Whanganui District Council’s Long Term Plan 2018—2028
Consultation Document Contents
Message from Our infrastructure strategy ...... 38 Mayor Hamish McDouall...... 4 What’s most critical for our district?...... 38 Overview of our core infrastructure ...... 38 Important issues for the next ten years. . . . . 6 Water supply ...... 38 Paying for the impact of Stormwater drainage ...... 39 forestry harvesting on our roads...... 7 Wastewater...... 39 Roading and footpaths...... 39 Summary of options...... 9 Parks and recreation...... 40 Revitalisation of our port...... 14 Cultural and events facilities...... 40 Summary of options...... 16 Property ...... 40 Our stormwater network...... 18 Ports...... 40 Summary of options...... 20 Information services...... 40
Our financial strategy – funding Priorities ...... 41 our community into the future ...... 22 Proposed key infrastructure projects 2018-2028...... 42 What is our financial strategy?...... 22 Future years...... 45 Where the money comes from...... 23 Where the money is spent...... 23 Changes to the levels of service...... 46 Managing our debt...... 25 Keeping rates affordable...... 26 More for you to think about… ...... 49 Other revenue...... 28
Balanced budget...... 29 Kerbside recycling...... 49 Whanganui Regional Museum...... 49 Who pays – and how Whanganui Resource Recovery do we make the system fairer?...... 30 Centre Trust ...... 50 Library hubs...... 50 Wastewater and trade waste...... 30 Heritage incentive funding ...... 50 Resilient roading...... 33 Sport and recreation strategy...... 50 Animal management...... 34 Dog pound ...... 50 Port and river...... 34 Regional facilities...... 51 Funding growth...... 35 Transferring of our marine and airport activity...... 51 What does this mean for my rates? ...... 36 Wakefield Street Bridge...... 51 Dublin Street Bridge...... 52 Wikitoria Culvert...... 52 Lower river control ...... 52 Property Portfolio Investment Plan...... 52 Changes to development contributions. . . . . 53
2 Long Term Plan 2018–2028 Consultation Document Our Leading Edge Strategy...... 54
What’s the same & what’s changed ...... 55
Independent auditor’s report ...... 56
Tell us what you think… ...... 58
Supporting Documents
You can find the following documents at www whanganui. govt. .nz/long-term-plan or call (06) 349 0001 to request a copy:
• Financial Strategy • 30-Year Infrastructure Strategy • Forecasting assumptions • Full financial statements • Funding Impact Statement and rates information • Proposed fees and charges 2018/19 • Full list of capital expenditure projects by group • Project updates • Activity plans including performance measures • Draft Revenue and Financing Policy • Development Contributions Policy • Liability Management Policy • Investment Policy • Draft Rates Remission Policy, Draft Rates Postponement Policy and Draft Policy on the Remission and Postponement of Rates on Māori Freehold Land • Significance and Engagement Policy
Contents 3 Message from Mayor Hamish McDouall
Tēnā koutou Whanganui,
While our day to day life at Council is often to grow over the next ten years and we must looking at immediate opportunities or current ensure our infrastructure will match further problems, we need to look to the future . We increases in population . need to try and pierce into the unknown and have a vision for the district which lasts decades . In the previous ten year plan 2018-19 was always In essence the Council must look ahead 30 years, anticipated to be a year of significant rates rises, and plan for ten . as this is the year that the wastewater treatment plant becomes operative . However due to the The Long Term Plan is the document that is the great work of staff, and the careful oversight of basis for this planning . The projects embodied in this Council we have managed to pull the rates the plan are not supposition or crystal-ball rise down from 12% to an average of 4 .5% for gazing . They are informed by evidence, science, next year . This is the biggest rate rise in the ten projections, and models . When you add the year plan – overall the average rate rise is only political will of myself and all the Councillors slightly above projected inflation over the next around the table to grow Whanganui then the decade at 2 .4% . end point is the document you have in your hands . Not one of the elected officials has any doubt that rate rises can hit households, particularly We need to grapple with the fact of climate those on fixed incomes, very hard . We are change, and what that means for our working to make sure your money is spent on infrastructure . We need to consider that our things that will enhance Whanganui, and that the demographics are projected to change and what organisation that we govern is running lean . that will mean for new subdivisions and extended services . I am so pleased to see that Whanganui grew by net 700 people last year . Our predictions are that Whanganui will continue
4 Long Term Plan 2018–2028 Consultation Document And yet we are intending to do a great deal . pushing to increase our tolerance for the We are improving our stormwater capability to unexpected . mitigate flooding and support our wastewater facility; we are intending to extend Fitzherbert We are a tight-knit community . I know we look Avenue through to Mosston Road; and we are out for one another and communities succeed beginning to address the impact of forestry when they are united . I ask that you take part in harvesting on our roads . this consultation process and join me as we voyage into the future together – please submit We are also reducing our debt – up to $30M over to this plan . Please contribute your wisdom on the period of the Long Term Plan . these important decisions . While this is nominally Council’s plan, I want this to be a plan to which all Other highlights parts of Whanganui’s community have The word governance stems from the word contributed . gubernate which is Latin for ‘steer’ or ‘pilot’ . To me this is the essence of our role, and highly appropriate given our rich history . As elected officials we are tasked with setting the course for the district . This responsibility should weigh on Hamish McDouall our shoulders . Mayor Piloting a course does not mean we will be free of rapids or other challenges . Technology is changing the way we do things, while climate change is forcing us to change things . As contradictory as this may sound, this plan is intended to prepare for uncertainty . We’re
Message from Mayor Hamish McDouall 5 Important issues for the next ten years How do we address our top three?
We want your feedback on three important issues for Whanganui . We’ve considered options for each of them and we’re interested in your views on these . We’ve outlined the benefits and risks associated with each option and highlighted our preferred option for each issue . The preferred options have been included in our financial forecasts .
6 Long Term Plan 2018–2028 Consultation Document 1
Paying for the impact of forestry harvesting on our roads
High volumes of harvestable timber are about to reach maturity in the Whanganui District . The highest harvest volumes are expected in 2024–2029 when over half of our timber trees will be ready for cutting .
Transportation of this timber is expected to have Our current Roads and Footpaths Rate is based a big impact on roads in our district, with road on capital value . The low capital values per pavement renewals estimated to cost around hectare for exotic forestry (plantation forestry) $12 .2M over the next ten years . The major costs properties mean that they currently contribute are expected to affect us after 2024 . much less towards our roads than similar sized dairy, pastoral or horticultural properties . Total Whanganui District Council is applying to the roading rates from exotic forestry properties New Zealand Transport Agency (NZTA) for a amounted to $90,000 in 2017/18 . subsidy toward these costs and we have assumed for this plan that we will be successful in getting The valuations and roading rates for farming land our standard 61% subsidy rate . This will still leave uses are as follows: $4 .8M for the Council to fund over the next ten years, with about $1 .5M of this required between Capital value per Roading rates Land use years one and six of this Long Term Plan and the hectare per hectare remaining $3 .3M between years seven and ten . Exotic forestry $2,600 $4 90% of the cost in years one to six is expected to be created by forestry located within the Average other farming $8,800 $15 Whanganui District, at an average cost of land uses $225,000 per year . We are looking at the best way to fund these extra costs . Forest harvest tonnage and roading expenditure 4,000,000 $10M
$8M e ($M) 3,000,000
$6M xpenditu r onnage 2,000,000 t
e s $4M oading e Har v 1,000,000
$2M try r e s o r F 0 $0M 2018-20 2021-23 2024-26 2027-29 2030-32 2033-35 2036-38 2039-41 2042-44 2045-47
Harvest tonnage Forestry roading expenditure ($M)
Important issues for the next ten years 7 The low roading rates paid by forestry properties made sense during the growing period as forestry properties placed lower demands on the roading network . However road usage by these properties is changing as the forests are harvested and the Council’s costs are increasing as a result .
We will continue to work with the forestry industry on local solutions in addition to lobbying central government for a national funding solution before the bulk of these costs are incurred in years seven to ten . At this stage our assumption is that our only external funding source will be 61% subsidy from NZTA, leaving the remaining 39% to be funded by Council .
Our preferred option is to introduce a new targeted roading rate to exotic forestry (plantation forestry) property owners from 2018/19 to help make the funding fairer . This new targeted rate would be based on capital value and would be in addition to the existing Roads and Footpaths Rate . We want to hear your thoughts on this proposal .
8 Long Term Plan 2018–2028 Consultation Document Summary of options
OPTION 1
Fund forestry roading impacts from existing rating sources (i e. . the Roads and Footpaths Rate), based on the current roading rating allocation . (32% Farming, 32% Residential and 36% Commercial) .
Impact on rates Impact on debt
No additional rate for exotic forestry None properties . Impact on levels of service Costs attributable to forestry properties in the Whanganui District (average $225,000 No change per year in Years 1 – 6 and $800,000 per year in Years 7 – 10) would be funded from the existing Roads and Footpaths Rate . Option 1 would shift the cost of the damages caused by forestry onto other ratepayers . The Years 1 – 6 $ / year impact on commercial and other farming ratepayers would be large with a substantial Average residential $5 part of the roading activity (36% and 32% respectively) funded by the small number of Average farming $58 ratepayers in the commercial and farming categories . Council will continue to lobby Average commercial $77 central government for a national funding solution to be in place ahead of Year 7 when Average exotic forestry $16 costs begin to climb .
Years 7-10 (only if no additional $ / year government support available)
Average residential $16
Average farming $203
Average commercial $270
Average exotic forestry $55
Important issues for the next ten years 9 OPTION 2 (preferred)
Collect $135,000 per annum by implementing a new targeted rate for exotic forestry properties . This would mean that exotic forestry properties pay 2 5. times their current contribution to roading .
Impact on rates Impact on debt An additional $135,000 per year from exotic None forestry properties . Impact on levels of service The rest of the costs caused by forestry No change properties in the Whanganui District (on average $90,000 per annum in Years 1 to 6 and $650,000 per year in Years 7 – 10) would be funded from the existing Roads and Option 2 would see about 60% of the costs Footpaths Rate . attributable to exotic forestry properties paid by those properties in Years 1 – 6, with the
Years 1 – 6 $ / year rest funded by the Roads and Footpaths Rate . This would provide a balance between the Average residential $2 small group of forestry ratepayers and the rest of the community . It would mean that the Average farming $23 rest of the community would have a minor increase to their Roads and Footpaths Rate Average commercial $31 to fund part of the costs caused by exotic forestry properties . Council will continue to Average exotic forestry $681 lobby central government for a national funding solution to be in place ahead of Year 7 when costs begin to climb . Years 7 – 10 (only if no additional $ / year government support available)
Average residential $14
Average farming $168
Average commercial $224
Average exotic forestry $721
10 Long Term Plan 2018–2028 Consultation Document OPTION 3
A staged approach with a new targeted rate to be assessed on exotic forestry properties to collect:
• $90,000 in Year One • $112,000 in Year Two • $135,000 in Year Three and beyond
This would mean that exotic forestry properties would pay double their current contribution to roading in Year 1, 2 .25 times in Year 2 and 2 .5 times in Year 3 and beyond .
