Te Tahua Pūtea Tau 2021-2031
Te Tahua Pūtea Whakarauora
The 10-year Budget
2021-2031
Long-term Plan
Our Recovery Budget
Volume
1
Overview
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
MIHI
Mihi
Noho mai rā Tāmaki Makaurau,
Tāmaki Makaurau
moana waipiata,
who bestrides shimmering seas,
maunga kākāriki.
and verdant mountains.
Mai i ngā wai kaukau o ngā tūpuna,
From the bathing waters of our forebears,
ki ngā puke kawe i ngā reo o te tini,
and hills that echo with voices
i puta ai te kī mōu.
that acclaim.
Tū ana he maunga,
Your mountains stand lofty,
takoto ana he raorao,
your valleys spread from them
heke ana he awaawa.
and your streams run freely.
Ko ō wahapū te ataahua,
Your harbours are majestic,
ō tāhuna te mahora,
your beaches widespread,
te taiao e whītiki nei i a koe he taonga tuku iho.
the environment that surrounds you is a legacy.
Tiakina kia meinga tonu ai koe
Take care of it so that you will always be known
ko ‘te tāone taioreore nui o te ao,
as ‘the world-class city
manakohia e te iwi pūmanawa’.
where talent wants to be’.
Tāmaki Mākaurau tirohia te pae tawhiti
Tāmaki Makaurau looking to the future,
he whakairinga tūmanako
repository of our hopes
mō ngā uri whakaheke ō āpōpō,
for generations to come,
te toka herenga mō te hunga ka takahi ake
anchor stone for those who venture
mā ō tomokanga,
through your gateway,
te piriti e whakawhiti ai
and the bridge that connects
tō iwi ki ngā huarahi o te ora.
your citizens to life.
Tāmaki Mākaurau e toro whakamua,
Tāmaki Makaurau moving on,
hīkina te mānuka.
accepting all challenges.
Tērā te rangi me te whenua te tūtaki.
Where even heaven and earth might meet.
Maranga me te rā, he mahi māu me tīmata,
Rise with the sun as there is work to be done
ka nunumi ana ki te pō,
and when evening comes,
whakatārewahia ō moemoeā ki ngā whetū.
allow your dreams to glide among the stars.
Ko te oranga mutunga mōu
Perpetual health and growth
kei tua i te taumata moana.
is beyond the horizon of cresting waves.
Tūwherahia ō ringa, kūmea mai k i tō uma.
Open your arms and pull them to your embrace.
Tāmaki Makaurau
Tāmaki Makaurau, you are a city
he tāone ūmanga kurupounamu koe;
where valued business and enterprise thrives;
tukua tō rongo kia rere i te ao.
let your good name traverse the world.
TE TAHUA PŪTEA TAU 2021-2031
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
HOW THIS 10 -YEAR BUDGET 2021-2031 IS ARRANGED
How this 10-year Budget
About this document
2021-2031 is arranged
This Recovery Budget is our 10-year Budget for 2021-2031, otherwise known as
Finding your way around the volumes:
our Long-term Plan for that period. The Local Government Act 2002 requires
each council to publicly consult on and adopt a long-term plan every three years.
Volume 1: An overview of our 10-year Budget
Volume
Te Tahua Pūtea Tau 2021-2031
It has been prepared under a very different set of circumstances to any previous
Section 1: An introduction to our 10-year Budget including a brief
1
Te Tahua Pūtea Whakarauora
The 10-year Budget
Long-term Plan for Auckland Council. Each time we prepare a 10-year Budget we
overview of the plans, strategies and budget that form the rest of
2021-2031
Long-term Plan
this document.
Our Recovery Budget
face a range of challenges, this year all of the usual challenges still exist
Section 2: Our prospective financial statements for 2021-2031
but have been added to by the uncertainty and revenue loss created by the
and other key financial information.
COVID-19 pandemic.
Section 3: Report from the Auditor General.
Section 4: Supplementary Information including contacting the
That uncertainty means we based our financial projections on a set of key
council, its structure and people. Glossary of terms and key
word index.
Volume
1
Overview
assumptions about the health restrictions and economic impacts associated
with the COVID-19 pandemic. These assumptions were informed by a range
of internal and external sources. We also undertook sensitivity analysis to
Volume 2: Our detailed budgets, strategies and policies
Volume
PART 1: OUR KEY STRATEGIES — 1.1 SUMMARY OF THE AUCKLAND PLAN 2050
understand the impact if the situation became better or worse than we assumed.
Section 1: Our key strategies.
2
Te Tahua Pūtea Tau 2021-2031
Te Tahua Pūtea Whakarauora
The 10-year Budget
Section 2: Our Activities – summary information on the services
2021-2031
Long-term Plan
From 22 February to 22 March 2021 we sought feedback from the community on
Auckland Council delivers, performance measures and budget.
Our Recovery Budget
our key proposals for this budget. It was an extensive consultation process with
Section 3: Our key policies.
both written submissions and in person interactions and nearly 20,000 pieces
Section 4: Summary of the Tūpuna Maunga Authority Operational
Plan 2021-2031.
of feedback were received. We carefully considered that feedback, alongside
Section 5: Our Council-controlled organisations.
information from a Colmar Brunton survey on some of those key issues.
Section 6: Supplementary information – Glossary of terms and Key
Volume Our detailed budgets,
2 strategies and policies
word index.
1 |
TE TAHUA TAUNGAHURU TE MAHERE TAUNGAHURU 2021-2031
1
The result is this 10-year Budget which will tackle the challenges we have
outlined and, despite the difficulties, keep Auckland moving forward.
Volume 3: Local Board information and agreements
Volume
PART 1: LOCAL INFORMATION — LOCAL BOARD OVERVIEW
Te Tahua Pūtea Tau 2021-2031
Section 1: An overview of local boards, and their expenditure
3
Te Tahua Pūtea Whakarauora
The 10-year Budget
for 2021-2031.
2021-2031
Long-term Plan
Our Recovery Budget
Section 2: Specific information for each of the 21 local boards,
including the local board agreements.
Section 3: Supplementary information – Glossary of terms and
Key word index.
Volume Local Board Information
3 and Agreements
1
TE TAHUA PŪTEA TAU 2021-2031
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
CONTENTS
Rārangi kōrero
Contents
Volume 1: Overview
Message from the Mayor ............................................................................................................................................... 1
Message from the Chief Executive .............................................................................................................................. 2
Wāhanga tuatahi: He rārangi ō ta mātou Tahua Pūtea Whakarauora
Section 1: An outline of our Recovery Budget .........................................................................................
4 1.1 A snapshot of our Recovery Budget .................................................................................................................. 5
1.2 Key Issues ................................................................................................................................................................. 7
1.2.1 Key issue 1 – Finding the balance ............................................................................................................... 8
1.2.2 Key issue 2 – Climate Change action ....................................................................................................... 12
1.2.3 Key issue 3 – Focus on supporting growth in a few key areas ............................................................ 13
1.2.4 Key issue 4 – Providing community services differently ..................................................................... 14
1.2.5 Key issue 5 – Natural environment and water quality programmes ................................................. 15
1.2.6 Focusing on better delivery of Māori Outcomes ................................................................................... 16
1.3 Our plan .................................................................................................................................................................. 17
1.3.1 Our strategic lenses ..................................................................................................................................... 17
1.3.2 What we will deliver .................................................................................................................................... 18
1.3.3 How we will manage our finances ........................................................................................................... 25
1.3.4 An uncertain future .................................................................................................................................... 27
1.4 Your Rates ............................................................................................................................................................. 28
Wāhanga tuarua: Ō mātou tahua pūtea
Section 2: Our finances .......................................................................................................................................
31
2.1 Financial overview ................................................................................................................................................ 32
2.2 Prospective Funding Impact Statement ......................................................................................................... 35
2.3 Prospective Financial Statements and notes ................................................................................................ 37
Wāhanga tuatoru: Tā te kaitātari kaute
Section 3: Auditor’s Report .............................................................................................................................
75
Wāhanga tuawha: He pārongo atu anō
Section 4: Additional information ...............................................................................................................
81 4.1 How the organisation is structured ................................................................................................................. 82
4.1.1 Governing Body members .......................................................................................................................... 83
4.1.2 Auckland Council Executive Leadership Team ..................................................................................... 84
4.1.3 Local Boards ................................................................................................................................................ 85
4.1.4 Council Controlled Organisations (CCOs) .............................................................................................. 85
4.1.5 Independent Māori Statutory Board (IMSB) .......................................................................................... 85
4.1.6 Advisory panels............................................................................................................................................ 86
4.2 Co-Governance arrangements .......................................................................................................................... 86
4.3 How to contact the council ................................................................................................................................ 87
4.3.1 Locations that offer council services ...................................................................................................... 87
4.4 Glossary of terms ................................................................................................................................................. 88
4.5 Key word index ...................................................................................................................................................... 90
TE TAHUA PŪTEA TAU 2021-2031
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
MESSAGE FROM THE MAYOR AND CHIEF EXECUTIVE
He karere nā te koromātua
He karere nā te tumu whakarae
Message from the Mayor
Message from the
Auckland Council’s 10-year Budget 2021-2031 invests $31.8
Chief Executive
billion into our city and its infrastructure. It’s the single
Aucklanders’ needs are continuously changing as
In preparing this 10-year
the city becomes more diverse. We are living and
Budget we have struck
largest infrastructure package in Auckland’s history and a 21
working in dynamic times and significant trends and
a balance between the
per cent increase on our previous 10-year Budget in 2018.
impacts are still emerging, many as a result of the
demands created by our growing region, climate
impacts of COVID-19. We have learnt through the last
change, the impacts of the COVID-19 pandemic on
18 months that the implications of COVID-19 won’t
our communities, changing community needs and
This budget is a continuation of the Emergency
We know we will have to do more on climate
be limited to 2020 or 2021. That as a consequence of
our ability to finance those demands.
Budget struck in 2020, and responds to the
change, and this budget lays the groundwork for
COVID-19, the impacts on the business community
unprecedented loss in council income caused by
further action in future annual budgets.
Embedded in the 10-year Budget is an expectation
and on communities generally will ripple on for
the COVID-19 pandemic.
to take more deliberate action to get our family of
To ensure that we can continue to protect
potentially many years to come. Auckland is also
organisations aligned more effectively and delivering
While the impacts of COVID-19 are less severe than
and enhance our natural environment and
experiencing impacts that are different to many
more effective outcomes in the aggregate.
had initially been projected, council is still facing
native species, we are extending our Natural
other parts of the country.
We are very conscious of the role that our services,
an estimated revenue loss of more than $750
Environment and Water Quality targeted rates to
A year ago, we prepared the Emergency Budget
capital development projects, investments and
million over 2021 and the first three years of this
2030/31. We will also increase the Water Quality
based on the immediate impacts of COVID-19 on
spending plays in the economic recovery of
10-year Budget. Rather than taking an austerity
Targeted Rate in line with general rates rises. This
revenue, public transport, tourism and reduced
Auckland. The increased investment of $31.8 billion
approach in the face of this challenge, we have
will enable us to extend our focus on improving
demand for some of our community and regulatory
in capital projects, will not only keep building the
opted to maintain our investments in critical
water quality to areas including the Eastern
services. Through that budget, and across the
infrastructure that current and future Aucklanders
infrastructure builds and renewals, as well as the
Isthmus and Manukau Harbour catchments, and
council and Council Controlled Organisations,
will need, but will help create jobs and stimulate the
key services and facilities that Aucklanders rely on.
extend and increase regional work programmes
we took significant steps to reduce costs as well
local economy.
supported by the Water Quality Targeted Rate.
as levels of service in some areas (for example in
Funding decisions we have made will enable an
the activities that support the tourism sector).
We will increase our focus on climate action. While
additional $900 million of capital projects to
To fund our record investments in Auckland
Together we achieved our $120 million savings
we already have many programmes that tackle our
carbon footprint, another $152 million is provided in
proceed over the next three years despite the
(including the additional $900 million in the first
target while also delivering more efficiently
this budget, along with the acknowledgement that
impacts of COVID-19. This maintains the planned
three years), we will lock in $90 million a year of
important community and council services. While
we need to continue to consider the climate change
pipeline of work – and brings forward important
savings from cost efficiencies, raise $70 million
some of the COVID-19 impacts on service demand
have continued, other areas, such as demand for
impacts of everything we do.
infrastructure projects that will help stimulate the
a year for vital assets through the sale of surplus
regulatory services, rebounded to exceed pre-
The way we provide customer and community
recovery from the economic downturn.
properties, increase borrowing within prudent
limits, and maintain our long-term annual average
COVID-19 levels reflecting the large number of
services is also part of our response to the needs of
Funding for renewals and maintenance has also
general rates increase at 3.5 per cent, but with a
infrastructure and housing developments still
Aucklanders. The expectations our customers and
been increased by 50 per cent over the previous
one-off increase of 5 per cent next year.
shaping our city. This has put pressure on our
communities have of us have changed. Providing
10-year Budget. This includes Watercare’s
services.
more choice for people by increasing our digital
infrastructure budget over the 10 years increasing
This is an effective middle ground that finds a
Our communities, partners and businesses are
services, prioritising investment in assets to areas
from $5.7 billion to $9.7 billion. These funding
balance between the $750 million loss of income
also under unprecedented pressure. There’s an
that need them most and putting more focus on
increases will help ensure that future generations
due to COVID-19, while ensuring that we maintain
expectation on council to make sure we are doing
supporting Māori-led and community-led services
of Aucklanders are not left with the consequences
the investment necessary to stimulate recovery
the things that are necessary for our communities,
and local partnerships means we have a range of
of a failure to invest in vital infrastructure, such as
and make progress to build a world-class city.
doing them well, and not encumbering ourselves
responses that can adapt to local community needs.
we have seen in other cities.
The billions invested in this budget will help
with services for which there are better providers
We are operating in an environment where there
and solutions in the market. Understanding current
is more economic pressure on us to be sharper
While this budget aims to drive the recovery from
Auckland and New Zealand pull out of the
and future service demands is also timely given the
and better at delivery of services that support the
COVID-19, we are also looking towards future
COVID-19 crisis while addressing transport and
significant government reform programme.
local government wellbeings than at any other time
challenges—in particular those posed by climate
traffic congestion, sustaining and enhancing
in our history. We are committed to ensuring our
change.
the environment, improving water quality and
Central government policy including three waters
the resilience of our water supply, building more
reform, the framework replacing the RMA, Local
organisation is in the best possible shape to respond
Consequently, our package of new climate action
infrastructure for housing and tackling the threats
Government reforms, the climate agenda and
to the challenges of this changing environment and
adds a further $152 million over 10 years to reduce
the services we provide are effective, efficient and
posed by climate change.
multiple national policy statements – will escalate
greenhouse gas emissions and to adapt to the
the need for councils to consider what we need to
relevant to the needs of Aucklanders.
impacts of climate change. This will allow us to
It is a Recovery Budget that will keep Auckland
focus on, what activities may be shifted away from
There is strength in our diversity. By working
immediately cease the purchase of diesel buses
moving.
local government, and what that means for our
together, we can continue to leverage Tāmaki
and ensure that all new buses in Auckland are low-
Hon Phil Goff
services, partnerships, and workforce.
Makaurau’s potential and create an Auckland we can
emission electric or hydrogen vehicles. Millions
all be proud of.
Mayor of Auckland
In every challenge is an opportunity. Our opportunity
more trees will be planted as carbon sinks and,
is to reset our approach and focus on the things that
Jim Stabback
with government help, 50 per cent of council’s
matter most to Aucklanders, and in doing that, look
vehicle fleet will be non-carbon emitting by 2030.
at the systemic change that is needed to deliver
Chief Executive
those things.
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TE TAHUA PŪTEA TAU 2021-2031
2
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
Wāhanga tuatahi:
He rārangi ō ta mātou
Tahua Pūtea Whakarauora
Section one:
An outline of
Our Recovery Budget
DAIRY
LOCAL STORE
BAKERY
BUTCHER
FLORIST
3 | TE TAHUA PŪTEA TAU 2021-2031
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AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.1 A SNAPSHOT OF OUR RECOVERY BUDGET
1.1 A snapshot of
Our Recovery Budget
O U R S T R AT E G I C L E N S E S . . .
Recovery
Climate Change
Māori Outcomes
Development
Focus on considering climate
Focus on opportunities to achieve
Focus on supporting growth
Focus on supporting communities and
impacts in everything we do
better outcomes for Māori
in a few key areas
stimulating jobs and economic recovery
W E N E E D T O B A L A N C E . . .
O U R 1 0 -Y E A R P L A N
A $32 billion package of capital investment that will enable continued
KEY ISSUE
delivery of key services and strong investment in new and renewed assets as
well as helping stimulate the economic recovery of Auckland - supported by a
Rising
COVID-19 revenue impacts
mixture of funding mechanisms including rates, borrowings, costs savings and
investment
Existing commitments
asset recycling. —
see page 8-15 for more info
demand
Keeping borrowing at responsible
A climate action package that contributes to the reduction
KEY ISSUE
levels with enough headroom to
of greenhouse gas emissions and adapting to the impact of
Rapid growth
deal with future shocks
climate change.
— see page 12 for more info
Changing community needs
Considering the overall impact of
and transport demand
our proposals on our community
KEY ISSUE
Focusing our
infrastructure support for housing and
growth to a few key areas.
Ageing assets
— see page 13 for more info
Need to respond to climate change
Reduced
KEY ISSUE
Changing the way we deliver
community services to better
investment
meet the needs of our diverse and changing communities.
Need to support recovery
capacity
— see page 14 for more info
Continuing to make progress with
protecting and enhancing
KEY ISSUE
our natural environment through extension of the Natural
Environment Targeted Rate and Water Quality Targeted Rate
to 2031 plus increasing the Water Quality Targeted Rate in line
with the general rate increase
. – see page 15 for more info.
O U R F U N D I N G L E V E R S . . .
$70 million asset recycling
$90 million of
Increased council borrowing
A one-off 5 per cent increase
target per year
ongoing savings
in the short term
in average general rates
5 | TE TAHUA PŪTEA TAU 2021-2031
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AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.2 KEY ISSUES
1.2.1 Key issue 1 — Finding the balance
Ngā take matua
1.2 Key issues
In this 10-year Budget we have had to find a
ii. Changing needs
balance between all of the pressures that need
Auckland is one of the most diverse cities in
addressing and would require us to make more
the world. It is a mix of different ethnicities,
investment, and all of the financial pressures
sexualities, gender identities and age-groups. It
that limit our ability to make these much
includes those that face accessibility issues.
needed investments.
Many community services and facilities that
A bit more detail on these challenges follows:
we currently provide were introduced when
a) Rising investment demand
our communities were less diverse. We need
to continually adapt our services to meet the
Auckland continues to rapidly grow and change.
changing needs of our communities.
We face some major challenges in relation to
iii. Transport demands
climate change and the degradation of our
Traffic congestion has a big impact on
natural environment. We also need to look after
the Auckland economy. The benefits of
all Aucklanders and ensure that we provide
decongesting Auckland’s transport network
assets and services fairly.
have been estimated to be between $900
i. Rapid growth
million and $1.3 billion per year (approximately
Auckland’s population continues to increase
1 to 1.5 per cent of Auckland’s GDP). A recent
and is expected to reach over 1.9 million by
business survey found that 33 per cent of
2031. This means we need to provide services to
respondents now view traffic congestion as the
more people.
main obstacle to growth and operations, up from
just 5 per cent four years ago.
More people also puts pressure on housing
supply and housing affordability. While we do
Auckland has a serious problem with road
not build houses, we need to do our part to
deaths and injuries. In 2020 alone, 37 people
ensure there is enough infrastructure (such as
died and 489 people were seriously injured on
roads, water pipes, public transport, parks, and
our roads.
community facilities) to accommodate growth.
At the same time, transport related emissions
We also need enough infrastructure to support
accounted for about 44 per cent of Auckland’s
new business developments, as more people
total emissions in 2016. Between 2007 and 2017,
will need places to work and do business. As
on-road transport emissions increased by about
Auckland grows, we will also need to spend
9 per cent.
more to mitigate the impacts of growth on
Substantial investment is needed in Auckland’s
the natural environment and the health of
transport network to address these issues and
our waterways.
continue to provide more
transport choices
for Aucklanders.
Auckland’s diversity:
180 =
Almost a
28.2%
15.5% of
The number of older
Disability –
approximate
quarter of Māori
(proportion of
Aucklanders
Aucklanders (those aged
one in five
number of
live in Auckland
Aucklanders who who are
65 and over) continues
Aucklanders
ethnicities
(26.9% increase
identify with an
of
Pacific
to increase over time,
were identified
and
175
in the number
Asian ethnicity)
ethnicity
up 13.0 per cent since
as disabled in
languages
of Māori living in
up from 23.1%
(25.1% increase)
2013. This is expected
the 2013
Auckland)
to approximately double
Disability survey.
in the two decades from
2018, reaching a total of
400,000 by 2038.
Source: 2018 Census of Population and Dwellings, Statistics New Zealand
7 | TE TAHUA PŪTEA TAU 2021-2031
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AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.2 KEY ISSUES
iv. Looking after our assets
Auckland International Airport Limited. This
While the debt limit ensures we stay prudent, it
iv. Impacts of our decisions on
Updated information on our existing
has been made worse by reduced revenue
constrains our ability to invest in our strategic
the community
infrastructure has identified the need to
from water use due to drought related water
projects. The impact of COVID-19 has made this
We are very conscious of the costs of our
increase spending to maintain, repair or
restrictions and other reductions in revenue
worse in the short-term due to the impact on
decisions on ratepayers and the community as a
replace many of these assets. This additional
from across the council group.
our revenue.
whole. While there is ongoing pressure to spend
investment is important to protect our assets
more and little appetite to reduce service levels,
While the situation with COVID-19
In May 2020 we agreed that it would be prudent,
and reduce the risk of infrastructure failure.
we know we cannot impose significant costs on
and its economic impacts is
under the circumstances, to temporarily depart
the community through large rate increases and
The timing of this spending is important.
still highly uncertain, the latest
from our normal financial policy settings. Our
major increases to fees and charges.
If we wait too long, the risks may become
projections are that cash revenue
rating agencies have indicated that we have
unacceptable and long-term costs could
for the council group will be
some capacity for higher debt levels, they
c) Finding the right balance
rise dramatically.
around $750 million less over the four-year
have also indicated that if we moved to those
higher settings we would need to be careful
In finalising this 10-year Budget we have worked
v. Responding to climate change
period from July 2020 to June 2024, compared
with our interest cost levels, annual cashflow
to balance the pressures to spend more with
In June 2019 we declared a climate emergency
to the pre-COVID projections. Our latest
and the flexibility in our capital programme.
the reduced capacity to fund those pressures.
reflecting the threat that climate change poses
scenario modelling has indicated that if the
We also need to consider how much headroom
This budget provides for a $31.8 billion capital
to our economy, environment, and way of life.
COVID-19 impacts are more severe and last
longer than currently projected, the revenue
we should retain to be able to respond to any
expenditure programme, which will not only
This was followed in June 2020 by Te Tāruke-ā-
reduction could be as large as $1 billion during
future shocks.
keep Auckland running at the level people have
Tāwhiri: Auckland’s Climate Plan, which sets out
that same period.
a plan for the region to:
Because our ability to borrow is dependent on
10-YEAR BUDGET 10-YEAR BUDGET
• reduce greenhouse gas emissions by 50 per
our income, this projected reduction in income
2018-2028
2021-2031
cent by 2030
has a substantial impact on our ability to invest
• reach net zero emissions by 2050
in Auckland over the next few years.
Transport
$11.97b
$12.65b
• create a pathway to prepare for the impacts
ii. Existing commitments
of climate change.
In April 2019, we decided to budget for an
While we are already doing a lot of work tackling
additional $500 million of investment in the City
emissions, more investment will be needed to
Rail Link to future- proof growth and allow an
Water, wastewater and stormwater
$7.08b
$11.14b
play our part to help meet these regional goals.
appropriate level of contingency. In July 2020,
More investment will also be needed to make
we had to fund $224 million of new water supply
our infrastructure more resilient to the effects
spending to respond to Auckland’s drought.
of climate change such as rising sea levels and
These commitments have reduced our flexibility
more frequent extreme weather events.
Parks and community
$3.70b
$4.56b
to spend in other areas. Other contractual
vi. Supporting recovery
commitments we have made to large, multi-year
Investing in capital projects is a major way that
projects like the Central Interceptor and Eastern
we can support the local economy. Making sure
Busway have also contributed to this.
City centre and local development
$1.28b
$1.17b
we put our money in the right places at the
iii. Need to keep borrowing at
right time is key to providing jobs and economic
responsible levels
stimulus for our recovery.
We use debt to fund new capital investment
Economic and cultural
b) Reduced investment
as a fair way to spread the cost over future
Aucklanders who will benefit from
development
$0.40b
$0.55b
capacity
that investment.
While responding to the above challenges is
Our debt limit ensures that our
important, our financial ability to respond is
financial position stays prudent
Environmental management
limited. The key factors that limit our ability to
and sustainable over time. We
and regulation
$0.15b
$0.18b
spend additional money are set out below.
need to be careful that we don’t increase debt
i. COVID-19 revenue impacts
to a level that overly burdens future ratepayers,
or adversely affects our credit ratings. A lower
COVID-19 is having a significant impact on our
Council support
$1.63b
$1.57b
credit rating would reduce our ability to borrow
revenue. This includes revenue reductions
money when we need it and increase the cost
from Ports of Auckland, public transport,
when we do.
conventions and stadiums, and dividends from
TOTAL INVESTMENT ($ BILLION)
$26. 20b
$31.80b
9 | TE TAHUA PŪTEA TAU 2021-2031
10
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.2 KEY ISSUES
become used to but will also continue to build
supporting role in helping our communities
for the future. This level of investment is greater
upskill, working alongside others.
