact; however brought together and applied over the 30 year period they all combine to support Auckland Council s 30-year Infrastructure Strategy. 5.1 The Auckland Plan Development Strategy implementation and spatial prioritisation Addresses growth, resilience, sustainability, funding Auckland s funding constraints mean that we need to leverage off existing infrastructure wherever possible, and carefully plan for new growth and its likely implications for infrastructure. The Auckland Plan sets in place a quality compact approach to growth that aims to ensure that this happens. In developing the Auckland Plan several options for managing growth were considered 9. These were publicly consulted on and Aucklanders clearly signalled that they believed that taking a quality compact approach was the best option. This approach focuses on making best use of land which has already been developed or targeted for development, supplemented with well-managed expansion into appropriate greenfield areas. It will provide for per cent of growth (e.g. homes and jobs) within Auckland s existing core urban area; with per cent of growth occurring in new greenfield, satellite towns and rural and coastal towns. The approach also recognises the importance of creating quality neighbourhoods and urban places where people want to live and work and the staged release of greenfield land with the timely delivery of infrastructure. Proposed Auckland Unitary Plan and Future Urban Land Supply Strategy While the Auckland Plan, particularly its Development Strategy, provides the overarching framework for our infrastructure strategic planning, there is still further work required to put in place underpinning policies, regulations and programmes. The Unitary Plan, which is currently being developed, is the key mechanism that the council has to shape land use, which can significantly influence the demand for existing and new infrastructure. Aligned to this will be the development of a Future Urban Land Supply Strategy which sets out sequencing and timing of future urban areas. This will be significant as it will provide greater certainty for forward planning. Once completed, this programme will assist longer term infrastructure planning, especially for infrastructure needs after The Options Paper for the 30 Year Strategy, sets out the options that were considered, the issues they address and the implications. 9 See Auckland Plan Scenario Evaluation Workstream Technical Paper, September

37 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Spatial prioritisation Spatial prioritisation is being introduced as part of this LTP. It provides a process for targeting investment over time so that Auckland Council s limited resources are focused into areas that will enable multiple outcomes, including more jobs, more homes, greater mobility, connected communities, improved recreation and a quality environment. It aligns investment with the Auckland Plan s Development Strategy and transformational shifts and also considers SHAs. It acknowledges investment will still occur outside these spatial areas focusing on key infrastructure requirements, optimising and completing existing investment, and enabling and stimulating economic development. Managing and maintaining the integrity of the various existing infrastructure networks and services is critical for building capacity and resilience across the wider region to meet the demands of growth. From an infrastructure perspective, the quality compact approach and spatial prioritisation will make better use of existing infrastructure, increase the viability of public transport and mean Auckland is better able to prioritise and align future infrastructure expenditure. This should translate into greater productivity and economic growth with greater social and cultural vitality. It also means our rural character and productivity will be maintained and negative environmental effects will be reduced. Forward Land and Infrastructure Programme (FLIP) FLIP is a programme that assists the achievement of more detailed alignment between land use planning and infrastructure delivery to ensure that the right things are in the right place at the right time and within budget. It aims to improve integration of growth projections with land use plans and infrastructure delivery over time and relies on greater information sharing and accessibility. 5.2 Mechanisms to help manage demand for infrastructure Addresses growth, resilience, sustainability, service level expectations, funding Our funding constraints mean that we will not be able to respond to all increases in infrastructure demand by solely increasing the supply of infrastructure. Therefore, finding other ways to address demand for infrastructure will be necessary. Demand management is a planning approach used to minimise the need for new infrastructure. It refers to measures which change behaviour such as pricing, taxes, use of speed and red light cameras, statutory planning controls that are not based on infrastructure solutions but on policies, regulatory levers and incentives. For example, Watercare is targeting a 15 per cent reduction in water consumption per capita from 2004 levels by They plan to achieve this through consumer education and actively working with businesses to help them better understand their water usage. Other key examples include user charges for refuse collection and parking charges. The possible introduction of a motorway charge discussed in Section 5.6 below would also have the potential to significantly change the demand for roading infrastructure in Auckland. 5.3 Smart/transformative infrastructure investment Addresses growth, resilience, sustainability As noted previously, it is not possible to address Auckland s future infrastructure needs through traditional approaches of supplying more infrastructure in response to greater demand. To cope with our substantial growth and our funding constraints, we will need to think differently about how we provide infrastructure. This includes: thinking about how infrastructure can shape growth and influence demand and ensuring that we invest in the right infrastructure to best manage growth and achieve our strategic goals using robust methodologies for better decision making and to guide planning, investment and project development 33

38 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy taking advantage of emerging new technologies over the next 30 years undertaking more holistic planning for infrastructure over a 30 year horizon and across asset groups. Some infrastructure is critical to achieving our strategic goals and has extraordinary effects in terms of the impact it makes on Auckland s infrastructure network. Through our strategic and financial planning processes Auckland Council has been identifying transformative projects that will be prioritised. A key example of such a transformative project is the City Rail Link. This will fundamentally change the growth and infrastructure landscape of Auckland, in a similar way to the original opening of the Auckland Harbour Bridge. It will in effect bring parts of the south and the west of Auckland close to the city centre, and equally bring the centre closer to the south and west 10. Infrastructure assets are often costly to plan, purchase or build and most of our assets have long lifespans over which they must be managed and maintained. Technology is changing rapidly and there is little doubt that over the next 30 years innovation and new technology will continue to drive societal change and will open up new options for how we manage and build our infrastructure. In making decisions we can foreclose future options that are available to us, this creates path dependency. Our planning for the future needs to ensure that we retain the flexibility to respond to challenges and utilise new technology to allow us to deliver the outcomes sought from our infrastructure in different and more cost effective ways 11. Many assets require significant forward planning to ensure that suitable land is secured in the right location and often many years in advance of an asset being required or built. Purchasing land or property early is typically more affordable and ensures that assets are located appropriately. Where there are network gaps in existing urban areas it can be costly to purchase suitably sized and located sites. Employing robust methodologies will improve decision making to help ensure infrastructure investment is being selected based on its strategic alignment, value for money and supporting evidence. These methodologies will also encourage a collaborative, cross-agency approach to help to clearly define a shared view of the problems and benefits of addressing these, then develop and assess a range of options and better plan for and implement the best solutions as part of an integrated and well defined process. For instance, transport groups are using a structured business case methodology for selecting infrastructure projects to be implemented, which could be leveraged by council. 5.4 Strategic long-term network and systems planning Addresses growth, resilience, sustainability, service level expectations, demographic change This is the process of utilising a number of key strategies (e.g. Communities Facilities Plan, Integrated Transport Programme (ITP)) to address challenges and issues at a network or system level. They consider the contribution of the network/system in meeting the aspirations of the Auckland Plan and supporting strategies and action plans, and take into account the management of assets. They also provide direction to Asset Management Plans. The potential benefits of addressing issues at a network and systems level include ensuring effective and efficient management of assets, and allocating investment in new assets. 5.5 Efficient and innovative asset management Addresses growth, resilience, sustainability, service level expectations, demographic change, asset condition This approach will enable infrastructure programmes to be refined and optimised so they achieve the best value for money from previous and new investments in terms of the level of service they deliver. There are four key components to this approach. They are, in order of priority: 10 Further information about the City Rail Link project and the benefits it will deliver are included in Section Discussion on two infrastructure project case studies which provide a high level understanding of the decision making process undertaken and to provide lessons for future decision making are included in the technical paper, Bentley J and Hay D, Auckland Council 30 Year Infrastructure Strategy, Methodology for Future Decisions, Technical Paper, December

39 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy 1 Operate, maintain and renew infrastructure optimally: This means we take a long-term view and consider impacts over the next 30 years and beyond. For our existing assets, this also means that instead of only focusing on the best time to repair or replace each individual asset, we develop plans that consider how these assets all work together as part of an interconnected network. We therefore seek to develop asset plans that will ensure the entire network of assets is managed in a way that is fit for purpose, minimises cost over the long-term and ensures that risks to service levels and public safety are acceptable both now and in the future. Where near-term funding constraints do not allow a long-term optimal approach to be employed, we will monitor the condition of our assets to ensure that risk levels remain acceptable and future asset expenditure requirements sustainable. Without significant additional funding, this is the case for our transport assets. The council s long-term budgets are therefore based on Auckland Transport moving towards a more targeted risk-based approach to managing our transport assets that aims to achieve acceptable levels of satisfaction while minimising risks to public safety. This approach would result in higher risk, potentially higher future operating expenditure requirements and a reduction in the current very high road maintenance standards to a level that is still quite high compared with other cities internationally. Specifically, road maintenance standards for all urban roads (as measured by smooth travel exposure) are projected to decrease from about 83 per cent to 77 per cent over the next ten years, and then gradually reduce over the following twenty years. Auckland Transport s condition modelling tool indicates this approach would result in the proportion of assets in poor to very poor condition steadily increasing over the next 20 years but then stabilising after that. We therefore consider that while this approach may not be optimal over the long-term, it is prudent and sustainable. Auckland Transport will use regular monitoring, analysis and prioritisation to actively manage the risks over time. Further information on Auckland Transport s approach to managing its renewals requirements over the next 30 years is included in Appendix 1. 2 Make better use of networks: Experience with managing infrastructure systems suggests the best returns from investment can often be achieved through optimal management and use of existing assets. Examples of network optimisation activities include: safety schemes; changes to clearways and other parking management measures; tuning traffic signalling systems; speed limit reviews and minor upgrades to existing arterial roads and local roads. In terms of parks and community infrastructure, making better use of the network may mean disposing of poorly utilised or non-performing assets in order to fund new assets. It may also mean closing or disposing of an old asset when a new asset is created. Because funding constraints mean that we will not be able to maintain all of our parks and community assets in their optimal condition, we will review these asset portfolios to ensure that we are achieving best value for money in terms of service levels across each portfolio. 3 Manage demand efficiently and safely: Demand management refers to measures which change behaviours such as education, pricing, taxes and statutory planning controls that are not based on infrastructure solutions but on policies, regulatory levers and incentives. Our asset planning processes will consider opportunities to address demand through these kinds of non-asset based solutions. 4 Invest in new infrastructure, services and technology: Major transport improvements will be crucial to meet increasing demand associated with growth, and to maintain good levels of service for freight and commercial vehicles. The ITP undertakes a prioritisation process for new investment to clearly link the relative priority of projects to the strategic direction of the Auckland Plan. When we invest in new libraries and community facilities, we will focus on the provision of multi-use facilities rather than just expanding the existing network of separate facilities. The most likely scenario in section 6 sets out our planned infrastructure investment. Part of managing our assets will include managing our critical infrastructure. The Auckland Plan defines critical infrastructure as being assets, services and systems which: are an immediate community requirement and fundamental to enabling development. If destroyed, degraded or rendered unavailable for periods of more than one day, this loss would have serious consequences for the health, safety, security and social and economic well-being of the Auckland Region (e.g. major wastewater treatment plants). are fundamental to the long-term well-being of the community, and contribute to Auckland s liveability, such as those components relating to cultural and social infrastructure (e.g. open space and libraries). 35

40 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy A list of Auckland s critical infrastructure is included as Appendix 2. This includes infrastructure covered by this strategy as well as infrastructure that is the responsibility of other agencies. 5.6 New funding and delivery mechanisms Addresses growth, resilience, sustainability, funding Non-traditional ways to fund and deliver infrastructure are being investigated. This includes options such as public-private partnerships; private sector funding or provision; new funding mechanisms such as regional fuel taxes; congestion charging; and tax incremental financing; user charges; sponsorship opportunities; and partnership or collaborative approaches. By using such options we may be able to deliver infrastructure that might not otherwise be possible. A group of independent experts have worked out two ways Auckland could fund additional transport investment. One option involved increases in fuel taxes and higher overall rates increases each year, while the other involved a motorway user charge of around $2 each time people enter Auckland s motorway system. Government support and changes to legislation would be required under either of these two options. Auckland Council will work with central government to enable these mechanisms to be further explored. Post settlement iwi will be looking to re-invest settlement monies in long-term investments and this may have a number of significant implications for infrastructure planning and this LTP. Māori will be significant urban landowners looking to actively participate in urban development and to promote specific outcomes for Auckland, the environment and for iwi through partnerships, investments and greater involvement in decision making. Current examples include mana whenua-led housing developments in Orākei and Weymouth (approved SHAs). Benefits from projects may vary, depending on the mechanism used, but could include targeting funding for infrastructure investment to an area or community which receives the benefit; improved environmental performance; improved resilience and greater equity in funding contributions. There is also potential for more collaborative approaches to infrastructure investment. Part of the assessment will need to look at risk factors such as the potential need for legislative changes and the robustness of business cases. 5.7 Monitoring and review programme Addresses growth, demographic change, resilience, sustainability As part of Council s LTP the Infrastructure Strategy will be reviewed on a three yearly basis. To ensure that the strategy is helping to achieve the Auckland Plan outcomes and remains current it will be important to ensure that regular monitoring is undertaken to feed into the evaluation and review process. Monitoring across a wide range of relevant social, economic, environmental and cultural indicators is already undertaken as part of the LTP, the Auckland Plan Annual Implementation Update, Asset Management Planning and the FLIP. Monitoring will also be required for the Future Urban Land Supply Strategy, which is currently being developed. Understanding the scale, speed and location of growth, to inform decision making around when, where and how much additional infrastructure capacity, will be an important part of this monitoring process ensuring new infrastructure investment is aligned with levels of growth. Alignment between growth and the council's infrastructure investment will provide financial efficiencies. We are developing a comprehensive monitoring programme to measure progress towards sustainable growth in line with the Auckland Plan. A sound evidence base from a comprehensive monitoring programme will inform good decision making, including planning for the management of our assets. 5.8 Application of sustainability and resilience principles Addresses growth, demographic change, service level expectations, sustainability, resilience Addressing the issues of sustainability and resilience is woven throughout this strategy. Building sustainability into decision making and understanding how to apply a resilience approach will need to be at the centre of how we develop and implement the Infrastructure Strategy. Each of the tools and mechanisms listed above embodies these concepts. 36

41 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Infrastructure has a strong role in delivering on our commitment to environmental action and green growth as the region develops. To achieve more sustainable outcomes, as proposed in the Auckland Plan, the council s networks and assets will need to be planned, designed, and operated in a way which supports quality compact growth, reduces resource use and assists in generating positive behaviour change in Aucklanders. For instance, the Auckland Plan makes a commitment towards the implementation of water sensitive design, which will affect the ongoing planning and operation of our networks. This is being implemented through programmes such as Healthy Waterways. The interrelated concepts require us to apply a systems approach to planning, designing and operating our infrastructure. They also require that we consider our short-term decisions and how these might positively impact on our long-term environmental, economic, social and cultural outcomes. Resilience can be improved by reducing vulnerabilities and strengthening our adaptive capacity or ability to adapt to shocks and stresses. In this context resilience can be achieved by: managing risks: where vulnerabilities and hazards are identified, and risks are managed through planning and operational measures building adaptive capacity: where social infrastructure is strengthened and governance and decision makers are focused on improving the adaptive capacity of the community and businesses, including infrastructure providers. Currently, there is more research needed to understand what balance between these two factors is required to achieve the best outcomes and the tradeoffs that we will need to make to achieve both societal and structural resilience. Building adaptive capacity, including strengthening of soft infrastructure networks such as improving preparedness and self-reliance, is acknowledged as an important element of building societal resilience. Investment will be required in order to reduce risks and vulnerabilities of infrastructure, building resilience into our infrastructure networks. Building redundancy or spare capacity into our systems, relocating infrastructure which is at significant risk of hazards, strengthening existing assets (e.g. seismic strengthening) to withstand hazards or building assets which are less vulnerable to hazards, affects how we invest and operate our infrastructure 12. Ensuring that we do not locate new communities and supporting infrastructure in areas at significant risk from hazards will affect where our city grows in the future and the form and affordability of development. Other relevant work which complements the Infrastructure Strategy and addresses the management of infrastructure risks includes: Auckland Engineering Lifelines Group Natural Hazards Risk Management Action Plan Low Carbon Auckland Action Plan Climate Change Adaptation Guidelines Civil Defence Emergency Management Group work programme. All of these workstreams contribute to addressing the impacts of climate change and tools needed, including infrastructure investment, to improve Auckland s response to the threat of climate change and uncertain energy supply. This is particularly critical for our transport networks, with transportation generating the majority of Auckland s emissions. Together they contribute to improving Auckland s infrastructure and societal resilience. 12 Mamula-Seadon L, Auckland Council 30 Year Infrastructure Strategy, Infrastructure Resilience Technical Paper, October

42 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy 6 The most likely scenario Infrastructure investment summary As outlined in the introduction Auckland is a large and rapidly growing city. The provision of good quality, affordable infrastructure is the key to Auckland being able to achieve its goal of becoming the world s most liveable city. Many of the numerous infrastructure projects are small, relative to the size and scale of our organisation; however the next 30 years includes some major challenges and opportunities that will require decisions which will have an important impact on the future of the city s infrastructure. These major projects are the cornerstones or enablers around which much of the other community infrastructure will be built. Our responses in Section 5 outline eight key mechanisms that will be used to prioritise infrastructure projects. Within each asset category there are some major capital expenditure requirements where the decisions on timing and scope will have a major influence on infrastructure provision. Transport, wastewater, water, stormwater, community facilities and open space networks are being driven by a common set of growth assumptions, by our spatial priorities and by the planning for special housing areas. This section details the overall infrastructure investment of Auckland Council for the next 30 years which is needed to resolve the issues discussed in Section 4, including the issues of affordability and constrained funding. It should be recognised that the council s infrastructure responses are not restricted to capital investment and include demand management, regulation (including land use planning regulations), exploring new approaches to funding and optimising operational management practices. 6.1 Total expenditure The following table sets out the capital and operational expenditure planned for each of the asset groups over the 30 years of the strategy. Infrastructure types Capital expenditure Operational expenditure Transport (roads and footpaths) $17.7 billion $25.1 billion Transport (public transport) $7.0 billion $37.5 billion Wastewater $10.6 billion $18.8 billion Water supply $10.0 billion $13.1 billion Stormwater (drainage and flood protection) $3.7 billion $4.4 billion Community facilities $2.6 billion $10.9 billion Public open space $7.6 billion $16.0 billion Table 3 Infrastructure expenditure This strategy does not start with a blank slate. There are many capital projects currently in process. The following table sets out a timeline for these current projects, many of which span across two or three decades. This demonstrates the complexity and scale of the major projects particularly in the transport, water and wastewater portfolios where the outcomes can be transformative at a sub-regional scale. On the other hand, it also demonstrates that projects in the stormwater portfolio and community facilities and open space projects are more localised in their impacts with potentially shorter lead in and implementation phases. 38

43 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Figure 5 Timeline of major transport, wastewater, water, stormwater and community facilities projects over These projects have already gone through significant investigation, scoping and business case development to determine their feasibility and the benefits that will be derived from them. The following sections break these current projects into two categories: projects in the planning stage projects being implemented. These categories demonstrate that options for these projects are in many cases limited because of the commitments that have been made, often contractually, or the contribution that they make to outcomes for interrelated projects. The real opportunity that this strategy presents is providing robust and consistent processes around future projects; those projects which have not yet been identified or made it to the drawing board. Setting up the framework around these future infrastructure needs is discussed in Section Transport projected expenditure and major projects Satisfying the increasing demand Auckland s rapid growth is placing on our transport network has been identified as the council s major challenge over the next 30 years. To meet the challenge a number of major new transport projects are proposed over the next 30 years. The need to live within our means and keep things affordable for our residents and businesses is another key consideration in planning for the future transport investment. 39

44 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Auckland Transport has developed an ITP which sets out the 30 year investment programme by all transport agencies to meet the priorities outlined in the Auckland Plan and the Government Policy Statement for land transport (central government s key strategic transport document). The ITP looks at the components of the network and at the most appropriate responses. The key transport challenges are: poor quality transport options that undermine Auckland s economic prosperity and liveability network inefficiencies and projected increases in congestion on our local and arterial roads, which impact on travel times and in particular the movement of freight within the city public transport capacity constraints (especially for rail and bus) growth, which will increase pressure on existing roads and public transport networks and require investment to serve newly developing areas the adverse health, safety, environmental and cultural effects from the transport system the high cost of providing new transport infrastructure and services. The ITP has six benefit areas, identifying the desired outcomes that all capital projects are assessed against to determine their priority and sequencing. These are: increased access to a wider range of quality, affordable transport choices Auckland s transport system moves people and goods efficiently better use of transport investment Auckland s transport system enables growth in a way that supports communities and a high quality urban form reduced adverse safety effects from Auckland s transport system reduced adverse environmental effects from Auckland s transport system. Auckland Transport s primary approach to addressing Auckland s transport challenges is to apply a rigorous prioritisation methodology based on these six benefit areas. As part of this LTP Aucklanders provided feedback that supported additional funding for our transport infrastructure. As a result this LTP now includes an interim transport levy to fund additional capital expenditure for the first three years of this Long-term Plan for the following amounts: 2015/ / /18 Additional transport capital expenditure $170 million $174 million $179 million While this additional funding will assist with delivery of programmes in the short-term, some of the initiatives and projects we propose to meet our transport challenges within the 30 year period of the Infrastructure Strategy are significantly larger in scale and include: 1. The City Rail Link (CRL) is the top transport priority for Auckland and is the key to delivering the Auckland Plan, the City Centre Master Plan, this LTP and the ITP. This project is transformational. It will double rail capacity and allow for more frequent services. As a result travel times across the entire rail network will be shorter and the number of people within 30 minutes train travel of a city centre station will double. The project will provide capacity for future expansion of the network to the North Shore and the airport. 2. A number of key projects are designed to free up roads for freight and business traffic. This includes the Auckland-Manukau Eastern Transport Initiative (AMETI) and East-Connections which are a group of projects for the southeast of Auckland to improve transport choices and connections. A major component of this programme is to get people onto public transport thereby freeing up roads for freight and business. The East West Connections programme will investigate current and future issues on the transport network for the Onehunga, Mt Wellington, Ōtāhuhu, Penrose, Māngere and East Tāmaki area which is Auckland s industrial hub employing over 130,000 people and generating more than $10 billion a year in GDP. Freight volumes 40

45 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy are increasing along with economic and population growth in the area. This will put increasing pressure on the nation s supply chains and the local transport network. 3. A number of infrastructure projects are required to support introduction of the new public transport network, which will untangle the complex web of infrequent bus services and put in place a simpler network of frequent services. The new network will triple the proportion of Aucklanders within walking distance of frequent public transport services, significantly improving transport choice and the efficiency of the system itself. Interchanges are required in Pukekohe, Ōtāhuhu, Manukau, Te Atatu, Lincoln Road and in various city centre locations, while bus lane improvements and extensions are also necessary to ensure the new network is a success. 4. In the longer term, key components of the transport programme focus on meeting the transport needs of a rapidly growing city, further improving transport choice and efficiencies and reducing adverse impacts caused by transport. Some of these key projects include the extension of rail electrification to Pukekohe 13, an additional Waitematā harbour crossing 14, rail to the airport and busway extensions. Some of these projects will be solely funded by central government (e.g. state highway improvements) while others will be funded jointly by government and Auckland Council, with exact arrangements to be worked out over time. 5. In 2012, the City Centre Future Access Study (CCFAS) responded to a government request to develop a robust and achievable transport programme for access to the city centre. It identified that the city centre is facing capacity issues for all roads into the city centre which would worsen from as early as The study also identified that even with the CRL and bus improvements, there would still be access problems into the city centre and in some areas the high number of buses would negatively impact on the quality of the urban environment. To address these issues, work is currently underway to provide an effective public transport solution for those parts of inner Auckland and the city centre that cannot be served by the heavy rail network (including the CRL). This solution would need to support growth requirements in a way that maintains or enhances the quality and capacity of the city centre streets. A range of options are being explored including Light Rail. Additional investment in public transport to improve access to the city centre would have the following benefits: improve transport access into and around the city centre from areas not served by the rail network to address current problems and for a rapidly growing Auckland by providing a transport system that is best able to satisfy the immediate needs and the long-term, rapidly growing customer demand in the city centre and approaches improve the efficiency and resilience of the transport network of the city centre by: o o o o improving journey time, frequency and reliability of transport access into and within the city centre and city fringe improving the linkages and servicing of key destinations, particularly those not served by the CRL, notably the university campuses and the Wynyard Quarter maximising the benefits of existing and planned investment in transport (including the CRL) releasing the capacity constraints around the city centre s most important approach routes and nodes. The major projects identified are listed in the tables below 15. The anticipated timing shown here is based on the Accelerated Transport Programme which forms the basis of the financial projections in this LTP. The principal options for the major projects listed in the tables below are to: progress with the projects on the timeframe listed; progress with the project on a different timeframe; break up the project into different stages; not do the project; or implement alternative modal (capacity) on travel demand solutions. 13 This is not in the list of key Auckland Council projects as the electrification will be a Kiwirail project. 14 This is not on the list of key Auckland Council projects as the additional Waitematā harbour crossing will be funded by NZTA. Council will work collaboratively with NZTA on this project and others for Auckland s benefit. 15 For detailed information about projects see the Auckland Transport Asset Management Plan and the ITP. 41

46 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Major projects at the planning stage Project Issues addressed Anticipated timing Estimated cost City Rail Link (CRL) An underground rail line linking Britomart and the city centre with the existing western rail line near Mt Eden. Project benefits and implications Growth, demographic change, service level expectations, sustainability, resilience (enabling works commencing in 2015/2016, main construction commencing in 2018/2019, operational in 2023) Benefits of progressing Enables improved network efficiencies and frequencies. Improves attractiveness of public transport, increasing usage. Improves city centre amenity and efficiency by reducing bus and private vehicle use. Encourages growth in city centre and around rail network by enhancing accessibility. Boosts economic productivity by enabling employment growth in city centre and other key centres. $2.5 billion (includes $200m spent prior to this LTP) Options The City Centre Future Access Study considered a number of options including: on surface bus capacity improvements; a central area bus tunnel; a bigger Britomart; and the CRL, and concluded that the CRL with surface bus improvements provided the best multimodal solution for city centre access. Implications of alternatives Limited capacity in city centre to cater for future bus capacity, need further public transport travel choices to central Auckland. CRL will maximise existing rail network and reduce pressure on city centre bus infrastructure capacity. Bus network cannot cater for all forecast increases in public transport use for trips to the city centre. Delaying this project will only exacerbate the issues described above. The project has already been reduced in scale from original proposals e.g. deletion of the Newton rail station proposal. Project Issues addressed Anticipated timing Estimated cost East-West Connections programme 16 A joint NZTA /AT programme focused on the Onehunga, Mt Wellington, Ōtāhuhu, Penrose, Māngere and East Tāmaki area, to improve freight efficiency, commuter travel, public transport and walking and cycling options over the next 30 years. Project benefits and implications Growth, service level expectations, sustainability, resilience (construction likely commence 2018/19) This may be delivered earlier under a government accelerated package Benefits of progressing Existing and projected inefficiencies for freight travel are reduced in Auckland s industrial heartland. Economic potential of Auckland is improved. $136 million (Auckland Council contribution only). Options A series of East-West route alignment options have been evaluated these included: a motorway option south of the Māngere Inlet; small scale low impact local road improvement options; and several options looking at east-west roading alignments. A preferred alignment was chosen and route options is being developed and consulted upon. The Implications of not proceeding as planned This area has long been identified as a weakness in the current road network that needs to be addressed with some urgency. Existing transport deficiencies increase or remain unaddressed undermining Auckland s economic potential. Delaying or staging this project will only exacerbate the issues described above. This project has yet to adopt a preferred option but a business case process is underway to identify an optimal fit for purpose solution not proceeding as planned would weaken the collaborative transport 16 East West Connections is a joint project with NZTA. The figure above represents the planned Auckland Transport component of the project. 42

47 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy preferred option which includes a package of measures for public transport, walking and cycling, is currently being progressed. NZTA would fund the major elements, once agreed, while Auckland Council would fund the public transport, cycling and walking components of this project. This is a priority project. planning approach and integrated outcomes sought for this project. Project Issues addressed Anticipated timing Estimated cost City Centre Bus Improvements Growth, demographic change, $107million Projects include the Wynyard Bus Interchange, Learning Quarter Interchange and Downtown Interchange and bus priority improvements along Fanshawe and Wellesley Street corridors. service level expectations, sustainability, resilience Project benefits and implications Benefits of progressing: Improved public transport accessibility to major growth area and key employment area. Improved network efficiencies by enabling new public transport network and providing improved turn-around area for isthmus buses. Promoting mode change from private vehicles through service improvements. Improved urban outcomes through better designed facilities supporting the City Centre Master Plan. Options The City Centre Future Access Study considered a number of city centre access options and concluded that the CRL with surface bus improvements provided the best multimodal solution for city centre access. Implications of alternatives Capacity constraints for buses in the city centre and poor quality passenger facilities in some areas. Delaying this project will only exacerbate capacity constraints. Higher mode share of private vehicles and associated congestion and greenhouse gas emissions. Project Issues addressed Anticipated timing Estimated cost Mill Road (southern alignment) Growth, service level $676 million Continuation of the upgrade of the Mill Road corridor to support residential and employment growth. The southern alignment extends from Popes Road vicinity to SH1 at Drury. expectations Project benefits and implications Benefits of progressing: Enabling and supporting growth in southern areas (subject to timing of growth). Increase in travel choice. Improved network resilience. Options The 2003 Southern Sector Strategic Transport Study recommended Mill Road corridor in conjunction with widening the southern motorway. The same study recommended against an alternative Weymouth Karaka Link. Concept alignment options are currently being investigated in combination with the various growth scenarios for southern Auckland. This corridor will be important Implications of alternatives Existing inefficiencies and lack of travel choice become exacerbated over time as growth occurs. Growth may be constrained. Implementation of this corridor will be subject to growth forecasts for the local area. Resilience of network (SH1) is undermined. 43

48 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy for access to the greenfield areas of Takanini, Opaheke and Drury. As well as decisions to be made on route alignment there are still options to consider regarding how this proposal integrates with the local road and public transport network. Timing is still to be confirmed and will be linked to growth with this project likely to be longer term, with route protection an early priority. Project Issues addressed Anticipated timing Estimated cost North-western busway 17 A busway running along the SH16 motorway corridor that will enable frequent, high-speed, high-capacity and high-quality public transport services from the northwest growth area to the city centre (providing rapid transit to a different catchment to that served by the western railway line). Growth, demographic change, service level expectations, sustainability $48 million first decade Route protection, stations/interchanges at Westgate and Te Atatu $57 million second decade Construction of busway Project benefits and implications Benefits of progressing Improved transport choices for people in north-west Auckland. Increased capacity along SH16 corridor. Supporting growth in broader north-west Auckland and especially the success of Westgate/Massey North emerging metro centre. Enabling improved public transport efficiencies for whole north-west bus network. Options Implications of alternatives Options to deliver the busway in phases Existing inefficiencies become exacerbated over time as growth occurs. over time are being considered as part of the project s Strategic Case. Options Growth in north-west Auckland could be constrained due to significantly constrained travel choices for people travelling to central Auckland. include interim motorway shoulder upgrades, and location of an interim station to be followed by a full dedicated busway. Our options are focused on efficiencies from aligning with NZTA s SH16 upgrades and progressively delivering the most critical components of Auckland Transport s New Network bus services. This project is a high priority project and links to growth in the north-west. Timing of busway should be linked to growth forecasts in the north-west and lack of existing transport choice. Project Issues addressed Anticipated timing Estimated cost SMART (Airport Rail Link) 18 Will investigate improvements to roads, public transport, and cycling in the vicinity of the Airport. In the longer term it also looks at dedicated rail to the airport. Growth, demographic change, service level expectations, sustainability, resilience $34 million first decade Investigation phase / route protection $667 million second decade (Onehunga to Māngere) $2.569 billion third 17 The North-western busway would be a joint project with NZTA. The figure above represents the planned Auckland Transport component of the project. 18 SMART is part of the Auckland Plan Transport Network package. 44

49 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Project benefits and implications decade (Māngere to Airport) Benefits of progressing Direct rapid transit connection to airport and peripheral commercial/industrial areas. Improved transport choices for people in south-west Auckland. Reduced congestion on airport road links. Supporting growth in broader south-west and providing economic benefits to the region as a whole. Enabling improved public transport efficiencies for whole rapid transit network. Options This project is investigating the provision of rapid transit to the Airport. The aims of the project are to provide additional capacity and transport choice to the Airport and surrounding employment zone. Additionally any new link would serve residential areas along the chosen alignment. Phase 1 of the project investigated a range of potential rail alignments between Onehunga and the Airport. Further analysis is underway to investigate potential Light Rail options. A final decision on the mode and alignment is yet to be made. Implications of alternatives Transport choices to airport and south-west Auckland would continue to be limited. Airport road links become increasingly congested, leading to longer and less reliable travel times. Growth in south Auckland is constrained and employment areas adjacent to airport remain car dependent. Peak time bus network constrained and inefficient to airport. Implications of heavy versus Light Rail will need to be investigated. Project Issues addressed Anticipated timing Estimated cost Penlink 19 A proposed alternative route between Redvale and Whangaparaoa in the north of Auckland. Project benefits and implications Growth, service level expectations, travel choice, resilience Benefits of progressing Improves travel times and choice in the Whangaparaoa and Hibiscus Coast highway area. Improves network performance and resilience. Facilitates economic activity (Silverdale and Dairy Flat) $556 million second and third decades Options Extensive investigations of alternative options for alleviating traffic congestion on Whangaparaoa Peninsula have been undertaken over the past 15 years. Alternatives analysed include do nothing, a crossing over Weiti River, public transport improvements (bus and ferry), widening of Whangaparaoa Road and widening of Hibiscus Coast Highway. Implications of alternatives Timing of project linked to timing of growth in area. Continuing congestion for all modes with unreliable travel times. Continuing lack of transport resilience. Further development in Whangaparaoa not supported by efficient roading network. May constrain economic activity in Silverdale and Dairy Flat. Road safety further compromised. 19 Penlink is part of the Auckland Plan Transport Network package. 45

50 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Major projects being implemented Project Issues addressed Anticipated timing Estimated cost NorSGA North-west transformation Growth $68 million Upgrade of the Hobsonville Road corridor to accommodate a quality transit network of buses, upgraded intersections, wider footpaths and cycleways to support new developments. Initiatives at Massey North/Westgate are also included. Project benefits and implications Benefits of progressing Enables growth in an emerging metropolitan centre and surrounding growth area. Maximises existing investment in other infrastructure networks (e.g. community facilities). Supports more efficient movement of freight between the north and west. Options Auckland Transport s obligations in the Northwest Transformation area are related to preexisting RMA plan changes and linked to legacy infrastructure funding and works development agreements. Implications of alternatives Desired growth and urban form in the NorSGA area not supported by transport initiatives and travel choices, increasing congestion on the northwest motorway. Due to the above agreements, the timing of much of the investment is fixed and/or driven by growth in the north-west and existing developer timeframes. The north-west is a priority area for growth and these projects are required to serve growth which is already happening in this area. This work is being implemented, there are no options remaining for the council to consider. Transport initiatives to serve growth in the Future Urban areas in the north-west are still being explored and are not part of this project; they are covered in Section 6.8. Project Issues addressed Anticipated timing Estimated cost AMETI A package of transport improvements in the Glen Innes - Panmure - Pakuranga - Botany corridor, that aim to provide a high quality strategic transport link between the eastern suburbs and unlock the economic potential of the area by improving strategic transport links in the area. The main projects are: Growth, service level expectations, resilience $552 million first decade $545 million second decade an urban busway between Panmure, Pakuranga and Botany town centres new stations at Panmure and Pakuranga town centres roading improvements at traffic bottlenecks, including a new north-south Panmure road and replacing the Panmure roundabout with traffic lights. 46

51 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Project benefits and implications Benefits of progressing: Improved efficiencies and better transport choices available for a large part of Auckland currently very dependent on private vehicles. Growth is enabled and supported in broader Tāmaki area and in the south-east of Auckland. Removal of key pinch-points will ease congestion and improve efficiencies. Options A large number of regional and local options have been assessed in various studies since the early 2000s when AMETI evolved out of the Eastern Transport Corridor Project. The programme is staged and options continue to be assessed as Scheme Assessment Reports, planning documentation and designs are being progressively developed. Significant portions of this project have already been implemented including Panmure Station and Interchange and the AMETI link road. Further elements of AMETI including changes to the Panmure roundabout and the Pakuranga busway are at advanced design stages. This is a regionally significant project with a high level of prioritisation from Council. It is an integrated package of measures and at this stage in implementation to maximise the benefits of individual components the full range of the planned measures needs to be implemented. Implications of not proceeding with project Existing poor transport choice and network inefficiencies become exacerbated as growth occurs. Undermines resilience of network. Undermines road safety Increased congestion and lack of transport choice. Failure to proceed with the remaining scheme elements of the project would significantly reduce the benefits of the sections of the project that has already been implemented Project Issues addressed Anticipated timing Estimated cost Mill Road (northern alignment) Growth, network resilience, $133 million An upgrade of the Redoubt-Mill Road corridor to support residential and employment growth. The northern alignment extends from SH1 Redoubt Road to Popes Road vicinity. service level expectations, road safety, travel choice and reliability Project benefits and implications Benefits of progressing Improved network efficiencies, including for buses. Improved safety. Enabling and supporting growth in southern areas. Options Legacy councils prepared four previous studies that relate to the corridor. These earlier studies identified scheme options to address the increasing pressures on the existing and adjacent routes, particularly due to the planned growth in Flat Bush, Takanini and Papakura. A range of route alignment options has been investigated over a number of years to align with future growth in the area. Prior to this the 2003 Southern Sector Strategic Transport Study recommended Mill Road corridor in conjunction with widening the southern motorway. The same study recommended against an alternative Implications of not proceeding Existing inefficiencies and significant safety problems become exacerbated over time as growth occurs. The do nothing alternative will put undue pressure on the southern motorway, will not cater adequately for expected growth in the area and continue to limit transport choice. 47

52 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Weymouth Karaka Link. Route alignment alternatives have been considered and a preferred alignment has been selected. This project is now moving towards a detailed design stage, and a Notice of Requirement lodged with Council. Subject to approval and consents this project will be implemented post Transport expenditure capital and operational The charts below show the projected capital and operational expenditure associated with the management of Auckland Council transport infrastructure assets to Roads and footpaths capex and opex 10 years Millions Growth Level of service Renewal Operating costs FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Roads and footpaths capex and opex 30 years Millions 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Growth Level of service Renewal Operating costs 0 FY16 FY20 FY21 FY25 FY26 30 FY31 35 FY36 40 FY

53 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Public transport capex and opex 10 years Millions 1,200 1, Growth Level of service Renewal Operating costs FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Public transport capex and opex 30 years Millions 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 FY16 FY20 FY21 FY25 FY26 30 FY31 35 FY36 40 FY41 45 Growth Level of service Renewal Operating costs 6.3 Wastewater projected expenditure and major projects The major wastewater projects identified provide additional capacity to meet current and future demand as well as replacing aging infrastructure, providing resilience of the services, and delivering environmental benefits. Today Watercare manages four metropolitan schemes with wastewater treatment plants at Rosedale, Māngere, Army Bay and Pukekohe; and 14 non-metropolitan schemes servicing around 65,000 people in the rural townships of Franklin and Rodney. The non-metropolitan schemes are based on individual local treatment plants servicing a local community. Some of these schemes may be rationalised over time as they approach capacity and are no longer able to fulfil their consent requirements. A number of interrelated projects will provide additional wastewater capacity within Auckland s existing urban areas, enabling residential and business growth as part of a quality compact city approach to accommodating growth. The first of these projects is the Central Interceptor; a tunnel stretching 13 kilometres from Māngere Wastewater Treatment Plant to Western Springs, which will replace an aging system and provide additional capacity in central, southern and eastern Auckland. The project will also deliver environmental benefits by reducing the volume of wet weather overflows into Auckland s harbours by 80 per cent. 49

54 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Once this key project is completed then the Northern Interceptor project will, in turn, be able to divert flows that are currently conveyed to the Māngere Wastewater Treatment Plant north to the Rosedale Wastewater Treatment Plant. This project will consequently provide additional capacity in Auckland s north and west, including the NorSGA growth area. Through reducing the load on the Māngere Wastewater Treatment Plant, this project will also make available further capacity in central, eastern and southern areas of the city. There are also secondary stages to both the Central and Northern Interceptor projects identified. These projects will maximise the investment made in the initial interceptor projects through replacing related collector and link sewers. Our existing wastewater treatment plants at Māngere and Rosedale have sufficient capacity to meet demand up to Several upgrades, which are planned to increase capacity, will meet anticipated growth in the existing Auckland urban area over the 30 year period of the strategy. These projects include the upgrading of the existing wastewater treatment plants and processes (e.g. Māngere Wastewater Treatment Plant Biological Nutrient Removal Project). The planned projects will address multiple issues, increasing capacity, resilience, levels of service and environmental outcomes. In a similar way the Pukekohe Wastewater Treatment Plant upgrade will deliver benefits to its southern catchment, an area where significant growth is planned. When planning new projects Watercare has a strategy to build redundancy into the treatment and reticulation systems to ensure that critical systems can be shut down for maintenance without jeopardising services to customers. This approach is reflected in the planning of key projects in this strategy. There is an ongoing programme to replace and upgrade elements across the network. This renewal work is also a key element of the strategy, ensuring that existing levels of service are maintained or increased. Additional capacity not provided for as part of current projects will be required to meet projected growth in the greenfield areas identified for urban development within the 30 year period of the strategy (see section 6.8). Investigations to understand the options for meeting these additional wastewater treatment needs are currently being undertaken. The major projects identified are listed in the tables below. The principal options for these major projects are to: progress with the projects on the timeframe listed; progress with the project on a different timeframe; or optimise delivery of the project through design, route selection or staging. Major projects at the planning stage Project Issues addressed Anticipated timing Estimated cost Central Interceptor Spine Growth, sustainability, $966 million A new wastewater conveyance and storage resilience, asset condition pipeline to service central Auckland as well (construction starting 2017) as the isthmus, east and south. Project benefits and implications Benefits of progressing Replacing aging infrastructure. Providing extra capacity for growth in central Auckland as well as the isthmus, east and south. Improving levels of service by reducing wet weather overflows into the harbours by 80 per cent. Growth enabled in central Auckland. Options Implications of alternatives In deciding on the Central Interceptor, options Risk of failure by aging infrastructure. considered included duplication of the existing pipe networks and construction of new pipes to Reduced capacity for growth in central Auckland as well as the isthmus, new treatment plants in the north-east, northwest or south-east areas. This project is now Reduced levels of service, wet weather overflows not reduced. east and south. consented and in detailed design phase. An option to slow down the project remains, this Restricted growth in central Auckland. could be by slowing down the whole project or If critical elements of the network are delivered and the other phases are delivering critical elements first and then delayed then the above implications will apply to the areas affected by the deferring the remaining phases. deferred stages only. Project Issues addressed Anticipated timing Estimated cost Central Interceptor (optimisation works) Growth, sustainability, $299 million 50

55 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Additional works to maximise investment in Central Interceptor Spine through collector and link sewers. This project is dependent on the completion of the Central Interceptor Spine (see above). Project benefits and implications Benefits of progressing resilience, asset condition (planning to completion) Collector and link sewers to maximise the investment in the Central Interceptor Spine. Replacing aged infrastructure. Providing extra capacity for growth in central Auckland as well as the isthmus, east and south. Improving levels of service by reducing wet weather overflows. Growth in central Auckland. Options Implications of alternatives Once the basic Central Interceptor Spine option (above) was confirmed further options were considered around optimising the collection of flows from specific overflow points. Options and staging of these potential solutions are being considered in the current phase of the project. Options include slowing down the project through staging specific subcatchments around collector sewers. Undermines investment in the Central interceptor Spine. Risk of failure by aging infrastructure. Reduced capacity for growth in central Auckland as well as the isthmus, east and south. Reduced levels of service by reducing wet weather overflows. Restricted growth in central Auckland. Project Issues addressed Anticipated timing Estimated cost Northern Interceptor Stage 1 Growth, service level $135 million expectations, sustainability, (currently in planning A new wastewater pipeline which will divert and consenting phase) resilience, asset condition flows from Māngere Wastewater Treatment Plant catchment to Rosedale Wastewater Treatment Plant. Project benefits and implications Benefits of progressing Provides capacity for growth in northern and western Auckland by diverting flows from the Māngere Wastewater Treatment Plant catchment to the Rosedale Wastewater Treatment Plant catchment. Replacing aged infrastructure. Providing extra capacity for growth in central Auckland, isthmus, east and south by reducing load on Māngere Wastewater Treatment Plant. Improving levels of service by reducing wet weather overflows. Options Implications of not meeting timeframes For the pipeline between Hobsonville and Rosedale different options around route, pipe type and methodology were considered to arrive at a preferred option. This project is currently in preliminary design phase. Completion has been timed to enable additional capacity to be released in the north-west. Reduced capacity for growth in northern and western Auckland including in Special Housing Areas. Risk of failure by aging infrastructure. Reduced capacity for growth in central Auckland, isthmus, east and south. Reduced levels of service by reducing wet weather overflows. 51

56 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Project Issues addressed Anticipated timing Estimated cost Northern Interceptor Stage 2 Diverts wastewater flows from Swanson, Massey and Glen Eden catchments to the Rosedale Wastewater Treatment Plant. This project is dependent on delivery of the Northern Interceptor Stage 1 (see above). Growth (planning to completion) $102 million Project benefits and implications Benefits of progressing Diverts flows from Swanson, Massey and Glen Eden to the Rosedale Wastewater Treatment Plant. Increases the capacity of the Māngere Wastewater Treatment Plant to support growth in central Auckland. If the project is speeded up then wastewater services are provided faster for the western areas (Redhills, Whenuapai, Kumeu, Huapai and Riverhead), this allows for more significant capacity at an earlier date including where there are Special Housing Areas. Options Implications of not meeting timeframes For the pipeline between Concourse (Te Atatu) and Hobsonville, designs differing around route, pipe type and methodology were developed and assessed to arrive at a preferred option. This project is currently in design stage but has not yet been approved for construction. Options remain about timing and route selection which may enable earlier release of capacity in the north-west. Flows from Swanson, Massey and Glen Eden continue to Māngere Wastewater Treatment Plant. Reduced capacity of the Māngere Wastewater Treatment Plant to support growth in central Auckland. Undermines investment in upgrades to the Rosedale Wastewater Treatment Plant. Risks identified in the Northern Interceptor Stage 1 are exacerbated. Project Issues addressed Anticipated timing Estimated cost Waterfront Interceptor Growth, service level $25 million first expectations, sustainability, (planning and decade consenting) resilience, asset condition 3.5 km conveyance and storage tunnel from Ponsonby to St Mary s Bay. This project is dependent on completion of the Central Interceptor Spine (see above). Project benefits and implications Benefits of progressing (design and construction) $325 million second decade Rehabilitating aged infrastructure. Capacity for growth in central Auckland and western isthmus. Reduction in wet weather discharges. Options Implications of alternatives This project is generally considered Stage 2 of the Central Interceptor project. Options considered were similar to the Central Interceptor, but also include localised storage, treatment and widespread separation projects. Detailed planning and concept design will optimise delivery of the Waterfront Interceptor and collector sewers. Risk of failure from aged infrastructure. Reduced capacity for growth in central Auckland and western isthmus. Increase in wet weather discharges. Increase in frequency of combined sewer overflows in wet weather. Reduced environmental improvement. 52

57 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Project Issues addressed Anticipated timing Estimated cost Māngere Wastewater Treatment Plant $75 million solids stream upgrade Provides additional solids treatment capacity to cater for increased population growth. Project benefits and implications Benefits of progressing Growth, service level expectations, sustainability, resilience, asset condition (planning to completion) Will cater for growth in the central isthmus, south and east areas serviced by the Māngere Wastewater Treatment Plant. Replacement of aging assets. Continue to meet resource consent requirements. Options Implications of alternatives Generally the options for this project are around the delivery as an integrated programme or through upgrading each process unit individually optimising delivery through staging. Reduced growth in the central isthmus, south and east areas serviced by the Māngere Wastewater Treatment Plant. Risk of failure from aged infrastructure. Failure to meet resource consent requirements. Project Issues addressed Anticipated timing Estimated cost Rosedale Wastewater Treatment Plant Growth, service level $48 million upgrade expectations, asset condition Provision of additional treatment capacity to cater for population growth on the North Shore and diversion of flow and load from Māngere Wastewater Treatment Plant catchment through Northern Interceptor. Project benefits and implications Benefits of progressing (planning to completion) Increased treatment capacity to cater for growth population growth in NorSGA and the North Shore. Diverts flow and load from the Māngere Wastewater Treatment Plant which improves capacity for growth in this catchment. Options Implications of alternatives Options considered for this project generally focused on specific process units within the plant to achieve compliance with consent conditions while allowing for growth. Various permutations of process units to meet the required conditions were considered. Options remaining for this project include optimisation of delivery through staging of upgrades. Reduced growth in NorSGA and the North Shore. Reduced growth in the Māngere Waste Water Treatment Plant catchment area. Project Issues addressed Anticipated timing Estimated cost Pukekohe Trunk Sewer and Wastewater $106 million Treatment Plant upgrade Additional trunk network and treatment capacity to cater for population growth in the Pukekohe Wastewater Treatment Plant catchment. Growth, service level expectations, resilience, asset condition (planning to completion) 53

58 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Project benefits and implications Benefits of progressing Capacity for growth in the areas serviced by the Pukekohe Wastewater Treatment Plant catchment (Pukekohe, Paerata, Tuakau and Pokeno). Improved levels of service. Options Implications of not proceeding Options considered for the trunk network upgrades focused on a pumped or gravity solution and permutations of pipe size, route and site location. A preferred solution has been progressed to preliminary design and consenting stage. This project is a high priority. Reliance on existing and aging water supply infrastructure. Inadequate water supply capacity constrains ability to meet increased population and additional development areas. If this project is deferred there is a risk that non-compliance with consent conditions will mean the Waikato Regional Council will take abatement action. Project Issues addressed Anticipated timing Estimated cost Pukekohe Wastewater Treatment Plant $95 million capacity upgrade Provides additional trunk network and treatment capacity to cater for population growth in the Pukekohe Wastewater Treatment Plant catchment. Project benefits and implications Benefits of progressing Growth, service level expectations, resilience, asset condition (currently at pre planning) Capacity for growth in the areas serviced by the Pukekohe Wastewater Treatment Plant catchment. Improved levels of service. Options Implications of alternatives Project options generally focused on assessing specific process units within the plant to achieve compliance with consent conditions while allowing for growth. Various permutations of process units to meet the required conditions were considered. Options remaining for this project include optimisation of delivery through staging of upgrades. Depending on the option taken there will be reduced capacity for growth in the Pukekohe Waste Water Treatment Plant catchment. Reduced levels of service. Major projects being implemented Project Issues addressed Anticipated timing Estimated cost Māngere Wastewater Treatment Plant Biological Nutrient Removal (BNR) Provides additional biological nutrient removal to comply with resource consent conditions. Growth, service level expectations, sustainability, resilience, asset condition (construction) $98 million Project benefits and implications Benefits of progressing Will cater for growth in the central isthmus, south and east areas serviced by the Māngere Wastewater Treatment Plant. Replacement of aging assets. 54

59 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Process improvements and security. Options Implications of alternatives Options explored in the initial stage of this project generally focused on permutations around the reactor/clarifier setups to meet nutrient consent conditions while allowing for growth. Currently, stage 1 is under construction. At this stage of the project options are limited. However, Stage 2 of the project could be deferred or slowed down through phasing. Reduced or deferred growth in the central isthmus, south and east areas serviced by the Māngere Waste Water Treatment Plant. Risk of failure from aged infrastructure. Less efficient processing and reduced security. Project Issues addressed Anticipated timing Estimated cost Puketutu Island Growth $59 million Restoration of Puketutu Island through biosolids deposition. Project benefits and implications Benefits of progressing (additional capacity) $60 million Renewal of the existing on-site placement capacity. Capacity for growth in areas within the Māngere Wastewater Treatment Plant catchment. Operational and financial benefits. Options This project is consented and underway, therefore there are no realistic alternatives to proceeding with the project. Filling operations have commenced. Wastewater expenditure capital and operational The charts below show the projected capital and operational expenditure associated with the management of Auckland Council wastewater infrastructure assets to Millions Wastewater treatment and disposal capex and opex 10 years Growth Level of service Renewal Operating costs 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 55

60 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Wastewater treatment and disposal capex and opex 30 years Millions 5,000 4,000 3,000 2,000 1,000 Growth Level of service Renewal Operating costs 0 FY16 FY20 FY21 FY25 FY26 30 FY31 35 FY36 40 FY Water projected expenditure and major projects The major water supply projects are focused on addressing three issues of network resilience, growth and replacement of aging infrastructure; with many projects delivering multiple outcomes. Currently, Auckland s water is sourced through dams in the Hunuas and Waitākeres as well as the Waikato River and an aquifer at Onehunga. A series of projects is planned to provide network resilience and ensure security of Auckland s water supply. In the south the projects include a second Waikato water supply treatment plant and pipeline, additional reservoirs (e.g. Runciman Road) to enhance storage capacity that will insulate the network against supply failures, and the duplication of pipelines. This network will service the south and the city centre. A similar network approach will ensure water supply from the Waitākere dams to the north and west, linking to the city centre, through renewed and upgraded water treatment plants, duplication of watermains and increased reservoir capacity. A second water treatment plant and pipeline from the Waikato River is an important component of this planning. The Waikato River provides a source that is an alternative to Auckland s dams, with ability to provide water when other sources may be compromised through outages, contamination or drought. This reflects the lessons learnt from previous droughts that Auckland has experienced and a need to be prepared for climate change scenarios where such events may occur with more frequency in the future. Additional water from the Waikato River would also provide a substantial addition to Auckland s water supply and would be able to service growth as it occurs. This would complement the greater capacity delivered through network projects such as the watermain duplications. In the past, Auckland has had some distinct growth phases where the city expanded into rural areas. An example of this would be the North Shore expansion following the opening of the Harbour Bridge in However, much of the city s infrastructure is now aging and needs to be replaced. There is an on-going programme to replace and upgrade elements across the network. This renewal work is a key element of the strategy, ensuring that existing levels of service are maintained or increased. When planning new projects Watercare has a strategy to build redundancy into the treatment and reticulation systems to ensure that critical systems can be shut down for maintenance without jeopardising services to customers. This approach is reflected in the planning of key projects in this strategy. The major projects identified are listed in the tables below. The principal options for these major projects are to: progress with the projects on the timeframe listed; progress with the project on a different timeframe; or optimise delivery of the project through staging or construction methodology. 56

61 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Major projects at the planning stage Project Issues addressed Anticipated timing Estimated cost Hunua No.4 Watermain extension Growth, service level $66m The Hunua Watermain will be extended through to the Khyber reservoirs in the central city. expectations, resilience (currently at planning and consenting) Project benefits and implications Benefits of progressing Ensuring regional water supply capacity to meet growth. Network resilience, risk reduction project to remove the reliance on existing pipes. Options Implications of not proceeding Options considered related to permutations of pipe diameter, route and connection points to the existing network. The project is now at preliminary design and consenting stage. Options remain around construction methodology. Reliance on existing and aging water supply infrastructure. Inadequate water supply capacity constrains ability to meet increased population and additional development areas. Project Issues addressed Anticipated timing Estimated cost North Harbour Watermain duplication Growth, service level $196 million Duplicates the North Harbour Watermain expectations, resilience, asset (currently at planning from a new Titirangi No 3 Reservoir to the Albany Reservoir. condition and consenting) Project benefits and implications Benefits of progressing Ensuring water supply capacity to meet growth on the North Shore and Rodney. Creating network resilience. Options Implications of not proceeding This project is a duplication project to allow Reliance on existing and aging water supply infrastructure for the North for growth. To arrive at a preferred option Shore and Rodney areas is unlikely to meet future needs. alternatives related to permutations of pipe diameter, route and connection points to Inadequate water supply capacity constrains ability to meet increased the existing network were considered. This population and additional development areas in the North Shore and project is at the preliminary design stage. Rodney. Options remaining for this project include optimisation of delivery through staging of upgrades. Project Issues addressed Anticipated timing Estimated cost Runciman Road Reservoir Growth, service level $47 million The provision of additional storage reservoir capacity to maintain security of supply standards for increasing water demand arising from growth. expectations, resilience (currently at planning and consenting) Project benefits and implications Benefits of progressing Security of supply (region wide). This project addresses security of supply issues on the Waikato 1 transmission watermain, and is part of a longer term strategy that includes plant upgrades, transmission pipe duplication, and additional storage construction. Options Options considered were generally around reservoir location. This project is at the preliminary design stage and consenting is proceeding for the preferred location. If consent is not approved for this site an alternative location will be investigated. Implications of alternatives Reduced ability to meet demand during network outages. If the project is stopped then this has implications on the security of the water supply. 57

62 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Project Issues addressed Anticipated timing Estimated cost Runciman Road Reservoir No.2 Growth, resilience $43 million This project is generally an expansion of the Runciman Road Reservoir project (see description above). Project benefits and implications Benefits of progressing Ensuring regional water supply capacity to meet growth. Expanding plant capacity in line with growth. Increasing regional resiliency. Options This project follows the Runciman Road Reservoir project above, there are still options over the preferred location, timing and construction works. Implications of alternatives Reduced ability to meet demand during network outages. If the project is stopped then this has implications on the security of the water supply. Potential to realise savings from the appraisal of alternative sites. Project Issues addressed Anticipated timing Estimated cost Waikato Water Treatment Plant Growth, service level $55 million expansion Expansion of the capacity of the existing treatment plant to cater for additional water demand arising from growth. expectations, resilience (currently at design) Project benefits and implications Benefits of progressing Ensuring regional water supply capacity to meet demand. Wider network resilience, particularly in events where other sources may be compromised (e.g. droughts from climate change, source contamination, treatment plant outages). Options Options assessed included alternative water sources such as dams, wastewater reuse and desalination plants capable of delivering the required volumes. Implications of alternatives Potential for inadequate water supply capacity to meet regional growth. Lack of resilience for water supply to natural events and system outages (e.g. droughts from climate change). Project Issues addressed Anticipated timing Estimated cost Waikato Water Treatment Plant No.2 Growth, service level $400 million and Watermain The provision of additional water abstraction, treatment and conveyance capacity from the Waikato river to cater for increased water demand arising from growth. expectations, resilience Project benefits and implications Benefits of progressing Ensuring regional water supply capacity to meet demand. Wider network resilience, particularly in events where other sources may be compromised (e.g. droughts from climate change, source contamination, treatment plant outages). Options As for the Waikato Treatment Plant expansion above. An option remains to optimise the delivery of infrastructure through staging of construction works. Implications of alternatives Potential for inadequate water supply capacity to meet regional growth. Lack of resilience for water supply to natural events and system outages (e.g. droughts from climate change). Full efficacy of the project will not be realised for a longer period of time. 58

63 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Project Issues addressed Anticipated timing Estimated cost Waikato Water Treatment Plant No.2 Growth, resilience $316 million capacity upgrade Expansion of the capacity of the new Waikato plant to cater for additional water demand arising from growth. Project benefits and implications Benefits of progressing Ensuring regional water supply capacity to meet growth. Expanding plant capacity in line with growth. Options As with the Waikato Water Treatment Plant, above, an option remains to optimise the delivery of infrastructure through staging of construction works. Implications of alternatives Compromises ability to provide a regional water supply capacity to meet growth. Inability to meet demand arising from growth. Project Issues addressed Anticipated timing Estimated cost Hunua No.1 and Huia No.1 watermains Service level expectations, $90 million The replacement of critical watermains which are nearing the end of their design lives. resilience, asset condition Project benefits and implications Benefits of progressing Nearing end of asset life, renewal required to maintain supply. Options These projects are replacement of existing pipes. Options generally are around the permutations of route, pipe diameter and connection point. Options also include optimisation of delivery through staging of upgrades. Implications of alternatives Loss of supply if asset fails. Full efficacy of the works will not be realised for a longer period of time if work is deferred. Project Issues addressed Anticipated timing Estimated cost Huia Water Treatment Plant upgrade Growth, service level $241 million The replacement of the Huia Water Treatment Plant which is reaching the end of its design life and the provision of improved treatment processes which will maintain supply and improve levels of service. expectation, resilience, sustainability, asset condition (currently at planning and consenting) Project benefits and implications Benefits of progressing Ensuring water supply continues to meet public health standards. Nearing end of asset life. Renewal will offer opportunity to improve treatment processes and capability to meet tighter standards. Options This project is replacement of an existing asset. In arriving at a preferred solution, options generally were around site locations for a new plant. There is an option remaining to optimise the delivery of the infrastructure through staging of construction works. Implications of not proceeding Comprises ability to continue meeting public health standards. Lack of resilience with higher level of plant outage leading to loss of supply. 59

64 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Project Issues addressed Anticipated timing Estimated cost Huia No.2 Watermain replacement Service level expectations, $110 million The replacement of a critical watermain which is nearing the end of its design life. resilience, asset condition Project benefits and implications Benefits of progressing Replacing aging infrastructure to provide security of supply and continuing levels of service. Options In deciding on the preferred solution, options generally around the permutations of route, pipe diameter and connection point were considered. There is an option remaining to optimise the delivery of the infrastructure through staging of construction works. Implications of not proceeding Potential for failure which would compromise security of supply and levels of service. Project Issues addressed Anticipated timing Estimated cost Waitākere Water Supply Treatment Service level expectations, $123 million upgrade The replacement of the Waitākere Water Treatment Plant when it reaches the end of its design life. sustainability, resilience, asset condition Project benefits and implications Benefits of progressing Ensuring water supply continues to meet public health standards. Nearing end of asset life. Renewal will offer opportunity to improve treatment process and capability to meet tighter standards. Options As a replacement of an existing asset, options around site locations for a new plant, and process unit improvements within the existing site were considered to arrive at a preferred solution. There is an option remaining to optimise the delivery of the infrastructure through staging of construction works. Implications of alternatives Comprises ability to continue meeting public health standards. Lack of resilience with higher level of plant outage leading to loss of supply. Project Issues addressed Anticipated timing Estimated cost Hunua No.4 Watermain extension Growth, service level $66 million The Hunua Watermain will be extended through to the Khyber reservoirs in the central city. expectations, resilience Project benefits and implications Benefits of progressing Ensuring regional water supply capacity to meet growth. Network resilience. Options For this project, options remain around the route alternatives. There are also options around the construction methodology particularly to minimise community disruption. Implications of alternatives Reliance on existing and aging water supply infrastructure. Inadequate water supply capacity constrains ability to meet increased population and additional development areas. 60

65 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Major projects being implemented Project Issues addressed Anticipated timing Estimated cost Hunua No.4 Watermain Growth, service level $80 million The watermain will run for 28 km from Redoubt North Reservoir in Manukau to Epsom, connecting to the existing local water supply network along the way. This project is near completion. expectations, resilience (currently under construction) Project benefits and implications Benefits of progressing Ensuring regional water supply capacity to meet demand (existing and additional demand from growth). Network resilience. Water expenditure capital and operational The charts below show the projected capital and operational expenditure associated with the management of Auckland Council water supply infrastructure assets to Water supply capex and opex 10 years Millions Growth Level of service Renewal Operating costs 50 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 61

