LONG TERM Let’s talk Kia korero PLAN 2021/31 Contents 2 Message from the Mayor 3 Living & Working in Clutha Update 4 Investing in Infrastructure 7 A Better Water Source? 8 Keeping Rates Down 9 Rates Examples 10 Our Finances 12 Milton’s Makeover Our Place 13 But Wait There’s More 14 Audit Report 15 Have Your Say Clutha District

1 LONG TERM Let’s talk Kia korero PLAN 2021/31 YOUR COUNCILLORS MAYOR’S MESSAGE Kia ora koutou katoa Thank you for taking the time to consider what we’re proposing in this triennium’s defining strategic document, the Long-Term Plan 2021/31. Stewart Cowie Ken Payne We appreciate your assistance in getting the balance right for the Clutha Valley Ward Balclutha Ward Clutha District. Along with outlining Council’s intentions for the next 10 years, we believe this document portrays our collective determination to remain positive, be proactive, and reflect the ever-increasing aspirations of our District while always striving for rates affordability. Mayor Maintaining 1.1 billion dollars of assets demands a breadth to Council’s Bryan Cadogan Bruce Graham Bruce Vollweiler Kaitangata-Matua Bruce Ward focus. Quite rightly our ratepayers’ expectations are that facilities like Ward halls and swimming pools are given appropriate attention just like the traditional ‘core services’. We also have the ever-increasing demands from Central Government on issues like improving our environmental footprint, and climate change. Our proposed plan must respond to the social, economic, Carol Sutherland environmental and cultural challenges we face, along with enhancing Wayne Felts Balclutha Ward Balclutha Ward the unique advantages our district possesses. A lack of housing, running in tandem with filling the wealth of jobs we have on offer, are two key economic inhibitors that must be confronted. Our Council is in a strong financial position, with investment returns having the potential to fund growth projects while not encumbering ratepayers. We have also, by default, been required to take on the mantle of developing. Not to do so would have undoubtedly Dane Catherwood Alison Ludemann Catlins Ward Balclutha Ward consigned our district to further retrenchment of services and stagnation of potential. But, as the market evolves so too must our tactical approach, and your thoughts on this approach would be appreciated. We have shown the courage to identify issues, seek and find solutions, and then devise a way forward with consensus from the majority. This document clearly shows that we intend to continue in this manner. It Gaynor Finch Jo-anne Thompson Bruce Ward Clinton Ward is imperative that we all continue to strive to make the Clutha District a great place to live, work and play, and it is with a view to this bigger picture that I am sure you will consider the options presented. These are exciting times for our district. We are entering a ‘delivery period’ on many Council projects, but we cannot make decisions in isolation from world events. Consequently there is the need for extra Mel Foster Selwyn Wilkinson vigour and scrutiny from us all as we plan our future. I encourage you Lawrence/Tuapeka Ward Bruce Ward all to take an active role in this process and thank you for caring about your district’s future. Nga mihi

Sharing our plans for the Clutha District. Tell us what you think. Every three years we update the Long Term Plan (LTP) which sets the direction John Herbert West Otago Ward we’re heading in for the next 10 years. The LTP describes our proposed activities across the district and outlines how the activities will be managed, delivered and funded. This document is where we share with you what we are thinking, we ask for your opinion on some key decisions, and we provide a breakdown of the expected rates impact of these decisions.

2 LIVING &WORKING Let’s talk Kia korero IN CLUTHA UPDATE

Living & Working in the Clutha District Our Living & Working in Clutha Strategy is one of our key guiding documents. In this Long Term Plan we’ve given it a refresh to explain how we’re intending to promote the well-being of the Clutha District’s communities. It focuses on priorities we think have a crucial part to play.

OUR STORY SO FAR WHAT ARE OUR PRIORITIES? In recent years we’ve had a focus on promoting growth in our district. A Facilitating More Quality Housing Improving Health, Safety & Well-Being Supporting Culture & Heritage range of projects and initiatives have Clutha District’s housing market is under Our communities are known for being We’re looking to more actively showcase been helping make that happen. pressure, with the availability of quality caring and supportive, with a practical our culture and heritage to better These include: housing for both ownership and rental no nonsense approach to addressing share and celebrate who we are. Some • Supported and enabled the use of an issue. Demand for social housing is issues. We have a relatively small and examples include using innovative land for residential and industrial also growing. We’re proposing to play an aging population, and volunteers are ways to make our community stories, development e.g. Balclutha’s active leadership role to enable housing increasingly stretched. Drugs and objects, and records more accessible; Plantation Heights and Rosebank solutions. This includes continuing to alcohol can cause issues, and we lack and incorporating our local history and Industrial Estate build on partnerships with communities public transport options. We believe culture into community facilities such as • Supported and facilitated and central government. We will look connectivity and access to health halls and public spaces. community initiatives such as the to continue to facilitate residential services should be a focus. Clutha Community Hub and Naish development to add more quality Park developments in Balclutha. housing in the district, whether that Funding has also been committed be residential subdivisions, or single to a Milton community facility houses and infill development in our Addressing Climate Change towns. to replace aging facilities in the Climate change will present town. Our Place Community We’re also planning on challenges and opportunities Plans are providing a platform to improving Council-owned throughout the district. We’ve facilitate priority projects through community housing units been working on gathering the district’s main towns. throughout the district. For better information about what • Facilitated the development of more details refer to the we can expect in the coming growth hubs via the District Plan, Clutha District Strategic century. This is providing more e.g. Milton as an industrial hub Direction for Housing detail including ‘trigger points’. and Balclutha as a service hub. 2021. We can use this information when making decisions to WHERE WE’RE HEADING set us up in the best position possible for the longer term. We’re continuing our focus on pro- moting growth and opportunities in the Clutha District Filling Our Jobs Investing in Infrastructure Overall, our district is in good shape We’re focused on sustaining and – poised to make the most of our growing businesses by helping fill We intend to continue looking circumstances and opportunities. jobs in the district. For Clutha District after what we’ve got and increase In recent years we’ve supported this means continuing to provide direct levels of service to meet compulsory initiatives to promote growth in the recruitment support for our businesses. requirements, such as increasing District and it’s great to see progress Having a vibrant and diverse workforce Reducing Our Environmental Footprint standards for sewage discharges and on this. Our district has begun with the skills to meet the changing drinking water. Importantly, Council growing and our overall outlook is needs of the district will be crucial to our We want to help promote a district that will also look at facilitating growth positive despite the unprecedented success both now and into the future. plans for a sustainable future through where there is potential for this. For challenges that have come our way in We also see a key role of Council is to effective planning of infrastructure, more details refer to Investing in our recent times. provide supporting infrastructure which efficient delivery of services, and Infrastructure over the page, and the the protection, maintenance and A variety of factors put us in a good enables businesses to flourish. Draft Infrastructure Strategy 2021/51. enhancement of our natural and built position to move forward. Our strong environment. Focus areas include KEY TO THE WHEEL agricultural base and lower reliance waste reduction, water conservation Vision on sectors like tourism and retail and quality, and protecting and puts us in a very good position in Community Outcomes enhancing habitats of local significance. light of the impacts COVID-19 has We’re also open for business in terms Other initiatives include supporting Key Priority Area had throughout the world. We’ve of visiting and investing here. Council infrastructure for electric vehicles and taken this into account in our forward is intending to use what it has available Key Strategies & Plans reducing greenhouse gas emissions. planning and are looking forward to to fully support our residents and ratepayers now, and into the future. maintaining the momentum of recent For more information refer to the Draft Living years, with our focus on continuing to make Clutha a great place to live, and Working in Clutha Strategy 2021/51 work and play. available at www.cluthadc.govt.nz

Tell us: Have we got our priorities right for the Clutha District?

