Porirua – Our Place, Our Future, Our Challenge Let's Kōrero

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Published March 2021.

Porirua City Council 16 Cobham Court PO Box 50218 Porirua 5240

This document is available on our website poriruacity.govt.nz Porirua – our place, our future, our challenge Let’s kōrero

Consultation Document for the proposed Long-term Plan 2021-51 Message from Ngāti Toa Rangatira E te iwi e noho nei i te riu o Porirua, tēnā koutou katoa The development of the city's Long-term Plan 2021-2051 will bring changes to our city that we will be proud of. Between now and 2051 we will see Porirua transform into a vibrant and exciting place to be for residents and people who choose to work here. We are blessed with hills, waterways, Te Mana o Kupe bushwalks and two magnificent harbours, Porirua and Pāuatahanui, as well as rich histories all anchored by Te Matahourua, the anchor left here by Kupe. As a challenge to all of us – we must look after our environment and look after each other, especially our tamariki and rangatahi. Nou te rourou, naku te rourou ka ora ai te Iwi With your contribution, and my contribution the people will thrive Taku Parai Chairman, Te Rūnanga o Ngāti Toa Rangatira

2 Consultation Document for the proposed LTP 2021-51 Contents

Mai i tō Koutou Koromatua 4 From your Mayor Executive summary 8 Rates 10 The challenges for our city 11 Your views 16 Investment in the 3 waters – drinking water, wastewater 17 & stormwater 1. Investing in infrastructure 17 Protecting our harbour 19 2. Harbour and catchment restoration 19 Preparing for growth 20 3. Multi-use community facilities 20 4. Cultural Arts Centre 22 5. City centre parking 24 Affordability 25 6. Moana Court housing 25 7. Village Planning Programme 28 8. Te Rauparaha Arena hours 30 9. Living wage to contractors 32 10. How to go about balancing the budget 33 Our climate change response 34 Responding to Covid-19 34 Wellington Regional Growth Framework 35 Policies and strategies 36 Development Contributions Policy 36 Fees and charges 36 Financial Strategy 37 Infrastructure Strategy 42 Independent Auditor’s Report 48

3 Mai i tō Koutou Koromatua From your Mayor

$800m on What’s wastewater, stormwater in the and drinking water pipeline? $323m on roading

It’s never been more important that we understand under pressure infrastructure to public transport and the choices and challenges that confront us as a city. parking in the CBD. What’s your view on the range of This Long-term Plan (LTP) consultation document proposed solutions set out here? spells them out clearly. Now, we need your help. In order to meet our obligation to balance budgets, Simply put, the LTP looks out thirty years and asks: we offer an alternative approach to funding Council “how do we best make sure infrastructure and activities and critical investments. Do you agree services keep pace with a growing city?” with the idea of ‘smoothing’, which will spread rates increases over the first three years of the LTP? For public safety, quality of life and harbour health, there is no greater priority than investing in our We’re also seeking your views as to what we do critical three-waters infrastructure – drinking water, with the Moana Court social housing. Do you agree wastewater and stormwater. That’s why we are with the plan to sell the 26 social housing units – planning to spend $800 million over the next 30 years valued at more than $3 million – to the Crown or to improve the pipe network, ensure water quality for a community housing provider, as long as tenants our drinking water, protect our environment (streams, are protected? harbour and coast) address flooding hotspots, ensure There are also proposals in the LTP for new the integrity of our wastewater system and meet the community assets, including a Cultural Arts Centre in challenge of climate change. the city, and multi-use community facilities in Eastern In roading, we are proposing to invest $323 million Porirua (2024-2028), in the North (2031-34), to improve resilience and safety across the network, Tītahi Bay (2035/36) and Whitby (2038/39). with a focus on high-risk corridors, pedestrian Porirua City is going strong – but keeping pace crossings and school zones. with growth creates budget pressures that directly We have significantly increased our overall impact your household rates. It’s a balancing investment in infrastructure from the previous LTP act, and recent events are a reminder that to improve our 3 waters and transport networks. underinvestment carries its own costs. Your input is critical to getting this right. So please For Porirua to thrive, we need more than just a plan. take the time to go through the document, discuss it To be successful, the plan must enjoy broad support with family and neighbours, and let us know how you in the community. That’s why we’re urging you to think the Council can best address these challenges. have your say now. Your input is critical to getting this right so please take the time to go through the Given projected population growth, Porirua City document and let us know how you think the Council will need more than 10,000 new dwellings over the can best address the challenges we face. next 30 years. This creates additional demand on everything from precious water resources and our Ngā mihi, Anita Baker

4 Consultation Document for the proposed LTP 2021-51 A snapshot of our major projects over the next 30 years

3 waters Wastewater pipe and pump station renewals: $359m Wastewater storage tanks: $120m Wastewater treatment plant: $45m Installing water meters: $14m Stormwater improvements at flooding hotspots: $10m

Transport Road resurfacing Access Kenepuru Road, and rehabilitation: footpath, and cycleway $190m improvements: $8.6m

Parks Aotea Lagoon renewals: $3m

Property New community facilities across the city: $24m

Resource recovery & waste Additional capacity at Spicer Landfill: $26m

5 Our focus

It’s time to invest in our ageing infrastructure, to improve the health of our harbour, beaches and the city as a whole. We’ve heard from you that this is a priority, and that’s what has shaped this Long-term Plan.

What we’re What we’re What this could What it costs faced with doing about it look like for you

» Ageing pipes Infrastructure investment of To fund this and other Average weekly $800 million vital work requires: rates increases: » Growth over 30 years For example, if your house Weekly is valued at: increase: » Climate change 8.05% for the average next $755K +$6.16 rates 3 years increase $644K +$5.35

But, if all consultation $427K items are accepted +$3.77 this could drop to 7.81%

6 Consultation Document for the proposed LTP 2021-51 7 Executive summary

Our vision for Porirua City is that it is an even greater manages what comes out of the pipes, our stream- place to live, work, and raise a family. This means side restoration programme will help the health of we must look after the wellbeing of our people, our our harbour through improvement of the catchment harbour and our home. that drains into it. We want to provide the right services and facilities We have become increasingly aware of the need for everyone now and in the future by: to address the impacts of climate change in everything we do. In 2019 our rangatahi approached • Investing in 3 waters infrastructure and Council and asked for change. In response Council catchment restoration developed a Climate Change Strategy, “Rautaki o te • Proactively responding to the climate crisis ao Hurihuri”. Adopted in 2020, this strategy outlines • Advocating for and providing a safe, healthy what we will do to reduce greenhouse gas emissions and thriving community and what changes are needed to make our services • Putting children and young people at the and infrastructure more resilient. heart of the city. The investment in our city isn’t just about meeting This LTP maps out the needs of the city for the next the current needs of residents, it also prepares us 30 years. It builds on the guiding principles and for future residents. Our city is projected to grow policies in the Growth Strategy, Climate Change by nearly 30,000 residents (more than 10,000 Strategy, and Proposed District Plan. This LTP isn’t households) over the next 30 years. We need more business as usual, it takes into account our changing homes, but we also need to meet the social and city. It is confronting, but we believe realistic if we are cultural needs of our expanding population. This to address the challenges we now understand are could be done, for example, by building a cultural coming our way. arts centre and new multi-use community facilities in high growth areas. This LTP is focused on: The Council is committed to supporting the • The 3 waters – drinking water, wastewater community and maintaining our services during the and stormwater Covid-19 pandemic. In September 2020 the Council • Our harbour adopted the city’s Covid-19 Recovery Plan to help us • Climate change respond to the ongoing and emerging impacts • Preparing for growth of Covid-19. • Responding to the Covid-19 pandemic In order to fund our infrastructure investment we • Affordability. need to take on more debt. While this borrowing is unavoidable, we have been careful to keep debt As a city, we need to significantly invest in our levels affordable now and in the future. We have infrastructure. We are upgrading our wastewater taken a close look at what we do, and how we do and stormwater networks to ensure they are able it, to find savings. We have managed to keep the to protect our communities and harbour. We are average rate increase to 8.05 per cent for existing improving our drinking water network so we can ratepayers, without delaying investment in our city. continue to provide reliable and sustainable access to clean water. We are also investing in our transport Central government has undertaken a review network to meet the needs of our growing city. of the 3 waters and changes in the supply and management of the 3 waters is coming. Whatever We are investing in Te Awarua-o-Porirua Harbour as the changes may be, we will remain dedicated to it is our greatest environmental taonga. Alongside maintaining high quality services and ensuring our investment in the 3 waters infrastructure, which infrastructure meets the needs of the community.

8 Consultation Document for the proposed LTP 2021-51 Our vision Porirua City, a great place to live, work, and raise a family Community outcomes

Our people Access Genuine Young to quality We are diverse and inclusive Safe, active participation people at the education – a city with lifelong and healthy in city centre of our and diverse economic and social communities decisions whanau employment opportunities opportunities

Our harbour We have a healthy harbour A place of A place to recreation Diversity of and catchment – a thriving A taonga natural environment gather food and organisms enjoyment

Ready for growth Our home Diverse Low Thriving – infrastructure, housing carbon We build to last and economy homes options community adapt to change and business

Sustainable use of resources Connected and accessible transport

Strategic priorities In the short term Council will focus on four things of key importance

Investing Advocating Putting Proactively in 3 waters for and providing children and responding infrastructure a safe, healthy young people to the and catchment and thriving at the heart climate crisis restoration community of the city

Partnering with Ngāti Toa Rangatira in all we do.

9 Rates

The LTP sets out the budget for Porirua City. It Where funding will come from proposes how we plan to allocate funds to provide Development Contributions 1% council services. The majority of funding for these services comes from rates, so it’s worth taking the Grants & subsidies time to talk about what rates are, how they’re 12% calculated, and how they’re allocated. We are proposing an average rate increase of 8.05 User Charges Funding Rates Income per cent for existing ratepayers, with the assumption 20% LTP that the number of ratepayers has grown by 1 per 2021/22 67% cent, resulting in an 9.05 per cent increase overall. Investment Income What are rates? 0% Rates are a tax on property collected by local and regional councils. Your rates pay for council services Rates are the way that people who live in Porirua City and activities. We receive income from other sources contribute to the maintenance and development of such as fees, user charges, and subsidies. After the public assets and services they share with their taking these into account, rates pay for services and neighbours. All property owners pay rates, including activities that have a public benefit. Kāinga Ora and other government departments.

How are they calculated? Rates are calculated annually through the LTP and the Annual Plan. Put simply, we calculate the cost to run the city and divide that cost among all the properties. The amount of rates you pay depends on where you live, and the size and value of your property. Some properties will also have to pay a targeted rate. This is applied when a particular service is provided within a limited area, and it’s unfair to split the cost of this service across the entire city. Where are your rates spent? The following graph shows the proposed rates funding for the services we provide. The LTP provides more detail on how these services will be delivered.

