Extraordinary Council agenda (29 June 2021) - Agenda

EXTRAORDINARY COUNCIL MEETING AGENDA

Tuesday 29 June 2021 at the conclusion of the Finance, Audit and Risk Committee meeting

COUNCIL CHAMBER LIARDET STREET,

Chairperson: Mayor Neil Holdom Members: Cr Tony Bedford Cr Sam Bennett Cr Gordon Brown Cr David Bublitz Cr Anneka Carlson Cr Murray Chong Cr Amanda Clinton-Gohdes Cr Harry Duynhoven Cr Richard Handley Cr Stacey Hitchcock Cr Colin Johnston Cr Richard Jordan Cr Dinnie Moeahu Cr Marie Pearce

1 Extraordinary Council agenda (29 June 2021) - Agenda

Purpose of Local Government The reports contained in this agenda address the requirements of the Local Government Act 2002 in relation to decision making. Unless otherwise stated, the recommended option outlined in each report meets the purpose of local government and:

 Promote the social, economic, environmental, and cultural well-being of communities in the present and for the future.

 Would not alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or transfer the ownership or control of a strategic asset to or from the Council.

END

2 Extraordinary Council agenda (29 June 2021) - Health and Safety

Health and Safety Message

In the event of an emergency, please follow the instructions of Council staff.

Please exit through the main entrance.

Once you reach the footpath please turn right and walk towards , congregating outside the Spark building. Please do not block the foothpath for other users.

Staff will guide you to an alternative route if necessary.

If there is an earthquake – drop, cover and hold where possible. Please be mindful of the glass overhead.

Please remain where you are until further instruction is given.

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APOLOGIES

None advised

4 Extraordinary Council agenda (29 June 2021) - Deputations

ADDRESSING THE MEETING Requests for public forum and deputations need to be made at least one day prior to the meeting. The Chairperson has authority to approve or decline public comments and deputations in line with the standing order requirements.

PUBLIC FORUM Public Forums enable members of the public to bring matters to the attention of the committee which are not contained on the meeting agenda. The matters must relate to the meeting’s terms of reference. Speakers can speak for up to 5 minutes, with no more than two speakers on behalf of one organisation.

 None advised

DEPUTATIONS Deputations enable a person, group or organisation to speak to the meeting on matters contained on the agenda. An individual speaker can speak for up to 10 minutes. Where there are multiple speakers for one organisation, a total time limit of 15 minutes, for the entire deputation, applies.

 None advised

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REPORTS

1 Long-Term Plan 2021-2031 Adoption Report

2 Development and Financial Contributions Policy 2021

3 NPDC Sustainable Homes Voluntary Targeted Rate Amendments

4 GUBOOF Financial Delegations Adjustments

5 Venture Taranaki 2021/22 Transitional Funding Request

END

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ADOPTION OF THE LONG-TERM PLAN 2021-2031 AND SETTING THE RATES FOR 2021/22

MATTER

1. The matter for consideration by Council is to adopt the Long-Term Plan 2021- 2031, and then to set the rates for the 2021/22 financial year. The Long-Term Plan 2021-2031 has been subject to two rounds of community engagement, and implements Council’s Sustainable Lifestyle Capital vision.

RECOMMENDATION FOR CONSIDERATION

That having considered all matters raised in the report, the Council: a) Notes that the Long-Term Plan 2021-2031:

i. Has been developed through two rounds of community engagement:

 the Top Ten Let’s Kōrero campaign, with 9,403 responses, and

 the Your home, your say Long-Term Plan 2021-2031 Consultation Document, focused on three Big Calls (Fixing the Plumbing, Greening our Place, and Paying it Forward), with 4,563 submissions.

ii. Implements the Council’s Sustainable Lifestyle Capital vision, and its goals of Partnerships, Delivery, Community, Sustainability and Prosperity.

iii. Includes $963.5 million in capital expenditure over the 10 years.

iv. Includes $2 billion in operating expenditure over the 10 years.

v. Has a rates rise of 12 per cent in year one, leading to an increase in the average residential rate of 9.7 per cent or $233.23 per annum (or $4.47 per week).

vi. Has an average rates rise of 6.1 per cent in years 2 to 10.

vii. Includes a decision to shift to volumetric charging for water consumption for all rating units receiving water supply in 2024/25.

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viii. Includes the Financial Strategy 2021-2031 and the Infrastructure Strategy 2021-2051. b) Adopts the Long-Term Plan 2021-2031 (contained in Appendix 1). c) Sets in accordance with the Local Government (Rating) Act 2002 (the Act) the rates for the financial year commencing on 1 July 2021 and ending on 30 June 2022 as follows:

All rates below are stated inclusive of Goods and Services Tax.

1. Uniform Annual General Charge Pursuant to section 15 of the Act, a Uniform Annual General Charge of $441.58 per separately used or inhabited part of a rating unit.

2. General Rate Pursuant to section 13 of the Act, a general rate on all rateable land on the basis of land value and assessed differentially against each property group as described below at the rate of cents in the dollar:

Group 1 – Commercial/Industrial 1.7542c Group 2 – Residential 0.4235c Group 3 – Small Holdings 0.3448c Group 4 – Farmland 0.3374c

3. Targeted Rates

3.1. Roading Targeted Rate Pursuant to section 16 of the Act, a targeted rate for roading, being a fixed amount of $133.65 per separately used or inhabited part of a rating unit on all rateable land in the district.

3.2. Refuse Collection and Disposal Targeted Rate Pursuant to section 16 of the Act, a targeted rate for refuse collection and disposal (including kerbside recycling), being a fixed amount of $197.80 per separately used or inhabited part of a rating unit to which the Council provides the service.

3.3. Sewage Treatment and Disposal Targeted Rate Pursuant to section 16 of the Act, a targeted rate for sewage treatment and disposal as follows:

a) A fixed amount of $541.00 per separately used or inhabited part of a rating unit in respect of rating

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units (other than commercial and industrial rating units and schools) connected either directly or indirectly through a private drain to a public sewerage drain.

b) An amount per water closet or urinal depending on the number in each rating unit for rating units used for commercial and industrial uses (including schools) connected either directly or indirectly through a private drain to a public sewerage drain as shown below.

Sewage Treatment and Disposal, charges per water closet or urinal:

One to two $541.00 Three $460.00 Four $406.00 Five $352.00 Six to 10 $325.00 11 to 15 $298.00 16 to 20 $284.00 21 or more $271.00

c) A fixed amount of $271.00 per separately used or inhabited part of a rating unit for the Sewage Treatment and Disposal Part-Charge for areas where a sewage scheme has been expanded to and is now available (including Ōākura) for rating units in the those sewerage scheme areas that agreed to connect to the sewer pipe and have not done so.

3.4 Water Supply Targeted Rate

Pursuant to sections 16 and 19 of the Act, targeted rates for Water Supply as below:

Rating units connected to a Council supply that are not volumetrically charged and do not have a restricted flow

a) A fixed charge of $43.24 per separately used or inhabited part of a rating unit, and

b) A standardised consumption charge of $366.16 per separately used or inhabited part of a rating unit.

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Rating units connected to a Council supply that are volumetrically charged and do not have a restricted flow

a) A fixed charge of $43.24 per separately used or inhabited part of a rating unit

b) A consumption charge of:

Standard rate for consumption up to $1.62 50,000m3 (per cubic metre) Rate for consumption in excess of $1.64 50,000m3 per annum (per cubic metre) Waitara industrial untreated water $1.11 supply (per cubic metre) * Large users are charged the standard volumetric charge rate to 50,000m3 and the excess rate for amounts in excess of 50,000m3.

Rating units connected to a Council supply that have a restricted flow

a) A fixed charge of:

Restricted flow connector per unit (1m3 unit) $260.79

3.5 Swimming Pool Compliance Targeted Rate Pursuant to section 16 of the Act, a targeted rate for swimming pool compliance being a fixed charge of $48.81 per separately used or inhabited part of a rating unit which has a swimming pool/spa pool.

3.6 Ngā Whare Ora Taiao o Ngāmotu (New Plymouth Sustainable Homes Voluntary Targeted Rate) Scheme Targeted Rate Pursuant to section 16 of the Act, a targeted rate for Ngā Whare Ora Taiao o Ngāmotu per rating unit which has been granted funding assistance for household improvements as below:

For borrowers who applied 11.11 per cent of the on or before 17 June 2020; service amount (the and for borrowers who cost of borrowed applied after 17 June 2020 funds and applicable who elected to pay over a finance charges) nine year period

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For borrowers who applied 20 per cent of the after 17 June 2020 who service amount (the elected to pay over a five cost of borrowed year period funds and applicable finance charges)

4. Due Dates and Penalties

Rates other than volumetric water charge rates

4.1 Resolves that the Council’s rates (except volumetric water charge rates) for the 2021/22 year (1 July 2021 to 30 June 2022) will become due and payable by four equal instalments on the following dates:

Instalment 1 25 August 2021 Instalment 2 24 November 2021 Instalment 3 23 February 2022 Instalment 4 25 May 2022

4.2 The Council will charge a penalty of 10 per cent on any part of each respective instalment (except volumetric water charge rates) that remains unpaid after the instalment due date in clause 4.1

4.3 The Council will charge an additional penalty of 10 per cent on any rates (except volumetric water charge rates) that were assessed in any previous financial years prior to 1 July 2021 and which remain unpaid on 1 July 2021. The penalty will be applied on 30 September 2021.

4.4 A further additional penalty of 10 per cent will be added to any rates (except volumetric water charge rates) that were assessed prior to 1 July 2021 and which remain unpaid on 31 March 2022.

Volumetric water charge rates

4.5 Resolves that the Council’s rates for volumetric water charge rates will generally be invoiced on a quarterly basis. However, rating units may be invoiced monthly if the unit has previously been invoiced monthly or the ratepayer has notified the Council before 30 June 2021 to be invoiced monthly.

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4.6 Resolves that the Council’s rates for volumetric water charge rates for rating units invoiced on a quarterly basis for the 2021/22 year (1 July 2021 to 30 June 2022) will become due and payable by instalments on the following dates:

Instalment 1 24 November 2021 Instalment 2 23 February 2022 Instalment 3 25 May 2022 Instalment 4 24 August 2022

4.7 The Council will charge a penalty of 10 per cent on any rates for volumetric water that remains unpaid after the instalment due date in clause 4.6

4.8 Resolves that the Council’s rates for volumetric water charge rates for rating units invoiced on a monthly basis for the 2021/22 year (1 July 2021 to 30 June 2022) will become due and payable on the following dates:

Instalment 1 20 August 2021 Instalment 2 20 September 2021 Instalment 3 20 October 2021 Instalment 4 22 November 2021 Instalment 5 20 December 2021 Instalment 6 20 January 2022 Instalment 7 21 February 2022 Instalment 8 21 March 2022 Instalment 9 20 April 2022 Instalment 10 20 May 2022 Instalment 11 20 June 2022 Instalment 12 20 July 2022

4.9 The Council will charge a penalty of 10 per cent on any rates for volumetric water that remains unpaid after the instalment due date in clause 4.8.

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COMPLIANCE Significance This matter is assessed as being critical. This report identifies and assesses that there is only one reasonably practicable option for addressing the matter:

Options 1. Adopt the Long-Term Plan 2021-2031 and set the rates for 2021/22

The persons who are affected by or interested in this matter Affected persons are all residents and ratepayers of . Recommendation This report recommends option 1 for addressing the matter. Long-Term Plan / Yes. This report recommends the adoption of the Long-Term Annual Plan Plan 2021-2031, thereby replacing the Long-Term Plan 2018- Implications 2028. Significant Policy and Plan No Inconsistencies

EXECUTIVE SUMMARY

2. This report recommends Council adopt the Long-Term Plan 2021-2031 (the LTP) attached to this report, and then sets the rates for the 2021/22 financial year.

3. The LTP presented for adoption reflects Council’s actions and decisions made over the past year, including two rounds of community engagement. The first was the Top Ten Let’s Kōrero campaign with 9,403 responses to inform the LTP. The second was the Your home, your say LTP Consultation Document which focused on three Big Calls (Fixing the Plumbing, Greening our Place, and Paying it Forward), and received 4,563 submissions (the most submissions to any LTP for this Council).

4. Adopting the LTP outlines the proposed capital and operating budgets for the next ten years. The LTP includes $2 billion in operating expenditure and $963.5 million in capital expenditure over the 10 years in order to achieve the Council’s Sustainable Lifestyle Capital vision.

5. The first year has a total rates increase of 12 per cent, and the following nine years have an average total rates increase of 6.1 per cent.

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BACKGROUND

6. Long-term plans are a key component of local authority planning processes. They are undertaken every three years, provide budgets for 10 years and include a 30-year Infrastructure Strategy. Long-term plans are where local authorities can re-forecast all budgets and services, and can consider making significant changes to rates, funding and levels of service, in response to changing demographic, economic and social trends alongside community views and preferences. Long-term plans provide funding for other plans and policies.

This LTP has been developed over many months and meetings

7. The initial stages of the LTP development were delayed as a result of the Covid- 19 lockdown and associated restrictions. Elected members and Officers focused energy and effort into revising the Annual Plan 2020/21 to create the Get Us Back On Our Feet Plan which provided economic and social support to the community coming out of lockdown.

8. The first key decision by Council on the LTP was to create a new strategic framework. Having considered two alternatives, the Council delegated, on 21 July 2020 (agenda, minutes), to the Mayor, Chair of the Strategy and Operations Committee, and iwi Co-Chair of Te Huinga Taumatua to determine the final framework.

9. The final framework includes the following vision, mission and goals:1

1 The goals are the Council’s community outcomes under the Local Government Act 2002.

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10. The vision, mission and goals have been used throughout the LTP development process. For instance, they were used in the project prioritisation process, and are part of the statutory considerations in how Council funds each activity in the Revenue and Financing Policy.

11. From July to October 2020 Council undertook the Top Ten Let’s Kōrero campaign. This engagement campaign sought the community’s feedback on ten issues and hot topics for potential inclusion into the LTP. The engagement campaign included a public survey, as well as a representative sample from Research First. There were 9,403 responses to the campaign. The results were presented to Council on 15 December 2020 (agenda, minutes).

12. On 22 December 2020 (agenda, minutes) Council considered initial decisions on operating and capital projects and budgets for the LTP. Council adopted draft supporting information for auditing by Audit , and also identified issues for consultation. They also adopted three draft financial policies (Revenue and Financing, Rates Remission and Postponement, Development and Financial Contributions) for consultation.

13. On 26 February 2021 (agenda, minutes) Council adopted the supporting information (effectively a draft LTP) for community consultation, and the Your home, your say Consultation Document with three Big Calls of Fixing the Plumbing, Greening our Place, and Paying it Forward. Council also adopted a statement of proposal for amendments to Water, Wastewater and Stormwater Services Bylaw to facilitate universal water metering, if that project was agreed to.

14. Your home, your say was consulted on from 3 March to 6 April 2021. The Council held and attended 30 events (from to Urenui), and had a wide range of promotional activities. Council received 4,563 submissions (available on the Council website). They also undertook concurrent consultations on three financial policies and the bylaw amendments. Further, Council also commissioned Research First to provide a representative sample of the six issues under the Big Calls.

15. About 150 oral submissions were heard from 4 to 7 May 2021 (agenda, minutes).

16. On 19 May 2021 Council deliberated on the LTP submissions, technical changes and the Mayor’s paper and recommendations in how to respond to submissions within Council’s decision-making (agenda, minutes). Council resolved:

Big Call 1: Fixing our Plumbing a) Fixing our Plumbing – to increase the three waters renewal budgets in order to address the backlog over 20 years, and to debt fund the renewal of some long-life assets to bridge the gap.

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b) Saving Water and Water Meters – a medium water conservation plan, including water meters, with volumetric charging starting in 2024/25, and to establish a representative group of vulnerable households in the process of tariff development, and to commit to a financial hardship scheme for vulnerable households.

c) Improving Waitara stormwater – to invest $20m over the next 10 years, and to earmark a further $100m in the Infrastructure Strategy.

Big Call 2: Greening our Place d) Extending our Tracks and Trails – to construct the Coastal Walkway extension to Waitara and Te Ara a Ruhihiwerapini – the Kaitake Trail (with additional budget to address cultural issues), to plan and purchase land for the Taranaki Traverse corridor (with additional budget to secure land for a link to Inglewood), and to invest in other tracks and trails across the district.

e) Rolling out our Climate Action Framework – to continue developing the Emissions Reduction Plan and Adaptation Plan, to invest in lower carbon fleet and to invest in a native tree planting programme.

Big Call 3: Paying it Forward f) Developing a Multi-Sport Hub – to fund the Multi-Sport Hub, with the construction of the building in year 4, and to widen the hub scope to a broader well-being centre and to take into account cultural impacts.

What else? g) What else? – to make a number of changes to other capital and operating budgets across the ten years, with the most notable being to fund the Waitara Library redevelopment, as well as addressing some technical changes to performance indicators.

Finalising the LTP

17. Officers have drafted the LTP in line with those decisions. Some of the funding amounts determined by the Council have changed in the final budget through the application of inflation. For instance, bring the Multi-Sport Hub building construction forward from year 6 to year 4 has resulted in the capital budget decreasing by $1.1m but this is an inflation adjustment and does not represent any less funding in real terms. Similarly, some additional budgets moved by Councillors have increased in line with inflation (such as the additional $500,000 for land purchases in year 6 for the Taranaki Traverse Inglewood link results in being $685,000 once inflaltion adjusted).

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Waka Kotahi has unexpectedly decreased funding

18. On 31 May 2021 Officers were notified by Waka Kotahi New Zealand Transport Agency that the indicative funding assistance rates for the Council’s maintenance and renewals have dropped significantly. The table below shows the total impact is a reduction in funding of $12.7 million over the first three years of the LTP. Waka Kotahi expect to confirm the final funding assistance rates in late August.

Local Roads Total Initial LTP Indicative Shortfall Year 1-3 Expenditure NZTA NZTA subsidy Subsidy assumption Operating $27.8m $13.6m $10.6m -$3.0m expenditure – Maintenance Capital expenditure $43.1m $22.0m $12.3m -$9.7m – Renewals Total $70.9m $35.6m $22.9m -$12.7m

19. This will affect budgets for the annual programmes of work for foothpath maintenance, road surfacing, renewals and metalling, bridge component renewals, and drainage and environmental renewals. These budgets keep existing local roads in good condition.

20. Waka Kotahi have indicated this reduction is a result of the impact of the Covid- 19 lockdowns and restrictions as reduced transport use has resulted in a decrease of fuel tax paid, and therefore lower funding available.

21. It should be noted that Waka Kotahi have not yet informed the Council about any changes to funding assistance rates for local road improvements.

22. The LTP forecasting assumptions already note that there is uncertainty as to the level of funding from Waka Kotahi. Historically some funding rates are not confirmed until after the LTP is adopted but variations are usually minor. The assumptions note that if less funding is received then the Council may need to defer projects or provide extra funding to counter the reduction.

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23. In order to receive an unqualified audit opinion on the final LTP from Audit New Zealand, Officers have adjusted down the level of subsidies budgeted to below an Audit defined threshold of materiality. Because final decisions around funding from Waka Kotahi have not yet been confirmed and adjustments to the LTP delivery programme should not be ad-hoc, reductions to subsidy revenue have been made at a programme level in year two and year three of the LTP and offset with funding from depreciation reserves. This method of treatment gives Officers the opportunity to report back to Council the impacts of reduced funding from Waka Kotahi and informed decisions can be made in regards to programme delivery and the associated financial implications. Adjustments can then be made to the Annual Plans for the financial years 2022/23 and 2023/24 to reflect these decisions.

24. The financial implications of the above adjustment compared to that proposed in the draft LTP, reduces subsidy revenue by $4.2 million in both the 2022/23 and 2023/24 financial years. Funding from renewal reserves has been increased by the same amount, with a reduction of $8.2m in the closing balance of the renewal reserve at the end of the LTP (2031). There has been no adjustment to the capital works programme and no change to the rate requirement.

The LTP has now been audited and is ready for adoption

25. The LTP has been subject to audit by Audit New Zealand. The audit process focuses on whether the LTP meets its statutory purpose and the quality of the information and assumptions underlying the LTP.

26. A key focus for Audit has been the technical accounting treatment of the Waitara Perpetual Community Fund, established by the New Plymouth District Council (Waitara Lands) Act 2018.

27. The Office of the Auditor-General also requested that Audit New Zealand undertake an additional review of how Council has implemented the National Policy Statement on Urban Development 2020 (NPS-UD) in the LTP. The NPS- UD requires the Council to plan for housing and business growth, including infrastructure services for that growth. This type of ‘hot review’ is not unusual and is often done across a selection of local authorities to provide checks and insight into how local authorities are dealing with an issue of national importance.

28. The auditing process raised no significant issues as noted in Audit New Zealand’s Opinion and the LTP is now ready for adoption. There are two matters of emphasis in the Audit Opinion, both of which are national issues and not reflective of the decisions of Council:

a) Three Water Reforms. As with the Consultation Document, Audit have noted that the Three Water Reforms have a potential implication for Council and its delivery of water services.

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b) Capital do-ability. Across the country there is a significant increase in expected capital works (both public and private sectors), and therefore there is an increased likelihood of some local authorities experiencing issues in achieving their planned capital work programme.

29. The LTP is set out in Appendix 1 for adoption.

This LTP contains over $3 billion in expenditure over 10 years

30. The LTP sets the Council’s operating and capital expenditure over the next ten years.

31. The LTP sets out over $2 billion in operating expenditure over the next 10 years. This funds the day-to-day running of the Council (including repaying debt and funding renewal reserves, both of which relate to funding capital expenditure). The graph below outlines the operating expenditure by Council service. Almost half of all operating expenditure is in four activities – Transportation, Wastewater Treatment, Water Supply and Parks and Open Spaces.

Ten year operating expenditure by significant activity ($m) $347.8 $350 $300 $280.8 $250 $219.8 $210.8 $200 $186.2 $183.2 $145.4 $143.3 $150 $105.9 $100 $74.9 $72.4 $61.6 $45.0 $44.8 $50 $31.7 $4.5 $-

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32. The LTP sets out $963.5 million in capital expenditure over the next 10 years. This funds the development of new assets and the replacement of existing assets at the end of their life. The graph below outlines the capital expenditure by Council service. Over half of capital expenditure is contained in just two activities – Wastewater Treatment and Transportation. Another way of looking at this is that, across all activities, over half of all capital expenditure is in renewing existing assets.

Ten year capital expenditure by significant activity ($m) $263.9 $275 $249.8 $250 $225 $200 Renewals $175 Service Level $150 $125.6 $125 Growth $100 $82.8 $80.7 $75 $54.6 $53.2 $50 $31.3 $9.4 $25 $4.2 $2.9 $1.7 $1.6 $1.2 $0.6 $-

Economic Development and Management of Investments and Funding have no planned capital expenditure in the LTP

33. To fund this work, the LTP uses a wide range of funding sources. However, the main source of funding Council activities is ultimately rates, whether directly funding an activity, or by repaying debt, or developing a reserve. The graph below outlines the LTP’s rates increase percentage over the ten year period. The LTP also includes a shift to volumetric water charging in 2024/25, with the tariff structure (including financial hardship remissions) considered in the next LTP, although this does not change the overall quantum of rates sought.

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Total rate increases over this LTP 14% 12.0% 12%

10% 8.9% 7.6% 8% 6.8% 5.6% 6% 7.0% 7.0% 4.4% 3.7% 3.9% 4%

2%

0%

The LTP is also the annual plan for the first year

34. The first year of the LTP is also the annual plan for 2021/22. While the Council can alter budgets for subsequent years through annual plan and future long- term plan processes, it cannot do so for 2021/22.

35. The increase in the total rates requirement for 2021/22 is 12 per cent. However, how this increase impacts on each ratepayer varies based on the growth in the property/rating base, differentials, which targeted rates are applicable, property values and other factors. The below graphs outline the impact of this rates increase on a range of example properties, with the green bars representing rates paid in 2020/21, blue bars representing rates payable in 2021/22 and the yellow lines indicating percentage increase (on the right hand scale). The graphs include GST, but do not include Taranaki Regional Council rates. Legend: 2020/21 2021/22 Percentage increase

Residential properties $4,000 12.3% 14% 10.5% $3,500 12% 9.7% increase Percentage $3,000 9.0% 8.1% 10% $2,500 $3,841 $3,841 8%

$2,000 $3,420

$2,931 $2,931 $2,651 $2,651

$2,634 $2,634 6%

$2,422 $2,422

$2,401 $2,401 $2,222 $2,222

$1,500 $2,193 $2,029 $2,029 4%

$1,000 NPDC NPDC Rates (inc GST) $500 2% $- 0% $111,000 $165,000 $215,000 $285,000 $500,000 Property land value

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Commercial/industrial properties 16.6% $40,000 15.5% 18% 14.1%

$35,000 13.9% 16% Percentage increase Percentage $30,000 14% 9.4% 12% $25,000 $38,091 $38,091 10%

$20,000 $32,659 $9,411 $9,411

$8,245 $8,245 8%

$15,000 $5,122 $5,122

$4,498 $4,498 6%

$15,375 $15,375

$13,313 $13,313

$2,262 $2,262 $2,068 $2,068

$10,000 4% NPDC NPDC Rates(inc GST) $5,000 2% $- 0% $42,000 $205,000 $380,000 $720,000 $1,930,000 Property land value

$15,000 Farmland properties 14.1% 16% 12.8% 14%

$12,500 11.2% increase Percentage 10.1% 12% $10,000 10% 6.8% $14,139

$7,500 $12,388 8%

$2,498 $2,498 $2,247 $2,247 $1,908 $1,908 6%

$5,000 $1,733

$1,013 $1,013

$1,081 $1,081 $4,624 $4,624 $4,099 $4,099 4%

NPDC NPDC Rates (inc GST) $2,500 2% $- 0% $150,000 $395,000 $570,000 $1,200,000 $4,020,000 Property land value

Small holdings properties $3,000 14.1% 16% 12.7% 11.7% 14%

$2,500 11.0% increase Percentage 12% $2,000 8.8%

10% $2,782 $2,782

$1,500 $2,438 8%

$2,041 $2,041

$1,811 $1,811

$1,730 $1,730 $1,549 $1,549 $1,541 $1,541 6%

$1,000 $1,388 $1,161 $1,161 $1,068 $1,068 4%

NPDC NPDC Rates(inc GST) $500 2% $- 0% $170,000 $280,000 $335,000 $425,000 $640,000 Property land value

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36. This report recommends Council set the rates for the 2021/22 financial year through the rates resolution. The rates resolution has been streamlined and clarified from previous rates resolutions. Other than the actual rating figures, the only substantive change is to implement penalties on late payment of volumetrically charged water rates, which have previously not had a penalty applied – this aligns volumetric water rates in line with all other rates.

The LTP includes the Financial Strategy and the Infrastructure Strategy

37. By adopting the LTP, Council is also adopting the Financial Strategy and the 30-year Infrastructure Strategy. The Financial Strategy sets out Council’s funding philosophy, limits, policies and summarised planned expenditure in the LTP. The Infrastructure Strategy outlines the main issues and challenges with Council’s various infrastructural assets, and provides an indication of the 30- year cost horizon for each asset group.

NEXT STEPS

38. On 1 July 2021 the LTP will become the budget for Council. This will enable a range of activities across the budget. For instance, it will result in Council advertising for new roles established in new budgets, procurement tenders for capital projects, and changes to service approach reflecting any service level changes. Rates notices will be sent to ratepayers reflecting the new rates set.

39. Later this calendar year, Council will begin developing the Annual Plan 2022/23. That Annual Plan will be based on the LTP’s second year budget. As noted above, the Council may need to consider the implications of Waka Kotahi reducing its funding assistance rate for local road maintenance and renewals in this Annual Plan. If Council proposes to make significant or material changes to the Annual Plan from the budgets and projects contained in the second year of the LTP then Council will be required to consult the community before making those changes. If Council makes no changes, or only minor changes, then community consultation is not required before adopting the Annual Plan.

40. The next LTP will cover the period 2024/25 to 2033/34. That LTP will need to address the issues and challenges of the day, and may have to include addressing how Council will operate following the Three Water Reforms, Resource Management Reforms, and the Future for Local Government Review.

SIGNIFICANCE AND ENGAGEMENT

41. In accordance with Council's Significance and Engagement Policy, this matter has been assessed as being critical because it sets the levels of service for all Council services, has significant impacts on the district and its communities, including impacting on the well-being of the community and the relationship of Māori to their taonga.

23 1 Extraordinary Council agenda (29 June 2021) - LTP adoption

42. The LTP has been subject to two separate engagement processes, with almost 14,000 separate pieces of feedback, as noted above in this report. This included an informal engagement process and a formal submission and hearing process.

OPTIONS

43. There is only one reasonably practicable option at this point in time, which is to adopt the LTP and set the rates for 2021/22. Council has had two substantive opportunities to determine the contents of the LTP, and given the timeframes involved before the 30 June 2021 statutory deadline, there is insufficient time to reconsider any issue. However, annual plans can make significant or material variations from the LTP (following public consultation), and LTPs can also be amended (which includes auditing and consultation) for even more significant decisions.

Option 1 Adopt the Long-Term Plan 2021-2031 and set the rates for 2021/22

Financial and Resourcing Implications

44. The LTP includes $2 billion in operating expenditure and $963.5 million in capital expenditure over the 10 year timeframe. The LTP sets the budgets for each Council service, including the resources available to achieve the work programmes set.

Risk Analysis

45. The LTP includes a significant increase in capital expenditure. As such, there is a risk that Council cannot undertake some of these capital projects. To mitigate this, the LTP also includes increased planning and project management resource and steps in the increase capital works programme over a number of years.

46. The other significant risk for the LTP is that potential for legislative reforms. The Three Water Reforms, Resource Management Reforms, and Future for Local Government Review all create uncertainty over the long-term role of Council and local governance arrangements in the district. Other legislative reforms may impact on the Council’s service delivery but are less likely to have significant impact on the overall role of Council.

47. As noted in the report, there is also a risk arising from Waka Kotahi reducing its funding assistance rate for local road maintenance and renewals.

48. There is also a risk that the LTP’s rate rise means some ratepayers may struggle to pay. This could lead to an increase in late rate payments, or non-payments which, in turn, may lead to more rates penalties, postponements and/or enforcement actions (such as rating sales).

24 1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Promotion or Achievement of Community Outcomes

49. The community outcomes were used to determine which capital and operating projects to include in the LTP, and in determining funding sources (through the Revenue and Financing Policy). The LTP includes thereby promotes all five community outcomes of Partnerships, Delivery, Community, Sustainability and Prosperity. The “Our Plan” section of the LTP outlines how the various projects in the LTP contribute to these community outcomes.

Statutory Responsibilities

50. Section 93 and Part 1 of Schedule 10 of the Local Government Act 2002 set out the requirements for a long-term plan, and this Council has also specific obligations to include matters under section 52 of the New Plymouth District Council (Waitara Lands) Act 2018. Sections 93A-94 of the Local Government Act set out some specific requirements for the process for adopting an LTP, including consultation. The Local Government (Rating) Act 2002 sets out requirements in relation to setting rates. These specific obligations have been met.

51. The LTP also contributes to promoting the social, economic, environmental and cultural well-being of the community, and therefore meets the purpose of local government as set out in section 10 of the Local Government Act 2002.

Consistency with Policies and Plans

52. The LTP includes budgets to achieve Council’s adopted policies and plans.

Participation by Māori

53. Māori have contributed to the LTP through a number of different means:

a) Iwi and hapū have participated in the development of some projects, including water projects through the He Puna Wai Working Group

b) Te Huinga Taumatua iwi representatives were invited to participate in all Council workshops in developing the LTP

c) Community roadshow events during the consultation period included events at marae

d) Submissions were received from Te Kotahitanga o Te Atiawa Trust, Te Runanga o Ngāti Tama, Te Runanga o Ngāti Mutunga, Te Kāhui o Taranaki, Manukorihi hapū, and Ngā Mahanga a Tairi (Ngā Mahanga and Ngāti Tairi hapū), and

25 1 Extraordinary Council agenda (29 June 2021) - LTP adoption

e) Around 4 per cent of LTP submitters identified as Māori in the demographic question (excluding submitters who did not fill in this question).

54. The LTP includes a wide range of projects that will be subject to further development and implementation with iwi and hapū as appropriate. The Council’s community outcomes highlight and promote further Māori participation in future decision-making through the Partnerships outcome.

Community Views and Preferences

55. Community views and preferences were sought in two different processes. In total, almost 14,000 separate pieces of community feedback were received and considered to develop the LTP. The two processes were:

a) The Top Ten Let’s Kōrero sought the community’s views about potential projects and issues for inclusion into the LTP with 9,403 responses, and

b) TheYour home, your say consultation sought formal submissions from the community on effectively a draft LTP, with 4,563 submissions.

56. Both of these processes also involved Research First undertaking an independent representative sample of the community’s views on the topics and issues being discussed. This provides Council with independent representative data on community views and preferences.

Advantages and Disadvantages

57. This LTP includes significant investment in addressing the three waters renewal backlog, water conservation, improving stormwater management in Waitara, extending tracks and trails, boosting the Climate Action Framework, and developing a Multi-Sport Hub. There are a wide range of other initiatives within the LTP that will improve the infrastructure and services provided by this Council, and will therefore have a positive effect on the social, economic, environmental and cultural well-being of the New Plymouth district.

58. Achieving this significant work programme does, however, require rates rises that are larger than normal. The first year has a total rates increase of 12.0 per cent, and the remaining nine years have an average rates increase of 6.1 per cent. There was a common theme within submissions about the level of rate rises, and the financial impact it may have on some members of the community.

59. The LTP has been subject to considerable development by elected members and officers, and has been audited twice by Audit New Zealand. There is insufficient time available to not adopt the LTP at this stage and to instead adopt an alternative LTP. Local authorities must adopt LTPs by 30 June 2021. However, Annual Plans can make significant or material changes, and LTPs can be amended if required.

26 1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Recommended Option This report recommends Option 1: Adopt the Long-Term Plan 2021-2031 and set the rates for 2021/22 for addressing the matter.

APPENDICES

Appendix 1 Long-Term Plan 2021-2031 for adoption (ECM8569359)

Report Details Prepared By: Greg Stephens (Senior Policy Adviser) Team: Corporate Planning and Policy Team Peer reviewed by: Joy Buckingham (Group Manager, Corporate Services) Approved By: Craig Stevenson (Chief Executive) Ward/Community: District-wide Date: 22 June 2021 File Reference: ECM8529417

------End of Report ------

27 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Long-Term Plan

2021-2031

28 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Every three years the Council adopts a new Long-Term Plan. A Long-Term Plan sets out a detailed budget for the next three years, and then an outline for the next seven years. It provides an integrated, long-term focus for decisions and activities for the whole Council. This document provides a basis for our accountability to our community. It describes what we do, and what we are trying to achieve.

29 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Contents Our Plan...... 1-24 Financial Information...... 149-186 Our Plan Contents...... 1 Financial Strategy...... 150 An introduction from the Mayor and Chief Executive.....2 Statement of Accounting Policies...... 156 Infrastructure Strategy Who we are...... 3 Prospective Financial Statements...... 165 What’s a Long-Term Plan...... 5 Notes to Financial Statements...... 170 Our strategic framework and key challenges...... 6 Statement of Reserve Funds...... 171 Council Services Long-Term Plan consultation...... 13 Disclosure Statement...... 173 Working with Tangata Whenua...... 17 Rating System and Information...... 176 Audit Opinion...... 23 Funding Impact Statement...... 184 Financial Information Reconciliation Summary...... 186

Infrastructure Strategy...... 25-68 Council Controlled Organisations Council Controlled Organisations...... 187-192 Council Services...... 69-148 Policies and Supporting Information Papa Rererangi i Puketapu LImited...... 188 How to read this section...... 70 Forestry...... 189 How our services contribute to our goals...... 71 New Plymouth PIF Guardians Limited...... 190 Community Partnerships...... 72 Tasmanian Land Company Limited...... 191 Customer and Regulatory Solutions...... 76 Venture Taranaki Trust...... 192 Economic Development...... 81 Emergency Management and Business Continuance.. 85 Policies and Supporting Flood Protection and Control Works...... 90 Information...... 193-238 Governance...... 94 Significance and Engagement Policy...... 194 Govett-Brewster Art Gallery/Len Lye Centre...... 98 Revenue and Financing Policy...... 199 Management of Investments and Funding...... 103 Significant Forecasting Assumptions...... 213 Parks and Open Spaces...... 107 and Community Libraries...... 113 Stormwater Management...... 117 Transportation...... 122 Venues and Events...... 128 Waste Management and Minimisation...... 133 Wastewater Treatment...... 138 Water Supply...... 143

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30 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

An introduction from the Mayor and Chief Executive

The next ten years will see big changes in the way we live, work, learn and play in our We’re working hard to get value for money and to be as prudent as possible. Our district and this Long-Term Plan sets out how we’ll invest more than $3.3 billion to Perpetual Investment Fund has grown to over $330 million and it pumps about tackle those changes head-on. $9 million a year into offsetting rates. International ratings agency S&P Global gives NPDC a long-term rating from AA to AA+, the highest possible rating for local Covid-19 upended our world last year and we stepped up to support our businesses government in New Zealand, reflecting strong financial management and this will and households with our $20 million Get Us Back On Our Feet measures to kick-start help our borrowing to spread the cost of upgrades across different generations. our local economy. But even with the steady recovery and vaccination programmes rolling out across the globe, Covid-19 still poses serious risks. On top of that we need We’ve had a vigorous public debate on the future of our District and it’s guided our to plan ahead for our growing population, our ongoing transition to a low emissions decisions in finalising this Long-Term Plan but your say is vital as we work to serve future and be ready to roll with whatever local government changes are coming our community. So let’s keep talking as we continue to build our Sustainable Lifestyle down the pipeline from Wellington. Capital, an incredible place to live, work, learn and play with a Council focused improving our quality of life for current and future generations. Daunting as these challenges might be, we can’t stick our heads in the sand and this Plan recognises that.

It’s been heartening to see and hear from our residents, who took the time to Neil Holdom Craig Stevenson understand the issues over more than a month of public feedback and 30 roadshow New Plymouth Mayor Chief Executive events from Owae marae to Ōkato to Urenui. Almost 5,000 people shared their views on proposals to:

• Fix the Plumbing, including upgrading the three waters network and water meters for every home. • Green our Place, which covers taking the Coastal Walkway from Bell Block to Waitara, as well as planting an urban forest and investing in cleaner vehicles. • Pay it Forward, a collaborative programme with Sports Taranaki, Te Kotahitanga o Te Atiawa Trust and other stakeholders to build a multi-sport hub.

You told us that some of these measures are a worry, especially among those who are struggling with money and the economic uncertainty of the Covid-19 recovery. While we can’t dodge the big calls, we will do our best to soften the impact for those who feel it hardest.

Many of you held up water meters, for instance, as a concern for bigger and less well- off families. When we look at the payment structure over the next three years we’ll consider ways to lighten the load and a working party of interest groups will help us determine costings. You told us that you understand why we need major investments, especially the $248 million in our drinking water, waste water and stormwater networks but we’re still aware that they’ll be hard to swallow in many households.

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31 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Who we are

Our Council

RICHARD JORDAN TONY BEDFORD SAM BENNETT GORDON BROWN DAVID BUBLITZ Deputy Mayor North Ward NP City Ward NP City Ward NP City Ward South-West Ward

MAYOR NEIL HOLDOM New Plymouth District

ANNEKA CARLSON MURRAY CHONG AMANDA HARRY DUYNHOVEN RICHARD HANDLEY NP City Ward NP City Ward CLINTON-GOHDES NP City Ward NP City Ward NP City Ward

STACEY HITCHCOCK COLIN JOHNSTON DINNIE MOEAHU MARIE PEARCE NP City Ward North Ward NP City Ward South-West Ward

OUR PLAN I LONG-TERM PLAN 2021-2031 3

32 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Who we are

Our Community Board Members Clifton Community Board Inglewood Community Board Kaitake Community Board Waitara Community Board Warren Petersen (Chairperson) Mel Cook (Chairperson) Doug Hislop (Chairperson) Jonathan Marshall (Chairperson) Neville Hagenson Jono Burrows Graham Chard Trevor Dodunski Tyla Nickson Christine Fabish Paul Coxhead Andrew Larsen Murray Seamark Graeme Sykes Paul Veric Joe Rauner

Our Executive Team

CRAIG STEVENSON KELVIN WRIGHT Chief Executive Deputy Chief Executive

JACQUELINE BAKER JOY BUCKINGHAM MARY JOHNSON DAVID LANGFORD STEVE MCINTOSH TERESA TURNER External Relations Group Manager Group Manager Group Manager Planning Chief Information Group Manager Community Manager Corporate Services People and Wellbeing and Infrastructure Officer and Customer Services

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33 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

What’s a Long-Term Plan External factors What’s the Long-Term Plan all about? Economy The Long-Term Plan (LTP) presents the Council’s Social issues activities and budgets over the next 10 years. It sets Environmental issues out what the Council will do, how it will be paid for and Tangata whenua views Your Say when it will happen. It is the critical document that sets Legislative and political change 9,400 responses to the Top Ten Let’s Korero the direction and intent of how the Council intends to State of infrastructure and Council services Demographic changes 4,563 submissions to make the New Plymouth District a Sustainable LIfestyle Your Home, Your Say Capital.

The LTP is reviewed every three years and at that time, the Council looks for input from the residents, ratepayers and other stakeholders in the district. Long-Term Plan Each review of the LTP enables the Council to look at Strategic the external environment and to make major changes to its services. Framework Produced every three years. Reviewed before adopting the What has it got to do with me? Long-Term Plan. Details our plan for the next 10 years (with emphasis The LTP has got a lot to do with you! It isn’t just Council’s document, it’s yours as well! Details Council’s mission, on the first three years in vision and goals. particular). The LTP includes: • issues that will influence the Council over the next Our Planning 10 years. and Reporting • information about the array of activities the Council is involved with and services Council delivers. Cycle • Key projects the Council has planned. • How your rates will be spent. Annual Report Annual Plan • How the Council’s work will be funded. Produced every year. Produced every non LTP year. • The Council’s financial performance.

The LTP outlines how we collectively can create a Details what we deliverd Details our plan for the next Sustainable Lifestyle Capital, and the role that Council and if we achieved what we year and lets you know if will play in that. planned. changes from the LTP are proposed. The Council relies on community input to make sure it is on the right track.

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34 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Our strategic framework and key challenges

Our Sustainable Lifestyle Capital vision Our vision for New Plymouth District is to be the Sustainable Lifestyle Capital. We have a great starting point, our Sustainable Lifestyle Capital district offers so much – spectacular natural beauty from Taranaki Maunga to the moana, thriving towns and Vision communities, a productive rural sector, some excellent recreational and cultural facilities and of course great people.

Supporting our Sustainable Lifestyle Capital vision is a mission statement To provide our people with an innovative and resilient district that restores mauri, for us to provide our people with an innovative and resilient district protects our environment and supports a successful economic transition, while that restores mauri, protects our providing quality infrastructure and leadership through operational excellence environment and supports a successful economic transition, while providing quality infrastructure and leadership Mission through operational excellence.

We have five goals that are our community outcomes. Partnerships Delivery Community Sustainability Prosperity Strengthening a treaty Understanding and Achieving wellbeing Nurturing our Growing a resilient, based partnership with balancing our people’s through a safe, environment, mitigating equitable and tangata whenua and needs and wants creative, active and our impact and sustainable economy building partnerships through prudent connected community adapting to climate where people want to with not-for-profit, delivery of quality while embracing Te Ao change work, live, learn, play private enterprise, infrastructure and Māori and invest across our Goals and government to services district improve outcomes for all

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35 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Key challenges facing our district

Achieving this vision is not without In the short term we continue to deal with the Our longer term economic challenge is the government impacts of the Covid-19 pandemic. In Taranaki we are decision to transition from our oil and gas extraction its challenges. fortunate, our economy is doing better than many economy to a new clean energy economy. While the earlier forecasts and is relatively well placed within transition to a net zero carbon emission economy is a Our district is continuing to grow in population. Since New Zealand. Unemployment has not increased as national, and indeed global, challenge, New Plymouth 2001 we have grown by one to two per cent per much as expected and incomes have held up. Retail district and Taranaki has a potentially larger economic annum, and our population is now over 86,000 people. expenditure is generally up and investment in housing challenge given our strong oil/gas and dairy economies. We expect this growth to continue, with a forecast and construction remain buoyant. While international population of around 94,000 by 2031 and around tourism has declined, historically we have relied on Climate change and the variations to hazards and 105,000 by 2051. Bell Block and the southern areas of domestic tourism and this has remained relatively weather extremes that are predicted to come with it, New Plymouth will be the fastest growing areas and the stable. Over the life of the LTP we expect our economy will continue to pose challenges for our communities make-up of our community will also change. We expect to recover, although international tourism may take and our infrastructure that supports them. We expect an ageing population and greater ethnic diversity, some time to get back to normal levels. However, any to begin to feel the impacts of climate change over the which will change how we provide our facilities and further lockdowns or significant restrictions may cause life of this LTP. Climate change is predicted to increase services. further social and economic issues, and may delay coastal hazard risks, flooding and potentially also recovery. drought conditions in the district.

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36 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Key challenges facing our district

The Taranaki region is also susceptible to volcanic We are facing major issues with our basic infrastructure Another challenge is that the future of local activity and earthquake events. Massey University assets, particularly our water infrastructure (water government is less clear than in many years. The research identifies that seismic activity is likely in the supply, wastewater, stormwater). Since the Global Government’s Resource Management Act Reforms, next 50 years with an 81 per cent probability of Taranaki Financial Crisis in 2007 we have had a period of Three Water Reforms and Future For Local Government Maunga erupting in that period. There are a number economic turmoil and fiscal constraint the world over. Review could result in significant changes to the of active fault lines in the district and offshore, and a In response to this, and the impacts on its Perpetual structure and functions of local government. While we volcanic event could cause major disruption through Investment Fund, we made significant cuts to renewal have developed a comprehensive plan across the lahars and ash fall. budgets, over a number of years, in order to reduce the 10 years, and out to 30 years in the Infrastructure level of rates charged to the community. We estimate Strategy, based on the current roles we have, there that there is now a backlog of approximately $126m is a realistic prospect that the future makeup of local of assets that have reached the end of their operating governance could look quite different for this district in lives, on top of the assets reaching the end of their the future. operating lives during this LTP.

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37 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

How our Plan achieves a Sustainable Lifestyle Capital and addresses the challenges

Partnerships Delivery Nāu te rourou, nāku te rourou Mauri mahi, mauri ora

Partnerships are what we use to help achieve our goals and the goals of our partners. Delivery underpins the LTP as it is about ensuring we deliver quality infrastructure and Many of our major projects will involve partnering with iwi, hapū, and other groups services in a way that is prudent and balances people’s needs and wants. to achieve the outcomes sought. Our transportation projects also involve partnering with Waka Kotahi NZ Transport Agency. The LTP includes a significantly increased capital works programme ($963m in total). To deliver this, the LTP includes investment in planning and project management The LTP includes $0.75m funding to provide support for iwi and hapū to build capability. capacity to respond to resource consent requests. The LTP substantially increases our renewal funding for water, wastewater and Our water conservation plan, including water meters, incorporates the principles of stormwater services. In total, $248m will be spent renewing end-of-life assets across He Puna Wai, our iwi and hapū working party on water issues. We will be partnering the three waters. with a representative group of vulnerable households in assessing potential tariff structures. We are significantly improving our approach to infrastructure planning and management in this LTP. Our proposed extension to our tracks and trails – including the Coastal Walkway extension from Bell Block to Waitara and the Taranaki Traverse – involve working The LTP includes $100,000 per annum from year two onwards to develop an closely with iwi and hapū along the routes to respect their wāhi tapu and other integrated spatial planning framework, $200,000 in years 2 and 3 for a Waitara spatial taonga along those routes. Our Planting our Place (native tree planting programme) plan and $200,000 in years 5 and 6 to develop a spatial plan for Bell Block. also involves working with iwi and hapū. We are investing in our civil defence resilience through the purchase of specialist We are investing $300,000 over the first three years of the Plan to work in partnership generators for emergencies. with Te Atiawa on a feasibility study for developing Te Kohia, the site where the first shots were fired in the Taranaki Land Wars. We have committed funding to undertake the CouncilMARK programme every three years in this Plan to provide an independent assessment on how we are performing to Our LTP also includes delivering the multi-sport hub which is a collaborative improve the service and value we provide the community. programme with Sports Taranaki, Te Kotahitanga o Te Atiawa Trust and other stakeholders. The Council proposes to invest capital expenditure of $38.5m and a We have included the creation of a new integrated transport plan to outline a 30 year further $13.1m operating costs into this hub, with other partners contributing the plan of how to address transport and traffic issues. rest. We have also committed to undertaking an independent review of project We are investing $0.5m into implementing Te Rewarewa co-management plan, management, estimating and procurement processes to ensure ratepayers are enabling us to fulfil our commitment to Ngāti Tawhirikura over Te Rewarewa Reserve. receiving value for money.

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38 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

How our Plan achieves a Sustainable Lifestyle Capital and addresses the challenges

Community Sustainability Ngāmotu tū ngātahi Oranga taiao, oranga tangata

The Council seeks to help the community to achieve well-being. This builds a safe, The Council seeks to nurture the environment, and mitigate our impact and adapt to creative, active and connected community that embraces Te Ao Māori. climate change.

We have budgeted $0.3m for a Changing Places bathroom facility in 2023/24 and The Plan begins the foundations for our Climate Action Framework as we look to $0.2m for accessibility upgrades for each of Okato Pool and Fitzroy Pool. develop our Emissions-Reduction and Adaptation Plans. This includes a programme of planting our parks and moving to a low emissions fleet. We have also budgeted for new public toilets in . The Plan includes a substantial water conservation programme, including universal Throughout the Plan we will be undertaking seismic strengthening of a number of our water metering. Charging for water on a volumetric basis will start in 2024/25. This halls and important buildings. is expected to reduce our water consumption by around one quarter, reducing our pressure on rivers for drinking water and delaying infrastructure spend to take more Our plan includes funding for the Coastal Walkway extension to Waitara ($28.3m), water. Kaitake Trail ($5.2m), Waiwhakaiho pedestrian bridge ($1.3m), Waiwhakaiho cycleway ($1.1m) and Windsor Walkway safety improvements ($0.3m). We are planning to spend $1.7m on Predator Free Taranaki initiatives across the Plan.

We have budgeted $3.6m for Brooklands Zoo to modernise this important community We are proposing to spend $0.5m on improving water quality in Pukekura Park. facility for our tamariki and the animals within the zoo and will seek to fundraise to be able to provide some additional facilities and improvements. We have addressed environmental issues with some of our older infrastructure by protecting historic landfills from erosion ($0.5m), and a significant programme of The Plan includes $9m to redevelop the Waitara library, as well as $5.1m for refreshing improving wastewater assets such as preventing overflows at our wastewater pump the long-term galleries at Puke Ariki, and $8.5m on new library resources (books, stations ($0.8m), investing in emergency storage for the Mangati pump station e-books etc). ($5.2m), and Waitara pump station upgrade ($5.4m).

We have an extensive plan to improve stormwater management, including $20.2m in Work towards our Zero Waste vision continues with the construction of the Waitara, $2.8m on Egmont Road, and $1m for the Govett Avenue/Doralto Road/South commercial and industrial material recovery facility ($0.7m), organic waste processing Road area. facility ($1.1m), a permanent building for The Junction ($3.3m), and about $0.6m on public recycling bin stations. We have also budgeted $0.3m for on-site composting in We have set aside capital expenditure of $38.5m for the multi-sport hub development. our parks.

We are providing $400,000 per annum for the first three years of the Plan for our four community boards to invest in their communities.

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39 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

How our Plan achieves a Sustainable Lifestyle Capital and addresses the challenges

Prosperity Te pai me te rawa o Ngāmotu

The Council aims to grow a resilient, equitable and sustainable economy. This promotes a district where people want to work, live, learn, play and invest.

Over the life of the Plan we are investing over $40m into Venture Taranaki Trust, our economic development organisation.

The Plan includes funding and agreement in principle for one hour free parking in the Business District from 1 October 2021 to 30 June 2024, subject to completing the necessary legal steps.

Our $963m capital works programme not only achieves the delivery of services, but also provides employment opportunities in the construction industry.

Starting in year 4, we have set aside $11.7m for capital improvements in the New Plymouth CBD and $0.1m for the Inglewood CBD.

We will upgrade our roads to cater for increased demand and to improve services. There are a wide range of upgrades to roads, such as doubling lane Junction Street bridge ($2.6m), and new roads linking Smart Road to Henwood Road ($7.9m). There are also numerous intersection upgrades, including a roundabout at Belair Avenue/ Road intersection ($1.4m), Brooklands Road/Hori Street/Upjohn Street safety improvements ($1.4m) and traffic signals on key local road intersections with state highways ($3.5m).

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40 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

What this means for your rates

This LTP begins with a larger than normal rates increase for the first few years. This increase is largely driven by the increased renewal work to fix our plumbing, as well as other investments to create a Sustainable Lifestyle Capital.

The graph below shows the planned increase in the total rates required over each year of the LTP.

14% 12.0% 12% 10% 8.9% 8% 6.8% 5.6% 6% 7.6% 4.4% 7.0% 7.0% 3.7% 3.9% 4% 2% 0%

Rate increase

It is important to note this does not mean the rates on your property increase each year by this amount. There are several factors that impact on how much rates increase for each property. As a growing district, this increase is spread across a larger number of properties each year. Rates also depend on property values, what targeted rate services the property receives (water, wastewater, kerbside collection) and other factors.

For the first year, while the total rates that NPDC requires increases by 12 per cent, the average residential rate increases by 9.7 per cent. This works out to about a coffee each week in additional rates for the average residential property owner, but gives NPDC just over $12m extra in rates to invest in this district.

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41 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Long-Term Plan consultation - Your Home, Your Say

Our ‘Your Home, Your Say’ LTP consultation invited community input on three big calls.

We began collecting your feedback on the LTP in July Council spent four days hearing about 150 submitters present their submissions over 4 to 7 May. Two weeks later, on 2020 to October 2020 through the Top 10 Let’s Korero 19 May, the Council debated the submissions and made decisions. campaign. Over 11 weeks we sought the community’s feedback on potential hot items for inclusion in the LTP The multi-sport hub received the most comment, with submission numbers shown below. before we even drafted it. This included an independent representative snapshot of views from Research First. The 9,400 responses were used to help develop the LTP Submissions on each topic we consulted on. Total submissions received 4563 From 3 March to 6 April 2021 we consulted on the proposed LTP through the “Your Home, Your Say” Other issues 1418 Consultation Document. Developing a multi-sport hub 4447 NPDC received a record 4,563 submissions, over 400 more than the previous LTP. There was extensive Boosting our Climate Action Framework 3241 consultation utilising digital media such as billboards, Extending our tracks and trails network 3302 videos and Facebook, as well as the more traditional printed media, with information on the consultation Improving stormwater management in Waitara 3182 document and a submission form being placed in the

North Taranaki Midweek newspaper. Saving water and water meters 3256

The Council’s roadshow held or attended 30 events How do we pay for fixing our plumbing? 3245 across the district ranging from the Seaside Market to Owae Marae to Grey Power, and from Urenui to Ōkato. How much should we invest in fixing our plumbing over the next 10 years? 3273

The Council also commissioned Research First to 0 1000 2000 3000 4000 5000 undertake an independent survey of 303 members of the community to provide a representative snapshot of views.

The Council received thousands of comments in relation to the Big Calls. Comments ranged widely across every Council service and some even proposed the Council undertake new services or take over services from other authorities.

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42 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Long-Term Plan consultation - Your Home, Your Say

The three ‘Big Calls’ In the Your Home, Your Say Consultation Document, we sought your feedback on three big calls facing the district. Options for each of the issues were presented, including our preferred option.

Big Call 1 Conserving water Improving stormwater management Your Home, Your Say proposed four options for in Waitara conserving water as New Plymouth residents use Your Home, Your Say proposed to invest $20m in the up to 60 per cent more water on average than other next 10 years, and signalled a further $100m in the comparable parts of the country. Conserving water 20 years after that, to improve stormwater management would not only improve the environment, but also in Waitara to bring our infrastructure up to an reduce future infrastructure in new water takes. We appropriate level of service. We presented an option to proposed to introduce moderate water conservation do nothing, as well as an option to only invest $9m in measures, including water meters. We also presented the highest priority fixes. the status quo, and two other options for water conservation plans, both of which included water Your feedback meters. Looking after our existing assets Just under half of submissions (46 per cent) supported Your Home, Your Say outlined that we have identified Your feedback our proposed level of investment, while another 40 per unacceptable risks from ageing infrastructure failing cent supported a lower level of investment. due to historic underinvestment. We proposed to The status quo option of not introducing water increase our expenditure on replacing ageing water conservation received the most submissions at 40 per Council’s decision infrastructure, and to debt fund the replacement of cent. Thirty-five per cent of submissions supported our We agreed to proceed with our preferred option of some long life assets. We presented options to invest proposal. However, in total 60 per cent of submissions investing $20m over the next 10 years to improve the both more and less, and different funding options as supported some type of water conservation plan that management of stormwater in Waitara. well. had water meters.

Your feedback Council’s decision Nearly 60 per cent of the submissions we received We adopted our preferred option, but also decided supported our proposed funding amount and around to develop a representative group of vulnerable three quarters supported using some debt funding. households to help develop the tariff structure, and to develop a financial hardship scheme for vulnerable Council’s decision households. We decided to proceed with our proposed increase to our water renewal budgets and to debt fund the replacement of some long-life assets.

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Long-Term Plan consultation - Your Home, Your Say

Rolling out our Climate Action Big Call 2 Framework Big Call 3

Your Home, Your Say noted that we are developing an emissions reduction plan and a climate change adaptation plan in order to provide an urgent response to climate change, but in the meantime proposed a planting our place and fleet electrification proposals, as well as some short-term funding. We also presented options to not do these immediate initiatives, or to do them alongside some more permanent funding.

Extending our tracks and trails Your feedback Building a multi-sport hub network Just under half of submissions (47 per cent) supported Your Home, Your Say included the multi-sport hub Your Home, Your Say included our proposal to extend the proposed option, with around 13 per cent seeking proposal for more sporting facilities located within our tracks and trails network that already includes to also make some of the funding more permanent. the New Plymouth racecourse area. We proposed to our award winning Coastal Walkway and great urban build this hub over eight years, with the main building connections alongside streams. We proposed to build Council’s decision construction starting in year six (2026/27). We also noted that we could not do this project, or could the Coastal Walkway extension from Waitara to We agreed to proceed with our proposal, but to widen bring the building construction forward to year four Bell Block, and to begin to plan and secure key parts of the use of the electric vehicle fund to include other (2024/25). the Taranaki Traverse. We also presented options to do options to reduce our fleet emissions. nothing, or to adopt an accelerated build programme. Your feedback Your feedback Our preferred option of building construction beginning Almost half of submissions (47 per cent) were in favour in year 6 was only supported by around one in five of our proposed option, with almost 20 per cent in submissions. Almost half of submissions (48 per cent) support of even more investment. supported beginning construction of the building in year 4. Council’s decision Council’s decision We decided to proceed with our approach to extending our tracks and trails, but we made a number of small We decided to proceed with the multi-sport hub and changes, including increasing the Taranaki Traverse bring the construction of the building forward to budget to provide a link to Inglewood and increasing year 4. We also decided to broaden the scope of the hub the budget for Te Ara a Ruhihiwerapini – the Kaitake to a wider well-being framework and to incorporate any Trail to address cultural issues along the route. cultural implications.

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Long-Term Plan Consultation - Your Home, Your Say

Other Council decisions We received a wide range of feedback across all of our services. In response to these comments we decided to:

• Introduce one hour free parking and to extend the paid parking period in the New Plymouth CBD subject to completing the necessary legal steps. • Provide funding for the four community boards for the next three years to fund small projects in their communities. • Review our project management, estimating and procurement processes to ensure value for money. • Develop an integrated spatial planning framework and to create specific spatial plans for Bell Block and Waitara. • Bring forward the construction of the Changing Places accessible toilet to 2023/24. • Work in partnership with Te Atiawa to prepare a feasibility report into Te Kohia project. • Redevelop the Waitara library in 2025/26 and 2026/27. • Fund a State Highway 3 pedestrian crossing in Inglewood. • Invest in additional intersection upgrades around Taranaki Base Hospital and near Waitara. • Remove a proposed pedestrian underpass of State Highway 45 at Wairau Road. • Bring forward upgrades to the Waitara Wastewater Pump Station and the Mangati Wastewater Pump Station Emergency Storage project. • Decrease the Council funding for the Brooklands Zoo upgrade to focus on modernising the zoo, and fundraise to make other improvements to the zoo.

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Working with Tangata Whenua

Setting Census 2018 On 6 March 2018, 80,679 people were residing in the Tangata Whenua New Plymouth District. Of this total, 14,370 or 17.8 per As tangata whenua, six iwi and their respective hapū exercise mana whenua over traditionally defined areas across cent of the New Plymouth District population identified the New Plymouth District. as Māori. This compares with the 2006 Census, where Māori represented 14.1 per cent (9,369) of the district population. In the 2013 Census, that had increased to Iwi Population Hapū Mandated 15.7 per cent (11,082) of the district population. (Census 2013) Representative Body The 2018 Census increase of 17.8 per cent is also Ngāti Maniapoto 35,358 Ngāti Rākei Maniapoto Māori 2.4 per cent higher than the national average, where Ngāti Rungaterangi Trust Board those identifying as Māori accounted for 15.4 per cent Ngāti Rora (744,800) of the total national population (4,840,600) Ngāti Tama 1,338 Te Rūnanga o Ngāti counted on Census Day 2018. Tama Ngāti Mutunga 2,514 Ngāti Okiokinga Kaitangata Te Runanga o Ngāti With this ongoing upward trend in the growth of the Te Kekerewai Ngāti Kura Mutunga Māori population, an average median age of Ngāti Aurutu Ngāti Uenuku 24.8 years (compared to 40.6 years for the district), and Ngāti Hinetuhi Ngāti Tupawhenua the increasing contribution and participation of Iwi or Ngāti Tū in local and regional economies, it is critical that we look at ways to increase capability and support Māori Ngāti Maru 852 Ngāti Hinemokai Ngariki Te Rūnanga o Ngāti participation in our decision-making systems and Ngāti Rongonui Ngāti Kui Maru Taranaki Trust processes. Ngāti Kopua, Ngāti Te Ika Ngāti Tamatapu Ngāti Tamakehu Te Āti Awa 15,273 Otaraua Pukerangiora Te Kotahitanga o Te Legislation Manukorihi Puketapu Atiawa The Local Government Act 2002 and Resource Ngāti Tuparikino Ngāti Tawhirikura Management Act 1991 are the key pieces of legislation, Ngāti Rahiri Ngāti Te Whiti which requires us to support Māori participation in our Taranaki Iwi 6,087 Ngāti Tairi Te Kāhui o Taranaki decision-making processes. Ngā Mahanga Local Government Act 2002 The South Taranaki iwi of Ngāruahine, together with Ngāti Maniapoto also have overlapping Treaty of Waitangi Settlement interests within the southern and northern boundaries of the district. Under the Local Government Act 2002 (the LGA), we are specifically required to:

a) Establish and maintain processes to provide opportunities for Māori to contribute to Council’s decision-making processes (s14(1)(d) and s81(1)(a) refer);

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Working with Tangata Whenua b) Consider ways in which it may foster the a) Consult with tangata whenua through iwi • Engaging with Māori where any matter involving development of Māori capacity to contribute to the authorities before notifying any plan; and a significant decision affecting the relationship of decision-making processes of Council (s81(1)(b) Māori and their culture and traditions with their b) Consultation requires us to: refers); ancestral land, water, sites, waahi tapu, valued flora • consider ways in which it may foster the and fauna and other taonga; and c) Provide relevant information to Māori for the development of their capacity to respond to an purposes of a) and b) above; and • Considering specifically engaging with Māori on invitation to consult; other matters as they arise. d) In the course of decision-making, take into account • establish and maintain processes to provide the relationship of Māori and their culture with opportunities for those iwi authorities to consult Te Huinga Taumatua their ancestral land, water, sites, wāhi tapu, valued it; Te Huinga Taumatua is a joint-committee made up of flora and fauna and other taonga (s77(1)(c) refers). elected Council and iwi members, currently co-chaired • consult with those iwi authorities; Section 82(1) of the LGA also details a set of principles by a representative from each group. The committee’s for consultation, with section 82(2) specifically requiring • enable those iwi authorities to identify resource purpose is to provide strategic guidance and advice us to have in place processes for consulting with Māori. management issues of concern to them; and to NPDC on issues of importance to Māori. It also has delegated authority for matters including: • indicate how those issues have been or are to be Resource Management Act 1991 addressed. • Road naming and renaming; Council is obliged under the Resource Management Act In addition, requirements for consultation with • Naming and renaming of NPDC-administered 1991 (the RMA) to: iwi authorities also appear in Treaty of Waitangi reserves; and settlements, and are beginning to appear under the • Determination of Marae Development and Manaaki a) Take into account any iwi management plans in Marine and Coastal Area (Takutai Moana) Act 2011. undertaking any plan development process; Urupā grant applications over $10,000. b) Recognise and provide for: Supporting Māori Participation The Committee has considered a range of a strategic and policy matters over the past year, including: • the relationship of Māori and their culture and To ensure compliance with its statutory obligations, we have in place a range of mechanisms to support Māori traditions with their ancestral lands, water, sites, • Manaaki Urupā grant; wāhi tapu, and other taonga; in contributing to Council decision-making, which are summarised below. • Māori wards; • the protection of historic heritage from • Council’s strategic priorities; and inappropriate subdivision, use, and Significance and Engagement Policy development; and The Significance and Engagement Policy sets out • Approval of road names. • the protection of protected customary rights; how NPDC will determine the significance of an issue, Te Huinga was also involved in discussions leading in proposal, decision or other matter, and the extent of c) Have particular regard to kaitiakitanga; and July 2020 to a Council resolution to establish a Māori engagement required with Iwi-Māori and identified ward ahead of 2022 local triennial elections. Moving d) Take into account the principles of the Treaty of key stakeholders. This ensures a consistent approach forward, NPDC will explore ways in which Te Huinga Waitangi. to taking into account Māori contributions to Council’s Taumatua may initiate reports on topics of relevance decision-making by: As part of developing plans, we are also required under to Māori. We will also work closely with the Committee the RMA to: • Providing opportunities for Māori to contribute to so that the relevant information is available for them to our decision-making process in a meaningful way; make fully informed decisions.

