Auckland Council

2016 Pre-Election Report

Table of Contents
Message from the chief executive .............................................................................. 4
1

The growth challenge .......................................................................................... 5

The journey so far ................................................................................................ 8

The current plan................................................................................................. 16

Key decisions for the new council ...................................................................... 23

Basis of preparation ........................................................................................... 27

Financial information.......................................................................................... 28

About Auckland Council ..................................................................................... 34

Glossary of terms............................................................................................... 35

2016 Auckland Council Pre-Election Report | 3

Message from the chief executive

Auckland is undergoing a huge transformation. Our region is experiencing
unprecedented growth as evidenced by increasing numbers of residents, greater
commercial and residential construction, improved public spaces, and new transport
infrastructure.
Aucklands growth means that the Auckland Council is facing a number of
challenges. This document summarises the most important of these challenges,
outlines the councils approach to them so far and what more needs to be done to
enable Aucklands unprecedented growth.
Its worth noting that growth may hold major opportunities for Auckland, from
attracting new investments and talent, to creating higher value jobs and businesses
through to building a more vibrant, sustainable and exciting region.
This report touches on some key milestones since the councils creation in 2010,
includes a snapshot of the groups performance, and key financial measures from
the past three years and projections for the next three.
It also includes highlights from our current 10-year budget, an outline of the councils
investment programme and what major infrastructure projects are planned over the
next three decades.
Importantly, the document includes a discussion of what major decisions the new
council might have to make in the areas that matter most to Aucklanders transport,
housing, our future port needs, the mix and retention of council services, ways to
fund investments and ways to make the most of our current assets.

Stephen Town
Auckland Council Chief Executive

1 The growth challenge

Auckland is the fastest-growing region in New Zealand because more people want to
live and work here than anywhere else in the country. In 2015 Aucklands GDP grew
by 2.8 per cent and 23,000 new jobs were created.
Last year, Auckland grew by an additional 117 people every day and is projected to
grow by 736,000 people over the next 30 years. If the highest growth forecasts prove
correct, we could see population growth of one million people over that period. This
means up to 400,000 new dwellings and 277,000 additional jobs could be needed.
To help support this growth, we need services, infrastructure and facilities that can
cope with the added demand. This includes increased new transport, water,
wastewater and stormwater infrastructure to ensure we can connect newly built
homes, and new community facilities for Aucklands expanding suburbs. The cost of
meeting this demand is substantial. Despite significant funding streams from central
government and potential opportunities to partner with the private sector, funding for
Auckland infrastructure is constrained.
Funding is currently a combination of rates, user charges, borrowing and central
government subsidies. These are carefully balanced to ensure we operate in a
fiscally sound and prudent manner. However, we are operating in an environment
where ratepayers have expressed their preference for low debt and minimal rate
increases and we are reaching the ceiling of what we can responsibly borrow to fund
new infrastructure investment. Figure 1 shows how preparing for the future is
affecting rate increases for 2016/2017.
To keep rates affordable for both current and future Aucklanders, we need to be
smart about how we fund growth related investment and keep costs down. Some of
the key ways we are doing this are:

making the best use of what we already have, such as land that has already
been developed or targeted for development so that we can leverage existing
infrastructure wherever possible. The zoning rules in the Proposed Auckland
Unitary Plan would provide for much of the future growth within the existing
urban area;
working with central government and looking at the range of tools and levers
we as a council can use to influence new housing development. A key
example has been the use of Special Housing Areas to fast track consenting
of new residential development;
planning for well-managed expansion into new greenfield areas. The notified
Proposed Auckland Unitary Plan identified 11,000 hectares of currently rural

2016 Auckland Council Pre-Election Report | 5

land for future urbanisation that could accommodate 110,000 dwellings. Our
Future Urban Land Supply Strategy sets out a staged approach to developing
this land as $17 billion of supporting infrastructure investment is rolled out
over the next 30 years;
planning our infrastructure over a long-term (30 year) horizon to ensure we
provide the right infrastructure, in the right place at the right time, while also
ensuring environmental sustainability and improving resilience to natural
disasters;
making the best use of our assets. We take a long-term and network-wide
approach to managing our assets to improve their utilisation while ensuring
they remain safe, cost effective and fit for purpose over time. We are also
starting to look at whether the capital tied up in some of our assets could be
better used elsewhere;
using demand-management measures that encourage Aucklanders to make
better use of existing services and facilities. For example, Watercare is
targeting a 15 per cent reduction in water consumption per capita from 2004
levels by 2025;
investing in game-changing infrastructure projects. As demonstrated by the
original opening of the Auckland Harbour Bridge, the provision of
infrastructure can shape growth and influence demand, rather than just meet
the needs of growth. Major projects such as the City Rail Link have the
potential to significantly reshape growth and demand patterns across large
parts of Auckland.

At the same time as responding to rapid population growth, we also need to keep
delivering a wide range of day-to-day services and respond to the changing
demands and expectations of an increasingly diverse community of Aucklanders.
We know from extensive public feedback, that foremost among these expectations is
the desire to see more progress with Aucklands transport.

2016 Auckland Council Pre-Election Report | 7

2 The journey so far

In 2009, the Royal Commission on Auckland Governance compared the
performance of Auckland to other international cities in direct competition. It found
that while Auckland offered an amazing location, great lifestyle, highly skilled people
and good education and research facilities, Auckland was falling behind other cities
that were more effectively investing in their future.
Since Auckland Council was formed in 2010, we have put in place a single plan for
Auckland and used this to guide significant additional investment as shown in Figure
2.

Figure 2 - Capital Expenditure ($m)

2,000
1,500
1,000
500
June
2008

June
2009

June
2010

June
2011

June
2012

Former Councils plus Watercare

June
2013

June
2014

June
2015

June
2016

Auckland Council Group Actual

Auckland Council Group Forecast

This additional investment since amalgamation has allowed us to provide new assets
to respond to the rapid population growth and help meet community expectations.
Key investments included:

almost a billion dollars on roads and footpaths, including Tiverton Road and
Wolverton Street in New Lynn, Albany Highway, Te Atatu Road, and over
$300 million on the first stages of the Auckland Manukau Eastern Transport
Initiative (AMETI)
$1.1 billion on public transport, including the rollout of 57 electric trains, the
new rail station and transport hubs at Panmure and Manukau, upgraded
stations and bus interchanges across the network, and new ferry facilities and
services to Hobsonville and Beach Haven
$220 million on land for new parks, including local parks in new developments
$190 million expanding and improving our stormwater network

$1.5 billion on water and wastewater infrastructure, including the upgrade of

the Waikato Water Treatment Plant, expanding networks to support urban
growth, and wastewater solutions to protect our harbours
$50 million on new or upgraded libraries including thuhu, Rnui,
Devonport, Wellsford and Waiheke.

