EMERGENCY BUDGET 20/21

While it is an honour to chair Auckland Council’s Finance and Performance Committee, it’s certainly not an easy job even at the best of times. Over the past few months, it’s been particularly challenging as we reacted to Covid-19. Scoping up a second annual budget saw me chairing over 100 hours of meetings  and workshops with local boards, councillors, Independent Maori Statutory Board Members and CCO’s to reach a finalised Emergency Budget for 2020-2021.

When we began our original Annual Budget process late last year, council was in a pretty good place financially – we had more money from revenue than we had budgeted for. Comparatively, when New Zealand was able to get moving again following our lockdown period, we found ourselves in a markedly different financial landscape which led to an emergency financial response and an Emergency Budget.

As much as I was aware of the difficulties council faced – a $500million funding gap caused by lost revenue – I was also acutely aware of the financial difficulties many Aucklanders found themselves in. Jobs had been lost; businesses were struggling and across the city, families were struggling. How could we consider raising rates at a time like this? In my mind at this stage, I was firmly in the zero per cent rates rise camp.

However, as council’s finance team took me through the numbers, I began to appreciate the gravity of council’s predicament. Even with initial loss of approximately 600 staff, a savings target 12 times the size it was originally supposed to be, extra debt and deferred spending, there was no viable way for the organisation to continue delivering the essential services communities rely on and the services we are legally obliged to provide, with rates set at anything less than a 2.5 per cent.

Every member of the Finance and Performance Committee (that’s all councillors, two IMSB members and the mayor) came to the same realisation and unanimously supported to consult with communities on a lower 2.5% rates increase to the 3.5% originally suggested pre-Covid. The two options both required significantly different levels of cuts to our services as a result of our revenue loss.

It was clear from the 34, 915 submissions we received that Aucklanders understood the importance of our Emergency Budget and had a lot to say. Sadly, I think some were misled in believing a rates freeze was a tangible option. Looking at other growth councils throughout NZ, they appear to have come to the same conclusion. I’ll be covering their decisions in another update but so far Dunedin has gone for 4.1% rates increase and Wellington is considering as high as 5.1 % rates increase.

Feedback showed there was a real split between those who felt we should keep rates as low as possible, and those advocating for higher rates to protect the community services they love. The results indicated marginal public support (by only 1%) for the 2.5% option. Based on that feedback, I was sitting in the lower 2.5% camp.

But then two important things happened.

Local board feedback came through. All 21 local boards looked at the impact of the two rates options for their communities, analysed feedback and responses from those living in their respective board areas, deliberated and resolved in emergency public board meetings their advocacy position.

All 21 local boards representing the varied and diverse communities of Auckland supported the 3.5% option.

Then, the impacts of our drought situation came to a head. Auckland has been through the worst drought on record, a so-called one in two-hundred-year drought. With lake storage levels already over 20% lower than average, the MetService Office is predicting another dry spring and summer, making severe water restrictions more likely.

After we went out for consultation on the budget, the mayor secured further water supplies from the Waikato but the building of the necessary water treatment plants at Tuakau and Papakura unfortunately comes with a $239 million price tag.

This compounded with our original half a billion dollar loss of revenue would mean we needed to address approximately $700 million hole in our group budget.

When we looked at both rates increase options the difference between 2.5% and 3.5% was $24.62 for the average ratepayer. Yet the impacts were much greater both for local communities and for Auckland.

After pouring over the feedback we received from you; going through multiple scenarios with our  finance team; and thinking long and hard about the short and long-term impacts of this decision, I reluctantly realised that only under 3.5% would we be able to keep beloved services such as libraries, leisure centres and community halls; continue to maintain our parks and public spaces; retain the public transport concessions people rely on like our seniors super gold card; continue to invest in transport and stormwater infrastructure across the region AND solve our water crisis. In short, keep our city running.  

Groups like the Employers and Manufacturers Association also strongly supported 3.5% rates increase recognising that further cuts to the building of infrastructure would slow economic recovery and stand in the way of job growth.

To help ourselves, we are raising debt, deferring capital investment, reducing operational costs and selling off non-strategic assets. This budget raises our debt above our threshold, but we have discussed this with our credit rating agencies to reduce the potential for a credit rating downgrade which would cost us tens of millions more in interest payments. We have maintained as much infrastructure investment as we can to keep people in jobs and stimulate the economy but have deferred projects that can wait.

We have set a significantly higher savings target for this year (over 12 x higher than original budget), dropped our staff spend for the council parent by $26 million and have a committee specifically tasked to look at efficiencies and value for money across our organisation, which I chair. Our acting chief executive is restructuring our organisation saying it will be much leaner as a result. Our Council Controlled Organisations (except for Watercare who are coping with the drought) have also readjusted their budgets down by tens of millions in some cases hundreds of millions to help.

Yet with all that, we still needed to set rates with a 3.5% increase.

Am I happy with that decision? no. But I’m committed to make sure we recover as quickly as we can from the economic and financial impact of Covid-19 which will continue to be felt for some time.  

It felt like a dark day to have led councillors through a process that has increased rates at a time when people are hurting. However we made sure to include an extra rates remission policy especially targeted at assisting ratepayers who had been financially impacted by Covid-19. This new policy offers a deferment of rates for 12 months and is yet another option for rates assistance on top of our current rates postponement policy and our rates rebate scheme. I encourage everyone who is experiencing difficulties to contact council and learn more about these options.

Auckland desperately needs shovel-ready funding, and it needs it now

This opinion piece was originally published by The Spinoff.