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Iwi Partnerships Portfolio Puke Ariki Kaumātua Committee and skills in engaging with Māori to establish and The Mayor and elected members have created Te Kaumātua Kaunihera o ngā Whare Taonga o Puke manage effective relationships. councillor portfolio groups to support NPDC in Ariki was established in 2004. Made up of kaumātua We are also undertaking a number of activities, either progressing key initiatives across eight key strategic (elders) from around Taranaki, the committee advises in progress or planned, which NPDC will be progressing priorities, including the Iwi Partnerships portfolio. These Puke Ariki on issues regarding Māori, the taonga Māori over the term of this Long-Term Plan. Aligned to our informal arrangements assist in achieving efficient and collection, and tikanga. The Kaunihera meets monthly new strategic community outcomes, these initiatives effective communication between elected members and is open to kaumātua from all of Taranaki. While are summarised below. and NPDC staff, provide up-to-date information to local providing expert cultural advice, exploring further communities and facilitate opportunities to engage relationships with iwi may identify opportunities with NPDC staff. to better align the Puke Ariki experience to their Engaging with Tangata Whenua aspirations. NPDC recognises that the need to consult with tangata With elected members allocated to two portfolios each, whenua stems from the Treaty of Waitangi principle of the Iwi Portfolio Lead also attends other portfolio group Govett-Brewster Art Gallery/Len Lye Centre partnership. Requiring both parties to act reasonably meetings to promote collaboration and communication Recognising its responsibilities under Te Tiriti o and make informed decisions, NPDC also acknowledges across projects of common interest. In the future, we Waitangi, the gallery has established the advisory group engaging and consulting with tangata whenua often will support the Iwi Portfolio and Te Huinga Taumatua Whiringa Toi. An expression of the Gallery’s desire to leads to a better understanding of the issues and explore how they can work together more efficiently. enrich its expression of a Te Tiriti-based partnership, opportunities. In many instances, this will result in the group offers a forum for Iwi-Māori to participate in stronger, trusting relationships, and in many instances, Funding and Grants shaping the priorities, procedures and cultural activities positive outcomes of mutual benefit. We have recognised that Māori participation in the of the Govett-Brewster Art Gallery/Len Lye Centre. decision-making process is, in part, constrained by Aligned to the strategic goals of Partnerships, Delivery, funding. This is particularly evident in relation to Made up of the Gallery Director and representatives Community, Sustainability and Prosperity, key resource consenting, where access to expert scientific from local Māori artists, NPDC and iwi of Taranaki, opportunities for NPDC, tangata whenua and Māori to or legal advice is both costly and complex. As a result, Whiringa Toi will also be central to the Gallery’s desires work together are summarised below. we provide funding that supports tangata whenua to and efforts to facilitate engagement, consultation and engage identified resource management expertise. collaboration with Iwi-Māori and whānau whānui. Partnerships We also provide Marae Development Grants and a Internal Capacity Nāu te rourou, nāku te rourou Built, Cultural and Natural Heritage Protection Fund to To enhance effective engagement of Māori in decision- support iwi with marae insurance and maintenance. making we have committed staff and other resources Taranaki Covid-19 Regional Civil Defence and Recovery In 2020, NPDC also initiated a Manaaki Urupā Grant to to support, advocate on behalf of, and guide NPDC’s Response assist Māori owners in maintaining their urupā. interactions with Māori. In late March 2020, Aotearoa-New Zealand entered Finally, we provide funding support for the creative There continues to be a focus on building the cultural into Level 4 lockdown as a result of the Covid-19 sector through Creative Communities funding. Due competency of our staff. This will include building pandemic. Throughout the event, iwi and Māori health to the low number of applications for local Toi Māori staff capability in basic te reo Māori (language) and and social providers were able to quickly identify and activities, this will be a priority in 2021 and out-years. tikanga (practices),and developing staff knowledge and respond to the needs of Māori, and in some instances understanding of Māori concepts, values, histories and local communities as well. In response, NPDC and Civil experiences. It also includes enhancing staff confidence Defence are working to better incorporate Iwi and local Māori providers in future civil defence events.

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This approach is also being adopted to develop a Ngā Kaitiaki Established in 2018, NPDC recognises that as a Treaty regional Covid-19 economic recovery response, with iwi Initiated in 2016, NPDC and iwi/hapū agreed to set up a partner, iwi have a significant contribution to make in contributing at local, regional as well as national levels group called Ngā Kaitiaki. Made up of representatives freshwater management and planning process. Also of decision-making. This will be important to ensure from iwi and hapū, the purpose of the working group acknowledging the unique issues and interests that a regional economic recovery, which responds to the was to review the draft District Plan from a Te Ao iwi and hapū face relating to freshwater, He Puna higher unemployment rates being experienced by Māori (Māori worldview) perspective. An independent Wai provides iwi an opportunity to contribute to the Māori as a result of Covid-19. planner providing professional planning advice drinking, waste and stormwater challenges facing the supported the group for the next three years. district, as well as potential solutions, including: Te Kōwhatu Tū Moana • Reducing demands on freshwater through increased In March 2019, NPDC signed an agreement with Te Āti Generally meeting once a month, Ngā Kaitiaki and efficiencies and waste reduction; Awa hapū Manukorihi and Otaraua at Ōwae Marae NPDC officers together worked on a new District Plan, detailing how we will work together to manage the resulting in the notification of the new Proposed District • Upgrading existing infrastructure to increase proceeds of the sale of Waitara endowment land. Plan in September 2019. NPDC is now working with iwi capacity and resilience; and and hapū submitters on the Proposed District Plan, who • Identifying and developing a new freshwater source. Under the New Plymouth District Council (Waitara continue to receive independent professional planning Lands) Act 2018 (the Act), 770 leasehold sections can be advice. Moving forward, the working group will engage with purchased by occupiers, with the revenue from sales to significant projects and programmes of work, including be used to: Moving forward, the Ngā Kaitiaki working group will the Waitara Wastewater Outfall and stormwater continue to consider high level strategic issues in projects, wastewater issues at Urenui and Ōnaero and • Establish a Hapū Land Fund, with decisions on its relation to the District Plan and district planning in District Water Conservation Plan. use made by Te Kōwhatu Tū Moana Trust, which will general. manage and administer the interests of Manukorihi Te Rewarewa Reserve and Otaraua hapū; He Puna Wai Working Group In 2007, NPDC and Ngāti Tawhirikura hapū signed • Establish a Waitara Perpetual Community Fund NPDC is working with the iwi rūnanga of Ngāti Tama, an agreement to co-manage Te Rewarewa Reserve. to help support community projects in Waitara, Ngāti Mutunga, Ngāti Maru, Te Āti Awa and Taranaki A site of significant spiritual, cultural and historical with NPDC and Te Kōwhatu Tū Moana Trust each Iwi to develop a sustainable 30-year integrated three importance to the hapū, the agreement describes the appointing three board members to establish Te Tai waters strategy (drinking, waste and stormwater), expectations and aspirations of both parties in the care Pari Trust to decide how to use the fund; and which: and development of the reserve. • Support Waitara River and environmental projects, • Balances the need to protect the public health and In 2018, after a review of the co-management entity to be managed by iwi and hapū with interests in the provide local communities with services which in in place, Te Rewarewa Reserve Working Party was set river, and the Taranaki Regional Council. the long-term are sustainable and do not impact on up. Made up of both NPDC and Ngāti Tawhirikura the natural environment; and To date, over 360 properties have been purchased representatives, the working group is overseeing the by leaseholders. Moving forward, a significant piece • Contributes towards aspirations as reflected in their physical return of the hapū back on the reserve, as well of work NPDC and Te Kōwhatu Tū Moana will look to respective Iwi Environmental Management Plans as the development of a NPDC and Ngāti Tawhirikura progress are the co-management and administration and policies. co-management plan, which will guide care and arrangements for the reserve lands listed in the Act development of the reserve over the next 10 years. (section 20 of the Act refers).

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Mana Whakahono ā Rohe With potential impacts on statutory processing, The RMA gives iwi authorities the option to invite a reporting and project completion deadlines, we will Community regional or district council to form a Mana Whakahono ā partner with iwi and explore options to develop a more Ngāmotu tū ngātahi Rohe Agreement (Mana Whakahono). The arrangement responsive and efficient resource consenting process for provides a mechanism for councils and iwi to agree on iwi, hapū, NPDC and resource consent applicants. Rohutu Reservation the ways tangata whenua can participate in the RMA decision-making and assist councils with their statutory Funding will be available from 2022 to 2025 to support Rohutu is a 7.13 hectare Māori freehold land block obligations to tangata whenua under the RMA. iwi and hapū in processing the high number of resource situated at the end of Leslie Street, Waitara. From 1940 consents requiring their input. This will assist NPDC, to 1960, a small, vibrant community developed, albeit in In May 2018, NPDC was one of four local territorial applicants, developers and other stakeholders to an informal, ad hoc way. authorities notified by Ngāruahine Iwi to initiate a complete resource consent applications in an efficient Administered by trustees since 1960, the vision Mana Whakahono. However, following a proposal by and timely manner. today for the reserve is to develop a safe, secure and the Taranaki Regional Council, the four local authorities resilient community, which maintains it unique cultural with the eight Taranaki iwi met in November 2018 to It will also provide an opportunity for NPDC and heritage while also enjoying the benefits of a modern consider a region-wide Mana Whakahono arrangement. tangata whenua to think about approaches to resource consenting in the future. community, including quality housing and public Since September 2019, facilitation of informal amenities and services. mātauranga Māori and Mana Whakahono discussions Wāhi Tapu review Over the years, with the effects of coastal erosion have been facilitated by Poipoia Limited. With the After the release of the operative New Plymouth and increased frequency of tidal surges, wastewater process impacted by the Covid-19 pandemic, informal District Plan in 2005, NPDC became aware that the contamination through damaged septic tanks and discussions are due to resume, with a focus on finalising location of listed wāhi taonga were inaccurate. This the imminent risk of buildings falling into the sea, a an agreement. happened because of the change from imperial to metric measurements in New Zealand Archaeological collaborative effort between reserve trustees, NPDC Association data. The Wāhi Taonga Review Project was and others is urgently needed to both mitigate initiated in 2007. immediate risks and take a more strategic approach to Delivery development on the site. Mauri mahi, mauri ora Originally intended to accurately record the locations of known wāhi taonga in the District Plan, it was extended Waitara-Bell Block Coastal Walkway Extension Iwi and hapū resource consenting support in 2010 to include new sites. NPDC, an archaeologist The first section of the New Plymouth Coastal Walkway opened in December 2001. Since then, residents and Over the past three years, there has been an increasing and tangata whenua worked together to confirm the visitors alike use the walkway for leisure, commuting demand on iwi to participate in NPDC projects and locations and extents of sites so they could be included and business activities. A safe corridor to travel from processes like district planning, development projects, in the proposed District Plan. This will ensure certainty one end of the city to the other, it encourages people of urban design and spatial planning. That demand for District Plan users, while protecting sites and areas of all ages to enjoy the benefits of physical exercise, being presently out-strips iwi capacity and capability to be significance to tangata whenua. outdoors, and enjoying what the district has to offer. able to respond in a timely manner, while also ensuring they fulfil their responsibilities as Kaitiaki. Moving forward, NPDC will be working with those iwi and hapū who have yet to have the location and extents Residents and visitors will experience the same benefits, of their wāhi tapu sites within the district confirmed. with the addition of the Bell Block-Waitara Coastal Walkway extension. Potentially adding approximately seven kilometres, the walkway extension will enable people to see unique landscapes, pass by historical

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Working with Tangata Whenua sites and read information boards narrating past events The festival is a whānau friendly, smoke and alcohol-free which have shaped who we are as a community. Sustainability event and has an open-door policy where all people are welcome to come and experience the timeless tradition With the added benefit of offering an alternative route Oranga taiao, oranga tangata and spectacle of Kapa Haka. In 2019, the event was to approximately 15 kilometres of State Highway 3, hosted by Ngāti Toa Rangatira and Te Ātiawa Whānui in NPDC in partnership with Puketapu, Manukorihi Te Ara a Ruhihiweratini Wellington and saw more than 60,000 people attending and Otaraua hapū, will collaborate with other key over the four-day long event. stakeholders, including Waka Kotahi NZ Transport NPDC is preparing a proposal for the construction of a Agency and Papa Rererangi i Puketapu Limited (the shared cycleway/walkway. Just over 12 kilometres long, In 2022, the next festival will be held in Tāmaki Council Controlled Organisation) Te Ara A Ruhihiwerapini (The Trail of Ruhihiwerapini) Makaurau (Auckland), with Aotea (Taranaki/Whanganui) to progress this initiative. will run from Surrey Hill Road, inland from Ōākura, to Botanical and Rhododendron gardens. scheduled to host the next event in 2024. Offering a potential multi-million dollar boost to the local Te Kohia With the Taranaki Regional Council and local hapū Ngā economy, we will explore with local iwi ways in which In 2016, a significant New Zealand historic site came up Mahanga and Ngāti Tairi, efforts focus on completing we can support a successful bid to host the event for for public sale at Brixton, Waitara. NPDC subsequently the preparation of documentation ahead of lodging the first time here in the New Plymouth District. purchased the property. resource consents. The intended outcome is to ensure Tangata whenua connection to place Te Kohia Pā, constructed in 1860 by Wiremu Kīngi Te a trail that provides a unique outdoor experience for Rangitāke and his followers, was attacked by British users, while also being safe, durable and impacting as The New Plymouth Airport is located on land that Forces on 17 March 1860, marking the commencement little as possible on the natural environment. encompasses several pā and urupā sites of significance of the First Taranaki Land War. The pā was known for to Te Āti Awa Iwi and Puketapu hapū. With the land its innovative covered trenches - a feature first used at Responsible for protecting the mauri of the area, NPDC acquired under the Public Works Act 1928, the original Ruapekapeka in the Northern Land Wars in the 1840s, has added $90,000 to the project budget, enabling Ngā airport facility was opened in 1966. then refined at Te Kohia. This innovation was replicated Mahanga and Ngāti Tairi Hapū to fully participate as by other iwi in the design of pā fortifications during the Kaitiaki in the resource consenting process. In March 2020, a redeveloped New Plymouth Airport New Zealand Wars. terminal was opened. Incorporating distinct cultural concepts and narratives conveyed through traditional In 2019, work began on developing a concept plan for and contemporary artworks and sculptures, the $29m the site, with a project team established made up of Prosperity facility re-establishes a Te Āti Awa Iwi and Puketapu representatives from NPDC, Te Kotahitanga o Te Ātiawa, Te pai me te rawa o Ngāmotu hapū presence upon the landscape. Manukorihi, Otaraua and Pukerangiora hapū and the Department of Conservation. An outcome of the completed facility was a ‘raising Te Matatini National Kapa Haka Festival With the location of the pā confirmed through Ground of the bar’ in terms of tangata whenua participation Penetrating Radar, archival research and three small test Te Matatini is a significant cultural festival and the in future projects of local and regional significance. excavations, a feasibility study is now planned. NPDC pinnacle event for Māori performing arts. Held every Already involved in the planned revitalisation of has set aside $300,000 to undertake this study, with an two years, it is one of the most highly anticipated the New Plymouth Central Business District, we will additional $200,000 to be sought externally. The study events for performers, their whānau and the mass of continue to engage early with tangata whenua on will assess the possibility of establishing a nationally passionate Kapa Haka fans throughout the world. significant projects which offer opportunities to both significant multi-purpose wānanga-education/ reaffirm their connection to the district and celebrate exhibition/arts centre, along with café/retail and their unique and distinctive contribution to the district’s associated services on the site. identity and heritage.

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Audit opinion

To the reader Emphasis of matters The Examination of Prospective Financial Information that were consistent with those requirements. Without modifying our opinion, we draw attention to Independent Auditor’s report on New Plymouth the following disclosures. District Council’s Long-Term Plan 2021-2031 We assessed the evidence the Council has to support the information and disclosures in the plan and I am the Auditor General’s appointed auditor for Uncertainty over three waters reforms the application of its policies and strategies to the forecast information in the plan. To select appropriate New Plymouth District Council (the Council). The Local Pages 226 and 227 outline the Government’s intention procedures, we assessed the risk of material Government Act 2002 (the Act) requires the Council’s to make three waters reform decisions during 2021. misstatement and the Council’s systems and processes long-term plan (plan) to include the information in The effect that the reforms may have on three waters applying to the preparation of the plan. Part 1 of Schedule 10 of the Act. Section 94 of the Act services provided is currently uncertain because no requires an audit report on the Council’s plan. Section decisions have been made. The plan was prepared as Our procedures included assessing whether: 259C of the Act requires a report on disclosures made if these services will continue to be provided by the under certain regulations. I have carried out this work Council, but future decisions may result in significant • the Council’s financial strategy, and the associated using the staff and resources of Audit New Zealand. We changes, which would affect the information on which financial policies, support prudent financial completed our report on 29 June 2021. the plan has been based. management by the Council; • the Council’s infrastructure strategy identifies the Opinion Uncertainty over the delivery of the capital significant infrastructure issues that the Council is In our opinion: programme likely to face during the next 30 years;

• the plan provides a reasonable basis for: Page 234 outlines that the Council is proposing to • the Council’s forecasts to replace existing assets spend $963 million on capital projects over the next 10 are consistent with its approach to replace its - long term, integrated decision making and co years. Although the Council is taking steps to deliver assets, and reasonably take into account the ordination of the Council’s resources; and its planned capital programme, as outlined on pages Council’s knowledge of the assets’ condition and - accountability of the Council to the community; 234 to 236, there is uncertainty over the delivery of performance; the programme due to a number of factors, including • the information in the plan is based on materially • the information and assumptions underlying the significant constraints in the construction market. If complete and reliable information; forecast information in the plan are reasonable; and the Council is unable to deliver on a planned project, it • the Council’s key plans and policies are reflected • the disclosures on pages 173 to 175 represent a could affect intended levels of service. consistently and appropriately in the development complete list of the disclosures required by Part 2 of the forecast information; of the Local Government (Financial Reporting and Basis of opinion Prudence) Regulations 2014 (the Regulations) and • the assumptions set out in the plan are based on the accurately reflect the information drawn from the We carried out our work in accordance with the best information currently available to the Council plan. International Standard on Assurance Engagements and provide a reasonable and supportable basis for (New Zealand) 3000 (Revised) Assurance Engagements the preparation of the forecast information; This opinion does not provide assurance that the Other Than Audits or Reviews of Historical Financial forecasts in the plan will be achieved, because events Information. In meeting the requirements of this • the forecast financial information has been properly do not always occur as expected and variations may standard, we took into account particular elements prepared on the basis of the underlying information be material. Nor does it guarantee the accuracy of the of the Auditor General’s Auditing Standards and the and the assumptions adopted, and complies with information in the plan. International Standard on Assurance Engagements 3400 generally accepted accounting practice in New Zealand;

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Audit opinion

• the rationale for the Council’s activities is clearly Independence and quality control presented and agreed levels of service are reflected We have complied with the Auditor General’s: throughout the plan; • the levels of service and performance measures are • independence and other ethical requirements, reasonable estimates and reflect the main aspects which incorporate the independence and ethical of the Council’s intended service delivery and requirements of Professional and Ethical Standard 1 performance; and issued by the New Zealand Auditing and Assurance Standards Board; and • the relationship between the levels of service, performance measures, and forecast financial • quality control requirements, which incorporate the information has been adequately explained in the quality control requirements of Professional and plan. Ethical Standard 3 (Amended) issued by the New Zealand Auditing and Assurance Standards Board. We did not evaluate the security and controls over the electronic publication of the plan. Other than our work in carrying out all legally required external audits, we have no relationship with or interests in the Council or any of its subsidiaries. Responsibilities of the Council and auditor The Council is responsible for:

• meeting all legal requirements affecting its procedures, decisions, consultation, disclosures, and other actions relating to the preparation of the plan; Debbie Perera, Audit New Zealand On behalf of the Auditor General, Palmerston North, • presenting forecast financial information in New Zealand accordance with generally accepted accounting practice in New Zealand; and • having systems and processes in place to enable the preparation of a plan that is free from material misstatement.

We are responsible for expressing an independent opinion on the plan and the disclosures required by the Regulations, as required by sections 94 and 259C of the Act. We do not express an opinion on the merits of the plan’s policy content.

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53 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Infrastructure Strategy 2021-2051

Background...... 26 Where we are heading...... 27 Where we are now...... 29 Key decisions...... 37 Our plan...... 62 Assumptions...... 64

54 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Infrastructure Strategy

Background Over the next 30 years the environment in which these Most of our major resource consents for water and decisions are made will continue to change. We need wastewater have more than a decade left before they Why have an infrastructure strategy? to provide for ongoing population growth (currently expire. The new water source and the Urenui/ Infrastructure is one of the most significant elements of expected to grow by over 20 per cent over 30 years) wastewater projects will be the main projects that council planning and expenditure. Most council services and where new housing and employment areas will be require significant new consents. Also universal water rely on having fit for purpose infrastructure to support situated to cater for that growth; an ageing population metering and water conservation are both viewed as that service and infrastructure is a significant driver of and what that means for much of our infrastructure; essential prerequisites before we can get a new water council costs. ongoing growth in tourism – which we expect to source consented. bounce back post Covid-19; the effects of climate This strategy covers the critical infrastructure networks New Plymouth District Council (NPDC) currently has change (e.g. coastal infrastructure at risk, managing owned and operated by NPDC (water, wastewater, infrastructure assets worth almost $2.3 billion and is increased flooding events and conversely improved stormwater and flood control, roads and footpaths) expecting to invest a further $935 million over the water supply for droughts). as well as those key recreational and property assets next 10 years in renewing, upgrading or adding to our where strategic decisions are identified within the infrastructure assets. In addition, it costs approximately Who provides infrastructure? 30 year period. $50m each year to maintain and operate these assets Delivering New Plymouth’s infrastructure requires which represents 30 per cent of NPDC’s total operating coordination across a number of public and private costs. A key part of the Long-Term Plan (LTP) process organisations depending on the type or scale of is ensuring that NPDC is making timely and well infrastructure: informed decisions on these investments - as the • Government provides state highways, railway lines consequences of those decisions will be with the district and some social infrastructure, such as schools for many years, in some cases generations to come. and hospitals. It also subsidises other transport The Infrastructure Strategy is complemented by the infrastructure. Financial Strategy which considers the financial and funding impacts of these decisions and sets out the • NPDC provides arterial roads, water supply, impacts on both the council finances and the direct wastewater and stormwater networks and social implications for ratepayers. infrastructure such as community facilities and parks. NPDC also, through our Council-controlled The Local Government Act 2002 requires all councils to Organisation Papa Rererangi i Puketapu Ltd, prepare an Infrastructure Strategy as part of their three provides the New Plymouth Airport. yearly long-term planning process. The Infrastructure • Taranaki Regional Council own , Yarrow Strategy must cover a period of 30 years and identify: Stadium, regional gardens and provides public • the key infrastructure issues facing the Council; transport, significant flood protection on the Waitara • the principal options for managing those issues; and and Waiwhakaiho rivers, and river management. • the implications of the various options. • Developers initially construct local streets and pipe networks which are then vested with NPDC to own and maintain. • Energy and communications infrastructure is typically supplied by private utility companies.

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Infrastructure Strategy

Where we are heading Decisions about future investment in our infrastructure assets will be subject to ongoing legislative changes In order to make good decisions about future investments in our infrastructure assets, NPDC needs to have a clear including the Freshwater Reforms, the Three Waters vision of what it is trying to achieve. In July 2020 we confirmed our strategic framework. Reform, the National Policy Statement for Urban Development, and the three new acts signalled under the resource management reforms.

To help us prioritise the investment in our infrastructure we have identified the following key drivers of our Sustainable Lifestyle Capital decisions:

Vision 1. Taking care of what we have. We need to ensure that we invest in maintaining, renewing or replacing our existing asset infrastructure to preserve and extend their useful life.

2. Resilience and responding to climate change. To provide our people with an innovative and resilient district that restores mauri, As we build new assets and renew our existing protects our environment and supports a successful economic transition, while infrastructure we must ensure we build in resilience to issues from natural hazards including volcanic providing quality infrastructure and leadership through operational excellence and seismic activity, sea level rise, coastal erosion, flooding events and droughts along with the Mission consideration of the predictions of climate change.

3. Planning for growth. Our district continues to grow Partnerships Delivery Community Sustainability Prosperity and it is important that we manage that growth and provide the infrastructure in the appropriate areas to Strengthening a treaty Understanding and Achieving wellbeing Nurturing our Growing a resilient, based partnership with balancing our people’s through a safe, environment, mitigating equitable and support new housing and employment areas. tangata whenua and needs and wants creative, active and our impact and sustainable economy building partnerships through prudent connected community adapting to climate where people want to 4. Meeting the needs of our community and reducing with not-for-profit, delivery of quality while embracing Te Ao change work, live, learn, play private enterprise, infrastructure and Māori and invest across our our impact on the environment. As our community Goals and government to services district grows and changes we need to ensure our improve outcomes for all infrastructure responds to those changing needs How we maintain, renew and invest in our infrastructure networks will be driven by delivering on this mission and and that we also respond to increasing standards to goals. The level and speed at which we can achieve the mission will be constrained by the affordability of providing support public health and environmental protection. everything that the community and Council may wish to. Our Financial Strategy sets out the limits within which These four drivers of decision making have been we need to work in order to keep our spending affordable for the community. In setting out the options for each translated into some specific asset management of these major infrastructure decisions in this document we have been guided by the limits set in the Financial objectives. Strategy.

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56 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Infrastructure Strategy

Taking care of what we have Resilience and responding to climate change Partnership with iwi Taking care of our infrastructure assets means: Resilience of our assets means: The LTP identifies the role that Māori play in relation to the decision making of NPDC in the section titled We understand that asset data and ‘Working with Tangata Whenua’. As set out in that evidence based decision making are Our infrastructure protects and enhances critical to optimising costs and maximising our built environment and creates amenity section, there are a range of mechanisms at both the the value our services bring to our value. governance and management levels where iwi and customers. hapū engage with NPDC and participate in the decision making process.

We provide reliable services and We protect and enhance public health by For large infrastructure investments NPDC is infrastructure that is resilient to natural providing quality services. working more collaboratively with iwi to develop hazards and adapts to climate change. sustainable outcomes for the community. For example, a partnership is developing in relation to the development of a sustainable, long-term strategy for the district’s three water systems (drinking water, We provide system redundancy and We own and operate infrastructure that is wastewater and stormwater). The purpose of He Puna emergency back up systems to our critical safe for our staff suppliers and customers. Wai is for NPDC and Ngati Maru, Ngāti Tama, Ngāti infrastructure. Mutunga, Te Atiawa and Taranaki Iwi to work together in a spirit of partnership and collaboration to develop Planning for growth Meeting the needs of the community and a long-term framework for the management of the reducing our impact on the environment district’s water resources. Planning and providing for growth means: Meeting the needs of the community and reducing the NPDC is moving its engagement model to the front- impact on the environment means: end of planning processes to better recognise tangata whenua’s connection to place. Building on the success We work in partnership with Tangata We manage the consumption of energy of the Te Hono New Plymouth Airport Terminal, the Whenua when we plan for our and associated greenhouse gas emissions Waitara to Bell Block Coastal Walkway Extension will be infrastructure. to mitigate our impact on climate change. co-designed with hapū. This approach will better ensure that the footprint of tangata whenua is recognised in the delivery of infrastructure projects.

Our infrastructure is an enabler for We protect and restore the health of our economic activity and future growth. natural environment.

We educate our community so they can We manage the use of resources in a make informed choices about how they sustainable way, minimising waste and use our services and manage demand on seek out opportunities to use wastes as a our infrastructure and services. resource to be reused or recycled.

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57 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Where we are now Our current assets NPDC’s infrastructure assets are valued at almost $2.3b. This diagram illustrates the value of each major group of asset infrastructure.

WATER SUPPLY INFRASTRUCTURE POOL GRC* $75 Million EQUIPMENT BUILDINGS Reservoirs, Pump WASTEWATER GRC* $8 Million GRC* $289 Million Stations,Treatment TREATMENT ROADS AND 5 Pools Arts, Pools, Treatment Plants Plants GRC* $138 Million INFRASTRUCTURE SOLID PLAYGROUNDS Treatment Equipment and Pump Stations GRC* $1.77 Billion WASTE GRC* $3 Million Length: 1,285km Number: Pavements GRC* $1 Million 49 Transfer Stations and Landfill PARKS PARKS STRUCTURES FLOOD GRC* $56 Million PROTECTION GRC* $20 Million Area: 82km of Walkways GRC* $21 Million 1,600ha STORMWATER 3 Dams and PIPES 4 Tunnels GRC* $352 Million Length: 307,674m

WATER SUPPLY GRC*- Gross Replacement Cost at 2019 PIPES GRC* $260 Million Length: WASTEWATER 794,000m PIPES GRC* $512 Million Length: 690,653m THE VALUE OF OUR INFRASTRUCTURE

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Infrastructure Strategy

Our current challenges Since the Global Financial Crisis in 2007 we have had In 2020/21 we reinstated Closed Circuit a period of economic turmoil and fiscal constraint Television (CCTV) inspections and employed a In the ‘Where we are heading’ section above, we the world over. In response to this, and the impacts mechanical maintenance inspector to improve outlined the four key drivers that will help determine on its Perpetual Investment Fund, NPDC made our understanding of the condition of our assets. the prioritisation of NPDC’s investment in infrastructure. significant cuts to renewal budgets over a number of These two initiatives will continue as business as 1. Taking care of what we have years, in order to reduce the level of rates charged to usual within this LTP to ensure that we continue to the community. improve our understanding of the condition of our Looking after the very significant investment that assets. We have also included funding in this LTP to has been made over many years in New Plymouth’s Due to the better understanding we now have explore improved inspection methodologies. infrastructure is a high priority. Much like looking of the condition of our assets and the impacts of after a house, it is important we maintain the underfunding, it is estimated that there is now a Key to making best use of these new tools, condition of our infrastructure assets to make backlog of approximately $126m of assets that and supporting our decision making on sure they perform, that they are safe and that they have reached the end of their operating lives. Our renewals, is good information on the condition of have as long and useful life as possible. We do this current renewals budgets average $28m per year our assets. Without good information on condition through: and we estimate to address the backlog of deferred and provision of sufficient funding we face the risk renewals, and fund the ongoing forecast renewals of asset failure such as the recent partial collapse • Maintenance programmes – keeping an asset requirements, budgets will need to increase to of Waiwaka Terrace culvert. As a result of this issue, in good repair. This would be comparable to somewhere between $45m (low option) and $61m an unbudgeted $2.5m was required to prevent regularly painting your house and cleaning your (high option) per year for the next 10 years. We have further collapse and risks to public safety and private gutters. chosen a medium level ($51m capital programme property. • Renewals - replacing all or part of an asset to per annum). We have also determined to fund this Good asset data and a well informed renewal extend its life. In the house analogy this would be programme using debt and reserves for renewing programme reduces the need, and consequent comparable to replacing the roof. some long life assets in the short-term, with rates cost, for reactive maintenance when an asset fails or fully funding renewals from year 8 (2028/29) on. This Maintenance is part of our normal operational becomes high risk, such as the above example. approach balances the level of risk with affordability expenditure. In the past few years renewals have for the community. been funded from reserves, set aside annually from rates and evened out over a 10 year period. Because As NPDC’s asset management capabilities continue in this LTP we are proposing to catch-up on previous to mature, more sophisticated techniques are being under-expenditure, we propose to fund renewals introduced to improve the accuracy and reliability from a combination of the rate funded reserve of our renewals budget forecasting. This includes and debt (for longer life assets). This approach will the introduction of Monte Carlo risk simulations. be phased out as we catch-up with the renewal These simulations are mathematical statistical programme. For more information see the Financial techniques used to understand the impact of risk Strategy. and uncertainty in financial forecasting models. This allows for critical assets, where the consequence of failure is high, to be proactively replaced in order to minimise risk. Conversely, non critical assets with a low consequence of failure can be allowed to ‘sweat’ by delaying their replacement in order to extract maximum value from these assets.

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Infrastructure Strategy

Based on current data, our assessment of asset condition shows: Taking care of what we have Activity Condition data Confidence Current performance Our strategy for looking after our existing Water Supply 64% of water pipes are rated Moderate Aside from some unsatisfactory assets is to: moderate or better condition. 22% confidence pressure management and are rated poor or very poor condition Inglewood discolouration we are a) Improve our knowledge of the condition and 14% rated as unknown. meeting required levels of service. of our assets through inspection and data collection. Wastewater 51% of wastewater pipes are rated High confidence Currently meeting required levels of moderate or better condition. 35% service. b) Prioritise funding to the renewals of are in poor or very poor condition existing assets. and 14% are rated as unknown. c) Develop proactive maintenance Stormwater More than 50% of our critical Moderate Generally meeting levels of service schedules for all assets. stormwater assets have had Confidence with the exception of Waitara and condition inspections. Renewals for some other discrete areas in the less critical assets are based on age district. and performance. Flood Protection The network is in very good High confidence Currently meeting required levels of condition. service. Transportation The asset base is in good condition High confidence Currently meeting required levels of and has 57% of its original life service. remaining.

Each asset category has a full programme of renewal projects. Some examples of these are: Project Description Cost Timing Water asset condition Undertaking a comprehensive review of key assets $1.4m over Commencing inspections in water supply network to inform the renewal three years 2021 programme, thereby protecting water supply, public health and the environment. Inglewood oxidation ponds Some components of the existing ponds and pump $5.2m 2025/26 and pump station upgrade station are obsolete and can no longer be replaced. project Current configuration results in discharges during rainfall events. Consents for discharges expire in 2033. Te Rewa Rewa bridge A repaint of the bridge is required within the next two $1.8m 2021/22 repaint years to prevent corrosion of structural steel (resulting in more expensive treatment being required at a later date). Junction Street bridge The current bridge is not for fit for purpose and the $2.8m 2023/24 upgrade attached pedestrian bridge is at the end of its life.

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Infrastructure Strategy

2. Resilience and responding to climate change In February 2018 the ex-cyclone Gita event damaged a main water pipe resulting in significant water shortages across the district. This is a good example of why we Recovery Land Use have to improve our planning and provision of resilience for critical assets needed Planning Planning by the community in any form of natural disaster or weather event, such as water Economic Landscape Management supply, wastewater services, and critical transport routes. Strength Currently we are vulnerable to natural disasters because: • Historically, some of our existing infrastructure has been constructed in areas Organisational subject to natural hazards, i.e. along the coast, across rivers, on fault lines and in Adaptation Response areas subject to volcanic activity. • In the early years of development of our wastewater networks, expectations and standards were very different from today. When combined with increased Financial Resilience pressure from ongoing growth this leaves us with risks of sewage overflows and Asset Strength difficulty in planning shutdowns for maintenance purposes. Criticality • The layout of some of our transport network and our challenging natural topography, means that during a major event some communities could be isolated. Community Inter- Preparedness dependency While climate change is an issue nationally, the Taranaki region is particularly susceptible to volcanic activity and earthquake events. Massey University research identifies that seismic activity is likely in the next 50 years with an 81 per cent Resistance Monitoring & probability of Taranaki Maunga erupting in that period. There are a number of Operational active fault lines in the district and offshore and a volcanic event could cause major Service Redundancy disruption through lahars and ash fall. Delivery In the face of these risks we need to ensure we improve our resilience. Resilience is more than just building robust infrastructure that can withstand natural disasters. It b) Maintain readiness through maintaining assets to a high standard and requires a multi pronged approach which covers every aspect of the way we plan, remove manageable hazards (e.g. debris, trees creating risks). Along build and manage our asset networks, as well as how we respond during and after with targeted and well communicated response plans, education of the an event, as illustrated by the diagram. community for their own preparedness and provision of financial reserves Using this approach will enable us to: for recovery actions. a) Reduce risk by actions such as improving our knowledge of hazard zones, c) Respond during an event by focusing on and prioritising what is critical. This understanding risk and criticality of assets, and ensuring where practicable that is achieved by coordinating the response across multiple agencies, shutting future assets are not built in hazard zones. Where necessary remove assets and down damaged assets and activating alternatives, communicating clearly private property in hazard zones, strengthen assets that remain in hazard zones, and frequently with the community. or provide alternatives and duplication for critical assets. d) Recover from an event by building better than before (avoiding risk zones, providing alternatives and duplication), using the rebuild to develop skills and knowledge in the community.

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Infrastructure Strategy

Some examples of key projects we have identified to deliver on this strategy are: Resilience and responding to climate change Project Description Cost Timing Water resilience – Ōākura Investigation and remediation of vulnerability of $1.1m 2026/27 Our strategy to provide resilience and respond No.1 reservoir Ōākura No.1 reservoir to seismic events to prevent to climate change is to: loss of water supply and danger of flooding to a) Develop a resilience framework and neighbouring properties. levels of service for critical assets. Wastewater pipe bridge Information on the condition of many pipe bridges $0.3m per Commencing b) Complete seismic and criticality upgrade programme and their vulnerability to natural hazards such as year 2027 assessments across the asset flooding is incomplete. Structural assessments will be infrastructure network. undertaken followed by a programme of necessary upgrades. c) Upgrade and/or provide alternatives for second This project is key to providing resilience to $7.3m 2032 to 2041 critical assets in the network and ensure viaduct the network through another crossing of the solutions are adaptive to climate change. Waiwhakaiho River. It will also provide some d) Communicate with our community to additional capacity to the network. prepare them for a natural disaster. Historic landfill erosion Following storm exposure of a historic landfill site at $0.8m 2021/22 protection Waitara a stocktake of all historic landfills for which the Council is responsible has been undertaken. Risks and mitigation strategies will be developed for eight high priority sites (includes three on the coast and five close to riverbanks).

3. Planning for growth Our district is growing. In 2021, our population will be 86,700, equating to almost 70 per cent of the Taranaki region. The population is projected to grow to 93,800 over the next 10 years and to 104,900 by 2051 (an increase of 21 per cent). To meet our strategic vision and support a sustainable and connected community, we must plan for future growth. Planning ahead and making the appropriate infrastructure investment means we can service a growing number of residents and businesses and ensure the district remains an affordable and desirable place to live and do business. In 2008, the Council reviewed the district’s land supply under the Operative District Plan and adopted its Framework for Growth. In response to the 2016 National Policy Statement Urban Development Capacity the Council signalled through the LTP 2018-2028 that growth related infrastructure would be led by the Council (as opposed to developer led) and that a new District Plan would improve urban growth outcomes by providing a strengthened approach to the identification and provision of adequate land for growth in the right location. Notified September 2019, the Proposed New Plymouth District Plan introduces structure plan development areas for identified zoned and infrastructure ready growth areas to ensure good quality subdivision and development

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Infrastructure Strategy

outcomes, as well as future urban zones which specifically recognise and identify suitable areas for residential and business (which includes industrial) growth in the medium to long term future. This approach is supported by a robust policy framework designed to include tangata whenua involvement in growth planning/land use and take into account community, social, economic, climate change and sustainability outcomes to ensure comprehensive, high quality development can occur in these areas. Importantly, this is all underpinned by the requirement that these areas must demonstrate they can be efficiently and appropriately serviced before they can be developed for urban use. Key changes introduced in the Proposed District Plan are highlighted as: • Short to medium term growth, over the next 10 years, will be met within existing undeveloped structure plan development areas located in Bell Block, Junction Road, Carrington Street and Patterson Road. Infrastructure projects are provided over the next 10 years for these projects. • In the longer term (years 11 to 30) growth will expand into future urban zones located on the urban boundaries of parts of New Plymouth, Waitara, Ōākura, and Okato. The map shows these areas. Planned growth areas The National Policy Statement on Urban Development (NPS-UD) was released in August 2020. implications of infrastructure decisions we might Council needs to plan and sequence our investment The NPS-UD will continue to be taken into account in make. We need to consider tools for managing in line with the areas identified for growth. relation to our ongoing land use and infrastructure demand on existing infrastructure rather than Future growth will require investment in both growth planning informing this Infrastructure continuing to build for existing usage behaviours, network wide infrastructure, such as central Strategy, LTP 2021-2031 and the completion of the such as reducing water consumption or changing processing plants, and in upgrading, or slightly District Plan review. travel choices. extending, existing infrastructure on the boundary Infrastructure assets for new growth is expensive Where additional infrastructure is required to of our urban areas. and it is important that we understand and utilise support the growth enabled in the District Plan, the the infrastructure we already have and explore the

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Infrastructure Strategy

NPDC intends to lead any large scale infrastructure projects in the district. We will recover a portion of expenditure required to service new growth areas from developers of those areas, in accordance with our Development and Planning for growth Financial Contributions Policy. Property developers are responsible for smaller scale and less complex infrastructure Our strategy for planning for growth is to: upgrades at the time they undertake their developments. a) Improve our data and modelling tools for In addition, new legislative requirements have been recently introduced through the NPS-UD that direct the Council existing infrastructure capacity so we can to provide zoned, feasible, serviced land to meet our projected population growth. The NPS-UD will continue future proof for growth. to be taken into account in relation to our ongoing land use and infrastructure growth planning informing this Infrastructure Strategy, LTP 2021-2031 and the current and future District Plan review processes. b) Consider tools for managing demand on some infrastructure. Some examples of key projects we have identified to deliver on this strategy are: Project Description Cost Timing c) Plan and deliver necessary infrastructure projects in sequence with the growth of Water conservation Water conservation measures that incentivise users $18m for Commencing the district. programme including to reduce their demand, will enable deferral of major water meters 2021 universal water metering capital works that would otherwise be required to and $5m cater for growth. It also reduces the amount of water opex over taken from natural water sources and increase the 10 years for ability to be resilient in drought conditions without other water additional water sources. conservation initiatives with overall net savings of $121m Cycling and walking A programme of building more cycling and walking $7.5m over Commencing programme links so that it is safer and easier to travel around our 4 years 2021 city and district without using the car.

4. Meeting the needs of our community and reducing our impact on the environment The nature of our community will change over time. We are predicting that the average age of the community will continue to increase. Currently 19 per cent of our population are over 65 years old. By 2031 this is expected to increase to 24 per cent and by 2051 to 27 per cent. With this ageing population comes increasing issues related to accessibility of assets and services which we need to take into account in our planning. The mix of ethnicities in the district is not expected to change significantly with European and āM ori ethnicities remaining predominant with a small increase in the Asian population over the 30 year period. In addition to our changing demographics, expectations of NPDC performance and service levels continue to evolve. These are driven by the community, our key partners and by central government legislation and regulation. These expectations extend to the way we manage our ongoing impact on the environment and restore degraded natural habitats. Central government legislation on climate change is rapidly evolving, with increased expectations from councils to report on climate change preparedness and produce emissions reduction plans for the organisation and community, as well as adaptation plans.

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64 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Infrastructure Strategy

Some examples of key projects we have identified to deliver on this strategy are: The priority areas for meeting the needs of the Project Description Cost Timing community and the environment are: • Security and quality of water supply. Library redevelopment The Puke Ariki and Community Libraries Strategy has $31m 2032 to 2041 identified the need to expand and/or upgrade our • Reduction in the risk of wastewater overflows which library network to meet the changing needs of the impact on public health and the environment. community and keep pace with growth across the • Reduced risk of stormwater inundation and/or district. This involves redeveloping the Waitara library flooding which impacts both on private property and in years 5 and 6, Bell Block library in years 11 to 15 and water quality in the natural environment. Inglewood, Ōākura and Puke Ariki in years 16 to 20. • Improved transport safety. Commercial and Industrial A Commercial and Industrial Material Recovery $1.7m 2021/22 • Connecting communities through good transport Material Recovery Facility Facility enables commercial waste to be consolidated network design. and sorted to divert reusable and recyclable waste • Increasing transport options to help people lower from landfill. It will extend progress towards the Zero their transport related emissions. Waste 2040 target (commercial waste makes up more than 60 per cent of waste sent to landfill), and provide • Putting in place plans and actions to reduce and local infrastructure and solutions, increasing resilience mitigate our emissions. for recycling options. • Ongoing reduction in waste to landfill and managing historic landfills. Planting Our Place Climate A programme of Planting Our Place has been initiated $3.4m over 20 Commencing Action Programme in order to deliver on the carbon sequestration years 2021 • Developing lifestyle projects that provide for both outcomes identified in NPDC’s Climate Action growth and the changing needs of our community. Framework. This will also help to meet a 10 per cent indigenous fauna cover. We will deliver this in Meeting the needs of our community partnership with iwi and the wider community. and reducing the impact on the Intersection safety A number of intersections have been identified for $6.3m over Commencing environment improvements safety improvements these include: 3 years 2021 Our strategy for responding to the needs of our • Breakwater Road - Ngamotu Road - Centennial community and reducing our impact on the Drive. environment is to: • Brois Street – Govett Avenue. a) Protect public health and safety through • Devon St East - Currie Street. improvements to water, wastewater, stormwater • Gover Street - Liardet Street central block traffic and transport networks. calming. b) Improve environmental outcomes by • Hobson Street - Devon St East. reducing and mitigating emissions, reducing • Parklands Avenue - Mangati Road. wastewater overflows, reducing the waste • Belair Avenue – Omata Road. stream and emissions, improving biodiversity • David Street - Tukapa Street signalisation. and encouraging more sustainable practices in • Lorna Street - Devon St West signalisation. transport and water usage. • Henwood Road bridge (over SH3) traffic c) Improve provision of recreational facilities to signalisation. meet the needs of a changing community.

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Infrastructure Strategy

Key decisions In this section we highlight the significant infrastructure issues we are likely to face over the life of this strategy within the following infrastructure asset groupings: water supply, wastewater, stormwater, flood protection, transportation, parks and open space, waste management and minimisation, Puke Ariki and community libraries, and venues and events.

Within each grouping, we discuss the infrastructure issues related to that asset group and present the possible options for managing those issues in relation to our four key drivers and the strategies that we have outlined in the previous section.

Taking care of what we have

Resilience and responding to climate change

Planning for growth

Meeting the needs of our community and reducing our impact on the environment

In developing the options for decision making we have also taken into consideration: • The overall affordability of the work programme in the context of the limits set in the Financial Strategy. The preferred options have been selected with a balance between affordability and speed of addressing the issues very much in mind.

• Our ability to deliver the full programme of works. We are addressing this by a ‘stepping in’ of the programme over the first five years which enables us to grow our ability to undertake this work. Phasing the projects across multiple years provides time for planning, land acquisition and resource consents before construction. We also improved our processes and levels of resourcing to manage this work. Because a big chunk of our projects involve fixing our existing assets, we won’t have as many delays with issues such as land acquisition and resource consents.

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Infrastructure Strategy

Water Supply

NPDC operates four separate water supplies in the district, providing approximately 32.7m litres of water per day to just under 28,000 households and businesses. We develop, operate and maintain water treatment plants to meet water quality standards. We also manage pump stations, pipe networks and storage facilities such as reservoirs to ensure our community has a reliable and sustainable supply of fresh water. The costs of operating these networks is funded through a targeted rate on those properties that receive the service.

Key Water Supply issues There are four key issues that are relevant to the planning and management of our water supply over the next 30 years:

1. The condition of the water supply network. We have a big backlog (estimated at $33m) of renewal work from several years of underfunding. Addressing the condition of the existing network is a priority through improved data collection on the condition of the network and increased funding for renewals. 2. Capacity of the network. At the current rate of water usage we are close to capacity in much of our network. Water conservation initiatives, in particular universal water metering and volumetric charging, will enable us to defer expensive investment in new water sources while catering for growth. 3. Continuity of water supply in the event of a natural disaster. Protection of our network from weather events, seismic and volcanic activity is a priority to ensure public health is safeguarded in these circumstances. To address this we intend to improve existing assets to withstand seismic activity and natural disasters, manage the risk of damage to the network from existing hazards and, where possible, provide duplicate assets as an alternative supply. 4. The National Policy Statement for Freshwater Management. This has a potential major impact on NPDC. Much of our water supply relies on the ability to take water from our rivers and changes to the standards of freshwater management could impact on our ability to take what we need. Water conservation initiatives will be an important factor in managing this impact.

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Infrastructure Strategy

Options for decision NPDC has considered the issues of water supply in the context of the four drivers of decision making and the strategies for those, set out earlier in this document. In that context the following options have been developed.

The Drivers The Options

Taking care of what we In order to improve, or even maintain, the existing condition of our water supply network, we need to increase Preferred Option have our investment in renewals so do we: 1. Keep our average annual renewals expenditure the same as the LTP 2018-2028 for 2021 financial year ($5m) Our preferred option which will mean our network gradually deteriorates. is Option 3 – increase average annual renewal 2. Increase our average annual renewal expenditure to $6.2m which will keep our network in the same condition expenditure to $8m and as it is now (i.e. will not clear the backlog). clear the backlog over 3. Increase our average annual renewal expenditure to $8m and clear the backlog over about 20 years. about 20 years. 4. Increase our average annual renewal expenditure to $12.5m and clear the backlog over 10 years.

Resilience and responding There are a number of improvements we can make to our drinking water systems to make them more resilient to Preferred Option to climate change natural hazards and the effects of climate change. We could: 1. Invest up to $6.2m on adapting water infrastructure in order to lower the risk posed by natural hazards by Our preferred option is: making seismic improvements to our reservoirs, installing additional flow meters and supply zone isolation • The combination of valves and protecting pipe bridges. Options1, 4 and 5 in 2. Spend up to $13.8m duplicating the main central, eastern and western feeder pipes in order to provide some years 1 to 10; then network redundancy to these critical assets. • Option 3 in years 11 3. Manage the landscape in the catchments that feed our drinking water systems to reduce the risk to our water to 20; then supplies by spending up to $700,000 to undertake a riparian planting programme. • Option 2 in years 21 4. Investigate options for a new water source and prioritise for further investigation those that also provide to 30. additional redundancy and excess capacity to allow for some headroom. 5. Improve our community’s preparedness by developing natural disaster scenarios and using our network models to predict how long it will take to repair and restore water services after a major event. Then we will work with our community so that they have the information and advice needed to be well prepared to bridge the gap until Council services are back up and running.

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The Drivers The Options

Planning for growth As our population grows we need to plan for upgrades to our treatment plants, reticulation networks and a new Preferred Option water source. However, this will be costly and have a large impact on our environment and it may be difficult Meeting the needs of our to get a resource consent, so before we do this we need to make sure we are being efficient with the water we Our preferred option community and reducing already have consented. Reducing water consumption will also have the benefit of delaying or removing the need is Option 3 – reduce our impact on the for some large upgrade projects and will save money over the next 30 years. To conserve water we can: water usage by 25%, environment 1. Carry on with the same minor water conservation programme we currently have. This will maintain the status saving $121m over the quo and will not reduce water usage. next 30 years. 2. Increase our conservation programme by installing water meters so that people pay for what they use. This is expected to reduce water usage by 20 per cent, saving $61m over the next 30 years. 3. In addition to option 2, increase our community and commercial education programmes, reduce the pressure in some of our supply zones, and introduce a green plumber and other incentive tools. This is expected to reduce water usage by 25 per cent, saving $121m over the next 30 years. 4. In addition to options 2 and 3 above, significantly increase our community education programmes, also bill for wastewater by water meter, significantly expand our leak detection and repair programmes. This is expected to reduce water usage by 30 per cent, saving $120m over the next 30 years.

Note: the savings outlined above are net of the costs of implementation.

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Infrastructure Strategy

Wastewater The wastewater reticulation network and pump stations collect domestic and industrial wastewater from more than 27,000 properties in urban New Plymouth, Bell Block, Waitara, Inglewood and Ōākura. We treat wastewater at the central New Plymouth Wastewater Treatment Plant (WWTP) before discharging the treated water via outfall to the sea. We also process the biosolids that result from the treatment process at the Thermal Drying Facility (TDF) into Bioboost fertiliser which we sell throughout the country.

The costs of operating these networks is funded through a targeted rate on those properties that receive the service.

Key Wastewater issues The key issues of relevance to the planning and management of our wastewater network for the next 30 years are:

1. The condition of the wastewater network. As with other water assets, we have a backlog (estimated at $59m) of renewal work from several years of underfunding and need to address this as a priority through improved data collection on the condition of the network and increased funding for renewals. 2. Continuity of the services in the event of a natural disaster. To protect both public health and the environment we need to ensure that we safeguard key parts of the network. We intend to do this by improving existing assets to withstand seismic activity and natural disasters, managing the risk of damage to the network from existing hazards, identifying and reducing infiltration from stormwater and providing duplication of some key assets. 3. Capacity of the network. As well as extending the networks to new growth areas, there needs to be capacity for the treatment and disposal of increased wastewater flows. A major factor in managing this is infiltration of the existing system from stormwater. 4. Environmental impact of wastewater. Standards related to the impact of wastewater management on public health and environmental protection have been strengthened by regulation over the years and are expected to continue to improve. Our most significant issue is the Waitara marine outfall which acts as an emergency discharge for sewage and there are also increasing concerns about the impact of poorly managed septic tanks on the environment.

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Options for decision Options for dealing with these issues have been developed in the context of our four decision making drivers and the strategies outlined earlier in this document.

The Drivers The Options

Taking care of what we In order to improve, or even maintain the existing condition of our wastewater network, we need to increase our Preferred Option have investment in renewals so do we: 1. Keep our average annual renewals expenditure the same as the LTP 2018-2018 for the 2021 financial year Our preferred option ($4.4m) and accept the risk of pipe failures. is Option 3 – increase our average annual 2. Increase our average annual renewals expenditure to $10.4m which will keep our network in the same renewals expenditure condition as it is now (i.e. will not clear the backlog). to $12.1m per year and 3. Increase our average annual renewals expenditure to $12.1m and clear the backlog over about 20 years. clear the backlog over about 20 years. 4. Increase our average annual renewals expenditure to $17m and clear the backlog over about 10 years.

Resilience and responding There are a number of improvements we can make to our wastewater systems to make them more resilient to Preferred Option to climate change natural hazards and the effects of climate change. We could do any combination of the following:

1. Spend about $0.3m per year to run a programme of pipe bridge upgrades where our sewers cross rivers and Our preferred option is streams so that they are more resistant to damage from natural hazards. Options 2 and 3 first. Once complete, the 2. Use our new wastewater network model to predict what the impact of more intense rainfall will be on inflow wastewater network and infiltration and plan future improvement projects (this is included in the $6m cost to build the wastewater model can be used to network model) – see below. better target future 3. Spend $45m (with $39m funded by Crown Infrastructure Partners) to upgrade the new Thermal Drying Facility investment against all to run on a blend of natural gas and hydrogen in order to reduce our carbon footprint and mitigate climate of the other options change. so that the cost of achieving the benefits is 4. Upgrade our sewage pump stations so that they have emergency storage and backup power generation (at a significantly reduced. cost of up to $80m). 5. Put long-term plans in place for some of our smaller community wastewater systems, particularly in Urenui and Onaero domains which are at risk from coastal erosion and sea level rise. This planning work could cost up to $1.5m.

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The Drivers The Options

Planning for growth As our population grows we need to plan upgrades to our pipe networks and treatment plants so that we don’t Preferred Option overload the system and cause sewage overflows so do we:

1. Continue with our minor upgrade programmes based on our current reactive process when the risk of sewage Our preferred option overflow becomes high. The cost of this option is unknown, but it is likely to have the highest cost of all the is Option 2 – build a options. network model and undertake inflow 2. Spend $6m to build a wastewater network model so that we can start to proactively plan upgrades before the and infiltration risk of sewage overflow gets high and use it to undertake inflow and infiltration investigations so that we can investigations. keep stormwater out of our wastewater system and free up more capacity for growth.

Meeting the needs of our The Waitara sewer pumping system currently uses the marine outfall as an emergency overflow. Whilst this means Preferred Option community and reducing that any overflow goes about 1.25 kilometres out to sea instead of directly into the Waitara River, we know that our impact on the this is culturally offensive, particularly as sewerage is discharged near the Waitara reef which is important for Our preferred option environment Moana Kai. In addition, as the condition of the marine outfall continues to deteriorate we need to plan for its is Option 2 – make replacement which could cost around $16m. To address this we can: major improvements to 1. Carry on with the current programme of work making minor improvements to the reliability of the sewage the sewage pumping pumping systems and budget to replace the outfall pipe at an estimated cost of $16m. system in Waitara. 2. Instead of spending money on replacing the outfall pipe, we could spend $5.4m to make major improvements to the sewage pumping system in Waitara with the aim of eliminating the need for the outfall pipe. Noting we would leave the existing outfall pipe in place until it reaches the end of its life, just in case the upgrades don’t achieve this goal. There will be a further cost to remove the old pipe from the seabed but this will be significantly lower than its $16m replacement cost estimate.

River water quality testing in Urenui has shown there are issues with the performance of private septic tanks Only one option contaminating the surrounding environment and stormwater systems. In addition, the communal septic tanks available - spend up servicing the Urenui Domain and Onaero campground baches are underperforming and the disposal fields are to $29.2m to reticulate also at risk of coastal erosion. We propose to reticulate the Urenui and Onaero settlements with a small satellite the Urenui and Onaero land based wastewater treatment plant. The estimated completion of construction for the land based wastewater settlements with a small treatment plant is year 5 with reticulation being completed in year 10. At this stage, there is only one option satellite land-based available to address this issue: wastewater treatment 1. Spend up to $29.2m to reticulate the Urenui and Onaero settlements with a small satellite land based plant. wastewater treatment plant.

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Stormwater Over 300 rivers and streams cross Taranaki Maunga’s ring plain and run to the lowlands in a distinctive radial pattern. Following high intensity rainfall, water culminates in the various river catchments, draining quickly to the sea. Heavy rain has the potential to overwhelm stormwater systems draining to the rivers and streams and can cause localised surface flooding. These effects are usually short- term and related to a particular storm event. However, there are areas in the district that are more prone to these effects than others.

The predicted effects of climate change for more frequent severe weather events with increasing rainfall intensity would have a particular impact on the management of stormwater.

Key Stormwater issues The three key issues for the stormwater network that will need to be addressed over the 30 years of this strategy are:

1. A lack of up to date information, modelling and planning for the stormwater network. This results in projects being carried out in a reactive and less than cost effective way. These issues are exacerbated by the predicted increases in severe weather events from climate change. It also means new developments cannot be properly planned with up to date information. 2. The condition of the stormwater network. The stormwater network has been significantly underfunded and needs urgent attention. More than 50 per cent of our largest and most critical assets have had visual inspections to check their condition. We recommenced a CCTV inspection programme and have prioritised our most critical stormwater assets to fill in the gaps in our asset condition dataset. We have a virtually complete record of the age of our assets (98 per cent) and this dataset has been used as a proxy for condition where we don’t have condition ratings for stormwater assets. Performance and historic failures are also considered as part of renewals forecasting. There will be increased ongoing funding for CCTV inspections from year two. 3. Waitara township flooding. There are some areas of the district that have ongoing flooding issues. Some of these are minor and will be part of an ongoing work programme, but the most significant relates to the Waitara township where flooding is a significant problem that needs a long-term solution.

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Options for decision Options for dealing with these issues have been developed in the context of our four decision making drivers and the strategies outlined earlier in this document.

The Drivers The Options

Taking care of what we In order to improve, or even maintain the existing condition of our stormwater network, we need to increase our Preferred Option have investment in renewals so do we:

1. Keep our average annual renewals expenditure the same as the LTP 2018-2028 for the 2021 financial year Our preferred option ($0.4m) and accept the risk of pipe failures. is Option 3 - increase our average annual 2. Increase our average annual renewals expenditure to $1.8m which will keep our network in the same renewals expenditure to condition as it is now (i.e. will not clear the backlog). $4.2m per year. 3. Increase our average annual renewals expenditure to $4.2m and clear the backlog over about 20 years.

Resilience and responding Stormwater can cause flooding to people’s property, particularly if development is allowed to occur in areas that Preferred Option to climate change are prone to flooding. As our climate changes, rainfall intensity and flooding patterns are likely to change and increase. To address this we could: Our preferred option is Planning for growth 1. Continue with our current reactive practices and information about flooding areas. Because this is a reactive Option 4 - a combination approach it is not possible to estimate the costs. of Options 2 and 3, i.e. development of 2. Move to a risk based approach where we develop catchment management plans and flood models that can be catchment management used to inform where development can or cannot occur and where we need to upgrade our existing networks. plans and stormwater Developing catchment management plans and network models for all urban catchments is expected to cost design guidelines. approximately $11.6m over the next 10 years. 3. Develop a set of stormwater design guides, expected to cost about $0.3m, that help private developers manage stormwater and encourage the use of more ‘soft’ infrastructure such as rain gardens. 4. Do both options 2 and 3 above.

Meeting the needs of our Waitara township has longstanding issues with flooding. NPDC has already committed $9m to start fixing these Preferred Option community and reducing issues, however, from the catchment management planning work done to date it is clear that this will not be our impact on the enough to address the issues. We could: Our preferred option is environment 1. Continue with the current budget of $9m. Option 3 – increase the budget to $20m over 2. Stop the Waitara stormwater project to save money, noting our community will still pay to repair property the next 10 years and damage from flooding. approximately $101m 3. Increase the budget to $20m over the next 10 years to reduce the risk of flooding and the cost our community over years 11 to 30. pays in property damage. Additional budget of approximately $101m will also be needed over years 11 to 30.

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Infrastructure Strategy

Flood Protection Flood protection and control works protect urban areas in New Plymouth District when the river systems become overloaded in heavy rainfall. The service includes monitoring and maintaining existing flood protection schemes and planning of future flood protection measures.

The assets within this activity include three diversion tunnels, three dams and a weir.

Key Flood Protection issues The key issue for flood protection is an increasing number of severe weather events as the impact of climate change continues to grow. This may require some raising of dam levels in the future to cope with increased levels of rainfall.

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Infrastructure Strategy

Options for decision Future planning for flood protection has been considered in relation to the key decision drivers and strategies outlined earlier and the following options developed.

The Drivers The Options

Taking care of what we Over time climate change is predicted to increase the intensity of rainfall and flooding. This will mean that our Preferred Option have flood protection dams will get pushed to their limit more frequently and our level of service will gradually erode unless we increase the height of the dams. This is a long-term issue that is likely to take several decades to occur Our preferred option is Resilience and responding so it isn’t urgent that the Council acts immediately. Council has two options: Option 2 - monitor over to climate change 1. Upgrade the dams now. Because limited investigations have been undertaken it is not possible to estimate the the long-term and plan likely costs. for upgrade in 20 or 30 years time. 2. Monitor the effects of climate change over the long-term on the level of service the dams provide and plan for their upgrade in about 20 or 30 years time.

Planning for growth The southern catchments of Inglewood are identified for residential urban development. However, some of this Preferred Option land is prone to flooding due to overland flow from the rural portions of the catchments. A concept has been Meeting the needs of our developed to construct an interceptor drain to divert this flow into the streams and bypass the town and land Our preferred option is community and reducing that is to be developed. Council has several options: Option 2 - plan for an our impact on the interceptor drain now environment 1. Do nothing and restrict urban development in the southern catchments. but don’t build it until 2. Continue to plan for the interceptor drain now but delay development and don’t build it within the 10 years of after the first decade this LTP. * and when full costings 3. Plan for and build the interceptor drain within the next 10 years in order to allow development to occur in are available. Inglewood.*

* Costs are not currently available for this option as it is in an early stage of development. Costs will be available before a decision to proceed is made.

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Infrastructure Strategy

Transportation The transport network currently includes 1,285 kilometres of sealed roads, includes rural roads and urban streets. There are 166 bridges, 97 culverts, 521 kilometres of footpaths and 365 retaining walls. These transport assets are contained in close to 220,218 hectares of road reserve across the district.

In general, the district’s transport assets are in good condition. Compared with other parts of New Zealand, our roads have relatively low traffic volumes so roading failure as a result of wear generally only occurs in high stress areas. This is typically where heavy vehicles turn at key intersections and along some key arterial and primary collector roads. Most road surface failure is the result of age related degradation.

Key Transportation issues 1. Natural topography and layout of infrastructure. The district’s natural topography and the layout of infrastructure makes it more challenging to move east to west, creating network pinch points particularly at river crossings. The coastline and river valleys provide walking and cycling connections to central locations. However, our topography, provides challenges for our walkers and cyclists. 2. The layout of our city and land use. The city centre is dissected by state highways, making walking and cycling to our coast and outer suburbs more challenging. Freight from Port Taranaki is trucked through the city centre and residential areas, impacting the quality of these areas. Employment and residential growth in the city are focused to the east of the city. The layout and nature of our towns and city and our roading infrastructure encourages motor vehicle use which is a significant contributor to district wide emissions. There are limited public transport and rail options. 3. The safety of the network .The number of serious and fatal crashes in the district has been increasing. Previously our focus has been on addressing specific crash types, however it is now recognised that due to the widespread nature and location of the crashes in the district, a ‘safe system’ approach to address our complex network is required. 4. The contribution of the transport network to the regional economy. The transport network contributes to our regional economy and provides a vital link for employment and for significant industry across Taranaki. Investment to maintain these links is essential to ensure that economic opportunities are not lost through deterioration of the network.

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Options for decision Options for dealing with the above issues have been developed in the context of our four decision making drivers and the strategies outlined earlier in this document.

The Drivers The Options

Taking care of what we There are no major issues for decision on resilience of the existing assets. have

Resilience and responding Transport networks are vital connections and one of the big risks to the resilience of our road network is Preferred Option to climate change severance caused by the loss of bridges that cross key rivers. This includes the Waiwhakaiho River. To address this we could: Our preferred option 1. Do nothing. is Option 2 - plan for a second bridge across 2. Plan for a second bridge across the river during the 10 years of the LTP and construct it during years 11 to 20 of the river during years the Infrastructure Strategy at a cost of $7.3m. one to 10 and construct 3. Plan for, and build, a second bridge during the 10 years of the LTP at a cost of $7.3m. it during years 11 to 20.

Note: The second bridge also addresses capacity issues caused by growth.

Planning for growth We know that parts of our transportation network are getting busier and starting to struggle with the volume Preferred Option of traffic. We have several options to address this issue and stop it getting worse as our population continues to grow: Our preferred option 1. Undertake a $2.3m programme of intersection upgrades (traffic signalisation and roundabouts) to tackle the is Option 5 - do all of known trouble spots. options 1 to 4. 2. Prepare a growth model of the district’s transportation network so that we can be more proactive when planning road upgrades ahead of problems emerging (cost $0.7m). 3. Work more closely with the Taranaki Regional Council to support and promote the greater use of public transport. 4. Build on our Let’s Go programmes and invest $7.5m in our cycling and walking networks so that our community has alternative travel options to using a car. 5. Do all of the above options. 6. Do a combination of options 1 to 4.