Climate Change Response 0% Emergency Management 1% Regulatory Standards 2% Te Awarua-o-Porirua Harbour & Catchments 1% Democracy 4% Wastewater 15% City Partnerships 4% Economic Development 4%

Libraries 4% Parks & Reserves 15% Pātaka 4% Resource Recovery & Waste 4% Stormwater 5% Drinking Water 10% Environment, Building & City Planning 7% Transport 9% Arena, Pools & Events 10%

10 Consultation Document for the proposed LTP 2021-51 The challenges for our city

The LTP maps out our plans and direction for the city Investment in the 3 waters – over the next 30 years. In planning for the future, it is necessary to consider the challenges Porirua and its drinking water, wastewater residents are currently facing. & stormwater As the number of homes in our city grows, we need One of the city’s most significant challenges is to protect the environment and plan for population improving the performance and condition of our growth in the context of climate change. We need ageing 3 waters infrastructure system. A well- to be resilient and adaptive so that we can respond functioning 3 waters system is vital for the health of to both the challenges we know about, and the our residents and the environment. A major focus of unexpected, such as the Covid-19 pandemic. We are this LTP is investment in our 3 waters infrastructure also wanting to invest in people’s wellbeing, that is, to make sure it meets the needs of the city now and planning to provide facilities to meet the broader into the future. social and cultural needs of our residents as we grow. A lot of the city’s infrastructure has reached the end Our planned investment has been influenced by a of its useful life. This is particularly the case for the number of factors the Council is directed by and/or 3 waters system, which accounts for 56% of our total required to respond to. The most significant of those infrastructure budget for the next 30 years. Of the influences are: 3 waters, wastewater needs the most investment • Transport modes and change in the transport to reduce the harmful effects of leaking pipes and network when Transmission Gully opens wastewater overflows on our harbour and the wider environment. • Housing demand, house and rent prices and a growing city We plan to achieve this by building wastewater • Central government’s National Policy Statements storage tanks at key locations throughout the city to regarding urban development and freshwater better manage the volume and flow of waste and management to accommodate additional population growth over time. The storage tanks will allow time for our sizable • The changes in national climate change policy renewals programme to be implemented, which will and weather-related events on the ground improve the overall condition of the pipe network. • Community expectations around safe drinking water and a healthy harbour Kāinga Ora (formerly Housing New Zealand) is undertaking a significant regeneration within • The four wellbeings focus by central government Eastern Porirua in partnership with Council. In the • The impact of Covid-19 first 10 years of the LTP there is a large dependency • Affordability. on Kāinga Ora to undertake significant replacement of 3 waters infrastructure within the East. This LTP seeks to provide good quality services and robust infrastructure without putting undue While there’s a lot of work to be done on the public burden on ratepayers. This LTP outlines our proposed network owned by Council, we also need to address infrastructure investment. We want to know if you issues with private connections that feed into the think we have got the balance right. network. By working on improvements together we can fix the leaks and cross-connections causing pollution of our waterways. One way we are doing this is through the “Knowing your pipes” initiative which will see Wellington Water Limited crews checking connections between the private and public networks. If there is any cost to fix faults on private property, there will be the ability for owners to apply for assistance to spread the cost via council rates.

11 There is also an ongoing need to reduce water usage mean changing behaviours towards water use and in Porirua and improve the sustainability of our water more efficient detection and repairs of water leaks. sources. On average we use 323 litres of drinking We believe installing water meters from 2025 is water each day for every resident. When we consider essential. This will help us identify where leaks are that Porirua shares its drinking water with all the so they can be fixed. It will also provide residents residents of the Hutt Valley and Wellington City, with a way to monitor and reduce their water usage. that the region is expecting significant population Without the information from water meters we won’t growth, and that we can expect more droughts as know if we’re improving. a result of climate change, it is obvious that we need to manage our use of drinking water better. This will

Central Government is reviewing how to improve the regulation and supply of drinking water, wastewater and stormwater. The Government expects to make substantive decisions in April/May 2021. It is expected that Councils will be asked to consult with their communities in late 2021 whether they should join one of the new water service delivery entities. We intend to consult on this decision, once Central Government has made their decision in April/May and more facts available, separately to the consultation on this LTP. For Councils that participate in the reforms, transfer of responsibilities, assets, is likely to occur from 2023/24 onwards. As the reforms are yet to be finalised, this LTP has been developed under the assumption that the Council will remain responsible for the ownership and maintenance of our 3 water assets. Irrespective of our future role in the supply and management of the 3 waters, the health and wellbeing of our residents and environment will remain a priority. For more information on the Government reforms visit dia.govt.nz/three-waters-reform-programme

Protecting our harbour protecting and restoring the health of our harbour is a central part of this LTP. Toitū te marae o tane, toitū te marae o tangaroa, toitū te iwi Our harbour depends on the health of our streams and is impacted by how we use our land. It is reliant Protect and strengthen the realms of the on fit-for-purpose 3 waters infrastructure that is in land and sea, and they will protect and good condition and meets compliance standards. strengthen the people We are addressing leaks and cross connections Te Awarua-o-Porirua is our harbour and a taonga between wastewater and stormwater to prevent to Ngāti Toa. untreated sewage contaminating our waterways. We are committed to restoring the health of the We are also committed to directly improving the harbour as it is important as a cultural, recreational health of our streams and harbour by planting and natural resource. 280km of riparian margins to reduce silt, sediment The health of the harbour has declined as Porirua and contaminants from entering our harbour. has grown alongside inadequate practices that Porirua is growing and we know that urban have not helped protect it. As our city continues to development is a major contributor to the poor grow it has become urgent to respond. This is why health of the harbour. There are a range of provisions

12 Consultation Document for the proposed LTP 2021-51 in the Proposed District Plan to reduce the impacts Being ready for growth of growth through improved development practices. Provisions around stormwater neutrality, water Porirua City is expected to experience significant sensitive design and sediment control plans are population and housing growth over the next 30 examples of the Proposed District Plan’s intent to years. Our forecasts show that the city will grow by improve the health of the harbour. nearly 30,000 residents over this time period. This growth requires careful planning and investment. Our climate change response Our challenge is to enable population and housing growth, while protecting and improving the natural Porirua City declared a climate change emergency environment and community wellbeing. Where on 26 June 2019. There’s still a lot of work to do in possible a green approach is being integrated into order to understand the impact of climate change the design of infrastructure – like the use of wetlands on our city and what steps we need to take to ensure to reduce the impact of excess stormwater. Porirua is resilient. The impacts of climate change are already being felt with increasing temperatures, Population growth will also require investment in sea level rise, and extreme weather events. community facilities to support social and cultural wellbeing. We’re proposing new community multi- Climate change is a long-term issue for Porirua. purpose facilities across the city in a staged way to While we don’t have all the answers, we need to meet population growth. start planning our responses now. Climate change will affect levels of service and infrastructure Where growth is occurring, we are using it as an investment decisions. Our climate change strategy opportunity to build new infrastructure and upgrade Rautaki o te ao Hurihuri lists actions that will be existing infrastructure with the harbour front of mind. undertaken over the next few years. These actions We are working closely with developers and other are intended to support mitigating the effects agencies to ensure that investments in infrastructure of climate change by reducing greenhouse gas provide sustainable and fit-for-purpose solutions emissions, build a better understanding of the likely across the city. impacts and to prepare the city for those impacts. The purpose of the climate change strategy is to Responding to Covid-19 make sure we’re doing the most important things first, so the resources we need (time, money, and Porirua City is committed to supporting the people) are allocated appropriately. community and maintaining our services during the Covid-19 pandemic. We have learnt a lot about our Where the impacts of climate change are well city’s vulnerabilities over the last twelve months and understood we have factored them into specific we want to ensure we are well placed to enable infrastructure projects, such as sand dune restoration safe, healthy, resilient communities and a thriving and flooding mitigation. A planned risk assessment economy. In September 2020 the Council adopted of the impact of climate change on the city will the city’s Covid-19 Recovery Plan that provides further inform future infrastructure investment us with the ability to respond to the ongoing and decisions. emerging impacts of Covid-19.

13 Affordability Given the impacts of Covid-19, increasing house prices and rent costs in the city and the general cost of living, some may struggle to afford rate increases. We have been careful to ensure that the cost of services is achievable in terms of both Council debt and the impact on ratepayers. We have made some hard decisions about what projects we need to invest in and when. Each asset management plan has had to be reprioritised and projects rescheduled to ensure we can deliver an infrastructure programme that addresses the biggest issues in the city without putting undue pressure on ratepayers. The table below shows the proposed rate increases for 2021/22 (Year 1 of the LTP). For a breakdown on what makes up the rates, and a more detailed indication of rate increases please see page 39.

Average Average $ change per Group (% increase) ($ increase) week in rates Residential 8.04% $278.11 $5.35 Rural (less than 50ha) 16.66% $562.50 $10.82 Rural (50ha or greater) 10.75% $663.56 $12.76 Hongoeka community 8.84% $148.14 $2.85 Commercial 7.31% $626.59 $12.05 Industrial 7.34% $655.40 $12.60 Motels 9.59% $1,999.07 $38.44 Shopping plaza 20.88% $27,328.48 $525.55

We have also included tables which provide comparisons between our different rating categories. The tables below relate to a property with Capital Valuation of $1 million. They provide an estimate of rates for 2021/22 as a percentage of Capital Value, and the average increase in percentage and dollar terms.

Capital General Targeted General Rates Total rates Group Value Rates* Rates* Total Rates as a % of CV as a % of CV Residential $1,000,000 $3,683 $1,455 $5,139 0.37% 0.51% Rural $1,000,000 $2,947 $589 $3,536 0.29% 0.35% Farming Median $1,000,000 $2,578 $691 $3,269 0.26% 0.33% Commercial $1,000,000 $11,419 $3,194 $14,613 1.14% 1.46% Motels $1,000,000 $5,231 $10,481 $15,712 0.52% 1.57% Shopping Plaza $1,000,000 $11,419 $1,778 $13,197 1.14% 1.32%

*Targeted rates include kerbside recycling, water, city development, uniform annual general charge, and wastewater.

Capital 2020/21 2021/22 Average Average $ change per Group Value Rates Rates (% increase) ($ increase) week in rates Residential $1,000,000 $4,733 $5,139 8.58% $406 $8 Rural $1,000,000 $3,059 $3,536 15.60% $477 $9 Farming Median $1,000,000 $2,991 $3,269 9.29% $278 $5 Commercial $1,000,000 $13,615 $14,613 7.33% $998 $19

14 Consultation Document for the proposed LTP 2021-51 Let’s kōrero Porirua!

Porirua is our place, and we want to plan it with you – every step of the way.