As a country we can feel proud of our success in responding to Covid-19, a team of five million coming together to keep our communities safe. We are now in a unique position to recover from the pandemic swiftly, and the government has signaled it is focused on ensuring this happens.

However I question its lack of focus on Auckland, given our city’s pivotal role in the health and wellbeing of the nation’s economy.

As chair of Auckland Council’s Finance and Performance Committee, I am grappling with the devastation Covid-19 has delivered to our finances. We are now looking down the barrel of a $525m revenue hole. On top of this, we are also faced with a water crisis equally as financially challenging, to the tune of over $200m.

Auckland provides at least 38% of our national GDP. As a city, we are 1.6 million of the 5 million strong team – approximately 33% of this country’s population. Our economy provides around 890,000 jobs across multiple industries. It is in the government’s best interest to support us to protect these industries; these jobs; these people. Our people.

In March, the government announced plans to fund large “shovel ready” infrastructure projects to assist in an economic recovery, a package worth $3bn. The projects for consideration would need to be focused on water, transport, clean energy, and buildings and would also need to have a public or regional benefit, create jobs and be able to get underway quickly. In response, Auckland Council submitted 73 projects that met the outlined criteria in the hope that any committed funding would ease our financial predicament.

So far, there has only been one related announcement that Auckland would receive $500m of the fund with one Auckland City Mission project confirmed. With no other detail, we remain in the dark as to whether we will share in any of the funding allocated to the region.

Last month, I wrote to the prime minister personally. I asked for help in committing shovel ready funding to Auckland Council projects for financial year 2020/21. I asked that the appropriate ministers make an announcement on this funding for Auckland in time for us to consider the implications for our emergency budget.

With no response, I then co-signed another letter with Mayor Goff following a unanimous resolution by the mayor and councillors seeking to convey similar sentiments. We asked that the prime minister and government assist us by advising funding decisions by Friday 10 July, noting our emergency budget had to be agreed the following week.

That date has now been and gone and we have received no word from Wellington. It is hugely frustrating and disappointing that Auckland hasn’t been prioritised. In fact, as Auckland Council staff work day and night to provide us options to alleviate financial pressures, they do so without knowledge of any support from central government.

Given the government’s understanding of the challenges we face, I would have thought our very first call to action would be answered. With less than a week to go until we need to make our final budget decisions, their silence on this matter is bewildering.

So, if the government, in particular the prime minister is reading this, please take this as my final plea: Auckland deserves to receive investment through shovel ready funding for the 2020/21 year. And most importantly, we deserve it before our emergency budget is voted on.

Half-billion dollar hole in council's books

I am sure you will now be aware of the significant impact COVID-19 has had on the economy —globally and in New Zealand. In Auckland, the lockdowns, border closures, and restrictions on gatherings have had a devastating effect on local business and jobs.

Like others, Auckland Council has been severely affected, with the pandemic punching a half-billion-dollar hole in our annual revenue for next year.

Unlike many councils, Auckland Council gets most of its income (60 per cent) from sources other than rates. As a result of COVID-19, much of the money we would normally receive from facilities like the zoo, pools and recreation centres, public transport fares, Ports of Auckland revenue, dividends from the Airport, consenting fees and charges, and revenue from Watercare—has all but dried up.

We have prioritised support to individuals and businesses facing hardship in the wake of COVID-19. However, by proposing to extend our rates postponement scheme, we will see a further reduction in income for the upcoming year.

In response to this dire situation, we face the immense challenge of agreeing an Emergency Budget that allows us to maintain the essential services Aucklanders need, and build for the future.

This is not a situation of our own making, nor is it one of financial mismanagement. In fact, had we not been in such a strong financial position prior to this pandemic, things would be a lot worse.

So, what we are doing to help ourselves? Staff costs are large and as a result we are making cuts to address that. Around 1100 temporary and fixed term roles are being reviewed with more than 600 already let go, consultancy fees have been slashed and the mayor, councillors, executives, board members and senior staff have accepted voluntary pay reductions of up to 20 per cent.

Many have also asked me about cutting the high salaries within our CCO’s. Currently, the mayor and councillors cannot force CCO Boards to cut remuneration of CEO’s and top executives. Legally binding employment agreements are between each CCO Board and their CEOs or between the CEO and their staff.

That said, CCO’s are contributing a combined $50 million of savings for this budget, with more to come.

Council has also committed to a comprehensive review of our operating spend. This will see staff numbers further reduced, training budgets dramatically cut, and all other “nice to haves” effectively eliminated. We are targeting a record breaking $120 million dollars of savings next year. To put this in context, that’s twice as much as the direct costs of running all our libraries for a year.

Further to this, the Value for Money committee which I chair will identify another half a billion dollars of potential efficiencies over this political term.

However, these internal cuts won’t come close to filling the hole COVID-19 has left in our pocket.

This leaves us with a series of trade-offs across four areas: budget to maintain our buildings and employ staff known as operational spend, the money we use to invest in new infrastructure referred to as capital expenditure, the temporary leasing or permanent sale of assets, and temporarily increasing our reliance on borrowing money.

To find a balance, we propose to use all of these levers to ease our immediate financial burden. As a result, you may see a change in the opening hours of local facilities. We might need to delay infrastructure projects, like improving roading or stormwater assets, or suspend plans to upgrade town centres. We will also need to look at how we manage our assets and consider selling buildings we can’t afford to keep. But we will protect the essential services Aucklanders rely on.