66 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Water supply capex and opex 30 years Millions 4,000 3,500 3,000 2,500 2,000 1,500 1,000 Growth Level of service Renewal Operating costs FY16 FY20 FY21 FY25 FY26 30 FY31 35 FY36 40 FY Stormwater and flood control - projected expenditure and major projects Stormwater and flood control projects address issues at a catchment level. They aim to deliver multiple outcomes across environmental, social and economic outcomes with design moving towards greener infrastructure solutions using innovative water sensitive design. The stormwater system is organised into 235 catchments and 10 consolidated receiving environments. Stormwater projects are primarily driven by a focus on improving customer and environmental levels of service, supporting population growth, ensuring the sustainability and resilience of our stormwater system and future proofing for future generations. Major projects address these drivers and have been developed based on the best approach in the context of specific catchments and receiving environments. Typically, the major capital projects for stormwater and flood control are a scale below those identified for transport, water and wastewater; ranging between $20-30 million. Investment is aligned within programmes for asset renewal to ensure levels of service are maintained for existing customers, supporting growth, reducing existing flooding, catchment planning and environmental protection. The major projects identified as part of this strategy, focus on the first decade. In existing urban areas, the projects align with spatial priorities and address flooding and water quality issues, particularly in central Auckland which has aging infrastructure. In the south, major stormwater projects in the Takanini/Manurewa area remove constraints on development of greenfield areas that have been zoned for urban release. Beyond the first decade, projects will be funded based on growth in the programme that is in line with the trend over the first decade. This acknowledges that stormwater and flood control projects address specific catchments and are able to be planned within 10 year periods with some flexibility. Priorities will be identified taking into account spatial priorities, including SHAs, and land release sequencing and timing as part of the Future Urban Land Supply Strategy currently under development. The major projects identified are listed in the tables below. The principal options for these major projects are to: progress with the projects on the timeframe listed; progress with the project on a different timeframe; not do the project; or change the scope of the project. 62

67 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Major projects at the planning stage Project Issues addressed Anticipated timing Estimated cost Freeman s Bay stormwater upgrades Resilience, condition of $21 million existing asset, level of Frequent surface flooding occurs in Daldy service Street, Fanshawe Street, parts of Victoria Street and Victoria Park. Two major combined sewer overflows are also connected to the existing pipeline and the route needs to integrate with the additional Waitematā harbour crossing and separation works planned in Franklin Road and Picton Street. Project benefits and implications Benefits of progressing Reduced surface flooding (Daldy Street, Fanshawe Street, Victoria Street and Victoria Park). Level of service improvements in Fanshawe Street. Eases overflows from existing aging combined sewers and improves harbour water quality. Options The package of stormwater improvements in Freemans Bay could be postponed or not progressed at all. Implications of alternatives We will be in the following situation until the project benefits are fully realised: Continuation of flooding risks in urban area. Continuation of nuisance flooding on Fanshawe Street. Impacts on traffic flows caused by nuisance flooding. Continuation of overflows from combined sewer. Risk of failure from aging infrastructure. This is a collaborative project with NZTA, Auckland Transport and Watercare and therefore achieves multiple transport and environmental outcomes. Major projects being implemented Project Issues addressed Anticipated timing Estimated cost Artillery Tunnel Growth in Takanini, service $22 million level expectations, A one kilometre long tunnel from McLennan resilience, sustainability Park to Pahurehure Inlet to service Takanini growth areas. Project benefits and implications Benefits of progressing Reduced risk of widespread flooding for future residents in the Takanini 2a and 2b areas. Growth facilitated in the Takanini 2a and 2b areas (SHA 63 Takanini Strategic Area). Options This project is underway and the options are limited to slowing down project completion. Implications of alternatives Development will occur in the floodplain, because it is zoned for urban development and new homes will be at risk from flooding. Continuation of widespread flooding in the Takanini 2a and 2b growth areas. Development in Takanini 2a and 2b growth areas will be impeded. 63

68 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Project Issues addressed Anticipated timing Estimated cost Takanini Conveyance Cascades A new open channel incorporating cascading weirs and associated green space to convey the 100 year flood. This is to service Takanini 2a and 2b. Growth, resilience, sustainability $22 million Project benefits and implications Benefits of progressing Reduced risk of widespread flooding for future residents, properties and infrastructure in the Takanini 2a and 2b areas. Growth facilitated in the Takanini 2a and 2b areas (SHA 63 Takanini Strategic Area). Options This project is underway and options are therefore limited to slowing down project completion. This project is required to enable new housing in the Takanini 2a/2b area and deferring the project will delay the construction of new housing. Implications of alternatives Development will occur in the floodplain, because it is zoned for urban development and new homes will be at risk from flooding. Continuation of widespread flooding in the Takanini 2a and 2b growth areas. Development in Takanini 2a and 2b growth areas will be impeded. Project Issues addressed Anticipated timing Estimated cost Ports of Auckland Outfall The design and installation of a 3.3 m diameter stormwater pipe from the south side of Quay Street across Ports of Auckland to the Waitematā Harbour. To replace a pipeline in poor condition that has previously collapsed and remains in service with a temporary repair. Resilience, condition of existing asset $22 million Project benefits and implications Benefits of progressing Replacing aged critical asset infrastructure in poor condition. Mitigates safety risks to the Ports of Auckland assets and operations. Options Implications of alternatives This project could be delayed. However, in Risk of failure from aged infrastructure. doing so there would be major implications for Critical asset failure which impacts on port operations. the operation of the ports, which is a crucial part of Auckland and New Zealand s economic Increased risk of flooding of the railway tracks into Britomart. infrastructure. Project Issues addressed Anticipated timing Estimated cost Oakley Creek Conveyance Upgrading culverts and widening of Oakley Creek through Walmsley Park to convey flood flows enabling intensification and redevelopment of the upper catchment. Project benefits and implications Benefits of progressing Growth, resilience, sustainability, condition of existing asset $30 million Reducing flooding risk in existing residential area. Enabling intensification and redevelopment in a large proportion of the inner west triangle spatial priority area. Environmental enhancement through stream restoration and habitat improvements. Amenity benefits of streamside passive open space. 64

69 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Project benefits and implications Options At this stage of the project, options are limited to slowing down project completion or reducing the positive social and environmental benefits of the project, which include creating open space and healthy waterways and provide relief from flooding. This project is a key enabler for the intensification of a significant area of Housing New Zealand land holdings. Implications of alternatives Continuation of flooding risks in existing urban areas. Constraining intensification and redevelopment in a large proportion of the inner west triangle spatial priority area. Loss of opportunity for environmental enhancement. Loss of opportunity for open space. Stormwater expenditure capital and operational The charts below show the projected capital expenditure associated with the management of Auckland Council stormwater and flood control infrastructure assets to Stormwater and flood control capex and opex 10 years Millions Growth Level of service Renewal Operating costs 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 65

70 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Stormwater and flood control capex and opex 30 years Millions 1,200 1, Growth Level of service Renewal Operating costs 0 FY16 FY20 FY21 FY25 FY26 30 FY31 35 FY36 40 FY Community facilities - projected expenditure and major projects A network of quality, fit for purpose community facilities is essential for building resilient, healthy and vibrant communities. Priorities for new investment will be identified taking into account spatial priorities, including SHAs, within a policy-led response to growth. There are several key challenges facing community facilities infrastructure. There are gaps and duplication of provision resulting in uneven distribution of facilities across Auckland. Decisions will be required on where new facilities should be developed and potentially where underperforming facilities, which are no longer meeting community need, could be divested or repurposed. A significant proportion of the existing network of facilities are old, in poor condition or not fit for purpose and either need to be upgraded or considered for divestment. a growing and diversifying population means the network of community facilities will need greater capacity and flexibility. The full cost of maintaining the existing network is increasing. To ensure ongoing affordability, the council will need to prioritise maintenance on community facilities that are meeting community needs. There is a need to improve the financial sustainability of community facilities. The whole of life operating costs need to be considered as part of early planning of new facilities. Sometimes, greater upfront investment in the building will deliver facilities that are more cost efficient to operate in the long-term. The development of new community facilities requires the availability of suitable land. Community facilities need to be placed on highly visible and accessible locations in order to maximise on-going use. We need to ensure appropriate sites are secured for community facilities without compromising or diminishing open space outcomes. In areas of the city that are growing, forward planning may be required to secure appropriate land for community facilities at the right time. The major projects identified are listed in the tables below. The principal options for these major projects are to: progress with the projects on the timeframe listed; progress with the project on a different timeframe or not do the project. 66

71 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Major projects at the planning stage Project Issues addressed Anticipated timing Estimated cost Flatbush library, community space, pools and leisure Development of new library, multi-use community space and pools and leisure space in the Flatbush area. Project benefits and implications Benefits of progressing Options Caters to demand arising from growth. Implementation of this project aligns with growth in Flatbush which is expected to reach a population of more than 36,000 by If the project is delayed or does not proceed this would effectively decrease council s level of service relating to community facilities. Demand arising from growth, service level expectations Implications of alternatives Under-served population. Library and community multiuse facility Pool and leisure Impact on existing network of facilities. Inequitable access to facilities for population catchment. Library and community multiuse facility - $20 million Pool and leisure $27 million Major projects being implemented Project Issues addressed Anticipated timing Estimated cost Massey Community Centre and library Development of new community centre and library in the Westgate area. Project benefits and implications Benefits of progressing Options Caters to demand arising from growth. Addresses current gap in provision. This project is underway, so there are no alternative options that can be considered. Demand arising from growth, current gaps in provision 2015/16 $15 million Project Issues addressed Anticipated timing Estimated cost Albany Pool Development of new pool adjacent to North Harbour Stadium to provide free-play, learning and fitness opportunities and to complement other pools in the area. Project benefits and implications Benefits of progressing Options Caters to demand arising from growth. Addresses current gap in provision. This project is underway, so there are no alternative options that can be considered. Demand arising from growth, current gaps in provision 2015/16 $20 million 67

72 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Community facilities expenditure capital and operational The charts below show the projected capital and operational expenditure associated with the management of Auckland Council community facilities infrastructure assets to Community infrastructure capex and opex 10 years Millions Growth Level of service Renewal Operating costs 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Community infrastructure capex and opex 30 years Millions 3,000 2,500 2,000 1,500 1, Growth Level of service Renewal Operating costs 0 FY16 FY20 FY21 FY25 FY26 30 FY31 35 FY36 40 FY Open space projected expenditure Quality public open space is a critical component for healthy lifestyles in an urban environment. Auckland s open space network, including extensive regional parks and open spaces in the urban core and the associated trails and walkways, contributes to a unique identity, quality of life, healthy lifestyle, tourism potential and economic wellbeing. To ensure our parks and open spaces contribute to Auckland s liveability, the four areas of focus over the next 30 years are to: protect and conserve significant ecological, natural, cultural and historic heritage values in our parks and open spaces. 68

73 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy expand and develop our parks and open space network to accommodate more use visually and physically connect Auckland s network of parks, open spaces and streets maximise synergies between our open spaces and create a green, resilient and prosperous city with thriving communities. Projects for parks and open spaces over the next 10 years are provided for in this LTP. No major projects are identified over the second and third decades of the strategy although it is anticipated that ongoing investment in the open space network at a similar level to the LTP period will be required to meet the ongoing demands arising from growth over the 30 years. Assets will be managed in an integrated way, sustaining and enhancing the values while ensuring Aucklanders continue to enjoy easy access to our coastline, waterways and volcanic features. To accommodate more use and activities in our open spaces, we need to invest in redeveloping existing parks, and creating new parks that are flexible, accessible, safe and welcoming. Priorities will be identified taking into account spatial priorities, including SHAs, and structure plan sequencing and timing as part of the Future Urban Land Supply Strategy currently under development. Acquisition of additional land is required to provide for a variety of parks including neighbourhood parks, suburb parks, destination parks, (including regional parks), connections, sports parks and conservation parks. In existing urban areas expansion of the park network is relatively constrained by affordability and acquisition opportunities. The programme in these areas therefore focuses on improving existing parks and addressing service area gaps. In greenfield development areas the programme focuses on establishing networks of connected, multi-functional parks and open spaces that will meet the recreational, social and environmental needs of the growth community. In addition to acquiring additional land, we will also work with landowners to secure more public access to our open spaces. Creating a green network over the next 30 years involves the creation of greenways that connect our parks, streets and esplanade reserves with a network of walkways, cycleways and trails. We will also develop an integrated network of trails that are destinations for walking, riding, and paddling that will provide world-class recreation experiences for locals and tourists alike. The relationship between open space and the transport network will become more important as the city grows. Investment in developing existing and new parks is required to meet the recreational, social and environmental needs of the existing and growth communities. In existing urban areas, the programme focuses on improving the quality and capacity of existing parks to cater for increased use and a wide range of activities. In greenfield areas, the programme focuses on developing new parks and recreational facilities once land is acquired. The charts below show the projected capital and operational expenditure associated with the management of Auckland Council parks and open space assets to

74 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Open space capex and opex 10 years Millions FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Growth Level of service Renewal Operating costs Millions 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Open space capex and opex 30 years FY16 FY20 FY21 FY25 FY26 30 FY31 35 FY36 40 FY41 45 Growth Level of service Renewal Operating costs Waterfront Development and Regional Facilities A smaller but still important component of the council s assets portfolio is our waterfront and regional facilities assets. These include the public and commercial assets on the waterfront in areas such as the Wynyard quarter and our regional facilities such as our stadiums, arts and entertainment facilities and Zoo. These facilities do not form part of our 30 Year Infrastructure Strategy however we have added some commentary to assist readers to understand our plans in this area. No specific projects have been identified beyond the first 10 years for these facilities however provision has been made for ongoing levels of asset renewal expenditure in the financial projections. The next 10 years will see further enhancements along the waterfront as well as progressing the stadium strategy and some major asset renewals at our 90 year old Auckland Zoo. 70

75 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy 6.8 Future infrastructure needs While the preceding sections looked at major infrastructure projects currently in planning or being implemented, an area where this strategy can make a significant contribution is where future infrastructure needs have been identified and detailed planning has not been undertaken. For Auckland, over the next 30 years the major challenge will be providing infrastructure for greenfield areas. As part of the Proposed Auckland Unitary Plan development, a number of greenfield areas have been identified in the north, north-west and south of Auckland and have been zoned Future Urban. This land, within the Rural Urban Boundary (RUB) is currently in rural uses. Much of it has not previously been identified for urban uses and it does not have infrastructure that will enable an urban scale of development. Providing infrastructure for new communities in a way that aligns with growth locations and capacities required, delivers on urban form, sustainability and resilience outcomes and is affordable will require collaborative processes to understand what we need to deliver, where and when. It is not appropriate to make all decisions about infrastructure needed now for the 30 years of the strategy. Advances in technology will mean that efficiencies may be able to be derived from strategically timed future decisions. We need to understand how decisions that we make can lock us in to future decisions (path dependency). This will require a systems approach to planning. At any stage of the 30 year infrastructure programme there will be projects at different stages of completion; in the project identification, project planning, and project implementation stage of development. It will be important to make decisions through future LTP processes to ensure funding is aligned to when delivery is required. Auckland faces major challenges particularly in providing longer-term transport solutions for a growing population and planning for growth in greenfield areas zoned Future Urban. The transport challenges include: City centre future access: The City Centre Future Access Study concluded that the CRL with surface bus improvements provided the best multimodal solution for city centre access projects to deliver the CRL and provide city centre bus improvements. This work is programmed for (see Section 6.2). However, further work has identified that even with the CRL and bus improvements, there would still be access and public transport capacity problems into the city centre and in some areas the high number of buses would negatively impact on the quality of the urban environment. The solution to these issues would need to support growth requirements in a way that maintains or enhances the quality and capacity of the city centre streets. As part of further projects a range of options will be explored around Light Rail as a solution including consideration of timing, route optimisations and service integration. Investigations into Light Rail options are at an early stage and funding and staging implications will need to be addressed in the future through the RLTP and ITP as well as LTP processes. An additional Waitematā harbour crossing: The NZ Transport Agency (NZTA) has identified an additional Waitematā Harbour crossing (AWHC) operated in conjunction with the existing Auckland Harbour Bridge (AHB), as the most appropriate solution to provide flexibility, resilience, and sustainability for the expected growth in Auckland s population and traffic 20. While this project is being led by NZTA, collaboration with both Auckland Council and Auckland Transport will be vital to ensure that there is coordination with other transport projects and land use planning to establish timing and other project details. SkyPath: A proposal has been initiated and developed by the Auckland Harbour Bridge Pathway Trust to provide a privately financed walking and cycling facility on the Auckland Harbour Bridge. Known as SkyPath, this would be an attractive, semi-enclosed facility that will appeal to recreational users and visitors as well as commuters. This trust has proposed SkyPath be financed by private sector funding in partnership with Auckland Council, where users pay an entrance fee to fund the construction and operation of SkyPath and SkyPath transferring to the council s ownership at the conclusion of funding arrangement. Auckland Council is currently evaluating this proposal

76 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Auckland s greenfield growth The major challenge facing Auckland is how we plan and provide infrastructure for the greenfield areas that are identified for urbanisation over the next 30 years. The tables below are intended to provide a snapshot of the future infrastructure needs that we are likely to face in our Future Urban zoned areas and the questions that need to be addressed to provide options and solutions. Future Urban areas in the south In the south the proposed Future Urban areas identify land for development in the Takanini, Opaheke, Drury, Karaka Paerata and Pukekohe areas. There are also a number of SHAs being developed in this area for which infrastructure capacity is required. Issues by infrastructure type Principal options for managing the issues Process and decisions Transport Residential and industrial growth will increase pressure on existing transport infrastructure. Timing of major new infrastructure is largely dependent on growth timing aside from alleviating a few key network constraints. Requirement to protect land now for future infrastructure provision. Water and wastewater Water and wastewater infrastructure are prerequisites for urban development. To effectively plan to service any new development a level of certainty around the location, size and timing of that development is required because of the cost, complexity Working with partners including NZTA to consider options that relate to the state highway network including the role of SH22 in urban areas, and whether any modifications are required to SH1 (e.g. upgrading interchanges). Assessing options for provision of an arterial and local roading network to provide for local community uses, business and freight. Assessing the potential for new stations, or the relocation of existing stations (assuming electrification to Pukekohe), on the rail line to most efficiently service growth areas and provide a focus for town centres. Investigating new or revised public transport routes to service residential and employment areas, taking into account the existing infrastructure (rail and bus) network. Options for consolidating the existing walking and cycling networks and extending these to provide stronger connections. Investigating demand management measures to maximise efficiency of existing and new roading, public transport, cycling and walking networks. Current and planned upgrades to the wastewater treatment plants at Māngere and Pukekohe do not cater for greenfields growth in the south. Substantial additional capacity, beyond that provided for in current projects, will need to be planned for the wastewater network and treatment to serve the southern Future Urban areas. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Priorities for structure planning, and hence release of land capacity, will be made through the Future Urban Land Supply Strategy to ensure that seven years greenfield capacity is maintained. Decisions on projects to support land released for development will be made through our standard decision-making processes including annual, long-term, asset, and statutory transport planning processes.. Funding will be secured through the existing NZTA and Auckland Council mechanisms. Mill Road (north) design and land purchase in next three years, construction likely to commence in 2018/19 ($133 million). Mill Road (south) is anticipated in the period. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Major water and wastewater projects require significant periods of time to plan and deliver. Initial planning has been undertaken into the investment in new water and 72

77 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Issues by infrastructure type Principal options for managing the issues Process and decisions and need to integrate new infrastructure into the existing network. Wastewater Treatment Plants at Māngere and Pukekohe provide services for the southern urban areas. Greenfield development requires substantial additional capacity to be planned for the wastewater network and treatment. This additional capacity is beyond that provided in current planned projects. Stormwater Stormwater run-off adversely impacts on Auckland s freshwater and marine environments. In the south the Manukau Harbour and particularly the Pahurehure Inlet are sensitive receiving environments. There are challenges in this area due to major physical constraints (including peat soils and natural hazards such as flood plains) that will require substantial capital expenditure to enable the area to become suitable for urban development. Without remediation there is an increased risk to people and property. Community facilities Identification and assessment of options, from increasing efficiency of the existing network, increasing capacity of the existing network and treatment facilities, to developing new infrastructure will be part of ongoing work to plan for this growth. As growth occurs there will a requirement to seek consents for increased water takes and treated wastewater discharge. There are a number of areas where there will need to be stormwater and flood control measures, stream buffers, conveyance channels and stormwater detention areas. Catchment-based planning approach. There is a shift from relying solely on hard infrastructure solutions (e.g. pipes and culverts) to utilising innovative water sensitive design. Less reliance on centralised systems, with a focus on the retention of natural systems. wastewater infrastructure needed to support greenfield development in the south. Decisions on projects on projects to support land released for development will be made through our standard decision-making processes including annual, long-term, asset and planning processes. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Decisions on projects to support land released for development will be made through our standard decision-making processes including annual, long-term, asset and planning processes. Growth places pressures on existing facilities to meet community needs and demand for additional facilities in newly developed areas. Integrating and coordinating planning across all types of community facilities. Developing fit for purpose, integrated and connected community facilities. Leveraging and supporting partnerships with other providers and exploring alternative means of funding the development of community facilities. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. The draft Community Facilities Network Plan (2015) will guide council s investment in the provision of community facilities, including options to meet future demand arising from population growth. Decisions on programmes to respond to land released for development will be made through our standard decisionmaking processes including annual, long-term, asset and planning processes. 73

78 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Issues by infrastructure type Principal options for managing the issues Process and decisions Open space Growth will require new networks of parks and open spaces to be established to service new communities in greenfield areas. Securing land for new large parks prior to urbanisation of a greenfield area. Acquiring land for local parks and connections through structure planning and subdivision. Developing innovative multifunctional parks and open spaces which deliver recreational, conservation, social and infrastructure outcomes. Upgrading existing parks and open spaces to cater for more use and activities. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Decisions on programmes to respond to land released for development will be made through our standard decisionmaking processes including annual, long-term, asset and planning processes. Decisions on open space investment is aligned to the phasing of development within greenfield areas. Future Urban areas in the north-west In the north-west the proposed Future Urban areas identify land for development in the Kumeu-Huapi, Redhills, Whenuapai and Riverhead areas. There are also a number of SHAs being developed in this area for which infrastructure capacity is required. Issues by infrastructure type Principal options for managing the issues Process and decisions Transport Residential, commercial and industrial growth will increase pressure on existing transport infrastructure, particularly the road network and links to central Auckland. Timing of major new infrastructure is largely dependent on growth timing. Requirement to protect land now for future infrastructure provision. Working with partners including NZTA to consider options that relate to the state highway network including travel choices on SH16. Assessing options for provision of an arterial and local roading network to provide for local community uses, business and freight. Assessing the potential for rapid transit networks to most efficiently service growth areas. Developing options for consolidating the existing walking and cycling networks and extending these to provide connections. Investigating demand management measures to maximise efficiency of existing and new roading, public transport, cycling and walking networks. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Priorities for structure planning, and hence release of land capacity, will be made through the Future Urban Land Supply Strategy to ensure that 7 years greenfield capacity is maintained. Decisions on projects to support land released for development will be made through our standard decision-making processes including annual, long-term, asset, and statutory transport planning processes. Funding will be secured through the existing NZTA and Auckland Council mechanisms. Within the first 10 years decisions will be required on the form, function and timing of north-western busway. Water and wastewater Water and wastewater infrastructure are prerequisites for urban development. To effectively plan to service any new development a level of Identification and assessment of options for increasing efficiency of the existing network, increasing capacity of the existing wastewater network and treatment facilities, developing new It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Major water and wastewater projects require significant periods of time to plan and 74

79 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Issues by infrastructure type Principal options for managing the issues Process and decisions certainty around the location, size and timing of that development is required because of the cost, complexity and need to integrate new infrastructure into the existing network. wastewater infrastructure will be part of on-going work to plan for this growth. However, in general existing planned projects (Northern Interceptor and North Harbour Watermain) will unlock future wastewater and water capacity. As growth occurs there will a requirement to seek consents for increased water takes and treated wastewater discharge. deliver. There is existing water and wastewater infrastructure in the north-west that provides a base from which to develop additional infrastructure to support greenfield development in the area. Decisions on projects on projects to support land released for development will be made through our standard decision-making processes including annual, long-term, asset and planning processes. Stormwater Stormwater run-off adversely impacts on Auckland s freshwater and marine environments, in particular the Upper Waitematā. There are challenges in this area due to major physical constraints (including natural hazards) that will require substantial capital expenditure to enable the area to become suitable for urban development. Without remediation there is an increased risk to people and property. There are a number of areas where there will need to be stormwater and flood control measures, stream buffers, conveyance channels and stormwater detention areas. Catchment-based planning approach There is a shift from relying solely on hard infrastructure solutions (e.g. pipes and culverts) to utilising innovative water sensitive design. Less reliance on centralised systems, with a focus on the retention of natural systems. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Decisions on projects to respond to land released for development will be made through our standard decision-making processes including annual, long-term, asset and planning processes. Community facilities Growth places pressures on existing facilities to meet community needs and demand for additional facilities in newly developed areas. Integrating and coordinating planning across all types of community facilities. Developing fit for purpose, integrated and connected community facilities. Leveraging and supporting partnerships with other providers and exploring alternative means of funding the development of community facilities. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. The draft Community Facilities Network Plan (2015) will guide council s investment in the provision of community facilities, including options to meet future demand arising from population growth. Decisions on programmes to respond to land released for development will be made through our standard decision-making processes including annual, long-term, asset and planning processes. To support greenfield growth in the northwest preliminary investigations indicate the potential future need in the second decade of the strategy for pool and leisure space. Open space Growth will require new networks of parks and open spaces to be established to service new communities in Securing land for new large parks prior to urbanisation of a greenfield area. Acquiring land for local parks and It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Decisions on programmes to respond to 75

80 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Issues by infrastructure type Principal options for managing the issues Process and decisions greenfield areas. connections through structure planning and subdivision. Developing innovative multifunctional parks and open spaces which deliver recreational, conservation, social and infrastructure outcomes. Upgrading existing parks and open spaces to cater for more use and activities. land released for development will be made through our standard decision-making processes including annual, long-term, asset and planning processes. Decisions on open space investment will be aligned to the phasing of development within greenfield areas. Future Urban areas in the north In the north the proposed Future Urban areas identify land for development in the Silverdale, Dairy Flat and Warkworth areas. Issues by infrastructure type Transport Residential, commercial and industrial growth will increase pressure on existing transport infrastructure, particularly the road network and links to central Auckland. Timing of major new infrastructure is largely dependent on growth timing. Requirement to protect land now for future infrastructure provision. Principal options for managing the issues Working with partners including NZTA to consider options that relate to the state highway network, including the Puhoi to Warkworth Road of National Significance project and any modifications needed to State Highway 1 (e.g. upgrading interchanges). Assessing options for provision of an arterial and local roading network to provide for local community uses, business and freight. Investigating new or revised public transport routes to service residential and employment areas, taking into account the existing infrastructure network. Process and decisions It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Priorities for structure planning, and hence release of land capacity, will be made through the Future Urban Land Supply Strategy to ensure that seven years greenfield capacity is maintained. Decisions on projects to support land released for development will be made through our standard decision-making processes including annual, long-term, asset, and statutory transport planning processes.funding will be secured through the existing NZTA and Auckland Council mechanisms. Options for consolidating the existing walking and cycling networks and extending these to provide connections. Investigating demand management measures to maximise efficiency of existing and new roading, public transport, cycling and walking networks. Water and wastewater Water and wastewater infrastructure are prerequisites for urban development. To effectively plan to service any new development a level of certainty around the location, size and timing of that development is required Identification and assessment of options for increasing efficiency of the existing network, increasing capacity of the existing wastewater network and treatment facilities, developing new wastewater infrastructure will be part of on-going work to plan for this growth. Assessing the options to provide long It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Major water and wastewater projects require significant periods of time to plan and deliver. There is limited existing infrastructure on 76

81 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Issues by infrastructure type because of the cost, complexity and need to integrate new infrastructure into the existing network. Principal options for managing the issues term water and wastewater solutions to the north. For instance to provide for growth in Warkworth additional water sources will need to be found, while for the Silverdale, Dairy Flat areas there is a constraint with the water network currently only going as far as Albany. Alternative approaches to resolve these constraints will need to be investigated. In terms of wastewater, Warkworth is currently serviced by a stand-alone wastewater treatment plant which will not be able to accommodate the quantum of growth anticipated in the next 30 years. New solutions will need to be investigated, including piping wastewater to other treatment plants. With Silverdale and Dairy Flat decisions about how to provide for wastewater, in an area where there is no wastewater infrastructure, will need to be investigated. This work is expected to have significant lead-in times due to the distance of these areas from existing services. Process and decisions which to support greenfield growth in the north. Decisions on projects on projects to support land released for development will be made through our standard decision-making processes including annual, long-term, asset and planning processes. As growth occurs there will a requirement to seek consents for increased water takes and treated wastewater discharge. Stormwater Stormwater run-off adversely impacts on Auckland s freshwater and marine environments. For the north this includes the Mahurangi Harbour and the Upper Waitematā Harbour. There are challenges in this area due to major physical constraints (including natural hazards) that will require substantial capital expenditure to enable the area to become suitable for urban development. Without remediation there is an increased risk to people and property. There are a number of areas where there will need to be stormwater and flood control measures, stream buffers, conveyance channels and stormwater detention areas. Catchment-based planning approach. There is a shift from relying solely on hard infrastructure solutions (e.g. pipes and culverts) to utilising innovative water sensitive design. Less reliance on centralised systems, with a focus on the retention of natural systems. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Decisions on projects to respond to land released for development will be made through our standard decision-making processes including annual, long-term, asset and planning processes. Community facilities Growth places pressures on existing facilities to meet community needs and demand for additional facilities in newly developed areas. Integrating and coordinating planning across all types of community facilities. Developing fit for purpose, integrated and connected community facilities. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. 77

82 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Issues by infrastructure type Principal options for managing the issues Leveraging and supporting partnerships with other providers and exploring alternative means of funding the development of community facilities. Process and decisions The draft Community Facilities Network Plan (2015) will guide council s investment in the provision of community facilities, including options to meet future demand arising from population growth. Decisions on programmes to respond to land released for development will be made through our standard decision-making processes including annual, long-term, asset and planning processes. Open space Growth will require new networks of parks and open spaces to be established to service new communities in greenfield areas. Securing land for new large parks prior to urbanisation of a greenfield area. Acquiring land for local parks and connections through structure planning and subdivision. Developing innovative multifunctional parks and open spaces which deliver recreational, conservation, social and infrastructure outcomes. Upgrading existing parks and open spaces to cater for more use and activities. It is projected that most of this greenfield land will be developed in the second and third decades of the strategy. Decisions on programmes to respond to land released for development will be made through our standard decision-making processes including annual, long-term, asset and planning processes. Decisions on open space investment will be aligned to the phasing of development within greenfield areas. 78

83 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Appendix 1 Key assumptions A series of assumptions have been made which establish the parameters for future Auckland Council investment and action. These assumptions range across both planning and financial aspects of the council and are detailed below: General assumptions Medium growth projections In line with the projections used elsewhere in this LTP, we have assumed that Auckland s population will grow by an additional 716,000 people by This reflects our assumptions about demand for services i.e. that population growth increases demand for services for all of our key infrastructure assets. There is a high degree of uncertainty about the pace of future growth which gives rise to a risk that our provision of infrastructure may be inefficient. We will manage this risk through careful growth monitoring. A potential uncertainty is if we build infrastructure in the wrong place; at the wrong time; or build too much, this would result in inefficient use of the council resources. Meeting the Auckland Plan Development Strategy This assumption relates to the future growth and development pattern of Auckland. Specifically, we have assumed that Auckland will develop as a quality, compact city which has a 70:40 split in growth 21 in line with the Auckland Plan, which is the overarching strategic document for Auckland Council. Spatial Priorities Areas and Special Housing Areas These assist in determining the priority for investment in new infrastructure to service growth. We have assumed that there will be no changes to areas that have already been agreed or approved, and that any new areas will be consistent with the Auckland Plan Development Strategy. Proposed Auckland Unitary Plan The PAUP is currently going through a statutory process of submissions and hearings prior to its adoption (which is anticipated within three years). While many aspects of the PAUP could be changed during this time (e.g. the location of the Rural Urban Boundary), it is difficult to predict what these changes could be. We have therefore assumed that the adopted Auckland Unitary Plan will not be significantly different to the current content of the PAUP. The high degree of uncertainty about the final content of this plan gives rise to a risk that our provision of infrastructure is inefficient. We will manage this risk by ensuring that our infrastructure providers are kept up to date with potential changes to the plan contents. A potential uncertainty is if we build infrastructure in the wrong place and/or at the wrong time or build too much, this would result in inefficient use of the council resources. Current legislation This strategy has been developed within the current legislative context. Over a 30 year period there will be changes to relevant legislation, we are not able to predict what these might be. Any future changes to legislation will be addressed through future strategy reviews and the LTP process. This is one of our two external levels of service assumptions. Resource consents and environmental standards We have assumed that all existing resource consents will be renewed and that the current environmental standards will apply to the design and construction of future works. This is one of our two external levels of service assumptions. Rates increase limit This LTP includes a policy of limiting the overall increase in general rates for existing ratepayers to 3.5 per cent each year. This is higher that the projected rate of inflation to enable us to achieve the right balance between affordability and making progress for Auckland. We have assumed that this policy will apply over the 30 year period of this strategy. Inflation All project costs and financial projections have been inflated using the council s forecasting assumptions for the first 10 years ( ). The following inflation factors have been applied to capital and operational expenditure projections for years of this strategy: 21 The 70:40 split provide for 60-70% of growth (e.g. homes and jobs) within Auckland s existing core urban area; with 30-40% of growth occurring in new greenfield, satellite towns and rural and coastal towns. 79

84 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Table A1 Inflators Capital Expenditure Inflation factor Transport 3.0% Water and Wastewater 3.2% Stormwater 2.6% Parks and Community Facilities 2.9% Other Capital Expenditure 2.2% Operating Expenditure Inflation factor Staff Costs 2.4% Other Costs 3.0% Transport The 30 Year Infrastructure Strategy is based on the Accelerated transport programme included in this LTP, unless otherwise stated. Demand assumptions The forecast transport demand flows are summarised below. Table A2 Demand forecast to 2046 Transport trip statistics % change Regional road network Daily AM vehicle trips 484, ,000 42% Daily VKT (Vehicle Kilometres 28,900,000 44,200,000 53% Travelled) Modelled lane km 6,100 6,700 10% Regional public transport network Daily AM public transport trips 61, , % Modelled AM bus service km 24,000 51, % Modelled AM rail service km 1,780 3,280 84% Modelled AM ferry service km 680 1,100 62% Regional active transport network Daily active (cycle & walking) trips 500, ,000 88% 80

85 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Levels of service assumptions Service levels for transport are summarised below. Table A3 Key level of service measures and targets (30 years) Service levels Measure Target Prioritise rapid, high frequency public transport Total public transport boardings Public transport punctuality (weighted average across all modes) : Increasing to 111 million : Increasing to 200 million : Increasing from 92% to 95% : 90-95% : 85-90% Public transport : Increasing from 83 to 85% : 80-85% : 75-80% Transform and elevate customer focus and experience Customer satisfaction index: public transport, road quality, footpath quality, road safety Roads : 70% : 65-70% : 60-65% Footpaths : 65% : 60-65% : 55-60% Road safety : 60-65% Ensure a sustainable funding model Build network optimisation and resilience Public transport fare box recovery Road maintenance standards (ride quality) as measured by smooth travel exposure (STE) for all urban and rural roads Percentage of the sealed local road network that is resurfaced Percentage of assets in poor or very poor condition (as defined in Auckland Transport s AMP) : 46-50% : 50% : 50%+ 2015: Rural 93%, Urban 83% 2016: Rural 92%, Urban 82% : Rural 87-91%, Urban 77-81% : Rural 80-87%, Urban 70-77% : Rural 75-80%, Urban 65-70% : 8% : 8% : 8% : 0-5% : 5-25% : 25-35% : 35-39% Note: The above levels of service assumptions represent what can reasonably be achieved with current funding levels and do not take into account the $12 billion additional transport funding that is estimated to be required over the next 30 years to achieve the Auckland Plan transport outcomes. 81

86 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Asset Life Cycle Assumptions The future life cycle costs of transport are dominated by the road network which represents 82 per cent of Auckland Transport s depreciable assets as at June The following table gives an indication of the value and assets lives of the main transport network components (by asset value). Table A 4 Asset values and base lives Asset group Value June 2014 ($millions) Asset life (Years) Roads 7, Train Stations Buildings Rolling Stock Bus Stations Wharves Within the road network the main assets are the road carriageway, which has a life of 50 years for arterials and 100 years for local roads, and the associated pavement surface which has a life of between 10 and 15 years. Footpaths have a life of between 25 and 50 years and bridges 99 years. Auckland Transport has an ongoing condition assessment programme for major asset groups. Higher priority is given for critical assets with a focus on structures including bridges, retaining walls, ferry facilities, bus shelters and rail assets. Detailed inspections are undertaken for these critical assets while non-routine condition assessments at an appropriate frequency are undertaken for non-critical assets. Auckland Transport uses a condition-based forecasting model to optimise long-term renewals investment across its asset portfolio. Renewal work is focused on critical or highly utilised asset groups that have a high proportion in poor to very poor condition. Uncertainty in this approach is introduced as we do not frequently assess non-critical assets, which may result in earlier asset failure than forecast. 82

87 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Wastewater collection and treatment Project budgets for future works assume an annual efficiency savings target of 5 per cent per annum in the delivery of capital projects through improved design scope, smarter procurement practices and project management. We have assumed that these efficiencies can be achieved without materially impacting service levels or the intended project benefits. Demand assumptions There are around 1.27 million people connected to Watercare s metropolitan wastewater system, served by the Māngere, Rosedale and Army Bay wastewater treatment plants. This is forecast to grow to 1.9 million people by Levels of service assumptions There is a range of factors, in addition to growth and renewal, which necessitates the need to upgrade or replace assets or to provide new ones. These factors are categorised as level of service improvements and include regulatory compliance and risk mitigation provisions as summarised below: Table A5 Key service level factors of wastewater collection and treatment assets Service level statement Measure Target Provide reliable wastewater services and manage discharges to maintain or improve the health of the environment The annual number of dry weather overflows from Watercare's sewerage system, expressed per 1000 sewerage connections to that sewerage system Compliance with the Watercare's resource consents for discharge from its sewerage system measured by the annual number of: a) abatement notices b) infringement notices : : : : a) 2, b) 2, c) 2, d) : a) 2, b) 2, c) 2, d) : a) 2, b) 2, c) 2, d) 0 83

88 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Table A5 Key service level factors of wastewater collection and treatment assets Service level statement Measure Target c) enforcement orders d) convictions received by Watercare in relation to those resource consents The total number of complaints received by Watercare about any of the following: a) sewerage odour b) sewerage system faults c) sewerage system blockages d) the Watercare s response to issues with its sewerage system expressed per 1000 connections to the Watercare s sewerage system Average number of wet weather overflows per discharge location : : : : 2 overflows per year per engineered overflow point : 2 overflows per year per engineered overflow point : 2 overflows per year per engineered overflow point Customer satisfaction Percentage of customers surveyed satisfied with Watercare s delivery of water and wastewater services : 80% : 80% : 80% Asset life cycle assumption The condition of the trunk network assets is assessed during scheduled crew inspections, specialist pipe bridge and rising main inspections and closed circuit television (CCTV), sonar and walk-through inspections. Watercare has reliable data for the trunk assets. A condition assessment for the local networks (including trunk networks inherited by Watercare at 1 November 2010) was not consistently undertaken and consequently the data is not readily comparable. Assumed condition based on asset age is summarised below. 84

89 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Uncertainty in this approach is introduced as we have not physically assessed all the assets. This is because it is not economic to inspect all underground assets, which may result in earlier asset failure than modelled. The wastewater pipes account for 72 per cent of the total value of the wastewater assets. The useful life of the wastewater pipes has been estimated across the different networks from industry standards, local knowledge and pipe deterioration modelling. Pipes (including manholes) generally have longer useful lives than many of the other assets in the schemes. Estimated lives for the pumps, instrumentation or electrical assets of the pump stations and treatment plants tend to be considerably shorter and therefore require replacement earlier and more frequently. The figures below plot the estimated replacement cost of wastewater pipe assets based on their estimated life-end dates in 2013/14 dollars. 85

90 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Water supply Demand assumptions There are around 1.4 million people connected to Watercare s metropolitan water supply system. This is forecast to grow to 1.63 million people by 2024 due to new development within areas already serviced with water and wastewater networks or from extension of the existing networks. Levels of service assumptions There is a range of factors, in addition to growth and renewal, which necessitates the need to upgrade or replace assets or to provide new ones. These factors are categorised as level of service improvement and include regulatory compliance and risk mitigation provisions to ensure security of supply through alternative distribution pathways and storage are available in the event of an emergency as summarised below. Table A6 Key service level factors of water supply assets Service level statement Provide uninterrupted access to safe, clean and drinkable water. Measure The extent to which Watercare s drinking water supply complies with part 4 of the drinking-water standards (bacteria compliance criteria) The extent to which Watercare s drinking water supply complies with part 5 of the drinking-water standards (protozoal compliance criteria) The total annual number of complaints received by Watercare about any of the following: a) drinking water clarity b) drinking water taste c) drinking water odour d) drinking water pressure or flow e) continuity of supply f) Watercare's response to any of these issues expressed per 1000 connections to the local authority's networked reticulation system The percentage of real water loss from Watercare's networked reticulation system The average consumption of drinking water per day per resident Target : 100% : 100% : 100% : 100% : 100% : 100% : : : : 13% : 13% : 13% : litres Water consumption reduction targets will be reassessed after

91 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Asset life cycle assumptions Watercare undertakes an ongoing comprehensive condition assessment programme for all the bulk supply network pipes and consequently has collected reliable condition data for these pipes. The assessment of the condition of inherited local water distribution pipe networks was historically approached in different ways and with differing consistency across the region. Consequently uniform comparable condition data is currently not available. However, the majority of the local distribution pipe networks are estimated to be in average to very good condition based on the condition data that does exist and due to their relatively young age (compared to their life expectancy) as shown below. Uncertainty in this approach is introduced as we have not physically assessed all the assets. This is because it is not economic to inspect all underground assets, which may result in earlier asset failure than modelled. The useful life of pipe assets that make up 61 per cent of the total value of water supply has been estimated across the different networks from industry standards, local knowledge and pipe deterioration modelling. The results of this desktop analysis estimates that less than 20 per cent of the local distribution pipes are in poor or very poor condition. 87

92 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Stormwater and flood control Levels of service and demand assumptions The future demand on the stormwater network is mainly driven by the creation of impervious or paved areas. The growth and timeframe predictions use population growth projections and assume additional impervious or paved surfaces are created as households require more additional buildings. Specifically, it is assumed the urban area will increase from 42 per cent to 62 per cent imperviousness, based on the rules set out in the Proposed Auckland Unitary Plan. Other factors which influence demand are rainfall intensity patterns (e.g. climate change), building materials or human activities. Mean annual rainfall in the Auckland region varies between 1200 to 1600 millimetres, with rainfall varying by time of year and geographic location within Auckland. Based on current knowledge, and under moderate projections, it is likely that over the next century Auckland could experience: lower average annual rainfall patterns (decreasing by between 1 and 3 per cent by 2040, 3 per cent by 2040, to 3 and 5 per cent by 2090) more extreme weather events with more frequent heavy rainfall events and more frequent westerly winds a rise in sea levels of between 0.18 to 0.59 metres from 1990 to 2100 and higher storm surge and waves. 88

93 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Approximately 70 per cent of new stormwater assets are created by third parties, mainly developers, and handed over or vested to the council s Stormwater Unit to manage. Generally public stormwater assets outside the road corridor are vested with council while those in the road corridor remain with Auckland Transport. The figure below illustrates the forecast of new growth assets and the comparison between council built assets and vested assets in terms of value. Growth assets Council built, vested treatment and vested network Table A7 Key service levels for stormwater assets Levels of service Measure Target Manage the stormwater network and flood protection schemes to minimise the risks of flooding to Aucklanders. The number of flooding events and the associated number of habitable floors affected per 1000 properties. The proportion of habitable floors that are predicted to flood in a 10 year event. The proportion of habitable floors that are predicted to flood in a 100 year event. The proportion of habitable floors that are found to be unfeasible to protect from flooding that have flood resilience strategies in place. Number of blockages in the stormwater network per 100km The number of complaints received about the performance of the stormwater network per 1000 properties connected to Auckland Council s stormwater network. The major flood protection and control works are maintained, repaired and renewed to a safe operating standard. Critical assets with identified structural condition grade 4 (poor) are renewed or repaired within 5 years of identification Critical assets with identified structural condition grade 5 (fail) are repaired or renewed within 24 months of identification. Critical assets are surveyed at least once every 5 years to check their condition :< 1 per :< 1 per :< 1 per :< 1% :< 1% :< 1% :<2.5% :<2.5% :<2.5% % % : 25-50% : 50% : 50% :<20 per annum :<20 per annum :<20 per annum :<3 per :<3 per :<3 per :100% :100% :100% :100% :100% :100% :100% :100% :100% :95% :95% :95% 89

94 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Table A7 Key service levels for stormwater assets Levels of service Measure Target Develop the stormwater network in a cost effective manner to enable growth in accordance with Auckland Council s growth priorities. The annual capital works programme to enable growth is delivered. Other council departments and CCO projects are supported by stormwater unit capital investment each year :95% :95% :95% :>$100k /annum :>$100k /annum :>$100k /annum Enhance and protect the stormwater receiving environments for the people of Auckland through sustainable management of the stormwater network. Auckland Council stormwater compliance with resource consents for discharge from its stormwater system, measured by the annual number of: a) abatement notices b) infringement notices c) enforcement orders d) successful prosecutions received in relation those resource consents. The ratio of the length of watercourse consented to be physically improved versus physically degraded in each year. ( kms improved kms degraded = 3 or more) Contaminants are removed from: a. Cesspits and proprietary devices, and b. Wetlands and ponds via Auckland Council s maintenance and renewal programmes. The ratio of the length of watercourse consented to be physically improved versus physically degraded in each year. ( kms Improved kms Degraded = 3 or more) Number of mana whenua satisfied with Auckland Council s engagement with iwi in relation to stormwater projects. Identified projects that contribute to Māori outcomes are delivered to programme : None : None : None :> :> :> : a) 5,000 tonnes /annum b) 10,000 tonnes /annum Targets after 2025 will likely increase and will be subject to review every three years :10/ :10/ :10/ :95% :95% :95% Asset life cycle assumptions The entire piped network has been condition rated either based on actual inspections or based on analysis and extrapolation of actual pipe conditions. The effects of pipe material, diameter, age and locality (catchment) on pipe deterioration were considered for extrapolation in the asset renewal models. It is assumed that the overall length of pipes in poor or very poor conditions across the region would be about 460km or seven percent of the entire stormwater network. Out of this percentage, approximately 140km of inspected pipes will need intervention in the next 10 years and another 160km of inspected pipes are estimated be in need of some work in the next 20 years. Uncertainty in this approach is introduced as we have not physically assessed all the assets. This is because it is not economic to inspect all underground assets, which may result in earlier asset failure than modelled. The approach to renewals will shift the focus to more planned renewals focused on optimised management of performance risks. The pipe renewal programme aims to maximise the economic life of an asset. Replacing a pipe before the end of its useful life increases the cost of providing a given level of service. Stormwater assets tend to be renewed or rehabilitated right at the end of their economic life as they are typically able to perform to an adequate level even when they are in a poor condition. 90

95 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy The figure below presents the current condition of pipes by asset criticality. Community facilities Levels of service and demand assumptions The Draft Community Facilities Network Plan (2015) outlines the approach to providing different types of community facilities. For all types, there is a mixed range of facilities in the region based on legacy council investment which has resulted in gaps and sometimes duplication in provision. Some facilities have low usage, are in poor condition, or are not fit for purpose. The asset portfolio will be reviewed, which will consider divestment of some assets and the opportunities to integrate community facilities and provide a range of services within one facility. Through this process levels of service are expected to be maintained throughout the period. Within this context, the service standards are set out below. Table A8 Asset provision standards Arts and culture space Provision standard Demand and service assumptions Community centres Local Integrate appropriate spaces within new local community facilities. Evidence of sustainable community demand. Provision standard Small Large Venues for hire Located in local neighbourhoods; walking catchment of 15 minutes or 30 minute drive of rural and coastal villages. Less than 600m 2 of floor area. Target population threshold 5,000-10,000. Destination Size and location determined by robust investigation on case by case basis. Council intervention only when sector alone does not deliver. Evidence of sector and audience demand. Serves a catchment of 15 minute driving time. Located in metropolitan or town centres and satellite towns. Desirably located within the centre of town. 600m 2 or more floor area. Provision standard Flexible spaces which can be booked for meetings, classes and activities for different sized groups. Access to bookable space within 15 minute walk from local or town centres and 30 minute drive from rural centres. 91

96 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Libraries Provision standard (includes rural specific) Local Destination Regional 41m 2 / 1000 of local catchment population, maximum distance of 30 minutes travel. Respond to population growth of 10,000 in a rural area. Respond to population growth of population growth of 10,000 in a rural area and 30,000 in a metropolitan centre. Respond to population growth of population growth of 10,000 in a rural area and 30,000 in a metropolitan centre. Pools and Leisure Space Provision standard Local Destination Regional Network to serve local catchments of up to five km. In areas outside catchments of existing facilities recognising other providers. Pools target population thresholds of 35,000 to 50,000. Leisure target population thresholds of 18,000 to 40,000. Limited number of facilities to serve catchments 10km plus. One to three facilities to serve the region. Asset life cycle assumptions Building inspections are undertaken on a regular basis to: identify any hazards and health and safety work to be completed immediately check that previous condition assessments are still accurate and relevant identify the remaining life of building components establish a programme of renewal work. Lifecycle planning for community facilities is based on the design useful life of the individual building components and systems that will have unique deterioration profile over time after construction. Key elements that form part of asset management decision-making include: asset attributes the age of the building (or period of construction) defines the assumed deterioration profile and useful life of the asset asset criticality consequence and likelihood of failure which is often dependent on functionality and significance in relation to the environment, social, cultural, economic and reputational factors asset reliability relating to the technical specification based on the probability of failure of an asset used for performing a specific function under specific conditions which would be affected by actual conditions of use and extraordinary circumstances including operating beyond design capacity intervention levels are triggered by agreed levels of service requirements that identifies the minimum thresholds for quality, efficiency, condition standards, etc. 92

97 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Condition profiles are based on a rolling programme of inspections over multiple years. Open space Levels of service and demand assumptions Subject to funding constraints, the future provision of open space is largely dependent on the rate of population growth and is strongly linked to how the area will be developed to accommodate anticipated future growth. Prioritising open space acquisitions in greenfield developments and existing urban areas is guided by the council s spatial priority areas and the Parks and Opens Space Interim Provision guidelines. These guidelines define the quantum (area), location and configuration in relation to other land uses, such as housing and street environment as summarised below. Table A9 Service standards Experience Description Provision Neighbourhood Park An area of open space that provides a basic informal recreation experience for nearby residents, including: play opportunities Residents in high density areas should have access to a neighbourhood park within a 400m walk. Residents in other urban residential zones should have access to a neighbourhood park within a 600m walk. flat, kick-around space areas for respite and relaxation. Suburb park An area of open space that provides a variety of informal recreation experiences for residents from across a suburb. A suburb park typically provides experiences such as: walking circuits or trails within the park Networks of linear open space and multifunctional sports parks may be able to achieve the experiences of a suburb park. Residents in high density areas should have access to a suburb park within a 1000m walk. Residents in other urban residential areas should have 93

98 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Table A9 Service standards Experience Description Provision multiple kick-around spaces access to a suburb park within a 1500m walk. socialising spaces, including picnic and barbeque facilities larger and more specialised informal recreation facilities, such as large playgrounds, skate parks, hard courts. Suburb parks should be located in a prominent position within a suburb and have good transport access. Sub-regional park A large area of open space consisting of a variety of environments and that provides a range of informal recreation experiences. They are destinations that can accommodate large numbers of visitors, who often will visit for an extended period of time, and may travel from across Auckland. A sub-regional park typically provides experiences such as: large events or tournaments Sub-regional parks are often large (greater than 30ha) and are typically acquired outside of the structure planning or subdivision process. There is no target travel distance to a sub-regional park. A variety of sub-regional parks should be located to serve each of the northern, western, central and southern areas of urban Auckland. Some regional parks located close to urban areas may serve this purpose (e.g. Long Bay, Omana). networks of walking circuits and trails destination and/or multiple playgrounds and specialised recreation facilities distinct natural or heritage features multiple places for gatherings and socialising such as barbeque and picnic facilities. Civic space Civic open spaces are places for meeting, socialising, play and events located with Auckland s urban centres. Civic space is made up of a network of spaces including squares, plazas, greens, streets and shared spaces. Civic spaces are typically highly designed and developed spaces consisting predominately of hard-surfaces. The extent of the civic space network should reflect the scale of the urban centre. As the size of an urban centre increases, the extent and diversity of civic space will also increase. Local centre Small civic space such as a green, plaza or square (<1000m 2 ). Town centre Multiple small civic spaces (<1000m 2 ). A medium civic space capable of hosting small events (1500m m 2 ). Metropolitan centre Multiple small civic spaces. Multiple medium civic spaces. A large civic space (3000m m 2 ). Local sports park Open space that accommodates facilities for organised sport. These include sports A local sports park is required in greenfield development areas catering for more than 2000 households 94

99 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Table A9 Service standards Experience Description Provision fields, hard-court areas, club facilities as well as associated infrastructure such as car parking and changing rooms. Local sports parks require approximately 3ha of flat land per 2000 households. Local sport park sites should be of a configuration that can provide a minimum of two fullsized sports fields in a side-by-side configuration. Connections Open space should be distributed to create a contiguous network where possible that establishes recreational trail networks, cycling and walking linkages and ecological connections. The provision of open space for linkages and connections will depend on the particular characteristics of an area, such as: if water-bodies are present that trigger esplanade reserve/strip requirements the location of green infrastructure corridors within greenfield developments opportunities to provide public access to the coast opportunities to link nearby open spaces either through streetscape design or providing contiguous areas of open space movement networks and destinations within the urban area, such cycleway routes or schools and train stations. A 20m esplanade reserve or strip will typically be required adjacent to the coast of all qualifying water bodies. Asset life cycle assumptions Renewal programming for open space assets is based on asset condition assessments and criticality. Condition by asset criticality 35 Number of Assets not critical highly critical 5 - very poor very good The approach to renewals of parks assets focuses on minimising risk and optimising the economic life of an asset. Replacing a structure before the end of its useful life increases the cost of providing a given level of service. Renewals of highly critical assets in a very poor or poor condition will occur before another that is less critical that is in the same condition. 95

100 Part 1: Our key strategies 1.2 Auckland 30-year Infrastructure Strategy Appendix 2 - Auckland s critical infrastructure The following list of critical infrastructure appears in the Auckland Plan, and includes both infrastructure covered by this strategy as well as infrastructure that is the responsibility of other agencies. 96

101 Part 1: Our key strategies 1.3 Financial Strategy RAUTAKI TAHUA PŪTEA 1.3 Financial Strategy Purpose This strategy sets out our approach for achieving the right balance between making progress for Auckland and ensuring that Auckland is an affordable place to live, work and do business. It also describes how we ensure our financial management is fair and prudent, and sets out our objectives and targets for managing our services, rates, debt and key investments. Summary In addition to the requirements of providing day-to-day services, Auckland faces significant demand for infrastructure. At the same time Auckland needs to remain affordable, which means keeping increases in general rates and other Auckland Council charges close to the rate of inflation. To meet this challenge we must make sure that we get the most value out of every dollar we collect. The key ways we will do this are: maximising efficiency savings maximising the disposal of non-strategic surplus assets maximising the return on our investments partnering with others and investigating alternative funding mechanisms. To ensure our finances remain prudent and sustainable, we will fully fund deprecation from current revenue by 2025 and target our interest expense to be no more than 12 per cent of our income 1. Based on feedback from Aucklanders that they are willing to pay more for the transport improvements that they want and need, we have introduced an Interim Transport Levy (targeted rate) for three years to support $523 million of additional transport investment. While we do not consider this to be the best long-term funding option for fixing Auckland s transport, we do consider that is a fair, reasonable, transparent and affordable way to fund Auckland s urgent short-term transport needs. This will enable an affordable and prudent capital programme of $18.7 billion over the next 10 years, utilising only our currently available funding mechansims, including the Interim Transport Levy. However, this level of investment falls well short of what is needed to address Auckland s long-term transport needs so we will work with central government to enable alternative mechanisms to be further explored. Auckland s growth and infrastructure needs Auckland is expected to experience significant population growth. Over the next 30 years our population is projected to grow by over 716,000 people, with 237,000 of these people arriving in the next 10 years. We anticipate that to accommodate this growth, 109,000 new dwellings and 4.3 million square meters of business space will need to be built over the next 10 years. These projected changes in population and land use are the primary drivers of the capital investment outlined in this strategy, and as a consequence, the primary drivers of our 10-year operating expenditure budgets and financial plans overall. Our planned capital investment to cater for growth is outlined in the Planned Investment section below. Our 30-year infrastructure strategy describes the benefits of investing in infrastructure, but also outlines how a lack of existing infrastructure capacity combined with rapid growth mean Auckland now faces unprecedented demand for new and expanded infrastructure. 1 The specific details of how we calculate this ratio, and our other prudential ratios, are set out in note 4 to our prospective financial statements in Part 2 of Volume 1. 97

102 Part 1: Our key strategies 1.3 Financial Strategy The cost of meeting this demand is substantial and despite significant funding streams from central government and other sources, we cannot undertake all the infrastructure investment we would like, within the timeframes we would like, while also keeping Auckland affordable. For transport alone, the gap between the 30 year funding requirement identified in the Auckland Plan and currently available funding sources has been estimated to be $12 billion. Our infrastructure strategy therefore outlines our key strategies for managing the various drivers of demand for Auckland infrastructure over the next 30 years. This financial strategy sets out how we plan to meet the cost of maintaining existing service levels while also addressing Auckland s infrastructure needs. Because the gap between infrastructure demand and available funding is so large, we need a financial strategy that ensures that we get the most value out of every dollar we collect. Affordability constraints Previous feedback has told us that Aucklanders clearly support making progress, particularly with fixing Auckland s transport problems and improving the quality of Auckland s urban environment. However we have also heard that there is no appetite for large increases in rates or the council debt. While affordability is often expressed in terms of consumer price inflation, due to a healthy economy the income for the average Auckland household is currently growing faster than inflation. This means that on average our community is getting wealthier and their ability to pay for enhanced assets and services for Auckland is increasing. Auckland Council also currently has ample capacity to borrow more. Auckland therefore does not face any hard and fast funding constraints. The key question is how willing are Aucklanders to pay higher rates and other charges in order to make progress. Through public consultation on this 10-year budget (with over 27,000 submissions received), along with an independent and statistically robust survey conducted by Colmar Brunton, we now have evidence that Aucklanders are prepared to pay more to get the transport system that they want and need. Planned revenue parameters Using only our current funding mechanisms, we consider that the following parameters represent the most appropriate balance between progress and affordability: overall average general rates increases for existing ratepayers of 2.5 per cent in 2015/2016, 3.2 per cent in 2016/2017 and 3.5 per cent each year thereafter an Interim Transport Levy (targeted rate) for three years set at $99 ($114 including GST) a year for nonbusiness ratepayers and $159 ($183 including GST) for business ratepayers water charges that increase at 2.5 per cent per annum for the next two years and 3.6 per cent thereafter development contribution charges that increase with inflation user charges that are standardised across the region, adjusted to represent appropriate levels of cost recovery and then increased with inflation each year. To provide certainty and predictability to ratepayers, Auckland Council is proposing to limit overall average general rates increases for existing ratepayers to 3.5 per cent per annum. This limit excludes targeted rates for things like refuse and recycling collections, and refers to the overall average increase across all ratepayers. Rates for individual properties are not restricted and will vary depending on a range of factors including property revaluations and whether the property is used for business, residential or farming purposes 2. With a strong message from Aucklanders telling us they are willing and able to pay more to achieve the transport system they want and need, we consider the most appropriate way to fund the additional investment is through the use of either motorway user charges, or fuel tax increases supported by additional rates increases of about 1 per cent each year. 2 For further information on Auckland Council s rating policy, please refer to part

103 Part 1: Our key strategies 1.3 Financial Strategy We will therefore discuss the use of motorway user charges or fuel tax increases with central government. However, because the outcome of these discussions is uncertain, our 10-year financial projections do not assume any revenue from these sources, or the additional investment that this funding would support. In the meantime there is still an urgent and publicly recognised need for action on transport. And, because the long-term transport funding options are not available to us right now, we consider that implementing this Interim Transport Levy for three years to fund $523 million of urgently needed transport investment is the best balance we can achieve right now. We came to this decision after considering public feedback on the possible introduction of a transport targeted rate, considering all practical options and after considering all of the guiding principles from our Revenue and Financing Policy and the funding considerations set out in the Local Government Act Our consultation document discussed the possibility of an interim targeted rate and the Auditor General s opinion included in that document highlighted this as a matter that readers should pay close attention to. We received a total of 170 submissions on the proposed interim targeted rate. While there was generally negative sentiment towards increased rates, these submissions expressed strong support for any rates funding for additional transport investment to be transparently allocated to progressing transport outcomes. In the general public feedback on the council s finances, about 400 feedback points were received expressing concern about the council s use of debt, with some submitters expressing support for the council s more prudent debt parameters compared to our previous plan. We considered that using debt funding alone to fund additional transport investment in the short term was not prudent given that there is no certainty about additional transport funding becoming available in the future. Using debt alone would increase our prudential debt ratios to levels that we consider too high, and without additional transport funding in the future, general rates would have to increase faster than the 3.5 per cent overall average that we consider to be affordable. Alongside our consideration of the need for additional transport investment in the short-term, and the appropriate size of the additional investment, we considered a range of options involving using general rates rather than targeted rates, a smaller targeted rate, a targeted rate phased in over three years and a targeted rate based on capital value as opposed to a fixed charge. After evaluating each of these options in terms of simplicity, practicality, transparency, linkage to benefits received and costs imposed, and projected impact on general rates and debt over the next 10-years we decided on an Interim Transport Levy fixed for three years of $99 plus GST for non-business ratepayers and $159 plus GST for business ratepayers. While we do not consider this to be the best long-term funding option for fixing Auckland s transport, we do consider that is a fair, transparent and affordable way to Auckland s urgent short-term transport needs. Figure 1 shows the combined impact of these general rates increases and the new Interim Transport Levy for sample residential and business properties for 2015/

104 Part 1: Our key strategies 1.3 Financial Strategy We acknowledge some people within our community will find it difficult to cope with the combined impact of general rates increases and the introduction of the new levy. We offer a range of targeted assistance measures including: continuing to allow ratepayers to pay by direct debit at a frequency and amount that suits their budget allowing ratepayers with good payment records to make later payments with no penalties facilitating greater use of our rates postponement scheme adding the Interim Transport Levy to the rates remission for those in retirement villages on a license to occupy basis (who would otherwise be eligible for central government s rates rebate scheme). Figure 2 shows the projected path of overall average general rates increases for existing ratepayers, as well as projected rates and other non-rates revenue sources for the next 10 years. 100

105 Part 1: Our key strategies 1.3 Financial Strategy Maximising the value from every dollar collected Given these revenue parameters, we have sought to ensure that we get the most value out of every dollar we collect to help us address Auckland s investment needs. The primary ways we have done this are: 1. maximising efficiency savings 2. maximising the disposal of non-strategic surplus assets 3. maximising the return on our investments 4. partnering with others and investigating alternative funding mechanisms. 1. Efficiency savings In an environment where we cannot afford to do everything today, it is essential that we make sure that every dollar we do spend provides value for money. Efficiency savings (delivering the same or more for less) have increased from $81 million in the council s first full year to $183 million for the 2014/2015 year, compared to the cost of delivering services in the starting point budgets for Auckland Council prepared by Auckland Transition Agency. Some of the ways in which we have achieved these savings are: simplifying and improving our business processes better procurement and tendering processes bringing more work in-house to reduce our reliance on external providers reducing the number of office buildings we occupy. We are targeting significant further efficiency savings through the next ten years, as detailed in the table below. We are looking to innovative ways of achieving better outcomes for less money with a continued focus on better use of technology and smarter processes. 101

