Long Term Plan Consultation Document 2015

8/9/2019 Long Term Plan Consultation Document 2015

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Help shape the future of Auckland

Have your say by 4pm on Monday 16 March 2015

10-YEAR BUDGETTHE

CONSULTATION DOCUMENT


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10-year budget 2015-2025 consultation document 3

Contents

Part 1:Our plan for the next 10 years ...............................................................................................................6

Part 2:Key issues where we need your feedback .......................................................................................28

Part 3:Local Board priorities ..............................................................................................................................50

Part 4:Have your say ............................................................................................................................................

56

Auditors report ........................................................................................................................................................

57

Index .............................................................................................................................................................................59

Feedback form ..........................................................................................................................................................61


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10-year budget 2015-2025 consultation document4

Long-term Plan2015-2025

Help shape Aucklands 10-year budget

We have been talking with you about what you want from your city. This ongoing conversationincludes our discussions around the Auckland Plan, the Proposed Auckland Unitary Plan, localboard plans and previous annual and long-term plans.

Three things stand out from this ongoing conversation.

1. You want a great transport system for reasons that are obvious to anyone who travelsaround our city.

2. You want affordable quality housing set around vibrant town centres andneighbourhoods.

3. You want your rates bill to be fair and affordable.

We have taken all of that on board, weve come up with a plan and now we want your thoughts.

The most important issue we discuss in this document is how we balance the need forsignicant ongoing investment in public infrastructure with the need for sustainable debt levels

and affordable rates. The options and choices we discuss around transport related investmentand funding are at the heart of this issue. A proposal for council to take a more active role insupporting urban development and resulting housing choices is also covered, as is how rates areshared across ratepayers.

What we need now is for you to tell us what options you prefer. Please read through theproposals and options laid out in this document and tell us what you think. In particular, wewould like to hear your thoughts on the following four key issues that are summarised in parttwo of this document, and presented as questions for your feedback.

1. Investing in Auckland - balancing progress with affordability

2. Fixing Aucklands transport

3. Housing and development - a more active development role for Auckland Council

4. Your rates

To help you better understand the background to these issues, part one sets out the challengesand opportunities facing Auckland.



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Consultation closes 4pm, Monday 16 March 2015

For more information, including the supporting information for this consultation document, visitshapeauckland.co.nz or you can phone 09 301 0101 or visit your local board ofce, service centre orlibrary. Please note that your feedback on the key transport issues will inform both the councils Long-termPlan 2015-2025 and Auckland Transports Regional Land Transport Plan. Part four of this document lets

you know how you can have your say. Final decisions will be made by June 2015 and will be available onshapeauckland.co.nz in July.


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Part 1:Our plan for the next 10 years


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Aucklands challenge

Like all successful cities across the world, Aucklandis growing. In fact, its growth regularly outstripspredictions and just over half of New Zealands

population growth since the last census occurred inAuckland.

The biggest contributor is births, but growth is alsoboosted by people moving here for the opportunities,lifestyle, education and thriving economy thatAuckland offers. This growth will bring challenges,as well as opportunities over the next 30 years, aswe work towards our vision of becoming the worldsmost liveable city.

A changing and growing Auckland creates everincreasing demand for public transport, roads,housing, water, sewerage, parks and communityfacilities. These are the essential ingredients ofany great city. Satisfying these demands andexpectations is the challenge we face, while keepingit affordable for our residents and businesses. Aliveable city must be affordable - we must live withinour means.

This consultation document is therefore about

nding the right balance between affordability andmaking progress for Auckland. We invite you tothink about the key trade-offs as you read throughpart one of this document, which elaborates onthis challenge and our plans for striking the rightbalance. Part two sets out four key issues that wewould like your feedback on. Part three covers whatis happening at a local level and part four lets youknow how you can have your say.

What you want forAuckland

We have a plan that 10,000 Aucklanders

helped write

The establishment of a single Auckland Councilin 2010 has given Auckland an unprecedentedopportunity to tackle these challenges. For the rsttime in its history Auckland speaks with one voice,and through the Auckland Plan we have a sharedvision to be the worlds most liveable city.

Over 10,000 Aucklanders helped write the Auckland

Plan which is our road map to achieving this visionover the next 30 years. Its also our prioritisation toolto ensure we focus on the right things. Through thisplan, Aucklanders have described what they want:

A fair, safe and healthy Auckland A beautiful Auckland that is loved by its people A green Auckland A culturally rich and creative Auckland An Auckland of prosperity and opportunity A Mori identity that is Aucklands point of

difference in the world A well connected and accessible Auckland

Achieving this vision requires transformationalchange. The Auckland Plan outlines a number ofgame changers for Auckland in key priority areaswhere incremental change alone will not be sufcientto achieve our aspirations. While each of these isimportant, Aucklanders have told us that radicalimprovements to public transport and quality urbanliving are top of the list. Investing in these two areas

will also drive positive environmental, economic andsocial outcomes for Auckland.


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Move to outstanding public transportwithin one networkTransport is Aucklands number one issue

Moving to outstanding public transport withfar greater levels of use is critical to Aucklandseconomic performance and peoples quality oflife. This can be achieved by improving the speed,accessibility, frequency, affordability, reliability andattractiveness of public transport. Auckland Councilis well placed to lead this work in conjunction withkey partners such as central government, the NewZealand Transport Agency, KiwiRail and publictransport operators.

A key issue is whether Aucklanders support increasedinvestment in Aucklands transport network, andare prepared to pay more to support the increasedinvestment required. In part two of this document,we lay out the transport options including new waysto pay for the additional investment and ask for yourfeedback.

Radically improving the quality ofurban livingImproved quality of life is what we all seek and it

drives all our decision-making

One of our main aims is to create a city with greatneighbourhoods, thriving centres, parks and publicspaces that are loved by Aucklanders. We want peopleto be connected to places and each other, and havemore choice about where they live in our diverse city.

While Auckland Council can play a key role in enablingthis through our planning and regulatory work, andthrough the provision of infrastructure, we cannot makethis radical change happen on our own. Another keyissue that we would like to hear from you on is if youthink we should partner with others and take a moreactive role in urban redevelopment to help radicallyimprove the quality of urban living in Auckland. In parttwo of this document we also lay out the options hereand ask for your feedback.

For more information on our strategic framework,please refer tosection 1 (PDF 2.4MB)of thesupporting information for this consultationdocument.
http://shapeauckland.co.nz/media/1150/section-1-strategic-summary-overview.pdfhttp://shapeauckland.co.nz/media/1150/section-1-strategic-summary-overview.pdfhttp://shapeauckland.co.nz/media/1150/section-1-strategic-summary-overview.pdfhttp://shapeauckland.co.nz/media/1150/section-1-strategic-summary-overview.pdf


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Growth andinfrastructure

Like all successful cities Auckland is growing and the

challenge is to manage this growth

Auckland is expected to experience signicant populationgrowth. Over the next 30 years our population isprojected to grow by over 716,000 people, with 237,000of these people arriving in the next 10 years. Weanticipate that to accommodate this growth, 109,000new dwellings and 4.3 million square meters of businessspace will need to be built over the next 10 years.

This will place signicant pressure on our alreadycongested roads and generate major increases in demandfor transport services. Auckland will need to grow in,up and out. New development will require the councilto provide the roads, public transport services, water,sewerage and other amenities that our new communitieswill require. Ensuring we meet this infrastructure demandrequires a plan for growth. We simply cant afford toallow Auckland to expand haphazardly.

We are therefore taking a 30-year view of the

infrastructure Auckland will need, ensuring we haverobust plans for providing the right infrastructure, in theright place at the right time. Decades of underinvestment,combined with rapid growth, means that Auckland facessubstantial demand for new and expanded infrastructure.Rising community expectations, changing demographics,the need to improve environmental sustainability andresilience to natural disasters all add to this demand. Atthe same time, we also need to look after Aucklandsexisting public infrastructure.

Infrastructure is a big ticket item and the cost ofmeeting this demand is substantial. Despite signicantfunding streams from central government and potentialopportunities to partner with the private sector, fundingfor Auckland infrastructure is constrained. We thereforeneed to carefully manage this demand. The key ways wewill do this are by:

1. Planning for and coordinating growth

2. Implementing demand management measures

3. Investing in game-changing infrastructure projects

4. Making the most of our assets and networks

1. Planning for growthThe Auckland Plan outlines a quality compactapproach to growth that aims to ensure we leverageoff existing infrastructure wherever possible,and carefully plan for new growth and its likelyimplications for infrastructure.