1.2.2 Key issue 2
than ever before despite the difficult financial
Over the 10 year period we will be spending
Climate Change action
circumstances that we face in the short term.
$31.8 billion on capital projects, with $8.8
In order to maintain a high level of investment
billion of this in the first 3 years This is a huge
As indicated in Section 1.2.1, climate change is
• progressing towards making Queen Street
in the face of the impacts of COVID-19 on our
injection into the Auckland economy, creating
one of our major challenges and has resulted
valley a zero-carbon zone
revenues we have had to utilise four key
significant direct and indirect employment as
in Council declaring a climate emergency and
funding levers:
new assets are created and existing assets are
• increasing our zero-waste resource recovery
adopting a climate plan (Te Tāruke-ā-Tāwhiri:
network.
• Average general rates will increase by 5
renewed. This investment will not only ensure
Auckland’s Climate Plan). The regional goals set
per cent in year one of the 10-year Budget.
that we keep providing assets and services
As well as trying to reduce our impact on climate
out in this plan are to:
Without this increase, $900 million of capital
to Aucklanders as the city grows but will
change through reducing emissions, we also
• Reduce greenhouse gas emissions by
expenditure would have had to be deferred
also significantly assist Auckland’s economic
have to prepare for the consequences of existing
50 per cent by 2030
from the first three years of the budget. The
recovery from the pandemic.
changes in weather patterns and rising sea
average general rates increase will return to
Supporting our communities to be strong
• Reach net zero emissions by 2050
levels driven by climate change. As we build new
3.5 per cent for subsequent years.
and resilient
Many of our existing programmes play a role
assets, or renew existing ones, we are ensuring
that resilience is built into our infrastructure
• Council debt will increase in the short term
Key impacts of COVID-19 on our communities
in reducing our emissions e.g. investment in
networks. Work is underway to improve the
but then gradually reduce to below the 270
include increased levels of stress, physical
walking and cycling infrastructure, increased
planning for coastal change and to respond to
per cent debt to revenue ratio which we
and mental health challenges, and increasing
support for public transport, planting in parks,
natural hazards and extreme weather events.
consider to be a more prudent level.
deprivation in areas that are already worse
wetlands and on roadsides, reduction in waste
off in comparison to other parts of Auckland.
to landfill.
• We will recycle around $400 million of
While we are making progress to tackle climate
Council’s strength is our ability to create
surplus assets to reinvest in more critical
In addition to these ongoing commitments,
impacts through these investments, we
opportunities for communities to come together
infrastructure.
in this 10-year Budget there has been specific
recognise there is much more we need to do
through the services and physical spaces we
to help meet the regional emission goals and
• As well as increasing our revenue and debt,
recognition of the need to focus on our role in
provide. We are focusing on tailoring services
build resilience to the climate change impacts
a target of $90 million per annum of cost
reducing emissions and adapting to climate
to communities of greatest needs and building
on our infrastructure. Council has an important
savings have been included in this budget.
change, so funding ($152 million) has been
community resilience, so we recover stronger
provided for a specific package of actions. This
role to play in both of these areas, but we
For more information about our 10-year Budget
together.
package will include;
cannot do it alone. Reducing emissions and
package see Section 1.3 of this Volume and
Assisting businesses to recover and grow
building resilience are goals that we need to
the Financial Strategy found in Section 1.3 of
• planting 200 hectares of native forest in our
Many businesses are struggling from the
work towards in partnership with government,
Volume 2.
regional parks
disruptive impacts of COVID-19, including
businesses and communities.
• all new buses will be electric or hydrogen
d) Our recovery budget
border closures and the loss of revenue. We
powered from 2021
are now looking to the future to enable more
This 10-year Budget and, in particular, the level
sustainable business models through attracting
• planting 11,000 more street trees
of investment will also play an important part in
investment and the right skills into Auckland.
Auckland’s recovery from the COVID-19.
We will also continue to support the economy
Stimulating jobs through capital investment
through our town centre programmes and
COVID-19 has led to considerable job loss
visitor attraction activities.
and displacement of workers and already
disadvantaged groups are disproportionately
impacted. Council’s capital programme is our
best means of creating jobs and we have a
11 | TE TAHUA PŪTEA TAU 2021-2031
12
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.2 KEY ISSUES
1.2.3 Key issue 3
1.2.4 Key issue 4
Focus on supporting growth
Providing community
in a few key areas
services differently
Despite the uncertainty arising from COVID-19,
Councils have traditionally provided community
and facilities that better meet the needs of
Auckland’s population continues to grow
services through building community assets
our communities. We propose to do this by
rapidly. The demand for new infrastructure
and delivering services through those. This
working with our local boards who understand
is rising while there is a growing need to look
means that Auckland now has a large network
the specific needs of their local communities.
after our existing roads, water pipes, public
of community facilities, many of which are aging
Moving fully to this new approach will take time.
transport, parks and community facilities. The
and require significant renewal investment.
In the next three years users of our services
Development Strategy and Auckland Unitary
NORTH WEST
Auckland’s population continues to grow and
will not see any significant changes to existing
Plan encourages a more compact city which
become increasingly diverse. The needs of our
services but we will be adding improved and
CRL STATIONS
uses infrastructure more efficiently.
communities are changing over time. We need
integrated digital services.
The council has major and smaller projects
to become more adaptable in how we provide
In the meantime, $65 million of the extra
underway across the region to support the
community services to keep up with these
funding is provided in the first three years to
ongoing growth of Auckland. However, the
changing needs.
address the highest priorities for community
capacity to support growth is not unlimited
AHP & TAMAKI
This 10-year Budget has provided an additional
services and facilities. This would provide a
and in this 10-year Budget we had to prioritise.
$900 million of investment in community
level of renewals to safeguard our facilities
We have identified a few key locations to
facilities, with a significant proportion of
from asset failure and will support high-
focus our limited resources. These are all joint
this being for renewals. However, our ageing
priority growth projects such as the Scott
priority areas agreed with government and
asset base will demand increasing levels
Point sustainable sports park and the Flatbush
include:
of investment and this is not financially
combined library, community and arts centre at
• Auckland Housing Programme (Mt Roskill,
sustainable. We have decided to do more in
Ormiston. It will also:
Oranga, Mangere, and Northcote) & Tamaki
using alternative ways of delivering services,
DRURY
• provide new neighbourhood space in
• North West (including Red Hills,
through partnerships and digital channels and
greenfield areas
Whenuapai and Westgate)
multi-use facilities. These are less dependent
• support Kāinga Ora developments, sports
on having a large number of community assets.
• Drury (a new community providing housing
park investments in areas of greatest need
and employment opportunities)
Over time, implementation of this new approach
• allow for progress on coastal protection
• CRL Stations (Mt Eden and Karangahape).
will see us sell aging community assets that
areas such as the Orewa Seawall.
are not fit for purpose and reinvest in services
Over $2 billion of infrastructure spend will go into supporting these growth areas (excluding CRL) and,
based on our modelling, we expect this to help support growth over the next 10 years as follows:
HOMES
JOBS
PEOPLE
COUNCIL INVESTMENT
AHP and Tamaki
9,300
2,800
27,400
$733m
Northwest
5,100
8.100
13,600
$981m
Drury
4,000
1,500
10,500
$475m
13 | TE TAHUA PŪTEA TAU 2021-2031
14
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.2 KEY ISSUES
1.2.5 Key issue 5
1.2.6 Focusing on better
Natural environment
delivery of Māori Outcomes
and water quality programmes
Kia Ora Tāmaki Makaurau is the framework
Our long-term priorities and
we use to measure our delivery performance
mana outcomes
In 2018 we introduced two new targeted
working on the programmes and projects that
on the strategic priorities that have been
rates to enable us to provide additional,
are already making a difference. In addition, we
identified by Māori. We focus on opportunities
specific funding addressing concerns with our
have increased the water quality targeted rate
Papakāinga and Māori
Māori Business Tourism
to achieve better outcomes for Māori
Housing
and Employment
degrading environment and poor water quality
in line with the general rate increase to enable
through our investment decisions, with the
Kia Ora te Kāinga
Kia Ora te Umanga
in our streams and harbours. These targeted
major construction projects to commence six
involvement of mana whenua, iwi and Māori
rates would have expired in 2028 so we have
years earlier. The additional funding provided by
community entities.
extended them to 2031 to enable us to keep
these targeted rates will:
The ongoing effects from the COVID-19
Whānau and Tamariki
Realising Rangatahi
Wellbeing
Potential
pandemic and potential changes to the
Kia Ora te Whānau
Kia Ora te Rangatahi
WATER QUALITY TARGETED RATE
NATURAL ENVIRONMENT TARGETED RATE
operating environment for local government
(ADDITIONAL $256 MILLION)
(ADDITIONAL $107 MILLION)
will require us to adapt how we deliver these
outcomes. Underpinning the approach going
• Deliver improved water quality in:
• Maintaining momentum with existing
forward will be working in partnership across
Marae Development
Kaitiakitanga
Kia Ora te Marae
Kia Ora te Taiao
– Manukau Harbour
programmes to protect native species
all levels of government and the community
– Tamaki Estuary
to access funding and support for new ways
– Beaches between Parnell
• Further funding to continue to address
of delivering. Our commitment to delivering
and Glendowie
kauri dieback
for our Māori communities is with a ‘by Māori
Effective Māori
Te Reo Māori
– Wairau Estuary.
Participation
• Continue to deliver programmes
for Māori’ approach and opportunities to do
Kia Ora te Reo
Kia Ora te Hononga
• Fund additional litter trap projects
addressing predator and weed control.
that will be a focus. Specific funding has been
across the region to:
identified across the 10 years to deliver on
An Empowered
– Remove contaminants
Māori outcomes within the key activity areas
Māori Identity and
Organisation
Overview of Māori Outcomes 10 year spend ($150 million)
– Improve water quality.
of council. Focusing funding on Māori-led
Culture
Kia Hāngai te
initiatives supports the development of new and
Kia Ora te Aurea
Kaunihera
innovative ways to deliver outcomes.
Kia ora te marae -
In this 10-year Budget $150 million has been
Marae Development
$54.6m
allocated to supporting Māori Outcomes
Kia hāngai te kaunihera:
Kia Ora te reo - Te Reo Māori
an empowered organisation,
$2.5m
$1.1m
Kia ora te ahurea - Māori Ahurea $8.6m
Overview
Kia ora te hononga Effective
Kia ora te umanga - Māori
Māori Participation,
business, tourism and Umanga $2.2m
of 10-year
$18.4m
Kia ora te taiao: kaitiakitanga,
spend
$0.9m
Cultural Initatives Fund
Funds to be allocated
(Marae Dev./Papakāinga &
$16.2m
Māori Housing), $12.0m
Kia ora te Whānau and
Tamariki Wellbeing, $0.1m
Funds for Māori-led
initiatives, $30.0m
Programme Delivery
$3.5m
15 | TE TAHUA PŪTEA TAU 2021-2031
16
Kia Ora te reo -
Kia hāngai t
Te Reo Māori
e kaunihera:
$2.5, 2%
an empowered
organisation, $1.1, 1%
Kia ora te ahurea - Māori...
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.3 OUR PLAN
Ō mātou mahere
1.3.2 What we will deliver
Following is a high-level snapshot of what we
in our 10-year Budget are outlined. More detail
1.3 Our plan
will be delivering under each of our activity
on these activities can be found in Volume 2
themes. The key challenges for each activity
Section 2 – Our Activities.
theme along with the main responses included
1.3.1 Our strategic lenses
Transport
KEY AREAS OF SPEND
CAPITAL
OPERATING
HOW OPERATING
RATES VALUE
Finding the right balance in this 10-year Budget was
SPEND
SPEND
COSTS ARE FUNDED
PER $100
difficult and it was important that we focused in on what
55%
45%
$12,645m $19,635m
31
we were trying to achieve in the next 10 years, with a
Other, including fees
Rates
and charges
particular view on the current environment. We came
up with four focus points, or “lenses”, through which we
What we do:
Auckland Transport is responsible for building and managing our network of local and arterial roads,
could view every part of our plan and all our decisions to
footpaths, cycleways, bridges, carparks and culverts. They also provide public transport services across
the rail, bus and ferry networks.
ensure that they were addressing these critical issues and
leading to the longer term outcomes we want to achieve.
The challenges:
Our plan:
• Growth – transport infrastructure is a
• Focus areas for growth – as outlined in Section 1.2,
Recovery - Focusing on supporting communities and stimulating jobs and
key enabler of growth and there is major
we are focusing our support for growth into a few
economic recovery through our capital investment to stimulate construction,
pressure for investment in both greenfield
key areas and new transport infrastructure will align
jobs and the economic recovery. Also supporting our communities who have
and brownfield development areas
with this.
been significantly impacted by COVID-19.
• Improving network capacity and performance –
• Congestion - The benefits of
Māori Outcomes
we are working to look after and improve the existing
- Focusing on opportunities to achieve better outcomes for
decongesting Auckland’s transport
network including projects such as traffic light
Māori through our investment decisions, with the involvement of mana
network have been estimated to be
optimisation, improvements to significant traffic
whenua, mataawaka, iwi and Māori community entities.
between $900 million and $1.3 billion per
corridors and freight network improvements
Climate Change - Focusing on the threat that climate change poses to our
year (approximately 1 to 1.5 per cent of
• Improving public transport – significant
economy, environment, and way of life and considering the climate impacts
Auckland’s GDP)
investment is planned for the 10 years across the
in everything that we do.
• Safety - Auckland has a serious problem
bus, rail and ferry networks
Development - Focusing on supporting growth and aligning our investment
with road deaths and injuries. In 2020
• Investing in safety – reducing transport related
in infrastructure with our Development Strategy.
alone, 37 people died and 489 people
harm is a key focus for the 10 years with a number of
were seriously injured on our roads.
projects targeted at safety improvements.
• Climate change – Transport-related
• Increasing active transport – our transport
emissions accounts for about 44 percent
investment will include ongoing expansion of the
walking and cycling network.
of Auckland’s total emissions.
• Reducing emissions – all new buses purchased
from 2021 will be electric or hydrogen powered.
Regional Fuel Tax:
In 2018 we introduced a Regional Fuel Tax (RFT) of 10 cents per litre (plus
GST) on sales of petrol and diesel in the Auckland region. This funding, along
with matching Waka Kotahi funding is enabling a significant ramping up of
investment in transport in Auckland. Some minor changes are forecast for the
projects supported by the RFT following government announcements of other
funding sources for previously included projects.
17 | TE TAHUA PŪTEA TAU 2021-2031
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AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.3 OUR PLAN
Water, wastewater and stormwater services
Parks and Community
KEY AREAS OF SPEND
CAPITAL
OPERATING
HOW OPERATING
RATES VALUE
OPERATING
HOW OPERATING
RATES VALUE
SPEND
SPEND
COSTS ARE FUNDED
PER $100
KEY AREAS OF SPEND
CAPITAL
SPEND
SPEND
COSTS ARE FUNDED
PER $100
83%
17%
10%
90%
$11,136m $10,407m
9
$4,561m
$10,176m
33
Other, including fees
Rates
Other, including fees
Rates
and charges
and charges
What we do:
What we do:
Watercare Services Ltd is responsible for delivering high quality drinking water to households and
Auckland has a significant network of parks, libraries, swimming pools, recreation centres, arts and
businesses, and the removal and safe discharge of wastewater. They build and maintain significant
culture facilities and other community spaces. Council builds and maintains these facilities and
infrastructure assets to provide these services. The Healthy Waters department of Council builds
provides a wide range of activities and events to communities. Council also works to maintain coastal
and maintains the infrastructure and services that manage the stormwater runoff entering our
assets and prevent beach erosion. We also support a number of co-governance entities, including
streams and harbours.
Tūpuna Maunga o Tāmaki Makaurau Authority.
The challenges:
Our plan:
The challenges:
Our plan:
• Growth – water infrastructure is a key
• Focus areas for growth – as outlined in Section 1.2,
• Growth – community facilities are not
• Focus areas for growth – as outlined in Section 1.2,
enabler of growth and there is major
we are focusing our support for growth into a few key
typically an enabler of growth but tend to be
we are focusing our support for growth into a few
pressure for investment in both greenfield
areas and new water infrastructure will align with this.
built as the community grows and expects a
key areas and our expenditure on new community
and brownfield development areas.
wider range of services. The ongoing growth of
facilities, as well as some renewal expenditure, will
• Investing in additional water supply – Watercare
Auckland is creating more demand.
support that approach.
• Drought impacts on water supply –
has brought forward its plan for supplementing
lower than average rainfall when added
Auckland’s water supply with additional take from
• Ageing assets – we have approximately $4.7
• Changing delivery - we are planning to do more
to population growth has meant ongoing
the Waikato River as well as upgrading some local
billion of buildings and built assets across
with alternative ways of delivering services, through
water supply was restricted for several
reservoirs.
our network. Many of these are ageing and
partnerships and digital channels and multi-use
months. Existing supply levels need to be
utilisation is declining. Maintaining the full
facilities. These are less dependent on having a large
• Improving water quality – Major projects such as
supplemented to provide resilience.
network of these facilities is not financially
number of community assets.
the Central and Northern Interceptors will see sewage
sustainable.
• Contamination of streams and beaches
removed and treated that would otherwise flow into
• Additional investment in the short term – an
– storm events result in contamination
the harbours. A range of other projects will remove
• Changing needs – Auckland’s communities
additional $65 million has been provided over the
of streams, beaches and harbours across
contaminants from stormwater and restore streams
are not only growing but those communities,
first three years to address the highest priorities for
Auckland.
and surrounding environments to improve water
and their needs, are becoming more diverse.
community services and facilities. This safeguards
our facilities from asset failure and supports high-
• Climate change – droughts and severe
quality.
• Climate change – our parks network has an
priority growth projects
storms create issues for both water supply in
• Building resilience – improving the reliability of our
important part to play in the mitigation of
drought conditions, and for our wastewater
network and ensuring that as new infrastructure is
emissions from other activities. We need to
• Divesting ageing assets in the long term –
and stormwater infrastructure in heavy
built it will take into account the changing impact of
make sure that the way we manage our parks
over time we will sell aging community assets that
rainfall events.
weather events and the need to provide resilience
promotes the best climate outcomes.
are not fit for purpose and reinvest in services
during natural disasters.
and facilities that better meet the needs of our
communities.
• Increased plantings in regional parks – a key
Water Quality Targeted Rate:
action in our climate change package is the planting
The previous 10-year budget accelerated actions to improve our water quality funded by the
of 200ha of native forest in our regional parks.
Water Quality Targeted Rate. It has already funded work such as contributing $10 million towards
a six-year clean-up of the Kaipara Harbour and has allowed us to re-open five beaches that were
previously closed because of public health concerns. We have focussed on the western isthmus
Implementing the change in service delivery:
where the worst wastewater overflows have been. In this 10-year Budget we have extended the
The change in delivery approach with more on-line services and working in
targeted rate to 2031 and increased it in line with the general rates increase. This will enable the
partnership with others will be piloted in the first three years of this 10-year
water quality projects to extend further across Auckland.
Budget. While the delivery mechanism may be different there are no planned
changes to levels of service.
19 |
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AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.3 OUR PLAN
Centres development
Economic and Cultural development
KEY AREAS OF SPEND
CAPITAL
OPERATING
HOW OPERATING
RATES VALUE
OPERATING
HOW OPERATING
RATES VALUE
SPEND
SPEND
COSTS ARE FUNDED
PER $100
KEY AREAS OF SPEND
CAPITAL
SPEND
SPEND
COSTS ARE FUNDED
PER $100
34%
66%
41%
59%
$1,165m
$1,485m
4
$554m
$2,746m
6
Other, including fees
Rates
Other, including fees
Rates
and charges
and charges
What we do:
What we do:
Planning and delivering the development of Auckland city centre and town centres across the isthmus
Auckland Unlimited supports the economic and cultural development of Auckland by making it an
is the focus of this activity. Panuku Development Auckland is our key delivery agency but we also work
attractive place to visit and do business. They are responsible for the management of our major regional
with in partnership with central government agencies and private developers.
facilities such as the zoo, art gallery, sports stadiums and the Aotea Centre. They also support the
visitor economy through major events and, working in partnership, the wider economy through business
attraction, skills development and job creation.
The challenges:
Our plan:
• Growth – Auckland’s population continues
• Focus areas for growth – we have prioritised a
The challenges:
Our plan:
to grow rapidly. The demand for new
few key locations to focus our limited resources:
infrastructure is rising while there is a growing
• Growth – COVID-19 has led to considerable job
• Focus areas for growth – in addition to council’s
- Auckland Housing Programme &Tamaki (joint
need to look after our existing roads, water
loss and displacement of workers and already
$31.8 billion capital programme, which will stimulate
priority areas agreed with government)
pipes, public transport, parks and community
disadvantaged groups are disproportionately
the economy and create jobs, Auckland Unlimited
facilities. In this 10-year Budget there is not
- North West (growth around Red Hills, Whenuapai
impacted. Many businesses are struggling
will continue its activities in stimulating the visitor
enough investment capacity to support all of
and completion of the Westgate business and
from the disruptive impacts of the pandemic,
economy with major events such as the FIFA
the potential growth areas.
residential land)
including border closures and the loss of
Womens World Cup. Work will also continue at
revenue.
the local level to build business confidence and
• Climate change – transport contributes 43.6
- Drury (a new community – centres and residential
opportunities and skills development
per cent of Auckland’s production emissions
close to employment opportunities and rail)
• Ageing infrastructure - A key issue in the 10-
and travelling around the region for work and
- CRL Stations (Mt Eden and Karangahape)
year budget has been the level of investment
• Additional investment in renewals – an additional
recreation are significant contributors to this.
required to maintain our regional facilities.
$182 million of renewal funding has been provided to
• Compact city – the Development Strategy
Previous under investment has meant that
ensure the ongoing viability of key regional facilities.
and Auckland Unitary Plan encourages a more
without an injection of additional funding
compact city which in turn reduces the need to
many of these facilities could face closure due
travel. We also ensure that provision for walking
to health and safety concerns.
and cycling is incorporated in our planning.
• Queen Street valley – our climate change
action package provides funding for progressing
Accommodation Provider Targeted Rate:
towards creating a zero-carbon zone in the Queen
The Accommodation Provider Targeted Rate (APTR) recovers a proportion of visitor attraction and major
Street valley.
events spending from owners of properties such as motels, hotels and Airbnb properties. In the Emergency
Budget 2020/2021, we decided, in light of the impact of COVID-19, to reduce our spending on visitor
City Centre Targeted Rate:
attraction and major events and suspend the APTR until 31 March 2021. That suspension of the targeted
rate and reduction in expenditure has been extended to 30 June 2022, and will be further considered in the
The City Centre Targeted Rate has been extended to 2031 which will
Annual Budget 2022-2023.
provide an extra $157.7 million to redevelop and enhance the city centre.
21 |
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22
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.3 OUR PLAN
Environmental management and regulation
Council Support
KEY AREAS OF SPEND
CAPITAL
OPERATING
HOW OPERATING
RATES VALUE
OPERATING
HOW OPERATING
RATES VALUE
SPEND
SPEND
COSTS ARE FUNDED
PER $100
KEY AREAS OF SPEND
CAPITAL
SPEND
SPEND
COSTS ARE FUNDED
PER $100
52%
48%
67%
33%
$177m
$5,425m
10
$1,567m
$5,866m
7
Other, including fees
Rates
Other, including fees
Rates
and charges
and charges
What we do:
What we do:
We seek to manage the impacts of human activity on both the natural and urban environments. Our
A range of other council activities are covered in this area – Mayor, councillor and local board support,
regulatory division consents land development and building activities and monitors compliance
corporate functions and Auckland Emergency Management. It also includes the operations of the Ports
with those consents. They also protect the community from health, safety and nuisance hazards.
of Auckland Limited and grants to third parties including Auckland War Memorial Museum, MOTAT and
Environmental services work with the community and a range of agencies to protect and restore the
the Auckland Regional Facilities and Amenities.
natural environment. The waste service operates in both the removal and safe disposal of waste as well
as continuing to focus on reducing waste to landfill through reduction, reuse and recycling.
The challenges:
Our plan:
• Managing costs – the escalating costs of a
• Ongoing review of services, assets and efficiency
The challenges:
Our plan:
growing Auckland along with reduced revenue
– Organisational efficiency and cost savings have
• A degrading natural environment – our
• Investing more in environmental protection –
as a result of the COVID-19 pandemic have
been a focus for many years and this 10-year budget
rapid growth is putting pressure on our
additional investment in environmental protection
resulted in further pressure to reduce costs.
has continued with a further $90 million per annum
environment, along with the spread of pests,
has been enabled by the extension of the Natural
• Climate change – the future impacts of
of savings included. We are also recycling some of
weeds and diseases threatening many of our
Environment Targeted Rate. With this funding we
climate change related weather events
our assets to improve our ability to invest in new or
native species. Approximately two-thirds of
can double the number of threatened species we
require the council to take a leadership role in
upgraded infrastructure.
Auckland’s local native species are under
are managing and actively manage pests across 72
responding.
• Enhancing Auckland’s readiness for natural
threat of extinction.
per cent of the prioritised eco systems. Protection
disasters – Auckland Emergency Management will
• Climate change – Further pressure will be
from pests assists native species in resilience to
continue to work with communities to increase their
put on our indigenous species as the effects of
climate change.
resilience to both natural disasters and the impacts
climate change are increasingly felt.
• Zero waste Auckland – during this ten-year
of climate change.
period we will continue to roll out our food waste
service and increase the network of community
recycling centres.
Recycling of assets:
In this 10-year budget we have included increased targets for asset recycling to assist the
Natural Environment Targeted Rate:
funding of more critical assets. This means releasing value from surplus, non-strategic assets
by selling or entering into long-term lease arrangements for these assets.