106 Part 1: Our key strategies 1.3 Financial Strategy Efficiency savings targets Financial year ending 30 June ($ million) Savings from prior years Increase Annual efficiency savings Disposal of non-strategic surplus assets Auckland Council has a very large holding of land and buildings, some of which are not needed for providing the council services, not providing a market rental income, are poorly utilised or simply located in the wrong place. Because we will not have sufficient funding to provide all the new infrastructure we would like over the next 10 years, disposing of surplus assets will help maximise what we can provide. The following table shows the amount of disposals we are targeting for the next 10 years. Disposal of non-strategic surplus assets Financial year ending 30 June ($ million) Targeted net proceeds from disposal Return on investments The council is expecting $1.3 billion in revenue from financial investments and equity securities over the next 10 years. We plan to explore opportunities to maximise value for ratepayers by optimising the return across our broad portfolio of financial investments, including our shareholdings in Auckland Airport and Ports of Auckland, to maximise the investment we can make in Auckland for any given revenue parameters. Our planned approach to managing these investments is discussed later on in this strategy. 4. Partnering and new funding mechanisms Auckland Council recognises that we can achieve greater progress towards becoming the world s most liveable city by partnering with other organisations including the private sector, central government, charitable organisations and community groups. An example of this is partnering with charitable trusts on the Youth Connections programme which connects young people with opportunities in employment, education and training. We can also do more if we consider different ways of paying for things, such as entering into partnerships arrangements with private sector operators building, financing and operating new infrastructure or facilities. The possible future introduction of motorway user charges is another example of how we might be able to pay for things in a different way. Prudent financial management We consider that the fairest way to pay for long-life assets is to borrow and spread the cost across different generations of ratepayers. However, we need to ensure we use debt sustainably and that servicing our debt is affordable for both current and future ratepayers. We also need to make sure that we have enough flexibility to deal with any unexpected shocks such as another global financial crisis. To ensure that we remain prudent, we have adopted a set of three prudential limits that will ensure our borrowings and interest expense do not grow too large relative to our rates and other revenue. Together with our large asset base, these limits underpin our AA credit rating, which is stronger than any New Zealand bank. However, after hearing Aucklanders expressing strong concern about the level of the council debt, we have taken an even more conservative approach of targeting to spend no more than 12 per cent of our income on the interest generated by debt. 102

107 Part 1: Our key strategies 1.3 Financial Strategy Depreciation is a non-cash charge that reflects the reduction in the usability of our assets over time. Fully funding depreciation from rates and current revenue would mean that on average, over the long run, we are not relying on borrowing to fund asset replacement. This represents a very sustainable approach. Unfortunately, the legacy councils only funded 63 per cent of deprecation so we propose to progressively move to 100 per cent over the next 10 years. For further information about our approach to depreciation funding (including the implications of this approach for our operating budgets) and the use of debt to fund our activities, please refer to our Revenue and Financing Policy in Part 3.1. Planned investment Combining our revenue growth settings with a 12 per cent target of interest to revenue will enable an affordable and prudent capital programme of $18.7 billion over the next 10 years (using only our currently available funding mechanisms). This includes $8.2 billion of capital expenditure to maintain existing service levels for network infrastructure and flood control works. We propose to allocate this capital spending as set out in Figures 3 and 4. This level of spend will result in the council debt growing by $4.4 billion over the next ten years, from $7.2 billion in June 2015 to $11.6 billion by June Figures 5 and 6 show how this projected debt level compares with our asset projections and how the growth in debt compares with our investment in new assets. These charts show that by 2025 the council is much less reliant on borrowing to fund its capital expenditure programme than it is today. This is largely due to the council having fully implemented its deprecation funding policy by

108 Part 1: Our key strategies 1.3 Financial Strategy 104

109 Part 1: Our key strategies 1.3 Financial Strategy Our 10 year planned capital expenditure includes an Accelerated Transport Programme of $7.9 billion over the next 10 years. This includes $523 million of additional investment over the next three years supported by $186 million of revenue from the Interim Transport Levy. The balance of the $523 million will be funded by central government and council debt that will be serviced by general rates and other revenue (with no reliance on future transport levies or any alternative funding mechanism). This represents what we can achieve with our currently available funding mechanisms and the revenue and debt parameters set out in this strategy. However, this spending plan falls short of meeting Auckland s aspirations for transport and will in fact result in our transport problems getting worse over the next 10 years as more people share our roads and public transport. 105

110 Part 1: Our key strategies 1.3 Financial Strategy This programme includes some key items Aucklanders have said they want us to prioritise, including: the City Rail Link to expand the capacity of our entire rail network North Western Growth Area projects Warkworth transport improvements Auckland Manukau Eastern Transport Initiative (AMETI) East-West Connections upgrades Lincoln, Te Atatu and Mill Road upgrades local transport infrastructure to support new housing developments a base level of investment in walking and cycling infrastructure, bus lanes and safety enhancements. With the use of the Interim Transport Levy, we will also deliver $523 million of additional capital expenditure over the next three years as follows: 2015/ / /2018 Additional transport capex $170 million $174 million $179 million This additional investment will occur across the Auckland region, with the largest increases relating to new infrastructure to support public transport, walking and cycling. Figure 8 shows what this will enable, along with the mix of funding sources for the next three years. 106

111 Part 1: Our key strategies 1.3 Financial Strategy One area where there are key trade-offs is in the level of asset renewals. While the level of renewal expenditure over the next three years will enable us to maintain our current service levels without taking unacceptable risks, this is not the case for our transport assets from 2018/2019 onwards. Without additional transport funding, we will see deterioration in the condition of our transport assets and therefore a decrease in the level of service over the seven years from 2018 to 2025 as shown in Figure 9. We will minimise and closely monitor this through continued active asset management, with a primary focus on safety. We will also undertake a full review of our asset needs from 2018 onwards as part of developing updated asset management plans to support the Long-term Plan , at which point we expect there to be greater certainty about the level of transport funding. 107

112 Part 1: Our key strategies 1.3 Financial Strategy Similarly the capital programme is not quite sufficient to maintain all of our community assets in their optimal condition from 2018/2019 onwards, while also meeting all of the other demands for spend in this area. However, we know that some of these assets are poorly utilised and/or provide less value than others. Over the next three years we will review and adjust these asset portfolios to ensure we are achieving best value for money. As with our transport assets, we will also monitor and minimise any service level impacts while maintaining our primary focus on safety. The parameters and targets outlined in this strategy will also enable us to spend $41.4 billion over the next 10 years on the operational cost of delivering the council services and initiatives. This includes the interest and ownership cost of new assets. Figure 7 shows the makeup of this spend. Apart from the impact on transport and community asset condition discussed above, these levels of capital and operating expenditure will generally be sufficient to maintain existing service levels and provide for a reasonable and appropriate level of demand for new or improved assets and services. 108

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114 10 10-year budget at a glance Area of spend Capital spend $18.7bn Operating spend $41.4bn How operating costs are funded Rates value per $100 $10 Rates 71% Auckland Development $1bn $2.4bn Other, including fees and charges 29% Rates 65% $7 Economic and Cultural Development $0.4bn $2.1bn Other, including fees and charges 35% $16 Rates 57% Environmental Management and Regulation $1bn $5.4bn Other, including fees and charges 43% $5 Governance and Support $1.3bn $4.2bn Rates Other, including fees and charges 16% 84% $26 Rates 85% Parks, Community and Lifestyle $2.4bn $6.3bn Other, including fees and charges 15% $36 Transport $7.9bn $14.4bn Rates Other, including fees and charges 54% 46% Rates 0% $0 Water Supply and Wastewater $4.7bn $6.6bn Other, including fees and charges 100%

115 What will be delivered Key performance indicators Unitary Plan and local plans, policy development, waterfront development, town centre development, property management and development Enabling housing development through existing and future spatial priority areas Creating an vibrant Waterfront that attracts 76% of Aucklanders to the Waterfront each year by 2025 Increase the proportion of residents who are proud of the way their local area looks and feels from 64% in 2010 to 90% in 2040 Supporting and growing Auckland s economy through major events such as NRL Auckland Nines, Pasifika Festival Auckland, V8 Supercars, World Masters Games 2017 Working with business sector to grow jobs Managing major attractions, venues and sports stadiums Building and maintaining the stormwater network Improving the quality of water in streams and harbours Waste collection, including recycling and reducing waste to landfill Protecting biodiversity Undertaking regulatory activities such as resource and building consents, dog control, food licensing and swimming pool inspections Mayor, councillor and local board support and meeting processes Corporate functions such as finance, legal, communications and human resources Auckland Council Investments Ltd, including Ports of Auckland Grants to Auckland War Memorial Museum, MoTAT and the Auckland Regional Facilities and Amenities Regional and local parks Libraries, community facilities, community services and grants Arts and cultural facilities, activities and community events Swimming pools and recreation centres Housing for older adults Grow annual contribution to regional GDP from major events to $75m by 2025 Grow visitors to Auckland Zoo and Art Gallery to 1.17 million visitors per year and maintain a 90% customer satisfaction level Host 785 commercial events and 990 community events per year at our stadiums by 2025 Host 835 public art performances through Auckland Live per year Ensure no more than 1 in 1000 properties connected to our Stormwater system is flooded per year Reduce domestic kerbside refuse by 22% to 110kg per year per person Establish 8 hectares of new forest or wetland habitats per year Process 100% of building and non-notified resource consents within 20 working days By 2025 ensure 100% of Aucklander s are covered by community response plans in case of a civil defence emergency Reducing corporate costs through an ongoing efficiency programme to achieve annual savings of $309 million by 2025 Deliver return on equity of between % per annum on major investments Maintain and increase overall service levels for our local and regional parks to continue to enjoy high visitor numbers Significant investment in sportsfields to improve satisfaction of the provision and quality by 15% By 2025, 25% of all library collection lending will be e-collections Improve utilisation of community facilities by at least 2% 9 Building and maintaining all local and main arterial roads Footpaths, cycle paths, bridges, carparks, culverts etc Providing public transport services trains, buses, ferries Invest in rail, bus and ferry infrastructure Transport safety, education and enforcement Key infrastructure projects, including City Rail Link and AMETI An accelerated transport programme, which includes an additional $523m capital expenditure over the first three years funded by the interim transport levy Building and maintaining the network of pipes, dams, treatment plants, pumps required to provide a high standard of drinking water and treating sewerage Major projects over the next 10 years are the central interceptor and the consent application for further water take from the Waikato River to cater for Auckland s future growth By 2025, increase public transport boardings to 111 million per year, and improve punctuality to 95% and customer satisfaction to 85% City Rail Link will increase boardings by an additional 6 million trips per year Maintain optimum travel time on at least 85% of key freight routes Grow annual number of cycling trips on Auckland Transport s designated routes to 4.3 million per year Maintain 100% compliance with Drinking-water Standards for New Zealand Less than 10 sewerage system overflows per 1000 connections in dry weather conditions Deliver major projects such as the Central Interceptor wastewater project to reduce sewerage overflows and the Waikato second water supply pipeline to cater for future water demands

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117 Part 1: Our key strategies 1.3 Financial Strategy Fixing Auckland s transport The Accelerated Transport Programme supported by the Interim Transport Levy will address the most urgent transport needs in the short-term. However, without additional funding, we are well short of the funding needed to deliver a wide range of significant transport projects within the next 10 years. Also, we will miss out on opportunities to achieve significant benefits from aligning our investment with the investment made by New Zealand Transport Agency on our state highway network. Over time, the performance of the transport system will get progressively worse as Auckland s population grows. Aucklanders want us to improve the speed, frequency, affordability, reliability and attractiveness of our network so that more Aucklanders will choose to travel by public transport more often. The Auckland Plan envisages us doubling the number of public transport passenger trips to a total of 140 million trips each year by An expanded network would also improve connection with and allow development of outer-lying areas. The main benefit of additional transport investment would be less congested roads (than would otherwise occur), as well as faster and more frequent public transport that becomes the preferred way of getting around for many more Aucklanders. Additional investment would give people much more choice to make more trips on buses, trains and ferries as well as by walking and cycling. This in turn would release capacity on the road network for freight and other road trips. Additional transport funding (over and above the funding provided for in this 10-year budget) would enable: more frequent bus services, providing faster connections to more destinations additional investment in bus and rail stations and interchanges, with increased Park and Ride capacity more new cycleways and shared cycling and walking paths enhanced safety programmes and greater investment to address high priority rail level crossings more arterial and local road improvement projects to address growth pressures and existing congestion a more optimal and sustainable approach to managing our transport assets. Transport modelling for the proposed Auckland Plan Transport Network indicated that businesses would see a large improvement in their ability to move goods around the region. By 2046 we would see improvements in key freight routes by 15 to 30 per cent, which will assist in region wide productivity improvements. By 2046 trips across the city would be faster for both private vehicles and public transport. A trip from Westgate to the city centre would be 19 minutes faster. The access to employment would improve significantly with the proportion of jobs accessible by a public transport trip within 45 minutes improving by 5 per cent and a 30 minute car ride by 5 to 10 per cent by Moving commuters from private vehicle use to public transport and the reduction of time spent in traffic congestion for the remaining road users, is one of the most significant contributions Auckland Council can make to improving the impact that the city has on the natural environment. Debt management At $11.6 billion, our total projected group debt (including all CCOs) by June 2025 will remain at a prudent level relative to our assets and income. This is reflected in the council s very high credit rating (an independent evaluation of our ability to repay debt and the likelihood of defaulting on our obligations). Entity S&P credit rating New Zealand Government AA+ Auckland Council 3 AA Bank of New Zealand (BNZ) AA- Fonterra A Spark A- 3 This is our current Standard and Poor s rating. We also currently have an Aa2 rating from Moody s Investor Services. Further information and latest announcements on our credit ratings are available on our investor centre: 111

118 Part 1: Our key strategies 1.3 Financial Strategy To ensure that debt levels continue to remain prudent and sustainable, the council has set the following prudential debt limits 4 : Measure 2015/16 Peak 2024/25 Limit Closing net debt as percentage of total revenue 199.2% 205.2% 179.5% < 275% Net interest as percentage of total revenue 11.3% 12.0% 11.3% < 15% Net interest as percentage of rates revenue 19.0% 21.2% 18.9% < 25% These limits are indicators of the ability of the council to cover its borrowing costs from its different revenue sources. We ensure that debt levels will remain within those limits over the 10-year horizon. The council uses a combination of operating income sources to pay for interest including, rates, fees and charges such as water and wastewater tariffs, and investment income such as commercial rental revenue and ports revenue. In a similar way to how you might fix your mortgage, we protect the council from rises in interest rates through the use of fixed interest rates and the use of interest rate hedging instruments. To a large extent, this locks in the council s future borrowing cost and protects us from rising interest rates. To ensure that we are not too dependent on the state of global financial markets, we ensure that we always have sufficient cash, liquid investments and committed lines of credit available to allow us to pay our bills for at least the next six months. We also make sure that we borrow from a range of domestic and international lenders so that a problem with any one source of borrowings does not have too large an impact. In general, the council will provide rates revenue as security for its borrowings 5 including its borrowings through the New Zealand Local Government Funding Agency (NZLGFA) and the European Medium Term Note (EMTN) programme. However, in specific cases, the council may consider whether alternative security is appropriate, for example security over property that is specifically connected with the borrowing. Auckland Council s financial risks (market risk, credit risk and liquidity risk) are managed under our Treasury Management Policy which focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the council group. The Treasury Management Policy contains an interest rate exposure policy which provides the objectives and processes for managing these risks and how compliance with the policy is measured. Investment management The council is expecting $1.3 billion in revenue from financial investments and equity securities over the next 10 years. The four key types of investments, the council s objectives for holding them and target returns are discussed below. More information on how the council manages its investment is contained in our Treasury Management Policy Equity investments in commercial activities The council has significant shareholdings in Ports of Auckland Limited, Auckland International Airport Limited and Auckland Film Studios Limited, which are managed by Auckland Council Investment Limited (ACIL). ACIL manages these activities to maximise financial returns while supporting the realisation of the council s broader strategic objectives. The targeted return on investment 6 for major investments managed by ACIL is projected to be between 7.0 and 13.5 per cent over the next 10 years. 4 For the purposes of calculating the council's prudential borrowing limits and credit rating, a number of adjustments are made to gross borrowing, including the exclusion of borrowing relating to Watercare Services Limited. After these adjustments, net borrowing at 30 June 2015 is forecast at $4.7 billion rising to $7.4 billion in 2024/2025. For more details, see Note 4 - Prospective Prudential Financial Ratios in the financial statements in Volume One. 5 Further information on the security for our borrowings is available on our investor centre: 6 Return on investment is calculated as the dividend from ACIL to Auckland Council plus change in shareholder funding, divided by shareholder funding at the end of the year. 112

119 Part 1: Our key strategies 1.3 Financial Strategy Financial assets The council has a portfolio of diversified financial assets (DFA) made up of equities, bonds and cash. The council holds the DFA as a reserve to meet unforeseen funding issues that may prevent it from borrowing to fund its activities. The target return is to exceed the Official Cash Rate plus consumer price index inflation and the council expects the portfolio to return an average of 7 per cent per annum over the period of this LTP. Trusts and reserves The council has a number of trusts and reserves to fund specific activities. The trusts are mainly endowments from private individuals and organisations to help fund specified activities. The council manages these trusts and uses the returns to fund the relevant activities. For the purposes of this LTP, revenue from these trusts is assumed to be utilised for specified activities in the year it is received. Accordingly, no movement is forecast. The council has set a target for the returns to exceed the interest rate for the 90 day bank bill and corporate A grade bonds for the relevant year. Shareholding in the New Zealand Local Government Funding Agency (NZLGFA) The council is a shareholder in the New Zealand Local Government Funding Agency (NZLGFA). The council expects to fund some of its borrowings from the NZLGFA at interest rates lower than those offered by other New Zealand lenders, which will reduce the council s overall borrowing costs. The expected return on the council s investment in NZLGFA is 4.5 per cent. 113

120 Part 1: Our key strategies 1.3 Financial Strategy 114

121 Part 2: Our activities WĀHANGA TUARUA Ā MĀTOU MAHI Part 2: Our activities The information in this section will provide you with a good understanding of all that Auckland Council does, from providing services and amenities to residents and visitors, to managing our organisation and processes. Each theme and the activities relating to each theme as set out below will show what we anticipate to deliver, and how much it will cost, over the next 10 years from 2015 to WĀHANGA TUARUA Ā MĀTOU MAHI Page No. PART 2: OUR ACTIVITIES WHANAKETANGA O TĀMAKI MAKAURAU Auckland development Regional planning Local planning and development Property development Waterfront development 129 WHANAKETANGA ŌHANGA ME TE AHUREA Economic and cultural development Economic growth and visitor economy Regional facilities 140 NGĀ WHAKAHAERE TAIAO ME NGĀ TURE Environmental management and regulation Regulation Solid waste and environmental services Local environmental management Stormwater management 156 TUME WHAKARAE ME NGĀ TAUTOKO Governance and support Regional governance Local governance Investment Organisational support 169 NGĀ PAPA ĀTEA, HAPORI ME TE ĀHUA NOHO Parks, community and lifestyle Regional community services Local community services Regional parks, sport and recreation Local parks, sport and recreation 190 MAURANGA 2.6 Transport Public transport and travel demand management Roads and footpaths Parking and enforcement 207 TE WAIORA ME NGĀ WAIPARAPARA Water supply and, wastewater treatment and disposal Water supply Wastewater treatment and disposal

122 Part 2: Our activities 116

123 Part 2: Our activities 2.1 Auckland development WHANAKETANGA O TĀMAKI MAKAURAU 2.1 Auckland development One of our main aims is to create a city with great neighbourhoods, centres, parks and public spaces that are loved by Aucklanders, provide choices, reflect Auckland s Māori identity as our point of difference in the world and connect people to places and to each other. This area is made up by the following groups of activities: Regional planning Local planning and development Property development Waterfront development Our 10-year budget to deliver these activities includes operating costs of $2.4 billion and capital investment of $973 million. Auckland Development Year 1 Year 2 Year 3 Years 4-10 $million 2015/ / / / /25 Total Operating Expenditure ,754 2,383 Capital Expenditure Some of our top priorities in this area are: To progress the Unitary Plan, statutory planning and monitoring work and by-law integration across the region To focus the majority of planned infrastructure improvements into carefully planned spatial priority areas (including the city centre and The Southern Initiative) that support housing and job growth and make the best use of existing infrastructure To complete initiatives underway in the Housing Action Plan including a focus on non-regulatory initiatives to improve housing supply and affordability Take a more active role in urban redevelopment, particularly town centres to create vibrant places that accommodate residential and commercial development. To manage and support the Business Improvement District (BID) programme to enable economic development in town centres and industrial/commercial areas To continue to lead the delivery of the city centre and waterfront as a key destination and location for businesses, residents and visitors To ensure efficient use of council-owned land and rationalisation of assets as referred to in Part 1.3, Financial strategy, asset sales targets of $659 million are included are a source of funding for capital expenditure To support papakāinga housing and our local marae to be self-sustainable. For a more detailed understanding about this spending area, refer to the group of activities summaries that follow. 117

124 Part 2: Our activities 2.1 Auckland development Regional planning Regional planning Key activities Our regional planning activities cover a range of strategic and geographic planning objectives. These encompass the natural environment and heritage (including land, freshwater and marine environments; natural hazards and air quality), and also the built environment and heritage (including major infrastructure and urban design). Thorough research and analysis is performed to establish a sound evidence base for our work, including the review of the council s strategic documents. To do this we closely monitor and investigate many things such as economic and demographic trends, environmental considerations and urban design factors. Outputs of regional planning consist of a range of advice, policies, plans, and strategies, such as the Auckland Plan, Unitary Plan, Infrastructure Strategy and area spatial plans. Specialist services and advice are also provided to help inform and deliver outcomes, including community and social policies, heritage, urban design, city transformation project delivery, by-law development and advice on legislative change and submissions. The Housing Project Office (HPO), whilst within our regulatory function, leads the council s housing programme and the forward land and infrastructure programme (FLIP). It coordinates with central government on the review of actions to implement the Auckland Housing Accord, and enables an end-to-end planning service for Special Housing Areas, plan variations and qualifying developments under this Accord. How these activities drive Auckland Plan outcomes Regional Planning provide a regional, evidence-based approach to managing future growth, our built environment, transport, economic and environmental issues that impact on all Aucklanders. It drives the following Auckland Plan Outcomes of: Prosperous Green Connected Loved Māori identity An Auckland of prosperity and opportunity Developing opportunities to grow Auckland s economy, equip our workforce with the right skills and increase business connections between us and the rest of the world. A green Auckland Through sustainably managing Auckland s natural environment (land, water and coast), natural hazards and air quality. A well-connected and accessible Auckland Providing the overarching framework to move us towards one transport network. A beautiful Auckland loved by its people Understanding the value and need to invest in our heritage for the benefits and enjoyment of present and future generations. Demanding quality design of our built environment and providing the mechanisms through the Unitary Plan to manage our growth and urban form. Te hau o te whenua te hau o te tangata establishing enduring relationships with Māori to realise shared aspirations and mutual benefits and working together with others to showcase Auckland s unique Māori identity and identify and protect our Māori cultural heritage. These activities directly influence the following Auckland Plan targets: Target 1.12: Increase the proportion of residents who rate a sense of community in their neighbourhood as important from 71 per cent in 2010 to 85 per cent by

125 Part 2: Our activities 2.1 Auckland development Regional planning Target 2.5: Incorporate the values, culture and beliefs of the Māori people in all Auckland-related policies by Target 4.1: Increase the number of scheduled historic heritage places by 100 per cent from 2,100 to 4,200 by Target 4.3: From 2013, ensure a year-on-year increase in community satisfaction with heritage management in Auckland, achieving an 80 per cent satisfaction rate by Target 7.5: Reduce air pollutant emissions (PM10) by 50 per cent by 2016 (based on 2006 levels) to meet national and international ambient air quality standards and guidelines, and achieve a further 20 per cent reduction of air pollutant emissions by Target 10.4: Increase in the proportion of residents who are proud of the way their local area (or local centre ) looks and feels from 64 per cent in 2010 to 90 per cent in Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Produce all plans and agreements according to legislative requirements Percentage of unitary and area plan changes and Notices of Requirement processed within statutory timeframes Percentage of adopted core strategies, policies and plans incorporating Māori outcomes or developed with Māori participation 100% 100% 100% 100% 100% 100% 100% 85% 85% 85% 85% 85% Provide policy and strategic advice, leadership, facilitation and advocacy to support Auckland s economic development. Develop and champion environmental strategies and policies for the present and future generations of Auckland that are effective, evidence based and actionable Percentage of key performance indicators in Auckland Economic Development Strategy that are met or improving Number of economic, business, and city building opportunities facilitated through the Auckland Council global engagement programme Proportion of actions from strategies and action plans that are being implemented according to time frames 74% 78% 80% 80% 80% 80% 60 New measure Not available New measure % 80% 80% 80% 119

126 Part 2: Our activities 2.1 Auckland development Regional planning Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Protect and conserve Tāmaki Makaurau / Auckland s historic heritage and Māori cultural heritage for the benefit and enjoyment of present and future generations. Number of historic heritage places and areas formally protected in the Unitary Plan Number of sites and places of significance to mana whenua formally protected in the Unitary Plan 2177 New measure 61 New measure Percentage of Aucklanders satisfied with historic heritage management in Tāmaki Makaurau / Auckland Not available New measure 75% 75% 75% 80% Note to table: New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this Proposed Auckland Unitary Plan progressed through to operative status Spatial planning programme, including geographic spatial priorities and area planning Delivery of city transformation projects Ongoing work to improve recognition and appropriate management of Auckland s historic heritage, cultural heritage and historic character Provision of high quality policy advice State of the Environment monitoring and implementation of national policy statement outcomes. Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. Our natural and cultural heritage protection activities may result in restrictions on what landowners and developers can do on particular sites, such as restricting bush clearance and destruction of certain sites. Our response: Consultation is typically undertaken before any restrictions are put in place to ensure those affected can put forward their views before any decisions are made. Activities that contribute to Māori well-being and enable better outcomes with Māori Regional planning contributes to the following Māori transformational activity key focus area: Whai Tiaki Māori cultural well-being Whai Tika Effectiveness for Māori 120

127 Part 2: Our activities 2.1 Auckland development Regional planning Activities to achieve this: Māori sites of significance recognising and protecting Māori cultural heritage Māori Responsiveness Planning unit specific plans are developed with Te Waka Angamua to identify and prioritise actions to improve each unit s contribution to Māori well- being and achieve better outcomes with Māori. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $1.1 billion and capital investment of $398 million. In total our planned operating expenditure for Regional planning is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 108,486 98,290 91, ,560 1,087,959 Non-rates revenue 2,119 2,170 2,170 17,562 24,021 *Operational expenditure includes interest, depreciation and corporate overhead allocation. Total In total our planned capital expenditure for Regional planning is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 City centre upgrade 10,363 15,164 21, , ,491 Research and monitoring equipment ,656 6,373 renewals Heritage fund 3,039 3,116 7,950 32,899 47,004 Town centre upgrade ,891 98,891 Total 13,959 18,852 29, , ,759 Total 121

128 Part 2: Our activities 2.1 Auckland development Local planning and development Local planning and development Key activities Local planning and development includes local business area planning, local street environment and town centres and local environment and heritage protection. These activities are economic, environmental, heritage and spatial projects, and enable plans for and deliver great local places. How these activities drive Auckland Plan outcomes Local planning and development delivers economic, environmental, heritage and place-making initiatives to meet local needs. It drives the following Auckland Plan outcomes of: Prosperous Green Loved A green Auckland Through protecting and sustainably managing our local natural resources. An Auckland of prosperity and opportunity Helping grow a vibrant local economy supported by a skilled workforce. A beautiful Auckland loved by its people Protecting and conserving local heritage to create enduring neighbourhoods through place-making. These activities directly influence the following Auckland Plan targets: Target 10.4: Increase in the proportion of residents who are proud of the way their local area (or local centre ) looks and feels from 64 per cent in 2010 to 90 per cent in Target 4.3: From 2013, ensure a year-on-year increase in community satisfaction with heritage management in Auckland, achieving an 80 per cent satisfaction rate by Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Facilitate large transformation projects and Implement strategies for enhancing the city centre Develop local business precincts and town centres as great places to do business Percentage of transformation and City Centre Masterplan projects delivered on time and within budget Percentage of city transformation projects contributing to Māori outcomes Percentage of local economic development action plans developed and reviewed annually 80% 90% 90% 90% 90% 90% 50% 100% 100% 100% 100% 100% Not available New measure 50% 80% 80% 80% 122

129 Part 2: Our activities 2.1 Auckland development Local planning and development Level of service statement Performance measure Local Board Long Term Plan Targets 2015/ / / / /25 (p. a.) Develop local business precincts and town centres as great places to do business Percentage of Business Associations meeting their Business Improvement District (BID) Partnership Programme obligations Note to table: 1. No BID s for Great Barrier, Puketāpapa, and Waiheke Local Boards. All Local Boards with a 100% 100% 100% 100% BID (1) New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. See volume 3, Local Boards, for a comparison to current performance. Key projects to achieve this Spatial planning programme, including geographic spatial priorities and area planning Delivery of city transformation projects related to local Town Centres, including community facilities where this is part of the town centres upgrade. Working with local businesses to enable local economic development opportunities. Significant negative effects There are no significant negative effects associated with these activities. Activities that contribute to Māori well-being and enable better outcomes with Māori This group of activity contributes to Māori well-being and enables better outcomes with Māori through engaging with Māori on projects and activities and the use of Māori urban design elements in place making activities. 123

130 Part 2: Our activities 2.1 Auckland development Local planning and development What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $393 million and capital investment of $142 million. There is no operating revenue for this group of activity. In total our planned operating expenditure for Local planning and development is as follows: Operating cost $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 23,244 28,534 32, , ,842 *Operational expenditure includes interest, depreciation and corporate overhead allocation. Total In total our planned capital expenditure for Local planning and development is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Community facilities - upgrades and 10, ,943 new facilities * Priority growth area infrastructure 16,254 8,064 12,272 11,517 48,107 Town centre upgrade 16,231 13,782 14,044 38,915 82,972 Total 43,428 21,846 26,316 50, ,022 *This includes Westgate multi-use facility and Pioneer Woman and Ellen Mellville Hall which are delivered collaboratively with streetscape and town centre upgrades. Total 124

131 Part 2: Our activities 2.1 Auckland development Property development Property development Key activities Activities in this group have been delivered by the council s Auckland Council Property Limited (ACPL) entity, and include a range of services provided to Auckland Council, Auckland Transport, and other CCOs. ACPL will be combined with Waterfront Auckland (effective 1 September 2015) to form a new Council-Controlled Organisation (CCO), Development Auckland. Development Auckland will undertake all activity formerly undertaken by both ACPL and Waterfront Auckland. Development Auckland has been established to facilitate the redevelopment of urban locations (mostly town centres) to create vibrant places that accommodate more homes and businesses and to optimise council s underutilised property portfolio. It will work with the private sector and other agencies to deliver these goals and will aim to achieve a balance of commercial and strategic goals. As well as the redevelopment of urban locations, Development Auckland s services include property acquisitions and disposals, and property management on the council s behalf. They also include managing a variety of business interests (including quarries, waste disposal and forestry) and providing commercial advice to the council in areas such as planning, projects, and acquisitions. How these activities drive Auckland Plan outcomes Through its redevelopment initiatives, property development activities play a supporting role in driving the following Auckland Plan outcomes of: Healthy A Fair, Safe and Healthy Auckland By reducing barriers to increasing housing supply in order to meet housing demand Loved A Beautiful Auckland loved by its people To enable the creation of enduring neighbourhoods through place-making These activities directly influence the following Auckland Plan targets: Property development activities influence the council s strategic directions of House all Aucklanders in secure, healthy homes they can afford and Create a stunning city centre, with well-connected quality towns, villages and neighbourhoods through the facilitation of housing and place shaping developments reflected in the following Auckland Plan targets: Target 10.1: Supply 100,000 new dwellings in the period , 170,000 new dwellings ( ) and 130,000 new dwellings ( ) Target 10.4: Increase in the proportion of residents who are proud of the way their local area (or local centre) looks and feels from 64 per cent in 2010 to 90 per cent in

132 Part 2: Our activities 2.1 Auckland development Property development Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Properties are managed for Auckland Council and Auckland Transport achieves optimum net returns and are maintained to be fit for purpose Return on Investment on like for like properties (1) 2.2% 4% (2) 2.1% 2.2% 2.2% Increasing from 2.3% to 2.6% Properties are managed for Auckland Council and Auckland Transport achieves optimum net returns and are maintained to be fit for purpose Notes to table: Occupancy rate for tenantable properties New Measure New Measure 95% 95% 95% Average 95% 1. Like for like relates to the comparison of Net Return on properties as at 30 June of the reporting period with those same properties as at the same date two years prior. 2. The 2014/2015 target of 4 per cent is calculated on gross return whereas the subsequent years targets of 2.1 to 2.6 per cent are calculated on net return basis. This is a more appropriate way to define the target. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this Development Auckland s Property Management activities are driven mainly by the capital programmes of Auckland Transport and Auckland Council. Key transport projects such as City Rail Link (CRL) and AMETI are expected to increase the number of properties in the portfolio until required for projects, offset by property disposals based on targets agreed with the council. The property portfolio is expected to generate a steady rate of return to the council in the ten years of the LTP. Some of the key development projects include: Ormiston Town Centre this is a 20 hectare multi-stage housing and place shaping development, undertaken in partnership with the Todd Property Group, to build a new town centre and residential housing in Flatbush, South Auckland. The project is currently progressing with stage one and construction has commenced on this block. The Todd Property Group will continue to progress implementation of the Ormiston Master Plan which has the potential to build approximately 400 housing units. 66 Flatbush School Road this is a nine hectare residential development project that will be subject to a joint venture development agreement. This development has the potential to build approximately 300 housing units. Papatoetoe Town Centre this is a housing and place shaping redevelopment of the town centre. It is to be undertaken in three stages, includes a revamp of the retail component and car-park on the site and residential development. The plan to refurbish the retail block includes the completed sale of the Supermarket site to the operator with a commitment to redevelop. It is estimated the residential developments on the Cambridge Terrace and Tavern Lane sites will result in approximately 120 housing units. The retail part of the project is planned to be completed in

133 Part 2: Our activities 2.1 Auckland development Property development Hobsonville project the original project plan was for a 20 hectare marine industry precinct. A strategic review of the project was completed in 2013 resulting in the project changing to a 10 hectare marine industry precinct and 10 hectare residential component. The 10 hectare residential block was declared a special housing area (SHA). Master planning of the entire site has been completed on the 10 hectare residential component and 10 hectare marine industry precinct. Construction of infrastructure has commenced. It is estimated the 10 hectare residential component of the development will result in approximately 300 housing units. Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. Large commercial operations, such as forestry, landfills and quarries, will place a burden on infrastructure such as roading and have an effect on the natural environment through the contamination of soil and water, destruction of vegetation, dust and loud noise pollution. Our response: We will use an aftercare fund (for ecological restoration), traffic management plans, health and safety plans, resource consent conditions and regular monitoring to ensure compliance and minimise impact. Large urban redevelopment projects may result in a range of negative impacts from noise and travel disruption through to environmental damage. Our response: We're committed to minimising the detrimental effects of redevelopment projects in line with legislative requirements and best practice. Activities that contribute to Māori well-being and enable better outcomes with Māori Property development contributes to the following Māori transformational activity key focus areas: Whai Rawa Māori economic well-being Whai Tiaki Māori cultural well-being Whai Tika Effectiveness for Māori Activities to achieve this: Staff training and development developing internal capability as part of Māori Responsiveness Plan implementation Identifying cultural significance concerns regarding disposal properties Flagging commercial interests including interest in property development opportunities Development partnering discussions including initiating periods of exclusive negotiation Issues relating to property management for example protection of wāhi tapu or Development Auckland s management of properties, with accountability to joint management organisations arising from Treaty Settlements Engaging relevant mana whenua in respect of development outcomes for Development Auckland lead projects and disposals. 127

134 Part 2: Our activities 2.1 Auckland development Property development What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $253 million and capital investment of $287 million. In total our planned operating expenditure for Property development is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 25,445 25,988 26, , ,847 Non-rates revenue 40,804 37,239 32, , ,432 *Operational expenditure includes interest, depreciation and corporate overhead. Total In total our planned capital expenditure for Property development is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Commercial property development 38,217 44,546 29, , ,016 Commercial property renewals 4,800 4,109 4,224 31,323 44,456 Total 43,017 48,655 34, , ,472 Total 128

135 Part 2: Our activities 2.1 Auckland development Waterfront development Waterfront development Key activities The revitalisation of the waterfront as a key destination and location for businesses, residents and visitors; and uniting the waterfront with the city centre contributes to the development of central Auckland as a creative and vibrant world city. Commercial property development will be leveraged across the waterfront and place sustainability at the centre of everything we do. These activities are: Delivery of public realm and facilitation of private sector development within Development Auckland s area of ownership on the waterfront Marina operations and development Activation, facilitation and stakeholder management Planning and advocacy for quality urban development. The delivery of these activities will be carried out by the combined Council-Controlled Organisation, Development Auckland, from 1 September How these activities drive Auckland Plan outcomes The waterfront is vital to making Auckland a vibrant world city for visitors, businesses, and residents. Waterfront Development drives the following Auckland Plan outcomes: Green Prosperous Connected Loved Creative Māori identity A green Auckland by demonstrating sustainable ways of developing the waterfront, covering public and private-led projects. An Auckland of prosperity and opportunity by developing opportunities to advance Auckland as a gateway and destination for visitors, skilled workers and investors. A well connected and accessible Auckland through creating better connections between the waterfront and the city centre. A Beautiful Auckland loved by its people by creating an attractive place for people to live, work and play. Culturally rich and creative by providing opportunities to showcase Auckland s unique arts and culture. A Māori identity that is Auckland s point of difference in the world by providing opportunities to imbue the cultural values and narratives of the area in the architecture, urban design and landscape. These activities directly influence the following Auckland Plan targets: Target 3.3: Increase the number of annual guest nights in Auckland from 21.1 million in 2010 to 29.5 million by Target 8.1: Reduce the amount of human-induced greenhouse gas emissions by per cent by 2020 based on 1990 emission levels, 40 per cent by 2040, and 50 per cent by Target 10.1: Supply 100,000 new dwellings in the period , 170,000 new dwellings in the period and 130,000 new dwellings in the period

136 Part 2: Our activities 2.1 Auckland development Waterfront development Target 10.2: Increase the resident population in the city centre from 23,000 in 2006 to 57,000 in Target 12.5: Maintain and extend an integrated network of quality open spaces across the region that meets community needs and provide a diverse range of recreational opportunities by Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Deliver initiatives to make the waterfront dynamic, wellconnected, culturallyrich, safe and sustainable, for the enjoyment of Aucklanders and visitors Percentage of visitors surveyed satisfied with their experience of the public spaces on the city centre waterfront Percentage of Aucklanders surveyed who have visited the city centre waterfront in the past year 73% New measure 73% New measure 75% 75% 75% Increasing from 75% to 80% 73% 73% 73% Increasing from 73% to 76% Number of significant Māori initiatives implemented per annum 32 New measure Increasing from 54 to 66 Enhance and manage assets and services in a way that attracts private investment and optimises financial returns, for the benefit of Auckland Council Return on Equity on commercial assets and services 9.4% New measure 8.8% 8.4% 8.1% 7.5% Provide a safe marina environment and world class facilities Percentage of customers surveyed satisfied overall with marina facilities and services 72% New measure 73% 74% 75% Increasing from 76% to 80% Note to table: New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this Wynyard Quarter East-West Link - development of the design for the east-west link between Wynyard Quarter and the City Centre, to facilitate pedestrian, cycling and public transport. This will help achieve the council s targets for residential, employment, and tourism growth, as well as sustainability. Wynyard Quarter Headland Precinct Public works planning, consultation and preparation of land and provision for access, to allow for future residential and commercial development, and the 4 ha public space and signature building on Wynyard Point. The precinct will contribute to the council s recreation-related targets as well as the expected growth in dwellings, employment and tourism. Westhaven Promenade widening of segments of the newly-completed Westhaven Promenade, creation of a new open space, dredging of St Mary s Bay, and extensions to the water s edge. The 130

137 Part 2: Our activities 2.1 Auckland development Waterfront development project will ensure maximum use and full integration of the promenade with Auckland s regional network of cycleways and public spaces. The extensions will contribute to recreational outcomes. Entranceway and Asset Maintenance (Queens Wharf) enhancement and seasonal activation of the public space at the entranceway to Queens Wharf, enhancement of The Cloud, and increasing accessibility of Shed 10.This will help improve The Cloud and Shed 10 s attraction as public and revenue-generating event venues, while contributing to the council s recreation and tourism growth targets. Harbour Bridge Park planning for the development of the park to increase public use, preserve historic heritage, and to enable integration with Westhaven Promenade and the Waitematā Coastal Walkway. The project will contribute to the council s targets to deliver recreation, Māori, and public space outcomes. Wynyard Quarter Central Precinct - Public Works Contamination remediation and transformation of public spaces to complement private sector-led development and ensure sustainable and quality development in Wynyard Central. This will help attract investors, workers and residents to the area and contribute to community outcomes. Westhaven Marina Village development of Platform 2 into a marine industry cluster to ensure Westhaven Marina continues to be internationally competitive, to facilitate growth and sustainability of the marine industry, and attract more visitors to the marina. Marina Development staged redevelopment of Westhaven Marina to improve efficiency of berth configuration, increase occupancy by converting pile moorings into floating berths, and potentially develop a public space on the north-eastern part of the marina. Superyacht Refit and Commissioning Facility work needed to facilitate the development of a refit yard targeting superyachts between 600 and 2000 tonnes. This will complement and help grow the existing marine cluster in Wynyard Quarter. Significant negative effects There are no significant negative effects associated with these activities. Activities that contribute to Māori well-being and enable better outcomes with Māori The waterfront contributes to the following Māori transformational activity key focus areas: Whai Rawa Māori economic well-being Whai Tiaki Māori cultural well-being Whai Tika Effectiveness for Māori Activities to achieve this: Support for Māori-focused events at the waterfront investigating and delivering new Māorifocused events and opportunities for Māori culture to enhance existing events Iwi investment fund Investigation of a funding mechanism which enables mana whenua to make a long term investment in projects across Auckland to create a significant impact on advancing Māori well-being Enabling mana whenua involvement in the remediation and environmental enhancement of the waterfront identifying opportunities to involve iwi in environmental enhancement projects and related initiatives Promotion of te reo Māori within Development Auckland s area of influence on the waterfront developing opportunities to promote the use of te reo Māori in new streets, buildings, spaces, wayfinding signage and communication channels 131

138 Part 2: Our activities 2.1 Auckland development Waterfront development Increasing internal Māori capacity developing Development Auckland s internal capacity to respond more effectively to Māori by training staff (e.g. te reo, tikanga, kaitiakitanga). What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $649 million and capital investment of $145 million. In total our planned operating expenditure for Waterfront development is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 52,501 55,887 60, , ,459 Non-rates revenue 29,167 29,259 32, , ,699 *Operating expenditure includes interest and depreciation. In total our planned capital expenditure for Waterfront development is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Marina development and renewals 16,017 11,073 4,529 2,552 34,171 Waterfront commercial property 21,095 9,530 1,150 9,283 41,058 upgrades Waterfront public space upgrades 21,537 14,713 13,479 20,408 70,137 Total 58,649 35,316 19,158 32, ,366 Total Total 132

139 Part 2: Our activities 2.2 Economic and cultural development WHANAKETANGA ŌHANGA ME TE AHUREA 2.2 Economic and Cultural Development People are at the heart of the Auckland Plan because unleashing the potential of all Aucklanders is crucial to building a better future for the region and New Zealand. Auckland Council s role in raising living standards is multi-faceted, and economic and cultural development is a critical part of this. This spending area covers the following groups of activities: Economic growth and visitor economy Regional facilities Our 10-year budget to deliver these activities includes operating costs of $2.1 billion, and capital investment of $384 million. Economic and Cultural Development Year 1 Year 2 Year 3 Years 4-10 $million 2015/ / / / /25 Total Operating Expenditure ,532 2,087 Capital Expenditure Some of our top priorities in this area are: Grow the Auckland economy by creating an environment that attracts both new residents and visitors and, in the case of Auckland Tourism, Events and Economic Development (ATEED), business attraction and investment Progressing programmes such as the Youth Employment Traction Plan that target increased levels of youth employment and GridAKL Innovation precinct to foster innovation and entrepreneurship Progressing our Regional Facilities stadium strategy to optimise our stadium network through strategic capital investment and working with sporting codes Deliver major events, including a significant and regular Māori event Invest in the zoo s ageing infrastructure to improve animal welfare, as well as visitor experience. Establishing an Aotea (Arts) Precinct. For a more detailed understanding about this spending area, refer to the group of activities summaries that follow. 133

140 Part 2: Our activities 2.2 Economic and cultural development Economic growth and visitor economy Economic growth and visitor economy Key activities Activities in this group are delivered by Auckland Council entity Auckland Tourism, Events, and Economic Development (ATEED), which is focused on attracting new money and jobs for Auckland. ATEED works with a range of private sector and government partners to deliver on its strategic priorities: to stimulate innovation and entrepreneurship; attract new business investment; grow a skilled workforce; enable education and talent; grow the visitor economy; and build Auckland s brand and identity. To stimulate innovation-led enterprises, ATEED facilitates an annual Māori Economic Growth Forum, delivers the Government s Regional Business Partners programme across Auckland, and delivers a suite of services and advice to small/medium-sized enterprises and start-ups with high growth potential. In partnership with Development Auckland, ATEED has established Grid AKL, a new innovation precinct and showcase in Wynyard Quarter. Grid AKL and The FoodBowl Te Ipu Kai (a joint venture with Callaghan Innovation), together with other tertiary and private sector-driven innovation initiatives form the backbone of Auckland s innovation corridor. ATEED identifies and facilitates business attraction opportunities in Auckland s key industry sectors and geographic priority areas, and delivers the Aroha Auckland programme which provides post-investment support services for Auckland s priority multi-national companies and international investors. ATEED is also supporting the development of the Auckland Investment Office (AIO) function for the council, focused on attracting major investors for infrastructure such as the City Rail Link. As the host of the council s Youth Employment Traction Hub, ATEED supports the implementation of the Mayor s plan to identify pathways to employment for youth in the region s growth industries. Through Study Auckland, the Lion Foundation Young Enterprise Scheme and partnerships with Education New Zealand and Immigration New Zealand, ATEED also has a focus on developing and attracting the right talent to the region and keeping it here. ATEED also has a strong focus on developing Auckland s visitor economy into a sustainable year-round industry, including working with industry partners such as Tourism New Zealand and Auckland International Airport Limited to attract high-value visitors, and facilitating the establishment of world-class attractions. The Auckland Convention Bureau team attracts business events which inject millions annually into the economy. ATEED promotes Auckland s identity and brand story through both international and domestic tourism campaigns and the development of our digital and social media channels. ATEED is also focused on continuing to expand Auckland as a world-leading events city through attracting, delivering and/or supporting an annual portfolio of more than 30 major events. In addition, an ATEED subsidiary is working towards delivering World Masters Games 2017 the largest participation sporting event in the world. 134

141 How these activities drive Auckland Plan outcomes Part 2: Our activities 2.2 Economic and cultural development Economic growth and visitor economy ATEED s strategic priorities such as the growth of innovation, investment, a skilled workforce, and high-value visitation will build and assist the transformation of Auckland s economy to deliver opportunity and prosperity to all Aucklanders. This drives the following Auckland Plan outcomes of: Prosperous Creative Māori identity An Auckland of prosperity and opportunity through promoting Auckland as a business and leisure visitor destination and attracting visitors to attend events that are unique to Auckland. Growing Auckland s economy through attracting international businesses and talent, facilitating investments, business aftercare, fostering innovation and entrepreneurship and growing capability and skills in Auckland s key sectors of competitive advantage. A culturally rich and creative Auckland - Providing opportunities to showcase Auckland s unique arts and culture through support for and delivery of a portfolio of major events including the annual Auckland Diwali, Lantern and Pasifika Festivals. Growing Auckland s visitor economy through promotion of and support for a range of culturally focussed visitor products. Supporting businesses growth and investment across some of Auckland s key creative industries including screen and digital and ICT Te hau o te whenua, te hau o te tangata Celebrating and showcasing Māori culture and identity through major sporting and business events including a Māori Signature Festival for Auckland, and developing Māori businesses e.g. through forums and the development of tourism products. These activities directly influence the following Auckland Plan targets: Target 3.3: Increase the number of annual guest nights in Auckland from 21.1 million in 2010 to 29.5 million by Target 6.2: Increase annual average productivity growth from 1 per cent per annum for the last decade to 2 per cent per annum for the next 30 years. Target 6.3: Increase annual average export growth from 3 per cent per annum in the last decade to 6 per cent per annum for the next 30 years. Target 6.4: Increase annual average real GDP growth from 3 per cent per annum in the last decade to 5 per cent per annum for the next 30 years. 135

142 Part 2: Our activities 2.2 Economic and cultural development Economic growth and visitor economy Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Promote and develop Auckland as a national and international visitor and business destination, including through the attraction, facilitation, funding and delivery of major events Deliver information, advice, programmes and initiatives to attract and develop investment, businesses and a skilled workforce Total visits to Percentage of Customers satisfied with visitor information centres and services Contribution to regional GDP from major events invested in (1) Percentage of customers satisfied with delivered major events Percentage of stakeholders satisfied with provision of business advice, start-up and training programmes Number of businesses that have been through an ATEED programme or benefitted from an ATEED intervention 2,178,563 New measure 3 million 3.4 million 3.8 million Increasing to 4 million 92% 90% 85% 85% 85% 85% $46.3 million $47 million $49 million $86 million $49 million Increasing from $55 million to $75 million 90% 85% 85% 85% 85% 85% 94% 85% 85% 85% 85% 85% 1500 New measure Average 1500 Number of Māori businesses that have been through an ATEED programme or benefitted from an ATEED intervention Facilitation of the establishment, or significant expansion, of multinational and local companies in target sectors 75 New measure 5 New measure Average Average 5 Number of live signatories to the Youth Traction Hub Employers Pledge (2) Not available (hub not established) New measure Average 50 Notes to table: 1. For the purposes of this measure major events refer to all events in ATEEDs event portfolio i.e. events that ATEED has invested in. Formally known as Return on Regional Investment (RORI), it is the sum of money that accrues in Auckland from an event, less the amount that originates within Auckland. 2. The Mayor s Youth Employment Traction Plan includes a new office to coordinate youth employment initiatives across the region, a pledge to boost numbers in Auckland Council s graduate and cadet programmes by more than 50 per cent, and regular summits to bring together young people, business leaders and youth organisations. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. 136

143 Part 2: Our activities 2.2 Economic and cultural development Economic growth and visitor economy Key projects to achieve this Supporting the implementation of the Mayor s Youth Employment Traction Plan including hosting the traction hub and leading recruitment of Auckland businesses to work with the hub. Accelerating the operation of GridAKL (formerly the Wynyard Quarter Innovation Precinct), focusing on attracting tenants from the Information Communications and Technology (ICT) and creative sectors and setting the stage for future precinct development. Support The FoodBowl Te Ipu Kai, in joint venture with Callaghan Innovation, to provide local food and beverage companies with a cost-effective and low-risk way to develop, test and prove new products or processing technologies, enabling the export growth potential of Auckland s food and beverage sector. Enabling and facilitating business growth in sectors of comparative advantage including ICT, food and beverage and screen and digital, by building business capability and performance, enhancing Auckland s innovation ecosystem and facilitating internationalisation, business attraction and foreign direct investment. Continuing to grow the visitor economy through international marketing joint ventures, the continuation of the Auckland domestic campaign and support for tourism product development. Supporting the attraction and delivery of business events and major events such the Dick Smith NRL Auckland Nines, The World Masters Games 2017, a Māori Signature Festival for Auckland, and the Auckland Lantern, Diwali and Pasifika festivals. Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. Events can cause some inconvenience for some members of the community due to noise, restriction of traffic movement and adverse environmental effects such as littering. Our response: Events are monitored by council staff to ensure event organisers manage the potential for inconvenience to a minimum via waste management plans, traffic management plans and compliance with event-specific consent conditions. Activities that contribute to Māori well-being and enable better outcomes with Māori Economic growth and the visitor economy contributes to the following Māori transformational activity key focus area: Whai Rawa Māori economic well-being Activities that achieve this: Māori signature festival developing a Māori signature festival with iwi that celebrates and showcases Māori culture and provides a vehicle to leverage Māori business and investment opportunities Māori economic growth forum delivering a forum that provides networking opportunities, advice and channels to support the ongoing growth of Māori business Māori tourism development programme advocating for and supporting greater Māori presence in Auckland s attractions, public spaces and visitor services, and supporting new and existing Māori tourism business by utilising market intelligence, providing start-up advice and assistance in connecting with export opportunities Iwi investment support as a way to maximise Māori business and investment, we are working with Auckland iwi to identify opportunities to invest and/or co-invest in economic development initiatives that have positive outcomes for Māori. 137

144 Part 2: Our activities 2.2 Economic and cultural development Economic growth and visitor economy Māori cultural showcasing taking all opportunities to showcase Māori culture through key initiatives including major sporting and business events (e.g. NRL 9s) Māori cultural centre facilitating the development of a significant Māori cultural centre in Auckland to celebrate and showcase Māori culture to the world and provide employment and economic development opportunities What it will cost to deliver ATEED s 10-year budget to deliver these activities includes operating costs of $776 million, and capital investment of $9.6 million. In total our planned operating expenditure for Economic growth and visitor economy is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 63,656 **78,274 68, , ,106 Non-rates revenue 12,714 22,000 14,646 99, ,344 *Operating expenditure includes interest and depreciation. **In year 2 the additional expenditure and revenue is in respect of the World Masters Games. At all times, ATEED looks to leverage its expenditure to deliver multiple outcomes. For example, major events help to grow the visitor economy, build Auckland s brand and identity and can also be used to attract business and investment. The table below indicates the distribution of ATEED s expenditure across its six strategic priorities over the next three years of the LTP: Total 100% 2% 1% 2% 90% 11% 24% 20% 80% 22% Build Auckland s brand and identity 70% 18% World Masters Games Percentage of spend 60% 50% 40% 30% 20% 33% 2% 2% 7% 27% 3% 2% 7% 37% 3% 3% 7% Tourism Major events Enable education and talent Grow a skilled workforce Attract business and investment 10% 21% 18% 28% Build a culture of innovation and entrepreneurship 0% 2015/ / /18 Year 1 Year 2 Year 3 138

145 Part 2: Our activities 2.2 Economic and cultural development Economic growth and visitor economy In total our planned capital expenditure for Economic growth and visitor economy is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Innovation & entrepreneurship, incl. 1,581 7, ,624 GridAKL Total 1,581 7, ,624 Total 139

146 Part 2: Our activities 2.2 Economic and Cultural development Regional Facilities Regional Facilities Key activities A regional approach is taken to developing Auckland s vibrant arts, culture and heritage, leisure, sport and entertainment activities. This is achieved by provision of landmark venues, services and strategic partnerships. As the council-controlled organisation charged with delivering high-quality venues and facilities, Regional Facilities Auckland (RFA) stewards our venues and collections in such a way that advances the social and cultural well-being of Aucklanders and contributes to economic growth. RFA owns and manages a number of iconic Auckland venues which include the Auckland Art Gallery, Zoo, Aotea Centre, Mt Smart Stadium, Western Springs Stadium, QBE North Harbour Stadium (QBE), ANZ, Viaduct Events Centre (VEC), Bruce Mason Centre, and The Civic. Regional facilities services are delivered across five key business areas: Auckland Stadiums - manages sports and concerts / entertainment events at Mt Smart, QBE, and Western Springs Stadiums. Examples of recent commercial events include The Eagles, The Foo Fighters, and the Under 20 Rugby World Cup Auckland Conventions offering venues for a wide range of events from large-scale exhibitions and conventions to business meetings and glamorous corporate functions Auckland Art Gallery presentation of memorable exhibitions and public programmes Auckland Live programmes an extensive range of live performing arts and entertainment at major venues across the region, including securing big name shows and concerts. Examples of recent commercial events include Wicked, Jersey Boys, Mary Poppins, Mamma Mia! and Bruce Springsteen. Auckland Zoo cares for and exhibits the largest collection of wildlife in New Zealand Although managed separately, Auckland Council also funds/provides direct support for the Auckland Regional Amenities Funding Board, Auckland War Memorial Museum, and the Museum of Transport and Technology (MOTAT). The cost of this support is reflected in the Governance and support theme. How these activities drive Auckland Plan outcomes Regional Facilities provides a variety of services and facilities that give Aucklanders and our visitors the opportunity to enjoy high-quality arts, culture and recreation. This ranges from the provision of arts programmes and events, art galleries, stadiums, zoos and numerous other venues. This helps drive the following Auckland Plan outcomes of: Healthy Prosperous Loved Creative Māori identity A fair, safe and healthy Auckland By providing the facilities for active participation in recreation and sport. An Auckland of prosperity and opportunity Attracting visitors to attend events unique to Auckland. A beautiful Auckland loved by its people Providing the facilities that visitors would expect from a vibrant world city. A culturally rich and creative Auckland - Providing opportunities to showcase Auckland s unique arts and culture. Te hau o te whenua, te hau o te tangata Celebrating and showcasing Māori culture and identity through arts and culture. 140

147 Part 2: Our activities 2.2 Economic and Cultural development Regional Facilities These activities directly influence the following Auckland Plan targets: Target 3.1: Increase the number of Aucklanders actively participating in the arts from 48 per cent in 2010 to 75 per cent by Target 3.3: Increase the number of annual guest nights in Auckland from 21.1 million in 2010 to 29.5 million by Target 5.2: Increase the number of Aucklanders actively participating in recreation and sport every week from 79 per cent to 90 per cent by Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan targets 2015/ / / / /25 (p. a.) We bring people together and help provide identity through memorable stadium events Number of Commercial Event Days at Stadiums (1) Number of Community Event Days at Stadiums (2) 519 New measure 961 New measure Average Average 990 Visitor Satisfaction with experience at Auckland Stadiums 88% New measure 88% 88% 88% 88% We care for our collections for today and for future generations to enjoy and to bring cultural awareness of Art and Wildlife to Auckland and its visitors Total number of visitors to the Auckland Zoo and Auckland Art Gallery Visitor Satisfaction with experience at Auckland Zoo and the Auckland Art Gallery 1,140,869 1,140,000 1,170,000 1,170,000 1,170,000 Average 1,170,000 94% 88% 90% 90% 90% 90% Number of Māori projects annually 10 New measure Provider of Convention events and live arts and entertainment experiences for Aucklanders and visitors to our city Leader of arts and entertainment in New Zealand Number of publically available Performing Arts Performances programmed by Auckland Live Visitor Satisfaction with experience at Auckland Live Events 825 New measure Average % 95% 90% 90% 90% 90% Notes to table: 1. A commercial event day is either a public ticketed event, an non-ticketed event organised by profit focused entities such as sport franchisee, national/ provincial sports organisations, or a major concert. 2. Examples are free access to sporting clubs, school athletics events, training sessions etc. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. 141

148 Part 2: Our activities 2.2 Economic and Cultural development Regional Facilities Key projects to achieve this Progression of Stadiums Strategy. Working with sporting codes to increase utilisation and financial sustainability of QBE Stadium, Western Springs Stadium, and Mt Smart Stadium. Importantly, the aim is to enhance the customer experience at sports and entertainment events by offering the best quality stadium experience that Auckland can afford to offer. Aotea Precinct Arts and Cultural Hub. Through co-investment with third parties, to create an arts and culture hub at the Aotea centre to enliven and grow the cultural activity of Auckland. This will realise synergies with clustering of regional and national arts groups. Auckland s Zoo infrastructure is over 90 years old and significant asset renewals are planned to cater for increasing international standards of animal care, health and safety and to improve visitor experience and services. Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. Events at RFA facilities can cause some inconvenience for some members of the community due to noise, restriction of traffic movement and adverse environmental effects such as littering. Our response: This is monitored by RFA to ensure event organisers manage the potential for inconvenience to a minimum via waste management plans, traffic management plans and compliance with event-specific consent conditions. Activities that contribute to Māori well-being and enable better outcomes with Māori This group of activity contributes to Māori well-being and enables better outcomes with Māori through engagement with Māori on activities and projects at individual venues and facilities. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $1.3 billion and capital investment of $375 million. In total our planned operating expenditure for Regional facilities is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 116, , , ,040 1,311,051 Non-rates revenue 50,306 51,363 52, , ,560 * Operating expenditure includes interest and depreciation. In total our planned capital expenditure for Regional facilities is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Art gallery collection and renewals ,011 9,256 12,090 Event centre upgrades and renewals 8,185 9,376 15, , ,555 Other regional facility renewals 2,878 1,919 2,660 8,004 15,461 Stadium upgrades and renewals 8,383 12,964 12,116 32,125 65,588 Zoo infrastructure development and 8,255 9,025 12,400 90, ,000 renewals Total 28,619 34,189 43, , ,694 Total Total 142

149 Part 2: Our activities 2.3 Environmental management and regulation NGĀ WHAKAHAERE TAIAO ME NGĀ TURE 2.3 Environmental management and regulation Environmental management and regulation encompasses many services that support Auckland s environments to be safe, sustainable and to enable thriving communities. We work alongside iwi and our community partners to restore and enhance our natural environment. We ensure that we reuse and recycle as much as possible and that our household rubbish gets picked up on collection day. We make sure our homes and businesses do not flood when it rains. We enable strong public health and safety principles to deliver activities ranging from land use to the sale and supply of alcohol, environmental health and animal management are delivered. Included in this theme is civil defence and emergency management which ensures business continuity, crisis management, emergency management, civil defence, rural fire. This service delivery area covers the following groups of activities: Regulation (this includes a range of functions such as resource and building consents, environmental health, animal control, street trading and licensing) Solid waste and environmental services Local environmental management Stormwater management Our 10-year budget to deliver these activities includes operating costs of $5.4 billion and capital investment of over $1 billion. Environmental Management & Regulation Year 1 Year 2 Year 3 Years 4-10 $million 2015/ / / / /25 Total Operating Expenditure ,899 5,374 Capital Expenditure ,007 Some of our top priorities in this area are: Continued delivery of the Waste Management and Minimisation Plan (WMMP), one of our major transformation initiatives and our road map to the aspirational goal of a zero-waste region by This includes: o the continuation of the implementation of the WMMP over a slower timeframe than previously proposed to enable any risks associated with new technologies and funding changes to be carefully managed o moving to a full user-pay regime for refuse collection and the introduction of an enhanced recycling service and organics collection service in urban areas o the introduction of an inorganics collection service in urban areas. Targeted improvements to our stormwater network, with almost $900 million investment planned over the next 10 years, using stormwater as a vehicle to support growth, manage our assets and deliver more sustainable urban design outcomes. To continue to improve the end-to-end integrated planning and consenting model established by the Housing Project Office (HPO). To complete initiatives underway in the Housing Action Plan, including a focus on non-regulatory initiatives to improve housing supply and affordability. To accelerate and grow our work in partnership with iwi and communities to deliver environmental (in particular biodiversity and water quality) and sustainability outcomes. Progress work on public warning systems in case of a civil emergency and develop fire risk management for our rural communities. For a more detailed understanding about this spending area, refer to the group of activities summaries that follow. 143