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The Drivers The Options

Meeting the needs of our For a number of years Taranaki’s road toll has been increasing with more and more serious and fatal accidents Preferred Option community and reducing occurring. To address this we could increase our investment and do any combination of the following: our impact on the Our preferred option is environment 1. Make safety improvements to a number of key intersections across the district estimated to cost about $6.3m. Option 3 - make safety 2. Undertake a speed limit review and lower speeds on many of our urban and rural roads. The cost of the review improvements and largely involves staff time that is already budgeted. The cost of implementing any speed limit changes is undertake a speed limit currently unknown as it depends on the outcome of the review. However, Council already has budgets for review. replacing speed limit signage. 3. Do both options 1 and 2.

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Parks and Open Spaces Parks and Open Spaces contribute to our Sustainable Lifestyle Capital vision by achieving our goal of well being through a safe, creative, active and connected community and by nurturing our environment under the sustainability goal. It also supports economic prosperity through the goal of providing places where people want to work, live, learn and play.

Our parks and open spaces promote sustainability of the environment and strengthening of partnerships, through managing and protecting our natural landscape, untouched native forest (remnant stands and regenerating), and coastal environments. They also provide opportunities for people to be active, whether it be along our walkways, within sports parks, playgrounds or other uses. Sport and recreation activities are an essential part of many people’s lives. Participation in recreation and sport contributes to a healthy community, provides ways for people to interact with each other and improves social cohesion.

New Plymouth District is unique for its diversity of recreation and open spaces including beaches, walkways, rivers and streams, recreational trails, neighbourhood parks, swimming pools, playgrounds, skateparks, sports parks, the mountain and cemeteries. The access that is available to these recreation and open spaces, to Taranaki Maunga and to the sea forms part of the district’s identity. These are important features that attract people to New Plymouth.

Most of these facilities are directly planned for and managed by NPDC and include 1,600 hectares of local, historic, coastal, esplanade and recreation reserves and 82 kilometres of walkways, along with the associated playgrounds, public toilets and public art. Pukekura Park and Brooklands Zoo are two of our major facilities that fall within this category of assets.

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Key Parks and Open Space issues Exis�ng & Under Construc�on Short-Medium Term (2021-2031) New Plymouth wants to maintain and build on its unique diversity of recreation • New Plymouth Coastal Walkway • NP Coastal Walkway Extension — and open spaces. Our key issues for the future will be: • Huatoki Waitara to Bell Block • Rotokare/Barre� Domain • Waiwhakaiho Corridor Planning/ 1. Ensuring that we continue the provision of parks and open spaces in • Herekawe Acquisi�on new growth areas. While developers contribute to the provision of parks • Mangaotuku • Kaitake Trail and walkways in the area of their development, we need to ensure that • Te Henui • Centennial Park to Ōākura Planning the provision is appropriately located, the public continues to have access • Waitara Heritage Trail • Safer Shared Pathway Commuter to significant waterways and there are safe connections to and from open • Lake Mangamahoe Routes space areas. • Trimble Park/Joe Gibbs Reserve 2. Taking care of our existing assets. Most of the parks and open spaces • Waiwhakaiho Walkway assets are in reasonable condition but there is some deterioration in some • Manga� park structures such as bridges, stock fencing and similar assets that will require renewal. Long-Term (2031-2051) 3. Parks and open spaces contribute to community resilience. Our parks play • White Cliffs Walkway an important role in community resilience in times of stress such as natural • Centennial Park to Ōākura disasters or pandemics. Parks and open spaces will be vulnerable with the Acquisi�on/Construc�on White Cliffs Walkway predicted effects of climate change, i.e. increases in severe weather events • Ngāmotu to Centennial Park and rising sea level. This may cause potential increases in plant pests and • Waiwhakaiho Corridor diseases and damage to coastal infrastructure. Construc�on Urenui Waitara 4. Extending our network of walking tracks. We have an extensive network of walking tracks and there is a desire to continue to improve these through extensions, additional connections and improved accessibility. A key area of New Plymouth Bell Block focus is our maunga to moana connections as shown on the map. 5. Meeting the changing needs of our community. As some of our facilities require renewal (e.g. Brooklands Zoo and Bellringer Pavilion) there is an Ōākura opportunity to reconsider the focus of the facility in the context of the changing needs of the community. Inglewood 6. The role of parks and open spaces in improving environmental outcomes. Appropriate planting programmes and pest management in our parks and open spaces can play an important role in helping to mitigate climate Ōkato change through the sequestering of carbon. Our parks also contribute to Pukeiti improving biodiversity. New Plymouth City is the most biodiverse city in New Zealand currently with 8.9 per cent of its urban area vegetated and is

well placed to meet evolving national targets of 10 per cent. Nth Egmont Visitors Centre

Maunga to Moana connections

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Options for decision Options for dealing with these issues have been developed in the context of our four decision making drivers and the strategies outlined earlier in this document.

The Drivers The Options

Taking care of what we We have an extensive parks network with varied levels of investment over time. This is particularly the case for Preferred Option have some of our assets, namely our bridges, structures and stock fencing. To address this we could: 1. Continue to spend the same as the 2020/21 financial year ($1.3m) and accept the risk that some of the district’s Our preferred option older park bridges and structures will deteriorate and need to be closed. is Option 2 - increase 2. Increase our average annual renewals expenditure to $3.9m so that we can properly maintain our parks assets our average renewals and ensure public access to the community. expenditure to $3.9m.

The main lake in Pukekura Park was partially desilted in 2020 with approximately 9,000 cubic metres of silt and Preferred Option organic matter removed. Whilst this successfully improved the water quality there is still another 9,000 cubic metres of silt left in the lake and, over time, more silt will be washed down the streams that feed into the lake and Our preferred option add to this. The Council has a number of options available: is Option 4 - do both 1. Spend about $2.5m to desilt the remainder of the lake. options 2 and 3. 2. Set up a reserve that the Council pays into each year so that there is a fund to undertake lake desilting every five years in order to keep the lake in good condition in the long-term. 3. Spend about $0.5m to improve the silt traps that will slow down the rate at which silt enters the lake as well as making other improvements to the lake’s water quality such as constructing ecological habitats for the native species that live in the lake. 4. Do a combination of the above options.

Resilience and responding There are no major issues for decision on resilience of the existing assets. to climate change

Planning for growth Council will continue to provide new parks and open spaces in development areas, working with developers. No specific options for decision.

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The Drivers The Options

Meeting the needs of our Tracks and Trails Preferred Option community and reducing Council has a long-term aspiration of creating walking and cycling connections between the Maunga and Moana our impact on the (refer to map on page 52). This will allow accessibility to key natural and cultural assets, linking to and leveraging Our preferred option environment existing attractions, open spaces and walking and cycling networks. The options are: is Option 2 - prioritise implementation of 1. Increase focus on tracks and trails and continue with the full range of projects. the tracks and trails 2. Prioritise projects that contribute to or complete the proposed maunga to moana (Taranaki Traverse) and projects that contribute provide links between townships in close proximity to New Plymouth such as Waitara and Ōākura and delay to a staged maunga to other projects to beyond year 10: moana programme. a) Years 1 to 10 - develop the Coastal Walkway extension to Waitara and Kaitake Trail and initiate planning for the Waiwhakaiho River link and allow for strategic land purchase ($36m). b) Years 11 to 30 - develop remaining planned areas and commence development of the Waiwhakaiho River link and plan for the White Cliffs and Fort St George walkways ($30.1m). 3. Maintain existing range of tracks and trails but do not implement further extensions and connections. 4. Maintain existing range of tracks and trails in the first 10 years and then roll out full range of projects in years 11 to 30.

Planting our Parks Preferred Option Parks and open spaces can play an important part in sequestering carbon. Planting will also contribute to biodiversity outcomes as Council strives to have 10 per cent of its urban area planted with native vegetation. The Our preferred option ‘planting our parks’ programme has the following options: is Option 2 - Planting our Parks programme 1. Maintain existing urban vegetation cover but do not extend further (status quo). $0.17m per year for 20 2. Fund 34 hectares of Planting our Parks over 20 years at an operational cost of $0.17m per year from forestry years. reserve funding. 3. Roll out the programme over a shorter timeframe, i.e. 10 years at an operational cost of $0.34m per year from forestry reserve funding.

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The Drivers The Options

Meeting the needs of our Facility improvements Preferred Option community and reducing Brooklands Zoo attracts over 113,000 visitors every year and has consistently high levels of community our impact on the satisfaction. However, some of the enclosures and facilities are ageing and will need to be replaced. There is Our preferred option is environment an opportunity to provide an enhanced visitor experience, create space for a gift shop, improve back of house Option 3 - undertake operational facilities, improve animal welfare standards and offer education on Taonga species and wildlife a strategic review of rehabilitation. We could: the Zoo’s operation to inform further 1. Continue with the current arrangements for the Zoo undertaking like for like renewals of the facilities and development. enclosures at a cost of $1.1m. 2. Undertake a strategic review of the Zoo’s operations to inform future investment of renewals at a cost $1.2m (includes $50,000 for review) with any new development delayed beyond the first decade. 3. Undertake a strategic review of the Zoo’s operations to inform any further development and then implement the new development (high level estimate up to $6.5m). We will fund $3.5m and will also look to secure additional external funding of around $3m to complement and enhance any strategic upgrades to Brooklands Zoo.

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Waste Management and Minimisation This service includes recycling, food scraps and landfill collection from more than 29,500 residential and school premises each year. It also includes transfer stations, the Resource Recovery Facility (which includes the Junction zero waste hub), closed landfills and behaviour change programmes to encourage waste minimisation in the district.

Council has an aspirational vision to achieve zero waste by 2040. The Waste Management and Minimisation Plan adopted in 2017 supports this goal. Many of the projects included below are focused on ensuring we continue to make progress towards the vision.

Key Waste Management and Minimisation issues The key issues that need to be addressed for waste management and minimisation over the next 30 years are:

1. Continuing to drive waste reduction and recycling activities. We have committed to continuing to drive down the amount of waste to landfill and achieving this avoids having to find new landfill options as the district grows. There will be a particular focus on business and commercial activities and improving community engagement and participation in waste reduction initiatives. 2. Managing historic landfills. Events in other parts of New Zealand (e.g. the west coast of the South Island) have shown the consequences for the environment when historic landfills are impacted by storm events and erosion. We have a number of these historic dump sites and priority sites (particularly those on the coast and close to riverbanks) are being assessed for risk and to have mitigation strategies developed. 3. Responding to national legislative changes. Under the Waste Minimisation Act 2008 there will be increases and expansion of the landfill waste levy, and establishment of mandatory product stewardship on priority products such as electronic waste and tyres. 4. Considering longer term options for alternatives to landfilling, particularly as we progress our zero waste initiatives and need to find waste minimisation solutions for more difficult waste streams that produce high emissions.

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Options for decision Options for dealing with these issues have been developed in the context of our four decision making drivers and the strategies outlined earlier in this document.

The Drivers The Options

Taking care of what we There are a number of historic community dump sites in the district. Fourteen of these have been identified as Preferred Option have being at risk of either coastal or river erosion. The historic dump site at Battiscombe Terrace in Waitara has already been exposed due to storm surges and coastal erosion. So some protection work will definitely be necessary at Our preferred option Resilience and responding least at this site. is Option 2 - continue to climate change to assess the risk and Work has already commenced to assess the risk and assess options for protection of individual sites if it is deemed needs of individual sites necessary. Until this work is complete it is not possible to accurately budget for any necessary protection works. and provide budget 1. Continue to assess the risk and needs of the sites and then seek additional funding once the scope of the of $0.8m for some protection works are known. protection works. 2. Continue to assess the risk and needs of the individual sites and budget $0.8m for some protection works, accepting the risk that this may not be sufficient to cover the cost of all of the required work and further funding may be needed.

Planning for growth Council will continue to implement its Waste Management and Minimisation Plan to offset the district’s growth through reduced demand for disposal to landfill.

Meeting the needs of our Council’s Waste Management and Minimisation Plan sets a goal of zero waste to landfill by 2040. In order Preferred Option community and reducing to achieve this, additional reuse and recycling services will be required on top of the zero waste education our impact on the programmes and other services Council currently offers. The following options will contribute towards this goal: Our preferred option is environment 1. Construct a commercial and industrial materials recovery facility, at a cost of approximately $1.7m to improve Option 3 - implement access to recycling services for commercial/industrial businesses in the district. both options 1 and 2. 2. Build on the early success of stage 1 of the master plan for the Junction (formerly the community reuse and recycling centre) by building a permanent building and expanding the education services offered there for a cost of about $3.8m over 10 years. 3. Do both options 1 and 2.

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Puke Ariki and Community Libraries Puke Ariki’s central library, five community libraries, mobile library, museum and visitor information centre connect Taranaki residents and out of region visitors to a wealth of knowledge, exhibitions, experiences and resources. We protect and promote access to the heritage of the district and our country. We provide an accessible mix of print and digital lending and reference resources to meet the changing needs of our community.

Key Puke Ariki and Community Libraries issues Council’s strong network of libraries is serviced by the central hub at Puke Ariki, community libraries and associated community facilities at Bell Block, Waitara, Ōākura, Inglewood and Urenui. We also make the service more accessible to the community through our mobile library. Looking to the future of the service, there are a number of relevant issues:

1. Providing for our growing population. Our growing population will place pressure on our community libraries and facilities. For example, Bell Block will be a focus for growth over the next 10 years and a redevelopment will be required to service this community when it reaches it development potential. 2. Libraries connect communities. Libraries are people centred places that can provide more than just library needs. They are important anchors in our town centres and can provide many services to the community. 3. Responding to technology and societal changes. Technology is advancing at a rapid rate. Libraries can merge physical and digital excellence, technology and learning and foster innovation and social enterprise.

The Puke Ariki and Community Libraries Strategy prepared in 2019 as an internal document, identified the role of libraries in building vibrant and connected communities. The goals in this strategy identify the key purpose of our libraries. The Puke Ariki and Community Libraries Strategy has identified the need for Council to consider:

1. Redeveloping Puke Ariki to better utilise the available space. 2. Providing new or expanded library facilities in the communities of Bell Block, Waitara, Ōākura and Inglewood, including considering wider customer service activities.

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Options for decision The key focus areas for Puke Ariki and Community Libraries relate to the strategies for the drivers of planning for growth and meeting the needs of our community and reducing our impact on the environment.

The Drivers The Options

Taking care of what we There are no major issues for decision on renewals of the existing assets. have

Resilience and responding There are no major issues for decision on resilience of the existing assets. to climate change

Planning for growth New Plymouth is growing and there will be increased demand for library services. The needs of the community Preferred Option are also changing with technology and societal needs. The options for how we manage our libraries are: Meeting the needs of our Our preferred option is community and reducing 1. Maintain the current network of libraries and undertake a like with like replacement programme. Option 2, with Option our impact on the 2. Continue to deliver library services using our existing facilities in the next 10 years and plan for a long-term 3 for the Waitara environment redevelopment investment programme for our libraries as follows: library redevelopment a) Redevelop the Bell Block Library in years 11 to 15 to ensure it provides a fit for purpose facility for this included in years 5 and larger community ($9m). 6 - continue to deliver library services using b) Redevelop the Waitara Library in years 11 to 15 to provide for additional growth and a community hub our existing facilities ($8m). in the next 10 years c) Redevelop the Ōākura Library ($2.6m), the Inglewood Library ($0.6m) and Puke Ariki ($10m) in years 16 and plan for a long- to 20. term redevelopment investment programme. 3. Accelerate a redevelopment investment programme for our libraries to maximise their potential as community spaces with the following priorities: $8m in years 5 and 6, $9m in years 11 to 15 a) Redevelop the Bell Block Library in year 4 to ensure it can provide for the growing community ($9m). and $13.2m in years 16 b) Redevelop the Waitara Library in years 5 and 6 to provide for growth and add value to the local community to 20. ($8m). c) Redevelop the Ōākura ($2.6m), Inglewood ($0.6m) and Puke Ariki ($10m) libraries in years 11 to 15.

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Multi-sport hub Sport Taranaki have led the development of a Master Plan for a multi-sport hub on Venues and Events the New Plymouth Racecourse site. The Master Plan will provide for the community Venues and events includes a number of assets which support a wide range of sporting needs of the district and look to increase the range of community community activities, i.e. recreation activities and participation. The multi-sport hub is phased for delivery • TSB Stadium. relative to the highest sports needs starting with a hockey turf, to be followed by a hub building with six new courts and movement areas and then outdoor courts, • TSB Showplace. fields and specialist turf areas. • TSB Bowl of Brooklands. • Todd Energy Aquatic Centre. The multi-sport hub has been planned alongside the continued use of the • Four community pools. racecourse and is phased over the first eight years of the LTP. As this is a community driven project the Council has committed one third funding to the build of the We also operate the Yarrow Stadium which is owned by the Taranaki Regional project. Council. Todd Energy Aquatic Centre These assets and the community activities that they support are significant contributors to the Council’s goals of: The future of the Todd Energy Aquatic Centre needs to be planned for in the long- term. A concept plan was developed in 2017 for the existing site to redevelop a fit 1. Community - achieving well-being through a safe, creative, active and connected for purpose facility. This would better meet the needs for lane swimming and learn community while embracing Te Ao Māori; and to swim facilities as well as casual swimming, all of which currently compete for 2. Prosperity - growing a resilient, equitable and sustainable economy where space. people want to work, live, learn and play and invest across our district. The extent and nature of any redevelopment needs to sit in the context of the Key Venues and Events issues district’s and wider region’s aquatic network. The outdoor pool has an estimated life of 10 years and a renewals programme is in place to ensure the facility continues to The key issues for Venues and Events assets are: deliver for the community. 1. Capacity and fit for purpose. As the district’s population grows and changes, ensuring that the assets continue to meet the needs of the community. 2. Remaining life of the assets. Some of these facilities are coming to the end of their lives and decision needs to be made on renewing or replacing them. 3. Sporting facilities. There is a shortfall of fit for purpose sporting facilities particularly around indoor court space, movement facilities and specialist turf facilities and aquatic space. This will have wide impacts on community well- being.

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Options for decision In the context of these key issues and major proposals, the options for decision relate to planning for growth and meeting the needs of our community and reducing our impact on the environment decision drivers.

The Drivers The Options

Taking care of what we There are no major issues for decision on renewals of the existing assets. have Resilience and responding There are no major issues for decision on resilience of the existing assets. to climate change Planning for growth Multi-sport hub master plan Preferred Option The current TSB Stadium is at capacity and over allocated with events use often competing with community Meeting the needs of our sports. Our preferred option is community and reducing Option 3 - provide one our impact on the A proposed master plan for a multi-sport hub will provide increased capacity for future growth and the changing third funding for a multi- environment needs of the community. The options for a multi-sport hub are: sport facility with a hub building in year 4 at a cost 1. Maintain the current TSB Stadium facility and review sporting needs and requirements in 10 years. of $38.5m in years 1 to 10. 2. Develop the multi-sport hub at the New Plymouth Racecourse using a phased approach that delivers: • A hockey turf in year 3. • A hub building in year 6. • Courts, fields and an artificial turf in year 8. • Cost of $39.6m over years 1 to 10. 3. As for option 2 but deliver a hub building earlier in year 4 (cost of $38.5m). This cost reduction from option 2 reflects the difference in inflation. Aquatic Centre Master Plan Preferred Option There is a network of aquatic facilities across the district where there is demand for improved levels of service. Our preferred option The Todd Energy Aquatic Centre is not meeting community demand for lane swimming, casual swimming or is Option 1 - maintain learn to swim as there is competition for space. the current Todd Energy Aquatic Centre and review The options for aquatic facilities are: needs during the next 10 years. 1. Maintain the current Todd Energy Aquatic Centre and review aquatic needs during the next 10 years and reconsider the proposed $36.1m Todd Energy Aquatic Centre redevelopment that sits in years 11 to 15. 2. Redevelop the Todd Energy Aquatic Centre in the first 10 years ($36.1m 2019).

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Our Plan TotalTotal capital Capex expenditure 160 150 Based on the preferred options outlined in the above 140 section we have forecast our capital and operating 120 expenditure over the 30 years of the Infrastructure 125 Strategy and this is set out in the graphs. 100 10080 Capital expenditure is further analysed by type: 60 • Renewal – replacing or extending the life of our 75 40 existing assets. 20 50 • Increased level of service – improving the level of $ Millions service that we provide to the community. 0 Millions 25 • Growth – providing additional capacity for a 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 growing community. Water Supply Wastewater Treatment Stormwater Management 0 Flood Protection Transportation Parks and Open Spaces Puke Ariki and Community Libraries Venues and Events Other 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51

Total operating expenditure 450 150 400 100 Other 50 0 350 Waste Management and Minimisation 2021/22 300 Venues and Events 250 Puke Ariki and Community Libraries 200 Parks and Open Spaces 150 Transportation 100 $ Millions Flood Protection 50 Stormwater Management 0 Wastewater Treatment

Water Supply 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51

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Water Supply Wastewater Treatment 30 80 25 70 60 20 50 15 40 30 10 20 $ Millions $ Millions 5 10 0 0 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51

Stormwater Management Flood Protection 18 4 16 14 3 12 10 8 2 6 1

$ Millions 4 $ Millions 2 0 0 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51

Transportation Parks and Open Spaces 50 16 14 40 12 10 30 8 20 6 4 $ Millions $ Millions 10 2 0 0 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51

Renewal Level of service Growth

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5 Waste Management and Minimisation 14 Puke Ariki and Community Libraries 12 4 10 3 8

2 6 4

1 $ Millions $ Millions 2 0 0 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51

16 Venues and Events 14 12 10 8 6 4 $ Millions 2 0 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51

Renewal Level of service Growth

05 202…

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Assumptions This Infrastructure Strategy is based on the following assumptions about the life cycle of significant infrastructure assets. Assumption - Life cycle of assets Uncertainty/Risk The Three Waters – water supply, wastewater and stormwater • Water and wastewater treatment plants. These assets (excepting some mechanical equipment and pumping There is a high degree of certainty on all of these stations – see below) have a long life cycle (80 years) and all of the current assets are within the first half of this assets, except wastewater pump stations which are life cycle. It is therefore, not expected that any replacement will be required within the 30 year timeframe of this considered medium-high certainty. strategy. • Mechanical equipment. These assets are subject to more wear and tear and therefore have a shorter design life. The associated risk is an increased cost of reactive Renewal programmes will be based on more sophisticated assessment of condition and run times of equipment maintenance from unanticipated failure of the assets, rather than just age. as well as not meeting the community expectations of levels of service. • Wastewater pump stations. The design life cycle of these pumps will extend through the 30 year timeframe, however, with new expectations of performance it is likely that many of the existing pump stations will no longer be fit for purpose and require upgrade before the end of their lives. • Reticulation networks. Due to several years of underinvestment in renewals, the average age (from a condition perspective) of the network is getting older and the condition deteriorating. Increased investment is proposed to address this. Flood protection These assets are earthworks based and have a long life cycle. Business as usual renewals is all that is required to There is high level of certainty on the life of these maintain the effectiveness of the assets over the 30 year period. assets and no significant risk identified. Transportation • Bridges. Most of the road bridges in the network were built around the same time. As a consequence about 40 There is a high level of certainty on the overall bridges will come to the end of their design life in the next 10 years and about half of our bridge stock will have roading network, but moderate on the condition of reached the end of their design lives within 20 years. There is an opportunity to implement a programme of large the bridges. The risk associated with bridge renewals component replacement to extend the life of some of these bridges rather than demolish and rebuild, but this is is that more fundiing than currently forecast may be not viable for all bridges. required. • Roading network. Local roads are largely in good condition and the renewal programme will be reduced to a more appropriate level, releasing capacity to increase renewals of arterial roads. Note: The rural road renewal programme is based on the current forestry harvest programme. Any change • Rural roads. Short-term, high use activity on specific rural roads (e.g. logging of a particular area for a short in that programme will require changes to the renewal period) will be monitored and renewals carried out at the conclusion of such activity. expenditure profile. Waste Management and Minimisation The Bonny Glen landfill has a 30 year agreement in place to take the landfill waste of the district. Land has been The level of certainty is high and the risk would be secured for a further landfill should this be required. needing to find an alternate approach earlier. Other asset groups There are no significant issues related to other assets for life cycle planning. Routine renewals or upgrades for growth and level of service changes will be considered as necessary.

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Infrastructure Strategy

Demand for services is driven by a range of factors. The assumptions for these factors are covered below.

Assumption - Demand for services Uncertainty/Risk Population change Over the 30 year period of the strategy, population is expected to grow by 21 per cent. The rate of growth is There is a low level of uncertainty for ethnicity and expected to be slightly higher in the first 10 years and decline slightly in the remaining years. The population will age changes, but overall population growth has a continue to age with 27 per cent aged over 65 by the end of the period versus 20 per cent currently. Overall, the medium level of uncertainty as it is driven by net population is expected to continue to predominately be European and Māori, however there will be a small drop in migration as well as natural population growth the proportion of Europeans and similar increase in the Asian community. (births and deaths).

The key risk is with provision of infrastructure for residential development. Economic activity A conservative growth track going into 2022 has been assumed, with growth holding just below the one per cent There is a medium-high level of uncertainty due to per quarter level. The growth is expected to continue into 2023/24 before dropping back to pre Covid-19 pandemic the impact of national and global economies and levels of around 1.9 per cent to 2.7 per cent per annum. International tourism is expected to recover to pre Covid-19 politics. Closure of the borders by the Covid-19 forecast levels by 2027/28 and domestic tourism to be stronger in the first two years before returning to normal pandemic puts international tourism in the high growth patterns. uncertainty category. The predominant risks are: a) Improved infrastructure provision for increased activity (e.g. roading) – this can be managed through monitoring changes in activity. b) New infrastructure for development areas. Rate and location of residential and commercial development Residential development is driven by both population growth and change in household size. A decline in average There is a medium level of uncertainty with the household size in New Plymouth is expected, driven by an ageing population, growing life expectancy and societal speed of growth as reflected in the population trends. The average household size in New Plymouth is projected to decline from an estimated 2.4 individuals per growth and economic activity assumptions. household in 2021 to 2.3 individuals in 2051. Commercial development will be driven by the level of economic Infrastructure provision for new growth areas will activity. The District Plan identifies areas of new growth for both residential and commercial development and has only happen in sequence with growth. new growth areas as well as some inward growth to deal with the expected growth over the period of the strategy.

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Infrastructure Strategy

This strategy is assumed to deliver existing or improving levels of service across our infrastructure assets. Reductions in levels of service are not planned for. The key focus of investment varies in each asset category depending on the current condition and challenges faced.

Assumption - Levels of service Uncertainty/Risk Water supply Investment focused on renewals and resilience will ensure water quality and consistency of supply service levels can There is a medium level of uncertainty for the levels be maintained. Capacity for growth will primarily be created through demand management. of service assumptions. They rely on the levels of expenditure being maintained over the long-term Wastewater and this is subject to review every three years. Investment focused on renewals and resilience will ensure continuity of service levels can be maintained. The impact of wastewater on the environment will be improved through investment in projects to reduce wastewater overflows. Stormwater and flood protection Investment in stormwater is focused on improving levels of service through renewals and resilience projects and addressing those areas most vulnerable to flooding. Transportation Service levels for transportation will be improved in the areas of safety (particularly at intersections), resilience (though the second crossing of the Waiwhakaiho River) and demand management (through increased provision of walking and cycling infrastructure). Other service levels will be maintained at existing levels. Other infrastructure assets All other asset categories are expected to maintain or improve service levels. Improvements are planned through projects such as: • Upgrading the Brooklands Zoo. • Increasing biodiversity and plantings in parks. • Continuing to strive toward the zero waste target. • Implementing the Puke Ariki and Community Libraries Strategy. • Upgrading of the Todd Energy Aquatic Centre. • Support of a multi-sport hub.

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Infrastructure Strategy

Scientific evidence is clear that the climate is changing and New Plymouth District will, over time, experience more impacts from climate change, climate hazards and climate extremes. The assumptions that have underpinned the development of this Infrastructure Strategy are covered below.

Assumption - Climate Change Uncertainty/Risk Ministry for the Environment forecasts • By 2040 the average temperature is forecast to be 0.7C to 1.1C warmer than 1995. By 2090 the average temperature is forecast to be 0.7C to 3.1C warmer than 1995, with five to 41 extra days per year where the maximum temperature exceeds 25C. • Winter rainfall is expected to increase by five to nine per cent by 2090. • The number of extreme wind and storm events is not expected to vary significantly, but there may be changes in their direction and intensity by 2090. • Sea-level rise by 2100 is expected to be between 0.3 to 1.0 metres above the 1995 level. Up to 2060, there is less uncertainty, and a narrower range of sea-level rise of 0.2 to 0.4 metres is expected. Impacts for New Plymouth District • Coastal hazards. Within the next 10 years there could be increased risk to coastal properties, roads and There is significant uncertainty in the short-term and infrastructure from coastal erosion and storm inundation. While the entire coast is at risk from coastal erosion, the long-term implications of climate change. However, risks from coastal inundation are localised to areas of developed low-lying coastal land around river mouths, such it is unlikely that any of the investment undertaken as Waitara, Puke Ariki landing and Ōākura. will be an over-investment in the long-term. There is risk that climate hazards occur earlier than current • Flooding. With increasing rainfall intensity it is likely that increased flooding will occur in some areas. forecasts meaning, for instance, that stormwater • Drought. With increasing water demand and the increasing likelihood of extended dry periods during summer asset capacity has not been increased early enough. months, the district is at risk of not meeting water supply levels of service at certain times of year. This will result in infrastructure failure (whether temporary or permanent), requiring additional resource and financing.

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Council Services

Community Partnerships ...... 72 Customer and Regulatory Solutions...... 76 Economic Development...... 81 Emergency Management and Business Continuance...... 85 Flood Protection and Control Works...... 90 Governance...... 94 Govett-Brewster Art Gallery/Len Lye Centre...... 98 Management of Investments and Funding...... 103 Parks and Open Spaces...... 107 Puke Ariki and Community Libraries...... 113 Stormwater Management...... 117 Transportation...... 122 Venues and Events...... 128 Waste Management and Minimisation...... 133 Wastewater Treatment...... 138 Water Supply ...... 143

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How to read this section

This section is an overview of the activities and budget Our commitment to you: A description of the key for NPDC’s 16 groups of services. It also lists the projects levels of service we will deliver. For each level of service, NPDC will undertake as part of the Long-Term Plan we also provide the performance measures and targets (LTP) 2021-2031. For each service, we’ve outlined the that we aim for. following information: Our performance measurement framework is a mix of What we do: A summary of what the service delivers to in-house surveys, and an external survey conducted by our community. an independent research company. We also measure against national and industry standards, contract Why we do it: The reasons we provide the service in performance indicators and statistics. In addition to relation to our community outcomes and well-beings. our future performance targets (the first three years in Also, the various legislative requirements that each detail and an outline for the following seven years), we activity must meet, where applicable. also give the actual achievement for 2019/20, where available, for comparison. How we pay for it: The particular rating and funding methods we will use to pay for the service. We monitor the measurement framework regularly during the year and report the results in our Annual Looking ahead: Describes the changes and challenges Report at the end of each financial year. considered that may impact on the delivery of the service over the life of this plan. Funding Impact Statement: This is an overview of the expected costs and funding of each service. The first The changes we have made: Any changes to the level year of each financial plan includes the current 2020/21 of service we provide in the LTP 2021-2031. year. Further budget figures are for the forecasted financial plan. Significant effects on community well-being: A summary of any negative effects the service may have Projects: This is a summary of the more significant on any aspect of economic, environmental, cultural capital projects that we will undertake over the life of or social well-being in our community. Also, how we this plan. intend to mitigate or minimise these effects.

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How our services contribute to our goals

The table below shows the contribution each Council service makes toward the goals of NPDC’s strategic framework (our community outcomes). A medium rating indicates that the activity contributes to the outcome. A high rating indicates the activity makes a strong contribution to the outcome.

Partnerships Delivery Community Sustainability Prosperity

Community Partnerships High Medium High Medium Medium

Customer and Regulatory Solutions Medium Medium High Medium High

Economic Development High Medium Medium Medium High

Emergency Management and Business Continuance High High High Medium Medium

Flood Protection and Control Works Medium Medium Medium Medium

Governance High High High

Govett-Brewster Art Gallery/Len Lye Centre Medium Medium High Medium

Management of Investments and Funding Medium High Medium Medium Medium

Parks and Open Spaces Medium Medium High High Medium

Puke Ariki and Community Libraries Medium Medium High Medium

Stormwater Management Medium High Medium Medium

Transportation Medium Medium Medium Medium High

Venues and Events Medium Medium High Medium

Waste Management and Minimisation Medium Medium Medium High Medium

Wastewater Treatment Medium Medium High Medium

Water Supply Medium High Medium High

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Community Partnerships

What we do Why we do it Looking ahead NPDC’s strategic vision for a Sustainable Lifestyle Covid-19 will continue to be a challenge as the We offer advice, support and partnerships Capital is supported by five goals – partnerships, community looks toward economic recovery over the to encourage a strong and connected delivery, community, sustainability and prosperity. These next few years. community. We also provide a Central City goals (our community outcomes) promote the social, Facilitator and a Housing for the Elderly economic, environmental and cultural well-being of the The region’s growing population is also likely to increase service. New Plymouth District both now and for the future. demand for community services and initiatives in the district. An increasingly ageing population and a higher The Community Partnerships team supports Community Partnerships actively contributes to each proportion of Māori youth in the district may increase community organisations, educational institutions, of the five goals by supporting community and other demand for social and community services in these iwi, business and central government agencies to organisations to make a significant contribution to the sectors. We will respond to these demographic changes plan for and respond to the changing needs of our social, economic, environmental and cultural well-being by continuing our work with youth provider Zeal to community. We are a conduit between the Council of the district. engage the voice of young people. We will also continue and the community, keeping aware of the evolving to fund capacity building services and service contracts needs of the community, and communicating Our service is about building and supporting a strong that reflect NPDC’s decisions and commitments. This those needs to councillors and staff. and connected community. This means a community includes the YMCA, Surf Lifesaving New Zealand, and with a strong sense of identity that is sustainable and North Taranaki Sport and Recreation. Our team also manages and distributes NPDC’s self-reliant; a community that uses the strengths and community grants funding scheme. This includes abilities of its people to overcome challenges. A strong To ensure an effective response to the needs of annual contestable funding for projects and community has the resources it needs to prosper. our communities, we will continue to encourage initiatives that meet set criteria, and multi-year collaboration between the different groups and partnerships with aligned organisations and Our support of community initiatives promotes a agencies involved in community initiatives throughout safe, creative, active and connected community, while groups. We also manage relationships with our the district. We will also continue ongoing relationships embracing Te Ao Māori. Our Housing for the Elderly with other council groups, government agencies, funding partners, such as New Plymouth Partners, scheme contributes to the social and economic well- and community and stakeholder groups to support Toi Foundation and Taranaki Electricity Trust. being of our elderly communities. Our support of a community minded initiatives and decision making. The Central City Facilitator is charged with vibrant Central Business District is crucial to business This includes ongoing advice and support for groups championing a vibrant central city. This role is success, employment and culture, promoting social, and individuals whose work aligns with NPDC’s strategic economic and cultural well-being in the district. about encouraging people into the city centre to vision for the district. As part of community grants help revitalise the area and support local business. funding, we will also continue to allocate a start-up fund How we pay for it to support new, creative and collaborative community Our Housing for the Elderly scheme provides initiatives. affordable housing for eligible elderly people in Community Partnerships is funded through general the district. We also visit our tenants regularly to rates, with the exception of the Housing for the Elderly The district’s ageing population means we can expect support and monitor their well-being. scheme, which is self-funded. All maintenance, upkeep further increased demand for our Housing for the and other services related to this scheme are funded Elderly service. While we do not propose changes to from rental income. this scheme, we will continue to work on improving and growing the service within the current model.

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Community Partnerships

The changes we have made Increased community funding related to the Covid-19 ‘Get Back On Our Feet programme’ will continue in Changes to levels of service over the life of this plan years one and two of the plan, but at reduced levels. include new funding for age friendly initiatives, Creative Community funding allocations will return to pre Taranaki and the New Plymouth Partners Programme. Covid-19 levels in 2023/24. Other changes include a commitment to funding Surf Lifesaving New Zealand patrols in the district for the life of this plan, rather than through the current multi- Significant effects on community year, contestable funding arrangement. This includes well-being extending the funded patrol period by one month. The Community Partnerships service actively supports the social, economic, environmental and cultural We have also committed to directly fund youth services well-being of our community. There are no significant provider, Zeal Taranaki, in years one to three of the plan. negative effects of this service. This is in addition to our current multi-year funding. This will provide Zeal with more certainty, enabling them to retain and grow their presence in the New Plymouth CBD.

Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Build strategic relationships that The percentage of partners satisfied with NPDC’s 86% 95% 95% 95% 95% support collaboration, capability and advice and involvement in community initiatives. capacity in the community sector. The percentage of residents satisfied with 95% 90% 90% 90% 90% NPDC’s advice and support to community groups (satisfaction survey*). Provide a ‘start-up’ fund to support The number of initiatives receiving ‘start-up’ 3 3 3 3 3 creativity and collaboration in new financial support. community initiatives. Provide effective funding support The percentage of key performance indicators 98% 95% 95% 95% 95% for community organisations and achieved by recipients of NPDC’s grants (as set initiatives. out in funding contracts). Effectively coordinate and administer The percentage of tenants satisfied with the 96% 90% 90% 90% 90% the Housing for the Elderly service. service.

* All satisfaction survey targets are excluding ‘don’t know’ responses.

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Community Partnerships

Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 3.71 4.87 5.36 5.43 5.46 5.66 5.79 5.93 6.11 6.28 6.42 Targeted rates ------Subsidies and grants for operating purposes 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 Fees and charges 1.12 1.16 1.24 1.31 1.29 1.37 1.44 1.55 1.98 1.98 1.98 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts - 0.05 0.15 0.25 0.35 0.47 0.58 0.71 0.83 0.95 1.07 Total operating funding (A) 4.88 6.14 6.81 7.05 7.17 7.55 7.87 8.24 8.98 9.27 9.53

Applications of operating funding Payments to staff and suppliers (3.68) (4.46) (4.96) (5.17) (5.31) (5.54) (5.84) (6.16) (6.43) (6.72) (7.01) Finance costs (0.01) ------Internal charges and overheads applied (0.74) (1.27) (1.35) (1.37) (1.37) (1.47) (1.49) (1.51) (1.58) (1.62) (1.62) Other operating funding applications ------Total applications of operating funding (B) (4.43) (5.73) (6.31) (6.54) (6.68) (7.01) (7.33) (7.67) (8.01) (8.34) (8.62) Surplus/(deficit) of operating funding (A - B) 0.45 0.41 0.50 0.51 0.48 0.54 0.54 0.57 0.97 0.94 0.90

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase/(decrease) in debt (0.03) 0.13 1.47 (0.03) (0.02) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) (0.03) 0.13 1.47 (0.03) (0.02) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)

Applications of capital funding Capital expenditure: - to meet additional demand ------to improve the level of service - (0.15) (1.49) ------to replace existing assets (0.11) (0.13) (0.11) (0.10) (0.15) (0.12) (0.13) (0.14) (0.14) (0.14) (0.14) (Increase)/decrease in reserves (0.32) (0.26) (0.37) (0.38) (0.31) (0.39) (0.38) (0.41) (0.81) (0.77) (0.73) (Increase)/decrease of investments ------Total applications of capital funding (D) (0.43) (0.54) (1.97) (0.49) (0.46) (0.51) (0.51) (0.55) (0.94) (0.91) (0.88) Surplus/(deficit) of capital funding (C-D) (0.45) (0.41) (0.50) (0.51) (0.48) (0.54) (0.54) (0.57) (0.97) (0.94) (0.90)

Funding balance (A-B) + (C-D) ------

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Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 0.21 0.21 0.24 0.24 0.24 0.27 0.27 0.27 0.29 0.29 0.29 less deferred/unfunded (0.03) (0.06) (0.10) (0.09) (0.06) (0.11) (0.11) (0.10) (0.12) (0.12) (0.12) Net funding transferred to renewals reserves 0.18 0.15 0.15 0.16 0.18 0.16 0.16 0.16 0.16 0.16 0.16

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Customer and Regulatory Solutions

Why we do it Act 2004. It has four main drivers which align with What we do NPDC’s strategic vision. NPDC’s strategic vision for a Sustainable Lifestyle Our service develops, implements and enforces Capital is supported by five goals – partnerships, Our district planning, regulatory monitoring and national and local rules that protect the delivery, community, sustainability and prosperity. These enforcement activities also support sustainable natural and built environment, and public and goals (our community outcomes) promote the social, management of the district’s economic and environmental health. economic, environmental and cultural well-being of the environmental resources. New Plymouth District both now and for the future. The As the first point of contact for the public, the Customer and Regulatory Solutions service contributes Customer Services team assists people by to all of these well-beings. How we pay for it telephone, email, or in person at the Civic Centre. This service is funded through general rates, fees and We manage the collation and production of Our Customer Services team supports out charges, and enforcement revenue. Land Information Memoranda reports and make community by ensuring our customers have access public bookings for three community halls. We to the information and services they need. Enforcing environmental health legislation means businesses Looking ahead also provide case management for cross-council selling food and alcohol meet their public health projects and events involving multiple NPDC Our district is growing and we are planning ahead. One obligations and people in the community can enjoy teams. of the challenges of an increasing population is the a lifestyle free of nuisance or risk. Animal control increased demand for resource and building consents activities, including regulating dog ownership and Regulatory Services process building, land use, and their associated inspection and compliance owner education, protects people and wildlife from processes. In keeping up with demand, our service will and subdivision consents. We also process food, nuisance or injury caused by dogs and other animals. alcohol, health and encroachment licences, continue to meet the expectations of our customers, Enforcing parking and freedom camping regulations ensuring our responses are timely and integrated. and issue dog licences. We monitor and enforce ensures fair, safe and easy access to the city, its suburbs legislation and bylaws, including parking and noise Catering for future development, population growth and towns. All of these activities contribute to the social and changing demographics will require effective nuisances. We work with other teams to develop and environmental well-being of our community. resourcing. Increased demand for consents also the District Plan and other policies that guide increases demand on the input of iwi groups during development of the district. Enforcing resource consents, building controls the Resource Management Act process. Providing and other regulations contributes to the district’s resourcing to iwi will help strengthen NPDC’s iwi-based As a Building Consent Authority our building environmental well-being by helping mitigate the partnerships. team processes building consents, and provides potential negative effects of growth and development. inspection services through to code of compliance It also ensures there is adequate land in the right The district’s increasing population means this service status. As a Territorial Authority (TA), we inspect places for residential, commercial, industrial and is experiencing increased demand for public advice dangerous and insanitary buildings. We also agricultural use. Our work ensures buildings in the New and associated services. In meeting this demand, manage complaints and disputes regarding Plymouth District are safe, healthy and durable and we will make education a priority. In areas such as buildings, and certain earthquake-prone building that our people can use and escape buildings without animal control, our officers will continue to work with processes under the Building Act 2004. We are endangering their safety or health, contributing schools, businesses and community groups to provide audited biennially to ensure quality standards are to social well-being. It also ensures that building education around dog safety. foremost in our day to day activities. design, construction and use supports and promotes sustainable development. The national framework for building control is part of the purpose of the Building

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Customer and Regulatory Solutions

We will also look at ways to encourage responsible dog Significant effects on community well-being ownership and reduce the number of unregistered and menacing dogs in the community. An increasing Many of the positive effects our service has on community well-being are outlined in the ‘Why we do it’ section. The population will also impact parking demand. We will following table identifies any potential negative effects of our service and strategies we will use to mitigate them. continue to monitor inner city and suburban parking trends to ensure our parking system is fair, affordable, Well-being Impact accessible and fit for the district. Social and economic Legislative requirements and NPDC regulatory provisions may affect or constrain the ability of individuals or groups to undertake desired activities. We will also look to technology to improve the This can be partially mitigated by: accessibility and efficiency of our service, making more services accessible online, including through • Involving, informing and educating the community on the purpose of any existing social media. We are working on smart systems to and proposed policy and regulation. improve our planning and building control services. • Having a fair and transparent consent and enforcement process. This includes online and digital services for all of our regulatory functions, with a focus on lodging and processing consents, and managing inspections. Our goal is to provide our communities with fast, efficient service, whether it be online, in person or by phone.

Potential changes included in the Proposed District Plan will also impact this service. The Proposed District Plan was publicly notified in September 2019 and the hearing and appeals processes are currently in progress.

The changes we have made Budgets for the Customer and Regulatory Solutions service reflect population growth projections for the district and the associated increased demand on services. Inclusion of additional funding in years two to five will increase the capacity of iwi to participate in the resource management process, strengthening our partnerships with iwi.

We propose to provide for the first one hour of metered parking as free parking and extend metered parking in the New Plymouth CBD from 5pm to 7pm Monday to Saturday from 1 October 2021.

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Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Animal control processes contribute The percentage of animal control emergency 100% 100% 100% 100% 100% to a safe and healthy community. situations1 responded to within two hours. The percentage of known dogs registered. 97% 95% 95% 95% 95% The percentage of residents satisfied with animal 92% 90% 90% 90% 90% control activities (satisfaction survey*). Respond to logged complaints in a The percentage of formal complaints that receive 90% 90% 90% 90% 90% timely manner. an interim reply or are resolved within five working days. Process requests for official The percentage of requests for official 98% 100% 100% 100% 100% information within timeframes set information completed within statutory under Local Government Official timeframes. Information and Meetings Act (1987). Conduct licensing inspections All businesses required to be licensed are 100% 100% 100% 100% 100% in accordance with statutory inspected in accordance with statutory requirements. requirements. Process consent applications within The percentage of building applications 92% 100% 100% 100% 100% statutory timeframes. processed within statutory timeframes (consents and code compliance certificates). The percentage of non-notified resource 94% 100% 100% 100% 100% management consents processed within statutory timeframes.

1 Animal control emergency situations: assisting emergency services, attacks by dogs, stock on roads and injured animals.

* All satisfaction survey targets are excluding ‘don’t know’ responses.

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Customer and Regulatory Solutions

Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 4.59 2.21 2.83 2.58 2.70 2.86 2.74 2.84 3.19 3.42 3.31 Targeted rates - 0.04 0.04 0.04 0.04 0.05 0.05 0.05 0.05 0.05 0.05 Subsidies and grants for operating purposes ------Fees and charges 4.99 9.25 9.28 9.46 9.92 10.07 10.29 10.43 10.60 10.79 11.09 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts 0.32 0.81 0.79 0.79 0.79 0.79 0.80 0.80 0.80 0.80 0.80 Total operating funding (A) 9.91 12.31 12.94 12.87 13.45 13.76 13.87 14.12 14.64 15.06 15.25

Applications of operating funding Payments to staff and suppliers (7.84) (8.70) (8.96) (8.73) (8.98) (9.12) (9.18) (9.36) (9.69) (9.87) (10.15) Finance costs ------Internal charges and overheads applied (5.34) (3.93) (4.13) (4.29) (4.25) (4.47) (4.54) (4.64) (4.82) (5.06) (4.97) Other operating funding applications ------Total applications of operating funding (B) (13.18) (12.63) (13.09) (13.02) (13.24) (13.59) (13.72) (14.00) (14.51) (14.94) (15.12) Surplus/(deficit) of operating funding (A - B) (3.27) (0.32) (0.15) (0.15) 0.22 0.17 0.15 0.12 0.12 0.12 0.12

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase/(decrease) in debt 3.97 (0.03) (0.03) (0.03) 0.02 - (0.04) (0.04) (0.04) (0.04) (0.04) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 3.97 (0.03) (0.03) (0.03) 0.02 - (0.04) (0.04) (0.04) (0.04) (0.04)

Applications of capital funding Capital expenditure: - to meet additional demand ------to improve the level of service - - - - (0.05) (0.04) ------to replace existing assets (0.70) (0.05) (1.11) (0.03) (0.11) (0.08) (0.04) (0.04) (0.06) (0.04) (0.04) (Increase)/decrease in reserves - 0.40 1.30 0.22 (0.07) (0.06) (0.07) (0.05) (0.02) (0.05) (0.05) (Increase)/decrease of investments ------Total applications of capital funding (D) (0.70) 0.35 0.18 0.19 (0.24) (0.17) (0.11) (0.09) (0.09) (0.09) (0.09) Surplus/(deficit) of capital funding (C-D) 3.27 0.32 0.15 0.15 (0.22) (0.17) (0.15) (0.12) (0.12) (0.12) (0.12)

Funding balance (A-B) + (C-D) ------

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Customer and Regulatory Solutions

Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 0.66 0.66 0.69 0.69 0.70 0.76 0.76 0.76 0.83 0.83 0.83 less deferred/unfunded 0.04 (0.54) (0.57) (0.57) (0.51) (0.63) (0.65) (0.68) (0.75) (0.75) (0.75) Net funding transferred to renewals reserves 0.70 0.12 0.13 0.12 0.18 0.13 0.11 0.09 0.09 0.09 0.09

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Parking equipment renewal 824,080 - 824,080 ------Dog Pound upgrade 189,950 - - - 108,650 81,300 - - - - -

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Economic Development

Why we do it changes in government policy that are beyond our What we do control. To build economic resilience we will continue NPDC’s strategic vision for a Sustainable Lifestyle to encourage economic diversity. We will also continue Capital is supported by five goals – partnerships, We work collaboratively to identify and to look at ways to further our connection with national delivery, community, sustainability and prosperity. These embrace opportunities for economic growth and international markets. and diversification in the district. goals (our community outcomes) promote the social, economic, environmental and cultural well-being of We will continue to support local business in the district NPDC works with the other Taranaki councils, the New Plymouth District both now and for the future. and build the skilled labour force necessary to support central government, and a number of agencies Economic development activities actively contribute to our local industries. With a growing population and in the region to develop and improve the local the social and economic well-being of our community. improved access to the district, we plan to capitalise on opportunities to attract relocation to the Taranaki economy. This includes directly funding and Tapuae Roa’s mission statement: ‘Taranaki, where region, building our labour force and supporting a overseeing the Venture Taranaki Trust, a Council talent becomes enterprise – Kia eke panuku’, captures more resilient economy. We also plan to capitalise on Controlled Organisation responsible for promoting the regional vision for Taranaki as a place that offers our reputation as a visitor destination as appropriate regional development and tourism in the district. an attractive lifestyle for talented people, in a high in a post Covid-19 environment. We will do this in value economy. Economic development activities a considered and collaborative way through the Our priorities for economic development are set that flow from, and contribute to, Tapuae Roa and implementation of the Tapuae Roa: Make Way for out in Tapuae Roa: Make Way for Taranaki – the Taranaki 2050, focus on innovation, resilience and Taranaki Strategy and Action Plan and Taranaki 2050 Regional Economic Development Strategy and sustainability through things like diversification and a Roadmap. Action Plan adopted in February 2018. Tapuae successful transition to a low emissions economy. Our Roa takes a cross-regional approach, focusing on collaboration with others toward fulfilling this mission The expected ongoing impacts of Covid-19 mean unlocking opportunities for economic growth in supports an innovative, resilient and prosperous district. that economic development is even more critical to the region. supporting the community, and forms a key part of the All of our activities support local business, making it Taranaki Covid-19 recovery. This work aligns with our easy to do business here and encouraging a diverse This work is complemented by the initiatives and regional strategic vision and priorities. The first two range of industries that will provide jobs for our people. outcomes identified in the Taranaki 2050 Roadmap years of the LTP 2021-2031 will be largely focused on Economic development helps create a vibrant economy the Covid Recovery Plan which looks to support the and their associated pathway action plans. The and a district where people want to work, live, learn, region in ‘returning to better’. Taranaki 2050 Roadmap helps direct the priorities play and invest. for regional development in the region, with a particular focus on transitioning to a low emissions The changes we have made economy. How we pay for it There are no changes to levels of service over the life of This service is funded by general rates (note that this plan. Venture Taranaki Trust also receives funding from central government, the South Taranaki and Stratford district councils and Taranaki Regional Council). Significant effects on community well-being Looking ahead Our service supports innovative, resilient and The New Plymouth District has an incredible amount to sustainable communities that enjoy prosperity and offer. However, in an economy dominated by dairying success. There are no significant negative effects and energy, we are susceptible to global factors and identified from this activity.

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Economic Development

Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Promote the New Plymouth District The number of major events attracted or 10 4 4 4 4 and the Taranaki region as a vibrant retained. and desirable place to work, live, Undertaking initiatives to support investment New measure 5 5 5 5 learn, play and invest. into Taranaki. The number of engagements1 with visitor New measure 1,000 1,000 1,000 1,000 industry operators. The number of talent initiatives2. New measure 2 2 2 2 Facilitate, promote, and support The level of annual investment in regional $1,920,106 $1,000,000 $1,000,000 $1,000,000 $1,000,000 sustainable business growth, businesses (subject to central government innovation, investment and policy). employment opportunities in The annual percentage of clients satisfied with 96% >85% >85% >85% >85% Taranaki. Venture Taranaki business support services. The level of annual investment3 in the $393,920 $240,000 $240,000 $240,000 $240,000 management capability of Taranaki’s small and medium-sized businesses. Number of enterprise referrals and connections New measure 200 200 200 200 made by Venture Taranaki staff.

1 Engagement is defined as a significant interaction made with an external party. 2 Talent initiatives are those that facilitate the retention, growth or attraction of talent (i.e. human resources) in/into Taranaki. 3 Investment includes capability development and voucher funding as part of the nationwide Regional Business Partner Network.

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Economic Development

Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 3.93 4.16 4.29 4.40 4.51 4.65 4.75 4.86 4.57 4.68 4.78 Targeted rates ------Subsidies and grants for operating purposes ------Fees and charges ------Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 3.93 4.16 4.29 4.40 4.51 4.65 4.75 4.86 4.57 4.68 4.78

Applications of operating funding Payments to staff and suppliers (3.40) (3.40) (3.48) (3.59) (3.67) (3.77) (3.87) (3.96) (3.63) (3.73) (3.83) Finance costs ------Internal charges and overheads applied (0.62) (0.70) (0.75) (0.75) (0.75) (0.82) (0.83) (0.84) (0.88) (0.89) (0.89) Other operating funding applications ------Total applications of operating funding (B) (4.02) (4.10) (4.23) (4.34) (4.42) (4.59) (4.70) (4.80) (4.51) (4.62) (4.72) Surplus/(deficit) of operating funding (A - B) (0.09) 0.06 0.05 0.06 0.09 0.05 0.06 0.06 0.06 0.06 0.06

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase/(decrease) in debt - (0.01) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) - (0.01) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02)

Applications of capital funding Capital expenditure: - to meet additional demand ------to improve the level of service ------to replace existing assets ------(Increase)/decrease in reserves 0.09 (0.04) (0.04) (0.04) (0.07) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (Increase)/decrease of investments ------Total applications of capital funding (D) 0.09 (0.04) (0.04) (0.04) (0.07) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) Surplus/(deficit) of capital funding (C-D) 0.09 (0.06) (0.05) (0.06) (0.09) (0.05) (0.06) (0.06) (0.06) (0.06) (0.06)

Funding balance (A-B) + (C-D) ------

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Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense ------less deferred/unfunded 0.07 0.04 0.04 0.04 0.07 0.04 0.04 0.04 0.04 0.04 0.04 Net funding transferred to renewals reserves 0.07 0.04 0.04 0.04 0.07 0.04 0.04 0.04 0.04 0.04 0.04

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Emergency Management and Business Continuance

What we do Why we do it Looking ahead NPDC’s strategic vision for a Sustainable Lifestyle Our service continually works to ensure our internal We identify and understand local hazards Capital is supported by five goals – partnerships, emergency response and business continuity plans and risks, building capability and capacity to delivery, community, sustainability and prosperity. These and processes are aligned and up to date. We test respond to and recover from emergencies. goals (our community outcomes) promote the social, these plans and processes annually, addressing any economic, environmental and cultural well-being of the opportunities for improvement. Over the life of this plan As a member of the Taranaki Civil Defence New Plymouth District both now and for the future. we will continue to identify hazards, including potential Emergency Management Group (CDEM Group), impacts of climate change and Covid-19 developments. NPDC works with the three Taranaki councils, the Our Emergency Management and Business We will continue to assess and plan for risk reduction/ community, and other agencies to plan for and Continuance service contributes to all of these goals. resilience, and update and review emergency manage responses to emergency events. We also Our partnership with government agencies and management and business continuity plans. educate our communities about potential hazards community stakeholders ensures a strong regional and about how to prepare and recover from response to civil defence emergencies. All of our work Our work with the CDEM Group will continue and emergencies associated with these hazards. supports community resilience helping our people this group will provide support and direction in a civil prepare for, respond to, and recover from natural defence and emergency management event. We will We make sure the information we have about disasters. also continue to liaise with the National Emergency hazards and risks in the district is up to date, and Management Agency to apply any changes to the Civil review a range of Council plans in accordance with Ensuring NPDC services are maintained or restored Defence and Emergency Management Act 2002. that information. as quickly as possible following an emergency event, reduces the effect emergency events can have on We also manage NPDC’s internal emergency our residents’ quality of life. This supports the social, The changes we have made management response outside of civil defence economic and cultural well-being of our communities. We plan to purchase trailer-mounted generators to activation, including business continuance. provide power critical infrastructure and/or operations Our systems and processes ensure NPDC can CDEM Group activities are also driven by legislation centres in an emergency event. This will allow additional continue to operate as well as possible during an including the Civil Defence Emergency Management flexibility and agility to our response requirements. emergency, major or minor. Act 2002. This Act requires councils to take responsibility for the reduction of, readiness for, There are no other changes to levels of service over the NPDC also administers the Taranaki Emergency response to, and recovery from risks and events life of this plan. Management Office on behalf of the four local associated with emergency management. authorities in Taranaki. Significant effects on community How we pay for it well-being Our service is funded through general rates. We also All of our activities are about protecting people and receive grants from the other local authorities in property in the event of an emergency or a widespread Taranaki to fund the Taranaki Emergency Management event. There are no significant negative effects office. identified from this activity. However, the public may perceive a negative impact to their well-being when a response is implemented.

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Emergency Management and Business Continuance

Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Ensure NPDC is ready for, can respond Emergency processes and plans are reviewed Realignment Emergency Emergency Emergency Emergency to, and can recover from emergencies. and updated annually. underway plans are plans are plans are plans are reviewed and reviewed and reviewed and reviewed and updated as updated as updated as updated as per exercise per exercise per exercise per exercise schedule schedule schedule schedule Recruit, train, and maintain a database of staff New measure Maintain 150 Maintain 150 Maintain 150 Maintain 150 and volunteers capable of responding to an recruited and recruited and recruited and recruited and emergency. trained staff trained staff trained staff trained staff and volunteers and volunteers and volunteers and volunteers Ensure the NPDC Emergency Operations Centre New measure Complete Complete Complete NPDC EOC (EOC) is fit for purpose. monthly monthly monthly is a highly system checks system checks system checks functioning and an annual and an annual and an annual operations EOC capability EOC capability EOC capability centre for audit audit audit NPDC to coordinate any emergency from Develop and implement an NPDC emergency New measure Complete Undertake two Undertake two All NPDC exercise programme. NPDC emergency emergency emergency emergency exercises exercises plans are exercise tested with programme exercises as part of an emergency exercise programme

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Emergency Management and Business Continuance

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Assist the New Plymouth community Civil Defence centres are identified, assessed New measure 4 6 8 8 in becoming ready for, responding to, and formalised with Memorandum(s) of and recovering from emergencies. Understanding. Engage with key community groups, and New measure Establish a Establish a Establish a NPDC has stakeholders (particularly iwi and hapū) to team that team that team that three trained develop community emergency response can deliver a can deliver a can deliver a community- capability. community- community- community- based response based based based groups emergency emergency emergency capable of response response response assisting NPDC capability capability capability emergency response if required

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Emergency Management and Business Continuance

Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 1.17 1.39 1.49 1.54 1.58 1.63 1.64 1.65 1.73 1.76 1.78 Targeted rates ------Subsidies and grants for operating purposes 1.45 1.48 1.57 1.61 1.63 1.62 1.63 1.63 1.73 1.76 1.79 Fees and charges - 0.22 0.23 ------Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 2.62 3.09 3.28 3.16 3.21 3.25 3.28 3.28 3.46 3.52 3.57

Applications of operating funding Payments to staff and suppliers (2.02) (2.25) (2.37) (2.17) (2.20) (2.21) (2.25) (2.28) (2.36) (2.41) (2.46) Finance costs (0.05) (0.04) (0.03) (0.04) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) Internal charges and overheads applied (0.51) (0.69) (0.73) (0.74) (0.74) (0.79) (0.80) (0.81) (0.85) (0.87) (0.87) Other operating funding applications ------Total applications of operating funding (B) (2.58) (2.97) (3.13) (2.94) (2.98) (3.03) (3.08) (3.12) (3.24) (3.30) (3.36) Surplus/(deficit) of operating funding (A - B) 0.05 0.12 0.15 0.21 0.23 0.21 0.20 0.16 0.22 0.22 0.22

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase/(decrease) in debt (0.05) (0.07) (0.02) 0.78 (0.19) (0.18) (0.16) (0.06) 0.06 (0.19) (0.18) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) (0.05) (0.07) (0.02) 0.78 (0.19) (0.18) (0.16) (0.06) 0.06 (0.19) (0.18)

Applications of capital funding Capital expenditure: - to meet additional demand ------to improve the level of service (0.05) (0.03) (0.12) (0.98) (0.02) (0.02) (0.02) (0.08) (0.27) (0.01) (0.03) - to replace existing assets ------(Increase)/decrease in reserves 0.05 (0.02) (0.01) (0.02) (0.02) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (Increase)/decrease of investments ------Total applications of capital funding (D) - (0.05) (0.13) (0.99) (0.04) (0.03) (0.04) (0.09) (0.28) (0.03) (0.04) Surplus/(deficit) of capital funding (C-D) (0.05) (0.12) (0.15) (0.21) (0.23) (0.21) (0.20) (0.16) (0.22) (0.22) (0.22)

Funding balance (A-B) + (C-D) ------

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Emergency Management and Business Continuance

Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 0.03 0.03 0.04 0.05 0.05 0.06 0.06 0.06 0.07 0.07 0.07 less deferred/unfunded (0.01) (0.02) (0.02) (0.04) (0.03) (0.04) (0.04) (0.05) (0.05) (0.05) (0.05) Net funding transferred to renewals reserves 0.02 0.02 0.01 0.02 0.02 0.01 0.01 0.01 0.01 0.01 0.01

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) NPDC civil defence resilience project 793,924 - 37,084 756,840 ------

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Flood Protection and Control Works

Why we do it The District Plan deters property development in What we do identified flood hazard areas in the district to minimise NPDC’s strategic vision for a Sustainable Lifestyle the impact of flooding on people and property. Our flood protection and control works provide Capital is supported by five goals – partnerships, flood protection systems to urban areas in delivery, community, sustainability and prosperity. These the New Plymouth District. We monitor and goals (our community outcomes) promote the social, The changes we have made maintain three flood protection dams and economic, environmental and cultural well-being of the There are no proposed changes to levels of service over diversion tunnels. New Plymouth District both now and for the future. the life of this plan. Reducing flood risk contributes to the goals of delivery, community, sustainability and prosperity by protecting people and property from the effects of flooding from rivers and streams in severe storm events.

This enables residents to continue with their daily lives after a significant rainfall event, which supports social well-being. Protecting our natural environment and outdoor lifestyle opportunities enhances environmental and economic well-being. Our work to reduce flood risk helps build resilience, protecting businesses and industry through measures such as the Huatoki Dam, which reduces flood impacts on the Central Business District.

How we pay for it This service is funded through general rates. Capital improvements are loan funded, while the costs of renewing and replacing assets are covered by renewal reserves. The replacement value of flood protection assets is $21.5m.

Looking ahead We recognise that climate change predictions of increased frequency and intensity of storm events will place increasing pressures on our flood protection and control works. We will continue to maintain the flood protection schemes and assets in the district, and monitoring the predicted impacts of climate change.

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Flood Protection and Control Works

Significant effects on community well-being Our service can have a range of effects on the community. Many of the positive effects are outlined in the section ‘why we do it’. Potential negative effects are identified in the following table.

Well-being Impact Social, economic and environmental Flood infrastructure is not adequate to deal with severe storms and could fail and harm people and buildings. To reduce this risk, we will take the probability of severe storm events into account when designing the capacity of the protection systems and prepare contingency plans for such events. We will also identify at risk flood areas, taking steps to manage development in these areas.

Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Effectively maintain NPDC’s flood Major flood protection and control works are Achieved Achieved Achieved Achieved Achieved protection and control works. maintained, repaired and renewed in accordance with asset management plans and annual works programme.