Impact on rates Impact on debt An additional $90,000 in Year 1, $112,000 in None Year 2 and $135,000 in Year 3 and beyond from exotic forestry properties . Impact on levels of service No change The remainder of the costs attributable to forestry properties in the Whanganui District (on average $112,000 per year in Years 1 – 6 and $650,000 per year from Years 7 – 10) Option 3 would gradually increase funding would be funded from the existing Roads and from exotic forestry properties, reaching 60% Footpaths Rate . funding by these properties by Year 3 . The remainder would be funded by the Roads
Years 1 – 6 $ / year and Footpaths Rate . This would allow exotic forestry property owners to prepare for the Average residential $2 increase in rates and manage their costs and cash flows, but it would mean an increase to Average farming $29 the Roads and Footpaths Rate for the rest of the community to fund part of the costs Average commercial $39 caused by exotic forestry properties . Council will continue to lobby central government for Average exotic forestry $568 a national funding solution to be in place ahead of Year 7 when costs begin to climb .
Years 7-10 (only if no additional $ / year government support available)
Average residential $14
Average farming $168
Average commercial $224
Average exotic forestry $721
Important issues for the next ten years 11 OPTION 4
Implement a new targeted rate to exotic forestry properties to recover the full costs of forestry roading impacts attributable to properties located in the Whanganui District .
This would mean that exotic forestry properties pay about 3 .5 times their current contribution to roading in Years 1–6 .
Impact on rates Impact on debt An additional $225,000 per annum from None exotic forestry properties in Years 1 – 6 and $800,000 per year in Years 7 – 10 . Impact on levels of service No change
Years 1 – 6 $ / year
No impact on the existing Roads and Option 4 would see all of the costs Footpaths Rate . attributable to exotic forestry properties paid for by those properties . This would mean a Average residential $0 significant rates increase for the small group of exotic forestry property owners in Year 1 Average farming $0 which could cause affordability and cash flow issues, particularly for the properties who are Average commercial $0 some time away from receiving income from their harvest and for remote properties which Average exotic forestry $1,123 may become uneconomic . No costs of forestry roading impacts would be passed on
Years 7-10 (only if no additional $ / year to the rest of the community . Council will government support available) continue to lobby central government for a national funding solution to be in place ahead Average residential $0 of Year 7 when costs begin to climb .
Average farming $0
Average commercial $0
Average exotic forestry $3,939
12 Long Term Plan 2018–2028 Consultation Document Preferred option Assumptions
Our preferred option is Option 2 . We believe Our key assumptions are: this option balances affordability for both exotic forestry ratepayers and the rest of the • that forests are harvested at maturity and community who pay the Roads and transported via expected routes . Footpaths Rate, while also recognising who • that roading deterioration from the causes these costs . transportation of timber across our roading network occurs as predicted by our computer modelling . • that Council will secure New Zealand Transport Agency (NZTA) funding for forestry related road surface damages at its standard subsidy rate of 61% . • that Council will continue to lobby central government for a national funding solution to be in place ahead of Year 7 when costs begin to climb .
Important issues for the next ten years 13 2 Revitalisation of our port
In 2010 Whanganui District Council purchased and took back control of the port business at Castlecliff Port in the interests of the district and to determine whether there were opportunities to repair the infrastructure and grow the business, or whether the facility should be closed . At the time the port structures were suffering from many decades of deferred maintenance and this is still an issue today .
In 2015 the Council considered a number of The government provided $500,000 for a options for the future of the commercial port, business case which should be completed by late including closure, but decided to keep a window June 2018 . Developing the business case involves of opportunity alive for the port, investing $2M to comprehensive engagement with businesses upgrade part of Wharf One . wishing to develop in the port area, formation of consultation groups, public meetings and a In 2017, the Council applied to the government master-planning process . More recently, on 23 via the region’s Accelerate25 Programme for February 2018 the government announced that funding to undertake a business case to identify the Provincial Growth Fund (PGF) will invest more how government, Council and private business than $6M towards revitalisation of the Whanganui investment in the port and surrounding area will Port and upgrade of the town’s rail line . Subject to grow the Whanganui economy and increase the business case, the government will support employment . works to the port to the level of $3M .
14 Long Term Plan 2018–2028 Consultation Document The business case and master plan should demonstrate that investment in the port will attract private investment in business ventures and has both economic and community benefits, and that it is approved by the government and the Council . The Council has provided for a contribution in the Long Term Plan . Subject to the final business case, it is envisaged that the money will be used for a number of activities including: removal of derelict land-based structures, upgrading wharf structures, providing vessel launch and retrieve facilities for commercial vessels and developing land and water based recreational facilities .
The Council’s proposed capital expenditure is budgeted at $0 .5M for year one, $2 7M. for year two, $0 .6M for year three, and $3 1M. for year five – there is no capital expenditure for the Port in year four . This expenditure will be loan funded . The proposed investments for years one to three are for port-related structures and in year five for community facilities . It is important to note that the amounts and time frames of the proposed investment included in the Long Term Plan are provisional at this stage and may alter in the process of finalising the business case and obtaining government and Council approval for the programme .
Important issues for the next ten years 15 Summary of options
OPTION 1 (preferred)
Proceed with the Port Revitalisation Programme, should the business case be approved .
Impact on rates Impact on debt Minimal impact on rates for Years 1–2 until A total of $6 .8M loan-funded over Years One loans have been fully drawn down . to Five of this plan:
Years 3–5 $ / year • $0 .5M in Year 1 • $2 .6M in Year 2 $0 .4M per year from rates to begin to repay • $0 .6M in Year 3 the debt and service the interest . • $3 1M. in Year 5
Average residential $24 Impact on levels of service An increased level of service at the port Average farming $26 including opportunities for land and water- based recreational facilities . Average commercial $36
Year 6 onward $ / year Option 1 depends on the business case demonstrating that the commercial and From Year 6 we will require $0 7M. per annum community benefits will be worth the from rates to repay the debt and service the proposed investment . To explain the interest . commercial benefits we will need to show how new infrastructure at the port will attract Average residential $36 new or grow existing business and bring economic development and job growth . Average farming $38 To attract government investment the Council Average commercial $53 . must also invest on behalf of the community . Generally government and council economic development initiatives take place because, while the opportunity has been identified, the level of return and/or risk means the private sector will not undertake the business development on its own .
The proposed investment in community infrastructure for facilities such as a swimming area, recreational park and facilities for non-powered recreational craft, also depends on the community benefits being worth the estimated costs .
16 Long Term Plan 2018–2028 Consultation Document OPTION 2
Do not proceed with the Port Revitalisation Programme .
Impact on rates Impact on levels of service None There will continue to be low levels of service and most of the facility will continue to look Impact on debt dilapidated . None The Harbour Endowment and Council will fund repairs to port infrastructure only when absolutely required for business or health and safety reasons .
There will be no community facilities built in the port area .
This option would see businesses make their own decisions about where and when to invest in or around the port area . Although this option saves money in the short term, it means there will be no programme to attract government investment and business growth .
Preferred option Assumptions
Our preferred option is Option 1 because it Our key assumptions are: provides the Council with an opportunity to attract government investment in regional • that the business case will be approved by economic development, which will help the government and the Council grow the district . • that construction and upgrade work will be complete by 2023 . Future stages will be dependent on supporting business cases • that proposed costs are favourable in relation to the community benefits .
Important issues for the next ten years 17 3 Our stormwater network
We provide stormwater collection and disposal to protect the health and safety of our community, including land and property . We provide an urban stormwater network which includes a piped stormwater system and a network of open waterways .
Some parts of our district are more prone to Previously, the Council has made no provision for experiencing poor stormwater drainage and may upgrading the stormwater network to improve its be exposed to more frequent flooding events than performance, or to prepare for the potential long others . term effect of climate change on the network .
The Council recently completed a detailed The stormwater modelling study has shown that to stormwater modelling study to assess the drainage upgrade all the undersized pipes to an acceptable capacity (performance) of the urban stormwater design standard, a total investment of $80M would network . The way the stormwater network is be required . However we do not believe such an currently performing is significantly below investment would be financially sustainable to the acceptable standards . In addition the impacts of community . anticipated climate change are likely to cause further deterioration to the capacity of the Our preferred option is to invest in priority areas stormwater network over the next 50 years – first, with a much smaller investment programme causing even worse stormwater drainage, and of $25M . This approach would address the highest more frequent flooding . risk to residential properties and improve the
18 Long Term Plan 2018–2028 Consultation Document overall performance of the stormwater system . We are not including any funding for treatment of The areas with the most dwellings located in a our stormwater, because we comply with the potential flood zone have been assigned the stipulations of our discharge consent for highest priority, in descending order . Using this stormwater from Horizons Regional Council method, the first three priority areas are: (Horizons) .
1. Central City area (Halswell St, London St, Harrison St) 2. Springvale, College Estate and Cemetery area 3. Aramoho-West (Brunswick Rd, Kaikokopu Stream, Tangingongoro Stream) area
The rest of the network, including Whanganui East, Putiki, Gonville and Aramoho-East, will be upgraded over a much longer period .
Because of the long-term nature of this project, we will rate fund the capital costs . Council uses loan funding for one-off capital projects to smooth funding requirements and ensure that the generations who benefit pay their fair share for long-term assets . However in this case the project itself has been staged with a consistent annual budget available each year to undertake the works . This has been proposed with affordability for the community and the desire to reduce debt in mind . Loan funding would not be appropriate because we would continue to borrow for this project for decades to come, which would not achieve Council’s objective of reducing debt . It would also incur significant interest costs .
Important issues for the next ten years 19 Summary of options
OPTION 1
Retain the status quo . This would mean no funding for any upgrades to the stormwater network, and properties in certain areas would remain at risk of flooding and/or poor stormwater drainage .
Impact on rates Impact of levels of service None Retain the existing level of service over the short term (<50 years) . Impact on debt None Accept a gradual decrease in level of service over the long term (>50 years), due to climate change This means even worse stormwater drainage, and more frequent flooding .
OPTION 2
Upgrade all undersized assets within the stormwater network as soon as possible .