I want to stress that no matter how effectively we use these four levers, we will struggle to get cash in the door. For those of you operating businesses, you will understand that without revenue, your ability to operate becomes difficult.

Essentially, the less cash we receive, the more cuts we will need to make. This is important when you consider the options in front of us.

Further details of these trade-offs are laid out in our Emergency Budget consultation document. Some of these options will seem drastic, but such measures are required to help us work our way out of this.

Getting through this won’t be easy but if we work together and make some of the tough calls now, we can recover stronger as a city. This is why it is so important you take part in the budget consultation. We want to hear from you; your ideas and suggestions, and we want to know what is most important to you and your community.

Consultation on Auckland Council’s Emergency Budget is open now and closes at midnight on Friday 19 June.

Please make your voice heard—visit akhaveyoursay.nz/emergency-budget to have your say.

CHEAPER PUBLIC TRANSPORT in JUNE

What is this about?

During June 2020 AT is introducing a special 30% off fare offer on buses and trains during off-peak periods.

Customers tagging on with their AT HOP cards after 9am and before 3pm will receive 30% off the normal adult AT HOP fare. The same applies for travel after 6pm until the end of service.

Students travelling with Tertiary Concessions will receive an additional 10% off their normal 20% concession.

This special offer is for June only and doesn’t apply on ferries or on Skybus services.

Background

Due to COVID-19, physical distancing on public transport means that we have limited capacity on all of our services. We have capacity issues on some popular train and bus routes during peak and we need to encourage customers to shift their travel times.

We know from research that many of our customers are now more willing to travel to work after the morning peak. This special offer will encourage our customers to make this change and, in doing so, spread loadings on our trains and buses.

This is a very special offer in response to COVID-19.

Newsletter 29 May

It’s been another great week for New Zealand in our fight to fully eliminate this virus – no new cases have been reported for 7 days and we currently have just 1 active case. This is great news, and a reflection on how well New Zealanders have handled the cautious transition back to ‘normal’ life.

Details of the financial predicament Auckland Council finds itself in as a result of COVID-19 and the lockdown period are now public. Like many of you, we continue to be adversely affected by the necessary public health restrictions and have an income gap of over half a billion dollars to find.

It’s pretty daunting however this week, the Mayor and my fellow Councillors,  finalised the details of Auckland Council’s first ever Emergency Budget which seeks to allow us to build for the future, maintain our essential services, and prudently make cuts to our spending. 

This is not a situation of our own making, nor is it one of financial mismanagement. In fact, had we not been in such a strong financial position prior to this pandemic, things could definitely have been a lot worse. A few months back, I committed our Value for Money committee to find half-a-billion dollars-worth of savings and efficiencies across council over the three-year term. Now, we are required to do this and so much more.

Many of you have asked, and rightly so, what we are doing to help ourselves.

 I understand the need for ratepayers to ask this of us and I believe we have made some very difficult but necessary decisions. For instance, 1100 temporary staff have lost their jobs, consultancy fees have been slashed and a comprehensive review of council’s operating model has begun. This review will see us lose staff to redundancies. Salaries have and will continue to be reduced on a voluntary basis, including the remuneration of elected members, executives, board members and staff from our Council Controlled Organisations, such as Auckland Transport. Training budgets will be drastically reduced, and all other discretionary spending will almost cease.

However, no matter how hard we go with internal cuts we still won’t come close to filling the hole left in our pocket. When you suddenly lose sixty per cent of your business, no single lever will help you recover.

We have some very difficult decisions to make. There is a very delicate balance of promoting economic recovery, supporting those experiencing hardship and ensuring we can continue to offer essential services across the region

The consultation period for this Emergency Budget opened today, Friday 29th May. This is where we need your help – we want to hear your views. The consultation document and supporting documents we approved this week are available online and provide further detail on what we are asking for feedback on.

As well as giving you the opportunity to submit feedback online, we will be holding a series of community webinars via Skype which I’d invite you all to participate in. The format will be a relaxed informal discussion involving the relevant Ward Councillors and subject matter experts. You can submit questions when you register or during the event itself. These will be moderated and put to elected members and subject matter experts by our MC for the evening.

The Central Auckland event is on Tuesday 9th June 6.30-8pm

The session on Rates Postponements is on Monday 8th June 6.30-8pm

The session on the Accommodation Provider Targeted Rate is on Tuesday 16th June 6.30-8pm

Further details and timings of all the events are available here.

I would urge you to take part and submit your feedback online. It’s so important that we get this right which is why we are asking communities across the Auckland region to let us know what is most important to them.

We know many challenges lie ahead of us. But we want to tackle them together, as a city unified. We came together to face the risk COVID-19 posed to the health of our loved ones. Now we must come together to face this resultant economic uncertainty.

As more and more people return to work, those who travel along Tamaki Drive particularly by bus or car will be impacted by the ongoing works on Tamaki Drive. I have received an update on the situation regarding the next stage of works- placement of the rig required to extend the width of the road on the causeway. This was initially going to be placed on Point Resolution Bridge itself but AT have now found that the bridge is unable to support the load. The option of placing the rig on a lane of traffic was not considered as this would require closing Tamaki Drive in one direction which would be unacceptable. Instead, the rig will operate from a barge in the sea.

Staff will be onsite full-time and will monitor traffic flows. They cannot guarantee two lanes in peak hours for the next few weeks. However there is flexibility to open a third lane if unacceptable traffic delays arise as a result of the works. A full update can be viewed here.