This Consultation Document provides a summary of our LTP 2021–51. Our formal consultation runs from 26 March to 27 April and the Mayor, councillors and staff will be available to talk with you online and at locations throughout the city about Porirua’s future.

Engagement Online Q&A Sessions poriruacity.govt.nz/ltplive Have your say 31 March 7–8pm by 27 April 6 April 12–1pm 14 April 7–8pm Making a submission is easier than you think and you can do this in many different ways. 20 April 12–1pm Submitting doesn’t take long! 7 April 7–8pm: Community workshop North – Mana Cruising Club 9 April 10am–12pm: Maata Waka, Maraeroa Go online Marae, 216 Warspite Ave, Waitangirua Make an online submission: poriruacity.govt.nz/ 10 & 11 April 12–2pm: Community drop-in ltpsubmissions – The Spine, Pātaka Write to us 13 April 7–8pm: Community workshop East – Nuanua Kindergarten, 5A Warspite Avenue, Make a hard copy submission – fill in the feedback Cannons Creek form that accompanies this document (or download a copy from poriruacity.govt.nz/ltpsubmissions) 16 & 17 April 10am–1pm: Community drop-in – and Freepost, email or drop it into us. North City Mall (Lower Level opposite Mirrou) Email your scanned feedback form to 18 April 10am–12pm: Community drop-in – [email protected] North City Mall (Lower Level opposite Mirrou) Postal address Freepost, Long-term Plan, 21 April 7–8pm: Community workshop North – Porirua City Council, PO Box 50218, Porirua 5240. Pāuatahanui Lighthouse Cinema, 3 Paekakariki Hill Physical address Ground Floor, Administration Rd, Pāuatahanui Building, 16 Cobham Court, Porirua 5022. 22 April 7–8pm: Community workshop West – Porirua Club, 1 Lodge Pl, Porirua City Centre

8 April Iwi Consultation 30 March Youth Forum 31 March 10–11.30am: Refugee & Migrant Community – Porirua Gospel Chapel, 88 Hereford St, Cannons Creek. For more information on where you can kōrero with the Mayor and councillors – go to our website poriruacity.govt.nz

15 Your views

The LTP will shape the future of our city and we want to hear what you think about our plans. "In addition to wanting to consult on these issues, we are using this process to capture your feedback on our 3 waters infrastructure plans to ensure ongoing delivery of services in light of our ageing pipe network. We specifically want to know your opinion on proposals to address the challenges we are facing. Some issues ask you to think about the big picture – for example ways to protect our environment as we grow or the provision of new facilities in future growth. Others suggest small changes and have more modest implications. We have placed each issue under the corresponding focus area and briefly explained what we are proposing, why we are proposing it, and whether it will have an additional rate impact. We welcome your views and suggestions on our overall focus for this LTP and our more specific projects identified below.

The purpose of this Consultation Document is to seek your feedback on the following proposals. For each of the proposals we have indicated what the impact on rates will be. To make an online submission go to poriruacity.govt.nz/ ltpsubmissions or fill out the feedback form provided with this document.

The table below shows the impact on rates of each of the consultation items for the first three years of the LTP.

Average rates increase to existing ratepayers in first three years (smoothed) % 8.05 Consultation item – smoothed impact on first three years Impact % Harbour catchment restoration +0.5 Multi-use community facilities - Cultural Arts Centre - City Centre parking -0.77 Moana Court -0.07 Village Planning Programme -0.25 Arena swimming hours -0.05 Living wage to contractors +0.39 Average rates impact of consultation items if they all are adopted -0.24 Average rates increase to existing ratepayers if all consultation items adopted % 7.81

16 Consultation Document for the proposed LTP 2021-51 Investment in the 3 waters – drinking water, wastewater & stormwater 1. Investing in infrastructure Background We have used the age of our assets to develop our In this LTP we are committing to investing more in forecast for our 3 waters assets. Age as a proxy for our core infrastructure and water networks. Our focus asset condition increases the degree of uncertainty is on renewing and improving the condition and on the level of spending necessary, and on which performance of our infrastructure to ensure it meets assets. Wellington Water will work on developing its future needs of Porirua’s people and environment. understanding of asset condition which will improve The Council considers it is essential work to do for the reliability of future investment needs. environmental, public safety, quality of life and We are planning to spend $351 million on replacing growth reasons and we don’t believe there are our city’s aging 3 waters infrastructure in this LTP options not to invest. It means things like reducing over the 30-year timeframe. This represents 50 contaminants from stormwater, increasing the percent of the renewal’s investment recommended capacity of pipes, upgrading pipes, fixing leaks to by Wellington Water. We are spending $750,000 conserve water, monitoring water use more closely on condition assessment studies over the next 2 and reduced over flows from the treatment plant. years improving our detailed understanding of The vast majority of expenditure in this LTP is in our the condition of our water assets. This work will infrastructure. As a consequence, it’s important we involve CCTV inspection of pipes, inspections of check that you’re comfortable with our decision to plant and machinery and ongoing leak detection. focus on providing and improving our water-based This process will provide more accurate knowledge infrastructure significantly. and understanding of our assets condition and performance. Wellington Water manages our 3 waters networks along with other cities in the region. We have agreed The proposed $351 million investment will see us to regionally consistent investment priorities which replace our assets at a slower pace than what is are tailored to each city’s needs. recommended by Wellington Water, which could lead to an increased likelihood of failures. We are taking This investment will bring improvements across the steps to minimise such risks through better monitoring network across the 30-year timeframe. Continuing of the network and once the outcomes of the studies improvements to the city’s 3 waters network remains are known this may require us to reprioritise the a key priority because of the multiple benefits to proposed replacement programme. the community. We plan to invest $800 million on 3 waters assets over the 30-year timeframe. We would like to address our renewal backlog in full in this LTP, however because of our debt funding limits, An important part of this investment strategy focuses provision for unexpected events and the affordability on looking after our existing infrastructure. We need of rates we must balance our approach to investment. to carry out renewals at a pace that replaces network assets before they deteriorate to the point of failure. The following graph breaks down the 10 and 30 year Around 50 percent of Porirua’s three waters pipes spend of each of our water infrastructure groups into need to be replaced in the next 30 years. growth, level of service and renewals.

17 3 Waters Capital Expenditure – 10 and 30 years

700

600

500

400 $ millions

300

200

100

0 Stormwater Drinking Water Wastewater 10 Years 30 Years 10 Years 30 Years 10 Years 30 Years $000 $000 $000 $000 $000 $000 Growth - - 46,801 46,801 324 44,096 Levels of Service 20,687 20,687 22,407 26,727 132,405 310,903 Renewals 1,620 26,069 18,275 74,581 65,526 250,374 Totals 22,307 46,756 87,483 148,109 198,254 605,374

When we allocate projects into categories we must consider the primary purpose of the infrastructure. Renewals relate to the replacement of existing infrastructure at the end of its useful life or function. Levels of Service relates to addressing existing shortfalls in current infrastructure or changes to acceptable level of service. Growth projects relate to infrastructure used to support growth in the city. Growth expenditure may seem smaller than what you might think because a lot of the projects relating to growth are primarily related to levels of service improvements. We plan to invest $308 million on 3 waters over the next 10 years which is $205 million more than we planned in the previous LTP. This increase will have an average rate impact of 4.1% a year over the first 10 years of the LTP.

Your view » Do you support this focus and agree it is a high priority for the city? » If so, do you think this level of expenditure is about right?

Capital cost: $308 million Year/s: Capital spend across the first 10 years of the LTP Rate Impact: The additional $205 million spend, compared to the LTP 2018, results in an average rate impact of 4.1% per year across the first 10 years of the LTP. This means an increase of $163.24 per year for the average ratepayer. Debt Impact: As with our other LTP investments, the capital costs are fully loan funded with the cost of interest and principal repayments over a 40-year period. The relating depreciation and operating costs have been included in the base 8.05% rate increase.

18 Consultation Document for the proposed LTP 2021-51 Protecting our harbour Improving our 3 waters network isn’t the only thing we are doing to restore the health of our harbour. Our harbour and catchment restoration programme is another way we are aiming to do our bit to clean up the harbour and protect it from future damage.

2. Harbour and catchment restoration Background Streamside planting has the added benefits of Our harbour and its catchments are in poor health. restoring the ecological health of our city and capturing carbon dioxide. In recent years we’ve improved our monitoring of the health of our harbour and it has become clear that Our riparian planting programme is too slow. At sediment is entering it at a faster rate, wastewater the current rate it would take 43 years to complete spills have become more regular, and beach closures planting along all streams. We want to plant all the more frequent. Porirua catchments within 20 years as this will make a tremendous difference to water quality in the Harbour water quality can be restored but it will harbour. We estimate this will cost approximately take time. We have identified three ‘must do’s’ to fix $1.4 million a year. We want as much of this funding water quality in the harbour: as possible from external sources, so we are applying • Improve our 3 waters infrastructure network for $600,000 funding each year, primarily from central government. • Improve policy, regulation, and enforcement • Undertake riparian (streamside) planting along What we are proposing all of the streams in Porirua If Council is unsuccessful in obtaining the external Streamside restoration (riparian planting) is a funding, we propose fully funding the riparian very effective way of reducing the effects of planting programme ourselves to achieve our sedimentation and pollutants entering streams 20-year goal. Our current application to central and our harbour. You can think of our streams as government is for five years of funding from stormwater pipes which are doing a very poor job 2022/23. There will be other funding opportunities of filtering the water and run-off they collect before in the future, but we want to commit to fully funding depositing it in the harbour. Riparian planting is like the riparian planting programme, whether central a giant natural filter, ensuring what is deposited in government contributes or not. the harbour is filtered water.

Your view » Do you support the Council fully funding the riparian planting programme for five years if central government declines our application for funding?

Fully fund riparian planting programme for five years if funding bid unsuccessful

Capital cost: – Operational cost: $600,000 per year Year/s: 2022/23 to 2026/27 Rate Impact: This proposal would result in a 0.7% or $27.81 increase per year for the average ratepayer from 2022/23 (Year 2) to 2026/27 (Year 6). Debt Impact: This proposal has no impact on debt.

19 Preparing for growth Meeting the needs of a growing city requires careful planning. Adequately investing in the 3 waters and transport networks is vital, but we also need to ensure our services and facilities meet the wellbeing and social needs of the public. We would like your feedback on the proposals below.