Impact on rates Years 2 – 10: $ / year • $80M over 40 years, at $0 .5M in Year 1, $1M per year for Years 2-10 and then • Average residential $57 • $2 .33M per year thereafter .
The Stormwater Disposal Rate is charged on Average commercial $210 Capital Value, so the impact will vary from property to property (Note: farming properties are generally not serviced and therefore do not pay for stormwater)
Year 1 $ / year Impact on debt $0 .5M funded from loans in Year 1 only . Average residential $30 Impact of levels of service Average commercial $111 Gradual improvement to the performance of the network over 40 years, to reflect today’s standard This. will greatly improve stormwater drainage, and reduce the frequency of flooding .
20 Long Term Plan 2018–2028 Consultation Document OPTION 3 (preferred)
Upgrade only the priority areas (to today’s standard), and the remainder in descending order of priority over time .
Impact on rates Impact on debt $25M over 30 years, at $500K per year for $0 .5M funded from loans in Year 1 only . Years 2-10 and then $1M per year thereafter . Impact of levels of service The Stormwater Disposal Rate is charged on Gradual improvement to the performance of Capital Value, so the impact will vary from the stormwater network for the priority areas property to property only (to today’s standard) over 20 years, and then a gradual improvement to performance
Year 1 $ / year of the remainder of the stormwater network (to a similar standard) thereafter . Average residential $2 This would mean improved stormwater drainage to the priority areas, and a reduced Average commercial $6 frequency of flooding .
Years 2 – 10: $ / year
Average residential $28
Average commercial $105 .
(Note: farming properties are generally not serviced and therefore do not pay for stormwater)
PREFERRED OPTION ASSUMPTIONS
Our preferred option is Option 3 as we Our key assumptions are: believe this balances affordability to the community with addressing the highest risk • that climate change is progressive, over areas first, improving stormwater drainage the long term where it is most needed and helping to • that today’s standard is unlikely to change reduce the frequency of flooding events . significantly over the long term • that affordability is a key driver for this activity
Important issues for the next ten years 21 Our financial strategy – funding our community into the future
What is our financial strategy?
An important part of our work leading up to this In planning for the future we have considered the Long Term Plan has been the development of our likely impact of climate change on our assets, Financial Strategy . The Financial Strategy particularly in roading and stormwater . Our describes how we plan to finance our services in population is expected to grow modestly over a sustainable way over the long term . Its purpose the next ten years followed by a levelling off and is to ensure the Council manages financial subsequent decline . We have an ageing decisions carefully when it chooses which community with a large and increasing services to provide . Our expenditure and funding proportion on fixed incomes, and our community plans must be sustainable so that we have the is less wealthy than other places in New Zealand . capacity and resources to deliver affordable services to residents and ratepayers in the For these reasons, the aim of our financial medium to long term . strategy is for the Council to be an affordable and financially sustainable organisation while at the In simple terms, we must live within our means, same time delivering good quality services and ensuring that current ratepayers are paying the promoting growth within the district . This can be reasonable costs of the services they are summarised as living within our means while still consuming . contributing to Whanganui being a great place to live . Our Financial Strategy is designed to give you an understanding of both our current and future We are focused on: financial positions . It also outlines the main factors that affect demand for the Council’s • managing our finances prudently and services and their costs, as well as the financial sustainably challenges and risks we face and how these risks • keeping rates at affordable levels will be addressed . • reducing debt with corresponding reductions in interest costs Major infrastructure work over the past 30 years, • improving our financial resilience including separation of the stormwater and • looking for efficiencies in the way we do wastewater systems, improved water supply and business construction of the wastewater treatment plant • changing the way we manage our assets to has provided our community with assets that will get better value for money and reduce risk to serve many decades into the future . These our critical assets projects have, however, had a significant impact • investigating and pursuing non-rates revenue on the amount of debt that the Council carries . streams This has been combined with rates rises in the • encouraging sustainable growth past that have not always kept pace with the ever-growing list of services delivered by the Council .
22 Long Term Plan 2018–2028 Consultation Document 0.3% 3% 1% 3% 7% Where the Council gets its money
Rates - excluding water by meter, trade waste and penalties 11% Fees and charges Subsidies Loans raised Rates - water by meter, trade waste and penalties External funding Investment income Development Contributions 12% 63%
6%
9% Where the Council spends its money
Operating costs 41% Capital expenditure Personnel costs 18% Debt repayment Finance costs
26%
Where the money comes from Further information on our other revenue sources can be found on page 28 . Whanganui District Council needs about $93M per annum on average to fund its services . Where the money is spent Our largest funding source is rates . Other funding comes from user fees and charges, subsidies, Operating our services investment income, development contributions, We plan to spend $67M on average over the ten external funding such as donations and grants, years of this plan on operating our services . and capital funding sources like loans and special Our operations will be mainly business as usual funds . over the course of the plan . Even business as usual costs more each year because prices for items such as labour and materials increase . 65–75% of our funding Inflation is included in our future years’ forecast comes from rates expenditure . We use the Local Government Cost
Our financial strategy – funding our community into the future 23 Our proposed capital expenditure by group of activities 2018-2028
$50M
$38M Provision of roads and footpaths Parks and recreation Investments Transportation $25M Community facilities and services Corporate Stormwater drainage Community and cultural $13M Water supply Provision of roads and footpaths Sewerage and the treatment and disposal of sewage
$0M 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Index (LGCI) to adjust future costs because it is The Council has made significant investments in relevant to the types of goods and services that infrastructure in the past 30 years . Our focus for councils purchase such as pipes and roading . The the next ten years is on essential infrastructure forecast average increase in the LGCI over the ten and investing in capital that supports growth . Our years of this plan is 2 .3% . major capital projects are outlined in the Infrastructure Strategy section of this document The main changes that will impact on operating (see page 43) . costs over the period of this Long Term Plan are: The projects outlined in this plan are in many The operation of the new wastewater • different stages of development – some are in treatment plant from 2018/19 . preliminary investigations, others require The requirement for Council to fund the port • resource consents, and others are awaiting operation due to the returns of the Harbour funding commitments from others . The plan Endowment investment property portfolio includes likely costs for each project, but things being insufficient to meet the needs of the can change . port from 2018/19 . We plan to spend about $10M on infrastructure Capital projects related to growth in the next ten years to address We plan to spend $27M on average over the ten expected demand and meet the needs of the years of this plan on capital expenditure . Years National Policy Statement for Urban one to three of the plan have higher capital Development Capacity 2016 . This spending is for expenditure due to the Sarjeant Gallery the growth areas identified in the Springvale redevelopment . The impact of the forestry West and Otamatea Structure Plans . The cost for harvest on our roads is most evident from 2024 this infrastructure will be funded by debt . We onward . have recently consulted on a development contributions policy that will allow us to recover a Capital expenditure is primarily funded by loans, significant portion of these costs from developers NZTA subsidies for our roads, rates, external who benefit when the land is developed .: funding sources like grants and donations for the Sarjeant Gallery, and development contributions . You can view the capital expenditure over a 20 year period (2008-2028) in our Financial Strategy .
24 Long Term Plan 2018–2028 Consultation Document $10.4
Our capital expenditure 2018-2028 ($M) $88.4 Replacing existing assets Level of service increases Growth
$168.0
Managing our debt With the completion of the construction of the wastewater treatment plant in early 2018, the The Council uses debt to help pay for long-term focus of the ten-year period of this Long Term assets . Borrowing smooths the impact on rates Plan is on delivering core infrastructure projects for one-off capital projects . It also spreads the that support growth, maintaining and improving cost of the asset over time so that the our critical assets, and repaying debt . generations that have use of the asset also contribute to paying for it . Debt is repaid by other We will loan fund $70M of capital projects over funding sources such as rates, fees and charges the ten-year period, but we have planned to and development contributions . repay $94M of debt over the same period .
Average debt principal repayments of $9 .4M per annum are built into our forecasts . We have We expect to have debt of assumed that on average the Council will pay $113M by 30 June 2018 . 5 .5% interest on debt over the ten years of this plan .
We are proposing to continue the Debt To ensure we are sustainable we will ensure we Retirement Rate that we introduced in 2012 meet the following self-imposed limit: throughout the life of this plan to address debts for stormwater and roading . • debt is less than 200% of total revenue
Major infrastructure work over the past 30 years, including the separation of the stormwater and Our district’s debt level wastewater systems, improved water supply and the wastewater treatment plant, has provided our is about 122% of our total community with assets that will serve for many revenue in 2018/19 . decades into the future . That’s the equivalent of a household earning $50,000 per year and having a mortgage of around $61,000 .