In developing the Auckland Plan several options

for managing growth were considered. Publicfeedback clearly signaled that Aucklanders believeda quality compact approach was the best option.This approach focuses on making the best use ofland that has already been developed or targetedfor development, supplemented by the stagedrelease of greeneld land with the timely deliveryof infrastructure. The quality compact approach willprovide for 60-70 per cent of growth in homes and

jobs within Aucklands existing core urban area; with

30-40 per cent of growth occurring in new greeneldareas, satellite towns and rural and coastal towns.The approach also recognises the importance ofcreating quality neighbourhoods and urban placeswhere people want to live and work.

Auckland will need 330,000 to 400,000 new homesover the next 30 years and there is currently a decitof about 20,000 homes in our city, putting pressureon housing costs, choice and quality.

To support Aucklands growth we will target our

investment over time so that the councils limitedresources are rst focused into places where wecan make the best use of existing infrastructure andwhere we can achieve the best overall outcomes.This means rst investing in those parts of Aucklandwhere investment will generate the most jobs, themost homes, greater mobility, better connectedcommunities, improved recreation and a qualityenvironment. We call this spatial prioritisation. Thisapproach acknowledges that some investment will

still occur outside these spatial priority areas, it is justabout focus.

Figure 1 shows the priority areas for growth anddevelopment that we have identied for the next 10

years, along with the location of the Special HousingAreas (SHAs) that have been approved for fast trackmasterplanning, plan variations and consenting.SHAs are primarily in locations identied for growthin the Auckland Plan and the Proposed AucklandUnitary Plan, and are recommended by Auckland

Council for approval by the Minister of Housing.SHAs will enhance the provision of affordable


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Figure 1: Spatial priorities and Special Housing Areas (SHAs)


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Rail Link will signicantly reduce pressure on ourroads. Without the City Rail Link, the time it takesto drive into the city centre from the west and southwill increase by between a third and a half, and trafcspeeds in the city centre at peak times are projectedto drop to 7 kilometers per hour by 2021. Solelyrelying on more buses will not help. For example,without the City Rail Link we would need more than

250 buses an hour on Symonds Street. Clearly thiswould have major trafc impacts.

In June 2013 central government announced itscommitment to a joint business plan for the City RailLink with Auckland Council in 2017 and providingits share of funding for a construction start in 2020.They also announced they would consider an earlierstart date if it became clear that Aucklands CBDemployment increases by 25 per cent over the2012 levels and rail patronage growth was on track

to reach 20 million trips before 2020. We considerthat government contributions from 2020 is notsoon enough and have therefore continued to workcollaboratively with government agencies andministers to support our case for earlier funding.

With the focus and investment in public transport,we have seen signicant increase in rail boardings inrecent years. The year to October 2014 reached 12million boardings which was an 18 per cent increasefrom the prior year. Three of the four years prior to

this recorded double digit growth in rail boardings.With the roll out of the electric trains this stronggrowth is expected to continue. To reach 20 millionboardings by 2018, the rate of average annual growthover the next 4 years would need to be 14 per cent.

Aucklands CBD employment is progressing well withthe market clearly signaling the city centre is thepreferred option for investment. Some examples ofthe planned growth in the next decade:

Fonterras new head ofce the Downtown shopping centre redevelopment

the International Convention centre

the University of Auckland Newmarket Campus

Victoria St/Albert St 50+ storey planneddevelopment

development of a 5 star hotel, 50,000 squaremetre commercial space and 6,000 residencesplanned in Wynyard Quarter.

City centre employment would need to increaseannually by 5.2 per cent and it is currently tracking at4.5 per cent annual growth.

Our proposed 10-year budget provides $2.3 billionof capital expenditure for this project (making thetotal estimated cost $2.5 billion when prior yearspend is included) and includes an assumption thatcentral government will contribute $1 billion from2018/2019. While the council considers governmentvery supportive, this assumption is not yet backed bya formal agreement and so there is a high degree of

uncertainty associated with this assumption.The City Rail Link project has two main constructioncomponents in addition to land acquisition and earlydesign work. The rst at an estimated cost of around$280 million for the early enabling works, and thesecond estimated at approximately $1.9 billion forthe main construction contract. The enabling worksin the rst phase will involve building two rail tunnelsbetween Britomart under Queen Street and theDowntown Shopping Centre, and a cut and cover

tunnel under Albert Street as far as Wyndham Street.The enabling works are planned for 2016 to 2017to coincide with the planned redevelopment of theDowntown Shopping Centre by Precinct PropertiesLtd. In their October 2014 ministerial brieng,the New Zealand Transport Agency commentedthat this is a sensible sequencing of enablingworks which will minimise disruption of criticalintersections in the CBD, and enable compliance withthe planning conditions that only one intersection

can be out of action at any one time. A morecompact construction schedule at a later time wouldprove too disruptive.

Timing of Government funding

We will continue to work with central governmentto explore the possibility of starting the mainconstruction work as soon as possible. However,given the absence of a funding agreement withcentral government, council will only proceed withroute protection and enabling works and will notallow a contract for the main construction worksuntil a funding agreement is in place. This willensure that we remain within our debt target andrates increase limit. Given central governmentscommitment to provide funding from 2020,proceeding with only the enabling works in theshort term will not be wasted effort. It will simplyrepresent a sensible and practical approach todelivering this critical piece of infrastructure.

Figure 2provides an overview of the nancialprojections for the City Rail Link included in ourproposed 10-year budget.


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Figure 2: CRL nancial projections with government funding commencing in 2018/2019

0

50

100

300

150

350

400

450

500

200

250

ToFY15

FY16 FY17 FY18 FY19

Financial year

FY20 FY21 FY22 FY23 FY24 FY25

Key nancials

Total capital spend - $2.5b

inated Government funding - $1.0b

commencing in FY19 Key annual operating nancials in

rst full year of operations (FY24):

Fare box revenue - $23m

NZTA operating subsidy - $16m

Operating costs - $32m

Interest - $94m

Depreciation - $23m

Operational rates impact - $110m

0

50

100

300

150

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400

450

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To

FY15

FY16 FY17 FY18 FY19

Financial year

FY20 FY21 FY22 FY23 FY24 FY25

Key nancials

Total capital spend - $2.5binated

Government funding - $1.0bcommencing in FY20

Key annual operating nancials inrst full year of operations (FY24):

Fare box revenue - $23m

NZTA operating subsidy - $16m Operating costs - $32m

Interest - $99m

Depreciation - $23m

Operational rates impact - $115m

Figure 3: CRL nancial projections with government funding commencing in 2020

Financial projections for City Rail Link (CRL)

Capitalexpenditure

($million

)

Capitalexpenditure

($million

)


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Fundingagreementstatus

Government agrees to providefunding in 2015/2016

Government agrees to providefunding in 2018/2019

Government does not agree toprovide funding before 2020

Projectsequencing

Proceed with all project phases In line with our LTP projections,proceed only with the enablingworks phase now. Then proceedwith the initiation of contracts tocommence main construction workin 2018/2019

Proceed only with the enablingworks phase now. Work towardscommencing construction workin 2018/2019 backed by a rmcommitment of government fundingfrom 2020

Financial

impacts

Slight decrease in debt gures As per draft budget numbers Council debt would be $416 millionhigher in 2020 than projected inour draft numbers, but about thesame by 2025. We would exceedour interest to revenue target of 12per cent for four nancial years, withthis ratio peaking at 12.3 per cent in2020. Our proposed overall averagegeneral rates increases would beunchanged

Service levelimpacts

Benets in terms of faster, morefrequent and more reliable trainservices, along with signicantlyreduced pressure on road congestion,will be delivered earlier than planned.As planned, other transport projectswill be delivered later and road andfootpath maintenance standardswould reduce from their current highlevels.

Benets from the City Rail Linkwould be delivered as plannedbut there will be signicant buscongestion in the CBD in 2021 untilthe project is operational in 2023.As planned, other transport projectswill be delivered later and road andfootpath maintenance standardswould reduce from their currenthigh levels.