3. Multi-use community facilities Background • Titahi Bay residents rely heavily on facilities Modern multi-use community facilities provide located in the city centre. A plan is needed to spaces that bring people together, with a focus ensure the neighbourhood community spaces in on building social connections. They are versatile Titahi Bay meet the needs of the community in facilities with features designed to meet the needs the future. of individuals and groups, such as library services and • The Whitby area currently has adequate flexible meeting places. provision of community facilities. However, as the area grows, particularly through the proposed Building community facilities are a large expense Judgeford Hills development, additional for the Council and take several years to complete. community space located centrally in the Whitby Plans to build new facilities must be forecasted area will be needed. accurately in the LTP to ensure funding is available when required. Where there are new developments What we are proposing around the city we will look to developers to help We are proposing the following: fund facilities. 1. Allocate $8 million ($11.335 million inflated) from Funding of $8 million has already been allocated to 2031/34 for a multi-use community facility in build a library and multi-use community space in the northern Porirua and $1.718 million a year from East. This is planned for delivery between 2024-28 in 2034/35 to run the facility. partnership with Kāinga Ora. 2. Plan for a Titahi Bay multi-use community facility, The Council recently undertook a piece of research allocating $4 million ($5.989 million inflated) for to understand what community facilities might be construction in the 2038/39 year and $1.044 needed in the future to accommodate population million a year from 2039/40 to run the facility. growth in the city. The research looked at what facilities we currently have at the neighbourhood, 3. Allocate $4 million ($6.488 million inflated) in year city-centre, and city-wide level. To read the full 2035/36 for construction of a Whitby multi-use report visit poriruacity.govt.nz/ltp/#documents community facility and $1.024 million a year from 2036/37 to run the facility. The research found that Porirua would require new facilities in the north and west at different stages over the next 30 years. • Significant population growth is projected in northern Porirua that will create the need for a multi-use community facility, ideally located within the new proposed development area (Plimmerton Farm).

20 Consultation Document for the proposed LTP 2021-51 Your view » Do you support the allocation of $8 million funding in the Long-term Plan for multi- use community facilities in northern Porirua? » Do you support the allocation of $4 million funding in the Long-term Plan for multi- use community facilities in Titahi Bay? » Do you support the allocation of $4 million funding in the Long-term Plan for multi- use community facilities in Whitby?

Invest in a multi-use community facility in Northern Porirua

Capital Cost: $8 million ($11.335 million inflated) Operational Cost: $1.718 million per year Year: 2034/35 Rate Impact: 1.06% increase per year from 2034/35 (Year 14) covering the ongoing operational and maintenance costs of the facility. This project would mean an increase of $76.73 per year for the average ratepayer from 2034/35 onwards.* No future Investment: If the project does not proceed then the rates from 2034/35 (Year 14) will be 1.06% lower and debt levels would be lower as Council would not need to borrow the $8 million budgeted cost for the project.

Invest in a multi-use community facility in Titahi Bay

Capital Cost: $4 million ($5.989 million inflated) Operational Cost: $1.044 million per year Year: 2038/39 Rate Impact: 0.54% increase per year from 2039/40 (Year 19) covering the ongoing operational and maintenance costs of the facility. This project would mean an increase of $44.42 per year for the average ratepayer from 2039/40 onwards.* No future Investment: If the project does not proceed then the rates from 2039/40 (Year 19) will be 0.54% lower and debt levels would be lower as Council would not need to borrow the $4 million budgeted cost for the project.

Invest in a multi-use community facility in Whitby

Capital Cost: $4 million ($6.488 million inflated) Operational Cost: $1.024 million per year Year: 2035/36 Rate Impact: 0.59% increase per year from 2036/37 (Year 16) covering the ongoing operational and maintenance costs of the facility. This project would mean an increase of $44.87 per year for the average ratepayer from 2036/37 onwards.* No future Investment: If the project does not proceed then the rates from 2036/37 (Year 16) will be 0.59% lower and debt levels would be lower as Council would not need to borrow the $4 million budgeted cost for the project.

*As with our other LTP investments, this is fully loan funded with the cost of interest and principal repayments over a 40-year period as well as depreciation and operating costs included in the rates impact. These numbers have been included in the LTP.

21 4. Cultural Arts Centre What we are proposing In the LTP we are proposing to allocate: Background • $250,000 in the 2021/22 year to fund a feasibility Porirua is a culturally diverse city and over the study for the Centre. $100,000 of this will be years we have often considered whether we have sought from external funding. the appropriate facilities to celebrate our diversity. Pātaka is a world-leading contemporary art gallery • We have not allocated capital or operational and museum dedicated to Māori, Pacific and costs for the proposed Cultural Arts Centre in the Aotearoa New Zealand culture. While Pātaka is often LTP. Our current analysis is that a suitable facility used as a performance space, it is not equipped for would cost $30 million to construct and could be large performances. included as early as 2023/24. In any such plan we will seek $6 million of external contributions A number of feasibility studies and partnerships have to help pay for construction. We estimate that it investigated whether Porirua needs a dedicated would cost around $1.1 million per year to run the Cultural Arts Centre, where it would be built, and facility from 2024/25, assuming construction took how it would be funded. For a variety of reasons place in 2023/24. the timing has never been quite right and these These cost estimates to build and run the Cultural proposals did not eventuate. However, the need for Arts Centre are provisional. A more detailed costing space where our culture can be expressed will be produced from the feasibility study. and celebrated, remains strong.

Your view » Do you support the proposal to build a Cultural Arts Centre in the city centre?

Proposal to build a Cultural Arts Centre in the city centre

Capital Cost: $30 million ($24 million debt funded) Operational Costs: $150,000 feasibility study ($100,000 external funding, for the $250,000 feasibility study) and ongoing operational costs of $1.1million per year Year: 2023/24 Rate Impact: We have not allocated capital or operational costs of the Cultural Arts Centre in the LTP. Successful adoption of this proposal would result in a 2.10% increase per year from 2024/25 (Year 4) on top of the 4.87% increase. This project would mean an increase of $101.54 per year for the average ratepayer in 2024/25 onwards. Debt Impact: If the project was to proceed the $24 million being the net costs would be debt funded. We have assumed a 20% third party funding would be received for this project. As with our other LTP investments, this is fully loan funded with the cost of interest and principal repayments over a 40-year period as well as depreciation and operating costs included in the rates impact. These costs would need to be incorporated into the LTP.

22 Consultation Document for the proposed LTP 2021-51 23 5. City centre parking Background on the short-term options, with workers moving their The way we get to and move around our city is cars several times a day around short-term parking affected by our roading network, public transport, spaces. and urban form. As Porirua grows demand for The cost of providing parking is currently 50% parking in the city centre is growing and will funded from ratepayers with the other 50% coming continue to grow. from enforcement and the small amount of paid Our public parking should provide reasonable and parking. Expanding paid parking would allow equitable access to the city centre (CBD part of more of the cost to be paid by users as opposed to the city) and support our wider transport, social, ratepayers generally. and environmental outcomes. Managing parking What we are proposing as part of the wider transport system helps to keep cities moving, promotes the ongoing development We propose developing a specific city centre parking and use of public and active transport, reduces management plan. The key features of this would be: our greenhouse gas emissions, and makes safer • Free short-term parking options for quick trips into pedestrian spaces. the city centre. We need more tools to manage parking demand in • An increase in long-term paid parking spaces. the city centre. As Porirua does not currently have • Relatively low-cost parking – we anticipate on-street paid parking, we can’t influence parking charges of $1-$2 per hour. behaviour the way other cities can. Currently there • Simple and flexible payment methods. are only two small areas of paid parking in Porirua and on-street parking is free. The limited long-term If Council decides to develop a city centre parking parking available in the city centre also puts pressure plan, we will need to update our Traffic Bylaw.

Your view » Do you think the Council should expand paid parking to include on-street parking in the city centre?

Expansion of paid parking

Capital Cost: $118,000 Operational Costs: Phased approach • Year 1 $258,000 additional revenue • Year 2 $687,000 additional revenue • Year 3 $924,000 additional revenue Year: 2021/22 Rate Impact: There is a phased approach to the implementation of paid parking. The additional revenue is not included in the LTP and would decrease the estimated rate increase of 8.05%. This project is estimated to result in additional revenue of: • $258,000 in 2021/22 – 0.33% ($13.04) decrease to rates • $683,000 in 2022/23 – 0.80% ($34.22) decrease to rates • $918,000 in 2023/24 – 0.99% ($45.54) decrease to rates Debt Impact: The capital costs for the project will be covered by the additional revenue received. There is no impact on debt from this proposal.

24 Consultation Document for the proposed LTP 2021-51 Affordability To offset the increased spending on infrastructure we have identified a number of savings we could make. These proposals will have an impact on the community through the services we provide and the rates you pay. We want to hear your feedback on each of them. 6. Moana Court housing Background Because councils are excluded from receiving the Unlike some other councils, Porirua City Council subsidy, ratepayers incur a higher cost to provide has a very small social housing portfolio. We own social housing than Kāinga Ora or Community 26 social housing units in the Moana Court complex Housing Providers. Several other councils have in Te Pene Avenue, Titahi Bay. These units provide chosen to sell their social housing assets to Kāinga people aged 65 or older with secure, low-cost Ora or Community Housing Providers because it accommodation that is close to shops and public makes economic sense to do so and doesn’t affect transport. the quantum of social housing available. The units are managed by Wellington City Council’s The Council is a very minor provider of social housing City Housing Unit because we are unable to provide in the city. Government plays a major role with over the range of support that the tenants need. While 2,000 social housing places through Kāinga Ora, with the units are compliant with Healthy Homes Ngāti Toa Rangatira managing around 900 of these. requirements, they require significant investment What we are proposing to bring them up to an acceptable standard for elderly tenants. Even with an upgrade, the quality The Council has two broad options available to of housing is low by today’s standards. it. We either continue to own Moana Court and investigate how to improve the facility, or we The current capital value of Moana Court is over stop owning social housing altogether. The Local $3 million. The cost of running Moana Court is Government Act deems social housing to be a around $80,000 more than we receive in rent each strategic asset. This means that if the Council wants year. It is estimated that more than $160,000 will to reconsider its ownership, we must consult through be required in the next two years for major repairs the Long-term Plan process. and improvements. The wellbeing of the existing tenants remains In 2014 the Government changed the legislation paramount, regardless of which option is chosen. underpinning social housing, allowing registered If there is any change in ownership or management Community Housing Providers to receive the of the units it must be to a registered Community Income-Related Rent Subsidy, which ensures Housing Provider or the Crown, and the existing that social housing tenants only pay 25% of their tenants continue to have access to social housing income in rent. This was previously only available at current or better tenancy terms. to Kāinga Ora (Housing New Zealand) tenants.

25 OPTION A: CONTINUE WITH THE STATUS QUO

This option means Council makes no changes to social housing for the near future. Council will continue to own the Moana Court complex and pay Wellington City Council, or another provider, to manage the tenancies. The consequence of this option for the Council is that there would continue to be an operating cost to ratepayers in excess of $80,000 per annum or up to $200,000 to $300,000 if the rental subsidy and the cost of capital are taken into account.