This investment has resulted in the value of our assets growing from $29 billion at
amalgamation to a projected $44 billion as at 30 June 2016. To help pay for this
investment, council debt has increased from $3.9 billion to $8 billion since
amalgamation.
The council considers this to be appropriate because the increase in debt is primarily
driven by investment in new assets with long lives. The benefits from this
expenditure will be spread over time. Using debt financing means that costs will be
shared with those people who will benefit from the assets in the future, including this
generation and future generations of Aucklanders. Figure 3 compares the
investment in new assets each year with the annual increases in council debt.

Figure 3 - New assets and growth in debt ($m)

1,200
1,000
800
600
400
200
0
Actual 2012

Actual 2013

Actual 2014

New works capital expenditure

Actual 2015

Forecast 2016

Growth in borrowings

To maintain debt at a sustainable level we have set limits on the councils borrowing
in our financial strategy. While total group debt is estimated to be $8 billion as at 30
June 2016, this is still a prudent level in comparison to our income. This prudent
approach to debt is a key reason why we have a credit rating of AA (stable) outlook
from Standard and Poors the highest in New Zealand apart from central
government. Recent reports by Ernst & Young (EY) and Cameron Partners have
also confirmed that the councils finances are in good shape. However, they do note
that there is limited headroom for the council to take on additional debt compared to
our current plans.

2016 Auckland Council Pre-Election Report | 9

Table 1 shows how the councils actual prudential ratios have compared to our limits
over recent years.
Financial year ended
Net debt as a percentage
of total revenue

Limit

Actual
2012*

Actual
2013

Actual
2014

Actual
2015

Forecast
2016

275%

148%

165%

177%

192%

203%

Net interest as a
percentage of total
revenue

15%

10%

10%

11%

12%

11%

Net interest as a
percentage of annual
rates income

25%

15%

18%

19%

21%

18%

*2012 was the first full year for which group results were produced to enable ratios to be published

To keep rates affordable while absorbing the higher ownership costs associated with
these assets (such as interest, depreciation and maintenance costs), we have been
working hard over the past five years to contain core costs and achieve efficiency
gains of more than $200 million per annum so far. Over the same period we
absorbed a population equivalent in size of Tauranga. Figure 4 shows that the
councils core operating costs from 2010 to 2015 (as reported in our audited
accounts) on a per capita basis are still well below the level of 2009 immediately
prior to amalgamation.

10

Some of the key ways we have achieved these efficiency gains include:

smarter procurement. By reducing the number of suppliers we use we have

successfully negotiated significant savings on property maintenance, parks
maintenance and office consumables. We have also renegotiated our contract
with SAP to achieve $33 million of savings over the next 10 years
simpler and better information technology. We have introduced scanning
technology to improve invoice processing and GPS tracking of fleet vehicles
to enable more efficient use of council vehicles. We have also identified how
we can achieve significant information technology savings in the future (see
Box 1)
reducing the number of office buildings we occupy. Even after incurring some
sizeable repair costs for the councils headquarters in Albert Street, reducing
the buildings we occupy from seven to three will continue to provide
significant savings compared to the costs of continuing to occupy the seven
old buildings or leasing alternative accommodation in the city centre (see Box
2). In addition, Watercare has consolidated its accommodation around
Newmarket and a project to consolidate Auckland Transports accommodation
is currently underway
bringing more work in house to reduce our reliance on external providers. We
have established our own in-house graphic design studio and in-housed some
animal management services to achieve savings of $5 million per annum.
Watercare has also in-housed water and wastewater maintenance services.

While bringing work in-house has reduced cost, it also increased the total number of
people employed by the council. In addition, the need to provide more services to
more people as the city grows has also meant that the size of the councils workforce
has increased each year. Since amalgamation, the council has had to employ
enough additional workers to service a population that has increased by an
additional 130,300 people. However, despite the population increasing by nearly
nine per cent, the number of staff employed by Auckland Council still remains below
the number of council workers prior to amalgamation (see Box 3).
To support our desire to become a more efficient and effective organisation, with
citizens and customers at the centre of what we do, we have developed a
performance plan for 2017-2019 that sets our key improvement initiatives and
priorities for the next three years. This plan also defines the key measures of
success to be used to hold the organisation accountable for delivering these
improvements over time. Our performance plan is available to view here1.

http://www.aucklandcouncil.govt.nz/EN/AboutCouncil/HowCouncilWorks/PerformanceAndTransparency/Pages/home.aspx

2016 Auckland Council Pre-Election Report | 11

Box 1 - Focus on information technology

A review of the councils Information and Communications Technology (ICT) services has
identified how $37 million of savings can be achieved by prioritising the number of projects
currently underway and stopping under-performing or non-essential projects. The review also
identified $11 million of on-going annual savings.
The newly-formed Auckland Council inherited more than 5,000 systems from the former
councils and work to date has focused on integrating these. This work will add to the savings
achieved by the renegotiation of the SAP contract which will deliver savings of $33 million
over the next 10 years.
Other recommendations from the review include:

exploring which ICT functions could be better performed by third parties

an initial estimate indicates that $2.1 million could be saved through increased efficiencies
and reductions of staff numbers if some functions were outsourced
dis-establishing non-critical internal functions could save an estimated further $1 million.

12

Box 2 - Focus on office buildings

The decision to purchase 135 Albert Street for the Auckland Councils central city headquarters
will continue to deliver substantial value for money for ratepayers and productivity gains for staff
even with the cost of additional repairs.
A year after amalgamation, it became clear that the councils central city accommodation was
no longer viable or providing value for money for ratepayers. Staff were spread across seven
locations; leases were expiring on some offices, other offices had significant safety issues, and
staff were wasting valuable time moving between locations.
The move has cut the amount of dead time staff had previously spent moving between locations
and reduced the amount spent on rented office space.
In a sign of the strong commercial interest in our building, the council has received unsolicited
offers to buy the building at prices in the region of $200 million to $250 million.
The doubling of the value of the building provides future options for the council to release the
capital at a later stage.
Purchasing 135 Albert Street remains a sound decision for the council to have taken. It followed
a strong business case and a robust process.