Benets from the City Rail Linkwould be delivered later, withsignicant bus congestion in theCBD from 2021 until the projectbecomes operational in 2023. Asplanned, other transport projectswill be delivered later and road andfootpath maintenance standardswould reduce from their currenthigh levels.

If by 2017 the council still does not have agreementfor central government funding to begin in 2018/2019we will reassess our available options at that time. Ifthere is a formal agreement with central governmentto provide funding two years later from 2020, weconsider that the most likely option would be that thecouncil would work towards commencing constructionin 2018/2019 backed by this formal agreement.

Figure 3provides an overview of how our nancialprojections would look under that scenario, whichwould see council debt $416 million higher in 2020than projected in our draft numbers, but about thesame by 2025. We would exceed our interest torevenue target of 12 per cent for four nancial years,with this ratio peaking at 12.3 per cent in 2020. Ourproposed overall average general rates increases wouldbe unchanged.

We acknowledge the signicant nancial commitment

the project represents for Auckland ratepayers. Wealso acknowledge that while the project can besustainably funded within the projected 3.5 per centoverall average annual general rates increase each

year for existing ratepayers and within targeted andprudent debt ratios, many other transport projects willnot proceed as a result of accommodating the City RailLink in this 10 year budget period without signicantadditional funding.

The impact of not proceeding with the other transportprojects within the next 10 years would be that apartfrom progress on a few key public transport projectsand minor investment to relieve severe overcrowding,public transport service levels would be improved in2016 but then no further improvements would bemade over the following nine years. It also meanslower road and footpath maintenance standards,minimal improvements to local and arterial roads,walking and cycling facilities and roads to service keypopulation growth areas.

Table 2outlines what we believe are the three mainscenarios for the outcome of our discussions withcentral government about the level and timing offunding, and the nancial and service level impactsassociated with each scenario.

Table 2: Overview of impact of the three main CRL scenarios


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4. Making the most of our assetsand networks

To help address the issue of signicant demandfor infrastructure within a context of constrainedfunding, we must ensure that we get as muchvalue as possible from our existing assets andour investment in new assets. A key part of this

is addressing issues at a network or system levelto ensure effective, efcient and innovativemanagement of our assets, and to guide ourinvestment in new assets. When we do this, we takea long-term view and consider impacts over the 30-

year period of our infrastructure strategy.

For our existing assets, this means that insteadof only focusing on the best time to repair orreplace each individual asset, we develop plans thatconsider how these assets all work together as part

of an interconnected network. We therefore seekto develop asset plans that will ensure the entirenetwork of assets is managed in a way that is tfor purpose, minimises cost over the long-termand ensures that risks to service levels and publicsafety are acceptable both now and in the future.Where near-term funding constraints do not allowa long-term optimal approach to be employed, wewill monitor the condition of our assets to ensurethat risk levels remain acceptable and future asset

expenditure requirements are sustainable. Withoutsignicant additional funding, this is the case for ourtransport assets as discussed on page 20.

To make better use of our parks and communityinfrastructure we will explore opportunities todispose of under-utilised or non-performing assets.Because funding constraints mean that overthe medium to long term we will not be able tomaintain all of our parks and community assets intheir optimal condition, we will review these asset

portfolios to ensure that we are achieving best valuefor money.

The middle scenario with government fundingstarting in 2018/2019 is the scenario that our draft10-year budgets are based on. However, given theurgent need to deliver the City Rail Link as soon aspossible, we will continue to talk to the governmentabout providing funding in 2015/2016 as per the rstscenario. Equally, we acknowledge the possibility thatgovernment funding does not become available until

2020 and have considered how the project wouldproceed in that scenario.

Central Interceptor

Another example of a transformative infrastructureproject is the central interceptor, a new wastewatertunnel proposed to run between Western Springsand the Mangere wastewater treatment plant. Theestimated cost is $966 million and the project willbe completed in late 2024. In addition to addressing

issues of aging infrastructure that is reaching itscapacity, this project is expected to reduce thevolume of wastewater that overows into our twoharbours by 80 per cent. It will also provide criticalinfrastructure capacity to enable the intensicationand urban redevelopment of large parts of theAuckland Isthmus. This project will be fully fundedby Watercare through its water charges, with noreliance on general rate funding.


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The use of a network approach often means gettingbetter returns from investment by getting more outof existing assets rather than building new ones. Forexample, instead of undertaking an expensive projectto widen an arterial road and upgrade several majorintersections, we may instead be able to achievesimilar benets in terms of safety and trafc ow byoptimising the timing of trafc signals, introducing

parking restrictions and reviewing speed limits.We will also look to get better returns by buildingmulti-use assets. For example, combined librariesand community facilities rather than separate newbuildings.

Table 3provides a summary of major infrastructureprojects with their indicative costs and timing.For more information on infrastructure projectsand our strategies for managing infrastructuredemand, please refer tosection 2 (PDF 2.1MB)ofthe supporting information for this consultationdocument.
http://shapeauckland.co.nz/media/1151/section-2-infrastructure-strategy.pdfhttp://shapeauckland.co.nz/media/1151/section-2-infrastructure-strategy.pdfhttp://shapeauckland.co.nz/media/1151/section-2-infrastructure-strategy.pdf


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2015-25 2025-35 2036-45

BasicTransportProgramme

City Rail LinkAn underground rail line linking Britomart andthe city centre with the existing western railline near Mt Eden.

$2.5billion

(includes $200mspent prior to this

LTP)

AMETIA package of transport improvements in the Glen

Innes - Panmure - Pakuranga - Botany corridor.

$553m $545m

Mill RoadAn upgrade of the Redoubt-Mill Road corridorto support residential and employment growth.

$144m $266m $410m

East-WestConnectionsProject

A joint NZTA / AT programme focused on theOnehunga, Mt Wellington, Otahuhu, Penrose,Mangere and East Tamaki area, to improvefreight efciency, commuter travel, publictransport and walking and cycling options.

$135m

This may bedelivered earlier

under a governmentaccelerated package.

City CentrePublic

TransportImprovements

Projects include the Wynyard Bus Interchange,

Learning Quarter Interchange, DowntownInterchange and bus priority improvements. $117m

AucklandPlan

Transport

Programme SMART (Airport

Rail Link)

Improvements to roads, public transport, andcycling in the vicinity of the airport and improvedconnections between the airport and city centre.

$18m $667m $2,569m

PenlinkA proposed alternative route between Redvaleand Whangaparaoa in the north.

$556m

Wastewater

CentralInterceptor

Spine

A new wastewater conveyance and storagepipeline.

$966m

CentralCollector andLink Sewers

Works to maximise investment in CentralInterceptor Spine.

$299m

WaterfrontInterceptor

3.5 km conveyance and storage tunnel fromPonsonby to St Marys Bay.

$25m $325m

NorthernInterceptor

A new wastewater pipeline which will divertows from Mangere Waste Water TreatmentPlant to Rosedale Waste Water Treatment Plant.

$135m $102m

WaterSupply

Waikato WaterTreatmentPlant No.2

The provision of additional water abstraction,treatment and conveyance capacity from theWaikato river.

$400m $316m

Huia WaterTreatmentPlant

The replacement of the Huia Water TreatmentPlant and the provision of improved treatmentprocesses.

$241m

Stormwater

Artillery Tunnel& TakaniniConveyance

A one kilometre long tunnel and a new openchannel to service the Takanini Growth areas.

$44m

Oakley CreekConveyance

Upgrading culverts and widening of Oakley

Creek through Walmsley Park to enableintensication and redevelopment.

$30m

Table 3: Major infrastructure projects planned in next 30 years


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Affordability andfunding

Affordability and rates increasesAt the heart of affordability lies the question of howmuch people are willing to pay to make Aucklandbetter. Previous feedback has told us that Aucklandersclearly support making progress, particularly withxing Aucklands transport problems and improvingthe quality of Aucklands urban environment. Howeverwe have also heard that there is no appetite for large

increases in rates or council debt.While affordability is often expressed in terms ofconsumer price ination, due to a healthy economy, theincome for the average Auckland household is growingfaster than ination1. Auckland Council also currentlyhas signicant borrowing capacity. Auckland therefore

does not face any hard and fast funding constraints.The key question is how willing are Aucklanders topay higher rates and other charges in order to makeprogress?