150 Part 2: Our activities 2.3 Environmental management and regulation Regulation Regulation Key activities Activities in this group include Licensing and Compliance services, Resource Consent, Building Control services and the integrated support provided by the Housing Project Office (HPO). Licensing and Compliance services enable a fair, safe, healthy and vibrant city that is free from nuisance and harm. This is essential to Auckland becoming the world s most liveable city. Services provided include alcohol licensing and compliance, enforcement of Auckland s public nuisance bylaws, licensing and compliance of food and other health premises, responding to noise complaints, and animal management including dog registration, responding to public requests and providing animal shelter services. Resource Consents services ensure that development across Auckland is conducted in an appropriate and sustainable manner. This includes processing resource consents and giving engineering approvals, providing planning information to the community, and monitoring and enforcing resource consent conditions. Building Control services ensure Aucklanders live and work in safe buildings. This is achieved by processing building consent applications, conducting compliance inspections, monitoring domestic swimming pools and undertaking reviews of the earthquake-resistance of relevant buildings. We manage issues and claims relating to building weather tightness, and provide Land Information Memorandum (LIM) reports and other propertyrelated information to members of the public. We also work closely with the government on proposed legislative changes in the building sector, and provide information to the public to assist them with purchasing decisions. The HPO leads the forward land and infrastructure programme (FLIP) and housing policy. It coordinates with Central Government the review of actions to implement the Auckland Housing Accord so that future initiatives are agreed. How these activities drive Auckland Plan outcomes Regulation enforces the rules and bylaws that promote public health, protect Aucklanders from nuisance and harm, ensure we live and work in safe buildings and grow our city in a sustainable manner. The delivery of resource and building consents, along with the work of the HPO, enable the delivery of increased housing supply to meet our current and future demands. This drives the following Auckland Plan outcomes of: Healthy A fair, safe and healthy Auckland By protecting the health of the public and improving our feeling of safety. Removing some of the barriers to meeting housing demands while providing choices to Aucklanders to meet their needs and improving housing affordability. Loved A beautiful Auckland loved by its people Ensure we have a high-quality built environment for present and future generations to enjoy. These activities directly influence the following Auckland Plan targets: Target 1.6: Increase residents perceptions of safety in their neighbourhood from 68% in 2010 to 80% by Target 10.1: Supply 100,000 new dwellings in the period , 170,000 new dwellings in the period and 130,000 new dwellings in the period

151 Part 2: Our activities 2.3 Environmental management and regulation Regulation Target 11.5: Increase residential dwelling construction consents from 3,800 in 2011 to at least 10,000 on average per annum from Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Facilitate and enable the building of affordable and enduring neighbourhoods Number of dwellings and sites consented towards Auckland housing targets (1) Not available New measure 16,000 4,250 Not available Not available Provide safe access to beaches and coastal areas for recreation Deliver a customer focused building consents and compliance monitoring service that meets statutory requirements Deliver timely, cost effective and customer focused resource consent processing services Respond fairly and effectively to excessive noise related incidents and complaints Proportion of time bathing beaches are suitable for contact recreation Percentage of customers satisfied with the overall quality of building control service delivery Percentage of building consent applications processed within 20 working days (2) Percentage of customers satisfied with the overall quality of resource consents service delivery Percentage of nonnotified resource consent applications processed within 20 working days (2) Percentage of notified resource consent applications processed within 70 working days (2) Percentage of requests by iwi that are relevant and within their area of interest that are responded to within three statutory days (3) Percentage of noise complaints responded to within 30 minutes for urban areas or 60 minutes for rural areas 92% 92% 92% 92% 92% 92% 44% 60% 55% 60% 65% 70% 99% 100% 100% 100% 100% 100% 44% 50% 55% 55% 55% 55% 95% 100% 100% 100% 100% 100% 78% 100% 100% 100% 100% 100% 95% 100% 100% 100% 100% 100% 82% 80% 80% 80% 80% 80% 145

152 Part 2: Our activities 2.3 Environmental management and regulation Regulation Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Percentage of complainants satisfied with noise control services 43% New measure 50% 51% 52% 53% Protect public health through licensing and compliance of food, health, and hygiene premises to legislative requirements Protect public health through licensing and compliance of alcohol premises to legislative requirements. Percentage of customers satisfied with the food and hygiene licensing service Percentage of registered food premises graded annually Percentage of D/E (4) graded food premises reinspected within one month Percentage of high risk alcohol premises inspected annually Percentage of customers satisfied with the alcohol licensing services 73% New measure 70% 70% 70% 75% 89% 98% 95% 95% 95% 95% 86% 85% 95% 95% 95% 95% Not available 62% New measure 90% 100% 100% 100% 100% 66% 67% 68% 69% Reduce public nuisance through licensing, education, and the enforcement of relevant bylaws. Percentage of bylaw related requests for service (e.g. illegal signs, public nuisance, street trading) responded to within three days 66% New measure 80% 80% 80% 80% Provide dog, stock, and other animal management services to Aucklanders Percentage of urgent animal management complaints such as dog attacks responded to within one hour 98% 98% 95% 95% 95% 95% Percentage of known dogs that are registered (5) 98% New measure 99% 100% 100% 100% Notes to table: 1. These reflect the Housing Accord targets agreed with Central Government for the period up to 2016/ The working days exclude days where the applicant is providing further information or the processing end date has been extended. 3. Relevant applications are determined by being identified in the consents received report 4. Premises are compared against a list of criteria and assign one of four grades: A (High), B (Good), D (Poor) and E (Unsatisfactory). There is no 'C' grade as all food premises are either above or below 'average' food safety standards 5. Known dogs is a common term in dog control. Whilst the aim is to have 100% of dogs registered there will always be some that have come to the attention of dog control, that have not completed the registration process. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. 146

153 Part 2: Our activities 2.3 Environmental management and regulation Regulation Key projects to achieve this Continue the establishment and support of Special Housing Areas Deliver on new technology enabling digital consent processing Further partnering and collaboration with customers Develop a more integrated regulatory customer experience Work with customers on the transition to the Unitary Plan Implement customer-initiated improvement programmes. Significant negative effects There are no significant negative effects associated with these activities. Activities that contribute to Māori well-being and enable better outcomes with Māori This group of activity does not specifically contribute to Māori well-being or enable better outcomes with Māori. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $2.4 billion and capital investment of $4.3 million. In total our planned operating expenditure for Regulation is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 220, , ,123 1,719,872 2,384,067 Non-rates revenue 155, , ,813 1,288,759 1,763,557 *Operational expenditure includes interest, depreciation and corporate overhead allocation. Total In total our planned capital expenditure for Regulation is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Integrated Bylaw Review 1, ,862 Regulatory activity renewals and ,589 2,413 replacements Total 2, ,589 4,275 Total 147

154 Part 2: Our activities 2.3 Environmental management and regulation Solid waste and environmental services Solid waste and environmental services Key activities Solid Waste services manage the region s kerbside domestic refuse, recycling, hazardous and inorganic waste, public litterbins as well as loose litter. The primary focus since the formation of Auckland Council has been the development and implementation of Auckland s first Waste Management and Minimisation Plan (WMMP). This transformational initiative will help Auckland to become the most liveable city in the world, by aiming for the long-term, aspirational goal of zero waste by 2040, turning its waste into resources. Environmental services deliver improved environmental outcomes that contribute to Māori, community wellbeing and economy. The priorities are: flourishing indigenous biodiversity clean waters Aucklanders connected with nature and adopting environmentally responsible lifestyles 1. These initiatives will help Auckland to become the most liveable city in the world by ensuring that Aucklanders continue to enjoy a high-quality natural environment. Civil Defence and Emergency Management is responsible for business continuity, crisis management, emergency management, civil defence, rural fire and harbour master activities. This includes ensuring effective response to, and recovery from, civil defence emergencies through sound relationships, planning and exercising with the community and stakeholders. How these activities drive Auckland Plan outcomes Solid waste and environmental services develop, promote and implement projects and programmes that deliver on improved environmental outcomes. This drives the following Auckland Plan outcomes of: Green A green Auckland Through protecting our natural heritage and managing our natural resources sustainably. Managing Auckland s waste and reducing our reliance on landfills. Māori identity Te hau o te whenua te hau o te tangata By empowering mana whenua to participate in natural resource management decision-making processes to realise shared aspirations and mutual outcomes and protect our Māori cultural heritage These activities directly influence the following Auckland Plan targets: Target 7.7: Achieve zero waste to landfill by Target 7.2 Ensure no regional extinctions of indigenous species and a reduction in the number of threatened or at risk species from 2010 levels by 50 per cent to Target 7.3 Reduce the vulnerability of identified ecosystems by ensuring a 95 per cent probability of each ecosystem type being in a viable state by Environmentally responsible lifestyles defined as living in a manner that minimises consumption of resources (energy, water and materials) and adverse impacts on our indigenous biodiversity, air and water quality. 148

155 Part 2: Our activities 2.3 Environmental management and regulation Solid waste and environmental services Target 7.5 Reduce air pollutant emissions (PM10) by 50 per cent by 2016 (based on 2006 levels) to meet national and international ambient air quality standards and guidelines, and achieve a further 20 per cent reduction of air pollutant emissions by Target Increase the proportion of residents who understand their risk from natural hazards and are undertaking measures to mitigate or reduce their risk from 2011 levels to 80 per cent by Target Reduce the overall yield of suspended sediment to priority marine receiving environments from 2012 levels by 15 per cent by Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Manage land use and development on the council's closed landfills to safeguard the region's environment, productivity and economic value of soil Percentage of the council controlled closed landfill discharge consents achieving category one or two compliance ratings 100% 97% 98% 98% 98% 98% Facilitate action to restore the quality of Auckland s waterways and harbours Proportion of catchments where sources of key contaminants are identified and impact mitigation measures are in place 10% Less than 12.5% 10% 30% 30% 30% Proportion of catchments with stable or improving Macroinvertebrate Community Index (MCI) (1) 8% New measure 8% 11% 11% 11% Length (kms) of waterways protected annually with riparian planting and/or fencing New measure Support Aucklanders to reduce their environmental footprint through effective education, communications, programmes and community driven projects Proportion of schools participating in sustainability education programmes 58% New measure 58% 58% 58% 58% Enhance the region s biodiversity by actively managing and improving the extent of indigenous ecosystems and species and by promoting biodiversity best practice Number of hectares of new forest or wetland habitat established on regional parks Percentage of indigenous ecosystems under active management % 68% (2) 68% 68% 68% 68% 149

156 Part 2: Our activities 2.3 Environmental management and regulation Solid waste and environmental services Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Percentage of threatened species under active management 34% 29% 34% 34% 34% 34% Reduce the impact of pest animals, plants and pathogens on the natural environment Plan and provide reliable household waste management and processing service Plan and enable reliable waste minimisation Provide emergency management and rural fire capability to manage fire and emergencies quickly and effectively Provide education, support, and training to develop a resilient community Percentage land area with less than 5% residual trap catch for possums (3) Proportion of kauri areas on Auckland Council land that have active management or exclusion measures in place for kauri dieback disease Number of hectares under community pest control Percentage of customers satisfied with overall reliability of waste collection services Domestic kerbside refuse per capita per annum Total number of Resource Recovery Facilities (4) Percentage of incidents requesting attendance by New Zealand Fire Service responded to within 12 minutes Percentage of Aucklanders prepared at home for an emergency 50% 50% 50% 51% 52% 55% New measure 50% 55% 60% 70% 100% 85,000 62,000 88,000 89,000 90,000 93,000 New measure 150kg New measure Less than or equal to % 76% 76% 76% 160kg 160kg 110kg 110kg Not available New measure 89% 90% 92% 94% 21% 27% 30% 33% 36% 39% Percentage of Aucklanders covered by Community Response Plans 35% 55% 75% 95% 100% 100% Notes to table: 1. MCI measures freshwater insect species type and abundance to indicate water quality. 2. The published target of 5% in the Annual Plan 2014/15, was established ahead of us completing our full technical assessment of the number of ecosystem types in Auckland. The data presented was based on an estimate of ecosystems being actively protected based on preliminary information. 3. A nationally recognised index for possum abundance as measured by the number of animals caught per 100 trapping nights. 4. A Resource Recovery Facility is a facility in the community where the public can drop off reusable and recyclable items. Resource Recovery Facilities can vary greatly - from simple drop off stations in small rural areas through to large eco-industrial parks. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. 150

157 Part 2: Our activities 2.3 Environmental management and regulation Solid waste and environmental services Key projects to achieve this Establishment of a regional Resource Recovery Network supported by Community Recycling Centres Introduction of an organics collection service in the urban areas of Auckland. Delivery of a consistent on-property pre-booked inorganic collection service, user charge refuse and enhanced recycling service; Accelerated programmes to empower community groups to work in partnership with Auckland Council to improve environmental outcomes; Integrated catchment management to improve the health of our waterways and harbours; Indigenous species and ecosystem management supported by pest weed and animal control to protect and enhance native biodiversity, including creation of key green corridors across the region; Rural and urban land use management interventions to improve water quality. Rollout of regional programmes to educate and incentivise sustainable living (including Retrofit Your Home). Update and work with our communities on volcanic, tsunami and local board hazard plans and improve our public warning systems. Develop Fire Risk Management and reduction strategies to reduce the likelihood and consequence of wildfire to our rural communities. Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. One of the negative effects for this group of activities is on the environment through depositing of waste in landfills. There is some visual pollution of the environment during refuse collection times. Refuse may also cause odour, public health issues, the obstruction of footpaths and could be blown into private properties, waterways or be illegally dumped. Emissions of odours, spread of disease and water/land contamination should waste contracts not be performed as specified to collect and correctly dispose of waste. Our response: We will continue to reduce the quantity of waste going to landfill through full implementation of the Waste Management and Minimisation Plan and proven waste minimisation strategies. We continue to educate residents in waste minimisation behaviours and collection best practice, for example, reducing the time between putting out the refuse and its collection. Council will monitor services and enforce contractual terms to ensure contractor requirements are complied with. To manage the risk of pest plants and pest animals on our indigenous biodiversity and primary productivity our biosecurity activities may result in negative impacts due to the use of toxins. Agrichemical use is but one tool for the management of these pests and its use is subject to legislative conditions, environmental best practice, and safety and environmental audits. Our response: To manage the potential negative effects arising from agrichemical use council complies with all appropriate standards and regulations. This ensures that any negative effects are avoided, minimised or mitigated. 151

158 Part 2: Our activities 2.3 Environmental management and regulation Solid waste and environmental services Activities that contribute to Māori well-being and enable better outcomes with Māori The work undertaken in this group of activity is of particular significance to mana whenua. Work is underway to determine which activities specifically contribute to Māori transformational key focus areas and updated in the Annual Plan. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $1.9 billion and capital investment of $130 million. In total our planned operating expenditure for Solid waste and environmental services is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 151, , ,814 1,425,438 1,919,676 Non-rates revenue 33,980 40,772 51, , ,738 *Operational expenditure includes interest, depreciation and corporate overhead allocation. Total In total our planned capital expenditure for Solid waste and environmental services is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Emergency management asset upgrades 1,526 1,509 1,590 5,047 9,672 and renewals Environmental remediation and 4,733 4,641 4,413 25,681 39,468 improvements Solid waste upgrades and renewals 21,924 7,776 3,592 47,269 80,561 Total 28,183 13,926 9,595 77, ,701 Total 152

159 Part 2: Our activities 2.3 Environmental management and regulation Local environmental management Local environmental management Key activities Local environmental management activities work in partnership with locally based communities and iwi to deliver enhanced environmental outcomes (with a focus in indigenous biodiversity, healthy waterways and sustainable living) that contribute to Māori, community wellbeing and the economy. This is achieved through habitat restoration, species management, native planting, water quality improvements, support for community environmental advocacy and education. Local boards play a key role in this area by facilitating community-led environmental place making projects and decision making responsibility for local environmental initiatives and projects. How these activities drive Auckland Plan outcomes Local environmental management ensures the diversity and character of local areas is protected and or enhanced resulting in an increased sense of wellbeing for residents of those areas and Aucklanders as a whole. This drives the following Auckland Plan outcomes of: Green A green Auckland Through working with local boards and communities on a range of initiatives that protect and restore important environments and waterways though participating in environmental programmes and partnering with trusts and volunteers to deliver these programmes. Loved A beautiful Auckland loved by its people Through ensuring that our natural environment and heritage is valued, understood and celebrated. These activities directly influence the following Auckland Plan targets: Target 7.2 Ensure no regional extinctions of indigenous species and a reduction in the number of threatened or at risk species from 2010 levels by 50 per cent to Target 7.3 Reduce the vulnerability of identified ecosystems by ensuring a 95 per cent probability of each ecosystem type being in a viable state by Target 7.5 Reduce air pollutant emissions (PM10) by 50 per cent by 2016 (based on 2006 levels) to meet national and international ambient air quality standards and guidelines, and achieve a further 20 per cent reduction of air pollutant emissions by Target Increase the proportion of residents who understand their risk from natural hazards and are undertaking measures to mitigate or reduce their risk from 2011 levels to 80 per cent by 2040 Target Reduce the overall yield of suspended sediment to priority marine receiving environments from 2012 levels by 15 per cent by

160 Part 2: Our activities 2.3 Environmental management and regulation Local environmental management Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Provide leadership & support to protect and conserve the region s natural environment, historic heritage and Māori cultural heritage Note to table: Proportion of environmental programmes led or supported, with Māori participation (1) 1. This local measure is only measured regionally 15% New measure 15% 15% 15% 15% Level of service statement Provide leadership & support to protect and conserve the region s natural environment, historic heritage and Māori cultural heritage Performance measure Proportion of local programmes that deliver intended environmental actions and/or outcomes Local Boards Long-term Plan Targets 2015/ / / / /25 (p. a.) All other Local Boards 80% 85% 90% 90% Franklin, Orākei & Rodney 100% 85% 90% 90% See volume 3, Local Boards for a comparison to current performance. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this Continue to work closely with community groups and iwi to improve water quality and biodiversity, for example, through the Waicare programme Ongoing delivery of local board funded ecological restoration initiatives Implementation of sustainable catchments programme Ongoing pest weed and animal control in local hot spots Tailoring of regional programmes to educate and incentivise sustainable living (including Retrofit Your Home). Significant negative effects There are no significant negative effects associated with these activities. Activities that contribute to Māori well-being and enable better outcomes with Māori The work undertaken in this group of activity is of particular significance to mana whenua. Work is underway to determine which activities specifically contribute to Māori transformational key focus areas and updated in the Annual Plan. Presently, this group of activity partners and works with mana whenua on projects and activities that realise shared aspirations and mutual outcomes and benefits. 154

161 Part 2: Our activities 2.3 Environmental management and regulation Local environmental management What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $50 million. There is no operating revenue or planned capital expenditure for this group of activity, as all capital projects are delivered under the solid waste and environmental services group of activity. In total our planned operating expenditure for Local environmental management is as follows: Operating cost $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 5,265 5,028 4,854 35,248 50,395 *Operational expenditure includes interest, depreciation and corporate overhead allocation. Total 155

162 Part 2: Our activities 2.3 Environmental management and regulation Stormwater management Stormwater management Key activities Activities in this group include the operation and maintenance of an extensive network of built and natural stormwater infrastructure. This involves the planning, design, construction and management of new stormwater networks, the investigation of Auckland s freshwater catchments and receiving waters to better understand and manage flood risk and the effects of stormwater on streams, groundwater and coastal waters in a city that is growing rapidly. This activity will continue our investment in stormwater infrastructure for reasons of safety and environmental protection, providing for renewals, priority growth areas, Special Housing Areas and some environmental and flood protection projects. Investment in environmental protection from stormwater discharges in priority catchments. This investment programme includes the Healthy Waterways project which will be a key vehicle for delivering improved levels of service in this area. The council will also deliver on a new level of service that will measure the length of streams degraded vs the length of stream improved, with a target ratio of 3kms improved stream for every one km degraded. Under the Local Government Act, councils are required to show flood protection and control works to manage assets owned by local authorities and designed to protect urban and rural areas from flooding from rivers, as a separate group of activities. Due to the relatively short river catchments in the Auckland Region Auckland Council does not have any flood protection and control works of a size and scale that fit within this definition. Therefore, the council manages any minor flood protection and control works within our operational stormwater activities. The council has no major flood protection and control works, and so does not meet the threshold for the flood protection and control work performance measures. How these activities drive Auckland Plan outcomes Improving Auckland s stormwater drainage network and flood protection and control is a part of our commitment to quality infrastructure needed to reach the outcome of a green Auckland with streams, coastline and harbours that are healthy and full of life. This drives the following Auckland Plan outcomes of: Green A green Auckland By ensuring the effects of runoff to the environment are managed and our stormwater network is robust to cater for urban growth and changing environmental conditions Māori identity Te hau o te whenua, te hau o te tangata by empowering mana whenua to participate in natural resource management decision-making processes to realise shared aspirations and mutual outcomesand protect our Māori cultural heritage. 156

163 Part 2: Our activities 2.3 Environmental management and regulation Stormwater management Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Enhance and protect the stormwater receiving environments for the people of Auckland through sustainable management of the stormwater system. Proportion of mana whenua satisfied with Auckland Council s engagement with iwi in relation to stormwater projects Not available New measure 10/19 10/19 10/19 10/19 Manage the stormwater network to minimise the risks of flooding to Aucklanders The number of flooding events that occur and the associated number of habitable floors affected per 1000 properties connected to Auckland Council s stormwater network Not available New measure 1 per 1000 properties 1 per 1000 properties 1 per 1000 properties 1 per 1000 properties The median response time to attend a flooding event, measured from the time that Auckland Council receives notification to the time that service personnel reach the site 1.6 hours New measure 2 hours 2 hours 2 hours 2 hours Stormwater manholes that pop open in flood events are made safe within two hours 100% 100% 100% 100% 100% 100% The number of complaints received about the performance of the stormwater system per 1000 properties connected to Auckland Council s stormwater system 0.91 per 100 properties New measure 3 per 1000 properties 3 per 1000 properties 3 per 1000 properties 3 per 1000 properties 157

164 Part 2: Our activities 2.3 Environmental management and regulation Stormwater management Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Enhance and protect the stormwater receiving environments through sustainable management of the stormwater system Auckland Council stormwater compliance with resource consents for discharge from its stormwater system, measured by the number of: a) abatement notices; and b) infringement notices; and c) enforcement orders; and d) successful prosecutions, received in relation those resource consents Not available New measure The ratio of length of watercourse consented to be physically improved versus physically degraded in the current year (1) Not available New measure 3:1 3:1 3:1 3:1 Note to table: 1. Physically Improved - includes daylighting, naturalisation, riparian protection and enhancement, and in stream enhancement features Physically Degraded - includes piping, lining and other structures that contribute negatively to the environment. Excludes: Water quality aspects of watercourse improvement and degradation such as contaminants and temperature. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this The key priorities of this activity over the next ten years are grouped into the following four categories: 1. Asset operation or renewals: effective operation, maintenance and renewal of the assets we already have to ensure optimum performance and maintain existing levels of service. 2. Growth: Develop the stormwater network in a cost effective manner to enable growth in accordance with Auckland Council s growth priorities and special housing areas. 3. Flooding: Manage the stormwater network and flood protection schemes to minimise the risks of flooding to Aucklanders. 4. Environmental Improvement: Enhance and protect the stormwater receiving environments for the people of Auckland through sustainable management of the stormwater network and the delivery of the healthy waterways programme. Key projects for delivery over the next ten years include: Artillery Tunnel A tunnel From McLennan Park to Pahurehure Inlet to enable development of the Takanini growth areas. Takanini Conveyance Cascades - a new open channel incorporating cascading weirs and associated green space to also enable development of the Takanini growth areas. 158

165 Part 2: Our activities 2.3 Environmental management and regulation Stormwater management Ports of Auckland Outfall a replacement stormwater pipeline from the south side of Quay Street across Ports of Auckland to the Waitemata Harbour. Oakley Creek Conveyance a major upgrade of culverts and widening of Oakley Creek through Walmsley Park to address flood issues and to facilitate intensification and redevelopment in the upper catchment. Freemans Bay Outfall a new stormwater pipeline in the area to address surface flooding issues in Daldy Street, Fanshawe Street and parts of Victoria Street and Victoria Park. A collaborative project with NZTA, AT and WSL to resolve flooding and contamination issues. Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. Stormwater which is not treated can pollute harbours by transporting environmental contaminants. It can also degrade streams and rivers in heavy rainfall, and cause property damage as well as potentially impact on the environment with associated health risks. Our Stormwater activity seeks to actively manage these kinds of impacts. We are enhancing our current treatment programme to reduce the effects of stormwater. We will work with, and where necessary regulate, industry and developers to reduce pollutant loads at their source or install treatment devices to remove contaminants from stormwater in sensitive areas. We are also actively looking at water sensitive design options to better manage and filter stormwater contaminants. Our regular maintenance programme will help reduce risks. Activities that contribute to Māori well-being and enable better outcomes with Māori The work undertaken in this group of activity is of particular significance to mana whenua. Work is underway to determine which activities specifically contribute to Māori transformational key focus areas and updated in the Annual Plan. Presently, this group of activity partners and works with mana whenua on projects and activities that realise shared aspirations and mutual outcomes and benefits. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $1 billion and capital investment of $872 million. There is no operating revenue for this group of activity. In total our planned operating expenditure for Stormwater management is as follows: Operating cost $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 100, ,383 99, ,987 1,019,084 *Operational expenditure includes interest, depreciation and corporate overhead allocation. In total our planned capital expenditure for Stormwater management is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Stormwater - Catchment plans 8,180 8,212 8,400 59,020 83,812 Stormwater - Environmental 8,325 2,185 6,439 15,971 32,920 improvements Stormwater - Flood protection 11,425 3,562 8,257 70,194 93,438 Stormwater - Growth 39,009 38,262 35, , ,800 Stormwater - Renewals 14,730 25,232 20, , ,500 Total 81,669 77,453 78, , ,470 Total Total 159

166 Part 2: Our activities 2.3 Environmental management and regulation Stormwater management 160

167 Part 2: Our activities 2.4 Governance and support TUMU WHAKARAE ME NGĀ TAUTOKO 2.4 Governance and support Auckland Council has 170 elected members governing Auckland for the benefit of their ratepayers, citizens and communities. Other decision-makers also have an important role in governance matters, including members of the Independent Māori Statutory Board, Hearing Commissioners, CCO boards and mana whenua partners in co-governance and co-management arrangements. We support our decision-makers in their roles through a mixture of technical and dedicated support services. These areas also support frontline staff to deliver services to customers. Our internal facing business support services which are included in organisational support is allocated across the groups of activities as these costs support the departments delivering services and the organisation as a whole. Our commercial investments, managed through ACIL, bring a strong commercial focus to the ownership and management of the council s investments in Ports of Auckland, Auckland International Airport Limited and Auckland Film Studio Limited to provide an efficient structure for the ownership of these assets. Our funding of the Auckland Regional Amenities Funding Board, Auckland War Memorial Museum, MoTAT and COMET is provided for in this theme. This area covers the following groups of activities: Regional governance Local governance Investment Organisational support. Our 10-year budget to deliver these activities includes operating costs of $4.2 billion, and capital investment of $1.3 billion. Governance and Support Year 1 Year 2 Year 3 Years 4-10 $million 2015/ / / / /25 Total Operating Expenditure ,958 4,203 Capital Expenditure ,330 Some of our top priorities in this area will be: Continued delivery of efficiency savings targets (this means doing the same for less). In addition to the $183 million savings already realised since amalgamation, we are targeting further savings of $41 million in year 1 of the LTP and continued increases across the 10 years. Transformation work that supports our objectives to become a high performance organisation. To support and guide Auckland Council to lead and influence better outcomes with Māori that also benefit Auckland as a whole. For a more detailed understanding about this spending area, refer to the group of activities summaries that follow. 161

168 Part 2: Our activities 2.4 Governance and support Regional Governance Regional Governance Key activities The activities within this group enable the Mayor and Councillors to perform their governance role effectively. The activities ensure the democratic process operates smoothly and enables participation by the public, Māori, and all necessary stakeholders. The activities include running elections; providing support to the mayoral office, Councillors and CCOs; supporting the decision-making process of the governing body and its committees; providing guidance and support to elected members to support their relationships with mana whenua and Māori communities, and enabling effective Māori participation in the council s regional governance processes. It also includes administering remuneration and expenses of elected members, running hearings and supporting advisory panels and boards. Our funding of Auckland Regional Amenities Board, Auckland War Memorial Museum, MoTAT and COMET is included in this group of activity. How these activities drive Auckland Plan outcomes Regional Governance supports all of the Auckland Plan outcomes by encouraging participation of all Aucklanders in making decisions on issues that are important to them as individuals as well as to the region as a whole. Healthy Prosperous Green Connected Loved Creative Māori identity Regional Governance contributes to all of the Auckland Plan outcomes by actively supporting elected members to deliver initiatives and engage with communities. These activities directly influence the following Auckland Plan targets: Target 2.1: Increase the number of papakāinga in the Auckland region from 3 to 18 by Target 2.2: Increase the number of reciprocal decision-making processes and arrangements which promote shared governance over matters of significance to iwi from 1 to 16 by Target 2.5: Incorporate the values, culture and beliefs of the Māori people in all Auckland-related policies by Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Ensure communities can easily engage in Council decisionmaking and have access to information Percentage of residents who feel they can participate in Auckland Council decision making Not available New measure 50% 50% 50% 50% 162

169 Part 2: Our activities 2.4 Governance and support Regional Governance Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Percentage of Māori residents who feel they can participate in Auckland council decision making (1) Not available New measure 50% 50% 50% 50% Number of complaints regarding council democratic processes upheld by the Auditor General or Ombudsman Support elected members, council and Māori to work together to achieve better outcomes for Tāmaki Makaurau Auckland and enable Council to effectively contribute to Māori wellbeing Percentage of Māori organisations who consider they have an appropriate working relationship with council Number of formalised relationship arrangements between the council and mana whenua 27% 75% 80% 85% 85% 90% Note to table: 1. The target relates to the previous measures Percentage of Māori residents who feel they can participate in governing body decision-making and Percentage of Māori residents who feel they can participate in local board decision-making. These measures have been combined. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this Trial and implement e-voting as soon as national legislative changes allow it Improve transparency of the Governing Body decision-making by webcasting its key meetings Make better use of technology to support the work of elected members and make it easier for the public to engage with Council Use smarter and more diverse ways to consult and engage with Aucklanders and to enable greater Māori participation in council decision-making processes. Support and enable effective mana whenua participation in the management of natural resources. Pro-actively coordinate council s response to Treaty settlements. Significant negative effects There are no significant negative effects associated with these activities. Activities that contribute to Māori well-being and enable better outcomes with Māori Regional governance contributes to the following Māori transformational activity key focus areas: 163

170 Part 2: Our activities 2.4 Governance and support Regional Governance Whai Painga Māori social well-being Whai Tiaki Māori cultural well-being Whai Tika Effectiveness for Māori Whai Tahinga Treaty of Waitangi Settlements Activities to achieve this: Whānau well-being programme seeking to understand and building on the role of council in contributing to whānau needs and aspirations for tamariki, rangatahi, pakeke and whānau hauā Kaitiakitanga of Tāmaki Makaurau mana whenua planning and capability building programme including funding for the 19 mana whenua tribal authorities to enable their contribution to council s decision-making processes Mataawaka contribution to council decision-making investing in Māori community infrastructure to enable their contribution to council decision-making processes (e.g. stakeholder forums relationship with devolved community funding model) Elections and process engaging local Māori to improve their understanding of the election process as well as increase Māori participation in voting Treaty of Waitangi settlement programme coordinating and responding to Treaty of Waitangi settlements Effectiveness for Māori servicing organisational learning and development programmes by building the understanding, rule and function of departments and CCOs in respect of Māori rights and obligations Nga Kete Akoranga Māori responsiveness organisational learning and development programme to build the council s understanding of its role in respect of taking into account Māori rights and interests and how it can contribute to Māori needs and aspirations. Māori capital projects supporting and contributing to showcasing Auckland s Māori identity by contributing to marae self-sustainability and papakāinga development, cultural facilities, Māori public art and alternative infrastructure. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $1 billion and capital investment of $42 million. In total our planned operating expenditure for Regional governance is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 94, ,714 97, ,889 1,082,182 Non-rates revenue 1,999 3,362 2,103 19,582 27,046 *Operational expenditure includes interest, depreciation and corporate overhead allocation. Included in the operational expenditure is the grant we make to Auckland Regional Amenities Funding Board, Auckland War Memorial Museum, MoTAT and COMET amounting to $655 million over the 10 year period. In total our planned capital expenditure for Regional governance is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Maori transformational shift priorities ,000 42,000 Total ,000 42,000 Total Total 164

171 Part 2: Our activities 2.4 Governance and support Local governance Local Governance Key activities Activities in this group support our 21 local boards to engage with and represent their communities, and make decisions on local activities. This support includes providing strategic advice, leadership of the preparation of local board plans, support in developing Local Board Agreements, community engagement including relationships with mana whenua and Māori communities, and democracy and administrative support. How these activities drive Auckland Plan outcomes Healthy Prosperous Green Connected Loved Creative Māori identity Local Governance contributes to all the of Auckland Plan outcomes by actively supporting local boards to deliver initiatives and engage with communities. The measures for this group of activities are covered under the Regional Governance group of activities where the survey measures determine participation with Auckland Council decision making in general. This includes Local decision making. Key projects to achieve this Provide strategic advice and democratic support for local board members Provide administrative support and professional development for elected members Develop and deliver three-yearly local board plans Develop annual local board agreements (budgets) Support local board input into regional plans, policies, and strategies Support and guide elected members to lead and influence better outcomes with Māori Support effective Māori participation in in local decision-making to enable outcomes with Māori through local decisions. Significant negative effects There are no significant negative effects associated with these activities. 165

172 Part 2: Our activities 2.4 Governance and support Local governance Activities that contribute to Māori well-being and enable better outcomes with Māori This group of activity contributes to Māori well-being and enables better outcomes with Māori through the ongoing development of relationships with mana whenua and local Māori communities. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $300 million. There is no operating revenue or capital expenditure for this group of activity. In total our planned operating expenditure for Local governance is as follows: Operating cost $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 27,472 27,990 29, , ,172 Total *Operational expenditure interest, depreciation and includes corporate overhead allocation. 166

173 Part 2: Our activities 2.4 Governance and support Investment Investment Key activities Auckland Council Investments Limited (ACIL) owns 100 per cent of Ports of Auckland Limited (POAL), 100 per cent of Auckland Film Studios Limited (AFSL), and 22.4 per cent of Auckland International Airport Limited (AIAL). ACIL supports the council s vision and brings a strong commercial focus to the ownership and management of the council s investments in POAL, AIAL and, AFSL to provide an efficient structure for the ownership of these assets. Sound commercial governance of these assets, within the parameters set by the council (while acknowledging that the council/acil will be in a position of some influence, but not control, of AIAL), is important. ACIL s role is to endeavour to maximise their contribution to the Auckland economy and provide substantial financial returns, which are financially sustainable in the long term, to the council. How these activities drive Auckland Plan outcomes ACIL holds equity interests in POAL, AIAL and AFSL for the long-term benefit of the region. These assets contribute to the council s delivery of Auckland Plan outcomes by: Playing an important role in the delivery of the following specific outcomes: Prosperous An Auckland of prosperity and opportunity (POAL, AFSL and AIAL) Influencing the delivery of Auckland Plan economic outcomes, such as those included in the Economic growth and visitor economy group of activities. Overall, ACIL will measure its performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Manage council investments to optimise returns Return on equity (ROE) for ACIL group 26% 12.9% 7.0% 7.4% 11.5% Between 8%-13.5% Key projects to achieve this ACIL focuses on maximising its contribution to the Auckland economy through the investments it owns and provides substantial financial returns, which are financially sustainable in the long term, to the council. 167

174 Part 2: Our activities 2.4 Governance and support Investment Significant negative effects There are no significant negative effects associated with these activities, but there could be some negative effects arising from the activities undertaken by the entities in which the council is investing. Our response: We will closely monitor our investments and use our rights as a shareholder to mitigate any negative effects. Activities that contribute to Māori well-being and enable better outcomes with Māori This group of activity does not specifically contribute to Māori well-being or enable better outcomes with Māori. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $1.9 billion, and capital investment of $614 million. In total our planned operating expenditure for Investment is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 168, , ,270 1,375,556 1,903,537 Non-rates revenue 265, , ,407 2,374,278 3,220,046 *Operating expenditure includes interest and depreciation. The majority of the expenditure relates to the operation of Ports of Auckland Limited. Total In total our planned capital expenditure for Investment is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Ports of Auckland capital 157, ,176 24, , ,417 investment Total 157, ,176 24, , ,417 Total 168

175 Part 2: Our activities 2.4 Governance and support Organisational support Organisational Support Key activities The services provided in this group support the operational functioning of the council, and the day to day services it provides to decision makers (the governing body and local boards) and the public as those receiving the council services. Some of these services directly support quality interactions between the community and the council, such as Customer Services and Communications and Engagement. Auckland Council s Treasury group manages the diversified financial assets portfolio (DFAP) on behalf of the Auckland Council 1. There are also a number of other internal services that keep the council running smoothly, such as People and Capability, Information Services, Finance, Risk Management and Internal Audit, and Legal Services. How these activities drive Auckland Plan outcomes Healthy Prosperous Green Connected Loved Creative Māori identity Organisational Support has an indirect contribution towards delivery of the Auckland Plan through ensuring the council s internal services are adequately resourced internally to undertake delivery of the Auckland Plan. Overall, we will measure our performance against the following levels of service: Long-term Plan Targets Level of service statement Performance measure Actual 2013/14 Annual plan Target 2014/ / / / / /25 (p. a.) Manage the council s diversified asset portfolio investments to optimise returns Rolling 10 year return for diversified financial assets portfolio (1) 12.9% Equal or exceed return on reference portfolio Equal or exceed return on reference portfolio Note to table: 1. Weighted average of various indices relevant to each asset class included in the portfolio. Equal or exceed return on reference portfolio Equal or exceed return on reference portfolio Equal or exceed return on reference portfolio Key projects to achieve this Progressing delivery of the IS Transformation programme, designed to deliver consolidated, standardised and simplified systems and processes to enable delivery of world class services and value for money. Implementing improvements to business processes and systems, and ongoing reviews of operations to drive efficiency and cost savings. 1 Under changes proposed in the council-controlled organisation (CCO) review the management of the DFAP has transferred to Auckland Council s Treasury group. 169

176 Part 2: Our activities 2.4 Governance and support Organisational support Our customer experience programme is building a customer centric organisation. This focuses on taking an "outside in" view when we design and re-design customer experiences and processes. Customer experience will assist to deliver both improvements in reputation and deliver value for money. Digital service is adding new functionality and content to deliver rich digital experiences for customers who prefer these channels. Significant negative effects There are no significant negative effects associated with these activities. Activities that contribute to Māori well-being and enable better outcomes with Māori This group of activity does not specifically contribute to Māori well-being or enable better outcomes with Māori. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $873 million and capital investment of $672 million. Costs incurred in this activity are generally allocated out across groups of activities as a corporate overhead. In total our planned operating expenditure for Organisational support is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 113, , , , ,761 Non-rates revenue 30,341 31,527 32, , ,438 *Operational expenditure includes interest, depreciation and corporate overhead allocation. This group of activity also includes the discounting of weathertightness provision of $44 million. In total our planned capital expenditure for Organisational support is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Corporate property renewals 19,004 14,354 24, , ,410 IT hardware and software 65,584 51,124 44, , ,174 Other organisational support investment Transformation capital investment ,063 Capital delivery timing adjustment 0 15, ,762 64,292 Total 85,336 81,433 69, , ,350 Total Total 170

177 Part 2: Our activities 2.5 Parks, community and lifestyle NGĀ PAPA ĀTEA, HAPORI ME TE ĀHUA NOHO 2.5 Parks, community and lifestyle Auckland Council contributes to make Auckland a vibrant, interesting place to live in, by the provision of a range of facilities, services, and events that help people to be healthy and have fun. These encompass sports, arts, culture, recreation and leisure experiences, via a wide range of facilities such as libraries, pools, fields and parks, and community centres to name a few. This area covers the following groups of activities: Regional community services Local community services Regional parks, sport & recreation Local parks, sport & recreation Our 10-year budget to deliver these activities includes operating costs of $6.4 billion, and capital investment of $2.4 billion. Parks, Community & Lifestyle $million Year /16 Year /17 Year /18 Years / /25 Operating Expenditure ,659 6,355 Capital Expenditure ,681 2,396 Total Some of our key priorities in this area are: To ensure our existing facilities are kept up to scratch (renewals). Making better use of the network assets may mean disposing of poorly utilised or non-performing assets in order to fund new assets and/or reduce the renewals requirements. Because funding constraints mean that we will not be able to maintain all our parks and community assets in their optimal condition from 2018/2019, we will review these asset portfolios to ensure that we are achieving the best value for money. To maintain overall levels of maintenance of parks and cleaning of associated facilities. To introduce a more community empowered approach to delivering activities, including funding community groups to deliver more (with local boards playing an active role in this). To focus new capital expenditure in locations guided by our spatial priorities, and also where growth is occurring, funded where possible by development contributions. To meet the council s commitments and responsibilities in the co-governance arrangements that we are a party to, including with the Maunga Authority. For a more detailed understanding about this spending area, refer to the group of activities summaries that follow. 171

178 Part 2: Our activities 2.5 Parks, community and lifestyle Regional community services Regional community services Key activities The activities in this group include regional activities relating to Libraries & Information (Libraries) and Community Development, Arts and Culture services, which contribute to community development and safety, and influence people's sense of security and quality of life by providing safe public places, events and accessible facilities to enable Aucklanders to gather, learn, share and connect. Regional Library activities support all libraries across the region. They provide expertise and coordination to help ensure that library and information services contribute to the outcomes of the Auckland Plan. Regional Collections select, purchase and distribute print and digital resources which build a broad and deep collection. Heritage and Research preserve, index and digitise Auckland s documentary history, cater to family history researchers and deliver exhibitions, to tell Auckland s stories. Service Development coordinate and develop region wide programmes and events, such as the children s summer reading programme and Matariki, building literacy and enabling Aucklanders to engage with their communities. Digital Services develop and manage the library website and its content, library social media, public computers and self-service technology and the library management system to enable online connection with the world of information. Housing for older persons services provides at least 1,412 social housing units for lower income older people, supporting ageing in place by providing affordable housing based on need. We support tenants to be active, healthy, safe and independent. Community Events issue permits for all events on public spaces. We support, develop and deliver regional, events (e.g. Movies and Music in Parks, Auckland International Cultural Festival Auckland Heritage Festival and civic events). We also administer local and regional event grants. Arts and Culture deliver regional festivals, events and programmes, enable community delivery through administering funding agreements and grants, provide a regional network of permanent public art and manage council s corporate art collections and assets. Arts and culture also support and collaborate with the creative sector and market, and promote creative offerings to Aucklanders. Regional Community Services respond to regional complex social issues using a community empowerment approach. Work focusses on inclusion and equity, communities of interest and identity, Māori responsiveness and partnering and innovation to achieve a collaborative response to issues. A focus is on community engagement in decision making and community capacity building. How these activities drive Auckland Plan outcomes Regional Community Services work at a regional level through supporting and empowering our thriving communities to deliver the following Auckland Plan outcomes of: Healthy A fair, safe and healthy By strengthening our communities through participation, connecting with others and encouraging collaboration to bring about change in the community. Providing access to information, learning and development opportunities for all. Improving community safety and feelings of being safe. Creative A culturally rich and creative Auckland Through celebrating the diverse culture through participation of arts and events which also promote inclusiveness in the community. 172

179 Part 2: Our activities 2.5 Parks, community and lifestyle Regional community services These activities directly influence the following Auckland Plan targets: Target 1.6: Increase residents perceptions of safety in their neighbourhood from 68 per cent in 2010 to 80 per cent by Target 1.12: Increase the proportion of residents who rate a sense of community in their neighbourhood as important from 71 per cent in 2010 to 85 per cent by Target 2.4: Increase targeted support to Māori community development projects by at least 15 projects by Target 3.1: Increase the number of Aucklanders actively participating in the arts from 48 per cent in 2010 to 75 per cent by Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Provide access to a broad range of information in a variety of formats to support reading, discovery and participation. Percentage of customers satisfied with the range of collection items available Percentage of Māori satisfied with the range of collection items available 72% New measure 68% New measure 70% 71% 72% 73% 70% 71% 72% 73% Number of library items borrowed (millions) 16.1 New measure Percentage of items borrowed that are e- collections (e.g. ebooks, eaudiobooks) 3% New measure 5% 10% 15% 25% Percentage of customers satisfied with the Auckland Libraries website 79% New measure 75% 75% 75% 75% Number of visits to the Auckland Libraries website (millions) 7.0 New measure Enable Aucklanders and communities to express themselves and improve their wellbeing through customer centric advice, funding, facilitation and permitting Percentage of successful funding applications (where the main beneficiary is Māori organisations, individuals or Kaupapa Māori) as a percentage of all successful applications Not available New measure 12% 12% 13% 13% Total permitted events taking place across the city 2,533 New measure 2,500 2,500 2,500 2,

180 Part 2: Our activities 2.5 Parks, community and lifestyle Regional community services Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Deliver a variety of events, programmes and projects that improve safety, connect Aucklanders and engage them in their city and communities. Percentage of all assets that are graffiti free across the city Percentage of Aucklanders that feel Auckland is an eventful, fun and exciting city 94% 85% 92% 93% 94% 95% Not available New measure 70% 70% 72% 72%-75% Percentage of Aucklanders that feel art and culture is part of their everyday life Not available New measure 60% 65% 70% 75% Provide safe, reliable and accessible social infrastructure for Aucklanders that contributes to placemaking and thriving communities Note to table: Percentage of tenants satisfied with provision and management of 'housing for older people' 75% 80% 70% 72% 75% 80% New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this Recognise and celebrate important Auckland anniversaries and commemorations through a programme of events Develop and implement a comprehensive community asset renewals programme that delivers against Strategic Asset Management Plans Improve coherence of information and communications about Auckland s creative offerings and arts and culture activities Map public and community artworks across Auckland and identify priority areas for future projects The council will partner with a third-party social housing provider by entering into a management agreement over the council s Housing for Older People (HfOP) portfolio of assets. The long-term partnering arrangement between the council and the third-party social housing provider will result in a new legal entity in the form of a Community Housing Provider (CHP) in which the council will have a minority interest. The council will transfer control over the HfOP portfolio assets, which includes responsibility for maintenance and tenancy services, to the CHP. Legal ownership of the HfOP portfolio will remain with the council. The council will also delegate to Development Auckland Limited (Panuku), a council-controlled organisation, the authority to act on behalf of Auckland Council to work with the third-party social housing provider to redevelop the HfOP portfolio. Panuku, as Auckland Council s development agency, will provide skills and expertise to support the development of the HfOP portfolio. This includes, over time, selling some HfOP portfolio land and buildings to help fund the improvement of the quality of the HfOP portfolio. The HfOP Partnering Policy contained in Part 3 of this document provides more detail and the parameters and criteria for these arrangements. Develop and run regional library events and programmes 174

181 Part 2: Our activities 2.5 Parks, community and lifestyle Regional community services Develop and maintain the library collections Digitise and preserve library heritage collections and deliver exhibitions Improve employment options and outcomes for young people through the Youth Connections Project Implementation of the Community Grants Policy Development and implementation of the Community Facilities Network Plan which will guide provision and investment in community facilities to meet community needs and the demands of growth. Partnership with Auckland Theatre Company and the Waterfront Theatre Trust on the development of a new 600 seat theatre on the waterfront. Significant negative effects There are no significant negative effects associated with these activities. Activities that contribute to Māori well-being and enable better outcomes with Māori Regional community services contributes to the following Māori transformational activity key focus areas: Whai Painga Māori social well-being Whai Tiaki Māori cultural well-being Whai Tika Effectiveness for Māori Activities to achieve this: Matariki festival promoting Māori arts and culture by celebrating the Māori New Year that begins with the rising of the Matariki start constellation Waitangi Day events supporting Māori community led delivery of Waitangi Day events (e.g. Barry Curtis Park, Hoani Waititi and Takaparawha). The events focus on educating attendees on the strength and honour of the Treaty of Waitangi partnership and foster understanding of Treaty principles. Portage crossing supporting Māori community-led delivery of an event linking Te Ao Māori and heritage of the portage crossing to a contemporary waka race Māori programmes (art and culture) developing and delivering regional Māori arts and culture programmes. This can include but is not limited to performing arts, cultural events and other artistic events that showcase Te Ao Māori. Māori collections Māori content in library collections to promote te reo Māori and to provide access to Māori knowledge, heritage and identity Māori programming and services Matariki, Te Tiriti o Waitangi, te reo and wānanga programming that promotes learning about the place of Te Tiri o Waitangi in Aotearoa Staff training and development courses and increasing development as part of Māori Responsiveness Plan implementation Māori programmes community development discretionary funding that assists Māori community organisations to deliver Māori initiatives, projects have included support to iwi organisations to deliver waste management programs, and waka events. 175

182 Part 2: Our activities 2.5 Parks, community and lifestyle Regional community services What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $908 million and capital investment of $220 million. In total our planned operating expenditure for Regional community services is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 76,753 80,573 86, , ,743 Non-rates revenue 13,337 13,524 13, , ,670 *Operational expenditure includes interest, depreciation and corporate overhead allocation. Total In total our planned capital expenditure for Regional community services is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Events equipment upgrades and renewals Housing for older persons renewals 7,625 2,927 2,809 29,162 42,523 Library collection - new facilities ,554 Library collection renewals 13,165 12,989 12,801 91, ,212 Library facility and technology renewals 4,779 1,442 2,529 20,750 29,500 Public art development and renewals 2,568 2,680 2,821 7,827 15,895 Total 28,202 20,103 21, , ,413 Total 176

183 Part 2: Our activities 2.5 Parks, community and lifestyle Local community services Local community services Key activities The activities within this group contribute to improved community outcomes by providing places and spaces for community to learn and recreate, and by integrating arts and culture into the everyday lives of Aucklanders. Key activities include locally delivered Libraries & Information (Libraries) and Community Development, Arts and Culture services. Local library services are delivered across 21 local board areas from the 54 community libraries and the Central City Library. Every day 35,000 Aucklanders visit to learn, read and relax, with access to a wide range of free resources including books, e-books, magazines, Wi-Fi, public computers and community meeting rooms. Every year 462,000 participants attend a wide range of programmes in libraries that range from pre-school Wriggle and Rhyme programmes, CV and job search seminars or local history and literature events. Library outreach services are also provided to support schools, events, and people who face access barriers. Community Facilities provides places in the community where all Aucklanders can come together to learn, grow, have fun and foster real community spirit. The unit supports and manages 62 community houses and centres, 120 venues for hire and 1300 subsidised community and recreation lease spaces. Arts and Culture activities include a network of 40 local arts and culture facilities, development and delivery of local art and culture programmes, funding and support for community art and culture organisations, and commissioning and support for temporary and permanent art in public places. Events activities facilitate community events, permits for all events on public spaces in Auckland, supports, develops and delivers local events (e.g. ANZAC Day, Christmas events, volunteer awards and civic events) and administers local events grants. Community development and safety activities include management of the council s community funding programme, services relating to communities, services at sector level, support for place based community led development and support for planning and action of local board community priorities. How these activities drive Auckland Plan outcomes Local Community Services support and empowers our thriving communities which help drives the following Auckland Plan outcomes of: Healthy A fair, safe and healthy Auckland By strengthening our communities through participation, connecting with others and encouraging collaboration to bring about change in their community. Providing access to information, learning and development opportunities for all. Improving community safety and feelings of being safe. Creative A culturally rich and creative Auckland Through celebrating the diverse cultures and participating in arts and events which also promote inclusiveness in the community. These activities directly influence the following Auckland Plan targets: Target 1.6: Increase residents perceptions of safety in their neighbourhood from 68 per cent in 2010 to 80 per cent by Target 1.12: Increase the proportion of residents who rate a sense of community in their neighbourhood as important from 71 per cent in 2010 to 85 per cent by

184 Part 2: Our activities 2.5 Parks, community and lifestyle Local community services Target 3.1: Increase the number of Aucklanders actively participating in the arts from 48 per cent in 2010 to 75 per cent by Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Deliver a variety of events, programmes and projects that improve safety, connect Aucklanders and engage them in their city and communities Note to table: Percentage of Aucklanders that feel connected to their neighbourhood and local community (1) 1. This measure is measured both regionally and locally 74% Not available 75% 77% 79% 81%-83% Level of service statement Performance measure Local Board Long Term Plan Targets 2015/ / / / /25 (p. a.) Provide safe, accessible, welcoming library facilities that support the delivery of quality learning programmes and services relevant to local communities. Use of libraries as digital community hubs: Number of internet sessions per capita (PC & WiFi) Number of visits to library facilities per capita Albert-Eden Devonport-Takapuna Franklin Great Barrier Henderson-Massey Hibiscus and Bays Howick Kaipātiki Māngere-Ōtāhuhu Manurewa Maungakiekie- Tāmaki Orākei Ōtara-Papatoetoe Papakura Puketāpapa Rodney Upper Harbour Waiheke Waitākere Ranges Waitematā Whau Albert-Eden Devonport-Takapuna Franklin Great Barrier Henderson-Massey Hibiscus and Bays Howick

185 Part 2: Our activities 2.5 Parks, community and lifestyle Local community services Level of service statement Performance measure Local Board Long Term Plan Targets 2015/ / / / /25 (p. a.) Enable Aucklanders and communities to express themselves and improve their wellbeing through customer centric advice, funding, facilitation and permitting Deliver a variety of events, programmes and projects that improve safety, connect Aucklanders and engage them in their city and communities Percentage of customers satisfied with the quality of library service delivery Percentage of visitors satisfied with the library environment Percentage of funding/grant applicants satisfied with information, assistance and advice provided Percentage of participants satisfied with council delivered local arts activities (1) Percentage of Aucklanders that feel connected to their neighbourhood and local community Kaipātiki Māngere-Ōtāhuhu Manurewa Maungakiekie- Tāmaki Orākei Ōtara-Papatoetoe Papakura Puketāpapa Rodney Upper Harbour Waiheke Waitākere Ranges Waitematā Whau All other Local Boards 85% 85% 85% 85% Franklin 91% 85% 85% 85% Howick 88% 88% 88% 88% Rodney 90% 85% 85% 85% Waitematā 92% 93% 94% 94% All other Local Boards 85% 85% 85% 85% Franklin 92% 85% 85% 85% Howick 88% 88% 88% 88% Rodney 90% 85% 85% 85% Waitematā 90% 91% 92% 93% All other Local Boards 75% 76% 78% 80%-82% Upper Harbour 65% 76% 78% 80%-82% All other Local Boards 80% 85% 85% 85% Albert-Eden 75% 85% 85% 85% Manurewa, Ōtara- Papatoetoe, Papakura and Waitematā Franklin and Māngere-Ōtāhuhu Albert-Eden 90% 90% 90% 90% 85% 85% 85% 85% 70% 72% 74% 76% - 78% Devonport-Takapuna 75% 77% 79% 81%-83% Franklin 72% 74% 76% 78%-80% Great Barrier 80% 82% 84% 86%-88% Henderson-Massey 77% 79% 81% 83%-85% Hibiscus and Bays 77% 79% 81% 83%-85% Howick 78% 80% 82% 84%-86% 179

186 Part 2: Our activities 2.5 Parks, community and lifestyle Local community services Level of service statement Performance measure Local Board Long Term Plan Targets 2015/ / / / /25 (p. a.) Provide safe, reliable and accessible social infrastructure for Aucklanders that contributes to placemaking and thriving communities Percentage of attendees satisfied with council delivered and funded local events Percentage of Aucklanders that feel their local town centre is safe Kaipātiki 75% 77% 79% 81%-83% Māngere-Ōtāhuhu 77% 79% 81% 83%-85% Manurewa 75% 77% 79% 82%-84% Maungakiekie- Tāmaki 73% 75% 77% 79%-81% Orākei 75% 77% 79% 81%-83% Ōtara-Papatoetoe 75% 77% 79% 81%-83% Papakura 73% 75% 77% 79%-81% Puketāpapa 71% 73% 75% 77%-79% Rodney 75% 82% 84% 86%-88% Upper Harbour 75% 77% 79% 81%-83% Waiheke 80% 82% 84% 86%-88% Waitākere Ranges 74% 76% 78% 80%-82% Waitematā 74% 76% 78% 80%-82% Whau 70% 72% 74% 76%-78% All Local Boards 85% 85% 85% 85% Albert-Eden Day: 85% Night: 37% Devonport-Takapuna Day: 93% Night: 43% Franklin Day: 78% Night: 30% Great Barrier Day: 89% Night: 76% Henderson-Massey Day: 80% Night: 22% Hibiscus and Bays Day: 94% Night: 43% Howick Day: 83% Night: 43% Kaipātiki Day: 86% Night: 35% Māngere-Ōtāhuhu Day: 73% Night: 22% Manurewa Day: 57% Night: 13% Maungakiekie- Tāmaki Day: 75% Night: 23% Day: 86% Night: 39% Day: 93% Night: 45% Day: 79% Night: 32% Day: 90% Night: 77% Day: 81% Night: 24% Day: 94% Night: 44% Day: 84% Night: 44% Day: 87% Night: 37% Day: 74% Night: 24% Day: 58% Night: 15% Day: 76% Night: 25% Day: 87% Night: 40% Day: 93% Night: 46% Day: 80% Night: 33% Day: 90% Night: 77% Day: 82% Night: 26% Day: 95% Night: 45% Day: 85% Night: 45% Day: 87% Night: 39% Day: 75% Night: 25% Day: 59% Night: 17% Day: 77% Night: 27% Day: 89% Night: 42% Day: 93% Night: 49% Day: 82% Night: 35% Day: 92% Night: 79% Day: 84% Night: 30% Day: 95% Night: 47% Day: 87% Night: 47% Day: 89% Night: 42% Day: 77% Night: 27% Day: 61% Night: 19% Day: 79% Night: 29% Orākei Day: 84% Day: 85% Day: 86% Day: 88% 180

187 Part 2: Our activities 2.5 Parks, community and lifestyle Local community services Level of service statement Performance measure Local Board Long Term Plan Targets 2015/ / / / /25 (p. a.) Night: 39% Night: 40% Night: 41% Night: 43% Ōtara-Papatoetoe Day: 79% Night: 19% Day: 80% Night: 20% Day: 81% Night: 21% Day: 83% Night: 24% Papakura Day: 62% Night: 15% Day: 63% Night: 17% Day: 64% Night: 19% Day: 66% Night: 23% Puketāpapa Day: 83% Night: 35% Day: 84% Night: 36% Day: 85% Night: 37% Day: 87% Night: 39% Rodney Day: 85% Night: 55% Day: 92% Night: 52% Day: 92% Night: 53% Day: 94% Night: 55% Upper Harbour Day: 88% Night: 47% Day: 89% Night: 48% Day: 89% Night: 49% Day: 91% Night: 51% Waiheke Day: 94% Night: 82% Day: 94% Night: 82% Day: 95% Night: 83% Day: 95% Night: 84% Waitākere Ranges Day: 82% Night: 30% Day: 83% Night: 32% Day: 84% Night: 34% Day: 86% Night: 37% Waitematā Day: 86% Night: 35% Day: 87% Night: 36% Day: 88% Night: 37% Day: 90% Night: 39% Whau Day: 78% Night: 26% Day: 79% Night: 28% Day: 80% Night: 29% Day: 82% Night: 31% Facility Utilisation - utilisation at peak times and off-peak times for council managed community centres and venues for hire (2) Albert-Eden Peak: 37% Off peak: 19% Devonport-Takapuna Peak: 8% Off peak: 7% Peak: 37% Off peak: 19% Peak: 8% Off peak: 7% Peak: 38% Off peak: 20% Peak: 9% Off peak: 8% Peak: 38% Off peak: 20% Peak: 9% Off peak: 8% Franklin Peak: 14% Off peak: 8% Peak: 14% Off peak: 8% Peak: 15% Off peak: 9% Peak: 15% Off peak: 9% Henderson-Massey Peak: 31% Off peak: 11% Hibiscus and Bays Peak: 26% Off peak: 25% Howick Peak: 33% Off peak: 18% Kaipātiki Peak: 11% Off peak: 3% Māngere-Ōtāhuhu Peak: 37% Off peak: 21% Peak: 31% Off peak: 11% Peak: 27% Off peak: 26% Peak: 33% Off peak: 18% Peak: 11% Off peak: 3% Peak: 38% Off peak: 22% Peak: 32% Off peak: 12% Peak: 28% Off peak: 27% Peak: 34% Off peak: 19% Peak: 12% Off peak: 4% Peak: 38% Off peak: 22% Peak: 32% Off peak: 12% Peak: 28% Off peak: 27% Peak: 34% Off peak: 19% Peak: 12% Off peak: 4% Peak: 39% Off peak: 23% Manurewa Peak: 32% Peak: 33% Peak: 33% Peak: 34% 181

188 Part 2: Our activities 2.5 Parks, community and lifestyle Local community services Level of service statement Performance measure Local Board Long Term Plan Targets 2015/ / / / /25 (p. a.) Percentage of community facilities bookings used for health and wellbeing related activity (2) Number of visitors to community centres and venues for hire (2) Maungakiekie- Tāmaki Off peak: 17% Peak: 27% Off peak: 16% Orākei Peak: 30% Off peak: 19% Ōtara-Papatoetoe Peak: 21% Off peak: 14% Papakura Peak: 15% Off peak: 11% Puketāpapa Peak: 36% Off peak: 24% Rodney Peak: 15% Off peak: 8% Upper Harbour Peak:20% Off peak: 10% Waiheke Peak: 13% Off peak: 8% Waitākere Ranges Peak: 31% Off peak: 19% Waitematā Peak:25% Off peak: 10% Whau Peak: 27% Off peak: 15% Off peak: 17% Peak: 27% Off peak: 16% Peak: 30% Off peak: 19% Peak: 21% Off peak: 14% Peak: 15% Off peak: 11% Peak: 36% Off peak: 25% Peak: 15% Off peak: 8% Peak:20% Off peak: 10% Peak: 14% Off peak: 8% Peak: 31% Off peak: 19% Peak:26% Off peak: 10% Peak: 27% Off peak: 15% Off peak: 18% Peak: 28% Off peak: 17% Peak: 31% Off peak: 20% Peak: 22% Off peak: 15% Peak: 16% Off peak: 12% Peak: 37% Off peak: 26% Peak: 16% Off peak: 9% Peak:20% Off peak: 10% Peak: 14% Off peak: 9% Peak: 32% Off peak: 20% Peak:26% Off peak: 11% Peak: 28% Off peak: 16% Off peak: 18% Peak: 28% Off peak: 17% Peak: 31% Off peak: 20% Peak: 22% Off peak: 15% Peak: 16% Off peak: 12% Peak: 37% Off peak: 26% Peak: 16% Off peak: 9% Peak:20% Off peak: 10% Peak: 14% Off peak: 9% Peak: 33% Off peak: 20% Peak:26% Off peak: 11% Peak: 28% Off peak: 16% All other Local Boards 20%-30% 20%-30% 20%-30% 20%-30% Albert-Eden 448, , , ,925 Devonport-Takapuna 124, , , ,859 Franklin 284, , , ,032 Henderson-Massey 164, , , ,078 Hibiscus and Bays 58,733 59,309 59,890 59,890 Howick 132, , , ,253 Kaipātiki 122, , , ,419 Māngere-Ōtāhuhu 384, , , ,005 Manurewa 144, , , ,000 Maungakiekie- Tāmaki 332, , , ,235 Orākei 380, , , ,330 Ōtara-Papatoetoe 211, , , ,

