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Mayor delivers Annual Plan Proposal

10 December 2015


Mayor delivers Annual Plan Proposal


Mayor Len Brown says the 2016-2017 Auckland Council Annual Plan should focus on financial stability while delivering on council decisions.

The Mayor delivered his proposal on the plan – essentially the proposed council budget for 2016-2017 – to the Finance and Performance Committee this morning.

“Having been through a major review of service and investment levels as part of the 2015-25 Long-term Plan process, and having had several years of significant change in our rating system from amalgamation, this Annual Plan is about stability and delivering on our decisions,” says Mayor Brown.

“Projected rate increases and debt have been reduced significantly in the current LTP from previous projections. Core costs are tracking below the 2009 levels on a per capita basis and investment in the assets that current and future Aucklanders need and will need continues at an unprecedented level.”

Mayor Brown adds the net result of the reduction in operating costs, as well as the capital programme, will allow Auckland Council to continue to address the challenges of growth and improving the city’s transport infrastructure.

A capital programme of $1.9 billion includes a transport programme of $720 million, water and wastewater of $440 million and investment in parks, sport and recreation of $170 million.

“The rates increase included in the LTP for year two based on this capital works programme and continuation of our day to day services at current levels is 3.2 per cent. However I would like to see this reduced to something close to 2.5 per cent.

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“I am not proposing we consult on any further reductions to service levels but I am asking staff continue to scrutinise our costs, particularly those macro issues of inflation and interest rates.”

A shortlist of rating policy issues for consultation with the community has been drawn up following discussions with the Finance and Performance Committee:

The Uniform Annual General Charge changing within a range of $350-$650
An option of the Interim Transport Levy to collect more from the business sector (in line with the general rate) and reduce the imposition on other ratepayers. This option would:
Increase the share of the interim transport levy to be met by businesses from 14.7% to 32.7% for 2016/17 and 32.3% for 2017/18
Share the business interim transport levy among business on the basis of capital value rather than a fixed charge
An extensive piece of work has been carried out by staff looking at the options for the rating of Maori Freehold Land
An option that rates for farms over 50 hectares be reduced and reallocated across the entire rating base
The targeted rate for septic tank replacement to be extended from the existing “retrofit your home” scheme to include the replacement of septic tanks in in specific pilot areas -West Coast lagoons and Waiheke’s Little Oneroa.

The Mayoral Proposal will be considered by the Governing Body on 17 December 2015.

ENDS

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