2016 Auckland Council Pre-Election Report | 13

Box 3 - Focus on staff numbers

To support the citys rapid growth, Auckland Council had around 200 more staff in June 2015
than it did a year earlier. The city grew by 45,000 people last year, up from an increase of 35,000
in 2014. The council group (including Watercare and Auckland Transport), hired 208 more fulltime equivalents (FTEs) in the 2015 year.
For example, the number of building consents increased six per cent in 2014/2015, prompting
the council to employ the equivalent of 42 more people in the building and resource consents
areas to process them.
Auckland Transport, which oversaw big projects such as the rollout of the electric trains and the
first full year of the integrated HOP passenger card, employed 116 more FTEs to deliver these
additional projects and services. Likewise Watercare employed 58 more FTEs to operate,
maintain and deliver the additional water and wastewater infrastructure for the growing city.
There were also one-off events that required more staffing, such as the hearings on the Auckland
Unitary Plan and the handling of a record number of submissions on the council's new 10-year
budget. Nevertheless, the council made an operating surplus of $80 million for the year, and its
$2.2 billion spend on staff and suppliers was in line with budget.
As the following figure shows, staff numbers are around 275 fewer than when Auckland Council
was created in 2010, despite the need to serve an additional 130,300 Aucklanders.

Note: the full time equivalent (FTE) numbers in Auckland Council Group excludes staff employed by Ports of
Auckland.

14

Key highlights and achievements since amalgamation

consolidated seven legacy human resource systems, eight finance systems and six
purchasing systems
brought together a diverse workforce and united them behind one common purpose
to build the worlds most liveable city and deliver Aucklanders great value for money
replaced complex legacy bylaws with new simplified bylaws
reduced core operating costs per capita
agreed with central government timelines and funding for the City Rail Link and
progressed a joint approach to transport via the Auckland Transport Alignment Project.
Construction of the City Rail Link has now begun
hosted the Rugby World Cup 2011 and redeveloped the waterfront at Wynyard Quarter
formed a new development agency to unlock barriers to enable urban transformation
significantly increased the quality and quantity of water supply for the Franklin area
adopted a Waste Management and Minimisation Plan with a target of zero waste by
2040
introduced a single rating system that ensures properties across Auckland of a similar
value and use are charged a similar amount of rates
introduced monthly billing and standardised charging for water and wastewater
services
introduced the AT HOP stored value card for public transport. With almost one million
cardholders, this is now New Zealands third largest payment card after Visa and
Mastercard
prepared the Auckland Plan to guide Aucklands future over the next 30 years
paved the way for one quality Unitary Plan, replacing 14 district and regional plans
created 154 Special Housing Areas with a total potential yield of nearly 65,000 new
homes enough to meet Aucklands current housing shortfall and provide for at least
three years of future growth.

2016 Auckland Council Pre-Election Report | 15

3 The current plan

Following feedback from more than 27,000 Aucklanders, last year we settled on our
10-year budget for 2015 to 2025 that will see a larger investment in Auckland over
the next 10 years than in any previous decade: $18.7 billion. This budget sought to
balance the demands of responding to population growth and community
expectations with the need to keep our city affordable.
Our 10-year budget is available to view here2.

Keeping Auckland affordable

This 10-year budget sets a maximum average general rates increase of 3.5 per cent
each year3 and a target of interest expense being no more than 12 per cent of our
income. With these caps on rates increases we then sought to maximise our
investment in Auckland by planning to get the most out of every dollar we collect.
The primary ways we plan to do this are:
1.

Efficiency savings More for less

We plan to improve our technology and processes to increase efficiency gains
from $183 million for the 2014/2015 year to more than $300 million per annum by
2025.

2.

Disposal of non-strategic surplus assets

We have set a target of selling an average of $66 million per annum of surplus
property assets (land and buildings that are not essential for providing council
services) over the next 10 years to help fund new investment for Auckland.

3.

Return on investments
We also plan to explore opportunities to maximise value for ratepayers by
optimising the return across our broad portfolio of financial investments, including
our shareholdings in Auckland Airport and Ports of Auckland.

4.

Partnering and new funding mechanisms

We will achieve greater progress by partnering with other organisations including
private sector businesses, central government, charities and community groups.
More effective partnering will ensure every dollar we collect goes further. We can
also do more if we consider different ways of paying for things, such as entering
into partnerships arrangements with private sector operators to build, finance and
operate new infrastructure or facilities.

http://www.aucklandcouncil.govt.nz/en/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspx

This limit excludes targeted rates and refers to the average across all ratepayer groups, including residential, business, farm
and lifestyle properties. Rates for individual properties will vary depending on a range of factors including property revaluations
for rating purposes, what the property is used for and any targeted rates that might apply to that property.

16

Investing in transport
Transport impacts daily on the lives of almost all Aucklanders and the feedback on
our 10-year budget was that a majority of our residents want to see more progress in
this area. However, the funding set out in our 10-year budget will not enable us to
deliver the full transport investment programme that we know Aucklanders want and
need.
Moving to outstanding public transport with far greater levels of use is critical for
peoples quality of life and Aucklands economic performance. This can be achieved
by improving the accessibility, frequency, reliability and overall performance of public
transport. At the same time we need to improve the performance of the transport
network as a whole by investing in our roads and footpaths, and by providing the
necessary infrastructure to make walking and cycling real options for more
Aucklanders.
Discussions with central government via the Auckland Transport Alignment Project
are now well underway on the preferred approach to developing Aucklands transport
system over the next 30 years. In the meantime, to address our most urgent
transport priorities, we introduced an Interim Transport Levy from July 2015 to June
2018. This now enables us to invest an additional $523 million in transport over that
three-year period across Auckland.
The largest part of this additional investment relates to new infrastructure to support
public transport, walking and cycling. The use of this levy has enabled us to get on
with delivering urgent initiatives such as:

52 kilometres of new cycleways

45 additional kilometres of bus lanes
six new, replaced or extended park and rides
route protection/enabling works for the North Western Busway
earlier delivery of local and arterial road improvements
earlier delivery of bus-rail interchanges.

An affordable investment programme

Given our prudent approach to borrowing, a 3.5 per cent cap on average general
rates increase, and the revenue from the Interim Transport Levy, we can afford to
spend $11.9 billion over the next 10 years on new assets as well as $6.8 billion
looking after our existing ones. Although this means that we will be investing more
than in any previous decade, we are working to a constrained budget and we wont
be able to deliver everything we would like, as early as we would like.

