Category: Financial Planning

How About Some Savings and Adjustments Before New Taxes

·

NZCID Not Really Making its Case Palatable with Auckland Citizens

 

The New Zealand Council of Infrastructure Development (NZCID) commissioned an independent “review” into an apparent lack of city shaping infrastructure. The report by the international consulting firm SGS Economics and Planning is embedded as a PDF at the bottom of this post.

Below is the subsequent press release from NZCID on the “review:”

Study identifies “lack of city shaping infrastructure investment”

Friday, 21 February, 2014 – 17:51

An independent review of Auckland’s planning framework by international consulting firm SGS Economics and Planning released today identifies a lack of city shaping infrastructure investment as the principal impediment to achieving a quality compact city. The report recommends that the productivity benefit from investment, demand management and urban intensification needs to establish the case for expanded co-investment and policy reform by Central Government.

“We commissioned this study to gain a better understanding of how successfully programmes, policies and investment plans developed over the past three years by the Council are delivering on the Auckland Plan vision to make the city the World’s Most Liveable,” said Stephen Selwood CEO of the New Zealand Council for Infrastructure Development.

“SGS found that governance reforms have equipped Auckland with the most evolved metropolitan governance structure of any city in Australasia.

“Auckland has a united voice on regional issues and has the critical mass to make trajectory shifting decisions in its own right.

“The Auckland Plan sets out a compelling and demonstrably achievable vision for Auckland’s spatial development.

“However, SGS found that the Auckland Plan objective of a quality compact city was unlikely to be achieved without increased investment in city shaping infrastructure, identification of the means to fund that investment and policy reform to support road pricing and value capture mechanisms.

“On current plans there simply is not sufficient investment in transport infrastructure to support a transition to an efficient and competitive higher density urban form, Selwood said.

“To reverse many decades of low-density, motor-vehicle oriented growth will take much more than the city rail link and other projects prioritised in the Auckland Plan.

“This finding helps explain why transport modelling of future land use and transport investment completed last year showed Auckland’s congestion worsening significantly over the course of the next thirty years, even with all proposed investment committed.

“But rather than retracting the compact city vision, SGS call for analysis of the productivity benefit that is expected from urban transformation. Where the Auckland Plan vision can be shown to boost national productivity, GDP and aggregate tax revenues there is a strong case for co-investment from central government. Increased economic performance more generally also substantiates the case for new funding sources, such as road pricing and value capture, which are key to achieving the Auckland Plan vision.

“Better understanding of these benefits may also help foster community and local board support, which has so far been an impediment to the scale of intensification proposed.

“We hope that this report will stimulate a joint Government and Council work programme to identify the productivity dividend that can be achieved through optimal investment in city shaping infrastructure. In NZCID’s view, this requires vast improvement in integrating transport investment and land use development, including more targeted densification to support major investment in public transport, and implementation of road pricing and value capture mechanisms.

“While the united Auckland Council is making great progress, stronger alignment and unity of purpose between central government and the Council is needed if the productive potential of Auckland is to be truly realised,” Selwood says.

Source: http://www.voxy.co.nz/national/study-identifies-lack-city-shaping-infrastructure-investment/5/182215

—ends—

 

Long story short I rather have some savings done first with our gold-plated transport infrastructure investment program (the Integrated Transport Program) before we start playing around searching for new “taxes.”

Transport Blog spells out the case with their Congestion Free Network case on how to achieve those savings that would not require such extra taxes as the NZCID are promoting. Further more the Congestion Free Network while being cheaper actually helps de-congest Auckland’s Transport network where the current ITP proposals that have a current $15 billion funding gap (and what the NZCID want (the ITP)) while congestion still gets worse in 2030…

I wonder if NZCID like the Chamber of Commerce are annoyed after the East-West Link gold-plated proposal got scaled back significantly after people power convinced AT to do that scale back. Suppose we will never know as such.

 

The SGS Review

 

Auckland Economic Performance Improving #1

·

Auckland Council “Investments” Performing Well

 

The Mayor delivered a speech this morning to the Greater East Tamaki Business Association on Auckland’s Economy improving and set to boom. I will be getting a post up on that speech later. In the mean time you might have seen in the media this morning Port of Auckland, and Precinct Properties posting their results.

From Auckland Council on those results:

Waterfront businesses leading the way in Auckland’s economic transformation 

A boost in profits for two key Auckland companies shows the economic potential that the central city and waterfront can offer Auckland, say Mayor Len Brown and Councillor Penny Webster chair of the Finance and Performance Committee. The pair welcomed the Ports of Auckland announcement today that its half-yearly net profit after tax is up 70 per cent. It comes the day after Precinct Properties announced a 67 per cent lift for the same period.  Len Brown said: “These results reinforce the opportunities we are seeing for transformative growth in Auckland’s economy. Ports of Auckland has taken great strides to increase its productivity and output over the past year, and as a result ratepayers will benefit from an interim dividend of $20.94m.