189 Part 2: Our activities 2.5 Parks, community and lifestyle Local community services Level of service statement Performance measure Local Board Long Term Plan Targets 2015/ / / / /25 (p. a.) Papakura 99, , , ,688 Puketāpapa 324, , , ,427 Rodney 31,138 41,443 41,751 41,751 Upper Harbour 42,550 47,968 48,389 58,389 Waiheke 27,731 28,003 28,277 28,277 Waitākere Ranges 120, , , ,872 Waitematā 493, , , ,000 Whau 248, , , ,053 Notes to table: 1. No Council delivered local arts activities in Devonport- Takapuna, Great Barrier, Henderson-Massey, Howick, Orākei, Puketāpapa, Rodney, and Waiheke Local Boards 2. Not applicable for Great Barrier Local Board. See local planning performance measures in Volume 3, Local Boards for a comparison to current performance New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this Redevelopment of Uxbridge Arts Centre To facilitate and increase community event delivery capability through workshops and provision of information and assistance To deliver more community led services by establishing opportunities and creating the conditions that enable effective community leadership To improve the value delivered through our portfolio of assets, by optimising the provision and performance of our facilities To improve the health and wellbeing of Aucklanders, through better design and delivery of services with our partners and wider community To Improve employment options and outcomes for young people through the Youth Connections Project Development of Westgate Library and Community Facility, Ormiston Library and Community Facility, Takanini Library and Community Facility Community and arts facilities renewals programme Administration of community funding agreements and grants to enable the community to deliver local community services Library renewals programmes Library events and programmes. Significant negative effects There are no significant negative effects associated with these activities. 183

190 Part 2: Our activities 2.5 Parks, community and lifestyle Local community services Activities that contribute to Māori well-being and enable better outcomes with Māori Local community service contributes to the following Māori transformational activity key focus area: Whai Tiaki Māori cultural well-being Activities to achieve this: Te Ao Māori integrating Māori design principles into new buildings e.g. Devonport Library includes bilingual signage carvings achieved by working with Māori in the design process What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $1.2 billion and capital investment of $156 million. In total our planned operating expenditure for Local community services is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 107, , , ,232 1,245,659 Non-rates revenue 9,549 9,239 9,478 72, ,253 *Operational expenditure includes interest, depreciation and corporate overhead allocation. Total In total our planned capital expenditure for Local community services is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Community facilities - upgrades and 16,589 5,951 9,446 9,535 41,521 new facilities Community facility renewals 6,747 5,002 5,009 40,840 57,598 Library development - new facilities 0 1,760 13, ,266 Library facility and technology renewals 6,867 5,202 5,294 24,032 41,395 Public art development and renewals Total 30,357 17,915 33,255 74, ,934 Total 184

191 Part 2: Our activities 2.5 Parks, community and lifestyle Regional parks, sport and recreation Regional parks, sport and recreation Key activities Getting Aucklanders more active more often is a key driver for this activity and responds directly to the delivery of Chapter 5 - Sport and Recreation in the Auckland Plan. To achieve this we provide quality places and spaces for people to be physically active, to volunteer and to enjoy the outdoors. Regional Parks provide in excess of 42,000 hectares of natural environments and diverse landscapes (26 regional parks) across the Auckland Region. This involves stewardship of the significant natural habitats of the region and ensures that people have access to a range of affordable and safe outdoor recreational experiences that include walking, visitor centres, mountain biking, kayak and equestrian trails, camping and bach accommodation, maintenance of pastoral landscapes (farming) and open sanctuaries. Cemeteries and cremation services manage 30 open cemeteries across the region which cover over 250 hectares. The Volcanic Cones services manage 14 Tūpuna Maunga under the direction of the Tūpuna Maunga o Tāmaki Makaurau Authority (the Maunga Authority). A summary of the Tūpuna Maunga o Tāmaki Makaurau Authority Operational Plan 2015/2016 is set out in Part 3.6. Sport and Recreation Partnerships Services lead the implementation of the Auckland Sport and Recreation Strategic Action Plan This plan is one of ten core strategies for Auckland and is co-sponsored by the council and One Voice Sport and Recreation Auckland, an independent multi-agency group. To implement the Strategic Action Plan, investment is made via strategic partnerships and grants programmes, and alliances such as the Healthy Families contracts. How these activities drive Auckland Plan outcomes Regional Parks, Sport and Recreation provide the opportunity for all to enjoy some of the most stunning places of natural beauty in Auckland. This activity works collaboratively with other recreation and sport organisations to maximise joint resources to get Aucklanders more active. This drives the following Auckland Plan outcomes of: Healthy Green Māori identity A fair, safe and healthy Auckland By promoting individual and community wellbeing through participation in sports and increasing levels of physical activity. A green Auckland Through protecting our unique natural heritage and providing a network of green spaces for all to enjoy. Te hau o te whenua, te hau o te tangata empowering mana whenua to participate in natural resource management decision-making processes to realise shared aspirations and mutual outcomes. These activities directly influence the following Auckland Plan targets: Target 5.1: Increase the number of school-aged children participating in organised sport and informal physical activities by Target 5.2: Increase the number of Aucklanders actively participating in recreation and sport every week from 79 per cent to 90 per cent by Target 5.4: Increase the number of Council sports fields that are usable throughout the year from 80 per cent to 90 per cent by Target 12.5: Maintain and extend an integrated network of quality open spaces across the region that meet community needs and provide a diverse range of recreational opportunities. Overall, we will measure our performance against the following levels of service: 185

192 Part 2: Our activities 2.5 Parks community and lifestyle Regional parks, sport and recreation Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Provide and maintain cemeteries, memorial areas and facilities for families, friends and visitors Percentage of visitors satisfied with the presentation of cemeteries 77% 90% 80% 81% 82% 83% Preserve, protect and enhance the cultural and natural values and activities of Auckland's Tūpuna Maunga and other volcanic heritage Number of key sites of significance on Tūpuna Maunga with mitigation measures to improve or maintain their condition Not available New measure Promote and increase awareness of the residents and visitors to Auckland as to the uniqueness, value and importance of the Tūpuna Maunga Percentage of the people of Auckland with a greater awareness of spiritual, ancestral, cultural, customary and historic significance of the Tūpuna Maunga Not available New measure 70% 75% 80% 85% Number of activities that mana whenua are engaged in on Tūpuna Maunga Not available New measure Manage the Auckland Botanic Gardens as a premier destination for sustaining the biodiversity of the Auckland region through education and research, as well as a place for recreation. Manage regional parks as part of the open space network for the use and enjoyment of the community Provide, protect, conserve and enhance the natural and cultural features in regional parks Number of New Zealand native plants grown for revegetation programmes in the Botanic Gardens Percentage of the public who have used a regional park in the last 12 months Percentage of park visitors satisfied with the overall quality of their visit Number of volunteer hours worked in regional parks each year Number of formalised arrangements with Māori (per annum) that provide for the management of specific cultural sites within regional parks 65,000 60,000 60,000 60,000 60,000 60,000 76% 80% 76% 76% 76% 76% 96% 90% 96% 96% 96% 96% 79,013 92,000 80,000 80,000 80,000 82,000 Not available New measure Average 1 186

193 Part 2: Our activities 2.5 Parks, community and lifestyle Regional parks, sport and recreation Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Proportion of mana whenua satisfied with their engagement in the kaitiakitanga and stewardship of parks and reserves Not available New measure 10/19 10/19 10/19 10/19 Lead and coordinate implementation of the Auckland Sport and Recreation Strategic Action Plan Manage quality and financially prudent city park services Note to table: Percentage of residents participating at least once per week in sport and recreation Percentage of city park service requests completed on time 71% 80% 71% 72% 72% 72% 90% 90% 90% 90% 90% 90% New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this Deliver key initiatives from the Auckland Sport and Recreation Strategic Action Plan such as the 10 youth projects developed from the Youth Speak Sport Summit and work with targeted inactive communities Supporting the Maunga Authority to develop an Integrated Management Plan over the 14 Tūpuna Maunga. Deliver Healthy Families Manurewa-Papakura and Healthy Families Manukau as part of an alliance with Tamaki Collective and Alliance Health Plus to reduce obesity and improve health indicators Cemeteries Network Programme as the population in Auckland continues to grow, it is important to ensure that sufficient burial space is planned and provided for in the future Delivery of the Millennium training and community pool project via the facility partnership grant Supporting Surf Lifesaving Northern Region by contributing to the upgrade and renewal of core lifesaving areas within priority surf club facilities. Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. Activities such as weed spraying can affect the public and the environment. Anti-social behaviour, including vandalism and graffiti, can occur in parks and open space areas. Our response: We will ensure contractors are suitably qualified for spraying, with a spray register and public notification of spraying locations and dates. We will include safe design principles into parks and street amenity designs, and carry out regular safety audits. The location of cemetery and crematoria facilities in high residential areas has the potential for issues around hours of operation, noise and traffic congestion. A crematorium s function can create a perception of visual pollution and can have negative impacts as the result of energy inefficiencies and waste production. Cemeteries being closed at night provide opportunities for antisocial behaviour such as theft and vandalism. 187

194 Part 2: Our activities 2.5 Parks community and lifestyle Regional parks, sport and recreation Our response: We will ensure cemeteries are matched to accommodate the changing needs of the community. District Plan rules and consent conditions will be complied with and complaints will be monitored with the appropriate action taken. Holiday parks result in high usage of coastal amenity areas at peak holiday periods. Large numbers of people, even for short periods of time produce waste that must be dealt with in a way that does not diminish the quality of these highly valuable environments. Our response: The council protects the well-being of these local environments through refuse collection and disposal, and onsite wastewater treatment. Activities that contribute to Māori well-being and enable better outcomes with Māori Regional parks, sport and recreation contributes to the Māori transformational activity key focus area: Whai Tiaki Māori cultural well-being Activities to achieve this are: Servicing existing and potential co-management arrangements with mana whenua in the local park context. Existing agreements include: o Pukekiwiriki Pā Reserve o o Pūkaki Tapu o Poutukeka Reserve Waiomanu Pā Kāinga Reserve The following activities enable better outcomes with Māori: Co-governance arrangements: o o o o o Ngāti Whātua Ōrākei Reserves Board Whenua Rangatira Parakai Recreation Reserves Board Mutukaroa Trust Board (Hamlins Hill) This is a regional park so should be under regional parks sports and recreation Te Motu a Hiaroa (Puketutu Island) Governance Trust Tūpuna Maunga o Tāmaki Makaurau Authority (the Maunga Authority). Consultation and engagement with Māori on projects or service delivery on capital projects in the South and North regions by the local parks teams Funding to support the work of the Mangere Mt Education Trust. 188

195 Part 2: Our activities 2.5 Parks, community and lifestyle Regional parks, sport and recreation What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $1.6 billion and capital investment of $1 billion. In total our planned operating expenditure for Regional parks, sport and recreation is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 156, , ,096 1,097,798 1,570,109 Non-rates revenue 20,871 22,453 23, , ,479 *Operational expenditure includes interest, depreciation and corporate overhead allocation. Total In total our planned capital expenditure for Regional parks, sport and recreation is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 City Parks vehicle and plant renewals 3,895 3,384 3,479 32,492 43,250 Land acquisition and development 41,557 48,696 52, , ,267 Regional heritage development Co-governance entity capital investment 2,372 2,265 2,371 49,888 56,896 Total Parks, community and Lifestyle unallocated funding , ,057 Regional and specialist parks 15,285 16,169 17, , ,508 Total 63,109 70,514 75, ,022 1,029,

196 Part 2: Our activities 2.5 Parks, community and lifestyle Local parks, sport and recreation Local parks, sport and recreation Key activities The activities within this group cover management and provision of local parks and open space and recreation activities for both passive and active recreation. Local recreation includes swimming pools and leisure centres, servicing communities in our local areas. A key driver for these activities is to ensure a quality network of facilities and open space that gets more Aucklanders more active, more often. Local and sports park activities include operation and maintenance of over 3,000 local parks, 241 sports parks and 3 holiday parks. We provide a range of park-based programmes around education, conservation and nature appreciation, while also coordinating volunteer services. We mow grass, collect litter, maintain gardens, shrubberies, natural bush areas, toilets, playgrounds, beaches, sports fields and sports facilities, equipment and structures. We also maintain trees, undertake pest and weed control, and restore natural areas of high ecological value. Auckland Council Pools and Leisure delivers local recreation activities that inspire Aucklanders to be active. We own and manage 43 aquatic and recreation facilities throughout the region, and partner with other facilities across the region to enable a wider scope of programme delivery. This network includes 24 Auckland Council owned swimming pools, 17 leisure centres, and within these facilities we also operate 14 childcare centres and 28 fitness centres. How these activities drive Auckland Plan outcomes Local Parks, Sport and Recreation encourages Aucklanders to take advantage of our great network of green spaces and to participate in recreation and sport activities offered locally. This drives the following Auckland Plan outcomes of: Healthy A fair, safe and healthy Through promoting individual and community wellbeing through participation in sports and increasing the level of physical activity Green A green Auckland By providing a network of green spaces for all to enjoy. These activities directly influence the following Auckland Plan targets: Target 5.1: Increase the number of school-aged children participating in organised sport and informal physical activities by Target 5.2: Increase the number of Aucklanders actively participating in recreation and sport every week from 79 per cent to 90 per cent by Target 5.4: Increase the number of the council sports fields that are usable throughout the year from 80 per cent to 90 per cent by Target 12.5: Maintain and extend an integrated network of quality open spaces across the region that meet community needs and provide a diverse range of recreational opportunities. 190

197 Part 2: Our activities 2.5 Parks, community and lifestyle Local parks, sport and recreation Overall, we will measure our performance against the following levels of service: Level of service statement Provide a range of recreational opportunities catering for community needs on local parks, reserves and beaches Performance measure Percentage of residents satisfied with the provision (quality, location and distribution) of local parks and reserves Percentage of residents who visited a local park or reserve in last 12 months Local Board All other Local Boards Long-term Plan Targets 2015/ / / / /25 (p. a.) 75% 75% 75% 75% Orākei 80% 75% 75% 75% All other Local Boards 90% 90% 90% 90% Rodney 91% 90% 90% 90% Provide sports fields that are fit for purpose and cater for community needs Percentage of residents satisfied with the provision (quality, location and distribution) of sports fields (1) Waitematā 95% 90% 90% 90% All other Local Boards 70% 75% 80% 85% Albert-Eden 75% 75% 80% 85% Orākei 80% 75% 80% 85% Provide programmes and facilities that ensure more Aucklanders are more active more often Customers Net Promoter Score for Pool and Leisure Centres as a percentage All other Local (2) 15% 15% 15% 15% Boards Māngere-Ōtāhuhu 20% 20% 20% 20% Upper Harbour Not applicable 20% (3) 20% 20% Notes to table: 1. No sports fields on Great Barrier 2. No applicable recreation facilities in Great Barrier, Rodney, Waiheke, Waitākere Ranges, and Whau Local Boards 3. New facilities being opened. See local planning and development performance measures in Volume 3, Local Boards, for a comparison to current performance New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this The purchase of new land for parks and open space and the development of play areas, walkways and toilets on parks and open space to keep up with Auckland s growth A sports field development programme to extend the availability of playing fields for both competition and training The investment in new leisure facilities including a pool in Albany and Flatbush and completion of the pool and recreation centre in Otahuhu Support and development of major multisport partnership projects such as Bruce Pulman Park, Metropark Silverdale, Warkworth Showgrounds, Ngāti Otara development, Manurewa Netball development and Te Rangi Hiroa Recreation precinct. 191

198 Part 2: Our activities 2.5 Parks, community and lifestyle Local parks, sport and recreation Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. Parks and reserves could impact on neighbours through noise, security and privacy issues. Our response: We will ensure parks and reserves are monitored and complaints are acted upon. The location of leisure facilities in residential areas presents potential issues around hours of operation. These negatives include noise, traffic and the nature of activities undertaken. Our response: Ensure hours of operation are appropriate for the facility and the environment, that there is sufficient car parking where possible and noise is minimised. Activities that contribute to Māori well-being and enable better outcomes with Māori This group of activity contributes to Māori well-being and enables better outcomes with Māori through the use by Māori of sports facilities, fields and recreation reserves. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $2.6 billion and capital investment of $990 million. In total our planned operating expenditure for Local parks, sport and recreation is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 201, , ,699 1,986,816 2,631,573 Non-rates revenue 30,033 33,515 34, , ,378 *Operational expenditure includes interest, depreciation and corporate overhead allocation. Total In total our planned capital expenditure for Local parks, sport and recreation is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Aquatic and recreation facilities - 16, ,610 27,650 51,322 upgrades and new facilities Aquatic and recreation facility 4,952 6,462 7,538 51,595 70,547 renewals Local and sports parks renewals 40,087 38,332 40, , ,643 Local board discretionary fund 10,220 10,465 10,727 84, ,742 Local park development 15,911 11,014 13,462 40,061 80,448 Sportsfield upgrades and 41,983 32,969 38, , ,947 development Walkway and cycleway 4,333 1, ,021 10,008 development Total 134, , , , ,657 Total 192

199 Part 2: Our activities 2.6 Transport MAURANGA 2.6 Transport One of our main objectives is to transform Auckland by moving to outstanding public transport within one network. This can be achieved by improving the speed, accessibility, frequency, affordability, reliability and attractiveness of public transport. At the same time we need to improve the performance of the transport network as a whole by investing in our roads and footpaths, and by providing the necessary infrastructure to make walking and cycling real options for more Aucklanders. To support the transport objectives, the budget includes $7.9 billion capital investment for the Accelerated Transport Programme. The programme, which includes an additional $523 million over the first three years funded by the interim transport levy, builds on the basic programme that was consulted on with Aucklanders. The Accelerated Transport Programme will address the most urgent transport needs in the short-term, however over time the transport system will get progressively worse as Auckland s population grows. Additional investment in transport is preferred to provide faster and more frequent public transport and less congested roads (than otherwise would occur). This will give people more choice to make more trips on buses, trains and ferries as well as cycling and walking. This will release capacity for freight and other road trips and will result in significant social, environmental and economic benefit for Auckland. Auckland Transport is the council entity that will deliver the transport theme covering the following groups of activities: Public transport and travel demand management Roads and footpaths Parking and enforcement Our 10-year budget to deliver these activities includes operating costs of $14.4 billion, and further capital investment of $7.9 billion. Transport Year 1 Year 2 Year 3 Years 4-10 $million 2015/ / / / /25 Total Operating Expenditure 1,107 1,258 1,342 10,686 14,393 Capital Expenditure ,943 7,933 Over three years, $2 billion in capital expenditure is budgeted, which includes $523 million supported by the Interim Transport Levy. This is allocated across the following areas: 193

200 Part 2: Our activities 2.6 Transport Over ten years, the Accelerated Transport Programme will deliver: more investment in public transport which includes: o o o o o o the City Rail Link to expand the capacity of the entire rail network more bus lanes, upgrading bus stops and enabling more double deckers on the bus network city centre bus improvements essential to ensure increasing numbers of buses are able to circulate and terminate effectively in the city centre bus-bus and bus-rail interchanges at Pukekohe, Ōtāhuhu, Manukau and Te Atatu essential items for the rollout of the PT New Network park n rides at Papakura, Westgate and Silverdale eliminating the Newmarket rail crossing and safety improvements to some rail crossings (this excludes grade separated solutions) investment in major projects such as Auckland Manukau Eastern Transport Initiative (AMETI) and East- West Connections Te Atatu Road corridor improvements to align with completion of New Zealand s Transport Agency s Western Ring Route project road improvements in areas such as Flat Bush to align with housing developments delivering the Auckland Cycle Network which has had significant funding increases in the first three years North Western Busway - early works and/or route protection Enhanced spend on renewals ensuring no transport assets fall into very poor condition by 2018 Transport safety, education and route optimisation. The Accelerated Transport Programme includes the City Rail Link (CRL) with a total project cost of $2.5 billion, of which $2.3 billion is planned in this Long-term Plan (LTP). The CRL is a top transport priority for Auckland. With Auckland growing by more than 700,000 people in the next 30 years, the CRL coupled with other public transport improvements is the only way to keep Auckland moving. It will cater for future growth and support economic development for the region. However, even with the City Rail Link providing large increases in passenger transport capacity, there will still be significant capacity constraints that cannot be addressed by providing more bus services. Many key bus routes are nearing capacity. On routes such as Dominion Road, one potential solution is the use of light rail. Further investigation and design work is required, with no capital investment included in this LTP. For a more detailed understanding about this spending area, refer to the group of activities summaries that follow. 194

201 Part 2: Our activities 2.6 Transport Public transport and travel demand management Public transport and travel demand management Key activities Over the next few years, Auckland Transport is moving to a simpler and more integrated public transport network for Auckland. This will deliver a new network of buses and trains that will change the way people travel. The new network is a region-wide public transport network that will include frequent, connector, local and peak services. Auckland will soon be enjoying more frequent, more connected travel where you just turn up and go at a bus stop, train station or ferry terminal. Offering flexible travel options over large parts of the city, the new network will make public transport more useful for a range of travel purposes. The heart of the public transport new network will be the City Rail Link, a 3.5 km rail tunnel which punches through the dead end at Britomart and loops up Albert Street, with stations at Aotea Square and Karangahape Rd, before passing under the motorways to link with the Western rail line at Mt Eden. By providing easy, congestion-free access to the CBD, the City Rail Link will unlock the potential of Auckland s public transport network, with flow-on benefits across the whole of Auckland. How these activities drive Auckland Plan outcomes Public Transport and Travel Demand Management connect people and places with easy, affordable access to safe and sustainable transport choices. This drives the following Auckland Plan outcomes of: Healthy Prosperous Green Connected Loved A fair, safe and healthy Auckland By promoting walking to increase levels of physical fitness. An Auckland of prosperity and opportunity Through moving people and resources efficiently which has a positive impact on productivity. A green Auckland By reducing our reliance on petrol, air pollution and green-house gas emissions. A well connected and accessible Auckland Providing Auckland with an efficient land transport system that encourages increased patronage of bus, rail and ferry services. A beautiful Auckland loved by its people Fundamentally changing parts of our urban built environment. These activities directly influence the following Auckland Plan targets: Target 13.1: Double public transport from 70 million trips in 2012 to 140 million trips by Target 13.2: Increase the proportion of trips made by public transport into the city centre during the morning peak, from 47 per cent of all vehicular trips in 2011 to 70 per cent by Target 13.4: Reduce congestion levels for vehicles on the strategic freight network to at or below the average of levels (average daily speed of 45kph and average delay of 32 seconds per kilometre) by Target 13.5: Increase the proportion of people living within walking distance of frequent public transport stops from 14 per cent (2011) to 32 per cent by

202 Part 2: Our activities 2.6 Transport Public transport and travel demand management Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Prioritise rapid, high frequency public transport Total public transport boardings (millions) (1) Increasing to Transform and elevate customer focus and experience Public Transport punctuality (weighted average across all modes) 85.9% New measure 92% 93% 94% Average 95% Develop creative, adaptive, innovative implementation Customer satisfaction - Public Transport Number of car trips avoided through travel planning initiatives 81.4% 83% 83% 84% 85% 85% 16,587 16,700 17,500 18,400 20,240 Increasing to 22,264 Ensure a sustainable funding model Notes to table: PT Farebox recovery 45.4% New % (2) Measure 46-48% 47-50% 49-52% Average 50%+ 1. The public transport boardings target excludes the CRL. This is separately disclosed under the CRL benefits in this section. 2. A farebox recovery ratio measures the contribution fares make to the operating cost of providing public transport services. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this City Rail Link The City Rail Link (CRL) is a top transport priority for Auckland. With Auckland projected to grow by around 716,000 people in the next 30 years, the CRL coupled with bus improvements is the only way to keep Auckland moving. It will cater for future growth and support economic development for the region. The CRL will extend Auckland s passenger rail system past Britomart to connect to the existing regional rail network at Mt Eden. Britomart will become a through station with new stations near Aotea Square and Karangahape, with an upgrade at Mt Eden station. The CRL will use twin 3.4km long tunnels up to 42 metres below city centre streets. 196

203 Part 2: Our activities 2.6 Transport Public transport and travel demand management It is planned the CRL will be operational by 2023 at a total cost of $2.5 billion. The benefits There will be improved rail capacity, frequency and travel times by removing the dead end at Britomart. This will reduce the travel time from New Lynn to Aotea by 28 minutes. There will be improved city access from all areas which will alleviate congestion. It is expected rail boardings will increase by 6 million boardings per year which means fewer cars on the road. The CRL will also provide a boost to employment and the economy. In addition to providing rail users with faster, more frequent and more reliable train services, the City Rail Link will significantly reduce pressure on our roads. Without the City Rail Link, the time it takes to drive into the city centre from the west and south will increase by between a third and a half, and traffic speeds in the city centre at peak times are projected to drop to 7 kilometres per hour by Solely relying on more buses will not help. For example, without the City Rail Link we would need more than 250 buses an hour on Symonds Street. Clearly this would have major traffic impacts. It also allows for further expansion to the Auckland rail network to areas such as the North Shore and the airport. 197

204 Part 2: Our activities 2.6 Transport Public transport and travel demand management Expenditure The 10 year budget provides $2.3 billion of capital expenditure for this project (making the total cost $2.5 billion when prior years spend is included) and includes an assumption that the government will contribute $1 billion from 2018/2019. The first full year rates impact in 2023/2024 is planned at $108 million. The City Rail Link project has two main construction components in addition to land acquisition and early design work. The first at a cost of around $280 million for the early enabling works, and the second at approximately $1.9 billion for the main construction contract. The enabling works in the first phase will involve building two rail tunnels between Britomart under Queen Street and the Downtown Shopping Centre, and a cut and cover tunnel under Albert Street as far as Wyndham Street. The enabling works are planned for 2016 to 2019 to coincide with the planned redevelopment of the Downtown Shopping Centre by Precinct Properties Limited. In their October 2014 ministerial briefing, the New Zealand Transport Agency commented that this is a sensible sequencing of enabling works which will minimise disruption of critical intersections in the CBD, and enable compliance with the planning conditions that only one intersection can be out of action at any one time. A more compact construction schedule at a later time would prove too disruptive. Work will still continue with government to explore the possibility of starting the main construction work as soon as possible. However, given the absence of a funding agreement with government, the council will only proceed with route protection and enabling works and will not let a contract for the main construction works until a funding agreement is in place. This will ensure that the council remains within our debt target and rates increase limit. Given central government s commitment to a joint business case in 2017 and provide funding from 2020, proceeding with only the enabling works in the short term will not be wasted effort. It simply represents a sensible and practical approach to delivering this critical piece of infrastructure. Government will consider an earlier start date if it becomes clear that Auckland s CBD employment will increase by 25 per cent over the 2012 levels and rail patronage growth is on track to reach 20 million trips before With the focus and investment in public transport, we have seen significant increases in rail boardings in recent years. The year to October 2014 reached 12 million boardings which was an 18 per cent increase from the prior year. Three of the four years prior to this recorded double digit growth in rail boardings. With the roll out of the electric trains this strong growth is expected to continue with the projection that by 30 June 2015 we will reach just under 14 million boardings. Auckland s CBD employment is progressing well with the market clearly signalling the city centre is the preferred option for investment with some examples of the planned growth in the next decade: Fonterra s new head office Precinct Properties Limited s Downtown Shopping Centre redevelopment the International Convention Centre the University of Auckland Newmarket Campus Victoria St/Albert St 50+ storey planned development 198

205 Part 2: Our activities 2.6 Transport Public transport and travel demand management development of a 5 star hotel, 50,000m 2 commercial space and 6,000 residences planned in Wynyard Quarter. The city centre employment needs to increase annually by 5.2 per cent to achieve the government s target and it is currently tracking at 4.5 per cent annual growth. Other public transport projects The Accelerated Transport Programme has an emphasis on public transport over the next three years with the following planned: City centre bus improvements essential to ensure increasing numbers of buses are able to circulate and terminate effectively in the city centre 45 additional kilometres of bus lanes (including the Airport route, Ellerslie-Panmure Highway, Pakuranga Road, Ti Rakau Drive, parts of Great South Rd and Great North Rd, Greenlane West, Mt Eden Road, Manukau Road and Remuera Road) Double deckers enabled on around 42 kilometres of the frequent bus network Essential New Network infrastructure completed interchanges at Ōtāhuhu, Manukau, Te Atatu, Pukekohe and Silverdale Park n ride extensions at Silverdale, Pukekohe and Papakura, replacement facilities at Glen Eden and Hobsonville 600 new and upgraded bus stops $5.7 million invested in public safety and security improvements (fencing, gating, CCTV etc.) Elimination of the Newmarket Level Crossing (Sarawia Street) by Beyond 2018, the Accelerated Transport Programme will deliver: Continued safety, security and amenity improvements spread across the bus, rail and ferry networks $26 million to facilitate improvements to rail crossings North Western Busway - early works and/or route protection Funding for further South-West Multi-modal Airport Rapid Transit route protection. Light Rail In 2012, the City Centre Future Access Study (CCFAS) responded to a government request to develop a robust and achievable transport programme for access to the city centre. It identified that the city centre is facing capacity issues for all roads into the city centre which would worsen from as early as The study also identified that even with the CRL and bus improvements, there would still be access problems into the city centre and in some areas the high number of buses would negatively impact on the quality of the urban environment. To address these issues, work is currently underway to provide an effective public transport solution for those parts of inner Auckland and the city centre that cannot be served by the heavy rail network (including the CRL). This solution would need to support growth requirements in a way that maintains or enhances the quality and capacity of the city centre streets. A range of options are being explored including Light Rail. Additional investment in enhanced public transport (not included in this LTP) would have the following benefits: improve transport access into and around the city centre from areas not served by the rail network to address current problems and for a rapidly growing Auckland by providing a transport system that is best able to satisfy the immediate needs and the long-term, rapidly growing customer demand in the city centre and approaches improve the efficiency and resilience of the transport network of the city centre by: o improving journey time, frequency and reliability of transport access into and within the city centre and city fringe 199

206 Part 2: Our activities 2.6 Transport Public transport and travel demand management o o o improving the linkages and servicing of key destinations, particularly those not served by the CRL, notably the university campuses and the Wynyard Quarter maximising the benefits of existing and planned investment in transport (including the CRL) releasing the capacity constraints around the city centre s most important approach routes and nodes. A range of options will be explored around Light Rail as a solution including consideration of timing, route optimisations and service integration. Investigations into Light Rail options are at an early stage and funding and staging implications will need to be addressed in the future through the RLTP and ITP as well as LTP processes. Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. Travel disruption and congestion due to construction and maintenance of public transport infrastructure, such as CRL, will have an impact on people and the environment, including air and water pollution. Our response: Public signage and information will be provided and alternative transport options will be encouraged. Construction will be coordinated to minimise disruption and by communicating effectively with travellers and communities likely to be affected. Heavy metals and other contaminants will be controlled and/or treated before entering the water. Our response: Air pollution will be mitigated by specifying standards relating to the emissions of public transport vehicles provided by commercial and contracted operators. Activities contributing to Māori well-being Public transport and travel demand management contributes to the following Māori transformational activity key focus area: Whai Rawa Māori economic well-being Activities to achieve this: Māori wardens providing a customer service ambassador role on some train services. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $8.6 billion, and capital investment of $3 billion. In total our planned operating expenditure for Public transport and travel demand management is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 587, , ,652 6,483,578 8,591,383 Non-rates revenue 275, , ,898 3,440,476 4,533,659 *Operational expenditure includes interest and depreciation. Total 200

207 Part 2: Our activities 2.6 Transport Public transport and travel demand management In total our planned capital expenditure for Public transport and travel demand management is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 City Rail Link 113, , ,768 1,947,367 2,342,547 Electric trains 26, ,797 Public transport and travel demand 66,163 92,887 62, , ,873 management Total 206, , ,470 2,365,488 3,010,217 Total 201

208 Part 2: Our activities 2.6 Transport Roads and footpaths Roads and footpaths Key activities Auckland Transport is responsible for managing Auckland s roads and footpaths in a way that is consistent with the strategic direction set by the council. This includes: Managing and maintaining every aspect of the road network from the infrastructure that supports the road itself, the road structure and surface, lighting and road marking through to operational management of traffic signals, incident response and safety; and Maintaining and improving footpaths and streetscapes so more people will naturally walk for short trips. Auckland Transport s approach to managing roads and footpaths emphasises that roads have many users car and truck drivers, bus passengers, pedestrians and cyclists. Currently many people have no choice but to travel by car, yet congestion at peak times on some routes makes travelling by car inefficient. However in parts of Auckland where people have a range of attractive choices to get to where they are going, increasing numbers of people are choosing to travel in ways that not only work for them personally, but also contribute to a more efficient transport network overall. How these activities drive Auckland Plan outcomes Roads and footpaths are essential to move people and goods around Auckland, and are core pieces of infrastructure needed to support future growth. A safe and efficient road and footpath network drives the following Auckland Plan outcomes of: Healthy Green Prosperous Connected A green Auckland That An Auckland of prosperity encourages the use of cycle and opportunity Moving ways reducing our reliance on people and goods efficiently petrol subsequently which positively impacts on decreasing air pollution and productivity. green-house gas emissions. A fair, safe and healthy By developing a network of footpaths to promote walking and increase level of physical activities. A well connected and accessible Auckland Providing seamless integration of local roads, arterial roads and motorways. These activities directly influence the following Auckland Plan targets: Target 13.3: Reduce car crash fatalities and serious injuries from 506 (2010) to no more than 410 in Target 13.4: Reduce congestion levels for vehicles on the strategic freight network to at or below the average of levels (average daily speed of 45 kilometres per hour and average delay of 32 seconds per kilometre) by Overall, we will measure our performance against the following levels of service: Level of service statement Transform and elevate customer Performance measure Customer satisfaction - Roads Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) 71% 70% 70% 70% 70% 70% 202

209 Part 2: Our activities 2.6 Transport Roads and footpaths Level of service statement focus and experience Performance measure Customer satisfaction - Footpaths Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) 63% 65% 65% 65% 65% 65% Customer satisfaction - Road Safety 63% New Measure 60% 60-65% 60-65% 60-65% The change from the previous financial year in the number of deaths and serious injuries on the local road network, expressed as a number +21% 2.66% reduction from previous year Reduce by at least 9 Reduce by at least 9 Reduce by at least 9 Reduce by at least 9 Build network optimisation and resilience Arterial road 68% 53% of productivity (1) the ideal achieved 54% of the ideal achieved 55% of the ideal achieved 55% of the ideal achieved 55% of the ideal achieved Travel times on key freight routes (2) Baseline travel times maintained on 6 out of 8 routes Maintain travel times for 85th percentile on all nominated freight routes Maintain baseline travel times for the 85th percentile Maintain baseline travel times for the 85th percentile Maintain baseline travel times for the 85th percentile Maintain baseline travel times for the 85th percentile Annual number of cycling trips in designated areas in Auckland: (All day) 141,897 (morning peak) 142,200 (AM peak) 958,000 (all day) 1.1 million (all day) 1.2 million (all day) 1.8 million (all day) Increasing to 4.3 million (all day) Road maintenance standards (ride quality) as measured by smooth travel exposure (STE) for all urban and rural roads (3) Rural 95% Urban 85% New Measure Rural 93% Urban 83% Rural 92% Urban 82% Rural 91% Urban 81% Decreasing to Rural 87% Urban 77% Percentage of the sealed local road network that is resurfaced Percentage of footpaths in acceptable condition (4) Percentage of customer service requests relating to roads and footpaths which receive a response within specified time frames (5) 7.6% New Measure 99% New Measure 85% New Measure 8% 8% 8% 8% 99% 99% 99% 98% 85% 85% 85% 85% 203

210 Part 2: Our activities 2.6 Transport Roads and footpaths Notes to previous table: 1. Road productivity is a measure of the efficiency of the road in moving people during the peak hour. It is measured as the product of number of vehicles, their average journey speed and average vehicular occupancy. Key arterial routes include: Airport to CBD (via Manukau Rd) St Lukes to St Johns (via Balmoral/Greenlane West/Greenlane East/Remuera Rd) Albany to Birkenhead (via Glenfield Rd) Henderson to CBD (via Great North Rd) SH1 to Ti Rakau Dr (via Te Irirangi Dr) SH20 to Portage Rd (via Tiverton/Wolverton Rd) 2. Target travel times on nominated strategic freight routes: Route Travel Time (mins) SEART (from Sylvia Park to East Tamaki) 11 SEART (from East Tamaki to Sylvia Park) 12 Wairau Rd (from SH1 to SH18) 8 Wairau Rd (from SH18 to SH1) 8 Harris Rd (from East Tamaki to SH1 Highbrook interchange) 10 Harris Rd (from SH1 Highbrook interchange to East Tamaki) 11 Kaka St/James Feltcher Dr/Favona Rd/Walmsley Rd (SH20 to Walmsley)* 13 Kaka St/James Feltcher Dr/Favona Rd/Walmsley Rd (Walmsley to SH20)* 13 Great South Rd (SH1 Ellerslie Panmure Hwy Interchange to Portage Rd)* 11 Great South Rd (Portage Rd to SH1 Ellerslie Panmure Hwy Interchange)* 11 *New added route 3. Smooth travel exposure measures the proportion of vehicles kilometres travelled in a year (VKT) that occurs on smooth sealed roads and indicates the ride quality experienced by motorists. 4. As defined in Auckland Transport s Asset Management Plans. 5. Response times are within: 1 hour for emergencies, 2 days for incident investigation as a high priority, or 3 days for an incident investigation as a normal priority. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this Over the 10 years of this LTP, Auckland Transport will: Continue the implementation of the AMETI programme to improve connections through Auckland s Eastern suburbs and to unlock the potential of this area for business and residential growth. This includes a range of local road and public transport initiatives, including improvements for Glen Innes, Panmure, Sylvia Park, Pakuranga and Botany. Implement road network improvements in support of growth and plan changes such as investment in the Northern Strategic Growth Area (Massey North/Hobsonville/Whenuapai), Flat Bush and Glenvar Ridge Road. Deliver projects under a new Residential Growth Infrastructure Fund which has been created to provide dedicated funding (primarily through development contributions) to support housing development in Special Housing Areas and other growth areas in line with the Housing Accord. Improve East West connections in the Onehunga, Penrose, Otahuhu, Sylvia Park and Mangere areas Deliver 52.4 kilometres of the Auckland Cycle Network over the next three years, which will support 2.5 million new cycle journeys per year once the new City Centre network is complete, with an estimated societal savings of $480 million, including $40 million of safety benefits and $380 million in health and environmental benefits. Invest in initiatives that integrate and optimise State Highway and other recent investments (e.g. Te Atatu Corridor delivered by 2017 to support the Western Ring Route). 204

211 Part 2: Our activities 2.6 Transport Roads and footpaths Provide bus lanes and bus priority measures on major routes so that more people can travel faster and reliably by bus at peak times. Continue to implement the route optimisation programme, which improves the efficiency of Auckland s road network. This includes 30 minor network efficiency improvements by 2018 and implementation of other efficiency interventions such as dynamic traffic lanes. Implement Local Board-initiated investments to support local transport needs. Improve road safety with delivery of around 106 minor improvement projects, three high-risk intersection or high-risk road improvements, 30 fatal crash investigations, 35 speed management projects, 8 crash reduction studies and 18 Safer Communities school projects per annum over the next three years. Renewals The Accelerated Transport Programme provides for full funding of the optimum renewals programme over the 2015/2016 to 2017/2018 period. As a result by June 2018, 80 per cent of transport assets will be in good / very good condition, with few assets in poor or very poor condition. Beyond 2018, significant increases in renewal requirements are forecast which are not fundable under the Accelerated Transport Programme s capex envelope. With the lower level of investment in renewals beyond 2018, which will have an impact on roads and footpaths, it is expected that targets on renewal related measures such as road maintenance standards and percentage of footpaths in acceptable condition will decrease over the Long-term Plan (LTP). Customer satisfaction, which will also be impacted by the level of renewals, is projected to flat line. Being able to maintain customer satisfaction at current levels is a risk (in particular the outer years) under the budgeted renewal expenditure. However, Auckland Transport is targeting to maintain customer satisfaction at current levels through operational focus and in its management of asset renewals to address priority and high use customer related assets. Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. The road network contributes to a large number of negative environmental effects including water, air pollution and increased noise levels, and there are safety impacts. Our response: Future planning of the transport network aims to reduce or mitigate the adverse environmental effects of further development. A connected roading and footpath network will reduce negative environmental impacts by reducing travel distances and times. Heavy metals and other contaminants will be controlled and/or treated before entering waterways. Activities that contribute to Māori well-being and enable better outcomes with Māori Roads and footpaths contribute to the following Māori transformational activity key focus area: Whai Tiaki Māori cultural well-being. Activities to achieve this Marae development and papakāinga housing providing infrastructure support and technical advice Māori values and stormwater Māori values are considered in storm water management of transport infrastructure projects. 205

212 Part 2: Our activities 2.6 Transport Roads and footpaths What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $5.4 billion and capital investment of $4.9 billion. In total our planned operating expenditure for Roads and footpaths is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 474, , ,353 3,891,052 5,356,381 Non-rates revenue 49,021 50,903 54, , ,871 *Operational expenditure includes interest and depreciation. Total In total our planned capital expenditure for Roads and footpath is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Walking and cycling 28,215 37,650 57,648 74, ,173 Seal extensions 3,333 3,333 3,333 8,588 18,587 Safety 22,932 22,944 22, , ,441 Local Board Transport Capital Fund 10,260 10,537 10,832 85, ,502 Residential Growth Infrastructure Fund 35,000 35,900 36, , ,300 Renewals 197, , ,396 1,940,539 2,603,972 Core roading projects 109, ,984 89,170 1,032,236 1,360,559 Total 406, , ,135 3,547,105 4,880,534 Total 206

213 Part 2: Our activities 2.6 Transport Parking and enforcement Parking and enforcement Key activities Auckland Transport manages on-street and off-street parking, including parking buildings and off-street car park sites, and also enforces parking, traffic and special vehicle lane restrictions. Auckland Transport s parking services are geared to balance demand for parking spaces with the needs of road users, residents and businesses. This is achieved through paid parking in off-street parking buildings, and through balancing supply and demand for on-street parking spaces using pay-and-display parking options, parking time restrictions, and unrestricted on-street parking. How these activities drive Auckland Plan outcomes Parking and Enforcement provides the support function that underpins a well-functioning network of metropolitan, town, local and neighbourhood centres and ensures the safety of all road users. This drives the following Auckland Plan outcomes of: Prosperous An Auckland of prosperity and opportunity Through providing convenient access for motorists when visiting our centres which supports trade and commerce. Connected A well connected and accessible Auckland Promoting and protecting the safety of all road users. Through enforcement of parking restrictions to ensure the network remains efficient and to encourage a move towards more use of public transport. These activities directly influence the following Auckland Plan targets: Target 13.2: Increase the proportion of trips made by public transport into the city centre during the morning peak, from 47 per cent of all vehicular trips in 2011 to 70 per cent by Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Ensure optimal use of parking resources On street parking occupancy rates (peak four hours) Not available Within 70-90% range 70% - 90% 70% - 90% 70% - 90% 70% - 90% Note to table: 1. Peak four hours is defined as the top four busiest hours of the day. These hours are not often coincidental and can vary depending on contributing factors. 207

214 Part 2: Our activities 2.6 Transport Parking and enforcement Key projects to achieve this Improve the technology which supports Auckland Transport s parking operations, to provide better customer service and utilisation of assets. Auckland Transport is proposing an investment programme totalling $23.8 million over the ten years of this LTP. Parking and Enforcement activities generate revenue in excess of their costs, as well as implementing policies designed to make travel around Auckland safer and more reliable. Significant negative effects There are no significant negative effects associated with these activities. Activities that contribute to Māori well-being and enable better outcomes with Māori This group of activity does not specifically contribute to Māori well-being or enable better outcomes with Māori. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $446 million, and capital investment of $42 million. In total our planned operating expenditure for Parking and enforcement is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 44,562 44,647 44, , ,627 Non-rates revenue 81,208 81,281 81, , ,150 *Operational expenditure includes interest and depreciation. Total In total our planned capital expenditure for Parking and enforcement is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Parking and enforcement 6,600 2,511 2,659 30,496 42,266 Total 6,600 2,511 2,659 30,496 42,266 Total 208

215 Part 2: Our activities 2.7 Water supply and, wastewater treatment and disposal TE WAIORA ME NGĀ WAIPARAPARA 2.7 Water supply and, wastewater treatment and disposal Watercare is a council-controlled organisation responsible for delivering safe, clean and reliable drinking water to Aucklanders and collecting, treating and discharging the wastewater to receiving environments. Each day Watercare supplies around 326 million litres of high-quality drinking water to the people of Auckland and treats around 378 million litres of wastewater and trade waste. This spending area covers the following groups of activities: Water supply Wastewater treatment and disposal Our 10-year budget to deliver these activities includes operating costs of $6.6 billion, and capital investment of $4.7 billion. Water supply and wastewater treatment Year 1 Year 2 Year 3 Years 4-10 and disposal 2015/ / / / /25 $million Total Operating expenditure ,912 6,569 Capital expenditure ,421 4,655 Our priorities will be focused around implementing this significant level of planned investment to address Auckland s growing population. Watercare is not funded by general rates; instead it is funded by borrowing, Infrastructure Growth Charges and water and wastewater user charges. To fund the budgeted level of spending, price increases have been capped at 2.5 per cent for the first two years, and 3.6 per cent for the following eight years. To ensure Māori cultural values are considered in service delivery Watercare consults with the Mana Whenua Kaitiaki Forum on infrastructure projects. Some of our top priorities in this area are: The $966 million investment in building the Central Interceptor (a new wastewater tunnel between Western Springs and the Māngere Wastewater Treatment Plant) which will significantly reduce overflows into waterways in central Auckland and the Waitematā Harbour, replace the ageing Hillsborough Tunnel and Manukau Siphon that are nearing the end of their life and cater for future population growth. The proposal to increase the net water take from the Waikato River progressively over the next 35 years, from the current 150 million to 350 million litres per day. Watercare lodged its resource consent application in December 2013 and continues to consult with stakeholders. Watercare decided to apply for additional take from the Waikato River as that was the only viable option available to sustain the supply of drinking water to Auckland in the future. For a more detailed understanding about this spending area, refer to the group of activities summaries that follow. 209

216 Part 2: Our activities 2.7 Water supply and, wastewater treatment and disposal Water supply Water Supply Key activities Watercare collects, treats and distributes drinking water from 12 dams, 15 groundwater sources and springs and three river sources. A total of 118 billion litres of water was sourced in 2013/14 and treated at 19 plants and distributed through 8938 kilometers of water pipes through 90 reservoirs to 1.4 million people. The key activities are managing and maintaining: 30 sources of water including 12 dams 19 water treatment plants 90 water reservoirs 8938 km of water pipes How these activities drive Auckland Plan outcomes Water supply is essential for human consumption, primary production, economic activity and sanitation. It is also the one of the core pieces of infrastructure needed to support future growth. This drives the following Auckland Plan outcomes of: Healthy A fair, safe and healthy Auckland Watercare is facilitating this outcome by providing Aucklanders with a high-quality, reliable supply of drinking water. Green A green Auckland Through its Waterwise Advice line and Be Waterwise programme, Watercare is promoting waterefficient behaviours to consumers and making every effort to reduce the demand for water services, detailed in the Auckland Regional Water Demand Management Plan. These activities directly influence the following Auckland Plan targets: Target 7.1: Reduce gross per capita water consumption from 2004 levels by 15 per cent by Target 12.1: Reduce maximum annual potable water network losses to less than 12 per cent of total network volume by Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Provide uninterrupted access to safe, clean and drinkable water The extent to which the local authority's drinking water supply complies with part 4 of the drinking-water standards (1) (bacteria compliance criteria) 100.0% New Measure 100% 100% 100% 100% 210

217 Part 2: Our activities 2.7 Water supply and, wastewater treatment and disposal Water supply Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) The extent to which the local authority's drinking water supply complies with part 5 of the drinking-water standards (protozoal compliance criteria) 100.0% New Measure 100% 100% 100% 100% Median response time for attendance for urgent call-outs: from the time that the local authority receives notification to the time that service personnel reach the site Not available New Measure 60 mins 60 mins 60 mins 60 mins Median response time for resolution of urgent calls-outs: from the time that the local authority receives notification to the time that service personnel confirm resolution of the fault or interruption Not available New Measure 5 hours 5 hours 5 hours 5 hours Median response time for attendance for non-urgent callouts: from the time that the local authority receives notification to the time that service personnel reach the site Not available New Measure 3 days 3 days 3 days 3 days Median response time for resolution of non-urgent call-outs: from the time that the local authority receives notification to the time that service personnel confirm resolution of the fault or interruption Not available New Measure 6 days 6 days 6 days 6 days 211

218 Part 2: Our activities 2.7 Water supply and, wastewater treatment and disposal Water supply Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) The total number of complaints received by the local authority about any of the following: a) drinking water clarity b) drinking water taste c) drinking water odour d) drinking water pressure or flow e) continuity of supply f) the local authority's response to any of these issues expressed per 1000 connections to the local authority's networked reticulation system Not available New Measure The percentage of real water loss from the local authority's networked reticulation system (2) 13.9% New Measure 13% 13% 13% 13% The average consumption of drinking water per day per resident within the territorial authority district 270 New Measure 272 +/- 2.5% 270 +/- 2.5% 268 +/- 2.5% 253 +/- 2.5% Note to table: 1. Further details can be found at 2. This measure tracks unexplained water losses as a percentage of total water produced. Real Losses are defined as total water produced less water sales and accounted-for water losses. New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this Second Waikato River Take - The proposal to increase the net water take from the Waikato River progressively over the next 35 years, from the current 150 million to 350 million litres per day. Watercare lodged its resource consent application with the Waikato Regional Council in December 2013 and continues to consult with stakeholders. Watercare decided to apply for additional take from the Waikato River as that was the only viable option available to sustain the supply of drinking water to Auckland in the future. Once the consent is granted, Watercare will plan a staged expansion of the Waikato Water Treatment Plant and the construction of a second pipeline from the plant. This will secure Auckland s water supply for more than 30 years. Plans to invest a total of $160 million in the Franklin area to develop and upgrade services over 20 years are well advanced. In September 2013, the Pukekohe and Buckland communities were connected to Auckland s metropolitan water supply. With this, they became the first towns in Franklin to 212

219 Part 2: Our activities 2.7 Water supply and, wastewater treatment and disposal Water supply receive the same quality of water as the rest of Auckland. Patumahoe and Clarks Beach were connected in early Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. Restricted or low-quality water supply impacts economic activity and vibrancy through the cost of acquiring, maintaining and operating water infrastructure. Service disruption during network upgrades and new construction can have economic, social and/or environmental effects. Significant catchment areas are required to collect water into reservoirs. The construction of large infrastructure projects will have effects on the environment. Dams and associated water discharges can have downstream impacts on flora and fauna ecosystems. Capturing finite freshwater resources in rural areas may over the long-term limit other uses, for example horticultural/agricultural activities. Our response: Watercare carefully manages the discharges from its dams to ensure the downstream ecosystems have sufficient water flow. Compensation and free-discharge valves have been installed on all the dams which allow the release of a continuous flow of water downstream and to simulate floods and reduce algae build-up in the streams. To ensure that mitigation paths of native fish species are not interrupted by the dams. Watercare operates a trap and haul programme for both fish and eels. Whitebait (juvenile galaxiid species) and elvers (juvenile eels) are trapped in downstream river systems and transferred to upstream of the dam. Adult migrating eels, generally between 15 and 40 years old, are caught from within the dams and transferred to suitable locations downstream to complete their breeding cycle in the sea. We are committed to minimising any detrimental effects of water supply activity where possible and encouraging water conservation. Initiatives are in place to upgrade non-metropolitan treatment plants or for the connection of non-metropolitan supplies to the metropolitan schemes to improve water quality and availability. In rural areas water resources are managed through resource consent processes to ensure over-allocation of aquifers and streams does not occur. Disruption from water main construction works will be mitigated by working collaboratively with service providers and informing the public of disruptions prior to work commencing and ensuring that all areas will be reinstated to original condition. Activities that contribute to Māori well-being and enable better outcomes with Māori Water supply contributes to the following Māori transformational activity key focus area: Whai Tiaki Māori cultural well-being Activities to achieve this: Mana Whenua Kaitiaki forum contributing to build on the current proactive engagement with 19 mana whenua tribal authorities to maintain strong and enduring relationships and to enhance business efficiencies. 213

220 Part 2: Our activities 2.7 Water supply and, wastewater treatment and disposal Water supply What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $2.5 billion, and capital investment of $2.2 billion. Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 183, , ,339 1,928,320 2,518,778 Non-rates revenue 185, , ,155 2,021,867 2,625,288 *Operational expenditure includes interest and depreciation. Total In total our planned capital expenditure for Water supply is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Water supply 166, , ,896 1,612,511 2,232,182 Total 166, , ,896 1,612,511 2,232,182 Total 214

221 Part 2: Our activities 2.7 Water supply and, wastewater treatment and disposal Wastewater treatment and disposal Wastewater treatment and disposal Key activities Watercare is responsible for the collection, treatment and disposal of wastewater in Auckland. Each day, Watercare s wastewater network collects and treats around 378 million litres of wastewater to a high standard. The two main wastewater plants servicing the majority of the region are located at Māngere on the Manukau Harbour and Rosedale on the North Shore. Wastewater is conveyed through 7834 kilometres of wastewater pipes before treatment. The regional network includes 500 wastewater pump stations. The key activities are managing and maintaining: 7834 km of wastewater pipes 500 wastewater pump stations 18 wastewater treatment plants How these activities drive Auckland Plan outcomes Our wastewater reticulation collects and treats wastewater before discharging the treated water into the receiving environment. It is also a core piece of infrastructure required to support future growth. This drives the following Auckland Plan outcome of: Green A green Auckland by reducing the risks of discharging untreated wastewater into the natural environment, Watercare is making every effort to protect Auckland s waterways and the surrounding ecosystem. These activities directly influence the following Auckland Plan targets: Target 12.3: Reduce wet weather overflows to an average of no more than two events per discharge location per annum, where the stormwater and wastewater systems are separated, by 2040, (with priority given to bathing beaches and other sensitive receiving environments by 2030). Overall, we will measure our performance against the following levels of service: Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Provide reliable wastewater services and manage discharges to maintain or improve the health of the environment The number of dry weather overflows from the territorial authority's sewerage system, expressed per 1000 sewerage connections to that sewerage system Not available New Measure

222 Part 2: Our activities 2.7 Water supply and, wastewater treatment and disposal Wastewater treatment and disposal Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) Compliance with the territorial authority's resource consents for discharge from its sewerage system measured by the number of: a) abatement notices b) infringement notices c) enforcement orders d) convictions received by the territorial authority in relation to those resource consents a) 0 b) 0 c) 0 d) 0 New Measure a) 2 b) 2 c) 2 d) 0 a) 2 b) 2 c) 2 d) 0 a) 2 b) 2 c) 2 d) 0 a) 2 b) 2 c) 2 d) 0 Attendance at sewerage overflows resulting from blockages or other faults: median response time for attendance - from the time that the territorial authority receives notification to the time that service personnel reach the site Not available New Measure 60 mins 60 mins 60 mins 60 mins Attendance at sewerage overflows resulting from blockages or other faults: median response time for resolution - from the time that the territorial authority receives notification to the time that service personnel confirm resolution of the blockage or other fault Not available New Measure 5 hours 5 hours 5 hours 5 hours 216

223 Part 2: Our activities 2.7 Water supply and, wastewater treatment and disposal Wastewater treatment and disposal Level of service statement Performance measure Actual 2013/14 Annual Plan Target 2014/15 Long-term Plan Targets 2015/ / / / /25 (p. a.) The total number of complaints received by the territorial authority about any of the following: a) sewerage odour b) sewerage system faults c) sewerage system blockages d) the territorial authority's response to issues with its sewerage system expressed per 1000 connections to the territorial authority's sewerage system Not available New Measure Note to table: New measure refers to measures developed for this LTP. The actual result for 2013/2014 has been included where the information has previously been collected internally. The information is unaudited. Key projects to achieve this The Central Interceptor will carry wastewater 13 kilometres from Western Springs to the Māngere Wastewater Treatment Plant. This $966 million project will replace the ageing Hillsborough Tunnel and Manukau Siphon that are nearing the end of their life, reduce overflows significantly and cater for population growth. Watercare received resource consent in November 2013 and is currently working on a detailed design as well as confirming the construction methodology. The construction is expected to take six years to complete. The $173 million upgrade of the Māngere Wastewater Treatment Plant, involving the construction of an additional Biological Nutrient Removal facility, which will ensure continuing compliance with consent conditions and the ability to treat future increased flows without compromising environmental objectives. Significant negative effects There are no significant negative effects associated with these activities, but there are some negative effects arising from these activities. Wastewater overflowing from the wastewater network and the combined sewer network can pollute our land, waterways and beaches. Overflows can occur when there are blockages within the wastewater system or during wet weather when stormwater infiltrates the wastewater system through cracks or illegal connections. Within the combined network, overflows can occur when system capacity is exceeded during wet weather. Our response: Watercare operates a preventive maintenance programme, with regular inspection and clearing of known blockage points and has an emergency overflow response and clean-up procedure. We have an Auckland-wide bio solids strategy and are trialling screens on overflow structures to remove solid material from wastewater discharges. Work programmes also include upgrades of non-metropolitan treatment plants, environmental monitoring and sampling programmes. Long-term responses include interceptors planned for the central, western and northern areas. 217

224 Part 2: Our activities 2.7 Water supply and, wastewater treatment and disposal Wastewater treatment and disposal Activities that contribute to Māori well-being and enable better outcomes with Māori This group of activity does not specifically contribute to Māori well-being or enable better outcomes with Māori. What it will cost to deliver Our 10-year budget to deliver these activities includes operating costs of $4.1 billion, and capital investment of $2.4 billion. In total our planned operating expenditure for Wastewater treatment and disposal is as follows: Operating cost and revenue $000 Year /16 Year /17 Year /18 Years / /25 Operational expenditure * 340, , ,443 2,984,057 4,050,485 Non-rates revenue 331, , ,026 3,003,461 4,071,864 *Operational expenditure includes interest and depreciation. Total In total our planned capital expenditure for Wastewater treatment and disposal is as follows: Capital expenditure $000 Year /16 Year /17 Year /18 Years / /25 Wastewater 215, , ,312 1,808,368 2,422,069 Total 215, , ,312 1,808,368 2,422,069 Total 218

225 Part 3: Our policies and other information PAE TUATORU: Ō MĀTOU KAUPAPA HERE Part 3: Our policies and other information This part sets out key Auckland Council policies and other information for the Long-term Plan (LTP). It includes: 3.1 Revenue and financing policy- this policy sets out the funding mix for each of the council's activities and how the council makes these decisions 3.2 Prospective funding impact statement 3.3 Local board funding policy this policy sets out how Local Boards are funded to meet the costs of providing local activities and administration support. 3.4 Summary of the Significance and engagement policy this covers how Auckland Council will engage with communities and what will be consulted on. 3.5 Allocation of decision-making for non-regulatory activities this policy sets out decision-making responsibilities for non-regulatory activities between Local Boards and the Governing body. 3.6 Summary of the Tūpuna Maunga o Tāmaki Makaurau Authority Operational Plan 2015/ Housing for Older People Partnering Policy 219

226 Part 3: Our policies and other information 3.1 Revenue and financing policy 3.1 Revenue and financing policy 1. Policy purpose and overview The purpose of the Revenue and financing policy is to provide predictability and certainty about sources and levels of funding available to the council. It explains the rationale for, and the process of selecting various tools to fund the operating and capital expenditures of the council. 2. Policy background Funding principles To assist with the identification of the appropriate funding methods, the council has used a set of guiding principles that incorporate the matters set out in the Local Government Act These are summarised in table below. Principle Paying for benefits received or costs imposed Transparency, accountability and costs and benefits of funding activities separately Market neutrality Financial prudence and sustainability Optimal capital usage Strategic alignment Overall social, economic, environmental and cultural impacts Community outcomes in the Auckland Plan Affordability Table Rationale for its application The council will apply this principle to select appropriate funding methods when considering benefit distribution and cost causation and the period in or over which benefits and costs are expected to occur. The allocation of costs to those who benefit from a council service or those who impose costs to the council (whether the community as a whole, any identifiable part of community, or individuals) is considered economically efficient and equitable and the extent to which the actions or inaction of individuals or a group contribute to the need to do the activity This principle is applied when considering the costs and benefits of separate funding. Transparency of funding enables the users of services to assess whether they get value for money. Accountability makes the council more efficient in providing these services. From the perspective of the service users, transparency and accountability also enables them to make more informed decisions in using council services This principle is relevant when the council is competing with the private sector in producing or delivering services. The council can be placed in an advantageous position vis a vis the private sector because of its ability to fund such services from rates, either fully or partially. This can lead to market distortions and economic inefficiencies. It can also discourage private enterprise. To avoid this, in tandem with other principles such as affordability, the council will apply commercial best practice when providing such services This principle is relevant in determining appropriate funding mixes. It is recognised that additional revenue may be required to support debt repayment and manage treasury ratios This principle relates to the effectiveness of funding tools in achieving efficiencies. The council s limited financial resources should be used in such a way to maximise the benefits provided to the community, while minimising the burden on ratepayers. Among other things, this principle influences the council s decisions on the best mix of funding (between rates income, other revenue sources, borrowings and asset sales) to pay for its assets and activities The Auckland Plan sets out a vision for the city over the next 30 years. The Revenue and financing policy should have regard to its impact on the broader strategies and priorities as set out in the council s vision and the Auckland Plan The infrastructure strategy outlines how the council intends to manage its infrastructure assets. The Revenue and Financing policy will show how investment in infrastructure is funded Decisions on how the council s revenue requirements will be met (by ratepayers and other groups) should take into account the impact of such decisions on the current and future social, economic, environmental and cultural well-being of the community and the community outcomes to which the activity relates Decisions on how the council s revenue requirements will be met (by ratepayers and other groups) should take into account the impact of such decisions on the community outcomes in the Auckland Plan The council needs to consider the impact of funding methods on people s ability to pay as this can 220

227 Part 3: Our policies and other information 3.1 Revenue and financing policy Principle Minimise the effects of change Efficiency and effectiveness Practicality of policy Legal compliance Table have implications for community well-being Rationale for its application The integration and harmonisation of the policies of the former councils may lead to major changes in the incidence or rates and user charges for services. Funding and financial policies should seek to minimise or manage the impact of these changes The council s financial policies should have regard to the costs of carrying them out, and how effective they will be in achieving their objectives The council s funding policies must be achievable and unconstrained by practical issues that will prevent compliance The LGA 2002 and related legislation include a number of legal requirements for the development of the Revenue and financing policy. All aspects of the policy will comply with legislation There are some inherent conflicts between these guiding principles. In practice, establishing the council s specific revenue and financing policies involves balancing competing guiding principles. For example, the principle of paying for benefits received may call for a high degree of user pays for an activity, but this must be balanced against the principle of affordability. In practice, when the council applies these principles to assess how to fund the separate activities, the council then considers the overall impact of any allocation of liability on the community. 3. Policy details Expenditure to be funded Legislation requires the council to make adequate provision in its long-term plan to meet expenditure needs identified. Generally, this will mean that all expenditure is funded. Exceptions include funding of depreciation expenditure where it is financially prudent not to do so. In determining the level of non-funded depreciation, the council will have regard to: whether at the end of its useful life, the replacement of an asset will be funded by way of a grant or subsidy from a third party whether the council has elected not to replace an asset at the end of its useful life whether a third party has a contractual obligation to maintain the service potential of an asset throughout all or part of its useful life or to replace the asset at the end of its useful life whether fully funding depreciation in the short-term will result in an unreasonable burden on ratepayers, presenting conflict between funding principles, for example between affordability and financial prudence and sustainability. In such circumstances, the council will remain prudent and ensure it promotes both the current and future interests of the community by forecasting to reach a position over time where it fully funds depreciation (apart from the exceptions above). Table below sets out the minimum level of depreciation funding the council will incorporate when calculating its rates requirement. Table Proportion of depreciation expenditure to be funded Year 2015/ / / / / / / / / /25 Funded 67% 70% 74% 78% 82% 85% 89% 93% 96% 100% Not funded 33% 30% 26% 22% 18% 15% 11% 7% 4% 0% As a result of this policy of moving towards funding 100 per cent of depreciation by 2025 the council has resolved that for three of the next 10 years, the council s operating revenue (adjusted for items such as vested assets and development contributions) will be less than the council s total operating expenditure (including depreciation). This implies that in the early years of the plan, the council is more reliant on borrowings, rather than rates and other current revenue, to fund its capital expenditure. However, the council considers that the 221