2016 Auckland Council Pre-Election Report | 17

Our $18.7 billion total capital expenditure programme is also supported by $2.9
billion of capital subsidies, $2.4 billion of development contributions and $500 million
of proceeds from the disposal of surplus assets over the next 10 years.
Planning for population growth and additional housing has played a key role in
developing our asset management plans and in informing how, when and where key
investments should be made. Table 2 shows some of the major infrastructure
projects we plan to invest in over the next 30 years from our 30-year infrastructure
strategy. This strategy will be updated periodically to reflect new information, such as
the outcome of the Auckland Transport Alignment Project.
This level of spend will result in council debt growing by $4.4 billion over the next 10
years, from $7.2 billion in July 2015 to $11.6 billion by June 2025. In line with our
target, our projected interest expense does not exceed 12 per cent of our income in
any of the next 10 years.
However, this spending plan falls short of meeting Aucklands aspirations for
transport, particularly with more people sharing our roads and public transport over
time.
Another area where key trade-offs had to be made was in the level of asset
renewals. While the level of renewal expenditure over the next three years will
enable us to maintain our current service levels without taking unacceptable risks,
this is not the case for our transport assets from 2018/2019 onwards. Without
additional transport funding, we will see deterioration in the condition of our transport
assets and a resulting decrease in the level of service over the seven years from
2018 to 2025. We will minimise and closely monitor this through continued active
asset management, with a primary focus on safety.
Similarly, the capital programme is not quite sufficient to maintain all of our
community assets in their optimal condition from 2018/2019 onwards, while also
meeting all of the other demands for spend in this area. However, we know that
some of these assets are poorly utilised and/or provide less value than others.

18

Table 2: Major infrastructure projects over the next 30 years

Estimated project costs and timing from Auckland Councils
Long-term Plan 2015-2025
City Rail Link

AMETI

Mill Road

Transport

East-West
Connections

City Centre
Public Transport
Improvements
SMART
(Airport Rail Link)

Stormwater

Water Supply

Wastewater

Penlink

Central
Interceptor Spine
Central Collector
and Link Sewers
Waterfront
Interceptor
Northern
Interceptor

Waikato Water
Treatment Plant
No.2
Huia Water
Treatment Plant
Artillery Tunnel
& Takanini
Conveyance
Oakley Creek
Conveyance

An underground rail line linking

Britomart and the city centre with the
existing western rail line near Mt
Eden.
A package of transport improvements
in the Glen Innes - Panmure Pakuranga - Botany corridor.
An upgrade of the Redoubt-Mill Road
corridor to support residential and
employment growth.
A joint NZTA / AT programme focused
on the Onehunga, Mt Wellington,
thuhu, Penrose, Mngere and East
Tmaki areas to improve freight
efficiency, commuter travel, public
transport and walking and cycling
options.
Projects include the Wynyard Bus
Interchange, Learning Quarter
Interchange, Downtown Interchange
and bus priority improvements.
Improvements to roads, public
transport, and cycling in the vicinity of
the airport and improved connections
between the airport and city centre.
A proposed alternative route between
Redvale and Whangaparoa in the
north.
A new wastewater conveyance and
storage pipeline.
Works to maximise investment in
Central Interceptor Spine.
3.5 km conveyance and storage
tunnel from Ponsonby to St Marys
Bay.
A new wastewater pipeline that will
divert flows from Mngere Waste
Water Treatment Plant to Rosedale
Waste Water Treatment Plant.
The provision of additional water
abstraction, treatment and
conveyance capacity from the Waikato
river.
The replacement of the Huia Water
Treatment Plant and the provision of
improved treatment processes.
A 1km long tunnel and a new open
channel to service the Takanini
Growth areas.
Upgrading culverts and widening of
Oakley Creek through Walmsley Park
to enable intensification and
redevelopment.

20152025

20252035

20352045

$2.5 billion (Includes $200m

spent prior to this
LTP)
$552m

$545m

$133m

$266m

$136m

(Council contribution
only, This may be
delivered earlier
under a government
accelerated package)

$410m

$107m

$34m

$667m

$2,569m

$556m

$966m
$299m
$25m

$325m

$135m

$102m

$400m

$316m

$241m

$44m

$30m

2016 Auckland Council Pre-Election Report | 19

Delivering day-to-day services

Our 10-year budget sets out an operating budget of $4 billion per annum. This
supports our investment programme and pays for a wide range of day-to-day
services such as maintaining roads, collecting rubbish and running libraries. While
this is a large budget, it reflects the high cost of running the largest council in
Australasia, and providing all the services that Aucklanders expect and value.
Some key examples of these costs include:

more than $110 million per annum to maintain more than 7,000km of road,
7,000km of footpaths, 41 rail stations, 21 wharves, 14 ferry facilities and six
busway stations
more than $110 million per annum to assist the funding of public transport
trips
$17 million per annum to mow our 241 sports parks and 3,000 local parks
more than $65 million per annum to maintain and operate parks, sport and
recreation facilities (including 927 playgrounds and 43 aquatic and recreation
centres)
$50 million per annum to run 54 local libraries along with the central library
more than $200 million per annum for Watercare to operate water and
wastewater services
$90 million per annum to provide rubbish collection, recycling and inorganic
refuse collections.

We also provide funding assistance to other organisations including:

annual funding assistance to major facilities such as Auckland War Memorial

Museum $30 million, MOTAT $13 million, Auckland Zoo $8 million, Auckland
Art Gallery $11 million
grants of over $50 million per annum to support a range of regional and local
community, arts and cultural groups and facilities, for example Auckland
Theatre Company, Auckland Arts Festival, Auckland Philharmonia Orchestra,
Howick Historical Village, Te Tuhi, Lopdell House, Q Theatre, North Shore
Theatre and Arts Trust.

On average over the next 10 years, we plan to fund the $4 billion annual operating
cost of providing these services using $1.9 billion of rates, $1.5 billion of user
charges and $300 million of grants and subsidies. The water and wastewater
services provided by Watercare are fully funded through user charges without the
use of rates funding.

20

Budget by activity area

Our 10-year budget organises our financial projections into seven areas of spending.
Our investment in each area is described below, along with a breakdown of our
planned $18.7 billion capital investment and $41.4 billion operating spend over the
10 years from 2015 to 2025.
Area of spend

Our priorities
We aim to transform Auckland by moving to outstanding public transport within one
network. This can be achieved by improving the speed, accessibility, frequency,
affordability, reliability and attractiveness of public transport
Capital investment: $7.9b

Operating spend $14.4b

We provide a range of facilities, services, and events that help people to be healthy
and have fun. These encompass sports, arts, culture, recreation and leisure
experiences, for example by providing a wide range of libraries, pools, fields, parks
and community centres.
Capital investment: $2.4b

Operating spend $6.3b

We provide many services that help keep Aucklands environments to be safe and
sustainable and enable thriving communities. We work alongside iwi and
community partners to restore and enhance our natural environment. We also
collect rubbish and recycling and minimise the risk that our homes and businesses
flood when it rains.
Capital investment: $1b

Operating spend $5.4b

We aim to create a city with great neighbourhoods, centres, parks and public
spaces that are loved by Aucklanders. We aim to provide choices, reflect
Aucklands Mori identity as our point of difference in the world and connect people
to places and to each other.
Capital investment: $1b

Operating spend $2.4b

We aim to raise living standards through attracting investment and visitors,

delivering and attracting events, progressing training and innovation programmes,
and providing major cultural and sporting facilities.
Capital investment: $400m