3 INVESTING IN OUR INFRASTRUCTURE

OUR STORY SO FAR when compared with other similar our community without compromising invested in, and prioritise investment networks and this has reduced capital the amenity values of our urban areas. in infrastructure that balances cost, The story of the Clutha District works for sealed roads compared to 10 We want to ensure our communities risk, and service levels. is one of opportunity and to 15 years ago. There has also been a have the provisions to sustainably grow 3. Use our solid financial position and adaptation. focus on providing improved drinking in the future. existing infrastructure as a platform water for the majority of our towns, to enable growth. What we see in our past is that an Roads and water everywhere! along with sewage treatment upgrades. 4. Keep rates affordability at the abundance of natural resources drew We have also considered community Clutha District has a vast network of forefront of our actions and people to the area - the hunters, facilities on a case-by-case basis and, water schemes and local roads spread decisions, and work to keep rates fishers, whalers, miners, logging adapted and in some instances, divested throughout the district. The network increases at a low level. workers and farmers are testament facilities if this is the most sustainable can carry large and heavy vehicles, to that. Our ancestors and pioneers What we plan to do longer-term option. meaning much of the productive areas created trade and prosperity across are accessible. We are also served by (Our investment priorities) the district. Our challenges four state highways capable of carrying PRIORITIES TO FACILITATE GROWTH Early Māori roamed, hunting and higher volumes of traffic throughout the gathering and moving with the Council faces the challenges of Otago / Southland region. A rail freight Our Approach: We plan for and be seasons. Those trails were the district’s balancing the known with the unknown. corridor also runs directly through the adaptive to growth and enable private first deliberate infrastructure. Then Increasingly, we face added pressure district. It connects to Port Chalmers and infrastructure investment where it will European whalers shipped tonnes of financially, geographically, and further North and to Gore, Invercargill, benefit our community’s well-being. oil and whale bone across the world. politically. and Bluff Port to the south. Key priorities include: These include: Gold and coal were mined; sawmills Lifestyle: working from home – the • Enabling growth in the Milton- supported a booming trade in timber. • Our changing communities, where ability to work from the mountains to Milburn-Waihola Corridor. Cleared land was used for farming, some are growing, some are the sea. • Managing drinking water demand in from which modern dairy factories declining, and overall we are getting our rural and urban water schemes, and processing plants employed older. With a laptop and good internet and where viable, supplying more many people. • Natural disasters and planning for connection there are a growing capacity. number of people who can work from Underpinning all these activities the unknown. • We are also proposing a number of anywhere. The COVID-19 lockdown saw was an ever-growing infrastructure • Adapting to the effects of climate sewerage and water projects in other even more people take the leap into of housing, riverways, roads, change. areas to help them expand. This working remotely. By ensuring there is railways, bridges, and ferries, as • Changes in legislation and includes in Balclutha, Kaitangata, quality housing, good connectivity, and well as drinking water schemes and regulations, increased environmental Kaka Point and Tapanui. amenities, there is a strong opportunity wastewater systems. standards and potential water to attract new residents to settle in the PRIORITIES TO IMPROVE LEVELS OF industry reform. SERVICE • Changes in technology. district as part of the Living and Working Our Approach: We prioritise investment • Maintaining and replacing our in Clutha strategy. in infrastructure that balances cost, risk, WHAT WE’RE PLANNING widely distributed infrastructure over Where we want to be and service levels. time. Where we are now • Facilitating our district through the Council is committed to continuing to Key priorities include: We are a widespread district of over impacts of Covid-19. sustainably manage and maintain key • Upgrading rural and urban water schemes to comply with NZ Drinking 6,000 km2 including various towns and Our opportunities infrastructure for residents throughout smaller settlements that all have their our district. Water Standards. own infrastructure needs. In terms We want to continue making the most of In some instances we will increase • Upgrading wastewater infrastructure of key infrastructure, Council play an the resources that is Clutha District. levels of service to meet compulsory to improve the quality of discharges to the environment. important part in this. We maintain just Our areas for growth requirements, such as increasing under 3,000km of local roads and 401 standards for sewage discharges and • Increasing the capacity of Council has proposed re-zoning changes bridges. There are 22 water schemes drinking water. We want to continue to stormwater infrastructure to reduce to the Clutha District Plan, which would that deliver water to 15 urban areas and consolidate and build on our existing the risk of localised flooding. affect Balclutha, Stirling, and Milton. over 2,000 rural properties throughout asset base, while we sustainably • Investing in the Milton main street Each plan change proposes areas of the district. We protect the environment manage and maintain key infrastructure improvements. land in and around these towns that and public health by collecting, treating for residents and future generations PRIORITIES TO TAKE CARE OF WHAT could be rezoned to Urban, Transitional and disposing of the treated sewage throughout our district. Importantly, WE’VE GOT (RENEWALS) or Industrial Resource Areas. Most of from 14 townships via 11 sewerage Council will also look at facilitating this can be serviced by extending the Our Approach: We’re aiming to have the schemes. Stormwater drainage helps growth where there is potential for this, existing infrastructure network, which is funds needed to replace assets when protect people and properties across to help achieve our goal of growing the normally done at the developer’s cost. they wear out (renew assets at the end 13 of the district’s communities. Council rating base. We acknowledge this is a of their economic life). is responsible for managing a billion In residential areas, Council wants to medium to longer term goal. Key priorities include: dollars worth of infrastructure, including understand what opportunities there the third largest local roading network in are to provide more residential choices Our strategy is to: • Minimising the costs and impacts of whilst sustainably managing the rural our ageing infrastructure. the country. 1. Plan for and be adaptive to growth environment (Our Environment). • Efficient road maintenance. In recent years there has been and enable private infrastructure • Continuing with our ‘fast tracked’ substantial investment in infrastructure, In industrial areas, Council wants to investment where it is beneficial to bridge replacement programme. and our communities are experiencing understand what opportunities there are the community. • Securing the future for Mt Cooee the benefits of these works. Our roading to provide more industrial land so that 2. Continue to focus on maintaining Landfill. network is generally in good condition we can continue to attract businesses to the infrastructure we have already 4 OUR PROPOSED INVESTMENT IN INFRASTRUCTURE IS THE BIGGEST IN COUNCIL’S HISTORY Many of these proposed keep rates down, so borrowing projects are expected to see will help with this approach. us through for many decades. There are challenges and calls to We’re operating in a constantly make for adapting to the impacts changing environment with a of climate change, as our district lot of uncertainty. The ‘doability’ gets wetter, windier and warmer. of what we’re proposing will We’re also mindful of how we be a significant challenge and can prepare ourselves for natural risk. Funding is also a huge disasters or other unknowns that wastewater discharges and be changes, challenges and consideration. We know we will might come our way. need to use debt to fund these ensuring safer drinking water. Our opportunities to navigate. over time, to make it fairer so the Council’s mandate has been to forge approach is to be flexible and current generation doesn’t foot ahead to ensure compulsory work is adaptive as we know there will For more information refer to the the whole bill. We also want to done, especially towards improving undoubtedly Draft Infrastructure Strategy 2021/51 (available at www.cluthadc.govt.nz)