 On a more positive note, I’m sure you’re all looking forward to the Queen’s Birthday long weekend now that we’re able to get out and about with our friends and families.

The following is a list of things you can do here in Auckland this weekend at venues which have been able to re-open and some links to info on how you can visit them safely at Alert Level 2:

·         MOTAT – 50% off entry prices during level 2 - details here

·         Auckland Museum – currently hosting the World Wildlife Photographer of the Year Exhibition. The museum will be lit up at night to celebrate Vaiaso o le Gagana Samoa (Samoan Language Week)! Details here

·         Rainbow’s End is now open with reduced capacity under level 2 – details here.

·         Auckland Zoo is open but you MUST book online here

·         ASB Showgrounds are hosting a series of Drive-in Movies to give people the cinema experience from the safety of their own vehicles – showings here

·         The Maritime Museum is open – details here

·         Auckland Art Gallery will re-open its doors on Saturday 13th June. Until then, you can visit Te Uru Art Gallery in Titirangi

·         Pools and Leisure Centres – a list of which of council’s pools and leisure centres are able to re-open and when is available here

·         A list of which of council’s  libraries are able to re-open and when is available here

·         Playgrounds across the region are all now open!

Finally despite all this wet weather we’ve been having, staff at Watercare have advised that the levels in our reservoirs have only improved by a few percent over the last week. This means we all need to continue to play our part in conserving water: keep showers under 4 minutes, turn off taps when brushing your teeth, fully load up dishwashers and washing machines and remember not to use outdoor hoses or water-blasters.

Despite all that please, keep smiling and have a safe and relaxing  long weekend

Desley

11 May - Newsletter

Fingers crossed that the beginning of the end is finally in sight re our Covid-19 situation. Cabinet will make its decision TODAY  as to when exactly we can safely move to Alert Level 2.

It's encouraging to hear that the essence of level 2 is to get the economy back in full swing, as many people back to work as possible and to ensure we do this safely. I know many of you will feel similarly comforted to see our local businesses re-open. There is a strong ‘shop local’ campaign going in our neighbourhood which like many of you, I’m strongly supporting.

Key things to remember at Alert Level 2 (further details can be found here)

·         Continue to wash your hands, and high touch surfaces, thoroughly & frequently.

·         Our borders will remain closed except to returning Kiwis who will continue to spend 14 days in quarantine.

·         You can begin to see close friends and family beyond your bubble but continue to reduce close contact with strangers - continue to keep at least 2 metres between you and strangers.

·         We are advised not to meet in large groups. But we may honour events such as funerals and weddings with a maximum of 100 guests, whether inside or outside.

·         We can travel elsewhere in New Zealand for work, business or to visit close friends & family.

·         Businesses can re-open if they can do so safely. Retail stores will limit numbers of shoppers and will insist on physical distancing. Services such as hairdressers will re-open ensuring appropriate hygiene measures and staff have appropriate PPE. Working from home is recommended if it's an option - the fewer people in workplaces the better.

·         All educational facilities will re-open the following Monday, but distance learning is still recommended if possible. 

Having Your Say….

A consultation period opened this week on two local transport proposals. The first is for a new pedestrian island and footpath outside 165 Abbots Way, Remuera. Ōrākei Local Board and Auckland Transport are proposing to install a new raised pedestrian island and footpath to create safer access to the upgraded Waiatarua Reserve entrance on Abbots Way. Local residents and businesses will receive this information by post and the details and the online feedback form can be found here. Please submit your feedback by Monday 18th May - this is an important opportunity to ensure local views are taken into account.

The second consultation is for a new zebra crossing at 129 Portland Road in Remuera. The new raised zebra crossing is expected to improve road safety for our walking school busses and others walking in the area by slowing approaching traffic and assisting the crossing of Portland Rd. As above letters will be delivered to locals affected by the proposal but as above Portland Rd is used by many outside of the immediate neighbours. For those of you wanting to have your say, please see the Auckland Transport information here. Feedback opened on 8 May and closes on 22 May. Your views matter and are vital to making sure things are done right.

More generally we have some good news re recycling. Our paper and cardboard recycling process resumed as normal at the start of May as we have successfully secured an overseas market for mixed paper and cardboard materials. For those of us who try to do our best in terms of recycling, it was really frustrating when the virus temporarily impacted our ability to send paper recycling overseas to be processed. I'm glad we've found a solution.

In terms of plastics, please still continue to put these in your recycling bin as usual, and we will recycle everything we can. The types of plastics which make up the bulk of kerbside recycling (77%) are able to be recycled. These are primarily drink bottles, containers and takeaway boxes. Unfortunately, we are currently sending some other mixed plastics to landfill while the markets continue to be affected be the pandemic. Rest assured we will get things back on track as soon as we can.

 I'm also happy to share that many of our big projects which had to be halted under Alert Level 4 are now back underway. These include the City Rail Link and the road raising project on the Tamaki Drive causeway.  You may be interested to read that the return to business and construction under alert level 3 created a noticeable increase in the seismic readings of the city, having previously decrease during the month we spent at alert level 4. As well as detecting earthquakes and potential volcanic eruptions, these readings pick up the daily hum of city life - traffic, construction and the hustle & bustle of people moving around. A sign that our city is coming back to life and waking up from ‘hibernation’.

I’m sure like me you are enjoying getting out and about in the fine weather. Despite the short burst of heavy rain over the weekend, our reservoir storage levels are still worrying low following one Auckland's most severe Summer droughts. On Thursday this week, council's emergency committee approved mandatory Stage 1 water use restrictions which will come into effect from Saturday 16th May. Until then, restricting our water usage is voluntary, but I would strongly urge you to use water sparingly in the hopes that we can prevent a need to impose further restrictions.