We consider a 3.5 per cent overall average general ratesincrease each year for existing ratepayers to be the rightbalance between affordability and progress. Rates for

individual properties will vary depending on a range offactors including property revaluations, any targeted ratesthat apply and whether the property is used for business,residential or farming purposes. In 2015/2016 this willmean someone with a $500,000 home would pay $32a week in general rates and someone with a $1,500,000home would pay $80 a week, while the average Aucklandbusiness would pay $252 per week. Similarly, watercharges are projected to increase at 2.5 per cent for thenext two years and 3.6 per cent each year thereafter.

Development contributions and most other councilcharges will increase with ination each year.

Figure 4shows the projected path of overall averagegeneral rates increases for existing ratepayers, as well asprojected rates and non-rates revenue for the next 10

years2.

0 0.0%

0.5%

1.0%

1.5%2.0%

2.5%

3.0%

4.0%

3.5%

$million

Ratesinc

rease

1000

2000

3000

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6000

Actualresults2012/13



2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

Rates revenue $ Non-rates revenue $ Rates increase %

Figure 4: Council revenue sources

1Sources: Statistics NZ, HES 2013; Stat NZ, Consumers Price Index: June 2013 quarter and Auckland Council internal rates analysis.

2Rates revenue includes revenue from both general and targeted rates, and it increases due to both rates increases for existing ratepayers and the creation of new ratingunits each year as Auckland grows.


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Getting the most value from everydollar we collectIn order to address Aucklands investment needs, it iscritical that we get the most value out of every dollarwe collect. The primary ways we do this are:

1. Maximising efciency savings

2. Maximising the disposal of non-strategic surplusassets

3. Maximising the return on our investments

4. Partnering with others and investigatingalternative funding mechanisms

1. Efciency savings More for less

Over the last three years by simplifying our businessprocesses, improving procurement and bringing workin-house we have been able to deliver the same

or more each year for less. Efciency savings haveincreased from $81 million in the councils rst fullyear of operation to $183 million for the 2014/2015year, compared to the forecast cost of deliveringservices under the legacy councils. We now plan tofurther improve our technology and processes andaim to achieve efciency savings that build to almost$300 million per annum by 2025.

2. Disposal of non-strategic surplus assets

Auckland Council has a large holding of land and

buildings that are not essential for providing councilservices. We are targeting to sell an average of $66million per annum of surplus property assets over thenext 10 years to help with the challenge of fundingnew investment for Auckland.

3. Return on investments

We also plan to explore opportunities to increasethe return from our nancial investments such asour shareholdings in Auckland Airport and Ports of

Auckland.4. Partnering and new funding mechanisms

We recognise that we can achieve greater progressby partnering with other organisations includingthe private sector, central government, charitableorganisations and community groups. More effectivepartnering will make sure that every dollar wecollect will go further. We can also do more if weare prepared to consider new ways of paying forthings. Alternative ways to pay for new transportinvestment are a key example of this.

Prudent borrowingWe consider that the fairest way to pay for long-lifeassets is to borrow and spread the cost across thedifferent generations of ratepayers who will receivethe benets from these assets. However, we needto ensure we use debt sustainably and that servicingour debt is affordable for both current and future

ratepayers. We also need to make sure that we haveenough exibility to deal with any unexpected shockssuch as another global nancial crisis.

To ensure we remain prudent, we have adopted aset of three prudential limits that will ensure ourborrowings and interest expense do not grow toolarge relative to our rates and other revenue. Togetherwith our large asset base, these limits underpin our AAcredit rating, which is stronger than any New Zealandbank. However, after hearing Aucklanders expressing

strong concern about the level of council debt, wehave now taken a more conservative approach oftargeting to spend no more than 12 per cent of ourincome on the interest generated by debt.

In a similar way to how a household might x itsmortgage rate, we use interest rate hedging to lock inour borrowing costs. While this provides a high degreeof protection in the short-term, over the longer termthere is a risk that interest rates will be higher than wehave projected over the next 10 years. In the event

that interest rates in the future are higher than ourprojections, we would need to address this situationby reducing capital expenditure, reducing service levelsin some areas, selling additional surplus assets, ndingadditional efciency savings and/or increasing rates orother revenue.

We will monitor and review our projected futureinterest expense each year through our annual andlong-term planning processes.


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Proposed investmentBased on this approach to borrowing and a 3.5per cent overall average general rates increase forexisting ratepayers each year, we propose to spend$17 billion over the next 10 years on building andacquiring new assets and looking after our existingassets. This capital programme would see debt

growing to $10.8 billion over the coming 10 years. Inline with our target, our projected interest expensedoes not exceed 12 per cent of our income in any ofthe next 10 years.

Proposed capital programme

While $17 billion is a substantial amount, it is lessthan the $20 billion capital programme included inour previous long-term plan, which was supported byhigher overall average annual general rates increasesof 4.9 per cent for existing ratepayers.

The transport and parks, community and lifestyleareas were the areas with the most discretionarygrowth and service level capital expenditure in theprevious plan, so this is where we rst looked forpossible reductions. The largest area of reductionwas a $2.4 billion reduction in transport capitalexpenditure (down to $6.9 billion) compared to

our previous plan. Most of this reduction relatesto investment in new assets. This has resulted in areduction in investment across the board in areassuch as the cycle and walking network, park andrides, public transport infrastructure and the roadingnetwork. This change will impact on previouslyprojected public transport boardings as illustrated inthe Figure 5.

The reduction in public transport boardings relativeto the previous plan will result in higher levels ofcongestion across Auckland than forecast in ourprevious plan.

The level of renewal capital expenditure has alsodecreased by $200 million over 10 years relative toour previous plan, with decreases more prominentin the rst three years. The total planned renewalcapital expenditure in this plan is $2.45 billion over

10 years, compared with the $2.65 billion we werepreviously planning. This will see a change in thecondition of our transport assets and therefore it isprojected that there will be a decrease in the level ofservice over 10 years as shown in Figure 6. We willminimise and closely monitor this through continuedactive asset management, with a primary focus onsafety.


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Road maintenance standards (ride quality) as measured by smooth travel exposure (STE)for all urban roads

Road maintenance standards (ride quality) as measured by smooth travel exposure (STE)for all rural roads

Precentage of footpaths in acceptable condition

(as dened in ATs AMP)

60%

65%

70%

75%

95%

80%

100%

85%

90%

FY16 FY17 FY18 FY19 FY20

Financial year

FY21 FY22 FY23 FY24 FY25

Figure 6: Renewal impact on roads and footpaths

0

Financial year

millionboardings

20

40

60

80

100

120

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY23FY21 FY24FY22 FY25

Actual LTP 2012-2022 LTP 2015-2025

Figure 5: Public transport boardings


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Auckland Transport uses a forecasting tool todetermine the optimal long-term renewals investmentacross its asset portfolio over a 30 year timeframe.This tool looks at the condition of each asset (orgroup of assets) and uses rules of thumb about how

quickly different types of assets deteriorate overtime to estimate what the future condition of itsassets will be, and when they are likely to wear outcompletely. This tool enables Auckland Transportto analyse the trade-offs between spending smalleramounts quite frequently to always keep their assetsin good condition on the one hand, and spendinglarger amounts less frequently on the other hand sothat they only replace assets when they are close towearing out.

Historically Auckland Transport has typically takena preventative approach and maintained a highproportion of its assets in a good or very goodcondition. Using this forecasting tool and the bestavailable information about the state of their assets,Auckland Transport has determined that the optimalapproach for managing their assets over the longterm would be to increase their spending on assetrenewals by more than $1 billion over the next 10

years compared to our previous long-term plan. This

approach would allow Auckland Transport to retainor even improve their very high road maintenancestandards, minimise asset risk, and over time reduceoperating spend on repairs and maintenance.However, given our currently available fundingmechanisms and the urgent need to deliver the CityRail Link, adopting this approach would result inunacceptably high increases in rates and council debtover the next 10 years.