Safer drinking water ($23.8M) Facilitating growth in the Milton/Milburn/Waihola area ($40.1M)

Compliance with the NZ Drinking Water Standards is now a legal requirement. This area along State Highway 1 in the northern part of the district has strong Council also has responsibility to keep rates as low as possible to support the residential and industrial development potential. Several projects are proposed for economic wellbeing of the community. The level of treatment necessary is this growth area of the District on State Highway 1. This is also supported by recent dependent on the quality of the water source. Work for all our rural treatment plants district plan changes to enable further development in the area. Contributions from will take place. Also refer to the Greenfields information about the proposal that developers and those directly benefiting from the new infrastructure will fund the would provide improvements for a number of the district’s residents involving a majority of the costs. These projects include new wastewater and water treatment single, high capacity, reliable quality source on the Clutha and supply to four rural plants in Milburn and the Milton-Waihola water pipeline which move Waihola schemes and Lawrence. Find out more about the Greenfield proposal on page 7. township’s supply off the North Bruce Rural Water Scheme, enabling more water in both these areas. Increasing standards for discharges to the environment ($7.8M) Efficient sealed road renewals ($34.1M) New rules and regulations expected in the coming years will influence levels of treatment for wastewater and eventually stormwater as well. Keeping our roads open, safe, and affordable is as important today as it was 100 Several of our wastewater treatment plants have been going through resource years ago. consent renewals. In the past consents have been for 35 years. We are and will remain, a very large exporter of food, fibre and wood products. We Given the current uncertainty we are aiming that current consent renewals are recognise that the transport network is the ‘first mile’ to our export markets. shorter than usual, to take us through to 2028 (for Clinton and Waihola) and 2033 Improving the cost effectiveness of road maintenance translates into direct benefits (for Balclutha). Longer term consents will be considered once the new requirements to our community and our co-investors. and outcomes of the Three Waters reform are confirmed. Since 2015 we have changed tact on how we look after local sealed roads. Instead of maintaining them all to the same standard, we’ve begun focusing on the ones that have the biggest economic benefit to the district with the aim of giving ratepayers Improving stormwater protection ($4.1M) the ‘best bang for their buck’. This approach is called ‘sweating the asset’. How we collect and dispose of stormwater run-off affects residents, their property Doing so incentivises us to be innovative and open to carrying some risk in order to and businesses. To quantify what level of protection we have, we talk about save money and keep roading rates down. We actively monitor the performance of frequency. For example, at the moment our pipe systems are designed to manage our sealed road pavements to signal when this strategy of ‘sweating the asset’ needs between a 1-in-5 and a 1-in-10 year event. Several flooding risks exist in some of our to adapt and change. smaller communities and a programme of upgrades is underway over the next 10 Replacing our aging water pipelines ($18.5M) years. The projects are in Milton, Owaka, Lawrence, Tapanui, Heriot, Clinton, Waihola Clutha District is entering a long-term cycle of asset renewal, the timing of which and Pounawea. The proposed projects will mean a higher level of protection for will echo the installation era of the 50s through to the 80s. As these ‘spikes’ or bow communities during heavy rainfall events. Heavy weather events are becoming waves of renewals approach, they pose price, affordability and delivery risks (year 10 more common, so in the longer term we’re investing how we improve protection to year 30). Many of the large pipes are brittle materials. They perform poorly during that can manage more rain more often. and after major earthquakes compared to modern materials. Replacing pipes before they are due could both ‘smooth’ out the workload and reduce our exposure to Community housing improvements (Estimated cost: $9.2M) response and recovery of a major event, improving our resilience.

A key consideration for helping our district move forward is quality housing. We are Strengthening our bridges ($22.6M) planning a programme of upgrades to our portfolio of 98 residential housing units spread across 8 towns in the Clutha District. As we improve how freight moves around New Zealand, trucks are becoming both The improvements will bring the units up to Healthy Home Standards, making them longer and heavier with 50 tonne loads becoming the norm. At the moment a large warmer and drier. Council will exercise care and confirm these on a case-by-case part of our local roading network, i.e. access to farms and forestry, is not accessible basis as rent increases would needed to fund the costs of the improvements. There by what are referred to as High Productivity Motor Vehicles (HPMVs).Council’s are also new-builds for community housing of $1.6M planned during 2021 to 2024 delivery partner for roads, Waka Kotahi (NZTA) is looking to actively support us to in Balclutha, Milton and Waihola. open up more of the local network to HPMV vehicles. Healthy Homes improvements will cost $7.6M. Critical bridges ($15.8M)

Securing the future for Mt Cooee Landfill ($3.4M) There are four large and economically critical bridges that will require replacement within the next 30 years: Clydevale Bridge, Papatowai Bridge, McLennan Bridge and Mt Cooee, the district’s landfill located in Balclutha will need to renew its resource Bridge 462 (Tuapeka Flat Road). consent by 2023 to continue receiving waste. Council is proposing to secure this long-term 30-year consent until 2053 rather than a short-term extension to 2028, or to Milton main street improvements ($2.0M) send waste to a landfill outside the district. We’re also continuing waste minimisation and recycling efforts to continue to slow down the rate to landfill, including to build Following on from Balclutha improvements, the priority for the second largest a resource recovery park at Mt Cooee. Having more tools to help residents and town to have its turn remains a priority. Find out more about the Milton main street businesses reduce waste is a ‘win win’ as it will cost us all less in the long run. proposal on page 12.

Tell us: Have we got our priorities right for infrastructure?