228 Part 3: Our policies and other information 3.1 Revenue and financing policy level of council debt is manageable and prudent in every year of the plan. In particular, the projected level of council debt will not result in the council s interest expense exceeding our prudential target of 12 per cent of revenue. Further information about our prudent approach to managing debt is included in our Financial Strategy in section 1.3. The council considers that this policy on funding depreciation and the consequential impacts on council s operating budgets and debt levels is financially prudent, reasonable and appropriate having had regard to our funding principles, the factors in section 100(2) of the Local Government Act 2002 and all other relevant matters. Sources of funding The sources of funding applied under this policy are limited to those set out under section 103 (2) of the LGA Sources of funding: Operating expenditure The council has determined the funding sources for operating expenditure after considering the funding principles set in Table Funding source Fees and charges Grants and subsidies Development or financial contributions Targeted rates General rates CCO profits, and net rental and interest from investments Borrowing Table Funding sources for operating expenditure Rationale Fees and charges can be applied where the users of a service can be identified and charged according to their use of the service (and those that do not pay are denied access to the service). This is based on the paying for benefits received principle. Fees are also appropriate where an individual s action or inaction creates the need for an activity (cost causation). For example, the cost of obtaining a building consent is met by the building owner Grants and subsidies are generally only appropriate for funding the operating costs of the particular activity that the grant or subsidy is intended to pay for. For example, NZTA (government) transport subsidies can only be used to fund transport projects Development contributions or financial contributions can only be used to fund capital expenditures related to growth and financing costs incurred due to timing differences between growth-related capital expenditure being incurred and the related development contribution being received Targeted rates are appropriate for funding operating activities where the activity mainly benefits a specific group of ratepayers or where the action or inaction of that group contributes to the need for the activity. These include, for example where: an individual or a group of ratepayers voluntarily chooses to adopt the rate, such as for business improvement districts or the Retrofit Your Home scheme the benefit of the activity falls on an identifiable subset of ratepayers the rate is for a specific service such as for refuse collection. General rates are appropriate for funding activities where it is not practicable or costeffective to identify the individual or group of beneficiaries (or causers of costs) of the service and charge them for the benefits received or costs imposed (e.g. regional parks and open spaces). It is also appropriate for general rates to partially fund activities where the provision of a private good also generates wider social benefits or where the application of fees and charges either causes affordability issues or compromises the wider objectives of the activity. This is consistent with the guiding principle of affordability CCO profits and net returns from investments will be used to offset the general rates funding requirement of other council activities, reducing the burden on all ratepayers Borrowing will not generally be used to fund operating expenses. The council may choose to borrow for an operating expense where it is providing a grant to an external community organisation that is building an asset such as a community facility or in other cases where operating expenditure provides enduring economic benefits. Borrowing may also be used to fund the interest expense accrued on borrowing during the period of construction of an asset; and to fund the cost of discovered liabilities such as the council s share of weathertightness claims. In these cases borrowing and repaying the debt over time promotes intergenerational equity by spreading the responsibility for 222

229 Part 3: Our policies and other information 3.1 Revenue and financing policy Funding source Trusts, bequests and other reserve funds Other funding sources Surpluses from previous financial years Table Funding sources for operating expenditure Rationale funding across the generations who will benefit Certain operating expenditure may be funded from restricted or special funds that are subject to special conditions of use, whether under statute or accepted as binding by the council. Transfers from reserves may only be made when the specified conditions for use of the funds are met The use of any other funding sources should be assessed with regard to the guiding principles. Any miscellaneous revenue not linked to a specific activity should be used to fund activities that would otherwise be funded through the general rate A surplus may be available to be carried forward if the actual surplus/(deficit) is improved compared to the forecast surplus/(deficit). Generally, only those factors that are cash in nature will be available for use in determining the level of surplus to be carried forward. The amount of any surplus carried forward will be accounted for as an operating deficit in the year the benefit is passed to ratepayers Note: Auckland Council does not intend to use lump sum contributions or proceeds from asset sales to fund operating expenditure. The funding mix for activities shown in Table below reflects the application of the above principles and rationale to the operating expenditure of individual activities. Sources of funding: Capital expenditure The council has determined the funding sources for capital expenditure after considering the funding principles set out in Table Funding source General rate Targeted rates Fees and charges Interest and dividends from investments Borrowing Table Funding sources for capital expenditure Rationale Appropriate funding source where it is not practicable or cost-effective to identify the individual or group of beneficiaries (or causers of costs) of the capital expenditure Appropriate to fund capital expenditure projects that benefit a specific group of ratepayers or where greater transparency in funding the cost of the activity is desirable Appropriate funding source where users of a service can be identified and charged according to their service. Examples includee water charges and Infrastructure Growth Charges from Watercare Services Limited Interest and dividends from investments may be used where appropriate and consistent with the council s funding principles to fund capital expenditure projects and to reduce the reliance on ratepayer funding. Borrowing is used to spread the funding requirement for capital expenditure across multiple years. Given assets deliver benefits throughout their useful lives it is appropriate that the funding is spread across the useful life Proceeds from asset sales Development or financial contributions Grants, subsidies, and donations Trusts, bequests and other reserve funds Other sources Funds received from the sale of surplus assets will generally be used to repay borrowings. On a case-by-case basis these surpluses may be used to fund investment in another asset of higher strategic priority than the asset sold Appropriate to fund capital expenditure in response to development (growth) that generates a demand for additional reserves, network or community infrastructure (such as stormwater systems). Contributions are set through the council s Contributions Policy Appropriate to fund specific capital expenditure projects as per terms of the grant, subsidy or donation. An example of this is NZTA subsidies to partially fund transport projects Certain capital expenditure may be funded from restricted or special funds that are subject to special conditions of use, whether under statute or accepted as binding by the council. Transfers from reserves may only be made when the specified conditions for use of the funds are met Other revenue sources may be used where appropriate and consistent with the council s funding 223

230 Part 3: Our policies and other information 3.1 Revenue and financing policy Funding source Table Funding sources for capital expenditure Rationale principles to fund capital expenditure projects and to reduce the reliance on ratepayer funding. An example of this is the use of commercial returns from property holdings to fund capital spend on those property assets Note: Auckland Council does not intend to use lump sum contributions to fund capital expenditure. The funding mix for activities shown in Table below reflects the application of the above principles and rationale to the operating and capital expenditure of individual activities. Rating policy The council will use general rates to fund activities which have a public good element, e.g. civil defence, or where it wishes to subsidise the provision of services because of the wider social benefits they provide e.g. libraries. Valuation basis The general rate will be set on the basis of capital value. Capital value better reflects the level of benefit a property is likely to receive from services rather than land value or annual value. Application of a uniform annual general charge To ensure that the rates burden isn t disproportionately borne by higher value properties the council has decided to set a uniform annual general charge (UAGC). Every ratepayer will therefore make a minimum contribution to meeting the council s costs. The charge will apply to every separately used or inhabited part of a rating unit e.g. shop in a mall or granny flat. This ensures equal treatment between these properties and main street shops or apartments on individual titles. Rates differentials It is the council s view that some land uses receive more benefit from, or place more demand on, council services and/or may have a differing ability to pay rates. The differentials will be determined based on land use and location. The council will apply general rates differentially (the base level for rating is the residential sector) and may also apply targeted rates differentially to: businesses in the urban area urban and rural businesses in the former Franklin District Council area business and residential properties in rural areas farm/lifestyle properties properties with no direct or indirect road access and properties on uninhabited islands. The council has decided that the appropriate basis for differential for business is to raise 25.8 per cent of the general rates take, which is substantially lower than the current level. Business rates will move to that level in equal steps by 2036/2037 to manage the affordability impact of the shift in the rates burden to the residential sector. Targeted rates The council mainly uses targeted rates where there is a clearly identifiable group benefiting from a specific council activity. Targeted rates will apply to properties that receive certain services, or which are located in 224

231 Part 3: Our policies and other information 3.1 Revenue and financing policy specified areas. Targeted rates may also apply universally to fund a specific activity where a greater degree of transparency is desired. The council does not have a lump sum contribution policy and will not invite lump sum contributions for any targeted rate. The council intends to set targeted rates to fund activities as set out in Table below. Table 3.1.5: Services to be funded by targeted rates Targeted rate Services to be funded Solid waste targeted rates set in each former council area Refuse, inorganic and recycling services as appropriate in that former council area City centre targeted rate Investment in projects to enhance the central city environs Local targeted rates as proposed by local boards Local activities in the local board s area Business improvement district targeted rates Investments to enhance the environs in the area of the business association as agreed with the business association Loan repayment targeted rates To repay financial assistance provided by the council to ratepayers for specific purposes Waitakere rural sewerage targeted rate To pay for the provision of inspection and pump out services for on-site waste management systems Transport targeted rate Accelerated capital programme for transport Annual adjustments to regulatory fees and charges The council will amend its regulatory fees and charges annually to: reflect increases in costs as measured by the council rate of inflation and/or maintain the cost recovery levels underlying the basis for setting the fee levels. The change to fee levels will be made on a practical basis recognising that the percentage change applied to individual fees may not precisely equal the council rate of inflation. This also means smaller fees may increase by more material amounts in one year and remain constant for a period before being adjusted again. Application of funding principles to the funding of operating and capital expenditure for each activity The council has determined the sources of funding for capital and operating expenditure for each of its activities after considering the principles set out in Table and the rationale for the use of funding sources in Tables and above. A brief summary of the decisions and consideration of funding principles for each activity is set out in table below. Group of Activities Theme: Auckland Development Waterfront Development Table Funding sources for operating and capital expenditure for each activity Activities Consideration of funding principles Funding policy Waterfront Development This involves both commercial operations that deliver private benefits and public initiatives that benefit the community as a whole Costs of commercial operations are funded from user charges and other non-rates revenue Costs of public initiatives are primarily funded from the general rate Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growthrelated public infrastructure Borrowings are used to spread the costs fairly and prudently across 225

232 Part 3: Our policies and other information 3.1 Revenue and financing policy Group of Activities Property Development Activities Consideration of funding principles Funding policy Property Development Lessees, tenants and purchasers derive the full benefit Regional Planning Regional Planning The community as a whole benefit from this activity The city centre redevelopment programme directly benefits businesses in the city centre area through enhancing the quality of the environment in the city centre for workers and visitors Local Planning and development Local Planning and Development - Locally Driven Initiatives Local Planning and Development - Asset Based Services Theme: Economic and Cultural Development The community as a whole benefit from this activity Business improvement districts (BIDs) directly benefit from council expenditure on local economic development made at their direction The rest of the council s service in local planning and development benefits the community as a whole different generations of ratepayers and to address cash-flow timing differences Costs are fully funded from lease revenue, rents and the sale of development properties Borrowings are used to address cash-flow timing differences Costs are primarily funded from the general rate Costs associated with the city centre redevelopment programme are funded from a combination of the city centre targeted rate and general rates Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growthrelated public infrastructure Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Costs are fully funded from the general rate Revenue from any other sources (including from any user charges, targeted rate, grants, donations and sponsorships) will be utilised should they become available Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Grants provided to each BID for spending in the BID area are funded from the respective BID targeted rate Revenue from any other sources (including from any user charges, targeted rate, grants, donations and sponsorships) will be utilised should they become available The balance of the costs are funded from the general rate Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Economic Growth and Visitor Economy Economic Growth and Visitor Economy The related industries benefit from increased visitor numbers The community as a whole benefit from growth in the economy and employment Costs are primarily funded from the general rate Subsidies from government and other sources are utilised where available User charges are applied where benefits are private (event tickets) 226

233 Part 3: Our policies and other information 3.1 Revenue and financing policy Group of Activities Activities Consideration of funding principles Funding policy Regional Facilities Regional Facilities Users of the facilities derive a direct benefit The community as a whole benefit through a more diverse and vibrant lifestyle and an increased sense of pride and identity created by the events hosted in the facilities An enhancement to the overall economy and employment resulting from increased visitor numbers Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences The majority of the costs are funded from the general rate with the balance funded from user charges such as venue hire Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Theme: Environmental Management and Regulation Regulation Regulation The need for the council involvement is mainly caused by licence or consent applicants or holders whose activities, if unregulated, could cause nuisance to the public or pose a threat to the safety or health of the community In some cases it is difficult to identify and charge the parties who cause the costs (e.g. owners of unregistered dogs) In some cases charging the full cost may discourage compliance Certain related services (e.g. provision of property information) deliver private benefit to users Solid Waste and Environmental Services Solid Waste and Environmental Services Service users derive a direct benefit The waste minimisation goals set by the council support recycling and resource recovery initiatives The community as a whole benefit from the public services such as public litter bin clearing, waste minimisation education and hazardous waste collection and disposal In some cases it is difficult to identify and charge the parties who cause the costs (e.g. illegal dumping) The provision of civil defence is a public good that benefits the community as a whole Costs are primarily funded from user charges Certain charges are set at a level below cost to encourage compliance, with the balance funded from general rates Where costs cannot be easily attributed to individual parties, they are funded from the general rate Targeted rates are used where there is a clearly identifiable group benefiting from a specific council activity (e.g. on-site sewerage pump out) Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences The funding policy outlined below will be implemented over time in conjunction with the implementation of the council s Waste Management and Minimisation Plan (WMMP) Costs for the collection and disposal of refuse will be funded from user charges. However, until full implementation of the WMMP a combination of targeted rates and charges will be used Costs for recycling and resource recovery initiatives are funded from targeted rates Subsidies from government and other sources are utilised where available Where the benefit is public or it is difficult to identify the exacerbators, the costs will be funded from the general rate Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing 227

234 Part 3: Our policies and other information 3.1 Revenue and financing policy Group of Activities Local Environmental Management Stormwater Management Activities Consideration of funding principles Funding policy Local Environment - Locally Driven Initiatives Local Environment - Asset Based Services Stormwater Management Theme: Governance and Support These are public goods that benefit the community as a whole These are public goods that benefit the community as a whole (except for a small number of local projects that benefit a specific group of ratepayers) differences Costs associated with civil defence are funded from the general rate Costs are fully funded from the general rate Revenue from any other sources (including from any user charges, targeted rate, grants, donations and sponsorships) will be utilised should they become available Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Costs are primarily funded from the general rate Targeted rates are used where financial assistance is provided by the council for a specific group of ratepayers to fund local projects that solely benefit those ratepayers Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growthrelated public infrastructure Financial contributions are used to fund the costs of environmental mitigation through the resource consent process Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Regional Governance Local Governance Organisational Support Regional Governance Local Support Services Organisational Support These are public goods that benefit the community as a whole Certain services within this activity (e.g. provision of financial assistance to certain ratepayers and supply of information for commercial or private use) deliver private benefits The remainder of the activity contributes to the council s provision of other external services Costs are primarily funded from the general rate 1 Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Targeted rates are used where financial assistance is provided by the council for a specific group of ratepayers to fund local projects that solely benefit those ratepayers There is a small amount of revenue from fees and charges The remainder of the costs are allocated to the council s external services Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences 1 Revenue from council owned cafeteria is currently grouped under this activity and is used to offset the general rate. 228

235 Part 3: Our policies and other information 3.1 Revenue and financing policy Group of Activities Activities Consideration of funding principles Funding policy Investment Investment All ratepayers as a whole bear the risk of the investments Theme: Parks, Community and Lifestyle Any profit realised is used to reduce the general rate requirement Any loss would be funded from the general rate or other revenue Borrowings are used to address cash-flow timing differences Regional Parks, Sport and Recreation Local Parks, Sport and Recreation Regional Community Services Local Community Services Regional Parks, Sport and Recreation Local Parks, Sports and Recreation - Locally Driven Initiatives Local Parks, Sports and Recreation - Asset Based Services Regional Community Services Local Community Services - Locally Driven Initiatives Local Community Services - Asset Based Services Service users derive a direct benefit The community as a whole benefit from access to high quality open space In most cases it is impractical to directly charge users In some cases the service is private and a charge can be implemented (e.g. use of park space or facilities for private functions) Service users derive a direct benefit The wider public benefit from a more vibrant and friendly community and a safer community environment The target recipients of the services may have affordability issues Costs are primarily funded from the general rate User charges may apply where the service is private and a charge can be implemented Subsidies from government and other sources (including from any targeted rate, grants, donations and sponsorships) are utilised where available Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growthrelated public infrastructure Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Costs are primarily funded from the general rate User charges may apply where the service is private and a charge will not compromise the council s social objectives Subsidies from government and other sources, (including from any targeted rate, grants, donations and sponsorships) are utilised where available Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growthrelated public infrastructure Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Theme: Transport Roads and Footpaths Roads and Footpaths Road and footpath users derive a direct benefit There are legal and practical constraints in directly charging users The vast majority of the public are users Costs are funded predominantly from the general rate Government grants are utilised where available Targeted rates applied universally on a differential basis (business and non-business) are used where a greater degree of transparency is desired. Targeted rates may also be used where financial assistance is provided by the council for a 229

236 Part 3: Our policies and other information 3.1 Revenue and financing policy Group of Activities Public Transport and Travel Demand Management Activities Consideration of funding principles Funding policy Public Transport and Travel Demand Management Service users derive a direct benefit Public transport provides benefit for the wider community by reducing demand from private transportation for roading infrastructure Parking and Enforcement Parking and Enforcement Parking customers derive the full benefit Individuals failing to comply with restrictions create the need for the council involvement Theme: Water Supply and wastewater treatment and disposal specific group of ratepayers to fund local projects that solely benefit those ratepayers Costs associated with the city centre redevelopment programme are funded from a combination of the city centre targeted rate and general rates Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growthrelated public infrastructure Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Costs are funded from a combination of the general rate, user charges and government grants Targeted rates applied universally on a differential basis (business and non-business) are used where a greater degree of transparency is desired Development contributions are used to fund the majority of the total cost of interest and capital expenditure on qualifying growthrelated public infrastructure Borrowings are used to spread the costs fairly and prudently across different generations of ratepayers and to address cash-flow timing differences Costs are fully funded from user charges and fines Borrowings are used to address cash-flow timing differences Water Supply Water Supply Water and wastewater customers Wastewater Wastewater derive the full benefit Disposal Costs are fully funded from user charges Borrowings are used to spread the costs fairly and prudently across different generations of water users and to address cash-flow timing differences 230

237 Part 3: Our policies and other information 3.2 Prospective funding impact statement 3.2 Prospective funding impact statement Funding impact statement for (whole of council) Auckland Council group consolidated $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 1,342,891 1,393,889 1,461,017 1,537,281 1,620,155 1,706,539 1,800,116 1,898,421 2,001,024 2,108,446 2,219,774 Targeted rates 107, , , , , , , , , , ,425 Subsidies and grants for operating purposes 242, , , , , , , , , , ,494 Fees and charges 1,070,784 1,143,073 1,303,193 1,401,157 1,458,032 Interest and dividends from investments Local authorities fuel tax, fines, infringement fees and other receipts 48,751 47,978 50,731 52,688 53, , , , , ,824 Total operating funding 2,977,739 3,193,823 3,464,710 3,674,871 3,775,895 1,505,440 1,557,133 1,613,999 1,685,184 1,745,138 1,810,295 54,924 56,402 57,961 59,585 61,212 62, , , , , , ,439 3,924,885 4,069,618 4,244,588 4,443,599 4,628,934 4,822,275 Applications of operating funding: Payment to staff and suppliers 2,141,340 2,182,589 2,331,344 2,386,453 2,452,611 Finance costs 393, , , , ,054 Other operating funding applications 11,285 11,958 13,123 15,390 16,600 Total applications of operating funding 2,546,340 2,622,964 2,819,596 2,912,731 2,991,265 2,524,981 2,590,419 2,657,753 2,765,956 2,851,883 2,944, , , , , , ,795 15,091 17,952 18,397 15,241 15,799 16,366 3,079,451 3,170,686 3,267,009 3,404,103 3,511,844 3,615,403 Surplus (deficit) of operating funding 431, , , , , , , ,579 1,039,496 1,117,090 1,206,

238 Part 3: Our policies and other information 3.2 Prospective funding impact statement $ / / / / / / / / / / /25 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions 201, , , , , , , , , , , , , , , , , , , , , ,080 Increase (decrease) in debt 944, , , , , , , , , , ,678 Gross proceeds from sale of assets 58,914 69,172 67,120 52,651 55,973 45,424 47,059 48,754 48,754 48,754 48,754 Lump sum contributions Other dedicated capital funding Total sources of capital funding 1,324,943 1,287,832 1,316,355 1,006, , ,663 1,101,194 1,360,945 1,121, , ,978 Application of capital funding: Capital expenditure: - to meet additional demand 444, , , , , , , , , , ,741 - to improve the level of service 705, , , , , , ,484 1,036, , , ,330 - to replace existing assets 525, , , , , , , , , , ,094 Increase (decrease) in reserves 74,386 53,854 54,331 56,605 30,392 27,681 27,632 25,710 8,108 1, Increase (decrease) in investments 6,756 3,097 (4,138) 68,106 69,103 (34,897) (40,120) (61,326) 71,792 53,490 44,169 Total applications of capital funding 1,756,342 1,858,691 1,961,469 1,768,192 1,628,223 1,684,097 2,000,126 2,338,524 2,161,479 1,898,198 1,831,850 Surplus (deficit) of capital funding (431,399) (570,859) (645,114) (762,140) (784,630) (845,434) (898,932) (977,579) (1,039,496) (1,117,090) (1,206,872) Funding balance

239 Part 3: Our policies and other information 3.2 Prospective funding impact statement Rating mechanisms This section sets out how the council will set its rates for 2015/2016. It explains the basis on which each ratepayer s rating liability will be assessed. In addition it covers the council s early payment discount policy. Background In 2014 the council undertook the triennial revaluation of all properties in Auckland. This will result in large changes in rates for some properties from 1 July In addition, there are a small number of residential and farm/lifestyle properties that had not yet fully transitioned to their new rates. In 2015/2016, no further rates transition will apply and that rates will be applied consistently across the region with similar value properties paying similar amounts of rates. Details The council s general rate is made up of the uniform annual general charge (UAGC) and the value-based general rate. Revenue from the general rate is used to fund council activities that are deemed to generally and equally benefit Auckland and on activities which user pays are not applied. How the increase in the rate requirement is applied The increase in the general rate requirement will be split to maintain the proportion of the UAGC at around 13.4 per cent of the general rate. Uniform annual general charge (UAGC) and other fixed rates The UAGC is a fixed rate that is used to fund general council activities. The council will apply the UAGC per separately used and inhabited part (SUIP). The definition of a separately used or inhabited part of a rating unit is set out in the following section. Where two or more contiguous rating units are owned by the same person or persons, and are used jointly as a single unit, the ratepayer will be liable for only one uniform annual general charge. The council will also set the following targeted rates which will have a fixed rate component: Transport levy Waste management targeted rate part of some Business Improvement District targeted rates City centre targeted rate for residential properties Point Wells wastewater targeted rate Jackson Crescent wastewater targeted rate Riverhaven Drive targeted rate Waitākere rural sewerage targeted rate Ōtara-Papatoetoe swimming pool targeted rate Māngere-Ōtāhuhu swimming pool targeted rate. Funds raised by uniform fixed rates, which include the UAGC and any targeted rate set on a uniform fixed basis, cannot exceed 30 per cent of total rates revenue. 2 2 Section 21 of Local Government (Rating) Act

240 Part 3: Our policies and other information 3.2 Prospective funding impact statement A UAGC of $385 (including GST) will be applied per SUIP for 2015/2016. This is estimated to produce around $193.7 million (excluding GST) for 2015/2016 and equates to 13.6 per cent of general rates revenue and 12.1 per cent of total rates revenue. Revenue from all fixed charges (including the UAGC and targeted rates listed above) is estimated to produce $331.6 million (excluding GST) or 20.7 per cent of its rates revenue in 2015/2016. The definition of a separately used or inhabited part of a rating unit The council defines a separately used or inhabited part (SUIP) of a rating unit as any part of a rating unit that is separately used or inhabited by the ratepayer, or by any other person having a right to use or inhabit that part by virtue of a tenancy, lease, licence or any other agreement. For the purposes of this definition, parts of a rating unit will be treated as separately used if they come within different differential categories, which are based on use. An example would be a rating unit that has a shop on the ground floor (which would be rated as business) and a residence upstairs (rated as residential). Rating units used for commercial accommodation purposes, such as motels and hotels, will be treated for rating purposes as having one separately used or inhabited part, unless there are multiple businesses within the rating unit or another rating differential applies. Examples of how this might apply in practice are as follows: a business operating a motel on a rating unit will be treated for rating purposes as a single separately used or inhabited part. If that rating unit also includes a residential unit, in which the manager or owner resides, then the rating unit will be treated for rating purposes as having two separately used or inhabited parts a hotel will be treated for rating purposes as a single separately used or inhabited part, irrespective of the number of rooms. If, on the premises, there is a florist business and a souvenir business, then the rating unit will be treated for rating purposes as having three separately used or inhabited parts. A similar approach applies to universities, hospitals, rest homes and storage container businesses. Vacant land will be treated for rating purposes as having one separately used or inhabited part. Rating units that have licence to occupy titles, such as some retirement villages or rest homes, will be treated as having a separately used or inhabited part for each part of the property covered by a licence to occupy. Value-based general rate The value-based general rate will be assessed on capital value and is assessed by multiplying the capital value of a rating unit by the rate per dollar that applies to that ratepayer group. Rates differentials General and targeted rates can be charged on a differential basis. This means that a differential is applied to the rate or rates so that some ratepayers may pay more or less than others with the same value rating unit. In 2015/2016, the Sea only access differential category was renamed to No road access and now includes rating units that have no direct or indirect road access. The differential for urban residential land is set at Business land attracts higher rates differentials than residential land. Lower differentials are applied to rural, farm/lifestyle and no road access land. The council defines its rates differential categories using land use and location. The definition for each rates differential category is listed in the table below. For clarity, where different parts of a rating unit fall within different differential categories then rates will be assessed for each part according to its differential category. Each part will also be classified as being a separate SUIP (see definition above). 234

241 Part 3: Our policies and other information 3.2 Prospective funding impact statement Rates differential definitions Differential group Definition Urban business Land in the Metropolitan Urban Limit (MUL), including vacant land that has a land use classification of commercial, industrial, transport, utility or public communal licensed. Also includes any land that is used for community services, but which is used for commercial, or governmental purposes, or which is covered by a liquor licence Franklin urban business Urban residential Rural business Franklin rural business Rural residential Farm and lifestyle Land in Pukekohe township, including vacant land that has a land use classification of commercial, industrial, transport, utility or public communal licensed. Also includes any land that is used for community services, but which is used for commercial, or governmental purposes, or which is covered by a liquor licence Land in the MUL, as well as land within the Pukekohe township that is used exclusively or almost exclusively, for residential purposes, and includes tenanted residential land, rest homes and geriatric hospitals. It excludes hotels, motels, serviced apartments, boarding houses and hostels. (1) Land used for community services and used by a not for profit ratepayer for the benefit of the community will be charged the residential rate Land outside the MUL, including vacant land, that has a land use classification of commercial, industrial, transport, utility network (2), or public communal licensed. Also includes any land that is used for community services, but which is used for commercial, or governmental purposes, or which is covered by a liquor licence Land outside Pukekohe township that is in the area of the former Franklin District Council, including vacant land, that has a land use classification of commercial, industrial, transport, utility (2) or public communal licensed. Also includes any land that is used for community services, but which is used for commercial, or governmental purposes, or which is covered by a liquor licence Land outside the MUL that is used exclusively or almost exclusively for residential purposes, and includes tenanted residential land, rest homes and geriatric hospitals. It excludes hotels, motels, serviced apartments, boarding houses and hostels (1). Land used for community services and used by a not for profit ratepayer for the benefit of the community will be charged the residential rate Any property with a land use classification of lifestyle or rural industry, excluding mineral extraction No road access Includes all land (irrespective of use) for which direct or indirect access by road is unavailable or provided for, and all land situated on the islands of Ihumoana, Kaikoura, Karamuramu, Kauwahia, Kawau, Little Barrier, Mokohinau, Motahaku, Motuketekete, Motutapu, Motuihe, Pakatoa, Pakihi, Ponui, Rabbit, Rakitu, Rangiahua, Rotoroa and The Noises Uninhabitable islands Includes land on all Hauraki Gulf islands and Manukau Harbour other than the islands named in the definition of No road access Notes to table: 1. Hotels, motels, serviced apartments, boarding houses and hostels will be rated business except when the land owner provides proof that the land is used exclusively or almost exclusively for residential purposes. Land owners must provide proof of long-term stay (at least 90 days) for over 50 per cent of the units, as at 30 June each year. Proof should be in the form of a residential tenancy agreement or similar documentation. 2. Utility networks are classed as rural business differential. However, all other utility rating units are classified based on their land use and location. The long-term differential strategy The council will continue to lower rates for businesses by applying the long-term differential strategy to its valuebased general rate. From 2015/2016 the impact on non-business land will be reduced by extending the duration of the strategy. In 2015/2016 the business differential ratios will be set so that 33.0 per cent of general rates come from businesses. This will reduce in equal steps to 25.8 per cent by 2036/2037. Moving to lower rates for businesses will involve progressively shifting some of the general rates from business ratepayers to other ratepayers. This is estimated to increase rates for residential and farm/lifestyle properties by a further 0.5 per cent for each year until 2036/2037. The council considers that increases greater than this would be less affordable for some residential ratepayers. The Franklin businesses have a lower initial differential compared to other businesses. The Franklin business differential had been due to increase to reach parity with other business differentials in 2015/2016. The council 235

242 Part 3: Our policies and other information 3.2 Prospective funding impact statement is now increasing the Franklin business differential in equal steps so that it reaches parity with other businesses in 2016/2017. The table below sets out the rates differentials and rates in the dollar of capital value to be applied in 2015/2016. This is estimated to produce around $1,227 million (excluding GST) for 2015/2016. Value-based general rate differentials for 2015/2016 Property category Relative differential ratio for general rate for 2015/2016 Rate in the dollar for 2015/2016 (including GST) ($) Share of value-based general rate (excluding GST) ($) Share of valuebased general rate (%) Urban business ,061, % Franklin urban business ,466, % Urban residential ,800, % Rural business ,093, % Franklin rural business ,562, % Rural residential ,473, % Farm and lifestyle ,369, % No road access , % Uninhabitable island (1) Note to table: 1. Uninhabitable islands ratepayers are liable for the UAGC only, which is automatically remitted through a specific rate remission policy. Land subject to section 22 of the Local Government (Rating) Act 2002, or Section 73 of the Local Government (Auckland Council) Act 2009, for example Watercare land and defence land, will be assessed on the land value rates in the dollar set out in the following table. Land value general rates Differential group Rate in the dollar for 2015/2016 (including GST) to be based on the land value of the property ($) Urban business Franklin urban business Rural business Franklin rural business Targeted rates The council does not have a lump sum contribution policy and will not invite lump sum contributions for any targeted rate. Unless otherwise specified, the targeted rates listed in this Funding Impact Statement are to be used as sources of funding for the duration of this long-term plan. 236

243 Part 3: Our policies and other information 3.2 Prospective funding impact statement Transport levy Background The council is funding an accelerated transport programme from 2015/2016 to 2017/2018 to provide better transport outcomes than the basic programme consulted for the Long-term plan Activities to be funded The Transport levy will be used to help fund the capital costs of the accelerated transport programme. The Transport levy will apply from 2015/2016 to 2017/2018. How the rate will be assessed A differentiated targeted rate will be applied as fixed amount per SUIP on all rateable land except land classified as Uninhabited Islands as defined for rating purposes. A targeted rate of $ (including GST) per SUIP will be applied to all rateable land classified as business (Urban business, Franklin urban business, Rural business, and Franklin rural business) as defined for rating purposes, and $ (including GST) per SUIP to all rateable land not classified as business (Urban residential, Rural residential, Farm and lifestyle, and No road access) as defined for rating purposes. The fixed amounts will remain at this level for three years. This is estimated to produce around $60.8 million (excluding GST) for 2015/2016, $8.9 million from business and $51.9 million from non-business. Waste Management targeted rate Background The level of waste management services provided, the cost of providing those services, and how they are funded varies across Auckland. Information on the solid waste strategy can be found in the Auckland Waste Management and Minimisation Plan on the council s website. The public benefit component of providing waste management services is funded through the general rate. Where user charges apply, these will continue. The balance of funding required to provide waste management services will be met by a differentiated targeted rate. These will differ for each former council area, depending on the level of service provided and the proportion of cost recovery through user charges. Activities to be funded The targeted rate for waste management is used to fund refuse collection and disposal services (including the inorganic refuse collection), refuse recycling and waste transfer stations. How the rate will be assessed For land outside of the district of the former Auckland City Council where a service is provided or available, the targeted rate for waste management will be charged on a per SUIP basis. See the UAGC section prior for the council s definition of a SUIP. Land which has an approved alternative service will not be charged a targeted rate for waste management. For land within the district of the former Auckland City Council, the targeted rate for waste management will be charged based of the number and type of services supplied or available to each rating unit. For rating units made up of one SUIP, the council will provide one refuse collection service. For rating units made up of more than one SUIP, the council will provide the same service as was provided at 1 July 2015, unless otherwise informed by the owner of the rating unit (that is, at least one refuse collection service, and up to a maximum of one refuse collection service per SUIP). If additional recycling services are supplied then the additional recycling 237

244 Part 3: Our policies and other information 3.2 Prospective funding impact statement service rate will apply. Land which has an approved alternative service will be charged the waste service charge that excludes the approved alternative service or services. In the future, the waste management targeted rate may be adjusted to reflect changes in the types and costs of providing waste management services to reflect the introduction of the Auckland Waste Management and Minimisation Plan. The following table sets out the waste management targeted rates to be applied in 2015/2016. This is estimated to produce around $73.6 million (excluding GST) for 2015/2016. Waste management rates Differential group Waste management targeted rate Amount of targeted rate ($ including GST) Charging basis Share of targeted rate (excluding GST) ($) Rating units in the former Auckland City Waste management full service Per available service 31,776,501 Waste management where refuse opt out applies Per available service 117,097 Waste management where recycling opt out applies Per available service 6,082 Waste management where both refuse and recycling opt out applies Per available service 548,536 Waste management additional recycling charge Per service provided 51,896 Rating units in the former Franklin District Waste management refuse collection Per SUIP 542,482 Rating units in the former Franklin District (1) Waste management recycling collection Per SUIP 752,708 Rating units in the former Manukau City Rating units in the former North Shore City Rating units in the former Papakura District Rating units in the former Rodney District Rating units in the former Waitākere City Waste management Per SUIP 20,979,630 Waste management Per SUIP 7,194,416 Waste management Per SUIP 1,677,608 Waste management Per SUIP 4,175,609 Waste management Per SUIP 5,765,819 Note to table: 1. The Franklin District recycling targeted rate applies to rating units in the Pukekohe, Waiuku and Clarks Beach / Waiau Pa collection areas. 238

245 Part 3: Our policies and other information 3.2 Prospective funding impact statement City centre targeted rate Background The City Centre targeted rate is to help fund the development and revitalisation of the city centre. The rate applies to business and residential land in the City Centre area. Activities to be funded The City Centre redevelopment programme aims to enhance the city centre as a place to work, live, visit and do business. It achieves this by providing a high-quality urban environment, promoting the competitive advantages of the city centre as a business location, and promoting the city centre as a place for high-quality education, research and development. The programme intends to reinforce and promote the city centre as a centre for arts and culture, with a unique identity as the heart and soul of Auckland. The targeted rate will continue until 2024/2025 to cover capital and operating expenditure generated by the projects in the City Centre redevelopment programme. From 2015/2016, unspent funds from the targeted rate will be used to transition the depreciation and consequential operating costs of capital works to the general rate so that from 2019/2020 these costs will be entirely funded from general rates. How the rate will be assessed A differentiated targeted rate will be applied to business and residential land, as defined for rating purposes, in the city centre. You can view a map of the city centre area at or at any Auckland Council library or service centre. A rate in the dollar of $ (including GST) of rateable capital value will be applied to business land in 2015/2016. This is estimated to produce around $20.3 million (excluding GST) for 2015/2016. A fixed rate of $57.50 (including GST) per SUIP will be applied to residential land in 2015/2016. This is estimated to produce around $0.9 million (excluding GST) for 2015/2016. Business Improvement District targeted rate Background Business Improvement Districts (BID) are areas within Auckland where local businesses have agreed to work together, with support from the council, to improve their business environment and attract new businesses and customers. The funding for these initiatives comes from BID targeted rates, which the businesses within a set boundary have voted and agreed to pay to fund BID projects and activities. Activities to be funded The main objectives of the BID programmes are to enhance the physical environment, promote business attraction, retention and development, and increase employment and local business investment in BID areas. The programmes may also involve community development, and are intended to identify and reinforce the unique identity of a place and to promote that identity as part of its development. How liability will be assessed The BID targeted rates will be applied to business land, as defined for rating purposes, that is located in defined areas in commercial centres outlined in the following table. For maps of the areas where the BID rates will apply, go to The BID targeted rates will be assessed using a fixed rate and value-based rate on the capital value of the property. Each BID area can decide to have part of its budget funded from a fixed rate of between $0 to $

246 Part 3: Our policies and other information 3.2 Prospective funding impact statement (including GST) per property. The remaining budget requirement will be funded from a value-based rate for each area and be applied as a rate in the dollar. There will be different rates for each BID programme. The table below sets out the budgets and the rates for each BID area that the council will apply in 2015/2016. This is estimated to produce around $15.4 million (excluding GST) for 2015/2016. Business Improvement Districts fixed rate per rating unit and rates in the dollar of capital value BID area Budget for 2015/2016 (excluding GST) ($) Amount to be funded by fixed charge for 2015/16 (excluding GST) ($) Fixed rate per rating unit for 2015/2016 (including GST) ($) Amount to be funded by property value rate based on the capital value of the rating unit for 2015/2016 (excluding GST) ($) Rate in the dollar for 2015/2016 to be multiplied by the capital value of the rating unit (including GST) ($) Avondale 126, , Birkenhead 187, , Blockhouse Bay 54, , Browns Bay 110, , Devonport 120,000 17, , Dominion Road 180, , Ellerslie 142, , Glen Eden 45, , Glen Innes 166, , Greater East Tamaki 500, , , Heart of the City 4,262, ,262, Howick 147, , Hunters Corner 126, , Karangahape Road 363, , Kingsland 210, , Mairangi Bay 50,820 5, , Māngere Bridge 29, , Māngere East Village 6, , Māngere Town 296, , Manukau Central 206, , Manurewa 135, , Milford 132, , Mt Eden Village 84, , New Lynn 145, , Newmarket 1,516, ,516, North Harbour 523, , ,

247 Part 3: Our policies and other information 3.2 Prospective funding impact statement BID area North West District Budget for 2015/2016 (excluding GST) ($) Amount to be funded by fixed charge for 2015/16 (excluding GST) ($) Fixed rate per rating unit for 2015/2016 (including GST) ($) Amount to be funded by property value rate based on the capital value of the rating unit for 2015/2016 Rate in the dollar for 2015/2016 to be multiplied by the capital value of the rating unit (excluding GST) (including GST) ($) ($) 180,000 88, , Northcote 120, , Old Papatoetoe 100, , Onehunga 405, , Ōrewa 193, , Ōtāhuhu 570, , Ōtara 76, , Panmure 422, , Papakura 173, , Parnell 700, , Ponsonby 354, , Pukekohe 402, , Remuera 242, , Rosebank 395, , South Harbour 79, , St Heliers 138, , Takapuna 366, , Te Atatu 82, , Torbay 13, , Uptown 155, , Waiuku 110, , Wiri 199, , Total 15,350, ,441 14,610,560 Note to table: Land subject to section 22 of the Local Government (Rating) Act 2002 or Section 73 of the Local Government Auckland Council Amendment Act 2010 will be assessed on the land value rates in the dollar shown in table below. 241

248 Part 3: Our policies and other information 3.2 Prospective funding impact statement Business Improvement Districts fixed rate per property and rates in the dollar of land value BID Fixed rate per rating unit for 2015/2016 (including GST) ($) Rate in the dollar for 2015/2016 (including GST) to be based on the land value of the rating unit ($) Greater East Tāmaki Onehunga Pukekohe Rosebank Māngere-Ōtāhuhu and Ōtara-Papatoetoe swimming pool targeted rates Background Auckland Council has a region-wide swimming pool pricing policy, whereby children 16 years and under have free access to swimming pool facilities and all adults are charged. These targeted rates fund free access to swimming pools for adults 17 years and over in the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas. Activities to be funded To fund the cost of free adult entry to swimming pool facilities in the Māngere-Ōtāhuhu Local Board and Ōtara- Papatoetoe Local Board areas. How liability will be assessed These local activity targeted rates apply to all residential land, as defined for rating purposes that are located in the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas. How the rate will be assessed The local activity targeted rate will be assessed using a fixed rate applied to each separately used or inhabited part of a residential property, as defined for rating purposes, in the Māngere-Ōtāhuhu Local Board and Ōtara- Papatoetoe Local Board areas. There will be a different fixed rate for each local board area. The following table sets out the local activity targeted rates that apply in 2015/2016 for the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas. This is estimated to produce around $1 million (excluding GST) for 2015/2016. Local activity targeted rates Local board area Fixed rate for each separately used or inhabited part of a rating unit (including GST) ($) Revenue from the targeted rate (excluding GST) ($) Māngere-Ōtāhuhu ,424 Ōtara-Papatoetoe ,

249 Part 3: Our policies and other information 3.2 Prospective funding impact statement Riverhaven Drive targeted rate The council has constructed Riverhaven Drive for the benefit of the rating units in the immediate area. The construction of the road and the payment of the rate have been agreed with the association representing the owners of the rating units. The Riverhaven Drive targeted rate is used to repay the council for the cost of the road, including interest costs. The targeted rate applies to the land which benefits from the construction of a road that provides access to the rating unit. The rate will apply until the cost of the project is recovered. The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 25 years (2006/2007 to 2030/2031). The outstanding balance will reduce each year as the principal is repaid. The council will apply a uniform rate of $10, (including GST) per rating unit for 2015/2016. This is estimated to produce around $90,000 (excluding GST) for 2015/2016. Glorit Flood Gate Restoration targeted rate A targeted rate for three rating units, detailed below, to recover the cost of Glorit flood gate restoration. The rate will apply until the cost of the project is recovered. The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 10 years (2009/2010 to 2018/2019). The cost of works, together with interest and administration charges are apportioned on an area of benefit basis. The following table sets out the Glorit Flood Gate Restoration targeted rates for 2015/2016. This is estimated to produce around $38,000 (excluding GST) for 2015/2016. Glorit Flood Gate Restoration targeted rate Valuation number Legal description (abbreviated) Area of benefit in hectares Amount of targeted rate (including GST) ($) Sec 27 SO , Lot 5 DP Sec 2 SO , Waitākere rural sewerage targeted rate The Waitākere rural sewerage targeted rate is set as a uniform charge on all rating units in the Non-Drainage Area of the former district of the Waitākere City Council where there are on-site waste management systems that are scheduled to be inspected and/or pumped out by the council within the three-yearly cycle, to recover the costs of implementation of the On-site Waste Systems Management Plan. The uniform charge is levied in respect of each on site waste management system utilised in conjunction with the particular rating unit. For 2015/2016 the council will apply a uniform rate of $ (including GST) for each on-site waste management system utilised in conjunction with the rating unit. This is estimated to produce around $0.7 million (excluding GST) for 2015/2016. Retro-fit your home targeted rate The Retro-fit Your Home targeted rate is set on land that has received financial assistance from Auckland Council for the installation of clean heat, insulation, water conservation, mechanical extraction and fire place decommissioning in respect of the land. 243

250 Part 3: Our policies and other information 3.2 Prospective funding impact statement The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for nine years. The outstanding balance will reduce each year as the principal is repaid. The targeted rate will apply as a rate in the dollar, which is multiplied against the ratepayer s outstanding balance as at 1 July each year. The rate in the dollar is set at different levels for each year that the ratepayer has been repaying the financial assistance. The following table sets out the Retro-fit Your Home targeted rate that the council will apply in 2015/2016. This is estimated to produce around $4.5 million (excluding GST) for 2015/2016. Retro-fit your home targeted rate Year of repayment Rate in the dollar for 2015/2016 to be multiplied by the ratepayers outstanding balance as at 1 July 2015 (including GST) ($) Kumeu Huapai Riverhead wastewater targeted rate The Kumeu Huapai Riverhead wastewater targeted rate is set on land that has received financial assistance from Auckland Council for the purchase and installation of equipment for pumping waste from the property to Watercare s pressurised wastewater scheme. The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 15 years. The outstanding balance will reduce each year as the principal is repaid. The targeted rate will apply as a rate in the dollar, which is multiplied against the ratepayer s outstanding balance as at 1 July each year. The rate in the dollar is set at different levels for each year that the ratepayer has been repaying the financial assistance. The following table sets out the Kumeu Huapai Riverhead wastewater targeted rate that council will apply in 2015/2016. This is estimated to produce around $16,000 (excluding GST) for 2015/2016. Kumeu Huapai Riverhead wastewater targeted rate Year of repayment Rate in the dollar for 2015/2016 to be multiplied by the ratepayers outstanding balance as at 1 July 2015 (including GST) ($) Point Wells wastewater targeted rate The Point Wells wastewater targeted rate is set on land that received financial assistance to connect to the pressure wastewater collection (PWC) scheme in Point Wells area. The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year according to the amount of assistance provided. The targeted rate will apply for 15 years (2009/2010 to 2023/2024). The outstanding balance will reduce each year as the principal is repaid. 244

251 Part 3: Our policies and other information 3.2 Prospective funding impact statement The following table sets out the Point Wells wastewater targeted rate that council will apply in 2015/2016. This is estimated to produce around $15,000 (excluding GST) for 2015/2016. Point Wells wastewater targeted rate Total assistance provided Amount of targeted rate (including GST) ($) $10, $9, $9, $8, $8, Jackson Crescent wastewater targeted rate The Jackson Crescent wastewater targeted rate is set on the rating unit that received financial assistance to connect to the pressure wastewater collection (PWC) scheme in Jackson Crescent, Martins Bay area. The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 15 years (2009/2010 to 2023/2024). The outstanding balance will reduce each year as the principal is repaid. The council will apply a uniform rate of $ (including GST) per rating unit in 2015/2016. This is estimated to produce $529 (excluding GST) for 2015/2016. Rates payable by instalment Rates will be payable by four equal instalments due on: Instalment 1: 31 August 2015 Instalment 2: 27 November 2015 Instalment 3: 26 February 2016 Instalment 4: 27 May It is council policy that any payments received will be applied to the oldest outstanding rates before being applied to the current rates. Penalties on rates not paid by the due date The council will apply a penalty of 10 per cent of the amount of rates assessed under each instalment in the 2015/2016 financial year that are unpaid after the due date of each instalment. Any penalty will be applied to unpaid rates on the day following the due date of the instalment. A further 10 per cent penalty calculated on former years rate arrears to be added on the first business day of the new financial year (or five days after the rates resolution is adopted, whichever is the later) and then again six months later. 245

252 Part 3: Our policies and other information 3.2 Prospective funding impact statement Early payment discount policy Objectives The council encourages ratepayers to pay their rates in full by the date that their first instalment is due by providing a discount. Conditions and criteria Ratepayers will qualify for the discount rate from of their annual rates if all their rates are paid in full, together with any outstanding prior years rates and penalties, by 5.00pm on the day their first rates instalment for the new financial year is due. Delegation of decision making Decisions about applying the discount will be made by staff. Review process The council will set the rate of discount that ratepayers are eligible for on an annual basis. The discount will be set to return to those ratepayers making an early payment the interest cost saving to the council. The interest cost saving will be set based on the council s short term cost of borrowing for the financial year in which the discount will apply. In making this forecast the council will take into account current market interest rate forecasts provided by financial institutions. The reviewed discount rate will be adopted by a council resolution at the same time as other rates-related decisions are made as part of its annual plan or long-term plan decision making process. If the council wants to make any significant change to the discount policy, it must consult with the public. Discount in 2015/2016 The discount is 1.4 per cent for 2015/2016. Sample properties The following section is intended to provide examples of the individual rates for 2015/2016.The following targeted rates are not shown: Business improvement district targeted rates Kumeu Huapai Riverhead wastewater targeted rate Riverhaven Drive targeted rate Glorit Flood Gate Restoration targeted rate Point Wells wastewater targeted rate Jackson Crescent wastewater targeted rate For more information on these and other rates please see the relevant section of the Rating mechanism. 246

253 Part 3: Our policies and other information 3.2 Prospective funding impact statement General rates and Transport levy The table below shows indicative general rates and Transport levy for fully rateable rating units with one SUIP at different values for each of the main differential categories. An extra UAGC charge and Transport levy should be added for each extra SUIP the rating unit has. Differential category Capital value UAGC (including GST) ($) General rate (including GST) ($) Transport levy (including GST) ($) Total rates (including GST) ($) Urban - business 500, , ,971 1,500, , ,778 3,000, , ,989 10,000, , ,637 Franklin urban - business 500, , ,870 1,500, , ,474 3,000, , ,379 10,000, , ,606 Urban - residential 500, , , , , ,350 1,000, , ,967 1,500, , ,201 Rural - business 500, , ,628 1,500, , ,748 3,000, , ,928 10,000, , ,769 Franklin rural - business 500, , ,542 1,500, , ,489 3,000, , ,410 10,000, , ,041 Rural - residential 500, , , , , ,165 1,000, , ,720 1,500, , ,830 Farm/lifestyle 500, ,486 1,500, , ,460 3,000, , ,422 10,000, , ,241 The following tables contain indicative values for the most common targeted rates. If a rating unit is liable for one of these, then the value shown should be added to the general rates and transport levy figure from the table above to determine the total rates liability. 247

254 Part 3: Our policies and other information 3.2 Prospective funding impact statement Waste management targeted rate Most rating units are liable for waste management targeted rates. These vary depending on the former council area that the property is located. Area Service Total amount of charges (including GST) ($) Number of waste management charges Auckland City Full service ,128 2,256 Recycling only Refuse only ,554 Basic service Additional recycling Franklin District Recycling Refuse Manukau City ,128 2,256 North Shore City Papakura District ,015 Rodney District ,032 Waitākere City City centre targeted rate All business and residential rating units in the City Centre are liable for the City Centre targeted rate. Business rating units located in the city centre area Capital value Rate (including GST) ($) 500, ,500,000 2,733 3,000,000 5,465 10,000,000 18,218 Residential rating units located in the city centre area Number of separately used or inhabited parts Rate (including GST) ($)

255 Part 3: Our policies and other information 3.2 Prospective funding impact statement Swimming pool targeted rates Residential rating units in Māngere-Ōtāhuhu and Ōtara-Papatoetoe local boards are liable for Swimming Pool targeted rates. Residential rating units located in Number of separately used or inhabited parts Total targeted rate amount (including GST) ($) Māngere-Ōtāhuhu Ōtara-Papatoetoe Waitākere rural sewerage targeted rate Some residential rating units not connected to the wastewater system in the former Waitākere City area are liable for the Waitākere Rural Sewerage targeted rate. Residential rating units located in Number of septic tanks pumped out once every 3 years Total targeted rate amount (including GST) ($) Waitākere City that have septic tanks pumped out by council ,851 Retro-fit your home targeted rate Residential ratepayers who have taken advantage of the Retro-fit Your Home scheme repay the financial assistance provided via a targeted rate. Outstanding balance at beginning of 2015/2016 Rate for first year of repayment (including GST) ($) Rate for second year of repayment (including GST) ($) Rate for third year of repayment (including GST) ($) Rate for fourth year of repayment (including GST) ($) 1, , , ,

256 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statements for groups of activities Funding impact statement for for Regional planning $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 106,980 98,678 86,686 80,932 89,408 97, , , , , ,838 Targeted rates 20,226 21,140 21,521 21,929 22,368 22,838 23,317 23,830 24,378 24,963 25,588 Subsidies and grants for operating purposes Fees and charges 2,007 1,084 1,111 1,140 1,170 1,204 1,240 1,279 1,321 1,366 1,415 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 130,641 1, ,004 1,033 1,064 1,097 1,133 1,172 1, , , , , , , , , , ,161 Applications of operating funding: Payment to staff and suppliers 79,756 72,874 63,148 57,735 61,708 64,445 66,449 68,846 70,973 72,706 74,525 Finance costs 15,040 Internal charges and overheads applied 23,424 14,085 14,293 14,828 15,316 16,255 18,007 19,739 20,831 21,495 21,866 19,230 18,115 15,971 16,510 16,218 16,796 16,811 16,932 17,448 17,728 Other operating funding applications Total applications of operating funding 118, ,189 95,556 88,534 93,534 96, , , , , ,119 Surplus (deficit) of operating funding 12,420 15,749 14,821 16,498 20,628 26,206 28,661 32,223 35,507 38,732 42,042 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 41,652 (1,792) 4,027 13,054 7,872 23,512 33,560 23,590 12,069 10,756 (1) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 42,630 (1,789) 4,031 13,059 7,877 23,517 33,565 23,595 12,074 10,761 4 Application of capital funding: Capital expenditure: - to meet additional demand 18,309 5,148 7,548 10,421 13,032 17,739 21,236 16,418 13,755 15,701 15,638 - to improve the level of service 36,048 8,197 10,673 18,397 14,689 21,581 17,346 15,780 13,387 15,224 15,435 - to replace existing assets ,403 23,644 23,620 20,439 18,568 10,973 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 55,050 13,960 18,852 29,557 28,505 49,723 62,226 55,818 47,581 49,493 42,046 Surplus (deficit) of capital funding (12,420) (15,749) (14,821) (16,498) (20,628) (26,206) (28,661) (32,223) (35,507) (38,732) (42,042) Funding balance

257 Funding impact statement for for Local planning and development Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 9,087 6,806 10,023 12,738 13,291 14,200 14,857 15,776 16,779 17,091 17,039 Targeted rates 14,604 15,350 16,885 18,574 20,431 22,474 24,721 27,193 29,913 32,904 36,194 Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 23,692 22,156 26,908 31,312 33,722 36,674 39,578 42,969 46,692 49,995 53,233 Applications of operating funding: Payment to staff and suppliers 17,873 18,391 20,670 22,514 23,529 25,533 27,771 30,322 33,051 36,055 39,358 Finance costs 2,270 3,971 6,038 7,403 8,466 9,053 9,335 9,836 10,431 10,308 10,160 Internal charges and overheads applied 2, Other operating funding applications Total applications of operating funding 23,047 22,851 27,287 30,514 32,395 34,913 37,422 40,429 43,725 46,607 49,744 Surplus (deficit) of operating funding 645 (695) (379) 798 1,327 1,761 2,156 2,540 2,967 3,388 3,489 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions 178 1,756 2,250 2,687 2,791 2,903 2,865 2,927 2,906 2,814 2,815 Increase (decrease) in debt 23,831 42,366 19,975 22,831 10,174 1,840 (11) 16,159 (4,872) (5,201) (5,303) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 24,009 44,122 22,225 25,518 12,965 4,743 2,854 19,086 (1,966) (2,387) (2,488) Application of capital funding: Capital expenditure: - to meet additional demand 4,284 30,087 15,549 12,581 5,322 3,720 1,449 17, to improve the level of service 11,672 7,943 3,145 7,475 5, , to replace existing assets 8,698 5,397 3,152 6,260 3,177 2,722 3,513 1, Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 24,654 43,427 21,846 26,316 14,292 6,504 5,010 21,626 1,001 1,001 1,001 Surplus (deficit) of capital funding (645) (798) (1,327) (1,761) (2,156) (2,540) (2,967) (3,388) (3,489) Funding balance

258 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Property development $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties (7,870) (5,750) (3,979) (713) 621 1, ,751 2,912 3,582 Targeted rates Subsidies and grants for operating purposes Fees and charges 4, Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts 26,731 Total operating funding 23,422 39,887 37,024 32,154 30,911 30,704 31,454 28,383 28,223 28,267 28,704 35,054 33,260 31,649 31,745 31,920 31,897 29,569 30,166 31,373 32,493 Applications of operating funding: Payment to staff and suppliers 16,837 Finance costs 780 Internal charges and overheads applied 6,308 19,202 18,767 18,127 18,275 18,774 19,222 17,450 18,015 18,555 19,228 2,603 4,183 5,573 5,935 5,288 4,982 4,511 4,540 5,081 5,472 3,639 3,037 2,343 2,113 1,776 1,720 1,195 1,089 1,104 1,048 Other operating funding applications Total applications of operating funding 23,925 25,444 25,987 26,043 26,323 25,838 25,924 23,156 23,644 24,740 25,748 Surplus (deficit) of operating funding (503) 9,610 7,273 5,606 5,422 6,082 5,973 6,413 6,522 6,633 6,745 Sources of capital funding: Subsidies and grants for capital expenditure 11,850 13,585 25,404 10,201 44,106 25,735 31,786 29,181 11,161 16,211 16,794 Development and financial contributions Increase (decrease) in debt (34,189) (30,109) (35,390) (34,455) (79,613) (55,630) (62,669) (61,653) (43,918) (48,466) (48,491) Gross proceeds from sale of assets 38,581 49,931 51,368 52,651 55,973 45,424 47,059 48,754 48,754 48,754 48,754 Lump sum contributions Other dedicated capital funding Total sources of capital funding 16,242 33,407 41,382 28,397 20,466 15,529 16,176 16,282 15,997 16,499 17,057 Application of capital funding: Capital expenditure: - to meet additional demand 10,985 15,515 15,889 8,040 5,435 1,429 1,472 1,518 1,490 1,541 1,596 - to improve the level of service ,573 26,036 19,050 13,345 12,863 13,249 13,659 13,411 13,867 14,366 - to replace existing assets 4,142 7,929 6,730 6,913 7,108 7,319 7,428 7,518 7,618 7,724 7,840 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 15,739 43,017 48,655 34,003 25,888 21,611 22,149 22,695 22,519 23,132 23,802 Surplus (deficit) of capital funding 503 (9,610) (7,273) (5,606) (5,422) (6,082) (5,973) (6,413) (6,522) (6,633) (6,745) Funding balance

259 Funding impact statement for for Waterfront development Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 7,856 18,884 20,776 22,401 25,776 29,128 30,702 32,182 33,086 33,317 33,687 Targeted rates Subsidies and grants for operating purposes Fees and charges 26,513 29,107 29,199 32,551 33,378 33,827 36,125 36,835 36,997 36,194 36,882 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and 14,559 4,297 4,531 23,946 28,656 22,354 3,553 8, other receipts Total operating funding 48,928 52,288 54,506 78,898 87,810 85,309 70,380 77,469 71,035 70,463 71,521 Applications of operating funding: Payment to staff and suppliers 28,414 31,166 31,587 33,559 33,592 34,131 35,213 35,908 37,091 37,679 39,144 Finance costs 8,700 10,657 12,747 14,582 16,365 17,861 19,073 19,060 19,474 19,585 19,671 Internal charges and overheads applied Other operating funding applications Total applications of operating funding 37,114 41,823 44,334 48,141 49,957 51,992 54,286 54,968 56,565 57,264 58,815 Surplus (deficit) of operating funding 11,814 10,465 10,172 30,757 37,853 33,317 16,094 22,501 14,470 13,199 12,706 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions 5,345 2,140 2,741 3,273 3,400 3,537 3,490 3,566 3,540 3,428 3,429 Increase (decrease) in debt 9,280 46,043 22,405 (14,872) (28,965) (33,701) (15,846) (22,809) (15,359) (13,048) (12,559) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 14,625 48,183 25,146 (11,599) (25,565) (30,164) (12,356) (19,243) (11,819) (9,620) (9,130) Application of capital funding: Capital expenditure: - to meet additional demand 16,803 43,545 22,025 8,309 6, to improve the level of service 6,844 10,399 10,900 9,313 4,281 1,346 1,377 1,410 1,119 1,327 1,361 - to replace existing assets 2,792 4,704 2,393 1,536 1, ,523 1,003 1,283 1,671 1,627 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 26,439 58,648 35,318 19,158 12,288 3,153 3,738 3,258 2,651 3,579 3,576 Surplus (deficit) of capital funding (11,814) (10,465) (10,172) (30,757) (37,853) (33,317) (16,094) (22,501) (14,470) (13,199) (12,706) Funding balance

260 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Economic growth and visitor economy $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 39,184 50,707 53,087 53,302 58,630 63,021 64,990 67,193 68,876 70,584 72,264 Targeted rates Subsidies and grants for operating purposes 3,498 3,810 4,998 2,877 1,411 1,447 1,483 1,520 1,558 1,597 1,637 Fees and charges 3,863 5,921 12,823 9,453 9,618 9,794 9,980 10,179 10,389 10,615 10,854 Internal charges and overheads recovered ,573 2,982 4,179 2,316 2,372 2,431 2,491 2,554 2,618 2,684 2,753 Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 48,118 63,420 75,087 67,948 72,031 76,693 78,944 81,446 83,441 85,480 87,508 Applications of operating funding: Payment to staff and suppliers 47,772 63,020 77,289 66,245 70,346 75,129 77,393 79,878 81,878 83,897 85,932 Finance costs 98 (72) (5) Internal charges and overheads applied Other operating funding applications Total applications of operating funding 47,870 62,948 77,472 66,733 70,765 75,486 77,689 80,106 82,033 83,974 85,927 Surplus (deficit) of operating funding (2,385) 1,215 1,266 1,207 1,255 1,340 1,408 1,506 1,581 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 1,452 1,109 9,669 (1,129) (1,178) (1,116) (1,162) (1,244) (1,309) (1,405) (1,477) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 1,452 1,109 9,669 (1,129) (1,178) (1,116) (1,162) (1,244) (1,309) (1,405) (1,477) Application of capital funding: Capital expenditure: - to meet additional demand 1,500 1,500 7, to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 1,700 1,581 7, Surplus (deficit) of capital funding (248) (472) 2,385 (1,215) (1,266) (1,207) (1,255) (1,340) (1,408) (1,506) (1,581) Funding balance

261 Funding impact statement for for Regional facilities Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 33,342 50,938 53,593 56,973 60,299 66,876 71,400 76,681 80,984 86,153 91,304 Targeted rates Subsidies and grants for operating purposes ,028 1,060 1,095 1,132 1,173 Fees and charges 42,560 42,474 43,337 44,462 45,662 45,951 47,330 48,797 50,407 52,122 53,997 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts 4,357 Total operating funding 80,984 6,934 7,106 7,289 7,483 7,698 7,927 8,170 8,439 8,722 9, , , , , , , , , , ,509 Applications of operating funding: Payment to staff and suppliers 63,470 85,529 79,290 81,114 83,073 85,743 88,673 92,424 96, , ,694 Finance costs 10,901 11,397 12,567 14,032 15,703 17,555 18,829 19,704 20,377 21,018 21,504 Internal charges and overheads applied Other operating funding applications Total applications of operating funding 74,371 96,926 91,857 95,146 98, , , , , , ,198 Surplus (deficit) of operating funding 6,613 4,318 13,099 14,522 15,638 18,225 20,183 22,580 24,066 26,718 29,311 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 17,453 24,301 21,092 28,897 36,364 20,803 16,203 12,339 10,758 11,702 3,580 Gross proceeds from sale of assets 20, Lump sum contributions Other dedicated capital funding Total sources of capital funding 37,786 24,301 21,092 28,897 36,364 20,803 16,203 12,339 10,758 11,702 3,580 Application of capital funding: Capital expenditure: - to meet additional demand 0 1,250 1,500 3,634 3,374 3,374 3,374 3,374 3,374 3,374 3,374 - to improve the level of service 2,502 7,497 12,307 8,944 7, , to replace existing assets 21,564 19,872 20,384 30,841 40,671 35,132 32,475 30,044 30,998 34,594 29,065 Increase (decrease) in reserves Increase (decrease) in investments 20, Total applications of capital funding 44,399 28,619 34,191 43,419 52,002 39,028 36,386 34,919 34,824 38,420 32,891 Surplus (deficit) of capital funding (6,613) (4,318) (13,099) (14,522) (15,638) (18,225) (20,183) (22,580) (24,066) (26,718) (29,311) Funding balance

