10-Year Budget 2018-2028 (Long-term Plan) Other budget and policy issues 18 October 2017
Agenda for today’s workshop 1. Introduction 2. Strategic and financial context 3. Draft Tupuna Maunga Authority Operational Plan 4. Natural Environment 5. Coastal assets 6. ACIL review 7. CCO Accountability Policy 8. Core cost reduction 9. Budget Book 10. Sum up
Process reminder 7 September 26 September Today 26 October 2 November 30 November Revaluations Local board Mayor’s Infrastructure Infrastructure Other budget Mayor’s & rating projects & intent funding investment items proposal policy funding • Environmental • Local community programmes Links to other & culture • Funding scenarios programmes • Other items workstreams • Funding levers requiring • Local Board One consultation Initiatives 11 December 7 February 28 Feb – 28 Mar May 17-18 May 31 May 27 June Consideration Agree Adopt of Decision on Submission Local Board Adoption of consultation consultation submissions final LTP process advocacy LTP items document and budget content items
Purpose for today’s workshop • Items required for consultation under legislation • Understand and discuss key environmental budget and policy issues
Context | What are we planning for Plan for Auckland Council Plan for Auckland Long-Term Plan Auckland Plan 10 years 30 years Reviewed every 3 years it is the 10-year Reviewed every 6 years it is the 30-year growth budget of Council. Identifies Council’s strategy for Auckland. A plan for Auckland, not just investments to achieve Auckland Plan Council. outcomes. Key challenges over next 30 years The immediate issues we will focus on The pathway to achieve the outcomes we want in 30 years Outcomes we want in 2050 High population growth • Belonging and Auckland is growing fast. We need a plan participation for where and how people live and how they access jobs , facilities and services. Funding • Māori identity and Housing & Accelerate for growth urban renewal wellbeing transport • Environment and cultural heritage • Homes and places Sharing prosperity amongst all Auckland’s success is dependent on how • Access and connectivity everyone fairly shares in Auckland’s prosperity. • Opportunity and Investment Inclusive city prosperity Development across the region Strategy Timing and sequencing of how Greater environmental pressure Auckland will grow The natural environment is one of the and change over time most valued part of Auckland’s identity. The way we grow must protect, sustain Protect environment Water Quality in our and enhance our environment. and respond to climate harbours and change streams
Financial framework Debt to • XXX Infrastructure Funding revenue Operational Revenue <265% Funding • Cash operating surplus • Rates tools • Capital revenue • Fees & charges • Asset disposal • NZTA operating subsidies Cash • Debt • Dividends surplus • Partnerships Capex Cost Funding recovery Capital Costs Consequential Operational Costs • Renewals opex • Direct costs • Growth Costs of providing • Interest • Service improvement services & assets • Depreciation (non-cash)
Financial context Capital costs • Indicative infrastructure demand of $30b over next 10 years significantly higher than current capacity of $20b • Hard decisions will be need on both funding and prioritisation Operational costs • Significant savings targets already built into operating budgets • Key levers to accommodate new service initiatives include: Higher general rates increase o Increasing existing fees and charges o Introducing a new revenue source (e.g. targeted rate) o Reprioritisation of currently planned services & initiatives o
Tūpuna Maunga Operational Plan FY 18-19 / Long Term Plan 18 October 2017
Draft Operational Plan 2018/19 • Plan agreed by Tūpuna Maunga Authority and Council • Council undertakes routine management under direction of TMA • Management ready to implement plan
Objectives • Deliver improved open spaces (across 8 local board areas) • Heal Tūpuna Maunga for all • Support future UNESCO World Heritage bid