5 KEY INFRASTRUCTURE AT A GLANCE

DELIVERING OUR CAPITAL PROGRAMME Core Infrastructure Vital statistics We’re proposing an increase in capital expenditure, particularly in our Three Waters activity area. We will need to do things 846km Sealed roads differently and increase our capacity to be successful. 2,062km Unsealed roads Council has been gearing up towards delivering on our Roading 144km Footpaths programme by: 360 Bridges and culverts • Engaging contractors early and securing multi-year 171km Surface water channels contracts. This gives us a head start on future years. We intend to ‘work ahead’ and continue to secure contracts in 11 Schemes servicing Balclutha, Kaitangata, Lawrence, Milton, advance of the work where possible. Owaka and Tapanui, Clinton, Kaka Point, Waihola, Benhar, and Stirling. • Increasing our internal project management resources to deliver our proposed projects. 11 Rural water schemes: Balmoral 1, Balmoral 2, Clydevale- • Looking at alternative contract arrangements to secure Water Pomahaka, Glenkenich, Moa Flat, North Bruce, Richardson, South Bruce, Tuapeka, Waipahi and Wangaloa. contractor resource such as design build and negotiated contracts. 2,684km Reticulation • Securing new wastewater discharge consents for Balclutha, 16 Treatment plants Waihola and Clinton during 2021 will mean these projects 46 Pump stations can commence for these upgrades over the next 3 years. 14 Halls and community centres • Attracting contractors from outside the district for several 98 Community housing units in Balclutha, Clinton, Kaitangata, multi-million dollar projects over the next three years. This Lawrence, Milton, Owaka, Tapanui & Waihola will increase the resources available to us for the large projects and will mean that a higher proportion of the 3 Swimming pools in Balclutha, Milton & Kaitangata value of our capital programme can be delivered by the Community 86 ha Parks and reserves same number of staff. Services 18 Playgrounds • Increasing the use of external consultants where specialist 24 Public toilets advice is needed. We already do this for roading project 5 Motor caravan dump stations delivery and have begun this for the design and delivery of key wastewater and water projects. 14 Cemeteries From a financial perspective Council will only borrow for a 11 Schemes in Balclutha, Clinton, Heriot, Kaitangata, Kaka Point, project once there is certainty it can be delivered, so finance Lawrence, Milton, Owaka, Stirling, Tapanui and Waihola. costs will only apply once the debt is incurred and the rates 201km Sewers impacts of these projects is linked to depreciation on the new assets over future years upon completion. Sewerage 28 Pump stations 1 Treatment plant If we are unable to meet our planned timeframes, either due to an inability to obtain contractors or obtain contracts at 10 Oxidation ponds prices that we have budgeted for, the likely outcome is that 3 Wetlands outages and failures will occur more regularly in the three waters network impacting on the levels of service and likely increase repairs and maintenance costs needed to keep aging Solid Waste Mt Cooee Landfill at Balclutha equipment operational and emergency costs for failure events. The Council and community will also be faced with increased legal risk from potential resource consent breaches and failure to meet the new compulsory drinking water standards. 8 Systems in Balclutha, Clinton, Kaitangata, Kaka Point, Lawrence, Milton, Owaka and Tapanui. RESPONDING TO CLIMATE CHANGE Stormwater 111km Pipes Our changing climate is an area of focus for both our 4 Pumping stations communities and the Council. Council has an important role to play, particularly as the provider of critical infrastructure that underpins the daily lives of our communities. Council commissioned investigative research during 2020 to understand the likely impacts for our district, which indicates our district will become warmer and wetter with more water flowing the Clutha River. This brings opportunities for improved winter pasture growth and possible challenges with the potential for increase flood frequency and severity. Modelling done specifically for our region gives us the opportunity to make changes to our infrastructure over time. Council has begun working on its response to climate change, a key project is the Greenfield water scheme proposal being consulted on in this proposal. Our infrastructure strategy assumes the effects of climate change will be felt gradually, allowing Council time to plan and prepare its response and options around services and infrastructure.

6 Let’s talk Kia Korero A BETTER WATER SOURCE? We’re putting a long-term lens over several of the district’s rural water schemes We’ve got a lot of water infrastructure consumption. plant is able to produce reliable water This means users of these schemes that in the Clutha District. There are 11 Two treatment plants, Evans Flat and which meets national standards and get their drinking water from these rural water schemes in the Clutha Waitahuna, which source their water they struggle to meet demand during plants face water shortages and long- District which provide water for stock, from the Waitahuna River and the summer. They are not reliable or term boil water notices. for rural businesses and for domestic Tuapeka River, need work. Neither resilient during heavy rainfall events.

We want to ask you whether it’s time to think longer term and be smarter about where we get our water from. Option 1 While a single treatment plant would This is cost more to build than option 2, in the Changes ahead for Three Waters Establish a new Council’s long term there would be savings from supply from the preferred reduced operating costs. Water is the lifeblood for our way of Its premise is that councils have the option life, for our people, environment and funding and support to get the balance Clutha River This option could provide 25% (and economy. Wastewater and stormwater right. We are proposing to build one new possibly up to 50%) more water which also play crucial parts. Combined these Council has signed a memorandum treatment plant that will source water would enable further growth in this key services are referred to as Three- of understanding with Central from the Clutha River at Greenfield. part of the district. This plant would be Waters. expected to have an 80 year lifespan. Government and is taking part in the We would involve amalgamating the Just under two-thirds (12,000) of Clutha exploration of future service delivery Total cost of upgrade: $14.5 million. four water schemes (Balmoral 1, 2, District’s residents drink water from one options for water, sewerage and Annual operating cost: $1.6M million Tuapeka East and West) into one and of the 22 schemes currently taken care stormwater. The Government expects (over its 80 year life span). Water unit decommissioning the Evans Flat and of by CDC. to make substantive decisions later in rate: $445. Waitahuna plants. Half of these schemes service our towns 2021. We’re also proposing Lawrence town Option 2 in Balclutha, Clinton, Milton, Benhar, Councils will be asked to consult with water scheme join this new water Continue to source water Kaitangata, Lawrence, Stirling, Tapanui, their communities in late 2021 as supply. Lawrence’s water currently Clinton, Owaka and Waihola. to whether they should join one of comes from the historic Phoenix Dam, from the Waitahuna and Tuapeka rivers The rest are rural schemes that cover the new service delivery entities. We one of the oldest in the southern just about every other part of the expect to consult with the community hemisphere. We are doing work to The Waitahuna (on the Waitahuna River) district. They supply drinking water to separately to this Long Term Plan in understand more about Phoenix Dam and the Evans Flat (on the Tuapeka people in these areas, and water to their late 2021 once Central Government has including its structural integrity during River) plants were built in the 1980s. businesses. Importantly, they are the made their decision and more facts are an possible earthquake. But a new These plants will need to be replaced to backbone of our agricultural sector. available. source is likley to be a better long term have the technology they need to meet For councils that participate in the option. The combined extent of what we have national drinking water standards. here is also a point of difference and reforms, the transfer of responsibilities The proposed treatment plant would be The life span of the new treatment plants we have one of the longest networks of and assets is likely to occur 2023/2024 easier to access and less complex to run. would be 30 years. This option would pipelines in NZ. onwards. For example, access to the Waitahuna produce the same amount of water as Our community needs three waters treatment plant is through people’s A 2016 campylobacter outbreak in the plants currently produce. services regardless of whether Council farms and is compromised during Havelock North made over 5,000 people The schemes which source their water delivers or not. On this basis we flooding because of its location. ill and was linked to three deaths. The from these two treatment inquiry into the outbreak concluded have included three waters in our Option 2 plants are: New Zealand’s drinking water regulatory financial and infrastructure strategies, Continue to including the Greenfield proposal, Option 1 Balmoral 1, Balmoral 2, system was failing to provide necessary A Better Water source water from New supply from Tuapeka East and Tuapeka assurances that drinking water across to present the community with a the Waitahuna Source? the Clutha River complete and accurate set of financial and Tuapeka West. They would continue to the country is safe and reliable. rivers operate as separate schemes. In 2019 Cabinet agreed to create a new information for the medium-term and long-term financial impost. This has Total cost of upgrade: $7.5 water services regulator called Taumata Total cost to build $14.5M3 $7.5M3 been considered as critical in our key million. Annual operating Arowai. One of its roles is to enforce assumptions. For more information on cost: $3.0 million (over its drinking water standards nationally. Annual cost to run $1.6M $3.0M the Government reforms visit www. 30 year life span). dia.govt.nz/three- Annual water unit Water unit rate: $445 from 2025 $650 from 2025 Responding to Climate Change waters-reforms- rate $650. programme. Number of We expect that climate change will mean that the district experiences 12 31 treatment plants more rain more often. When the Waitahuna and Tuapeka rivers flood they become dirtier, and the water needs more treatment before it can Total lifespan 80 years 30 years be used. The proposed Greenfield bore would source water from an 1 Waitahuna, Evans Flat & Lawrence plants acquifer below the Clutha River. This would be a cleaner, more reliable 2 Proposed Greenfield plant water source which is not impacted by river levels or wet weather. 3 Total cost to build for both options will be debt funded