I want to emphasise though, that this does not affect the use of water for drinking or health and safety reasons. For households, it means not using hoses or water blasters. For businesses, hoses and water blasters are prohibited except when used for health, safety, emergency or biosecurity reasons; car washes can only operate using recycled water; and only those sports fields with irrigation systems, soil moisture sensors can operate. Further advice about reducing our water usage can be found here.

 Sticking with the important topic of water, I'd like to touch on the situation regarding water quality in Hobson Bay. I'm very keen to get this sorted, and fast - it's unacceptable to me that this beautiful area is currently a health risk.  Unfortunately, the message from our staff at Healthy Waters and Watercare is that the poor water quality is due to network issues such as historic, combined wastewater and stormwater infrastructure. Addressing this will require significant investment in infrastructure improvements. Work has started on the repairs though. Staff are looking into long-term infrastructure solutions and have carried out extensive dry weather water quality testing in Newmarket Stream and adjacent streams that flow into Hobson Bay. Investigations are now underway to identify network faults such as dry weather blockages in the wastewater network, incorrectly plumbed wastewater (including illegal private cross connections) and broken drainage infrastructure all of which are contributing to the problem. I will continue to keep you updated as these investigations progress and a plan to fix this is put in place. The water quality should never have been allowed to get this bad and staff are very clear as to my direction to address improvements with urgency. I’m sure you are aware the next nearest safe swimming sites are at Judges Bay and Ōkahu Bay, neither of which are at risk from this contamination and remember you can always check Safeswim page for real time data on water quality at our beaches.

 I’ve talked in previous newsletters about record keeping of our time in lockdown during COVID-19 and what the next generations will potentially learn about the year 2020 and the Covid-19 situation. Auckland Museum are looking to capture this moment in time by collating objects, photographs and documents representing of a wide range of Aucklander's experiences of the pandemic. The idea is to capture the ways in which COVID-19 has impacted all of us and to illustrate what life is like in lockdown; how we are connecting and creating community while in a state of quarantine; issues we are debating; personal protective equipment and how we are protecting ourselves; creativity while in lockdown and the like

If you or your children would like to be part of this cool project, further details and the form to submit your entry, can be found on the museum's web page.

 Please continue to stay safe, look out for each other and reach out if you are struggling.

We have all experienced difficulty on some level in these last few months, but we're almost there.

Thanks to each and every one of you for the part you are playing.

Desley

1 May - Newsletter

Over the last week, it's been so lovely to see and hear, our city begin to come back to life. I've really enjoyed being able to start my day with a perfect, barista-made, flat white  ( while social distancing of course) and our house has already started ordering food from some of our local restaurants ( I’m a bit over cooking every night let me tell you)

However, it’s important that we don't consider our time at alert level 3 as 'back to normal' . Whilst it's great to see many businesses able to re-open and begin to breathe life back into the economy, we must ensure this is done safely and keep contact to a minimum. Our Environmental Health Team have been supporting cafes and restaurants to safely re-open - businesses are required to have in place a COVID-19 safety plan that sets out how they will operate under level 3 to ensure the safety of both staff and the public. Please remember  when supporting local establishments, you continue practicing social distancing.

Following days of so few new COVID-19 cases, I can understand the temptation to look for loopholes or ways you can begin to socialise outside your bubble. But we must not let our guard down. I know it's difficult - I am really struggling with missing my own grandchildren. But if we become complacent, we risk allowing a second wave of cases and our sacrifices will have been for nothing. We have come so far together, let's see this through.

Noticed more cars on the road? I have,  but remember we should still only be driving if we need to.

Please be mindful that over the last month people, especially small children, have grown accustomed to the streets being almost empty. Now more than ever is a time to keep an extra look out for those on foot, bikes and scooters. Public transport will continue to be free during alert level 3, but again please only use buses and trains if you need to travel.

I can tell you its a tough time to be  chair of the Finance and Performance Committee.  To help you understand how tough, I will be sharing details of some of the challenges council is facing during these tight financial times. I hope to reassure Aucklanders that we are considering everything, and everyone, in preparation for what will be some difficult decisions for our next budget. This includes explaining the measures we are taking to cut our own costs to manage the financial impact of Covid-19.

This week, I focussed on action to support Aucklanders experiencing financial hardship in terms of how we approach the final rates payment of this year. Guidance on how you can request to defer your May payment will be included in your next rates notice, as well as information on assistance schemes you could be eligible for that are designed to help those in need. The full  article  published today in the Herald was under a paywall but another version can be found on OurAuckland.

 Let's continue supporting each other; taking time out for our own mental health; supporting local businesses, following the rules and getting through this together.

ANZAC Newsletter

The end of Alert Level 4 Lockdown is in sight.

Following the long weekend, at 11.59pm on Monday 27th April New Zealand is moving down to Alert Level 3. It's only because the vast majority of New Zealanders stayed home and stuck to the rules that this is able to happen, so well done!

Initially, NZ will operate at Level 3 for a two week period. Cabinet will continue to monitor the situation and make a further decision on Monday 11th May as to whether we are able to progress to Level 2. Again, this is entirely contingent on us continuing to follow the rules and keep ourselves, and each other, safe. Here's a quick reminder of those rules for life at Level 3.