The option discussed in part 2 of this consultation

document to x Aucklands transport paid for by analternative funding stream would see us adopting thispreventative approach. However in our proposed planbased on our current funding mechanisms, we areinstead planning to move towards a more targetedrisk-based approach to managing our transport assetsthat aims to achieve acceptable levels of satisfactionwhile minimising risks to public safety. This approachwould result in higher risk, potentially higher futureoperating expenditure requirements and a reductionin those very high road maintenance standards to alevel that is still quite high compared to other citiesinternationally. Auckland Transports modelling tool

indicates this approach would result in the proportionof assets in poor to very poor condition steadilyincreasing over the next 20 years but then stabilisingafter that. We therefore consider that while thisapproach may not be optimal over the long-term, it is

prudent and sustainable.The key things we would do to manage the higher riskunder this approach and ensure we remain prudentinclude:

focusing on renewing critical or highly utilised assetgroups that have a high proportion in poor to verypoor condition

closely monitoring asset condition and regularlyrunning the forecasting tool to ensure we always

have an up-to-date understanding of future renewalrequirements

regular reprioritisation of the wider transportprogramme through annual and long-term plans.Because Auckland Transport prioritisation approachworks by rst determining the cost of keepingAucklands transport network running and thencalculating how much funding is available fordiscretionary investment, rapid growth in therequirement to undertake urgent renewals would

in the rst instance result in less spending on newinvestment. Over time this could lead to lowerpublic transport service levels and increased trafccongestion as Auckland grows.

Auckland Transport renewals



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Auckland Council also considered an $800 millionreduction in capital spend on parks, communityand lifestyle assets over 10 years compared to ourprevious plan. This would have meant signicantly lessinvestment into local communities with fewer new orupgraded local and sports parks, library and communityfacilities. On the other hand, it would have meantgeneral rates would initially only have to increase by an

overall average of 2.5 per cent and we would have beenless reliant on the sale of non-strategic surplus assets.Following feedback from our local boards about theimpact of this change on local communities, the councildecided not to propose this reduction.

While our proposed $2.15 billion capital spend in theparks, community and lifestyle area over the next 10

years is substantial and remains very similar to theamount in our previous plan, it is not quite sufcient tomaintain all of our community assets in their optimal

condition over the medium to long term, while alsomeeting all of the other demands for spend in this area.However, we know that some of these assets are poorlyutilised and/or provide less value than others. Thereforewe will review these asset portfolios to ensure thatwe are achieving best value for money. As with ourtransport assets, we will also monitor and minimise anyservice level impacts through continued active assetmanagement, with a primary focus on safety.

As with transport and parks, community and lifestyle

assets, the proposed capital expenditure budgets forstormwater, water supply and wastewater are primarilyinformed by the relevant asset management plans. Thebudgets for these three areas represent what we consideris the right balance between maintaining and improvingservice levels and providing for growth, and keepingrates and water charges affordable. Growth planning andspatial prioritisation have played a key role in developingthese asset management plans and in informing how,when and where key investments should be made.

In some areas, while there has been no material changein the overall spend compared to the previous plan,there has been some material reprioritisation. Forexample, investment in upgrading town centres withinthe Auckland Development area has been refocusedbased on the spatial priority areas. Similarly, RegionalFacilities Auckland has reprioritised existing budgetsto accommodate $30 million of investment in TheAuckland Stadium Strategy which seeks to optimise ourstadium network.

We propose to allocate the $17 billion of capital spendingas set out in Figures 7 and 8on the following pages.

This level of spend will result in council debt growing

by $3.5 billion over the next ten years, from $7.3 billion inJune 2015 to $10.8 billion by June 2025. Figures 9 and 10on the following pages show how this projected debt levelcompares with our asset projections and how the growthin debt compares with our investment in new assets.

By 2025 the council is much less reliant on borrowingto fund its capital expenditure programme than itis today. This is largely due to council having fullyimplemented its deprecation funding policy3by 2025.

Proposed spending on services

We are also proposing to spend $40 billion over thenext 10 years on the wide range of day to day serviceswe provide such as maintaining roads and runninglibraries. Included within this $40 billion is the interestand ownership cost of new assets.

Again this is less than was included in our previousplan, in part because lower capital expenditure leads tolower interest and ownership costs. However, we arealso proposing some reductions in the services that weprovide that are unrelated to the capital programme.Examples include: reduced spending on planning and policy work,

with more focus on core activities such as bylaws,the Unitary Plan and statutory monitoring of theenvironment

reduced spending on community development, witha greater focus on empowering communities to

deliver for themselves standardisation of library hours across the region reductions in parks maintenance such as the removal

of street gardens that are expensive to maintain andstandardising the frequency of park mowing acrossthe region

standardisation of fees and charges and greater costrecovery in some areas

reduced spending on environmental advisory andeducation services.

The efciency savings discussed earlier also contributeto the reduction in planned operating spend comparedto the previous plan. Figure 11shows the make up ofthis spend over the next 10 years.

For more information on our approach to financialmanagement, please refer tosection 3 (PDF 362KB)of the supporting information for this consultationdocument. For more information about our plans,budgets and performance targets for the next 10

years please refer to sections 4 (PDF 943KB)and 5 of

the supporting information.Section 5 also providesmore information about the impact of the proposedreductions compared to our previous long-term plan.

3 Further details on this policy are including insections 3 (PDF 362KB)and 9.1

(PDF 187KB)of the supporting information for this consultation document.10-year budget 2015-2025 consultation document 23
http://shapeauckland.co.nz/media/1153/section-3-financial-strategy.pdfhttp://shapeauckland.co.nz/media/1153/section-3-financial-strategy.pdfhttp://shapeauckland.co.nz/media/1153/section-3-financial-strategy.pdfhttp://shapeauckland.co.nz/media/1154/section-4-indicative-financial-statements.pdfhttp://shapeauckland.co.nz/media/1154/section-4-indicative-financial-statements.pdfhttp://shapeauckland.co.nz/consultations/aucklands-10-year-budget-2015-2025/documents-and-tools/#Section5http://shapeauckland.co.nz/consultations/aucklands-10-year-budget-2015-2025/documents-and-tools/#Section5http://shapeauckland.co.nz/consultations/aucklands-10-year-budget-2015-2025/documents-and-tools/#Section5http://shapeauckland.co.nz/media/1153/section-3-financial-strategy.pdfhttp://shapeauckland.co.nz/media/1153/section-3-financial-strategy.pdfhttp://shapeauckland.co.nz/media/1153/section-3-financial-strategy.pdfhttp://shapeauckland.co.nz/media/1172/section-91-draft-revenue-and-financing-policy.pdfhttp://shapeauckland.co.nz/media/1172/section-91-draft-revenue-and-financing-policy.pdfhttp://shapeauckland.co.nz/media/1172/section-91-draft-revenue-and-financing-policy.pdfhttp://shapeauckland.co.nz/media/1172/section-91-draft-revenue-and-financing-policy.pdfhttp://shapeauckland.co.nz/media/1172/section-91-draft-revenue-and-financing-policy.pdfhttp://shapeauckland.co.nz/media/1172/section-91-draft-revenue-and-financing-policy.pdfhttp://shapeauckland.co.nz/media/1153/section-3-financial-strategy.pdfhttp://shapeauckland.co.nz/consultations/aucklands-10-year-budget-2015-2025/documents-and-tools/#Section5http://shapeauckland.co.nz/media/1154/section-4-indicative-financial-statements.pdfhttp://shapeauckland.co.nz/media/1153/section-3-financial-strategy.pdf


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0

$million

500

1000

1500

2000

2500




2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

Renewals Level of service Growth

Figure 8: Capital expenditure by type

Transport (40%)

Auckland Development (6%)

Water supply and wastewater (27%)

Economic and Cultural Development (2%)

Governance and Support (7%)

Environmental Management and Regulation (6%)

Parks, Community and lifestyle (12%)

Figure 7: Capital expenditure by theme


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Area of spend

Capital spend

2015-2025

$17.2bn

Operating spend

2015-2025

$39.7bn

How operating costs are fundedRates value

per $100

Draft 10-year budget at a glance

Auckland Development

Economic and CulturalDevelopment

EnvironmentalManagement and

Regulation

Governanceand Support

Parks, Communityand Lifestyle

Water Supply andWastewater

$1bn

$0.4bn

$1bn

$1.1bn

$2.1bn

$4.7bn

$2.2bn

$2.2bn

$4.3bn

$6.1bn

$5.3bn

$6.6bn

Other,including feesand charges



Rates 60%

40%


Rates

31%

69%

Rates

49%

51%


Rates 85%

15%

Rates 0%

100%

$7

$8

$11

$22

$0


Rates 48%

52%

$18

Transport

$6.9bn $13bn Other,including feesand charges

Rates 58%

42%

$34


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What will be delivered Whats changed