The Natural Environment Targeted Rate has funded work to address the spread of kauri
dieback disease and tackle pests that are killing our native birds and trees. So far we have
FINANCIAL YEAR
opened 60 km of kauri-safe tracks, undertaken pest control on 88,000 ha of reserve and park
ENDING 30 JUNE
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
land and set more than 1,500 traps to eliminate stoats on Waiheke Island. We are extending
($ MILLION)
the duration of the Natural Environment Target Rate from 2028 to 2031. This will provide an
Net proceeds from
additional $107 million allowing us to continue our work in this area.
asset recycling
70
70
70
70
70
60
20
0
0
0
23 |
TE TAHUA PŪTEA TAU 2021-2031
24
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.3 OUR PLAN
1.3.3 How we will manage
Funding depreciation is another mechanism
We consider the revenue settings required to
which enables us to deliver the renewal part of
achieve 100 per cent funding of depreciation by
our finances
our capital programme. Fully funding
2025 would have an unacceptable impact on
depreciation from rates and current revenue
the community. Given this, we have amended
The
capital programme in this 10-year budget
and existing assets. Much of this spend is in key
would mean that on average, over the long run,
the policy to take three additional years before
is the largest in the history of Auckland Council.
infrastructure – transport and the three waters.
we are not relying on borrowing to fund asset
we are fully funding depreciation (i.e. 2028).
It provides for $31.8 billion to be invested in new
replacement expenditure. This represents a
The planned level of capital investment will
sustainable approach.
drive continued growth in our
operating
The legacy councils only funded 63 per cent
expenditure from $4.7 billion in 2021/2022
of depreciation and our previous policy was to
to $6.5 billion in 2030/2031. This includes the
Capital investment for Auckland
progressively move to 100 per cent by 2025.
interest and ownership cost of new assets. The
4,000
The impacts of COVID-19 disruption on our
following charts show the make up of this spend
3,500
revenue streams for the first three years of
over the next 10 years and the forecast growth
3,000
this 10-year Budget have caused us to revisit
in the revenue streams that fund this spend.
2,500
our existing policy for funding depreciation.
2,000
$ million 1,500
1,000
500
Operating expenditure by type
0
7,000
2020/21
2021/22
2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
2030/31
Annual
6,000
10-year Budget
Plan
Other council assets
Water infrastructure
Transport infrastructure
5,000
4,000
3,000
$ million
Debt is a primary source of funding for our
270 per cent. Impacts of COVID-19 disruption on
2,000
capital programme. Debt spreads the cost of
our revenue streams have a dual impact on our
assets that have long lives over the generations
debt-to-revenue measure, both directly through
1,000
that will benefit from those assets. Managing
less cash in the door, and through the impact
0
the level of our debt is a key consideration and
on our debt levels. In the face of these revenue
2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
Annual
10-year Budget
to do this we use a “debt to revenue” ratio to
impacts, we have decided that it is prudent to
Plan
assess how much we can responsibly borrow.
be above 270 per cent but below 290 per cent
Core direct expenditure
Interest
Depreciation
The limit we have set for this ratio is 290 per
in the short term.
cent, but with a long-term target of being below
Council's sources of operating funding
Debt to revenue ratio
8,000
300%
7,000
290%
6,000
280%
5,000
270%
4,000
260%
3,000
2,000
250%
1,000
240%
0
230%
2020/21
2021/22
2022/23
2023/24
2024/25
2025/26
2026/27
2027/28
2028/29
2029/30
2030/31
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
Annual
10-year Budget
Plan
Debt limit
Long-term target
10-year Budget Projection
General rates
Targeted rates
Other revenue
Government subsidies
Fees and charges
Regional fuel tax
25 |
TE TAHUA PŪTEA TAU 2021-2031
26
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.4 YOUR RATES
Rates (both general and targeted) will continue
for properties moving from rural to urban to
to be a significant revenue stream and in this
be phased in over 3 years
10-year Budget we had to grapple with keeping
• Suspending the Accommodation Provider
Ō reiti
Auckland moving forward while balancing
Targeted Rate until 30 June 2022 and
the overall impact of rates on the community.
making a commensurate reduction in visitor
This was made difficult by the impact that the
1.4 Your rates
attraction and major events expenditure
Covid-19 pandemic had on our other revenue
• Introducing an Electricity Network Resilience
streams. To manage this, we decided to increase
Targeted Rate - a targeted rate of $10.5
Your rates pay for a wide range of day-to-day
general rates by an average of 5 percent as a
million per year (plus annual inflation) on
one-off in 2021/22 and then return to 3.5 per
activities and support investment in
Vector to fund enhanced management of
cent thereafter.
trees around the Vector overhead power
Auckland’s assets.
We also made changes to our rating policy in
lines improving safety around power lines
areas such as:
and the security of supply.
• expanding the urban rating area (the area
Full detail on rating changes can be found in
that pays urban rather than rural rates) to
Volume 2 Section 3.0 Policy Overview.
reflect city growth with the change in rates
1.3.4 An uncertain future
This 10-year Budget has been prepared in a
Our debt is towards the upper level of what
period of high uncertainty. It is based on the
we consider prudent, and while we have left
best information and assumptions we had
some headroom for any future shock, this is
available at the time. However, given this
something we need to very conscious of. We
uncertainty it is important that we continue to
continue to work with central government to
closely monitor the wider environment and our
find ways to increase and accelerate investment
own financial settings.
in crucial infrastructure for the city that are not
One of the highest uncertainties is the ongoing
constrained by our borrowing limits.
COVID-19 pandemic and its impact on our
Unlike many councils, a significant proportion of
revenues. How the economy responds and the
our revenue is not from rates (approximately 60
potential impact on inflation and interest rates
per cent). However, there is little opportunity to
all contribute to this uncertainty.
grow that revenue, which means any increases
Other potential major impacts will come from
in costs are likely to fall to ratepayers. The
the government’s programmes of reforms
major investment in assets has ongoing cost
in the areas of the three waters (drinking
associated with both servicing and maintaining
water, wastewater and stormwater), urban
the debt and operating those assets. Cost
development, resource management and the
saving programmes have meant that we have
general review of the future of local government.
managed to keep rate increases at relatively
The government also plays a significant part in
low levels, however moving forward, this
funding support for our investment programme
will become more difficult and some more
in Transport. Any change in the future to this
challenging trade-off discussions may become
level of funding could result in us having to
necessary.
revisit our capital programme.
Any significant changes in the future to the
In addition to these uncertainties in the wider
way we operate, the services we provide or our
landscape, we need to carefully manage
financial settings, will be the subject of public
our financial parameters. Both our debt and
consultation.
revenue settings are finely balanced.
27 |
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AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION ONE: AN OUTLINE OF OUR RECOVERY BUDGET
1.4 YOUR RATES
The 10-year Budget 2018-2028 included average
rates (see Section 3.0 of Volume 2 for
The following graphic sets out the overall rates increase for residential and business ratepayers
general rates increases for existing ratepayers
more detail).
for a range of property values. To find out what your rates are for 2021/2022 please visit
of 3.5 per cent in each year from 2021. For
We consider that business rates are too high
aucklandcouncil.govt.nz/recoverybudgetrates
2021/2022, there will be a one-off increase
compared to residential rates and we have
of 5 per cent to help support the investment
an existing policy to address this. This policy
Auckland needs. This is planned to reduce to
Estimated increases for residential ratepayers 2021/2022
will mean the average increase in rates for
3.5 per cent from 2022/2023 onwards.
residential ratepayers will be slightly higher
To ensure cost recovery of our waste activity
at 5.33 per cent, and the average increase in
there will also be a small increase to the base
rates for business ratepayers will be slightly
waste management rate.
lower at 3.53 per cent. The overall increases
$
$140
$150
$198
$256
$373
$111
127
We are also increasing our investment in
for the average value residential and business
improving the quality of water in Auckland
properties are $150 and $587 respectively.
harbours and waterways by raising the Water
The makeup of these increases is shown in the
Quality Targeted Rate each year in line with the
following table:
CV: $750k $890k $1m $1.0835m $1.5m $2m $3m
projected overall increases in average general
+5.2% +5.3% +5.33%
+5.33%
+5.4%
+5.5%
+5.5%
(Median CV)
(Average CV)
RESIDENTIAL
BUSINESS
$
$
Average CV
1,083,500
2,864,500
Estimated increases for business ratepayers 2021/2022
Total rates 2020/2021
2,810
16,598
General rates increase
144.83
569.61
$
$
1,006
WQTR
3.29
15.30
587
$220
$318
$417
NETR
0.00
0.00
$
$
191
122
Base waste increase
1.67
1.67
Total rates 2021/2022
2,960
17,184
$Annual change
150
587
CV: $500K $850K
$1M
$1.5M
$2M
$2.8645M
$5M
$Weekly change
2.88
11.28
+3.61% +3.56% +3.57%
+3.55%
+3.54%
+3.53%
+3.53%
(Median CV)
(Average CV)
Annual change per cent
5.33%
3.53%
Supporting notes:
Supporting notes:
1. The rates shown above do not include water charges which are set by Watercare. To support a significant increase
1. To recover the cost increases as a result of the rise in the Government levy on waste sent to landfill we are increasing
in capital investment over the next 10-years, Watercare’s board of directors have resolved to increase water and
the waste management standard refuse and large refuse rates that fund kerbside refuse collection in the former
wastewater tariffs by 7 per cent on 1 July 2021 and 1 July 2022, followed by annual increases of 9.5 per cent for six
Auckland City Council and Manukau City Council areas. The prices for rubbish bin tags and rubbish bags for the
years and then increases of 3.5 per cent for the last two years of this plan.
council’s kerbside collection in the remainder of the city will rise by an equivalent amount.
2. The rates calculated above include general rates, the Water Quality Targeted Rate, the Natural Environment
2. Watercare is also raising its prices to fund investment in enhancing water supply security. You can see more
Targeted Rate, and the Waste Management Base Service Rate that nearly all properties pay. A number of other
information on the Watercare website
www.watercare.co.nz
changes have been made to our rates and may affect individual properties (see Volume 2 Section 3.0 Policy
Overview for more detail).
29 | TE TAHUA PŪTEA TAU 2021-2031
30
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .1 FINANCIAL OVERVIEW
2.1 Financial overview
Wāhanga tuarua:
Introduction
Ō mātou tahua pūtea
This section provides a high-level overview of our key financial information and
Section two:
explains how we fund our activities. The detail of how we fund our activities is set
out in our prospective funding impact statement found in Section 2.2 of this volume.
Our finances
This should also be read in conjunction with the prospective financial statements
in Section 2.3.
Key proposed financial parameters for 2021-2031
$MILLION
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 TOTAL
Total capital
investment
2,871
2,942
2,977
2,936
3,142
3,435
3,340
3,362
3,314
3,486
31,806
Total operating
expenditure
4,673
4,808
5,008
5,269
5,465
5,685
5,899
6,121
6,301
6,511
55,741
Average general
rates increase
5.00% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%
Rates revenue
2,122
2,253
2,385
2,479
2,605
2,737
2,877
3,023
3,177
3,334
26,991
Total operating
funding sources
4,498
4,798
5,125
5,385
5,672
5,970
6,291
6,619
6,873
7,160 58,390
Total assets
61,067 63,891 67,467 70,381 73,967 77,970 80,322 84,419 89,363 91,595
Total borrowing
11,745 12,783 13,340 13,828 14,292 14,966 15,518 15,945
16,179 16,343
Total equity
43,883 45,651 48,188 50,435 53,324 56,094 57,737
61,181 65,209 66,989
Debt to revenue ratio* 272%
277%
269%
262%
260%
258%
253%
247%
241%
236%
*This is calculated using adjusted revenue and adjusted debt figures using the Standard and Poors methodology
Capital investment and debt levels
Capital expenditure is for purchasing, building, replacing or developing the city’s assets (for example
roads, libraries, parks and sports fields).
Over the next 10-years, our total capital expenditure programme is planned to be $30.5 billion, in
addition we plan to invest $1.3 billion in City Rail Link Limited. The total capital investment for Auckland
over 2021-2031 is projected to be $31.8 billion.
DELIVERED BY:
$ BILLION
Auckland Council
7.4
Auckland Transport
11.4
Watercare
9.7
Auckland Unlimited
0.5
Ports of Auckland Limited
0.7
Eke Panuku Development Auckland
0.8
Total capital expenditure
30.5
Investment in City Rail Link Limited
1.3
Total capital investment
31.8
31
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32
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .1 FINANCIAL OVERVIEW
The following table shows how we plan to fund our capital expenditure and other capital outflows in
In the middle and outer years of the plan, our debt to revenue ratio is projected to move downwards as
2021-2031.
we recover from COVID-19 revenue impacts and move towards fully-funding depreciation. These factors
Capital expenditure and
result in higher revenue figures and lower debt figures leading to the ratio dropping over time.
10-year
other outflows
Funding sources
10-year
Budget
Budget
$ BILLION
2021-2031
$ BILLION
2021-2031
Operating expenditure and revenue sources
Growth
8.9
Capital subsidies
6.0
It is forecast that the Auckland Council group will spend $55.7 billion in operating expenditure over the
Service level improvement
9.2
Development contributions
2.7
next 10 years. This covers the council’s day-to-day operations and services, from collecting rubbish to
maintaining parks and issuing building consents. It includes costs related to the capital expenditure
Renewals
12.4
Asset sales
0.9
programme such as interest, maintenance and depreciation (a non-cash cost).
Investment in City Rail Link Limited
1.3
Operating cash surplus
16.3
Capital investment:
$31.8
Borrowings
5.5
The $58.4 billion of operating revenue sources covers $42.1 billion of cash operating expenditure,
Total
31.4
leaving a surplus of $16.3 billion to fund capital expenditure.
Weathertightness claims
0.2
Operating expenditure
10-year
Funding sources
10-year
Other
-0.6
Budget
Budget
$ BILLION
2021-2031
$ BILLION
2021-2031
Total
31.4
Staff
11.2
Rates
27.0
The continued investment in Auckland will see us increasing council debt from $11 billion to $16 billion.
Interest
5.4
Fees and user charges
21.1
Our Financial Strategy sets a limit on the council’s borrowing, to maintain debt at a prudent and
Other
25.5
Subsidies and grants
4.1
sustainable level. Previously, this limit was set to 270 per cent of revenue.
Sub-total
42.1
Other
6.2
The primary financial impact for council of the COVID-19 pandemic is a projected revenue shortfall
Depreciation and amortisation
13.6
of around $750 million over four years compared with updated projections pre-COVID-19. This has
Total
55.7
Total
58.4
a direct impact on our debt to revenue ratio through lower revenue and an indirect impact through
increased borrowing to cover the shortfall. To attempt to maintain a ratio below 270 per cent for
Balanced budget and funded depreciation
all years of the plan would require cuts to services and investment that we think would have an
unacceptable impact on the community.
The Local Government Act 2002 requires that each local authority ensures that each year’s projected
operating revenues are set at a level sufficient to meet that year’s projected operating expenses.
We consider that, after working with our credit agencies, we can prudently raise our debt to revenue
Additionally, however, it provides that a local authority may set projected operating revenues at a
ratio limit to 290 per cent for the next ten years. However, we need to keep a careful eye on our interest
different level if it resolves that it is financially prudent to do so.
cost levels, annual cashflow position and the degree of flexibility in our capital programme.
Our approach to the balance budget requirement is set out in our Financial Strategy found in Section 1.2
Debt to revenue ratio
of Volume 2.
As shown in Section 3.3 in Volume 2 of this 10-year Budget, we plan to balance our budget under this
300%
measure for each year of the plan.
290%
We are also moving towards a long-term policy of fully funding depreciation. Fully funding depreciation
280%
from rates and current revenue would mean that on average we are not relying on borrowing to
270%
fund asset replacement expenditure over the long run. This represents a sustainable approach, as it
260%
ensures that operating expenditure is covered by operating revenues and borrowing is only used to
250%
finance investment that will deliver enduring benefits. The legacy councils only funded 63 per cent of
240%
depreciation and our previous policy was to progressively move to 100 per cent by 2025.
230%
The impacts of COVID-19 disruption on our revenue streams for the first three years of this 10-year
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
Budget have caused us to revisit our existing policy for funding depreciation. Given the projected short-
term nature of this revenue shock and our intention to maintain existing key service levels through
Debt limit
Long-term target
10-year Budget Projection
this period, we consider that this is a prudent and sustainable approach. Given this, we have amended
To help mitigate the impact on debt, the council considered its asset portfolio. Asset recycling was
the Revenue and Financing Policy (refer to Section 3.1 of Volume 2) to reflect that it will take three
a key lever as changing asset ownership has minimal impact on jobs and employment compared to
additional years before we are fully funding depreciation (i.e. 2028).
spending reductions.
We plan to increase our asset recycling target over the next 3 years from $20 million to $70 million each
year, while also rephasing some of the 2020/2021 asset recycling target into the middle years of this
plan. This is on top of other asset sales programmes across the group including those undertaken by
Eke Panuku’s Transform and Unlock programme and Corporate Property’s optimisation strategy.
33 |
TE TAHUA PŪTEA TAU 2021-2031
34
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .2 PROSPECTIVE FUNDING IMPACT STATEMENTS
7
2
0
2
7
0
0
0
,921
,916
,339
,109
,140
,818
,492
,720
P /31
,04
,740
,89
,927
7,813
,940
,358
,667
76,210
9,54
7,662
7,80
P /31
6,999
2,443)
,740)
LT 30
318
416
607
58
586
272
164
64
88
LT 30
864
(5
20
3,015
2,725
7,15
4,220
4,80
2,351
1,0
1,04
20
1,573
3,440
,351
(2
14
0
0
0
53
21
0
,798
,511
0
,118
,120
,291
P /30
,704
,082
,900
,554
,672
,337
,436
,907
,993
,456
9,4
,337
,793
P /30
8,291
20,4
,337)
LT
311
417
72
598,
43
0
4,091
597
607
273
233
LT
927
342
2029
2,864
2,608
6,873,009
4,688
2,184
1,158
1,0
2029
1,377
3,
,184
(2
4
0
0
0
1
59
0
,126
,12
,132
,191
74
P /29
,494
,862
,927
,665
,829
,020
,645
,395
6,115
,933
,800
,243
,538
70,
P /29
2,0
9,138
,588)
9,888
,645)
LT
303
415
72
607
598
15
604
27
426
LT
889
0
(1
2028
2,720
2,499
6,618
3,973
1,0
4,572
2,046
1,323
2028
1,4
3,36
,046
(2
8
0
7
0
0
7
0
,106
,773
P /28
,533
,685
,050
,092
,089
6,759
,20
,598
,704
,390
,837
,39
,39
,907
,855
,918
,901
37
P /28
9,961
LT
41,260
295
411
73
59
591
650
277
551
968
LT
2027
2,581
2,333
6,291
3,826
4,417
1,873,504
1,517
2027
1,006
1,363
3,390
,873,504)
(1
1
73
0
79
0
7
0
0
0
0
,142
,931
,801
,015
,161
P /27
9,14
,84
9,666
,589
,958
,250
6,436
,230
,886
P /27
,899
9,192)
7,125
,230)
LT
47,4
289
407
70,0
57
567
667
277
673
84
03,895
935,242
LT
10
(5
2026
2,4
2,175,9
1,017
1,483
5,96
3,718
4,28
1,683
1,7
2026
3,38
,683
(1
9
8
0
7
7
0
0
93
0
,521
,371
,173
,15
,916
,771
,521
P /26
,768
,996
,46
,29
,999
,04
,249
,948
,230
,867
66
4,048
8,251
P /26
9,4
,840)
8,251)
LT
285
404
558
539
634
280
464
102
82,270
908
LT
909
tement
2025
2,318
2,038
5,672
3,62
4,164
1,50
1,4
2025
1,323
(160
2,990
,50
(1
4
12
8
2
76
0
0
0
4
0
,72
,515
498
,711
,601
,61
411
P
,463
,899
,30
,810
7,183
,785
,705
,537
,321)
4/25
7,295
0,4
12,52
3,9
4,922
P
68,
,810)
LT
281
388
90
61
621
4/25
555
52
34,876
036,
27
48
135
831
LT
910
1,111
(20
202
2,19
1,
5,385
3,5
1,519
4,
1,348
202
2,8
,348
(1
ct Sta
52
0
3
0
0
74
0
,551
,291
,151
P /24
,236
,834
5,8
4,915
,367
,238
,605
4,310
,52
9,339
,546
,666
4,629
P /24
,038
,508
14,115
6,094
,384
LT
302
382
50
52
510
4,310)
64
268
557
173
49,0
72
LT
17
2023
2,082
1,781
5,12
3,340
3,850
1,27
1,6
2023
1,007
1,001
2,923
,27
(1
74
0
0
0
5
7
7
0
23
,160
,944
,250
,827
,209
,484
,8
,022
842
,864
,010
247
,251
,939
,238
,67
42
23
,85
,034
,048
,319
,685
,010)
LTP
29
280
402
510
476,
529,
265
106
724,
LTP
894
867
108
440
2022/
1,972
1,602
4,797
3,225
3,701
1,096
1,037
1,938
2022/
3,034
,096
(1
0
0
0
0
22
,537
,885
,773
,912
5,721
,371
,558
,758
,123
557
8,316
,637
,283
9,883
8,911
22
,850
,435
,006
LTP
253
405
496
445
24,
9,883)
88
474,305
247,898
910
132
67
LTP
798
903
249,253
2021/
1,868
1,467
4,498,199
3,162
3,60
1,765
2021/
2,655
(88
unding Impa
32
78
0
2
0
0
0
lan
,109
,626
,125
,619
,638
,013
lan
,121
,010
,791
/21
4,0
,294
9,0
,986
,043
,66
,463
,698
,694
,043
/21
,654
,506
91
,463)
237
411
451
136
390
747,930
497
291
1,74
1,218
435
453
909
926
4,056
3,391
664
e F
2020
2,940
1,890
2020
2,554
(664
Annual P
Annual P
d
e
oses
ur
olidate
endit
ectiv
xp
estments
enalties
ations
erating purp
ating funding
vice
ves
oup cons
apital e
om inv
er
ating funding
estments
osp
er
eser
apital funding
ating funding:
apital funding
er
el of ser
apital funding
apital funding
e:
ating funding:
GCs, rates p
om sale of assets
A
eceipts
apital funding:
ur
er
ease) in debt
d c
ease) in r
ease) in inv
ations of op
apital funding:
s of c
xisting assets
ations of c
ear ending 30 June
cr
ating funding
eds fr
ate
cr
cr
ce
endit
ear ending 30 June
erating funding applic
lic
dic
xp
lic
s of op
d rates
er
oce
ove the lev
ations of op
s of c
ation of c
et additional demand
2.2 Pr
ce
est and dividends fr
lic
lus (deficit) of op
ce
elopment and financial contributions
ease (de
lic
eplace e
ease (de
ease (de
lus (deficit) of c
uckland Council gr
es and other r
yment to staff and suppliers
ther op
oss pr
ther de
A
$000
Financial y
Sour
General rates, U
Targete
Subsidies and grants for op
Fees and charges
Inter
Local authorities fuel tax, fines, infringement fe
Total op
App
Pa
Finance costs
O
Total app
Surp
Sour
Subsidies and grants for c
Dev
Incr
Gr
Lump sum contributions
O
Total sour
App
Capital e
- to me
$000
Financial y
- to impr
- to r
Incr
Incr
Total app
Surp
Funding balance
35 |
TE TAHUA PŪTEA TAU 2021-2031
36
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
7
8
7
0
0
0
0
0
0
69
98
49
94
0
0
0
P /31
,970
,338
,734
,89
1,170
,660
,180
,721
,246
,8
,166
P /31
,109)
,65
LT 30
8,954
190
LT 30
87,057
20
272
67
495,52
587
(13
206
3,333
2,725
1,003
8,511
1,246
1,703,4
2,783
6,511,4
20
2,000
1,9
1,780,4
1,780,4
1,780,4
3
14
67
98
98
37
52
52