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Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 0.30 0.29 0.30 0.38 0.53 0.34 0.32 0.33 0.34 0.35 0.35 Targeted rates ------Subsidies and grants for operating purposes ------Fees and charges ------Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 0.30 0.29 0.30 0.38 0.53 0.34 0.32 0.33 0.34 0.35 0.35

Applications of operating funding Payments to staff and suppliers (0.10) (0.06) (0.05) (0.13) (0.27) (0.06) (0.06) (0.06) (0.06) (0.06) (0.07) Finance costs (0.01) ------Internal charges and overheads applied (0.15) (0.18) (0.20) (0.21) (0.21) (0.23) (0.22) (0.22) (0.24) (0.24) (0.24) Other operating funding applications ------Total applications of operating funding (B) (0.26) (0.24) (0.25) (0.34) (0.48) (0.29) (0.28) (0.28) (0.30) (0.30) (0.31) Surplus/(deficit) of operating funding (A - B) 0.04 0.05 0.05 0.04 0.05 0.05 0.05 0.05 0.05 0.05 0.05

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase/(decrease) in debt (0.01) (0.01) (0.01) - - (0.01) - - - - - Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) (0.01) (0.01) (0.01) - - (0.01) - - - - -

Applications of capital funding Capital expenditure: - to meet additional demand ------to improve the level of service ------to replace existing assets (0.03) (0.05) (0.04) (0.04) (0.04) (0.10) (0.11) (0.05) (0.05) (0.05) (0.05) (Increase)/decrease in reserves - 0.01 - - - 0.06 0.07 - - 0.01 0.01 (Increase)/decrease of investments ------Total applications of capital funding (D) (0.03) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04) Surplus/(deficit) of capital funding (C-D) (0.04) (0.05) (0.05) (0.04) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05)

Funding balance (A-B) + (C-D) ------

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Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 0.12 0.12 0.13 0.13 0.13 0.14 0.14 0.14 0.15 0.15 0.15 less deferred/unfunded (0.09) (0.09) (0.09) (0.09) (0.09) (0.10) (0.10) (0.10) (0.12) (0.12) (0.12) Net funding transferred to renewals reserves 0.03 0.03 0.04 0.03 0.04 0.04 0.04 0.04 0.04 0.04 0.04

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Governance

Why we do it We will actively monitor and respond to any changes in What we do legislation that affect how NPDC works and the services NPDC’s strategic vision for a Sustainable Lifestyle we provide. We support the Mayor, councillors and Capital is supported by five goals – partnerships, community board members to be effective, delivery, community, sustainability and prosperity. These Increasing interest in the Council’s decision making representative and accountable decision goals (our community outcomes) promote the social, process means we will also be looking at new ways for makers. We also make sure people have easy economic, environmental and cultural well-being of the our communities to be involved in Council decision access to the information they need to be New Plymouth District both now and for the future. making. involved in Council decision making. Our work promotes the goals of partnership, delivery We will continue in the CouncilMARK™ programme1 The Governance service supports, facilitates and and community by ensuring robust decision making with the first three yearly review occurring in 2021/22, administers Council, committee and community processes. We provide a democratic system of and subsequently every three years. board meetings and coordinates a range of civic governance, through elections, representation reviews functions. We also provide administrative services for and consultation processes. Our work provides Te Tai Pari Trust, a statutory organisation established equal opportunities for everyone in our community The changes we have made by the New Plymouth District Council (Waitara Lands) to participate in decision making. This fulfils their Following the passing of the New Plymouth District Act 2018, which allocates funding from the Waitara democratic rights and contributes to the social well- Council (Waitara Lands) Act 2018, our service has Perpetual Community Fund. Every three years, being of our communities. expanded to include provision of administrative we are responsible for managing local authority support for the Te Tai Pari Trust. elections. Elected members must represent their communities and make decisions in an open, transparent and We will provide $400,000 per annum shared equally accountable manner. NPDC’s Governance service amongst the community boards over years one to three supports the Council to make quality decisions in to fund minor (with the exclusion of roading) projects. accordance with statutory requirements. We are guided by the Local Government Act 2002, the Local Electoral Act 2001 and the Local Government Official Information Significant effects on community and Meetings Act 1987. well-being The Governance service supports an engaged How we pay for it community that can participate in the democratic process. There are no significant negative effects The Governance service is funded through general associated with this service. rates.

Looking ahead Central government reviews of local government legislation are ongoing. Over the next 10 years there will likely be central government directives on the design 1 The CouncilMARK™ programme incorporates an independent and function of local government. This may include assessment system that assesses how councils are performing legislative changes that directly affect the role and and the work they’re undertaking to grow the value they functions of NPDC. deliver.

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Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Effectively manage local elections Elections and polls comply with the provisions Achieved * Full compliance * Full compliance in accordance with statutory of the Local Electoral Act 2001 and are without requirements. successful petitions for inquiry into the conduct of elections. Ensure NPDC processes comply with The Long-Term Plan, Annual Plan and Annual Achieved Full compliance Full compliance Full compliance Full compliance statutory requirements. Report are each adopted within statutory timeframes. Meeting agendas are available as specified by Achieved Full compliance Full compliance Full compliance Full compliance legislation.

* No triennial elections in this year.

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Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 4.38 4.29 4.10 4.11 4.28 4.47 4.38 4.56 4.77 4.78 4.88 Targeted rates ------Subsidies and grants for operating purposes ------Fees and charges 0.01 0.01 0.08 0.01 0.01 0.10 0.01 0.01 0.11 0.01 0.01 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 4.39 4.29 4.18 4.11 4.29 4.56 4.38 4.56 4.88 4.79 4.89

Applications of operating funding Payments to staff and suppliers (2.02) (2.17) (1.88) (1.88) (2.00) (2.23) (2.00) (2.13) (2.37) (2.21) (2.27) Finance costs ------Internal charges and overheads applied (2.37) (2.19) (2.26) (2.19) (2.22) (2.29) (2.34) (2.39) (2.47) (2.54) (2.58) Other operating funding applications ------Total applications of operating funding (B) (4.38) (4.35) (4.15) (4.07) (4.23) (4.52) (4.34) (4.52) (4.84) (4.75) (4.85) Surplus/(deficit) of operating funding (A - B) 0.01 (0.06) 0.04 0.04 0.06 0.04 0.04 0.04 0.04 0.04 0.04

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase/(decrease) in debt - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) - (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Applications of capital funding Capital expenditure: - to meet additional demand ------to improve the level of service - (0.40) (0.41) (0.42) ------to replace existing assets ------(Increase)/decrease in reserves (0.01) 0.47 0.39 0.39 (0.05) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (Increase)/decrease of investments ------Total applications of capital funding (D) (0.01) 0.07 (0.03) (0.03) (0.05) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) Surplus/(deficit) of capital funding (C-D) (0.01) 0.06 (0.04) (0.04) (0.06) (0.04) (0.04) (0.04) (0.04) (0.04) (0.04)

Funding balance (A-B) + (C-D) ------

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Governance

Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense - 0.01 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 less deferred/unfunded 0.05 0.02 0.01 0.01 0.02 ------Net funding transferred to renewals reserves 0.05 0.03 0.03 0.03 0.05 0.03 0.03 0.03 0.03 0.03 0.03

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Govett-Brewster Art Gallery/Len Lye Centre

What we do Why we do it How we pay for it NPDC’s strategic vision for a Sustainable Lifestyle The Gallery service is primarily funded through We provide the community access to innovative Capital is supported by five goals – partnerships, general rates and fees and charges. We also receive and provocative art created by national and delivery, community, sustainability and prosperity. These rental income and profit share from the onsite café, international contemporary artists. goals (our community outcomes) promote the social, Monica’s Eatery, and generate commercial revenue economic, environmental and cultural well-being of the through activities such as venue hire, cinema ticketing, The Govett-Brewster Art Gallery is New Zealand’s New Plymouth District both now and for the future. exhibition tours, retail sales and guided tours. We fund leading contemporary art museum, offering further operations through fundraising, partnerships, a dynamic range of exhibitions. The Gallery is The Govett-Brewster Art Gallery/Len Lye Centre donations, grants and sponsorship. recognised nationally and internationally for (the Gallery) actively contributes to NPDC’s goals of its quality programming and dedication to partnerships, delivery, community and prosperity, by We use funding from the Govett-Brewster Foundation contemporary art, and art from New Zealand and delivering high quality programming and partnership and from endowment funds to support art acquisitions the Pacific Rim. Our exhibitions are supported by a opportunities, and growing a nationally and and some aspects of Gallery programming. Every three internationally recognised brand. years we apply for contestable Ministry of Education range of public and community events, education funding to deliver learning experiences outside programmes, and other opportunities to engage The Gallery contributes to the cultural well-being of the classroom (LEOTC). We also apply for Creative with the art. our communities by providing connection to the arts New Zealand funding to support our national and and safe, active and creative opportunities for a diverse international artist residencies and other programmes. In 2015 the Govett-Brewster Art Gallery extended range of audiences and visitor groups to participate. the building to home the Len Lye Centre, a facility Our work also contributes by sharing and strengthening of local, national and international significance. Te Ao Māori across all of our programmes. This supports Looking ahead The Len Lye Centre is New Zealand’s first the district’s positioning as a lifestyle capital, with a We will continue to develop exhibition, event and institution dedicated to a single artist. It provides globally recognised brand that encourages skills and engagement programmes that reflect current creative a continuous and accessible programme that people to the district. practices, and provide opportunities for the community explores the art and ideas of Len Lye, a pioneering to engage with leading contemporary art, and meet filmmaker and kinetic sculptor. The Gallery is a tourism anchor, attracting people to the with others. district and supporting district and regional prosperity. It is a place of creative ideas and thinking, which are Our programming will be responsive to the changing recognised components of innovation that have the demographics of our community, with regular and one- potential to drive business growth in the district. The off events targeting different community needs. We will Gallery is a distinct drawcard attracting skills, talent and also continue to host broader conversation events that people to the district and contributing to the economic help foster creativity, innovation, and inclusivity in the well-being of our communities. district.

We are committed to growing our visitor base, with a particular focus on out-of-district visitors. This will help stimulate economic activity and resilience in response to the impacts of Covid-19, and showcase New Plymouth as a world class visitor and investment

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Govett-Brewster Art Gallery/Len Lye Centre destination. Over recent years, 33 per cent of overall Significant effects on community visitors to the Gallery have been from out of the district, well-being and we are confident we can increase this number. This service has many positive effects on community We rely on external funding for acquisitions to the outcomes, as outlined in the ‘why we do it’ section Gallery’s permanent collection, and to cover a number above. There are no significant negative effects of operational and programme related costs. Accessing identified for this activity. external funding may become more difficult in the post-Covid landscape. We will continue to seek funding and partnerships to support our activities. We are also developing strategies to maximise revenue from our commercial activities, which include the cinema, exhibition tours, retail shop sales and venue hire.

Ministry of Education funding for our LEOTC programme is secured until December 2021 and we will seek further triennial funding in mid 2021. We have also secured triennial investment from Creative New Zealand’s Toi Uru Kahikatea programme, from January 2020 to December 2022.

The changes we have made In August 2018, we introduced a non-district resident entry fee of $15.00. Our operational budgets have been adjusted to reflect the impacts of this charge on both revenue and costs.

An annual reduction of $400,000 in operational costs is proposed in the LTP 2021-2031, which is a continuation of the adjustment made in the Annual Plan 2020/21.

Our targets for annual visitor numbers have also been adjusted to reflect a natural tapering of visitors following the 2015 opening of the Len Lye Centre, and the impacts of Covid-19 on tourism, namely the loss of international visitors.

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Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Provide access to an engaging range The annual number of exhibitions on offer. 9 7 7 7 7 of contemporary art from The annual number of visitor entries. 52,260 60,000 65,000 70,000 80,000 New Zealand and around the world. The annual number of audience engagement New measure 50 55 60 75 events1. The percentage of residents satisfied with the 64% 65% 65% 65% 65% service (satisfaction survey*). The percentage of customers satisfied with their 84% 82% 82% 82% 82% overall experience at the Govett-Brewster Art Gallery/Len Lye Centre (in-house surveys).

1 These include formal ticketed events such as the Monica Brewster evenings, free and paid gallery and exhibition tours, targeted free events such as Sense Art tours, Gallery Babes and Gallery Seniors, education programmes including Young Visionaries, family art and workshops, and other public talks, lectures, tours and workshops. * All satisfaction survey targets are excluding ‘don’t know’ responses.

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Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 4.30 4.30 4.49 4.59 4.67 4.83 4.96 5.03 5.27 5.32 5.42 Targeted rates ------Subsidies and grants for operating purposes 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 Fees and charges 0.51 0.51 0.54 0.64 0.66 0.67 0.71 0.72 0.74 0.76 0.77 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 5.06 5.06 5.29 5.49 5.60 5.77 5.93 6.01 6.27 6.34 6.46

Applications of operating funding Payments to staff and suppliers (3.46) (3.46) (3.58) (3.69) (3.75) (3.87) (3.98) (4.05) (4.23) (4.26) (4.36) Finance costs ------Internal charges and overheads applied (1.38) (1.38) (1.49) (1.52) (1.53) (1.61) (1.65) (1.66) (1.74) (1.78) (1.80) Other operating funding applications ------Total applications of operating funding (B) (4.83) (4.83) (5.07) (5.21) (5.28) (5.48) (5.63) (5.71) (5.97) (6.04) (6.16) Surplus/(deficit) of operating funding (A - B) 0.23 0.23 0.23 0.28 0.31 0.29 0.30 0.30 0.30 0.30 0.30

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase/(decrease) in debt 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 0.07 0.69 0.08 Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 0.07 0.69 0.08

Applications of capital funding Capital expenditure: - to meet additional demand ------to improve the level of service (0.08) (0.08) (0.08) (0.08) (0.08) (0.09) (0.09) (0.09) (0.09) (0.71) (0.10) - to replace existing assets (0.13) (0.13) (0.14) (0.14) (0.48) (0.16) (0.16) (0.46) (0.18) (0.64) (0.19) (Increase)/decrease in reserves (0.08) (0.08) (0.07) (0.12) 0.18 (0.11) (0.12) 0.18 (0.10) 0.37 (0.08) (Increase)/decrease of investments ------Total applications of capital funding (D) (0.29) (0.29) (0.29) (0.35) (0.38) (0.36) (0.37) (0.37) (0.37) (0.99) (0.38) Surplus/(deficit) of capital funding (C-D) (0.23) (0.23) (0.23) (0.28) (0.31) (0.29) (0.30) (0.30) (0.30) (0.30) (0.30)

Funding balance (A-B) + (C-D) ------

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Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 0.53 0.53 0.56 0.57 0.57 0.62 0.62 0.63 0.68 0.70 0.70 less deferred/unfunded (0.27) (0.27) (0.30) (0.30) (0.27) (0.35) (0.34) (0.35) (0.41) (0.42) (0.42) Net funding transferred to renewals reserves 0.26 0.27 0.27 0.27 0.30 0.27 0.28 0.28 0.28 0.28 0.28

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Govett-Brewster Art Gallery/Len Lye collection storage 616,464 ------614,038 2,425

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Management of Investments and Funding

Why we do it NPDC’s external borrowings are currently around What we do $218m. Based on future planned infrastructure NPDC’s strategic vision for a Sustainable Lifestyle investments, borrowing will increase over the life of this Our role is to develop, manage and protect key Capital is supported by five goals – partnerships, plan. However, our level of borrowing is moderate for a NPDC funding sources. delivery, community, sustainability and prosperity. These council the size of NPDC. goals (our community outcomes) promote the social, Our service manages all NPDC owned investments. economic, environmental and cultural well-being Over the life of the LTP, Papa Rererangi i Puketapu We also manage income not assigned to other of the New Plymouth District both now and for the Limited will complete redevelopment of the carpark Council activities and all of Council’s borrowing. future. Managing NPDC investments and borrowing and grounds around Te Hono, the new airport terminal. This includes: responsibly contributes directly to this strategic The new airport was a major project, funded by framework. NPDC borrowing and with risk similar to any major • NPDC’s Perpetual Investment Fund (PIF) construction project. We anticipate landing charges managed by the New Plymouth PIF Guardians Developing and protecting NPDC’s income from rates and other commercial revenue will be sufficient to Ltd. and other funding contributes to the Council’s financial service the loan debt once the airport recovers from the capacity to develop the district and promote the social, • One hundred per cent ownership of Papa economic impact of Covid-19. Assuming the forecast economic, environmental and cultural well-being of our recovery is achieved, we expect a dividend in 2024. Rererangi i Puketapu Limited, the Council community. Controlled Trading Organisation that runs the Our intention is that returns from the PIF will be New Plymouth Airport. How we pay for it maintained at 3.3 per cent over the life of the LTP (plus • Administration of 1,500 property leases and Consumer Price Index inflation and management fees agreements. Our service is funded by returns from NPDC’s and costs). Although this service has been impacted investments, which are used to offset general rates. The by Covid-19, our long term investment strategies have • Production forestry on NPDC owned land and contribution from the PIF is printed on each individual reduced short-term effects. two joint venture forestry investments. rates bill. • Minor equity investments in Civic Assurance NPDC expects Waitara leaseholders to continue to We also receive lease and freehold sale proceeds from Limited and the Local Government Funding freehold, with around 100 leaseholders remaining by the Waitara endowment land. Agency. 30 June 2031. Over the life of this plan NPDC will distribute revenue in accordance with the New • Administering Waitara leasehold property Looking ahead Plymouth District Council (Waitara Lands) Act 2018. leases and freeholding and administering the funds derived according to the New Plymouth NPDC’s Treasury Management Policy dictates how District Council (Waitara Lands) Act 2018. we manage our borrowings. The majority of Council borrowing is at fixed interest rates. Currently, the average term is approximately six years, which ensures the interest rate remains on or below three per cent for the first six years of the LTP 2021-2031.

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The changes we have made Significant effects on community Our work with Waitara leaseholders is an additional well-being activity since the last LTP. This work involves support The activities of this service ensure responsible with freeholding and distributing the associated funds management of NPDC investments and borrowings. in accordance with the New Plymouth District Council New Plymouth PIF Guardians Ltd ensures responsible (Waitara Lands) Act 2018. investment of ratepayer funds that manages environmental, social, governance and cultural factors There are no other changes proposed to levels of for better long term outcomes. The Waitara leasehold service over the life of this plan. proceeds are distributed to various funds that benefit the well-being of the Waitara community. There are no significant negative effects identified from this activity.

Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Manage the Perpetual Investment The annual return from the PIF received by Achieved 3.3% + CPI + 3.3% + CPI + 3.3% + CPI + 3.3% + CPI + Fund (PIF) to provide sustainable NPDC. management management management management NPDC revenue. fees and costs fees and costs fees and costs fees and costs Manage NPDC’s borrowing Debt levels comply with limits set by policy. All measures All measures All measures All measures All measures programme in accordance with the met met met met met Liability Management Policy.1

1 The Liability Management Policy is incorporated within the Treasury Management Policy which was updated and approved by the Council on 2 June 2020.

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Management of Investments and Funding

Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties (9.62) (6.71) (10.48) (9.22) (12.12) (8.04) (11.32) (5.26) (5.45) (6.19) (6.06) Targeted rates ------Subsidies and grants for operating purposes ------Fees and charges 1.68 1.29 3.85 1.24 4.86 2.87 1.89 1.88 1.87 3.31 1.87 Internal charges and overheads recovered 12.46 ------Local authorities fuel tax, fines, infringement fees and other receipts - 12.14 12.68 13.16 13.62 14.04 14.49 14.93 15.38 15.84 16.28 Total operating funding (A) 4.52 6.73 6.05 5.18 6.36 8.87 5.06 11.55 11.80 12.95 12.09

Applications of operating funding Payments to staff and suppliers (19.92) (6.77) (7.47) (7.19) (9.43) (8.11) (6.14) (6.06) (5.93) (6.85) (6.21) Finance costs (0.40) (1.91) (2.00) (2.83) (2.47) (2.17) (3.85) (3.61) (3.25) (3.19) (2.98) Internal charges and overheads applied (0.76) (0.81) (1.33) (0.71) (0.72) (0.64) (0.80) (0.61) (0.66) (0.61) (0.59) Other operating funding applications ------Total applications of operating funding (B) (21.09) (9.49) (10.79) (10.73) (12.62) (10.92) (10.80) (10.28) (9.85) (10.65) (9.77) Surplus/(deficit) of operating funding (A - B) (16.57) (2.76) (4.75) (5.55) (6.26) (2.05) (5.74) 1.27 1.96 2.30 2.31

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase/(decrease) in debt (0.88) (1.90) (1.35) (3.75) (1.71) (2.75) (2.22) (6.00) (6.55) (6.55) (6.55) Gross proceeds from sale of assets 17.40 7.39 6.99 7.95 7.92 7.19 5.19 4.95 4.68 4.64 4.87 Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 16.52 5.49 5.64 4.20 6.21 4.44 2.96 (1.05) (1.87) (1.91) (1.68)

Applications of capital funding Capital expenditure: - to meet additional demand ------to improve the level of service ------to replace existing assets ------(Increase)/decrease in reserves 0.06 (2.73) (0.89) 1.36 0.05 (2.39) 2.77 (0.22) (0.08) (0.39) (0.63) (Increase)/decrease of investments ------Total applications of capital funding (D) 0.06 (2.73) (0.89) 1.36 0.05 (2.39) 2.77 (0.22) (0.08) (0.39) (0.63) Surplus/(deficit) of capital funding (C-D) 16.57 2.76 4.75 5.55 6.26 2.05 5.74 (1.27) (1.96) (2.30) (2.31)

Funding balance (A-B) + (C-D) ------

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Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense ------less deferred/unfunded 0.03 0.02 0.02 0.02 0.03 0.02 0.02 0.02 0.02 0.02 0.02 Net funding transferred to renewals reserves 0.03 0.02 0.02 0.02 0.03 0.02 0.02 0.02 0.02 0.02 0.02

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Parks and Open Spaces

Why we do it response to the changing recreational needs of our What we do community, and provide new parks and reserves to NPDC’s strategic vision for a Sustainable Lifestyle support housing and other developments associated The Parks and Open Spaces team manages Capital is supported by five goals – partnerships, with population growth. a diverse range of parks, public spaces and delivery, community, sustainability and prosperity. These public assets in the district. goals (our community outcomes) promote the social, Open spaces and parks facilities encourage people to economic, environmental and cultural well-being of the district and hold a special place in the heart of those Our role is to provide, develop and maintain the New Plymouth District both now and for the future. who live here, with survey results showing 90 per cent NPDC’s recreational facilities and open spaces Our Parks and Open Spaces service contributes to all of of New Plymouth residents use open spaces year after under the Local Government Act 2002, the these goals. year. Our role in looking after these spaces enhances Reserves Management Act 1977 and the Resource community identity and pride, contributing to the Management Act 1991. Our assets and services There are a number of unique parks and open spaces lifestyle opportunities that attract people to the district include: in the district, including Taranaki Maunga, beaches, to work, live and play. walkways, rivers and streams, recreational trails, • Pukekura Park. neighbourhood parks, playgrounds, skateparks, sports • Brooklands Zoo. parks and cemeteries. Our open spaces, the mountain How we pay for it and the sea are important features that form part of Our service is funded through general rates and fees • 1,600 hectares of local, historic, coastal, the district’s identity and our urban parks and reserves esplanade and recreation reserves. and charges. Capital improvements are loan funded, include features of outstanding biodiversity. Our while renewal and replacement of assets is funded from • 49 playgrounds, 21 sports grounds and nine management and protection of the natural landscape, NPDC’s renewal reserves. skatepark sites. including untouched native bush, coastal areas and regenerating bushland, actively contributes to • 82 kilometres of walkways, including environmental well-being. Looking ahead 12.7 kilometres of Coastal Walkway. Increases in both our resident population and visitor This service contributes to social and cultural well- • Campgrounds. numbers will create more demand for more parks being through our support of community activities, • Public art and monuments. and open spaces and increase the number of people including providing spaces for community events and accessing facilities. • 50 public toilets. volunteering opportunities (such as planting our parks). • Street trees and urban streetscapes and pocket A range of other open spaces provide opportunities Growth areas for new developments and subdivision parks. to participate in recreation and sport, an essential part identified in both the Operative and Proposed District of many people’s lives, and a way to encourage and • A crematorium and 15 operational cemeteries. Plans will require new parks and open spaces to meet improve social interaction and cohesion. The district’s service level targets identified in our 30 year Open crematorium and cemeteries offer an appropriate and Space, Sport and Recreation Strategy (2015). NPDC also sensitive memorial space for families. works with property developers to ensure they provide adequate neighbourhood parks in their developments Maintaining quality campgrounds, leisure and sports and subdivisions, and that they allow continued public parks, and facilities for outdoor events contribute access to significant waterways. to economic well-being, supporting tourism and encouraging people to events in unique spaces, such as WOMAD at the Bowl of Brooklands. We have an agile

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Key Council facilities will require improvements to The impacts of climate change such as variable weather related to projected tourism increases and longer meet demand, customer expectations and changing patterns, an increased number of severe weather events summers associated with climate change. recreational needs. The district may also require new and rising sea levels could result in increased coastal facilities. An increasing population also means NPDC erosion, more plant growth and a potential increase in There will be LTP ongoing investigation and planning, will need to plan for increased demand for associated plant pests and diseases. Changes to legislation and in partnership with mana whenua, for Te Kohia in years infrastructure and services, such as toilets and carparks compliance requirements may also impact delivery of one to three of this plan to assist with future decisions in high use areas and visitor hotspots. We will continue this service, including costs. Managing these factors in relation to this project. to maintain existing parks and open spaces to a high is part of our long-term planning for parks and open standard, particularly as these facilities and amenities spaces. are used more frequently by a greater number of people. The changes we have made With people living longer and remaining more We have committed to increased funding for renewals. active, the use of recreational space is changing Operating expenditure has also increased to reflect and diversifying. This impacts both how facilities both historic and projected future growth. are used and the type of facilities in demand. Our ageing population means there is increased need for Capital expenditure projects to the value of $39.9m are accessibility in our parks and open spaces. Changes proposed over the life of this plan for improvements in technology will impact the way we deliver services, to meet service levels, and the associated additional including meeting expectations that connectivity and operating costs. real time information be available in parks, and even a demand for virtual parks. Technological changes may Planting our Place is a new programme introduced increase overall demand on our service, as people have to deliver on NPDC’s Climate Action Framework more leisure time available in the future. by improving benefit carbon sequestration and biodiversity in the district and will continue over the life Increased automation could also increase demand for of this plan. automated services within our operations. A planned strategic review of Brooklands Zoo will We have initiated a Planting our Place programme to enhance the zoo’s contribution to biodiversity and improve sequestration (removal of carbon dioxide from improve habitats and facilities. We will also look to the environment) and biodiversity across the district. secure additional external funding of around $3m to The programme aims to increase the level of indigenous complement and enhance any strategic upgrades to cover in the district from the current eight per cent, to Brooklands Zoo. the 10 per cent we need, which will require planting of a further 34 hectares over a 20 year period. Investment Two new public toilets are also due for construction. in biodiversity will continue over the life of this plan We will determine a suitable location in, or close to, the through our collaboration with Taranaki Regional New Plymouth CBD to construct a specialist accessible Council in an ongoing comprehensive programme of toilet facility in 2023/24. We also have incremental plant and animal pest control. increases planned for the cleaning of public toilet facilities, which is a response to increased demand

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Significant effects on community well-being Our service has significant positive effects on community well-being offering recreation and leisure opportunities, access to nature and a range of other benefits. Our contribution to environmental, social and economic well-being is outlined in the section ‘why we do it’. Potential negative effects of this service are identified in the following table.

Well-being Impact Social Existing design of parks and open space could lead to crime and injury. This is mitigated through best practice crime prevention and injury prevention through environmental design.

Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Maintain quality district parks, The percentage of residents satisfied with the 98% 95% 95% 95% 95% reserves and open spaces. quality of the district’s parks and reserves, including the Coastal Walkway and Pukekura Park (satisfaction survey*). The percentage of residents satisfied with the 96% 95% 95% 95% 95% quality of the district’s urban landscapes and streets (satisfaction survey*). The percentage of residents satisfied with the 89% 85% 85% 90% 95% quality of the district’s sports parks (satisfaction survey*). The percentage of residents satisfied with the 96% 95% 95% 95% 95% quality of the district’s playgrounds (satisfaction survey*). The percentage of Brooklands Zoo visitors 100% 90% 90% 90% 90% satisfied with the zoo (in-house survey). Maintain access to the district’s parks, The percentage of households in the district 84% 80% 80% 80% 80% reserves and open spaces. that are within 500 metres of a park, reserve or neighbourhood open space. Provide quality public toilets across The percentage of the community satisfied 87% 80% 80% 80% 80% the district. with the quality of the district’s public toilets (satisfaction survey*).

* All satisfaction survey targets are excluding ‘don’t know’ responses.

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Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 15.09 17.14 17.92 18.65 19.49 20.21 20.85 21.56 22.34 23.06 23.62 Targeted rates ------Subsidies and grants for operating purposes 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 Fees and charges 2.10 2.15 2.24 2.29 2.34 2.41 2.46 2.52 2.57 2.62 2.70 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 17.20 19.30 20.17 20.95 21.84 22.63 23.33 24.09 24.93 25.69 26.33

Applications of operating funding Payments to staff and suppliers (11.19) (11.84) (12.38) (12.90) (13.14) (13.16) (13.70) (13.98) (14.51) (14.95) (15.72) Finance costs (0.59) (0.56) (0.59) (0.59) (0.97) (1.17) (1.21) (1.23) (1.27) (1.27) (1.27) Internal charges and overheads applied (2.68) (2.62) (2.77) (3.02) (2.79) (3.11) (2.96) (3.20) (3.37) (3.50) (3.26) Other operating funding applications ------Total applications of operating funding (B) (14.45) (15.02) (15.74) (16.51) (16.90) (17.45) (17.87) (18.42) (19.15) (19.72) (20.25) Surplus/(deficit) of operating funding (A - B) 2.74 4.28 4.43 4.44 4.94 5.19 5.46 5.68 5.78 5.98 6.08

Sources of capital funding Subsidies and grants for capital expenditure - 1.50 1.54 0.05 ------Development and financial contributions 0.58 0.55 0.57 0.59 0.61 0.63 0.66 0.68 0.71 0.74 0.76 Increase/(decrease) in debt 0.64 0.46 1.56 8.25 5.30 1.92 3.30 1.21 0.93 0.56 0.03 Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 1.22 2.50 3.67 8.89 5.91 2.55 3.96 1.90 1.64 1.29 0.79

Applications of capital funding Capital expenditure: - to meet additional demand - (0.27) (0.55) (0.57) (0.84) (0.83) (0.78) (0.28) (0.52) (0.30) (0.30) - to improve the level of service (0.80) (2.98) (3.97) (9.25) (6.40) (3.27) (4.91) (3.59) (3.20) (3.28) (2.86) - to replace existing assets (1.52) (4.83) (3.82) (2.02) (3.39) (3.61) (2.30) (2.07) (2.09) (2.31) (5.33) (Increase)/decrease in reserves (1.64) 1.29 0.24 (1.49) (0.23) (0.03) (1.43) (1.63) (1.61) (1.39) 1.63 (Increase)/decrease of investments ------Total applications of capital funding (D) (3.96) (6.78) (8.10) (13.33) (10.85) (7.74) (9.41) (7.57) (7.42) (7.27) (6.87) Surplus/(deficit) of capital funding (C-D) (2.74) (4.28) (4.43) (4.44) (4.94) (5.19) (5.46) (5.68) (5.78) (5.98) (6.08)

Funding balance (A-B) + (C-D) ------

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Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 2.55 2.60 2.81 2.95 3.08 3.40 3.50 3.56 3.90 3.96 4.01 less deferred/unfunded (0.31) 0.94 0.77 0.56 0.53 0.23 0.23 0.14 (0.20) (0.26) (0.31) Net funding transferred to renewals reserves 2.24 3.54 3.58 3.51 3.62 3.64 3.73 3.70 3.70 3.70 3.70

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Kaitake Trail 5,174,150 1,509,000 1,545,150 2,120,000 ------Kawaroa to Belt Road cliff erosion and seawall 6,365,100 603,600 - 4,240,000 1,521,500 ------Urenui swing bridge renewal and erosion protection 1,771,687 261,560 1,510,127 ------Rotomanu water outlet 251,500 251,500 ------Brooklands Zoo strategic implementation 3,636,404 37,251 553,193 569,100 2,213,231 41,239 42,268 43,489 44,279 45,474 46,882 Te Rewa Rewa co-management plan implementation 515,050 - 515,050 ------Onaero Recreation Reserve improvements 1,048,278 - 339,933 349,800 358,545 ------Pukekura Park water quality 530,000 - - 530,000 ------Ōākura Cemetery extension development 64,660 - - 64,660 ------Accessible beach access to Three Sisters 31,800 - - 31,800 ------CBD strategy projects - implementation 11,729,996 - - - 1,552,142 1,591,000 1,630,714 1,671,428 1,714,857 1,761,142 1,808,714 Playground equipment renewal - Kawaroa Park 467,195 - - - 467,195 ------Accessible toilets - Accessibility Strategy 318,000 - - - 318,000 ------Rogan Street playground renewal 233,598 - - - 233,598 ------New play space development 673,952 - - - 217,989 225,171 230,792 - - - - Public toilets - Weld Road renewal 217,300 - - - 217,300 ------Urenui Cemetery extension 222,740 - - - - 222,740 - - - - - Inglewood link to Taranaki Traverse land purchase 684,900 - - - - - 684,900 - - - - Lepperton public toilets 399,525 - - - - - 399,525 - - - - Richmond Cottage seismic strengthening 171,225 - - - - - 171,225 - - - -

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Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Okato and Hickford Park playgrounds - sun shade sails 159,810 - - - - - 159,810 - - - - Ōākura Hall seismic strengthening 102,735 - - - - - 102,735 - - - - Inglewood Railway Station and yard land 947,700 ------947,700 - - - Vicarage seismic strengthening 300,100 ------300,100 - - Hall seismic strengthening 180,060 ------180,060 - -

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Puke Ariki and Community Libraries

What we do Why we do it Looking ahead NPDC’s strategic vision for a Sustainable Lifestyle Highly regarded by local, national and international We are an integrated knowledge hub Capital is supported by five goals – partnerships, visitors, the museum at Puke Ariki will continue to offer comprising a museum, a central library, five delivery, community, sustainability and prosperity. These services that contribute to the district as a premier community libraries, a mobile library, a digital goals (our community outcomes) promote the social, destination. We will continue to incorporate new library, and a visitor information centre. economic, environmental and cultural well-being of the developments in visitor engagement to maximise the New Plymouth District both now and for the future. exhibition experience. Puke Ariki and the community libraries provide access to a wealth of quality physical and digital The Puke Ariki and Community Libraries service We know that over 70 per cent of our museum visitors resources to both residents and visitors to the contributes to the goals of partnerships, delivery, are from Taranaki and we are committed to building region. We offer a range of knowledge, exhibitions, community and prosperity. Our exhibitions, heritage on this number. We will continue our long-term gallery experiences and information to meet the ever- collections, research facilities and public education refreshment programme, which includes regularly changing needs of our people. programmes foster connection and a collective sense of changing our heritage collection items, renewing identity in the community. We promote a strong sense appropriate exhibition furniture and integrating new Our programming is based on literacy and digital of Taranaki culture and identity, offering experiences technology. that nurture a greater understanding of Te Ao Māori, needs, and on learning experiences that meet and which contributes to social and cultural well-being in In a changing digital and technological world, our reflect the needs of our people. We offer space our community. library services and spaces are constantly evolving to for people to study and connect in a safe, neutral meet our customers’ expectations. An estimated 53 environment. Our dynamic people-orientated Our central and community library services build per cent of Puke Ariki’s heritage collection is currently facilities, protect and promote access to the knowledge, skills and literacy within the community available digitally and we are seeing an increasing heritage of the district and to the national heritage by providing learning opportunities to maximise the demand for these resources. We will meet this demand of Aotearoa New Zealand. potential and connection of our communities. This also by providing selected digital products and experiences contributes to prosperity and economic well-being. that enhance our existing programme as well as The i-SITE visitor information centre and store provides expanding the database. Part of this programme is valuable local knowledge that directs visitors to local the continual integration of new technology across all attractions and encourages them to spend time in the our library sites to ensure we are meeting community district. needs.

We also support and promote a range of local Our i-SITE is part of the nationwide visitor information businesses who contribute to a diverse economy and brand which is under review. The i-SITE Future Network support economic well-being. Strategy may impact on our i-SITE business model and operations. We expect to know the outcomes of the How we pay for it review by July 2021. Puke Ariki receives its funding from general rates, fees and charges, and sponsorship and grants.

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The changes we have made Significant effects on community We have recently undertaken high level strategic well-being planning for the development of our community Our service can have a range of effects on the libraries. Redevelopment of the Waitara community community. Many of the positive effects are outlined library is planned for years five and six and the in the section ‘why we do it’. There are no significant Bell Block community library for years 11 to 15 of negative effects identified from this activity NPDC’s Infrastructure Strategy. Our commitment to you What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Provide an accessible and informative The percentage of customers satisfied with 99% 98% 98% 98% 98% point of contact and booking service the i-SITE Visitor Information Centre (in-house (target 95%) for visitors to New Plymouth District. survey). Ensure library collections, including The number of items per capita is maintained. New measure 3 to 3.5 items 3 to 3.5 items 3 to 3.5 items 3 to 3.5 items digital resources, are available to meet the needs of the community. Number of annual physical visits Average customers per week. New measure 5,000 per week > previous year > previous year > previous year across Puke Ariki libraries (except during times of closure). Provide access to online information Free WiFi available and access to online New measure Free access at Free access at Free access at Free access at using public computing devices. information using public computers and all libraries all libraries all libraries all libraries customer devices is available. We offer widely accessible and The annual number of programmed learning 1,506 1,200 1,200 1,200 1,200 engaging education programmes and opportunities on offer. public and community programmes. The number of participants attending. 35,316 29,000 29,000 29,000 29,000 The percentage of participants satisfied with 97% 95% 95% 95% 95% programmes (in-house). Provide new, dynamic exhibitions Refresh of permanent galleries. New measure 1 1 1 1 regularly to ensure visitor Temporary exhibitions annually. New measure 2 2 2 2 engagement and repeat visits. Additional exhibitions per year in other Gallery New measure 4 4 4 4 spaces. Provide online access to the heritage Addition of digital product/experiences and New measure 4 4 4 4 collection through a variety of other digital platform exhibitions per year. platforms.

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Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 12.01 11.32 12.74 12.83 13.33 13.47 14.00 14.37 14.66 14.95 15.37 Targeted rates ------Subsidies and grants for operating purposes 0.30 0.56 0.56 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 Fees and charges 0.30 0.48 0.41 0.46 0.42 0.47 0.43 0.48 0.44 0.44 0.45 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 12.62 12.36 13.72 13.70 14.15 14.35 14.83 15.25 15.51 15.80 16.22

Applications of operating funding Payments to staff and suppliers (6.54) (6.64) (7.34) (7.60) (7.96) (7.91) (8.09) (8.31) (8.40) (8.59) (8.96) Finance costs (0.07) ------Internal charges and overheads applied (3.75) (3.32) (3.87) (3.60) (3.63) (3.80) (3.85) (3.95) (4.11) (4.21) (4.26) Other operating funding applications ------Total applications of operating funding (B) (10.37) (9.96) (11.21) (11.20) (11.59) (11.71) (11.94) (12.25) (12.51) (12.80) (13.22) Surplus/(deficit) of operating funding (A - B) 2.25 2.40 2.50 2.50 2.57 2.64 2.89 3.00 3.00 3.00 3.00

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions 0.16 ------Increase/(decrease) in debt 0.22 0.09 0.08 0.48 0.16 4.55 4.51 (0.19) (0.18) (0.16) (0.15) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 0.38 0.09 0.08 0.48 0.16 4.55 4.51 (0.19) (0.18) (0.16) (0.15)

Applications of capital funding Capital expenditure: - to meet additional demand - - - - - (0.80) (0.82) - - - - - to improve the level of service - (0.05) (0.10) (0.39) (0.04) (3.65) (3.74) - - - - - to replace existing assets (0.94) (1.38) (2.12) (2.35) (3.81) (2.85) (1.81) (1.77) (1.89) (1.94) (1.78) (Increase)/decrease in reserves (1.69) (1.06) (0.37) (0.25) 1.13 0.12 (1.03) (1.05) (0.93) (0.89) (1.06) (Increase)/decrease of investments ------Total applications of capital funding (D) (2.63) (2.49) (2.59) (2.98) (2.72) (7.19) (7.40) (2.81) (2.82) (2.83) (2.84) Surplus/(deficit) of capital funding (C-D) (2.25) (2.40) (2.50) (2.50) (2.57) (2.64) (2.89) (3.00) (3.00) (3.00) (3.00)

Funding balance (A-B) + (C-D) ------

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Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 2.08 2.08 2.20 2.21 2.21 2.51 2.60 2.60 2.82 2.82 2.82 less deferred/unfunded (0.10) 0.19 0.11 0.03 0.11 (0.14) (0.15) (0.18) (0.40) (0.40) (0.40) Net funding transferred to renewals reserves 1.98 2.27 2.31 2.24 2.32 2.36 2.45 2.42 2.42 2.42 2.42

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Waitara Library redevelopment 9,020,800 - - - - 4,454,800 4,566,000 - - - -

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Stormwater Management

What we do Why we do it Looking ahead NPDC’s strategic vision for a Sustainable Lifestyle Population growth in the district means urban areas Our service collects and disposes of stormwater Capital is supported by five goals – partnerships, are expanding, resulting in greater amounts of paved runoff from urban areas, and manages and delivery, community, sustainability and prosperity. These areas such as roads. Increased areas of paved land and maintains our stormwater network. goals (our community outcomes) promote the social, reduced areas of free draining grass or pasture leads economic, environmental and cultural well-being of the to increased stormwater runoff. This runoff has the New Plymouth District both now and for the future. potential to overwhelm existing stormwater systems, Stormwater is rainwater that flows from surfaces increasing the risk of flooding. Taranaki is predicted to such as rooves, gardens, footpaths and roads. An inadequate stormwater system can lead to ponding experience an increase in rainfall and high intensity NPDC’s stormwater drainage schemes include New of water. This can damage property, pose risks to storms related to climate change, which would also put people’s safety and create inflow into wastewater pipes, increased pressure on our existing stormwater systems. Plymouth, Bell Block, Waitara, Inglewood, Urenui, leading to wastewater overflows to the environment. Onaero, Lepperton, , Ōākura and Our service manages urban stormwater runoff by We know that in severe storms, flooding can make Okato. ensuring there is a consistent standard of design life difficult for people and businesses. It is important and protection to reduce these risks. This service that our stormwater systems can reliably manage also protects people and property from the effects increased runoff so that the effect of any flooding event To manage stormwater in the district we operate of stormwater runoff and localised flooding after a is minimised. Rules included in the District Plan place and maintain 312 kilometres of stormwater pipes, significant rainfall event. This work contributes to limits on how much of a property’s total land area can and a number of detention areas and engineered the goals of delivery, community, sustainability and be covered by buildings. The District Plan also requires wetlands. prosperity. all stormwater generated on a property to be disposed of onsite. Prior to development of new subdivisions, Effective stormwater management also protects NPDC works with property developers to make sure our natural waterways from the negative impacts the overland flowpaths of stormwater are considered in of pollution. Our planning for future challenges, design and planning. such as an increased rainfall and climate change, minimises potential risks to property and industry. We are investing in modelling to better predict We accommodate development associated with stormwater patterns and the effects of flooding in the population growth through providing new stormwater district. This will help us identify options for improving systems. All of this work supports social, economic and stormwater systems in those areas that need it. We will environmental well-being. use this information to develop a series of stormwater catchment management plans which will identify where development is risky and which techniques and options How we pay for it will be most effective in minimising future flooding. Our service is funded through general rates. Capital improvements are loan funded while renewal and Following a drinking water contamination event in replacement of assets comes from NPDC’s renewal Havelock North in 2016, central government has reserves. The replacement value of stormwater assets is launched a programme of water service delivery $347.5m. reform in New Zealand, with an expressed aim to develop larger water supply entities (for drinking

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Stormwater Management water, wastewater and stormwater). NPDC is providing Significant effects on community well-being information to central government and participating in a stimulus programme, accepting a $10.1m grant to Our service can have a range of effects on the community. Many of the positive effects are outlined in the section spend on three waters infrastructure. The Stormwater ‘why we do it’. Potential negative effects of the service are identified in the following table. Management service will receive about $2.5m of this stimulus programme. NPDC and the other two district Well-being Impact councils in Taranaki have reviewed proposed delivery Social and economic Existing systems may not be adequate to provide for increasingly heavy rain and may structures for new three water services, but have made lead to increased property damage and transport disruption. We mitigate this by no commitment to reform at this stage. ensuring a consistent standard of design and level of protection, and we are investing in modelling to assist in predicting impacts of flooding and options for improving The changes we have made systems in those areas that need it. Environmental and Discharge of stormwater can affect water quality. This is damaging to the environment Changes in this LTP include increased funding cultural and degrades iwi cultural values. We mitigate this by requiring onsite disposal of of renewals. There are also service level capital stormwater where possible, and by providing pond and wetland treatment facilities expenditure projects of $26.2m proposed over the life such as those at Peringa Park and Mangati Stream. of this plan. This expenditure includes a significant commitment to improving stormwater infrastructure within Waitara.

We will also build and maintain a stormwater network model to help us with future stormwater planning and decisions. This modelling requires additional funding for across years three to 10 of this plan. Other proposed stormwater projects include Egmont Road and stormwater upgrades at Govett Avenue, Doralto Road and South Road.

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Stormwater Management

Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Provide a stormwater management The number of flooding events in the district per 0 0 0 0 0 system that protects people and financial year. property. The number of habitable floors affected in each 0 1 or less 1 or less 1 or less 1 or less flooding event (per 1,000 properties connected to NPDC’s stormwater system). Comply with all resource consents The number of abatement notices received. 6 0 0 0 0 for discharges from our stormwater The number of infringement notices received. 0 0 0 0 0 system. The number of enforcement orders received. 0 0 0 0 0 The number of convictions received. 0 0 0 0 0 Respond to service requests in a The median response time to a flooding event 0.54 hours one hour one hour one hour one hour timely manner. (from the time that NPDC receives notification to the time service personnel reach the site). Ensure customers are satisfied with The number of complaints received about the 2.55 8 or less 8 or less 8 or less 7 or less the performance of our stormwater performance of NPDC’s stormwater system (per (target 7 or system. 1,000 properties connected). less)

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Stormwater Management

Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 1.81 2.26 2.84 4.48 10.43 10.26 12.73 10.80 10.93 11.04 11.14 Targeted rates ------Subsidies and grants for operating purposes ------Fees and charges 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 1.82 2.27 2.86 4.49 10.44 10.28 12.75 10.81 10.94 11.06 11.15

Applications of operating funding Payments to staff and suppliers (0.74) (0.78) (1.36) (1.69) (1.35) (1.40) (1.51) (1.27) (1.30) (1.34) (1.38) Finance costs (0.18) (0.16) (0.18) (0.18) (0.60) (0.78) (0.88) (0.90) (0.85) (0.81) (0.77) Internal charges and overheads applied (0.48) (0.66) (0.72) (0.74) (0.75) (0.80) (0.77) (0.78) (0.82) (0.84) (0.83) Other operating funding applications ------Total applications of operating funding (B) (1.40) (1.60) (2.26) (2.61) (2.70) (2.99) (3.16) (2.95) (2.97) (2.99) (2.99) Surplus/(deficit) of operating funding (A - B) 0.42 0.67 0.59 1.88 7.74 7.28 9.59 7.87 7.97 8.07 8.17

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions 0.23 0.32 0.33 0.35 0.36 0.37 0.39 0.40 0.42 0.43 0.45 Increase/(decrease) in debt 1.62 1.53 2.65 2.77 6.54 2.16 2.23 2.26 2.22 2.20 2.17 Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 1.85 1.85 2.99 3.11 6.90 2.53 2.62 2.66 2.64 2.63 2.62

Applications of capital funding Capital expenditure: - to meet additional demand (0.09) (0.18) (0.28) (1.09) (1.12) (1.12) (1.15) (1.18) (1.21) (1.24) (1.28) - to improve the level of service (1.54) (2.07) (3.11) (2.41) (6.23) (1.94) (1.99) (2.04) (2.09) (2.15) (2.20) - to replace existing assets (0.33) (0.51) (1.61) (2.86) (3.55) (4.90) (6.08) (6.33) (6.61) (6.94) (7.30) (Increase)/decrease in reserves (0.30) 0.24 1.42 1.37 (3.75) (1.85) (2.98) (0.98) (0.70) (0.37) (0.01) (Increase)/decrease of investments ------Total applications of capital funding (D) (2.27) (2.52) (3.58) (5.00) (14.64) (9.81) (12.20) (10.53) (10.61) (10.70) (10.79) Surplus/(deficit) of capital funding (C-D) (0.42) (0.67) (0.59) (1.88) (7.74) (7.28) (9.59) (7.87) (7.97) (8.07) (8.17)

Funding balance (A-B) + (C-D) ------

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Stormwater Management

Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 3.65 3.69 3.96 4.02 4.14 4.56 4.62 4.67 5.12 5.17 5.23 less deferred/unfunded (3.38) (3.43) (3.77) (2.53) 3.15 2.19 4.45 2.64 2.19 2.14 2.08 Net funding transferred to renewals reserves 0.27 0.27 0.19 1.49 7.29 6.75 9.06 7.31 7.31 7.31 7.31

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Waitara stormwater upgrades 20,188,890 2,030,108 3,103,735 2,181,857 2,186,440 1,670,550 1,712,250 1,755,000 1,800,600 1,849,200 1,899,150 Stormwater network modelling 9,271,000 - - 1,060,000 1,086,500 1,113,700 1,141,500 1,170,000 1,200,400 1,232,800 1,266,100 Egmont Road stormwater 2,824,900 - - - 2,824,900 ------Govett Avenue/Doralto Road/South Road stormwater upgrades 977,850 - - - 977,850 ------

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Transportation

What we do Why we do it How we pay for it NPDC’s strategic vision for a Sustainable Lifestyle Our service is funded through general rates, a Capital is supported by five goals – partnerships, targeted rate, and road user revenue collected and We manage an efficient transport network delivery, community, sustainability and prosperity. These distributed by Waka Kotahi NZ Transport Agency. enabling the safe and effective movement of goals (our community outcomes) promote the social, Capital improvements are loan funded, while asset people, goods and services around the district. economic, environmental and cultural well-being of renewals and replacements are funded from renewal the New Plymouth District both now and for the future. reserves and financial assistance, such as subsidies. The Providing a transport network that enables access for replacement value of roading assets is $1 billion. Transportation operates and maintains the people, goods and services both across the district and district’s existing transport network, and plans and in and out of the region contributes to all of these goals. prepares for future growth and development in Looking ahead the district. Our service enables safe travel for vehicles while The district’s growing population means we can expect providing and promoting alternative transportation for an increase in the flow of both goods and people on the cyclists and pedestrians. Our work actively contributes district’s transportation networks. This is likely to result Working within a complex mix of policy, to social, environmental and economic well-being in greater wear on roads, increase the risk of crashes legislation, and national and regional strategies, in the district. Well designed and maintained roads and congestion, and create user frustration in peak we develop, maintain and renew assets in the and footpaths offer safe public places, promoting periods, especially on key corridors. As more lifestyle network. We also conduct traffic management community cohesion and a sense of place. Our properties develop in rural areas, people will expect on all roads except state highways. Our service ongoing planning and development of walking improvements to rural roads. There is already a greater and cycling networks, and our support of public includes: number of heavy vehicles on our roads, accelerating transport contributes to environmental well-being by damage and risk in some places. • 1,285 kilometres of roads. encouraging a reduction in private vehicle use and the associated carbon emissions. Providing and maintaining We know there are limitations to our existing network, • 521 kilometres of footpaths. quality roads and footpaths also supports industry and and that some key and strategic arterial routes will not • 166 bridges and 97 culverts development, contributing to economic well-being. support future growth in the district. For example, the one way state highway system creates a separation • Over 8,000 street lights. Our network planning requires partnerships with between the Central Business District and urban New • Over 11,000 traffic signs. tangata whenua and other transport network owners Plymouth. Additionally, the single crossing point over such as the Taranaki Regional Council and our funding the Waiwhakaiho River via State Highway 3 restricts • Five tunnels. partner, Waka Kotahi NZ Transport Agency. This work is movement from east to west. New Plymouth also risks • Cycleways, bus shelters, traffic lights, and traffic about future proofing, safety and preparing for growth, disconnection from the north should the river crossing all of which contributes to community well-being now management. fail. Roading infrastructure can also be impacted by and in the future. extreme weather events which are predicted to occur more regularly as a result of climate change.

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Transportation

With population growth expected to result in new Significant effects on community well-being subdivisions on urban fringes, and more intensive living within New Plymouth’s urban boundary, we will Our service can have a range of effects on the community. Many of the positive effects are outlined in the section be using modelling to understand the implications ‘why we do it’. Potential negative effects of the service are identified in the following table. of growth on our service. We will use this research to provide for the movement of people and goods at peak Well-being Impact times, ensuring travel time is not adversely affected Social When there are limited opportunities for vulnerable users to cross major roads and as the population and economy grows. As part of this access community facilities such as schools and parks the transport network can sever network modelling, we will also consider a second communities. We mitigate this by providing safe pedestrian crossing facilities on crossing of the Waiwhakaiho River, and investigate east desirable routes, by delivering education programmes to schools, and by continued to west routing options. investment in a well connected, sustainable transport network. Economic The cost of maintaining and operating the transport network is increasing. We mitigate In response to population growth, an ageing this by preparing the Transportation Asset Management Plan which aligns to good population, new subdivisions on urban fringes, and practice asset management principles. a growing expectation for improved alternative transport, we will also invest in cycling and pedestrian Environmental By maintaining safe roads we are supporting the use of motor vehicles. The use of facilities and bus services. This will improve provisions these vehicles has a negative impact on the environment and can impact health for alternative modes of transport, including mobility outcomes. We mitigate this by developing infrastructure that will support a shift to scooters, to ensure the network is safe for all users. sustainable transport modes. We also offer education around sustainable transport We will also continue to maintain and upgrade such as the Let’s Go campaign. infrastructure to keep the network operating, and Cultural Construction of transport projects has the potential to impact on cultural values. This provide additional capacity where needed. is mitigated by engaging effectively with iwi and others when proposing transport options. The changes we have made We have committed to increase the funding of renewals. Service level capital expenditure projects of $74.6m are proposed over the life of this plan.

This includes improvement projects in walking and cycling provisions, in bridges, bridge barriers and tunnels, and in overall road safety.

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Transportation

Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Provide a local roading network that The change from the previous financial year 25 Reducing Reducing Reducing 40% reduction is safe for all road users. in the number of fatality and serious injury from 2019/20 crashes on the district’s local roading network. baseline Provide good quality district roads. The average quality of ride on the district’s 85% 88% 89% 90% 90% sealed local road network, as measured by smooth travel exposure. The percentage of residents satisfied with the 81% 85% 85% 85% 85% overall quality of the district’s roads (satisfaction survey*). Appropriately maintain the district’s The minimum percentage of the sealed local 4% 4% 4% 4% 4% sealed roads. road network that is resurfaced. Provide a high quality and safe The percentage of footpaths that meet the 88% More than 90% More than 90% More than 90% More than 90% footpath network. levels of service and service standards in of footpath of footpath of footpath of footpath current condition surveys, as set out in the length surveyed length surveyed length surveyed length surveyed Transportation Asset Management Plan. in good or in good or in good or in good or excellent excellent excellent excellent condition condition condition condition Footpath length recorded as failed. 0.3% Less than 1% of Less than 1% of Less than 1% of Less than 1% of footpath length footpath length footpath length footpath length recorded as recorded as recorded as recorded as failed failed failed failed Respond to service requests in a The percentage of roading and footpath related 98% 95% 95% 95% 95% timely manner. customer service requests responded to within target timeframes.1 Provide a quality and safe cycle The percentage of residents satisfied with the 84% 85% 85% 85% 85% network. quality and safety of the district’s cycle network (satisfaction survey*).

1 Service request timeframes: • one day for an electrical fault with traffic signals, flooding, diesel spills, chemical spills or a slip to be cleared. • three days for street lighting faults and potholes. • five days for traffic counts, bus shelter repairs, road marking enquiries, culvert maintenance, rubbish bins, reinstatement of footpaths and debris in the roadside channel. • ten days for road surface faults, kerb and channel repairs, new kerb and channel, missing road signs and vegetation clearing. * All satisfaction survey targets are excluding ‘don’t know’ responses.

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Transportation

Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 9.63 14.27 15.12 15.40 16.53 17.78 18.75 19.02 19.63 19.82 19.87 Targeted rates 4.39 4.45 4.61 4.79 4.95 5.13 5.31 5.49 5.69 5.90 6.11 Subsidies and grants for operating purposes 4.11 5.83 4.59 4.37 5.36 5.58 5.71 5.77 5.96 6.28 6.60 Fees and charges 0.35 0.85 1.53 1.58 1.63 1.69 1.74 1.80 1.86 1.92 1.99 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts 0.53 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 Total operating funding (A) 19.02 25.97 26.42 26.72 29.04 30.75 32.08 32.66 33.72 34.50 35.15

Applications of operating funding Payments to staff and suppliers (9.32) (13.03) (13.12) (12.62) (12.58) (13.07) (13.32) (13.51) (13.92) (14.54) (15.25) Finance costs (1.01) (1.09) (1.63) (2.10) (2.72) (3.27) (3.91) (4.34) (4.73) (4.78) (4.81) Internal charges and overheads applied (2.44) (3.28) (3.77) (3.93) (3.92) (4.22) (4.02) (4.11) (4.36) (4.47) (4.39) Other operating funding applications ------Total applications of operating funding (B) (12.77) (17.41) (18.51) (18.65) (19.21) (20.56) (21.25) (21.96) (23.02) (23.79) (24.45) Surplus/(deficit) of operating funding (A - B) 6.25 8.57 7.91 8.08 9.83 10.19 10.83 10.70 10.70 10.70 10.70

Sources of capital funding Subsidies and grants for capital expenditure 8.63 10.38 9.82 11.17 10.11 14.02 13.31 10.46 8.34 8.29 7.83 Development and financial contributions 0.32 0.09 0.09 0.10 0.10 0.11 0.11 0.11 0.12 0.12 0.13 Increase/(decrease) in debt 3.03 4.61 8.29 10.64 6.28 5.45 4.62 0.77 (1.19) (1.14) (0.95) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 11.98 15.08 18.21 21.91 16.49 19.58 18.04 11.34 7.27 7.28 7.01

Applications of capital funding Capital expenditure: - to meet additional demand (1.44) (1.08) (1.49) (1.90) (2.03) (1.92) (1.84) (1.03) (0.48) (0.50) (0.57) - to improve the level of service (4.66) (7.09) (14.06) (16.61) (10.12) (12.40) (11.44) (5.13) (1.65) (1.70) (1.84) - to replace existing assets (16.62) (16.06) (14.43) (16.61) (13.37) (15.55) (15.53) (16.26) (16.06) (15.96) (15.05) (Increase)/decrease in reserves 4.48 0.59 3.85 5.13 (0.80) 0.10 (0.07) 0.38 0.22 0.18 (0.26) (Increase)/decrease of investments ------Total applications of capital funding (D) (18.23) (23.65) (26.13) (29.99) (26.32) (29.77) (28.88) (22.05) (17.97) (17.98) (17.71) Surplus/(deficit) of capital funding (C-D) (6.25) (8.57) (7.91) (8.08) (9.83) (10.19) (10.83) (10.70) (10.70) (10.70) (10.70)

Funding balance (A-B) + (C-D) ------

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Transportation

Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 11.30 11.39 12.29 12.53 12.75 14.06 14.28 14.41 15.72 15.76 15.80 less deferred/unfunded (6.10) (3.85) (4.62) (5.07) (5.13) (6.26) (6.25) (6.46) (7.77) (7.81) (7.85) Net funding transferred to renewals reserves 5.19 7.54 7.66 7.46 7.61 7.81 8.03 7.95 7.95 7.95 7.95

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Coastal Walkway extension to Waitara 28,310,399 3,892,214 3,976,186 5,893,600 2,987,875 5,145,294 6,415,230 - - - - Te Rewa Rewa bridge repaint 1,509,000 1,509,000 ------David Street - Tukapa Street signalisation 784,680 784,680 ------Mangorei Road (Tupuhi Place to Mangorei School) kerb and 251,500 251,500 ------channel Waiwhakaiho pedestrian bridge to The Valley 1,309,763 150,900 1,158,863 ------Lorna Street - Devon St West signalisation 744,413 100,600 643,813 ------Parklands Avenue - Mangati Road intersection roundabout 100,600 100,600 ------Hobson Street - Devon St East intersection improvements 657,095 90,540 566,555 ------Gover Street - Liardet Street central block traffic calming 2,175,456 70,420 880,736 789,700 434,600 ------Brois Street - Govett Avenue intersection roundabout 65,390 65,390 ------Bayly Street kerbing and drainage improvements (Waitara) 761,069 50,300 710,769 ------SH3 Inglewood pedestrian crossing signals 436,829 40,240 396,589 ------Inglewood Windsor Walkway safety improvements 339,210 30,180 309,030 ------Mill Road (Harris - Huatoki Reserve) walking improvements 25,150 25,150 ------Dixon Street to Corbett Park Walkway 824,080 - 824,080 ------Raleigh Street - Tate Road intersection 327,5554 - 36,054 291,500 ------Airport Drive - Parklands Avenue intersection 2,689,750 - - 1,060,000 1,629,750 ------

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Transportation

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Brooklands Road - Hori Street - Upjohn Street intersection safety 1,442,169 - 710,769 731,400 ------improvements Village placemaking 463,545 - 463,545 ------Tukapa Street - Saunders Avenue intersection traffic signalisation 453,244 - 453,244 ------Otararoa Road geometric improvement 522,525 - 257,525 265,000 ------Pohutukawa Place walking and drainage improvements 226,622 - 226,622 ------Waitara festive lighting 206,020 - 206,020 ------Belair Avenue - Omata Road intersection roundabout 1,395,733 - 123,612 1,267,145 4,976 ------Colson Road extension (Smart Road - Egmont Road) 4,442,158 - 103,010 - 162,975 751,748 1,084,425 2,340,000 - - - Wairau Road footpath 82,408 - 82,408 ------Sisson Terrace widening 67,987 - 67,987 ------Wills Road widening 507,455 - 46,355 461,100 ------Welcome to Waitara signage 25,753 - 25,753 ------Junction Street bridge upgrade 2,581,100 - - 2,581,100 ------Waitaha Stream underpass 742,000 - - 742,000 ------Surrey Hill Road, Kaitake Trail (Wairau Road to Kaitake Road) 678,400 - - 678,400 ------Surrey Hill Road, Kaitake Trail (Kaitake Road to trail entrance) 583,000 - - 583,000 ------Devon St East - Currie Street intersection improvements 174,900 - - 174,900 ------Henwood Road bridge (over SH3) traffic signalisation 541,925 - - 53,000 488,925 ------North Egmont carpark 1,195,150 - - - 1,195,150 ------Waiwhakaiho cycleway (Mangorei Road to Lake Mangamahoe) 1,072,598 - - - 529,669 542,929 - - - - - Huatoki Street shared pathway (Vogeltown School - Brois Street) 434,600 - - - 434,600 ------Breakwater Road - Ngamotu Road - Centennial Avenue intersection 271,651 - - - 270,588 1,063 - - - - - improvements Huatoki Street bridge upgrade 1,610,241 - - - 184,705 1,425,536 - - - - - Upjohn Street shared pathway (Evelyn Street - Brooklands Road) 1,234,491 - - - 157,543 1,076,948 - - - - - Coronation Avenue - Rogan Street intersection traffic signals 1,254,945 - - - 141,245 1,113,700 - - - - - Clemow Road cycleway (Rotokare - Devon St East) 1,010,340 - - - 124,948 885,392 - - - - - Inglewood CBD upgrade 108,650 - - - 108,650 ------Cumberland Street (Arawa Street - Heta Road) shared pathway 86,920 - - - 86,920 ------Morley Street - Vivian Street intersection traffic signalisation 501,165 - - - - 501,165 - - - - - Record Street shared pathway (Clemow Road to Coastal Walkway) 1,525,580 - - - - 161,487 1,364,093 - - - - Bishop Road extension (Egmont Road - Henwood Road) 3,430,643 - - - - 94,665 1,580,978 1,755,000 - - - Cumberland Street - Coronation Avenue intersection traffic signal 654,895 - - - - 48,893 606,002 - - - - Elliot Street precinct 142,688 - - - - - 142,688 - - - -

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Venues and Events

What we do Why we do it How we pay for it NPDC’s strategic vision for a Sustainable Lifestyle Our service is funded through general rates, user fees We attract and manage a diverse range of Capital is supported by five goals – partnerships, and charges, grants and donations, and sponsorship. events in the district, manage Council-owned delivery, community, sustainability and prosperity. These venues and operate and manage the district goals (our community outcomes) promote the social, Looking ahead pools. economic, environmental and cultural well-being of the New Plymouth District both now and for the future. The The Venues and Events service will be challenged by Our Events team plans and delivers the annual Venues and Events service plays an important part in a number of factors during the life of this plan. These TSB Festival of Lights, the Home and Lifestyle Expo achieving NPDC’s strategic vision. include an increasing population, an ageing population, and a number of civic and community events, an increased number of visitors to the district as a including local Waitangi Day celebrations. We also The Venues and Events service supports an innovative tourist destination, and ageing infrastructure. Other facilitate a number local events in other parts of and resilient district. Our strong operational excellence challenges relate to customer expectations, user the district. and quality infrastructure means we provide a viable, satisfaction, meeting safety standards and providing sustainable and accessible service, contributing to accessibility. We also secure and manage a diverse programme the goals of community and prosperity. Our diverse programme of high quality and affordable events of events at the TSB Bowl of Brooklands, TSB Community use of the Todd Energy Aquatic Centre is and activities offers opportunities for our community very high and congested during peak times, particularly Showplace, TSB Stadium and Yarrow Stadium. All to participate or spectate, to be creative, active and throughout the winter months when the outdoor pool of our events work is aligned with, and supportive connected in a safe and inclusive environment, all of is closed. Meeting customer expectations is not always of, the 2020-2030 Taranaki Regional Events Strategy. which supports social and cultural well-being. possible, especially in relation to the indoor pool. Our ageing population will also create more demand This service is also responsible for the Todd Energy We also build and nurture strong partnerships with our for accessibility, and pool heating for all seasonal Aquatic Centre and other community pools. The sponsors and naming rights partners, funding bodies, community pools, including the flagship Todd Energy Aquatic Centre provides for a range of ages and relevant central government agencies, related industry Aquatic Centre. Meeting these demands requires a activities, including learn to swim and fitness bodies, tangata whenua and private enterprise. Taking strong programme of capital renewal and operational classes. The district’s four community pools are advantage of funding, cost reduction or programme maintenance. seasonal, operating over the summer months. opportunities ensures our facilities and activities offer NPDC also provides financial support for the high quality experiences for our community. Improvements to highways and the redevelopment Bell Block Community Pool. of our airport has created better access to the region, Presenting major concerts, and sports and other events which may increase visitor numbers and provide attracts visitors to the district, supporting diversification opportunities to secure more events. There is increased in the tourism market and a prosperous local economy. competition from other regions in attracting major Venues and events engage a significant number of local events. This means we need to ensure we have the suppliers and casual staff, all of which contributes to operational capability and staff to manage and deliver economic growth and prosperity in the district. new business and meet changes in industry standards.