262 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Regulation $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 72,028 68,277 67,588 67,632 71,943 72,214 73,956 73,954 73,694 73,524 72,118 Targeted rates 3,421 5,254 6,342 7,365 8,329 9,236 10,090 9,833 9,464 8,991 8,521 Subsidies and grants for operating purposes Fees and charges 138, , , , , , , , , , ,716 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 213, , , , , , , , , , ,355 Applications of operating funding: Payment to staff and suppliers 140,487 Finance costs 11,254 Internal charges and overheads applied 52, , , , , , , , , , ,634 16,782 19,921 22,884 24,883 26,195 27,332 28,159 28,462 28,008 27,317 55,771 55,490 51,516 52,991 52,530 54,337 54,653 55,215 56,930 58,086 Other operating funding applications Total applications of operating funding 204, , , , , , , , , , ,037 Surplus (deficit) of operating funding 9,292 11,328 14,492 17,144 19,868 21,483 22,506 22,556 22,741 22,614 22,318 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 79,250 53,814 49,041 50,656 21,730 15,411 14,345 12,381 (5,399) (11,648) (12,554) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 79,250 53,814 49,041 50,656 21,730 15,411 14,345 12,381 (5,399) (11,648) (12,554) Application of capital funding: Capital expenditure: - to meet additional demand to improve the level of service 11,785 2, to replace existing assets Increase (decrease) in reserves 1 70,386 53,854 54,331 58,605 32,392 27,681 27,632 25,710 8,108 1, Increase (decrease) in investments 6,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 Total applications of capital funding 88,542 65,142 63,533 67,800 41,598 36,894 36,851 34,937 17,342 10,966 9,764 Surplus (deficit) of capital funding (9,292) (11,328) (14,492) (17,144) (19,868) (21,483) (22,506) (22,556) (22,741) (22,614) (22,318) Funding balance The increase in reserves relates to payments required to settle weathertightness claims. In line with our Revenue and Financing Policy these payments are funded initially from borrowings and then repaid over time. 256

263 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Solid waste and environmental services $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 51,368 42,560 46,876 46,796 43,325 51,051 50,544 54,186 54,728 56,551 55,464 Targeted rates 68,254 73,588 77,551 77,636 77,639 80,083 83,945 85,541 87,544 89,615 90,701 Subsidies and grants for operating purposes 4,583 5,256 5,629 5,703 5,839 5,867 5,888 5,909 5,930 5,909 5,930 Fees and charges 21,256 25,779 32,084 42,394 47,142 49,506 50,980 54,855 58,996 63,010 68,778 Internal charges and overheads recovered ,870 2,945 3,058 3,176 3,301 3,439 3,586 3,743 3,915 3,998 4,194 Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 147, , , , , , , , , , ,067 Applications of operating funding: Payment to staff and suppliers 112,393 Finance costs (77) Internal charges and overheads applied 33, , , , , , , , , , ,152 1,873 3,008 3,525 4,128 5,102 5,857 6,453 6,648 6,527 6,397 24,237 25,821 26,276 25,226 23,825 23,981 22,414 21,605 22,358 22,009 Other operating funding applications Total applications of operating funding 145, , , , , , , , , , ,558 Surplus (deficit) of operating funding 1,332 1,893 2,741 3,177 3,619 3,668 4,067 4,741 5,290 5,788 5,509 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 12,096 25,751 10,636 5,858 19,388 12,134 12,372 6,909 (1,902) (2,391) (2,068) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 12,096 26,290 11,185 6,417 19,743 12,222 12,462 7,001 (1,808) (2,313) (1,988) Application of capital funding: Capital expenditure: - to meet additional demand to improve the level of service 11,283 25,360 11,321 6,799 21,149 14,236 14,872 10,008 - to replace existing assets 2,145 2,565 2,361 2,549 1,958 1,390 1,382 1, ,674 2,736 2, Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 13,428 28,183 13,926 9,594 23,362 15,890 16,529 11,742 3,482 3,475 3,521 Surplus (deficit) of capital funding (1,332) (1,893) (2,741) (3,177) (3,619) (3,668) (4,067) (4,741) (5,290) (5,788) (5,509) Funding balance

264 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Local environmental management $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 2,687 5,260 5,020 4,847 5,061 4,999 5,027 5,000 5,003 5,054 5,081 Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 2,687 5,260 5,020 4,847 5,061 4,999 5,027 5,000 5,003 5,054 5,081 Applications of operating funding: Payment to staff and suppliers 2,241 4,343 4,151 4,003 4,236 4,270 4,308 4,357 4,401 4,450 4,501 Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding 2,664 5,251 5,003 4,826 5,038 4,974 5,000 4,971 4,972 5,021 5,045 Surplus (deficit) of operating funding Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 673 (9) (17) (21) (23) (25) (27) (29) (31) (33) (36) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 673 (9) (17) (21) (23) (25) (27) (29) (31) (33) (36) Application of capital funding: Capital expenditure: - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (23) (9) (17) (21) (23) (25) (27) (29) (31) (33) (36) Funding balance

265 Funding impact statement for for Stormwater management Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 78,160 78,037 79,116 81,283 82,364 85,231 89,392 93,264 97, , ,476 Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 78,198 78,075 79,154 81,321 82,402 85,231 89,392 93,264 97, , ,476 Applications of operating funding: Payment to staff and suppliers 24,382 24,426 24,569 25,508 26,086 26,915 27,695 28,276 28,892 29,204 29,563 Finance costs 12,347 12,358 12,584 11,680 9,653 7,967 6,541 5,185 3,766 2, Internal charges and overheads applied 14,955 8,517 8,513 8,508 8,334 7,577 7,738 7,117 6,863 7,103 7,015 Other operating funding applications Total applications of operating funding 51,684 45,301 45,666 45,696 44,073 42,459 41,974 40,578 39,521 38,669 37,545 Surplus (deficit) of operating funding 26,514 32,774 33,488 35,625 38,329 42,772 47,418 52,686 58,002 63,743 67,931 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions 24,941 42,971 49,740 77,702 71,473 69,585 62,296 62,035 59,658 61,114 59,148 Increase (decrease) in debt 44,897 5,925 (5,775) (35,070) (32,836) (28,699) (22,721) (25,389) (23,609) (25,634) (22,210) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 69,838 48,896 43,965 42,632 38,637 40,886 39,575 36,646 36,049 35,480 36,938 Application of capital funding: Capital expenditure: - to meet additional demand 42,353 - to improve the level of service 41,541 - to replace existing assets 12,458 42,338 37,947 34,633 40,757 42,035 45,863 49,055 50,823 50,118 53,514 22,760 14,560 21,875 15,325 18,923 18,067 17,220 18,398 22,140 22,851 16,572 24,946 21,749 20,884 22,700 23,063 23,057 24,830 26,965 28,504 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 96,352 81,670 77,453 78,257 76,966 83,658 86,993 89,332 94,051 99, ,869 Surplus (deficit) of capital funding (26,514) (32,774) (33,488) (35,625) (38,329) (42,772) (47,418) (52,686) (58,002) (63,743) (67,931) Funding balance

266 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Regional governance $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 96,703 92,859 98,316 95,557 99, , , , , , ,407 Targeted rates Subsidies and grants for operating purposes Fees and charges 0 1,865 1,911 1,961 2,014 2,072 2,134 2,201 2,273 2,350 2,435 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 96, , , , , ,678 97, , , , , , , ,018 Applications of operating funding: Payment to staff and suppliers 76,784 88,677 94,627 91,828 95, , , , , , ,165 Finance costs (43) (97) (103) (108) ,036 1,360 1,675 1,980 Internal charges and overheads applied 19,938 6,199 7,071 5,879 6,086 6,546 6,006 5,864 6,389 6,013 6,071 Other operating funding applications Total applications of operating funding 96,679 94, ,595 97, , , , , , , ,216 Surplus (deficit) of operating funding Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt (24) (80) (83) (60) 5,952 5,915 5,817 5,688 5,543 5,380 5,198 Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding (24) (80) (83) (60) 5,952 5,915 5,817 5,688 5,543 5,380 5,198 Application of capital funding: Capital expenditure: - to meet additional demand to improve the level of service to replace existing assets ,000 6,000 6,000 6,000 6,000 6,000 6,000 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding ,000 6,000 6,000 6,000 6,000 6,000 6,000 Surplus (deficit) of capital funding (24) (80) (83) (60) (48) (85) (183) (312) (457) (620) (802) Funding balance

267 Funding impact statement for for Local governance Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 31,354 27,432 27,937 29,366 28,704 28,992 30,874 30,169 30,819 32,981 32,585 Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 31,598 27,432 27,937 29,366 28,704 28,992 30,874 30,169 30,819 32,981 32,585 Applications of operating funding: Payment to staff and suppliers 24,723 Finance costs 863 Internal charges and overheads applied 5,885 21,495 21,928 23,409 22,988 23,595 25,264 24,899 25,635 27,566 27, ,178 5,202 5,129 4,891 4,563 4,767 4,422 4,332 4,560 4,457 Other operating funding applications Total applications of operating funding 31,471 27,352 27,811 29,217 28,543 28,819 30,688 29,968 30,603 32,749 32,335 Surplus (deficit) of operating funding Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 2,399 (80) (126) (149) (161) (173) (186) (201) (216) (232) (250) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 2,399 (80) (126) (149) (161) (173) (186) (201) (216) (232) (250) Application of capital funding: Capital expenditure: - to meet additional demand to improve the level of service 1, to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 2, Surplus (deficit) of capital funding (127) (80) (126) (149) (161) (173) (186) (201) (216) (232) (250) Funding balance

268 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Investment $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties (74,431) (69,490) (74,087) (79,559) (86,322) (91,747) (95,145) (98,648) (102,272) (106,014) (109,849) Targeted rates Subsidies and grants for operating purposes Fees and charges 224, , , , , , , , , , ,872 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts 38,052 Total operating funding 188,203 39,596 42,102 43,826 44,483 45,818 47,192 48,608 50,066 51,568 53, , , , , , , , , , ,138 Applications of operating funding: Payment to staff and suppliers 110,696 Finance costs 24, , , , , , , , , , ,110 28,144 34,577 37,496 35,625 35,341 35,051 34,807 34,573 34,341 34,112 Internal charges and overheads applied Other operating funding applications 11,285 11,958 13,123 15,390 16,600 15,091 17,952 18,397 15,241 15,799 16,366 Total applications of operating funding 145, , , , , , , , , , ,588 Surplus (deficit) of operating funding 42,207 43,731 45,409 57,868 60,206 61,810 61,239 63,122 68,707 70,605 72,550 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 35, , ,768 (33,250) (53,621) (26,184) (24,900) (26,057) (30,900) (32,042) (33,215) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 35, , ,768 (33,250) (53,621) (26,184) (24,900) (26,057) (30,900) (32,042) (33,215) Application of capital funding: Capital expenditure: - to meet additional demand 40, ,428 87,068 14,000 1,646 8,907 9,085 9,266 9,452 9,641 9,834 - to improve the level of service 19,954 2,360 2,012 1, ,781 1,817 1,853 1,890 1,928 1,967 - to replace existing assets 16,635 48, ,097 9,387 4,610 24,938 25,437 25,946 26,465 26,994 27,534 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 77, , ,177 24,618 6,585 35,626 36,339 37,065 37,807 38,563 39,335 Surplus (deficit) of capital funding (42,207) (43,731) (45,409) (57,868) (60,206) (61,810) (61,239) (63,122) (68,707) (70,605) (72,550) Funding balance

269 Funding impact statement for for Organisational support Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 57,463 (1,791) 13,173 35,465 43,570 55,377 96, ,185 51,474 64, ,309 Targeted rates Subsidies and grants for operating purposes Fees and charges 2,622 1,956 1,994 2,032 2,066 2,119 2,163 2,222 2,297 2,374 2,462 Internal charges and overheads recovered 247, , , , , , , , , , ,876 Local authorities fuel tax, fines, infringement fees and 27,609 28,385 29,533 30,839 31,956 33,122 34,217 35,256 36,051 36,817 37,578 other receipts Total operating funding 335, , , , , , , , , , ,241 Applications of operating funding: Payment to staff and suppliers 275, , , , , , , , , , ,541 Finance costs 15,844 14,822 10,984 10,158 3,803 1,259 (7,484) (19,731) (30,440) (35,975) (45,069) Internal charges and overheads applied Other operating funding applications Total applications of operating funding 291, , , , , , , , , , ,472 Surplus (deficit) of operating funding 43,510 17,909 37,637 61,797 77,251 92, , , , , ,769 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt (162,200) 61,524 30,658 66,333 74,190 (57,843) (130,912) (199,117) (7,749) (56,070) (114,222) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding (162,200) 61,524 30,658 66,333 74,190 (57,843) (130,912) (199,117) (7,749) (56,070) (114,222) Application of capital funding: Capital expenditure: - to meet additional demand 3, to improve the level of service (163,082) 39,024 43,244 21,515 53,341 39,659 23,820 24,130 20,067 15,037 15,037 - to replace existing assets 60,774 46,312 38,189 47,509 37,997 39,191 38,203 37,231 34,159 29,341 29,341 Increase (decrease) in reserves Increase (decrease) in investments (19,577) (5,903) (13,138) 59,106 60,103 (43,897) (49,120) (70,326) 62,792 44,490 35,169 Total applications of capital funding (118,690) 79,433 68, , ,441 34,953 12,903 (8,965) 117,018 88,868 79,547 Surplus (deficit) of capital funding (43,510) (17,909) (37,637) (61,797) (77,251) (92,796) (143,815) (190,152) (124,767) (144,938) (193,769) Funding balance

270 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Regional community services $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 65,114 53,173 62,002 68,283 72,857 75,773 75,613 76,569 78,496 81,513 82,345 Targeted rates Subsidies and grants for operating purposes 2,458 2,458 2,458 2,458 2,458 2,458 2,458 2,458 2,458 2,458 2,458 Fees and charges 3,040 3,947 3,960 3,551 3,740 3,851 3,968 4,096 4,222 4,371 4,503 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts 6,897 6,932 7,105 7,290 7,487 7,704 7,935 8,181 8,451 8,739 9,053 Total operating funding 77,509 66,510 75,525 81,582 86,542 89,786 89,974 91,304 93,627 97,081 98,359 Applications of operating funding: Payment to staff and suppliers 53,786 49,296 51,304 55,096 57,178 59,763 60,209 60,830 62,924 65,202 65,511 Finance costs 2,034 1,638 1,725 1,876 2,155 2,264 2,208 2,217 2,223 2,257 2,281 Internal charges and overheads applied 15,358 10,517 10,864 10,801 10,869 10,349 10,441 9,912 9,799 10,138 10,031 Other operating funding applications Total applications of operating funding 71,178 61,451 63,893 67,773 70,202 72,376 72,858 72,959 74,946 77,597 77,823 Surplus (deficit) of operating funding 6,331 5,059 11,632 13,809 16,340 17,410 17,116 18,345 18,681 19,484 20,536 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions ,081 1,291 1,342 1,396 1,377 1,407 1,397 1,353 1,353 Increase (decrease) in debt 17,085 22,298 7,390 6,694 2,883 5,340 1,033 (49) 342 1,106 2,121 Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 17,218 23,142 8,471 7,985 4,225 6,736 2,410 1,358 1,739 2,459 3,474 Application of capital funding: Capital expenditure: - to meet additional demand 2,181 2,412 2,452 3,345 3,511 2, to improve the level of service to replace existing assets 20,643 25,789 17,651 18,449 17,054 21,261 19,474 19,660 20,373 21,883 23,947 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 23,549 28,201 20,103 21,794 20,565 24,146 19,526 19,703 20,420 21,943 24,010 Surplus (deficit) of capital funding (6,331) (5,059) (11,632) (13,809) (16,340) (17,410) (17,116) (18,345) (18,681) (19,484) (20,536) Funding balance

271 Funding impact statement for for Local community services Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 98,085 97, , , , , , , , , ,172 Targeted rates Subsidies and grants for operating purposes Fees and charges 4,017 3,449 3,475 3,698 3,839 3,950 4,068 4,194 4,333 4,499 4,688 Internal charges and overheads recovered ,446 5,844 5,507 5,523 5,609 5,707 5,809 5,920 6,051 6,189 6,333 Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 107, , , , , , , , , , ,450 Applications of operating funding: Payment to staff and suppliers 80,280 83,003 85,469 85,051 89,066 91,299 93,636 96,591 99, , ,138 Finance costs 7,336 8,854 10,438 11,888 12,969 13,385 13,865 14,231 14,520 14,866 14,935 Internal charges and overheads applied 23,125 14,480 14,690 13,676 13,775 12,760 12,999 12,356 12,083 12,447 12,417 Other operating funding applications Total applications of operating funding 110, , , , , , , , , , ,490 Surplus (deficit) of operating funding (2,847) 644 1,372 1,734 3,412 4,254 4,795 5,462 6,269 6,285 6,960 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions 2,874 1,548 1,983 2,368 2,460 2,559 2,525 2,580 2,561 2,481 2,481 Increase (decrease) in debt 52,310 28,164 14,561 29,153 3,986 2,501 9,641 1,017 5, (3,816) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 55,859 29,712 16,544 31,521 6,446 5,060 12,166 3,597 7,918 3,119 (1,335) Application of capital funding: Capital expenditure: - to meet additional demand 16,500 7,486 2,760 20,870 3, to improve the level of service 18,409 8,700 4,625 2, ,780 3, to replace existing assets 18,103 14,170 10,531 9,680 5,908 6,451 13,566 8,890 13,922 9,229 5,520 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 53,012 30,356 17,916 33,255 9,858 9,314 16,961 9,059 14,187 9,404 5,625 Surplus (deficit) of capital funding 2,847 (644) (1,372) (1,734) (3,412) (4,254) (4,795) (5,462) (6,269) (6,285) (6,960) Funding balance

272 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Regional parks, sport and recreation $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 26,977 98,178 95, , , , , , , , ,120 Targeted rates Subsidies and grants for operating purposes ,091 1,055 1, Fees and charges 13,513 13,977 14,438 14,916 15,419 15,865 16,341 16,847 17,404 17,995 18,643 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts 6,848 Total operating funding 47,620 6,506 6,924 7,086 7,258 7,447 7,649 7,864 8,099 8,350 8, , , , , , , , , , ,163 Applications of operating funding: Payment to staff and suppliers 40,889 69,926 68,902 72,066 72,774 72,228 72,844 73,351 75,676 76,365 79,038 Finance costs 14,171 10,679 9,520 7,922 6,263 4,222 2,559 1,980 3,225 5,626 7,721 Internal charges and overheads applied 11,068 20,154 20,343 19,108 19,419 18,990 19,529 19,557 19,843 20,361 20,859 Other operating funding applications Total applications of operating funding 66, ,759 98,765 99,096 98,456 95,440 94,932 94,888 98, , ,618 Surplus (deficit) of operating funding (18,508) 18,290 19,523 24,246 25,971 29,359 30,541 33,353 35,207 35,946 37,545 Sources of capital funding: Subsidies and grants for capital expenditure 6, Development and financial contributions 38,416 49,027 62,804 74,998 77,907 81,042 79,967 81,698 81,104 78,552 78,561 Increase (decrease) in debt 35,106 (23,152) (25,458) (23,300) (36,283) (35,459) (21,446) 6,746 46,204 35,098 38,407 Gross proceeds from sale of assets 0 18,944 13, Lump sum contributions Other dedicated capital funding Total sources of capital funding 79,522 44,819 50,991 51,698 41,624 45,583 58,521 88, , , ,968 Application of capital funding: Capital expenditure: - to meet additional demand 39,712 - to improve the level of service 13,456 - to replace existing assets 7,846 46,238 41,124 37,798 25,422 28,515 39,314 69,319 96,130 81,635 85,071 2,545 14,534 23,830 24,534 26,194 29,056 29,948 40,730 41,715 42,868 14,326 14,856 14,316 17,639 20,233 20,692 22,530 25,655 26,246 26,574 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 61,014 63,109 70,514 75,944 67,595 74,942 89, , , , ,513 Surplus (deficit) of capital funding 18,508 (18,290) (19,523) (24,246) (25,971) (29,359) (30,541) (33,353) (35,207) (35,946) (37,545) Funding balance

273 Funding impact statement for for Local parks, sport and recreation Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 201, , , , , , , , , , ,645 Targeted rates 778 1,007 1,032 1,059 1,088 1,119 1,153 1,189 1,228 1,270 1,315 Subsidies and grants for operating purposes 2,824 4,817 8,163 8,234 8,306 8,378 8,452 8,528 8,604 8,681 8,760 Fees and charges 28,736 21,285 24,505 25,554 26,661 27,839 29,093 30,438 31,905 33,475 35,192 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts (3,293) 3, ,008 1,042 1,079 Total operating funding 230, , , , , , , , , , ,991 Applications of operating funding: Payment to staff and suppliers 157, , , , , , , , , , ,748 Finance costs 16,985 23,334 30,145 35,565 39,610 43,824 47,912 50,365 51,826 52,798 53,366 Internal charges and overheads applied 36,561 25,031 24,538 24,710 23,690 20,779 21,011 18,735 17,601 18,133 17,576 Other operating funding applications Total applications of operating funding 210, , , , , , , , , , ,690 Surplus (deficit) of operating funding 19,955 1,453 5,463 10,480 16,167 21,842 28,888 36,215 43,183 50,561 58,301 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions 14,974 7,628 9,772 11,669 12,122 12,609 12,442 12,712 12,619 12,222 12,223 Increase (decrease) in debt 106, ,599 85,700 93,640 71,200 71,461 54,312 34,633 28,812 20,769 10,957 Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 121, ,976 95, ,309 83,322 84,070 66,754 47,345 41,431 32,991 23,180 Application of capital funding: Capital expenditure: - to meet additional demand 49,701 23,743 3,925 8,860 3,133 2,138 28,793 1,111 1,398 1,417 1,436 - to improve the level of service 41,943 57,403 43,884 52,509 47,848 48,170 14,449 23,621 24,773 24,845 24,915 - to replace existing assets 45,888 53,283 53,380 56,420 50,508 55,604 52,400 58,828 58,443 57,290 55,130 Increase (decrease) in reserves 4, (2,000) (2,000) Increase (decrease) in investments Total applications of capital funding 141, , , ,789 99, ,912 95,642 83,560 84,614 83,552 81,481 Surplus (deficit) of capital funding (19,955) (1,453) (5,463) (10,480) (16,167) (21,842) (28,888) (36,215) (43,183) (50,561) (58,301) Funding balance

274 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Public transport and travel demand management $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 234, , , , , , , , , , ,152 Targeted rates 0 18,240 18,540 18, Subsidies and grants for operating purposes 191, , , , , , , , , , ,537 Fees and charges 1 50,817 73, , , , , , , , , ,539 Internal charges and overheads recovered ,310 6,005 4,689 2,994 2,894 3,021 3,041 2,185 2,213 2,210 2,234 Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 490, , , , , , , , , ,296 1,026,462 Applications of operating funding: Payment to staff and suppliers 1 413,310 Finance costs 86, , , , , , , , , , ,190 94, , , , , , , , , ,682 Internal charges and overheads applied Other operating funding applications Total applications of operating funding 499, , , , , , , , , , ,872 Surplus (deficit) of operating funding (9,232) 43,121 35,678 33,685 18,246 14,301 (2,938) (27,369) 60,491 66,031 65,590 Sources of capital funding: Subsidies and grants for capital expenditure 30,357 38,732 36,455 21, , , , , ,914 40,995 10,422 Development and financial contributions 9,546 9,156 11,759 13,919 14,457 15,039 14,915 15,303 15,069 14,597 14,596 Increase (decrease) in debt 337, , , ,343 (53,350) 148, , , , (50,387) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 377, , , , , , , , ,003 55,690 (25,369) Application of capital funding: Capital expenditure: - to meet additional demand 17,236 25,245 31,801 24,001 33,139 48,645 77,161 91,616 57,679 13,123 1,850 - to improve the level of service 342, , , , , , , , , ,983 30,317 - to replace existing assets 9,210 4,676 5,063 5,484 5,816 13,536 6,451 6,795 7,201 7,615 8,054 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 368, , , , , , , , , ,721 40,221 Surplus (deficit) of capital funding 9,232 (43,121) (35,678) (33,685) (18,246) (14,301) 2,938 27,369 (60,491) (66,031) (65,590) Funding balance The implementation of a new operating model for public transport is forecast to increase both revenue from fees and charges and payments to staff and suppliers by $148 million per annum by 2018/2019. More information is included in the significant forecasting assumptions in volume 1 of this document. 268

275 Funding impact statement for for Roads and footpaths Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties 249, , , , , , , , , , ,068 Targeted rates ,650 43,350 44, Subsidies and grants for operating purposes 34,852 40,835 42,097 43,189 43,694 44,198 45,330 46,100 47,212 48,111 49,098 Fees and charges 0 4,341 5,583 7,723 7,606 7,490 7,375 7,261 7,153 7,042 6,930 Internal charges and overheads recovered ,912 3,845 3,223 3,235 3,291 3,416 3,470 2,916 2,981 3,028 3,098 Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 299, , , , , , , , , , ,284 Applications of operating funding: Payment to staff and suppliers 133, , , , , , , , , , ,254 Finance costs 68,423 75,401 80,595 84,859 86,890 88,727 92,280 99, , , ,934 Internal charges and overheads applied Other operating funding applications Total applications of operating funding 201, , , , , , , , , , ,188 Surplus (deficit) of operating funding 98, , , , , , , , , , ,096 Sources of capital funding: Subsidies and grants for capital expenditure 151, , , ,489 70,656 86, , , , , ,170 Development and financial contributions 23,072 49,761 56,665 73,666 66,027 71,392 69,739 76,090 69,267 69,496 68,469 Increase (decrease) in debt 177,067 94,108 67,389 75,970 23,969 25,856 90, , , , ,274 Gross proceeds from sale of assets , Lump sum contributions Other dedicated capital funding Total sources of capital funding 351, , , , , , , , , , ,913 Application of capital funding: Capital expenditure: - to meet additional demand 35,728 - to improve the level of service 206,714 - to replace existing assets 207,609 65,074 88,233 65,000 45,360 38,699 60,490 92,781 86,652 93,612 92, , , ,412 45,446 56, , , , , , , , , , , , , , , ,946 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 450, , , , , , , , , , ,009 Surplus (deficit) of capital funding (98,351) (143,761) (157,902) (170,010) (141,033) (152,545) (160,425) (170,597) (183,715) (202,058) (215,096) Funding balance

276 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Parking and enforcement $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties (34,777) (40,877) (40,648) (40,753) (40,541) (40,388) (40,211) (39,882) (39,808) (39,382) (39,245) Targeted rates Subsidies and grants for operating purposes Fees and charges 80,655 80,170 80,269 80,475 80,475 80,475 80,475 80,475 80,475 80,475 80,475 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 46,644 40,331 40,633 40,759 40,928 41,096 41,281 41,534 41,617 42,048 42,190 Applications of operating funding: Payment to staff and suppliers 42,041 36,585 36,563 36,533 36,675 36,550 36,587 36,583 36,585 36,582 36,553 Finance costs 417 (319) (279) (388) (495) (579) (629) (695) (765) (840) (926) Internal charges and overheads applied Other operating funding applications Total applications of operating funding 42,458 36,266 36,284 36,145 36,180 35,971 35,958 35,888 35,820 35,742 35,627 Surplus (deficit) of operating funding 4,186 4,065 4,349 4,614 4,748 5,125 5,323 5,646 5,797 6,306 6,563 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 2,868 2,535 (1,838) (1,955) (1,958) (569) (1,074) (1,230) (1,177) (1,482) (1,522) Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 2,868 2,535 (1,838) (1,955) (1,958) (569) (1,074) (1,230) (1,177) (1,482) (1,522) Application of capital funding: Capital expenditure: - to meet additional demand to improve the level of service 4, to replace existing assets 2,869 6,600 2,511 2,659 2,790 4,556 4,249 4,416 4,620 4,824 5,041 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 7,054 6,600 2,511 2,659 2,790 4,556 4,249 4,416 4,620 4,824 5,041 Surplus (deficit) of capital funding (4,186) (4,065) (4,349) (4,614) (4,748) (5,125) (5,323) (5,646) (5,797) (6,306) (6,563) Funding balance

277 Funding impact statement for for Water supply Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties (1,822) (922) (947) (973) (1,002) (1,032) (1,064) (1,098) (1,131) (1,165) (1,200) Targeted rates Subsidies and grants for operating purposes Fees and charges 1 136, , , , , , , , , , ,878 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts 29,653 39,546 51,951 57,190 62,579 67,622 69,336 72,349 72,841 74,268 74,089 Total operating funding 164, , , , , , , , , , ,767 Applications of operating funding: Payment to staff and suppliers 77,561 75,934 78,048 80,845 83,800 92,147 95,502 99, , , ,335 Finance costs 15,787 13,920 18,874 24,518 30,816 36,653 41,368 45,737 50,049 54,142 57,786 Internal charges and overheads applied Other operating funding applications Total applications of operating funding 93,348 89,854 96, , , , , , , , ,121 Surplus (deficit) of operating funding 71,004 94, , , , , , , , , ,646 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 92,051 71, , , ,033 97,833 81,945 84,901 75,399 82,252 60,154 Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 92,051 71, , , ,033 97,833 81,945 84,901 75,399 82,252 60,154 Application of capital funding: Capital expenditure: - to meet additional demand 78,226 71,086 66,398 75,032 84, , , , , , ,663 - to improve the level of service 50,466 47,339 65,619 66,685 61,237 33,800 30,399 36,621 33,209 35,062 23,033 - to replace existing assets 34,363 47,838 82,495 97,179 93,891 70,050 66,963 61,728 60,251 67,094 77,104 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 163, , , , , , , , , , ,800 Surplus (deficit) of capital funding (71,004) (94,406) (105,215) (108,819) (112,207) (140,901) (143,201) (147,714) (149,780) (153,545) (155,646) Funding balance Water fees from metered charges included within Fees and charges are: $ / / / / / / / / / / /25 Metered water fees 144, , , , , , , , , ,

278 Part 3: Our policies and other information 3.2 Prospective funding impact statement Funding impact statements for groups of activities Funding impact statement for for Wastewater treatment and disposal $ / / / / / / / / / / /25 Sources of operating funding: General rates, UAGCs, rates penalties (283) (1,222) (1,255) (1,290) (1,328) (1,368) (1,410) (1,455) (1,499) (1,544) (1,590) Targeted rates Subsidies and grants for operating purposes Fees and charges 286, , , , , , , , , , ,829 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts 23,226 Total operating funding 309,923 25,469 37,847 50,128 54,741 57,176 58,855 61,388 61,635 62,903 62, , , , , , , , , , ,097 Applications of operating funding: Payment to staff and suppliers 122, , , , , , , , , , ,656 Finance costs 79,809 82,788 88,359 87,918 87,221 89,053 91,767 95, , , ,845 Internal charges and overheads applied Other operating funding applications Total applications of operating funding 202, , , , , , , , , , ,501 Surplus (deficit) of operating funding 107, , , , , , , , , , ,596 Sources of capital funding: Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt 52, ,027 98,639 22,806 50,649 68,104 60, ,061 89, , ,098 Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding 52, ,027 98,639 22,806 50,649 68,104 60, ,061 89, , ,098 Application of capital funding: Capital expenditure: - to meet additional demand 66, , ,619 97, , ,449 78, ,223 89, , ,624 - to improve the level of service 45,723 41,221 46,802 38,811 45,442 45,810 61,260 79,722 73,950 76,660 89,139 - to replace existing assets 47,847 45,473 41,604 36,086 54,607 65,932 78,445 78,336 97, , ,931 Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 160, , , , , , , , , , ,694 Surplus (deficit) of capital funding (107,893) (112,337) (127,386) (149,506) (164,867) (150,087) (157,818) (166,220) (171,222) (178,125) (181,596) Funding balance

279 Part 3: Our policies and other information 3.2 Prospective funding impact statement Financial reporting and prudence benchmarks Financial reporting and prudence benchmarks Long-term plan disclosure statement for period commencing 1 July 2015 What is the purpose of this statement? The purpose of this statement is to disclose the council s planned financial performance in relation to various benchmarks to enable the assessment of whether the council is prudently managing its revenues, expenses, assets, liabilities, and general financial dealings. The council is required to include this statement in its long-term plan in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement. 273

280 Part 3: Our policies and other information 3.2 Prospective funding impact statement Financial reporting and prudence benchmarks Rates affordability benchmark The group meets the rates affordability benchmark if: its planned rates income equals or is less than each quantified limit on rates; and its planned rates increases equal or are less than each quantified limit on rates increases. Rates (income) affordability The following graph compares the group s planned rates with a quantified limit on rates contained in the financial strategy included in this long-term plan. The quantified limit for each year applies only to general rates and is calculated from the prior year using the 3.5 per cent per annum increase limit and the growth in the ratepayer base assumption included in our significant forecasting assumptions. 2,500 2,000 $ million 1,500 1, / / / / / / / / / / /25 Year Rates (increases) affordability The following graph compares the group s planned rates increases with a quantified limit on rates increases contained in the financial strategy included in this long-term plan. The quantified limit is an average general rates increase of no more than 3.5 per cent to existing ratepayers. 5.0% % rates increase 4.0% 3.0% 2.0% 1.0% 0.0% 2014/ / / / / / / / / / /25 Year 274

281 Part 3: Our policies and other information 3.2 Prospective funding impact statement Financial reporting and prudence benchmarks Debt affordability benchmark The group meets the debt affordability benchmark if its planned borrowing is within each quantified limit on borrowing. There are three quantified limits described in the financial strategy of this plan: Net debt as a percentage of total revenue Net interest as a percentage of total revenue Net interest as a percentage of annual rates income For the purposes of this section: The limits detailed above exclude any income or expenses, asset or liability relating to Watercare, including revenue, debt, investments, interest income, and interest expense. Total revenue is defined as earnings from rates, government operating grants and operating subsidies, user charges, interest, dividends, development contributions received to service the borrowing cost relating to growth related capital works, financial and other revenue. Net debt is defined as total borrowings less cash and cash equivalents, and unit trusts. Net debt excludes guarantees to related or third parties. Net interest is defined as interest expense less interest income. Annual rates income is defined as general and targeted rates. Refer to note 4 of the financial statements for detailed calculations of these prudential ratios. Net debt as a percentage of total revenue The following graph shows net debt as a percentage of total revenue. A value less than the quantified limit of 275 per cent indicates compliance with the prudential limit. Net debt as % of total revenue 300% 250% 200% 150% 100% 50% 0% 2014/ / / / / / / / / / /25 Year 275

282 Part 3: Our policies and other information 3.2 Prospective funding impact statement Financial reporting and prudence benchmarks Net interest as a percentage of total revenue The following graph compares net interest as a percentage of total revenue. A value less than the quantified limit of 15 per cent indicates compliance with the prudential limit. Net interest as % of total revenue 16% 14% 12% 10% 8% 6% 4% 2% 0% 2014/ / / / / / / / / / /25 Year Net interest as a percentage of annual rates income The following graph compares net interest as a percentage of annual rates income. A value less than the quantified limit of 25 per cent indicates compliance with the prudential limit. Net interest as % of rates income 30% 25% 20% 15% 10% 5% 0% 2014/ / / / / / / / / / /25 Year 276

283 Part 3: Our policies and other information 3.2 Prospective funding impact statement Financial reporting and prudence benchmarks Balanced budget benchmark The following graph displays the group s planned revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant, or equipment) as a proportion of planned operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant, or equipment). The group meets the balanced budget benchmark if its planned revenue equals or is greater than its planned operating expenses. Revenue/ operating expenditure (%) 120% 100% 80% 60% 40% 20% 0% 96% 96% 99% 99% 103% 102% 107% 108% 106% 103% 104% 2014/ / / / / / / / / / /25 Year Note: Under this measure the group s planned operating expenses (including depreciation) is projected to be higher than planned revenue in the early years of the plan. As discussed in the Revenue and Financing Policy, this is due to the council's policy of moving to fully fund depreciation by

284 Part 3: Our policies and other information 3.2 Prospective funding impact statement Financial reporting and prudence benchmarks Essential services benchmark The following graph displays the group s planned capital expenditure on network services as a proportion of expected depreciation on network services. The group meets the essential services benchmark if its planned capital expenditure on network services equals or is greater than expected depreciation on network services. Capital expenditure as % of depreciation 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 181% 186% 190% 178% 179% 178% 170% 171% 161% 145% 146% 2014/ / / / / / / / / / /25 Year Debt servicing benchmark The following graph displays the group s planned borrowing costs as a proportion of planned revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant, or equipment). Because Statistics New Zealand projects the council s population will grow faster than the national population is projected to grow, it meets the debt servicing benchmark if its planned borrowing costs equal or are less than 15 per cent of its planned revenue. 20% Borrowing cost as % total revenue 15% 10% 5% 0% 12% 13% 13% 13% 13% 13% 13% 13% 13% 13% 13% 2014/ / / / / / / / / / /25 Year 278

285 Part 3: Our policies and other information 3.3 Local Boards Funding Policy 3.3 Local Boards Funding Policy 1. Purpose/Introduction The Local boards funding policy sets out how local boards are funded to meet the costs of: providing local activities administration support. 2. Background Auckland Council s 21 local boards have decision making responsibility for local activities. The full list of local activities is set out in the Allocation of decision making in the long-term plan. They include amongst others: local recreation services eg: swimming pools local libraries local parks local events local community development. Funding for local activities is split into two parts based on the nature of the service provided and the allocation of decision making between the Governing Body and local boards. The two classifications of activities are set out in the table below. Nature of service Nature of local board decision making role* Examples of activities Asset based services Locally driven initiatives Make decisions within parameters set by the Governing Body Make decisions on how locally driven initiative funding allocated from Governing Body is spent Swimming pools, Libraries Local parks Local events Local community grants * Local boards make decisions on specific location, design, and build of new facilities, service standards, and renewals, within parameters set by the governing body. Local boards also decide on use of facilities, including change of use and leases. Local board s decision making is set out in full in the Allocation of decision making responsibility for non-regulatory activities on page 4 of Chapter 1 of Volume Three, Financial information, policies and fees of the Long-term Plan Local boards have decision making responsibility for fees and charges for both asset based services and locally driven initiatives within any parameters set by the Governing Body. For example, local boards can set the fees for adult entry to swimming pools but may not charge for the entry of children, under 16. How local asset based services, locally driven initiatives and administration support, will be funded is set out below. 3. Funding for local asset based services Local asset based services will be funded by: 1. fees and charges collected from local asset based services for base fee levels set by the Governing Body 2. plus any other revenue including grants, donations, and sponsorships 3. plus any revenue from a targeted rate set to fund local asset based services 279

286 Part 3: Our policies and other information 3.3 Local Boards Funding Policy 4. plus general rate funding to meet the balance of costs for providing the services levels set by the Governing Body in the long-term plan for local asset based services being provided to each local board area. 4. Funding for locally driven initiatives 4.1 Funding sources The amount of budget available to each local board for locally driven initiatives is determined by: 1. fees and charges collected from locally driven initiatives 2. plus revenue from fees and charges for local asset based services in excess of that projected by the Governing Body where the local boards sets higher fees, (see section 3 above) 3. minus revenue from fees and charges for local asset based services below that projected by the Governing Body where the local boards sets lower fees, (see section 3 above) 4. plus any revenue from grants, donations, and sponsorships 5. plus any revenue from a targeted rate set to fund local activities in the local board area 6. plus an allocation from a budget pool for locally driven initiatives funded from the general rate. 4.2 Level of total budget available for locally driven initiatives The total general rates funded budget available for locally driven initiatives will be set by the Governing Body and will be identified in the long-term plan or annual plan. 4.3 Allocation of total budget pool Each local board will be allocated a share of the total budget available after deducting the funding for the Great Barrier Island Local Board and the Waiheke Island Local Board, see section 4.4 below. Each local board s share of the budget will be equivalent to its share of the regional population adjusted for deprivation 3 and land area, excluding Great Barrier Island and Waiheke Island. This is set out in the table on the next page. Factor Proportion of total general rate funded Local board share locally driven initiative budget Population* 90% Local board population divided by the total population of all local boards*** Deprivation** 5% Average local board deprivation divided by the total of the average deprivation of each local board*** Land area 5% Local board land area divided by the total land area of all local boards*** * adjusted each year to reflect changes in population estimates provided by Statistics New Zealand ** based on the most recently available update of the Index of Deprivation provided by the Ministry of Health *** excluding Great Barrier Island Local Board and Waiheke Local Board 4.4 Funding for Great Barrier Island Local Board and Waiheke Island Local Board The amount of budget available for locally driven initiatives on Great Barrier Island and Waiheke Island is determined by: 1. fees and charges collected from locally driven initiatives 3 Population will be adjusted annually based on revised estimates from Statistics New Zealand. 280

287 Part 3: Our policies and other information 3.3 Local Boards Funding Policy 2. plus revenue from fees and charges for local asset based services in excess of that projected by the Governing Body where the local boards sets higher fees, (see section 3 above) 3. minus revenue from fees and charges for local asset based services below that projected by the Governing Body where the local boards sets lower fees, (see section 3 above) 4. plus any revenue from grants, donations, and sponsorships 5. plus any revenue collected from targeted rates set to fund local activities 6. plus a general rates allocation General rates funding will be provided to meet the balance of the costs of providing locally driven initiatives on Great Barrier Island and the Waiheke Island. This will be based on the expenditure on these activities agreed with the Governing Body in their local board agreements each year net of revenue generated from the items in 1 to 5 above. 4.5 Transition The table below sets out the transition mechanism that will be applied each of the three years from 2015/2016. Local boards funded less than their allocation under the formula Locally driven initiatives budget will be increased in equal steps so that the local board is funded to the level of the allocation formula after 3 years Local boards funded above their allocation under the formula Locally driven initiatives budget will be held at its current absolute level (no increases for inflation) The table below sets out the transition mechanism that will be applied from 2018/2019 onwards. Local boards funded to the level of the allocation formula Increases in the total budget for locally driven initiatives budget will be applied as per the formula Local boards funded above their allocation under the formula Locally driven initiatives budget will be held at its current absolute level (no increases for inflation) until it is exceeded by the allocation under the formula 4.6 Definition of local asset based services and locally driven initiatives The Governing Body, after considering local board feedback, will determine which services are local asset based services and locally driven initiatives when the total budget for local activities is set. 5. Funding allocation for administrative support The funding for administrative support is allocated by adopting the following method: a. Allocation for the costs related to elected members in a local board - number of elected members multiplied by the budgeted cost per elected member b. Allocation for meeting other administrative costs - estimated cost of other administrative support for all local boards divided by the number of local boards. In estimating the costs, the special circumstances of the Great Barrier Island and Waiheke Island are taken into consideration to ensure equitable allocation of funds. 6. Funding allocation for non-dedicated purposes There will be no allocation of non-dedicated (general purpose) funding to local boards in the LTP Funding sources for funds allocated for local activities Funding sources for funds allocated for local activities are set out in the revenue and financing policy. 281

288 Part 3: Our policies and other information 3.4 Summary of Significance and Engagement policy 3.4 Summary of Significance and Engagement policy Auckland Council s new Significance and Engagement Policy (the Policy) became effective on 1 December This Policy was required under the Local Government Act 2002 (the LGA) and applies across the council group including our Council Controlled Organisations (CCOs) through the CCO Accountability Policy. The Policy: (1) identifies how and when communities can expect to be engaged in, or specifically consulted on, decisions about issues, proposals, assets, decisions and activities; and (2) enables the council and our communities to understand the significance that the council places on certain issues, proposals, assets, decisions and activities. This section provides a summary of the full Significance and Engagement policy. the full policy is available at tpolicy.pdf. 1. Engaging Auckland s Communities Effective community engagement is central to the success of any council. Auckland Council s Thriving Communities Action Plan identifies that thriving communities have citizens who care about, and want to participate in, their democracy. Council will therefore actively seek to improve engagement opportunities, and will demonstrate how public input has influenced decisions, as well as building ongoing, reciprocal relationships with our communities. This responsibility is shared with the Mayor, with Councillors and with the Local Boards. Engagement Principles; The LGA lists the principles that council is expected to meet and provides good practice measures to attain these principles. Council s Significance and Engagement Policy endorses these principles and good practice measures. The principles are: Council will conduct its business in an open, transparent and democratically accountable manner; and give effect to its identified priorities and outcomes in an efficient and effective manner. A local authority should make itself aware of, and should have regard to, the views of all its communities. When making a decision, a local authority should take account of the diversity of the community, and the community s interests; and the interests of future as well as current communities; and the likely impact of any decision on them. A local authority should provide opportunities for Māori to contribute to its decision making processes. A local authority should ensure prudent stewardship and the efficient and effective use of its resources in the interests of its district or region, including by planning effectively for the future management of its assets. Māori; Auckland Council has duties, obligations and commitments to Māori and to the Independent Māori Statutory Board (IMSB). Wherever possible council will; consider the recognition and protection of Māori rights and interests within Tāmaki Makaurau consider the principles of Te Tiriti o Waitangi, the Treaty of Waitangi (also embedded in the Māori Responsiveness Framework) enable Māori participation in decision making processes recognise Māori cultural values and perspectives including mātauranga Māori, tikanga Māori and kaitiakitanga 282

289 Part 3: Our policies and other information 3.4 Summary of Significance and Engagement policy contribute to Māori capacity enable and promote Māori well-being work with and take into account the advice of the IMSB in ensuring that the input of mana whenua groups and mataawaka of Tāmaki Makaurau is reflected in council strategies, policies and plans Auckland Council acknowledges that it has different requirements for working engaging with mana whenua, Māori residents and ratepayers. We aim to achieve best practice in working with mana whenua as partners. Diverse and Changing Communities; Around twenty percent of Aucklanders have some kind of access need. This includes, but is not limited to, people with visual, hearing or literacy impairments and those who speak English as a second language. In any engagement programme we will consider how to meet the needs of our communities in respect of language, accessibility and cultural expectations. Engagement Methods; The Policy acknowledges that the council follows the International Association of Public Participation (IAP2) approach which indicates a spectrum of approaches including informing, consulting, involving, collaborating and empowering. Auckland Council will seek opportunities to involve or collaborate with our communities, although the appropriate approach will depend on the type and nature of decision to be made. Council may engage using a variety of digital, print, social and interactive channels. 2. Determining Significance The council must consider the community s views and preferences in all decisions it makes. If and once a particular decision is found to be significant, council becomes bound by the specific consultation requirements of the LGA (as detailed below). General Approach to Determining Significance; The governing body and local boards have the discretion to find any given decision to be significant but will consider the following matters when determining the degree of significance of a decision; the number of people affected, the degree to which they are affected and the likely impact of a decision, whether the type of decision has historically generated wide public interest within the locality (local board decision) or within Auckland and New Zealand (a governing body decision), the impact of the decision on the governing body or local board ability to deliver on actions that contribute to the Auckland Plan, as well as any statutory responsibility, the impact of the decision on the intended service levels for a group of activities, including the start/stop of any group of activity, and the degree to which the decision or proposal can be reversed should circumstances warrant, the relationship of Māori, and their culture and traditions, in respect of any decision impacting on ancestral lands, water, sites, waahi tāpu, valued flora and fauna and other taonga, Furthermore, any decision that meets a threshold criteria triggers requirement to consult. Council s thresholds relevant to determining significance are creating a new group of activity, stopping carrying out a group of activity, increasing (33% or more) or decreasing (20% or more) spending on a group of activity, and transferring ownership or control of strategic assets. The relevant strategic assets include those asset classes that are vital for delivering services to Auckland, including all components integral to the functioning of the network as a whole. A comprehensive list of these asset classes or networks is included in the Policy. Other strategic assets explicitly included are iconic assets with strategic significance, together with any shares in a port/airport company and those assets required to provide affordable housing as part of the council s social policy. Strategic assets that are owned and/or managed by a CCO are those identified in the CCO Accountability Policy. All reports by officers to the council, a council committee or a local board which seek a decision must include a statement addressing the issue of significance. Where a proposal is considered significant the report will further include a statement to explain how the relevant sections of the LGA and the Policy have been addressed. 283

290 Part 3: Our policies and other information 3.4 Summary of Significance and Engagement policy 3. Consultation Requirements Consultation processes under the LGA have been amended and now allow the council greater flexibility in how we go about consulting with our communities. Where a decision is significant there remain two different but closely related ways in which we can engage the public; consultation and a special consultative procedure. Consultations (Section 82/82A LGA) Before council makes a significant decision it will consult the public following these principles: identify the people who will be affected by or have an interest in the decision provide them with reasonable access to relevant information in an appropriate format on the process and scope of the decision encourage people to give their views give people a reasonable opportunity to give their views in an appropriate way listen to and consider those views with an open mind, and after the decision, provide access to the decision and any other relevant material. When the LGA requires council to consult on a draft policy or decision, council will prepare and make available a description of what we want to do and why, an analysis of the practical options (advantages and disadvantages), and a draft of the policy or relevant document (or detailed of intended changes). Special Consultative Procedures (SCP) Part 6 of the LGA specifies the use of an SCP for some plans and processes including the long-term plan, local board plans, setting rates, and for any bylaws of significant interest to the public or likely to have a significant impact on the public (other bylaws will be the subject of a regular consultation as described above). An SCP may also be used when a governing body determines a regional decision to be significant, or where a local board determines that a local decision is significant. In addition to the consultation principles listed above, under an SCP council must also; develop a statement of proposal and make this publicly available (with the summary or full proposal being widely available) allow feedback for a minimum of one month ensure that people are given an opportunity to present their views to the council through spoken interaction (may include the use of sign language). 4. Exclusions The Policy does not apply where, in the opinion of the council, failure to make a decision urgently would result in unreasonable or significant damage to property, or risk to people s health and safety. The LGA provides a process for council to follow where there is good reason to make a decision inconsistent with the Policy. 5. Applying the Policy The Policy also contains references to supporting information, reference material, monitoring provisions, management of conflicts of interest, and other legislation, together with an overview of council s decision making responsibilities and some key definitions. 284

291 Part 3: Our policies and other information 3.5 Allocation of Decision-Making Responsibility for non-regulatory Activities 3.5 Allocation of Decision-Making Responsibility for Non-Regulatory Activities Source of decision-making responsibilities The governing body and local boards obtain their decision-making responsibilities from three sources: (a) Statutory decision-making responsibilities The governing body and local boards have statutory responsibilities under the Local Government (Auckland Council) Act 2009 (Act). Governing body: The governing body is a local authority, and hence has the power of general competence under section 12 of the Local Government Act In addition, the governing body has specific statutory decision-making responsibility for the following: The regulatory activities of Auckland Council (such as Unitary Plan, consenting, and bylaws) Allocation of non-regulatory activities to either local boards or the governing body Agreeing local board agreements with local boards Emergency management, including rural fire services Compliance with the financial management requirements of section 101 of the Local Government Act (including the Annual Plan, the Long-term Plan, and financial policies) Acquisition and disposal of assets Regional strategies and policies (such as the Auckland Plan and the Local Board Funding Policy) Governance of Council-Controlled Organisations Appointment of the Chief Executive and maintaining the capacity of Auckland Council to provide its services and facilities Transport networks and infrastructure. Local boards: The statutory role of local boards includes decision-making responsibility for the following: Adoption of local board plans. Agreement of local board agreements (with the governing body) and monitoring the implementation of local board agreements - this can include proposing a local targeted rate. Providing input into regional strategies, policies and plans Proposing bylaws for the local area Community engagement, consultation and advocacy. These matters are not repeated in the allocation table. Local boards are not local authorities but will act as such for specified allocated matters, or those matters set out in the Local Government (Auckland Council) Act (b) Delegation of decision-making responsibilities The governing body can also delegate some of its decision-making responsibilities to local boards. To date the governing body has delegated the following decision-making responsibilities to local boards: Exemptions under the Fencing of Swimming Pools Act 1987 Input into notification decisions for resource consent applications 285

292 Part 3: Our policies and other information 3.5 Allocation of Decision-Making Responsibility for Non-Regulatory Activities Authorising the destruction of wandering stock on Great Barrier Island, in accordance with the Impounding Act 1955 is delegated to the Great Barrier Local Board. Amendments to the Policy on Dogs in relation to any dog access rules in local parks, local beaches or local foreshore areas in their local board area The power to name streets and allocate numbers through the Auckland Council Public Safety and Nuisance Bylaws 2013 Making objections to liquor licensing applications under the Sale and Supply of Alcohol Act 2012 Making, amending or revoking alcohol bans, except in areas of regional significance. The governing body and local boards can also be delegated decision-making responsibilities from Auckland Transport. There are currently no delegations in place. (c) Allocation of decision-making for non-regulatory activities The governing body is required by legislation to allocate decision-making responsibility for the non-regulatory activities of Auckland Council to either the governing body or local boards, in accordance with principles contained in section 17(2) of the Act. This provides as follows: a. decision-making responsibility for a non-regulatory activity of the Auckland Council should be exercised by its local boards unless paragraph (b) applies: b. decision-making responsibility for a non-regulatory activity of the Auckland Council should be exercised by its governing body if the nature of the activity is such that decision-making on an Auckland-wide basis will better promote the well-being of the communities across Auckland becausei. the impact of the decision will extend beyond a single local board area; or ii. effective decision making will require alignment or integration with other decisions that are the responsibility of the governing body; or iii. the benefits of a consistent or co-ordinated approach across Auckland will outweigh the benefits of reflecting the diverse needs and preferences of the communities within each local board area. Decision-making for non-regulatory activities can only be allocated to either the governing body or to a local board. Where more than one local board has an interest in a local activity then section 16(3) of the Act provides that: a local board should collaborate and co-operate with 1 or more other local boards in situations where the interests and preferences of communities within each local board area will be better served by doing so. The non-regulatory decision-making allocation is required to be identified in the Long-Term Plan and forms part of the special consultative procedure for the draft Long-Term Plan. 286

293 Part 3: Our policies and other information 3.5 Allocation of Decision-Making Responsibility for non-regulatory Activities Allocation of decision-making for non-regulatory activities The allocation of decision-making responsibility to the governing body and to local boards for the non-regulatory activities of Auckland Council is set out in the following tables. These will apply from 1 July Theme Governance and support Auckland Development Local Board non-regulatory responsibilities Local boards are allocated decision-making responsibility for the following non-regulatory activities of Auckland Council. Local governance including: decision-making and oversight of decisions on local activities development of local policy positions such as determining areas in which activities may take place and local service specifications submissions to government on legislation where it specifically relates to that local board area only civic duties, engagements and functions in the local area, including citizenship ceremonies and recognition of volunteers. Explanatory notes: Governing Body non-regulatory responsibilities The governing body is allocated decisionmaking responsibility for the following nonregulatory activities of Auckland Council. Regional governance including: decision-making and oversight of decision on regional activities submissions to government on legislation including official submissions of Auckland Council incorporating local board views regional civic duties, engagements and functions. Area plans will require a high degree of involvement from local boards. A local board does not have the power to make submissions or objections on matters where the council is exercising its regulatory responsibilities unless specifically delegated by the governing body. Local boards have a statutory role identifying and communicating the interests and preferences of its communities in relation to policies, plans and bylaws. Processes will need to be identified that enable a local board to fulfil this role where a delegation has not been given. Local planning and development including: Regional planning including: local place-shaping activities, including local Auckland Plan, area plans and regional spatial leadership to create a local identity priority areas focusing on growth development local strategic visioning, policy making and planning within parameters set by regional strategies, policies and plans and key infrastructure priorities regional strategies, policies and plans Auckland-wide place-shaping activities, including regional leadership to create Auckland s identity. Street environment and town centres including: maintenance of the local street environment and local centres, within parameters set by the governing body improvements to the local street environment and town centres excluding any improvements that are integral to a transformation programme for the centres prioritised for growth as set out in the Auckland Plan naming of roads pursuant to section 319(1)(j) of the Local Government Act Street environment and town centres including: street environment and town centres strategy and policy, including the classification of town centres transformation programmes for the centres that are prioritised for growth as set out in the Auckland Plan Business area planning including: local economic development plans, projects and initiatives (including local centre branding and marketing and local business events) within parameters set by regional strategies and policies Business Improvement District (BID) programmes, including the strategic direction (in partnership with the business association), establishment of new BIDs within the parameters set by the BID policy and recommending BID targeted rates to the Economic development including: regional economic development strategy and policy, such as Auckland economic development strategy, investment framework and BID policy international relationships, including entering into new relationships and ending existing relationships Auckland-wide economic development programmes and initiatives, including regional 287

294 Part 3: Our policies and other information 3.5 Allocation of Decision-Making Responsibility for Non-Regulatory Activities Theme Parks, Community and Lifestyle Local Board non-regulatory responsibilities Local boards are allocated decision-making responsibility for the following non-regulatory activities of Auckland Council. governing body. Governing Body non-regulatory responsibilities The governing body is allocated decisionmaking responsibility for the following nonregulatory activities of Auckland Council. business events, and branding and marketing for the central city, metropolitan centres and centres prioritised for growth as set out in the Auckland Plan. Explanatory notes: Regional strategies and policies are not intended to be prescriptive or unduly restrict the decisionmaking role of local boards. Where they relate to local activities, they provide regional parameters within which local boards then make decisions on local activities. Development of the city centre waterfront is the responsibility of Waterfront Auckland / Development Auckland. Auckland Transport has significant decision-making responsibilities within the street environment and town centres A number of agencies will be involved in the delivery of transformation programmes. Major events, tourism and visitor centres, and business attraction and development are the responsibility of ATEED Local community services including: Regional community services including: Arts and culture including: the specific location, design, build and fit out of new local arts and culture facilities within budget parameters agreed with the governing body the use of local arts and culture facilities, including changes of use. local arts and culture projects, initiatives and events local public artwork and local public art programmes local community funding and grants tailoring regional arts and culture programmes and events to local needs. Arts and culture including: any new arts and culture facilities acquired for an Auckland-wide purpose or function the number and general location of all new arts and cultural facilities and the prioritisation of major upgrades to all existing arts and culture facilities the use of regional arts and culture facilities. regional arts and culture strategy and policy regional arts and culture programmes and events regional public artwork and regional public art programmes development, maintenance and access to the regional visual arts collection, including exhibitions and interpretive programmes region-wide community funding and grants regional arts and culture programmes, which can be tailored to local needs. Events including: attraction, development, delivery and promotion sub-regional events which are the responsibility of the local board in which the event is located, in collaboration with other affected local boards local events sponsorship, funding and grants tailoring regional events programmes to local needs. Community development and facilities including: plans, projects and initiatives specific to the local area tailoring region-wide community development and safety programmes in the local area facilitating community-led placemaking and development initiatives community advisory services local community funding and grants. Events including: regional events strategy and policy, including region-wide events plan coordinating regional events, including attraction, development, delivery and promotion regional events sponsorship, funding and grants regional events programmes, which can be tailored to local needs. Community development and facilities including: Auckland-wide community development strategy and policy Auckland-wide community development and safety programmes which can be tailored to local needs Auckland-wide community funding and grants. the number and general location of all new community facilities and the prioritisation of 288

295 Part 3: Our policies and other information 3.5 Allocation of Decision-Making Responsibility for non-regulatory Activities Theme Local Board non-regulatory responsibilities Local boards are allocated decision-making responsibility for the following non-regulatory activities of Auckland Council. the specific location, design, build and fit out of new local community facilities within budget parameters agreed with the governing body the use of local community facilities, including leasing and changes of use. Governing Body non-regulatory responsibilities The governing body is allocated decisionmaking responsibility for the following nonregulatory activities of Auckland Council. major upgrades to all existing community facilities the location design and use of any new community facilities developed for an Auckland-wide purpose social housing, such as housing for the elderly. Parks, Community and Lifestyle Libraries including: Libraries including: the specific location, design, build and fit out libraries strategy and policy of new local libraries within budget parameters the number and general location of all new agreed with the governing body libraries and the prioritisation of major the design and type of community facilities upgrades to existing libraries within local libraries the libraries collection policy and practice the use of local libraries including local exhibitions, programmes and events within (including development and maintenance of all library collections) local libraries. regional exhibitions, programmes and events within libraries the mobile library service the central library, other than the ground and first floors. Explanatory notes: Definitions of local and regional events are set out in schedule 2 in accordance with the Auckland Council Events Policy. Regional events facilities and amenities are the responsibility of Regional Facilities Auckland (RFA). These include the Viaduct Events Centre, stadium management, The EDGE, Auckland Zoo and the Auckland Art Gallery. Local parks, sport and recreation including: Regional parks, sport & recreation including: Recreation facilities and initiatives including: the specific location, design, build and fit out of new local recreation and sports facilities within budget parameters agreed with the governing body the use of local recreation facilities and initiatives including leasing and changes of use local recreation and sports programmes community funding and grants tailoring regional recreation and sports programmes to local needs. Recreation facilities and initiatives including: any new recreational facilities developed for an Auckland-wide purpose or function the number and general location of all new recreation and sports facilities (including sports stadiums) and the prioritisation of major upgrades to all existing recreation and sports facilities the use of regional recreation and sports facilities (including sports stadiums) coordination of the use of recreation and sports facilities on a regional basis regional recreation and sports strategy and policy regional recreation and sports programmes, which can then be tailored to local needs regional community funding and grants Parks including: the specific location of new local parks (including the prioritisation for acquisition) within budget parameters agreed with the governing body reserve management plans for local parks local parks improvements and place shaping the use of and activities within local parks, such as community events and Parks including: any new parks acquired for an Auckland-wide purpose or function regional open space strategy and policy, including open space network plan and volcanic cones strategy reserve management plans for regional parks the number and general location of all new parks and the prioritisation of major upgrades to existing parks (including sports fields within parks) 289

296 Part 3: Our policies and other information 3.5 Allocation of Decision-Making Responsibility for Non-Regulatory Activities Theme Environmental Management and Regulation Local Board non-regulatory responsibilities Local boards are allocated decision-making responsibility for the following non-regulatory activities of Auckland Council. community planting programmes cemeteries that are no longer in regular active use and are functioning as local parks naming of local parks. Governing Body non-regulatory responsibilities The governing body is allocated decisionmaking responsibility for the following nonregulatory activities of Auckland Council. the use of and activities within regional parks acquisition and divestment of all park land, including the disposal of surplus parks coordination of the use of all sports fields on a regional basis Open cemeteries. Explanatory notes: Regional sports facilities (including sports stadiums) are generally the responsibility of Regional Facilities Auckland (RFA). Local environmental services including: Solid waste and environmental services including: local environmental initiatives and projects facilitating community-led placemaking and regional environmental, heritage and urban development initiatives design strategy, policy and guidelines local stormwater quality projects within Auckland-wide environmental programmes regional frameworks and projects local waste management plans and projects waste management, including the Waste within regional parameters set out in the Minimisation and Management Plan Waste Minimisation and Management Plan landfill management the Te Arai Drainage District, the Okahuhura environmental research and monitoring. Drainage Area and the Glorit Drainage District. This allocation of decision-making Stormwater management including: responsibility is to the Rodney Local Board. the stormwater network, including catchment management plans. Relevant to each group of activities/ area Fees and charges Service specifications Procurement Local board non-regulatory responsibilities Setting of fees and charges for local activities excluding: library collections fees and charges; and any fees and charges for local activities that are set on a region-wide basis by the governing body in a regional policy. Setting of service specifications for local activities subject to any minimum service specifications that the governing body has decided, for policy reasons, to set on an Auckland-wide basis. Procurement for local activities excluding: procurement of major service delivery contracts (such as maintenance, security and cleaning contracts) for Auckland-wide local assets and facilities on a coordinated basis. Governing body non-regulatory responsibilities Setting of fees and charges for the governing body activities and: Auckland-wide fees and charges for local activities that are set by the governing body in a regional policy library collections fees and charges. Setting of service specifications for governing body activities and minimum service specifications for local activities where the governing body decides to do so for policy reasons. Procurement for the governing body activities and procurement of major service delivery contracts (such as maintenance, security and cleaning contracts) for Auckland-wide local assets and facilities on a coordinated basis the procurement policy for Auckland Council. Explanatory notes: There are significant efficiencies to be gained by the governing body procuring some contracts on a larger scale or a coordinated basis. This is likely to cover areas like parks and facilities maintenance, security and cleaning, which involve local and regional assets and facilities across Auckland. (The guidelines for procuring these types of contracts will be contained in the procurement manual. Procurement for most local activities will though, remain a local board decision-making responsibility). Local boards will set the service specifications as they relate to their local area as set out in the allocation above. Asset renewal Maintaining service capacity and integrity of Maintaining the service capacity and integrity of 290