Our financial strategy – funding our community into the future 25 We alsopropose to changetheway we fundour With thesemechanisms inplace we expect to fixed rate perSUIP 26 weather events (see page33for further we face unexpected costs dueto damagefrom over theperiodofthisLong Term Planto fund Implementing thisrate willimprove ourfinancial across allratepayers . the roading activity 1 information) . roading activity roading cost burden more fairly andaffordably resilience inroading whichisimportantshould be renamed theRoading Resilience Rate) reduce debtto $88Mby 30June2028 . total revenue total This istheequivalent of ahousehold By 2027/28 we expect our debt to 86% debt be our of our (SUIP) separately usedorinhabited partofarating unit earning $50,000 peryear andhaving a mortgage ofless than$43,000
$M Proposed debt2018-2028 compared to debtlimit(200%oftotal revenue) $200 $250 $100 $150 $50 $0 20 .We propose to continue the 122% 18/ 19 1 (theStorm DamageRate, to .This willhelpto spread the 20 131% . 19 / 20 20 Debt ($M) 20 127% / . 21 20 133% 21/ 22 20 129% 22/ 23 • • Total rates (excluding water by meter, trade waste The Council willcollect around 60-70% ofits Term Planand insomeyears we are well below These limitsare themaximumswe have set. We stay within thelimitsinallyears oftheLong Our self-imposedfinanciallimits for rates are: $71M by 2028 . Keeping rates affordable annual income from rates (excluding water targeted rates andpenalties) willincrease to these limits. penalties) over thenext ten years . by meter andtrade waste targeted rates and Debt limit(200%oft 20 119% 23 Government inflation rate plus2%inallother years (after accounting for growth) are nomore thantheLocal Government and trade waste targeted rates andpenalties) trade waste targeted rates andpenalties) is inflation rate andthe plus3%in2018/19 Local rates increases (excluding water by meter no more than75% oftotal revenue rates revenue (excluding water by meter and / 2 Long Term Plan2018–2028 Consultation Document 4 20 107% 2 otal r 4 / 25 e v enue 20 ) ($M) 25 100% / 26 20 91% 26 / 2 7 20 86% 2 7 / 28 We expected inthe10-Year Plan2015-2025 that Our financial strategy –funding our community into thefuture able to treat ourwastewater effectively before it treatment plantbecoming operational .We willbe yearthe 2018/19 would have ahigherrates is discharged to thesea. increase thannormalwiththenew wastewater * after accounting for growth of$200,000 peryear revenue Proposed rates Rates increase limit Rates asa%oftotal increase* 2 Rates to forecast are inflation) increase by average an of . 4% (including annually $M $40 $60 $80 $20 Proposed rates revenue 2018-2028 compared to rates limit(75% oftotal revenue) $0 20 59% 18/ 19 . Ra t es r 2018/19 20 e 5 . 4 .5% 59% 19 63% v enue ($M)(ex 0% / 20 2019/20 20 4 .2% 3 . 63% 20 65% cluding w 7% / 21 2020/21 a t 20 er b 4 .2% 3 .6% 65% 71% 21/ y met 22 er , tr 2021/22 ade w 20 4 .2% 71% 1 .5% 22/ 71% as 23 t e andpenalties We are mindfulthat thecommunity haslimited value for money ability to pay for services andwe needto offer means for your rates iscontained onpage36. 2022/23 20 4 .3% 1 .6% 23 71% 71% / 2 4 ) 2023/24 20 4 .3% 1 .6% 2 69% 71% 4 Ra / 25 t es limit(7 .More information onwhat this 2024/25 20 4 .4% 0 .7% 69% 25 69% 5% oft / 26 otal r 2025/26 20 e v 4 .5% 3 .2% 69% enue 26 68% / 2 7 ) ($M) 2026/27 20 4 .6% 0 .7% 68% 69% 2 7 / 28 2027/28 4 . 2 .3% 69% 7% 27 Other revenue budgeted $1M per annum in dividends and loan repayments from WDCHL’s investment in GasNet . With a financial strategy focused on reducing debt and keeping rates affordable, we will continue to Development contributions look at ways to increase the Council’s income from Development contributions allow councils to sources other than rates . We forecast collecting recover their growth-related capital expenditure around 25-35% of our income from sources other from developers who will benefit . Whanganui than rates over the next ten years . District Council has recently consulted on a new policy for collecting development contributions, Fees and charges which is proposed to come into effect from 1 July We charge fees to recover all or some of the costs 2018 . These will be targeted at the urban of our services, where there is a private benefit to expansion areas identified in both the Otamatea a specific user . The proposed fees and charges to West and Springvale Structure plans . We are be effective 1 July 2018 are being consulted upon forecasting income of $3 .5M from development alongside this Long Term Plan and are available at contributions over the period of this Long Term www whanganui. govt. .nz/long-term-plan . We will Plan . continue to review our fees and charges annually . Asset sales Subsidies and grants We continue to investigate selling our surplus We receive a range of subsidies from central assets . Asset sales are an important potential government and these are an important source of funds to help us achieve our debt component of our non-rates income . Roading repayment strategy, but we are mindful that this is subsidies from the New Zealand Transport Agency an issue people can feel very strongly about . We (NZTA) are by far the biggest single subsidy consulted on the sale of forestry investment in our source at an average of $9 7M. per annum over the last Long-term Plan 2015-2025 and the community ten year Long Term Plan period . After a number of generally supported the sale . The forestry years of reductions, our base NZTA financial investment was conditionally sold by tender, with assistance rate (FAR) has levelled off at 61% and is the sale subject to Overseas Investment Office expected to remain at this level . This is 1% higher approval . The Council awaits the final decision of than earlier indications . We are assuming that the Overseas Investment Office . We have assumed NZTA will subsidise damages to our roads as a in this plan that the sale will proceed before 30 result of the forestry harvest at this rate . We have June 2018 and the sale proceeds will be applied to also forecast external income of $29M in years reducing debt in the Wastewater activity (for one to three of this plan in the form of funding for further information, see the Wastewater and Trade the redevelopment of the Sarjeant Gallery . This Waste section of ‘Who Pays’ on page 30) . We includes funding from central government, trusts, have not included any forecast income from asset corporate sponsors and private philanthropic sales over the next ten years into our plan, with donations . the exception of the sale of the library bus which is being replaced with alternatives . Any significant Investment income assets proposed for sale will be subject to Income from our investment portfolio is an community consultation at the time . important component of our non-rates income that helps to reduce the burden on our ratepayers and/or repay debt . Whanganui District Council Holdings Ltd (WDCHL) is the Council’s investment arm . It oversees investment activities that aim to enhance the development of our district and provide an acceptable financial return to the community . For this Long Term Plan we have
28 Long Term Plan 2018–2028 Consultation Document Balanced budget • This ‘risk-based’ approach to asset management ensures the service capacity We have a ‘balanced budget’ requirement – this and integrity of assets throughout their means we must ensure that each year’s projected useful lives are maintained . operating revenues are set at a level sufficient • We do not rate fund depreciation; instead we to meet that year’s projected operating expenses directly fund our assets when they are (including depreciation) unless the Council replaced and we make regular loan resolves that it is financially prudent to do repayments . We believe that this is a more otherwise . prudent and stable approach as funding is Although the ‘balanced budget’ requirement is not influenced by factors such as revaluations not met for a number of years we believe that and large capital projects that can cause this is a financially prudent budget for the spikes in depreciation . In addition this following reasons: approach ensures that each generation that uses an asset pays their fair share towards • We are consistently reducing our overall debt that asset . each year from 2020/21 onwards . • This plan includes depreciation for large new • We are adopting a ‘risk-based’ approach to assets including the wastewater treatment asset management, meaning that critical plant, Sarjeant Gallery redevelopment and assets are maintained and non-critical assets port revitalisation . We do not expect to have are replaced when they wear out rather to fund significant renewal expenditure for than when they are at the end of their these assets for some time . theoretical lives . • We have included $10 .4M in this long term plan for growth related projects .
Council’s forecast operating surplus or deficit for each year:
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Forecast surplus / 11,794 8,307 5,612 (3,195) (1,352) (2,274) (154) 1,477 1,134 (370) (deficit) ($000)
Our financial strategy – funding our community into the future 29 Who pays – and how do we make the system fairer?
We are continually reviewing our funding structure to ensure it works for our community .
We are consulting on our Draft Revenue In addition we are proposing some changes and Financing Policy and Proposed Fees to our rating structure which are outlined and Charges for 2018/19 separately from below . You can provide feedback via our this Long Term Plan and you can view website these documents and provide feedback on www whanganui. govt. .nz/long-term-plan our website at www whanganui. govt. .nz/long-term-plan
1 . Wastewater and trade waste
The new Whanganui urban wastewater treatment You can view the draft Revenue and plant will soon be operational, so we have Financing Policy, our draft Fees and reviewed the costs of providing the service, who Charges for 2018/19, and our proposed should pay and how . rates and provide feedback on our website at www whanganui. govt. .nz/long-term-plan The city wastewater rate (otherwise known as the ‘pan tax’) remains the fairest way to charge all properties connected to the system for the Trade waste availability of the wastewater network and We have assessed that the fairest way of discharges of a domestic nature . There is no allocating costs between municipal and trade practical way to measure these discharges . waste users is to take a marginal cost approach . Trade wastes are wastewater discharges of a This means that businesses who discharge trade non-domestic nature and include tankered waste wastes pay for the additional costs over and discharges to the Council’s wastewater system . above the cost of conveying, treating and Trade wastes incur additional costs to the Council disposing of discharges of a domestic nature . to convey, treat and discharge . We are proposing Under this approach municipal users are no some changes to the way we charge businesses better or worse off than they would be if the who discharge trade wastes . These changes will trade waste businesses did not discharge their have an impact on our rates and fees and charges waste to the Council’s wastewater system . and our Revenue and Financing Policy . We are We do not currently charge for tankered waste consulting separately on our draft Revenue and discharges to the Council’s city wastewater Financing Policy and draft fees and charges for system, but we propose to introduce fees and 2018/19 . charges to reflect the costs involved in conveying, treating and disposing of the effluent they discharge .
30 Long Term Plan 2018–2028 Consultation Document We also propose to change the funding structure for major trade waste users (that is, those that discharge over 100m3/day) . We want to retain these businesses in Whanganui as they have a significant positive impact on the local economy and employment, but we also need to ensure they pay their fair share .
Major trade waste businesses will pay for the additional capital cost we have incurred to upsize the Whanganui urban wastewater treatment plant to cater for their discharges . Targeted rates will be set on each of the major trade waste businesses’ properties, based on repayment of their share of the capital cost over a 25 year period .
These businesses will also pay for the cost of conveying, treating and disposing of the trade waste they discharge to our wastewater system . Targeted rates will fund fixed operating costs such as staff, while the variable operating costs such as electricity, gas and sludge chemicals will be funded via fees and charges based on the actual quantity and quality of effluent discharged by each business .
We will investigate businesses discharging under 100m3/day to see whether any are discharging trade waste . We may implement volumetric fees and charges for these discharges in year two of this Long Term Plan if it is identified that these businesses are discharging trade waste over and above what they pay for in their city wastewater rate or ‘pan tax’ .
Further information on the rationale behind the proposed funding of the wastewater activity is contained in the Revenue & Financing Policy and the supporting Funding Needs Analysis for Wastewater . These documents are available on the Council’s website at www whanganui. govt. .nz/long-term-plan .
Who pays – and how do we make the system fairer? 31 Wastewater and trade waste rates and fees for has also recently sold some of its carbon credits . 2018/19 The Council has decided to apply the net Whanganui District Council is expecting to sell its proceeds of these asset sales to the wastewater forestry investment portfolio (excluding activity to keep the Whanganui city wastewater Waitahinga and Nukumaru) by 30 June 2018 . It system affordable for those connected to it .
The rates and charges proposed for 2018/19 for the Whanganui city wastewater system are summarised as follows (GST inclusive):
City Targeted rates No change to funding structure wastewater • $425 per separately used or inhabited part of a rating unit (SUIP) for connected residential properties • $425 per SUIP for connected non-residential properties with a single pan • $212 per pan for connected non-residential properties with multiple pans
Trade waste Targeted rates Funding structure changed more than • Varying contributions to the capital cost of the Whanganui 100m3/day city wastewater treatment plant upgrade, plus • $34 .848 per m3 average daily flow set via the discharge permit issued under the Council’s Trade Waste Bylaw 2018, plus • $11 786. per kg average daily Chemical Oxygen Demand (COD) set via the discharge permit issued under the Council’s Trade Waste Bylaw 2018, plus • $44 182. per kg average daily Total Suspended Solids (TSS) set via the discharge permit issued under the Council’s Trade Waste Bylaw 2018, plus Fees and charges • $0 08238. per kg Chemical Oxygen Demand (COD) discharged, plus • $0 .25283 per kg Total Suspended Solids (TSS) discharged .