OPTION B: DIVEST THE SOCIAL HOUSING UNITS AND FOCUS ON SUPPORTING SOCIAL HOUSING IN OTHER WAYS

Under this option, the Council would divest (sell) its social housing but continue to support social housing through regulation, policy, advocacy and facilitation. This option would require Council to sell the Moana Court complex to another provider on the condition that: • the complex is sold to a registered Community Housing Provider or the Crown, and; • the existing tenants continue to have access to social housing at current or better tenancy terms. One of the major benefits to the tenants of this option is that community housing providers offer full wrap-around services to tenants focused on wellbeing, and access to the government rental subsidy. For Council the benefit of this option is that there would be a reduction in costs, enabling Council to redirect ratepayer funds elsewhere, and an improvement in Council’s level of debt.

OTHER OPTIONS CONSIDERED

We could choose to increase our focus on social housing provision. However, that would mean significant investment both in Moana Court, obtaining and developing more housing, and investment of staff time in managing a social housing portfolio. These would come at a cost to other Council priorities. Other parties can access government subsidies to deliver the same housing and services at a lesser cost than Council. We think there are better ways to support social housing. Other options that have been considered, but deemed not feasible were: • Selling the units on the open market with no restrictions on use. This option was not preferred as it provides no certainty that tenants will continue to be supported. • Retain ownership of the land and sell the units to a Community Housing Provider or Kāinga Ora, with a long-term lease for the land. This option was discarded as it does not enable the Council to release the value of the land. Council’s preference is to sell Moana Court to another Community Housing Provider or the Crown. This does not mean the Council would have no role at all in housing. We have an important role in the broader affordable housing issue, ensuring that there is sufficient land for development and redevelopment of housing, investing in the critical infrastructure that supports housing, and advocating for and supporting community housing providers in the city.

26 Consultation Document for the proposed LTP 2021-51 Your view » Do you think that the Council should sell Moana Court (to a Community Housing Provider or the Crown) or retain ownership?

Divest Moana Court ownership and sell to a Community Housing Provider or the Crown

Capital cost: $3.3 million current capital value Operational cost: $80,000 saving Year: 2022/23 Rate Impact: The sale of Moana Court is estimated to result in a cost saving of $80,000 per year from 2022/23 (Year 2) of the LTP. This initiative would result in a 0.09% or $4.01 per year decrease for the average ratepayer. Debt Impact: This proposal has no impact on debt. If we chose not to go ahead with the sale of Moana Court, we would likely incur ongoing yearly maintenance costs of 0.09% or $4.01 decrease for the average ratepayer. The current capital value for Moana Court is $3.3 million.

27 7. Village Planning Programme Background What we are proposing The Village Planning Programme started in 2003 We are proposing a new way for residents to in one village (Plimmerton) and over the years has access funding for community projects. Village expanded to 14 villages. Each village plan has planning groups, Residents’ Associations and any been developed by our communities to guide the other members of the community could submit future development of their villages and reflect their a project to the Annual Plan and/or Long-term aspirations. Projects have ranged from a new waka Plan. Councillors would decide which projects to ramp and dog park, to playgrounds and community fund, and if approved, the relevant team from the events like the Titahi Bay Beach Festival. Council would undertake the design, consenting and construction of the project in collaboration with the Targeted funding has been used to fund the community. villages programme and included capital funding, operational funding and funding for staff. This proposal is an alternative to the existing Village Planning model and is the current process used for In May 2020 Council agreed to pause requests other new projects from the community. Residents for funding new projects for two years to allow work directly with the team at Council that would completion of backlogged projects (post pandemic). deliver their project. The number and complexity of projects managed by It is proposed that existing Village Planning projects the Village Planning Programme has increased over will be completed, but any new projects would time, along with costs and regulatory requirements. be managed under the new funding model. The Village Planning have increasingly been delivering new funding model removes the targeted funding projects that overlap with the work done by other allocated to the Village Planning Programme. teams in Council.

28 Consultation Document for the proposed LTP 2021-51 Your view Which of the options for Village Planning do you prefer? 1. Keep the status quo and have residents and groups submit projects for funding from a dedicated Village Planning budget. 2. Adopt a new model where residents and groups submit projects for the Annual Plan or Long-term Plan. The appropriate team at Council will manage the project and councillors will have final approval of projects. The current funding allocated to the Village Planning Programme will be removed.

Rate impact Moving from the Village Planning Programme to the proposed model would remove the funding currently allocated to Village Planning in the LTP. $600,000 in capital costs would be removed from the budget and $275,000 of ongoing operating and staff costs would be saved, resulting in a reduction in rates as indicated below. The actual impact on rates will depend on what projects get adopted under the proposed model and these would be assessed by councillors alongside all other projects. The reduction in rates below only reflects the money saved from ending the Village Planning programme.

Adoption of a new model for Village Planning

Capital Cost: $600,000 saving Operational Cost: $215,000 average saving per year Year/s: 2021/22 Rate Impact: Adoption of this model would result in average yearly cost savings of $215,000 across the first three years of the LTP. This is a 0.24% or $9.53 per year decrease for the average ratepayer from 2021/22 (Year 1). We have not factored this cost saving into the LTP, it is assumed the average rate increase of 8.05% would go down by 0.24%. Debt Impact: The $600,000 capital expenditure relating to Village Planning is already incorporated into the LTP. If the proposal is adopted, then Council would not be required to borrow this amount.

29 8. Te Rauparaha Arena hours Background This will impact current users including pool users The Council has explored a number of cost saving and fitness members. It is not proposed to reduce opportunities. One option we have identified is to admission fees or membership fee in conjunction reduce the opening hours of Te Rauparaha Arena. with the reduced hours as this will not result in any cost savings. As this is a reduction in the level of Reducing the opening hours has an impact on the service we provide to the public, we want to hear level of service provided to the community, and in your feedback. accordance with our Significance and Engagement Policy we need to consult with the public on this. What we are proposing We are proposing to open Te Rauparaha Arena at 6am each weekday, half an hour later then we currently do. This would mean no entry to pool, gym or stadiam until 6am. This is a reduction of 2.5 hours a week. We believe this will save at least $20,000 a year in operational costs from reduced salaries and wages.

Your view » Do you support the proposed reduction in opening hours at Te Rauparaha Arena?

Reducing operational hours of Te Rauparaha Arena

Capital cost: - Operational Cost: $42,000 average saving per year Year/s: 2021/22 Rate Impact: This initiative would result in yearly average cost savings of $42,000 from 2021/22 (Year 1) of the LTP. This is a 0.05% or $1.90 per year for the average ratepayer from 2021/22 (Year 1). We have not factored the reduced hours into the LTP, it is assumed the average rate increase of 8.05% would go down by 0.05%. Debt Impact: This proposal has no impact on debt.

30 Consultation Document for the proposed LTP 2021-51 31 9.Living wage to contractors Background wage to their staff working for Council on a regular Living Wage Movement Aotearoa NZ advocates for and ongoing basis (such as cleaners and security), a living wage that provides workers and their families there will be an increased cost to the Council with the basic necessities of life, to live with dignity estimated to be between $200,000 and and to participate as active citizens in society. From $400,000 per year. 1 April the minimum wage will be $20 an hour and What we are proposing the living wage is $22.10 an hour, a difference of more than $4,000 per year for a full-time worker. In the LTP we have not allocated the additional funding needed to extend the living wage to Since 2016/17 Council has increased the minimum contractors. We have two options: hourly wage for Council employees to bring them up to the living wage. Council’s lowest paid staff 1. Maintain the status quo and only Council staff are are now earning the living wage, which is updated paid the living wage. This will have no additional on 1 July each year to match the living wage as cost but will mean contractors may receive less part of its annual salary review process. than the living wage. The Living Wage Movement Aotearoa NZ has 2. Commit to paying the living wage to new continued to lobby for living wage to be extended contractors and to existing contractors as to staff employed by contractors of the Council. If contracts come up for renewal. This will have Council requires our contractors to pay the living an increased cost to the Council.

Your view » Do you support the Council extending the living wage to contractors?

Payment of living wage to contractors

Capital cost: - Operational Cost: $300,000 average per year Year/s: 2021/22 to 2023/24 Rate Impact: This initiative would result in an average of $300,000 per year increase across the first three years of the LTP. This is a 0.34% or $13.60 per year for the average ratepayer from 2021/22 (Year 1). Debt Impact: This proposal has no impact on debt.

32 Consultation Document for the proposed LTP 2021-51 10. How to go about balancing the budget Background What we are proposing We need to adequately fund our services and invest We are proposing a further one-year extension of in our infrastructure, but we also need to manage the balanced budget, meaning we won’t balance our debt and keep rates at an affordable level. the budget until 2023/24. Achieving the balanced The Local Government Act 2002 requires that we budget in 2022/23 as planned would require balance our books. This means we need to keep our double-digit rate increases. To provide more rates at a level that ensures we aren’t borrowing to consistent rate increases we are also proposing to pay for our day-to-day expenses. smooth rates across the first three years of the LTP. This means we will avoid a large rate increases in the The Act does allow for Council to not achieve a next two years, but higher rates in 2023/24. balanced budget if it resolves that it is financially prudent to do so. In the 2018 LTP we planned to The impact on rates of extending the balance budget balance our budget in 2022/23. and smoothing is illustrated in the graph below.

Rate Increase to existing ratepayers

6 %

0 2021/22 2022/23 2023/24

Balanced budget 2022/23 Balanced budget 2023/24

Your view » Do you support extending the balanced budget by one year out to 2023/24 and smoothing the rate increase across the first three years of the LTP?

Rate Impact: Our projected average rate increase of 8.05% has already factored in extending the balanced budget by one year and smoothing the rate increases across the first three years of the LTP.

33 Our climate change response

Over the next few years we will be taking action to help mitigate the effects of climate change and to prepare the city for the future impacts based on our recently adopted Climate Change Strategy. To action that strategy we have allocated $300k to undertake the analysis needed and get some key information about our greenhouse gas emissions. As we are still in the early stages of our response work we do not have any significant capital proposals in this LTP that we are consulting on. However, climate change is a long-term issue for all of us, so we will be sure to consult with you as our plans for response develop.

Responding to Covid-19

When we developed our Recovery Plan we consulted with the community to understand how we can help people get through the Covid-19 pandemic. While we are not making any proposals in this LTP, we remain committed to supporting the community and maintaining our services.