P /30
,167
,181
4,201
,435
,584
,665
1,134
,918
,70
,775
,061
,0
P /30
,109)
,928
0
,721)
,233
LT
6,498
3,876
6,902
187
89,4
LT
2029
273
491
597
20
3,17
(13
2,608,5
1,02
666
1,213
1,612
2029
1,724,0
(472
8,242,0
2,6
6,301
1,941
1,927
1,724,
2,77
2,304
4,028
9
0
7
81
90
87
P /29
,865
,133
,889
,114
,251
,031
,211
7,930
1,0
,600
,295
,286
,283
,454
,56
P /29
,109)
,398
,68
LT
276
6,498
184
LT
9,922
53,524
53,524
2028
67
48
598
(13
196
3,022
2,499
1,019
2028
7,983
1,183
1,548
2,606
6,120
1,863
1,84
1,6
1,6
1,790,6
1,790
3,444
7
0
0
39
36
33
91
P /28
,110
,093
,836
,361
,515
1,371
,15
224
1,0
,761
2,217
,439
,07
P /28
,109)
582
,662
,920
,920
,413
,413
LT
61,4
81,0
183
91,
LT
23
23
2,333
2027
168
2,876
277
664
484
1,15
591
(13
2,333
1,0
7,699
1,4
2,4
2027
5,899
1,800,6
1,787,
1,618
1,618
1,64
4
7
0
4
7
4
0
00
45
5)
P /27
,67
,121
5,731
,88
,77
,738
976
,12
14
1,4
,207
,79
,007
,977
P /27
,167)
,397
,926
,27
,651
0,231
LT
3,842
2,58
2,580
179
LT
2026
277
643
479
(13
149
2,734
2,175,9
1,07
7,390
1,125
1,398
2,41
568
2026
1,227
5,684
1,705,
1,691,977
1,54
1,54
1,543
(316
2,77
0
1
78
8
4)
0
920
84
70
70
P /26
,081
,37
,249
,217
1,561
,416
,750
,64
6,601
,694
,522
,20
208
P /26
,22
,065
,919
,919
,389
LT
38,6
619
17
LT
7,9
131
42,4
42,4
2025
280
475,340
540
591,
(13
2,602
1,101
2,038
1,0
7,056
1,300
2,345
1,446
5,465
1,
2025
1,57
1,446
1,4
1,4
2,889
12
1
1
2
2
2
0
87
25
P
776
,195
650
4/25
,226
,853
,032
1,808
,900
,955
,534
P 4/25
,54
,090
,45
,45
,920
,920
,372
LT
4,922
9,366
,992)
611
LT
110
202
27
462
175,8
524,
(11
899
2,475,
1,900,4
1,010
899
6,737
1,084
1,232
2,251,74
202
5,26
1,468
1,456
1,346
1,346
2,246
e
2
3
1
7
91
ur
P /24
,967
,236
,545
,093
,917
820
150
,822
,803
,906
,64
,120
/24
,146
,86
,815
31,4
2,081
8,29
P
,763)
3,948
,948
,654)
tements
LT
511
86,857
LT
102
2023
268
571
458
172
(10
76,094
2,380
1,781
1,0
6,495,
1,062
1,156
2,104
5,00
1,4
2023
1,455,52
1,4
1,37
1,373
(292
1,162
2,536
endit
5
2
9
9
5
2
0
0
0
xp
23
,825
,498
,25
,985
,660
74
,918
,329
,44
,101
,594
,973
,446
,472
23
,477)
,99
,05
,943
,943
,37
,37
,313
LTP
2,424
166
LTP
82
2022/
931
265
533
453
477
(10
630
630
2,248,52
1,602
6,038
1,038
1,105
1,137
2,020
2022/
1,137
1,768
4,808
1,230
1,219
8
8
0
4
16
22
,084
,911
,07
897
,267
673
22
9,821
,53
,277
,891
,8
7,437
,884
,211)
,443
,868
,868
,526
,526
,39
LTP
2,807
0,463
70
LTP
65,575
2021/
1,467
880
247,
496
44
17
44
989,654
2021/
(10
913
913
199
199
1,113
evenue and e
2,117
5,662
1,021
1,062
1,9
979
4,672
e r
0
lan
lan
/21
,293
,627
,747
,698
,564
,921
2,152
,868
,546
,289
,640
,533
,380
,388
/21
,223
,458
,458
,661
,061)
,600
76
4,866
3,48
5,201
8,681
31
4,058
864
136
409
158
577
577
2020
1,9
1,218
435
958
1,051
1,822
454
60
2020
60
2,672
(326
2,92
Annual P
5,048
4,445
Annual P
2,346
e financial sta
ehensiv
d
e
e)
ur
e)
ctiv
ains
ur
e g
le to:
olidate
ciates and
endit
endit
xp
, plant and
ectiv
efor
xp
onsorship
/ (e
ttributab
erty
, plant and
evenue
/(e
ed using effe
op
e income tax
erty
e r
tement of compr oup cons
evenue
op
evenue
osp
enses
/(deficit) b
efor
e r
enue
e r
xp
e
fter income tax
ehensiv
e sta
d
ev
ur
lus
ense
uckland Council
enue measur
e
enefits
es
xp
ehensiv
evaluation of pr
ehensiv
endit
s
ur
ectiv
enue
ev
ur
erating e
fter income tax is a
ev
xp
/(deficit) b
/(deficit) a
evaluation of pr
d assets
evenue
yee b
ent
yers of A
est metho
eciation and amortisation
ating surp
lus
2.3 Pr
e of surplus/(deficit) in asso
osp
t 30 June
elopment and financial contributions
endit
er
t 30 June
lus
lus a
evenue
ther r
ther finance r
ther op
Pr uckland Council gr
ther compr
A
$000
As a
R
Rates
Fees and user charges
Grants and subsidies
Dev
O
Veste
Finance r inter
O
Total r
Exp
Emplo
Depr
Grants, contributions and sp
O
Finance costs
Total e
Op and losse
$000
As a
Shar joint v
Surp
Income tax e
Surp
Surp
Ratepa
O
Net gain on r equipment
Tax on r equipment
Total other compr
Total compr
37 |
TE TAHUA PŪTEA TAU 2021-2031
38
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
0
3
17
7
2
,517
,115
,632
,621
,103
,431
270
,743
,794
,831
,233
,851
,513
,372
,156
P /31
,000
,632
,760
,25
,982
,365
3,000
,000
72
3,000
,000
2,068
,000
,000
,000
,000
18,
P /31
68,4
6,251
9,68
2,216
LT 30
67
36
100
789
88
429
33
1,148
603
LT 30
158
319
163
,15
,84
,415
20
1,055
1,055
1,943
,35
1,977
,539
,594,885
20
1,4
1,748,87
3,445
1,683
4,392
,989
,732
21
,989,372
84
90
91
14,594
21
24,605
66
26
18
66
1
0
83
29
,70
,722
,822
,516
,513
,633
,273
,139
,128
,193
,102
,972
P /30
,000
,399
,822
,829
,230
,543
3,000
,000
,429
,000
,984
,000
,840
,098
,202
,000
,646
,000
,000
70
3,000
64
17
1,38
P /30
9,0
38
6,089
7,345
15,4
8,972
LT
100
762
88
65
429
,104
1,117
0
33
603
,27
LT
154
1,731
296
168
,788
,208
,732
,061
2029
1,091
1,091
1,939
4,186
,20
82
1,994
1,4
3,366
1,683
88
2029
89,363
14,44
20
24,154
65
26
17
21,4
65
0
0
5
7
38
5
2
49
4
94
35
97
97
,17
,17
,731
24
,733
P /29
,000
,995
,39
,629
,926
,693
,759
,465
,755
,739
,242
3,000
,000
,480
,48
,000
,000
,984
,000
,000
,06
,000
69,315
3,000
63
51,6
15
6,01
P /29
6,
5,9
5,306
9,5
0,739
LT
12,2
19,4
39
100
736
88
43
0
111,4
429
33
603
0
LT
150
296
17
,238
,180
,337
,18
2028
1,043
,264
,37
1,043
1,936
1,0
1,70
,909
,732
19,
77
2,
1,399
1,683
83
2028
3,5
84,4
3,329
14,238
19
23
61
26
15
61
96
4
8
90
,581
,772
557
,199
,139
,162
P /28
,000
,328
,956
,802
,658
,75
,667
,435
,366
3,000
,000
3,000
,086
,264
,528
5,086
,000
,880
0,321
7,272
,000
,000
,254
,000
,885
,000
14
P /28
5,779
7,219
LT
67
15
41,4
100
707
88
60,
985
33
98
60,6
429
,27
99
603
LT
146
293
,85
182,424
,585
,736,52
,682
2027
1,931
,336
3,313
,334
,732
,322
73
2,029
1,368
1,6
79
80,321
2027
3,250
13
1,683
19
22
57
26
13
17
57,736
4
4
7
5
624
,77
,331
,138
369
,195
P /27
,000
6,37
,706
,582
,65
,550
,277
,537
,436
,759
3,000
,000
3,000
,035
,000
,288
,000
,000
,405
,943
,830
,000
,000
37
51,114
7,067
13
4,792
9,564
P /27
5,644
2,426
4,19
LT
100
67
88
66,
974,772
974,772
58
43
429
,9
965
33
603
LT
143
294
190
,094
,333
,09
2026
1,927
70
2,04
,96
2026
1,371
1,601
3,192
,364
1,683
3,144
,68
,732
,028
76,99
77
13
18
21,875,
56
26
12
17
56
2
7
1
49
5
86
31
6
,318
,251
,318
,318
14
,102
,154
P /26
,000
,682
,534
,433
,465
,343
,739
,992
,963
3,000
,000
3,000
,000
,950
,000
,4
,804
,000
,500
,000
,000
,809
,963
12
P /26
6,192
5,52
8,865
2,84
LT
65
84
55,
100
642,7
88
986
986
429
922,74
33
45
,981
911
603
LT
140
529,4
27
,762
198,52
,605
,64
,323
,138
2025
1,
1,289
1,
,732
,453
66
2,064
2025
3,037
1,683
2,67
16
72,980
73,966
12
17
20
53
26
10
53,323
9
3
6
84
42
4
4
81
,17
P
,000
,250
,000
,037
,94
,236
,52
,000
,206
,509
,337
,000
,058
,307
,940
,083
,204
,000
,296
,566
,000
,67
,306
,602
,000
,993
,574
4/25
3,000
3,000
11
P 4/25
5,4
7,82
7,800
LT
47,325
34,574
65,5
100
612
88
64
102
973
973,236
52
79,6
429
862
33
603
LT
138
255
,34
205
202
1,920
,356
2,173
1,203
1,4
1,683
,045
,946
,732
8,9
,434
63
202
2,901
2,54
69,407
70,381
12
17
19
50,4
26
14,736
50
81
4
8
2
6
,781
,816
,816
,171
855
,816
,171
,710
P /24
,000
,249
,786
,52
,655
,350
,203
,385
,029
,77
,202
,37
,826
3,000
,000
,000
,000
,684
,500
,000
,000
,000
,202
62
3,000
52,7
14
P /24
4,492
5,331
6,48
8,298
LT
10
27,547
100
615
88
135
54
233
429
1,918
823
33
603
LT
1,141,
135
21
,912
,188
,188
2023
1,007
1,007
2,107
,458
,466
1,4
2,791
2,437
,48
,27
,732
,909
60,5
2023
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1,683
7,546
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67
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19
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26
13
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4
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23
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742
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3,000
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3,000
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9,792
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63
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18
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5,122
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936
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1,683
1,960
17,184,
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2,713
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12,978
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8,9
5,228
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4,582
100
543
56
49,950
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111
884
112
884
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440
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1,863
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2020
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59,126
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2020
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ed tax liabilities
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y
ves
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ent liabilitie
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entories
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estment pr
estments in asso
yables and accruals
ovisions
yables and accruals
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ther financial assets
ther financial assets
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Total e
39 |
TE TAHUA PŪTEA TAU 2021-2031
40
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
0
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1,556
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53,524
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1,6
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3,809
2,580
2,58
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0,232
4,19
LT
32
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LT
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2026
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1,54
1,54
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16
1,227
1,227
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2026
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2,77
26
26
10
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56
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70
70
70
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3,809
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41,309
42,4
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2025
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8,965
1,446
1,446
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1,4
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16
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26
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7,546
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1,373
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LTP
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630
630
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630
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43
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26
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41 |
TE TAHUA PŪTEA TAU 2021-2031
42
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
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er
e of the gr
ciates and v
verdr
quivalents and bank
quiv
-contr
enting gr
ed for the p
CA 2009 defines substantiv
ating a
enue
e mor
dy is r
GA
er
ev
, plant and e
om in
es
ctiv
om CCO stat
om op
vesting a
owings
owings
om financing a
ease) in c
ash e
ash e
uckland Council) Act 2009 (L
oup and council do not intend to up
e financial statements ha
vice or activity on b
e Sta
ting
ed
cr
ets Conducts Act (FMCA) 2013
d fr
, plant and e erty and intangible assets
erty erty and intangible assets
w fr
orr
orr
tement of signific
sumptions thes
or
er
om op
ed
w fr
op
op op
xternal parties
w fr
urn. Accor
efund/(paid)
om in
flo
om financing a
/(de
afts
e council
y obje
he Gr
om rates r
om grants and other ser
eceiv
erty
om Sale of other financial assets
om community loan r
om b
ep
s to mak
et
ectiv
ant s
ectiv
s fr
s fr
s fr
ash and c
s to the pr
s that pr
. T
w
eceiv
w
op
w
ease
ash and c
esults achiev
verning Bo
xempte
verdr
yer
oup and council ha
osp
ash inflo
eds fr
eds fr
ash out
eds fr
uckland Council Gr
yment of b
ash inflo
alents and bank o
osp
t 30 June
est r
est paid
t 30 June
ceipts fr
ceipts fr
yments to suppliers and emplo
estment pr
chase of pr estment pr
oce
estment in joint asso
oce
oce
ening c
vernment (A
ual r
ecasting as
ction 4(1) of the L
Pr uckland Council gr
asis of r
uckland Council (the council) is a lo
A
$000
As a
Cash flo
Re
Re
Inter
Dividends r
Pa
Income tax r
Inter
Net c
Cash flo
Sale of pr inv
Pur inv
Acquisition of other financial assets
Pr
Inv
Advances to e
Pr
Net c
Cash flo
Pr
Repa
Net c
$000
As a
Net incr equiv
Op overdrafts
Closing c bank o
Note
Note 1: Sta
B
he A
he primar
ntity accounting standar
he Gr
he pr
he Go
A
Go
Financial Mark
T
substantiv
consider
ratepa
T
financial r
E
amendments for the New Z
T
act
material
T
the financial statements ma
T
for Se1 of a signific entities e
43 |
TE TAHUA PŪTEA TAU 2021-2031
44
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
e
/
e
30 31
*
*
sets,
20 20
100
100
100
100
ectiv
olicies
es
d
centag
/
T.
osp
y. As
*
*
ating
s of the
Per ownership %
2021
100
100
100
100
d pr
2020
er
om the
er
acilities
vernment
olidate
s
s
s
s
s
No
, plant and
CCO
Ye
Ye
Ye
Ye
Ye
ed material to
olidate
e cons
enefit fr
om the date the
’s
ocal Go
erty
en memb
op
ectations as well as
e cons
vices.
xp
ol of the subsidiar
etwe
e consistent with the p
, is the sole
e e
e consider
e able to b
sets of Regional F
ses of pr
e thes
yables, which include GS
ur
ator for thes
ectly to the
epar
ses contr
d statements fr
actions b
vern their financial and op
s the as
ans
CA 2009 and the L
ed on fut
oup lo
olidate
d entities ar
ectly or indir
e a dividend or distribution of surplus
GA
ed to pr
owth. Optimises the council
, certain clas
ds; and
olle
y facilities, and other ser
ables and pa
d as a compar
erio
cision making to b
cial gr
eceiv
orts and entertainment activities and
, the L
alue
ower to go
e.
eceiv
elating to tr
ation is bas
ovide
ur
osition us
e, sp
wned subsidiary of the council
sets.
ds;
d in the cons
CA 2009 as if the council is its sole
y not r
vern de
es when the gr
uckland.
GA
egion.
GA 2002
d.
een pr
ed at fair v
olicies of contr
s its as
ening p
, a 100% o
oughout the p
xcept for r
ash flows r
wing:
td
alue;
oup has the p
e include
e state
llo
vices in A
uckland r
eight hubs, cruise industr
y thr
T), e
ower to go
y and ceas
esidential and commer
, fr
e, heritage, leisur
wis
ur
ear ar
d financial statements to bring alignment of subsidiaries with the
een measur
sumptions. Applic
y 2020 has b
om the op
es, and c
able p
e and ser
eated under the L
estrictions on the ability to acces
.
ax (GS
dating r
s fr
ens
ur
uckland Council ma
ve b
ed at fair v
s other
cis
he accounting p
olidate
ant r
ed when the gr
xp
xer
y. T
7, A
, e
omotion in the A
argo handling
d consistentl
vices T
cumstances. Judgements and estimates which ar
wnership
e differ
actice (NZ GAAP), the L
ve e
aying any dividend or distributing any surplus dir
y measur
s, unles
ver the subsidiar
ect o
ents pr
e signific
y with PBE Accounting Standar
ativ
ort infrastruct
y ha
ection 5
ol o
erates the water and wastewater infrastruct
om p
e ar
ed:
uckland Council and its CCOs and subsidiaries.
ol is achiev
entl
osed of during the y
oup comprise the fo
e is no dir
equentl
een applie
ods and Ser
ecast information.
es
etual succession and is tr
epar
uckland community in arts, cult
ve b
y the council on 30 Jul
ol the subsidiar
erp
uckland Council is unable to acces
. Contr
e made to the cons
actions, income
e ther
ovides container bulk c
, A
e pr
d b
d Accounting Pr
4 and compl
e of Go
ed or disp
ans
een subs
est million dollar
-date for
ecasts of A
oup
cations. Contributes to accommo
-to
ate with p
ve b
olicies ha
es judgements, estimates and as
or
xclusiv
oup obtains contr
es to contr
tionship wher
elopment, tourism and ev
enues for these activities.
vices and owns and op
uckland Council on 29 June 2021
opriate to the particular cir
st up
y the gr
olling entity pr
y acquir
s within the Gr
ela
ort which pr
rust is a charitable trust of which Auckland Unlimited L
d.
y Accepte
d e
equir
s p
CA 2009 section 57(1)(b) fr
sumptions.
d b
all
/2021 adopte
e of r
ody corp
GA
ol its subsidiaries, ther
d to the near
e financial statements.
, adjustments ar
dy of A
oup include:
sing balance in this compar
olle
oup ceas
tur
uckland Council) Act 2009 s
e state
oup balances, tr
ort network and manages the transp
conomic dev
s, as appr
elopment of urban lo
uckland’
erty which ha
ectiv
es
, the contr
ounde
he clo
ol
a-gr
olidation.
ort is a b
.
vices Limite
d.
op
y and na
omotes the engagement of the A
osp
edev
ecasting as
ed on the mo
, or if not
cts for e
estricted by L
rust is a charitable trust
e financial statements ar
ante
egins when the gr
es of a subsidiar
ransp .
erates A
oje
ealand Gener
xcept for certain financial instruments which ha
2 Pr
verning Bo
ctivit
ortfolio
e Ser
angements
.
y b
e is r
vernment (A
ectiv
ens
.
car
s (NZD), r
ant for
tion
eholder
orts and pr
car
’s ability to contr
quipment
e entities contr
xp
erty p
elops, owns and manages the v
osp
gency Budget) 2020
uckland T
tion
op
ovides water and wastewater ser
Principal a
wns the public transp
shar
wns and op
Regional Facilities Auckland T trustee.
ater
ater
vices Limite
st basis, e
vestment pr
y the Go
erformance of the gr
olling entity
olicies. All intr
O
* Auckland T
Manages pr
Facilitates the r pr
O
Supp dev
*
Pr
W council
ation
d in full on cons
ocal Go
d pr
mer
e CCOs and subsidiarie
orting and Prudence) Regulations 201
d b
lida
, and e
ol until the date the gr
e Ser
al co
d financial statements include the for
d
e)
car
epar
erience and other factor
e informa
der to establish contr
ort
d
acilities A
olidate
car
dance with New Z
ealand dollar
y with PBE FRS 4
ation of the financial statements r
xp
, plant and e
e financial instruments
ation of joint arr
vices
estrictions
e financial statements. T
y the contr
rust and W
ater
e adopte
ativ
ransp
elopment
rust
ater
uckland Council
erty
ativ
olidate
e eliminate
uckland
acilities
e Ser
epar
al e
sific
d b
ant r
e cons
inancial Rep
standing the p
op
ovisions and financial guar
ectiv
olidation of a subsidiar
’s accounting p
d
u Dev
d
car d (W
y compl
y wer
om W
fr
asis of pr
• in accor
(F
• on a historic
equipment and in
• on a going concern basis and the accounting p
• in New Z
• Pr
• Deriv
• Pr
• Clas
osp
asis of conso
oup gains contr
oup
oup ar
uckland T
uckland Unlimite
uckland Limite
uckland T
ater
uckland T
• Regional F
• In terms of the L
B
hes
he
he
he pr
he Annual Plan (E
he cons
olicies. In or
T
T
T
All items in the financial statements ar
T
historic
under
Refer to note 2 for signific
Compar
T
pr
financial statements which is bas
B
T
CCOs and subsidiaries ar
p
activities of the other entity
Cons
liabilities, income
gr
adopte
gr
gr
The substantiv
Name
A
A Limite
Panuk A
Ports of A Limite
Regional F A
W Limite
Signific
Despite A
A
45 |
TE TAHUA PŪTEA TAU 2021-2031
46
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
ual
y
ant
ed
d
e
he
.
yees.
este ed.
e
. T
enue
eceiv
y of fuel
ev
, ar
es and
enue arises
’s signific
qual
elopment.
eceiv
enue
ev
e such
ev
ur ers for the ovide the
d as an interim
y 2022
ort of containers.
elop
elopment. V
sue
an pr
osition when r d and an e
y accrue to emplo
e of judgements
e of the dev
ur
cts that impact the
as is
ant impact on the
oup c
d on the basis of the act
d when the suppl
-out of derivativ
sur
ection.
enue comprises rates and
eceivable.
educe
d conditions, if any
y course of business.
oje
clo
change transaction r
ev oup and the council
oice to dev
eginning 1 Jul
vernment (Rating) Act 2002
orting infrastruct
d using the
ction and transp
y close
ed or r
ater and wastewater r
ecognise
eginning on or after 1 Januar
exchange transaction r
d and the nat
ear b
oval for pr
ocal Go
eceiv
urn the funds if conditions of the grants
e as a condition of dev
ecognise
d. W
eceivable.
ds b
exchange r
et
ur
eading date to the end of the month ar
enue is r
d in the dis
y rates. The gr
ash r
oint at which the gr
ed at the fair value of the asset r
erio
urn. Non-
d to issue an inv
esult in any signific
oups of Activity s
et
d b
enue is r
d.
ovide appr
ense and liability when the
ecific transaction assesse
cts. Rev
xp
y and when the attache
d.
esulte
d losses on the earl
oje
’s financial y
d in the statement of financial p
, and the p
orting p
exchange transactions. Ex
y funde
al, management applies judgment when estimating
qual value. Non-
’s costs of building supp
es. Rev
ods wharfage, and colle
ying amount of the liability is r
e of consent grante
ctions.
ealise
oup
d to customers in the ordinar
om the last bill r
ep
ort pr
esent value of c
ecorde
oup oup is entitle olicy
centage of water use clic
d as an e
qual value in r
arr
er
est metho
inancial Instruments, which w
y r
ce consents pr
cision to pa
y e
e partiall
d criteria.
e for r
vices of e
erthage, go
e inter
he adoption r
ear in accordance with the L
d, the c
esour
oved conne
ecognise
eginning of the Gr
d on a p
.
ecifie
d in the gr
ctiv
e initiall
d amounts fr
e r
. T
ed at the pr
out of derivativ
eading is cy
d their de
ctiv
oximatel
er
d at the fair value of the amount r
he adoption will not r
xchange and non-
endent on the typ
d to fund transp
owing costs, net r
ods or ser
e is an obligation in substance to r
oint when the gr
ers who construct the infrastruct
e the dividend is establishe
e satisfie
oup and the council and is measur
orr
1. T
om e
y close
xchange, b
cte
e appr
elop
ovide
eceiv
ed for appr
eceivable.
enefits ar
ets the sp
ve advise
d b
emissions.
e pr
enue fr eceiv ovide go om activities that ar
elopment contributions p
d to the buy
ecific site, and r
eceiv
sedes PBE IFRS 9 F
SAS 4
erformance
d using the effe
ev
eadings. Unbille
ed or r
y pr
erty dev
d.
er
ed fr
op ed to the gr
om the earl
vices, ship e
SAS 1 and is effe
’s dev
ectl
ecognition is dep
’s right to r
olumetric charge base
ence to the stage of completion of the sp
eceiv
vice p
elopments to contribute to the gr
ovide
ation that me
oup
een passe
efer
yment is r
T) which is colle
ecognise
d sup
e their r
d at the later of the p
om pr
y 2022 and is adopte
er
en meter r
e pr
elate to a particular financial y d net of rates r
eceivable unless ther
d gains fr
ve b
y r
eceiv
ed fr
eceivable at balance date for water supplie
ving to dir
erty dev
etwe
d, b
d when consents ar
ve and other similar b
e state
op
oup and the council ha
ecome r
ecognise
ealise
eceiv
om marine ser
d when pa
vices to b
est rate swaps, amortise
y b
ovide
d. The timing of r
e r
ed and r
vice lea
his standar
erformance information at the b
ed charge and a v ead meters at balance date. As meter r
vices to a third party and r
ur
ecognise
ed in advance. As the conditions ar
oup and the council
enue fr e pr
efundable.
e of fuel (plus GS
eceipt of an applic
ements of PBE IP
enue is r
ev
ecific building works on a sp
ecognise
9. T
es and user charges deriv
ol of the asset is transferr
enue and r
eceiv
e statement of s
eceiv
d for new pr
ev
er litr
en PBE IFRS 9 and PBE IP
vice p
e non-r
equir
d rates and ar
vices ar
enue is r
er
d when the
yable on inter
ods or ser
e is such an obligation, the grants and subsidies ar
est r
ewards of ownership ha
ev
enue is r
ve, long ser
enses when the gr enses on r
ch 201
ectiv
e
oval for sp
etwe
ur
e charge
d when the gr
ev
xp xp
enue.
otpaths. Rev
orting r
osp
esolution of the council and r
d at the date of issuance of ratings notice and is measur
ecognise
ev
esents infrastruct d when contr
d amounts for unr
ortion of the total ser
endit
ovide go
y r
d.
est on debt and finance leases is r
op
egion at the fair value of the amount r
d as e d as e
ep
uckland Council (the council) r
om another party without ha
ement
e r
epr
d in Mar
eginning on or after 1 Januar
xp
erations includes r
ences b
s
y pr
ed as follows:
y b
d as r
ecognise
d when the ser
ovide appr
ation as these ar
egation of s
ecognise
d unbille
sue
gr
ectl
ecognise
enue.