Tell us: Is it time to think longer term and be smarter about where we get our water from? Option 1: Establish a new supply from the Clutha River Option 2: Continue to source water from the Waitahuna and Tuapeka rivers

7 Let’s talk Kia Korero KEEPING RATES DOWN How Much We Are Proposing to Rate Rates are one of the most important sources Council uses to fund the cost of its services. We expect 57% of Council’s overall costs will be funded by rates during the 2021/31 period. We have unavoidable cost drivers particularly for water, sewerage and stormwater, that will affect ratepayers who receive these services. But we’re proposing to keep our overall rates down in a number of different ways.

Our Proposed Mix for Keeping Rates Down This strategy is planning to: 1. Use debt and borrowing to our advantage to get lower interest rates for our asset build programme (find out more in Our Finances on page 10). 2. Subsidise rates using income from investment returns. 3. Use roading reserve fund (worth around $1.75M) to reduce rates below 4% in 2023 and 2024. Find our more about this in Options 1 and 2 below.

Option 1: Use reserve funds to keep rates down in Option 2: Don’t use reserve funds to keep rates the short term down in the short term We would like to free-up money in the short-term so that we can keep the overall Not use the measures described in Option 1 to achieve the goal of an overall yearly rates increases under 4% for our ratepayers during 2021/22 to 2023/24. In the increase of less than 4%. The overall rates increases are outlined in the graph below. past Council has put funding aside for roading and we have accumulated a reserve fund for this service. We are proposing to use this fund to help reduce rates overall. To balance the risk of 8% Option 1 this approach we will cover any emergency situations that might arise using other 7% funding Council has access to. Option 2 Note: 6% This would improve the mix from an overall rates perspective in This is 5% the short-term through to 2024, but not in the longer term from Council’s 2025 and beyond. This would impact roading rates, particularly preferred 4% 4% for those in the rural area who pay a bigger proportion of this option 3% type of rate. But it wouldn’t avoid imminent water, sewerage and stormwater rates for ratepayers who receive increases in these services. 2% The approach of keeping rates down using this funding in the shorter term means they will go up when it stops. 1% 0% 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31

Weighing up who pays, and how much is affordable heavily influences Council’s decisions. One of the important aspects of getting the best mix possible for how We have identified that in the next 3 Balclutha and Milton. running a council is doing our best to we fund services. This involves rates, years there is going to be some major We will borrow to help fund these keep the cost of rates down for our borrowing, using reserves, and how we projects which are compulsory and projects, but funding these important people. To keep rates down Council use the investment returns we get. must be addressed. But they will come projects is forecast to push overall rates has set a goal of not increasing them We are acutely aware that overall at a cost. These bigger projects include: up higher than our 4% goal. We have overall by more than 4% on a yearly increases above 4% will put pressure • Upgrading our rural and urban come up with the options above to basis. on our ratepayers and their ability to water schemes to comply with NZ keep under the 4% that we would like In our widespread rural district afford to pay their rates. Although our Drinking Water Standards. you to consider. we have the added challenge of a district isn’t as affected as other parts of • Improving wastewater discharges relatively small population with a lot New Zealand, we also acknowledge the to the environment. of infrastructure, especially for core financial challenges facing us as a result • Increasing stormwater capacity. services like roads and water. Council of COVID-19. • Commitments to projects that will has the important responsibility of improve community facilities e.g. in

Tell us: How should we keep rates down? Option 1: Use Reserve funds to keep rates down in the short term Option 2: DON’T Use Reserve funds to keep rates down in the short term

8 RATES EXAMPLES What our proposals in this document mean for your rates. To see what our proposals could mean for your rates we have put together some examples from the following rating categories: Residential, Lifestyle, Commercial, Industrial and Rural.

Balclutha LV CV Variations to rates Current 2020/21 $2,538 Proposed 2021/22 $2,747 Other$96,000 $350,000 Council splits the district into different Proposed2022/23 $2,960 Other Proposed 2023/24 $3,129 areas for some rates depending on Clinton Solid Waste the range and cost of services in each Current 2020/21 $2,092 Proposed 2021/22 $2,302 of these areas. Proposed2022/23 $2,486 $15,000 $115,000 Community Facilites Proposed 2023/24 $2,630 It is also important to keep in mind Kaitangata that the values of all properties in Current 2020/21 $2,473 Water, Sewerage & Stormwater Proposed 2021/22 $2,692 $56,000 $180,000 the Clutha District are reviewed Proposed2022/23 $2,905 Roading Proposed 2023/24 $3,071 every three years. The latest values Kaka Point were dated October 2020 and will Current 2020/21 $2,471 General (UAGC) Proposed 2021/22 $2,669 come into effect for rating purposes Proposed2022/23 $2,869 $205,000 $425,000  Includes regulatory services, sewage upgrade support Proposed 2023/24 $3,027 & community board rates (where applicable) from July 2021. The exact rates Lawrence Roading includes new footpaths for urban areas percentage change for a property Current 2020/21 $2,421  Uniform Annual General Charge Proposed 2021/22 $2,654 $81,000 $230,000 will depend on which of the 11 Proposed2022/23 $2,860 Proposed 2023/24 $3,012 rating areas the property is in, and Milton whether an individual property’s Current 2020/21 $2,339 Proposed 2021/22 $2,684 value has changed more or less than Proposed2022/23 $2,862 $120,000 $340,000 Proposed 2023/24 $3,014 the average increase/decrease in the Owaka district and in that rating area. Current 2020/21 $2,134 Proposed 2021/22 $2,357 Proposed2022/23 $2,534 $39,000 $175,000 For more information about rates Proposed 2023/24 $2,676 refer to the Proposed Rating Policies Stirling Current 2020/21 $2,544 2021 and the Proposed Rates Proposed 2021/22 $2,744 Proposed2022/23 $2,956 $93,000 $365,000 Information. Proposed 2023/24 $3,123 For more information about projects Taieri Mouth Current 2020/21 $1,185 and funding refer to Council’s Draft Proposed 2021/22 $1,408 Proposed2022/23 $1,445 $250,000 $620,000 Financial Strategy 2021/31 and Draft Proposed 2023/24 $1,470 Infrastructure Strategy 2021/51. Tapanui Current 2020/21 $2,318 All these documents are available at Proposed 2021/22 $2,536 $26,000 $245,000 Proposed2022/23 $2,732 www.cluthadc.govt.nz. Proposed 2023/24 $2,887 Waihola Current 2020/21 $2,182 Proposed 2021/22 $2,486 $150,000 $370,000 Proposed2022/23 $2,654 Proposed 2023/24 $2,797