34 Consultation Document for the proposed LTP 2021-51 Wellington Regional Growth Framework

The Wellington Regional Growth Framework is a long-term vision for the region that identifies how the region will respond to growth at a spatial level. The Framework is a collaboration between local governments, central government, and māna whenua. Porirua City has worked collaboratively on the Framework and in so doing, has incorporated work we have already developed in our Growth Strategy and Proposed District Plan. Consultation on the Framework is being run by the Wellington Regional Growth Framework team, not Porirua City. If you have any feedback on the framework you can provide it to Wellington Regional Growth Framework team through their website wrgf.co.nz

The Draft Wellington Regional Growth Framework1 is a 30-year spatial plan for the Wellington-Wairarapa-Horowhenua region developed by local government, central government and iwi partners to provide regional direction for growth and investment. The region is facing a number of challenges with housing and urban development, transport and resilience for the future. These challenges are regional issues that are best dealt with in integrated ways The draft Framework delivers on the Urban Growth Agenda objectives of the Government, which includes improving environmental, employment, transport, and housing outcomes for communities. The draft Framework takes the National Policy Statement on Urban Development 2020 into account and provides a scenario for accommodating an additional 200,000 people and 100,000 jobs in the region over the next 30 years. The draft Framework’s objectives include: • enabling more housing development around transport nodes and at a higher density • developing more greenfield2 housing development that is higher density and connected to public transport • increasing housing capacity in major centres • investigating improved multi-modal west-east connections across the region. Work already underway by councils in the region including Porirua City Council’s Growth Strategy and Proposed District Planning have been taken into account. The draft Framework is consistent with Porirua City enabling more intensive residential growth throughout its existing urban footprint, especially within medium density residential areas in the Proposed District Plan. Porirua City Council has been working with other councils, central government and iwi on the Framework and we are working on a joined governance for implementation of the Framework, once finalised. Consultation on the Wellington Regional Growth Framework is being undertaken at the same time as the LTP, but not as part of our Council consultation. To participate in the consultation on the Framework, or for more information, please go to wrgf.co.nz/have-your-say

1 wrgf.co.nz/wp-content/uploads/2020/10/1246-GWRC-Draft-Framework-Report-SEPT-2020-14.pdf 2 ‘greenfield’ land is undeveloped land in a city or rural area either used for agriculture or landscape design or left to evolve naturally. Rather than building upon greenfield land, a developer may choose to redevelop brownfield, which have been developed but left abandoned or underused. Source Wikipedia.

35 Policies and strategies

Every three years we review a number of our major policies and strategies alongside the LTP.

Development Contributions Policy

As the city grows we need to invest in infrastructure to meet the needs of residents. This includes the 3 waters, roading, public facilities, and parks. The Development Contributions (DC) Policy allows us to collect funding from developments to help cover the cost of this infrastructure. This ensures the cost of providing infrastructure to support new developments doesn’t entirely fall on current ratepayers. We review the DC Policy every three years. We are reviewing the DC at the moment and will be consulting with the public later this year. You can find the current policy here:poriruacity.govt.nz/ltp/#documents

Fees and charges

We have been working hard to be more customer- focused and in some areas this has added costs to provide a better service for our customers. We think that it’s fairer if customers, who benefit directly from particular services, pay more so that these costs are not passed onto all ratepayers. We’re proposing to increase some fees and charges over the next three years – this will also help us to keep rate increases down. We are looking to increase most of our regulatory fees by 3 per cent and most other fees by 1.5 per cent each year for the next three years. Here are some of fees and charges we are proposing to change: • Aquatics centre charges for children relating to supervision system costs for health and safety; • Alignment of water connection fees to recover actual costs of services. We are looking to increase most of our regulatory fees by 3 per cent and most other fees by 1.5 per cent each year for the next three years. To take a look at these proposed changes go to our website poriruacity.govt.nz/ltp

36 Consultation Document for the proposed LTP 2021-51 Financial Strategy

Background and key areas of focus We are pleased with where we are at on our journey Our 2021 Financial Strategy continues to support the to balance the budget, with a financial position that principles we agreed with you in both 2018 and 2015. is basically sound and a strong balance sheet that is We said we would: supported by our Standard & Poor’s A+ credit rating. • have a prudent budget keeping debt levels Covid-19 and how everything changed manageable We have reviewed our financial approach to the • prioritise infrastructure investment LTP given the ongoing impacts of Covid-19. We have • ensure large costs are spread over generations, been mindful of ensuring that the cost of services so everyone who benefits, helps pay. balances Council debt and the impact on ratepayers and the community. We remain committed to these principles to provide the foundation for achieving a balanced budget Our Annual Plan 2020/21 was reviewed in light and moving to a more sustainable financial base. of the pressures we were facing, and the decision was made to keep to the rate increase at 4.98% The Financial Strategy covers the next 30 years to as outlined in year 3 of the 2018 LTP. This required 2051. By doing this we are promoting transparency Council to take on more debt to fund the increase in and clarity with what we need from our assets in core infrastructure cost due to the uncertainty that the long-term. Another advantage is that we can came from the nationwide lockdown. more effectively align with our 30-year Infrastructure Strategy and asset management plans. To view We saw a drop in revenue of $1.4 million and had the full Finance Strategy visit poriruacity.govt.nz/ to revise our budgets to account for decrease in ltp/#documents our estimated income. This ultimately resulted in a decrease in revenue of $1.9 million, or a 2.8% The LTP enables Council another opportunity equivalent average rate increase. We have also to review and reprioritise our approach to worked on identifying further savings opportunities core infrastructure investment and ensure our and efficiencies within our business model. communities are best placed for the future – particularly in regards to our water infrastructure. Hard decisions were made around our capital The focus has been on understanding the condition programme and what projects we could invest in. and performance of our assets, planning for the We have seen a significant increase in our spending growth in our City and ensuring we achieve the in core infrastructure to support the future of our environmental outcomes our community wants. city and had to balance this approach without We have reprioritised our planned spending and putting undue pressure on ratepayers. We must are proposing to invest $800 million on the 3 waters not only consider the financial constraints on our core infrastructure and $323 million on Transport infrastructure but the ability to deliver the capital in the LTP. program.

37 Balancing the budget as required by the Local Government Act 2002. We need to adequately fund our services and invest We agreed together to plan to balance our books in our infrastructure, but we also need to manage by 2021/22. our debt and keep rates at an affordable level. As part of the 2020/21 Annual Plan we extended the The Local Government Act 2002 requires that we balanced budget again to 2022/23, in light of the balance our books. This means we need to keep our impact of Covid-19. In order to ensure we balance rates at a level that ensures we aren’t borrowing to the need to adequately fund our services and the pay for our day-to-day expenses. affordability of rates we a proposing extending the In 2018 we talked with the community about how we balanced budget one further year to 2023/24. could get the right mix between affordable rating See how we plan to do this below. levels, debt management, and balancing our books

4 Balanced budget achieved 2

0 11/12 10/11 17/18 16/17 12/13 15/16 13/14 14/15 -2 18/19 20/21 31/32 21/22 41/42 50/51 30/31 19/20 40/41 27/28 26/27 37/38 47/48 36/37 46/47 25/26 32/33 24/25 35/36 23/24 22/23 42/43 28/29 33/34 38/39 45/46 34/35 39/40 29/30 43/44 48/49 44/45 49/50

-4 $ million -6

-8

-10

-12

-14

‘Porirua City balanced budget defined as Local Government (Financial Reporting and Prudence) Regulations 2014 definition modified to exclude costs and gains from asset sales and NZTA’s capital subsidies from the calculation of revenue’.

Rate increases and a consistent impact from revaluations. This will give us time to approach implement a number of efficiencies and revenue increases that will give us a solid platform from We are committed to balancing the budget and 2025 onwards. continuing to fund for depreciation and that’s why rate increases for the next three years may be higher It is worth noting that the rate level of 8.05 per cent than Council and residents would like. Rate increases for years 1-3 of the LTP is driven by our continual between years can be significant as the impacts of investment in infrastructure and the need to balance some assets and expenses vary. To soften this, we the budget by 2023/24. These contribute to the have decided to provide consistent year-on-year 8.05 per cent as follows: rate increases, rather than big highs and lows over the next three years. General increase 2.81 per cent We are looking to have consistent annual average Infrastructure 2.57 per cent rate increases for the first three years of 8.05 per Balanced budget 2.67 per cent cent through to the end of 2023/24, excluding any

38 Consultation Document for the proposed LTP 2021-51 Proposed rating impacts for 2021/22

Average 2020/21 2021/22 Average 2021/22 rates makeup Capital rates projected rates Value rates increase

($) ($) ($) (%) ($) ($) ($) ($) ($) ($) ($)

Water Waste- Recycling UAGC City General Total water

Residential

Lower Quartile 427,000 2,744.36 2,940.54 7.15% 392.94 496.59 57.60 423.96 1,569.45 2,940.54

Median 644,000 3,459.29 3,737.40 8.04% 392.94 496.59 57.60 423.96 2,366.31 3,737.40

Upper Quartile 755,000 3,826.65 4,146.85 8.37% 392.94 496.59 57.60 423.96 2,775.76 4,146.85

Rural

Less than 50 hectares

Lower Quartile 784,000 2,358.42 2,728.81 15.71% 423.96 2,304.85 2,728.81

Median 1,195,000 3,375.41 3,937.92 16.66% 423.96 3,513.96 3,937.92

Upper Quartile 1,555,000 4,265.29 4,995.88 17.13% 423.96 4,571.92 4,995.88

50 hectares & greater

Lower Quartile 1,120,000 3,004.48 3,304.86 10.00% 423.96 2,880.90 3,304.86

Median 2,493,000 6,173.83 6,837.39 10.75% 423.96 6,413.43 6,837.39

Upper Quartile 6,998,000 16,574.22 18,429.57 11.19% 423.96 18,005.61 18,429.57

Hongoeka community

Lower Quartile 220,000 928.15 990.60 6.73% 423.96 566.64 990.60

Median 544,000 1,675.94 1,824.08 8.84% 423.96 1,400.12 1,824.08

Upper Quartile 691,000 2,015.85 2,202.93 9.28% 423.96 1,778.97 2,202.93

Commercial

Lower Quartile 328,000 4,989.69 5,330.60 6.83% 392.94 496.59 423.96 282.33 3,734.78 5,330.60

Median 643,000 8,572.34 9,198.93 7.31% 392.94 496.59 423.96 554.21 7,331.23 9,198.93

Upper Quartile 1,384,000 16,977.77 18,274.61 7.64% 392.94 496.59 423.96 1,192.08 15,769.05 18,274.61

Industrial

Lower Quartile 372,000 5,495.87 5,877.13 6.94% 392.94 496.59 423.96 320.75 4,242.90 5,877.13

Median 675,000 8,933.50 9,588.90 7.34% 392.94 496.59 423.96 581.62 7,693.79 9,588.90

Upper Quartile 1,168,000 14,531.41 15,633.19 7.58% 392.94 496.59 423.96 1,006.43 13,313.27 15,633.19

Motels

Lower Quartile 1,476,000 17,163.28 18,831.56 9.72% 9,435.18 423.96 1,270.99 7,701.43 18,831.56

Median 2,136,000 20,846.47 22,845.54 9.59% 9,435.18 423.96 1,839.59 11,146.81 22,845.54

Upper Quartile 5,631,000 47,064.54 51,544.85 9.52% 16,884.00 423.96 4,849.84 29,387.05 51,544.85

Shopping plaza

Lower Quartile 7,002,000 71,804.57 86,739.27 20.80% 496.59 423.96 6,031.58 79,787.14 86,739.27

Median 12,834,000 130,881.69 158,210.17 20.88% 496.59 423.96 11,054.76 146,234.87 158,210.17

Upper Quartile 82,607,000 894,490.32 1,072,834.87 19.94% 24,829.41 35,612.73 71,153.80 941,238.93 1,072,834.87

39 Capital expenditure over the next 30 years (including inflation) Over the first 10 years of the LTP we are proposing to spend $738 million on capital investment, 54 per cent of which will be in the wastewater, stormwater and drinking water areas, and 17 per cent on transport. This significant capital investment will be funded by debt and from rating for depreciation. A breakdown of our capital expenditure for each 10-year period of the LTP is provided below.