297 Part 3: Our policies and other information 3.5 Allocation of Decision-Making Responsibility for non-regulatory Activities Relevant to each group of activities/ area Other activities of Auckland Council Local board non-regulatory responsibilities local assets throughout their useful life in accordance with Auckland-wide parameters and standards set by the governing body. Explanatory notes: Governing body non-regulatory responsibilities regional assets throughout their useful life and setting Auckland-wide parameters and standards for all asset management planning. The local board s asset renewal decision-making responsibility is within the framework and standards set by the governing body to ensure regional consistency All other non-regulatory activities of Auckland Council Schedule 1- Governance of parks 7. The governing body has governance responsibility for the following regional parks and contiguous land. Regional Parks Auckland Council has classified the following as regional parks: Ambury Atiu Creek Auckland Botanic Gardens Awhitu Duder Hunua Ranges Long Bay Mahurangi Muriwai (excluding Muriwai Village Green) Mutukaroa / Hamlins Hill Omāna Pakiri Puketutu Island Scandrett Land contiguous with Regional Parks Relevant Regional Park Shakespear Tapapakanga Tawharanui Tawhitokino Te Ārai Te Muri Te Rau Pūriri Waharau Waitākere Ranges Waitawa Wenderholm Whakanewha Whakatiwai Land to be amalgamated into adjacent Regional Park Long Bay Piripiri Park Section 1 SO Mahurangi Scott Point Reserve, Te Kapa Peninsula (subject to continued 24 hour public access) Lot 15 DP Sec 216 Mahurangi Village SO Lot 14 DP Muriwai Oaia Reserve, Muriwai Lot 11 DP Te Arai Te Ārai Reserve (subject to continued 24 hour public access) Lot 1 DP Lot 1 DP Waitākere Ranges Mārama Plantation Reserve, Little Huia Lot 12 DP Douglas Scenic Reserve Lot 31 DP Rāroa Park Lot 100 DP Parkland surrounding Waitākere Quarry Scenic Reserve Lot 2 DP Karekare Reserve Lot 31 DP Lone Kauri Road 3 reserves Lot 99 DP Lot 106 DP Lot 107 DP South Piha Plantation Reserve Lot 77 DP Lake Wainamu Scenic Reserve Section 3 Block 1/Waitakere SD/ Tasman View Esplanade Lot 90 DP

298 Part 3: Our policies and other information 3.5 Allocation of Decision-Making Responsibility for Non-Regulatory Activities Lake Wainamu Walkway Waitoru Reserve, Bethells Rd Pt Waitakere 1A (Easement over lake edge only) Pt Allotment 5 PSH OF Waitakere 8. The Maunga Authority has governance decision-making responsibility for the following maunga. Parks under the administration of the Maunga Authority Matukutūruru (Wiri Historic Reserve) Maungakiekie (One Tree Hill) Maungarei (Mt Wellington) Maungauika (North Head) (subject to agreement regarding the councils role) Maungawhau (Mt Eden) Ōhinerau (Mt Hobson) Ōhuiarangi (Pigeon Mt) Ōtāhuhu (Mt Richmond) Mt Albert Mt Roskill Takarunga (Mt Victoria) Mt St John Māngere Mountain Te Tātua a Ruikiuta (Big King) 9. Post settlement governance entities have governance responsibility for the following reserves. Park name Governance entity Relevant legislation Parakai Recreation Reserve Parakai Recreation Reserves Board Ngāti Whātua o Kaipara Claims Settlement Act 2013 Whenua Rangatira Ngāti Whātua o Orākei Reserves Board Orākei Act The governing body has responsibility for land contiguous to maunga governed by the Maunga Authority. The Nga Mana Whenua o Tāmaki Makaurau Redress Act 2014 provides for the transfer of administration by the Council of these lands to the Maunga Authority at the discretion of the governing body. Land contiguous with parks subject to Treaty of Waitangi settlement Park subject to Treaty of Waitangi Settlement Contiguous council owned land allocated to the governing body Maungawhau (Mt Eden) Lot 1 DP Maungarei (Mt Wellington) Lot 200 DP Ōhinerau (Mt Hobson) Pt Allotment 2 SECT 11 SBRS OF Auckland Ōhuiarangi (Pigeon Mt) Lot 182 DP Lot 183 DP Section 1 SO Section 2 SO Section 3 SO Allotment 19 SECT 5 SM FMS NEAR Howick Land contiguous with parks subject to Treaty of Waitangi settlement Ōtāhuhu (Mt Richmond) Lot 1 DP Lot 2 DP Lot 3 DP Lot 4 DP Lot 5 DP

299 Part 3: Our policies and other information 3.5 Allocation of Decision-Making Responsibility for non-regulatory Activities Land contiguous with parks subject to Treaty of Waitangi settlement Lot 6 DP Lot 7 DP Lot 8 DP Pt Lot 10 DP Mt Albert Lot 29A DP Lot 19 DP Lot 59 DP Mt St John Lot 1 DP Māngere Mountain Lot 2 DP Lot 13 DP Lot 2 DP Pt Allotment 202 PSH OF Manurewa Allotment 379 PSH OF Manurewa Allotment 262 PSH OF Manurewa Paper Road (Pt Māngere Mountain Education Centre grounds) LOT 24 DP Paper Road (Access to Ridgemount Road) Lot 1 DP Lot 29 DP Lot 1 DP Te Tātua a Ruikiuta (Big King) Lot 4 DP Lot 3 DP Lot 5 DP Lot 4 DP Lot 5 DP Lot 1 DP Pt Allotment 80 SECT 10 SBRS of Auckland 11. Auckland Domain Decision making allocation for Auckland Domain is geographically split, with the Waitemata Local Board being allocated responsibility for the playing fields areas and two community recreational leases (Auckland Bowling Club and Parnell Tennis Club), and the balance of land within Auckland Domain being allocated to the governing body. 12. Motukorea (Browns Island) Motukorea is owned by Auckland Council and managed by the Department of Conservation. Decision making as required within the parameters of the management agreement with the Department of Conservation is allocated to the governing body. Schedule 2 - Auckland Council Events Policy categories The Events Policy identifies three categories of events, local, regional and major. Local events - An event is considered to be a local activity governed by local boards unless it meets the criteria for a regional or major event as defined in this policy. 293

300 Part 3: Our policies and other information 3.5 Allocation of Decision-Making Responsibility for Non-Regulatory Activities Regional and major events - An event must demonstrate the strategic outcomes, appeal, profile and economies of scale to be categorised a regional or major event as defined in the table below. It will have most, if not necessarily all, of the distinguishing characteristics below. Event Strategic Outcomes Category Regional delivers regional objectives set by the governing body helps deliver on Auckland-wide strategies such as for sport and recreation, arts and culture offers a distinctive event proposition for the region. Appeal breadth and depth of the event demonstrates it draws from a regionally-distributed audience e.g. appeals to a specific demographic or interest group that is geographically dispersed across the region demonstrates a size and scale that is regionally significant. Profile has region-wide and maybe national profile, demonstrated through media and wide public awareness. Regional Coordination demonstrates clear benefits of decisions being coordinated at a region-wide level only if the nature of the event is such that decision-making on an Auckland-wide basis will better promote community well-being across Auckland e.g. delivered in multiple locations across the region, ensuring regional distribution, ability to attract sponsorship, regionwide marketing and promotion. Major delivers economic development outcomes delivers significant economic return on investment provides measureable economic benefits such as significant increase in visitor nights. appeals to regional, national and international audiences and participants a large mass appeal social event that is distinctive to Auckland. has regional, national and international profile. 294

301 Part 3: Our policies and other information 3.6 Summary of the Tūpuna Maunga o Tāmaki Makaurau Authority Operational Plan 2015/ Summary of the Tūpuna Maunga o Tāmaki Makaurau Authority Operational Plan 2015/2016 The Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014 vested Crown owned land in 14 tūpuna maunga ( Maunga ) in Ngā Mana Whenua o Tamaki Makaurau 1, and are to be held in trust as reserves for the common benefit of the iwi/hapū of Ngā Mana Whenua o Tāmaki Makaurau and the other people of Auckland. The 14 maunga are: Matukutūruru - Wiri Mountain, Maungakiekie - One Tree Hill, Maungarei - Mount Wellington, Maungawhau - Mount Eden, Owairaka / Te Ahi-ka-a-Rakatura - Mount Albert, Pukewīwī / Puketāpapa -Mount Roskill, Te Kōpuke / Tītīkōpuke - Mount St John, Ōhinerau / Mount Hobson, Ohuiarangi / Pigeon Mountain, Te Tātua a Riukiuta Big King, Ōtāhuhu Mt Richmond, Takurunga / Mount Victoria, Maungauika / North Head, Rarotonga / Mount Smart. The Tūpuna Maunga o Tāmaki Makaurau Authority is the administering body for 12 of the maunga and Māngere Mountain. The exceptions are Maungauika / North Head, which is currently administered by the Crown (Department of Conservation), and Rarotonga / Mt Smart where responsibility for management and administration remains with Auckland Council. For each financial year, the Maunga Authority and Auckland Council agree an annual operational plan to provide a framework for council to carry out its functions for routine management of the maunga and administered lands for that financial year. A summary of the Tūpuna Maunga o Tāmaki Makaurau Authority operational plan for 2015/2016 is outlined below. The full plan is available at Strategic Priorities The Maunga Authority have identified the following funding priorities for the short, medium and long term investment into the Maunga which are outlined in Table 1 and 2 below. Table 1: Strategic Priorities - Operating Expenditure Operating Expenditure LTP 10 year forecast Strategic Priorities Short Term 1-3 Years Timing of Expenditure Med Term 4-7 Years Long Term 8-10 Years Policy Planning Development of an Integrated Management Plan to set long term objectives and policies. Review of existing bylaws. Visitor experience Development of brochures / information for park visitors. Conservation & Heritage Increased resources to manage animal / plant control on the Maunga Increased resources to manage structure trees and vegetation including removal of exotic species. Landscape protection (restoration of historic sites, re-vegetation, monitoring) Improving maintenance levels of the Maunga Community Engagement & Education Developing partnerships and education programmes Cultural activities Maintenance of Infrastructure Upgrade of park furniture, repairs to buildings, historical assets, including asset condition renewal, maintenance and removal. 1 Ngā Mana Whenua o Tāmaki Makaurau are the 13 iwi/hapū in wider Tāmaki Makaurau. The members of Ngā Mana Whenua o Tāmaki Makaurau are: Ngāi Tai ki Tāmaki, Ngāti Maru, Ngāti Pāoa, Ngāti Tamaoho, Ngāti Tamaterā, Ngāti Te Ata, Ngāti Whanaunga, Ngāti Whātua o Kaipara, Ngāti Whātua Ōrākei, Te Ākitai Waiohua, Te Kawerau ā Maki, Te Patukirikiri, Te Rūnanga o Ngāti Whātua. 295

302 Part 3: Our policies and other information 3.6 Summary of the Tūpuna Maunga o Tāmaki Makaurau Authority Operational Plan 2015/2016 Table 2: Strategic Priorities - Capital Projects Capital Projects LTP 10 year forecast Strategic Priorities Visitor Experience Signage Replacement including entry signs, toilets, facilities all signs to reflect Māori name, replace legacy logos with new Maunga Authority logo Way finding / interpretation - track and trail marking, interpretation of features, notice boards, visual aids, interactive displays Track Upgrades upgrade tracks to improve access and protection of sensitive site Upgrade and Development of Facilities develop toilet facilities as required, potential visitor centre for the Maunga Car Parking improve current visitor car parking facilities to encourage walking and reduction in vehicle numbers on summits Park furniture develop a furniture design that is specific to the Maunga to include bins, tables, seats, gates Entrance Upgrade develop a distinct entry way that reflects the change in ownership and highlights the importance of the sites. To include gates, pedestrian access, parking, landscaping Conservation & Heritage Fencing / Bollards installation and upgrade of vehicle barriers, removal of redundant fencing, placement of new fencing, rebuilding of stone walls Landscape Protection restoration & protection of significant sites, such as pits, terraces, Pā s, vegetation control, restoration plantings. Community Engagement and Education Pou installation of pou Information centre development of displays and information for visitors Short Term 1-3 Years Med Term 4-7 Years Long Term 8-10 Years Summary of Indicative Funding Requirements The funding for Tūpuna Maunga is set at a regional level and reflects the strategic priorities identified by the Maunga Authority for Tūpuna Maunga. Table 3. Summary of Indicative Funding Requirements Net Operating Expenditure 2015/ / / / / / / / / /25 Sub Total 2,447,182 2,863,020 2,957,120 2,833,632 2,938,249 3,043,848 3,153,227 3,317,103 3,493,284 3,686,366 30,733,031 Capital Projects 1,564,627 1,915,844 1,974,718 3,680,672 3,715,849 3,823,607 3,938,324 8,795,800 9,086,077 9,395,013 47,890,531 Total Funding 4,011,809 4,778,864 4,931,838 6,514,304 6,654,098 6,867,455 7,091,551 12,112,903 12,579,361 13,081,379 78,623,562 Requirement Note: The Net Operating Expenditure takes into account the funding from the Open Space and Volcanic Cones Targeted Rate Reserve (Targeted Rate Reserve) which has been used to help fund activities over the first six years of the LTP. Table 4 below shows how the funds from the Targeted Rate Reserve have been applied. The targeted rate reserve reflects funding previously generated by the Open Space and Volcanic Cones Targeted rate which now sits in a reserve and must be used for operational purposes associated with the volcanic cones. Table 4. Open Space and Volcanic Cones Targeted Rate Reserve 2015/ / / / / / / / / /25 Sub Total Targeted rate reserve 562, , , , ,158 69,924 2,500,

303 Part 3: Our policies and other information 3.7 Housing for Older People Partnering Policy 3.7 Housing for Older People Partnering Policy Purpose The council has decided to amend its Long-term Plan (LTP), to provide for the council to: a. Enter into an agreement with a preferred partner(s) to form a new Community Housing Provider to manage the council s Housing for Older People (HfOP) portfolio. b. Delegate Panuku Development Auckland (Panuku) the authority to work with a preferred partner(s) to redevelop housing in the portfolio, which includes selling land and buildings, to improve the quality of the portfolio. This policy sets out the parameters and criteria for implementing these changes. By entering into these partnerships1, the HfOP portfolio will have access to third-party sector expertise and government funding, which will improve responsiveness to development opportunities. This will improve tenant satisfaction by providing, over time, an improved quality of housing as well as providing better quality service through access to more community support networks and higher levels of engagement. Background Auckland Council currently owns an HfOP portfolio, which consists of 1,412 rental units spread across Auckland in 62 properties covering 26 hectares of land. The purpose of HfOP services is to support ageing in place by providing affordable housing for Auckland s older people with a social housing need. While this portfolio provides a valuable service to vulnerable older people, initial assessments indicate that a large portion is not fit for purpose. Therefore, the Housing Action Plan directs the council to investigate potential partnerships with the Community Housing Provider sector, as well as enabling redevelopment projects on current HfOP sites. This policy supports the council when entering into these partnerships, and sets the criteria for the key decisions on partnership formation, management of the sites and development of the portfolio, to ensure that the council s objectives are met. Key decision-making criteria The criteria are designed to ensure that any decision made in relation to the management and development of the portfolio will always maintain or improve tenant well-being without overly exposing the council to financial impacts and risk. 1. General decision-making Improved tenant satisfaction: Tenant well-being is at the forefront of any decision-making by maintaining current services and with any changes causing the least amount of disruption possible. Improved quality of housing: There are improvements made to the quality of housing provided, with a greater percentage being fit for purpose. Minimise the council s risk impact: The council does not expose itself to any substantial risk, including financial. Engage with relevant Māori stakeholders: For any partnership proposal, Mana Whenua and urban Māori Authorities should be made aware of opportunities arising and be encouraged to participate to enable recognition of Koroua and Kuia. 1 Through the document, a partnership is referenced. The council does not refer to this in terms of a legal partnership structure. 297

304 Part 3: Our policies and other information 3.7 Housing for Older People Partnering Policy Further Auckland Council s strategic goals: The partnership structure and decision-making for both management and development of the portfolio should be aligned with the housing strategies contained in the Auckland Plan and the Housing Action Plan. Seek opportunities in the longer term to assist with the growth of the social/affordable housing stock. Auckland Council will retain ownership of the land and buildings: The council will retain legal title in the land and buildings, with the exception of properties that are sold. The new CHP may be granted a lease over the land and buildings. Because the proposed lease to the CHP is long-term, due to accounting treatment, the value of the buildings and improvements may transfer to CHP. Access to IRRS and other non-ratepayer funding: The structure with the preferred partner and the new CHP will be tailored to be able to receive the income-related rent subsidy (IRRS) and possibly other external funding available for social housing. Monitoring and control: The council will have monitoring and controls in place to ensure the partnership and new CHP act in terms of the overarching objectives and decision-making criteria for the HfOP portfolio. 2. Management of the Portfolio In managing and operating the portfolio, the partnership will ensure: Operating surplus will be re-invested: This could support increasing the quality of units, improving the service provided to tenants, as well as improving social housing outcomes. Rates impact to the council will be limited: The council s contribution to the ongoing management of the portfolio will be limited to the renewals, and the gross operating surplus as budgeted in the LTP Tenant satisfaction to improve against current levels: The CHP s expertise, organisational focus and skills will improve tenant satisfaction from current levels. 3. Development of the portfolio The development arrangements for the HfOP portfolio will ensure: Portfolio developments will improve tenant satisfaction: When assessing any development opportunity, the ability to meet tenant needs will be the primary concern. The number of HfOP units will be maintained at least at 1,412: The council is committed to maintain at least 1,412 units 2 within the HfOP portfolio. Any future decisions to expand the availability of social housing in accordance with the Housing Action Plan would be subject to future Auckland Council approval on additional funding and any consultation requirements. Selling properties: The council has decided to amend its LTP to provide for selling existing properties within the HfOP portfolio to fund the purchase or development of new, more suitable units. Any development surplus will be reinvested in the portfolio: Any surplus made from development activities (including sales) will be reinvested into the portfolio. The council s debt exposure will be limited: The maximum exposure to debt in respect to all developments and purchases will be limited to $20 million through the development loan facility. The council s long-term debt impact will be neutral: On the completion of the development of this portfolio, the impact on council s debt will be neutral, including any interest associated from temporary debt. Adoption and amendment of this policy The council must use the special consultative procedure set out in the Local Government Act 2002 to adopt this policy or make any significant amendments. 2 There may be periods where this figure temporarily falls due to development of new units. 298

305 Part 4: Our Council-controlled organisations PAE TUAWHA NGĀ RŌPŪ E HERE ANA KI TE KAUNIHERA Part 4: Our Council-controlled organisations Auckland Council has substantive council-controlled organisations (CCOs) and other CCOs that are smaller in size and budgets. These organisations play a vital role in providing services to the people of Auckland. This section provides: 4.1 an overview of Auckland Council s CCOs 4.2 Substantive CCO financial information 4.3 Other CCOs 4.4 CCO Accountability policy 299

306 Part 4: Our council-controlled organisations 4.2 Substantive CCO financial information TIROHANGA WHĀNUI 4.1 Overview of Auckland Council s CCOs A council-controlled organisation (CCO) is a company or organisation in which the council controls 50 per cent or more of the votes or the right to appoint 50 per cent or more of the directors or trustees. The primary role of Auckland Council is to develop policies, strategies, plans and regulations that drive the city forward and help to achieve our goal of transforming Auckland into the world s most liveable city. Councilcontrolled organisations (CCOs) are a way to manage council assets and services efficiently, using commercial disciplines and specialist expertise, while allowing the council to focus on its core role. CCOs are accountable to the council, which agrees the objectives and targets for each CCO and also monitors their performance via the CCO Governance and Monitoring Committee. The council, in turn, is accountable to ratepayers and residents for the performance of the CCOs. To find out more about each of the CCOs, refer to their Statements of Intent, which can found on the council s website. Go to Home>About council> Your mayor and representatives>boards of council-controlled organisations. The substantive CCOs A substantive CCO 1 is either responsible for the delivery of a significant service or activity on behalf of the council or owns or manages assets with a value of more than $10 million. The council s substantive CCOs are: Auckland Council Investments Limited (ACIL) manages investments in Ports of Auckland Limited (POAL), Auckland Film Studios Limited (AFSL) and a large shareholding in Auckland International Airport Limited (AIAL). ACIL s role is to support the council s vision of a robust, growing economy by bringing a strong commercial focus to the ownership and management of the council s investments, securing a good economic return for the benefit of ratepayers. ACIL s subsidiaries are: Ports of Auckland Limited, Airport Shares (Auckland) Limited, Airport Shares (Manukau) Limited and Auckland Film Studios Limited. Subsidiaries of Ports of Auckland Limited are: Bunker Shipz Limited, West Tugz Pty Limited and Seafuels Limited. Auckland Council Property Limited (ACPL) 2 - manages the non-service properties (properties that are not immediately required for service delivery or infrastructure purposes), as well as commercial properties (operated to generate revenue for the council) on behalf of Auckland Transport and the council. ACPL also works with stakeholders in the housing and development sectors to develop affordable housing projects, and develop or initiate urban centre upgrades. Auckland Tourism, Events and Economic Development Limited (ATEED) - promotes economic performance and growth in the region, including managing tourism and major events that are exciting, successful and which attract visitors and revenue. In doing so, it helps towards the goal of transforming Auckland into the world s most liveable city. World Masters Games 2017 Limited is a subsidiary of ATEED. Auckland Transport (AT) - responsible for managing the region s transport system. It provides all of Auckland s transport requirements (except state highways and Auckland motorways) ranging from roads and footpaths to traffic signals, and managing bus and train services and street parking. 1 The meaning of CCO includes subsidiaries of CCOs, with the exception of Ports of Auckland Limited. For the purpose of this document any reference to a substantive CCO means the substantive CCO and its subsidiaries. 2 At the 8 May Governing Body, it was agreed that a new CCO would be created Development Auckland. The new CCO will deliver the activities of Auckland Council Properties Limited and Waterfront Auckland from 1 September The legal entity of Auckland Waterfront Development Agency Limited ( Waterfront Auckland ) changed to Development Auckland Limited from 1 September 2015 and ACPL will cease to exist. 300

307 Part 4: Our council-controlled organisations 4.2 Substantive CCO financial information Auckland Waterfront Development Agency Limited (Waterfront Auckland) 3 - works in partnership with the private sector and other stakeholders, including other CCOs to achieve the vision and goals for Auckland s central city waterfront as outlined in the Waterfront Plan. It owns and manages a large portion of the Auckland waterfront, from Harbour Bridge Park to Teal Park (excluding Ports of Auckland). Its area of influence also extends inland to Fanshawe and Customs Streets, Beach Road and The Strand. Waterfront Auckland s subsidiaries are: Westhaven Marina Limited, Westhaven (Existing Marina) Trust, Downtown Marinas Limited, Westhaven (Marina Extension) Trust, Westhaven Trust. Development Auckland (DA) 3 partnering with the development sector, iwi and central government to facilitate redevelopment of selected areas across Auckland to promote quality built environments and residential and commercial growth. DA will actively review the council group property portfolio for sites that are surplus to service requirements, require renewal or are underutilised and make land available for redevelopment. DA will continue to redevelop the city waterfront area and manage non-service properties on behalf of the Auckland Council Group. Regional Facilities Auckland (RFA) - supports the council s vision for Auckland as a vibrant and dynamic international destination city by providing a regional approach to running and developing Auckland s arts, culture and heritage, sport and leisure sector. RFA manages more than $1 billion worth of major regional facilities and landmark venues across the city, including: ANZ Viaduct Events Centre, Aotea Centre, Auckland Art Gallery Toi o Tāmaki, Auckland Town Hall, Auckland Zoo, Bruce Mason Centre, The Civic, Mt Smart Stadium, QBE Stadium and Western Springs Stadium. North Shore Events Centre Trust Board is a subsidiary of RFA. Events Centre Enterprises Limited is a subsidiary of North Shore Events Centre Trust Board. Watercare Services Limited (Watercare) - provides high quality drinking water supply and wastewater treatment and disposal for the Auckland region. Watercare s subsidiaries are: Watercare Harbour Clean-up Trust and Auckland City Water Limited. Contribution to council strategies and activities As this plan is prepared on a group basis, each of the substantive CCOs financial and performance information is embedded with the council parent information in the activity and financial statements contained in this plan. The groups of activities that each CCO contributes to are listed below. CCO AT Group of activities Public transport and travel demand management Roads and footpaths Parking and enforcement ACIL ATEED DA ACPL Investment Economic and cultural development Property development Waterfront development Waterfront Auckland RFA Watercare Regional facilities Water supply Wastewater treatment and disposal 3 At the 8 May Governing Body, it was agreed that a new CCO would be created Development Auckland. The new CCO will deliver the activities of Auckland Council Properties Limited and Waterfront Auckland from 1 September The legal entity of Auckland Waterfront Development Agency Limited ( Waterfront Auckland ) changed to Development Auckland Limited from 1 September 2015 and ACPL will cease to exist. 301

308 Part 4: Our council-controlled organisations 4.2 Substantive CCO financial information NGĀ RŌPŪ HERENGA MATUA KI TE KAUNIHERA 4.2 Substantive CCO financial information The substantive CCOs will deliver $14 billion of capital investment across the 10 years of the LTP, and $24 billion of operational expenditure. The following tables 4 summarise the gross operating and capital expenditure for each CCO together with the funding provided by the Auckland Council parent. Summary of gross operating expenditure CCO ($m) 2015/ / / / / / / / / /25 Total Auckland Transport 973 1,110 1,181 1,213 1,229 1,249 1,271 1,357 1,404 1,451 12,438 ACPL 2 2 Waterfront Auckland 8 8 Development Auckland ATEED RFA ,166 ACIL ,245 Watercare ,594 Total CCO 1,924 2,112 2,212 2,279 2,345 2,406 2,479 2,611 2,715 2,811 23,894 Summary of council funding for operating expenditure CCO ($m) 2015/ / / / / / / / / /25 Total Auckland Transport ,903 ACPL 1 1 Waterfront Auckland 2 2 Development Auckland ATEED RFA ACIL (63) (68) (73) (80) (85) (89) (92) (96) (99) (103) (849) Watercare Total CCO ,220 4 At the 8 May Governing Body, it was agreed that a new CCO would be created Development Auckland. The new CCO will deliver the activities of Auckland Council Properties Limited and Waterfront Auckland from 1 September The legal entity of Auckland Waterfront Development Agency Limited ( Waterfront Auckland ) changed to Development Auckland Limited from 1 September 2015 and ACPL will cease to exist. 302

309 Part 4: Our council-controlled organisations 4.2 Substantive CCO financial information Summary of gross capital expenditure CCO ($m) 2015/ / / / / / / / / /25 Total Auckland Transport ,010 1,290 1, ,933 ACPL (1) - Waterfront Auckland Development Auckland ATEED RFA ACIL Watercare ,654 Total CCO 1,248 1,439 1,148 1,063 1,215 1,530 1,871 1,571 1,352 1,296 13,731 Note to table: 1. Capital expenditure managed by ACPL is included in the Auckland Council entity. For more information, refer to Part Property Development. Summary of council funding for capital expenditure CCO ($m) 2015/ / / / / / / / / /25 Total Auckland Transport ,217 ACPL Waterfront Auckland Development Auckland ATEED RFA ACIL Watercare Total CCO ,

310 Part 4: Our council-controlled organisations 4.3 Other CCOs NGĀ RŌPŪ HERENGA RIRIKI KI TE KAUNIHERA 4.3 Other CCOs The council has a further nine CCOs which are smaller in scale and budgets. The following two CCOs are required to meet CCO governance requirements such as half-year and annual reports and Statements of Intent: COMET Auckland - promotes and supports better education and training opportunities, especially for communities of high educational needs across Auckland. Contemporary Art Foundation - promotes the arts through ownership and management of the Te Tuhi Centre for the Arts, a public gallery in Pakuranga which hosts local, national and international art exhibitions. The following seven CCOs are exempt from the above requirements: Arts Regional Trust - ART aims to grow entrepreneurship in the Auckland s arts, culture and creative sectors to generate cultural, creative and economic outcomes that benefit the region through the provision of unique and innovative programmes. Highbrook Park Trust - The Trust manages Highbrook Estate, which includes 40 hectares of parkland open to the public. Manukau Beautification Charitable Trust - The Trust promotes, supports and undertakes programmes, actions and initiatives to beautify Auckland. Māngere Mountain Education Trust - The Trust administers the Māngere Mountain Education Centre (MMEC) which provides educational opportunities for Aucklanders of all ages to learn about Māngere mountain and its people. Mount Albert Grammar School Community Swimming Pool Trust Supports the Mt Albert Aquatic Centre, which is a local community pool. Te Motu a Hiaroa (Puketutu Island) Governance Trust - Watercare established the Te Motu a Hiaroa (Puketutu Island) Governance Trust to oversee and hold a trust fund for the development, management, maintenance and operation of Puketutu Island. The Trust will work with council and iwi to rehabilitate the island to become a regional park, after the deposition of biosolids in an excavated site. Te Puru Community Charitable Trust Manages the community centre at Te Puru Park and supports sports, leisure, community and cultural groups in the Beachlands, Maraetai and Whitford communities. These CCOs contribute to achieving the key performance targets and other measures for the relevant activities included in Part 2 Our activities. 304

311 Part 4: Our council-controlled organisations 4.4 CCO Accountability Policy NGĀ TAKE TAUMAU 4.4 CCO Accountability Policy Introduction When Auckland Council was established, it owned seven substantive council-controlled organisations (CCOs). The amalgamation of Waterfront Auckland and Auckland Council Property Ltd to form Development Auckland will decrease this number to six from 1 September These CCOs perform a vital role in helping the council to achieve its strategic goals for the region and deliver a wide range of services to residents and visitors on behalf of the council and make a significant contribution to community wellbeing. The council has a collaborative and cooperative relationship with its CCOs, and views its CCOs as partners in the delivery of the council s objectives and priorities for Auckland. Section 90(1) of the Local Government (Auckland Council) Act 2009 (the 2009 Act) requires Auckland Council to adopt a policy on the accountability of its substantive council-controlled organisations (CCOs). Section 90(2) requires the accountability policy to: a) Include a statement of the council s expectations in respect of each CCO s contributions to, and alignment with, the council s objectives and priorities; b) Include a statement of the council s expectations in respect of each substantive CCO s contributions to, and alignment with, any relevant objectives of central government; c) Specify any reporting requirements that each substantive CCO must undertake in addition to those required under the Local Government Act (LGA) 2002 or the 2009 Act; d) Specify any planning requirements that each substantive CCO must undertake in addition to those required under the LGA 2002 or the 2009 Act; and e) Identify or define any strategic assets in relation to each substantive CCO and set out any requirements in relation to the organisation s management of those assets, including the process by which the organisation may approve major transactions in relation to them. This policy has been prepared in response to that legislative requirement. Section 91 of the 2009 Act further authorises the council to require a substantive CCO to carry out certain actions. This policy also records the requirements the council has decided on under this section. The council recognises that a successful partnership between the council and its CCOs will require a commitment to collaborative relationships based on a shared vision, rather than solely on adherence to a set of rules. However, the accountability framework provides safeguards, and ensures that a similar level of scrutiny is applied to all council operations involving the use of public funds and the management of public assets regardless of whether directly controlled by the council or via a CCO. Establishing this framework enables the council to achieve the right balance between enabling the CCOs to operate independently, while ensuring that they deliver in line with the expectations of the council. Auckland Council s expectations in respect of CCOs contribution to, and alignment with, council objectives and relevant objectives of central government (section 90 (2)(a) and section 90(2)(b)) The council s vision is for Auckland to be the world s most liveable city. The CCOs have a key role to play in this vision. The council expects CCOs to contribute to achieving the following outcomes from the Auckland Plan: A fair, safe and healthy Auckland A green Auckland An Auckland of prosperity and opportunity A well connected and accessible Auckland 305

312 Part 4: Our council-controlled organisations 4.4 CCO Accountability Policy A beautiful Auckland that is loved by its people A culturally rich and creative Auckland A Maori identity that is Auckland s point of difference in the world. The table below outlines in more detail how the council expects each CCO to contribute to, and align with, the council objectives and priorities. Council-controlled organisation Auckland Council Investments Limited Council s expectations ACIL is to provide a strong commercial and strategic focus to the ownership and governance of the council s major investment assets, and provide an efficient structure for the ownership of those assets. ACIL s role is to maximise the contribution of those assets to the Auckland economy and provide substantial financial returns, which are financially sustainable in the long term, to the council. ACIL is to act consistently with the Auckland Plan and associated Development Strategy, through the sustainable management of its assets and appropriate investment in its assets to assist in the economic, social, cultural and environmental aspirations of Auckland Council. ACIL is to encourage POAL to be a good neighbour, supporting the Auckland Waterfront becoming a key destination and events venue for businesses, residents and visitors, and in particular ACIL shall give guidance to POAL in the management of its boundary issues associated with the broader development aspirations associated with Development Auckland and the Waterfront Development Master Plan ACIL is to contribute to the following priorities from the Auckland Plan: Developing an economy that delivers opportunity and prosperity for all Aucklanders and New Zealand. Planning, delivering and maintaining quality infrastructure to make Auckland liveable and resilient. Promoting Auckland s Māori identity as Auckland s point of difference in the world and lifting Māori social and economic well-being are council priorities. To help achieve this, ACIL is expected to support the council s responsiveness and contribution to Māori well-being and outcomes. Auckland Tourism, Events and Economic Development Limited ATEED is to contribute to the following priorities from the Auckland Plan and the Auckland Council Economic Development Strategy: Developing an Innovation Hub of the Asia-Pacific Region An Internationally Connected and Export Driven City Developing A Business Friendly and Well-Functioning City Investing in People to Grow Skills and Local Workforce Creating A Vibrant, Creative World City. Promoting Auckland s Maori identity as Auckland s point of difference in the world and lifting Maori social and economic well-being are council priorities. ATEED is expected to contribute to these goals through developing new economic opportunities with Maori business interests. ATEED is also expected to support the council s responsiveness and contribution to Māori wellbeing and outcomes. ATEED is to help support and enhance the performance of the Auckland region as a growth engine in the New Zealand economy. ATEED is to recognise Government as a strategic partner and align with policy and funding for economic development, events, and tourism that is targeted at the regional level. 306

313 Part 4: Our council-controlled organisations 4.4 CCO Accountability Policy Council-controlled organisation Auckland Council Property Limited 5 Council s expectations ACPL is to provide an appropriate return on commercial property and activities under ACPL's management and to contribute a commercial perspective to all council planning initiatives. ACPL is to ensure the efficient and strategic use of capital by the Council in respect of property activities in which ACPL is involved. ACPL shall assist Auckland Council in the delivery of the Auckland Plan, the Plan s Development Strategy, and the Council s compact city approach by providing advice on specific key locations and associated implementation mechanisms. ACPL property development activities are to be consistent with the Auckland Plan, and the Plan s Development Strategy. ACPL should have particular regard to the assistance ACPL can provide in developing high quality, well-functioning town centres, growth corridors, and development areas. Promoting Auckland s Māori identity as Auckland s point of difference in the world and lifting Māori social and economic well-being are council priorities. To help achieve this, ACPL is expected to support the council s responsiveness and contribution to Māori well-being and outcomes. Auckland Waterfront Development Agency 5 Waterfront Auckland shall lead the delivery of the revitalisation of the waterfront as a key destination and events venue for businesses, residents and visitors; and to assist Auckland Council in uniting the Waterfront with the City Centre. These actions will assist in the development of Central Auckland as a creative and vibrant world city. In the delivery of the waterfront s revitalisation and the connection of the Waterfront to the City Centre, Waterfront Auckland shall have regard to the Auckland Plan and associated Development Strategy including: The integration of arts, culture, heritage, and lifestyle into the everyday lives of Auckland s residents and visitors. The protection of Auckland s high value coastline, harbours and marine areas. Building resilience to natural hazards. The provision of community infrastructure including public open space and marinas, for present and future generations. Integrating transport planning and investment with land use development with a particular emphasis on pedestrians and passenger transport. Ensuring good design in all development. Waterfront Auckland is to act in a commercial way to achieve development outcomes. Promoting Auckland s Māori identity as Auckland s point of difference in the world and lifting Māori social and economic well-being are council priorities. To help achieve this, Waterfront Auckland is expected to support the council s responsiveness and contribution to Māori wellbeing and outcomes. Development Auckland Limited 5 The purpose of Development Auckland is to contribute to the implementation of the Auckland Plan and encourage economic development by facilitating urban redevelopment that optimises 5 At the 8 May Governing Body, it was agreed that a new CCO would be created Development Auckland. The new CCO will deliver the activities of Auckland Council Properties Limited and Waterfront Auckland from 1 September The legal entity of Auckland Waterfront Development Agency Limited ( Waterfront Auckland ) changed to Development Auckland Limited from 1 September 2015 and ACPL will cease to exist. 307

314 Part 4: Our council-controlled organisations 4.4 CCO Accountability Policy Council-controlled organisation Council s expectations and integrates good public transport outcomes, efficient and sustainable infrastructure and quality public services and amenities. Development Auckland will manage council s non-service 6 property portfolio and provide strategic advice on council s other property portfolios. It will recycle or redevelop sub-optimal or underutilised council assets and aim to achieve an overall balance of commercial and strategic outcomes. Its objectives are to: 1. Facilitate redevelopment of urban locations - Consistent with the urban form and infrastructure objectives of the Auckland Plan, Development Auckland will facilitate private sector, third sector 7, iwi and government investment and collaboration into the sustainable redevelopment of brownfield urban locations. It will co-ordinate the provision of council s infrastructure and other investment in these locations. 2. Accommodate growth - Development Auckland will contribute to accommodating residential and commercial growth through facilitating the quality redevelopment of urban locations with excellent public infrastructure and services. Redevelopment of the overall portfolio 8 should offer a range of residential choices and price points to cater for diverse households. 3. Facilitate vibrant development - Development Auckland will facilitate the creation of adaptable and resilient places that inspire wellbeing, promote health and safety and are fully accessible to disabled people and older adults. It will harness and incorporate the local community's unique identity, attributes and potential to create vibrant communities. 4. Waterfront Development - Consistent with the Waterfront Plan 2012, Development Auckland will continue to lead the development of the Auckland waterfront in a way that balances commercial and public good objectives, including high quality urban design. 5. Optimisation of council s property portfolio - Development Auckland may facilitate quality redevelopment of underutilised council landholdings within current urban boundaries. 6. Contribute to the management of non-service properties - Development Auckland will also manage council s non-service properties in partnership with the council group. Promoting Auckland s Maori identity as Auckland s point of difference in the world and lifting Maori social and economic well-being are council priorities. Development Auckland is expected to contribute to these goals through developing new economic opportunities with Maori business interests. Regional Facilities Auckland (RFA) RFA shall assist Auckland Council in the delivery of the Auckland Plan and its Development Strategy with the equitable provision of cultural, heritage and lifestyle opportunities in the everyday lives of Auckland s residents and visitors. This shall be facilitated through RFA s management of assets and the funding decisions made by RFA to support cultural and social activities. RFA is to take a regional perspective to the provision of social and community infrastructure. RFA is to recognise Government as a strategic partner and align with policy and funding for arts, culture, heritage and cultural institutions that is targeted at the regional level. Promoting Auckland s Maori identity as Auckland s point of difference in the world and lifting Maori social and economic well-being are council priorities. RFA is expected to contribute to 6 Non service properties are defined in the Local Government (Tamaki Makaurau Reorganisation) Council-controlled Organisations Vesting Order 2010 as property that is not infrastructure or used to deliver services (for example, property not used as council offices, a park or reserve, art gallery, library, swimming pool, recreation centre, sporting facility, community hall, community centre, or other community facility, early childhood centre, public toilet, as housing for elderly persons, a wharf or boat ramp, or as a heritage property). 7 The third sector refers to organisations that are not for profit and/or non-government organisations. 8 This allows flexibility to take a tailored approach to different locations and sites. 308

315 Part 4: Our council-controlled organisations 4.4 CCO Accountability Policy Council-controlled organisation Council s expectations these goals through developing new economic opportunities with Maori business interests. Auckland Transport Auckland Transport is to contribute to an efficient, sustainable, energy saving and cost effective land transport system to support Auckland s social, economic, environmental and cultural wellbeing. Auckland Transport is to create better connections and accessibility within Auckland by: Managing Auckland s transport as a single system Integrating transport planning with land use development Prioritising and optimising investment across transport modes Implementing new transport funding mechanisms. Auckland Transport is to deliver infrastructure and services to support a transformational shift towards greater use of passenger transport. Auckland Transport should have regard to: Building resilience to natural hazards. Auckland Plan urban design principles. Realising a quality compact city. Promoting Auckland s Māori identity as Auckland s point of difference in the world and lifting Māori social and economic well-being are council priorities. To help achieve this, Auckland Transport is expected to support the council s responsiveness and contribution to Māori wellbeing and outcomes. Watercare services limited Watercare is to deliver outstanding and affordable water services for the people of Auckland, now and in the future. Watercare is to manage water resources and waste water systems to contribute to: Building resilience to natural hazards. Realising a compact city. Water, wastewater and stormwater optimise, integrate and align use with water service provision and planning. Treasuring our coastline, harbours, islands and marine areas Sustainably managing natural resources Supporting rural settlements, living and communities Improving the education, health and safety of Aucklanders Growing a business friendly and well-functioning city Enabling tangata whenua to participate in the co-management of natural resources Creating a sustainable balance between environmental action, rural production and activities linked to the rural environment Tackling climate change and increasing energy resilience. Promoting Auckland s Māori identity as Auckland s point of difference in the world and lifting Māori social and economic well-being are council priorities. To help achieve this, Watercare is expected to support the council s responsiveness and contribution to Māori well-being and outcomes. 309

316 Part 4: Our council-controlled organisations 4.4 CCO Accountability Policy In accordance with section 91(1)(a) of the 2009 Act, each CCO must also include in its SOI a narrative of how it will contribute to the Government and the council objectives and priorities specified in this accountability policy. CCOs must act consistently with and contribute to policies, plans and strategies of the council. The council may notify a CCO in writing at any time 9 of the relevant aspects of any council plan or strategy (including a local board plan) not specified in this accountability policy. Under section 92(2), the CCO must act consistently with any such plan or strategy. Reporting requirements (section 90(2) c)) The LGA requires CCOs to provide half-yearly and annual reports on their operations to the council. The halfyearly report must be delivered within two months after the end of the period. The Annual Report must be delivered to the council no later than three months after the end of the financial year, and must be publicly available on the CCO s website, with a hard copy available to any member of the public upon request. In addition to these legislative requirements, the council requires all CCOs to report their performance quarterly to the council. Unaudited quarterly reports will be required by the date outlined by council. Each CCO s SOI sets out requirements for the contents of quarterly reports. All CCOs must report their performance against their SOI. The Annual Report must also compare the CCO s performance with its SOI, and provide an explanation if SOI performance requirements have not been met. The chair and chief executive of each CCO are expected to appear before the relevant council committee when it meets to consider the CCOs performance reporting. Each CCO board is required to appear before the relevant committee when the committee considers its annual report and/or fourth quarter report, as advised to each CCO by the council annually. Planning requirements (section 90(2)(d)) All CCOs are required to provide asset management plans, activity plans and supporting financial information as inputs to the council s LTP and Annual Plan in accordance with the timeframes and other requirements specified by the council. CCOs are required to: Follow the council s asset management framework, or obtain council approval for an alternative framework. Use accounting standards that are consistent with the council s standards. Follow any other requirements specified by the council and notified to CCOs. Develop a Maori Responsiveness Plan. Strategic Assets (section 90(2)(e)) Under section 90(2)(e) of the 2009 Act, the council s accountability policy must identify or define strategic assets in relation to each CCO and set out any requirements in relation to the organisation s management of those assets, including the process by which the organisation may approve major transactions in relation to them. Definition and identification of strategic assets Strategic assets are defined in section 5 of the LGA as being assets that a local authority needs to retain if the local authority is to maintain its capacity to achieve or promote any outcome that it determines to be important to the current or future well-being of the community. This includes: a. any asset or group of assets listed in the local authority s Significance and Engagement Policy; and b. any land or building owned by the local authority and required to maintain the local authority's capacity to provide affordable housing as part of its social policy; and 9 Including, but not limited to as part of the annual letter of shareholder expectations to each CCO. 310

317 Part 4: Our council-controlled organisations 4.4 CCO Accountability Policy c. any equity securities held by the local authority in: i. a port company; ii. an airport company. The strategic assets owned and/or managed by the council s CCOs are: Any scheduled heritage buildings or structures and the following assets: Council-controlled organisation Auckland Council Investments Limited Auckland Tourism, Events and Economic Development Limited Auckland Transport Development Auckland / Waterfront Auckland Regional Facilities Auckland Watercare Services Limited Strategic assets owned and managed by the CCO 100% shareholding in Ports of Auckland Limited shares held in Auckland International Airport Limited freehold interests in waterfront land held by Ports of Auckland Limited None Public transport network including Britomart Freehold interests in waterfront land Auckland Art Gallery (including the arts collections owned by Regional Facilities Auckland) Auckland Zoo Aotea Centre Civic Theatre Viaduct Events Centre Mt Smart The council s contractual rights and interest in Auckland City Arena (known as Vector Arena) wastewater network water network Strategic assets owned by the Council and managed by the CCO None None Roading network None None none Requirements in relation to CCO s management of strategic assets CCOs must manage strategic assets (including those owned by the council but under the control of the CCO) in order to maximise their long-term benefit to Auckland. In addition, the management of strategic assets by a CCO must be undertaken in a manner that enables the CCO to meet its SOI objectives. Auckland Council Investments Limited (ACIL) must also comply with and take all reasonable steps to promote the council s Auckland Airport Shareholding Policy. In particular, ACIL must not make any decisions that are inconsistent with that policy. ACIL must obtain the approval of the council prior to making any decisions on matters covered by Section 3.4 (rights and securities issues) or Section 3.5 (takeover offers, mergers and capital restructuring) of that policy. Process for approval of major transactions in relation to strategic assets For the purposes of this accountability policy, a major transaction is: any acquisition, disposal or replacement of a strategic asset; any transaction or dealing in relation to a strategic asset: o o affecting the asset s control (whether directly or indirectly); reducing or materially affecting the asset s value; 311

318 Part 4: Our council-controlled organisations 4.4 CCO Accountability Policy o o granting any legal interest in the asset to a third party; affecting the CCO s or council s ownership of the asset; or any long-term contracts for the development or operation of a strategic asset (being a contract binding the CCO to a term exceeding fifteen (15) years, including any renewals at the contractor s option); any other transaction, dealing or decision affecting council s long-term interest in the strategic asset and associated service delivery to Aucklanders. In relation to network infrastructure, the foregoing relate to any part of a network which part is integral to the functioning of the network as a whole. A lease granted by a CCO on or for land that is a strategic asset is not a major transaction if the lease: (a) is granted in the ordinary course of the CCO s business on arms-length terms; and (b) does not exceed fifteen (15) years in duration (including any renewals at the lessee s option); and (c) does not exceed $500,000 in rent per annum. Examples of major transactions include, but are not limited to: A transaction that would result in ACIL s shareholding in Auckland International Airport Limited being either reduced or increased; The sale of any part of Britomart or the transport operations undertaken therein; and The sale of infrastructure critical to the Watercare network such as the sale of the Army Bay wastewater plant. CCOs may not undertake a major transaction in relation to strategic assets unless approved by the council or already provided for the in the LTP. Certain transactions will require that they are provided for in the LTP. In circumstances where a CCO is considering engaging with the council in regard to a major transaction, the CCO should contact the council s CCO Governance and Monitoring Unit in the first instance. 312

319 Part 5: Appendices Glossary of terms PAE TUARIMA: PURONGO TĀPIRI Part 5: Appendices HE PAPAKUPU Glossary of terms Term Accelerated Transport Programme ACIL Activity ACPL AIAL Amenity AMETI Amortisation Annual Plan Annual Report APTN Definition An Accelerated Transport Programme will be implemented over the next 10 years to help address urgent transport investment needs, particularly public transport. An additional $523 million will be invested in the first three years, partially funded by an Interim Transport Levy. Auckland Council Investments Limited The goods or services the council provides Auckland Council Property Limited combined with Waterfront Auckland to form a new CCO called Development Auckland to work as a single outward facing entity in the development of the region. Auckland International Airport Limited The liveability or quality of a place that makes it pleasant, attractive and agreeable for individuals and the community Auckland Manukau Eastern Transport Initiative The systematic allocation of the value of an intangible asset over its useful life The plan that sets out what the council will be working to achieve in a financial year, how it will spend its money, the level of service to be provided, and the level of rates and other revenue required to fund that spending The document that tracks the council s yearly performance and reports against the relevant annual plan Auckland Plan Transport Network Asset An item of value, usually of a physical nature, that has a useful life of more than 12 months and has future economic benefits over a period of time. Infrastructural assets provide the basic facilities, services and installations needed for a community or society to function, such as stormwater drainage pipes. Non-infrastructural assets are the organisation s other assets that provide either administrative or operational functions, such as computer software AT ATEED Auckland Council or the council BID Biodiversity Broadband Centres Auckland Transport Auckland Tourism, Events and Economic Development Limited The local government of Auckland established on 1 November The council is made up of the governing body, 21 local boards, and the council organisation (operational staff) Business improvement district The variety of life in a particular habitat or ecosystem, including the totality of genes, species, and ecosystems Data transmission technology that provides for high speed internet services Localities identified as urban centres which include the city centre and fringe, metropolitan centres, town centres and local centres. Centres are typically higher density, compact mixed-use environments with high quality public transport links and provide a wide range of community, recreational, social and other activities 313

320 Part 5: Appendices Glossary of terms Term CRL COMET Commercial activities Corridors Council-controlled organisation (CCO) Depreciation Development Auckland (DA) Development contributions Geographic spatial priorities areas Governing body Grants and subsidies Gross Domestic product (GDP) Gross operating expenditure Groups of activities Greenhouse gas (GHG) Hapū Hauā Household HPO Infrastructure Intensification Interim transport levy Definition City Rail Link. COMET Auckland Retail, information and communication, finance and insurance, and other service sectors. These sectors typically can afford relatively higher land prices/rents, and locate well in town centres Strategic and arterial road, bus and rail alignments, and land located adjacent to these corridors, which generally link Auckland s centres. They include but are not limited to urban growth corridors A company or other entity under the control of local authorities through their shareholding of 50 per cent or more, voting rights of 50 per cent or more, or right to appoint 50 per cent or more of the directors. Some organisations may meet this definition but are exempted as council-controlled organisations The charge representing consumption or use of an asset, assessed by spreading the asset s value over its estimated economic life. Depreciation includes amortisation of intangible assets unless otherwise stated A new CCO combining Waterfront Auckland and ACPL to work as a single outward facing entity in the development of the region. Contributions from developers, collected to help fund new infrastructure required by growth, as set out in the Local Government Act This can be a financial contribution or provision of services or an asset of the same value. Priority areas in the region that will be the focus for development and critical projects. The governing body is made up of the mayor and 20 councillors. It shares its responsibility for decision-making with the local boards. The governing body focuses on the big picture and on Auckland-wide strategic decisions. Because each ward may vary in population, some wards have more than one councillor Revenue received from an external agency to help fund an activity or service that the council provides The market value of all goods and services produced in a country or region in a given period Total without deductions of depreciation and finance costs Goods or services provided by, or on behalf of, a local authority or a councilcontrolled organisation, including facilities and amenities, the making of grant, and the performance of regulatory and other governmental functions GHGs are made up of a variety of gases (including carbon dioxide, methane, nitrous oxide, water vapour, ozone, and fluorinated gases) which trap infrared heat in the upper atmosphere and contribute to global warming Kinship group, clan, tribe, sub tribe - section of a large kinship group People with disabilities One or more people usually resident in the same dwelling, who share living facilities. A household can contain one or more families, or no families at all. A household that does not contain a family nucleus could contain unrelated people, related people, or could simply be a person living alone Housing Project Office The fixed, long-lived structures that facilitate the production of goods and services and underpin many aspects of quality of life. Infrastructure refers to physical networks, principally transport, water, energy, and communications Redevelopment, conversion and retrofitting where land is developed with a greater coverage or intensity of building, or accommodates a greater residential population or workforce than previously. Interim levy for the first three years of the Long-term Plan (10-year budget) which contributes towards the additional capital expenditure for the acceleration of the transport capital programme. 314

321 Part 5: Appendices Glossary of terms Term Iwi Kaitiaki Kaitiakitanga Local boards Local Board Agreement Local Board Plan Local Government Act 2002 (LGA 2002) Local Government (Rating) Act 2002 (LGRA) Long-term Plan or the LTP Mana whenua Mataawaka Mātauranga Māori Maunga Maunga Authority Mauri Natural areas Natural character Natural heritage New Zealand Transport Agency (NZTA) Pā Papakāinga Papakāinga housing Definition Groups of whānau or hapū related through a common ancestor Guardians of the environment Guardianship including stewardship; processes and practices for looking after the environment, guardianship that is rooted in tradition There are 21 local boards which share responsibility for decision-making with the governing body. They represent their local communities and make decisions on local issues, activities and facilities An annual agreement between the governing body and each local board, outlining its priorities and preferences in its local board plan for the year A plan that reflects the priorities and preferences of the communities within the local board area in respect of the level and nature of local activities to be provided by the council over the next three years Legislation that defines the powers and responsibilities of territorial local authorities such as Auckland Council Defines how territorial local authorities such as Auckland Council can assess and apply their rating policy This document sets out the council s vision, activities, projects, policies, and budgets for a 10-year period. Also commonly referred to as the LTP, the 10-year budget Iwi, the people of the land who have mana or customary authority. Their historical, cultural and genealogical heritage are attached to the land and sea Māori who live in Auckland but do not whakapapa to mana whenua. Māori wisdom. In a traditional context, this means the knowledge, comprehension or understanding of everything visible or invisible that exists across the universe Mountain, mount, peak; Auckland s volcanic cones The Tūpuna Maunga o Tāmaki Makaurau Authority (Maunga Authority) is the statutory authority established under the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act to co-govern the Tūpuna Maunga. The Maunga Authority is comprised of equal representatives from Ngā Mana Whenua otāmaki Makaurau and Auckland Council, together with Crown (non-voting) representation. Mauri is the pure state of an object or substance. Sometimes referred to as the 'life force, mauri is contingent upon all things being in balance or in harmony Places characterised by indigenous species or ecosystems, or a place or landform not, or scarcely, modified from an indigenous condition Those qualities and values of the coastal environment, wetlands, lakes, rivers and their margins that derive from the presence of natural elements, natural patterns and natural processes. These qualities include the presence of indigenous and exotic vegetation, including pasture, terrestrial, aquatic and marine habitats, landforms, landscapes, and seascapes, the function of natural processes and the maintenance of water and air quality. The lower the degree of human modification, the higher the level of natural character Includes indigenous flora and fauna, terrestrial, marine and freshwater ecosystems and habitats, landscapes, landforms, geological features, soils and the natural character of the coastline Plans and delivers sustainable transport networks across New Zealand, In Auckland and has responsibility for maintaining the state highway network roads Fortified Māori settlements, villages and towns A location including meeting facilities, homes, vegetable gardens, a cemetery and other things required to sustain a whānau, hapū or iwi. Known previously as unfortified Māori settlements, villages and towns Housing development within a papakāinga framework 315

322 Part 5: Appendices Glossary of terms Term Penlink Performance measures POAL Quality Transit Network (QTN) Rapid Transit Network (RTN) Rangatahi Rangatira Rangatiratanga Rates RFA RMA Rūnanga Special Housing Areas (SHAs) Takatāpui Taonga Tāmaki Makaurau Tangata Whenua Targeted rates Te Tiriti o Waitangi / The Treaty of Waitangi Tikanga Transformational shifts Travel demand management Definition Penlink is a proposed alternative route between the Whangaparaoa Peninsula and State Highway 1 (SH1) at Redvale. A method for gauging progress towards the meeting of objectives. Measures usually relate to agreed levels of performance and types of services provided Ports of Auckland Limited Provides high-frequency, high-quality public transport. The majority of these are bus services operating bus priority measures between key centres and over major corridors. The QTN complements the RTN by connecting at key hub locations Provides fast, high-frequency service in its own right of way, unaffected by traffic congestion. It aims to provide longer-term support for the more intensive growth proposed by the Auckland Plan and to improve the region s transport system Younger generation, youth Chief Chiefly authority. A state of being. It is expressed in who we are, and how we do things; ability to make decisions for the benefit of their people and the community in general; confers not only status but also responsibility to ensure that the natural world and its resources are maintained into the future; recognises iwi and hapū right to manage resources or kaitiakitanga over the ancestral lands and waters. The Māori version of article 2 of the Treaty uses the word 'rangātiratanga' in promising to uphold the authority that tribes had always had over their lands and taonga. A charge against the property to help fund services and assets that the council provides Regional Facilities Auckland Resource Management Act Assembly or council in an iwi context The government passed the Housing Accords and Special Housing Areas (HASHA) Act, which came into force on 16 September The Act provides the opportunity for the council to identify, and recommend to the Minister of Housing, Special Housing Areas The HPO is currently identifying Special Housing Areas (SHAs), a tool provided for under the Housing Accords and Special Housing Areas Act SHAs offer a fasttrack consenting process for developments that meet certain criteria and will contribute to our achieving the Accord targets. Close friend (of the same gender - lesbian, gay, homosexual) A treasured item, which may be tangible or intangible The Māori name for Auckland Indigenous peoples of the land A targeted rate is a rate set to fund activities where greater transparency in funding is desired or where the council considers the cost should be met by particular groups of ratepayers, as they will be the prime beneficiaries of the activity. The written principles on which the British and Māori agreed to found a nation state and build a government Customary lore and practice Our vision will not be achieved by incremental change. Transformational change is needed, and this requires a commitment to a better future from all Aucklanders. The Auckland Plan s six transformational shifts are the areas where Auckland needs to make a step change. They are interdependent and interconnected, and taking an integrated, mutually reinforcing and multiplier approach will be critical to achieving them. Initiatives aimed at modifying travel behaviour to maximise the efficient use of transport systems (e.g., tele-working, ride sharing, more flexible work and educational hours, parking constraints, cycling and walking) 316

323 Part 5: Appendices Glossary of terms Term UAGC Unitary plan Waahi tapu Wānanga Waka Waste Watercare Waterfront Auckland Whakapapa WMMP Definition Uniform Annual General Charge a fixed rate set uniformly across all properties regardless of property value or category, applied to every separately used or inhabited part of a rating unit (e.g. a dwelling on a section, a shop in a mall, or a granny flat) The Auckland Unitary Plan is the planning rulebook that sets out what can be built and where. It is essential for protecting what makes our city special, while unlocking housing and economic growth and strengthening our communities. Sacred ancestral sites and places of significance to iwi, hapū or whānau Māori knowledge, lore and learning of the esoteric kind. A Māori tertiary education institution. Canoe, vehicle, conveyance Any matter, whether liquid, gas or solid, which is discharged, unwanted or discarded by the current generator or owner as having little or no economic value, and which may include materials that can be reused, recycled or recovered Watercare Services Limited Auckland Waterfront Development Agency Limited combined with ACPL to form a new CCO called Development Auckland to work as a single outward facing entity in the development of the region. The pedigree of a person, whānau, hapū or iwi which begins at an ancestor and works down to the individual; the genealogies and stories that accompany a family history Waste Management and Minimisation Plan, the first Auckland-wide plan, aiming at an aspirational goal of Zero Waste, helping people to minimise their waste and create economic opportunities in doing so. 317

324 Part 5: Appendices Key word index NGĀ KUPU MATUA Key word index Page No. Accelerated transport programme.. 4, 41, 80, 105, 111, 193, 237, 311 Page No. Growth....2, 8, 20, 33, 72, 97, 130, 134, 158, 194, 209, 222, 274, 298, 304 Affordability... 4, 28, 98, 117, 143, 193, 220, 274 Infrastructure Strategy. 20, 40, 98, 118, 220 Alternative funding.4, 97, 105 Interim transport levy.4, 40, 97, 111, 193 Assets....5, 21, 30, 55, 82, 102, 113, 143, 161, 220, 282, 290, 303 Local board agreements , 281, 285 Auckland Plan...2, 8, 11, 26, 111, 185, 220, 285, 287, 303 Motorway user charge....36, 98, 102 Auckland Plan Transport Network... 44, 111 Operating expenditure.5, 9, 35, 97, 108, 222, 239, 300 Business Improvement Districts (BIDs)...222, 226, 239 Parks. 6, 20, 35, 95, 117, 171, 185, 190, 229, 279, 286 Borrowing..102, 112, 209, 220, 222, 275 Property Revaluation Business differential Unitary Plan....4, 27, 32, 71, 88, 117 Capital expenditure....38, 65, 103, 117, 171, 198, 220, 278, 300 Council-controlled organisation (CCO)...4, 24, 125, 140, 209, 285, 297, 303 Investment...2, 11, 33, 82, 90, 112, 134, 161, 191, 204, 239, 295, 306 Public transport....4, 12, 20, 49, 71, 111, 193, 195 Central interceptor... 6, 12, 49, 51, 209, 217 Rates.31, 79, 97, 105, 112, 198, 220, 224, 233, 274 City centre targeted rate 225, 233, 239, 248 Rates transition City Rail Link (CRL).. 4, 12, 34, 42, 106, 126, 194, 200 Renewals...31, 70, 90, 142, 156, 171, 205, 310 Community infrastructure..6, 31, 38, 68, 164, 223, 305 Revaluation....98, 233, 277 Consultation Process Social housing , 174, 289 Contributing to Māori well-being...2, 5, 8, 200 Solid waste services.148 Contributions policy..223 Spatial priorities....2, 11, 38, 62, 79, 120, 171 Debt...6, 31, 97, 102, 111, 220, 222, 275 Special Housing Areas (SHAs).4, 12, 28, 38, 51, 79, 118, 147, 156 Demand management..32, 35, 72, 195, 200, 230 Targeted rate...6, 31, 97, 222, 224, 233, 243, 275, 285 Development Auckland.. 4, 125, 129, 134, 288, 303, 305 Uniform Annual General Charge (UAGC) 224, 233 Efficiency savings..83, 101, 161 Urban development....26, 30, 50, 63, 72, 129 Environment.. 2, 4, 20, 24, 62, 118, 131, 143, 187, 213, 239, 287, 307 Fees and charges...32, 112, 222, 225, 279, 290 Volcanic cones , 289 Waste Management and Minimisation Plan (WMMP).6, 143, 148, 151, 227, 237 Financial strategy , 117, 222, 274 Wastewater...12, 49, 83, 112, 188, 209, 217, 244, 299 Fuel taxes 36 Funding. 2, 20, 35, 71, 93, 112, 131, 140, 161, 183, 194, 220, 236, 250,

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326 Auckland Council disclaims any liability whatsoever in connection with any action taken in reliance of this document for any error, deficiency, flaw or omission contained in it. This publication is printed using vegetable based inks on paper from responsible forestry, manufactured under the strict ISO Environmental Management System. ISBN (Print) ISBN (Online)