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Currently the TSB Stadium and TSB Showplace are The changes we have made operating at close to full capacity. Yarrow Stadium is expected to return to full operations in 2023/24. The Service level capital expenditure projects of $36.7m are proposed over the life of this plan, with $38.5m going reintroduction of Yarrow Stadium to full operational toward building a multi-sport hub. Construction of the hub building is planned to commence in year four. capability will have a positive impact on the events calendar. Our programme of events aims to meet community demand for more diverse and inclusive content. This will continue, with a stronger focus on joint ventures with local and national event organisers post Covid-19. There is a shortfall in the district’s sporting facilities, A New Year’s Eve event initiated in 2020 will be continued into this LTP 2021-2031, with 50 per cent of costs funded particularly in indoor court space, movement facilities through sponsorship. Plans for a winter event are also included. Yarrow Stadium will return to full operations in (such as gym sports) and specialist turf facilities. 2023/24. There are significant benefits to combining a range of sport facilities in a single multi-use location. NPDC is Significant effects on community well-being contributing funding toward a multi-sport hub which would provide opportunities to attract events such as Our service can have a range of effects on the community. Many of the positive effects are outlined in the section tournaments, and support the wider community to be ‘why we do it’. Potential negative effects of the service are identified in the following table. active and healthy. Well-being Impact Feedback from the community includes requests for Social There is a risk of inappropriate behaviour associated with patrons of events such as a wider seasonal spread of events, family focused vandalism or other incidents. NPDC works closely with the Police and contracted New Year’s Eve events, and expansion of the Festival security providers to ensure risk assessments and planning for major events includes of the Lights to include the Central Business District. appropriate security arrangements. Communities in the district’s smaller centres have also Environmental Staging events can create noise, traffic congestion, and the inconvenience of road requested expansion of events activities to include their closures. All events are managed within existing resource consent conditions. All major towns. event planning includes traffic management plans and all road closures are approved by NPDC after the community has been notified and consulted. Our heavy reliance on sponsorship to support our service is a challenge in a fiscally constrained Events can also generate additional waste. This is mitigated by a zero waste policy environment. The events activity is committed to for all major events. Recycling receptacles are provided at all NPDC event venues to growing a highly successful community events minimise the residual waste. programme that meets community expectations and attracts sponsorship and other funding in a competitive There are risks associated with water safety and hygiene at our district pools. market. We maintain water safety and hygiene at the district pools by ensuring staff are appropriately trained and that we consistently meet Poolsafe accreditation standards.

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Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Provide high quality pools that The percentage of residents satisfied with 97% 94% 94% 95% 98% encourage community participation NPDC’s swimming facilities (satisfaction survey*). in aquatic activities. The number of pool patrons per year. 325,520 390,000 390,000 390,000 390,000 Provide a range of appealing events The percentage of residents satisfied with 95% 95% 95% 95% 96% at high quality venues. NPDC’s events (satisfaction survey*). The percentage of residents satisfied with 93% 93% 93% 94% 95% NPDC’s events venues (satisfaction survey*). Provide a network of high quality The number of attendees and events/bookings 241,246 260,000 280,000 280,000 300,000 venues that create opportunities across all venues. attendees attendees attendees attendees for the community to attend arts, cultural, sporting and recreation 998 1,000 events 1,000 events 1,000 events 1,200 events activities.

* All satisfaction survey targets are excluding ‘don’t know’ responses.

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Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 9.44 8.72 9.53 10.48 11.38 12.12 13.88 15.23 16.39 17.47 18.60 Targeted rates ------Subsidies and grants for operating purposes 0.71 0.82 0.84 1.01 1.21 1.04 1.01 1.21 1.03 1.03 1.23 Fees and charges 2.13 3.44 4.39 4.73 5.20 4.94 5.10 5.57 5.33 5.46 5.98 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 12.28 12.97 14.76 16.22 17.79 18.09 19.99 22.01 22.75 23.96 25.81

Applications of operating funding Payments to staff and suppliers (8.02) (8.44) (10.12) (11.34) (12.26) (11.56) (12.64) (14.27) (14.61) (15.59) (17.63) Finance costs (0.08) - - - (0.54) (0.84) (1.13) (1.35) (1.35) (1.35) (1.35) Internal charges and overheads applied (3.49) (2.61) (2.70) (2.82) (2.77) (2.88) (2.94) (2.97) (3.14) (3.37) (3.17) Other operating funding applications ------Total applications of operating funding (B) (11.59) (11.05) (12.81) (14.16) (15.58) (15.27) (16.71) (18.59) (19.09) (20.30) (22.15) Surplus/(deficit) of operating funding (A - B) 0.69 1.92 1.95 2.06 2.21 2.82 3.29 3.43 3.66 3.66 3.66

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions - 0.03 0.03 0.03 0.03 0.04 0.04 0.04 0.04 0.04 0.04 Increase/(decrease) in debt 0.95 0.07 2.92 6.17 10.25 8.91 3.29 4.59 (1.68) (1.68) (1.68) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 0.95 0.10 2.95 6.20 10.28 8.94 3.33 4.63 (1.64) (1.64) (1.63)

Applications of capital funding Capital expenditure: - to meet additional demand - (0.07) (0.35) (0.71) (1.41) (1.36) (0.64) (0.85) - - - - to improve the level of service (0.01) (0.55) (3.01) (5.73) (9.35) (8.50) (4.00) (5.27) (0.08) (0.08) (0.08) - to replace existing assets (0.61) (2.12) (1.14) (1.23) (1.12) (0.86) (1.30) (0.86) (1.74) (0.75) (1.48) (Increase)/decrease in reserves (1.02) 0.72 (0.40) (0.58) (0.62) (1.03) (0.67) (1.08) (0.21) (1.20) (0.46) (Increase)/decrease of investments ------Total applications of capital funding (D) (1.64) (2.02) (4.90) (8.26) (12.50) (11.76) (6.61) (8.06) (2.02) (2.02) (2.02) Surplus/(deficit) of capital funding (C-D) (0.69) (1.92) (1.95) (2.06) (2.21) (2.82) (3.29) (3.43) (3.66) (3.66) (3.66)

Funding balance (A-B) + (C-D) ------

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Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 1.38 1.39 1.53 1.65 1.85 2.18 2.24 2.32 2.44 2.44 2.44 less deferred/unfunded 0.25 0.44 0.33 0.16 0.05 (0.28) (0.27) (0.38) (0.50) (0.50) (0.50) Net funding transferred to renewals reserves 1.64 1.83 1.86 1.81 1.90 1.90 1.97 1.95 1.95 1.95 1.95

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Multi-sport hub 38,455,982 503,000 2,484,560 5,106,557 10,037,758 9,716,220 4,571,321 6,036,566 - - - Fitzroy Pool accessibility upgrade 153,310 50,300 103,010 ------TSB Showplace Level 1 stalls upgrade 1,254,060 - 618,060 636,000 ------Furnishing and fittings for Yarrow Stadium redevelopment 530,000 - - 530,000 ------Okato Pool accessibility upgrade 159,000 - - 159,000 ------TSB Stadium scoreboards 137,800 - - 137,800 ------Todd Energy Aquatic Centre service level improvements 597,575 - - - 597,575 ------Inglewood pool shading 77,959 - - - - 77,959 - - - - - TSB Showplace - TSB Theatre seats replacement 840,280 ------840,280 - -

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Waste Management and Minimisation

What we do Why we do it How we pay for it NPDC’s strategic vision for a Sustainable Lifestyle Our service is funded through general rates, a targeted We promote zero waste and waste minimisation Capital is supported by five goals –partnerships, rate (kerbside collection), waste levies, revenue from the in the district. We also manage kerbside delivery, community, sustainability and prosperity. These sale of recyclable commodities and from user charges at collection, and operate four rural transfer goals (our community outcomes) promote the social, our transfer stations and the Resource Recovery Facility. stations and the New Plymouth Resource economic, environmental and cultural well-being of the Recovery Facility. New Plymouth District both now and for the future. Our Capital improvements are funded from development service actively contributes to all these goals. reserves, while the renewal and replacement of assets is Our kerbside contractors collect around 6,000 funded from NPDC’s renewal reserves. tonnes of recyclable materials, 1,600 tonnes of Our service supports households and businesses to food scraps and 6,500 tonnes of landfill waste minimise the amount of waste disposed to landfill. Looking ahead from more than 29,500 residential premises (and Our kerbside collection services enable people to schools) in defined areas of the district each year. easily and conveniently divert waste from landfill. We The community has expressed a strong desire for also deliver services to recover valuable resources NPDC to lead waste reduction and sustainable use of The Resource Recovery Facility and our four rural from waste disposed to landfill, for reuse or recycling resources in the district. As a result we have adopted without significant impact on the environment and transfer stations handle non-hazardous solid waste, Zero Waste 2040, an aspirational goal to have no public health, all of which contributes to the social and rubbish or waste going into our landfill by 2040. including around 500 tonnes of green waste, 1,000 environmental well-being of our community. tonnes of recyclable materials and 16,700 tonnes of New Plymouth’s growing population may result in an landfill waste per year. Encouraging waste minimisation and better waste increased volume of waste generated in the district. At management practices also supports sustainability, the same time, the costs of disposing waste to landfill The Resource Recovery Facility includes the protecting the environment for current and future are increasing. New waste related infrastructure and Junction Zero Waste Hub and a transfer station generations. This includes the 2020 closure of the services will focus on cost effective ways to reduce, run by a private operator. This facility also accepts Colson Road Landfill, which is currently being capped to reuse and recycle household and commercial waste. 2,500 tonnes of recycling from the Stratford and an environmentally acceptable standard and managed This includes expanding services at the Junction Zero South Taranaki districts. The Junction Zero Waste alongside other closed landfills in the district. Waste Hub and commercial and industrial material Hub diverts more than 40 tonnes of reusable or recovery facility. upcycled items and provides over 52 education We work in partnership with community organisations tours and workshops per year. The facility’s transfer to deliver contracts at The Junction Zero Waste Hub. Research indicates a link between volumes of waste station also accepts electronic waste for recycling We also offer opportunities for businesses to provide going to landfill and economic performance, with and consolidates and transports landfill waste to a services that complement those of NPDC. This higher levels of waste gong to landfill linked to Class 1 landfill outside the Taranaki Region. encourages and supports new business, contributing to improved economic performance. We will be looking economic well-being. to implement plans for increased waste minimisation in We deliver behaviour change and waste the district, which will decouple the region’s economic minimisation educational programmes to various performance with unacceptable increases in the volume communities, businesses and schools across the of waste going to landfill. district, focusing on waste reduction, reuse and recycling.

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We have made progress on a number of initiatives Significant effects on community well-being targeted toward our goals of zero waste, as per our 2017 Waste Management and Minimisation Plan. Over Our service can have a range of effects on the community. Many of the positive effects are outlined in the section the next three years we plan to: ‘why we do it’. Potential negative effects are identified in the following table.

• Expand our infrastructure and services to provide Well-being Impact waste minimisation services for the commercial Social The increased cost of waste disposal may result in inappropriate disposal of waste sector. through illegal dumping. We mitigate this through our community engagement • Increase community engagement through the programmes and increased accessibility of services. reuse and upcycling of waste, and behaviour Economic There is an increasing cost of waste disposal that can affect households and businesses, change programmes. but we mitigate this by providing accessible, cost effective reuse and recycling • Improve local recycling locally (how we do it and alternatives to landfill disposal. what we recycle), and renew our regional waste Environmental The disposal of solid waste in landfills has the potential to release substances including service contract. greenhouse gases and leachate, causing harm to the environment and community. We mitigate this by firstly aiming to divert materials from landfill. When landfilled we • Implement a zero waste action plan for NPDC minimise such negative effects through the use of a landfill with best management facilities and procurement. practice to minimise impacts on the environment. • Review the 2017 Waste Management and Cultural The disposal of waste to landfill also has the potential to impact on cultural values, Minimisation Plan (review planned for 2023). but this is mitigated through best practice landfill management, as well as increased • Investigate the frequency and impact of illegal engagement with different cultures on waste minimisation options. dumping and ways to reduce it.

The changes we have made To deliver on the 2017 Waste Management and Minimisation Plan, service level capital expenditure projects of $7.1m are proposed over the life of this plan. This includes establishing a commercial and industrial material recycling facility in year one, and constructing a permanent building for The Junction Zero Waste Hub recycling facility in year two. We will also establish an organic processing facility in years two and three. Colson Road Landfill closure works will be completed in year one.

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Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Encourage district-wide waste The reduction in total landfill waste generated New measure 1% 5%1 10% 5% minimisation. per capita in the district (measured as a year on year percentage). The reduction in landfill waste generated 4% 5% 5% 5% 5% per household (measured as a year on year (target 10%) percentage). Comply with all resource consents The number of abatement notices received. 0 0 0 0 0 related to waste management and The number of infringement notices received. 0 0 0 0 0 minimisation. The number of enforcement orders received. 0 0 0 0 0 The number of convictions received. 0 0 0 0 0 Ensure customers are satisfied The number of complaints about the Council’s 1.92 2 or less 2 or less 2 or less 2 or less with our waste management and waste management and minimisation service minimisation service. received (per 1,000 customers).

1 Commencement of Commercial and Industrial Materials Recovery Facility.

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Waste Management and Minimisation

Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 2.83 4.10 3.93 3.93 3.98 4.13 4.30 4.39 4.68 5.00 5.14 Targeted rates 4.94 5.07 5.21 5.57 5.87 5.99 6.18 6.37 6.58 6.80 7.02 Subsidies and grants for operating purposes ------Fees and charges 2.52 3.18 7.68 8.53 8.97 9.08 9.18 9.31 9.44 9.53 9.68 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 10.30 12.35 16.82 18.03 18.82 19.20 19.66 20.07 20.70 21.33 21.85

Applications of operating funding Payments to staff and suppliers (8.80) (10.08) (13.94) (14.69) (15.37) (15.82) (16.22) (16.62) (17.13) (17.71) (18.24) Finance costs (0.12) ------Internal charges and overheads applied (1.32) (1.76) (2.04) (2.08) (2.10) (2.15) (2.17) (2.18) (2.30) (2.35) (2.35) Other operating funding applications ------Total applications of operating funding (B) (10.25) (11.84) (15.99) (16.77) (17.47) (17.98) (18.38) (18.81) (19.43) (20.06) (20.58) Surplus/(deficit) of operating funding (A - B) 0.05 0.51 0.83 1.26 1.35 1.22 1.28 1.27 1.27 1.27 1.27

Sources of capital funding Subsidies and grants for capital expenditure - 0.42 ------Development and financial contributions ------Increase/(decrease) in debt 0.05 (0.22) (0.16) (0.22) (0.23) (0.25) (0.26) (0.24) (0.24) (0.24) (0.24) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 0.05 0.20 (0.16) (0.22) (0.23) (0.25) (0.26) (0.24) (0.24) (0.24) (0.24)

Applications of capital funding Capital expenditure: - to meet additional demand ------to improve the level of service (0.05) (1.27) (3.97) (0.63) (0.05) (0.06) (0.63) (0.06) (0.06) (0.06) (0.06) - to replace existing assets (0.13) (0.91) (0.19) (0.16) (0.16) (0.19) (0.18) (0.18) (0.18) (0.22) (0.21) (Increase)/decrease in reserves 0.08 1.47 3.48 (0.25) (0.90) (0.73) (0.21) (0.79) (0.79) (0.74) (0.75) (Increase)/decrease of investments ------Total applications of capital funding (D) (0.10) (0.71) (0.67) (1.04) (1.12) (0.97) (1.02) (1.03) (1.03) (1.03) (1.03) Surplus/(deficit) of capital funding (C-D) (0.05) (0.51) (0.83) (1.26) (1.35) (1.22) (1.28) (1.27) (1.27) (1.27) (1.27)

Funding balance (A-B) + (C-D) ------

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Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 0.44 0.46 0.50 0.51 0.51 0.62 0.63 0.63 0.68 0.68 0.68 less deferred/unfunded 0.23 0.13 0.07 0.08 0.16 (0.05) (0.05) (0.05) (0.10) (0.10) (0.10) Net funding transferred to renewals reserves 0.67 0.59 0.57 0.59 0.67 0.57 0.57 0.58 0.58 0.58 0.58

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Colson Road Landfill closure works 715,266 715,266 ------Establish commercial and industrial material recycling facility 657,874 657,874 ------Construction of The Junction permanent building 3,347,763 308,741 3,039,022 ------Historic landfill erosion protection 508,011 252,467 255,544 ------Organic waste processing facility 1,149,492 - 568,734 580,758 ------Transfer Station location 570,750 - - - - - 570,750 - - - -

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Wastewater Treatment

What we do Why we do it Looking ahead NPDC’s strategic vision for a Sustainable Lifestyle Predicted growth in the district’s population will This service collects and treats domestic and Capital is supported by five goals – partnerships, increase the demand for wastewater services as housing industrial wastewater, returning clean water to delivery, community, sustainability and prosperity. These in existing urban areas becomes more intensified, and the environment and converting treated sludge goals (our community outcomes) promote the social, there is an increase in new subdivisions. An anticipated into a commercially sold bio fertiliser. economic, environmental and cultural well-being of the increase in tourist numbers will also create additional New Plymouth District both now and for the future. Our demand on this service, particularly during summer Our activities include operating and maintaining service actively contributes to all these goals. months. a network of infrastructure to collect and treat sewage from the urban areas of New Plymouth, The collection and treatment of wastewater in a safe In response to population growth, the District Plan Bell Block, Waitara, Inglewood and Ōākura. and efficient manner actively supports the goals of is focused on encouraging development in or near delivery, community, sustainability and prosperity. areas of New Plymouth that already have a reticulated The wastewater network comprises a centralised Our activities protect the health of our people and wastewater system. This encourages the use of existing treatment plant, 33 pump stations and 685 reduce potentially significant harmful environmental infrastructure, reducing the need for investment in kilometres of sewer network. On average, we issues caused by sewage. This supports a liveable expanding the network. We will continue to complete environment for our community, contributing to social network renewals and improvements to deal with handle 25 million litres of wastewater each day, and environmental well-being. any network deficiencies. This includes implementing servicing more than 27,000 properties. We also measures to prevent system overflows that can cause monitor the flow of trade waste into the network. Providing wastewater treatment infrastructure for contamination in our rivers and coastal waters. industry and to accommodate population growth and Part of the treatment process includes using a development in the district is also critical to the district’s We are investing in wastewater network modelling thermal dryer to convert treated by-products into economic well-being and prosperity. to better understand the implications of population a commercial biosolid fertiliser called Bioboost, growth, and the benefits that particular improvements which is available commercially. to the wastewater system will provide. The LTP 2021- How we pay for it 2031 includes plans for network improvements, Our service is funded through a targeted rate paid including renewals, replacements and upgrades to by ratepayers connected to the wastewater system. sewer pipes. We also charge industrial and commercial users for trade waste discharges. Capital improvements are Central government has allocated NPDC $37m to funded by loans, while the renewal and replacement of replace the ageing Thermal Drying Facility (which turns wastewater assets is funded from renewal reserves. The biosolids into fertiliser). The new facility will run on both replacement value of the wastewater assets is $641m. natural gas and hydrogen. This will assist with Covid-19 recovery by creating new jobs. This work is currently underway and is expected to be completed in 2023.

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Wastewater Treatment

Following a drinking water contamination event in Significant effects on community well-being Havelock North in 2016, central government has launched a programme of water service delivery Our service can have a range of effects on the community. Many of the positive effects are outlined in the section reform in New Zealand, with an expressed aim to ‘why we do it’. Potential negative effects are identified in the following table. develop larger water supply entities (for drinking water, wastewater and stormwater). Well-being Impact Social, environmental and Managing wastewater comes with the risk of system overflows into rivers and streams NPDC is providing information to central government cultural which can affect the environmental, social and cultural well-being of the community. and participating in a stimulus programme, accepting We minimise the likelihood of such overflows through regular inspections of a $10.1m grant to spend on three waters infrastructure. equipment, maintenance programmes, renewal and lining of old and/or leaky pipes. The Wastewater Treatment service will receive about We also use sound design, construction and operations practices. $6.6m of this stimulus programme. Economic Without a reliable wastewater service local industry would not be able to provide services and jobs. We mitigate this risk by ensuring resilience in our networks such as The changes we have made redundancy in our plant and equipment. We also support local agricultural industry by producing a fertiliser from the biosolids produced during wastewater treatment. We have committed to an increase in the funding of renewals over the life of this plan. We also have service level capital expenditure projects of $114.2m included in this plan. These projects include replacing the thermal drying facility, and addressing issues in the wastewater systems serving the Urenui township, and both the Urenui and Onaero campgrounds.

In addition to completing projects in response to growth, we will also continue a programme of pump station upgrades, including initiatives to prevent overflow. We will build and maintain a wastewater network model to help inform future wastewater planning and decisions.

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Wastewater Treatment

Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Provide an effective wastewater The number of dry weather sewerage overflows 1.07 1.5 1.5 1.5 1.5 treatment and disposal system. per 1,000 connections to the wastewater system. Comply with all resource consents The number of abatement notices received. 3 0 0 0 0 for wastewater discharge from our The number of infringement notices received. 0 0 0 0 0 system. The number of enforcement orders received. 0 0 0 0 0 The number of convictions received. 0 0 0 0 0 Respond to customer and The median response time to sewerage 0.64 1 hour or less 1 hour or less 1 hour or less 1 hour or less maintenance requests in a timely overflow callouts (from the time NPDC receives manner. notification to the time that service personnel reach the site). The median resolution time for sewerage 2.33 4 hours or less 4 hours or less 4 hours or less 4 hours or less overflow callouts (from the time NPDC receives for sewers for sewers for sewers for sewers notification to the time that service personnel <250 dia <250 dia <250 dia <250 dia confirm resolution of the fault or interruption). No callouts 8 hours or less 8 hours or less 8 hours or less 8 hours or less for sewers for sewers for sewers for sewers ≥250 dia ≥250 dia ≥250 dia ≥250 dia Ensure customers are satisfied with The total number of complaints received about 6.52 13 or less 13 or less 13 or less 13 or less the wastewater treatment and sewerage odour; system faults or blockages; or disposal service NPDC’s response to issues with the sewerage system (per 1,000 connected properties).

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Wastewater Treatment

Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties ------Targeted rates 14.38 15.12 19.73 21.31 22.88 25.02 26.82 28.64 31.28 34.40 37.01 Subsidies and grants for operating purposes - 0.50 ------Fees and charges 2.15 2.40 2.41 2.41 2.41 2.41 2.41 2.42 2.42 2.42 2.42 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 16.53 18.03 22.13 23.72 25.29 27.43 29.23 31.05 33.70 36.82 39.43

Applications of operating funding Payments to staff and suppliers (5.50) (6.57) (7.13) (7.73) (8.95) (7.49) (7.72) (7.66) (7.64) (8.00) (8.49) Finance costs (2.53) (1.68) (1.74) (1.76) (1.70) (2.06) (2.52) (2.94) (3.35) (3.47) (3.59) Internal charges and overheads applied (3.46) (4.93) (5.40) (5.62) (5.66) (6.10) (5.82) (5.97) (6.25) (6.40) (6.38) Other operating funding applications ------Total applications of operating funding (B) (11.49) (13.18) (14.28) (15.11) (16.30) (15.65) (16.06) (16.57) (17.24) (17.87) (18.46) Surplus/(deficit) of operating funding (A - B) 5.04 4.85 7.85 8.61 8.99 11.78 13.17 14.48 16.46 18.95 20.98

Sources of capital funding Subsidies and grants for capital expenditure - 10.46 5.97 14.15 9.75 ------Development and financial contributions 0.75 1.51 1.57 1.63 1.69 1.75 1.82 1.89 1.96 2.04 2.11 Increase/(decrease) in debt 0.16 1.69 3.76 8.68 11.29 16.45 11.07 9.25 13.63 3.72 3.55 Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 0.91 13.66 11.30 24.46 22.74 18.21 12.89 11.14 15.59 5.76 5.67

Applications of capital funding Capital expenditure: - to meet additional demand (1.11) (3.62) (2.75) (2.56) (1.73) (0.13) (0.14) (3.86) (3.92) (5.07) (5.23) - to improve the level of service (1.37) (10.89) (10.69) (17.38) (13.88) (12.67) (15.27) (9.89) (14.38) (4.17) (4.28) - to replace existing assets (4.81) (5.80) (8.16) (11.11) (14.45) (12.80) (13.26) (13.38) (13.72) (14.13) (14.56) (Increase)/decrease in reserves 1.34 1.81 2.46 (2.02) (1.67) (4.38) 2.61 1.51 (0.03) (1.34) (2.58) (Increase)/decrease of investments ------Total applications of capital funding (D) (5.95) (18.51) (19.15) (33.07) (31.72) (29.99) (26.06) (25.62) (32.05) (24.71) (26.65) Surplus/(deficit) of capital funding (C-D) (5.04) (4.85) (7.85) (8.61) (8.99) (11.78) (13.17) (14.48) (16.46) (18.95) (20.98)

Funding balance (A-B) + (C-D) ------

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Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 9.23 9.48 10.25 10.59 10.85 12.01 12.26 12.55 13.86 14.01 14.17 less deferred/unfunded (6.95) (7.18) (7.92) (7.94) (8.37) (6.52) (5.71) (2.95) (2.26) (0.42) 1.43 Net funding transferred to renewals reserves 2.28 2.29 2.34 2.65 2.49 5.49 6.54 9.60 11.60 13.60 15.60

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Thermal Drier Facility Crown Infrastructure funded 45,082,575 10,412,100 7,468,225 15,794,000 11,408,250 ------Wastewater network modelling 4,807,934 2,579,384 1,957,190 271,360 ------West Quay Pump Station upgrade 1,414,139 1,414,139 ------Waitara wastewater pumping system upgrade 5,694,110 553,300 563,465 742,000 3,835,345 ------Urenui and Onaero sewer system 29,174,300 503,000 515,050 530,000 1,629,750 3,341,100 5,707,500 5,850,000 3,601,200 3,698,400 3,798,300 Mangati Pump Station emergency storage 5,225,250 - 2,575,250 2,650,000 ------Lorna Street sewer upgrade 257,525 - 257,525 ------Inglewood Dump Station 77,258 - 77,258 ------Wastewater pipe bridge upgrade programme 1,642,200 - - - 217,300 222,740 228,300 234,000 240,080 246,560 253,220 Wastewater Pump Station overflow prevention 821,065 - - - 108,710 111,431 114,213 117,513 119,646 122,875 126,679 Corbett Park Pump Station upgrade 5,568,500 - - - - 5,568,500 - - - - - Shearer Reserve Pump Station upgrade 3,341,100 - - - - 3,341,100 - - - - - Inglewood oxidation ponds and pump station upgrade 5,707,500 - - - - - 5,707,500 - - - - Bell Block trunk sewer - capacity upgrade 6,934,500 - - - - - 3,424,500 3,510,000 - - - Waimea Valley sewer extension 4,147,996 ------2,055,345 2,092,651 - - Upgrading of Huatoki Valley sewer main 1,170,000 ------1,170,000 - - - Junction growth area sewer upgrade 585,000 ------585,000 - - - Te Henui Pump Station upgrade 12,004,000 ------12,004,000 - - Eastern sewer network realignment 9,995,856 ------4,921,735 5,074,121

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Water Supply

What we do Why we do it Looking ahead NPDC’s strategic vision for a Sustainable Lifestyle New Plymouth residents consume up to 60 per cent We treat and distribute water sourced from Capital is supported by five goals – partnerships, more water than residents in comparable disticts. This rivers and groundwater bores in the district delivery, community, sustainability and prosperity. These significantly higher consumption rate, together with to provide our community with a reliable and goals (our community outcomes) promote the social, a growing population and an expanding urban area, sustainable supply of fresh water. economic, environmental and cultural well-being of the means we can expect demand for water from the New Plymouth District both now and for the future. Our Waiwhakaiho River to exceed its capacity for supply There are four separate water supplies in the service actively contributes to all these goals. within the next 15 years. Additionally, Ministry for district - New Plymouth (including Omata, Bell the Environment predictions suggest that by 2090, Taranaki could experience double the amount of time Block, Waitara and Urenui), Inglewood, Ōākura Our service supports the goals of delivery, community, it currently spends in drought. An increase in visitor and Okato. Combined, these facilities supply sustainability and prosperity by ensuring eligible properties can connect with a safe, reliable and numbers could also put pressure on demand for water, approximately 33.2 million litres of water per day with most tourists visiting during the summer months, to just over 30,000 households and businesses in affordable water supply and that there is an adequate supply of water for urban firefighting. Our compliance when supplies are more affected by prolonged periods defined urban and rural areas. with resource consents for water takes, and our of dry weather. NPDC plans to take the lead in water sustainable management of water resources for future sustainability. We want to provide a consistent supply Our service develops, operates and maintains generations also contribute to environmental well- of high quality water across our district. With current infrastructure associated with these water being. consumption rates, we need to find ways to reduce supplies, which includes treatment plants, pump water consumption, or find an additional supply stations, pipe networks and storage facilities such Water supply is critical to many business operations of water to meet demand, at significant cost to the as reservoirs. and a diverse range of industries in the district. community. Our continued investment in resilient water supply We ensure our water supplies comply with the infrastructure supports industry, growth and We are revising and developing a Water Master Plan New Zealand Drinking-water Standards and development across the district, actively contributing for the district to improve the resilience of our water that water is used sustainably, particularly when to the social and economic well-being of our supply. The Master Plan focuses on understanding the demand is high. We also make sure there is water communities. conditions and operations of our water network. It also available for firefighting in urban areas. focuses on the implications of growth and the benefits particular system improvements and investment may How we pay for it have. We know we need to invest in water infrastructure This service is currently funded through a targeted rate to allow development in new areas of our district. We which will remain in place until the end of 2023/24. also know some of our older asbestos cement mains From 2024/25 we will use water meters to charge users pipes are reaching the end of their useful life and that directly on a per use basis. In addition some properties some of our existing infrastructure needs upgrading will be charged by restricted flow tariffs. to make sure that it can keep up with demand and firefighting requirements. The Master Plan provides for Capital improvements are funded by loans, while the new infrastructure to service future growth and will renewal and replacement of assets is funded from assist our understanding of when and how a new water renewal reserves. The replacement value of water supply may be required, including provision of water for supply assets is $339m. firefighting and improvements required to meet levels of service.

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Water Supply

A key component of the Water Master Plan is a Water Significant effects on community well-being Conservation Strategy, which proposes a 25 per cent reduction in gross water consumption by 2030. This Our service can have a range of effects on the community. Many of the positive effects are outlined in the section goal requires greater community awareness of water ‘why we do it’. Potential negative effects are identified in the following table. consumption and support for households to make changes to their daily water use habits. We will continue Well-being Impact to increase our efforts to educate the community on Social Without access to a safe water supply we put the health of our community at risk. We ways to save water and support behaviour change. mitigate this by operating our water supply to meet the New Zealand Drinking-water We will also introduce universal water metering so Standards. ratepayers will pay for only the water they use. To Economic Without a reliable water supply local industry would not be able to provide services further reduce water consumption, we will increase our and jobs. We mitigate this risk by providing resilience in our networks such as new management of leaks, and reduce water pressure in water storage tanks at Henwood and Mountain roads. some areas. Environmental and Extracting water from streams and underground aquifers reduces the amount of water Following a drinking water contamination event in cultural available for sustaining the life in our rivers and streams and for cultural purposes. This Havelock North in 2016, central government has is mitigated by operating demand management measures such as water restrictions launched a programme of water service delivery during dry periods, by reducing pressure to minimise leakage and consumption, reform in New Zealand, with an expressed aim to by promoting efficient water use, and by regular inspection and maintenance of develop larger water supply entities (for drinking pipework. We will look to the introduction of water meters to assist with water water, wastewater and stormwater). NPDC is providing conservation. information to central government and participating in a stimulus programme, accepting a $10.1m grant to spend on three waters infrastructure. The Water Supply service will receive about $1m of this stimulus programme.

NPDC and the other two district councils in Taranaki have also reviewed possible delivery structures for three water services but have made no commitment to reform at this stage.

The changes we have made We have committed to an increase in the funding of renewals. To deliver on the Water Master Plan, service level capital expenditure projects of $34.1m are proposed over the life of this plan.

Water meter installation is proposed for years one and two, with mock billing occurring in year three and a shift to volumetric charging from year four.

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Water Supply

Our commitment to you

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Provide water that is safe to drink. Our level of compliance with Part 4 of the Full compliance Full compliance Full compliance Full compliance Full compliance Drinking-water Standards (bacteria compliance criteria). Our level of compliance with Part 5 of Full compliance Full compliance Full compliance Full compliance Full compliance the Drinking-water Standards (protozoal compliance criteria). Maintain the reticulated water The percentage of real water loss from NPDC’s 16.3% 20% or less 20% or less 20% or less 20% or less network in good condition. networked reticulation system.1 Respond to faults and unplanned The median response time to urgent callouts 0.52 1 hour or less 1 hour or less 1 hour or less 1 hour or less interruptions to the water supply (from the time that NPDC receives notification network in a timely manner. to the time that service personnel reach the site). The median resolution time for urgent callouts 1.82 4 hours or less 4 hours or less 4 hours or less 4 hours or less (from the time NPDC receives notification, for mains for mains for mains for mains to the time that service personnel confirm <250 dia <250 dia <250 dia <250 dia resolution of the fault or interruption). No callouts 8 hours or less 8 hours or less 8 hours or less 8 hours or less for mains for mains for mains for mains ≥250 dia ≥250 dia ≥250 dia ≥250 dia The median response time to non-urgent 49.55 70 hours or less 70 hours or less 70 hours or less 70 hours or less callouts (from the time NPDC receives notification to the time that service personnel reach the site). The median resolution time for non-urgent 89.65 116 hours or 116 hours or 116 hours or 116 hours or callouts (from the time NPDC receives less less less less notification to the time that service personnel confirm resolution of the fault or interruption).

1 Water loss calculation: We calculate the percentage of water loss by dividing the annual volume of water loss by the total amount of treated water supplied for the year (obtained from water meter records from the Water Treatment Plant). To calculate the annual volume of water loss, we determine the minimum night flow (the average flow between 2am and 4am for the lowest 20 days of the year divided by the number of connections) and subtract the legitimate night usage per property (assumed to be six litres per property per hour). The difference is the estimated volume of water loss per property. To get the annual volume of water loss, we multiply the estimated volume of water loss per property by the number of connections, and then multiply that figure by 365.

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Water Supply

What we aim to achieve Latest result Target Target Target By 2030/31 What we will do How we will keep track 2019/20 2021/22 2022/23 2023/24 Ensure customers are satisfied with The total number of complaints (per 1,000 13.01 16 or less 16 or less 16 or less 16 or less our water supply service. connections) received about any of the following: • drinking water clarity, taste or odour; • drinking water pressure or flow; • continuity of supply; and • NPDC’s response to any of these issues. Manage demand to minimise the • The average consumption of drinking water 284 litres per 300 litres per 300 litres per 300 litres per 300 litres per impact of water supply activities on per day, per resident, within New Plymouth day day day day day the environment. District. • The number of abatement notices received. 0 0 0 0 0 • The number of infringement notices received. 0 0 0 0 0 • The number of enforcement orders received. 0 0 0 0 0 • The number of convictions received. 0 0 0 0 0

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Water Supply

Funding Impact Statement A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties ------Targeted rates 12.79 14.82 15.91 17.06 19.33 19.99 24.67 23.90 24.40 24.88 26.16 Subsidies and grants for operating purposes ------Fees and charges 0.23 0.22 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 Internal charges and overheads recovered ------Local authorities fuel tax, fines, infringement fees and other receipts ------Total operating funding (A) 13.02 15.04 16.14 17.29 19.56 20.21 24.90 24.12 24.63 25.11 26.38

Applications of operating funding Payments to staff and suppliers (4.21) (7.22) (5.66) (6.30) (7.99) (8.16) (8.03) (6.65) (6.74) (6.94) (7.87) Finance costs (1.51) (1.49) (1.70) (1.79) (1.73) (1.70) (1.79) (1.87) (1.79) (1.69) (1.57) Internal charges and overheads applied (3.06) (4.37) (4.77) (4.97) (5.00) (5.39) (5.14) (5.27) (5.52) (5.65) (5.62) Other operating funding applications ------Total applications of operating funding (B) (8.78) (13.08) (12.14) (13.06) (14.71) (15.24) (14.96) (13.80) (14.05) (14.28) (15.06) Surplus/(deficit) of operating funding (A - B) 4.23 1.96 4.00 4.23 4.85 4.97 9.94 10.33 10.57 10.83 11.32

Sources of capital funding Subsidies and grants for capital expenditure ------Development and financial contributions 0.33 0.46 0.48 0.50 0.52 0.54 0.56 0.58 0.60 0.62 0.65 Increase/(decrease) in debt 4.33 4.76 4.36 10.24 9.57 3.88 3.03 3.48 (1.08) (1.01) (1.45) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 4.66 5.22 4.83 10.73 10.09 4.42 3.58 4.06 (0.48) (0.39) (0.80)

Applications of capital funding Capital expenditure: - to meet additional demand (3.21) (2.98) (4.85) (4.26) (0.60) (0.41) (2.58) (3.10) (0.44) (0.45) (0.46) - to improve the level of service (2.74) (1.50) (1.25) (3.77) (4.14) (2.00) (3.47) (3.59) (1.85) (1.90) (1.63) - to replace existing assets (4.41) (6.14) (8.45) (8.69) (10.05) (7.33) (7.50) (7.74) (7.85) (8.13) (8.46) (Increase)/decrease in reserves 1.47 3.44 5.71 1.76 (0.15) 0.35 0.04 0.04 0.04 0.04 0.04 (Increase)/decrease of investments ------Total applications of capital funding (D) (8.89) (7.18) (8.84) (14.97) (14.94) (9.38) (13.52) (14.38) (10.09) (10.43) (10.52) Surplus/(deficit) of capital funding (C-D) (4.23) (1.96) (4.00) (4.23) (4.85) (4.97) (9.94) (10.33) (10.57) (10.83) (11.32)

Funding balance (A-B) + (C-D) ------

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Water Supply

Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 6.54 6.60 7.09 7.22 7.28 7.99 8.09 8.20 8.95 8.98 9.02 less deferred/unfunded (3.85) (3.90) (4.35) (4.43) (4.42) (2.12) (1.18) 1.75 1.01 0.97 0.94 Net funding transferred to renewals reserves 2.69 2.70 2.74 2.79 2.86 5.87 6.91 9.96 9.96 9.96 9.96

Projects The table below is a summary of the more significant capital projects that will be undertaken over the life of this plan.

Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) ($) Universal water metering 15,543,650 3,018,000 6,695,650 5,830,000 ------Mountain and Henwood roads reservoirs 1,509,000 1,509,000 ------Installation of backflow preventers 2,648,149 503,386 515,445 528,374 543,667 557,277 - - - - - New Plymouth Water Treatment Plant intake fish screen 3,171,030 - 309,030 2,862,000 ------Waitara pipe bridge deterioration 2,933,550 - - - 2,933,550 ------New water source 8,796,747 - - - 1,165,383 1,194,558 1,224,376 1,259,753 1,282,619 1,317,238 1,352,819 Inglewood contingency intake fish exclusion 1,086,500 - - - 1,086,500 ------Inglewood Water Treatment Plant sludge management 478,060 - - - 478,060 ------Duplicate WTP outlet and central feeder 4,391,850 - - - - - 2,168,850 2,223,000 - - - New Plymouth Water Treatment Plant earthquake strengthening 3,467,250 - - - - - 1,712,250 1,755,000 - - - and welfare modifications Water resilience - reservoirs inlets - outlets 1,186,101 - - - - - 285,649 293,902 299,237 307,314 - Patterson Road water main 468,000 ------468,000 - - -

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Financial Information

Financial Strategy...... 150 Statement of Accounting Policies...... 156 Prospective Financial Statements...... 165 Notes to Financial Statements...... 170 Statement of Reserve Funds...... 171 Disclosure Statement...... 173 Rating System and Information...... 176 Funding Impact Statement...... 184 Reconciliation Summary...... 186

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Financial Strategy

The Financial Strategy sets the financial direction of There are also a number of strategic projects within the plan which increase the level of service provided to our NPDC by guiding the decisions we make now, for the community that NPDC will deliver, contributing to our overarching strategic direction of a Sustainable Lifestyle future. The strategy demonstrates how these decisions Capital. will impact on rates, borrowing, investments and Council services. The following five guiding principles have been used in the development of this Financial Strategy.

Our current position Fairness and equity Willingness to pay Value for money Risk management Financial and assessment governance and NPDC is in a strong financial position with a large stewardship investment portfolio, comparatively low levels of borrowing and a strong credit rating. However rates Ensures that funding Ratepayer concerns This considers the Includes Requires NPDC increases have been kept at moderate levels, primarily of expenditure is may reflect overall benefits consideration of to ensure that its at the expense of deferring asset renewals and fair across both unwillingness, and outcomes of risks, risk appetite actions today do maintenance. In addition, new assets and increased present and rather than the a service or asset and mitigation not compromise levels of service have been added to the portfolio of future ratepayers. inability to pay. This to the community, strategies which are the ability of future assets and services that Council provides. Different funding may be driven by a alongside its lifecycle important when councils to fund their tools such as debt perceived benefit cost and cost managing public needs. Building our future and development from rates or the effective funding services and assets. contributions public versus private streams. This strategy takes into consideration the challenges facilitate this benefit issue. that face our district in regards to maintaining and principle. renewing our infrastructure, whilst accommodating growth within the city. Substantial work has been undertaken in the last two years to understand the NPDC has successfully operated within the limits of its first financial strategy since 2012. This strategy builds on condition of our existing assets and as such, we have our strong financial position by continuing with similar limits which have proven to be prudent and sustainable. identified the need to make a significant investment By staying with these limits Council is able to maintain its assets and service levels, keep its strong credit rating, in our core infrastructure to ensure we can continue to balance its books and provide for growth. provide our residents with the same level of service as well as maintaining our assets for future generations.

NPDC is also facing a number of new challenges driven by central government, which affect what we do and how we deliver our services. Increasing national standards in water, wastewater and stormwater influence our expenditure, as well as the costs associated with responding to climate change and building a resilient community.

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Financial Strategy

Debt Debt Limit: Net debt* to total revenue will be limited to 135 per cent Debt Limit: Net interest expense will be limited to 12.5 per cent of The Council has successfully managed debt and continues to project debt levels total rates revenue within these sustainable limits. This means that NPDC is in a strong position to accommodate the significant expenditure required for both new infrastructure assets Limits on Interest to service our growing city and have capacity to provide funding for unforeseen events. 30

In addition, we identified that a step change in our work programmes is needed to 25 renew many of our ageing assets. To fund this change over the short term through 20 rates would make rates increases unaffordable and go against our principles of intergenerational equity. Therefore, we are proposing to fund the renewal of some of 15 our longer life assets, such as pipes and bridges through debt. 10

Limits on Borrowing 5 400 - 300 $ Millions 200 Interest Expense Interest Limit 100

- $ Millions (100)

(200)

Net Debt Debt Limit

(*Net Debt is the sum of Council’s current and non-current borrowing and Council’s financial assets).

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Financial Strategy

Rates Total Rates Rates are NPDC’s main funding source and pay for community services and assets. Rates Revenue Limit: Rates income will not exceed 75 per cent of NPDC’s total operating revenue. Rating Limits Rates Revenue Limit Rate Increase Limit: Average rate increases to existing ratepayers will not exceed 80% 12 per cent in 2022 and then nine per cent from 2023 onwards. The average rate limit includes all rates except for the Voluntary Targeted Rate (VTR). 75% 14% Rate increases

12% 70% 10% 8% 65% 6% 60% 4% 2% Rates as a percentage of operating revenue 0% Limit on rates as a percentage of operating revenue

The average rate increase proposed for 2022 has been set at a level higher than the remaining years of the plan, in recognition of the step change that is required to Rate increase Rate increase limit maintain and renew our existing infrastructure. This step change recognises that whilst a portion of the long life capital expenditure can be funded through debt, $200 Total rates requirement there are also assets and infrastructure that need significant investment over the next 10 years. Over a 10 year period, we are increasing our rate funded contribution $150 to renewals by $180 million (inflated). It is expected that we will be fully funding our renewal assets on a 10 year average basis by 2029. $100 The proposed increased limit also recognises the contribution to rates needed to

$ million fund increased services that have been included in the Long-Term Plan (LTP), such as $50 the multi-sport hub, an extension to the coastal walkway and improvements to the Waitara stormwater network. $-

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181 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Financial Strategy

Capital expenditure demand management strategies are proposed, such as water conservation, waste minimisation and alternative transport options. Capital expenditure pays for buying or building new assets such as renewing an existing asset (renewals); improving an existing asset to deliver a better level of The population has been projected to grow from 86,700 in 2021 to 93,800 in 2031. service; or new assets to provide for population growth. To support this population growth, NPDC is projecting an increase of 3,530 dwellings in the next 10 years. This projection is based on fertility, mortality and migration The following graph shows our proposed capital expenditure on a year by year basis assumptions and is prepared by Infometrics. Population projections have been used and shows our commitment to increasing our investment in our community’s assets. to help prepare 30 year demand forecasts for the Infrastructure Strategy and the Forecast Capital Expenditure related capital expenditure programme for the LTP has been prioritised from this base. 120 Land use is anticipated to remain similar across the district as growth focuses in key nodes as identified in the Proposed District Plan. Bell Block continues to be the 100 main growth area in the district over the LTP and the Smart Road area then becomes the main growth area starting in the 2030’s. Intensification of existing areas is also 80 expected to occur, with some growth in small settlements. 60 Activity Group Growth Improve Renewal 10 Year 40 Service Levels Total $000’s $000’s $000’s $000’s 20 Water 20,131 25,094 80,340 125,565 $ millions 0 Wastewater 29,006 113,509 121,375 263,890 Stormwater 9,870 26,220 46,689 82,779 Transport 12,851 82,026 154,878 249,755 Flood control systems - - 576 576 Renewals Level of Service Growth Other 12,236 115,764 112,937 240,937 Growth Total 84,094 362,613 516,793 963,500 Managing growth over the period of this LTP and beyond is a challenge because The above table shows the total capital expenditure over the period of the LTP New Plymouth continues to grow. Growth is positive for the city because it means categorised by type of expenditure. people want to live here and we are attracting businesses and investment. • Growth expenditure provides new or improved assets enabling more residents to live in our city. With growth comes the need for investment in infrastructure. New infrastructure is expensive and needs to be balanced against maintaining the infrastructure we • Expenditure to improve service levels is for creating new assets to service the already have. Managing the demands for growth and balancing the opportunities for current population. future ratepayers against affordable rates and debt levels for current ratepayers is a • Renewals expenditure is used to bring our existing assets back to their original challenge for New Plymouth. function or capacity. While NPDC is contributing significantly to growth, it is the intention of this strategy There are additional operating costs associated with adding new assets including that those users who benefit from growth should pay for their appropriate share depreciation, however these are not considered to be significant. These costs are through development contributions or financial contributions. To defer some of absorbed within the rates increase limit, with contributions from targeted rates for the investment required to support growth until later in the Infrastructure Strategy, those properties receiving additional or new services.

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182 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Financial Strategy

Risk of growth being higher or lower Asset sales Should growth be higher than forecast, then development contributions revenue NPDC has not included any asset sales in the LTP 2021-2031 as they are not would be higher than has been budgeted in the LTP and we may need to reconsider considered material and there is considerable uncertainty associated with timing. The the timing of some of our capital projects. Council will continue to investigate selling minor assets, where appropriate, with net proceeds from any sales being used to reduce debt. Should growth be lower than forecast, development contributions revenue would be lower than has been budgeted in the LTP and we may consider deferring some of our growth related capital projects. Policy on securities In order to borrow money NPDC has to offer our lenders some security, just like Balancing the books residents do with their mortgage. Like most councils we secure our debt against our To ensure that today’s ratepayers are paying for the services and amenities rates income. Our lenders like this as security and it helps keep our interest rates low. provided to them, everyday costs, such as maintenance costs, operational costs and Giving rates as security means that our lenders can make us charge more rates to depreciation should be paid from everyday revenue, such as rates, fees and charges repay debt. That is why it is important to keep our debt at a sustainable level. and subsidies. We call this a balanced budget. In certain circumstances NPDC may offer other security, including physical assets.

The following graph demonstrates that an operating surplus (revenue greater than The full policy on giving securities can be found in the Treasury Management Policy expenditure) or balanced budget is achieved for each of the 10 years of the LTP. on the Council’s website. Operating surpluses are generally allocated to fund capital works or transferred to reserves to fund expenditure in future years.

Balanced Budget Benchmark 120 107 107 107 109 107 108 109 110 105 106 101 100

90 88

80

/Operating expenditure (%) expenditure /Operating 70

60

Revenue 50

Year

Benchmark not met Benchmark met

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183 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Financial Strategy

Investments Resilience NPDC is an equity holder in a number of companies, a trust and joint ventures. The principal reason for holding an Since our last LTP, NPDC has learnt to become more equity interest in these investments is to achieve efficiency and community outcomes as well as a financial return on resilient in the face of adversity. In 2018 we faced the investment. NPDC’s interest in the entities is as follows: impacts of ex-cyclone Gita, followed by the Covid-19 pandemic in 2020. Alongside these specific events, we Company Shareholding/ Principal reason for Budgeted return continue to address the ongoing impacts of climate control % investment $000’s change, with the Council adopting a Climate Action Papa Rererangi i Puketapu Ltd 100 Economic development Nil Framework in December 2019. Venture Taranaki Trust 100 Economic development Nil Through this LTP, NPDC has committed over $2m to New Plymouth PIF Guardians Ltd 100 Perpetual Investment Fund 3.3% + CPI + fees* greening our district. Policy and procurement decisions Tasmanian Land Company Ltd 100 Being wound up Nil made by the Council will continue to have a climate McKay Forestry Joint Venture 56.5 Grow and harvest trees $1.6m change consideration as these are embedded into our strategies, plans and operations. Duthie Forestry Joint Venture 54.8 Grow and harvest trees $365,000 New Zealand Local Government Funding 0.4 Borrowing $16,000 p.a. Whilst central government is leading the economic Agency Ltd and social recovery, post Covid-19, our Council will be Civic Financial Services Ltd 3.9 Risk management Nil a major player. The work we do in coming years will lay the foundations of our recovery and help determine * NPDC’s objective is to maximise the return from the Perpetual Investment Fund portfolio and the expected rate of how quickly our community and economy bounces return is 3.3% + Consumer Price Index + management fees. back.

Cash Investments NPDC also has a responsibility to consider how it could respond to unplanned events such as civil NPDC holds cash for three main reasons: defence emergencies and natural events. An Insurance 1. To support the balance of reserves. Framework was created in 2018 to provide a structure for determining the balance between risk retention (by 2. To ensure strong lines of liquidity and access to cash. Cash is supplemented by committed banking facilities. NPDC) and sharing (with insurers). The framework is 3. To provide the funds for maturing debt. reviewed every three years to ensure it is fit for purpose. NPDC holds insurance policies against its underground Cash may be invested on short-term deposit to manage cash flows and maximise returns. These investments are infrastructure at up to 40 per cent of the asset value, managed in line with the guidelines set out in the Treasury Management Policy. with the understanding that central government will provide the remaining 60 per cent following a disaster. Other investments The Council also maintains a disaster fund as part of its insurance strategy. The balance of this fund is As part of borrowing from the Local Government Funding Agency, NPDC is required to invest in financial bonds with projected to be $1.2m at 30 June 2021. Because of its the agency. The Council will receive interest on these bonds equivalent to the cost of borrowing. strong financial position the Council also has significant capacity to borrow to fund unforeseen costs (a further $377m in 2022).

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184 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Statement of Accounting Policies

New Plymouth District Council (NPDC) is a territorial The financial information contained within these circumstances may not occur as expected or may not authority established under the Local Government Act policies and documents is prospective financial have been predicted or NPDC may subsequently take 2002 (LGA) and is domiciled and operates in information in terms of PBE FRS 42 Prospective Financial actions that differ from the proposed courses of action New Zealand. The relevant legislation governing the Statements. on which the financial statements are based. NPDC’s operations includes the LGA and the Local Government (Rating) Act 2002 (LG(R)A). For the purposes of the plan, the financial statements The information contained within these financial cover all the activities of NPDC as a separate legal entity. statements may not be suitable for use in another The Group consists of the ultimate parent, NPDC and The Group prospective financial statements have not capacity. its Council Controlled Organisations (CCOs) and joint been presented as the Council believes that parent ventures: statements are more relevant to users. The accounting policies set out below have been applied consistently to all periods presented in these • Papa Rererangi i Puketapu Limited (100% owned). The main purpose of these statements is to provide financial statements. • New Plymouth PIF Guardians Limited (100% owned). users with information about the core services that NPDC intends to provide to ratepayers, the expected Measurement base • Venture Taranaki Trust (100% owned). cost of those services and the consequent requirement The financial statements have been prepared on • Tasmanian Land Company Limited (100% owned). for rate funding. The level of rate funding required is not affected by subsidiaries except to the extent that a historical cost basis except for certain classes of • McKay Family Joint Venture (56.5% owned). NPDC obtains distributions from, borrows money on property, plant and equipment which have been subsequently measured at fair value. • Duthie Joint Venture (54.8% owned). behalf of, or further invests in, those subsidiaries and such effects are included in these parent prospective The financial statements are presented in New Zealand financial statements. Statement of Compliance dollars (functional and reporting currency) and all The financial statements include a Prospective values are rounded to the nearest thousand dollars The Prospective Financial Statements (financial ($000), unless otherwise stated. statements) of NPDC and Group have been prepared in Statement of Comprehensive Revenue and Expense, a accordance with the requirements of the LGA and the Prospective Statement of Changes in Net Assets/Equity, Local Government (Financial Reporting and Prudence) a Prospective Statement of Financial Position and a Regulations 2014, which include the requirement Prospective Statement of Cash Flows. Significant Accounting Policies to comply with New Zealand Generally Accepted a) Basis of consolidation Accounting Practice (NZ GAAP). The financial statements of NPDC are for the years ending 30 June. The financial statements were The consolidated financial statements of assets, NPDC’s primary objective is to provide goods or services authorised for issue by the Council on the date the plan liabilities, equity, revenue and expenses on a line and benefit for the community, rather than making a was adopted. Whilst there is no current intent to update by line basis. Significant transactions and balances financial return. Accordingly, NPDC designates itself and these financial statements, the Council reserves the between NPDC and its CCOs are eliminated in the Group as public benefit entities (PBEs) and applies right to update this plan in the future. preparing the group statements. tier 1 PBE Accounting Standards. These standards NPDC’s investment in the following subsidiaries are based on International Public Sector Accounting The information in the financial statements is uncertain and the preparation requires the exercise of judgement. are carried at cost in the parent entity financial Standards (IPSAS), with amendments for the statements: Papa Rererangi i Puketapu Limited, New Zealand Environment. Actual financial results achieved for the period covered are likely to vary from the information presented, New Plymouth PIF Guardians Limited and Venture and the variations may be material. Events and Taranaki Trust.

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Statement of Accounting Policies

NPDC’S investment in Tasmanian Land Company cost less accumulated depreciation and impairment The costs of servicing property, plant and Limited has been classified as a financial asset at fair losses. equipment are recognised in the surplus or deficit value through surplus or deficit. as they are incurred. Restricted assets include land and buildings that b) Critical accounting estimates and are subject to either restrictions on use, or disposal, Disposals assumptions or both. This includes restrictions from legislation Gains and losses on disposals are determined by (such as land declared as a reserve under the Financial statement preparation requires comparing the disposal proceeds with the carrying Reserves Act 1977) or other restrictions (such as judgements, estimates and assumptions that affect amount of the asset. Gains and losses on disposals land or buildings under bequest or donation that the application of policies and reported amounts are reported net in the surplus or deficit. When restricts the purpose for which the assets can be of assets and liabilities, revenue and expenses. revalued assets are sold, the amounts included in used). Actual results may differ from these estimates. asset revaluation reserves in respect of those assets Estimates are continually evaluated and are based Infrastructural assets are the fixed utility systems are transferred to accumulated funds. on historical experience and other factors including owned by NPDC. They usually display some or all Revaluation expectations or future events that are considered. of the following characteristics: part of a system or The significant estimates and assumptions that network, specialised in nature and usually do not All property, plant and equipment except for have the greatest risk of causing a material have alternative uses, immovable and they may be operational motor vehicles, furniture, fittings and adjustment to the reported amounts are: subject to constraints on disposal. Examples are equipment and work in progress are revalued with road networks, sewer systems and water systems. sufficient regularity to ensure that their carrying • Estimating the fair value of infrastructural assets. These assets are measured at fair value. amount does not differ materially from fair value, at • Estimating the fair value of buildings. least every three years. Additions • Estimating the fair value of forestry assets. Fair value is determined by reference to the The cost of an item of property, plant and depreciated replacement cost or market value on • Estimating the landfill aftercare provision. equipment is recognised as an asset only when it is an asset class basis. The carrying values of revalued probable that future economic benefits or service c) Property, plant and equipment assets are assessed annually to ensure they do not potential associated with the item will flow to NPDC differ materially from the assets fair values. NPDC has the following classes of property, plant and the cost of the item can be measured reliably. and equipment: The carrying value of revalued assets are assessed Work in progress is recognised at cost less annually to make sure they do not differ materially • Operational assets. impairment and is not depreciated. from the assets fair values. If there is a material • Restricted assets. In most instances, an item of property, plant and difference then the off-cycle asset classes are equipment is recognised at its cost. Where an asset revalued. • Infrastructural assets. is acquired at no cost, or a nominal cost (e.g. vested Revaluation movements are accounted for on a Operational assets include land, buildings asset), it is recognised at fair value at the date of class of asset basis. (including any improvements), vehicles, furniture, acquisition. fittings and equipment and library books. The net revaluation results are credited or debited Costs incurred subsequent to initial acquisition to other comprehensive revenue and expense and Land and buildings and the Puke Ariki book are capitalised only when it is probable that future are accumulated to an asset revaluation reserve collection are measured at fair value. Vehicles and economic benefits or service potential associated in equity for that class of asset. Where this would furniture, fittings and equipment are measured at with the item will flow to NPDC and Group and the result in a debit balance in the asset revaluation cost of the item can be measured reliably. reserve, this balance is not recognised in other

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Statement of Accounting Policies

comprehensive revenue and expense but is The useful lives and associated depreciation rates of major classes of assets have been estimated as follows. recognised in the surplus or deficit. Any subsequent Years Depreciation increase on revaluation that reverses a previous decrease in value recognised in the surplus or Infrastructural assets deficit will be recognised first in the surplus or Roading 5 - 100 1% - 20% deficit up to the amount previously expensed and Laboratory 8 - 30 3.3% - 12.5% then recognised in other comprehensive revenue and expense. Waste management and minimisation 35 - 100 1% - 2.9% Stormwater 50 - 140 0.7% - 2% Depreciation Flood protection 50 - 200 0.5% - 2% Depreciation is provided on a straight line basis on all property, plant and equipment other than land Water 10 - 120 0.8% - 10% and restricted assets, at rates which will write off the Wastewater 10 - 140 0.7% - 10% cost (or valuation) of the assets to their estimated New Plymouth Airport runway/services 5 - 100 1% - 20% residual values over their useful lives. Depreciation of these assets commences when the assets are Work in progress Not depreciated ready for their intended use. Depreciation rates and Operational assets useful lives are reviewed annually. Depreciation on Land Not depreciated assets is charged to the surplus and deficit. Buildings/improvements 20 - 100 1% - 5% Vehicles 3 - 20 5% - 33.3% Furniture, fittings and equipment 3 - 10 10% - 33.3% Puke Ariki book collection (general in-use) 2 - 15 6.7% - 50% Work in progress Not depreciated Restricted assets Parks and reserves Not depreciated Waitara Lands Act land Not depreciated Puke Ariki museum collection Not depreciated Govett-Brewster Art Gallery/Len Lye Centre collection Not depreciated

d) Non-current assets held for sale Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. Non-current assets held for sale are separately disclosed in the Statement of Financial Position at the lower of their carrying amount and fair value less costs to sell. They are not depreciated or amortised.

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Statement of Accounting Policies

Any impairment losses for write-downs are party. Transfer from these reserves can be made when conditions pertaining to eligible expenditure recognised in the surplus or deficit. Any increases by certain specified purposes or when certain have been fulfilled. in fair value (less costs to sell) are recognised up to specified conditions are met. Other grants are recognised as revenue when they the level of any impairment losses that have been become receivable. When there is an obligation in previously recognised. Asset revaluation reserves substance to return the funds if conditions of the Asset revaluation reserves relate to the revaluation grant are not met, the grants are initially recorded e) Equity and Capital Management of property, plant and equipment to fair value. as grants received in advance and recognised as The LGA requires NPDC to manage its revenues, revenue when conditions of the grant are satisfied. expenses, assets, liabilities, investments, and f) Rates general financial dealings prudently and in a General rates and uniform annual general charges h) Other revenue manner that promotes the current and future are recognised at the start of the financial year to Fines and levies, which mostly relate to traffic and interests of the community. Ratepayers’ funds are which the Council rates resolution relates. They are parking infringements, are recognised when the largely managed as a byproduct of managing recognised at the amounts due. NPDC considers infringement notice is issued. revenues, expenses, assets, liabilities, investments, the effect of payment of rates by instalments is not and general financial dealings. sufficient to require discounting of rates receivables User fees and charges are recognised on the basis and subsequent recognition of interest revenue. of actual services provided. Any fees and charges Equity is the community’s interest in NPDC and is received in advance are recognised as unearned measured as the difference between total assets Revenue from late payment penalties is recognised income in advance. and total liabilities. Equity is disaggregated and when rates become overdue. classified into the following components: Fees for disposing of waste at NPDC’s landfill are Revenue from water by meter rates is recognised recognised as waste is disposed by users. • Accumulated funds. on an accrual basis. Revenue is based on the actual usage as a result of meter reading. Unbilled usage • Restricted reserves. i) Exchange and non-exchange revenue as a result of unread meters at year end is accrued Most of NPDC’s revenue is from non-exchange • Asset revaluation reserves. on an average usage basis. transactions accounted for under PBE IPSAS 23 (i.e. Accumulated funds Rates remissions are recognised as a reduction rates, subsidies and grants, provision of services of rates revenue when NPDC has received an Accumulated funds are the capital fund made up partial cost recovery/subsidised, vested assets and application that satisfies its rates remission policy. of accumulated surpluses and deficits. A surplus in financial/development contributions). Exchange any year is added to the fund and a deficit in any Rates collected on behalf of the Taranaki Regional transactions are recognised under PBE IPSAS 9 year is deducted from the fund. Ordinary reserves Council (TRC) are not recognised in the financial (i.e. targeted rates for water supply, provision of are reserves created by Council decision. NPDC may statements as NPDC is acting as an agent for TRC. services full cost recovery, sale of goods, interest alter the purpose of a reserve without reference to and dividends). a third party or the Courts. Transfers to and from g) Subsidies and grants Professional judgement is exercised to determine these reserves is at the discretion of NPDC. NPDC receives funding assistance from Waka Kotahi whether the substance of a transaction is non- NZ Transport Agency (NZTA), which subsidises part exchange or exchange. Revenue is measured Restricted reserves of the maintenance costs and capital expenditure at fair value which is usually the cash value of a Restricted reserves are those reserves subject on the local roading infrastructure. The NZTA transaction. For non-exchange revenue there is a to specific conditions accepted as binding by roading claim payments (reimbursements) are recognition of a liability to the extent of unfulfilled NPDC and which may not be revised by the recognised as revenue upon entitlement, which is Council without reference to the Courts or a third conditions.