Lifestyle Roading Current 2020/21 $1,539 Proposed 2021/22 $1,561 Water Proposed2022/23 $1,629 $330,000 $660,000 Proposed 2023/24 $1,679 Community Service Commercial LV CV Current 2020/21 $5,782 Sewerage Proposed 2021/22 $5,307 $510,000 $3,430,000 Economic & Proposed2022/23 $5,470 Community Development Proposed 2023/24 $5,616 Industrial Urban Community Leadership Current 2020/21 $4,216 Proposed 2021/22 $4,191 Regulatory Proposed2022/23 $4,397 $405,000 $1,380,000 How each Proposed 2023/24 $4,581 Solid Waste rates dollar Industrial Rural Stormwater Current 2020/21 $3,727 is spent Proposed 2021/22 $3,889 Proposed2022/23 $4,067 $241,000 $2,626,000 Proposed 2023/24 $4,167 Rural Dairy 1 Current 2020/21 $6,280 Proposed 2021/22 $5,570 Proposed2022/23 $5,461 $2,850,000 $3,410,000 Proposed 2023/24 $5,419 Rural Sheep & Beef 1 Current 2020/21 $5,420 Proposed 2021/22 $4,879 Proposed2022/23 $4,745 $2,820,000 $3,310,000 % Proposed 2023/24 $4,681 Rural Dairy 2 LV CV Current 2020/21 $11,785 Proposed 2021/22 $10,152 $5,800,000 $7,590,000 Proposed2022/23 $9,811 Proposed 2023/24 $9,648 Rural Sheep & Beef 2 Current 2020/21 $14,132 Proposed 2021/22 $11,285 Proposed2022/23 $10,999 $6,034,000 $7,039,000 Proposed 2023/24 $10,882

9 Let’s talk Kia Korero OUR FINANCES

What’s in the Financial Mix? How Much We’re Proposing to Spend

From a financial point Operating Funding of Capital Spend of view there are four Spend capital and How much 2021-31 key parts in the mix, and 2021-31 operating spend they are closely linked – we spend what happens with one influences the others. Rates 38% Roading $104m $106m Council can decide how How much How much Other 62% much we spend, how much we rate for we receive we rate for and how much we borrow. How much we Rates 78% Water $72m $76m receive is outside of our How much Other 22% direct control, but it is an we borrow important part of the mix. Community Rates 68% $73m $18m How Much We’re Proposing to Rate Services Other 32% Limits on Rates Increases We expect our overall rates to increase around 3.39% on average during the next Rates 54% Sewerage $22m $51m 10 years. We have self-imposed limit not to increase overall rates by more than 4% Other 46% per annum. Our forecast at the moment is that this limit may be in jeopardy in some years of this strategy. There is a lot of uncertainty and factors outside our control. Economic & We’re proposing to be flexible and adaptive where part of this approach will involve Rates 100% Community $13m $0m reviewing overall rates when we updating our financials on an annual basis and look Other 0% at our mix to ensure we keep our overall rates increase below 4%. Development Revenue We’re Expecting Community Rates 95% 80 $14m $0m ($M) Leadership Other 5% ‘How much we 70 38 are expecting 60 to receive’ 21 22 Rates 42% 22 23 20 Regulatory $29m $3m includes financial 50 20 Other 58% 20 20 assistance towards 19 40 transportation 38 38 from Waka Kotahi 30 35 36 32 34 34 Rates 49% (NZTA), fees and 30 Solid Waste $25m $4m 20 28 29 Other 51% user charges for Council services, 10 rental on Council- 0 owned properties, 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Rates 74% How much we expect to receive Stormwater $6m $15m and returns on our Other 26% investments.For How much we propose to rate more information about our investments see below.

How Much We’re Expecting to Receive From Investments Targets on Investments Council maintains investments to: Overall, we want to maximise investment returns while preserving ratepayer funds. 1. Use some of the income to help reduce rates. We’re targeting to earn an average of 3.4% for returns on our investment portfolio 2. Help fund the development and growth outcomes of the district i.e. support during the next ten years through to 2031. our community’s well-being through the priorities in our Living & Working in We’re proposing to use some of it ($8M) to reduce rates. We’re forecasting the value Clutha Strategy and Our Place community plans. of the fund will grow from $31.7M to $35.0M. But what we receive is dictated by 3. Make sure we have money set aside to cover our share of replacing assets many factors outside our control. If we receive better returns, we will decide the best destroyed or damaged in a natural disaster. way to use them, in keeping with the reasons Council maintains investment.

Tell us: WhatOur Strategy do you for think Borrowing of our 2021/31 proposed ($M) mix of What changes would you suggest to improve • how much we want to spend the overall mix? • how much we want to borrow • how much we want to rate for? 10 Let’s talk Kia Korero OUR FINANCES How Much We’re Proposing to Borrow We’re planning to borrow to help fund our extensive asset build programme of $276M during the ten years from 2021 to 2031.

Our Strategy is to use debt to our advantage 120 Our approach to debt has been pay their share for assets and ($M) changing in recent years. Instead services created today (known of having no debt and using as intergenerational equity). Our 100 33 28 our reserves to fund our capital asset build programme should 17 24 32 26 programme (internally borrowing also cost us less in the longer 32 42 from ourselves), we have been term as interest rates will be lower 80 58 71 80 through our lender, the Local using the reserves to build our 75 73 investment portfolio which earns Government Funding Agency. 69 71 60 63 us more in returns. But, it is important to get the 59 We use part of these returns balance right and we need to to keep rates down. We’re now have clear limits. 40 46 proposing to keep our investment The alternative approach would portfolio intact, and to borrow be breaking the investment 20 28 to fund our proposed extensive portfolio and earning less in asset build programme. We returns, internally borrowing from 12 feel this is the best use of our ourselves (at higher interest rates 0 investments. We also feel the as we must use market value for 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 approach is fairer as it means these) and paying more in rates Our debt cap/limit (175% of revenue) that future ratepayers also (both in the short and long term). How much we have available to borrow

What we intend to borrow (net debt)

Limits on Debt1 For more information refer to the We are expecting to stay well within our debt limit. Draft Financial Strategy 2021/31 We will still have substantial ‘headroom’ to borrow more if something unexpected happens. (available at www.cluthadc.govt.nz) 1 Debt refers to net debt which equals borrowings less investments and cash in the bank.

11 Let’s talk Kia Korero Tell us - which option for Milton’s Makeover? MILTON’S

Artist impression of Stewart Street Reserve area NB: Option 1 does not include feature wall MAKEOVER We’re checking back in about main street improvements have found we also need to replace the area proposed. We promised we After feedback in 2018 we agreed to Since then we’ve been working older sewerage pipes and upgrade would check back in if budgets were main street improvements from Mill on the details of the physical work stormwater pipes. Detailed pricing, insufficient. Street to Abercrombie Street area and needed to make this happen. Whilst including undergrounding powerlines, a major overhaul of the public toilets at the public toilets are fully funded and has come back higher than anticipated How far should we go and how much Stewart Reserve. will be completed by June 2021, we and our initial budget won’t cover should we spend on Milton’s main street?