Capex Capex Capex $738 $772 $947 million million million Years 1-10 11-20 21-30

% % %

Wastewater 36 44 37

Drinking Water 15 6 6

Stormwater 3 1 4

Transport 17 19 24

Property 6 2 3

Parks & Reserves 5 7 8

Resource Recovery 4 2 2

Village Programme 1 1 1

Admin Building & Hubs 2 3 -

CBD, Future Projects & Strategic Land Purchases 6 8 8

Others 5 7 7

0 10 20 30 40 50 Per cent

40 Consultation Document for the proposed LTP 2021-51 Debt and rating for depreciation We have seen a significant increase in our capital projects from the last LTP. This has meant we have increased our debt to pay for what we can’t cover with depreciation and any capital subsidies received. Depreciation is applied to recognise the use of the city’s assets evenly over their economic life. Depreciation is charged to today’s ratepayers and this pays for the renewal of these assets to make sure that the cost is shared evenly and that future generations aren’t unfairly burdened. As shown in the following table, the city’s debt over the first ten years goes from $131 million to a projected maximum of $372 million in Year 9 (2029/30) and back to $371 million in Year 10 (2030/31). The increase in the city’s debt is the result of our major infrastructure renewals such as water supply, stormwater, wastewater reticulation and roading. We have carefully considered the timing of our capital programme and the associated borrowing requirements to ensure that this best meets the needs of current and future generations. To read the full Financial Strategy go to poriruacity.govt.nz/ltp/#documents

21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Year 1 2 3 4 5 6 7 8 9 10 Debt ($ million) 131.1 160.8 210.8 263.8 297.1 327.6 348.8 365.6 369.3 371.6 370.8 Ratio of debt Limit 137% 161% 183% 191% 211% 227% 229% 221% 213% 205% to operating 280% income External Limit 5% 5% 6% 7% 8% 9% 10% 9% 9% 9% interest as a % 20% of operating income

41 Infrastructure Strategy

The Infrastructure Strategy for Porirua City Accommodating this growth needs to be managed poriruacity.govt.nz/ltp/#documents outlines in accordance with the National Policy Statement for the Council’s infrastructure investments for the next Urban Development 2020 that supports increasing 30 years, including how we intend to: the supply of houses. • improve the condition and performance of assets We have considered the impact of population and • prepare for residential growth housing growth (including housing intensification) on our infrastructure assets and reflected this in • improve environmental outcomes for water our major infrastructure projects. For example, new quality, waste minimisation, carbon reduction parks and reserves in areas of urban growth and and use of parks and reserves increasing capacity of water and transport networks • consider the impacts of climate change and to cope with more people. opportunities to improve resilience; and • respond to increasing community expectations, Climate change and natural hazard and government standards, around infrastructure. resilience Rising sea levels and increased rainfall coupled Factors influencing with the effects of storm surge are increasing the likelihood of flooding and erosion in Porirua. The infrastructure Council declared a Climate Change Emergency in Central Government expectations June 2019 and subsequently developed the Climate Change Strategy 2021-2024 to adapt to and The Government is considering 3 water reform mitigate the challenges we are facing. and regulatory changes that will impact the way Councils deliver 3 waters services to the community. We are improving our understanding of the impacts In the meantime, while Government is working on of climate change on the city’s infrastructure. A its proposals for change, Porirua City Council will planned risk assessment of the impacts of climate continue to provide drinking water, wastewater change on the city will inform future infrastructure and stormwater services with our delivery partner investment decisions. Wellington Water. The Council has identified the key natural hazards Improving the condition, performance and capacity through our Proposed District Plan. We need resilient of 3 waters assets (especially wastewater) to meet infrastructure to withstand the effects of natural and maintain acceptable levels of service is one of hazards. We have factored in opportunities to the city’s biggest challenges. It is also important improve resilience within renewal programmes. to comply with the National Policy Statement for However, we are unable to address seismic Freshwater Management that requires water to be strengthening of all water reservoirs, reinforcing the managed in an integrated and sustainable way. importance of residents having their own emergency water supply. The Government has set a national target of 90% of specified rivers and lakes to be safe for swimming Capital programme delivery and recreation by 2040 (and an interim target We are planning to significantly increase our of 80% by 2030). The health of our harbour and investment in 3 waters and transport infrastructure surrounding catchments is a high priority for the over the next 30 years. Not doing so would increase Council and the community. Leaking and overflowing the likelihood of failures with our networks, decrease pipes degrading the quality of our water is not the current levels of service, limit our ability to grow, acceptable. and mean greater investment would be required in Population growth the future. The Council will prioritise the upgrading of critical infrastructure to maintain levels of service It is anticipated that Porirua City will need an and avoid network failure. For full details see our additional 10,035 new dwellings by 2051 to Infrastructure Strategy. accommodate an additional 28,635 residents.

42 Consultation Document for the proposed LTP 2021-51 In developing the LTP we have worked hard to Wellington Region. To make progress towards more understand and manage the uncertainties around efficient use of our water supply, we are planning the the ability of the industry to deliver our capital installation of water meters from 2025. programme. We have worked closely with industry experts to understand the scale of our programme Wastewater and the ability of the industry to deliver it. As much as 49% of the public wastewater network is in poor condition, leading to leaks and network Demand for construction workforces is increasing overflows. We want to improve the condition of these as the demand to build more houses increases and pipes through wastewater renewals, increasing the competes with large infrastructure projects such capacity of wastewater storage and the wastewater as Transmission Gully. The number of infrastructure treatment plant. projects is growing and so is the cost of delivering them. To reduce this uncertainty, we are growing We have similar issues with the condition of private our workforce to increase our capacity to deliver wastewater pipes with cross connections to projects and starting procurement early to give some stormwater pipes and leaking pipes. We are planning certainty to the costs and process. to work with property owners to address these issues. Improvements in both the public and private network Covid-19 has introduced economic and social will lead to better environmental outcomes and uncertainty. From an infrastructure perspective support population growth. this creates uncertainty about our ability to deliver infrastructure projects within agreed timeframes. Stormwater Border restrictions are affecting access to skilled We provide a network of pipes, and some open workers and to construction materials. We continue channels, to manage, control and remove stormwater to monitor the effects of Covid-19 on our ability to in our city. Stormwater pipes are generally in good deliver and work with our partners and contractors to condition overall, but in some parts of the city they address these issues. are not coping with intense rain and storm weather We will continue to work with key stakeholders to events. Contaminants wash into the stormwater ensure our infrastructure projects can be delivered in system and into our streams and harbour. a timely and cost-effective way. To improve capacity of the stormwater network we Eastern Porirua Regeneration Project are undertaking a series of catchment studies in Plimmerton, Takapūwāhia, Titahi Bay, and eastern On 1 November 2018 the Government announced Porirua to inform decisions about future flood that it is investing $1.5 billion over 25 years to mitigation. We are also developing wetlands in implement a regeneration programme for eastern Eldson to capture excess water and filter stormwater Porirua. Kāinga Ora (formerly Housing New Zealand) before it runs into the harbour. are working with Ngāti Toa Rangatira and Council to upgrade about 2,000 state homes and build 2,000 Water quality new affordable homes and 150 public houses. The The 2018 Quality of Life Survey indicated 27% of infrastructure plan that supports the LTP is reliant on those surveyed in Porirua thought the quality of our Kāinga Ora investment in eastern Porirua. water needed improving. The Council has a priority to invest in 3 waters infrastructure and catchment How we are responding restoration, so we have put a lot of emphasis on improving the quality of water in our harbour Drinking water and surrounding catchments in partnership with Up to 24% of our drinking water pipes are in poor or Ngāti Toa. very poor condition. To maintain provision of safe and healthy water we will implement the Regional Water To complement our riparian planting programme Safety Plan and improve the condition of water pipes. we need high-performing infrastructure to eliminate contamination, reduce silt and sediment from urban We will encourage more efficient use of water in developments and the impact of flooding on our the city so our water supply remains sustainable for stormwater system and communities. future generations and we can delay construction of a new water source for both Porirua City and the

43 Transport The proposed Adventure Park is a privately funded We will continue to provide a connected and development that will add amenities to the city’s accessible transport system so that people can parks and reserves. It is planned to be built from access the city safely and connect to the places 2021 to 2024 and will provide unique recreation they need to get to. Our challenge is to keep our facilities and supporting infrastructure. transport network safe while accommodating With a growing population and proposed changes population growth and alternative modes of in the Burial and Cremations Act 1964 we may need transport. to consider additional capacity at Whenua Tapu We have developed a 10-year road safety strategy Cemetery. utilising safe system principles to target and reduce Property road safety risk across Porirua’s transport network. The city’s community facilities (libraries, galleries and This strategy has a strong alignment with central arenas) and sports facilities provide for the wellbeing government priorities on road safety, taking a of residents. We are proposing new community system wide, multi-agency approach to achieve facilities to accommodate population growth. We our goals. To read the strategy visit are planning a strategic review of the property poriruacity.govt.nz/road-safety portfolio to inform future investment decisions. We will continue to improve our transport network and plan for growth and future community needs. Resource recovery and waste disposal Our work programme is built around delivering a Council is focused on implementing its waste sustainable maintenance and renewals programme. management and minimisation plan that considers We will complete high priority projects associated reduction, reuse, recycling, recovery, treatment and with Transmission Gully Motorway including Access disposal following recent Waste Minimisation Act Kenepuru and the Titahi Bay Shared Path. changes. There will be changes in demand for waste services as our population grows, as our relationships Parks and reserves with wider regions that also rely on Spicer Landfill Most of the city’s parks and reserves are in good change, and through changes in the waste levy condition. Our resident satisfaction survey shows arising from the Waste Minimisation Act. that 80 per cent of the community is happy with our Council is planning staged landfill upgrades to add parks. Some structures, tracks and playgrounds need another $1.8 million tonnes of capacity to last to investment to improve their condition and resilience about 2053, and the consent renewal for the landfill to climate change. We also plan to create new will commence in 2021, well ahead of time. parks, reserves and walking connections to support new developments.