Unitary Plan and local plans, policy development, waterfrontdevelopment, town centre development, propertymanagement and development

Some reductions in spending and service levels Planning and policy activity reduced Prioritising the completion of the Auckland Unitary Plan

Prioritising capital projects in locations where they are most needed Replace Waterfront Auckland and Auckland Council Properties Ltd

with a new CCO to more effectively work with the private sector onthe development of housing and town centres

Supporting and growing Aucklands economy through majorevents such as Cricket World Cup 2015, NRL AucklandNines, Pasika Festival Auckland, V8 Supercars, WorldMasters Games 2017

Working with business sector to grow jobs Managing major attractions, venues and sports stadiums

Similar levels of service and expenditure Renewing ageing Auckland Zoo infrastructure Investing in QBE (North Harbour), Western Springs and Mt Smart

stadiums to support the Auckland Stadium Strategy

Building and maintaining the stormwater network

Improving the quality of water in streams and harbours Waste collection, including recycling and reducing waste to landll Protecting biodiversity Undertaking regulatory activities such as resource and

building consents, dog control, food licensing and swimmingpool inspections

Minor reductions in expenditure and some education programmes

Funding a greater proportion of costs through user-pays fees Maintaining stormwater network investment at existing levels for

reasons of safety and environmental protection Rolling out the Waste Management and Minimisation Plan to

introduce a region-wide organic collection, a pay as you throwwaste collection, and changes to the inorganic collection service

Mayor, councillor and local board support and meetingprocesses

Corporate functions such as nance, legal and human resources Auckland Council Investments Ltd, including Ports of Auckland Grants to Auckland War Memorial Museum, MoTAT and

the Auckland Regional Facilities and Amenities

Reducing corporate costs through an ongoing efciency programme further reductions of $21 million in year one and $30 million from

year two onwards Improved returns from Ports of Auckland and Auckland International

Airport

Regional and local parks Libraries, community facilities, community services

and grants Arts and cultural facilities, activities and community events Swimming pools and recreation centres Housing for older adults

Minor reduction in levels of service including lower-cost streetgardens, spraying instead of mechanical edging, reduced andstandardised library hours

New revenue streams and user fees through standardised fees forcemeteries, more commercial structures in leisure centres and feesfor some events in parks

Introduce a more community-led approach to community development Standardising rentals for social housing Prioritising capital projects where they are most needed

Building and maintaining all local and main arterial roads

Footpaths, cycle paths, bridges, carparks, culverts etc Providing public transport services trains, buses, ferries Invest in rail, bus stations and ferry terminals Transport related education and enforcement Key infrastructure projects, including City Rail Link and AMETI

A 3.5 per cent average annual increase in rates will pay for a basictransport package (estimated $6.9 billion over ten years). It doesnot provide the investment needed to avoid severe congestionissues in the next decade (see Part 2).

Signicant reductions in levels of service

Fewer public transport improvements Deferring of some projects and maintenance Drastically reducing the number of key projects to deliver

These changes are necessary to keep rates increases low. However,as Aucklanders have told us they want action on transport to avoidserious congestion problems, we have also developed an alternativeplan to develop a transport network that will get Auckland moving,along with options for funding. See part 2 for details.

Building and maintaining the network of pipes, dams,treatment plants, pumps required to provide a high standardof drinking water and treating sewerage

Major projects over the next 10 years are the centralinterceptor and the consent application for further water takefrom the Waikato River to cater for Aucklands future growth

No changes in levels of service Focusing on major, high-priority projects that will cater for

projected growth, including the central interceptor (to reduce

sewage overows into waterways in central Auckland and theWaitemata harbour) and the consent application for further watertake from the Waikato River to cater for Aucklands future growth.

Water and wastewater spend is funded almost entirely by usercharges changes have been made to enable water and wastewatercharge increases to be reduced to 2.5 per cent in the rst two yearsand 3.6 per cent each year thereafter.


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Part 2:Key issues where we need

your feedback


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Key issue 1:Investing in Auckland

- balancing progresswith affordability

Issue:Given our currently available fundingmechanisms, what is the right balancebetween affordability and making progress

for Auckland?

Principal options:(a) Overall average general rates increase

of 3.5 per cent each year for existingratepayers and council debt growingto $10.8 billion by 2025 to enable theproposed investment and spendingoutlined in this consultation document

(b) Average rates increases of 4.9 per centeach year (and higher debt levels) as perour previous long-term plan, to enablemore investment in Auckland sooner

(c) Average rates increase at the futureprojected rate of ination and lower debtlevels, with minimal investment in newassets

Option (a) is described in part one. Option (b)represents our previous plan, and the changesbetween these two options are also summarisedin part one. Option (b) would mean that we couldmake more progress on improving service levels

sooner, enhance our ability to look after our assetsand provide us with greater exibility to do more.It would however mean less affordable rates, thatcouncil debt would reach $13.7 billion by 2025 andour interest cost would exceed 12 per cent of ourrevenue. This debt level would be manageable, but

would involve more risk and more constraints onfuture ratepayers.

Given the growth Auckland is facing option (c)would result in falling service levels over timeacross everything we do. Managing the trade-offsbetween maintenance standards for our existingassets and progressing new investment wouldbecome increasingly difcult. We would not see anyimprovements in public transport services or anynew walking and cycling options, congestion would

increase and roads would be less well maintained.We would see fewer stormwater upgrades toprotect properties from ooding, and may see lowerservice levels for our swimming pools, libraries andcommunity facilities. It would also mean that localcommunities would have fewer resources available toinuence and shape their part of Auckland. However,this option would deliver more affordable rates andslower growth in council debt.

Do you agree with the proposed overall averagegeneral rates increase of 3.5 per cent each yearwhich will enable the proposed investment andspending outlined in this document?

See question 1a on the feedback form.

If you dont agree, in which activity areas doyou think we should spend more or spend less,

and what level of general rates increase wouldyou support?See question 1b on the feedback form.

Part one set out what we are planning for the next 10years and why. Do you agree that were on the righttrack?

We have talked about the trade-offs between progressand affordability, and the importance of moving toan outstanding public transport network and radicallyimproving the quality of urban living. In addition, giventhe signicant changes in rates across the region thathave recently occurred as the result of moving to asingle rating system, and given the signicant changes

arising from the recent property revaluations, it isimportant that we ensure that our rating policies arefair and appropriate.

So our four key issues where we want your feedback are:

1. Investing in Auckland - balancing progress withaffordability

2. Fixing Aucklands transport

3. Housing and development - a more activedevelopment role for council4. Your rates
http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/aucklands10yrbudgetfeedbackform.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/aucklands10yrbudgetfeedbackform.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/aucklands10yrbudgetfeedbackform.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/aucklands10yrbudgetfeedbackform.aspx


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Key issue 2:Fixing Aucklandstransport

Issue:Are we prepared to pay more to x Aucklandstransport problems?

Principal options:

(a) A Basic Transport Network(b) The Auckland Plan Transport Network,

paid for by higher rates and fuel taxes

(c) The Auckland Plan Transport Network,paid for by a new motorway charge

For Auckland to become the worlds most liveablecity, support the 237,000 additional residents weexpect over the next 10 years, and alleviate existingcongestion, far higher levels of public transportare required. Improving public transport will notonly help those who use it, but improve Aucklandsliveability and prosperity by making better useof the transport network, reducing congestion,improving access for all, supporting improvedeconomic performance and reducing transportsenvironmental impacts. In essence, we must choosebetween investing to become a more connected andaccessible city, versus saving money and acceptingcongestion and fewer transport options.

While we need to keep our transport assets in goodcondition, keep the buses, trains and ferries runningand to some extent provide critical infrastructurefor new housing developments, we do have a lot ofdiscretion on how much and how fast we invest intransport.

Basic Transport NetworkOur proposed 10 year plan therefore includes a basictransport capital programme of $6.9 billion over thenext 10 years. That is about 25 per cent less thanthe $9.3 billion we had previously planned. Thisrepresents what we can achieve with our currentfunding mechanisms and within a 3.5 per cent overall

average general rates increase for existing ratepayerseach year. However, this spending plan will not meetour aspirations for transport and will in fact result inAucklands transport problems getting worse overtime as Auckland grows.