Operating spend $2.1b

We provide a variety of administrative, management and support functions that are

necessary to keep Auckland running. This includes providing funding support for
external organisations such as the Auckland War Memorial Museum and MOTAT.
Capital investment: $1.3b

Operating spend $4.2b

Every day we deliver 326 million litres of safe, clean and reliable drinking water to
Aucklanders and collect, treat and discharge 400 million litres of wastewater.
Capital investment: $4.7b

Operating spend $6.6b

2016 Auckland Council Pre-Election Report | 21

Uplifting Mori well-being and achieving better outcomes with and for
Mori
Building relationships with Mori, establishing partnerships to support common
aspirations and increasing Aucklanders' understanding of Mori and their needs and
aspirations are important ways to demonstrate and realise our commitments to
Mori. Our 10-year budget aligns council activities to the transformational actions
required to significantly lift Mori social and economic well-being.
A total of $121 million (combined capital and operating expenditure) within our 10year budget has been identified as directly contributing towards these transformation
actions, and work is ongoing to identify additional council activities that can also
contribute. Activities of priority to Mori that this 10 year budget supports include
marae development and papakinga housing, and showcasing Aucklands unique
Mori identity through events, waka on our harbours, and Mori public art.
Through this 10 year period we will work with mana whenua to recognise and
respect their rights and interests as kaitiaki. Of significant interest is an additional
$97 million (combined capital and operating expenditure) budget for managing 14
Tpuna Maunga or volcanic cones and other reserves under co-governance
arrangements with mana whenua.

22

4 Key decisions for the new council

Transport investment and funding
Aucklanders have told us that the citys transport challenges are the thing they least
enjoy about living and doing business in our region.
With the support of the Interim Transport Levy we are partly addressing Aucklands
most urgent transport needs in the short-term. However, without significant additional
funding to enable much faster investment, the performance of the transport system
will remain poor as Aucklands population grows.
Aucklanders have said they want us to improve the performance of our network so
that more Aucklanders will choose to travel by public transport more often. The
Auckland Plan forms the basis of our preferred transport programme and envisages
a doubling of the number of public transport passenger trips to a total of 140 million
trips each year by 2025. An expanded transport network would also improve
connection with, and allow development of, outer-lying areas.
Because Auckland accounts for 34 per cent of New Zealands population and
generates 37 per cent of GDP, the performance of its transport network has
implications for New Zealands overall economy. The Government and Auckland
Council have therefore agreed to work together to identify an aligned strategic
approach for the development of Aucklands transport system that delivers the best
possible outcomes for Auckland and New Zealand. This work programme is known
as the Auckland Transport Alignment Project (ATAP) and covers all forms of land
transport in Auckland including possible future modes of rapid transport such as light
rail. ATAP recognises that the different modes of transport all operate as one
network neither the council nor the Government can solve the problem alone.
The Government has confirmed its commitment to ensuring Aucklands transport
system is able to meet the regions needs and recognises Auckland will need
significant investment in its transport system in the coming decades to provide for its
forecast growth. The Government needs to be confident that investment in
Aucklands transport system will address the regions transport challenges and
provide value for money before it will consider providing Auckland with additional
funding or funding tools.
A key challenge for the newly elected council will be working with the Government on
those funding issues once an agreed investment programme has been identified
through ATAP.

2016 Auckland Council Pre-Election Report | 23

Another key challenge will be the delivery and funding of the City Rail Link (CRL).
While this project is now underway and the timetable for construction and funding
has been agreed, there are still some key decisions to be made such as how the
costs should be shared, the scale of the stations and future ownership arrangements
for the CRL. As New Zealands largest civil construction project, ensuring a smooth
delivery of this project will be critical for the council and Government.

Housing and growth infrastructure

Besides transport, the other big issue facing Aucklanders is housing. At the
moment, it takes nine to 10 times the average household income to buy the average
Auckland house. Based on this measure, Auckland homes rank among the least
affordable in the world.
While there is a range of complex factors influencing house price affordability, a
recent report by the Productivity Commission found that a shortage of development
ready land serviced by appropriate infrastructure was one of the main issues. In
response, the Government has prepared a draft National Policy Statement on Urban
Development that signals its intention to require high-growth councils such as
Auckland to ensure that 20 per cent more commercially feasible, infrastructure
serviced land is available over the next 10 years than Auckland is expected to need.
While the council does not build houses, work we have already done on the
Auckland Unitary Plan, the Auckland Housing Accord and our Future Urban Land
Supply Strategy puts us in a favorable position to help meet this challenge. We have
identified land with capacity for more than 97,000 new dwellings in the known
development pipeline to 2030. If we look at our future urban land supply areas we
have identified 11,000 hectares for development that's one and a half times the
size of Hamilton and will provide enough land for 110,000 new homes. However,
increases in land supply also need to be matched with supporting infrastructure and
a key challenge for the new council will be agreeing exactly what infrastructure is
provided where and when, and how it will be paid for.
Information on the councils work to increase land supply for housing can be found
here4.
While increasing land supply is important, the provision of more infrastructure
serviced land for housing will not automatically translate into more homes being built.
Another key challenge for the new council will be working with the Government on
broader housing issues such as:

ensuring the building industry has the capability and capacity to deliver the
number and types of homes that Auckland needs
http://www.aucklandcouncil.govt.nz/EN/ratesbuildingproperty/housingsupply/Pages/home.aspx

24

reducing building costs by looking at national building regulations and competition

in the building and building product industries
improving access to financing and exploring new home ownership models
encouraging the owners of development-ready land to develop now rather than
landbank and develop in the future
ensuring that legal liability for poor quality building work does not fall unfairly on
ratepayers .

Aucklands future ports needs

A study into Aucklands future ports requirements, known as the Port Future Study,
has recently been finalised. This collaborative study with Mori and stakeholders has
made recommendations for a long-term strategy for meeting Aucklands shipping
freight and cruise ship requirements.
As Auckland grows rapidly its demand for freight will also significantly increase.
Ports of Auckland Limited is 100 per cent council-owned but operates at arms-length
from the council. Last year the resource consents for wharf extensions at Bledisloe
Wharf were overturned by the High Court following action brought by communities
under the banner of Urban Auckland. This reflected community concern about further
port expansion into the Waitemat Harbour. Ports of Auckland put their expansion
plans on hold while this study was undertaken.
A range of alternative options for meeting Aucklands future freight needs have been
identified, including expansion, maintaining the status quo or relocating operations to
a new port. The Port Future Study provides an assessment of these options and a
recommendation to Auckland Council for a long term strategy. A key decision for the
newly elected council will be to decide on a long-term strategy so that the port can
move ahead with addressing its capacity requirements.
The Port Future Study report is now available on the study website at
portfuturestudy.co.nz.