 

“Precinct Properties is a great example of the private sector keen to work with the council in the transformation of the city – bringing significant new investments and an enthusiasm to align their developments with the CRL.” 

Penny Webster said: “I’m very pleased with the Ports result on the back of the Auckland International Airport dividend. The interim dividend is nearly double last year’s, with steadily increasing freight volumes as POA has begun to see the benefits of its restructuring. ” 

Both welcomed Precinct Properties’ discussions with Waterfront Auckland to be potentially involved in Wynyard Central, a key element of the regeneration of Auckland’s downtown waterfront.

—–ends—-

 

That Auckland still has a way to go before its economic performance is where it should be.

 

Do Not Forget Your Unitary Plan, and Annual Plan Submissions

·

Have Your Say

 

Do not forget to send in your submissions for both the Unitary Plan and the Draft Annual Plan 2014/2015 by their respective dates.

The Unitary Plan deadline is close of business on the 28th February while the Draft Annual Plan 2014/2015 deadline is 4pm Monday 24th February.

 

All your Unitary Plan information can be found at these two websites:

 

Be aware that to participate in the second submission round and the hearings later next year you MUST have sent in your first submission by the end of this month.

 

The Draft Annual Plan 2014/2015 (the annual budget document) can be found here: http://www.annualplan.aucklandcouncil.govt.nz/

Again to attend the hearings panel or forums on the Annual Plan you must have your formal submission handed in by the deadline first.

 

More chances to submit will be out later in the year when the Area Plans and Local Board Plan come out as well – so stay tuned

 

Berms Issue Back

· 1 Comment ·

And the Solution is oh so Simple!

 

Councillor Cameron Brewer made an off-hand remark to New Zealand Herald’s Bernard Orsman about how the special one-off Auckland International Airport Dividend of $101 million should be used to restore berm mowing to areas of the Isthmus that had it before the Super City came into existence.

From The Aucklander – Division of the NZ Herald

Council returns to mowing berms in Auckland

By Bernard Orsman  6:49 AM Monday Feb 3, 2014

Residents who can’t cut the grass, or refuse to, will get a trim but contractors can wait until it is 20cm high.

…

Orakei councillor Cameron Brewer said he planned an amendment for the proper reinstatement of berm mowing, which could be funded from a special $101 million dividend from Auckland Airport, or internal savings.

…

Source: http://www.nzherald.co.nz/aucklander/news/article.cfm?c_id=1503378&objectid=11195808

 

It is one of the few times condemnation from both the Centre Left and Right were rather swift against Councillor Brewer for mentioned that a dividend would be used for a OPEX rather than CAPEX line (Opex means Operational Budget for Day to Day running of the Council, CAPEX is your Capital Expenditure – that is investment into things like infrastructure).

That $101 million would be best set for infrastructure like say some cycle ways, the St Johns Station, maybe the Manukau South Rail Link and some grade separation of our dangerous rail crossings, perhaps some storm-water infrastructure or paying down some debt which actually is not a bad suggestion from Councillor George Wood.

But to pay for OPEX expenses like berms for a few on the Isthmus? I think not.

 

Look the solution is dead simple for the berm situation.

I recommend that the issue be sent to the Local Boards for their final decision. That is if the respective Local Board would like berm mowing for their residential areas then they would have the chance to:

  • Pass a targeted rate for the service as two Local Boards did for universal free-swimming pools (rather than the Auckland-wide policy of free for under-16’s)
  • Have the opportunity to tender the service out to either:
    • Auckland Council’s Park Services main contractor
    • Auckland Transport’s berm contractor
    • Local private sector contractor

If I was to say the Papakura Local Board and was going to charge a targeted rate for berm mowing for the area I would tender the service out to a local firm in the area (if possible). This means a local business with local area knowledge has the chance of providing a service to the community of Papakura and providing employment to the local area. More local employment means more spending and more investment in the area. I call that a Win-win-win-major win if this was able to occur.

So lets kick this issue of berm mowing to the goal line once and for all and hand it over to the Local Boards to decide rather than the main Governing Body.

As for the Isthmus and their berms I found this rather telling from a comment on Cameron Brewer’s public Facebook remark on the issue (note Cameron did not write this comment but a ratepayer of Auckland did):

We drove to the airport back in October and went through Gillies Ave and Manukau Rd. Those who had not mown their berms in the upmarket area should be ashamed of themselves. The neighbours would be really annoyed with them. As we drove through the not so affluent area all the berms were mowed nice and tidily (bar one that had construction activity in the adjacent section). I would be mowing the neighbour’s unmown berm myself because it affects your own place. And most of the houses bedside the umown berms had lovely tidy mown lawns.