Draft 10 Year Budget (LTP) 2018-28 g g q T ūpuna Maunga Authority Existing Existing Existing Existing Existing Existing Existing New LTP Year New LTP Year New LTP Year 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Funding Envelope $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's Net Operating expenditure: Proposed Net Operating expenditure 2018-2028 3,318 3,284 3,293 3,639 3,642 3,742 3,967 3,967 3,967 3,967 Current Net Operating expenditure budget 3,053 3,003 3,196 3,005 3,055 3,107 3,159 Additional Net Operating expenditure funding requirement 266 281 97 635 587 636 808 Capital expenditure: Proposed Capital expenditure 2018-2028 5,093 7,008 7,110 6,925 8,875 9,086 9,395 9,820 12,780 12,800 Current Capital expenditure budget 3,681 3,716 3,824 3,938 8,796 9,086 9,395 Additional Capital expenditure funding requirement 1,412 3,292 3,286 2,987 79 0 0 Total Funding: *Proposed Total LTP Funding 2018-2028 8,411 10,292 10,403 10,564 12,517 12,828 13,362 13,787 16,747 16,767 Current Total LTP Funding 2018-2028 6,733 6,719 7,019 6,943 11,851 12,193 12,554 Total Additional funding requirement for LTP 2018-2028 1,678 3,573 3,383 3,621 666 636 808 Notes: * Figures in 2017/18 year values - no inflation adjustments * Net operating expenditure excludes depreciation
Additional funding request Additional operational funding Years 1-3: ● rabbit eradication Years 4 on: ● maintaining infrastructure ● management of Maungauika / North Head ● On-site management Additional capital funding Years 1- 4: ● protection and restoration of the tihi (summits) by: • removing redundant infrastructure • reinstating open space areas • developing significant track and viewing platforms, and • implementing a tree management programme. Years 4 on: ● develop visitor infrastructure (including information centres).
Natural Environment Sophie Heighway / Barry Potter
Towards a world-class city Key challenges Long-term Plan Auckland Plan next 30 years 10 years 30 years Identifies council’s investments A plan for Auckland, not just council to achieve Auckland Plan outcomes The immediate issues we will The pathway to achieve the focus on outcomes we want in 30 years High population growth Accelerate Housing and Funding for Outcomes we want by 2050 transport urban renewal growth • Belonging and participation M ā ori identity and wellbeing • • Environment and cultural heritage • Homes and places • Access and connectivity • Opportunity and prosperity Sharing prosperity amongst all Inclusive city Investment across the region Greater environmental pressure Water quality Protect environment and respond to climate change
Aucklanders value the natural environment
Ecosystem Services ECONOMY SOCIETY & CULTURE ENVIRONMENT
Current state: Environmental decline and extinctions Auckland is one of the weediest cities in the world (10,000 exotics vs 2,000 native plants) 26 million native birds are killed each year in New Zealand by predators Kauri will disappear within the next 30 years Declining water quality Two-thirds of Auckland’s shore and sea birds are at risk of extinction No robust spatial data capture system
Current state – strategy, policy and statutory framework Related strategies and policies Statutory responsibilities • Auckland Plan (original and refresh) • Resource Management Act • Auckland Growing Greener • Biosecurity Act • Auckland Biodiversity Strategy • National Coastal Policy Statement • Regional Pest Management Plan • National Policy for Freshwater • Low Carbon Action Plan Management
Investment Scope In Scope Out of Scope Community action Statutory Council walking Green infrastructure and behaviour change controls the talk Improved Reduced carbon Zero waste Healthy marine Healthy parks and Water Quality emissions ecosystems native ecosystems
Investment Options OPTION A OPTION B OPTION C Environmental decline and Protect and enhance priority areas Slowed decline extinctions and species
Option A Current State: Environmental Decline and Extinctions 250 community groups supported to a low level RESEARCH, MONITORING 25% of region under community led pest control & EVALUATION CONTROL EQUIPMENT High (>80%) risk of kauri dieback spreading 9% 30% high value ecological areas on COMMUNITY regional and community parks protected ENGAGEMENT 10% 28% of rural mainland protected from possums 10 YEARS TOTAL RATES No freshwater pest management in lakes $97m Reactive marine biosecurity measures Most “pest free islands” maintained 20% 60% FIRST 3 YEARS No new pest free islands. MANAGEMENT $25m TOTAL Decline in marine ecological health, risk of shorebird /seabird extinction RESTORATION (INCL CONTRACTOR & STAFF COSTS) Partner Contributions = $4m
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