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188 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Statement of Accounting Policies j) Interest revenue Sector Retirement Savings Scheme which are Forestry maintenance costs are recognised in the Interest revenue is recognised using the effective defined contribution superannuation schemes, are surplus or deficit when incurred. interest method. expensed as incurred. n) Intangible assets k) Other expenses l) Vested assets An intangible asset is an identifiable non-monetary asset without physical substance. Amortisation Grant expenditure For assets received for no or nominal consideration, is the systematic allocation of the depreciable NPDC’s grants awarded have no substantive the asset is recognised when NPDC obtains control amount of an intangible asset over its useful life. conditions attached. of the asset. The fair value of the asset is recognised as revenue, unless there is a use or return condition Software acquisition and development Non-discretionary grants are those grants that attached to the asset. Acquired computer software licenses are are awarded if the grant application meets the The fair value of vested or donated assets is capitalised on the basis of the costs incurred to specified criteria and are recognised as expenditure usually determined by reference to the cost of acquire and bring to use the specific software. Costs when an application that meets the specified constructing the asset. For assets received from that are directly attributable to the development criteria for the grant has been received. property developments, the fair value is based on of software for internal use are recognised as an construction price information provided by the intangible asset. Direct costs include the software Discretionary grants are those grants where NPDC property developer. development employee costs and an appropriate has no obligation to award on receipt of the grant portion of relevant overheads. Staff training costs, application and are recognised as expenditure For long lived assets that must be used for a specific maintenance and web-related costs are recognised when a successful applicant has provided an use (e.g. land that must be used as a recreation in the surplus or deficit when incurred. invoice. reserve), the Council immediately recognises the fair value of the asset as revenue. Carbon credits Operating leases Financial/development contributions are Purchased carbon credits are recognised at cost An operating lease is a lease that does not transfer recognised as revenue when received. If the on acquisition. Free carbon credits received from substantially all the risks and rewards incidental service for which the contribution is charged is the Crown are recognised at fair value on receipt. to ownership of an asset. Lease payments under not undertaken in the same year it is received, the They are not amortised, but are instead tested an operating lease are recognised as an expense contribution is allocated to the appropriate reserve for impairment annually. They are derecognised on a straight line basis over the lease term. Lease until such time that the Council provides, or is able when they are used to satisfy carbon emission incentives received are recognised in the surplus to provide, the service. obligations. or deficit as a reduction of rental expense over the lease term. m) Forestry assets Amortisation Standing forestry assets are independently The carrying value of an intangible asset with a Interest rate swaps revalued annually at fair value less estimated costs finite life is amortised on a straight line basis over Interest rate swaps are measured at fair value with to sell for one growth cycle. its useful life. Amortisation begins when the asset gains or losses on remeasurement recognised in is available for use and ceases at the date that the the surplus or deficit in the year of remeasurement. Gains or losses arising on initial recognition of forestry assets at fair value less costs to sell and asset is derecognised. The amortisation charge for each financial year is recognised in the surplus or Defined contribution schemes from a change in fair value less costs to sell are deficit. Employer contributions to KiwiSaver, the recognised in the surplus or deficit. Government Superannuation Fund and the State

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Statement of Accounting Policies

The useful lives and associated amortisation rates q) Trade and other receivables All borrowing costs are recognised as an expense of computer software, the major class of intangible Short-term receivables are recorded at the amount in the period in which they are incurred and are assets, is three to five years (20 per cent to 33.3 per due, less an allowance for expected credit losses calculated using effective interest method. cent). (ECL). t) Derivative financial instruments o) Joint ventures NPDC and the Group apply the simplified ECL Derivative financial instruments are initially Investments in joint ventures are accounted model of recognising lifetime ECL for receivables. recognised at fair value on the date the contract is for in the Group financial statements using the In measuring ECLs, receivables have been grouped entered into. They are subsequently remeasured to equity method of accounting. The investment is into rates receivables, and other receivables, and fair value each month with the associated gains or initially recognised at cost. The carrying amount assessed on a collective basis as they possess losses recognised in the surplus or deficit. is increased or decreased to recognise the Group’s shared credit risk characteristics. They have then Derivative financial instruments are carried share of the change in the net assets of the entity been grouped based on the days past due. A as assets when their fair value is positive and after the date of acquisition. The Group’s share of provision matrix is then established based on as liabilities when their fair value is negative. the surplus or deficit is recognised in the Group historical credit loss experience, adjusted for Derivative financials instruments that are settled surplus or deficit. forward looking factors specific to the debtors and within 12 months are treated as current. the economic environment. If the share of deficits of the joint venture equals NPDC does not designate any derivatives as or exceeds the interest in the joint venture, the Rates are ‘written off’: hedging instruments. Group discontinues recognising its share of further • when remitted in accordance with NPDC’s rates deficits. After the Group’s interest is reduced to remission policy; and u) Other financial assets zero, additional deficits are provided as a liability Financial assets (other than shares in subsidiaries) to the extent that the Group has incurred legal • in accordance with the write off criteria of are initially recognised at fair value plus transaction or constructive obligations or made payments sections 90A (where rates cannot be reasonably costs unless they are carried at fair value though on behalf of the joint venture. If the joint venture recovered) and 90B (in relation to Māori surplus or deficit, in which case the transaction subsequently reports surpluses, the Group will freehold land) of the Local Government (Rating) costs are recognised in surplus or deficit. resume recognising its share of those surpluses Act 2002. after its share of the surpluses equals the share of NPDC classifies its financial assets into the following Other receivables are written off when there is no categories for the purpose of measurement: deficits not recognised. reasonable expectation of recovery. • fair value through surplus or deficit; or p) Cash and cash equivalents r) Creditors and other payables • amortised cost; or Cash and cash equivalents include cash on hand, Short-term payables are recorded at the amount deposits held at call with banks, other short-term payable. • fair value through other comprehensive highly liquid investments with original maturities revenue and expense. of three months or less, and bank overdrafts. Bank s) Borrowings overdrafts are shown within borrowings in current Financial assets at fair value through surplus or All loans and borrowings are initially recognised liabilities in the statement of financial position. deficit at fair value of the consideration received plus Financial assets at fair value through surplus or transaction costs. deficit include financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the

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short-term or if it is part of a portfolio of identified recognition or are not classified in any of the other estimate the recoverable amount of an individual financial instruments that are managed together categories above. asset, estimates are made of the recoverable and for which there is evidence of short-term profit amount of the cash-generating unit to which the They are included in non-current assets unless taking. Financial assets in this category are classified asset belongs. management intends to dispose of, or realise, the as a current asset. After initial recognition, financial investment within 12 months of balance date. Recoverable amount is the greater of market value assets in this category are measured at their fair less costs to sell and value in use. If the recoverable values with gains or losses on remeasurement These investments are measured at their fair amount of an asset (or cash-generating unit) is recognised in the surplus or deficit. value, with gains and losses recognised in other estimated to be less than its carrying amount the comprehensive revenue and expense. Included in this category is NPDC’s investment carrying amount of the asset (or cash-generating in Tasmanian Land Company Limited and the On derecognition, the cumulative gain or loss unit) is reduced to its recoverable amount with the Perpetual Investment Fund. previously recognised in other comprehensive expense being recognised in the surplus or deficit. revenue and expenditure is reclassified from equity For non-revalued assets impairment losses are Amortised cost to the surplus or deficit. recognised as an expense immediately. Loans and receivables are non-derivative financial NPDC includes in this category: assets with fixed or determinable payments that are For revalued assets, other than investment not quoted in an active market. They are included • investments that it intends to hold long-term property, the impairment loss is treated as a in current assets, except for maturities greater but which may be realised before maturity; and revaluation decrease to the extent it reverses than 12 months after the balance date, which are previously accumulated revaluation increments for • bonds and shareholdings in LGFA and included in non-current assets. that asset class. shareholdings in Civic Financial Services After initial recognition they are measured at Limited. The reversal of an impairment loss on a revalued amortised cost using the effective interest rate asset is credited to other comprehensive revenue method less impairment. Gains and losses when the Impairment and expense and increases the asset revaluation asset is impaired or derecognised are recognised Financial assets are assessed for objective evidence reserve for that class of asset. However, to the in the surplus or deficit. These loans are measured of impairment at each balance date. Impairment extent that an impairment loss for that class of asset at amortised cost using the effective interest rate losses are recognised in the surplus or deficit. was previously recognised in the surplus or deficit, method. The difference between the face value and Impairment is established when there is objective a reversal of the impairment loss is also recognised present value of the expected future cash flows of evidence that NPDC will not be able to collect in the surplus or deficit. the loan is recognised in the surplus or deficit as amounts due according to the original terms of the interest. NPDC’s loans and receivables comprise debt. Value in use for non-cash generating assets debtors and other receivables, Local Government Non-cash generating assets are those assets Funding Agency (LGFA) borrower notes, term v) Impairment of assets that are not held with the primary objective of deposits, related party loans and community loans. At each balance date the carrying amounts of generating a commercial return. For non-cash tangible and intangible assets are reviewed to generating assets, value in use is determined Fair value through other comprehensive determine whether there is any indication that using an approach based on either a depreciated revenue and expense those assets have suffered an impairment loss. If replacement cost approach, a restoration cost Financial assets at fair value through other any such indication exists (including indefinite life approach or a service units approach. The most comprehensive revenue and expense are those intangibles) the recoverable amount of the asset is appropriate approach used to measure value in that are designated into the category at initial estimated in order to determine the extent of the use depends on the nature of the impairment and impairment loss (if any). Where it is not possible to availability of information.

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191 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Statement of Accounting Policies

Value in use cash-generating assets y) Income tax aa) Cost allocation Cash-generating assets are those assets held with Income tax expense includes components The costs of providing support services for NPDC the primary objective of generating a commercial relating to current tax and deferred tax. Current are accumulated and are allocated to each Council return. The value in use for cash-generating assets tax is the amount of income tax payable based activity using appropriate allocation bases which and cash-generating units is the present value of on the taxable profit for the current year and any reflect the usage and/or capacity for each. expected future cash flows. adjustments in respect of prior years. Direct costs are those costs directly attributable to a w) Provisions z) Deferred tax significant activity. Direct costs are charged directly to significant activities. Provisions are recognised when NPDC has a Deferred tax is the amount of income tax payable present obligation as a result of a past event. A or recoverable in future periods in respect of Indirect costs are those costs that cannot be reliable estimate can be made for the amount of temporary differences and unused tax losses. identified in an economically feasible manner with the obligation and it is probable that the Council Temporary differences are differences between a specific significant activity. Indirect costs are will be required to settle that obligation. Provisions the carrying amount of assets and liabilities in the charged to significant activities using appropriate are measured at management’s best estimate of financial statements and the corresponding tax cost drivers such as actual usage, staff numbers, the expenditure required to settle the obligation at bases used in the computation of taxable profit. and floor area. balance date and are discounted to present value Deferred tax liabilities are generally recognised where the effect is material. ab) Dividends for all taxable temporary differences. Deferred Dividends are recognised when the right to receive tax assets are recognised to the extent that it is x) Employee benefits payment has been established. probable that taxable profits will be available Provision is made in respect of NPDC’s liability against which the deductible temporary differences for retiring gratuity allowances, annual and long ac) Foreign currency transactions or tax losses can be utilised. service leave and sick leave. Foreign currency transactions are translated into Deferred tax is not recognised if the temporary NZD (the functional currency) using the spot The retirement gratuity liability and long service difference arises from the initial recognition of exchange rate at the dates of the transactions. leave liability is assessed on an actuarial basis using goodwill or from the initial recognition of an asset Foreign exchanges gains and losses resulting from current rates of pay taking into account years of or liability in a transaction that affects neither the settlement of such transactions and from the service, years to entitlement and the likelihood staff accounting profit nor taxable profit. translation at year-end exchange rates of monetary will reach the point of entitlement. assets and liabilities denominated in foreign Current tax and deferred tax are measured using Liabilities for accumulating short-term currencies are recognised in the surplus or deficit. tax rates (and tax laws) that have been enacted or compensated absences (e.g. annual and sick leave) substantively enacted at balance date. are measured as the additional amount of unused ad) Goods and services tax (GST) entitlement accumulated at the balance sheet date. Current and deferred tax is recognised against All items in the financial statements are stated the profit or loss for the period, except to the Sick leave, annual leave, vested long service leave exclusive of GST, except billed receivables and extent that it relates to items recognised in other and non-vested long service leave and retirement payables, which include GST. Where GST is not comprehensive income or directly in equity. gratuities that are expected to be settled within recoverable as input tax then it is recognised as 12 months of balance date are classified as current. part of the related asset or expense.

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192 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Statement of Accounting Policies

The net amount of GST recoverable from, or • Joint ventures: where NPDC has rights to only the Equity method of accounting in Group financial payable to, the Inland Revenue Department (IRD) is net assets of the joint arrangement. statements included as part of receivables or payables. • Joint operations: where NPDC has both the rights Investments in joint ventures are accounted for in the The net GST paid to, or received from the IRD, to assets and obligations for the liabilities of the joint Group financial statements using the equity method including the GST relating to investing and arrangement. of accounting. The investment is initially recognised at financing activities, is classified as an operating cash cost. The carrying amount is increased or decreased to flow in the Statement of Cash Flows. Commitments In assessing the classification of interests in joint recognise the Group’s share of the change in the net and contingencies are disclosed exclusive of GST. arrangements, NPDC considers: assets of the entity after the date of acquisition. The • The structure of the joint arrangement. Group’s share of the surplus or deficit is recognised in the Group surplus or deficit. ae) Budget figures • The legal form of joint arrangements structured The LTP 2021-2031 budget figures are those through a separate vehicle. If the share of deficits of the joint venture equals or approved by NPDC on adoption of this plan. The • The contractual terms of the joint arrangement exceeds the interest in the joint venture, the Group plan figures have been prepared in accordance with agreement. discontinues recognising its share of further deficits. NZ GAAP, using accounting policies that are, or will After the Group’s interest is reduced to zero, additional be, consistent with those adopted by the Council • Any other facts and circumstances (including any deficits are provided as a liability to the extent that the for the preparation of the financial statements. other contractual arrangements). Group has incurred legal or constructive obligations or Judgement made payments on behalf of the joint venture. If the For all joint arrangements structured in separate joint venture subsequently reports surpluses, the Group Changes in accounting policies vehicles NPDC must assess the substance of the joint will resume recognising its share of those surpluses arrangement in determining whether it is classified NPDC has adopted the new group standards, PBE after its share of the surpluses equals the share of as a joint venture or joint operation. This assessment IPSAS 34 to 38, in preparing these financial statements. deficits not recognised. requires NPDC to consider whether it has rights to Adoption of the new standards has meant that the the joint arrangement’s net assets (in which case it is Early adoption of PBE IPSAS 41 financial instruments Council has updated its accounting policies for classified as a joint venture), or rights to and obligations NPDC has decided to early adopt PBE IPSAS 41 from its investments in subsidiaries and joint ventures. for specific assets, liabilities, expenses, and revenues (in 1 July 2021 for the purposes of these prospective Disclosures have also been updated for the new PBE which case it is classified as a joint operation). Factors financial statements. The comparative financial IPSAS 38 disclosure requirements. NPDC must consider include: information presented for the Annual Report 2019/20 For further information about the initial adoption of • Structure. and the Annual Plan 2020/21 were prepared using different financial instrument accounting policies these standards, refer to NPDC’s Annual Report 2019/20 • Legal form. (note 9b)). under PBE IPSAS 29. The Council has chosen not to • Contractual agreement. restate the comparatives to comply with PBE IPSAS Joint arrangements 41. Refer to the appropriate documents for the • Other facts and circumstances. detailed accounting policies used to prepare those NPDC is a party to a joint arrangement when there is a financial statements standard introduced a number contractual arrangement that grants joint control over Upon consideration of these factors, NPDC has of changes to the recognition and measurement of the relevant activities of the arrangement to the Council determined that all of its joint arrangements structured financial instruments, including new classification and and at least one other party. Joint control is the agreed through separate vehicles give it rights to the net assets measurement requirements for financial assets, new sharing of control over an activity. NPDC classifies its and are therefore classified as joint ventures. hedging requirements and a new impairment model interests in joint arrangements as either: for financial assets. This change has no impact on the figures reported in these financial statements.

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193 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Prospective Statement of Comprehensive Revenue and Expense

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Operating revenue Revenue from exchange transactions Finance revenue 2.26 1.72 1.71 1.68 1.65 1.62 1.59 1.56 1.53 1.50 1.47 Investment revenue 14.91 19.66 20.36 21.07 21.79 22.52 23.25 23.95 24.66 25.36 26.08 Other revenue 27.30 30.68 39.52 39.08 44.25 42.22 40.48 41.46 42.04 43.92 43.89 Revenue from non-exchange transactions Rates 97.91 109.75 117.52 125.84 137.23 147.83 157.99 166.86 174.15 180.67 187.74 Subsidies and grants 14.77 31.71 24.63 32.49 28.17 22.37 21.78 19.18 17.13 17.42 17.50 Development and financial contributions 2.36 2.96 3.08 3.19 3.31 3.44 3.57 3.71 3.85 3.99 4.15 Vested assets 4.21 4.30 4.40 4.54 4.65 4.77 4.89 5.02 5.15 5.29 5.43 Fines and levies 1.02 1.47 1.44 1.44 1.44 1.45 1.48 1.48 1.48 1.51 1.51 Total operating revenue 164.73 202.25 212.66 229.33 242.49 246.22 255.03 263.22 269.99 279.66 287.77

Operating expenditure Personnel costs 45.23 46.81 47.77 48.72 49.74 50.72 51.76 52.79 53.84 54.89 56.00 Depreciation and amortisation expenses 41.28 41.86 45.09 46.17 47.18 52.34 53.27 54.02 59.01 59.37 59.72 Finance costs 7.00 6.92 7.87 9.28 10.76 12.03 15.34 16.26 16.63 16.59 16.36 Other expenses 81.62 81.68 93.01 94.13 102.08 100.62 100.10 101.07 104.47 110.06 114.03 Total operating expenditure 175.12 177.27 193.74 198.30 209.76 215.71 220.47 224.14 233.95 240.91 246.11

Surplus/(deficit) before taxation (10.39) 24.98 18.92 31.03 32.73 30.51 34.56 39.08 36.04 38.75 41.66

Taxation refund/(expense) ------

Surplus/(deficit) after taxation (10.39) 24.98 18.92 31.03 32.73 30.51 34.56 39.08 36.04 38.75 41.66

Comprising surplus/(deficit) attributable to: Parent interest (10.39) 24.98 18.92 31.03 32.73 30.51 34.56 39.08 36.04 38.75 41.66

Other comprehensive revenue and expense Gain/(loss) on property, plant and equipment and equipment - 143.83 - - 252.12 - - 265.91 - - 309.86 revaluations Total other comprehensive revenue and expense - 143.83 - - 252.12 - - 265.91 - - 309.86

Total comprehensive revenue and expense (10.39) 168.81 18.92 31.03 284.85 30.51 34.56 304.99 36.04 38.75 351.52

Total comprehensive revenue and expense attributable to: New Plymouth District Council (10.39) 168.81 18.92 31.03 284.85 30.51 34.56 304.99 36.04 38.75 351.52

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194 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Prospective Statement of Changes in Equity

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m)

Equity at the beginning of the year 2,535.95 3,114.93 3,283.74 3,302.66 3,333.69 3,618.54 3,649.05 3,683.61 3,988.60 4,024.64 4,063.39

Net surplus/)deficit) from continued operations (10.39) 24.98 18.92 31.03 32.73 30.51 34.56 39.08 36.04 38.75 41.66 Other comprehensive revenue and expense - 143.83 - - 252.12 - - 265.91 - - 309.86 Total comprehensive revenue and expense (10.39) 168.81 18.92 31.03 284.85 30.51 34.56 304.99 36.04 38.75 351.52

Equity adjustment ------

Equity at the end of the year 2,525.56 3,283.74 3,302.66 3,333.69 3,618.54 3,649.05 3,683.61 3,988.60 4,024.64 4,063.39 4,414.91

Total comprehensive revenue and expense attributable to: New Plymouth District Council (10.39) 168.81 18.92 31.03 284.85 30.51 34.56 304.99 36.04 38.75 351.52

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195 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Prospective Statement of Financial Position

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Non-current assets Property, plant and equipment 2,910.66 3,090.06 3,144.31 3,220.41 3,540.91 3,594.61 3,650.42 3,962.58 3,992.07 4,014.46 4,348.73 Intangible assets 2.80 5.76 6.85 7.12 6.75 10.61 12.76 11.81 10.96 9.79 8.63 Forestry assets 5.06 5.69 4.79 4.85 3.80 3.61 3.72 3.84 3.96 3.30 3.40 Investments in CCOs and similar entities 43.32 58.19 57.44 56.69 55.94 55.19 54.44 52.19 49.94 47.69 45.44 Other financial assets 54.81 57.21 56.61 56.01 55.41 54.81 54.81 54.81 54.81 54.81 54.81 Derivative financial assets 0.76 0.76 0.76 0.76 0.76 0.76 0.76 0.76 0.76 0.76 0.76 Total non-current assets 3,017.41 3,217.67 3,270.76 3,345.84 3,663.57 3,719.59 3,776.91 4,085.99 4,112.50 4,130.81 4,461.77

Current assets Cash and cash equivalents 18.75 18.75 7.92 2.13 0.28 0.90 1.38 1.34 2.36 3.37 3.94 Debtors and other receivables 34.42 18.23 18.97 18.88 19.30 19.16 19.13 19.21 19.27 19.43 19.40 Non-current assets held for sale 0.09 0.67 0.38 0.45 0.50 0.60 0.51 0.47 0.34 0.75 0.09 Investments in CCOs and similar entities 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 Other financial assets 298.79 302.68 315.93 329.69 343.47 356.97 369.61 382.18 394.67 407.25 419.95 Intangible assets 0.63 ------Inventory 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 Total current assets 356.96 344.63 347.50 355.45 367.85 381.93 394.93 407.50 420.94 435.10 447.68 Total assets 3,374.37 3,562.30 3,618.26 3,701.29 4,031.42 4,101.52 4,171.84 4,493.49 4,533.44 4,565.91 4,909.45

Non-current liabilities Borrowings 169.35 179.98 193.14 255.70 299.49 334.38 374.18 392.90 414.71 407.70 398.46 Derivative financial liabilities 15.18 21.63 21.63 21.63 21.63 21.63 21.63 21.63 21.63 21.63 21.63 Other provisions 1.77 2.99 2.84 2.69 2.54 2.39 2.24 2.09 1.94 1.79 1.64 Employee entitlements 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 Total non-current liabilities 186.81 205.12 218.13 280.54 324.18 358.92 398.57 417.14 438.80 431.64 422.25

Current liabilities Creditors and other payables 34.82 24.27 28.24 31.76 33.31 34.07 35.12 35.12 35.29 36.10 37.43 Borrowings 55.40 44.00 64.00 50.00 50.00 54.00 49.00 47.00 29.00 29.00 29.00 Provisions 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 Employee entitlements 3.73 3.85 3.93 4.00 4.08 4.15 4.23 4.31 4.39 4.47 4.56 Derivative financial liabilities 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 Total current liabilities 95.26 73.44 97.49 87.08 88.71 93.54 89.67 87.75 70.00 70.89 72.31 Total liabilities 282.07 278.56 315.62 367.62 412.89 452.46 488.24 504.89 508.80 502.53 494.56

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196 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Prospective Statement of Financial Position

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Public equity Restricted reserves 58.96 65.09 46.28 37.23 42.71 52.86 53.86 56.07 62.90 70.25 76.20 Accumulated funds 1,576.88 1,618.35 1,656.06 1,696.14 1,723.40 1,743.78 1,777.32 1,814.19 1,843.40 1,874.79 1,910.50 Asset revaluation reserves 1,456.47 1,600.30 1,600.30 1,600.30 1,852.42 1,852.42 1,852.42 2,118.34 2,118.34 2,118.34 2,428.19 Total public equity 3,092.30 3,283.74 3,302.64 3,333.67 3,618.52 3,649.05 3,683.60 3,988.59 4,024.63 4,063.39 4,414.89 Total equity and liabilities 3,374.37 3,562.30 3,618.26 3,701.29 4,031.42 4,101.52 4,171.84 4,493.49 4,533.44 4,565.91 4,909.45

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197 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Prospective Cash Flow Statement

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Cash flows from operating activities Receipts from rates revenue 89.78 109.76 117.52 125.84 137.23 147.83 157.99 166.86 174.15 180.67 187.74 Interest received 2.26 1.72 1.71 1.68 1.65 1.62 1.59 1.56 1.53 1.50 1.47 Other revenue received 37.60 62.01 63.85 71.48 71.83 65.10 63.55 61.99 60.82 63.05 63.18 Payments to suppliers and employees (108.43) (118.18) (129.88) (132.62) (142.52) (144.35) (146.62) (149.83) (154.37) (159.67) (164.73) Distributions related to Waitara Lands Act (8.45) (16.06) (6.11) (6.85) (6.77) (6.11) (4.40) (4.19) (3.96) (3.90) (4.11) Interest paid (7.00) (6.92) (7.87) (9.28) (10.76) (12.03) (15.34) (16.26) (16.63) (16.59) (16.36) Net cash flows from operating activities 5.76 32.33 39.22 50.25 50.66 52.06 56.77 60.13 61.54 65.06 67.19

Cash flows from investing activities Receipts from sale of property, plant and equipment 18.67 7.68 7.56 8.24 8.28 7.60 5.71 5.38 5.07 4.90 5.54 Investments release to NPDC 10.28 10.56 11.19 11.81 12.40 12.97 13.56 14.16 14.76 15.37 15.96 Receipts from sale of other financial assets 0.75 10.28 0.75 0.75 0.75 0.75 0.75 2.25 2.25 2.25 2.25 Purchase of property, plant and equipment (49.76) (79.56) (98.63) (120.90) (113.35) (107.70) (108.16) (95.89) (83.82) (76.97) (78.55) Purchase of other financial assets (9.97) (4.32) (4.08) (4.50) (4.40) (3.95) (2.95) (2.78) (2.59) (2.59) (2.58) Net cash flows from investing activities (30.03) (55.36) (83.21) (104.60) (96.32) (90.33) (91.09) (76.88) (64.33) (57.04) (57.38)

Cash flows from financing activities Proceeds from borrowings 45.71 34.03 48.16 83.56 64.80 59.89 59.80 36.72 21.81 (7.01) (9.23) Repayment of borrowings (10.10) (11.00) (15.00) (35.00) (21.00) (21.00) (25.00) (20.00) (18.00) - - Net cash flows from financing activities 35.61 23.03 33.16 48.56 43.80 38.89 34.80 16.72 3.81 (7.01) (9.23)

Net increase/(decrease) in cash and cash equivalents 11.34 - (10.83) (5.79) (1.86) 0.62 0.48 (0.03) 1.02 1.01 0.58 Cash and cash equivalents at the beginning of the year 7.40 18.75 18.75 7.92 2.13 0.28 0.90 1.38 1.34 2.36 3.37 Cash and cash equivalents at the end of the year 18.75 18.75 7.92 2.13 0.27 0.90 1.38 1.35 2.36 3.37 3.95

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198 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Notes to Financial Statements

1. Revenue from targeted rates for metered water supply

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m)

Targeted rates for metered water supply 4.36 5.02 5.26 5.97 19.33 19.99 24.67 23.90 24.40 24.88 26.16

2. Group of activities combined depreciation and amortisation expense

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Community Partnerships 0.33 0.21 0.24 0.24 0.24 0.27 0.27 0.27 0.29 0.29 0.29 Customer and Regulatory Solutions 0.66 0.66 0.69 0.69 0.70 0.76 0.76 0.76 0.83 0.83 0.83 Economic Development 0.09 ------Emergency Management and Business Continuance 0.03 0.03 0.04 0.05 0.05 0.06 0.06 0.06 0.07 0.07 0.07 Flood Protection and Control Works 0.14 0.12 0.13 0.13 0.13 0.14 0.14 0.14 0.15 0.15 0.15 Governance 0.13 0.01 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 Govett-Brewster Art Gallery/Len Lye Centre 0.62 0.53 0.56 0.57 0.57 0.62 0.62 0.63 0.68 0.70 0.70 Management of Investments and Funding 0.04 ------Parks and Open Spaces 3.14 2.60 2.81 2.95 3.08 3.40 3.50 3.56 3.90 3.96 4.01 Puke Ariki and Community Libraries 1.82 2.08 2.20 2.21 2.21 2.51 2.60 2.60 2.82 2.82 2.82 Stormwater Management 2.78 3.69 3.96 4.02 4.14 4.56 4.62 4.67 5.12 5.17 5.23 Transportation 13.17 11.39 12.29 12.53 12.75 14.06 14.28 14.41 15.72 15.76 15.80 Venues and Events 2.00 1.39 1.53 1.65 1.85 2.18 2.24 2.32 2.44 2.44 2.44 Waste Management and Minimisation 1.06 0.46 0.50 0.51 0.51 0.62 0.63 0.63 0.68 0.68 0.68 Wastewater Treatment 6.27 9.48 10.25 10.59 10.85 12.01 12.26 12.55 13.86 14.01 14.17 Water Supply 5.06 6.60 7.09 7.22 7.28 7.99 8.09 8.20 8.95 8.98 9.02 Other 1.42 2.61 2.78 2.78 2.79 3.14 3.19 3.20 3.48 3.48 3.49 Total depreciation and amortisation expense 38.54 41.86 45.09 46.17 47.18 52.34 53.27 54.02 59.01 59.37 59.72

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Statement of Reserve Funds

NPDC maintains reserve funds as a part of its equity – refer to statement of accounting policies earlier in this section. Schedule 10 Clause 16 requires certain information to be included pertaining to these reserve funds. The following presents a summary of reserve funds over the period of this plan and is followed by a breakdown into the various reserve fund types giving a brief explanation of the types of funds under each category and a table giving the opening balances, movements and closing balances. Summary of Reserve Funds The following is a summary of NPDC’s expected reserve funds over the life of this plan. A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Opening balances 72.82 74.01 65.10 46.29 37.24 42.72 52.87 53.87 56.08 62.91 70.26 Deposits to reserves 19.63 27.14 28.87 30.00 37.63 42.19 46.02 50.53 52.96 55.76 57.18 Withdrawals from reserves (33.44) (36.05) (47.68) (39.05) (32.16) (32.04) (45.01) (48.33) (46.13) (48.41) (51.23) Closing balances 59.01 65.10 46.29 37.24 42.72 52.87 53.87 56.08 62.91 70.26 76.21

Note. Opening balances for Budget 2021/22 have been adjusted to reflect the actual opening position at 1 July 2020 and impacts of forecast for 2020/21.

1. Operating reserve funds. These are set aside to fund short-term operational matters, such as some loan repayments, or to hold short-term surpluses arising from operations. If not required can be transferred to renewal reserves. A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Opening balances 16.04 14.54 11.65 8.39 6.40 6.70 6.99 7.23 7.52 7.81 8.10 Deposits to reserves - 0.35 (0.15) 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 Withdrawals from reserves (1.50) (3.24) (3.11) (2.59) (0.30) (0.31) (0.36) (0.31) (0.31) (0.31) (0.31) Closing balances 14.54 11.65 8.39 6.40 6.70 6.99 7.23 7.52 7.81 8.10 8.39 2. Restricted reserves, trust and bequest funds. These are funds subject to specific conditions accepted as binding by NPDC, such as bequests or operations in trust under specific Acts, and which may not be revised by the Council without reference to the Courts or third party. Transfers from these reserves may be made only for certain specified purposes or when certain specified conditions are met. These include the Waitara Perpetual Community Fund (held by NPDC for Te Tai Pari Trust), heritage funds, proceeds from sale of Junction Road leases, Solid Waste Development Fund, Central Landfill Development Fund, Ngamotu Masonic Lodge Bursary Fund and certain bequest funds: Monica Brewster, Molly Morpeth Canaday, J T Gibson. These funds are applied to infrastructural asset activities, Puke Ariki and Govett-Brewster Art Gallery.

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Opening balances 21.25 36.48 38.46 40.53 43.99 49.12 53.14 55.71 58.93 62.44 66.62 Deposits to reserves 0.45 4.02 5.81 4.73 6.27 5.03 4.18 4.25 4.68 5.48 4.90 Withdrawals from reserves (0.22) (2.04) (3.74) (1.27) (1.15) (1.01) (1.60) (1.04) (1.17) (1.30) (1.41) Closing balances 21.48 38.46 40.53 43.99 49.12 53.14 55.71 58.93 62.44 66.62 70.11

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Statement of Reserve Funds

3. Development funds. These include development and financial contributions levied by NPDC for capital works and are intended to contribute to the growth related capital expenditure in the infrastructural asset activities of Roads, Water Supply, Wastewater Management, Stormwater Drainage, Flood Protection and Control Works, Parks, Venues and Events, Puke Ariki and Govett-Brewster Art Gallery.

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Opening balances 1.33 1.33 0.90 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 Deposits to reserves ------Withdrawals from reserves - (0.43) (0.31) ------Closing balances 1.33 0.90 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59

4. Renewal and disaster funds. NPDC sets aside funding to meet the renewal of its infrastructural and operating assets to ensure the continued ability of the Council to provide services. In addition NPDC maintains a disaster fund as a part of its insurance strategies. The renewal funds are applied to all activities throughout NPDC.

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Opening balances 34.20 21.66 14.09 (3.18) (13.70) (13.65) (7.77) (9.58) (10.88) (7.85) (4.97) Deposits to reserves 19.18 22.77 23.21 24.67 30.76 36.56 41.24 45.68 47.68 49.68 51.68 Withdrawals from reserves (31.72) (30.34) (40.48) (35.19) (30.71) (30.68) (43.05) (46.98) (44.65) (46.80) (49.51) Closing balances 21.66 14.09 (3.18) (13.70) (13.65) (7.77) (9.58) (10.88) (7.85) (4.97) (2.80)

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Disclosure Statement for the period commencing 1 July 2021

What is the purpose of this statement Rates (increases) affordability The following graph compares NPDC’s planned rates increases with a quantified The purpose of this statement is to disclose NPDC’s planned financial performance limit on rates increases contained in the Financial Strategy included in this LTP. The in relation to various benchmarks to enable the assessment of whether the Council quantified limit is set at 12 per cent for year one and nine per cent in the folloiwng is prudently managing its revenues, expenses, assets, liabilities, and general financial years. dealings. 14.0% NPDC is required to include this statement in its LTP in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the Regulations). 12.0% Refer to the Regulations for more information, including definitions of some of the 10.0% terms used in this statement. 8.0% Rates affordability benchmark 6.0% 4.0% NPDC meets the rates affordability benchmark if its planned rates increases equal or Rates% Increases are less than each quantified limit on rates increases. 2.0% Rates (Income) affordability 0.0% The following graph compares NPDC’s planned rates with a quantified limit on rates Year contained in the Financial Strategy included in this LTP. The quantified limit is that Quantified Limit on Rates Increase rates will not exceed 75 per cent of operating revenue. Proposed Rates Increase (at or within limit) 80% Proposed Rates Increase (exceeds limit)

70% Note. The proposed rates percentage increase for years two to 10 is the percentage increase 60% with the base being the prior year proposed rates. In 2021/22 (year one), the proposed rates increase is the percentage increase with the base being the actual rates set in 2020/21. 50%

40% Debt affordability benchmark NPDC meets the debt affordability benchmark if its planned borrowing is within each 30% quantified limit on borrowing: 20% • interest expenses on external borrowings is less than each quantified limit on 10% borrowing; and • net external debt is less than each quantified limit on borrowing.

% Ratesof IncomeRevenuetoOperating 0%

Year

Quantified Limit on Rates Income Proposed Rates Income (at or within limit) Proposed Rates Income (exceeds limit)

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Disclosure Statement

Debt (expense) affordability Balanced budget benchmark The following graph compares NPDC’s planned debt with a quantified limit on The following graph displays NPDC’s planned revenue (excluding development borrowing contained in the Financial Strategy included in this LTP. The quantified contributions, financial contributions, vested assets, gains on derivative financial limit per the Financial Strategy is for interest expense on external borrowings to be no instruments and revaluations of property, plant or equipment) as a proportion of more than 12.5 per cent of rates income. planned operating expenses (excluding losses on derivative financial instruments and 15.0% revaluations of property, plant or equipment).

12.0% NPDC meets the balanced budget benchmark if its planned revenue equals or is greater than its planned operating expenses. 9.0% 120

107 107 107 109 107 108 109 6.0% 110 105 106 101 100 3.0% % Interestof toRates Income 90 88

0.0% 80

Year

/Operating expenditure (%) expenditure /Operating 70 Quantified Limit on Debt Expense Proposed Debt Expense (at or within limit) 60 Proposed Debt Expense (exceeds limit) Revenue 50 Debt affordability Year The following graph compares NPDC’s planned debt with a quantified limit on borrowing contained in the Financial Strategy included in this LTP. The quantified limit per the Financial Strategy is for net external borrowings to be no more than 135 per Benchmark not met Benchmark met cent of total revenue. 150%

100%

50%

0%

NetRevenue/Debt (%) -50%

-100%

Year

Quantified Limit on Debt Proposed Debt (at or within limit) Proposed Debt (exceeds limit)

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Disclosure Statement

Essential services benchmark Debt servicing benchmark

The following graph displays NPDC’s planned capital expenditure on network services The following graph displays NPDC’s planned borrowing costs as a proportion of as a proportion of expected depreciation on network services. planned revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments and revaluations of property, NPDC meets the essential services benchmark if its planned capital expenditure on plant or equipment). network services equals or is greater than expected depreciation on network services. Because Statistics New Zealand projects NPDC’s population will grow more slowly 280 259 than the national population is projected to grow, it meets the debt servicing 260 benchmark if its planned borrowing costs equal, or are less than, 10 per cent of its 240 231 220 211 204 planned revenue. 200 185 189 184 12 180 161 160 137 142 142 140 10 120 100 8 80 6.5 6.6 6.6 6.4 60 6.1 40 6 5.3 4.8 20 4.6 4.4 3.7 4.0 0 4 Capital expenditure/Depreciation (%) Year 2 Borrowing Cost/Revenue (%) Cost/Revenue Borrowing

0 Benchmark not met Benchmark met Year

Benchmark met Benchmark not met

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Rating System and Information

Rating policies, system and indicative 1. General rates rates NPDC will set a general rate based on the land value of rateable land in the district together with a uniform annual general charge (UAGC) applied to all SUIPs of a rating unit. This section complies with the requirements under Schedule 10 clauses 15(3)-(5) and 15A of the Local Differential land value categories Government Act 2002. It should be read in conjunction NPDC differentiates the general rate based on land use (Schedule 2 Local Government (Rating) Act 2002). The with New Plymouth District Council’s (NPDC) Revenue differential categories and percentages of total general rate requirement that apply to each group are: and Financing Policy. Figures quoted are exclusive of GST unless otherwise stated. Fixed Revenue sought Differential 2021/22 Definition of Separately Used or Inhabited Part % ($) of a Rating Unit (SUIP) Group 1: Commercial/Industrial 26.9 19,495,098 A SUIP is defined as a separately used or inhabited part All rating units that are used primarily for any commercial or industrial purpose of a rating unit and includes any part of a rating unit Group 2: Residential 54 39,135,140 that is used or occupied by any person, other than the All rating units with a land area of one hectare or less, not being rating units in ratepayer, having a right to use or inhabit that part by Group 1, used for residential and related purposes. virtue of a tenancy, lease, licence, or other agreement, Group 3: Small Holdings 3.6 2,609,010 or any part or parts of a rating unit that are used or All rating units, not being rating units included in Groups 1 or 2, having a land occupied by the ratepayer for more than one single use. area of more than one hectare but no greater than four hectares. Separately used or inhabited parts include: Group 4: Farmland 15.5 11,233,235 • A residential, small holding, or farmland property All rating units, not being rating units included in Groups 1, 2 or 3, having a land that contains two or more separately occupiable area in excess of four hectares. units, flats or houses each of which is separately Total 100 72,472,483 inhabited or is capable of separate inhabitation, i.e. has independent kitchen facilities. The Revenue and Financing Policy outlines the rules for inclusion into the different groups. • A commercial premise that contains separate shops, kiosks, other retail or wholesale outlets, or Application of differential calculation offices, each of which is operated as a separate business or is capable of operation as a separate The differential percentages are applied to the total general rate required. The UAGC component is then business. deducted and the balance is allocated based on individual land values within each category. Refer to the table below.

Group 1 Group 2 Group 3 Group 4 Commercial/ Residential Small Holdings Farmland Industrial Group differential requirement 19,495,098 39,135,140 2,609,010 11,233,235 Total UAGC from Group collected 913,873 11,962,896 658,142 1,177,667 Group requirement from land value calculation 18,581,225 27,172,244 1,950,868 10,055,568

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Rating System and Information

The differentials per dollar land value are set in the 4. Targeted service charge rates iii) Waitara industrial - untreated supply $0.96 table below. NPDC will charge the following targeted rates: (per cubic metre) for 2021/22. Differential category Rate Differential • Water supply. c) Restricted flow targeted rate. A restricted cents/$ factor • Sewage treatment and disposal. flow targeted rate is determined by the Commercial/Industrial 1.5254 4.14 • Refuse collection and disposal. (user nominated) volume of water able to be Residential 0.3683 1.00 • Swimming pool compliance. supplied within a fixed time period to a SUIP for properties that are not metered and are Small Holdings 0.2998 0.81 • Voluntary targeted rate - Ngā Whare Ora Taiao o connected to a rural water supply (in accordance Ngāmotu (New Plymouth Sustainable Homes) Farmland 0.2934 0.80 with NPDC’s Bylaw Part 14 - Water, Wastewater Scheme. and Stormwater Services). For 2021/22, the Unless otherwise noted, only those properties 3 2. Uniform annual general charge amount per 1m unit is $226.77. that actually receive the service are liable for these NPDC will set a UAGC which is a fixed amount charges, irrespective of differential category. The network fixed charge targeted rate is a assessed on every SUIP. The amount per SUIP targeted amount per SUIP which is connected to (excluding GST) is set in the table below. a water supply by an annual water charge. The 5. Water supply amount per SUIP is $37.60 for 2021/22, 2022/23 and 2021/22 2022/23 2023/24 NPDC has three mechanisms of payment for water 2023/24. supply. UAGC (excluding GST) 383.98 392.20 404.60 For properties that are not connected to an urban a) Annual water charge is a targeted rate being or rural water supply a targeted rate is not assessed. Both the general rate and the UAGC will be used a fixed amount per SUIP which is connected to fund, or assist with funding, all Council activities to an urban water supply but not charged 6. Sewage treatment and disposal other than those funded by way of targeted rates volumetrically. This rate will be charged in for roading, water supply, sewage treatment and 2021/22, 2022/23 and 2023/24 and will be All rating units other than commercial/industrial disposal, refuse collection and kerbside recycling, discontinued in 2024/25.The amount per SUIP is and schools swimming pool compliance and voluntary targeted $318.40 (excluding GST) for 2021/22. NPDC will set a targeted rate for sewage treatment rate for Ngā Whare Ora Taiao o Ngāmotu and disposal as a fixed amount per SUIPs (other (New Plymouth Sustainable Homes) Scheme. b) On demand supplies of water by meter is a than commercial/industrial rating units and rate per cubic metre of water supplied to each schools) connected either directly or through a connection which is metered and charged 3. Targeted roading rate private drain to a public sewerage drain. volumetrically and connected to an urban or NPDC will set a targeted rate - the Uniform Annual The amount per SUIP is $470.43 for 2021/22. Roading Charge (UARC) to partially fund the rural water supply. A scale of charges is applied roading activity on all rateable land in the district as follows: Commercial/industrial and schools of a fixed amount per SUIP. The amount per SUIP i) Standard rate for consumption up to or NPDC will set a targeted rate per water closet (excluding GST) is set in the table below. equal to 50,000m3 per annum $1.41 (per or urinal per SUIP connected either directly or cubic metre) for 2021/22. through a private drain to a public sewerage drain 2021/22 2022/23 2023/24 ii) Rate for consumption in excess of 50,000m3 or commercial/industrial properties and schools as UARC (excluding GST) 116.22 119.01 122.46 per annum $1.43 (per cubic metre) for per the following scale per water closet or urinal for 2021/22. 2021/22.

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Rating System and Information

($) 8. Swimming pool compliance (registration Due dates and penalties and audit inspection pursuant to the One to two 470.43 NPDC’s rates (excluding metered water rates) for the Building Act 2004) Three 400.00 2021/22 year (1 July 2021 to 30 June 2022) will become NPDC will set a targeted rate for swimming pool due and payable by four equal instalments on the Four 353.04 compliance as a fixed amount per SUIP which have following dates: Five 306.09 a swimming pool/spa pool on the rating unit. The Instalment 1: 25 August 2021 Six to 10 282.61 amount per SUIP is $42.44 for 2021/22. 11 to 15 259.13 Instalment 2: 24 November 2021 9. Voluntary Targeted Rate - Ngā Whare Ora 16 to 20 246.96 Instalment 3: 23 February 2022 Taiao o Ngāmotu (New Plymouth 21 or more 235.65 Sustainable Homes) Scheme Instalment 4: 25 May 2022 The Ngā Whare Ora Taiao o Ngāmotu Expansion of sewerage scheme charges NPDC will charge a penalty of 10 per cent on any part of (New Plymouth Sustainable Homes) Scheme (including Ōākura) each respective instalment (for rates excluding metered rate is a targeted rate set on properties that have water rates) that remains unpaid after the instalment For rating units in the area to which the sewerage benefited from funding by NPDC in respect of the due dates listed above. scheme was expanded and is now available property for a range of household sustainability (including Ōākura), where an agreement to initiatives. The rate is calculated at either In addition, NPDC will charge a penalty of 10 per cent connect was obtained but the rating unit has not 11.1 per cent (for those who opted for a nine year yet connected, a targeted rate per SUIP will be set on any portion of rates (for rates excluding metered repayment period) or 20 per cent (for those who water rates) that were assessed or levied in any previous as a fixed amount (which is half the full amount). opted for a five year repayment period) of the The amount per SUIP for 2021/22 is $235.65. Once financial years prior to 1 July 2021 and which remain service amount (the cost of the borrowed amount) unpaid on 1 July 2021. The penalty will be applied on connected the full amount will apply in the next until the service amount and the costs of servicing financial year. 30 September 2021 and a further additional penalty of the service amount are recovered and is charged 10 per cent on any portion of rates that were assessed All rating units in the district which are neither on a rating unit basis. For the avoidance of doubt, or levied in any previous financial years and which connected to the sewerage system or are not this rate includes ratepayers who used NPDC’s remain unpaid on 31 March 2022. serviceable are not liable for these rates. Voluntary Targeted Rate for Home Energy Scheme prior to its expansion as Ngā Whare Ora Taiao o Metered water rates for the 2021/22 year (1 July Ngāmotu (New Plymouth Sustainable Homes) 7. Refuse collection and disposal including 2021 to 30 June 2022) will generally be invoiced on a Scheme. kerbside recycling quarterly basis. However, rating units may be invoiced monthly if the unit has previously been invoiced NPDC will set a targeted rate for refuse collection monthly or NPDC has been notified before 30 June 2021 and disposal (including kerbside recycling) as to be invoiced monthly. a fixed amount per SUIP to which the Council provides the service for which the charge is assessed. The amount per SUIP is $172.00 for 2021/22.

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Rating System and Information

Invoices for metered water invoiced quarterly will Invoices for metered water invoiced on a monthly Instalment 7: 21 February 2022 become due and payable on the following dates: basis will become due and payable on the following Instalment 8: 21 March 2022 dates: Instalment 1: 24 November 2021 Instalment 9: 20 April 2022 Instalment 2: 23 February 2022 Instalment 1: 20 August 2021 Instalment 10: 20 May 2022 Instalment 3: 25 May 2022 Instalment 2: 20 September 2021 Instalment 11: 20 June 2022 Instalment 4: 24 August 2022 Instalment 3: 20 October 2021 Instalment 12: 20 July 2022 Instalment 4: 22 November 2021 NPDC will charge a penalty of 10 per cent on any part NPDC will charge a penalty of 10 per cent on any part of each respective instalment (for metered water Instalment 5: 20 December 2021 of each respective instalment (for metered water rates) that remains unpaid after the instalment due Instalment 6: 20 January 2022 rates) that remains unpaid after the instalment due dates listed above. dates listed above.

Rating base information

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31

Projected number of rating units 36,329 36,716 37,103 37,490 37,877 38,264 38,651 39,038 39,425 39,812 40,199 Projected total capital value of rating units ($m) 24,076 24,244 24,394 24,544 24,695 24,845 24,995 25,152 25,309 25,466 25,623 Projected total land value of rating units ($m) 12,825 12,993 13,143 13,293 13,444 13,594 13,744 13,901 14,058 14,215 14,372

Lump sum contributions NPDC may accept lump sum contributions in respect of any targeted rate.

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Rating System and Information

Examples of the impact of the rating proposals (GST inclusive) The following examples show the impact of the rating proposals on low, medium and high valued properties for each differential for 2021/22. They are required to be provided under clause 15(5) of Schedule 10 of the Local Government Act 2002 and are indicative only. (Plus, approximate average case for each group based on average land value and pans for commercial/industrial.) The examples exclude the swimming pool compliance targeted rate and the voluntary Ngā Whare Ora Taiao o Ngāmotu (New Plymouth Sustainable Homes) Scheme targeted rate. More information about these rates can be found on page 178.

Residential land value (LV) $111,000 LV $165,000 LV $215,000 LV $285,000 LV $500,000 LV

General Rate 470.13 698.85 910.62 1,207.10 2,117.73 Uniform annual general charge 441.58 441.58 441.58 441.58 441.58 Targeted rates Uniform annual roading charge 133.65 133.65 133.65 133.65 133.65 Uniform annual sewage charge 541.00 541.00 541.00 541.00 541.00 Uniform annual water charge: - Network fixed charge 43.24 43.24 43.24 43.24 43.24 - Standardised consumption charge 366.16 366.16 366.16 366.16 366.16 Uniform annual refuse charge 197.80 197.80 197.80 197.80 197.80 Total 2,193.56 2,422.28 2,634.05 2,930.53 3,841.16

Increase $ over 2020/21 164.57 200.22 233.23 279.43 421.35

Commercial/Industrial land value (LV) $42,000 LV $205,000 LV $380,000 LV $720,000 LV $1,930,000 LV

General Rate 736.77 3,596.13 6,666.00 12,630.31 33,856.25 Uniform annual general charge 441.58 441.58 441.58 441.58 441.58 Targeted rates Uniform annual roading charge 133.65 133.65 133.65 133.65 133.65 Uniform annual sewage charge 541.00 541.00 1,760.00 1,760.00 3,250.00 Uniform annual water charge: - Network fixed charge 43.24 43.24 43.24 43.24 43.24 - Standardised consumption charge 366.16 366.16 366.16 366.16 366.16 Total 2,262.40 5,121.76 9,410.63 15,374.94 38,090.88

Increase $ over 2020/21 194.08 623.72 1,165.95 2,062.13 5,431.48

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Rating System and Information

Small Holdings land value (LV) $170,000 LV $280,000 LV $335,000 LV $425,000 LV $640,000 LV

General Rate 586.11 965.36 1,154.98 1,465.27 2,206.53 Uniform annual general charge 441.58 441.58 441.58 441.58 441.58 Targeted rates Uniform annual roading charge 133.65 133.65 133.65 133.65 133.65 Total 1,161.34 1,540.59 1,730.21 2,040.50 2,781.76

Increase $ over 2020/21 93.75 152.19 181.41 229.23 343.46

Farmland land value (LV) $150,000 LV $395,000 LV $570,000 LV $1,200,000 LV $4,020,000 LV

General Rate 506.12 1,332.77 1,923.24 4,048.92 13,563.88 Uniform annual general charge 441.58 441.58 441.58 441.58 441.58 Targeted rates Uniform annual roading charge 133.65 133.65 133.65 133.65 133.65 Total 1,081.35 1,908.00 2,498.47 4,624.15 14,139.11

Increase $ over 2020/21 68.64 175.13 251.21 525.07 1,750.92

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Rating System and Information

Total Rates A/Plan LTP 2020/21 2021/22 ($) ($) Uniform annual general charge (UAGC) 14,457,272 14,712,578 General rate 49,267,260 57,759,985 Sub total (general rates) 63,724,532 72,472,563 Uniform annual roading charge (UARC) 4,369,939 4,447,977 Uniform annual sewage charge (UADC) 14,381,106 15,238,132 Uniform annual water charge (UAWC) 8,438,575 9,931,442 Water by meter charges 4,358,052 5,019,558 Uniform annual refuse charge (UARC) 4,885,121 5,070,408 Swimming pool compliance charge (UAPC) - 42,000 Sub total (targeted rates/charges) 36,432,793 39,749,517 Total 100,157,325 112,222,080

The figures above do not include GST. GST will be added at applicable rates.

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Rating System and Information

Rates and Charges A/Plan LTP Rates and Charges A/Plan LTP 2020/21 2021/22 2020/21 2021/22 ($) ($) ($) ($) General rates Ngā Whare Ora Taiao o Ngāmotu (New Plymouth Sustainable Homes) Scheme - Uniform annual general charge 381.69 383.98 funding assistance depending on each funding arrangement Differential rates (cents per $ of rateable value): Water charges - Group 1 (Commercial/Industrial) 1.2962c 1.5254c On demand supplies by water by meter (WBM): - Group 2 (Residential) 0.3109c 0.3683c - Supply charge (for all metered customers) 32.00 37.60 3 - Group 3 (Small Holdings) 0.2536c 0.2998c - Standard rate for consumption up to 50,000m 1.20 1.41 (per cubic metre) - Group 4 (Farmland) 0.2556c 0.2934c - Industrial rate for consumption in excess of 1.22 1.43 Targeted rates/charges 50,000m3 per annum (per cubic metre) Uniform annual roading charge 115.53 116.22 Waitara industrial - untreated supply (per cubic 0.82 0.96 Uniform annual refuse charge per serviced 165.11 172.00 metre) household Restricted flow connections (per water unit as 192.62 226.77 Uniform annual sewage charge - all rating units 453.91 470.43 defined by Water, Wastewater and Stormwater other than commercial/industrial Services Bylaw (Part 14)) Uniform annual sewage charge - commercial/ Note: large users are charged the standard WBM rate to 50,000m3 and the industrial rate for industrial (including schools) (scale of charges per amounts in excess of 50,000m3 water closet or urinal): The figures above do not include GST. GST will be added at applicable rates. - One to two 453.91 470.43 - Three 380.00 400.00 - Four 332.17 353.04 - Five 288.70 306.09 - Six to 10 258.26 282.61 - 11 to 15 240.87 259.13 - 16 to 20 232.17 246.96 - 21 or more 227.83 235.65 Ōākura part charge 236.52 235.65 Uniform annual water charge: - Network fixed charge 32.00 37.60 - Consumption variable charge 271.00 318.40 Swimming pool compliance charge 42.19 42.44

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Funding Impact Statement

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding General rates, uniform annual charges, rates penalties 61.92 70.42 75.75 79.16 88.85 91.26 99.29 100.71 103.15 104.78 107.29 Targeted rates 36.04 39.33 41.77 46.68 48.38 56.57 58.71 66.15 70.99 75.88 80.44 Subsidies and grants for operating purposes 6.61 8.95 7.30 7.12 8.31 8.35 8.47 8.72 8.80 9.13 9.67 Fees and charges 18.24 25.97 34.93 33.74 38.80 37.19 36.79 37.82 38.53 40.42 40.15 Interest and dividends from investments 12.54 12.28 12.91 13.49 14.05 14.59 15.15 15.72 16.29 16.87 17.43 Local authorities fuel tax, fines, infringement fees and other receipts 0.85 1.38 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 1.37 Total operating funding (A) 136.20 158.33 174.03 181.56 199.76 209.33 219.78 230.49 239.13 248.45 256.35

Applications of operating funding Payments to staff and suppliers (131.41) (131.32) (142.61) (145.69) (153.62) (154.06) (154.94) (157.02) (161.53) (167.48) (173.38) Finance costs (7.04) (6.92) (7.87) (9.28) (10.76) (12.03) (15.34) (16.26) (16.63) (16.59) (16.36) Internal charges and overheads applied - 2.67 2.73 2.80 2.86 2.92 2.98 3.05 3.12 3.20 3.26 Other operating funding applications ------Total applications of operating funding (B) (138.45) (135.57) (147.75) (152.17) (161.52) (163.17) (167.30) (170.23) (175.04) (180.87) (186.48) Surplus/(deficit) of operating funding (A - B) (161.53) 22.76 26.28 29.39 38.24 46.16 52.48 60.26 64.09 67.58 69.87

Sources of capital funding Subsidies and grants for capital expenditure 8.63 22.76 17.33 25.37 19.86 14.02 13.31 10.46 8.34 8.29 7.83 Development and financial contributions 2.36 2.96 3.08 3.19 3.31 3.44 3.57 3.71 3.85 3.99 4.15 Increase/(decrease) in debt 12.33 23.03 33.15 48.56 43.81 38.89 34.80 16.71 3.81 (7.01) (9.24) Gross proceeds from sale of assets 17.40 7.68 7.56 8.23 8.28 7.60 5.70 5.38 5.06 4.90 5.54 Lump sum contributions ------Other dedicated capital funding ------Total sources of capital funding (C) 40.72 56.43 61.12 85.35 75.26 63.95 57.38 36.26 21.06 10.17 8.28

Applications of capital funding Capital expenditure: - to meet additional demand (5.61) (8.21) (10.27) (11.10) (7.73) (6.58) (7.95) (10.30) (6.56) (7.56) (7.84) - to improve the level of service (12.42) (30.32) (43.25) (57.93) (50.84) (49.75) (49.01) (30.07) (24.10) (14.14) (13.19) - to replace existing assets (31.74) (41.03) (45.11) (51.87) (54.78) (51.37) (51.20) (55.51) (53.15) (55.26) (57.51) (Increase)/decrease in reserves 11.30 6.93 8.50 3.01 (3.20) (5.01) (3.90) (1.17) (1.68) (1.13) 0.06 (Increase)/decrease of investments - (6.56) 2.73 3.15 3.05 2.60 2.20 0.53 0.34 0.34 0.33 Total applications of capital funding (D) (38.47) (79.19) (87.40) (114.74) (113.50) (110.11) (109.86) (96.52) (85.15) (77.75) (78.15) Surplus/(deficit) of capital funding (C-D) 2.25 (22.76) (26.28) (29.39) (38.24) (46.16) (52.48) (60.26) (64.09) (67.58) (69.87)

Funding balance (A-B) + (C-D) ------

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Funding Impact Statement

Other information to be provided Clause 5(4) Local Government (Financial Reporting and Prudence) Regulations 2014

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Depreciation and amortisation expense Depreciation expense 36.74 41.86 45.09 46.17 47.18 52.34 53.27 54.02 59.01 59.37 59.72 less deferred/unfunded (18.30) (19.30) (22.08) (21.70) (16.62) (15.97) (12.22) (8.54) (11.52) (9.88) (8.23) Net funding transferred to renewals reserves 18.44 22.56 23.01 24.47 30.56 36.37 41.05 45.48 47.49 49.49 51.49

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Reconciliation Summary

Reconciliation of prospective financial plan, summary funding impact statement and prospective financial statements PBE FRS 42: Prospective Financial Statements (specifically paragraph 40) requires reconciliation or narrative explaining differences in presentation of prospective financial information. Earlier in this section, NPDC presented its Prospective Financial Plan, Prospective Financial Statements and Summary Funding Impact Statement. The following reconciliation explains the differences in accounting treatment of the operating sections of each of the prospective financial statements.

A/Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Sources of operating funding Total operating funding (A) 136.20 158.33 174.02 181.55 199.76 209.33 219.77 230.49 239.14 248.46 256.35 add sources of capital funding: - Subsidies and grants for capital expenditure 8.63 22.76 17.33 25.37 19.86 14.02 13.31 10.46 8.34 8.29 7.83 - Development and financial contributions 2.36 2.96 3.08 3.19 3.31 3.44 3.57 3.71 3.85 3.99 4.15 add Statement of comprehensive revenue and expense: - Unrealised gain/(loss) on PIF 4.63 9.10 9.17 9.26 9.39 9.55 9.69 9.80 9.89 10.00 10.12 - Disposals gain/(loss) from sale of assets 8.70 4.80 4.66 5.42 5.52 5.12 3.79 3.75 3.62 3.64 3.88 - Vested assets 4.21 4.30 4.40 4.54 4.65 4.77 4.89 5.02 5.15 5.29 5.43 Total operating revenue as per statement of comprehensive 164.73 202.25 212.66 229.33 242.49 246.23 255.02 263.23 269.99 279.67 287.76 revenue and expense Applications of operating funding Total applications of operating funding (B) 138.46 135.57 147.75 152.17 161.52 163.17 167.30 170.23 175.04 180.87 186.47 add Statement of comprehensive revenue and expense: - Depreciation and amortisation expenses 36.74 41.86 45.09 46.17 47.18 52.34 53.27 54.02 59.01 59.37 59.72 - Revaluation (gain)/loss on forestry (0.12) (0.17) 0.90 (0.06) 1.04 0.19 (0.11) (0.12) (0.12) 0.66 (0.10) Total operating revenue as per statement of comprehensive 175.08 177.26 193.74 198.28 209.74 215.70 220.46 224.13 233.93 240.90 246.09 revenue and expense

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Council Controlled Organisations

The Local Government Act 2002 requires the Council to include in the LTP information on Council Controlled Organisations, i.e. those organisations over which the Council has a 50 per cent or more shareholding or level of governance control. Information is based on the latest draft 2021/22 Statements of Intent.

This includes information on the: • Council’s policies and objectives that relate to ownership and control of the organisation. • Nature and scope of the activities to be provided by the Council Controlled Organisations. • Key performance targets and other measures by which performance may be judged.

The Council is a shareholder or has an ownership interest in the following Council-Controlled Organisations: • Papa Rererangi i Puketapu Limited. • Forestry Joint Ventures • New Plymouth PIF Guardians Limited • Tasmanian Land Company Limited • Venture Taranaki Trust

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Papa Rererangi i Puketapu Limited

Nature and scope of activity The Airport is viewed as an essential infrastructure asset Significant policies and objectives on for the district and the Taranaki region and has a key ownership and control In July 2017, the Council established Papa Rererangi i role to play in the economic performance, growth and Puketapu Ltd (PRIP) as a separate Council Controlled development of the area. PRIP will work collaboratively PRIP operates as a standalone company governed Trading Organisation (CCTO) to manage the full with the Council, the Venture Taranaki Trust, the Taranaki by an independent skills based Board of directors operations of New Plymouth Airport and to oversee Chamber of Commerce and other key stakeholders, and employs its own Chief Executive and staff. All a major redevelopment of the Airport’s terminal and ensuring a combined approach to achieve the region’s Airport operations and assets are managed by the surrounding infrastructure. The Council still retains desired strategic goals. PRIP Chief Executive who has overall responsibility for ownership of the Airport company, the Aerodrome implementing the company’s strategic direction. Operator Certificate and is the sole Shareholder. Key annual objectives and The organisation is classed as a semi-commercial performance indicators investment within the Council’s Investment Policy. 1. Maintain the Airport facilities to avoid any PRIP’s prime purpose is to operate the Airport on a disruption of scheduled commercial flights other sustainable commercial basis, to optimise the use of its than for weather or airline problems. assets and generate a reasonable return on investment. 2. Meet all the operating, maintenance, capital To ensure the ongoing safe and successful operation expenditure and interest costs from Airport of the Airport, whilst facilitating tourism and trade revenue. by working with the airlines to increase passenger 3. Manage New Plymouth Airport in full compliance numbers and develop other commercial activity. with the approved operating procedures of the The Airport provides services to allow the safe and Civil Aviation Authority Rule Part 139. efficient facilitation of travellers and freight and, 4. Complete the Airport carpark and grounds ancillary to this, it leases terminal space and land at the redevelopment project. Airport.

In the management of the Airport operations, PRIP has the autonomy to set the following charges at the Airport: • All fees and associated charges in respect to vehicle parking. • All landing and parking charges from regular passenger transport services. • All landing and parking charges from general aviation aircraft. • All revenue from tenant’s leases and rents, licences, concession based contracts and lessees outgoings.

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Forestry

Nature and scope of activity Key annual objectives and The Council has two joint venture forestry performance indicators developments that have varying levels of Council 1. Complete all programmes outlined in the Forest ownership (55 to 57 per cent) and are therefore deemed Management Plans and Agreements. to be Council Controlled Organisations. For convenience they are covered by one combined statement of intent. 2. Report annually in compliance with agreements. The woodlots will complement the harvest regime of the Council’s own forestry investment activities. Significant policies and objectives on Forest plantations have been established under the ownership and control following agreements: These joint ventures were originally set up to augment • McKay Family Joint Venture (56.5 per cent) – 83.5 the harvest rotation for council owned forestry. The hectares. Council will currently retain the joint ventures to harvest • Duthie Joint Venture (54.8 per cent) – 22.7 hectares. and then review its future position. There are no formal board structures. Under the joint venture agreements a total of 113 hectares are managed. The landowners of each joint venture provides land and property related inputs. The Council provides management and tending programmes for the crop. Both parties share the returns from the forest harvest on an agreed ration of respective inputs.

The Council’s longer term objective for these investments is to review its involvement after each joint venture is harvested.

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New Plymouth PIF Guardians Limited

Nature and scope of activity Significant policies and objectives on New Plymouth PIF Guardians Limited (NPG) is a 100 ownership and control per cent Council owned company with an independent The performance of Mercer will be monitored and board of directors. NPG was formally Taranaki reviewed by NPG, a Council Controlled Organisation Investment Management Limited and changed its with a board of highly experienced directors. name during 2017 when Council resolved to change the organisational architecture for the management of the Perpetual Investment Fund (PIF) by moving to a full outsourced model. Mercer New Zealand Limited (Mercer) manage the PIF.

Key annual objectives and performance indicators A Governance Deed was entered into between the Council and NPG on 1 March 2017 and sets out the objectives for the management of the PIF:

1. To at least maintain the real capital of the PIF as a sustainable perpetual investment fund in the long term (the Founding Principle) whilst generating a sufficient return to maintain a sustainable release to the Council.

2. To ensure that the following principles underpin the operation of the PIF: a) All investments are made on purely commercial terms. b) The PIF will be managed on the basis of a prudent, commercial, diversified portfolio investment style and asset allocation, which manages risk to further the Founding Principle.

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Tasmanian Land Company Limited

Nature and scope of activity New Plymouth District Council is a 100 per cent shareholder in Tasmanian Land Company Limited (TLC). TLC owned 100 per cent of Tasman Farms Limited (TFL) and its subsidiary The Van Diemen’s Land Company (VDL).

Key annual objectives and performance indicators The business operations of TLC were sold on 31 March 2016. As at 30 June 2020, TLC remained a Council Controlled Organisation.

On 21 June 2018, TFL was placed into members’ voluntary liquidation. The $1.5m balance remaining with TLC will be transferred to Mercer in the future, once all the companies in the group have been wound up.

The wind up is delayed due to a dispute regarding a possible additional milk solids payment from Fonterra Australia. A hearing was held in December 2020 for the claim of AUD$2.3m by Moon Lake Investments in the Tasmania Supreme Court. The judgement is expected to be released by the end of May.

Significant policies and objectives on ownership and control This investment forms part of the Council’s Investment Policy.

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Venture Taranaki Trust

Nature and scope of activity e) Promoting the Taranaki area as a desirable region in Significant policies and objectives on which to establish a business, live, work and visit. Venture Taranaki Trust (Venture Taranaki) is a Council ownership and control f) Supporting projects beneficial to the Taranaki Controlled Organisation whose Board of Trustees region. The Council appoints trustees to the Venture Taranaki is appointed by the council. Venture Taranaki is the Trust. This is to ensure the necessary independence, economic development agency and regional tourism public credibility and specialised governance that organisation for the Council, responsible for delivering Key annual objectives and the trust needs in order to be effective in delivering the Council’s active economic development and tourism performance indicators economic development programmes, while retaining initiatives as set out in its statement of intent. Its vision 1. Facilitate $1,000,000 investment into regional accountability to the district’s community. is “Taranaki – the envy of New Zealand for sustainable businesses subject to central government policy. business, talent, investment and lifestyle”. 2. Achieve >85 per cent client satisfaction in regard Venture Taranaki’s objectives are to: to business support services. • Provide leadership and support for the development and implementation of local, regional and 3. Invest $240,000 in management capability national strategies for the creation of a vibrant and building for Taranaki’s small and medium-sized prosperous New Plymouth District economy and enterprises subject to central government policy. Taranaki regional economy. 4. Attract or retain four major events meeting • Facilitate, promote, encourage and support New Plymouth District Council criteria (>100 sustainable business growth, investment and points). employment opportunities in New Plymouth District and the Taranaki region. 5. Undertake five initiatives to support investment into Taranaki. • Support and recognise the district’s commercial enterprises, large and small, mature or start-up to 6. Have at least 1,000 engagements with visitor establish, flourish and prosper. industry operators.

The nature and scope of Venture Taranaki activities for 7. Undertake two talent initiatives. the present and future members of the community resident in the Taranaki region include: 8. Venture Taranaki staff to undertake 200 enterprise a) Facilitating sustainable employment opportunities referrals and connections. in the Taranaki region. b) Facilitating sustainable economic benefits for the Taranaki region. c) Facilitating or providing educational training courses, presentations and other learning experiences. d) Researching, acquiring and updating information about the Taranaki region.