Funding for this project How much would each option cost each year? Option 1: Stewart Reserve Area Only (Includes funding from NZTA) Funding for this project This is involves a combination Rating area Option 1 Option 2 Option 3 example ($) (existing Spend Spend $3M Council’s of roading rates and main budget) $1.75M more more preferred street rates. Our rates policy Balclutha 2.18 4.03 5.40 option recognizes that there are local Kaitangata 2.07 4.02 5.41 community and district-wide Kaka Point 2.42 4.25 5.75 benefits if we have vibrant main streets. Refer to our Lawrence 2.07 3.91 5.06 Draft Revenue & Financing Milton 23.76 44.58 59.40 Policy 2021 for full details. Owaka 2.07 3.68 4.94 What’s Involved? Other Considerations We also hope to secure Stirling 2.18 4.14 5.52 • This option involves spending the existing • Supports living and working in Clutha and Waka Kotahi (NZTA) funding Tapanui 1.84 3.45 4.60 budget of $2M. investing in our infrastructure. for the road and footpath Waihola 23.76 44.46 59.17 • Upgrade to the greater Stewart Reserve Area. • Scaling back of the area of the project will mean improvements proposed in • Power underground from Eden Street to Ossian staying within the initial 2018 agreed budget. Commercial 7.48 13.91 18.40 Street each option. Industrial 4.83 9.09 11.85 Lifestyle 2.64 5.06 6.67 Rural - Dairy 13.22 24.84 33.01 Rural - Sheep & Beef 11.61 21.85 29.21

Option 2: Southern Retail Area (blue area)

Option 3: Mill Street to Abercrombie Street (blue and green area)

What’s Involved? Other Considerations OPTION 2 OPTION 2 • This option involves spending $1.75M more • Strongly aligns with our strategic direction to ($3.75M total). promote living and working in Clutha, and our Before After • Upgrade to the greater Stewart Reserve area (as priority to invest in our infrastructure. But, it will per Option 1). have an impact on our focus on keeping rates • Improvements to footpaths, pedestrian cross- down. ings, plantings, signage and undergrounding • Is an improvement on a scale we expect resi- of powerlines from High Street to the Stewart dents and visitors to be enjoying for years to Reserve area. come (an ‘intergenerational’ project). • Ornamental wall in Stewart Reserve OPTION 3 OPTION 3 • Most strongly aligns with our strategic direction • This option involves spending $3M more ($5M to promote living and working in Clutha, and total). our priority to invest in our infrastructure. But, • Extends the improvements north from the as with Option 2, it will have an impact on our Stewart Reserve area to Abercrombie Street by focus on keeping rates down. ANZAC Park. Artist impression of Options 2 & 3

Tell us: How far should we go and how much should be spent improving Milton’s Main Street: Option 1: Spend initial budget on Stewart Reserve area. Option 2: Spend $1.75M more on Central Area. Option 3: Spend $3M more from Mill to Abercrombie Streets.

12 BUT WAIT THERE’S MORE... PROJECTS THAT SUPPORT LIVING & WORKING IN CLUTHA We have been approached to LIGHTING UP BALCLUTHA PROJECT BRUCE the Bruce community rating area, and a contribution of $0.26 from ratepayers support the following initiatives. BRIDGE (Estimated annual cost: $60,000 per We would like your help to throughout the district. If the grant was (Estimated cost: $350,000) annum) increased to $200,000 this would cost inform our decisions on these. The bridge is Balclutha’s most iconic Project Bruce is a community-led $2.10 and $0.52 respectively. feature. Improvements to it, including development project for the people How important is it to provide support GROWING TOURISM traffic flow and its appearance, were of Bruce community that includes funding for the proposed Waihola Tokomairiro-Milton, Waihola, Taieri (Estimated annual cost: $180,000 from a top priority in Balclutha’s Our Place Destination Playground? Mouth and all the rural areas in 2022/23) community plan. A project to light up the bridge was trialled in early 2020. between. Their work has been bringing The Clutha Destination Strategy aims WEST OTAGO HEALTH The cost for permanent lighting up of their community together, building to grow visitor spending in the district (Estimated cost: $300,000) the bridge is expected to cost $350,000. community resilience, leadership and and increase the part it plays in our Council will continue to support the volunteer participation. Now that West Otago Health Trust provides local economy. It aims to manage the project, on the basis that the project will the first years of central government community-owned health care facilities growth of respectful tourism, including only go ahead if it doesn’t impact on funding have ended, in recognition of and services for residents in their area, growth of visitor spending and rates. the part it plays in the well-being of the including district and community increasing tourism jobs and businesses. Bruce community, Council has agreed nursing, after hours emergency care, How important is it to light up Some of the initiatives involved include to provide funding $60,000 each year and semi-dependent living (four Balclutha Bridge? destination marketing and developing for the continuation of Project Bruce. modern cottages on campus). Their visitor experiences in iconic key areas We’re proposing a new rate is created key facility is a fully staffed medical such as The Nuggets near Kaka Point OWAKA SWIMMING POOL to fund this service, as a fixed charge in centre and home (Ribbonwood) that and Gabriel’s Gully near Lawrence. (Estimated cost $236,000) the Bruce community rating area of $30 houses residents needing age-related or This work, carried out by Council’s Originally built in 1976 Owaka’s from 2021/22. This has been included in hospital-related residential care which economic development contractor swimming pool facility has provided our draft budgets and in the Milton rates is crucial to enabling local residents Clutha Development, is being funded many years of education and enjoyment example (see p.12). needing this type of care to remain by central government’s post-Covid in The Catlins. A community committee How important is it to continue to in the area. In 2010 Council provided stimulus funding until 2021/22. To of dedicated volunteers has overseen provide funding for Project Bruce? $1M towards the facility being built. continue from then on it would involve a number of improvements including A targeted rate to households in West an additional $16.84 per ratepayer to roofing, heating and ongoing WAIHOLA PLAYGROUND Otago is repaying this funding over continue these initiatives. time (25 years through to 2035) at maintenance needs since the pool (Estimated cost: $200,000-$400,000) For more information refer to the has been in operation. The pool now approximately $70 each year. The Trust Clutha Destination Strategy and Clutha needs a range of improvements to meet Waihola is part of the Waihola/Milburn/ is aiming to expand the facility to help Destination Implementation Plan modern day standards and to set it up Milton corridor, a key growth area in meet their community’s increasing available at www.cluthadc.govt.nz. to continue on for future generations in the district. Lake Waihola’s foreshore is a demand for aged-related care, respite popular spot for locals and visitors alike. How important is it to fund initiatives the Catlins to benefit from. Community and palliative care and has approached A community-led project supporting to grow tourism? fundraising has been successful towards Council to draw down an additional Stage One to install an electronic key Waihola’s Our Place community plan is to $300,000 to help fund this. Council system, structural improvements and upgrade the facilities into a destination has agreed to this, and is looking at it to construct a chemical storage area to playground. Funding options are being from the perspective of keeping annual meet health and safety requirements. explored and Council has considered repayment around the existing level, As with the initial building of the seed (support) funding for the project but over a slightly longer term. pool, ratepayer funding is now being up to $100,000. How important is it to provide funding considered towards Stage Two to If Council made a grant of $100,000, this support to expand West Otago Health? address structural issues including would cost $1.05 annually for those in resurfacing the pool and improve the pools filtering and chlorine systems. This stage is estimated to cost $236,000. This is also a community-led project supporting The Catlin’s Our Place community plan. If Council made a grant of $100,000, this would cost $2.98 annually for those in the Catlins community rating area, and a contribution of $0.26 from ratepayers throughout the district. If the grant was increased to $200,000 this would cost $5.96 and $0.52 respectively. How important is it to provide support funding for the Owaka Pool improvements? Waihola playground 13 AUDIT REPORT