The Golden Rules for life at Alert Level 3

·         Stay home. If you are not at work, school, exercising or getting essentials then you must be at home, the same as at Alert Level 4.

·         Work and learn from home if you can. We still want the vast majority of people working from home, and children and young people learning from home. At-risk students and staff should also stay at home, and they will be supported to do so. Early learning centres and schools will physically be open for up to Year 10 for families that need them.

·         Make your business COVID-19 safe. COVID-19 has spread in workplaces, so the quid pro quo of being able to open, is to do business  in such a way that doesn’t spread the virus.

·         Stay regional. You can exercise at parks or beaches within your region, but the closer to home the better. Activities must be safe – keep 2 metres away from anybody not in your bubble. Make minimal trips.

·         Keep your bubble as small as possible. If you need to, you can expand your bubble a small amount to bring in close family, isolated people or caregivers ( a secret yeah from me as this means I can now see my grandchildren)

·         Wash your hands often with soap. Then dry them. Cough and sneeze into your elbow.

·         If you are sick, stay at home and quickly seek advice from your GP or Healthline about getting a test. There is no stigma to COVID-19. We will only be successful if everyone is willing to play their part in finding it wherever it is.

The Golden Rules for businesses at Alert Level 3

·         If your business requires close physical contact it can’t operate.

·         Your staff should work from home if they can.

·         Customers cannot come onto your premises. Unless you are a supermarket, dairy, petrol station, pharmacy or permitted health service.

·         Your business must be contactless. Your customers can pay online, over the phone or in a contactless way. Delivery or pick-up must also be contactless.

·         Basic hygiene measures must be maintained. Physical distancing, hand washing and regularly cleaning surfaces. Workers must stay home if they are sick.

·         If you used PPE in your business before COVID-19, then keep using it in the same way. If you didn’t use PPE in your business before COVID-19, you don’t need it now. This is advice for retailers, manufacturers and the service industries. Different advice applies to essential healthcare workers, border agencies, courts and tribunal staff, first responders and corrections staff.

·         Visit health.govt.nz for more advice

·         You must meet all other health and safety obligations.

I'm very conscious of the extent to which local business owners, especially small businesses have been adversely affected by the lockdown and look forward to the opportunity for some of them to re-open under level 3. While we are still unable to go out to eat, many cafes and restaurants will be serving food on a pick-up or delivery basis.

I would urge you to think carefully about where you choose to order takeaways from. It might be tempting to order from the big international chains, but for family-owned local businesses, your support right now is vital to their survival. Think about which independent businesses in your neighbourhood you would be sad to lose and check their website or social media pages to find out if they are offering takeaways at level 3. Collecting your meals in person or using restaurants' in-house delivery option (rather than going through a third party) means maximum profits will go to that business.

Although, some of those third party apps for ordering food are better than others - Eat Local NZ (www.eatlocalNZ.com) is a Kiwi start-up created specifically in response to the current situation. Its mission is to help local businesses get back on their feet by taking a cut of 5% rather than 35% like some larger, international food delivery companies. After entering your location, it will list the options for ordering food for collection or delivery in your neighbourhood.  

ANZAC Day parades and services - in particular the Dawn Service at the Cenotaph - are an important tradition and an opportunity for Aucklanders to gather; commemorate; acknowledge and reflect. Like so many other public events, it's not currently possible to hold these important events safely and, for the first time in our history they have been cancelled. I know many of you are used to attending the St Heliers Service by the flagpole, the RSA Orakei service or one located in our sports venues such as the long standing College Rifles event.  The way we commemorate will feel different this year, but the sentiment will be the same. Below are some of the ways we can show are respect to those fallen, while adhering to social distancing guidelines and keeping our families safe.

Stand At Dawn

At 6am on Anzac Day, Saturday 25 April, a virtual service will be broadcast on Radio NZ National, bringing New Zealanders elements of a traditional Anzac Day service including The Last Post. The advice, as ever, is to remain in your bubbles and mark this moment from your doorways, windows, balconies or front porches - 'Stand together, apart'. More details can be found on the RSA website.

Teddies wear poppies this Anzac Day

Children can be involved by giving the bears in their windows their very own poppy to wear. This provides an opportunity to talk to your children about the symbolism of the poppy and the significance of this day for New Zealand. You can download a poppy-making stencil here and then share a photo of your Anzac bear in the window on Instagram: #AnzacBearAKL.

Landmarks light up to commemorate our heroes

Vector Lights will shine poppy-red on the east side of Auckland Harbour Bridge (city facing) from 7.30pm to midnight from Tuesday 21 to Saturday 25 April to commemorate Anzac Day. Te Ara I Whiti – The Lightpath will also light up on those evenings. Auckland War Memorial Museum will shine in a uniform display of red light from dusk on Friday 24 April until dawn on Sunday 26 April as a commemorative tribute to this important day.

And, all four landmarks – the east side of the bridge, Lightpath, museum and SkyTower – will light up in unison from 3am to 7am on Saturday 25 April, ushering in the dawn on Anzac Day.

Commemorating Anzac Day at home

Auckland War Memorial Museum Tāmaki Paenga Hira will commemorate Anzac Day in 2020, albeit in a different way.

While the museum remains closed to the public, The Last Post still plays daily prior to 5pm and the flags are raised at dawn and lowered at dusk. In absence of a physical gathering, the museum’s Online Cenotaph will be a place for people to come together, lay a virtual poppy and leave messages for loved ones who have served, as well as read stories about returned service people. Our Auckland Museum at Home online hub also has a special Anzac Day page with articles, activities and videos suitable for all ages to learn and participate in Anzac Day commemoration traditions including a great recipe for ANZAC biscuits.