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Policies and Supporting Information Significance and Engagement Policy...... 194 Revenue and Financing Policy...... 199 Significant Forecasting Assumptions...... 213

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Significance and Engagement Policy

Purpose 3. The Council will consider the criteria in 8. The Council will consider specifically engaging Schedule 1 when assessing the degree of with Māori on other issues as they arise. The purpose of this policy is to set out how the Council significance of an issue, proposal, decision or other will identify the significance of an issue, proposal, matter. Assessment of method of seeking community decision or other matter in order to inform how, when input into decision-making and to what extent the Council will engage with the Assessment of whether to undertake 9. There may be situations when seeking community community in its decision-making processes. engagement input into decision-making may be impractical, 4. As a minimum level of engagement, the Council inappropriate, or unnecessary. These may include, Policy Statements will ‘inform’ the community on all issues, proposals, but are not limited to: or other matters requiring a decision by the • An issue, proposal, decision or other matter Assessment of significance Council, unless there are applicable grounds to the significance is assessed as being of some 1. “Significance” is defined by the Local Government withhold information under the Local Government importance. Act 2002 as: Official Information and Meetings Act 1987. • The Council considers that it has sufficient in relation to any issue, proposal, decision, or other 5. The greater the significance of an issue, proposal, existing and up to date information to enable matter that concerns or is before a local authority, decision or other matter, the more likely it is it to understand the views and preferences of means the degree of importance of the issue, that seeking community input into the Council’s interested and affected persons on the matter. proposal, decision, or matter, as assessed by the decision-making processes will be appropriate. • The situation requires urgent decisions local authority, in terms of its likely impact on, and The Council will generally provide opportunities and there is insufficient time to engage the likely consequences for: for individuals and communities to engage in the community. a) the district or region; matter proportional to the assessed significance • The matter is of an administrative nature. of the matter. Ultimately, determining whether or • The Council is advocating a position, or b) any persons who are likely to be particularly not to undertake any engagement will be carried submitting to, another organisation and the affected by, or interested in, the issue, out on a case-by-case basis, considering all of the Council is not the ultimate decision-maker. proposal, decision, or matter; particular circumstances. • The nature of the decision is highly technical or c) the capacity of the local authority to perform specialist and is not amenable to community its role, and the financial and other costs of Māori engagement engagement (such as complex financial doing so. 6. The Council is committed to providing issues addressed in a liability management or 2. The Council considers significance on a scale opportunities for Māori to contribute to its investment policy). decision-making processes in a meaningful way. that ranges from of some importance to critical. • The matter before the Council is confidential A ‘significant’ decision has a high degree of 7. The Council will engage with Māori where any (such as due to it involving third parties’ significance. matter involves a significant decision in relation commercially sensitive information) and not suited to community engagement (such as Significance to land or a body of water to ensure that the relationship of Māori and their culture and evaluating tenders). traditions with their ancestral land, water, sites, 10. Where the Council determines that it is appropriate wāhi tapu, valued flora and fauna, and other to seek the views of the community in its decision- taonga is considered. making process, the level of engagement will be Some Significant Critical importance

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Significance and Engagement Policy

determined by considering the Engagement Guide service as stated in the Long-Term Plan) will not, on – Assess whether there are particular legal in Schedule 2. their own, be regarded as a strategic asset. obligations to engage or consult with the community (including whether the issue, 11. Different types of engagement may be required for Long-Term Plan and Annual Plan consultation proposal, decision or other matter involves a different stages of the decision-making process for 18. The Council will consult on the Long-Term Plan decision to transfer the ownership or control of an issue, proposal, decision or other matter. by using a consultation document that identifies a strategic asset to or from the Council). 12. The Council will consider any known preferences the significant issues facing the Council and key – Consider the matters in Schedule 1 to assess of the affected part or parts of the community in decisions and choices. The Council may undertake the significance of the issue, proposal, decision relation to the issue, proposal, decision or other other engagement before issuing its consultation or other matter. matter in determining its method of engagement. document to seek community views and – Determine whether engagement with the preferences on some matters. community, or particular individuals or groups, 13. The Council is required by legislation to carry is appropriate. out engagement on some matters using specific 19. The Council is required to consult on an Annual – Where some form of engagement is procedures or processes, regardless of the Plan only if the Council proposes to include appropriate, determine the appropriate form significance assessment. The Council will follow significant or material differences in that Annual and type of engagement (using Schedule 2 these procedures and processes in those instances. Plan from the relevant financial year of the Long- Term Plan. The Council will consider whether or by complying with particular legislative 14. For all other matters requiring a decision by differences are significant or material as follows: requirements). the Council, including decisions made under • it will determine if differences are “significant” 21. Council officers (or other professional advisers) will delegated authority, the type of engagement will by using the significance assessment in this provide advice on significance and engagement. be determined on a case by case basis to ensure policy; and Such advice will, in normal circumstances, come the most appropriate engagement is used. via the Council report format which alerts elected • it will determine if differences are “material” members to the significance of the issue, proposal, using the generally accepted accounting Strategic assets decision or other matter and the proposed form practice definition for “material”. 15. The Council’s strategic assets are listed in and type of engagement. Schedule 3 of this policy. The Council will, as a minimum, consult using a consultation document on these significant and/ 22. The Council will consider the advice in making 16. Section 97 of the Local Government Act provides or material variations but may, at its discretion, a decision on the level of significance and the that, unless the decision is explicitly provided for determine to consult on other changes to the appropriate form and type of engagement, but is in the Long-Term Plan (and was included in the Annual Plan that do not meet these thresholds. not necessarily bound to follow such advice. Consultation Document), the Council may not transfer the ownership or control of a strategic Procedure for identification of significance and asset to or from the Council. engagement 20. Council staff, or other professional advisers, will 17. The Council will take a group or whole of asset provide advice on significance and engagement approach to network strategic assets. Decisions using the following process: that involve the transfer of ownership or control of a single element of a network where the remaining – Identify the issue, proposal, decision or other assets of the network enable the Council to still matter requiring a Council decision. meet its strategic outcomes (including levels of

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Significance and Engagement Policy

SCHEDULE 1: Criteria for assessment of significance In assessing an issue, proposal, decision or other matter requiring a Council decision, the following criteria will be used to assess its significance: • Does the matter impact on the interests of the district and the community? • Does the matter impact on the relationship of Māori (including their culture and traditions) with their ancestral land, water, sites, waahi tapu, valued flora and fauna and other taonga? • How many people are affected by the matter, to what degree are they affected, and what is the likely impact on those people? • Does the matter impact on the Council’s statutory purpose, obligations, duties and requirements? • Does the matter impact on levels of service as stated in the Council’s Long-Term Plan (LTP)? • Does the matter have financial costs for the community and the Council? • Is the matter reversible (in part or in full) in the future? • Does the matter align with previous Council decisions, such as whether it is implementing any adopted strategy, plan or position? • Has the matter previously generated wide public interest or controversy within the district or particular communities?

If an issue, proposal, decision or other matter has substantial impacts and consequences for several of the above considerations it is likely to have a higher level of significance.

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Significance and Engagement Policy

SCHEDULE 2: Engagement guide The following table provides an example of the differing types of engagement that might be considered appropriate, the tools and techniques that can be used for each type and the timing of the engagement generally associated with each type. Every issue, proposal, decision or other matter is assessed on a case-by-case basis, having regard to its significance, the subject matter and relevant stakeholders, in determining the most appropriate form of engagement.

Level Inform Consult Involve Collaborate Empower Goal To provide the public with To obtain public feedback To work directly with To partner with the To place final decision- balanced and objective on analysis, alternatives the public throughout public in each aspect of making in the hands of the information to assist and/or decisions. the process to ensure the decision including public. them in understanding that public concerns the development of the problem, alternatives, and aspirations are alternatives and the opportunities and/or consistently understood identification of the solutions. and considered. preferred solution. Example engagement Water restrictions Rates review New Plymouth District Plan New Plymouth District Election voting systems Council news Policy review Coastal Strategy (STV or first past the post) Tools and techniques Websites Public meetings Workshops Advisory committees Local body elections NPDC might use Letter/information flyer Formal submissions and Focus groups External stakeholder Binding referenda Fact sheets hearings Citizens panel groups Public notices Online/social media Face to face Newspapers Focus groups Surveys When the community can The community would The community would The community would The community would The community would expect to be involved generally be advised once be advised once a have a greater lead in generally be involved at generally have a greater a decision is made. draft decision is made time to be involved in the the following stages: lead in time to be engaged and would have the process. • At the start to scope in the process. opportunity to participate the issue. and respond during a • After information has period of consultation. been collected. • When options are being considered.

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Significance and Engagement Policy

SCHEDULE 3: Strategic assets The following assets are considered to be the strategic assets of New Plymouth District Council: • Govett-Brewster Art Gallery and Len Lye Centre. • Housing for the elderly network. • The equity securities held in Papa Rererangi i Puketapu Limited. • Pukekura Park and the Coastal Walkway. • Parks and reserves network. • Puke Ariki and community libraries (Bell Block, Inglewood, Ōākura, Urenui and Waitara). • TSB Stadium, TSB Bowl of Brooklands, TSB Showplace, Yarrow Stadium (the aspects of the Stadium’s operations under the Council’s control). • Todd Energy Aquatic Centre and the district’s summer pools (Waitara, Inglewood, Okato and Fitzroy). • Road and footpath network. • Solid waste infrastructure. • Stormwater network, drainage, flood protection and control works. • Water supply network and treatment. • Wastewater network and treatment.

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Revenue and Financing Policy

Overview General funding principles NPDC’s community outcomes NPDC’s strategic framework has been used to assess the This Revenue and Financing Policy determines how District-wide funding: The One Bucket Policy impact of funding on the community: the New Plymouth District Council (NPDC) will fund NPDC has a ‘one bucket’ policy for funding community the operating and capital expenditure for each Council • Prosperity – Growing a resilient, equitable and facilities, services and infrastructure. activity. sustainable economy where people want to work, live, learn, play and invest across our district. The one bucket policy means rates collected from The Policy outlines the revenue and funding sources • Sustainability – Nurturing our environment, all areas in the district are pooled into a single available to NPDC and details how and when the mitigating our impact and adapting to climate consolidated fund and used to provide services across Council will use these sources. This gives the community change. the district as a whole, rather than allocated only to the some certainty as to how Council activities will be location where the rates were sourced. • Community – Achieving well-being through a safe, funded. creative, active and connected community while The one bucket policy is intended to: embracing Te Ao Māori. NPDC must undertake services in a financially prudent and sustainable way for the Council and community as • Promote a unified commitment to the long-term • Delivery – Understanding and balancing our a whole. NPDC’s decisions and rationale underpinning future of the district. people’s needs and wants through prudent delivery of quality infrastructure and services. them are set out in this policy. In accordance with • Provide integrated management. section 101(3) of the Local Government Act 2002, in • Partnerships – Strengthening a treaty based • Spread the risk associated with operating assets and funding each activity NPDC has considered: partnership with tangata whenua and building intensive network services. partnerships with not-for-profit, private enterprise • the community outcomes to which each activity • Ensure funds are available to upgrade the networks and government to improve outcomes for all. primarily contributes; and complete projects at the optimal time. • an analysis of who benefits from the activity; • Avoid any sudden changes in the level of funding Sustainability of rates funding • the period of time the benefits are expected to required from specific groups of ratepayers. NPDC is aware that the level of rates are a tax based on occur; • Limit, and address historic, under investment in a property’s land value and do not reflect a ratepayers • whether the activity is needed in response to the lower socio-economic areas. ability to pay (such as income). This can have a negative action(s), or lack of action(s), of a particular person impact on the social well-being of the community. To or group; and Network pricing policy help mitigate costs for people on low incomes, NPDC • whether it would be more prudent for the activity As part of the one bucket policy, NPDC has a combined promotes the use of the rates rebate scheme. NPDC also to be funded separately or included with other network pricing policy for refuse collection, kerbside allows rates to be paid in quarterly instalments and the activities. recycling and the wastewater and water supply Council promotes the use of regular payments. NPDC networks. This means that these services each have also has Rates Remission and Postponement Policies. NPDC has also considered the overall impact of any a standard charging regime that is applied to all allocation of liability for revenue needs on the current properties that receive the service, regardless of NPDC’s Perpetual Investment Fund income is used to and future social, economic, environmental and cultural location or network connected to. This policy is offset general rates. This has benefits for the residents well-being of the community. intended to achieve the intentions of the one bucket of the district because it means NPDC can provide system as well as provide all urban communities across higher levels of service and better facilities than would The Revenue and Financing Policy is reviewed every the district with a similar standard of service for water, normally be available in a district of this size, while three years during the development of the Long-Term wastewater, refuse collection and kerbside recycling. keeping the impact on ratepayers low. The Council’s Plan (LTP). investments are managed carefully to ensure that these benefits are maintained or improved.

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Revenue and Financing Policy

Definitions • The second part is a variable charge based on a SUIP’s therefore include: property’s land value. The variable component of • Each separately occupiable unit, flat or house, each Borrowing is raising loans to fund expenditure. general rates is set as cents per dollar of land value, of which is separately inhabited or is capable of which is assessed according to four differentials separate inhabitation such as having independent Development contributions are levies paid in based on the following primary land use categories: accordance with NPDC’s Development and Financial kitchen facilities in a residential, small holding or Contributions Policy and the Local Government Act – Residential. farmland property. 2002 to recover Council expenditure on reserves, – Commercial/industrial. • Separate shops, kiosks, other retail or wholesale community infrastructure and network infrastructure – Small holdings. outlets, or offices, at a commercial/industrial to meet increased demand resulting from new – Farmlands. property each of which is operated as a separate development. business or is capable of operation as a separate Grants and subsidies are payments from external business. Fees and charges are charges to recover part or whole agencies and may be for an agreed, specified purpose of the costs of delivering the services. or activity of NPDC. Targeted rates are set to recover the costs of a service only from those SUIPs that receive the service. Financial contributions apply to holders of resource Interest and dividends are received from cash consents in the form of sums payable or land management and investments. Voluntary targeted rates are targeted rates to recover transferred to NPDC. These contributions are used to funding provided by NPDC to property owners for mitigate, avoid or remedy any adverse effects arising Proceeds from asset sales are the net sum received property sustainability projects. from subdivision or development. They are assessed when physical assets are sold. under the Resource Management Act 1991 and the District Plan. Reserves are funds accumulated over time for a particular purpose. They may be legally restricted in General rates are rates applied to the entire rating base their use, or NPDC may have created a restriction on of the district. General rates have two components: their use when they are established. • The first part is a Uniform Annual General Charge SUIP is defined as a Separately Used or Inhabited Part of (UAGC), which is a flat charge levied from every a rating unit. It includes: separately used or inhabited part of a rating unit (SUIP) in the district. • any part of a rating unit that is used or occupied by any person, other than the ratepayer, having a right to use or inhabit that part by virtue of a tenancy, lease, licence, or other agreement; or • any part or parts of a rating unit that are used or occupied by the ratepayer for more than one single use.

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Revenue and Financing Policy

Policy for funding operating and capital expenditure NPDC has two types of expenses - operating expenditure and capital expenditure. NPDC has a different approach for funding each type of expenditure. The table below outlines the general approach to the use of funding sources for capital and operating expenditure.

Funding source Funding for Operating Expenditure Funding for Capital Expenditure General rates General rates are used to fund activities where: General rates may also be used to purchase assets where NPDC determines that funding the assets from debt is not the preferred • the activity, or part(s) of activity, benefit the community in general; option. • NPDC has an objective to encourage the use of the service; General rates may be used for capital expenditure when the asset has • the beneficiary cannot readily be identified; and/or a short life. • where it is impractical or too administratively expensive to fund the activity from other sources. Where NPDC undertakes operating expenditure to consider extending a targeted rate funded service to areas not covered by that targeted rate already, that operating expenditure shall be funded by general rates. Targeted rates Targeted rates are used to fund activities where: Targeted rates may be used to purchase assets where NPDC • an area of benefit can be recognised; and/or determines that funding the assets from debt is not the preferred option and the assets are to be used for the activity funded by the • to achieve a fair, efficient or transparent allocation of costs across targeted rate. the community. Targeted rates may be used for capital expenditure when the asset has Targeted rates will be used for the activity it is identified for and not for a short life. any other services. Fees and charges NPDC will generally apply fees and charges for services where: • the user receives direct benefits, either entirely or in part, from the service; and/or • the use of the service is at the discretion of the user. NPDC may set user charges to recover all or part of the cost of the activity, including a market return on the value of any Council investment. Where NPDC needs to limit the use of an activity, charges may be set at a level above that which would be necessary to recover the costs of the activity. Interest and dividends Interests and dividends and other investment income is used to fund Investment income is not used for funding capital expenditure. from investments operating expenditure.

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Funding source Funding for Operating Expenditure Funding for Capital Expenditure Borrowing NPDC will not borrow to fund operating costs for a service, unless the Borrowing is the preferred method of funding new capital expenditure Council determines to do so if: for level of service and growth related projects. • the expenditure is on significant maintenance that has a long-term Borrowing may be used to fund the renewal of long life assets. impact that is of a similar nature to renewal capital expenditure; or • there are extraordinary reasons to justify borrowing as a short-term or interim solution (such as in an emergency). Proceeds from asset sales Operating costs are not funded from asset sales. NPDC will use proceeds from asset sales as an appropriate source for purchasing assets, building a reserve for the future purchase of assets, or retiring debt. Development Operating costs cannot be funded from development contributions. Development contributions will be used to fund the portion of new contributions asset expenditure required as a result of increased demand related to growth. Financial contributions Operating costs are not funded from financial contributions. Financial contributions will be used to fund the proportion of new asset expenditure that is required to avoid, remedy or mitigate the adverse environmental effects resulting from subdivision and development. Grants and subsidies Grants and subsidies will only be used for operating expenses when to Grants and subsidies will only be used for capital expenses when to do do so is consistent with the purpose for which they were given. so is consistent with the purpose for which they were given. Reserves Reserves may be used for operating expenditure when it is consistent Reserves may be used for capital expenditure when it is consistent with the purpose and restrictions relating to that reserve. with the purpose and restrictions relating to that reserve. NPDC’s main method of funding the renewal of assets is from the renewal reserve. General funding policies General rates General rates are made up of two components – the NPDC’s policy is to increase the UAGC in accordance NPDC’s policy is that the UAGC will not be inflated Uniform Annual General Charge (UAGC) and land value with the rate of inflation as part of each Annual Plan. and may be reduced if NPDC would otherwise breach differentiated general rates. NPDC uses the local government cost index as the section 21 of the Local Government (Rating) Act 2002 applicable inflation rate. NPDC will consider the overall without such action. Uniform Annual General Charge impact of this inflation adjustment on the community’s Each SUIP will be charged the UAGC. well-being before implementing it as part of the Annual Plan and may determine to an alternative UAGC amount.

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Differential groups and general rates Rest home and retirement home accommodation: Each SUIP will be charged a general rate based on the land value and land use of the SUIP. • The hospital, office, common area and non self- contained rooms are categorised and rated in the The general rates requirement are apportioned to the differential categories according to the fixed differential commercial/industrial differential group. percentages outlined in the table below. The total UAGC is then calculated and removed from the rates requirement for each differential group. The rates requirement remaining for each differential group is then divided by the total • Any self-contained units, flats or townhouses, land value in that group. This produces the differential rate as rate cents per dollar of land value. including those that are licence to occupy, are considered separate SUIPs. They are categorised and rated in the residential differential group. Differential category Definition Fixed differential Bed and breakfast and farm stay accommodation: factor • Bed and breakfast and farm stay operators with one Group 1: Commercial/ All rating units that are used primarily for any commercial or 26.9% to five bedrooms are rated as residential properties. Industrial industrial purpose. Operators with six or more bedrooms will be rated Group 2: Residential All rating units with a land area of one hectare or less, not being 54% as commercial/industrial properties, with the rating units in Group 1, used for residential and related purposes. owners living accommodation rated as a residential Group 3: Small holdings All rating units, not being rating units in Groups 1 or 2, with a 3.6% property. land area of more than one hectare, but no greater than four hectares. Targeted rates Group 4: Farmland All rating units, not being rating units included in Group 1, 2 or 3, 15.5% NPDC applies a number of targeted rates to fund having a land area in excess of four hectares. particular activities.

Particular rules for differential categories: Uniform Annual Roading Charge Commercial/Industrial differential category: All SUIPs will pay the Uniform Annual Roading Charge.

• Rating units are considered to be used primarily for a commercial or industrial purpose if the Rating Information The Uniform Annual Roading Charge partially funds the Database records their primary level code as being 6 Utility, 7 Industrial or 8 Commercial in accordance with the Transportation Activity. Rating Valuations Rules 2008 (or any rules that supersede those rules).

Vacant land as a result of subdivision: NPDC’s policy is for the Uniform Annual Roading Charge to be increased annually at the rate of inflation (using • Upon subdivision, vacant land of less than four hectares that is in a commercial or industrial zone in the the local government cost index). operative District Plan will be in the commercial/industrial differential group. Properties that are not in a commercial or industrial zone will be in the residential or small holdings differential group based on the land size. • Upon subdivision, vacant land of greater than four hectares will remain in the farmlands differential until it is used for a commercial/industrial purpose, or is further subdivided.

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Revenue and Financing Policy

Solid Waste Kerbside Collection – This is a rate charged according to how much The wastewater targeted rate is made up of various water the SUIP uses, as recorded on a water charges: All SUIPs receiving the solid waste kerbside collection meter. will pay the solid waste kerbside collection targeted • All SUIPs other than commercial/industrial rate. • A restricted flow charge differential group properties and schools are charged a fixed amount (the standard charge). – This is charged to SUIPs that are in a rural water NPDC’s policy for the solid waste kerbside collection supply area that do not receive an on-demand • All commercial/industrial SUIPs and schools are targeted rate is to uniformly divide the costs of the supply. charged per water closet or urinal on a sliding scale kerbside collection service (including associated landfill as follows (but rounded to the nearest dollar). costs and overhead allocations) across all ratepayers – The restricted flow charge is set a rate such that subject to the rate. the per volume amount of water available to the SUIP is charged at a rate consistent with the Closet or urinal count Rate charged per water closet or urinal Water variable consumption charge for that volume of water. One or two water closets Standard charge All SUIPs receiving NPDC supplied water will be charged or urinals the water targeted rate. NPDC will alter the approach to • The uniform consumption charge Three water closets or 85% of the standard water targeted rates on 1 July 2024. – Until 1 July 2024, this is charged to all SUIPs urinals charge connected to the water network that are either The water targeted rate is made up of various Four water closets or 75% of the standard within an urban water supply area and not components: urinals charge charged the variable consumption charge or Five water closets or 65% of the standard • The fixed network charge are within a rural water supply and charged the restricted flow charge. urinals charge – This is charged to all SUIPs connected to Six to 10 water closets or 60% of the standard the water network charged via a variable – This rate will be removed on 1 July 2024. From urinals charge consumption charge or uniform consumption that time on, no property shall be charged a charge. uniform consumption charge. 11 to 15 water closets or 55% of the standard – NPDC will set the fixed network charge during – The uniform consumption charge is set at a rate urinals charge each LTP. such that the per volume amount of water is 16 to 20 water closets or 52.5% of the standard charged at a rate consistent with the variable – NPDC may alter the fixed network charge during urinals charge consumption charge for the average residential an intervening Annual Plan process only if there 21 and higher water 50% of the standard property use. are extraordinary reasons to do so. closets or urinals charge Note: some terms in this section are defined under the • A variable consumption charge New Plymouth District Council Bylaw 2008, Part 14: Water, SUIPs in Ōākura, and any further area where reticulated – Until 1 July 2024, this charge applies to all Wastewater and Stormwater Services. wastewater is extended to, where the owner at the time SUIPs with a water meter installed that are an of extension agreed the SUIP would be connected will extraordinary use or have voluntarily opted to be Wastewater be charged a rate set at 50 per cent of the standard charged through this mean. charge (rounded to the nearest dollar) until the SUIP All SUIPs connected to NPDC’s reticulated wastewater connects to the network. – From 1 July 2024, all SUIPs connected within an network will be charged the wastewater targeted rate. urban water supply area and all SUIPs in a rural water supply area with an on-demand supply shall be charged this rate.

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Revenue and Financing Policy

Swimming Pool Fees and charges not be applied to the housing for the elderly activity for these aspects. All SUIPs with a swimming pool and/or a spa are Fees and charges are set annually as part of the LTP or charged a uniform rate to cover the cost of inspections Annual Plan process. Fees and charges are generally NPDC will fund any service improvements to develop in line with the Building Act 2004. only consulted on as a part of the LTP process, and new units through borrowing and may determine to where known include an indication of any significant fund repayment of that borrowing through general Voluntary targeted rate – Ngā Whare Ora Taiao o changes in the second or third years of the LTP. rates or from rental income, or both. Ngāmotu Scheme Fees and charges may also be altered in the second to NPDC’s voluntary targeted rate is applied to SUIPs third year of the LTP in order to: Distribution of funding assessment where the owners have received Council funding for part or all of certain household sustainable capital • reflect significant increases in costs in providing the For each activity that NPDC undertakes the following works costs for their properties based on the criteria applicable goods or service; or approach will be undertaken to assess the funding for applicable at that time. If a ratepayer has received • reflect inflation (based on the Local Government that activity. NPDC assistance for the approved capital work, funding Cost Index for operating expenditure, subject to any is recovered from the property owner through the local variation identified as part of the Annual Plan The activity and any distinct sub-activities are identified. targeted rate. process); or For each activity and/or sub-activity an assessment is undertaken of: • ensure the activity complies with the funding source The Ngā Whare Ora Taiao o Ngāmotu (New Plymouth allocation set in table 1 of this policy; or • Community outcomes. Does the activity contribute Sustainable Homes Voluntary Targeted Rate Scheme) to Partnerships, Delivery, Community, Sustainability • reflect changes to levels of service as agreed to in Policy governs the overall application of this scheme. and Prosperity. the LTP or Annual Plan. Applications under the previous Voluntary Targeted • The distribution of benefits within the community. Rate Scheme (i.e. before the policy was adopted) are NPDC may make exceptions to this policy if there are Does the activity benefit individuals, particular deemed to come under this policy for rating purposes. other relevant factors that warrant a change outside of groups or the community as a whole. this process. In this case, NPDC will assess, in accordance Repayment of the loan will be through a targeted rate • The period of benefits. Does the activity have short- with the Significance and Engagement Policy, whether term or long-term benefits. applied to the SUIP. That rate shall be set at: to consult the community or affected parties before • The extent actions or inactions of people contribute. • For those repaying over nine years, calculated at making the change. 11.1 per cent of the total borrowing (including any Are there exacerbators to the activity. interest) owed; or This section is subject to any relevant legislation • The costs and benefits of funding distinctly from • For those repaying over five years, calculated at or bylaw that sets or determines the charging other sources. Are there benefits to having distinct 20 per cent of the total borrowing (including any methodology of any fee or charge. In those cases the revenue sources, such as targeted rates, for the interest) owed. relevant legislation or bylaw will be followed. activity. The voluntary targeted rate may be removed early if the Housing for the elderly rental income and This assessment is provided in Table 2. ratepayer pays the outstanding amount owed. expenditure ring-fenced After considering these impacts on each identified Rental income from NPDC’s housing for the elderly activity and sub-activity, NPDC must then consider the units will be used solely for the operation, maintenance, overall impact of allocation for revenue on the current service improvements of existing units and renewal and future social, economic, environmental and cultural capital costs of providing the service. General rates will well-being of the community.

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NPDC then uses this assessment information to consider how the activity should be funded. There should be a logical nexus between the assessment and the funding sources, although noting that the assessing the overall impact on allocation for revenue across the four community well-beings may result in modification of the funding approach.

Table 1 outlines the proportion of funding each activity or sub-activity will receive from various sources, consistent with the provisions outlined in this policy above.

The operational costs of each of NPDC’s activities are funded as per the following table.

Funding description Percentage funded High 66-100% Medium-high 50-80% Medium 33-66% Medium-low 20-50% Low 0-33% None 0%, unless there are exceptional circumstances

Capital costs are indicated as to whether or not that source is available to that activity or sub-activity, consistent with the provisions of the policy above.

NPDC’s general approach to grants and subsidies is to accept these when offered, provided they are consistent with the intentions of NPDC. The table outlines expectations, but NPDC reserves the right to receive and use more grants and subsidies when they are offered.

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Revenue and Financing Policy

Table 1: Funding sources for each activity

Council activity General Targeted Fees and Grants and Borrowing Reserves Development Other sources or rates rates charges subsidies Contributions comment Community Partnerships Community support and High None None Low Yes Yes No funding Housing for the elderly None None High Low Yes Yes No General rates may repay debt for level of service improvements for new units. Customer and Regulatory Animal control Low None High None Yes Yes No Solutions Building consents Low Low High None Yes Yes No Customer services High None None None Yes Yes No District planning High None Low None Yes Yes No Resource consent application Low None High None Yes Yes No processing Resource management High None Low None Yes Yes No monitoring, enforcement and public enquiries Environmental health Medium None Medium None Yes Yes No Parking None None High None Yes Yes No Any parking revenue above cost recovery offsets general rates. Economic Development Venture Taranaki Trust High None None Low No Yes No Emergency Management and Business Continuance Medium None None Medium Yes Yes No Flood Protection and Control Works High None Low Low Yes Yes Yes Governance High None Low Low Yes Yes No Govett-Brewster Art Gallery/Len Lye Centre High None Low Low Yes Yes No Management of New Plymouth District Council None None Low None No Yes No Lease and sale proceeds Investments and Funding (Waitara Lands) Act 2018 from Waitara endowment properties. Interest and dividends from derived funds. Airport – Papa Rererangi i None None None None Yes No No Dividends. Puketapu Ltd The dividend from Papa Rererangi i Puketapu Ltd repays borrowing.

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Revenue and Financing Policy

Council activity General Targeted Fees and Grants and Borrowing Reserves Development Other sources or rates rates charges subsidies Contributions comment Management of Perpetual Investment Fund None None None None No No No Interest and dividends. Investments and Funding The release from the Perpetual Investment Fund offsets general rates. Operational property, including Low None High None Yes Yes No Interest and dividends. forestry joint ventures Net profits from forestry activities are placed into the Forestry Reserve. Ngā Whare Ora None High Low None Yes No No Taiao o Ngāmotu (New Plymouth Sustainable Homes) Scheme Parks and Open Spaces Public open spaces, including High None Low Low Yes Yes Yes streetscapes Cemeteries and crematoriums Low None High Low Yes Yes No Sports parks High None Low Low Yes Yes Yes Campgrounds Medium- None Medium- No Yes Yes No High Low Public halls Medium None Medium Low Yes Yes Yes Puke Ariki and Museum and i-SITE High None Low Low Yes Yes No Community Libraries Libraries High None Low Low Yes Yes Yes Stormwater Management High None Low No Yes Yes Yes Transportation Medium Low Low Medium Yes Yes Yes Venues and Events Pools Medium None Medium Low Yes Yes Yes Programmes and events High None Low Low Yes Yes No Event venues Medium- None Medium- Low Yes Yes No Low High Waste Management and Disposal None None High Low Yes Yes No Minimisation Education High None Low Low No Yes No Refuse collection None High Low No Yes Yes No Wastewater Treatment None High Low Low Yes Yes Yes Water Supply None High Low Low Yes Yes Yes

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Revenue and Financing Policy

Table 2: Section 101(3)(a) Local Government Act 2002 assessment

Period of of distinct Benefits Community Outcomes Distribution of benefits benefit Exacerbator funding Partnerships Delivery Community Sustainability Prosperity Short-term Long-term Individuals community of the Parts community Whole

Council activity

Community Partnerships Community funding and High Medium High Medium Medium Yes Low None identified Grant Yes support recipients Housing for the elderly Low Medium High Low Low Yes Yes High None identified Tenants Yes Customer and Regulatory Animal control Low Medium High Medium Low Yes High Owners of Dog and Yes Solutions wandering, other menacing or animal dangerous owners animals Building consents Low Medium Medium Low High Yes High None identified Consent Yes applicants Customer services Low High Medium Low Low Yes Low None identified Customers Yes District planning Medium Medium Medium Medium High Yes Low None identified Private plan Yes change applicants Resource consent application Low Medium Medium Medium High Yes Medium Those that do Consent Yes processing not comply applicants with resource consent obligations Resource management Low Medium Medium High Medium Yes Low Those that do Yes monitoring, enforcement and not comply public enquiries with District Plan obligations Environmental health Low Medium High Low Medium Yes Medium Those that Licence and Yes do not certificate comply with holders environmental health requirements

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Revenue and Financing Policy

Period of of distinct Benefits Community Outcomes Distribution of benefits benefit Exacerbator funding Partnerships Delivery Community Sustainability Prosperity Short-term Long-term Individuals community of the Parts community Whole

Council activity

Customer and Regulatory Parking Low Medium Medium Low High Yes Medium Those that Parkers CBD Yes Solutions breach parking businesses restrictions Economic Development Venture Taranaki Trust High Medium Medium Medium High Yes Low None identified Service Businesses Yes recipients Emergency Management and Business Continuance High High High Medium Medium Yes Yes Low None identified Service Yes recipients Flood Protection and Control Works Low Medium High Medium Medium Yes Yes Low None identified Protected Protected Yes property areas owners Governance High High High Low Low Yes Low None identified Yes Govett-Brewster Art Gallery/Len Lye Centre Medium Medium High Low Medium Yes Yes Medium None identified Visitors Yes Management of New Plymouth District Council High Low High Medium Medium Yes Yes High None identified Te Kōwhatu Waitara Investments and Funding (Waitara Lands) Act 2018 Tū Moana, community Te Tai Pari and the Trust, Waitara Taranaki River Regional catchment Council Airport – Papa Rererangi i Medium Medium Medium Low High Yes Yes High Users of the Users, Yes Puketapu Ltd airport businesses Perpetual Investment Fund Low High Low Low Medium Yes Yes Medium None identified Yes Operational property, including Low Low Low Low Low Yes Yes Low None identified Tenants, forestry joint ventures joint venture partners

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Revenue and Financing Policy

Period of of distinct Benefits Community Outcomes Distribution of benefits benefit Exacerbator funding Partnerships Delivery Community Sustainability Prosperity Short-term Long-term Individuals community of the Parts community Whole

Council activity

Management of Ngā Whare Ora Medium Low High High Medium Yes Yes High Households Those who Yes Investments and Funding Taiao o Ngāmotu that uptake the uptake the (New Plymouth Sustainable scheme scheme and Homes) Scheme those who provide funded services Parks and Open Spaces Public open spaces including Medium Medium High High Low Yes Yes Low None identified Yes streetscapes Cemeteries and crematoriums Low Medium High Low Low Yes Yes Medium None identified Family Yes members of deceased Sports parks Medium Medium High Low Low Yes Yes Low None identified Sports clubs Yes Campgrounds Medium Medium High Low Medium Yes Yes Medium None identified Visitors Public halls Medium Medium High Low Low Yes Yes Low None identified People and Areas Yes groups who around use public public halls halls Puke Ariki and Museum and i-SITE Medium Medium High Low Medium Yes Yes Low None identified Users Yes Community Libraries Libraries Medium Medium High Low Low Yes Yes Low None identified Users Yes Stormwater Management Low Medium High Medium Medium Yes Yes Low None identified Property Urban areas Yes owners in areas prone to stormwater issues Transportation Medium Medium Medium Medium High Yes Yes Medium High users Road users Yes of roads, particularly heavy vehicles

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Revenue and Financing Policy

Period of of distinct Benefits Community Outcomes Distribution of benefits benefit Exacerbator funding Partnerships Delivery Community Sustainability Prosperity Short-term Long-term Individuals community of the Parts community Whole

Council activity

Venues and Events Pools Medium Medium High Low Low Yes Yes Medium None identified Users Yes Programmes and events Medium Medium High Low Medium Yes Low None identified Attendees Yes Event venues Medium Medium High Low High Yes Yes Medium Event Attendees Yes organisers and users Waste Management and Disposal High Medium Medium High Medium Yes Yes High Illegal dumpers Transfer Areas Yes Minimisation station outside of users kerbside collection area Education High Medium High High Low Yes Low None identified Yes Refuse collection Low Medium Medium High Low Yes Yes High Misusers Recipient Collection Yes of kerbside households areas services Wastewater Treatment Low Medium Medium High Medium Yes Yes High High users, Connected Reticulated Yes including trade households areas waste Water Supply Low Medium High Medium High Yes Yes High High water Connected Reticulated Yes users households areas

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Significant Forecasting Assumptions

NPDC has adopted a range of forecasting assumptions. These assumptions represent a likely future scenario. However, as with any forecasting, how the future turns out is uncertain. Therefore, variations from these forecasting assumptions are likely. This, in turn, means that the prospective financial statements are likely to vary from the information presented and these variations may be material.

Assumption Detail and uncertainty Covid-19 The LTP does not forecast or anticipate significant periods of lockdown or community transmission of Covid-19. There will not be a lockdown There is a medium level of uncertainty. Uncertainty arises from the challenges of a global pandemic, the effectiveness of government’s or significant community public health measures to contain Covid-19, the effectiveness of vaccines and the economic impacts of the global pandemic. NPDC transmission over the life of the anticipates that the Government’s vaccine rollout programme should reduce the likelihood of community transmission, or further social Long-Term Plan (LTP). distancing requirements (including lockdown periods), once completed (scheduled by the Government for December 2021). However, the risk of variants that the vaccine is not effective against, and the risk that some of the population decides not to receive the vaccine, means that some risk may remain after that time. If there was community transmission of Covid-19 within Taranaki, or other factors that caused the Government to institute some form of significant restrictions, NPDC would likely be significantly impacted through both lost revenue and additional costs. NPDC relies on numerous revenue sources that may significantly reduce during Covid-19 restrictions and lockdowns. Activity revenue that will be immediately impacted include CBD parking, venues and events, Govett-Brewster Art Gallery/Len Lye Centre and Puke Ariki. Revenue that may be impacted as an economic consequence include resource consents, building consents and environmental health fees. Rates revenue is a compulsory taxation and NPDC has statutory powers to collect, nevertheless there would likely be an increase in applications for rates remissions and postponements, as well as late payments and non payments. NPDC may need to invest more in some services to provide economic and/or community support. This could include additional funding for Venture Taranaki Trust and/or community funding. Such support may also include more proactive approaches to employment or community well-being through increased job creating capital expenditure, reduced fees and charges and community programmes. During a period of more stringent Covid-19 restrictions, some Council activities may not meet levels of services or may need to change service approach, such as through digital and remote service delivery. This may mean that NPDC does not achieve its stated performance measures. The net impact of these factors would be largely dependent on the nature of the lockdown, such as the stringency of the lockdown, its duration and the extent of Covid-19 community transmission. NPDC would need to determine how to react to any such lockdown. NPDC could determine to debt fund any significant net impact in order to limit any service level reductions or immediate term rates revenue increases. There is also a risk to NPDC’s local, national and international supply chains as a result of Covid-19. This may see sudden cost increases, unavailability of goods or services, delays and other issues. In turn, this may impact on the ability of NPDC to deliver on capital and operating projects and programmes. This may occur as a result of outbreaks or restrictions outside of the district or country.

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Significant Forecasting Assumptions

Assumption Detail and uncertainty Population growth NPDC forecasts that the district’s population will grow over the next 30 years as follows: The district’s population will grow from 86,700 in 2021 to 2021 2026 2031 2036 2041 2046 2051 93,800 in 2031 and to 104,900 Population 86,700 90,300 93,800 96,700 99,300 102,000 104,900 by 2051. NPDC obtained a population projection from Infometrics that factored in demographic trends, expected economic growth, international migration, expected employment growth, the proposed District Plan and likely development timeframes. These forecasts were provided before the Covid-19 pandemic impacted New Zealand significantly. NPDC has used this original forecast from Infometrics with adjustments for net migration in the lead up to the LTP and the first four years of the LTP as follows:

Year Net migration Detail (ending 30 June) 2021 20% This year (prior to the LTP) is likely to see strongly reduced international migration due to border restrictions, however some internal migration may occur and there will be fewer residents leave. 2022 50% This reflects decreased employment opportunities and that employment 2023 50% opportunities that arise are more readily filled by locals returning to the workforce after unemployment. Migration slowly increases 2024 75% 2025 75% 2026 and onwards 100% Economic conditions assumed to return to relative normality. It should be noted that the Infometrics projections assumes a general decrease in net migration in the longer term.

There is a medium level of uncertainty. Uncertainty arises from changes to births, deaths, inward migration and outward migration levels. If these factors change from the projection then the assumption will not be borne out. Discussion on the impact of this uncertainty is discussed in association with the rate of residential dwelling growth.

Growth assumptions underpin NPDC’s asset and activity management planning and planned capital expenditure budgets in the LTP. Any increase in population is likely to result in a proportionate increase in demand on Council services. This is through additional growth infrastructure, as well as services to people where an increase in population is likely to lead to more use (such as libraries). If population growth exceeds these projections, NPDC may need to invest in additional urban growth infrastructure and this will impact capital budgets and revenue. There is also a risk that forecast population growth does not occur, or occurs at a slower rate. NPDC carries some risk of over investment in growth infrastructure. As the cost of growth assets are generally recovered through development contributions, NPDC would bear the debt for capital expenditure until those growth areas were utilised.

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Significant Forecasting Assumptions

Assumption Detail and uncertainty Age Overall, the population is expected to continue to age, with most growth occurring in the over 65 age groups. By 2031, over 65 year olds The district will continue to will be approximately 24 per cent of the total population, up from 20 per cent in 2021. There will be modest growth in other age brackets, have an ageing population, but they will decline as a proportion of the total population. with a significant increase in 2021 2031 2051 those aged 65 years and over. 0-14 years 20% 19% 18% 15-39 years 28% 27% 27% 40-64 years 32% 30% 28% 65+ years 20% 24% 27%

There is a low level of uncertainty. Uncertainty arises from changes to births, deaths, inward migration and outward migration levels. If these factors change from the projection then the assumption will not be borne out. An ageing population may impact a range of Council services. These include accessibility issues (see the assumption on accessibility issues for more information), demand for backdoor kerbside collection services, changes to libraries, and housing for the elderly. There will also be an increase in the proportion of ratepayers on fixed incomes, which may increase rates affordability issues. A more rapidly ageing population will result in many of these issues needing to be considered earlier, either resulting in increased investment to make the district more aged friendly or increased dissatisfaction with services (which may impact on performance of level of service). A slower ageing population will provide more time to invest in making the district aged friendly and may mean some planned investment is earlier than necessary to maintain levels of service. Ethnicity Overall, the population is expected to continue to predominately be European and Māori, however the district will see a small drop in the The district’s ethnic makeup will number of Europeans and similar increase in the Asian community. The Asian community is expected to grow from around three per cent continue to be predominately to six per cent over the next 10 years. European and Māori, with a growing Asian population. Percentage of New Plymouth District’s population Year European and Māori Pacific Asian other 2021 85% 18% 5% 3% 2031 81% 19% 6% 6%

There is a low level of uncertainty. Uncertainty arises from changes to births, deaths, inward migration and outward migration levels. If these factors change from the projection then the assumption will not be borne out. NPDC needs to consider the ethnic makeup of the district to ensure its services are accessible across the population, including different cultural views on certain services. This will also have an impact on how NPDC engages effectively with the community.

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Assumption Detail and uncertainty Accessibility New Plymouth District’s current accessibility limitations will increase as a proportion of the district as the older generation increases. The proportion of the The table below shows the 2018 census data for those reporting one or more activity limitations, by age, for people in New Plymouth community with accessibility District and New Zealand. limitations will grow over the Under 15 years 15-29 years 30-64 years 65+ years life of the LTP. New Plymouth 3.2% 4.5% 5.1% 17.7% New Zealand 3% 3.5% 4.8% 17.7% If the proportion of people per age group with an activity limitation continues in line with the 2018 Census proportions, then the overall percentage of the population with an accessibility issue in New Plymouth District will increase from seven per cent in 2021 to 7.5 per cent in 2031 and eight per cent in 2051. There is a low level of uncertainty. Uncertainty arises from the potential changes to the district’s population and changes to the age profile. If these factors change from the projection then the assumption will not be borne out. Alongside an ageing population, this will impact accessibility limitations on a range of Council services. These include accessibility issues in urban design, parks and the transport network (e.g. footpaths), backdoor kerbside collection services, changes to libraries and housing for the elderly. NPDC aims to ensure all people can use services and facilities and to be able to get around our city easily. There may also need to be changes in housing typology and design to cater for accessibility needs, as well as changes to retail stores and commercial premises. Economic growth NPDC anticipates that New Plymouth District’s economy will grow at similar levels to the national average. The rate of real economic Using information from BERL, NPDC anticipates there will be a significant reduction in national gross domestic product (GDP) prior to the growth will drop post Covid-19 LTP coming into force with a slow recovery in 2020/21. Economic growth will begin more substantively in 2021/22 and 2022/23 before but will recover with growth returning to a more normal growth pattern. before stabilising in the medium term. 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Forecast % growth in real GDP 3.2% 2.4% 1.9% 2.1% 2.2% 2.3% 2.4% 2.5% 2.6% 2.7% There is a medium level of uncertainty. Uncertainty arises as local economic growth and activity is driven by national and global economies and politics and particularly any further Covid-19 outbreaks, restrictions and then recovery efforts. Change and fluctuations in these larger economies and the political landscape have high likelihood of impacting our local economy. If these factors change from the projection then the assumption will not be borne out. Uncertainty also arises from the potential for further regulatory changes in the oil and gas sector. Existing and planned NPDC infrastructure and services will be sufficient to meet growth in demand generated by the anticipated recovery growth in economic activity. If economic growth and activity were to increase significantly beyond the predictions of this assumption, there may be an increase in demand on NPDC infrastructure and services. If a lower rate of economic growth occurs then this will have implications for population growth and therefore the rate of residential development, these risks are outlined in the relevant forecasting assumptions.

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Assumption Detail and uncertainty Labour force The unemployment rate for the district, as measured by the percentage of working age population on the JobSeeker benefit, peaked at just Unemployment will be in a over seven per cent in January 2021. recovery phase after peaking to NPDC forecasts that the unemployment rate will continue to decrease over coming years reflective of the overall improvement in economic seven per cent in 2021. circumstances. NPDC anticipates that the district’s unemployment rate will track close to the national unemployment rate. Treasury’s Budget 2021 Economic and Fiscal Update forecasts the national unemployment rate to fall to 4.2 per cent by June 2025. NPDC forecasts that after June 2025 unemployment will be relatively stable. There is a medium level of uncertainty. Uncertainty arises as local economic growth and activity is driven by national and global economies and politics. If these factors change from the projection then the assumption will not be borne out. An increase in employment is likely to positively benefit the district’s population and the local economy. High employment rates result in higher household income and an increase in discretionary income. If lower employment rates eventuated then they are likely to result in a number of impacts on Council services. There may be rates affordability issues, which may impact on levels of service if NPDC determines to lower its rates requirement as a result. There may also be increased use in some Council services - such as libraries and community facilities, and other services may have decreased use (or, at least, not forecast increases in use), such as in the commercial use of water and wastewater services. Affordability The cost of living will continue to rise as demonstrated by the Consumer Price Index (CPI) forecast. CPI measures the changes in the price Local government costs will level of a market basket of consumer goods and services purchased by households. CPI looks at the expected price change for key everyday increase at a rate faster than the items such as food, housing, clothing and footwear. NPDC forecasts that the rate of inflation for Council costs will increase at a rate faster overall cost of living. than the CPI. NPDC purchases items like pipes, earthmoving and personnel costs. Councils therefore use a different measure of inflation - the Local Government Cost Index (LGCI). The table below shows the BERL forecast for both CPI and LGCI:

2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 CPI 1.6% 1.7% 1.7% 1.7% 1.6% 1.9% 2.0% 2.2% 2.3% 2.3% 2.3% LGCI (total) -0.7% 3.7% 2.9% 2.5% 2.5% 2.6% 2.5% 2.6% 2.7% 2.7% 2.6%

The average annual household income for New Plymouth in 2020 was $101,157, lower than the national average of $114,062. There is a medium level of uncertainty. Uncertainty arises from national macroeconomic conditions and policy. If these factors change from the projection then the assumption will not be borne out. If current trends in inflation and incomes continue over the life of the LTP, affordability of essential goods and services are unlikely to be negatively impacted, although rises in interest rates will have negative effects on affordability for those households with mortgages. Affordability of essential goods and services is likely to be a significant issue for those households on lower incomes, including those living on less than $30,000. Inflationary increases will exacerbate this. A significant increase in prices for essential goods and services without a corresponding increase in incomes would place financial pressure on individuals and households and would have a negative impact on affordability.

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Assumption Detail and uncertainty Affordability (continued) Inflation and wages are influenced by a number of factors, including the national and international economies. While the current trend is for wages to increase in line with inflation, this could change over the course of the LTP. CPI is a factor that influences the LGCI. A higher or lower CPI is likely to have some impact on the LGCI. CPI is also often used as a comparison tool for rates. A lower than forecast CPI, without a corresponding decrease in the LGCI, may result in an increased difference between rates and other prices. This could result in increased community concern about rates affordability. Similarly, if household income increases at a lower level then rates affordability issues are likely to become a concern in the community. Residential development Using the population projection, dwelling projections are calculated using a cohort component approach, involving the analysis of living We will require more, and arrangements for each age and gender cohort, and converting these figures into household numbers. The National Policy Statement on different types of, houses to Urban Development 2020 (NPS-UD) then requires NPDC to provide the necessary infrastructure for this level of demand plus an additional accommodate population over-capacity buffer (termed as a competitiveness margin in clause 3.22 of the NPS-UD). growth. 2021-26 2026-31 2031-36 2036-41 2041-46 2046-51 Houses required to be delivered annually 345 361 324 320 326 307 Annual land supply capacity required 414 434 389 384 391 368 Difference 69 72 65 64 65 61 Average household size 2.44 2.42 2.37 2.37 2.34 2.33

A decline in average household size in New Plymouth is expected, driven by an ageing population, growing life expectancy, and societal trends. The average household size in New Plymouth is projected to decline from an estimated 2.4 individuals per household in 2021 to 2.3 individuals in 2051. This will also lead to a likely diversification of housing needs and therefore the types of houses being built. There is a medium level of uncertainty. Uncertainty arises from whether population growth rates meet forecast levels (see assumption), the subdivision and house building markets, as well as from household formation and housing trends. If these factors change from the projection then the assumption will not be borne out. The rate of new dwellings is a significant factor in ensuring the district has enough housing and sufficient housing options to meet demand. Given the forecast population growth it is anticipated that the predicted rate of new dwellings will be sufficient to meet demand. There is also opportunity for infill development that provides additional housing choices. Residential development increases pressure on the capacity of NPDC’s infrastructure (roads, sewers, stormwater, water and open space) and service delivery and can result in the need to upgrade existing and/or develop new infrastructure and services. Development and financial contributions need to be set at the appropriate levels to ensure that the costs of growth are paid for by those who create the demand for the additional infrastructure and services. If growth in dwellings exceeds these projections, NPDC may need to invest in additional urban growth infrastructure and this will impact capital budgets and revenue. However, if growth exceeds forecasts by less than the 20 per cent over capacity requirements of the NPS-UD then there will not be a short-term requirement to increase land supply and infrastructure, although there will still be a medium and long- term impact.

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Assumption Detail and uncertainty Residential development The mandatory requirement of the NPS-UD to provide for 20 per cent over capacity is highly likely to lead to unutilised or underutilised (continued) infrastructure provision. There is also a risk that forecast household growth does not occur, or occurs at a slower rate. This would mean that NPDC has over invested in growth infrastructure and it remains unused. As the cost of growth assets are generally recovered through development contributions, NPDC would bear the debt for capital expenditure until those growth areas were utilised. At present, development contributions are forecast to be between $2.9m and $4.1m per annum over the 10 year horizon. A lower rate of development would have a proportionate impact on the rate of development contributions being received. Location of growth Overall growth is expected to focus in and around New Plymouth City (including Bell Block). Some growth is also expected to occur in small The district will predominately townships. The following table outlines the forecast growth in additional dwellings. grow in Bell Block, southern Area July 2021 to June 2024 July 2024 to June 2031 July 2031 to June 2051 New Plymouth growth areas and through intensification Bell Block 353 577 309 of existing areas, with some Ōākura 15 65 223 growth in small settlements as Inglewood 27 79 138 well, over the life of the LTP. Waitara 54 134 308 Southern growth areas of New Plymouth City 29 283 606 Existing New Plymouth City 443 1,245 2,554 Rural and smaller townships 66 160 183 Smart Road 0 0 2,062 These figures exclude the NPS-UD additional buffers. There is a medium level of uncertainty. Uncertainty arises from development and rezoning timeframes. The location of growth affects the provision of infrastructure and services within the district. An area that develops slower or more quickly than expected will influence what new or upgraded infrastructure NPDC (and other infrastructure providers) have to deliver. NPDC plans for growth infrastructure relating to particular developments at a given time, and may have to either bring that infrastructure forward, or delay, it depending on actual development timeframes. The location of growth also impacts on development contribution revenue as development contributions include area specific charges.

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Assumption Detail and uncertainty Urban redevelopment The LTP forecasts that Kāinga Ora – Homes and Communities (Kāinga Ora) will not use its statutory powers for urban development and The district will not be subject regeneration within the district to a scale that impacts on NPDC’s revenue or expenditure. In particular, the LTP does not include any to any large scale urban financial impacts of Kāinga Ora undertaking developments, such as reduced development contribution revenue for NPDC. Further, the LTP development or regeneration forecasts that a special purpose vehicle (SPV) under the Infrastructure Funding and Financing Act 2020 will not be established to deliver project. infrastructure in the district. There is a low level of uncertainty. Uncertainty arises from the intentions of Kāinga Ora and potential SPV establishing organisations, and how they evolve over the life of the plan. If these factors change from the projection then the assumption will not be borne out. The scale, location and infrastructure impacts of any development by Kāinga Ora or an SPV will influence the scale of any financial impact on NPDC and the implications for NPDC’s infrastructure. Tourism NPDC assumes that international tourism will recover to pre Covid-19 forecast levels by 2027/28 and domestic tourism will be stronger in Tourism will increase back to the first two years of the LTP and then return to normal growth patterns. previous levels over the life of The following table provides the forecast commercial accommodation guest nights across the LTP (rounded to the nearest thousand): the LTP. (in thousands) 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 International 54 74 97 126 160 200 236 264 296 331 Domestic 536 527 517 533 549 565 582 600 618 636 Total 590 601 615 659 708 765 818 864 913 967 NPDC has used the following methodology to develop this forecast: • International and domestic tourism would have continued as per their historic (five year average) growth rates of 12 per cent and three per cent respectively without Covid-19 (the ‘standard forecast’). • International tourism is expected to be 45 per cent of the standard forecast in 2021/22, and growing by 10 per cent per annum through to 2026/27, with it returning to the standard forecast in 2027/28 and onwards. • Domestic tourism is expected to be 110 per cent of the standard forecast in 2021/22, decreasing by five per cent per annum through to 2022/23, with it returning to the standard forecast in 2023/24 and onwards. This means that annual growth rates of total guest nights vary over the life of the LTP. Tourism growth particularly increases in 2024/25 under this model. There is a high level of uncertainty. Uncertainty arises from national and global economies and approaches to border controls following the Covid-19 pandemic. In particular, the degree of border controls in place before populations are vaccinated and the ability to attract tourists to New Plymouth District following the global economic outfall of Covid-19. The pandemic has introduced additional uncertainties to forecasting tourism. If these factors change from the projection then the assumption will not be borne out.

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Assumption Detail and uncertainty Tourism (continued) Any changes to tourism within the district is likely to have some impact on NPDC and the community. Changes in tourism patterns will lead to changes in the use of some Council facilities such as Puke Ariki, Govett-Brewster Art Gallery/Len Lye Centre, Aquatic Centre, the Coastal Walkway, parks, public toilets and certain roads (particularly coastal roads and around Taranaki Maunga). This could mean some investment is underutilised (such as in public toilets), although the impact is likely to be less than at a rate exceeding the assumption. The effect of this uncertainty is not considered to be substantial across NPDC and depends on the nature of the divergence. • In a scenario where tourism rebounded faster and stronger, NPDC would likely respond by bringing forward tourism related capital expenditure (including attractions and public toilets) and there would be additional operating expenditure (including for public toilet cleaning, attraction staff, new event resources, parks maintenance, tourism promotion and freedom camping compliance). There would also be additional revenue at some facilities. Overall, NPDC would expect the total rates take to be 1.5 per cent higher by year 10 when compared to the assumption used in this LTP. • In a scenario where tourism returned slower and with a long recovery, NPDC may delay or reduce some capital expenditure for tourism related projects such as the Taranaki Traverse, Brooklands Zoo strategic implementation, North Egmont carpark and the Festival of Lights. There would also be some operating costs lowered or planned operating cost increases that would not go ahead, particularly for public toilet cleaning and facility staffing. Anticipated revenue increases from facilities may not occur. Overall, NPDC would expect the total rates take to be 0.2 per cent lower by year 10 when compared to the assumption used in this LTP. Climate change Scientific evidence is clear that the climate is changing and New Plymouth District will, over time, experience more impacts from climate Climate change impacts will be change, climate hazards and climate extremes. The LTP (and particularly the Infrastructure Strategy) and the Proposed District Plan lay the increasingly felt over the life of foundations to prepare for potential increased climate change impacts in the future. the LTP and the Infrastructure NPDC adopted a Climate Action Framework in December 2019 to guide NPDC’s climate change work programme. Under this framework Strategy. NPDC is developing a district-wide Emissions Reduction Plan and a district-wide Adaptation Plan. The Adaptation Plan would assist NPDC’s legal obligations to manage natural hazards and their predicted perturbations from climate change. The Emissions Reduction Plan would provide for NPDC to lower its greenhouse gas emissions, and advocate for the community to also reduce emissions. At present there is no specific legal requirement for NPDC to reduce its emissions, although regulation of greenhouse gas emissions (through the Emissions Trading Scheme and other law) are increasing, with further change recommended by the Climate Change Commission’s draft advice to the Government (released for public comment on 1 February 2021). There is significant uncertainty surrounding the rates and associated timing of effects of climate change due to uncertainty associated with global emissions and success of international efforts to reduce those emissions. NPDC’s efforts to understand the impacts of climate change are driven by the need to protect and enhance the district’s resilience. NPDC relies on scientific data and analysis, with planning based on a range of scenarios provided by the Intergovernmental Panel on Climate Change assessments. The scenario predictions (known as Representative Concentration Pathways (RCPs)) ranging from a low emission scenario (RCP2.6) to increasing greenhouse gas emissions over time (RCP8.5+). NPDC also relies on advice from central government and has commissioned a number of local specific reports to better understand what this means for the district. The main forecasts for climate change from the Ministry for the Environment are: • By 2040 the average temperature is forecast to be 0.7C to 1.1C warmer than 1995. By 2090 the average temperature is forecast to be 0.7C to 3.1C warmer than 1995, with five to 41 extra days per year where the maximum temperature exceeds 25C.

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Assumption Detail and uncertainty Climate change (continued) • Winter rainfall is expected to increase by five to nine per cent by 2090. • The number of extreme wind and storm events is not expected to vary significantly, but there may be changes in their direction and intensity by 2090. • Sea level rise by 2100 is expected to be between 0.3 to 1.0 metres above the 1995 level. Up to 2060, there is less uncertainty, and a narrower range of sea level rise of 0.2 to 0.4 metres is expected.

The impacts of climate change are likely to affect the district in a variety of ways, including: • Coastal hazards. Within the next 10 years there could be increased risk to coastal areas from coastal erosion and storm inundation. Recently completed district-wide coastal hazard assessments demonstrate that while the entire coast is at risk from coastal erosion, the risks from coastal inundation are localised to areas of developed low lying coastal land around river mouths, such as Waitara, Puke Ariki landing and Ōākura. There are three coastal overlays in the Proposed District Plan, based on a 100 year timeframe as required by the New Zealand Coastal Policy Statement. The mapping of the Coastal Erosion Hazard Area is based on historic rates of sea level rise, representing areas considered likely to be subject to erosion (excluding New Plymouth City with the significant assumption that the city seawall will be maintained in the long-term to protect the significant infrastructure behind). The Coastal Environment Area includes areas identified as potentially subject to erosion, under a high emissions scenario (RCP8.5+) but does not assume maintenance of the New Plymouth seawall (a worse case area identified). The Coastal Flooding Hazard Area is mapped using the RCP8.5 scenario and does not assume the Waitara stopbanks will be effective. • Flooding. With increasing rainfall intensity it is likely that increased flooding will occur in some areas. Stormwater modelling takes account of the latest rainfall projections from NIWA in the High Intensity Rainfall Design System (HIRDSv4) which includes a temperature increase (relative to the 1986-2005 average) of 0.6C to 3.1C by 2120. The stormwater modelling is for a one per cent annual exceedance probability (AEP) and climate change scenario RCP6.0. This modelling is used for District Planning purposes as well. • Drought. Climate models vary in their estimated change to drought frequency in Taranaki from minimal change through to more than doubling in frequency. There is therefore greater uncertainty for the Council and community on whether to plan for more droughts. These expected variations to natural hazards predicted from climate change and their effects will have implications for the community and NPDC.

• Community. Climate change could impact on the social, economic, environmental and cultural well-being of the community: – Coastal hazards. Two urban communities are particularly vulnerable to coastal erosion at present that do not have protection through seawalls or other means. These are part of Onaero and the Rohutu Block (Waitara East beachfront). The LTP includes funding for particular adaptive management plans for these communities to determine the best future approach to dealing with both the existing coastal hazard risk and the predictions of climate change. Most other urban communities with high erosion risk are already protected by seawalls. – Flooding. The Proposed District Plan also outlines areas vulnerable to flooding taking into account predictions of climate change. Flooding risk may increase from both upstream and local rainfall. Urban areas have a variety of flood control works and stormwater systems to manage these risks.

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Assumption Detail and uncertainty Climate change (continued) – Drought. If there are increasing droughts in the future then the farming community within the District may need to consider land use changes, and there could be issues with the viability of some farms. The Tapuae Roa Action Plan (part of our regional economic development strategy) outlines the need to consider new land uses to address climate change impacts for farms. The increased risk of droughts would also impact the Council’s water supply service. • Council services. The impacts of climate change will impact on Council services to varying degrees: – Coastal hazards. Coastal hazard risks impact on a number of Council services. NPDC has assets within potential coastal erosion and/ or hazard areas, including coastal parks and open spaces (including the Coastal Walkway), Todd Energy Aquatic Centre, New Plymouth Airport, stormwater pipes and outfalls, wastewater pipes and pump stations, and roads. The Council policy is to only consider coastal protection mechanisms for significant public assets. Some of these services and infrastructure may need to relocate in the future taking into account the predictions of climate change. – Flooding. A series of stormwater catchment management plans are being developed to analyse the district’s stormwater catchments, taking into consideration the most up to date climate change data. NPDC’s stormwater system and flood protection schemes would require upgrades in order to maintain effective service levels (as measured against AEP calculations) under the predictions of climate change. NPDC has infrastructure that may be impacted by increased flooding, including parks, wastewater pipes and pump stations, roads (including bridges over rivers and streams) and stormwater outfalls. – Drought. With increasing water demand and the potential increasing likelihood of extended dry periods during summer months, the district is at risk of not meeting water supply levels of service at certain times of year. The planning of the Council’s water supply services take into account the predicted implications of climate change. The Council is taking proactive steps to reduce the district’s water use with a conservation strategy, education and water metering. The Council also seeks to improve the resilience of the water supply network with new reservoirs. Droughts also have impacts on the Council’s parks and reserves, and could potentially require changed approaches to managing these during summer months. As noted above, the Council is developing a district-wide Adaptation Plan. This plan will further NPDC’s understanding of the expected implications of climate change for the community and the Council, and also create a direction for how the Council will assist and direct the community in adapting to climate change and increasing risk of natural hazards. NPDC expects this plan to be completed before the next LTP. There is a medium level of uncertainty for the life of this LTP. Uncertainty increases over time and arises as overall climate change does not directly correlate to year-to-year climate conditions or particular weather events. If these factors change from the projection then the assumption will not be borne out. While there is uncertainty in the short-term implications, there is significant uncertainty in the long-term implications of climate change. Investment within the LTP needs to carefully consider the life of the proposed asset or investment in relation to the current risk of the natural hazard(s) and the exacerbation(s) predicted within the climate change scenarios to weigh up and balance the risk and cost of early failure with the potential for over investment.

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Assumption Detail and uncertainty Climate change (continued) There is risk that predicted climate hazards do not eventuate, or eventuate at a pace slower than forecast. There is also a risk that predicted climate hazards occur earlier than current forecasts, meaning, for instance, that stormwater asset capacity has not been increased early enough despite the increased investment in new stormwater assets capacity and increased capacity at the time of renewal of existing assets. This will result in infrastructure failure (whether temporary or permanent), requiring additional resource and financing. The LTP includes investment in infrastructure resilience and better understanding the risk associated with climate change (such as stormwater modelling and the district-wide Adaptation Plan). This work is expected to lower the longer term risk associated with climate change. While there is significant uncertainty in the long-term implications of climate change, through a balanced consideration of risk, it is unlikely that any of the investment undertaken in the LTP will be an over investment in the long-term. However failure to invest to prepare for climate change may result in infrastructure failure (whether temporary or permanent) requiring additional resource and financing. Natural disasters NPDC acknowledges that natural disasters do occur and that New Plymouth District is vulnerable to various types of natural disasters. NPDC does not forecast natural Taranaki is susceptible to volcanic eruptions, earthquakes, tsunamis, floods, storms, tornadoes, drought, pandemics and other disasters. disasters to occur at specific The LTP does not include any forecasting of a natural disaster occurring during the life of the LTP in its financial information and plans. times but does plan for their However, NPDC acknowledges that there is a strong likelihood of a substantial natural disaster occurring during the LTP. NPDC has civil eventuality. defence responsibilities, including being a member of the Taranaki Emergency Management Group, to respond to any natural disaster. The Council also has a Natural Disaster Recovery Fund to assist with both response and recovery. There is a medium level of uncertainty. Uncertainty arises through the natural events and disasters. If these factors change from the projection then the assumption will not be borne out. Existing and future resource NPDC is legislatively required to obtain resource consents for various activities that it undertakes in the district. consents The following major consents require renewal that may impact on the LTP: All resource consents required • New Plymouth Water Treatment Plant abstraction consents expires 2021. for the operations of Council • Inglewood Water Treatment Plant abstraction consents expires 2021. services will be obtained or renewed when required. • To place and maintain Waitara outfall pipe consents expires 2021. • To place and maintain Te Henui rising main under Waiwhakaiho consents expires 2025. • Inglewood Contingency Landfill discharges to land and air consents expires 2025. • Waimea Dam consents expires 2025. • New Plymouth Wastewater Treatment Plant discharge to air consents expires 2026. • Ōkato Contingency Landfill discharges to land, air, stormwater and leachate consents expires 2030. • Huatoki Dam consents expires 2031. • Former landfills at Park and Valley Shopping Centre discharge of leachate consents expires 2032. • Inglewood oxidation pond intermittent discharge to the Kurapete Stream consent expires 2033. • New Plymouth Wastewater Treatment Plant discharge of treated wastewater consent expires 2041. NPDC holds a large number of smaller resource consents across the district relating to its infrastructure. Some new projects will also require resource consents. These are assessed as part of the planning and delivery of each project.

