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«AUCKLAND REGIONAL AMENITIES FUNDING BOARD Funding Plan 2012-2013 Table of Contents CHAIRMAN’S REPORT 3 INTRODUCTION 5 PROVISIONAL ALLOCATION OF ...»

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AUCKLAND REGIONAL AMENITIES

FUNDING BOARD

Funding Plan 2012-2013

Table of Contents

CHAIRMAN’S REPORT 3

INTRODUCTION 5

PROVISIONAL ALLOCATION OF GRANTS TO SPECIFIED AMENITIES 9

PROVISIONAL ALLOCATION OF GRANTS TO SPECIFIED AMENITIES 9

APPLICATIONS FOR FUNDING FOR JULY 2013 TO JUNE 2015 18 LEVELS OF FUNDING 19

AUCKLAND REGIONAL AMENITIES BOARD 25

APPENDIX A – APPLICATION INFORMATION 65

SUBMISSIONS ON THE 2012-2013 DRAFT FUNDING PLAN 78 CONTACT DETAILS 81 Auckland Regional Amenities Funding Board Funding Plan 2012-2013 Page 2 Chairman’s Report It is my pleasure to present the 2012-2013 Funding Plan on behalf of the Auckland Regional Amenities Funding Board.

This is the Funding Board’s third funding plan since the enactment of the legislation, although it represents the fourth distribution of grants to the 10 specified amenities.

The 10 specified amenities continue to make a significant contribution to the well being of the Auckland region, and towards making Auckland a vibrant and attractive place to live in and visit.

Having developed a robust methodology, the Funding Board considered the funding applications from the 10 specified amenities named in the Act; determined the provisional allocations to each amenity, and advised Regional Facilities Auckland (RFA) of the board’s decision.

The 2012-2013 Funding Plan shows the proposed amount of the levy to be collected from Auckland Council, and the provisional allocation of grants to be distributed to each of the 10 specified amenities by the Funding Board for the 2012-2013 financial year. It also provides information on how the provision of regional funding has impacted upon the activities of the amenities.

As per Part 1 section 3 of the Act, the prime focus of the 2012-2013 Funding Plan is to continue to support the specified amenities by providing adequate, sustainable and secure funding.

In its 2011-2012 Funding Plan the Funding Board identified that some of the funding requests signalled for future years were somewhat ambitious. It was the Funding Board’s view that the level of funding allocated in 2011–2012 to many of the amenities contributed significantly to fulfilling the obligations of the Act to provide adequate and sustainable funding; the board have taken this into consideration when assessing the applications and developing the funding plan for 2012-2013.

Once again, the Funding Board finds itself having to reiterate that message with regards to the levels of funding signalled for 2013–2014.

Auckland Regional Amenities Funding Board Funding Plan 2012-2013 Page 3 I would like to take this opportunity to thank all of my board colleagues, for their diligence and professional work during the development of the 2012-2013 Funding Plan. They have all approached their work for the Funding Board with a high degree of commitment and integrity. Individually and collectively, they bring with them a wealth of experience, skills and abilities that gives me confidence as Chair that the 2012-2013 Funding Plan is one that delivers adequate, secure and sustainable funding to the amenities within a fiscally responsible framework.

I would particularly like to acknowledge David Ross and Neil Reid, their terms expired on 13 October 2011. They both contributed significantly to the work of the Board since its inception. It is pleasing that Candis Craven, Penny Sefuiva and Moana Tamaariki-Pohe have been reappointed for a further term.

The Board welcomes new Directors Grant Lilly and Anita Killeen.

The Funding Board is also aware that the change in local government arrangements in 2010, in many people’s minds, suggests that the need for legislation that governs the Auckland Regional Amenities Funding Board, the Auckland War Memorial Museum and the Museum of Transport and Technology is no longer required.

The Funding Board is clear in its view that the legislation in respect of providing funding to the specified amenities remains pertinent until such time as other mechanisms which fulfil the spirit and principles of the current legislation might be deemed necessary and are in place. Until then the duties and obligations placed upon the Funding Board by the current legislation need to continue to be met.

The development of the 2012-2013 Funding Plan has taken place at the same time that the Auckland Council is settling into its new role in the region. The Funding Board is developing its relationship with the new local government framework and looks forward to ensuring that the transition impacts positively on the work of the Funding Board and the specified amenities.

Vern Walsh Chair April 2012 Auckland Regional Amenities Funding Board Funding Plan 2012-2013 Page 4 Introduction This funding plan, covering the period July 1st 2012 to June 30th 2013, is the third plan published by the Auckland Regional Amenities Funding Board (ARAFB).

Although the 2012-2013 Funding Plan represents the third year that ARAFB has assessed and recommended the distribution of grants to the specified amenities, it is the fourth year that grants have been distributed to the amenities. The ARAFB believes that the levels of funding indicated in this funding plan are in line with the key funding principles outlined in the Act, namely the provision of adequate, sustainable and secure funding for the specified amenities.





Background The ARAFB was established with the introduction of the Auckland Regional Amenities Funding Act 2008. The Act introduced a levy to be imposed on all of the territorial local authorities in the Auckland region. The levy is collected by the Funding Board then distributed to the 10 specified amenities named in the legislation. The purpose of the funding is to ensure the on-going sustainability of the organisations named in the Act who deliver arts, culture, recreational, heritage, rescue services and other facilities and services to the wider population of the Auckland region. All 10 amenities make significant contributions towards making Auckland a global city.