Remuera Heritage has a wonderful digital exhibition keeping the Anzac spirit alive through online storytelling. Their website has over 140 stories of Remuera men and women who served and died in WW1. They went to our local schools, lived in our streets and would all have known each other and been well known in the Remuera community. They were mainly in their early 20s when they died.

St Heliers Business Association have a short ANZAC acknowledgement on their facebook page here

 https://www.facebook.com/StHeliers/videos/1109545379422024/   and the St Heliers/Glendowie Scouts who have had a longstanding role in organising the St Heliers Service have created a virtual service which can be found here  https://bit.ly/ANZACDAY2020  

Finally, as our drought continues, please continue to use water sparingly. Our reservoirs are currently at 46% with not much rain expected in the rest of this month. Fortunately, rain is forecast for May, but until then let's continue to use the water we need, and leave car-washing, watering the grass, and long showers until after our supply returns to a healthier level. Watercare have said that voluntary water reductions are working well - let's keep it that way so we don't have to impose restrictions.

Enjoy another relaxing long weekend spending time with your families and reflecting on the strength and resilience of New Zealanders, past and present.

Lest we forget

Desley

Email Newsletter - 17/04/20

With another week of lockdown completed, the vast majority of New Zealanders have continued to abide by the rules. As a result, we've again seen the numbers of new cases dropping and numbers of recovered cases rising. I am also aware that many are struggling: with isolation; with the pressures of childcare on top of work; with concerns about vulnerable friends and family; and with financial difficulties. This crisis is having an impact on all of us, albeit in different ways. As every day goes by, and uncertainty around when Alert 4 will end, it is more important than ever to look after ourselves and others.

Something you may find useful is a recently released new mental health toolkit called Getting Through Together (www.allright.org.nz) This offers practical mental health advice and support during COVID-19. It includes tips for managing our day-today wellbeing, tools to help parents talk with their primary-school-aged children about mental health and wellbeing and some resources for anyone who feels they are not coping and would like support.

Please remember there is no shame in saying 'I'm not ok'.

As we witness the inevitable economic impact of our country effectively shutting down for several weeks, I can understand why many of you, especially business owners, are anxious to get things up and running again and get back to 'normal' as soon as possible. This is a very valid response and I’m sure we are all hopeful Cabinet will make the right decision on Monday April 20

But what will it look like when we do move down to Alert Level 3?

While the goal will remain to restrict contact with each other as much as possible, there will be some changes to what we will be able to do safely. These include:

·         For the most part keep to your bubble, but you may extend your bubble safely and by a small amount, for example, to bring an elderly relative into it.

·         Schools will re-open on a voluntary basis for children up to year 10. The advice is that if children can continue to learn at home during Level 3, they should. Those in years 11-13, and tertiary students, will continue to study via distance learning.

·         Some businesses can re-open if they can ensure there will be one metre between workers, records kept of who is working together, limited interaction between groups of workers and high hygiene standards maintained. If employees are able to work from home, they should continue to do so under Level 3.

·         Bars, restaurants and most non-essential retail will remain closed, but takeaways will re-open for deliveries.

·         A move from ‘keep it local’ to keep it ‘regional’ but keep a record of where you’ve been. This means we can travel around the Auckland region if we need to, but we still should not be travelling to second homes or visiting family elsewhere.

·         Restrictions on gatherings outside of your bubble remain, except for funerals, tangihanga, and wedding ceremonies, where up to 10 people are allowed to come together for a service.

·         In terms of recreation, it will be possible to swim/surf but only at your local beach; to tramp or mountain bike on easy trails you know well; and to fish from a wharf or the shore. We must continue to keep a safe distance from others and not share equipment with anyone outside our bubble.

Countdown stores nationwide have extended their opening hours to 8am-8pm and removed limits on how many of a product we can purchase. Please continue to be mindful of others and resist the urge to stock-pile - the last few weeks have shown that this country is capable of keeping our shelves stocked. All supermarket deliveries are fully contactless, to protect both you and delivery staff.

Now for some positive news - Parnell Cricket Club has just been named as Auckland's Cricket Club of the year for the first time in 27 years! The Simmonds and Osborne Trophy is awarded based on on-field performances across the male, female, senior and junior branches of the club. A great achievement for players and everyone involved with the club.  Congratulations Parnell Cricket Club!

 To keep older kids occupied this weekend Silky Otter Cinemas (located at Orakei Bay Village) have come up with a novel idea. They are holding a Lockdown Competition. The task is to recreate your favourite movie trailer or scene from a film with those in your bubble. Upload your entry via the website or tag @silkyottercinemas on Instagram/Facebook and the best entry each week will win a $50 cinema voucher.

For younger children aged 5-11, there's an opportunity to make your mark on an exciting new piece of Auckland infrastructure - the City Rail Link! Kids are being asked to imagine where they'd like to travel by train and capture it in a drawing or painting. The only stipulation is they must be square so that they will fit onto the ceramic tiles which will decorate the inside of Aotea Station. Use your imaginations, get creative, email a scan or photo of your images to art@cityraillink.govt.nz to be part of Auckland's history! More info can be found in this YouTube video

And now for a whole family activity - the Eastern Bays Songbird Project's bird count is taking place between 18th of April and 1st of May. Anyone can take part - it only takes 5 minutes. Collecting data like this is an important way to monitor if our projects to bring back the native birds are working! The bird ID guide, instruction sheet and recording form can be downloaded from https://songbird.org.nz/web/get-involved

Finally, I'd like to pay tribute to our current Chief Executive Stephen Town who announced earlier this year that he will be stepping down from his role on June 25th. Stephen’s experience and expertise have led Auckland through a period of growth and change in his 6 years as council’s CE.