ds b
e not met. If ther
oads and fo
enue r
enue is a combination of a fix
ort op
owth charge r
ecognise ecognise
e value fr
, r
ev
est metho
ev
d as a pr
uckland r
d standards
e
olicie
enue is r
ev
ecognise
e gr
e r e r
as is
erio
orting
oup) and A
ecognise
enue comprises inter
ev
verage water consumption of customers b
om p
ur
eceiv
enue is r
enue is r
ev
enue comprises the amounts r
d as r
ovide
ense, amounts paid or pa
ctiv
evenue and e
e set annuall
d and measur
ev
ev
e inter
ev
y a
xp
ed the differ
erformance r
e r
enue includes grants, subsidies, fe
gnition & measur
d asset r
onment or others. Consent r
ev
elopment contributions ar
vice for which the contribution was charge
ctiv
enue fr enue is r vice pr
eceipt of applic
y grants ar
est e
orting p
oup (the gr
eco
ater r astewater r
et effe
ement and ag
R
Rates ar Rates comprise general and targete
Rates r
Grants and subsidies ar and subsidies ar at fair value as grants and subsidies r amount is r
Dev as stormwater contribution in accordance with milestones set out in the gr ser
Veste asset r
Finance r effe
Dividend r
W W includes estimate the dail recognise
When the substantial risks and r
Rev Rev ser
Building consents pr envir
On r
Infrastruct
Regional fuel tax is a tax of 10 cents p occurs in the A
ep
vice p
d PBE FRS 48 in the pr
ecognise
er
ccounting p
ehensiv
ges
e
ed in managing funding. Inter
oup and the council dir
ransfer r e r
ods
ur
etionar
w and amende
enue
e for r
erformance Rep
ant a
discr
ater and
erations
permits
rev
oup and the council r enue. T enue ar
evenue
Consents
y grants and subsidies ar
y incurr
s
evenue
W wastewater
d but not y
ctiv
ev ev
Sale of go
Licences and
evenue
owth charge
Infrastruct gr
ectl
inancial Instruments
inancial Instruments w
sed and consider
vice P
ction, measur
d assets
d. Non-
uckland Council Gr
e
es
Port op
yee entitlements for salaries and wages, annual lea
tion of ne
Regional fuel tax
etionar
1 F
1 F
ses
eplaces the s
oup has adopte
ele
licy
tement of compr
p
at
ants and
evelopment
este
licy
ther r
Ty
R
Gr subsidie
D contributions
V
Finance r
Dividend r
Fees and user char
O
e
y of signific
Po
e sta
The A arises when the gr when the gr transfer r items of r
Po
Emplo
Discr satisfie
Finance costs include inter costs dir
ur
SAS 4
SAS 4
d. It is effe
he gr
yee
lementa
. T
ectiv
endit
enue
oup has as
oup financial statements.
ed in the s
osp
Exp
Imp
Standards issue
PBE IP
PBE IP
standar
gr
gr
PBE FRS 48 Ser
PBE FRS 48 r
2022
us
Summar
Item
Pr
Rev
Item
Emplo benefits
Grants and subsidies
Finance Costs
47 |
TE TAHUA PŪTEA TAU 2021-2031
48
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
d
ent
e
ve
y the
dge e
es.
cial
d
e
ent
om
e
d or
ecognise
enue
edit
eceivable.
eign
ence
ease
ofits will b
yments
ev
oking
e than 12
d shar
ase, the curr
vailable
e applie
e r
ecognition.
es) is r
d for cr
ose for which
d commer
ed tax is the
. The leases ha
ash flow he
ant incr
ears. Pa
d with for
, any cumulativ
erty
d under curr
d life of a r
ward-lo
ehensiv
d at an
ovide
elate
0 y
d in c
-r
d in the computation of
op
ciate
urity is mor
.
d on the differ
chy:
, in which c
ecte
d and unliste
e pr
oup is the bid price at
ort
ds. Deferr
en to lesse
xp
e financial instruments
dges.
d loss rates ar
ough surplus or deficit in
een signific
quity
erio
oup and the council appl
easonable and a
ction rates, ageing of
e base
CLs ar
es giv
ent and for
y.
ecte
e of timing of the default (a
obable that taxable pr
d gains and losses that wer
e, discounte edit enhancements that ar
y the Gr
ends on the purp
y in e
esidential pr
dge accounting
ectl
ver the e d on r
e has b
CLs ar
ectiv
om 1 month to 7
verdraft classifie
y in the surplus or deficit.
ovision for impairment.
ct curr
ash flow he
y in other compr
ciate
ectl
eceiv
ent when the mat
esp
om CCOs and p
efle
oses. Derivativ
ectl
ect of prior p
ents o
d in c
diatel
ation dep
onding tax bases use
ying fr
CLs). E
ecognition, E
y or indir
cial and r
verdue. Exp
curr
ccurs.
e, irr
ed fr
e or dir
esp
d dir
d at fair value thr
esp
d, less pr
eceivables, the gr
d to r
, the asso
ects to r
ectl
y the balance date. Income tax is charge ur
ys o
d imme
xp
osur
eceiv
xtent that it is pr
arrie
xp
d b
eceivable, base
ed to fair value. Any gains or losses arising fr
es for which ther
ecognises these at fair value at initial r
endit
ecognise ecognition, amounts accumulate
e c
xp
yable in r
e data includes past colle
e adjuste
es designate
ets the criteria for he
ecognition of an asset or liability in a transaction that
enue (net of any incentiv
est metho
e r
y ar
edit losses (E
osur
d according to the following hierar
, either dir
ev
ecognise
xp
y enacte
d to the e
estments, net of bank o
ossible default ev
est rate swaps to mitigate risks asso
emeasur
d cr
d for financial assets held b
el
oximates their fair value.
edit losses for r
ver the lease term.
e inter
y r
ower notes, community loans and liste
e.
dges ar
ecast transaction o
ve is r
ecte
edit risk since initial r edit e
ategories. The classific
enue and e
orr
ctiv
om all p
xp
ev
eser
d tax losses.
ecognise
e. Rental r
ecognition of the r
d loss rates ar
quentl
om balance date or non-
e determine
e r
e r
om the initial r
y liquid inv
ying amount of the non-financial asset or liability
’s e oup and the council e
.
emaining life of the e
et price use
d into c
ecte
ortion of derivativ
dge no longer me
dge r
onds, b
om the sale of collateral held or other cr
-line basis o
esult fr
e inputs. Quantitativ
arr
ease in cr or those cr
e p
ash flow he
xcept for certain income r
e subse
d or substantiv
quity
ee months appr
x, b
, e
ehensiv
. Exp
d when the for
d mark
del. In assessing cr CLs r on initial r
e financial instruments for trading purp
ctiv
ver the r
ear
d as c
CL). F
ant incr
y in e
odwill or fr
-term highl
edit risk characteristics and the da
y in surplus or deficit. On der
d o
e classifie
d with the lesse
oup and the council.
ency contracts and inter
ash flow he
ort anne
ash flows fr
ectl
ences and unuse
een enacte
ed tax assets ar
d cost using the effe
ecognise
ed cr
ecte
d on a straight
ed into and ar
diatel
-month E xp
osition, fair values ar
et inputs for the asset or liability
ax Act 2007
d.
erience up
e and qualitativ
oup and the council ash flows that the gr
xp
d.
e or dir
y differ
edit loss mo
eign curr
ense
edit supp
d in other compr
d and qualifie
een a signific
ur
d within the y
ation of financial assets and liabilities and r elow:
d, plus any adjustments to income tax pa
urity is 12 months or less fr
orar
xp
urities less than thr
d cr
d on shar
xcept for the effe
d imme
e utilise
ecognition of go
y with the gr
et data.
d b
e e
es or is sold, or when a he
ct the gr
endit
erio
ences. Deferr
ecte
ward for
quity and is r
vable mark
an b
enewals negotiate
osits and other short
ed at amortise
eceivables. Lifetime E edit loss e
erience
xpir
e gain or loss in c
ed to the initial cost of the c
efle
edit losses e
ecognise xp
xp
d at fair value plus transaction costs unless the
ent p
ed base xp
ecognise
e has not b
e not adjuste
esente
e r
oth quantitativ
y differ
al cr
e designate
ecognition of a non-financial asset or a non-financial liability
d parties, cr
xt 12 months (a 12
ect of temp
oup
e contract is enter
ash flows will include c
e pr
quent r
d for cr
vable mark
osits with mat
y measur
CLs) on r
d c
esp
orar
emains in e
elate
om the initial r
d on an e
al assets or liabilities. The quote
e and as liabilities when their fair value is negativ
ent when the mat
e transferr
ecognise
enue and e
om third parties in the normal course of business with lease terms var
demand dep
een gr
ortion is r
y r
e contracts.
e contracts r
ecte
ev
om the lessor) ar
es that ar
, the cumulativ
e ar
el 1 using obser
’s financial assets and liabilities ar
d using the tax rate that has b
quipment to third parties including land and buildings and some commer
quentl
edit losses e
e p
xp
e r
ds in r
d base
d on historic
ve b
ositiv
ur
ecognise
d on obser
ed fr
-term dep
y to surplus or deficit, e
dging instrument e
ccur
esults in the r
erio
al cr
d as curr
ctiv
ying amount of assets and liabilities in the financial statements and the corr
ences or tax losses c
es for which ther
edit losses (E
ectl
y r endit
e initiall
om income tax under the Income T
alculate
e p
quipment fr
ears with subse
ets for identic
ehensiv
efundable in the curr
arr
ence arises fr
eceiv
xp
ur
d cr
ve at that time r
d to o
osur ossible within the ne
d within lev
elates to items that ar
d in the surplus or deficit.
y differ
es r
, plant and e
oup and the council do not hold or issue derivativ
en dir
quentl
xp
e not base
e classifie
ecte
e p
d for all taxable temp
eser
y differ ofit.
ash on hand, on-
ecte
e inputs include past trading histor
eceivables ha
cting the ability of the debtors to settle their debt.
est rate. The e
e mark
xempt fr
ed tax c
en the c
orar
erty
xp
xp
d at fair value in the statement of financial p
yable or r
e tak
edit e
orar
op
oup and the council consider b
onding historic
e financial instruments, such as for
dge r
enue and e
oup and the council
etwe
, plant and e
ovision matrix base
ecognise
es ar
ev
e inter
or cr
e not material and the balances ar
eatment of gains and losses ar
verable in fut
esp
e held. Management determines the classific
ecognise
erty
elating to the ineffe
e r
ash at bank and short
d at fair value and subse
eceivables is determine
e r
ctiv
ents that ar
d) in activ
xcept when it r d in other compr
ver the lease term
ecognise
eco
y r
op
om 1 month to 72 y
. Qualitativ
d prices include
uations. The gr
e liabilities ar
oup include unit trusts, loans to r
cts ar
ences b
e made up of c
eceivables
ok
d parties and financial guarante
d parties and financial guarante
ductible temp
edit losses, all r
ash flow he
d if the temp ofit nor taxable pr
ecognise
ecord lifetime e
ehensiv
’s other financial assets ar
ash flows due in accordance with the contract and all the c
ecognition, a loss allowance is r
ement, the gr
ent tax and deferr
osition
ecognise
d cr
osition
elate
elate
ual terms.
yable or r
e differ
e generall
y r
-line basis o
eceivables the gr
ofiles and corr oeconomic factors affe
d at fair value on the date on which a derivativ
d as assets when their fair value is p
ed to surplus or deficit. When a he
ecast transaction subse
ual c
ds ranging fr
ying value of c
ecte
ement and the tr
est rate fluct
d in two stages. F om default ev
e also r
ecognise
quivalents ar arr
xp
arrie
oach and r
e. The gain or loss r
ences ar
erio
e initiall
CLs on r
e c
ortion of changes in the fair value of derivativ
d prices (unadjuste
yment pr
ecognise
dges
ur
xisting in the c
esult fr
ose of measur
erating leases (net of any incentiv
ash e
e p
e the e
y r
ecast transaction is no longer e
dge of a for
ecognise
d appr
es ar
e assets and derivativ om balance date.
e transferr
d in other compr
ctiv
CL). The financial effe
endit
om the council and some CCOs is e
ed tax ar
y differ ofit.
ovision for impairment of r
oup and the council use the pr
oup and the council use derivativ
ase the transaction costs ar
e r
- Inputs other than quote
- Inputs for the asset or liability that ar
xp
oup and the council
en the contract
quent measur
d to the surplus or deficit, e
d on pa
ency and inter
ve ar
oximation of the original effe
edit risk since initial r
orar
ed tax liabilities ar
ed tax is not r
e oup and the council lease pr
oup and the council lease certain pr
enue on a straight
tement of financial p
ceivables ar
ovision for impairment of r
tement of financial p
el 1- Quote
el 2
el 3
e initiall
orting date.
licy
ent tax is the amount of income tax pa
cts neither accounting pr
cancellable p ev
ther financial assets of the Gr
edite
Cash and c liabilities. The c
Re
Pr
The pr simplifie The gr information on the customers.
In assessing E receivables, and trading outlo
To measur base information on macr
The gr curr ar changes in the fair value of derivativ
Derivativ
Derivativ months fr
Cash flow he
The effe and e reser gain or loss e
When a for
When a he recognise
The gr which c
O
Impairment of loans to r
Impairment of loans to r betwe appr integral to the contract
ECLs ar losses that r in cr lifetime E
For those financial instruments r
Lev rep
Lev
Lev
For the purp the financial assets and liabilities ar Subse
Po
Income fr undertakings.
Income tax comprises curr cr and deferr
Curr amount of income tax pa
Temp taxable pr
Deferr available against which the de
Deferr affe
Lesse The gr made under op Lessor The gr non- as r
e sta
e sta
ash
ectiv
ectiv
e
osp
yments
osp
erating
Pr
ceivables
epa
Pr
Item
Income tax
ther
Op Leases
Cash and c equivalents
Re and pr
Derivativ financial instruments
O financial assets
49 |
TE TAHUA PŪTEA TAU 2021-2031
50
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
.
d.
d
e
en
d
d
y ar
y, ev
d.
conomic
evalue
ears)
e e
ect of the
ovide a
ur d at cost less
evalue
ecognise
esp
erational assets)
e r
e items.
d indefinitel
’s fut
e is to pr
d assets comprises
verable. An
ecognise
d to write down the
ve in r
10 - 40
9 - 45
5 - 35
4 - 100
1 - 60
5 - 100
2 - 50
e is an intention to
ctiv
d useful life (y
Indefinite
Indefinite
Indefinite
ying values of r
eser
eco
dge accounting is applie
d at fair value at the
te
e r
arr
ess is r
evaluation is r
e
y obje
-basis for lik
alculate
verable amount. The
ur
ough continuing use. The
e maintaine
xcept other op
-constructe
ogr
quity for each class of asset.
d.
ecognise
xpand the asset
Estima
y not b eco
endit
d to b
evaluation r
ve in e
xp
ceable and ther d on a net
ork in pr
eciation is c
eds its r
d.
estricte
eser quent gain on r
y r
xtend or e d. W
xce
e
y enfor
e intende
om fair value. The c
ur
ecognise
vice, for administration, or as a business activity
. The cost of self
y fr ence, then those asset classes ar
enue and e
elationship for which he
ying amount ma
erational assets (e
ecognise
ase the asset is r
evalue
endit
ev
e r
d in the asset r
arr
y r
e r
d)
cash generating assets, value in use is determine
xp
e r
dge r
evaluation r
quipment e
ural heritage
ash generating if their primar
eviousl
ves
or non-
ehensiv
quent costs that e
ed c
e. These assets ar
Asset class
eser
enue and e
d into a he
ur
y the third party
quipment ar
ck
ate that the c
een pr
ural heritage assets. Depr
d
ev
d b
erational assets
d and cult
, plant and e
e is a material differ
d in the asset r
e r
ough a sale transaction rather than thr
ve b
e and fittings.
oup or the council is legall
ational (continue
ves
ur
oice
d cult
ovements
erty e consider ash flows. F
ther compr
osition when offset is legall
er
orks of art
ther op
estricte
ecifie
Treatment of gains and losses
Surplus or deficit
O
Surplus or deficit
Surplus or deficit
y thr
Op
Bus stations and shelters
Marinas
Rolling sto
Whar
W
O
R
Parks and r
Buildings
Impr
Sp assets
op
e c
d in surplus or deficit. Any subse
e designate
ur
ehensiv
’s infrastruct
, plant and e
ecifie
y ar
vices, either as a community ser
erty
d fut
ural and heritage assets) and op
exchange transaction, in which c
e accumulate
es
cumstances indic
ecognise
ategories:
op
ecte
ying amounts do not differ materiall
ed principall
ooks and furnit
d cult
e r
e as follows:
ears)
xp
arr
ver
ee c
y b
e and ar
ying amount of pr
ve ar
ecifie
ur
ovision for
d in other compr
eco
e council ser
ough a non-
d in surplus or deficit. Any amounts include
arr
ement
e r
conomic liv
eser
endit
d as held for sale.
d into thr
ed thr
quipment ar
3 - 110
10 - 201
3 - 200
15 - 150
3 - 80
10 - 100
3 - 100
6 - 60
e that their c om the assets’ fair values. If ther
xp
ovide cor
d useful life (y
Indefinite
Indefinite
ecognise
esent value of e
d in the statement of financial p
y comprises the sum of costs inv
te
ecognise
ents or changes in cir
y fr
d cost less pr
d cost
el of any impairment losses that ha
quipment, librar
e r
evaluation r
e classifie
y which the c
quent measur
orte
e classifie
d to pr
er ev
ovements and sp
s r
ep
.
enue and e
y ar
e the use or transfer of title outside the gr
xcept for land, works of art and sp ver their useful e
Estima
ough surplus or deficit unless the
d.
, plant and e
osal.
ears to ensur
ev
ying amount will b
d and then r
Subse
Fair value
Fair value
Amortise impairment
Amortise
esult of financial instrument earnings or fair value adjustments ar
ecognition, certain classes of pr
e y
e r
arr
erty
op
quipment ar
ense
d up to the lev
xcept impr y fiv
xp
ehicles, office e
d assets generall
er
d while the
quipment use
d at cost, unless acquir
e material, any abnormal costs and internal surpluses. Subse
quipment e -line basis o
ehensiv
y e
d or upgrade
ovements wher
d funds on disp
y do not differ materiall
enue and
ecognise
oads and systems and networks integral to the city
oup and the council ar
d. After initial r
, plant and e
’s fair value less costs to sell and its value in use. Assets ar
d assets (e
eviousl
ev
d as fair value thr
e r
eplace
eplacement cost.
ement
ecognise
eciation of pr
e r
d for impairment whenev
ash-generating assets is the pr d r
enses arising as a r
e r
, plant and e
y r
d.
, plant and e
erty
enues
xp
d or amortise
xcludes, wher
op
, and at least ev e that the
erty
erty
estricte
ategorise
apitalise
d in other compr
e offset, and the net amount r
ying amount and fair value less costs to sell.
erty and impr
eciate
eviewe
eciate
ehensiv
d cost
d in the surplus or deficit, if any
op
e c
op
ural v
e, c
d as held for sale if their c arr
eciate
op
onents ar
ur
quent measur
osal of pr ed to accumulate
d in surplus or deficit for the amount b
egularity y to ensur
enue and e
d for on an asset class basis.
ecognise
osition
quipment of the gr
include land under r
cations and e
alculate the depr
ecognise
osition
esult in a debit balance in an asset class’
d on all pr
d on a depr
xcept land), r
e r
e classifie
include pr
e
e r
e not depr
include pr
quipment is initiall
otential ar
ur
quipment is r
y their nat
d to c
ecognise
, and is not depr
orting and cult
e transferr
d annuall
e assets
ovide
vice p
ough surplus or deficit
ough other compr
e, b
ur
d amount of the assets on a straight
e
urn. The value in use for c
e accounte
es use
oad formation
d sp
oach base
e
, plant and e
et
erational assets include landfills, motor v
d assets
ur
y
e assets (e
ur
d cost
es ar
ur d with sufficient r
ent assets ar
ent assets ar
erty
es
e assesse
ed at the lower of their c
ational assets
, plant and e
evalue
, plant and e
cial r
op
astruct
ecognition and subse
ational
d assets ar
ecialise
endit
curr
curr
er ther op
estricte
erty
eciation
eciation is pr
astruct
ater and wastewater
ther infrastruct
er
osals
ose
erty
verable amount is the higher of an asset
evalue
evaluation gains ar
tement of financial p
eases in fair value (less costs to sell) ar
Infr if individual assets or comp
Op O
R
chase costs, time allo
tement of financial p
Land and r
Roads
W
Machiner
Stormwater
O
Land
Building
Sp
Train stations
Categories
Fair value thr
Fair value thr exp
Amortise
Financial liabilities at amortise
Derivativ Financial assets and liabilities ar settle on a net basis. Rev
•
•
•
op
Asset class
Infr
Op
ains and losses on the disp
op
e r
Non- measur
Impairment losses ar
Incr
Non-
The pr
Initial r
Pr date of acquisition. The cost of third party constructe pur benefits and ser impairment, if any
Depr
Depr cost or r
Useful liv
The useful liv
Disp
G disp
Impairment
Pr impairment loss is r reco commer using an appr
Revaluation
Infrastruct ar assets ar Revaluations ar
Net r Revaluation losses that r first in surplus or deficit up to the amount pr
e sta
e sta
ectiv
ent
,
ectiv
osp
curr
erty
osp
Pr
op
Pr
Non- assets held for sale
Pr plant and equipment
51 |
TE TAHUA PŪTEA TAU 2021-2031
52
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
ct
ol
y
e
d
e
y
om
verhead an b
quentl
earing
d. The
y c
conomic
y and not
es to
ash
annot
’s contr
eds its
erience in
ecognise ur
e c
y still affe
xp
y r
est b
-term
ents, it is
enue fr
ers and
e the
xce
ent
ur
owings and
e is issue
quity held for
ariables ar
ortion of o
.
d fut
orr
ol ma
ecent e d individuall
d.
y memb
e non-inter
SAS 9 Rev
d.
ed under the debt
he council c
ver their useful e
d at cost and subse
ortions of e
esult of past ev
. T
st of the v
’s contr
easonable p
ying amount e
cash generating assets, value
e value
equir
arr
estment is initiall
ciates and joint v
est metho
ations and r
dge
d at fair value wher
ash generating if their primar
’s c
or non-
ecognise
erties ar
e not disclose
-line basis o
ed c
y r
e inter
d.
op
ovision due to the passage of time is
yments r
e after the date of acquisition.
ctiv
om the settlement of b
ariables outside of council
yee costs, a r ecognise
ur
y r d impairment losses, if any
ent
yables and accruals ar
esent value of the estimate
e obligation as a r
ual pa
ate and/ or mo
e consider
ent liabilities. The liability for long
ash flows. F
xact knowle
e c
erty is initiall ofessional qualific estment pr
esulting fr
onents to identify those p
ect emplo e initiall
y which the asset
ur
ent pa
ease in the pr
op
s length basis ar
od that v
d pr
ent liabilities.
d fut
ed at the pr
d or ine
curr
y.
yable to a third party for assuming the obligations.
es of the council and their close famil
eing accur
ciate or joint v
en the contract
eliho
ecte
d cost using the effe
e pa
ariables outside of council
eliabl
xp
estment pr ecognise
e paid within curr
d as a financial liability at the time the guarante
etwe
e on an arm’
d at cost. Curr
e measur
d r
ed at no cost ar
d in accordance with the principles of PBE IP
esentativ
d to b
endants.
e of limite
opriate r
d within non-
esent legal or constructiv
epr
d into various comp
e made to the financial statements of asso
ecognise
sumption b
ecte
d r
d amortisation and accumulate
d in surplus or deficit. Inv
ecognise
orte
ed at amortise
e estimate
e r
ash flows b
ves at the time the council was forme
e is a high lik
e r
xp ep
xchange gains and losses r
ve a pr
ecognise
cte
ecaus
esent value of e
oup and the council financial statements. The inv
an b
en and dep
d parties that ar
eser
sumption but v
eign e
d r
e include
y measur
or
ence in c d amount that would b
een classifie
elate
ed to settle the obligation. The incr
od of the as
d to write down the cost of the assets on a straight
om balance date and ar
e contracts ar
ears)
d in surplus or deficit for the amount b
d in the gr
y, adjustments ar
quentl
estricte
d intangible assets, the cost includes dir
ed valuers with appr
equir
d at the amount e
ersonnel, the ele
quity has b
eliho
alculate
e of the surplus or deficit of the asso cessar
sumption but ther
ecognise
egister
orte ash outflows and is r
e subse
oup and the council ha
yer e xcluding r
conomy and changes in legislation.
quity metho
e ne
ep e c
del under PBE IFRS 9 Financial Instruments; and
e, or the estimate
edicting outcomes b
vailable on the as
y generate
e as follows:
4 - 35
3 - 15
3 - 35
6 - 63
oximates fair value.
e r ur
e amount of amortisation r
d at cost less any accumulate
d useful life (y
e, and is c
’s fair value less costs to sell and its value in use. Assets ar
ash outflows r
te
d in surplus or deficit.
endent r
e than 12 months fr
d fut
e the gr
esent value of the differ
. Ratepa osition e
arrie
e c
ash-generating assets is the pr
es Financial guarante
eplacement cost.
om changes in fair value ar
ot rates at balance date. F
ur
ey management p
e c
oup
oint to a high lik
or internall
Estima
d r
y indep
ecognise the shar
edit loss mo
ouses or domestic partners, childr
ecognise
estment. Wher
d fut
es, k
e r
y b
d for using the e
ying value appr
yable mor
y at the higher of:
d cr
ur
emuneration, transactions with r
eciate
d to r
osition wher
ecte
d on the pr
elopment phase of the asset. Intangible assets acquir
arr
ecte
ent
ease
.
yable within 12 months of balance date and ar
xp
ed to settle the obligation, and the amount c
quentl
xp
est in the Gr
d at cost. F
cr
opriate, the cumulativ
d base ed without the guarante
xcept rights to acquir
en, annuall
e accounte
oup
e, the c
ers include sp
ersonnel r
equir
s to the difficulty of pr
st of the information a
d on a depr
equir
cial buildings and water space licences held to generate income. Inv
esent value of estimate
’s inter
e r
e appr
ement
d or de
efor
e r
ecognise
ains or losses arising fr
es ar
d into NZD using the sp
ciates, joint v
efer
ur
y r
urn. The value in use for c
ease
esent amounts pa
y memb
ed within the dev
et
ying amount of the inv
e outcomes, such as the wider e
vailable to council p
ome of the information on the as
y for impairment. An impairment loss is r
e undertak
ent
epr
oach base
arr
esent amounts pa
d within 12 months of balance date ar
ces will b
es is determine
ur
cial r
erties. G
ed at the pr
d at face value plus transaction costs and ar
esent value of the e
d less, wher
quity is the net asset and liability p
sumption.
e initiall
ecognition, intangible assets ar
osal of intangible assets ar
epr
verable amount is the higher of an asset
op
y terms; ther
e translate d in the surplus or deficit.
ey management p
quent measur
e incurr
d e
e settle
esour
sumption r
ct fut
d annuall eco
-da
osition
alculate the amortisation of intangible assets ar
aluations ar
ed at fair value and subse
d in accordance with the e
uckland community
d on intangible assets, e
educe the c olicies in line with the gr
ecognise
osition
d in the statement of financial p
ecognise
e of k
y r
owings ar ecognise
ed at the pr
y r
yments that would b
d to c
le asset
e
e teste
estment pr
ciates and joint v ying amount is incr ed r
d on 30
y them. Close famil
ovide
erty
om the disp
d using an appr
orr e r
d b
ecasting assumptions
acy of the as
ed. After initial r
op
ovide a commer
erty includes land, commer
arr
y measur
.
eceiv
yables and accruals r
ecognise
ransactions.
sumption.
ect costs that ar
es use
op
e initiall
e r
e measur
olle
oses. Contribute
ol
ual pr
quity is the A
d.
y settle
ency b
yables and accruals r
d intangible assets ar
es
ct
ent pa
d as finance cost in surplus or deficit. Financial guarante
ecognition and subse
e is to pr
om the disclosur
y measur
ed at fair value. V
yee entitlements to b yee entitlements is measur
d parties include subsidiaries, asso
yer e
ant for
ariables that affe
ther intangible assets
osals
verable amount. The r ctiv
eciate
ent pa
curr
owings ar
change T
’s contr
tement of financial p
chase
el of uncertainty – council has mo
es.