Making the most of our assets

When we decided on our 10-year budget, we wanted to ensure that ratepayers are
getting the best value from the large portfolio of council-owned assets. We engaged
Ernst & Young (EY) and Cameron Partners to look at all the assets and identify
opportunities to enhance this value.
These reports are available to view here5.
The newly elected council will need to make some important decisions about how it
uses its limited capital resources. The EY and Cameron Partners reports highlight
5

http://www.aucklandcouncil.govt.nz/en/planspoliciesprojects/reports/technicalpublications/Pages/home.aspx

2016 Auckland Council Pre-Election Report | 25

some of the key tradeoffs and decisions that Auckland Council faces. For example,
is it better for the council to have capital tied up in ports and airport shares, or could
that capital be better used to support transport infrastructure to get Auckland
moving?
With Aucklands population growing rapidly, the demand for capital investment in
infrastructure will increase rapidly. Auckland Airport and Ports of Auckland will also
need to raise additional capital to cope with Aucklands growth. The EY and
Cameron Partners reports made it clear that the council faces some very real
constraints to using more borrowings to increase its capital investment over and
above the current 10-year budget.

Making choices about council services

No one wants to stop doing things. We provide many facilities, services and events
that are loved by Aucklanders. Some things are regularly enjoyed by large number
of Aucklanders, others are used less often and by only a few people. If we want to
keep rates affordable for Aucklanders, we cant just keep adding new things and
continuing to do all the things we do today. We will need to make choices. A key
challenge for the newly elected council will be to help Aucklanders decide what the
most important things to focus on are, given the limited funding available.

New ways to pay

Given the rising demand for investment in Auckland combined with constraints on
rates and debt, the newly elected council will need to make some decisions about
new ways to pay for its investments.
Through public consultation on our 10 year budget, along with an independent
survey conducted by Colmar Brunton, we now know that Aucklanders are prepared
to pay more to get the transport system they want and need. That consultation
focused on motorway charges and higher fuel taxes, but there are other options such
as congestion charging (variable road pricing). Considering these new payment
mechanisms will be part of the transport funding discussion with the Government
outlined above.
Other possible ways to pay for investment in the future include greater use of user
charges, tolling new roads, localised targeted rates to pay for infrastructure, rates
linked to increases in property values resulting from infrastructure investment and
alternative ways to charge developers for the cost of infrastructure for new houses.
Many of these options would require changes to legislation and discussions with the
Government.

26

5 Basis of preparation
This report is being released in the pre-election period as required by section 99A of
the Local Government Act 2002. Special care has been taken to ensure that it is
politically neutral. It is not a manifesto, either whole or in part, for any candidate or
political grouping taking part in the election campaign.
While this report has not been audited, much of the information presented has been
sourced from audited reports. For example, the first two years retrospective financial
data have been audited as they have been taken directly from the respective annual
reports.

Forecasts for 2015/2016

The 2015/2016 forecast information is based on the actual results of the nine months
to 31 March 2016 then budgets for the three months to 30 June 2016 adjusted for
the latest forecasted information from the business.

Projections for 2017/2018 to 2019/2020

The projections for 2017/2018 to 2019/2020 are the adjusted Long-term Plan 20152025 (LTP) figures to reflect the approved 2016/2017 Annual Plan. These
adjustments are only reclassifications and therefore total revenue, total expenditure
and net debt figures are unchanged from the LTP.
It should be noted that for the periods 2015/2016 to 2019/2020 the Auckland Council
Group has provided forecast and projection information therefore the final results for
these periods may differ.

Scope
The scope of this report covers all operational activities of the Auckland Council
Group, which includes the local boards, our council-controlled organisations (CCOs),
subsidiaries, associates and joint ventures (all of which are domiciled in New
Zealand).
Throughout this report, references to Auckland Council should be taken as meaning
Auckland Council Group, unless otherwise stated.

2016 Auckland Council Pre-Election Report | 27

6 Financial information
The following financial statements show:

28

actual results extracted from the published annual reports for the 2011/2012
to 2014/2015 financial years
forecast results for 2015/2016
budgets from the recently adopted 2016/2017 Annual Plan
projections for 2017-2020 from the 2015-2025 Long term Plan, adjusted by
some reclassifications to reflect the approved 2016/2017 Annual Plan.

Statement of comprehensive revenue and expenditure for the year

ending 30 June
2013/2014

2014/2015

2015/2016

Annual
Plan
2016/2017

Revenue
Rates
Fees and user charges
Grants and subsidies
Development and financial contributions
Other revenue
Finance revenue

1,395
989
410
102
371
16

1,458
1,030
425
107
521
17

1,565
1,053
421
125
470
10

1,637
1,228
500
163
436
5

1,727
1,348
439
262
437
6

1,750
1,399
641
252
456
6

1,842
1,449
549
260
471
6

Total revenue excluding other gains

3,283

3,558

3,644

3,969

4,219

4,504

4,577

730
737
122
1,172
372

792
778
150
1,336
422

799
821
144
1,251
420

811
885
125
1,382
465

827
923
124
1,436
518

845
964
132
1,476
527

861
991
137
1,527
543

3,133

3,478

3,435

3,668

3,828

3,944

4,059

150
483

80
(230)

209
(509)

301
-

391
-

560
-

518
-

($ millions)

Expenditure
Employee benefits
Depreciation and amortisation
Grants, contributions and sponsorship
Other operating expenses
Finance costs
Total expenditure excluding other
losses
Operating surplus before gains and
losses
Net other gains/(losses)
Share of surplus in associates and joint
ventures
Surplus/(deficit) before income tax
Income tax expense/(benefit)
Surplus/(deficit) before income tax after
continuing operations
Deficit from discontinued operations

Actual

Actual

Forecast

Projection

Projection

Projection

2017/2018

2018/2019

2019/2020

53

54

46

55

47

49

51

686
10

(96)
(24)

(254)
(8)

356
27

438
37

609
45

569
51

676
-

(72)
-

(246)
-

329
-

401
-

564
-

518
-

Surplus/(deficit) after income tax

676

(72)

(246)

329

401

564

518

Surplus/(deficit) after income tax is

attributable to
Ratepayers of Auckland

676

(72)

(246)

329

401

564

518

1,481

1,031

1,355

1,018

424

324

1,696

(3)
(6)

(74)
37

(2)
(6)

(91)
-

(90)
-

(5)
-

(1)

168

16

(1)