We are actively recruiting for this role with expressions of interest still being received until the end of the month. If you know any candidates suitable to lead Auckland Council into its next ten years of operation, please get them to contact Penelope Peebles at Caldwell NZ for more information

https://www.caldwellpartners.com/about-us/top-executive-recruiters-consultants/penelope-peebles/

 Wishing you all a relaxing weekend - I hope you find things to keep you busy

Kind regards

Desley

COVID-19 Where council is at, as of today 17/04/20

·         We feel acutely the struggle many Auckland households and businesses are facing.

·         Councillors were unanimous yesterday that the council needs to take decisive steps to reduce the pressure on residents and businesses facing economic hardship, while ensuring we can protect and maintain the essential services Aucklanders rely on

·         Many of the sources of revenue council relies on to fund our services have reduced substantially because of COVID-19, and this will have an impact on what we can provide in the future.

·         In the coming weeks we will be asking Aucklanders for feedback on the council’s proposed emergency budget for the coming financial year- 1 July 2020 to 30 June 2021.

·         With the challenges we are facing, this will not be a business as usual budget.

·         Spending on some activities will need to be reduced in the future, as we work to manage the financial impact of the COVID-19 crisis.

·         As part of the public consultation on the emergency budget, Aucklanders will be asked if they support options for:

o   Either a 2.5 per cent or 3.5 per cent rate rises, including information on the potential impact of both those options on our services and finances; we will also explain the impact that no rates rise would be likely to have

o   More help for businesses experiencing financial hardship and struggling to pay rates

o   Suspending the Accommodation Provider Targeted Rate, and the activities it would fund, until 31 March 2021.

·         Today we also announced some steps to offer more help to ratepayers and business who may be struggling to pay their rates in the financial year to 30 June – anyone who is facing difficulty can contact council on 09 3010101.

Council is still making people pay rates. Why?

Council is still open for business providing essential and key services across the region – and there are costs attached to that.

Around 40 per cent of our income comes from rates while the other 60 per cent comes from non-rates revenue like dividends, public transport fares, parking revenue, processing consents, income from running events and facilities and development contributions. These incomes are, and will continue to be for some time, impacted by COVID-19.

But people are saying they can’t pay?

We are very aware of the financial hardship that many people are facing and for those people, we have assistance schemes in place and we will do everything we can to help them get through this financial year. Rates notices will be sent out at the start of May giving details of how people can defer payment until the end of August. In addition, Council will explore relief options for the next financial year, starting 1 July 2020, to see how we can best target relief to those truly in need.

Why are decisions about rates being made behind closed doors?

Auckland Council’s bonds are listed on the New Zealand Exchange (NZX) as well as other overseas exchanges. This means that when we are discussing or making decisions that are likely to have a significant financial impact, or differ materially from previously published financial information, listing regulations require complete confidentiality until details have been disclosed openly and consistently to all interested parties via the NZX.  Rates were part of these discussions so details could not be made public until after NZX disclosure.

Now that has been done, proposals on how we approach rates in the next financial year will be going out for public consultation in the next few weeks so we urge people to have their say and help shape our future at that time.

Why can’t council cut rates and just borrow more money?

The council has entered this situation from a strong financial position for the first half of the year. However, we are already facing a big drop in revenue.  Like any borrower, our income determines how much we can borrow and the interest rates we are charged.

Auckland Council ‘s credit rating is second only to the Government which in very basic terms means that we are seen as an attractive borrower who carries less risk. At a time of uncertainty in global financial markets, it is imperative we do everything we can to keep ourselves in that position.  We also need to maintain a debt to revenue ratio that allows us to invest in capital projects and infrastructure that the city needs, and which will be vital for our economic recovery. In very simple terms we are already reaching the limits of what we can borrow and cutting rates and instead borrowing more will negatively affect both sides of this ratio – i.e. it will both reduce revenue and increase debt.

Why is COVID affecting the council’s finances?

The money we get from a number of different sources has reduced due to COVID, for example public transport fares, parking revenue, processing consents, income from running events, etc.  While we are working to offset this by reducing the amount we spend in areas that aren’t essential services we will face some new costs as we work to support the government’s response. For example, helping to deliver welfare services or supporting repatriation and quarantine processes.

What is council doing to cut costs?

As part of plans to cautiously and prudently manage the financial impact, we are already taking steps to:

o   reduce spending on external contracts and contract staff in non-essential services

o   suspend non-essential work such as non-essential asset maintenance, fleet servicing, and internal business improvement projects

o   suspend recruitment of permanent staff until further notice

o   redeploy under-utilised permanent staff into roles currently filled by contingent workers.

In addition, the council already has a Value for Money programme and an efficiency savings target built into each year of the long-term plan.

What is happening with the Annual Budget that has already been consulted on?

The Annual Budget consultation process took place before the current Covid-19 situation and a huge amount has changed in the few short weeks since then.  The financial landscape has changed, almost beyond comprehension, and as a result, we have asked council officers to present a budget that reflects the world we now live in.  The new budget proposals will be going out for consultation in the coming weeks. Any feedback submitted as part of the previous consultation will also be considered and reported to councillors.