Independent auditor’s report on Clutha District Council’s Consultation Document for its proposed 2021-31 Long-Term Plan infrastructure investment, particularly General’s Auditing Standards and the consultation document, as required in the area of three waters. While the International Standard on Assurance by section 93C of the Act. We do not Council has taken steps to support Engagements 3400: The Examination express an opinion on the merits of I am the Auditor-General’s appointed the delivery of the infrastructure of Prospective Financial Information any policy content of the consultation auditor for Clutha District Council (the programme, there is a risk that the that were consistent with those document. Council). The Local Government Act Council may not be able to meet the requirements. Independence and quality control 2002 (the Act) requires the Council to planned timeframes, for example, due We assessed the evidence the Council prepare a consultation document when to challenges in obtaining contractors. has to support the information We have complied with the Auditor- developing its long-term plan. Section This could result in outages and failures and disclosures in the consultation General’s: 93C of the Act sets out the content occurring more regularly, impacting on document. To select appropriate • independence and other ethical requirements of the consultation levels of service. The Council’s approach procedures, we assessed the risk of requirements, which incorporate the document and requires an audit report to mitigate this risk is to be flexible and material misstatement and the Council’s independence and ethical requirements on the consultation document. I have adaptive to changes, while ensuring systems and processes applying to of Professional and Ethical Standard 1 done the work for this report using the compulsory work is done, especially the preparation of the consultation issued by the New Zealand Auditing staff and resources of Deloitte Limited. towards improving wastewater document. and Assurance Standards Board; and discharges and ensuring safer drinking We completed our report on 25 March We did not evaluate the security and • quality control requirements, which water. 2021. controls over the publication of the incorporate the quality control Opinion Uncertainty over Three Waters consultation document. requirements of Professional and Ethical Standard 3 (Amended) issued by the Reform Responsiblities of the Council and In our opinion: New Zealand Auditing and Assurance • the consultation document Page 7 outlines the Government’s Auditor Standards Board. intention to make three waters reform provides an effective basis for The Council is responsible for: In addition to carrying out all legally decisions during 2021. The effect that public participation in the Council’s • meeting all legal requirements required external audits, we carry out the reforms may have on three waters decisions about the proposed relating to its procedures, decisions, engagements in the areas of assurance services provided is currently uncertain content of its 2021-31 long-term consultation, disclosures, and other services relating to reporting under because no decisions have been plan, because it: actions associated with preparing and trust deed and registry audit that are made. The consultation document • fairly represents the matters publishing the consultation document consistent with our role as auditor. was prepared as if these services proposed for inclusion in the long- and long-term plan, whether in printed Other than these engagements, we will continue to be provided by the term plan; and or electronic form; have no relationship with or interests in • identifies and explains the main Council, but future decisions may result • having systems and processes in place the Council. issues and choices facing the in significant changes, which would to provide the supporting information Council and district, and the affect the information on which the and analysis the Council needs to consequences of those choices; and consultation document has been based. be able to prepare a consultation • the information and assumptions Basis of opinion document and long-term plan that underlying the information in meet the purposes set out in the Act; Heidi Rautjoki the consultation document are We carried out our work in accordance and for Deloitte Limited reasonable. with the International Standard on Emphasis of Matters Assurance Engagements (New Zealand) • ensuring that any forecast financial On behalf of the Auditor-General, 3000 (Revised): Assurance Engagements information being presented has been Dunedin, New Zealand Uncertainty over the delivery of Other Than Audits or Reviews of prepared in accordance with generally the capital programme Historical Financial Information. In accepted accounting practice in New meeting the requirements of this Zealand. Pages 5 and 6 outline that the Council standard, we took into account We are responsible for reporting on the is proposing a significant increase in particular elements of the Auditor-

AND FINALLY Scan this code with your smart We are also seeking feedback on the following that relate to the Long Term Plan 2021/31: phone to take you straight to our website. • Draft Significant & Engagement Policy 2021 • Proposed Schedule of Fees & Charges 2021/22 • Proposed Rating Policies 2021/31

KEY DATES AND WHAT NEXT.... 27 April: Have your say, tell us what you think of our plans before 27 April. 6 May: An opportunity to explain your submission to the Mayor and Councillors. 20 May: Council decides changes to the draft Long Term Plan 2021/31 17 June: Council meets to adopt final Long Term Plan 2021/31 and to strike the rates

14 OUR PLACE CLUTHA DISTRICT HAVE YOUR SAY... Your name: Your phone:

Your address: Would you like to speak to Council about your submission on 6 May 2021?

Your email: Yes (in person) Yes (via Zoom) No Note that submissions are public information. This supports our drive to be as transparent as possible. If there are any personal details you don’t want made public please let us know Tell us what you think - we need to hear from you! Go to www.cluthadc.govt.nz to take part online, or fill out this form and post it (free) to: Freepost 253534, Clutha District Council, PO Box 25, Balclutha 9240. Or drop off at any CDC office. For queries contact us on 0800 801 350.

Not at all Very LIVING & WORKING How important is: important important FINANCES Any Comments? 1 2 3 4 5 6 Have we got our What do you think priorities right More Quality Housing of our proposed for the Clutha Healthy & Safe Communities mix for spending, District? Culture & Heritage borrowing and (Page 3) rating? Climate Change Infrastructure Investment How could we improve the mix? Environmental Footprint (Page 10) Filling Jobs

Any comments? RATES Option 1: What do you think Use reserves to keep rates down in the short of our proposed term (Council’s preferred option) approach to keep Option 2: rates down? Don’t use reserves to keep rates down in the (Page 8) short term Not at all Very INFRASTRUCTURE How important is: important important Any comments? Have we got our 1 2 3 4 5 6 priorities right for Discharges to the Environment infrastructure? Stormwater Protection (Page 5) Growth in Milton/Milburn/ Waihola MILTON Option 1: Safer Drinking Water How far should we Spend initial budget (Council’s preferred option) Council Housing Improvements go and how much Option 2: should be spent Mt Cooee Landfill Spend $1.75M more Efficient Road Maintenance improving Milton’s Option 3: Replacing Aging Infrastructure Main Street? Faster Bridge Replacement (Page 12) Spend $3M more Any comments? Any comments?

Not at all Very SUPPORTING How important is: important important LIVING & 1 2 3 4 5 6 WATER Option 1: WORKING IN Growing tourism Waihola playground A better source? Establish a new supply from the Clutha River CLUTHA PROJECTS Owaka pool (Page 7) (Council’s preferred option) (Page 13) Project Bruce Option 2: Lighting up the bridge Continue to source water from the Waitahuna Supporting West Otago Health and Tuapeka rivers Any comments? Any comments?

HAVE MORE FEEDBACK? FEEL FREE TO ATTACH ANY OTHER ADDITIONAL INFORMATION

Let’s talk Tell us: What you think of our plans before 27 April 2021 Kia Korero 15 16