44 Consultation Document for the proposed LTP 2021-51 Major infrastructure projects to address our challenges

Issue to resolve Proposed project solution 2021-2030 2031-2040 2041-2051 $ million $ million $ million Water Water supply and Water reservoirs: supply operational resilience • Aotea reservoir 17 - - • Plimmerton reservoir 16.3 - - • Porirua (Whitby) high level 19 (PCC - - reservoir share is 10) Impact of population Upgrade Whitby high level trunk 4 - - growth on network water main to strengthen link with capacity existing reservoirs and the Porirua high level reservoir Managing demand Proposal to install water meters 14 - - and consumption from 2025-26 Poor asset condition Pipe network and pump station 17 28 28.3 renewals Wastewater Impact of population Build wastewater storage tanks: growth capacity and • CBD 43 - - impact of associated infrastructure on the • Paramata 4 35 - environment • Whitby - - 8 • North Plimmerton 1 29 - Upgrade the wastewater 1 3 41 treatment plant Improve condition Bothamley Park wastewater main 40 (PCC - - of wastewater share is 10) mains to protect the Paremata to Papakōwhai gravity 37 - 4 environment sewer main Poor asset condition Pipe network and pump station 87.9 159.2 111.8 upgrades and renewals Stormwater Flood mitigation Elsdon wetlands 6.1 - - and improved environment Flood mitigation Stormwater flooding hot spots 10 - - Takapūwāhia network 3 - - Poor asset condition Pipe renewals 1.6 5 19 Transport Poor asset condition Footpath and road renewals 9.2 7.4 39.9 Road pavement resurfacing 62 67 61 and rehabilitation Network structures 6 4.5 4.5 Drainage and resilience 7.8 5.7 5.8 Improvements Local roads 3.1 1 0.1 Whitford Brown corridor 2.7 0.3 - Whitby active mode traffic - 3.5 - Station access - 2.2 -

45 Issue to resolve Proposed project solution 2021-2030 2031-2040 2041-2051 $ million $ million $ million Transport Road safety Focus on high risk corridors, 5.5 1 1 pedestrian crossings and school safety improvements Active modes of Access Kenepuru 8.6 - - travel and network Porirua CBD to Titahi Bay Shared 10 - - to support Path population growth Walking and cycling 0.1 3.9 0.1 Property Safe, active and Eastern community facility 8 - - healthy communities Build new community facilities and impact of subject to consultation: population growth • northern 8 - - • western - 4 - • central (Incl. Whitby) - - 4 Improve and maintain 1.5 - - Te Rauparaha Arena Resource Landfill consent Re-consent the landfill 2.3 - - recovery expires 2030 and waste Current landfill Build new landfill cells to increase 13 7.4 5.6 disposal capacity is being its capacity used up and could be compounded by population growth Parks Poor asset condition Aotea Lagoon renewals (incl. 2.1 0.5 0.4 (esp. the duck pond) stormwater pond restoration) Deteriorating water Porirua Stream naturalisation 3 - - quality Green asset Riparian planting and harbour to 0.8 1.7 1.6 restoration hills stream enhancement Cemetery capacity Consider options for future 6.4 - - cemetery capacity including meeting statutory obligations Impact of climate Beach sand dune restoration and 0.8 1.2 - change and coastal seawall renewal at Plimmerton erosion Population growth Develop new parks, reserves, 1.7 8.3 3 and the need to walking connections and sports provide for safe areas (incl. new artificial turf park healthy and active and Titahi Bay Community Park) communities Maintaining park Renewals for all aspects of parks 15m 28 33 assets to maintain and reserves levels of service

46 Consultation Document for the proposed LTP 2021-51 Capital expenditure The table below shows our capital expenditure for the next 30 years in five-year timeframes, or one-off expenses on major items that we expect to last a long time. Typical capital expenses include new assets such as water reservoirs, upgraded treatment plant and replacing high cost assets like pipelines and roads.

2022-26 2027-31 2032-36 2037-41 2041-46 2047-51 Year 1-5 6-10 11-15 16-20 21-25 26-30 $000 $000 $000 $000 $000 $000 Drinking Water 76,685 20,870 14,613 15,555 15,829 14,629 Wastewater 129,565 103,298 148,002 83,822 121,807 62,594 Stormwater 21,031 1,275 971 4,317 9,040 10,120 Transport 71,375 43,855 48,113 47,317 51,302 60,970 Parks and Reserves 13,543 16,363 17,198 20,868 19,799 18,044 Property 39,673 10,980 17,587 10,204 6,105 6,105 Resource Recovery and Waste 22,280 4,706 1,185 10,123 6,820 2,760

Note: These figures uninflated.

Operating expenditure The table below shows our operating expenditure for the next 30 years in five-year timeframes or how much we will spend on daily business as usual activities. Typical operating expenses include staff, contractors, materials, energy and maintenance costs. Most operating expenditure is funded from rates, some is funded from fees and charges and some from other agencies such as NZTA.

2022-26 2027-31 2032-36 2037-41 2041-46 2047-51 Year 1-5 6-10 11-15 16-20 21-25 26-30 $000 $000 $000 $000 $000 $000 Drinking Water 58,110 75,049 84,207 93,715 104,170 117,112 Wastewater 72,701 89,586 115,680 140,759 169,262 204,742 Stormwater 24,882 30,767 37,322 45,703 55,687 67,351 Transport 76,594 86,910 100,407 113,663 128,839 146,577 Parks and Reserves 73,431 89,812 120,522 145,644 164,843 182,283 Property 94,122 102,341 111,642 119,864 128,310 135,453 Resource Recovery and Waste 66,090 71,718 73,016 76,700 81,372 83,240

Note: These figures uninflated.

47 Independent Auditor’s Report

Independent auditor’s report on Porirua City Council’s consultation document for its proposed 2021–51 Long-term plan I am the Auditor-General’s appointed auditor for Porirua City Council (the Council). The Local Government Act 2002 (the Act) requires the Council to prepare a consultation document when developing its long-term plan. Section 93C of the Act sets out the content requirements of the consultation document and requires an audit report on the consultation document. I have done the work for this report using the staff and resources of Ernst & Young. We completed our report on 25 March 2021. Opinion In our opinion: • the consultation document provides an effective basis for public participation in the Council’s decisions about the proposed content of its 2021-51 long-term plan, because it: - fairly represents the matters proposed for inclusion in the long-term plan; and - identifies and explains the main issues and choices facing the Council and the City, and the consequences of those choices; and • the information and assumptions underlying the information in the consultation document are reasonable. Emphasis of matters Without modifying our opinion, we draw attention to the following disclosures. Uncertainty over three waters reforms Page 12 outlines the Government’s intention to make three waters reform decisions during 2021. The effect that the reforms may have on three waters services provided is currently uncertain because no decisions have been made. The consultation document was prepared as if these services will continue to be provided by the Council, but future decisions may result in significant changes, which would affect the information on which the consultation document has been based. Uncertainty over the three waters forecasts Page 17 outlines that Council’s forecasting for its three waters assets is based on age. Using only aged based information means there is an increased degree of uncertainty on the level of spending necessary and on which assets. Wellington Water Limited will work on better understanding asset condition, which will improve the reliability of future investment needs. Uncertainty over the delivery of the capital programme Page 42 outlines that the Council is proposing to significantly increase its investment in three waters and transport infrastructure over the next 30 years. While the Council has put in place a number of initiatives, there is uncertainty over Council’s ability to deliver infrastructure projects within agreed timeframes. The increased demand for skilled construction workers and materials, could create delivery difficulties. In the event that changes are required, the Council will prioritise the upgrading of critical infrastructure to maintain levels of service and avoid network failure. Basis of opinion We carried out our work in accordance with the International Standard on Assurance Engagements (New Zealand) 3000 (Revised): Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. In meeting the requirements of this standard, we took into account particular elements of the Auditor-General’s Auditing Standards and the International Standard on Assurance Engagements 3400: The Examination of Prospective Financial Information that were consistent with those requirements.

48 Consultation Document for the proposed LTP 2021-51 We assessed the evidence the Council has to support the information and disclosures in the consultation document. To select appropriate procedures, we assessed the risk of material misstatement and the Council’s systems and processes applying to the preparation of the consultation document. We did not evaluate the security and controls over the publication of the consultation document. Responsibilities of the Council and auditor The Council is responsible for: • meeting all legal requirements relating to its procedures, decisions, consultation, disclosures, and other actions associated with preparing and publishing the consultation document and long-term plan, whether in printed or electronic form; • having systems and processes in place to provide the supporting information and analysis the Council needs to be able to prepare a consultation document and long-term plan that meet the purposes set out in the Act; and • ensuring that any forecast financial information being presented has been prepared in accordance with generally accepted accounting practice in New Zealand. We are responsible for reporting on the consultation document, as required by section 93C of the Act. We do not express an opinion on the merits of any policy content of the consultation document. Independence We have complied with the Auditor General’s: • independence and other ethical requirements, which incorporate the independence and ethical requirements of Professional and Ethical Standard 1 issued by the New Zealand Auditing and Assurance Standards Board; and • quality control requirements, which incorporate the quality control requirements of Professional and Ethical Standard 3 (Amended) issued by the New Zealand Auditing and Assurance Standards Board. In addition to this report on the Council’s consultation document and all legally required external audits, we provide an assurance report on certain matters in respect of the Council’s Debenture Trust Deed. These assignments are compatible with those independence requirements. Other than these assignments, we have no relationship with or interests in the Council.

Grant Taylor Ernst & Young Chartered Accountants On behalf of the Auditor-General Wellington, New Zealand

Message from Ngāti Toa Rangatira E te iwi e noho nei i te riu o Porirua, tēnā koutou katoa The development of the city's Long-term Plan 2021-2051 will bring changes to our city that we will be proud of. Between now and 2051 we will see Porirua transform into a vibrant and exciting place to be for residents and people who choose to work here. We are blessed with hills, waterways, Te Mana o Kupe bushwalks and two magnificent harbours, Porirua and Pāuatahanui, as well as rich histories all anchored by Te Matahourua, the anchor left here by Kupe. As a challenge to all of us – we must look after our environment and look after each other, especially our tamariki and rangatahi. Nou te rourou, naku te rourou ka ora ai te Iwi With your contribution, and my contribution the people will thrive Taku Parai Chairman, Te Rūnanga o Ngāti Toa Rangatira

You are free to copy, distribute and adapt the work, as long as you attribute the work to Porirua City Council.

Published March 2021.

Porirua City Council 16 Cobham Court PO Box 50218 Porirua 5240

This document is available on our website poriruacity.govt.nz Porirua – our place, our future, our challenge Let’s kōrero

Consultation Document for the proposed Long-term Plan 2021-51