Class of intangib
Community rights
Computer softwar
Intelle
O
estment pr
estments in asso
eign curr
the amount initiall Ex
ains and losses fr
tement of financial p
uckland and in inv
om translation ar
ovisions ar obable that an outflow of r
ovisions ar
• the amount determine
•
ecific purp
Initial r
Pur and other dir reliabl
Amortisation
Amortisation is pr liv
Useful liv
The useful liv
Disp
G
Impairment
Intangible assets ar reco obje in use is determine
Inv measur A depr
Inv at cost and the c Distributions r bring their accounting p
Curr and normall
Non- outflows.
Emplo emplo
Borr
For fr
Pr pr
Pr recognise liability is initiall
The fair value of financial guarante instrument and the pa
Relate entities contr
Apart fr
Ratepa sp
acy of the as
e sta
e sta
el of uncertainty – information a
el of uncertainty – council has s
ate lev
ectiv
ectiv
el of uncertainty for each as
es and
yee
d party
yer
ol all of the v
der
osp
erty
ur ciates
owings
osp
Pr
estment
under council
the accur
will impact on the accur
op
estment
yables and
Pr
ovisions
he lev
• Low lev
• Mo
• High lev
Intangible assets
Inv pr
Inv in joint vent asso
Pa accruals
Emplo entitlements
Borr
Pr
Relate transactions
Ratepa equity
Note 2: Signific
T
contr
53 |
TE TAHUA PŪTEA TAU 2021-2031
54
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
e
d
ur
el of
d to
ound
d.
ol or
/31
,190
.492
,820
,749
e
-19).
e made
1.917
vailable
1.89%
e
d, the
enue
eduction
erio
vices.
d would
30
03
36
s lev
es not
restrictions
.0 billion.
d and enues,
apital
ev
e ar
eduction
VID
20
7
717
estments
cte
els will
e higher or
793
ev
owth is
’s contr
ers a
y driv
oje ed to b
eduction in the
elow that
egion’
d to b
enue r
’s r
enue r
e or ser
d infrastruct
owth and fund
erience
om that
e. The
e varie
olicy do
e accelerate
border
ev ound $1
y deferring or
owth is lower it
y a range of
ocesses. The
xp
.
75
cial inv
ur
ent pace than
y ne
cte
ev
ur
d
d to CO
/30
,478
,631
,919
oup
enue lev
e on our r
ear
1.890
y fr
enue r
1.93%
oje
enue ratio or the
d b
enue of $2 to 3
e that the c
xisting and planne
35.9
04
ant change for
y ma
ev
ev
el of r
ove or b
endit
y than pr
ed to b
el of r
ev
elate
ev
779
7
antl
, while outside the
d r
-r
ecaste
cte
owth e
2029
688
xp
eform ar
’s r
elopment gr ’s e
-term pr
ok
uckland International
owth and low for the
y ne
els and of
cte
4 is pr
-to
ovide.
opulation gr
owth on an annual basis. If
’s commer
estment in gr
9
2
e slowl
y also b
lev
enue ab
14
enue impacts ma
oje
202
enue ratio would b
50 million to ar
om for
/29
,691
,819
ev
or dev
xisting or planne
opriate amendments will b
e of the financial lev
ev
1.865
35.4
5,
91
1.98%
apital e
ccurs at a differ
y fr
ual p
e outside the council
d and A
cal businesses, the r elopment.
alert d scenario
owth is affe
estrictions r
d and the dela
oup debt
2028
673
76
6
d.
antl
esults in signific
vices we pr
ent
estment in infrastruct
ease its inv
conomic outlo
cts lo
owth o
ccurs mor
ogramme ma
ea of impact would b
ound $7
owth costs.
owing. It ma
ound $650 million for the same p
e on the council
order r
9
3
ct the council
owth differs signific
s e
elopment Contributions P
xtende orr
y ar
’s debt to r
apacity in e
ending on the financial y
/28
,826
.94
,625
,69
e slowe
/2021 to 2023/
om ar
ose to mitigate the impact b
y ar
vices. If act
1.836
2.01%
owth also impacts on affordability of the
e e
in differ
– High
opulation and/ essur
esult in rates r
34
50
78
ant impact on the council gr
y of gr
d scenario the council
ease inv
elopment gr
erational and c
essimistic scenario the lev
er cent variance in the gr
apital pr
2027
7
uckland Limite
ogramme r
cts
ds
e onl
ant change, appr
ver
quent annual plan or long ose to incr
cts
658
6
ealand’
otential outcomes of the r
elopment o
ccurs earlier than pr
elopment.
e p
e optimistic scenario the lev
ual p
xample, b
.1 p
ok also affe
ol, will affe
elopment gr
eco
d will b
eds to b
erio
vement in total general rates r
om 2020
estment.
esult in a lower gr
y put pr e and ser
conomic gr
oth op
d to rise fr
d to b
ur
y cho
erio
– The primar
owth differs signific
- If act
oking at using one or mor
er annum dep
/27
1.807
,888
.388
,085
,546
d in this plan
- New Z
orts of A conomic gr
– The p ve a signific
y additional b
d or the new Dev
– If dev
The p om those in our balance
cte
cte
unity to incr
owth in the rating base is higher or lower than this
2.06%
y p
, it ma
vices.
34
’s contr
’s rates and user charges. Rev
yment and the rate of dev
s and impa
–
cts
ears fr
esult, the council
cts
esult in surplus c
y lo
ction this will r ction. A 0
cts
cts
cte
.
cts
ed b
elopment o
ort the dev
el of uncertainty
oje
oje
- Gr
e is a signific
s and impa
2026
643
736
665
- That e
ort. E
– That the pr
– that dev
ver
eams.
ort
ease, and the c
50 million.
el of uncertainty - High
y r
el of uncertainty – high
el of uncertainty – High
el of uncertainty – High for pace of gr
oje oje
ecaste
uckland
oje
ver ogramme ne
Risk
Risk differ fr
Lev
Impa str
Under the balance four y $7
Under the mor is pr As a r the council might cho reducing inv
Under the mor is pr This would r opp
Risk
Lev
Impa higher infrastruct ma and ser
Population and dev external factors, most of which ar influence (for e The council will continue to monitor gr ther as part of subse council ma this b to it.
If the gr pr pr result in a mo million p
Risk
Risk for
Lev
Impa council such as P Airp council changes to b economic outlo emplo
Risk A
Lev
Impa could ha assets, liabilities and the ser
Risk pr enable a fair r
Lev policy
Impa reco co pr
If dev incr supp
7%
/26
,913
.848
,554
d
’s
1.779
2,408
y,
.
33
2.0
cte
d and
ead.
628
721
ct the
2025
65
owth-
olicy
y faces.
oje
eview
VID)
oje
e of
-year
er cent)
owth (the
entl
e pr
ent
e. The
53
-year
er for many
e-CO ur .8 p
1.7
,940
.367
,994
,243
al and
-year Budget,
y charges in
ort dividends.
ecast
el 1 is lifte
owth, elevant
-year Budget
4/25
33
06
2.05%
el
vement and
conomy is doing.
VID on migration
ement is spr
yers, to pr
202
613
7
639
-19 will impact
s e
ee differ
d lev
ey driv
. This scenario
er and typ
VID
ogramme to r
eople (15
elopment gr
equir
olicy state that gr
om this 10
, and airp
7%
.
egion’
ed thr esulting for
ear
els 1 and 3 for the first
/24
1.729
,219
.930
,673
,294
y CO
er 2018 to enable the fair
e of historic
y fr
eas of impact ar
opulation gr d into the r
owth in the fut
er for some of the council
2.0
estments:
d as at 30 June 2020
,000 p ears of the 10
99
32
92
d b
epar
y 2019
en lev
owth).
2023
5
6
elopment Contributions P
uckland Council curr
626
cemb
ey ar
d scenario
y y
/2021 y
orate
y Statistics NZ (pr
ey driv
xisting ratepa
ause
owth, p
owth estimate for the 10
d b
erties.
cation of dev
ealand. This includes water suppl
orts activity
etwe
op
5
ct any changes in this 10
0
9
aters Reform pr
ces. K
xample the numb
ound 261
23
,921
ort Limite
.46
,685
opriate shar
d separatel
efle
elopment contributions.
ce
.
opulation gr
es adjustment for prudence and timing
ce
1.7
8,727
2.02%
urn on its inv
om Januar
y our Dev
est information on the lik
d disruption to public mo es that A
ces staff pr
ease to e
d scenario but assume
een incorp
opulation gr
y ar
ed pr
ver which the rates r
32
ate how well the r
et
ee W
olicy in De
date
esidential housing is a k
el and lo
584
67
613
d b
uations b
d for the earl
2022/
enue and Financing P
ct fr
.
conomic gr
opulation gr
elop
’s r
oss New Z
esult in some fundamental changes for
om dev
ciate essur
y 2022).
y 2023
ve b
een informe
d on b
enue sour
d on the balance
en the uncertain impact of CO
ease b
ecte
elopment, including new buildings and
d fr
ver an appr
ev
y’ p
81
22
d the Thr
31 and sour
d fluct
el
xp
,772
.035
,933
,213
y 2022
uckland p
om dev
31 and sour
1.6
1.96%
eco
20
oduct indic
egional facilities, p
ecasting sour
e base
y e
32
conomic conditions c
y and Rev
e further up ogramme.
els 1 and 3 for the 2020
20
ecast the lev
erty dev
2021/
570
601
uckland.
e funde
ev
d until 1 Jul
664
op
verage rates incr
ame into effe
e as determine
enue is base
ort, r
ers of A
eviousl
ea). This information is a k
e set to r ur
ev elopment activity
et 2021-
el 1 to Jul
d continue
y pr
ogramme could r
ovides).
et enough certainty to r
y challenging giv
d to for
e of the rating base o
eed a
et 2021-
uckland International Airp
olicy c
apital pr
xternal for essimistic) to assess the sensitivity of r
ev
quential demand for r
, the council has b
orts of A
vourable e
osal, and stormwater management.
olicy will b
er of the financial pr
opulation will incr
en b
vernment has le
d dev
-19 Alert L
y 2023
enue and inflation ha
elopment Contributions P
-year Budget ar
-19 on factors such as e ev
eciall
2031
e use
oss domestic pr
VID
or space ar
ecte
VID
ctions for these factors and mak
estments.
e is not y
-year Budg
-19 pandemic and the asso ey driv
d infrastruct
, public transp
ols with L
ease the siz
-year Budg
estment should b
xp
oje
d that this pr
ent Financial Strateg
VID
eholding in A
en CO
ed six months earlier (1 Januar
estrictions not lifte
ed to determine a ‘most lik
d that the p
ctions ar
eholding in P
ears the go
e inv
elate
d, optimistic, p
.
ers and gr
dge
d a new Dev estment. This p
cisions on the c
d in this 10
om 1 Januar
. This is esp
oje
conomy could influence the council
’s curr ur
ta for 10
vel is a k
elax
owth (some of the driv
ee y
y activity
oth internal and e
etwe
. This is lower than pr
elow
equir
d, alongside the agr
ta for 10
es)
enue.
olicy and e
order contr
oks at pr
owth-r
ols r
owth and the conse ’s activities and asset management plans (for e
2031
ctions and other inputs when estimating the p
elopment contribution r
y impact of this disruption is on our r
ev
om b
d p
d b
y final de
essimistic scenario assume
-year Budget 2021- oje
er cent shar
urns on these inv
d gr
er cent shar
elopment Contributions P
d dev
egulator
uations b
et
y of this inv
d b
estrictions fr
e optimistic scenario was the same as the balance
e p
conomic gr
opulation pr er of dwellings and flo
d part (SUIP) rateable
erties)
yment numb
vernance and management of water activity acr
d infrastruct
date
e r
d.
.09 p
cte
wing fr
ecasts include
elopment contributions r
divisions, which incr
ver
elopment contribution charges ar
owth pr
owth in the rating base is driv
op
100 p
• 18
•
er the past thr
uckland at this stage ther
uckland Council
oje
Assumption da
The impact of the CO international tra
The primar to b
Dra scenarios (balance information.
For assumes:
• Fluct
• Extende
• No r
A mor border contr
A mor year of the plan and r
The further impacts of CO dev assumptions b
Population gr of the council community facilities the council pr
The council is r Budget 2021- and e
For this 10 gr council has estimate by 30 June 2031 perio
The p numb activities such as managing the stormwater fr
Gr sub The council lo lags. This is use total rates r
Assumption da
Emplo
The state of the e
The council is assuming that unfa
on the r
Ov the go wastewater management and disp
While it is acknowle A Budget.
A relate
The council adopte reco
Dev anticipate
The Dev informe
Pr our up
d
d or inhabite
owth owth in
or space (million sq metr
owth
elate
y use
-19 r
erties
urn on
eform
et
VID
op
owth in the rating base (GIRB)
elopment
vernment health
elopment gr
wellings
Population (millions)
D
Business flo
Separatel pr
Rating units (rateable pr
Gr
estments
ater r
enue
Assumption
CO go restrictions
Population and dev (including gr the rating base)
Assumption
Economic gr and r inv
W
Dev contribution rev
55 |
TE TAHUA PŪTEA TAU 2021-2031
56
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
e
y ’s
.15
,
d
e -
er
oviding
quent
-to
y the
ove the
educe
cts or
.
or ev
d b
esult in an
eady
cts is er a larger
el of funding
-r
uckland as
ctions.
ent Regional
oje
vel ve to defer
oje
d in subse
om those
er cent and 0
ear could se
ovide
ed. This would
oje
e lower
y fr
d.
d then less er
edit rating we would
ual lev
ed is lower or
ort pr
e an amendment to
vements on an annual esse
ements. F
.05 p
%
d, then further
ough to higher debt
/31
4%
0
yment.
ose to maintain
ecast and debt
eady pr
/31
%
antl
cts.
273
d the cost of pr
est rates, the council
els, worse climate
vernment is
-r
ecast inflation
/31
en 0
30
3.6
0.0
e deliv
.
d, leading to r
er cent.
eceiv
equir
30
cte
2.0
equir
y in place.
ent cr
e made and impr
vel e able to deliv
d the council could
oje
e addr
30
20
ces.
y r
20
y cho
erio
oje d. If inflation is lower than
20
entl
etwe
ve budgete
ears.
cte
d the additional funds will b
om for
et inter y less than $20 million, due to
%
vice lev
vices would b
e y
es not match pr
%
/30
5%
0
oje
cte
/30
273
/30
om the Go
ur
3.7
ogramme. This would r
ent fr
2.0
0.0
oje
om the curr
2029
estment would impact on housing
estment in transp
vices would b ort ser
ver that p
y less than 1 p
d, the council would ha
ed do
2029
2029
est rates flow thr
dging curr
vices could b
d pr
conomy and emplo
derate
%
d b
vernment funding for sho ecte
om other sour
oviding ser
est rates of b
/29
0
el or timing of funding pr
d of the plan, if the act
vailable than budgete
vernment shortfall for one y
vernment funding r
derate
eceiv
derate for the term of the curr
ve fund and ma
/29
%
84%
xp
276
ant changes will b
d the council ma
cal e
-term plans.
/29
est rates differ signific
cts fr
2.0
3.
0.0
erio
d transp
owings o
apital inv
eser
2028
ent to what we ha
educe
ual lev
vernment is less than budgete
’s planne
d.
d, the council would b
orr
el of go
estment to fut
d c
enue r
wards.
oje
eater than pr
cts
2028
e higher than planne
2028
oint change in mark
est rate he
ease risks to public safety
ort
educe the inv
ev
eases in inter
%
cts
educe
ver a Go
vernment funding for sho
enue is less than pr
oom r
ecte
ecte
onment and community outcomes for A
%
/28
0
er the p
estment and ser
ound $35 million higher than for
xp
xp
ev
/28
ough a r
278
ual inflation is differ
/28
er annum.
3.93%
0.0
y the Go
-term, if the funding fr y constraine ransp
oom.
cting the lo
- If inflation is higher than pr
d the cost of pr
2.0
evailing inter d
- Incr
vicing costs would change b
y one notch change fr
2027
– Ov
d outcomes.
apital inv
d use of b
– If the lev
el of go
ogramme.
– If r
enue is gr d thr
2027
2027
centage p
el of inter
er
d b ort inv esult in r
eing ar
d c
ort, envir
ev
s and impa
- Act
cts
cte
cts
cts
e funding is made a
cts
ax, High after
cts
el of uncertainty – High
- Pr
er
oraril
cts is lower than e
vices would b
el of uncertainty - mo
ect a change in inter
%
s and impa
- That the act
y r
ciate
owing to co
– The amount of go
– that the r
oje
ease
%
ecaste
vicing costs and higher rates funding r
/27
0
vernment is differ
el of uncertainty – High
el of uncertainty – Mo
el of uncertainty – Mo
ose to either r
ovide
el
estment in assets and ser
enue headr
oje
ok to fund the pr
Risk
/27
278
Risk
Lev
Impa ser pr
The council will continue to monitor price mo basis and any signific annual plans or long
/27
Risk for
Lev
Impa ser 1.0 p debt ser the lev
For ev exp per cent p
3.95%
uckland T
0.0
Risk
Risk Go
Lev
Impa pr transp lik impacts and incr
If mor inv asso
In the short temp A incr debt headr
Borr debt b rev
Risk higher than e
Lev
Impa pr planne
If the lev higher than e capital pr
Changes to planne transp well as affe
Risk
Lev Fuel T
Impa cho lo
If the r manage the RFT scheme to allow for additional pr
2.0
2026
2026
2026
%
-
onse
/26
0
vices
e is
vel
er
, to
emain
/26
280
d down
/26
8%
owings
ur
esp
1.
3.93%
0.0
ates that
TAP
28
ound the
orr
2025
eement,
d.
/2029
2025
evise
2025
est rate
cal and
ort, walking
erating
endit
ent
enue r
d ar d, in r
%
TAP 2021- e and ser
unding
vernment
xp
opriate
ev
4/25
0
ove lo
ur
4/25
275
4/25
8%
1.
3.95%
0.0
ort F
TAP agr
cts funde
d on an assessment
202
e that the A
202
xternal) to inform
ver the term of the
202
d the A
e.
-year Budget
ax or a new funding
.7 billion op
apital e
eas (Mt Roskill,
oje
%
ransp
ur
%
/24
0
uckland.
ovide:
er cent lower ($129 million
-year Budget 2018-
uel T
/24
emain confident that the
269
/24
eparing the inter
elease
e: $7
om central go
endit
d and distribute
1.6
4.00%
0.0
ur
ering $188 million of sho
. This 10
d in this plan:
2023
ort infrastruct
ogrammes. This indic .9 p
xp
ctions of annual r
ears of the plan (2028
2023
d to rise o
ctions base
ars to public transp
ed as the c
d mix of pr
ends is then adjuste y the council.
.
2023
d in 2015 to impr
oje
23
%
endit
ogramme ar
d e
vices.
ort pr
oje
/2028 ee y
23
d b
ecte
23
0
uckland r
xp
ound 4
d in the 10
d amendment to the curr
265
y tr
xp
5%
eceiv
ease
ol and diesel), with appr
ce
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y FY27
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al transp
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e advice on National Land T
ort might b
el for the last thr
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xp
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20
2021/
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TAP) was establishe
equir
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ort planning and funding for A
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2.5 million
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57 |
TE TAHUA PŪTEA TAU 2021-2031
58
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
e
ct
er
om
d
els
ent
’s
d
et
ecast
y fr
y
d lev
d
estment
d financial
ements,
d to
antl
ecaste
antl
ciate
ct could
ement of
ent
ogramme.
ct the cte
d funding
y a numb
ements.
oints is elate
equir
eyond the
oje
owing costs
ealise
oje
es could affe
ent time frame
d b
e income. In the
ur
-19 r
e b
orr
equir
apital inv
d midp VID
apital pr
ovements would b
ense and
ol of council is the
ent than the
d or r
ogramme is differ
ecast, then the d b ending on how large
om those for
xp
ough to change
’s c
e and its asso
ehensiv
e in our pr
e impacte
ciate
esult in a differ d.
e to a differ
ur e on funding r
eas such as the mark
e
ent fr
ur
estment is signific esult in changes to the mix
e (and the achiev
apital pr
ur
vice impr
ecast rate r
end on the planne
ur
eatment could affe
endit
ecast. Dep
vements differ signific
e use
endit
ement.
eciation e
endit
xp
ther ar
e for
e not identifie
el, and pace, of c
e differ
xp
elow estimate
endit
ur
or ownership struct equir
xp
apital inv
el of ser
xp
y undertak
d to the City Rail Link pr
oth a financial impact and could
eas under the contr
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derate
ct fut
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osals ar
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d pr
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xp
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xp
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e higher or lower than for
y affe
evaluation mo
ense.
enue and e
ual timing of the c d.
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ations would dep
ease
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el of asset sales is higher or lower than for
cisions on ownership r
ent accounting tr ev
d costs and/
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el impr
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evaluations ar
xp
elevant c
est e
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cts
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cte verall funding r
ers the council uses to fund it
ct management. O
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eatment ne
d would ha
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ual timing of c
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arparking as
om its
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ant the pr een r
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efor
er 2020
unities,
et to b
qual the total of
er 2010 for fut
orr
e including asset
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vement towards
uckland Council
or mor
e is 50 p an include historic
ort
ecast this income.
e y
e-inv
oad-base
cial and business unit
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evalue
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e ownership of assets.
oses of this plan, the
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vailable information at the ct cost. F
endent P50 r
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apital to b
om a gain in value fr
y a range of cost outcomes
estment should e
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ears of the plan.
ost
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est a
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apital fr
or the purp
on completion ar eatment is for the assets (and the
el under which ther
endent cost estimations, or e
y on ratepa
epa
ransform pr
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ed assets to b ying value do evalue eciation e
egarding fut
d total pr
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dation is funde
arr
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d on the b
d on the indep
ver the p
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ectiv
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d. This is accounte
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otential pr
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31 and sour
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verall cost of inv
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31 and sour
d assessment complete
d of the plan.
20
e that the c
ecognise income fr ciate entities. F
ciate
otential claims.
ovision was establishe
d funding commitment to CRL
s Unlo
ve b
cts ar
e undertak
20
cle $50 million of c
erty assets as part of its pr
y is a self
ction acr
owings and the r
u’
erio
op
orate accommo ortfolio
ovides for most fix
date
d the company City Rail Link Limite
opriate accounting tr
oje oint of the e y b
ent ratepa orr
ecy ease
ect to r
d with the City Rail Link following completion which is
orting information to inform pr
oje
ed on the basis of the b
d and p
et 2021-
e held at cost and not r
ct costs ar
90 million of p
xp
eliable mark
et 2021-
ortant activities. In this 10
erty p
ecast in the pr
om b
er for the council as it allows c
olicy pr
ed assets values and depr
oje
y e
ciate
y r
ovisions for $408 million of p
elop
dge
apital pr
ogrammes.
cling target:
ose of pr
erty strateg ose corp op
ears) to ensur
ocess ma
d fr
e set at a P50 lev
d on an up yments of $236 million o
y imp
cision to r
op
e y oads ar
all
et these targets after considering our p
ecy
ess the incr
. The pr .