1,641

1,010

1,349

927

424

234

1,691

Other comprehensive
revenue/(expenditure)
Net gain on revaluation of property, plant
and equipment
Tax on revaluation of property, plant and
equipment
Movement in cash flow hedge reserve
Tax on movement in cash flow hedge
reserve
Share of associates and joint ventures'
reserves
Net unrealised gain on revaluation of
financial assets classified as available-forsale
Other comprehensive
revenue/(expenditure)
Total other comprehensive revenue

1,641

1,010

1,349

927

424

234

1,691

Total comprehensive revenue

2,317

938

1,103

1,256

825

798

2,209

Total comprehensive revenue is

attributable to
Ratepayers of Auckland

2,317

938

1,103

1,256

825

798

2,209

2016 Auckland Council Pre-Election Report | 29

Statement of financial position as at 30 June

Actual

Actual

Forecast

2013/2014

2014/2015

2015/2016

Annual
Plan
2016/2017

206
259
366
1
21
45
898

345
258
350
2
16
14
28
1,013

338
266
341
2
29
21
997

99
103
94
36,906
469
2
457

25
111
200
38,897
469
2
560

Total non-current assets

846
38,976

Total assets

Projection

Projection

Projection

2017/2018

2018/2019

2019/2020

330
262
266
2
17
52
929

330
282
366
1
24
56
1,059

330
307
366
1
24
45
1,073

330
311
366
1
25
47
1,080

28
112
281
40,891
571
2
616

25
139
200
42,439
521
2
560

108
161
94
44,031
466
2
457

118
171
94
45,075
446
2
457

119
182
94
47,628
430
2
457

890
41,154

915
43,416

900
44,786

862
46,181

866
47,229

870
49,782

39,874

42,167

44,413

45,715

47,240

48,302

50,862

4
77
615
1,171
41
84
1,992

8
85
649
1,006
2
88
1,838

8
82
583
1,150
38
1
96
1,958

87
754
1,611
2
2
61
2,517

83
736
1,749
40
36
2,644

84
713
1,910
41
28
2,776

86
761
1,845
41
22
2,755

Total non-current liabilities

5
31
5,170
236
286
1,009
6,737

5
45
6,328
485
320
1,067
8,250

5
49
6,800
1,085
275
1,059
9,273

5
62
7,154
485
243
1,192
9,141

6
81
7,711
236
190
1,235
9,459

6
109
7,718
236
170
1,352
9,591

6
133
8,042
236
153
1,393
9,963

Total liabilities

8,729

10,088

11,231

11,658

12,103

12,367

12,718

31,145

32,079

33,182

34,057

35,137

35,935

38,144

26,734
586
3,825
31,145

26,728
517
4,834
32,079

26,728
275
6,179
33,182

26,728
1,074
6,254
34,057

26,734
1,710
6,693
35,137

26,734
2,269
6,932
35,935

26,734
2,778
8,632
38,144

31,145

32,079

33,182

34,057

35,137

35,935

38,144

($ millions)
Assets
Current assets
Cash and cash equivalents
Receivables and prepayments
Other financial assets
Derivative financial instruments
Inventories
Tax receivable
Non-current assets held-for-sale
Total current assets
Non-current assets
Receivables and prepayments
Other financial assets
Derivative financial instruments
Property, plant and equipment
Intangible assets
Biological assets
Investment property
Investment in associates and joint
ventures

Liabilities
Current liabilities
Bank overdraft
Employee entitlements
Payables and accruals
Borrowings
Derivative financial instruments
Tax payable
Provisions
Total current liabilities
Non-current liabilities
Employee entitlements
Payables and accruals
Borrowings
Derivative financial instruments
Provisions
Deferred tax liabilities

Net assets
Equity
Contributed equity
Accumulated funds
Reserves
Total ratepayer equity
Minority interests
Total equity

30

Funding impact statement for the year ending 30 June

Actual

Actual

Forecast

2013/2014

2014/2015

2015/2016

Annual
Plan
2016/2017

1,339

1,350

1,393

98
237

106
284

1,139
46
57

Projection

Projection

Projection

2017/2018

2018/2019

2019/2020

1,454

1,537

1,620

1,706

172
251

183
260

189
268

130
272

136
276

1,032
77
227

1,053
50
242

1,228
5
295

1,348
53
280

1,399
53
301

1,449
55
303

2,916

3,076

3,161

3,425

3,675

3,775

3,925

Payment to staff and suppliers

Finance costs
Other operating funding applications

2,121
353
37

2,193
406
8

2,195
407
5

2,320
453
9

2,387
511
15

2,452
522
17

2,525
539
15

Total applications of operating funding

2,511

2,607

2,607

2,782

2,913

2,991

3,079

405

469

554

643

762

784

846

($ millions)
Sources of operating funding:
General rates, uniform annual general
charges, rates penalties
Targeted rates
Subsidies and grants for operating
purposes
Fees and charges
Interest and dividends from investments
Local authority fuel tax, fines, infringement
fees and other receipts
Total operating funding
Applications of operating funding:

Surplus / (deficit) of operating funding

Sources of capital funding:
Subsidies and grants for capital
expenditure
Development and financial contributions
Increase / (decrease) in debt
Gross proceeds from sale of assets
Lump sum contributions
Other dedicated capital funding

190

139

170

241

171

368

274

43
1,022
58
-

108
847
48
-

125
665
11
-

163
835
87
-

262
520
53
-

252
168
56
-

260
259
45
-

Total source of capital funding

1,313

1,142

971

1,326

1,006

844

838

388
716
512
102
-

336
762
448
47
18

459
524
483
45
14

705
667
573
62
(38)

424
607
613
56
68

390
554
584
31
69

440
601
650
28
(35)

Total application of capital funding

1,718

1,611

1,525

1,969

1,768

1,628

1,684

Surplus / (deficit) of capital funding

(405)

(469)

(554)

(643)

(762)

(784)

(846)

Applications of capital funding:

Capital expenditure:
- to meet additional demand
- to improve the level of service
- to replace existing assets
Increase / (decrease) in reserves
Increase / (decrease) in investments

Funding balance

2016 Auckland Council Pre-Election Report | 31

Statement of cash flows for the year ending 30 June

($ millions)
Cash flows from operating activities
Receipts from customers, rates, grants
and other services
Interest received
Dividends received
Payments to suppliers and employees
Income tax paid
Interest paid
Net cash inflow from operating
activities
Cash flows from investing activities
Sale of property, plant and equipment,
investment property and intangible assets
Purchase of property, plant and
equipment, investment property and
intangible assets
Equity investment in subsidiaries and
associates
Acquisition of other financial assets
Proceeds from sale of other financial
assets
Advances to external parties
Net cash outflow from investing
activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Repayment of finance lease principal
Net cash inflow from financing
activities
Net increase/(decrease) in cash and
cash equivalents and bank overdrafts
Opening cash and cash equivalents and
bank overdrafts
Closing cash and cash equivalents and
bank overdrafts

