Volume Three: Financial information, policies and fees

About this volume

This is Volume Three of the five volumes that make up the Long-term Plan 2012-2022 (LTP).

This volume provides detailed financial and non-financial policies for the period 1 July 2012 to 30 June 2022 along with detailed financial statements for the Auckland Council, including statements by parent and group. It is divided into five parts:

  • Part I: Allocation of decision-making responsibility for non-regulatory activities
  • Part II: Financial statements
  • Part III: Financial policies
  • Part IV: Non-financial policies
  • Part V: Supplementary information.

Part I: Allocation of decision-making responsibility for non-regulatory activities

The governing body is required by legislation to allocate decision-making responsibility for the non-regulatory activities of Auckland Council to either the governing body or local boards. The allocation of non-regulatory decision-making responsibilities was reviewed as part of the development of the LTP.

Part I sets out the allocation of decision-making responsibility to the governing body and local boards from 1 July 2012.

Part II: Financial statements

This part contains the various prospective financial statements such as our financial position, comprehensive income, cash flow, changes in equity, funding impact, and various financial notes and assumptions.

Part III: Financial policies

This part sets out the financial policies. These financial policies include:

  • revenue and financing policy (including schedule of regulatory fees and charges)
  • rating policy
  • rates transition management policy
  • wastewater tariffs
  • contributions policy
  • local boards funding policy
  • rates remission and postponement policy
  • Māori freehold land rates remission and postponement policy
  • treasury management policy
  • Auckland airport shareholding policy
  • public private partnership policy.

Part IV: Non–financial policies

This part sets out the non-financial policies. These non-financial policies include:

  • significance policy.

Part V: Supplementary Information

This part contains a Statement from the Auditor-General.

Explanatory note: Basis of preparation of Long-term Plan and forecast financial information

The council is governed by the Local Government Act 2002 (LGA 2002) and the Local Government ( Auckland Council) Act 2009 (the 2009 Act). The LGA 2002 requires the council to prepare its Long-term Plan based on the activities and funding requirements of the Auckland Council as a separate parent entity. Given the significance and economic substance of activities provided through CCOs within the broader Auckland Council Group (for example Auckland Transport, Watercare Services), and the relevance and importance of information related to these activities for Auckland ratepayers, the council has decided to prepare its LTP, including the prospective financial statements and the prospective group of activities statements, on a full group basis. The council considers that full group information enhances the transparency of information about the cost of services provided to Auckland ratepayers and enables ratepayers to make more informed decisions about the impact of delivering on the Auckland Plan. The Long-term Plan for 2010-2020 was prepared on a parent-only basis.

The Auckland Council Group comprises the ultimate parent entity, being the Auckland Council, and its subsidiaries, associates and joint ventures. The basis for consolidation of group entities into the prospective financial information in the LTP is set out in the Statement of Significant Accounting Policies (Volume Three).

The forecast financial information has been prepared for the purposes of meeting council’s requirements under the LGA 2002, the 2009 Act and the Local Government (Auckland Transitional Provisions) Act 2010. This information may not be suitable for use in any other context. In accordance with the LGA 2002, the LTP financial statements are required to comply with New Zealand Generally Accepted Accounting Practice (NZ GAAP) and other requirements contained in the LGA 2002.

The forecast financial information has been prepared on the basis of the underlying assumptions considered reasonable and appropriate for the group. This includes an assumption regarding future price changes on the forecast financial information. All assumptions are based on the best information currently available to the council. Since the forecast financial information is for the period 1 July 2012 to 30 June 2022, actual results are not reflected. The actual results achieved for the period covered by this LTP are likely to vary from the information presented in this document, and these variations may be material.