4.
ase
-purp
een dev
eady lo
enalising curr
eline of $5
-year Budg
ed the financial impact of weathertightness and other building defe
ortant lev
orate pr
y fiv
e made the appr
e set at a mid-p
oint (or P50) pr d outcome is that the o
-year Budg
e funde
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er
emain in City Rail Link Limite
cts, supplier quotes or estimates, indep
cts and pr
uarial assessment, a pr
an me d pip
orate pr
ve sufficientl
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ecte
oje
’s accounting p
d in 2019
oje
e strategic
ta for 10
evaluation on fix
erties and assets of its asso
ct in 2017
xp
ta for 10
y will b
op
oje
cisions ar
’s corp
cisions on ownership of the asso
-accounting.
d and budgets ar
ecasting claim pa
d the
es not ha y, no such income is for
e of depr
d costs) to r
oup budgets include pr
ctions for individual c
apital pr
cling is an imp
e, this budget uses this accounting tr
oint estimates.
ears.
ort mor
vernment and council establishe
quity
evious budgets, no assumptions ha
, gr
d at the end of 202
oje
-year budget has b
ecy
unities.
elopment activities (including Panuk
e efficient and fit
ciate
efor
cts a formal estimation pr
e confident we c
cling targets of $430 million for the p
estment pr
ecte
ort
The council also made a de one of the actions to addr
The council also plans to disp dev
The council mor assets within the corp
uckland Council
om fair value. Land under r
uckland Council would normall
.4 billion pr
oje e estimate
ogramme the e
e ar
•
•
•
Assumption da
A regularity (at least ev fr impact of asset r this plan.
A inv council do Accordingl
The go $4 reviews complete
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As in pr Ther
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Cost pr time of adoption and ar pr ar confidence the final cost will sit. Supp costs of similar pr advice. By using a midp pr the mid-p
Assumption da
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The council has consider claims, including those alr
On the basis of an act weathertightness claims. B council is for
The cost of funding these settlements should not fall unfairl settlement. Rather than p it is assume over 30 y
Asset r that supp recy
W including an identifie opp
On top of the general asset r
ct
apital
oje
e
ur
estments
ctions
endit
cts claims
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eathertightness
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Revaluation of PPE and inv
City Rail Link (CRL) accounting tr
Capital pr pr
Assumption
Timing of c exp
W and other building defe
Asset sales
59 |
TE TAHUA PŪTEA TAU 2021-2031
60
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
d
e
e
ed
d ur
d
ur
.1 of
d.
yed
en when
, or cost
. This
equir
dge
y alter
ovide
er
yments
e mitigate
ction 1
ency
d.
ease in
ear
d
etwe
ve any
e he
eplacement of
ossible to
47
y y
e lev els, dela
e was r
y, Se
430
50
361
ve some impact
d b
er
date
e denominate y deteriorate
ency pa
ovide
vings and cost
ur
y an incr
oved infrastruct
erio
eign curr
vice lev
d earlier than
endit
els of compliance or
-year total
eing pr
ed in ev
xp
ogramme.
e Strateg
chases will b
10
e its sa
ur
eign curr
y b
d ser
e the council to pr
eplace
, damage to infrastruct
e pr
eater risk to public safety and
om the p
e offset b
xisting legislation ma
0
0
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e r
ur
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apital e
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20
e the targets would ha
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vices curr
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2029
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0
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or higher rates.
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cts
.
out the r
ency other than NZD
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els.
ease ed and the timing of maintenance and r
oup and council transactions that ar
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equir
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2028
d.
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y b xtr
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vice lev
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e r
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cts
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s and impa
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el of uncertainty - mo
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60
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evaluation pr
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an achiev
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d will continue to fund depr
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e transp
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ant assets ar
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easur
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ve set a target to lo e ar
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ur
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enue and Financing P
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d effe ent default p
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ther funding sour
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Ports of A
The council r renewing some r
•
•
•
e e
oss-
Assumption da
From amalgamation to 2019 annual ongoing sa CO Ma year) and enduring struct
In this plan we ha year of the plan. W sa
The useful liv
The useful life is use for the asset.
Renewals of most c in our Rev long assets ne
O
Assumption da
Climate change is e The most r in the north but mor ar mor inundation and er
The council is r infrastruct undertaking new r
An A manage its coastal assets, and to b combine the curr that is base impr
The council manages for exchange risk of all entities under the gr The risk is mitigate thr cr planning to ha borr
The council has assume other national standards applic
ces
es of
xchange
vings and cost
eign e
Assumption
Sa reductions
Useful liv assets and sour of funding of replacements
Assumption
Climate change
For risk
Legislation
61 |
TE TAHUA PŪTEA TAU 2021-2031
62
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
0
0
0
0
0
7)
98
8)
190
P /31
,818)
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,172)
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17
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206
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20
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(495,52
2,351
52
0
5
0
osal
osal
0
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221
,172)
,409
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e funding
P /30
,120)
,435)
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17
3,875
LT
1,612
20
vices
vices
2029
1,724,
(607
(273
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2,184
elates and funding
ectiv
ort
ort
4)
0
cement
264
385
(10)
uckland
uckland
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eatment and disp
eatment and disp
17
otpaths and Public transp
otpaths
LT
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196
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1,6
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1,548
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2,046
s
vel demand management
33
0
estment
elopment A
elopment A
e and Pr
333
astewater tr
astewater tr
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arious
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ctivitie
ur
81,0
17
A
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V
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Roads and fo and tra
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Regional planning
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W
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Stormwater management
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168
2027
1,618
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41
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17
LT
149
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2026
1,54
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1,398
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1,683
eet parking).
d in its
ea.
7)
1
0
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4
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estment to deliv
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eds r
.
LT
131
ose of each fund, the activities to which each fund r
2025
1,446
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1,300
(475,340)
1,50
evenue and e
unding Impact Statement
2
0
e r
e F
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675
divisions or off
y council is r
P
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3,241
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16
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elopment in the ar
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ectiv
LT
110
202
1,346
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1,232
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1,348
erating costs of inv
osp
d to sub
view Orangihina Park
ehensiv
0
4
ves
y council. The trust de
884
24)
,146
y the council, the purp
elate
our
oading dev
P /24
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3,948
,545)
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3,87
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4,310
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y r
LT
9,340)
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15
102
cts.
2023
1,37
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1,156
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cts or assets wher
d Financial Assets p
ciate
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9
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23
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4,576
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ve set aside b
14,777
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LTP
29
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82
evaluation
evaluation
ver the cost of the council pr
ver the cost of the council pr
elopment of Harb
eds set aside for r
2022/
1,137
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1,105
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1,096
eser
elate
d to r
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cte
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y r
7)
0
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82
11
4
.
d to help fund the c
d to help fund the c
e r
22
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d to r
d to r
d for dev
1,6
om asset r
om asset r
vest pr
9,821)
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5,335
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14
d to particular pr
65,57
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88
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onmental outcomes.
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lan
60
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d envir
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5,034
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d rate colle
d rate b
d rate colle
d rate colle
d rate colle
d Rate colle
d Rate colle
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31
ve funds r
ct to a wastewater scheme.
ct to a wastewater scheme.
era F
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577
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ve
d
w
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deficit y of
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tement:
y wa
tement
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evaluation
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d b
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s in F
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ce
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ct Sta
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unds
ves
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tement of
od pr
d (surplus) /
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gnise
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e income
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unding Impa
y r
s r
olc
ecognise
e r
ciates' r
ecognise
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erio
dge r
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onment targete
ear ending 30 June
vernment Act 2002 r
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gnise
e funding sour tement:
e F
ate
escent wastewater targete
ehensiv
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d fair value gains and losses
our home targete
d as r
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quity accounte ciates not distribute
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ct sta
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y funds (Off str
estricte
d r
ven Driv
ells wastewater targete
view Orangihina Park targete
d rates r
consolidate
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evaluation r
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ating surp er Pr
ct Sta
ehensiv
onent r
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ectiv
ve
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e of asso
ve
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elopment contributions
cash items r
eciation
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o-fit y
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ating funding surp
ocal Go
utor
our
gete
ural envir
oup
er
cognition of r
er osp
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vailable
estrict e
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ther r
en space
ater quality targete
Note 3: R impa
$000
Financial y
ther r
om asso
This statement is pr (gr
Op tax p compr
Items r of compr exp Impa
Capital subsidies
Dev
Non- of compr include
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Discounting of pr
Re
Un-r
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Retr in funding impact statement but not recognise compr
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Op Pr
Note 4: R uckland Council grA The L flows for the p
R
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A reser
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R
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O
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W
Nat
63 |
TE TAHUA PŪTEA TAU 2021-2031
64
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
0
0
7
87
57
0
(1)
0
0
0
7
0
(2)
28
,156
,683
,820
,665
,89
,279
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,039
,319
31
,000
,295
3,150
1,7
2,5
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,062
1,555
,505)
,29
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/31
,640
,988
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3,249
,483
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29
37
2,455
3,000
29
P
32
11
4,830
23
0
75,8
ort
194
,151
(3
,415
LT 30
398
272
419
12
192
701
560
568
483
(16
21
21
20
3,348
4,792
1,4
1,0
4,309
Closing
4
0
conomy
balance 20
69
,145
,621
,435
,562
,712
,190
P /30
,02
,808
,802
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,092
12
4,830
6,710
,084)
0
0
0
0
24,377
7)
0
0
0
0
0
LT
535
3,191
389
273
406
12
190
683
1,407
576
37
(16
,741)
(15)
,181)
2029
4,612
1,032
4,236
als
,427)
(617)
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aw
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8
0
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69
97
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P /29
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,084)
owth and visitor e
otpaths and Public transp
4,830
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LT
14,6
51,4
379
276
407
12
25
186
666
505
994
577
313
(16
2028
3,037
4,4
1,393
4,138
vel demand management
0
0
0
0
5
0
0
4
9
6
9
4
7
0
76
55
84
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439
132
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42
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conomic gr
7,888
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6,562
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,07
,836
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,156
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,188
9,210
,54
,039
,252
E
Roads and fo and tra
97,408
50
P /28
0,554
4,830
2,910
5,658
,084)
,94
27
627
367
144,
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15,52
LT
277
12
27
186
46
927
571
287
osits
1,202
1,300
1,466
13
37
390
648
1,379
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ep
10
2027
2,890
4,28
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8
7
4
2
8
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297
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14
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27
9,430
9,373
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ort
0
0
7
39
7
7
6
0
0
0
(2)
71
LT
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277
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123
16
634
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547,87
24
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1,34
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1,4
2,323
11
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2026
2,748
4,102
3,856
12
5,263
194
43
183
52
85
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9
9
6
0
49
0
ng balance 2020
10
10
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12
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ents and destination and
121
28
623
867
522
49,0
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354
280
356
153
396
240,0
27
(16
2025
2,615
3,922
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2
)
0
8
14
14
455
0
(1)
78
83
9
9
0
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70
(37)
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lan
1,362
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15
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9,271
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6,293
26
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P
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4,922
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240,6
27
66
4/25
16
29
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13
110
14,271,4
LT
348
27
334
138
742
363
82
505
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1,207
3,513
2020
erating costs of additional transp
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9
70
8
0
437
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P /24
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,293)
LT
335
24,
268
316
109
30,0
126
600
331
772
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3,44
apital and op
2
5
0
23
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4,377
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8,516
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LTP
317
33
265
282
107
30
11
591
311
736
45
133
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tements
7
1
0
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306
247,
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586
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ur
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d rate that helps fund the costs of visitor attraction, major ev
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9
2
7
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endit
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lan
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estment and ser
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A targete mark
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land Council (P
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d r
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ating surp
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en space
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ater quality targete
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Total r
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Op
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Total tar
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Note 5: A
uckland Council par
Pr A
R
Rates
Fees and user charges
Grants and subsidies
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Total r
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65 |
TE TAHUA PŪTEA TAU 2021-2031
66
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
0
0
0
0
0
5
,717
,073
,702
P /31
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3,000
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17
31
7,963
14
LT 30
467
467
467
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80
565
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451
485
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20
20
7,173
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1,94
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25
19
55
56
0
0
2
7
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P /30
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1,664
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3,000
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17
64
8,45
13
LT
912
30
360
360
912
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80
54
92
79
429
438
485
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2029
1,272
2029
7,105
24,562
19
1,968
54
55
0
5
5
0
9
9
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,140
,731
P /29
7,115
7,115
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,67
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3,000
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16
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29
9,938
11
LT
29
29
867
867
LT
80
519
92
43
755
429
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412
485
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2028
1,164
2028
7,06
1,988
23
19
53,210
53,966
0
0
,651
,148
,115
P /28
1,168
1,168
,309
,309
,622
,754
3,477
P /28
,000
,403
,802
,835
,766
3,000
,000
,000
,000
,000
,240
,096
10
LT
27
27
22
22
16
15
27
29
LT
80
496
92
703,856
429
,737
388
485
2027
2027
,681
6,866
21
2,009
,635
19
51
52,339
0
6
2
0
0
4
99
,081
,77
P /27
,210
,210
,000
,000
,210
P /27
,000
,422
,039
,69
3,000
,000
,605
,000
,000
,000
,839
,400
16
37
9,582
LT
230
230
261
261
491
LT
80
474,7
92
703,561
26
29,4
429
378
485
2026
2026
6,507
,208
,681
,754
,458
21
19
2,0
50
51
0
6
0
9
9
2
0
76
,251
,411
P /26
7,211
7,211
9,736
9,736
,947
P /26
,000
,34
,785
2,288
,34
,05
3,000
,000
,305
,000
,000
,000
,48
15,
9,886
8,433
LT
25
25
84
64
64
25
906
LT
80
45
92
727
429
,516
366
485
,681
2025
2025
5,962
20
,250
19
2,04
49,523
50
9
0
9
1
77
0
9
6
5
5
,14
,14
457
20
,182
,77
P
,0
,226
,000
,890
,000
,94
,296
,000
,426
,37
,000
,000
,27
,067
4/25
P 4/25
3,000
15,
7,307
LT
214
214
874
874,077
88
LT
80
431
92
102
725
24,
429
,510
348
485
,681
,102
202
1,0
202
5,456
19
2,161
,828
19
48
48
0
2
7
0
83
9
,182
,18
,154
,116
,166
P /24
,39
P /24
,000
,843
,786
,307
,598
3,000
,000
,306
,696
15
,000
,000
,000
6,203
LT
142,215
142,215
292
292
23
327
434
LT
80
415
92
135
741,7
429
,319
485
,681
,531
2023
2023
5,162
,273,47
18
19
2,098
46
47
0
0
0
57
0
70
0
6
9
23
,495
,495
,495
23
,000
,995
,8
,667
,519
,17
,07
,953
3,000
,000
,000
,000
,000
1,75
5,121
,434
14
21,9
LTP
120
120
120
LTP
80
391
92
173
755
429
,757,338
317
485
2022/
2022/
4,944
,681
,512
,267
17
1,87
19
45
46
0
9
2
66
0
20
22
,515
,515
,102
5,35
22
,000
,780
,5
,239
,943
,68
3,000
,000
9,585
,000
,000
,000
,954
4,060
9,267
LTP
75,844
75,844
199
199
14
27
LTP
80
373
92
106
20
66
429
312
,18
2021/
2021/
485
,519
4,675,8
,478,803
,681
17
19
1,432
44
45
0
4
75
0
9
5
4
lan
24
,72
lan
,439
,861
,212
74
,543
,218
/21
,915)
,915)
osition
,000
9,4
,34
,923
7,315
1,516
,009
,945
4,821
,32
,247
32,7
2,809
/21
0,799
80
60
13
132
44
1,732
37
666
,695
240,
497
,730
2,515
,112
,779
2020
(179
(179
1,7
1,55
2020
2,979
17
19
44
Annual P
Annual P
44
es
ur
ent
e income
, plant
efor
erty
/
op
evenue
e r
evenue
evenue
tement of financial p
e r
yments
yments
e r
ent
quipment
/ (deficit) b
fter income tax
ehensiv
epa
epa
ciates and joint v
lus
ense
e sta
quivalents
erty
ent assets
ent assets
xp
ehensiv
evaluation of pr
ehensiv
op
e)
eceivable
ear ending 30 June
ur
ear ending 30 June
ash e
ent assets
curr
curr
/ (deficit) a
ectiv
e financial instruments
ent assets held for sale
ent assets
e financial instruments
, plant and e
s
ating surp
lus
quipment
endit
ent assets
curr
curr
erty
er
xp
osp
ceivables and pr
entories
ceivables and pr
op
estment pr
estments in subsidiaries
estments in asso
$000
Financial y
ther compr
ther financial assets
ther financial assets
ther non-
Op tax
Income tax e
Surp
O
Net gain on r and e
Total other compr
Total compr (e
Pr uckland Council par
$000
Financial y
A
Assets
Curr
Cash and c
Re
Derivativ
O
Inv
Income tax r
Non-
Total curr
Non-
Re
Derivativ
O
Pr
Intangible assets
Inv
Inv
Inv
O
Total non-
Total assets
Liabilitie
67 |
TE TAHUA PŪTEA TAU 2021-2031
68
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
8
0
5
0
0
0
0
0
0
0
0
0
0
,827
,233
,310
794
,164
,27
,511
,123
,396
,235
,235
273
,396
,123
P /31
,000
,646
1,222
,365
,67
9,000
,904
P /31
9,000
9,000
,904
(273)
LT 30
84
31
24,
193
78,0
143
,117
,107
,149,027
,149,027
,149,027
LT 30
467
467
20
1,065
1,784
2,990
14,101
1,6
16
,56
19
,56
8,619
,56
8,619
37
1,960
20
1,493
1,960
8,619
26
37
37
26
26
2
76
0
3
0
0
0
0
0
0
9
0
0
29
,25
,012
218
,139
,637
,792
,792
,792
,521
,626
,626
24
,535
,110
,110
49)
P /30
,000
1,190
,632
,25
,396
,396
,396
82
26
4,621
2,9
8,8
9,000
P /30
9,000
9,000
(2
LT
31
184
0
78,0
14
93,396
912
912
,915
,681
,681
,681
LT
1,132
360
360
2029
1,016
1,759,
2,91
,830
,56
,56
,56
7,707
13,9
1,6
15
1,493
8,619
1,4
8,619
18
36
2029
26
36
36
26
26
5
5
97
0
0
0
0
0
0
0
6
0
0
,111
,733
,135
,521
,521
,41
,67
535
P /29
,567
,535
7,115
,67
9,286
,967
,000
1,160
,306
,056
,056
,056
,850
7,115
27
6,102
7,232
9,000
P /29
9,000
9,000
1,556
,556)
7,
LT
79
31
29
(1
96
1,734
42,0
17
78,0
155
,715
29
,55
1,132
LT
833
841
1,132
867
867
70
2028
,704
,56
,56
2,8
,409
,409
,409
,56
6,
13
1,6
15
7,707
18
2028
7,
35
26
35
35
26
26
1
6
0
0
0
0
0
0
6
90
0
0
0
,84
,105
,41
,168
,913
,41
P /28
,804
,000
,725
,658
1,129
,894
,266
,850
,266
,266
1,168
,806
,850
,309
,309
77
4,830
9,000
P /28
9,000
9,000
7,876
,806)
LT
87,590
31
34
22
922
29,4
167
78,0
162,424
833
841
LT
52
271
27
833
22
2027
1,6
2,748
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,346
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,244
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6,
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6,853
(34
6,841
13
1,6
15
2027
18
34
26
34
34
26
26
7
37
2
0
0
0
0
0
0
0
6
0
0
7)
,182
574
,611
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,619
,210
,210
960
P /27
,000
,405
,84
1,104
,04
,000
,000
76,135
0,0
9,490
0,138
9,000
7,876
P /27
9,000
9,000
7,87
,04
3,913
LT
874,315
31
31
4
158
78,0
17
,507
52
LT
265
230
230
32
52
624,
261
261
(32
2026
1,627
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,56
2,6
,56
6,853
,56
12
1,6
14,867,
17
2026
6,
6,85
33,950,789
26
33,950,789
33,950,789
26
26
7
2
0
0
0
0
0
0
40
50
84
0
0
0
,774
,991
,619
960
,619
,533
960
P /26
,440
,8
,000
,500
,554
1,0
8,65
,206
9,579
7,211
9,000
9,579
9,579
P /26
9,000
9,000
,901)
7,211
41,309
9,736
9,736
LT
74
31
33
25
820
52
149,0
,271
78,0
178,52
25
,791
265
624,
LT
(32
265
64
64
(41,309)
624,
2025
1,5
2,512
12
1,6
,45
,56
,45
,45
,56
,56
6,016
14,27
16
2025
33
6,
26
33
33
26
26
6,
9
59
7
0
0
0
0
9
0
64
0
4
0
0
0
77
,412
,851
,14
,14
,753
,0
P
,288
,000
,325
,584
,256
,85
,67
,901)
,533
,901)
,209
,753)
,533
4/25
73
1,0
5,435
2,632
9,000
2,632
2,632
P 4/25
9,000
9,000
,803)
72
LT
31
35
788,5
143
78,0
185
(32
LT
214
214
(32
874
874,077
(72
202
1,498
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,848
,27
,55
,55
,55
,56
2,426
,56
11
1,6
,56
(319
13
6,016
5,215
16
202
6,016
32
26
32
32
26
26
2
45
0
3
0
0
0
0
0
0
0
0
,917
,173
,171
,315
,473
,182
,18
P /24
5,728
,084
,000
,758
,926
1,0
,07
,406
,209
,446
,209
9,000
,803)
,406
,406
P /24
9,000
9,000
,464)
,803)
57
,446)
LT
77
72
31
42,029
140
,411
78,0
213
LT
142,215
142,215
34
292
292
(34
2023
1,443
2,364
11
1,6
,444
,809
,464
,56
(319
,464
,464
,56
,56
4,9
13
5,215
(496
(319
5,215
15
2023
31
26
31
31
26
26
87
8
29
0
0
0
0
0
0
0
0
0
0
0
23
477
742
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5,
,9
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1,0
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23
,172)
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4,680
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,009
9,000
,464)
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,213)
57
9,000
9,000
26
,464)
LTP
75
70
31
44,
137
78,0
57
,91
223
LTP
120
120
(26
2022/
1,381
2,283
,954
,237
,030
,56
,030
,030
,56
,56
(643
10
1,6
4,9
2022/
4,9
12
15
(496
4,983
31
26
31
31
26
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26
19
87
0
0
0
0
0
0
0
0
0
4
4
4
44
22
,528
,000
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1,0
,828
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,51
,172)
,686
,51
,51
22
,840
,172)
4,011
,515
,515
65
9,000
9,000
9,000
,856)
,840)
3,686
LTP
747,963
70,322
31
135
977,6
78,0
75,8
309
LTP
48
75,844
29
199
199
2021/
1,262
2,177
9,
1,6
,102
,909
,56
(643
,909
,909
y
,56
,56
4,81
(29
12
(643
14,279
2021/
(7
30
4,983
26
30
30
26
4,98
26
9)
0
quit
0
0
0
0
0
9)
91
0
4
24
lan
,501
,728
,010
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lan
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,536
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/21
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7,231
8,464
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1,555
,605
7,536
,264
,983
9,091
,05
,983
,983
/21
9,091
9,091
,608)
,915)
,915)
,536)
,05
39,6
719
59,833
151
29,757
151
32,7
45
1,45
105
,19
,230
,56
6,417
,230
,230
,56
,56
(179
(179
(45
1,732
6,417
2020
2,350
9,063
1,8
11
,548
,756
,530
,756
4,6
1,7
31
26
(1
31
31
2020
26
26
(1
Annual P
13
es in E
Annual P
(1
e
ur
s
enue
enue
endit
enue
s
tement of Chang
evenue
ves
xp
ves
evenue
ves
s
y
ev
ev
ev
ent
e r
e r
e r
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quit
y
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s
ent liabilitie
e Sta
s
quity
quit
om) r
om) r
om) r
yers e
ests
ehensiv
ehensiv
t 30 June
d funds
ehensiv
ehensiv
t 30 June
ehensiv
ehensiv
t 30 June
ear ending 30 June
d funds
ent liabilitie
curr
d e
y
ear ending 30 June
d e
/ (fr
te
/ (fr
/ (fr
e financial instruments
ent liabilitie
e financial instruments
ectiv
yee entitlements
yee entitlements
atepa
quit
ves
ent liabilitie
ves
owings
curr
owings
y
yables and accruals
ovisions
yables and accruals
ovisions
osp
ening balance
ening balance
ening balance
$000
Financial y
ther compr
alance as a
ccumula
ther compr
alance as a
eser
ther compr
alance as a
Curr
Pa
Emplo
Borr
Derivativ
Pr
Total curr
Non-
Pa
Emplo
Borr
Derivativ
Pr
Total non-
Total liabilitie
Net assets
Equit
Contribute
Accumulate
Reser
Total r
Minority inter
Total e
Pr uckland Council par
$000
Financial y
A
Contribute
Op
Surplus after income tax
O
Total compr
Transfer to
B
A
Op
Surplus/ (deficit) after income tax
O
Total compr
Transfer to
B
R
Op
Surplus after income tax
O
Total compr
Transfer to
B
69 |
TE TAHUA PŪTEA TAU 2021-2031
70
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION TWO: OUR FINANCES
2 .3 PROSPECTIVE FINANCIAL STATEMENTS
0
0
2
9)
0
0
0
0
4
0
0
0
,792
,235
,032
,628
14
,722
P /31
,235
P /31
,683
,300)
,84
,336
,637)
,083)
,730)
,704
,310)
,39
,000
64
0,732)
LT 30
,681
467
467
,149,027
LT 30
912
216
168,
892
(3
(6
223
80
80,0
20
,185
,17
,115
,784
36
37
20
3,348
(567
(3
(1
(1
2,007
(1
0
4
2
0
5
0
0
0
0
0
,626
,110
,736
,792
,185
,70
,733
,515
P /30
,056
P /30
,02
,240
,703)
,800
,592)
,084
,993
,315)
,000
17
,805)
LT
360
912
43
,681
LT
904
215
157
(3
80
,123
76,648)
767
223
80,0
2029
,409
1,272
2029
3,191
(5
,048
(991
1,982
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35
36
(3
(1
(1
5
0
2)
0
0
0
0
0
0
,118
364
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P /29
,266
7,115
,67
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P /29
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,655
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,34
,529)
2,336
,562)
,800
7,241)
,530)
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,000
LT
29
867
LT
15
904
211
151
77
(4,891)
68
,734
414,194
80
80,0
2028
,244
1,164
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2028
3,037
,045
(5
(160
(94
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2,148
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34
35
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0
5
6)
2
0
13
0
0
4)
0
0
0
,168
,351
,773
,812
P /28
,309
3,477
,266
P /28
,07
,250
,356
,48
,519)
1,0
,402
,000
7,844)
,70
,653)
37
,29
7,590)
LT
271
22
29
LT
891
213
143
579
(5
76,908)
537
80
80,0
2027
,244
2027
,98
(570
(273
(8
,117
2,225
,68
33,950,789
2,890
34
(2
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0
8
0
9)
1
1
0
0
0
0
0
0
,210
142
,143
,991
,84
P /27
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9,579
,000
P /27
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,250
1,7
,023
,182)
,000
7,464)
,36
,593)
,832)
LT
230
261
491
LT
197,
880
133
577
(6
29
84
89
661
80
80,0
2026
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2026
2,748
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(54
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2,289
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33
33,950,789
(2
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0
1
3
9
0
0
5
0
0
0
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,451
P /26
2,632
7,211
9,736
,947
9,579
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71 |
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AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
2
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73 |
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74
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION THREE: AUDITOR’S REPORT
Wāhanga tuatoru:
Tā te kaitātari kaute
To the reader:
Section three:
Independent Auditor’s report on Auckland Council Group’s 2021-31 long-term plan
I am the auditor of Auckland Council Group (the Council). The Local Government Act 2002 (the Act)
Auditor’s report
requires the Council’s long-term plan (plan) to include the information in Part 1 of Schedule 10 of the
Act. Section 94 of the Act requires an audit report on the Council’s plan. Section 259C of the Act
requires a report on disclosures made under certain regulations. I have used my staff and resources
to carry out the assurance engagement of the Council’s plan.