The Basic Transport Network would include somekey items Aucklanders have already said they wantus to prioritise, including:

the City Rail Link to expand the capacity of ourentire rail network

North Western Growth Area projects Warkworth State Highway 1 intersection

improvements Auckland Manukau Eastern Transport Initiative

(AMETI) East-West Connections upgrades Lincoln, Te Atatu and Dominion Road upgrades limited investment in key transport programmes

over the next 10 years:

$71 million walking and cycling programme

$72 million bus lane programme $182 million safety programme.

However, this option would not enable a wide rangeof signicant proposed projects to be deliveredwithin the next 10 years including:

the majority of local and arterial roading projectsacross the region

almost all of the park and ride projects currentlyprogrammed

the North-Western busway and Penlink

a new train station at Paerata and upgrades toPukekohe, Takanini and Te Mahia stations

grade separation4of rail level crossings additional investment in walking, cycling, bus lane

and safety programmes.

Furthermore, without additional funding many of theimportant projects included in the Basic TransportNetwork, such as critical infrastructure to supportthe new public transport network, will not be able

4Changing the road conguration so that people and vehicles do not cross therail line at ground level. In practice, this means either an underpass or a bridgeover the rail line.


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to occur until after 2020 and in addition we will notbe able to maximise the benet of the investmentmade by New Zealand Transport Agency on our statehighway network. The performance of the transportsystem would get progressively worse as Aucklandspopulation grows.

In short, the Basic Transport Network will deliver lessand cost less. The question is: Is this what we want,or should we spend more to get more?

It is clear that the Basic Transport Network will notsolve our existing transport problems and will in factsee them get worse. It will not deliver the signicanttransport improvements that Aucklanders have toldus they want.

Auckland Plan Transport NetworkAucklanders want us to improve the speed, frequency,affordability, reliability and attractiveness of ournetwork so that more Aucklanders will choose totravel by public transport more often. The AucklandPlan envisages us doubling the number of publictransport passenger trips to a total of 140 million trips

each year by 2022. An expanded network would alsobetter connect with and allow development of outer-lying areas.

As an alternative to the basic network, the AucklandPlan Transport Network would involve additionalfunding of $12 billion over the next 30 years to addressour trafc and public transport issues. The main benetof this additional investment would be less congestedroads (than would otherwise occur), as well as fasterand more frequent public transport that becomes

the preferred way of getting around for many moreAucklanders. Investing in the Auckland Plan TransportNetwork would transform the customer experience ofpublic transport, attracting more people to make moretrips on buses, trains and ferries as well as by walkingand cycling. This in turn will release capacity on theroad network for freight and other road trips.

Over the next 10 years, the Auckland Plan TransportNetwork would enable $3.4 billion of additionaltransport capital investment and increase council debt

by an additional $1.7 billion to be $12.5 billion by 2025.


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Auckland Plan Transport Network(2015-2025) $10.3 Billion

Basic Transport Network(2015-2025) $6.9 Billion

Includes signicant investment on top of the Basic Transport Network withmany of the projects under the basic network being delivered earlier.

2015/16 to 2024/25 Complete the roll-out of the new public transport network by

2018/2019 Earlier delivery of more key road improvements than in the basic

programme, including Te Atatu, Flat Bush and Albany Silverdale transport improvements including a park and ride Faster completion of East West Connections and AMETI busway

from Panmure to Pakuranga At least 15 new park and rides Ferry terminal upgrades: Devonport, Bayswater, Half Moon Bay Five rail station upgrades and a new station at Paerata Bus lanes, bus priority improvements and interchanges to reduce delays

and bus congestion Full integrated fare system - simpler fares to encourage patronage growth,

with many interchange points Grade separation at high priority rail level crossings Road improvement projects creating additional capacity to cope with

expected growth and existing congestion Completion of 55% of the Auckland cycle network by 2025 More school, workplace and community travel plans Expanding the regional safety and safety around schools programmes

Maintaining asset renewals at higher levels to ensure a greater proportionof transport assets remain in better condition

2025/26 2044/45 Investment in strategic projects such as the additional harbour crossing,

Penlink, North-Western busway and rail to the airport

Investment is limited, particularly in the rstve years

2015/16 2019/20 Low cost version of integrated fare structure Very limited spending on roading and public

transport Waterview walking and cycling connection,

but no other new cycling projects City Rail Link enabling works Completion of current projects such as Albany

Highway

2020/21 2024/25 City Rail Link East West Connections Public transport improvements such as

Fanshawe St, Otahuhu and Manukaubus interchanges

No new park and rides or grade separation,and reduced investment in renewals andsafety programmes

2025/26 2044/45 Continued lower levels of asset renewals,

cycling and safety programmes Unclear whether or not strategic investmentssuch as Penlink and rail to the airport could bedelivered.

There are two options to fund the additional investment needed

Option 1 Option 2

Motorway user charge of around$2 per trip which would be free at

night and may vary by time of day

Key points to consider

More costly and complex toimplement and operate

Most people can changebehaviour to avoid or minimisecharges

Government support and newlegislation required.

Additional annual 1% ratesincrease and 1.2 cents per litre

fuel tax (each year for 9 yearsfrom 2016/17)

Key points to consider

Simpler and cheaper toimplement and operate

Requires government supportand legislative amendmentrequired for fuel tax

Provides little incentive fortransport users to change theirbehaviour to avoid charges.

Funded from the proposed 3.5% averagerates increase and existing central

government sources

$21.2

cents

3.5%+1%rates

3.5%rates

Options for Aucklands transport future


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The Auckland Plan Transport Network willenable:

a new network of more direct, more frequent busservices, providing faster connections to moredestinations. The new network will however meanmore customers need to make a transfer betweenservices to complete their journey

new bus/bus and bus/train interchange points acrossthe region, to make transferring from one service toanother easy

over 15 new Park and Rides 5 rail station upgrades and a new station at Paerata ferry wharf improvements bus lanes, provision for double decker buses and

interchanges in the city centre to reduce delays andbus congestion

enhanced safety programmes grade separation at high priority rail level crossings more school, workplace and community travel plans

which make the most of the improved transportoptions available

arterial and local road improvement projects creatingadditional capacity to cope with proposed growthand existing congestion.

We have worked constructively with the NewZealand Transport Agency in developing bothprogrammes.

Benets of the Auckland PlanTransport NetworkThe main benet of the Auckland Plan TransportNetwork will be faster travel times, bettertransport choices, improved safety and to bettersupport for Aucklands growth while improvingour liveability. It will help enable improved public

transport across the city through a connectednetwork.

Under the basic network, improvements to publictransport, motorways and important freight routesincluding the East West Connections projectkeep freight congestion similar to current levelsthroughout the decade.

However, with the Auckland Plan TransportNetwork, businesses will see a large improvementin their ability to move goods around the region.

By 2046 we will see improvements in key freightroutes by 15 to 30 per cent which will assistin region wide productivity improvements. SeeFigure 12.

Auckland Plan Network (motorway user charges)

Auckland Plan Network (rates and fuel tax)

Basic Network

Freighttraf

cspeed(km

)

40

45

50

55

60

20162006 2026 2036 2046

Figure 12: Freight trafc speed (AM peak)


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By 2046 trips across the city will be faster for both

private vehicles and public transport. A trip fromWestgate to the city centre will be 19 minutesfaster. See Table 4.

The access to employment improves signicantlywith the proportion of jobs accessible by a publictransport trip within 45 minutes improving by 5 percent and a 30 minute car ride by 5-10 per cent by2046 as shown in Figure 13.

By 2025, the Auckland Plan Transport Network

would have delivered 308 kilometres of newcycleways and shared cycling and walking paths.That is an extra 164 kilometres compared to thebasic network. That is more than double what youwould get in the basic network giving Aucklandersmore choices and improving the safety of cyclists.See Table 5.

With more renewal investment available, we willhave hardly any transport assets in a very poorcondition compared to the basic network which, by

2025, would see 18 per cent of our transport assetsin this condition. See Table 5.

And the Auckland Plan has positive environmentalimpacts.

Now, how would we pay for it?