Tankered waste Fees and charges New $9 .90 per m3 effluent discharged
Further detail is available in:
• The Draft Revenue and Financing Policy – being consulted upon separately alongside this Long Term Plan at www whanganui. govt. .nz/long-term-plan
• The Draft Fees and Charges for 2018/19 – being consulted upon separately alongside this Long Term Plan at www whanganui. govt. .nz/long-term-plan
• The Funding Impact Statement – Rates Information provided as supporting information to this Long Term Plan 2018-2028 .
32 Long Term Plan 2018–2028 Consultation Document 2 . Resilient roading
The Whanganui District has a significant hinterland
serviced by a roading network which is vulnerable $ / year Commercial Farming Residential to weather events . In 2016/17 we introduced a new rate (the Storm Damage Rate) to fund the repair Rate per SUIP $45 $50 $45 of damage caused to our infrastructure in the June 2015 weather event . This rate was intended to be in place for a five year period . The majority The rate will secure additional funding for roading of costs to be funded by the rate were for roading, from residential ratepayers and will ease the with a smaller portion allocated to our wastewater burden on farming and commercial ratepayers . and stormwater systems . This will enable us to ensure that our roading activity is sustainable and resilient into the future . Reinstatement works resulting from the June 2015 weather event are now complete and costs were Alternative options lower than expected, but we have significant debt If the proposal was not implemented, the Council in our roading activity which is not being would cease the Storm Damage Rate from effectively addressed . We also expect climate 2021/22 and then fund the increased amounts change to increase the vulnerability of our roading required to increase roading resilience from the network into the future and this will result in existing Roads and Footpaths Rate . This would additional costs . add a significant rates burden to farming and commercial ratepayers but lower the contribution The roading debt has risen due to increasing costs from residential properties from year four of this and decreasing subsidies from NZTA . This has Long Term Plan . meant that the Council has had to balance using borrowing and rates to fund the increasing The average impact of funding the same amount shortfall . from the Roads and Footpaths Rate is:
The current rating structure for roading has 32% of $ / year Commercial Farming Residential the total rates requirement contributed by farming
ratepayers, 36% from commercial ratepayers and Average rate per $195 $217 $17 32% from residential ratepayers . As there are a SUIP small number of ratepayers in the farming and commercial categories, increasing rates to repay debt imposes a significant burden on these The Council could choose not to rate fund the ratepayers . Our efforts to keep rates affordable additional amount from 2021/22 . This would have meant that the Council has not been able to reduce rates for all ratepayer groups but would sustainably manage the ongoing costs of roading increase debt by $856,000 per annum from – resulting in an increasing debt balance . 2021/22 onward to maintain service levels . This would not be sustainable or prudent and would To address this issue we propose to continue the not achieve the Council’s objective of increasing Storm Damage Rate over the period of this Long financial resilience, especially in light of potential Term Plan as the Roading Resilience Rate . future impacts to the roading network as a result The rate will continue to be set on a per SUIP2 of climate change . basis, with farming properties paying $5 more than residential and commercial properties given that most weather-related damage occurs on |rural roads .
2 (SUIP) separately used or inhabited part of a rating unit
Who pays – and how do we make the system fairer? 33 3 .Animal management
We received feedback via submissions to the unit basis from 2018/19 . This will increase the 2017/18 Annual Plan that the rating allocation for proportion of the activity funded by residential animal management was not fair and reasonable properties and reduce the proportion of funding when considering who creates the need for the from commercial and farming properties . activity and benefits from it .
Commercial Farming Residential Animal management is partially rate funded from the general rate on a ‘CV2’ rating allocation . This Current 32 .6% 18 .3% 49 1%. means that rate funding for the activity has been split in proportion to the capital values of the Proposed 8 .5% 8 0%. 83 .5% groups, with commercial properties being attributed 200% of their capital value . This is because in past times all of the Council’s regulatory activities were funded as one The impact of this change is as follows: combined activity rather than individually . Most other general rate funded activities are allocated $ / year Commercial Farming Residential to ratepayer groups based on the number of Average -$90 -$29 +$9 ratepayer units in each group . change in rates per property We agree that the standard general rate unit basis is a better fit for the funding of this activity because dog owners (generally from residential and farming properties) benefit most and create For further information on the funding rationale the need for this activity . for this activity, see the Revenue & Financing Policy and the supporting Funding Needs We propose to alter the rating allocation for this Analysis for Animal Management at activity from CV2 to the standard general rate www whanganui. govt. .nz/long-term-plan
4 .Port and river
The Council manages the commercial port for The river control sub-activity, formerly part of the shallow draft coastal vessels, commercial vessels waterways and natural drainage activity, manages and pleasure boats and maintains a safe and structures to confine the coastal portion of the navigable river bar harbour . This activity has Whanganui River to its existing confinement . It historically been fully funded by returns from the has been funded from the general rate on a CVU Harbour Endowment investment property basis; that is, by commercial and residential portfolio and has required no rate funding input . properties only based on their share of capital value . The Harbour Endowment faces significant challenges with the suitability of its properties We propose to move the river control activity and declining rental returns . This means it is from waterways and natural drainage to a new unable to continue to fully fund the operation of activity named port and river, as these two the sea port . While we will continue to try and activities have a better fit and are managed improve returns from the portfolio, rate funding together in practice . will be required to fund the shortfall .
34 Long Term Plan 2018–2028 Consultation Document We proposed to rate fund the new port and river We are also consulting on whether to use activity from the general rate based on the general rates to fund the shortfall in the standard unit based rating allocation . This would port and river activity as part of our draft see all ratepayers fund this activity, because we Revenue & Financing Policy . The draft believe there is a public benefit in having the port policy and submission form is available at available and in controlling the way in which the www whanganui. govt. .nz/long-term-plan . river meets the sea . For further information on the funding rationale for this activity, see the Revenue & Financing Policy and the supporting Funding Needs Analysis for Port and River at www whanganui. govt. .nz/long-term-plan
Commercial Farming Residential
Current River control only (no rate funding for Sea port) 24 .9% 0 .0% 75 1%.
Proposed Port and river 8 .5% 8 0%. 83 .5%
The impact of the rating change is as follows
$ / year Commercial Farming Residential
Average change in rates per property -$109 +$40 +$4
Funding growth
We have included $10 .4M of capital expenditure operational from 1 July 2018 . Our Revenue and for growth in this Long Term Plan to address Financing Policy is being amended to reflect this anticipated demand and meet the needs of the capital expenditure funding source . National Policy Statement on Urban Development Capacity 2016 . The government has legislated that financial contributions under the Resource Management We believe this capital expenditure should be Act 1991 will no longer be available from April funded by those who create the need and benefit 2022 . The Council will cease to collect those from it . We have recently consulted on a financial contributions from 1 July 2018 . Development Contributions Policy to be
Who pays – and how do we make the system fairer? 35 What does this mean for my rates?
Rates will increase by 4 .5% on average in 2018/19
The following table shows the average rates increases for 2018/19 average residential, lifestyle, farming, commercial and exotic forestry properties:
Average capital Average 2018/19 Average land value $ increase % increase value rates
Residential $69,000 $212,000 $2,650 $140 5 .6%
Lifestyle $185,000 $366,000 $2,126 $68 3 .3%
Farming $1,100,000 $1,360,000 $4,818 $22 0 .5%
Exotic forestry $248,000 $266,000 $1,925 $712 58 7%.
Commercial $207,000 $1,035,000 $9,853 $90 0 .9%
The actual changes in the rates you will pay depends on the type of property you own, its value, land size, and what Council services your property has (for example, whether you are connected to our wastewater system) The. following table shows indicative rates increases for the some typical residential, lifestyle, commercial, farming and exotic forestry properties:
2018/19 Land value Capital value $ increase % increase rates
Residential $51,000 $90,000 $2,199 $120 5 .8%
Residential $24,000 $138,000 $2,232 $117 5 .5%
Residential $63,000 $175,000 $2,645 $144 5 .8%
Residential $75,000 $225,000 $2,895 $159 5 .8%
Residential $98,000 $320,000 $3,370 $186 5 .9%
Residential $144,000 $450,000 $4,130 $232 6 0%.
Lifestyle $240,000 $515,000 $2,814 $106 3 .9%
Farming $710,000 $940,000 $3,474 $22 0 .6%
Farming $1,850,000 $2,300,000 $7,257 $24 0 .3%
Farming $3,070,000 $3,770,000 $11,332 $28 0 .3%
36 Long Term Plan 2018–2028 Consultation Document 2018/19 Land value Capital value $ increase % increase rates
Exotic forestry $260,000 $290,000 $2,554 $783 44 .2%
Exotic forestry $1,050,000 $1,170,000 $7,418 $3,130 73 .0%
Commercial $95,000 $315,000 $4,584 $38 0 .8%
Commercial $275,000 $820,000 $11,379 $12 0 .1%
Commercial $265,000 $1,810,000 $15,057 $270 1 .8%
This supports the extensive range of services and The average residential activities the Council provides . The graphic above rate for 2018/19 is shows the services we provide with your rates and how much of the average residential rate of $2,650 per year or $51 $2,650 goes toward each of these services . per week .
$39 $47 How the average Whanganui residential $51 $114 $425 rate of $2650 is spent $124 Wastewater Stormwater disposal $197 Community and cultural Water supply & firefighting capacity Parks and recreation $381 Roads & footpaths $257 Community facilities and services Corporate Economic development Earthquake strengthening Transportation Debt retirement $320 $370
$326
To put this in context, the average weekly Our full suite of rates can be found in our household expenditure on household services is: Funding Impact Statement – Rates Information in the supporting information
Communications (mobile, landline and wi-fi) $34/week provided with this Consultation Document .
Electricity $39/week
Whanganui District Council rates $51/week
Transport $167/week
Source: www .newzealandnow govt. .nz and www .mbie govt. .nz
What does this mean for my rates? 37 Our infrastructure strategy
What’s most critical for our district?
