Long Term Plan 2018—2028

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 r $6M xpenditu onnage t 2,000,000 e t s e v $4M oading Har r 1,000,000 $2M try s e r o 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 .

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