 

And I can vouch for that the numerous times I have travelled through the Isthmus. That said the commenter and myself are not painting our affluent areas all with the same tar brush as there are some who do mow their berms and look after them. What was telling though was where however, most of the issues were coming from on the Isthmus. Also at the same time there are those on the Isthmus who have converted their berms to gardens of different varieties. This should be encouraged rather than punished as it does add spice and “colour” to Auckland.

 

Annual Plan Submissions Now Called For

·

Have your say on council’s draft Annual Plan

 

From Auckland Council on the up coming Annual Plan (a Council budget document) submission process:

Have your say on council’s draft Annual Plan

 

How Auckland Council plans to invest in projects and programmes to meet the growing needs of the region are outlined in the draft Annual Plan 2014/2015 which opens for public consultation this week.

The plan details the organisation’s proposed budget, activities and investment programme for next financial year. It also includes draft local board agreements that highlight each of the board’s local priorities, projects and advocacy issues

Auckland’s continuing population growth, a public desire for higher quality infrastructure and maintenance of existing assets is driving council’s significant investment programme.

$1.8 billion of capital expenditure is planned in the next financial year, with $1.25 billion of new assets to be bought or built, including:

  • $146m to continue purchasing electric trains and $193m for the next stage of the City Rail Link
  • $85m for local and sports parks
  • $25m to continue development of new libraries in Massey North, Te Atatu Peninsula, Devonport, Flat Bush, Takanini and Ōtāhuhu
  • $19m to upgrade town centres, including New Lynn, Westgate, Devonport, Mt Albert and Pukekohe

 

“It is important that we continue to invest in the future, in major region-wide infrastructure, and in local communities through projects such as new libraries, town centres, parks and sports ground upgrades,” says the Mayor.

“Aucklanders want financial prudence, which is the why the draft annual plan is based on ongoing savings, a low average rate increase and judicious investment.”

The average rates increase for the 2014/2015 financial year has reduced from an average of 4.9 per cent (as projected in our 10-year long-term plan) to an average of 2.4 per cent.

The council is seeking feedback on the proposed draft Annual Plan, including the local projects and proposed budget changes raised by each local board.  Through the draft annual plan the council is also consulting on:

  • implementing a strategy for Eden Park, Mount Smart, Western Springs and North Harbour stadiums that involves developing new facilities, shifting some sporting codes and streamlining operations at each venue to more efficiently accommodate major events and ensure the venues’ long-term success
  • delivering a wider range of benefits to Aucklanders and the creative sector by providing increased funding to the Auckland Arts Festival Trust to allow the festival become an annual event rather than every two years

 

Submissions on Auckland Council’s draft Annual Plan 2014/2015 open 23 January and close Monday, 24 February 2014.

 

More information on the draft annual plan and how to make a submission will be available online at www.annualplan.aucklandcouncil.govt.nz  from 23 January.

—ends–

 

Annual Plan and Unitary Plan Submissions at the same time, enough to keep you bogged down for the next four weeks. None-the-less if you can do submit on the Council budget document for the 2014/2015 year.

 

Mayor Len Brown on upcoming Transport Projects

·

Generation Zero Got a Mention

And

The Roads are Staying

 

I caught on Twitter that Mayor Len Brown was doing an interview with Radio Live over the lunch break. It is a very long interview covering an array of topics but the one that caught my attention the most was on transport.

We know three things:

  1. 2015-2025 Integrated Transport Program comes out for submissions later this year
  2. We have a current $15 billion funding gap for the 2012-2022 ITP owing to the massive road-fest in that program
  3. Generation Zero along with Transport Blog are strongly advocating for the Congestion Free Network which as they claim costs less than the current ITP and actually gets Auckland moving (the current ITP won’t)

 

Cue this piece from Radio Live today (http://www.radiolive.co.nz/Audio.aspx) which made think “oh boy.” To get the piece go to that Radio Live audio link, select Monday 20th January, then select the 12:30pm line on the scrolling menu, wait until 4:04 mark where the Mayor talks about Generation Zero and the ITP.

It would appear from that snippet that Generation Zero and Transport Blog are going to be facing an interesting debate when it comes to the 2015-2025 Integrated Transport Program. The Mayor does support some aspects of what Generation Zero and Transport Blog are pushing like the City Rail Link. But when it comes to the motorways and roading side of the ITP (subsequently leading to the funding issue) this is where sparks could fly. In short the Mayor has said the roading projects remain and (this was a stretch) that Generation Zero had taken any new roading project off the table. The Mayor went on further saying this was not tenable and effectively even with all the public and active transport investment, that mode usage would only move from 10% current to approximately 15% – leaving 85% by car. Also remember the population is growing to volume also on both modes increases as well.

The Radio Live portal:

Radio Live

 

It seems rather underwhelming what the Mayor said when it came to transport investment. I wonder if the Councillors have other ideas and could force a change of tact with the ITP? Will have to wait and see I suppose, but least we know what we are up against.