Infrastructure provides a foundation for building This comprises a significant infrastructure strong and resilient communities . Our portfolio with assets estimated at over $1 .6B . infrastructure strategy describes our existing Although this infrastructure supports the safety, infrastructure, identifies significant issues that health, convenience, connectivity and enjoyment might impact on this and outlines the Council’s of residents and visitors, it also means that the approach to managing infrastructure assets over Council needs to be aware of, and respond to, the next 30 years . issues such as growth demands, the impact of climate change, ongoing asset maintenance and The Council’s infrastructure includes: renewal, increasing legislative requirements and • 843 kilometres of roads, 73 bridges and 332 changing levels of service expectations from the kilometres of footpaths community . These issues all have an impact on • Five water supply schemes rates and service delivery – with affordability an • Three wastewater schemes ongoing concern for a district of Whanganui’s • Three stormwater schemes size and socio-economic make-up . • 114 green spaces3 • 12 community, cultural and events facilities
Overview of our core infrastructure
Water supply maintained in a sustainable manner . The lifecycle for water supply assets ranges from 20 years for The Council’s water supply activity, which water meters through to 110 years for PVC pipes . includes an urban water supply to Whanganui On-going investigations and work programmes and rural schemes serving Fordell, Maxwell, continue to monitor the condition of the assets . Mowhanau and Westmere, has assets with a replacement cost of $160M . There are minimal changes to levels of service foreseen for this activity, which can be achieved This includes nine bores, five treatment plants, 29 within existing operational budgets . All capital reservoirs, 16 pump stations, 2,929 valves, 2,080 upgrades in the Asset Management Plan have hydrants and 555 kilometres of pipeline . The been allocated to renewals . average condition grades for our water supply assets range from fair4 to very good . This shows that the water supply network is being
3 This includes six Premier Parks, 14 Active Parks, six Cemeteries, two Aquatic Centres, five Pathway Parks, 47 Passive Parks and 34 Conservation Parks – note: while areas may be classified as recreation reserves they are not necessarily usable by the public .
4 Fair is described as minor defects beginning to affect appearance . Our bores and reservoirs average at fair condition . See our Water Asset Management Plan for further detail .
38 Long Term Plan 2018–2028 Consultation Document Stormwater drainage Wastewater
The Council manages and operates this The Council manages and operates wastewater infrastructure to ensure that stormwater flows are infrastructure ensuring that wastewater flows are managed cost-effectively and adverse impacts treated to a standard set by the relevant resource on public health and safety, the environment, consent limits . public and private property and the economy are reduced . The stormwater network includes We treat, on average, 25 million litres of sections of open drains and natural waterways, as wastewater a day . The Council’s wastewater well as stormwater pipes . The water quality of our services, which include an urban wastewater waterways, lakes and river is particularly related system servicing the city of Whanganui and two to stormwater and land management practices . rural systems serving Marybank and Mowhanau, have assets with a replacement cost of $307M . Most of the Council’s stormwater assets are This includes 4,781 manholes, 34 pump stations, located in the Whanganui urban area, with some three treatment plants and 280 kilometres of located in Marybank and Mowhanau . They have a pipeline . The current available data shows the replacement cost of $170M . These assets include average condition grades for wastewater assets 3,476 manholes, 37 valves, outfalls with a total range from ‘good’ to ‘very good’ . This shows that length of 3,000 metres and 165 kilometres of the wastewater network is being maintained in a pipeline . Current available data shows the sustainable manner . average condition grades for stormwater assets range from ‘good’ to ‘very good’ . This shows that Increased demand for higher levels of service are the stormwater network is being maintained in a anticipated for this activity over the next 30 sustainable manner . years . The wastewater treatment plant has been upgraded by capital investment in order to The true technical levels of service for this activity protect the environment by compliance with have historically been poorly defined . Whanganui discharge consents . The influx of stormwater District Council completed a set of new hydraulic sources into the wastewater network will be and criticality models for the stormwater network identified and isolated (or contained) to achieve in 2014 . Early indications are that levels of service the target wet weather level of service . A total of through the primary network are relatively low, $42 7M. has been allowed for in the Asset and would need improvement by investing in Management Plan over the 30 year period to augmenting the pipe network over the long term . address these required changes in levels of A combination of strategies will be used to service . achieve this, ranging from integrated catchment management plans, surface attenuation using low Roading and footpaths impact development and storage, and ensuring well-defined overland flow paths as a secondary Whanganui’s roading activity is one of the system . The condition of our natural waterways district’s most valuable assets, with a replacement has also been identified as a potential issue, with cost of $609M . It includes 75 bridges, 279 the available data not being very reliable . This will retaining walls, 5,712 street lights, 10 traffic need to be addressed from a level of service signals, 541,654m2 footpaths, 4,660,887m² point of view, mainly through our Healthy pavements and 16,000 assorted assets including Streams Whanganui initiative . The remaining street furniture, signs and culverts . section of the public network in Gonville West also needs to be completely separated, as it is Customer demand for increased levels of service currently serviced by a combined sewer system . is anticipated under this activity, with a number A total of $20 .2 million is allowed for over the 30 of specific projects budgeted for over the 30 year year period in the Asset Management Plan for period in the Council’s Asset Management Plan . Level of Service improvement . These include Heads Road Roundabout ($1 4M),.
Our infrastructure strategy 39 Dublin Street Bridge replacement ($33 .3M), Property Wakefield Street Bridge replacement ($1 .9M) and Mosston Road and Montgomery Road Whanganui District Council owns and manages reconstruction ($15 .5M collectively) . investment properties within the City Endowment and Harbour Endowment portfolios . These endowments have specific purposes and both Parks and recreation portfolios contain a mix of ground leases (which Parks and recreation activity contributes to the are land only) and improved leases (which are community’s social, cultural, environmental and both land and buildings) . Significant economic interests and provides many infrastructure issues will include responding to opportunities for recreation . These are set within functional obsolescence, adoption and a landscape that includes a river, lakes and implementation of an Investment Strategy and beaches all of which are within close proximity to increasing the resilience of the Council’s main each other whether accessed by walking, cycling administration building at 101 Guyton Street as an or driving . Parks, aquatic facilities, trees, ‘Importance Level 2 Building’ in the event of an cemeteries, public toilets and cemeteries are core emergency . assets contributing to making Whanganui a great place to live and visit . Ports
Key issues over the 30 year period of this The Council owns and manages three separate strategy include ensuring adequate provision of forms of transport . These are the airport, seaport open space, playgrounds and facilities; and Durie Hill Elevator . responding to the impact of flood and heavy rainfall events on parks and sportsground Council will need to respond to the effects of surfaces; coastal erosion of Castlecliff Reserve climate change on the port’s infrastructure; dunes; and decisions in relation to key sports manage the airport’s usage; implement the port facilities . revitalisation project; and review mole structures, ownership and the effects of coastal erosion / accretion over the period covered by this Cultural and events facilities strategy . Whanganui District Council owns an eclectic portfolio of iconic venues for events of all types . Information services These facilities encourage vibrancy and support the community to live an active lifestyle . These Information services infrastructure is essential for facilities are conveniently located in the heart of all Council functions and activities as well as the CBD . many customer and shareholder-based services .
This portfolio will primarily focus on the following In today’s digital world, information services infrastructure issues over the next 30 years: infrastructure has moved from being an added optional improvement to now being a completely • Funding of community, cultural and event interwoven and critical part of any organisation . infrastructure to ensure a high standard of facilities that meet the needs of the The main issues for this portfolio will be CCTV community . network degradation and aging and ensuring that • Monitoring and responding to aging equipment the Council’s data, network and systems are and facilities – including through a replacement protected . programme for the Royal Wanganui Opera House from year ten of the strategy . • Managing increasing community expectations and higher regulatory standards .
40 Long Term Plan 2018–2028 Consultation Document Priorities
The Council is committed to continuing to address the five key themes identified in this strategy:
• Demographic and land use changes • Natural events and climate change • Sustainable asset management approach • Changing legislative requirements and environmental standards • Affordability
As a result, our specific priorities will be to:
• Reduce costs, increase revenue and work in partnership with others . • Monitor and be responsive to environmental, community and technological changes . • Take a risk based approach to asset management . • Develop resilience in funding and assets . • Invest in new assets where levels of service are not being met and for growth .
For the decade to 2027/28 covered by the Long Term Plan, combined annual operational and capital spending is expected to be between $86M and $102M with an average of $93M per year .
A steep increase in capital spending on infrastructure is forecast for 2032-2034, when approximately $35M will be required, mainly to replace the Dublin Street Bridge as it reaches the end of its life . Funding for this project will be from a combination of government subsidy and debt .
The maintenance, renewal and capital expenditure programme for Council’s core assets is based on the information in the Council’s asset/activity management plans . This is the best information available to the Council about these assets . While the information around age, type and quantity is reliable for some assets (e g. . underground pipes), it is acknowledged that information around condition has some limitations . Where these limitations exist the information will be reviewed as new information becomes available . Updated information could result in changes to the costs or timing of planned expenditure .
Our infrastructure strategy 41 Proposed key infrastructure projects 2018-2028
Project Description Why it’s needed Cost/timing
Wastewater – Capital expenditure over 10 years – $20.0M
Extend life of the Replace or upgrade Computer analysis and CCTV $5M older sections of inspections will help identify network using a risk- 2018-2028 underground pipes . parts of the network that are at based approach Reline deep or risk of failure and allow early inaccessible pipes using investment in critical sections . cost-effective underground techniques .
Improve wet weather Direct expenditure at To mitigate the effect of wet $5M reducing inflow and weather spills on the performance of the 2018-2028 infiltration into the environment, and habitable areas wastewater system wastewater network, and build additional capacity to support the performance of the wastewater network during wet weather events .
Stormwater & drainage – Capital expenditure over 10 years – $27.2M
Integrated catchment Focus on targeted Surface flooding during heavy $1 7M. management projects to improve the rain events and increased flow 2018-2028 overall performance of from new developments can the stormwater system . cause disruption when the network exceeds capacity .
Extend life of the Replace or upgrade Computer analysis and CCTV $5M network using a risk- older sections of inspections will help identify 2018-2028 underground pipes . parts of the network that are at based approach Reline deep or risk of failure and allow proactive inaccessible pipes using investment in critical sections . cost-effective underground techniques .
Water supply – Capital expenditure over 10 years – $20.8M
Replace Kai Iwi and Sections of this critical Pipe failure will reduce water $1 0M. pipe are in poor supply capacity and damage Castlecliff trunk 2019-23 condition and major roading infrastructure . mains unsuitable for high pressure zones .
Mill Road Mosston Castlecliff industrial Increase flow and pressure for $2 .3M Road renewal and area . Growth and the Westbourne and Mill Road 2018-23 demand . development . Provide firefighting development for future industrial developments .
42 Long Term Plan 2018–2028 Consultation Document Project Description Why it’s needed Cost/timing
Water criticality Water criticality The model will be used to $1 .5M model assessment within water prioritise critical water mains to 2018-22 network . Capital be renewed within the water projects identified by network . criticality model .