32

Actual

Actual

Forecast

2013/2014

2014/2015

2015/2016

Annual
Plan
2016/2017

3,104

3,247

3,483

15
130
(2,078)
(348)

19
63
(2,212)
(391)

823

Projection

Projection

Projection

2017/2018

2018/2019

2019/2020

3,732

4,023

4,291

4,378

8
52
(2,346)
2
(416)

5
54
(2,296)
(9)
(455)

6
47
(2,484)
(15)
(511)

6
47
(2,508)
(17)
(522)

6
49
(2,501)
(15)
(539)

726

783

1,031

1,066

1,297

1,378

17

33

11

87

53

56

45

(1,493)

(1,490)

(1,429)

(1,945)

(1,644)

(1,529)

(1,691)

(2)

(86)

(7)

(44)

(5)

(6)

(3)

(1)

30

23

(105)

100

18

18

19

(6)

(4)

(9)

(7)

(7)

(9)

(1,540)

(1,445)

(1,567)

(1,772)

(1,586)

(1,465)

(1,637)

1,724
(1,136)
(2)

2,797
(1,943)
-

1,855
(1,077)
(1)

2,222
(1,481)
-

2,161
(1,641)
-

1,917
(1,749)
-

2,169
(1,910)
-

586

854

777

741

520

168

259

(131)

135

(7)

333

202

337

330

330

330

330

202

337

330

330

330

330

330

Statement of performance against financial strategy limits and targets

This statement is required by section 99A of the Local Government Act 2002 and compares some key
debt, rates and investment return parameters with the limits and targets set out in the councils
financial strategy. The debt and rates parameters have been prepared on the same basis used to
prepare the councils annual reports and in accordance with the Local Government (Financial
Reporting and Prudence) Regulations 2014.

Prudential debt ratios

Financial year ended
Net debt as a percentage of total revenue

Limit
275%

Actual
2014
177%

Actual
2015
192%

Forecast
2016
203%

Net interest as a percentage of total revenue

15%

11%

12%

11%

Net interest as a percentage of annual rates income

25%

19%

21%

18%

Actual
2014

Actual
2015

Forecast
2016

Limit

$1,334m

$1,417m

$1,409m

Actual

$1,282m

$1,338m

$1,371m

Limit on average increase for existing ratepayers

4.90%

4.90%

3.50%

Actual increase (revenue increase adjusted for growth in rating base)

3.67%

3.31%

2.37%

Actual
2014

Actual
2015

Projected
2016

Rates
Financial year ended
General rates revenue

Average general rates increase

Return on investments
Financial year ended
Return on Investments managed by ACIL
Target

9.2%

9.2%

7 - 10%

Actual return

26%

12.3%

7%

Return on Diversified Assets Portfolio

note 1

Target is to exceed the average of the Official Cash rate plus CPI
Target calculation

4.9%

3.7%

2.7%

Actual return

12.1%

13.2%

4.6%

Target calculation

3.8%

8.2%

2.7%

Actual return

3.9%

6.6%

4.3%

Target

4.5%

4.5%

4.5%

Actual return

6.1%

6.4%

6.2%

Return on Trusts and reserves

note 2

Target is to exceed 90 day bank rate and corporate A grade bonds

Return on the council's investment in NZLGFA

2016 Auckland Council Pre-Election Report | 33

7 About Auckland Council

Auckland Council commenced operations on 1 November 2010. Following the Royal
Commissions report on Auckland Governance in March 2009, the government made
changes to local government in Auckland with the objective of strengthening regional
leadership while providing effective local and community democracy. The changes
included:

the establishment of one new unitary council for the region: Auckland Council
the establishment of six Council Controlled Organisations (CCOs) on 1
November 2010 responsible for the delivery of significant services or activities
on behalf of the new council (Watercare Services Ltd became a CCO on 1
July 2012)
the establishment of 21 local boards with 149 elected local board members
formation of the Independent Mori Statutory Board with statutory authority to
advance the interests of Mori in Tmaki Makaurau
a mayor elected at large and 20 councillors elected from 13 wards (together
called the governing body)
one spatial plan for Auckland: the Auckland Plan
one unitary plan
one long-term plan for Auckland.

The functions, duties, powers and property of former councils became the
responsibility of Auckland Council and its CCOs.
Further information about the councils structure, the responsibilities of the governing
body, the local boards and the CCOs, can be found in our 2014/2015 Annual Report
available online here6.

http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/reports/annual_report/Pages/annualrepo
rt.aspx

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8 Glossary of terms
Annual plan: the plan that sets out what the council will be working to achieve in a
financial year, how it will spend its money, the level of service to be provided, and
the level of rates and other revenue required to fund that spending.
Auckland Plan: a 30-year plan for Auckland adopted in 2012. Required by the
legislation that established Auckland Council, it is a comprehensive long-term
strategy for Auckland's growth and development, and includes social, economic,
environmental and cultural goals that support the vision for Auckland to become the
world's most liveable city.
Budget: the itemised estimate of expected income and expenditure for a given
period.
City Rail Link: a rail project in central Auckland, New Zealand designed to connect
the Britomart Transport Centre with the Western Line at Mount Eden Railway
Station.
Council-controlled organisation (CCO): a company or other entity under the
control of local authorities through their shareholding of 50 per cent or more, voting
rights of 50 per cent or more, or right to appoint 50 per cent or more of the directors.
Some organisations may meet this definition but are exempted as council-controlled
organisations.
Independent Mori Statutory Board: an independent board established by
legislation to promote and advise Auckland Council on cultural, economic,
environmental and social issues of significance for mana whenua groups and
mataawaka of Tmaki Makaurau. It also ensures that the council acts in accordance
with statutory provisions referring to the Treaty of Waitangi.
Legacy councils: these are the eight former territorial authorities in the Auckland
region that were disestablished on 31 October 2010. They comprise: Auckland City
Council, Auckland Regional Council, Franklin District Council, Manukau City Council,
North Shore City Council, Papakura District Council, Rodney District Council and
Waitakere City Council.
Local boards: there are 21 local boards which share responsibility for decisionmaking with the governing body. Local boards represent their local communities and
make decisions on local issues, activities and facilities.
Long-term plan: also commonly referred to as the LTP and the 10-year Budget.
The long-term plan sets out the councils vision, activities, projects, policies, and
budgets for a 10-year period.

2016 Auckland Council Pre-Election Report | 35

Unitary plan: the single planning rulebook to manage how Aucklands housing and
infrastructure will develop in the future to accommodate our rapid population growth.
It will also ensure that future growth is balanced with enhancing and protecting the
things Aucklanders value most like our historic heritage and natural environment.

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