In the first year of application, the funding for each of the 10 specified amenities was set out in the Act. In the second and third years a maximum levy cap was specified in the legislation. In this fourth year, the maximum is also defined in the Act as no more than 2% of the rates collected by the Auckland Council in the previous financial year. In 2012-2013 the maximum levy cap is estimated at $25.998M. The Funding Board, whilst cognisant of that levy cap assesses each application on its merit and does not regard the maximum levy cap as either a target or a notional budget to work towards. The levy request being made by the Funding Board represents 53% of the potential levy amount permitted under the legislation. The additional levy requested for 2012-2013 equates to approximately $1 per rateable property in the Auckland region.

On a day to day basis, the ARAFB is not responsible for the governance of any of the entities named in the Act. The sole purpose of the Funding Board is to administer the provisions of the Act which primarily comprises determining the levy to be collected from Auckland Regional Amenities Funding Board Funding Plan 2012-2013 Page 5 Auckland Council, and then distributing the grants to the 10 specified amenities. Each of the specified amenities retains its own board of governance and management.

The introduction and operation of the Act is addressing the stability and sustainability of the 10 specified amenities.

The availability of regional funding via ARAFB for the specified amenities does not replace the requirement for the specified amenities to continue to raise funds from other sources.

The Funding Board is also becoming aware that in some cases, the ability for some of the amenities to access those resources is becoming more challenging given they are in receipt of funding via the Funding Board mechanism. There appears to be a developing perception from other funding agencies that the receipt of regional funding precludes those amenities from receiving support from elsewhere. The Funding Board is concerned at this development and will continue to liaise with those other funding agencies where appropriate.

The Funding Board is also aware that the general funding environment is proving to be challenge to all organisations, not just the 10 specified amenities. Challenges include, but are not limited to, the general economic situation and the impact of the Canterbury earthquake.

The provision of regional funding via the Act has enabled each of the 10 amenities to plan both strategically and operationally within a framework of some certainty with regard to a core level of funding. Since the introduction of regional funding, the amenities have been able to demonstrate to the Funding Board significant improvements both in regional reach and quality of services being delivered to residents of Auckland. On page 25 of this funding plan the Funding Board has included a report from the amenities themselves on what difference the availability of regional funding has made for those organisations.

The Funding Board recognises that there have been numerous other partner organisations involved in many aspects of the work that the amenities have highlighted in this report.

The nature of much of the work undertaken by the amenities is dependant upon developing and maintaining strong links with their partners to ensure consistent and sustainable service delivery.

Auckland Regional Amenities Funding Board Funding Plan 2012-2013 Page 6 Regional Facilities Auckland Prior to the Auckland local government reorganisation occurring, the main interface between ARAFB and the territorial authorities was via the Territorial Local Authorities Electoral College (Museums). Since November 1st 2010, that interface has been with Regional Facilities Auckland (RFA), as delegated by the Auckland Council. RFA is one of the Council Controlled Organisations that was established as part of Auckland’s local government reorganisation.

Under an advisory and management agreement between Auckland Council and RFA the responsibility for the provision of advisory services to the ARAFB became the responsibility of RFA. As part of this advisory service, the RFA communicated to the Funding Board in August 2011 that it wished to see any increase in the overall levy request take into account the identified level of inflation, i.e. 3.6%, and that any increases over and above that amount would need robust justification.

The Funding Board has taken cognisance of the aspirations of RFA / Auckland Council whilst developing this funding plan.

The board must act in accordance with the legislation and needs to fulfil its obligations to provide adequate and sustainable funding to the specified amenities. The Funding Board undertakes a thorough and comprehensive review of all applications received to ensure that the amount provided is justified and that the Board is fulfilling its legislative requirements.

The funding plan has been subject to a public consultation and hearings process. As a result of this process the Funding Board made amendments to the 2012-2013 Funding Plan.

Auckland Regional Amenities Funding Board Funding Plan 2012-2013 Page 7 Principles of the Act The funding principles are embodied in s.21 of the Act.

These principles are to be considered by the Funding Board and Auckland Council when assessing the funding applications and approving the total levy.

These principles are summarised below:

 the primary purpose of the funding is to contribute to the expenses that the specified amenity must incur to provide its facilities or services;

 funding is not available for capital expenditure;

 funding is not available for any part of facilities or services that the specified amenity provides outside the Auckland region;

 funding is not available for facilities or services that at any time in the five years immediately before the date on which the Funding Board or the Auckland Council applies this paragraph have been provided funding by a crown entity as defined in section 7 (1) of the Crown Entities Act 2004 o a department specified in Schedule 1 of the State Sector Act 1988;

o  the funding for the retention and preservation of a specified amenity’s library or collection takes priority over the amenity’s other expenses;

 funding is available only if the specified amenity has made all reasonable endeavours to maximise its funding from all other available sources;

 total funding for all specified amenities assessed for a financial year must not exceed the maximum total levy for that year under s.34;

 any other funding principle that the Auckland Council publicly notifies under s.21 (3);

 the Funding Board may recommend to the Auckland Council that it add funding principles to those contained in the Act;

 the Auckland Council may receive a recommendation from the Funding Board, and with or without a recommendation, may add further funding principles;

 the Auckland Council must give public notice of the added funding principles.

                                                                                                                                                         

–  –  –

The ARAFB undertook a rigorous examination of the applications made by the specified amenities and has made an allocation of grants for the 2012-2013 financial year.

The table below sets out the allocation of grants to each of the 10 specified amenities.

Following this table are comments from the Funding Board relating to the level of funding allocated. If appropriate, the comments also include any conditions placed on the grants or directions on how a portion of the grant is to be used by the amenity to ensure that particular matters raised in the funding application are provided or implemented.



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