Funding optionsA group of independent experts have worked out twoways Auckland could fund the Auckland Plan TransportNetwork: increases in fuel taxes of 1.2 cents per litre each year

and a new targeted rate that would increase overallaverage rates by around one per cent each year (inaddition to the proposed 3.5 per cent overall averageincrease in general rates for existing ratepayers).

A motorway user charge of around $2 each time

people enter Aucklands motorway system.For the motorway user charge, two pricing options areproposed: a at rate of $2 and a peak demand ratethat would vary by time of day. Each of these would bereduced on weekends, and be free for every night of theweek. The charges would be increased over time to keeppace with ination. Table 6provides further informationon these two pricing options.

Both options provide some demand managementbenets by encouraging motorists to avoid times of

heavy congestion.

Central government would have to support an annualfuel tax increase or motorway charge. A motorwayuser charge would need to go through a full legislativechange process, while a fuel tax increase would requireonly minor adjustments to legislation as part of regularparliamentary business.

It is important to note that under either funding option,to proceed with the Auckland Plan Transport Network

from 2015/2016 we may introduce an interim targetedrate until the new funding mechanism is in place. Thispossible interim targeted rate is discussed further on page45 of this document.

AM peak traveltime

AM peak travel time reliability

Pukekohe to City Private vehicle 9.4 minutes faster 38% of journey in congested conditions (vs 52% in basic)

Albany toWestgate Public transport

35.5 minutesfaster

1% of journey in congested conditions (vs 52% in basic)

Westgate to City Public transport19.3 minutes

faster 6% of journey in congested conditions (vs 16% in basic)

Airport to CityPrivate vehicle 2.9 minutes faster 54% of journey in congested conditions (vs 63% in basic)

Public transport11.7 minutes

faster0% of journey in congested conditions - due to airport rail

(vs 4% in basic)Silverdale to

City Private vehicle 3.1 minutes faster 32% of journey in congested conditions (vs 36% in basic)

Albany to City Private vehicle 3.4 minutes faster Not available

Manukau to City Private vehicle 5.0 minutes faster 55% of journey in congested conditions (versus 65% in basic)

Table 4: AM peak travel times across the city by 2046


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Basic Transport Network Auckland Plan Transport Network

Kilometres of new cycleways andshared paths built by 2025

144 kilometres 308 kilometres

Proportion of assets in very poorcondition by 2025

18% 0%

Table 5: Key performance measures for Basic and Auckland Plan Transport Networks

Auckland Plan Transport Network (motorway user charges)

Auckland Plan Transport Network(rates and fuel tax)

Basic Transport Network

Auckland Plan Transport Network

Basic Transport Network

within a 30 minute commutecar

within a 45 minute commutepublic transport

Figure 13: Proportion of jobs accessible for Aucklanders living within existing urban areas:

40%

45%

50%

55%

60%

65%

20162006

Accesstojobsb

ycar

2026 2036 2046

10%

15%

20%

25%

30%

35%

20162006

Accesstojobsbypublic

transport

2026 2036 2046

Option 2: Variable chargefor weekdays, with atrate on weekends / publicholidays and nights free

Weekdays Weekends /public holidays

shoulder6-7am

am peak7-9am

shoulder9-10am

inter-peak10am-3pm

off peak3-4pm

pm peak4-6pm

shoulder6-8pm

nights6am-7pm

nights

peak demand rate(per use in 2015$)

$2.00 $2.80 $2.00 $1.30 $2.00 $2.80 $2.00 free $1.30 free

NB: Compared with cars and motorcycles, heavy commercial vehicles are charged double. The prices shown are the discounted pricescharged to account holders, it is proposed that people are encouraged to get accounts which will attract a 15 per cent discount from thecasual user charge.

Option 1: Flat rate forweekdays and weekends/ public holidays withnights free

Weekdays Weekends / public holidays

6am-7pm nights 6am-7pm nights

at rate(per use in 2015$)

$2.00 free $1.00 free

Table 6: Two options proposed for motorway user charges


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Do you support the Basic Transport Network ordo you think we should invest more to get theAuckland Plan Transport Network that wouldaddress our transport problems?

If we decide to invest in the Auckland PlanTransport Network do you think Aucklanders

should pay for it through:A Annual fuel tax increases of 1.2 cents per

litre and an overall average annual ratesincrease of around one per cent each year(in addition to the proposed 3.5 per centoverall average general rates increase).

B A motorway user charge of around $2 eachtime people enter Aucklands motorwaysystem, which would be free at night andmay vary by time of day.

See question 2b on the feedback form.

Are there any specic projects or prioritiese.g. cycleways, improved public transportservices or more bus lanes, we should focuson delivering as part ofthe basic transportprogramme or the Auckland Plan TransportNetwork?

See question 2c on the feedback form.

Your feedback will also inform the Regional Land Transport PlanEvery three years Auckland Transport needs to prepare and consult on aRegional Land TransportPlan (RLTP)that outlines the priorities and projects for the region for the next 10 years. By providingfeedback on the transport issues set out in this document you will inform both the councils Long-term Plan 2015-2025 and Auckland Transports RLTP as the key issues are the same for both plans.

The draft RLTP sets out the proposed transport programme for Auckland and will form the basisfor the level of funding that Auckland Transport requests from the New Zealand Transport Agency

(NZTA). You can nd more information, including the draft RLTP at shapeauckland.co.nz as well as inlibraries and council service centres or by phoning 09 301 0101.
http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/aucklands10yrbudgetfeedbackform.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/aucklands10yrbudgetfeedbackform.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/aucklands10yrbudgetfeedbackform.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/aucklands10yrbudgetfeedbackform.aspxhttps://at.govt.nz/about-us/transport-plans-strategies/regional-land-transport-plan/https://at.govt.nz/about-us/transport-plans-strategies/regional-land-transport-plan/https://at.govt.nz/about-us/transport-plans-strategies/regional-land-transport-plan/https://at.govt.nz/about-us/transport-plans-strategies/regional-land-transport-plan/https://at.govt.nz/about-us/transport-plans-strategies/regional-land-transport-plan/https://at.govt.nz/about-us/transport-plans-strategies/regional-land-transport-plan/https://at.govt.nz/about-us/transport-plans-strategies/regional-land-transport-plan/http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/aucklands10yrbudgetfeedbackform.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/aucklands10yrbudgetfeedbackform.aspx


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Key issue 3:A more activedevelopment role for

council

Issue:Should Auckland Council take a more activerole in urban redevelopment to radicallyimprove the quality of urban living inAuckland?

Principal options:(a) Continue to focus on enabling growth

and development through planning andregulation and the provision of necessaryinfrastructure

(b) In addition, through a new developmentagency, play a more active role infacilitating development opportunitiesand explore opportunities to use councilland holdings as potential developmentsites

Auckland Council is proposing to take a more activerole in urban development.

Housing affordability, choice, and the quality ofhousing development are big issues for Auckland.These issues are particularly important given theforecast growth in Aucklands population.

We have determined that the achievement of aquality compact urban form would provide the bestway to accommodate Aucklands population growth,and also provide the best platform for increasedproductivity and economic growth. The Auckland Planassumes a high level of future housing being providedwithin redeveloped and intensied town centres. Thisapproach would make the best use of existing andcommitted infrastructure and the investment already

made by ratepayers to accommodate populationgrowth.

The councils current role is to provide the essentialinfrastructure of water, roads and services andfacilities people need to live and developers need tobuild houses. This includes parks and open space andfacilities such as libraries and community centres. Wealso have a planning role to make sure developmentcan occur to the right scale and cost in the right placeat the right time. The Proposed Auckland Unitary

Plan provides the rst Auckland wide resourcemanagement plan and is the planning rulebook thatsets out what can be built and where. It is essentialfor protecting what makes our city special, whileunlocking housing and economic growth and willfacilitate higher quality urban and rural development.

We will also continue to deliver on the AucklandHousing Accord, enabling developers to deliver avariety of housing, including affordable housingoptions, in Special Housing Areas.

However the council also has its own land and assetsthat could be better utilised to improve housingsupply and create opportunities for town centre andbusiness development. New Lynn (in the inner westof Auckland) is an example of how the council playedan active role in providing dramatically improvedtransport services, increased housing choices anda growing town centre with improved businessopportunities. Opportunities like these are the reason

Documents

Long Term Plan Consultation Document 2015