Roading & footpaths – Capital expenditure over 10 years – $121.1M
Fitzherbert Avenue New road construction Needed to improve network $1M extension to link Castlecliff and efficiency and increase road 2018-21 the Westbourne safety, particularly around the industrial zone to the schools in and about Totara city and SH3 route . Street .
Heads Road-Beach This intersection serves A roundabout is needed to $1 .4M Road roundabout the district’s industrial provide safe and improved rail 2019-20 heart and rail link . It has operation while improving safety increasing volumes of for all road users . heavy traffic .
Dublin Street Bridge Roadway deck Needed to maintain network $33 3M. replacement replacement . resilience and efficiency . 2028-33
Wakefield Street Railway overbridge Needed to maintain existing $1 .8M replacement . levels of service, because the Bridge replacement 2018/19 existing bridge is reaching the end of its life for use by motor vehicles (cars & trucks) . Motor vehicle use will be prohibited after 2018/19 .
Mosston and Road widening and Needed for network resilience $10 .6M realignment . and efficiency, as well as Montgomery Road 2025/31 enabling growth and for safety reconstruction reasons .
Bridge 15 Ernies Bridge Needed to maintain efficient $750K replacement truck access to farms above this Kauarapaoa Road 2018/20 site (RP9 .9) and the resilience for bridge replacement access to large blocks of land .
Cycling Improvement of urban Improvements needed to align $6 1M. shared pathways . with Council’s Active Transport improvements 2018/25 Strategy to improve cycle safety, improve community health, promote Nga Ara Tuhono/ Mountains to the Sea, Great Rides to tourists and Whanganui as a cycle safe city .
Our infrastructure strategy 43 Project Description Why it’s needed Cost/timing
Traffic signal Upgrade the existing Needed to address safety $560K traffic signals along deficiencies and renew outdated renewals 2018/21 upper Victoria Avenue . traffic signal componentry at the intersection of Victoria Avenue with Glasgow St, Dublin St and Ingestre St .
Wikitoria Road Replacement of existing Needed for resilience purposes . $0 7M. (3) culverts into a single culvert 2019/20 culvert/bridge .
Cultural facilities – Capital expenditure over 10 years – $46.7M
Sarjeant Gallery Seismic strengthening, The existing building meets only $29M refurbishment and 5% of the new building standard 2018-2021 extension of the and must be strengthened and Sarjeant Gallery at refurbished to be fit for purpose; Pukenamu Queens Park . as well as extended to provide much needed exhibition space, storage for Whanganui’s nationally significant art collection, an education facility and staff quarters .
44 Long Term Plan 2018–2028 Consultation Document Future years
The following key projects are planned for Years 11–30
Project Years Cost
Library capital projects 10-30 $1 7M.
Royal Wanganui Opera House improvements 10-20 $5M
Cooks Gardens upgrade 15-25 $5M
Dublin Street Bridge replacement 10-15 $33 .3M
Mosston and Montgomery Roads reconstruction 7-13 $10 .6M
Library projects Cooks Gardens upgrade
Over the next four years, we aim to establish four The current indications are that the track will self-service suburban library hubs in partnership require replacement within the next two years . with existing facilities . The Mobile Library is at the While consideration can be given to a staged and end of its useful life . Replacement by two vans in partial replacement of the track, there is a 2018/19 will provide service resilience at a lower question over whether this would meet the level cost than simple ‘like for like’ replacement . Other of service required by the user . This would have a library projects will extend out to year ten . This direct impact on its use and the justification for should provide enough time for the Council to proceeding . If full replacement of the track is work with community groups and businesses to required, then this will require a significant identify areas that would most benefit from this decision from Council . initiative . The Davis Library will remain at its current location in Queen’s Park . The library expenditure in years 11 to 30 covers the replacement or refurbishment of existing assets .
Royal Wanganui Opera House improvements The Royal Wanganui Opera House will continue to be funded similarly for the next ten years and will upgrade equipment on an as required basis . Any significant changes in design and setups around the backstage and stage support will be planned from year ten . However, this may need earlier reviewing if there is a dramatic change in user requirements that have a significant impact on bringing shows to Whanganui .
Our infrastructure strategy 45 Changes to the levels of service
In general we will maintain the present levels of service across all activities . The following graphic outlines the extent of change to service levels across each activity group .
Unchanged
Water supply Wastewater Parks and Roading and network recreation footpaths We will invest in additional pipework at The wastewater Levels of service will be Investment, with the aid target locations and bulk Treatment plant has been largely unchanged of central government water source to increase completed, and we are although some funding in additional redundancy . now improving wet programmes will see an shared pathways, will weather performance increase to levels of increase our levels of and directing targeted service such the service in connectivity . capital investment to velodrome Footpath spending resolve the issue of wet redevelopment project remains unchanged . weather spills from the and the provision of wastewater network . The more public toilets . remaining wastewater levels of service remain unchanged .
46 Long Term Plan 2018–2028 Consultation Document Enhanced
Community, Iwi engagement Stormwater cultural and Whanganui District Targeted capital events facilities Council works with Māori investment will see to build community in a increases in levels of The redevelopment of mutually appropriate service available to the Sarjeant Gallery Te way . This approach is residential and Whare o Rehua especially important in commercial premises Whanganui in 2018 to infrastructure planning, within the urban zone . 2021 represents an environmental This is to increase pipe increase in level of management and sizes where bottle-necks service, both in terms of development . The have been identified and long-term preservation Council’s policy direction provide attenuation in of cultural heritage and and planning processes wetlands and other in improved levels of take into account low-lying areas where access to cultural effective engagement this is practically heritage collections . with hapū and iwi achievable . Establishing suburban entities – as well as library service hubs will marae and whānau as increase the accessibility required . of our library collections and services in underserved areas .
Changes to the levels of service 47 48 Long Term Plan 2018–2028 Consultation Document More for you to think about…
As well as the issues we’re specifically seeking your feedback on, there are a range of other initiatives, work programmes and possible changes planned for the next ten years that you may be interested in .
Kerbside recycling Or instead of a flat rate for all households, a combination approach of a flat rate and Whanganui District Council is considering a user-pays could be considered . This would proposal to introduce a rates funded kerbside encourage households to reduce the amount of rubbish, mixed recycling and organic (garden rubbish they create and reward those who do and/or food) collection service for urban with a lower charge . households by the 2020/21 financial year, to enable and encourage all residents to recycle Additionally the Council may decide to provide more and send less waste to landfill . only one of the three possible kerbside services or a combination of them, depending on the The details of any proposed service (such as perceived benefits . collection frequencies, what we’ll collect, size and types of bins, user-pays, etc .) will be further We need to make a collective decision based on investigated and determined – but only if the the right balance for the environment and the community and the Council agrees, in principle, district as a whole . that a rates-funded service should be introduced . The Council will undertake a lot more A Council-managed kerbside collection service investigation and discussion before making any would provide recycling bins to all households firm decision to go ahead with a kerbside making it easy for everyone to recycle and help collection service . This is your opportunity to let to reduce the thousands of tonnes of waste that us know if you support this idea, so we can currently gets sent to landfill . further investigate options . The earliest any new service could start is 2020/21 . An initial estimate of cost for a three-bin kerbside service option (recycling, rubbish and organic waste) is somewhere between $250 and $280 per Whanganui Regional Museum household annually . This would include capital We are proposing to increase our funding to the and operational costs . Whanganui Regional Museum from $800,000 to Currently Whanganui households can pay $850,000 for the 2018/19 year, and then to anywhere between $90 and $420 annually for $900,000 in the 2019/20 year . The funding private kerbside waste collections depending on increase is to enable the museum to undertake bin size and collection frequencies . Therefore promotional activity to capitalise on its re- under the proposal that’s being discussed some opening in 2018; to improve the care of its residents will be paying less per year for the full nationally-important collections; and to enhance collection service and some more, depending on its exhibition and events programmes for the current kerbside disposal habits . benefit of the community .
More for you to think about… 49 Whanganui Resource Recovery Heritage incentive funding Centre Trust Heritage buildings are vitally important to the We have allocated an additional $25,000 per year Whanganui community, for social, cultural and to the Whanganui Resource Recovery Centre economic reasons . Heritage buildings are at risk taking its total funding to $175,000 per year . This of becoming cases of ‘demolition by neglect’ by increase will enable the centre to introduce a virtue of the earthquake-prone regulations . kiosk reception booth to handle all traffic to the rear of the centre and manage the centre’s Council has allocated $100,000 for a heritage increasingly popular user-pays services . This will grants scheme to assist building owners to improve customer service and address health and comply with heritage preservation initiatives safety concerns . which may also provide an incentive to undertake earthquake strengthening work at the same time .
Library hubs Sport and recreation strategy Over the next four years, we aim to establish four self-service suburban library hubs in partnership We have allocated $100,000 towards the with existing facilities which will enable us to implementation of our Sport and Recreation deliver a service locally in a cost-effective manner . Strategy . In 2018/19 we will continue development Each hub will carry a selection of the best and discussions with sporting codes to support better most popular works from the library collection and more efficient utilisation of Whanganui’s and provide free wi-fi . Library members will be sport and recreation facilities (both Council and able to check out and return items using a self- non-Council-owned) . issue machine and an auto-return bookcase (like Engagement will continue with national partners the machines in use at the Davis Library) . Staff of such as Sport NZ, High Performance NZ and the partner facility will provide oversight of the national and regional sporting bodies to promote library hub, and stock will be updated, refreshed Whanganui as a destination for events . and returned by the library vans . We plan to provide grants or co-funding towards Each hub will cost $50,000 to set up and the a new turf at the existing Gonville Hockey Turf modest operating costs will be met from the location . While Hockey Whanganui supports the library’s existing budget . The first hub will be strategy’s recommendation to relocate the turf established in Castlecliff during 2018/19 . Further next to the Collegiate turf or at Springvale Park, hubs will be established over the years 2019/20 the current financial position does not allow for to 2021/22 and we are considering establishing this to happen in the short term . Having two turfs hubs in Whanganui East, Aramoho and in close proximity remains the long-term Springvale . The exact locations have yet to be objective for Hockey Whanganui . The total determined and we are very keen to hear from project cost for a new turf at Gonville is in the any potential commercial or non-profit partner region of $850,000 . interested in being part of this community initiative .