Opinion
In my opinion:
•
the plan provides a reasonable basis for:
long-term, integrated decision-making and co-ordination of the Council’s
resources; and
accountability of the Council to the community;
•
the information and assumptions underlying the forecast information in the plan are
reasonable; and
•
the disclosures in Volume 2 on pages 269 to 272 represent a complete list of the disclosures
required by Part 2 of the Local Government (Financial Reporting and Prudence) Regulations
2014 (the Regulations) and accurately reflect the information drawn from the plan.
This opinion does not provide assurance that the forecasts in the plan wil be achieved, because
events do not always occur as expected and variations may be material. Nor does it guarantee the
accuracy of the information in the plan.
The audit was completed on 29 June 2021, which is the date on which my opinion is expressed.
Emphasis of matters
Without modifying my opinion, I draw attention to the following matters:
Uncertainty over three waters reforms
Volume 2 on page 164 and volume 2 on page 56 outline the Government’s intention to make three
waters reform decisions during 2021. The effect that the reforms may have on three waters services
provided is currently uncertain because no decisions have been made. The plan was prepared as if
these services wil continue to be provided by the Council, but future decisions may result in
significant changes, which would affect the information on which the plan has been based.
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SECTION THREE: AUDITOR’S REPORT
Uncertainty over forecast funding
The procedures included assessing whether:
Volume 1 on pages 54 to 62 outline the Council’s key assumptions in respect of its financial forecasts.
•
the Council’s financial strategy, and the associated financial policies, support prudent
I draw specific attention to the following assumptions, which are subject to higher levels of
financial management by the Council;
uncertainty and could affect the Council’s ability to fund its planned capital expenditure:
•
the Council’s infrastructure strategy identifies the significant infrastructure issues that the
•
Covid-19 border controls will remain until July 2022 with no further lock-downs.
Council is likely to face during the next 30 years;
•
•
The programmes agreed in the Auckland Transport Alignment Project will be fully delivered
the Council’s forecasts to replace existing assets are consistent with its approach to replace
and all parties involved will work together to ensure the agreed funding is made available,
its assets, and reasonably take into account the Council’s knowledge of the assets’
notwithstanding the indicative funding advice received from Waka Kotahi NZ Transport
condition and performance;
Agency was less than forecast.
•
the information in the plan is based on materially complete and reliable information;
•
The asset recycling target of $70 million per annum for the first five years of the plan and a
•
the Council’s key plans and policies are reflected consistently and appropriately in the
$90 million permanent savings target (to be achieved in 2022 and maintained in
development of the forecast information;
subsequent years) wil be met.
•
the assumptions set out in the plan are based on the best information currently available to
Changes in these assumptions could require the Council to reduce its planned capital expenditure
the Council and provide a reasonable and supportable basis for the preparation of the
and may result in a reduction in levels of service, without further increases in funding, either through
forecast information;
rates, debt or other funding sources.
•
the forecast financial information has been properly prepared on the basis of the
Uncertainty over the City Rail Link project
underlying information and the assumptions adopted, and complies with general y
accepted accounting practice in New Zealand;
Volume 1 on page 59 outlines the Council’s assumption that it will cost $4.4 billion to deliver the City
Rail Link project, which it expects to complete in late 2024. The Council’s share of the estimated total
•
the rationale for the Council’s activities is clearly presented and agreed levels of service are
cost is $2.2 billion. There remains a level of uncertainty about the costs related to the project.
reflected throughout the plan;
Volume 1 on page 59 also outlines that an agreement has not yet been reached between the Crown
and the Council over the future ownership of the assets that comprise the City Rail Link. The Council
•
the levels of service and performance measures are reasonable estimates and reflect the
has assumed that it will need to fund $408 million of future operating costs over the 10 year period
main aspects of the Council’s intended service delivery and performance; and
of the plan and depreciation for 50% of the assets.
•
the relationship between the levels of service, performance measures, and forecast
Changes in these assumptions would affect the total estimated project cost, future operating costs,
financial information has been adequately explained in the plan.
and depreciation, incorporated into the underlying information to the plan.
The security and controls over the electronic publication of the plan was not evaluated.
Basis of opinion
Responsibilities of the Council and auditor
My staff carried out the work in accordance with the International Standard on Assurance
Engagements (New Zealand) 3000 (Revised)
Assurance Engagements Other Than Audits or Reviews of
The Council is responsible for:
Historical Financial Information and took into account particular elements of the Auditor-General’s
Auditing Standards and the International Standard on Assurance Engagements 3400
The Examination
•
meeting all legal requirements affecting its procedures, decisions, consultation, disclosures,
of Prospective Financial Information that were consistent with those requirements.
and other actions relating to the preparation of the plan;
The Council’s evidence to support the information and disclosures in the plan and the application of
•
presenting forecast financial information in accordance with generally accepted accounting
its policies and strategies to the forecast information in the plan, has been assessed. The risks of
practice in New Zealand; and
material misstatement and the Council’s systems and processes applied to prepare the plan, have
•
having systems and processes in place to enable the preparation of a plan that is free from
been assessed to select appropriate procedures.
material misstatement.
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I am responsible for expressing an independent opinion on the plan and the disclosures required by
the Regulations, as required by sections 94 and 259C of the Act. I do not express an opinion on the
merits of the plan’s policy content.
Independence and quality control
In carrying out the work, my staff complied with the Auditor-General’s:
•
independence and other ethical requirements, which incorporate the independence and
ethical requirements of
Professional and Ethical Standard 1 issued by the New Zealand
Auditing and Assurance Standards Board; and
•
quality control requirements, which incorporate the quality control requirements of
Professional and Ethical Standard 3 (Amended) issued by the New Zealand Auditing and
Assurance Standards Board.
In addition to this report on the Council’s plan and all legally required external audits, I, my staff, and
appointed auditors have provided assurance reports on:
•
agreed-upon procedures engagements in relation to the requirements of the Freshwater
Improvement Funding Deed;
•
an assurance engagement in respect of information provided by the Auckland Council and
Auckland Council Group as required by the terms of its foreign borrowings programme; and
•
engagements for Watercare Services Limited in the areas of cyber and security risk
advisory, tax advisory, additional expenditure testing, probity services, project assurance
related to the central interceptor project and limited assurance on selected non-financial
information.
These engagements are compatible with the Auditor-General’s independence requirements. Other
than these engagements I have no relationship with, or interests in, the Council or any of its
subsidiaries.
Greg Schollum
Deputy Controller and Auditor-General
Wellington, New Zealand
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AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION FOUR: ADDITIONAL INFORMATION
4.1 HOW THE ORGANISATION IS STRUCTURED
Wāhanga tuawha:
4.1 How the organisation is structured
Auckland Council’s structure provides the scale for efficient delivery, a regional
He pārongo atu anō
perspective that provides a clear direction for Auckland, and representation
Section four:
that reflects diversity, local flavour and active public participation.
The Mayor promotes our vision for Auckland to
The Governing Body
Additional
be a world class city and is tasked with leading
the development of regional plans, policies and
This consists of the mayor and 20 councillors
who are elected on a ward basis. The Governing
information
budgets to achieve that vision.
Body focuses on the big picture and on
Auckland’s 20 councillors, who represent 13
Auckland-wide strategic decisions that are
wards, make up the Governing Body along with
important to the whole region. Auckland is
the Mayor. It focuses on strategic issues and
split into 13 wards, which are used for council
initiatives which affect Auckland as a region.
elections. Councillors are elected to represent
Some decision-making powers are delegated
the Auckland region and they also sit on council
to committees – three committees of the
committees.
whole (Environment and Community; Finance
and Performance; Parks, Arts Community
and Events; and Planning), and reporting
The Mayor
and standing committees (Appointments
The Mayor is elected by residents directly. The
and Performance Review; Audit and Risk;
mayor leads the council and has enhanced
Civil Defence and Emergency Management;
responsibilities including promoting a vision for
Regulatory; Strategic Procurement; Auckland
Auckland, providing leadership to achieve the
Domain; Value for Money and Council Controlled
vision, leading development of council plans,
Organisation oversight).
policies and budget, and engaging with the
We have 149 local board members, spread over
people of Auckland and its many communities
21 boards, who make decisions on the local
and stakeholders.
services, such as parks, libraries, community
halls and pools, which form the fabric of our
local communities.
81 | TE TAHUA PŪTEA TAU 2021-2031
AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION FOUR: ADDITIONAL INFORMATION
4.1 HOW THE ORGANISATION IS STRUCTURED
Ngā mema o te Kāhui Kāwanatanga
Tō mātou tira kaiwhakahaere
4.1.1 Governing Body members
4.1.2 Auckland Council Executive
Leadership Team
Auckland’s 20 councillors,
who represent 13 wards, make
up the Governing Body along
with the Mayor.
Hon Phil Goff CNZM, JP
Bill Cashmore
Mayor
Deputy Mayor Franklin
Jim Stabback
Patricia Reade
Simone Andersen
Chief Executive
Deputy Chief Executive
GM Nga Matarae –
Maori Outcomes
John Watson
Wayne Walker
Dr Cathy Casey
Hon Christine Fletcher QSO
Albany
Albany
Albert-Eden-Puketāpapa
Albert-Eden-Puketāpapa
Dr Claudia Wyss
Barry Potter
Craig Hobbs
Director Customer and
Director Infrastructure and
Director Regulatory
Community Services
Environmental Services
Services
Sharon Stewart QSM
Paul Young
Alf Filipaina
Fa’anana Efeso Collins
Howick
Howick
Manukau
Manukau
Phil Wilson
Peter Gudsell
Megan Tyler
Director, Governance &
Group Chief Financial Officer
Chief of Strategy
CCO Partnerships
Angela Dalton
Daniel Newman
Josephine Bartley
Chris Darby
Manurewa-Papakura
Manurewa-Papakura
Maungakiekie-Tāmaki
North Shore
Richard Hills
Desley Simpson
Greg Sayers
Linda Cooper JP
North Shore
Orākei
Rodney
Waitākere
Shane Henderson
Pippa Coom
Tracy Mulholland
Waitākere
Waitematā and Gulf
Whau
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AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
SECTION FOUR: ADDITIONAL INFORMATION
4.2 CO - GOVERNANCE ARRANGEMENTS
4.1.3 Local Boards
The board and the Governing Body will also
• Ms Liane Ngāmane
meet at least four times each year to discuss
• Mr Terrence (Mook) Hohneck
the council’s performance of its duties. The nine
The 21 local boards are a key part of the
community and community organisations in
• Mr Tony Kake
Independent Māori Statutory Board
governance of Auckland Council with a wide-
the local area
members are:
• Mr Denis Kirkwood
ranging role that spans most council services
• identify and develop bylaws for the local
• Ms Josie Smith
and activities. Local boards make decisions
• Mr David Taipari, Chairperson
board area and propose them to the
• Ms Karen Wilson
on local matters, provide local leadership,
Governing Body
• Hon. Tau Henare Deputy Chairperson
support strong local communities and provide
For more details on the IMSB, please visit
• any additional responsibilities delegated by
• Mr Glenn Wilcox
important local input into region-wide strategies
www.imsb.maori.nz
the Governing Body, such as decisions within
• Mr Renata Blair
and plans.
regional bylaws.
Local boards:
Each year, local boards and the Governing
4.1.6 Advisory panels
• make decisions on local matters, including
Body agree individual local board agreements,
setting the standards of services delivered
Auckland Council’s demographic and sector
Demographic advisory panels:
which set out the local activities, services and
locally
advisory panels enable the council to ensure
levels of service that will be provided over the
• Disability Advisory Panel
that the views and needs of a wide range of
• identify the views of local people on regional
coming year. The agreements for 2021/2022
• Public Art Advisory Panel
communities of interest are incorporated in
strategies, policies, plans and bylaws and
are included in this 10-year Budget and can be
council’s decision-making. Advisory panels
• Rainbow Communities Advisory Panel
communicate these to the Governing Body
found in Volume 3.
provide advice to the Governing Body and
• Ethnic Peoples Advisory Panel
• develop and implement local board plans
To find out which local board area you are in,
council staff within the remit of the Auckland
• Seniors Advisory Panel
(every three years)
follow this path from the website home page:
Plan on the following areas:
• Pacific Peoples Advisory Panel
• develop, monitor and report on local board
About Council > Local Boards > Find your ward
• Auckland Council’s regional policies, plans
• Youth Advisory Panel
agreements (every year)
and local board
and strategies
Sector Panels:
• provide local leadership and develop
• Regional and strategic matters including
relationships with the Governing Body, the
• Auckland City Centre Advisory Board
those that Council-Controlled Organisations
• Rural Advisory Panel
4.1.4 Council Controlled Organisations
deal with
• any matter of particular interest or concern
• Heritage Advisory Panel.
to Auckland’s diverse communities.
For more detail on Auckland Council’s
The council uses Council Controlled
between CCOs and the council, and the culture
advisory panels, please visit our website
Organisations (CCOs) to apply commercial
of CCOs.
Auckland Council has seven demographic
www.aucklandcouncil.govt.nz/advisorypanels
disciplines and specialist expertise in the
advisory panels and three sector panels.
The panel reported their findings in July 2020.
management of key regional council assets and
The council group is working together to
efficient service delivery. For more information
implement the 64 recommended improvements
4.2 Co-governance arrangements
about our CCOs please see Section 3.8 in
made by the review panel.
Volume 2.
As a result of Treaty of Waitangi Settlements,
established under the Ngā Mana Whenua
The report of the review panel can be found
legislation has established co-governance
o Tāmaki Makaurau Collective Redress Act
The council commissioned an independent
her
e: www.aucklandcouncil.govt.nz/about-
entities which require the council to co-govern
2014 and has six council appointees.
review of its substantive council controlled
auckland-council/how-auckland-council-works/
alongside mana whenua as Treaty partners:
organisations in early 2020. The independent
In addition, the council nominates two members
council-controlled-organisations/Pages/review-
panel was tasked with reviewing: the
I. The Ngāti Whātua Ōrākei Reserves Board was
of the Mutukaroa (Hamlins Hill) Management
of-council-controlled-organisations.aspx
effectiveness of the CCO model, roles and
established under the Ōrākei Act 1991 and
Trust and four members of the
responsibilities, the accountability mechanisms
currently operates under the Ngāti Whātua
Te Motu a Hiaroa (Puketutu Island) Governance
Ōrākei Claims Settlement Act 2012 and has
Trust and local board members participate
4.1.5 Independent Māori
three council appointees.
alongside mana whenua in the Pukekiwiriki
Statutory Board
II. Te Poari o Kaipātiki ki Kaipara (officially
Pā Joint Management Committee, Wai o Maru
the Parakai Recreation Reserve Board) is
Co-Management Committee, Te Pūkaki: Tapu
established under the Ngāti Whātua o Kaipara
o Poutukeka Historic Reserve and associated
The Independent Māori Statutory Board (IMSB)
has voting rights on Auckland Council’s key
Claims Settlement Act 2013 and has three
Māori Lands Co-management Committee,
has specific responsibilities and legal powers
decision- making committees and promotes
council appointees.
and Rangihoa and Tawaiparera Committee (in
to promote issues of significance to Māori and
cultural, economic, environmental and social
abeyance). Please see Section 4.0 of Volume 2
assist Auckland Council to make decisions and
well-being issues that are significant to Māori. It
III. The Tūpuna Maunga o Tāmaki Makaurau
for more information.
act in accordance with statutory provisions
provides direction and guidance to help improve
Authority (or Maunga Authority) is
relating to Te Tiriti o Waitangi. The Board
council’s responsiveness to Māori.
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SECTION FOUR: ADDITIONAL INFORMATION
4.4 GLOSSARY OF TERMS
Me pēhea te whakapā mai ki te kaunihera
Papakupu kupu
4.3 How to contact the council
4.4 Glossary of terms
Accommodation Provider
Auckland Unlimited
Online aucklandcouncil.govt.nz/contactus
Targeted Rate (APTR)
The organisation that manages Auckland Zoo and
Phone
09 301 0101
A rate paid only by owners of properties such as
the Auckland Art Gallery along with venues used for
motels, hotels and Airbnb properties. The money
conventions, shows, concerts and major sporting
Post
Auckland Council, Private Bag 92300, Auckland 1142
received from this rate is used to fund major events
events. Auckland Unlimited also delivers major
and undertake other activities to attract visitors to
events for council and provides tourism promotion
Auckland.
and economic development services on the council’s
Activity or service
behalf.
4.3.1 Locations that offer
The services the council provides to the community.
Capital investment, capital expenditure
This includes things like running buses, collecting
or capital programme
council services
rubbish and maintaining parks.
Building (or buying) assets such roads, pipes and
Bledisloe Lane (CBD)
Orewa
Annual Plan, Annual Budget or
buildings that are we use to provide services to
Bledisloe House, Ground Floor,
50 Centreway Road, Orewa
Emergency Budget
Aucklanders.
24 Wellesley Street, Auckland CBD
Papakura Sir Edmund Hillary Library
The plan that sets out what the council seeks to
Council-controlled organisation (CCO)
Aotea / Great Barrier Island
1/209 Great South Road, Papakura
achieve in a financial year, the services we will
A company (or other type of organisation) that is at
81 Hector Sanderson Road,
Pukekohe Library, Franklin: The Centre
provide, how much money will be spent and where
least 50 per cent owned by the council or for which
Claris, Great Barrier Island
12 Massey Avenue, Pukekohe
that money will come from. Last year’s budget is
the council has at least 50 per cent control through
Helensville
referred to as our Emergency Budget because of the
voting rights or the right to appoint directors. These
Takapuna Library
49 Commercial Road, Helensville
need to respond to a significant financial challenge
organisations each have their own board of directors
9 The Strand, Takapuna
for 2020/2021.
(or equivalent) and their own staff who manage day-
Henderson
Te Manawa
6 Henderson Valley Road, Henderson
Asset
to-day operations.
11 Kohuhu Lane, Westgate
An item of value, usually something of a physical
Council group
Huapai
Waiheke Island
nature that you can reach out and touch, that will
Auckland Council and the Council-controlled
296 Main Road (SH16), Huapai
10 Belgium Street, Ostend,
last for more than one year. Infrastructure assets
organisations, along with the council’s investments in
Kumeū Library
Waiheke Island
are physical items such as roads, pipes and council
Ports of Auckland and Auckland Airport.
296 Main Road, Kumeū
buildings that are needed to provide basic services.
Warkworth
Deferral
Manukau
1 Baxter Street, Warkworth
Asset recycling
Delaying the building or buying of assets until a later
Ground floor, Kotuku House, 4 Osterley Way,
This means letting go of some of our less well used
time.
Manukau
assets to help pay for new ones that will help us
Development contributions
deliver better services to the community. Usually
this means selling assets to somebody else, but
A charge paid by developers to the council when they
For opening hours and a list of services available at each service centre,
sometimes it is possible to instead agree that
build or subdivide property. The council uses this
visit aucklandcouncil.govt.nz
someone else will use the asset for a period of time
money to help pay for the new assets such as roads,
before handing it back to us in the future.
pipes and parks that are needed to support the new
households or businesses that will occupy the new
Auckland Council or the council
properties that have been developed.
The local government of Auckland established on
Facilities
1 November 2010. The council is made up of the
Governing Body, 21 local boards, and the council
Buildings or other structures used to provide services
organisation (operational staff).
to Aucklanders.
Auckland Transport
Financial year
The organisation that delivers transport services on
The year from 1 July to 30 June the following year.
behalf on the council.
The council budgets and sets rates based on these
dates rather than calendar years which end on 31
December.
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SECTION FOUR: ADDITIONAL INFORMATION
4.5 KEY WORD INDEX
General rates
Savings
4.5 Key word index
Paid by all ratepayers to fund general council
Reducing the amount of money that the council pays
services.
out in a particular financial year. This could refer to
Governing Body
being more efficient (paying less money to get the
same service) or to saving money by delivering less
The Governing Body is made up of the mayor and 20
services to the community. It also sometime refers to
Council Controlled Organisation (CCO)
Auckland Unlimited
councillors. It shares its responsibility for decision-
spending money later than we previously planned.
2, 44, 82, 85, 86, 88
22, 32, 46
making with the local boards. The Governing Body
focuses on Auckland-wide strategic decisions.
Targeted rates
Development Contributions
Funding
Grants and subsidies
A rate that is paid by only a particular group of
86, 33, 48, 55, 56, 63
1, 5, 6, 11, 12, 15, 16, 18, 21, 22, 23, 24, 25,
ratepayers or is used to fund only a particular set
Money that someone pays to the council to cover
of activities. This is used when the council wants to
Governing Body
26, 32, 33, 34, 35, 36, 57, 58, 59, 60, 61,
(or help cover) the cost of providing a service to
make sure that those ratepayers who benefit from an
44, 45, 82, 83, 85, 86
62, 63, 64
Aucklanders.
activity pay for it (as opposed to spreading the cost
General Rates
Investment
Sometimes grants also refers to money the council
across all ratepayers) or where the council wants
1, 2, 6, 11, 19, 26, 27, 29, 30, 32, 35, 55, 89
1, 2, 5, 6, 8, 9, 11, 12, 14, 16, 17, 18, 19, 20,
pays to a community organisation to provide services
to make sure that money collected for a particular
21, 22, 23, 25, 26, 27, 28, 29, 30, 32, 33,
to Aucklanders, rather than council providing those
purpose is only spent for that purpose.
Rates
34, 39, 43, 45, 53, 55, 56, 58, 59, 60, 61,
services directly.
Transport
1, 6, 11, 15. 18, 19, 20, 21, 22, 23, 24, 26, 27,
62, 64, 65
Local boards
Local roading, parking and public transport services
29, 30, 32, 34, 35, 37, 47, 53, 55, 56, 57,
There are 21 local boards, which represent their local
provided for Aucklanders. These services are usually
61, 62, 64, 65, 66, 72, 88, 89
City Rail Link
communities and make decisions on local issues and
provided by Auckland Transport, except for the City
9, 32, 59
Targeted Rates
services.
Rail Link project which is delivered separately in
1, 15, 26, 35, 47, 64, 65, 87
Māori outcomes/mana outcomes
Operating budget or operating expenditure
partnership with central government.
6, 16, 17, 82
Money that the council spends on providing
Waste
Savings
services in the current financial year, as opposed to
Generally refers to household and business rubbish,
1, 2, 6, 11, 24, 61
Debt 9, 10, 11, 25, 27, 32, 33, 34, 48, 49, 54, 55,
building things that will provide services for years
along with recycling and things like food scraps which
Water quality
to come. This includes spending money on staff
can be reused for other purposes.
57, 58
1, 6, 15, 19, 29, 30, 65
and contractors to do things like process building
Watercare
Priorities
consents, open libraries, run buses and maintain
Climate Change
Watercare Services Limited, the organisation that
14, 16, 20
parks. It also includes things like paying grants to
1, 2, 5, 6, 8, 9, 12, 17, 18, 19, 20, 21, 23, 24,
community organisations and paying interest on
provides water supply and waste water services to
Aucklanders.
58, 62
Assets
money the council has borrowed.
1, 2, 6, 8, 9, 11, 12, 14, 19, 20, 24, 25, 26,
Natural Environment
Eke Panuku Development Auckland
27, 32, 35, 39, 43, 44, 46, 47, 49, 50, 51,
1, 6, 8, 15, 23, 30, 64, 65
The organisation that provides property
52, 53, 58, 59, 60, 61, 62, 64,, 66, 68, 72
management and development services to the
council and Aucklanders.
Rates
A tax against the property to help fund services and
assets that the council provides.
Revenue or income
Money that the council receives (or is due to receive)
to pay for the cost of providing services to Auckland.
Cash revenue specifically refers to the money
received during the year, and excludes things like
postponed rates which will be received later.
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AUCKLAND COUNCIL 10 -YEAR BUDGET 2021 – 2031: VOLUME 1
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.
Te tahua pūtea tau 2021-2031. Te tahua pūtea whakarauora. The 10-year budget 2021-2031. Long-
term plan. Our recovery budget. Volume 1: Overview
ISSN 2624-0300 (Print)
ISSN 2624-0319 (Online)
ISBN 978-1-99-100236-5 (Print)
ISBN 978-1-99-100237-2 (PDF)
3-volume set
ISBN 978-1-99-100242-6 (Print)
ISBN 978-1-99-100243-3 (PDF)
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