Decision digest | Finance and Performance Committee
22 October 2015

Decisions on local areas on agenda

Supporting local clubs, regional services and capital funding for local boards headlined today’s Finance and Performance Committee agenda. The following is a digest of decisions made.

The agenda is available on the Auckland Council website and minutes will be added once confirmed. This meeting was also webcast on the council’s website and items will be available on demand within 24 hours of the meeting.

Items 1- 8 were administrative items.

Item 9: Disposal Recommendation Report
Committee approval was given to sell three non-service, council-owned properties which Panuku Development Auckland considers suitable for sale. Alongside this, a council-owned property previously subdivided for disposal can now be offered as a complete site.

The three non-service properties are small units at numbers 56 and 57 - 7 Rowlands Avenue, Mt Wellington and 5 Rayma Place, Mt Wellington which have been through the agreed consultative process including organisation-wide internal officer consultation, local board and iwi engagement. Housing New Zealand has expressed interest in purchasing the site at 7 Rowlands Avenue.

The fourth property is 39 Taka Street, Takanini. This property was previously approved by the Finance and Performance Committee in February 2015 to be subdivided and a 20-metre strip retained for pedestrian and cycling links which is no longer required by Auckland Transport. Due to this, the entire property is now surplus to council requirements.

The committee voted to the disposal of the sites with the added resolution passed that housing for older people options, with Housing New Zealand, for the entire site at 7 Rowlands Avenue be explored.

Item 10: Maraetai Beach Boating Club Inc. - Request for Loan Guarantee
The committee decided the council would assist Maraetai Beach Boating Club to redevelop their clubrooms by guaranteeing a loan of $310,000 from the ASB Bank for a term up to seven years.

This will enable the club to complete stage one of extensions to their existing clubhouse, first built in 1978, including enlarging the lower level observation deck and new upper level observation deck, new exterior fire escape stairs and an internal fire cell to bring the building up to the new code of compliance.

The club house is located on leasehold land owned by Auckland Council, and so the club is unable to offer the land and buildings as security for the loan from ASB Bank.

It was noted that the club has a good track record of repaying previous loans and undertaking similar developments over the 60-year lifetime of the club.

The Maraetai Beach Boating Club currently has about 1400 members, comprising 1000 boating and 400 community members and its membership is expected to grow with future residential developments in Maraetai, Beachlands and Whitford.

Item 11: Māori Transformational Shift and co-governance activity budget update
Information was presented to answer previous Budget Committee resolutions to identify additional Māori transformational shift activities and budget for the 2016/17 year.

The committee noted the 19 projects contributing to Māori transformational shift activities, and six activities contributing to co-governance and co-management and the budget identified across the 2015/16 year and the 2017/18 year.

It also agreed that council, as part of the Annual Plan process, would identify the resources reallocated to the new projects identified in Te Toa Takitini, the top-down approach to Māori responsiveness, which is not currently included in the three year expenditure, and report back to the Finance and Performance Committee. Also, that a detailed report on projects and resources will be presented to the Independent Māori Statutory Board.

Item 12: Te Tiriti o Waitangi Audit response work programme 2015/2016 progress report
Following requests from a previous meeting, the committee were presented with a detailed Treaty Audit response work programme for 2015/16, a progress update on first quarter activities, key priorities for the second quarter, and a closure process for specific actions in the Treaty Audit response work programme 2017/18.

The committee approved the detailed Treaty Audit response work programme for 2015/16 and approved the closure process agreed with theIndependent Māori Statutory Board.

Item 13: Adoption of amendment to Local Boards funding policy to allocate capital fund
The Governing Body previously created an annual $10 million discretionary fund for capital expenditure to enable local boards to fund small, locally important asset-based projects in their areas.

Local Board chairs Kay McIntyre, Shale Chambers, and Andrew Baker presented feedback from the local boards on the proposal, for allocating the fund based on 90 per cent population, five per cent land area and five percent deprivation. The Waiheke and Great Barrier Island local boards are funded by a fixed amount of two and one percent, respectively.

The committee debated at length, including whether land area should be used to determine the funding allocation. An alternative amendment was proposed to allocate on 95 per cent population and five per cent deprivation, which was lost.

The committee decided on the recommended allocation proposal of one per cent for Aotea-Great Barrier Local Board, two per cent for Waiheke Island Local Board and the remainder of the fund based on 90 per cent population, five per cent land area and five per cent deprivation for remaining local boards. They also agreed on the rules for expenditure of the fund.

Item 14: Budget Update
As required, a budget update was provided to collate decisions needed on minor changes to the budgets and the financial reasons for these changes.

In 2010 the former Waitakere City Council decided to sell public parking space at 490 South Titirangi Road, leading to the loss of a public toilet on the site. A replacement toilet was also specified back in 2006 and is supported by the Waitākere Ranges local board.

After delays, the finalisation of the sale is now going ahead, with sale proceeds in the order of $650,000. The committee approved $233,000 of unbudgeted capital expenditure for a replacement public toilet funded by the sale proceeds from the site, with ongoing operational expenditure being managed within existing budget.

Item 15: Finance and Performance Committee Forward Work Programme
A 12- month forward work programme for the Finance and Performance Committee was approved.

This will enable the committee to manage its workflow, deliver on its priorities, and be well informed of the key decisions required over the next twelve months. A draft of the work programme is included in the committee agenda, available online.

Item 16: Funding for Auckland Regional Migrant Services (ARMS)
The committee agreed to allocate $40,000 of funding to the Auckland Regional Migrant Services Trust (ARMS) for the 2015/16 year, and will assist them to identify additional private sector funding.

Following a review of settlement support provisions across New Zealand, the Ministry of Business, Innovation and Employment (MBIE) has notified ARMS that their contract will cease on 31 December 2015 due to a new service model being put in place.

ARMS have approached council for $120,000 to ensure stability through the first six months of 2016. However, this level of funding would be unbudgeted expenditure and there would need to be a re-allocation of budget from another council activity, requiring a trade-off against other outcomes or deliverables.

There is also no capacity in internal budgets to meet this request as all money has been allocated for the current financial year and departments are working to achieve agreed efficiency savings.

Some funding is available through the Regional Community Grants Fund to a maximum of $40,000 which council has agreed to allocate to ARMS for the 2015/16 year. Staff will also work with ARMS to identify private sector funding and ARMS will be advised to follow the 2016/17 Annual Plan process to request a multi-year Funding Agreement with Auckland Council.

It was also agreed to add to the resolution passed at the Regional and Strategy Committee on 8 October 2015, by adding Councillors Denise Krum and Cathy Casey to the engagement with the Minister and/or MBIE, and that the meeting take place as soon as possible.

ENDS

© Scoop Media