50 Long Term Plan 2018–2028 Consultation Document
52 Long Term Plan 2018–2028 Consultation Document Dog pound Wakefield Street Bridge
We have allocated $550k in Year 1 to complete On the basis of detailed inspections, we will need construction of a new and compliant dog pound to close the Wakefield Street Bridge to vehicle on Airport Road . We already had $450,000 in the traffic very soon . budget for the 2017/18 year, taking the total funding to $1M . The existing pound has served The cost of replacing the Wakefield Street Bridge the city well however can longer be maintained is $1 .9M . We have applied for funding from the to a level that provides an appropriate New Zealand Transport Agency, and are awaiting environment for the housing of dogs on a the results . Replacement will only go ahead if this temporary basis . Nor can it be engineered to funding is approved . meet the current minimum compliance specifications . The new pound, which is in a more Dublin Street Bridge appropriate location, will provide a safer environment for the animals and for the officers The Dublin Street Bridge is reaching the end of its who are responsible for the welfare of life and the Council needs to decide in the next impounded dogs . ten years whether or not to renew it . If it is going to be renewed, a further decision will need to be made about the timing of the project . Regional facilities The estimated cost of replacing the Dublin Street We have allocated $50,000 per year as a Bridge is $33 3M. . This is dependent on receiving contribution towards a Regional Facilities fund . funding from the New Zealand Transport Agency . This fund recognises the benefit certain localised facilities, such as Whanganui’s cycling velodrome, provide to the wider Manawatu-Whanganui Wikitoria Culvert region . Cost efficiencies can be gained through We are proposing to upgrade the Wikitoria Road having one high quality facility for the region culvert, subject to New Zealand Transport rather than attempting to duplicate facilities in a Agency approval of funding . The culvert provides number of different centres . route security to the Whanganui Airport against the effects of flooding, which have occurred due Transferring of our marine and airport to improvements on the State Highway . activity We have applied for funding from the New We are proposing to transfer the governance and Zealand Transport Agency, and are awaiting the management of the Ports Group from Whanganui results . Replacement will only proceed if funding District Council Holdings Limited into Council’s is approved . Property Department . The Ports Group is an operational part of Council like many other activities such as Parks and Property and outputs of the Ports Group align with those of the Property Department . It is proposed that Whanganui District Council Holdings Limited retain governance and management oversight of the Flight School and GasNet .
More for you to think about… 53 Lower river control Property Portfolio Investment Plan
In 2010 Whanganui District Council purchased Our Property Portfolio Investment Plan back the port business at the Castlecliff Port and demonstrates the Council’s investment approach also took over control of the lower Whanganui for properties categorised as ‘investments’ or River control structures . Like the port, the properties considered ‘surplus to Council’s structures were and largely still are, suffering requirements’ . It specifically excludes direction from many decades of deferred maintenance . The for properties which fall outside of these two lower river control structures hold the river in its categories (e g. . municipal properties such as current alignment downstream of the Cobham parks & reserves, libraries, community halls, Bridge and include the North and South Moles, Council administration buildings etc .) . but exclude port structures such as the Basin Wall . The plan takes a different approach to management of the Council’s investment Horizons Regional Council is mandated to portfolio, compared with what has been done in undertake flood management and erosion control the past . It recognises the importance of in the region and agreement has been reached, investing for our local economy to generate subject to this Council and Horizons’ Long Term optimal returns balanced with acceptable levels Plan processes that Horizons will take over the of risk and cultural sensitivity . We aim to have ownership and management of the control Whanganui acknowledged nationally as a structures . The agreement also provides for this progressive and vibrant city – to develop our Council to meet 25% of the costs associated with existing investments, seek outside opportunities the North and South moles for ten years . Other to diversify risk and increase our financial than port structures, the other exclusion from the capacity so we can continue to grow as a agreement between the two Councils concerns successful community . activities on the structures such as fishing platforms, roads and other amenities which are The Council sought feedback on the plan owned and maintained by this Council . during the period 15 December 2017 Prior to the 2017 general election, the Labour through to 16 February 2018 and we are Party offered $3M to repair the Moles and this continuing to seek feedback throughout Council and Horizons are collaboratively our Long Term Plan consultation period . preparing a case to be lodged with the You can read the plan on our website at government by mid-2018 seeking a government www whanganui. govt. .nz/long-term-plan contribution towards the costs to repair the river control structures . A government contribution will enable both councils to speed up the timing of the repair work and give higher priority to aesthetic issues compared to the austere approach provided for in the Long Term Plans .
Preparation of the application to the government will not only involve design and estimating work, but also a Memorandum of Understanding between Te Awa Tupua, Tupoho, Horizons and Whanganui District Council . Changes to development contributions
We have reviewed our Development Contributions Policy and have recently consulted on a new policy of collecting development contributions from 1 July 2018 . These will be targeted at the urban expansion areas identified in both the Otamatea West and Springvale Structure plans .
Developments outside of these areas will to use a range of tools such as infrastructure access fees, targeted rates and private developer agreements to reflect the true cost of providing network infrastructure for growth in the district . We believe this approach better reflects our district as a ‘business friendly’ place, will be favourable for developers and will encourage infill development .
The proposed Long Term Plan budget includes development contributions .
More for you to think about… 55 Our Leading Edge Strategy
Whanganui District Council Council adopted its Our proposed Long Tem Plan contains a number Leading Edge vision in October 2014, and the of projects and initiatives that we believe will Leading Edge Strategy was adopted in continue moving us towards our Leading Edge conjunction with the vision, which provides the vision, while delivering community outcomes Council’s overarching strategic context . A review related to a united, connected, creative, in 2017 of this strategy ensures it remains environmental and economically prosperous appropriately aligned to the organisation’s action community . plans and aspirations and that it is structured in the right way to really underpin our work and drive us towards meeting our vision .
Some projects/initiatives and their relationship to our vision:
Community outcomes Project
Community • Effective engagement with hapū and iwi • Earthquake strengthening • Implementation of Sport and Recreation Strategy • Welcoming Communities Programme • Consideration of health ethos in policy development
Connectivity • Upokongaro shared pathway
Creativity • Sarjeant Gallery • Library hubs • Whanganui & Partners work – economic development initiatives
Environment • Castlecliff rejuvenation efforts • Coastal plan • Town centre revitalisation
Economy • Dog pound • Port revitalisation project • Completion of the new wastewater treatment plant • Implementing our International Relations Strategy
56 Long Term Plan 2018–2028 Consultation Document What’s the same & what’s changed
This table outlines some of our other initiatives and services, highlights actions planned for the next ten years and notes any key changes from previous plans .
Initiatives Key changes
• Supporting and growing the district’s economy • Promotion of visitor, business and educational through major events such as the New Zealand activities through Whanganui & Partners Masters Games, Whanganui Vintage Weekend and • Continued support for key events with an arts & literary festivals increase in online promotional communications • Supporting major attractions, venues and sports • Establishment of the Whanganui Venues and venues Events team to attract and deliver events at Council-owned venues
• Encouraging recycling and reducing waste to • Investigations into introducing a Council landfill kerbside recycling scheme • Undertaking regulatory activities such as dog • Introducing corporate environmental monitoring control to monitor our impact on the environment – such as paper use and fuel use • Building of a new pound to ensure compliance
• Support and meeting processes for the Mayor, • Committee structure established to improve councillors and the Rural Community Board governance, performance and accountability of Council • Wanganui District Council Holdings Ltd (WDCHL) • Increased contribution from WDCHL due to higher GasNet Ltd dividends
What’s the same & what’s changed 57 Independent Independent auditor’s report on Whanganui District Council’s auditor’sConsultation Document for its proposed report 2018-28 Long-Term Plan
I am the Auditor-General’s appointed auditor for Whanganui District Council (the Council). Section 93C of the Local Government Act 2002 (the Act) requires an audit report on the Council’s consultation document. We have done the work for this report using the staff and resources of Audit New Zealand. We completed our report on 13 March 2018.
Opinion
In my opinion:
• the consultation document provides an effective basis for public participation in the Council’s decisions about the proposed content of its 2018-28 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 district, and the consequences of those choices; and
• the information and assumptions underlying the information in the consultation document are reasonable.
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.
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:
58 Draft Long Term Plan Independent • 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; auditor’s report • 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.
I am responsible for reporting on the consultation document, as required by section 93C of the Act. I do not express an opinion on the merits of any policy content of the consultation document.
Independence
In carrying out our work, we complied with the Auditor-General’s:
• independence and other ethical requirements, which incorporate the independence and ethical requirements of Professional and Ethical Standard 1 (Revised); and
• quality control requirements, which incorporate the quality control requirements of Professional and Ethical Standard 3 (Amended).
In addition to this report on the Council’s consultation document and all legally required external audits, we have provided an assurance report on certain matters in respect of the Council’s Debenture Trust Deed, and we have also carried out the following engagements for a subsidiary which are compatible with those independence requirements:
• an assurance engagement involving issuing of certificates pursuant to the Gas Distribution Information Disclosure Determination 2012 for the regulatory period ended 30 June 2017;
• an assurance engagement on the default price-quality path Compliance Statement prepared under the Gas Distribution Services Default Price-Quality Path Determination 2013 NZCC 4 for the period ended 30 September 2017.
These assignments are compatible with those independence requirements. Other than these assignments, we have no relationship with or interests in the Council or any of its subsidiaries.
Debbie Perera Audit New Zealand On behalf of the Auditor-General, Palmerston North, New Zealand
Independent auditor’s report 59 Tell us what you think… We want to hear from our community and invite you to make a submission to our proposed Long Term Plan 2018-2028 .
How to make a submission
Complete the online submission form or Your written submission will be made available to download a printable version at councillors, council staff and the public as part of www whanganui. govt. .nz/long-term-plan the consultation process . Your submission will be considered by the Council, but may not Alternatively you can email your thoughts to necessarily result in any changes you request policysubmissions@whanganui govt. .nz . being made .
Please indicate whether you would like to speak Supporting information for our proposed Long to the Council about your submission at the Term Plan 2018-2028 is available on our website hearings on 2 and 3 May 2018 . If you wish to www whanganui. govt. .nz/long-term-plan or speak make sure you have completed your contact us on phone (06) 349 0001 or email contact details as you will be contacted after the policysubmissions@whanganui govt. .nz close of submissions regarding a time for you to attend a hearing . Submissions close at 5.00pm on Thursday, 19 April 2018.
Supporting Documents
• Financial Strategy • Activity plans including performance • 30-Year Infrastructure Strategy measures • Forecasting assumptions • Draft Revenue and Financing Policy • Full financial statements • Development Contributions Policy • Funding Impact Statement and rates • Liability Management Policy information • Investment Policy • Proposed fees and charges 2018/19 • Draft Rates Remission Policy, Draft Rates • Full list of capital expenditure projects by Postponement Policy and Draft Policy on the group Remission and Postponement of Rates on • Project updates Māori Freehold Land • Significance and Engagement Policy