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Assumption Detail and uncertainty Existing and future resource There is a low level of uncertainty. Uncertainty arises from the potential for changes to NPDC’s District Plan, changes to Taranaki Regional consents (continued) Council’s regional plans, changes to national policy directions issued under the Resource Management Act 1991 and changes to the Resource Management Act 1991. If these factors change from the projection then the assumption will not be borne out. NPDC’s services, including current and future developments, would be affected by not obtaining any relevant resource consents. This could ultimately lead to discontinuance in service delivery until consent is obtained. NPDC will continue to work closely with the Taranaki Regional Council to ensure all existing and future resource consents are renewed or obtained without any effect on the delivery of NPDC’s services. NPDC proactively assesses the requirements for a resource consent in determining projects for the LTP, including the likelihood of obtaining resource consents. Legislation changes The LTP assumes the current statutory regime will largely remain consistent. There may be changes that impact to varying degrees on some Legislation changes will not Council activities, but there will not be any changes that materially alter service delivery. have any significant effect on NPDC is aware of numerous legislative changes currently proposed, or that may be proposed in the future. These have been factored into NPDC. the LTP as appropriate. given the information available at the time of developing this LTP. The four most substantive reforms that may impact on the Council are: 1. Three Water Reforms. There is a separate assumption below on the Three Water Reforms. 2. Resource Management Reform. The Government has signalled that the Resource Management Act 1991 will be replaced with three new Acts of Parliament – the Natural and Built Environment Act, the Strategic Planning Act, and the Climate Change Adaptation Act. As part of these reforms, the Government has indicated new regional plans will be created to replace existing district and regional plans and policies, however it is unclear what the implications are for NPDC’s resource management planning and consenting teams. The Strategic Planning Act may impact on the Council’s other planning functions as well which could, in turn, impact on future capital and operating expenditure programmes. The Council has prepared this LTP on the basis and assumption that existing resource management roles and functions will continue for the life of this LTP. 3. Future For Local Government Review. This review is a wide ranging review of Council roles, functions, partnerships, representation, governance, funding and financing. The review is to identify how the system of local democracy needs to improve over the next 30 years to improve community and environmental well-being, and embody the Treaty of Waitangi partnership. The review may have significant implications for the district’s local governance arrangements. This review is expected to present a final report in April 2023. NPDC considers it unlikely that any recommendation could take effect before 1 July 2024, so any changes will therefore be incorporated into LTP 2024-2034. The Council has prepared this LTP on the basis and assumption that existing roles and functions will continue for the life of this LTP. 4. National Emissions Budget and the National Emissions Reduction Plan. These are to be issued in late 2021 in accordance with the 2019 ‘zero carbon act’ amendments to the Climate Change Response Act 2002. The Budget will set a limit on emissions over a set time period, while the Plan is expected to outline pathways for sectors and industries to reach net zero greenhouse gas emissions by 2050, including targets and timeframes for specific action. These may impact on aspects of the Council’s operations that emit greenhouse gases, and may have wider social and economic implications for parts of the community. The Council has prepared this LTP on the

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Significant Forecasting Assumptions

Assumption Detail and uncertainty Legislation changes basis that reducing emissions will be required over time however, the timeframe and pace of reductions may not align to the Budget (continued) and Plan. There is a medium level of uncertainty. Uncertainty arises from national politics and government processes. There is a risk that various policy and legislative changes at the national level may materially impact on the LTP. If these factors change from the projection then the assumption will not be borne out. The implications of the reforms and reviews noted could be significant and result in different local governance arrangements for the district in the future, or different approaches to Council service delivery. Three Water Reforms The LTP assumes that NPDC will continue to own and directly operate the three waters networks (drinking water, wastewater and NPDC will continue to own stormwater). and directly operate the three There is a high level of uncertainty. Uncertainty arises from government reforms of water services and NPDC entering into a Memorandum waters networks of Understanding (MOU) with the government around investigating alternative structural arrangements for the delivery of water networks. These are explained in more detail below. Following the inquiry into the Havelock North drinking water contamination event in 2016, the government has initiated a reform of the delivery ‘three waters’ (drinking water, wastewater and stormwater) services. It has advised that the status quo is not acceptable and change is needed, indicating it considers larger ‘multi-regional’ delivery entities are needed. Government has made it clear that water services must remain in public ownership, however this could take various forms such as Council Controlled Organisations. The first step of the reforms has been the establishment of Taumata Arowai as a new drinking water regulator, with oversight of water service delivery. The second step is the new Water Services Bill that creates a new statutory framework around the management of water, including providing Taumata Arowai with regulatory tools to enforce compliance. These include the ability for Taumata Arowai to intervene in the management of drinking water. The Government has provided obligation free grants to territorial authorities provided they enter into a MOU with the Government to explore the future delivery of water services. NPDC has signed this MOU. This agreement outlines that NPDC and the Government will work towards reviewing service delivery reform, including investigating multi regional water service delivery entities that own and operate water and wastewater assets in some form of statutory entity with multiple council ownership. Whilst the MOU does not commit NPDC to the reforms, the Government has agreed that the reforms will be an opt out approach. The Government has signalled that bespoke legislation will govern how NPDC will engage the community in making a decision to opt out or not. It is clear that there is strong preference for change and therefore, a reasonable prospect that NPDC may not continue to directly provide some or all of its three water networks over the life of the LTP. There are several alternative structures that may arise. The Government is expected to make decisions in mid to late 2021 about these matters. The reforms predominately impact on water and wastewater and these are more likely to be subject to reforms than stormwater services. This reflects the different nature of these assets, with stormwater services being closely related to transportation and parks operations (as the main inflow and outflow network points) rather than with water and wastewater services.

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Significant Forecasting Assumptions

Assumption Detail and uncertainty Three Water Reforms If the reforms occur, then the financial management of the water services including capital expenditure, operating expenditure, revenue (continued) (including rates), debt and reserves relating to the three waters (as contained in the water, wastewater, stormwater management and flood protection and control works activities) would be undertaken by the new entity. This could mean the entire activity no longer exists within NPDC’s activities. This will have a corresponding impact on the overall position of NPDC as a whole.

The table below outlines the total 10-year budget for each activity. Activity Overheads 10 year 10 year operating budget capital budget ($m) ($m) ($m) Water 51.7 168.2 125.6 Wastewater 58.6 221.9 263.9 Stormwater 7.7 64.7 82.8 Flood Protection and Control Works 2.2 2.3 0.6 From a community perspective, water services will continue to be provided with the aim of the reforms to improve the provision of these services. There may be a change in how the services are charged, i.e. instead of paying for the service by rates, customers may be charged by a utility bill method. Any change may have widespread implications across the rest of NPDC’s operations. For instance, overhead allocations from these services fund parts of back office services, but there may only be a small reduction in these services if these services are no longer part of NPDC. This would increase the overhead allocation for other parts of NPDC, and therefore increase the remaining Council activities service delivery costs. NPDC allocates overheads using a number of different methods, including internal service agreements, timesheeting, internal charging and proportional to operating costs. The reforms may also require NPDC to alter its approach to rating to ensure it continues to comply with the Local Government (Rating) Act 2002, particularly the requirement in section 21 for uniform rates not to exceed 30 per cent of overall rates.

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Significant Forecasting Assumptions

Assumption Detail and uncertainty The effect of inflation on The LGCI measures cost drivers specific to local government (e.g. concrete, reinforcing steel, bitumen, roading chip, building materials, NPDC’s services energy and wages etc.) which differs significantly from the inflation pressures affecting households as measured by the CPI. BERL provide The annual cost of Council local authorities with their view of forecast inflation on key cost drivers. Due to the uncertainty around Covid-19 recovery, BERL have services will continue to presented three scenarios and NPDC has selected the mid scenario as this best aligns to NPDC’s view on economic recovery. Their measure increase at between zero and of inflation is forecast at -0.9 per cent to four per cent. NPDC will need to ensure that the community is well informed about the cost drivers 2.9 per cent. affecting service delivery. NPDC’s approach is to adopt BERL data and apply the prior year percentage change to create the new year budget (for instance, the 2020/21 inflation rate is applied for the 2021/22 budget). 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 LGCI for operating -0.6% 3.6% 2.9% 2.5% 2.5% 2.5% 2.5% 2.6% 2.7% 2.7% 2.6% expenditure LGCI for capital -0.9% 4% 3% 2.6% 2.6% 2.7% 2.6% 2.8% 2.8% 2.9% 2.7% expenditure LGCI - overall -0.7% 3.7% 2.9% 2.5% 2.5% 2.6% 2.5% 2.6% 2.7% 2.7% 2.6% CPI 1.6% 1.7% 1.7% 1.7% 1.6% 1.9% 2.0% 2.2% 2.3% 2.3% 2.3%

NPDC has modified the BERL LGCI forecast for 2020/21 and 2021/22. This is to smooth the impact across two years of deflation followed by a significant inflation increase. This approach also provides mitigation if LGCI inflation is higher than forecast in 2020/21 (the two alternative scenarios provided by BERL both have a higher inflation rate in 2020/21). This smoothing is outlined in the following table:

2020/21 2021/22 LGCI - modified for operating expenditure 0% 2.5% LGCI - modified for capital expenditure 0% 2.6% LGCI - modified overall 0% 2.5%

NPDC has also made specific assumptions about inflation for total staff costs (one per cent in year one, two per cent thereafter), gas and electricity increases (zero in year one, three per cent thereafter), the rates payable on NPDC property (3.5 per cent per annum) and insurance (five per cent per annum). There is a medium level of uncertainty. Uncertainty arises from external price inflation. If these factors change from the projection then the assumption will not be borne out. Forecast inflation will impact on the ability of NPDC to deliver on its service levels and impacts future budgets. NPDC will need to ensure that the community is well informed about the cost drivers affecting service delivery. A higher or lower LGCI than forecast is likely to have impacts on NPDC budgets. A higher rate of inflation will require either increased budgets (and therefore rates increases) or adjustments to levels of service. A lower rate of inflation will either reduce budgets (and therefore rates increases) or enable increased levels of service within existing budgets.

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Significant Forecasting Assumptions

Assumption Detail and uncertainty The effect of inflation on NPDC has planned a mixed approach for year one of the LTP. NPDC has removed the expected deflationary pressure in the LGCI, but also NPDC’s services (continued) assumed staff, gas and electricity costs do not increase as much as in other years. This provides a balance to reflect the unusual economic circumstance. The overall impact of the smoothing of LGCI in years one and two result in a decreased in inflation forecast by 0.5 per cent. NPDC will need to find internal savings to match this lower LGCI assumption. If these savings are not found then NPDC may need to increase rates to match this reduction. Revaluation of assets The revaluation of assets will result in book values that rise in line with inflation. NPDC last revalued its land, building and infrastructure The fair value of assets that are assets in 2019, revaluations are expected in 2022, 2025, 2028 and 2031 (every three years). Forestry assets are revalued annually. revalued will increase in line NPDC’s assets deliver services to the community and hold a ‘value in use’. The Council’s significant assets are long life assets. Any with inflation. reassessment of current replacement costs are used to determine the cost of the asset renewal programme as outlined in the respective asset management plans. This in turn means NPDC will need to make an increased budgetary provision through general rates for renewal funding. There is a low level of uncertainty. Uncertainty arises from replacement costs. If these factors change from the projection then the assumption will not be borne out. There is a risk that assets are revalued at a lower or higher amount than inflation. Any substantive change in asset revaluation may result in an increase or decrease in the cost of the asset renewal programme. Useful lives of significant Assets are expected to have a lifespan as set in the depreciation policy in the Statement of Accounting Policies. assets Asset class Roads Laboratory Solid Waste Stormwater Flood Water Wastewater The actual lives of significant Protection assets are in line with expected useful lives. Years 5-100 8-30 35-100 50-140 50-200 10-120 10-140 There is a low level of uncertainty. Uncertainty arises from asset condition and whether assets receive more or less use than anticipated. If these factors change from the projection then the assumption will not be borne out. Where actual asset lives differ (favourably or unfavourably) from the expected live of the asset, there is a corresponding impact on the asset renewals and maintenance programme. Assets that have longer lives than assumed will either result in savings through later replacement or may still be replaced at the time set out (e.g. if it is difficult to determine the state of the asset until replacement, such as for underground assets). Assets that have shorter lives than assumed may either result in reduced levels of service or require replacement earlier than expected, potentially before the asset is fully depreciated. NPDC has, and continues to develop, appropriate asset management plans together with regular inspection, maintenance and management practices to manage these risks.

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Significant Forecasting Assumptions

Assumption Detail and uncertainty Vesting of new assets in NPDC NPDC receives vesting of assets as a result of subdivision activity. NPDC anticipates receiving approximately $4.3m of vested assets each Approximately $4.3m of assets year (this figure is for year one) and the Council assumes that this value will increase in line with inflation each year. This assumption is will be vested in NPDC per based a conservative long run average. annum. There is a low level of uncertainty. Uncertainty arises from variability in subdivision activity that results in asset vesting. If these factors change from the projection then the assumption will not be borne out. Assets vested with NPDC increases the need for infrastructure renewal funding and also has additional funding implications for operating costs. NPDC is aware of likely future levels of vested assets through the resource consent process. The standard of assets proposed to be vested must meet NPDC’s requirements for materials, construction techniques and quality. Any assets vested as the result of development have a minimal impact on NPDC’s overall asset base per capita as the district’s rate base increases with population growth. Any significant increase in vested assets will increase NPDC’s asset base. However, it is unlikely to have any significant impact on NPDC’s financial position or levels of service. This is because an increase in vested assets would likely reflect additional development and therefore an increased rate base. A decrease in vested assets will mean NPDC’s asset base will not grow as quickly. This will not be significant in terms of impacting on NPDC’s debt to asset ratio so should not impact on the ability to borrow. It is, however, likely to reflect a downturn in development. Sources of funds for future The Revenue and Financing Policy sets out how assets will be funded for different activities. replacement of significant Funding for the renewal of short life infrastructural assets is calculated on a Long Range Average Renewals Approach. This is an approach assets whereby NPDC uses rates to maintain a reserve. The reserve is then used to fund the renewal of assets. The amount of rates added to the NPDC will fund the replacement reserve each year is based on the 10 year forward horizon for renewal requirements. of significant assets in line with the Revenue and Financing Funding for the renewal of long life infrastructural assets is through renewal reserves but can also be met through borrowing, in accordance Policy and Financial Strategy. with the Revenue and Financing Policy. There is a low level of uncertainty. Uncertainty arises from sources of funding not being available at the time of an assets replacement. If these factors change from the projection then the assumption will not be borne out. There is a risk that a funding source is not available to fund the replacement of any given asset at the time of its replacement. Section 80 of the Local Government Act 2002 sets out the process for NPDC to make a decision that is significantly inconsistent with a policy. This process could be used at that time.

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Significant Forecasting Assumptions

Assumption Detail and uncertainty External funding support External funders provide operational and capital funding support to enable NPDC to maintain and/or enhance the level of service delivery. Waka Kotahi NZ Transport NZTA provides a significant level of subsidy for roading operations and maintenance as well as capital renewals and augmentation (51 per Agency (NZTA) funding to cent to 100 per cent of eligible works). The NZTA Financial Assistance Rate is currently set at 51 per cent. In addition, other government maintain and renew roads and funding agencies provide funding support to enable NPDC to deliver on its service levels. These include funding sources such as the associated assets will remain Department of Internal Affairs (soldiers’ grave sites) and the Ministry for Culture and Heritage (arts grants). Details of this funding is set out at current levels. Government in the relevant activity management plans. Further funding is provided by external parties for events, exhibitions and capital projects. funding in other areas and There is a medium level of uncertainty. Uncertainty arises from changes to government and other external funders priorities changing. If other external funding will these factors change from the projection then the assumption will not be borne out. remain at current levels. Any reduction in funding support will impact on service levels and the long-term custodianship of our roading assets in particular. Less funding from NZTA will have an impact on the district’s roading work programme. Projects will either have to be deferred or NPDC will need to provide extra funding through rates to counter reduced support from NZTA. An increase in the range and type of subsidies and funding support may require increased funding input from NPDC. Rates remissions Rates remissions will continue to apply at the current level with an increase of 3.5 per cent per annum. Rates remissions are estimated There is a medium level of uncertainty. Uncertainty arises from potential changes to the remission policies and changes to who qualifies as at $0.8m in year one and a result of other changes. If these factors change from the projection then the assumption will not be borne out. increase at 3.5 per cent per annum. The Proposed District Plan includes further properties to provide regulatory controls for which NPDC currently provides a remission. The outcome of the Proposed District Plan is unknown as there are statutory processes (including public submissions and appeal processes). The remission estimate is based on the Proposed District Plan, and a review of the remission policy may be required when the Proposed District Plan becomes operative. The Local Government (Rating of Whenua Māori) Amendment Act 2021 provides a significant change to the rating of Māori land, including increasing the non rateability of Māori land and a statutory rates remission scheme. The Council also has to review its policy on the remission and postponement of rates on Māori freehold land by 30 June 2022. NPDC does not expect this Act to have significant implications on rates remission, although some properties may shift from a rates remission to being non rateable (in effect, having no net impact). Any change in legislation or NPDC’s remissions policy will have an impact on the level of rating remissions. A higher level of remission will be met through other ratepayers paying higher rates, or may cause a review of the remission policies. A lower remission level will provide a savings and reduce the rates required.

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Significant Forecasting Assumptions

Assumption Detail and uncertainty Forecast return on investments NPDC has significant external investments in NPDC’s PIF. The PIF is managed by a Full Outsourced Agent (FOA), Mercer New Zealand The PIF will release 3.3 per cent Limited. The FOA is reviewed and monitored by the New Plymouth PIF Guardians Limited (NPG). Annual releases from the PIF contribute of its value per annum (after significantly to reducing the annual rates requirement. inflation and management fees The PIF release is required to fund management fees and costs, with an amount to offset rates based on 3.3 per cent of the value of the and costs), with a rate of return fund after inflation and including fees and costs (with a smoothing rule applied). The PIF will release 3.4 to 3.6 per cent per annum gross of of 5.7 per cent per annum. management fees and costs. The PIF’s rate of return is expected to be 5.7 per cent per annum. This assumption is based on advice from the NPG. It is based on a long-term view of returns so the 10 year return may differ from the average. There is a medium level of uncertainty. Uncertainty arises from the rate of return in market investments. If these factors change from the projection then the assumption will not be borne out. If the average annual earnings rate of the PIF is less than forecasted and the value of the PIF decreases, this will reduce the release and may impact on NPDC’s current Financial Strategy. This could have an impact on the rates requirement or adjustments to the levels of service provided to the community. Development contributions Residential development growth is forecast at 345 new dwellings each year for the first five years of the LTP and 361 new dwellings per NPDC will receive development annum for the second five years. Non residential growth is forecast to grow at an average rate of 191 to 200 household unit equivalent contributions revenue in (HUE) per annum. line with the Development The LTP forecasts the following forecast development contribution revenue: Contributions Policy and forecast development rates. 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Development contribution 2.96 3.08 3.19 3.31 3.44 3.57 3.71 3.85 3.99 4.15 revenue

This is at the rate that development contributions are expected to be collected at. However, the timing of development contribution receipts is outside NPDC’s control. Development contribution requirements are assessed according to the number of dwellings and HUE that the relevant capital project(s) cater for, and then applied to each dwelling and HUE as they are developed. NPDC records growth related capital expenditure as being fully funded by borrowings and applies development contributions when received. There is a medium level of uncertainty. Uncertainty arises from the rate of residential and non residential development. If these factors change from the projection then the assumption will not be borne out. As development and financial contributions are actually received they will be netted off any borrowing made for that purpose. A slower rate of development will result in a lower level of development contributions being received. This will result in increased debt, which in turn may result in higher costs to borrow and a reduced forward capacity to borrow. A faster rate of development will result in a higher level of development contributions being received. This will reduce borrowings, which in turn may reduce costs of borrowing and provide greater capacity to borrow in the future.

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Significant Forecasting Assumptions

Assumption Detail and uncertainty Borrowing and interest rates Interest rates are assumed at the following levels. Interest rates for cash Item Cash investment Term deposit Airport working General borrowing Voluntary targeted investments will be between investment capital loan rate scheme zero and three per cent and borrowing interest rates will be Interest rate 0% to 2% 1% to 3% 3.8% 3% to 3.5% 3% around three per cent. Lenders will continue to meet NPDC’s Borrowings are repaid over a 20 to 30 year timeframe. requirements for loan funding Overall interest rate and funding strategies are managed within the parameters of the Treasury Management Policy. Interest rate swaps are (redemption and new). also used as per the policy. The Treasury Management Policy is reviewed as part of the LTP process every three years. There is a low level of uncertainty. Uncertainty arises from obtaining lending from the market. If these factors change from the projection then the assumption will not be borne out. NPDC actively seeks to receive more favourable interest rates, which then enables NPDC to lower its borrowing costs, and either pay off debt faster or to reduce debt repayment costs. There is unlikely to be any adverse implications in the plan resulting from funding or interest rate risk. However, if economic conditions result in increases in interest rates that are unable to be hedged, such cost increases may impact on NPDC’s overall budget position and ability to maintain service levels without an increase in rates income. NPDC’s shareholder and guarantor status for the Local Government Funding Authority minimises the risk of the Council not being able to borrow the funds it requires. New Plymouth District Council The New Plymouth District Council (Waitara Lands) Act 2018 provides the leaseholders of the remaining approximately 600 leasehold (Waitara Lands) Act 2018 properties in Waitara with a right to freehold. These funds are then distributed into three different funding pools – the Hapū Land Fund Waitara leaseholders will (held by NPDC for Te Kōwhatu Tū Moana), the Waitara Perpetual Community Fund (held by NPDC for Te Tai Pari Trust), and the Waitara River continue to freehold over the funds (held by Taranaki Regional Council). life of the LTP and the Waitara The LTP assumes that Waitara leaseholders will continue to freehold with around 100 leaseholders remaining by 30 June 2031. The LTP also Perpetual Community Fund’s assumes that the average unimproved land value will be $184,800 in year one and increasing by five per cent per annum. The rents and annual release will grow to over sales proceeds become the following annual allocations into the three funding pools: $1m per annum by the end of 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 the LTP. ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Waitara Perpetual Community Fund 2.80 2.65 2.94 2.88 2.59 1.93 1.82 1.70 1.70 1.70 Hapū Land Fund 2.80 2.65 2.94 2.88 2.59 1.93 1.82 1.70 1.70 1.70 Taranaki Regional Council 2.46 2.25 2.54 2.52 2.28 1.56 1.51 1.45 1.38 1.59

Waitara Perpetual Community Fund The Statement of Investment Policies and Objectives for the Waitara Perpetual Community Fund sets out NPDC’s investment policy, with strategic asset allocation ranges, currency hedging, liquidity management and concentration risk policies. The LTP assumes that the Waitara Perpetual Community Fund earns five per cent per annum on investments. The annual release is set in line with the release rule policy, which forms part of the Statement of Investment Policies and Objectives.

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Significant Forecasting Assumptions

Assumption Detail and uncertainty New Plymouth District Council The release rule aims towards a long-term release of three per cent of the Waitara Perpetual Community Fund’s balance, however the (Waitara Lands) Act 2018 release rule sets an 80 per cent weighting on the previous year’s release to provide a smooth mechanism to ensure the release payment is (continued) relatively stable. On that basis, the LTP assumes the following annual release from the Waitara Perpetual Community Fund: 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Annual release ($’000) 52.2 147.6 249.0 354.8 466.3 584.7 706.5 828.1 948.6 1,066.7 NPDC has no role in managing the Taranaki Regional Council’s Waitara River funds, and the Hapū Land Fund balance is subject to the decisions of Te Kōwhatu Tū Moana. There is a medium level of uncertainty. Uncertainty arises from leaseholders’ individual decisions as to whether they will freehold, which in turn is influenced by personal income, land value, lease rental and other factors. Uncertainty also arises in the returns due to house price inflation that may impact on the unimproved land value as assessed in Waitara. For the purposes of this LTP, NPDC assumes that 50 per cent of the Hapū Land Fund’s income is distributed over the life of the LTP. However, NPDC has no direct control of the Hapū Land Fund as Te Kōwhatu Tū Moana makes decisions on the expenditure of the Fund. The net impact of this uncertainty on NPDC is minimal on the Council and services provided. However, it is acknowledged that there may be a more significant impact on Te Kōwhatu Tū Moana, Te Tai Pari Trust and the Taranaki Regional Council. Achievement of capital works The LTP includes $963m of capital expenditure over the 10 years. Projects are planned for particular years. The LTP budgets are forecast on programme the basis that projects and works are undertaken in the years specified, and that there are no variations to the capital works programme. NPDC will achieve its stated There is a medium level of uncertainty overall for this assumption, however there is a high level of uncertainty for the delivery of capital capital works programme expenditure to meet additional demand (growth related infrastructure, with $82m in capital expenditure). Uncertainty arises from NPDC’s planning processes, project management processes, the construction market, alignment with urban growth and development, and other factors. Capital work programmes may also be varied by annual plans and future LTPs. If these factors change from the projection then the assumption will not be borne out. NPDC has historically been able to undertake a similar amount of capital works compared to that set in the relevant LTP and/or annual plan. However, there has been a ‘bow wave’ effect of carry forwards, whereby projects carried forward from one year to the next cause a displacement of planned projects in the next year. This means that, while the quantum of works undertaken has been similar to the relevant plan, the projects undertaken in any year have differed. In order to address this NPDC is implementing a stricter programme to prevent carry forwards from 2020/21 into year one of the LTP, including early reprioritisation of some projects that will not be achieved (in part or in full) in 2020/21 into the LTP capital projects (rather than addressing them as a carry forward later on). This enables better planning of the actual quantum of capital works to be undertaken in 2021/22. NPDC has an increased capital works programme outlined in the LTP compared to previous plans and undertaken a number of improvements to ensure it can deliver. The stepping in of the programme over the first five years enables the Council to grow its capacity to undertake this work. Phasing of significant projects in the LTP budgets across multiple years provides time for planning, land acquisition and resource consents before the intended construction timing. NPDC also introduced a new Portfolio, Programme and Projects

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Significant Forecasting Assumptions

Assumption Detail and uncertainty Achievement of capital works Management system, new procurement processes, and increased both planning and project management resources in order to undertake programme (continued) this works programme. Much of this increase is in the works programme for the renewal of existing assets, and therefore less subject to planning, resource consent, land acquisition or other delays. Any delay in achieving the stated capital works programme may result in a carry forward, whereby some or all projects are delivered the following year. This can result in other projects being delayed as a result. Delays in service level projects may also result in reduced borrowing requirements that, in turn, reduce rates required to repay that borrowing. Delays in renewal projects may reduce the funding taken from the renewal reserve that, in turn, reduces rates required to top up that reserve. There may also be additional costs in deferred projects as result of delays. These additional costs include cost escalation from additional inflation and, for renewals, the existing asset may require additional maintenance before replacement. From a resident viewpoint, it may mean that the Council does not improve service level in the timeframe expected, or increases the risk of asset failure through delayed renewal. Growth capital expenditure Historically projects related to urban growth are subject to the highest degree of delay or underspend when compared to planned expenditure out of the three categories of capital expenditure. This is because some growth related infrastructure is contingent on developers undertaking works, or can be delayed due to the lack of demand. There has been an underspend in land purchases arising from development for new reserves and other NPDC infrastructure. These delays do not result in failure to meet a level of service as outlined in the LTP, and do not increase risk of existing assets failing. The delays of these projects are prudent in light of the situation when compared to undertaking works or land purchases not required at that time. The Proposed District Plan provides a more directive approach to the timing of developments and requirements for the infrastructure to service those developments. This provides greater confidence that the infrastructure will be required in the year earmarked for its construction. However, the Proposed District Plan is still subject to change because of submission and appeal processes, which may in turn result in changes to timing from that contained in the Proposed District Plan and this LTP. NPDC has started a regular forum with developers to improve the process by which developers and the Council work together, and provides the Council with better information about developers’ subdivision intentions. The Council has also scheduled most specific growth projects reliant on developers in for years four to eight of the LTP to provide time to plan infrastructure required with developers. The financial forecasts contained within this LTP are based on the Council achieving the stated capital works programme for growth related infrastructure. NPDC is confident that the programme put in place will better enable the Council to do that programme. However, there is a risk that the capital works programme for growth related infrastructure is not met. The delay of growth related infrastructure results in delayed borrowing. This will generally not result in a reduced rates requirement because growth related infrastructure is repaid through development contributions rather than rates. However, some growth related projects do have a component of funding for any renewal or service level impact, and so may have a small impact on rates required to repay that borrowing in the short-term. There may also be an impact on the level of service received by the community, or an increased risk of asset failure. If the additional work to improve timing and delivery of growth related infrastructure is partially successful, and NPDC achieves delivery of 75 per cent of the growth related infrastructure over the life of the LTP, then across the 10 years there will be $14.7m reduction in debt and $5.5m reduction in interest and principal repayments. By the end of the LTP rates will be 0.6 per cent lower than forecast.

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264 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Significant Forecasting Assumptions

Assumption Detail and uncertainty Achievement of capital works However, if NPDC achieved only half of its growth related infrastructure over the life of the LTP (slightly below the recent average programme (continued) achievement of growth related infrastructure) then across the 10 years there will $29.5m reduction in debt and $11m reduction in interest and principal repayments. By the end of the LTP rates will be 1.2 per cent lower than forecast. These calculations are based on projects where the main driver is growth, so does not take into account renewal or service level projects with a growth related element. The calculations also do not assume that delayed/underspent projects are undertaken at a later time within the 10 year period. Section 210 of the Local Government Act 2002 provides that the Council must refund development contributions received for a specified reserve purpose if the money is not applied to that purpose within 10 years of receipt (or other period specified in the Development Contributions Policy). Not achieving its growth related capital works programme creates a potential for liability for NPDC. Development contributions collected for specified reserve purposes are a small proportion of development contributions levied. Specified reserve purposes constitute $84 of the overall charge (varies by area of development – see NPDC’s Development and Financial Contributions Policy for more information (figures are for year one) and inflation adjusted annually). These specified projects are less likely to be subject to considerable delay as they refer to the upgrade of an existing specified reserve rather than being for land purchase or development of future reserves that are not currently owned by NPDC. The maximum potential liability the Council faces to refund these development contributions is $55,000 per annum (year one figure, based on an estimated 659 HUEs, development contributions are inflation adjusted annually) and would start outside of the LTP’s 10 year financial forecasting horizon. Capital costs The LTP includes a large number of capital projects with estimated costs. The financial information and statements are prepared on the The actual capital cost of a basis of these estimated costs. project is close to the forecast There is a medium level of uncertainty. Uncertainty arises from the scope of the business case, as well as the changing costs of materials capital cost. and labour involved in undertaking capital projects. If these factors change from the projection then the assumption will not be borne out. One project, the Urenui and Onaero sewer system, is considered to have a high level of uncertainty as detailed below. NPDC has developed a system to classify capital work budgets. Each class indicates a different stage of planning and estimating methodology. Therefore, each class has a different expected accuracy range. The table below summarises these classes and their accuracy. Class Estimating methodology Expected accuracy range 5 Identify Historic, judgement and analogy ±100% 4 Assess Equipment factored ±50% 3 Select Semi-detailed unit costs ±20% 2 Define Detailed unit costs with some design assumptions ±15% 1 Execute Detailed unit costs with detailed designed ±5%

The intention of NPDC is to continually develop and refine the pipeline of capital projects so that cost estimates are continually refined in the lead up to the delivery of a project. Costs may increase or decrease during the development and refinement process as better information about the project is known.

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265 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Significant Forecasting Assumptions

Assumption Detail and uncertainty Capital costs (continued) The prioritisation process for the LTP has intended to place projects with higher accuracy of budgeting within the first three years of the plan. Projects with a less accurate budget (and higher range) have generally been placed into outer years. However, the prioritisation process is subject to other timing considerations as well. Urenui and Onaero sewer system NPDC has include a $29.2m budget for the sewage reticulation of the Urenui and Onaero townships. Given the pressure to address the environmental issues in these townships, the timeline has been condensed by foregoing the investigation and assessment of alternative options. Instead, NPDC has decided to reticulate these townships with a small land based wastewater treatment plant. This moves the estimated completion of construction forward from 2030/31 to 2025/26. Because planning work is still only in the early stages there are a range of unknowns, including the potential sites and land purchases for the treatment plant, overall system design and the number and location of any reticulation pump stations. As such, there is a high level of uncertainty and the cost estimate is a Class 5 budget. NPDC views this higher level of uncertainty as an acceptable risk in order to address the environmental issues sooner than a standard planning process. NPDC estimates that the final costs may vary between $26.3m (being 10 per cent less than budget) to $58.3m (being double the budget). This will have consequential implications for debt and rates. Asset sales NPDC has not proposed any significant asset sales during the LTP. (This assumption excludes the Waitara leasehold properties, which are NPDC will not undertake included in the New Plymouth District Council (Waitara Lands) Act 2018 assumption.) significant asset sales during During the LTP there may be some minor surplus operating assets that are sold. the life of the LTP. There is a medium level of uncertainty. Uncertainty arises from political decision making. If these factors change from the projection then the assumption will not be borne out. If NPDC determines to sell a significant asset then the net proceeds will be used to either pay for a new capital project or to pay down debt. There may also be a reduction in associated operating expenditure with operating the sold asset. Significant contingencies and While there are always unexpected events that may have an impact on NPDC’s operations, NPDC mitigates these through its risk mitigation commitments not budgeted strategies including indepth insurance cover, established bank credit lines, and business continuity plans. for Commitments and contingencies that NPDC is aware of include the following. There will not be unforeseen events or circumstances that Local Government Funding Agency (LGFA) could impact NPDC’s finances NPDC is a guarantor of the LGFA. The LGFA was incorporated in December 2011 with the purpose of providing debt funding to local and/or levels of service. authorities in New Zealand. LGFA has a local currency rating from Fitch Ratings and Standard and Poor’s of AA+. NPDC is one of 31 local authority shareholders and 52 local authority guarantors of the LGFA. NPDC has a commitment to fund uncalled shareholder capital in the event an imminent default is identified. Together with the other shareholders and guarantors, NPDC is a guarantor of all of LGFA’s borrowings. This is based on NPDC’s rates as a proportion of the total rates for all guaranteeing local authorities. At 30 June 2020, LGFA had borrowings totalling $11.9b (2018/19: $9.5b).

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266 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Significant Forecasting Assumptions

Assumption Detail and uncertainty Significant contingencies and Financial reporting standards require NPDC to recognise the guarantee liability at fair value. However, NPDC has been unable to determine commitments not budgeted a sufficiently reliable fair value for the guarantee and therefore has not recognised a liability. NPDC considers the risk of LGFA defaulting on for (continued) repayment of interest or capital to be very low on the basis that: • NPDC is not aware of any local authority debt default events in New Zealand; and • local government legislation would enable local authorities to levy a rate to recover sufficient funds to meet any debt obligations if further funds were required.

Local Authority Protection Programme (LAPP) NPDC is a member of LAPP, which is designed to assist local authorities to fund the rebuild of mainly underground infrastructure assets after a natural disaster. The fund was depleted by the Christchurch earthquakes and again by the Kaikōura earthquake. Membership has also reduced in recent years to the extent that NPDC is now the largest member by asset value under LAPP. Member contributions are expected to continue increasing due to the increasing value of assets covered and the cost of insurance and reinsurance generally. There is also a potential need for local authorities to increase their insurance provisions generally in the future if the central government 60/40 recovery funding split review progresses. Yarrow Stadium The stands at Yarrow Stadium have been found to be earthquake-prone and are not suitable for public use. Taranaki Regional Council (TRC) have consulted on and committed to undertaking a $50m project, with $20m of central government funding, in order to earthquake strengthen both stands. Yarrow Stadium is operated through an agreement between NPDC and TRC. Under that agreement, Yarrow Stadium is owned by TRC, which funds the facility’s maintenance and long-term development and it is operated by NPDC, which meets day to day staffing and operational costs. The agreement also enables TRC to hand back the ownership of Yarrow Stadium to NPDC. The LTP assumes that TRC will continue to own Yarrow Stadium. Other NPDC is not aware of any other additional contingencies or commitments not already covered by the prospective financial statements and/ or asset management plans. There is a low level of uncertainty. Uncertainty arises from these being externally driven events. If these factors change from the projection then the assumption will not be borne out. NPDC has planned appropriately for known potential commitments and has the necessary risk mitigation strategies in place to ensure any impact from unknown events can be managed without any undue impacts.

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267 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

268 1.1 Extraordinary Council agenda (29 June 2021) - LTP adoption

Contact NPDC P: 06-759 6060 E: [email protected]

More information: newplymouthnz.com NewPlymouthDistrictCouncil @NPDCouncil

269 Extraordinary Council agenda (29 June 2021) - Adoption of Development and Financial Contributions Policy 2

DEVELOPMENT AND FINANCIAL CONTRIBUTIONS POLICY 2021

MATTER

1. The matter for consideration by the Council is adoption of the Development and Financial Contributions Policy 2021.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report, Council:

a) Notes that the Development and Financial Contributions Policy 2021 has been updated to align with Council decisions as part of the 2021- 31 Long Term Plan process.

b) Revokes P18-003 Development and Financial Contributions Policy 2018 on 1 July 2021.

c) Adopts the Development and Financial Contributions Policy 2021 as per Appendix 2 including the proposed updates to come into effect on 1 July 2021.

COMPLIANCE Significance This matter is assessed as being significant. This report identifies and assesses the following reasonably practicable options for addressing the matter:

1. Adopt the Development and Financial Contributions Options Policy 2021 including the proposed updates.

2. Adopt the Development and Financial Contributions Policy 2021 not including the proposed updates.

The persons who are affected by or interested in this matter Affected persons are any person undertaking development in the district. Recommendation This report recommends Option 1 for addressing the matter. Long-Term Plan / Annual Plan Yes. Implications Significant Policy and Plan No. Inconsistencies

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EXECUTIVE SUMMARY

2. We recommend that Council adopts the Development and Financial Contributions Policy 2021 (the Policy) including the proposed updates in order to ensure the Policy is consistent with the growth related capital expenditure included in the Long Term Plan 2021-31 (LTP). Taking this approach will ensure that development contributions are used in a consistent manner to fund the growth related capital expenditure included in the LTP.

3. Next steps are to update all relevant information with the new development contributions policy and charges in preparation for 1 July 2021 when the new charges come into effect.

BACKGROUND

Public feedback in support of proposed policy

4. On 23 February 2021 the Council approved the draft Policy for public consultation, with the consultation running concurrently with the consultation for the LTP and that the final Policy would be subject to decisions made as part of the LTP process.

5. One submission was received in support of the Policy and on 19 May 2021 the Council decided to make no changes to the Policy as a result of the submission received.

Proposed Policy updates to align with LTP

6. The report on the Policy on 19 May 2021 noted that the Policy may require updating to ensure alignment with Council decisions as part of the LTP process relating to growth related capital expenditure and that the final Policy would be reported to Council for adoption in June 2021.

7. In addition to development contribution charge changes to reflect minor budget refinements several other projects in the Policy have being updated following Council deliberations for the LTP.

8. Project changes include:

a) Waitara Library and Service Centre Redevelopment – this project was included in the budget for the LTP as part of Council deliberations. As there is a growth component to this project, a portion of the project forms part of the growth related capital expenditure for the LTP and as a result it has been included in the Policy. The project has been included in the Policy in a new local area catchment for the Waitara Library and Service Centre which represents the area that will be serviced by the library.

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b) Brooklands Zoo Planning Implementation – two projects have been combined to create a single project for the zoo. The capital expenditure for the project has also been reduced in line with the Council decision on this matter.

c) A number of Transportation project updates were confirmed in deliberations that are also reflected in the updated development contribution charges.

Changes to development contribution charges

9. In addition to the project changes outlined above, the proposed development contribution charges for water have increased reflecting the inclusion of growth components of the Water Master Plan Programme Development and the Water Conservation Programme and budget updates associated with Universal Water Metering.

10. In summary, any increase in growth related capital expenditure for a project has resulted in an increase in the development contribution charge for that project, and conversely a decrease in the capital expenditure has resulted in the decrease in the contribution charge. Appendix 1 shows the change in development contribution charges in relation to network, local area catchment and development area catchments included in the Policy. Also shown is the final overall development contribution charge which will come into effect on 1 July 2021.

11. Changes of note to development contribution charges are:

a) Waitara Library Redevelopment – an increase of $2,583.86 per Household Unit Equivalent (average residential dwelling) developed in the Waitara Local Area Catchment.

b) Water network: All networks catchment – an increase of $235.88 per Household Unit Equivalent that connects to a reticulated water network. This is as a result of budget refinements to several water network projects.

Policy updates and policy management

12. As a result of the changes to growth related capital expenditure described above, several sections of the Policy have required to be updated, these include; table 1 in statement 55, table 2 in statement 59, the development contribution charges tables in Schedule 1, the addition of the local area catchment for the Waitara library in Schedule 1.

13. The proposed Policy incorporating the recommended updates is included in Appendix 2.

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14. As part of the management of council policies, the current policy P18-003 Development and Financial Contributions Policy is recommended to be revoked on 1 July 2021. This will ensure that Council policy information is up to date and consistent with the latest policy and related charges.

NEXT STEPS

15. Next steps would be to update all the relevant customer information with the new development contributions policy and charges to reflect the adopted Development and Financial Contributions Policy in preparation for 1 July 2021 when the new charges would come into effect.

SIGNIFICANCE AND ENGAGEMENT

16. In accordance with the Council’s Significance and Engagement Policy, this matter has been assessed as being significant because the Council has a statutory obligation to adopt and review a policy on this matter and because the policy; guides how growth related capital expenditure will be funded including funding of capital expenditure for strategic assets; has financial implications for the community and the Council regarding which funding source growth related capital expenditure is recovered; and is deemed to affect developers within the district as it guides how much developers will have to pay in contributions for their development.

17. The updates to the Policy are not considered to be significant to warrant further consultation in addition to the consultation that has already occurred on the Policy.

OPTIONS

General options assessment

Financial and Resourcing Implications

18. The implementation of the Policy is undertaken as part of resource and building consent processes which are cost recoverable through fees and charges.

Promotion or Achievement of Community Outcomes

19. The activities funded by development contributions contribute both directly and indirectly to the following Community Outcomes as set out in the LTP:

a) Community – achieving wellbeing through a safe, creative, active and connected community while embracing Te Ao Māori.

b) Caring for Our Place – nurturing our environment, mitigating our impact and adapting to climate change.

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c) Prosperity – growing a resilient, equitable and sustainable economy where people want to work, live, learn, play and invest across our district.

Statutory Responsibilities

20. The Act requires the Council to adopt a policy on development and financial contributions.

Participation by Māori

21. There was opportunity for Māori to participate through the submission process.

Community Views and Preferences

22. The Policy was consulted on concurrently with the consultation on the LTP. One submission was received in support of the Policy and on 19 May 2021 the Council decided to make no changes to the Policy as a result of the submission received.

Option 1 Adopt the Development and Financial Contributions Policy including the proposed updates.

Risk Analysis

23. There are no apparent significant risks associated with this option.

24. The Policy and development contribution charges have been developed in accordance with legislative requirements and are considered to be equitable and fair in relation to ensuring those persons who create the need for the community facilities pay a proportionate portion of the costs.

Consistency with Policies and Plans

25. This option will ensure that the Policy is consistent with the LTP.

Advantages and Disadvantages

26. The advantage of this option is that the Policy will align with the growth related capital expenditure included in the LTP.

27. The updates to capital expenditure to reflect decisions taken during the LTP to increase the total amount to be recovered through development contributions and have additional financial impacts on developers.

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Option 2 Adopt the Development and Financial Contributions Policy not including the proposed updates.

Risk Analysis

28. There may be Audit NZ implications if the Policy does not align with the LTP regarding growth related capital expenditure and consistency with significant forecasting assumptions for development contributions.

Consistency with Policies and Plans

29. The Policy would be inconsistent with the LTP.

Advantages and Disadvantages

30. A disadvantage of this option would be a financial shortfall in the funding of the projects that have been updated in the Policy. Other funding sources may have to be utilised to cover the shortfall in project funding.

31. Developers would not be impacted by the increase to development contribution charges that have increased to reflect the additional capital expenditure included in the LTP.

Recommended Option This report recommends Option 1: Adopt the Development and Financial Contributions Policy including the proposed updates for addressing the matter.

APPENDICES

Appendix 1 Change in development contribution charge in relation to network, local area catchment and development area catchments included in the Policy (ECM8565261)

Appendix 2 Development and Financial Contributions Policy 2021 (ECM8483468)

Report Details Prepared By: Richard Mowforth (Senior Policy Adviser), Shawn Scott (Management Accountant/Commercial Analyst) Team: Corporate Planning and Policy, Financial Services Reviewed By: Mitchell Dyer (Corporate Planning and Policy Lead) Approved By: Joy Buckingham (Group Manager Corporate Services) Ward/Community: District Wide Date: 16 June 2021 File Reference: ECM8565270 ------End of Report ------

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Appendix 1 Change in development contribution charge in relation to network, local area catchment and development area catchments included in the Policy

 Charges with brackets = reduction in DC charge.  Charges without brackets = increase in DC charge.

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New Plymouth District Council Development and Financial Contributions Policy 2021

Contents Council to seek development contributions ...... 3 Who is required to make development contributions ...... 3 How will the Council use development contributions ...... 3 Summary of Financial Contributions Policy ...... 3 Growth in New Plymouth District ...... 4 Growth planning and prioritisation ...... 4 Rationale for seeking development contributions ...... 5 Community outcomes ...... 5 Distribution of benefits and cost allocation ...... 5 Community facilities provided within a development ...... 5 Transportation ...... 5 Water supply ...... 6 Wastewater treatment ...... 6 Stormwater collection and management ...... 6 Parks and open spaces ...... 7 Community infrastructure ...... 7 Period of benefits ...... 8 Actions contributing to the need to undertake the activity ...... 8 Approach to funding ...... 8 Intergenerational equity ...... 8 Overall impact assessment ...... 8 Development agreements ...... 9 Level of capital expenditure required for growth for 2021-2031 ...... 9 Calculating development contributions ...... 10 Geographic area ...... 10 Units of demand...... 12 Calculation of charges ...... 12 Inflation ...... 13 Maximum contributions for reserves ...... 13 Capital or land based contribution ...... 13

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Significant assumptions related to development contributions ...... 13 Payment of development contribution charges ...... 14 Reconsideration of development contributions ...... 14 Right to reconsideration ...... 14 Lodging a request for reconsideration ...... 14 Reconsideration process ...... 14 Step 1: Receive the request for reconsideration ...... 14 Step 2: Assessing the request for reconsideration ...... 15 Step 3: Outcome of assessment of request for reconsideration ...... 15 Remissions, postponement or refund of development contributions ...... 15 Schedule 1 ...... 16 When are development contributions applied? ...... 16 Assessing requirement for development contributions ...... 16 Development contribution costs ...... 16 Network catchments ...... 17 Transportation, Parks, Stormwater and Community Infrastructure networks ...... 18 Wastewater network ...... 20 Water networks ...... 21 Waitara catchment (stormwater) ...... 22 Local area catchments ...... 23 Waimea Local area ...... 24 Waitara Local area ...... 25 Development areas ...... 26 Area Q ...... 27 Upper Carrington ...... 28 Junction ...... 29 Patterson Road...... 30

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Council to seek development contributions 1. A development contribution is a levy collected under the Local Government Act, 2002 (LGA 2002) to ensure any development that creates additional demand on council infrastructure contributes to the additional costs created.

2. The New Plymouth District Council’s (the Council) policy is to seek development contributions from those persons undertaking development in the district to recover a fair, equitable, and proportionate amount of the total cost of capital expenditure necessary to service growth in the district. This policy sets out:  The reasons Council has chosen to use development contributions as a funding source;  The methodology and rationale used for calculating the development contribution charges;  The assessment of contributions payable on developments; and  The process of calculating and paying development contributions.

Who is required to make development contributions 3. Those undertaking certain activities may be required to make a development contribution if the effects of a development (including cumulative effects) require the Council to incur capital expenditure to provide new or additional assets, or to increase the capacity of existing assets.

4. Those undertaking certain activities may also be required to make development contributions for capital expenditure the Council has already incurred in anticipation of future development.

5. More information about when a development contribution will be required is set out in paragraphs 83 to 89.

How will the Council use development contributions 6. The Council will use development contributions to fund community facilities such as: a) Network infrastructure – including the provision of roads and other transport, water, wastewater, and stormwater collection and management. b) Community infrastructure – including land, or development assets on land, owned or controlled by the territorial authority for the purpose of providing public amenities (includes land that the Council will acquire for that purpose). c) Reserves – which may include land acquisition and development.

Summary of Financial Contributions Policy 7. The Council’s Financial Contributions Policy is a component of the New Plymouth District Plan. Under the LGA 2002, this policy is required to summarise the financial contribution provisions in the District Plan.

8. The Financial Contributions Policy was formulated pursuant to the Resource Management Act 1991 (RMA). The circumstances under which financial contributions may be required are:

 For the impacts on network infrastructure resulting from subdivision and/or development and/or other land use.  Requirements for areas of new open space in development areas resulting from subdivision and/or development and/or other land use.

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9. Under the Financial Contributions Policy developers are required to meet the full cost of on-site infrastructure demands of their developments, e.g. water pipes required to connect to the water network. They will also be required to meet a fair and reasonable cost of the off-site infrastructure works required.

10. The Financial Contributions Policy has a provision to require financial contributions for community facilities (as defined in the District Plan). This provision is not currently applied.

11. The Operative District Plan contains financial contribution provisions. However, the Proposed New Plymouth District Plan (notified on 23 September 2019) does not contain financial contributions because at the time of notification, the RMA required that they be removed from District Plans. Since notification, the RMA has been amended again and now Council has the option of including financial contributions in its (proposed) District Plan. If Council wishes to include financial contributions in the Proposed District Plan, a variation or a plan change will be undertaken. In the meantime, financial contributions can still be taken under the Operative District.

Growth in New Plymouth District 12. The National Policy Statement on Urban Development 2020 (NPS-UD) recognises the national significance of:

 Having well-functioning urban environments that enable all people and communities to provide for their social, economic, and cultural wellbeing, and for their health and safety, now and into the future.  Providing sufficient development capacity to meet the different needs of people and communities.

13. The Council proposes various capital projects that will meet the NPS-UD requirements to cater for the predicted growth in the District. This policy details how these growth-related capital projects are funded.

Growth planning and prioritisation 14. Among Council’s important roles is planning the way the District is shaped (where people live) and the way people get around it. This means prioritising and managing future residential growth so that the community will know the expectations around how the district will grow, the standard of amenity required and the supporting infrastructure requirements so that informed investment decisions can be made.

15. The Council has conducted a comprehensive assessment of future growth opportunities for the district through the Housing and Business Development Capacity Assessment, June 2019 (HBA).

16. The HBA involved a detailed analysis of housing and business growth across the New Plymouth District, based on current and future levels of demand, supply and development capacity. The evidence base of the HBA has informed and provided background data for New Plymouths growth story and the development of the Proposed District Plan.

17. Through the HBA, the Council has prioritised how undeveloped residential areas, infill and green field development will happen across the district and where that growth should occur. Central to this has been to ensure that the network wide infrastructure and community facilities are available and have sufficient capacity to cater for development.

18. In addition, the Council has also prioritised several specific development areas to be serviced and available for development during the 10 years of the LTP. Considerations have included any new or additional

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assets or increased capacity required to service the district’s growth priorities, and the anticipated cost of providing community facilities to those areas identified.

Rationale for seeking development contributions 19. This section explains, in terms of the matters required to be considered under section 101(3), why the Council has determined to use development contributions.

Community outcomes 20. The activities funded by development contributions contribute both directly and indirectly to the following Community Outcomes as set out in the Council’s Long-Term Plan 2021-2031:

Community Achieving wellbeing through a safe, creative, active and connected community while embracing Te Ao Māori

Caring for our place Nurturing our environment, mitigating our impact and adapting to climate change

Prosperity Growing a resilient, equitable and sustainable economy where people want to work, live, learn, play and invest across our district.

Distribution of benefits and cost allocation 21. The Council has assessed who will benefit from provision of community facilities, considering the community as a whole, an identifiable part of the community, and/or individuals. Details of the Council’s assessment is:

Community facilities provided within a development 22. Demand for new community facilities within a development (including roads, water supply, wastewater, stormwater, parks, and community infrastructure) primarily benefits those groups or individuals undertaking the development. The Council considers it most reasonable and fair to recover this capital expenditure through development contributions from those groups or individuals undertaking the development.

23. Where a community facility is within a development but has benefits for the wider community, the Council determines it reasonable and fair to recover the portion of capital expenditure providing those benefits from those groups or individuals who will receive the benefits, e.g. through rates funding from existing dwellings in a development area, or from the district as a whole.

Transportation 24. The transportation network enables the movement of people, goods and services throughout the district. Therefore, the transportation network is available to all of the community and benefits the community as a whole.

25. Where demand for new transportation assets or additional capacity or improvements to the transportation network benefits general growth in the district, the Council considers it most reasonable and fair to recover a portion of transportation infrastructure costs through development contributions from all developments in the district. The portion of these costs attributed to growth is split proportionally between current development in the district and future demand created by growth.

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26. Where new or additional capacity or improvements are required to the transportation network as a direct result of growth in a local area or a specific development area, the Council considers it most reasonable and fair to recover the costs of providing this infrastructure through development contributions from those developments that receive a benefit. Where these works provide wider benefits, the Council considers it most reasonable and fair to recover the portion of capital expenditure providing the wider benefits from those groups or individuals who will receive the benefit, e.g. through rates funding or other sources.

Water supply 27. Predominantly, it is those individuals and properties connected to, or able to connect to the water supply network, that benefit from water supply, and not the community as a whole. There are no significant direct or indirect benefits identified for those residents who are unable to connect to the network.

28. Where new assets or additional capacity or improvements to the water supply benefits growth, the Council considers it most reasonable and fair to recover a portion of these costs through development contributions from developments that connect to the Council’s water network. The portion of these costs attributed to growth is split proportionally between the cost to meet growth demand, and the cost to provide additional benefits to existing users of the network such as improved network resilience.

Wastewater treatment 29. Predominantly, it is those individuals and properties connected to, or able to connect to the wastewater supply network, that benefit from the network and not the community as a whole. There are no significant direct or indirect benefits identified for those residents who are unable to connect to the wastewater network.

30. Where demand for new or additional capacity or improvements to the wastewater network is generated by and benefits growth across the network, the Council considers it most reasonable and fair to recover a portion of these costs through development contributions from developments that connect to the Council’s wastewater network. In such cases, the cost allocation to development contributions will be split proportionately between all developments that connect to the network. Because existing connections to the wastewater network receive no additional benefits from growth related expenditure on the network, there will be no allocation of costs to existing connections.

31. Where new or additional capacity or improvements are required to the wastewater network as a direct result of growth in a local area or a development area, the Council considers it most reasonable and fair to recover the costs of providing this infrastructure through development contributions from those developments that generate the need and receive a benefit from the infrastructure within that area.

Stormwater collection and management 32. Primarily, stormwater collection and management benefits those people and properties within the Council’s hydrological catchment areas.

33. Generally, properties with a large proportion of area covered in impervious materials such as buildings and concrete create more stormwater run-off than properties with large areas of uncovered ground or natural foliage. For this reason, the Council calculates development contributions in relation to the area covered by impervious materials within a property.

34. Where a new development will add to demand on existing or future stormwater infrastructure, the Council considers it reasonable and fair to recover these costs through development contributions.

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35. Where demand for new or additional capacity or improvement to the stormwater system is driven by general growth in a stormwater catchment, the Council considers it most reasonable and fair to recover a portion of these costs through development contributions from all developments within a stormwater catchment. In such cases, the cost allocation to development contributions will be split proportionately between all developments in the stormwater catchment. Because existing developments receive no additional benefits from growth related expenditure on the network, there will be no allocation of costs to existing connections.

Parks and open spaces 36. The Council’s parks and open spaces network is spread across the New Plymouth District. It is difficult to identify the direct beneficiaries of this diverse portfolio because access to most parks and open spaces is not limited or monitored.

37. The New Plymouth District Plan identifies preferred esplanade reserves and other open spaces for purchase during development of certain areas of the district. Where demand for new assets or additional capacity or improvements to the parks and open spaces network benefits general growth in the district, the Council considers it most reasonable and fair to recover a portion of costs to provide these facilities through development contributions. Because parks and open spaces facilities benefit the entire district, the portion of these costs attributed to growth is split proportionally between current demand in the district and future demand created by growth.

38. Where new or additional capacity or improvements are required to the parks and open spaces network as a direct result of growth in a local area or a specific development area, the Council considers it most reasonable and fair to recover the costs of providing this infrastructure through development contributions from those developments that receive a benefit. Where these works provide wider benefits, the Council considers it most reasonable and fair to recover the portion of capital expenditure providing the wider benefits from those groups or individuals who will receive the benefit, e.g. through rates funding or other sources.

Community infrastructure 39. Community infrastructure are assets that provide public amenity including, but not limited to, libraries, local community centres or halls, swimming pools and public toilets. These facilities provide benefit to the communities that they are intended to service.

40. Where a new development benefits from new assets or additional capacity or improvements to community infrastructure, the Council considers it most efficient and fair to recover these costs through development contributions.

41. Where new assets or additional capacity or improvements are required to community infrastructure as a direct result of growth in a local area or a specific development area, the Council considers it most reasonable and fair to recover the costs of providing this infrastructure through development contributions from those developments generating demand for the infrastructure. Where these works will provide wider benefit, the Council considers it most reasonable and fair to recover the portion of capital expenditure providing the wider benefit from those groups or individuals who will receive the benefit e.g. through rates funding or other sources.

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Period of benefits 42. To ensure that development contributions charges are applied in a manner consistent with the capacity life of the asset for which they are intended to be used, the Council assesses each item of growth-related capital expenditure to determine the period of time the asset will provide a benefit for growth.

43. Any development contribution charges applied are spread proportionately over the period of time the asset is determined to be of benefit. To ensure intergenerational equity, the Council uses a maximum period of benefit of 30 years.

Actions contributing to the need to undertake the activity 44. Development related growth pressures are a key driver of capital works. The Council seeks to fund the proportion of the capital works attributed to growth through development contributions. Requiring the development community to fund the growth portion of capital works ensures that those individuals and groups who create demand pay a proportionate amount of meeting that demand.

45. An assessment has been undertaken to determine how much renewal, service level and growth has driven the need to provide new assets or assets of increased capacity.

46. Costs are allocated proportionately according to who will benefit from the assets provided (including the community as a whole) and what is driving the need for those assets.

47. Development contributions can only be levied to recover the total cost of capital expenditure for new or additional assets or for increased capacity of assets to service growth. Total costs do not include operations and maintenance costs (operating expenditure).

Approach to funding 48. Allocating costs of capital works between various project drivers and recovering those costs accordingly improves equity and provides greater transparency and accountability, as does having a separate funding source (development contributions). The Council considers the benefit of using development contributions to fund the cost of providing additional community facilities to exceed the costs of assessing and determining development contributions charges to developers.

Intergenerational equity 49. To ensure those persons undertaking development pay a fair, equitable and proportionate amount of the total cost of capital expenditure necessary to service growth the following two factors have been incorporated into the development contributions methodology:

 Each asset undergoes a period of benefit assessment to determine the period the asset will provide for growth. Any development contributions will be charged proportionately over this time period.

 Finance costs (including interest on loans taken by the Council to provide community facilities) are included in the total cost of capital expenditure for each project and reflected in the contribution charge.

Overall impact assessment 50. The Council has considered the overall impact of liability and is satisfied with it, so accordingly has not modified the incidence of development contributions arrived at following consideration of the factors in section 101(3).

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Development agreements 51. In lieu of a development contribution, the Council and a developer may negotiate a voluntary development agreement, where the developer agrees to supply or exchange infrastructure, land or money to meet the additional demand for community facilities generated by their development.

52. Any development agreement between the Council and a developer must be consistent with the provisions and requirements for development agreements under sections 207A-F, LGA 2002.

53. If there is any conflict between the content of a development agreement and the application of this policy in relation to that agreement, the content of the development agreement will prevail.

Level of capital expenditure required for growth for 2021-2031 54. The total cost of capital expenditure (less subsidies) required for growth is $363million. Thirty-three per cent of this is to be recovered through development contributions with the remaining 67 per cent to be recovered through other funding sources.

55. Table 1 below shows the total cost of capital expenditure the Council expects to incur to meet growth- related increases in demand for community facilities over the life of the Long-Term Plan 2021-2031. The information is also grouped into activities and includes the amounts to be funded through development contributions and other funding sources as well as the reason for the capital expenditure.

Table 1 Total cost of growth related capital expenditure in the Long-Term Plan 2021-2031

Activity Total capital Reason for Total amount to Total amount to be expenditure (less capital be funded funded from other subsidies) $ expenditure through DCs $ sources $ Transportation 65,219,000 New assets and 9,438,000 55,781,000 capacity within network Parks and open 13,233,000 New assets and 5,769,000 7,465,000 spaces capacity within network Water supply 78,531,000 New assets and 42,382,000 36,149,000 capacity within network Wastewater 88,769,000 New assets and 38,903,000 49,866,000 capacity within network Stormwater 41,043,000 New assets and 10,420,000 30,623,000 capacity within network Community 65,595,000 New assets and 9,673,000 55,922,000 infrastructure service level improvements with growth as exacerbator Total 352,390,000 - 116,585,000 235,806,000

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56. Schedule 1 includes a detailed breakdown of the costs of each project and the proportions of the costs allocated to development contributions and other funding sources as well as the development contribution charge.

Calculating development contributions Geographic area 57. Developers are required to pay the catchment charges relevant to the location of a development:

 Network catchments: developments are charged for the networks that the development will connect to.

 Local area catchments: developments are charged according to the local area catchments that they fall within as well as the relevant network catchment charges.

 Development areas: Any development occurring in a specific development area will pay the development area development charges as well as the relevant network charges and local area catchment charges.

58. These development contribution charges are like layers. Using a geographic area approach to development contributions means that contributions are only charged on the community facilities that are available to a development, which balances practical and administrative efficiencies with considerations of fairness and equity.

59. Table 2 summarises the Council’s development contribution charges in relation to network, local area and specific development area catchments.

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Table 2 Development contribution charges for New Plymouth District

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60. Schedule 1 provides more detailed information on the development contribution charges for each network catchment, local area catchment and specific development area, including:

 Charges in relation to the estimated capital cost of each project.  The proportion of costs allocated to development contributions or to other funding sources.  The development contribution charge per Household Unit Equivalent (HUE) for each project.

Units of demand 61. The HUE has been established as the basic unit of demand, and is the equivalent of one average residential dwelling. Development contributions are calculated according to the number of HUEs in a development. One new residential dwelling, subdivision or building consent is generally considered as one HUE, while non-residential developments are proportions or multiples of that. The following values represent typical levels of demand for an average residential dwelling in the district.

Activity Units Demand per HUE Comments Roads Vehicle trips per day 10 Water supply Litres per household 720 323 litres per person per day at per day 2.4 people per household

Wastewater Litres per household 600 250 litres per person per day at per day 2.4 people per household 2 Stormwater Drainage Impervious area (m ) 400

62. Assessment of HUE for residential developments is generally based on the number of bedrooms (or equivalent rooms) in a proposed development as follows:  1 bedrooms – 0.5 HUE  2-4 bedrooms - 1 HUE  5+ bedrooms - > 1 HUE

63. For non-residential developments, development contributions for water supply, wastewater, stormwater collection and management, and roads can be converted to HUEs based on a combination of accepted industry standards and assessment of information provided by the developer on the demand they expect to generate.

64. Developments that do not generate any demand for infrastructure will not be charged a development contribution. Developments that only place low demand on infrastructure capacity will typically be assessed in percentages of HUEs, rather than whole HUEs.

Calculation of charges 65. The development contribution charge per unit of demand for each capital project is calculated using the following process: Total cost of capital expenditure (less subsidies including finance costs for period of benefit of project) x Percentage of capital expenditure allocated to growth ÷ Annualised HUE demand, or total HUE (for catchments and development areas) + GST = Development contribution per HUE

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Inflation 66. Development contribution charges will be increased annually under the provisions of section 106 (2C), LGA 2002 ensuring that the increase does not exceed the result of multiplying together:

 The rate of increase (if any), in the Producers Price Index Outputs for Construction provided by Statistics New Zealand since the development contribution was last set or increased; and

 The proportion of the total costs of capital expenditure to which the development contribution will be applied that does not relate to interest and other financing costs.

67. Inflation will also be applied year on year to development contributions charges between the time the original charges were quoted and when the development contribution is invoiced.

Maximum contributions for reserves 68. Section 203 of the LGA 2002 states that contributions for reserves must not exceed the greater of:

a) 7.5 per cent of the value of the additional allotments created by a subdivision; and

b) The value equivalent of 20 square metres of land for each additional household unit or accommodation unit created by the development.

69. The development contribution of a maximum of $3,665 for parks is less than the above values when assessed against the average land value of an urban housing lot as determined by government valuation. This value will be checked for each proposed development to ensure it does not exceed the statutory maximum. It is noted that the development contribution will be in addition to any financial contribution towards parks under the Financial Contributions Policy.

Capital or land based contribution 70. Under this Development Contributions Policy the contribution shall in every case be money, unless at the sole discretion of the Council, a piece of land offered by a developer would adequately suit the purposes for which the contribution is sought.

71. In such a case, a developer agreement can override this requirement and the terms of this agreement will prevail.

Significant assumptions related to development contributions 72. With regard to growth and demand for community facilities, the following assumptions inform development contribution calculations:

 The population of New Plymouth District is predicted to grow from an estimated 86,700 in 2021 to 93,800 by 2031, and to 104,900 by 2051.

 There is predicted to be an average of 424 new residential dwellings built per year, over the next 10 years. This equates to a 424 HUE demand for community facilities (including 20 per cent additional capacity as required by the NPSUD) each year.

 The rate of non-residential development is assumed to proportionately follow the rate of residential development. Non-residential development is predicted to average 235 HUE per year over the next 10 years.

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 For projects receiving external funding, the subsidies received will fund growth related capital expenditure alongside development contributions.

 The current level (quality) of service has been applied to new developments as the basis for calculating development contributions for this policy.

 Income generated from rates and other operating revenue will be sufficient to meet the increase in operating costs generated by the increasing level of capital expenditure into the future.

Payment of development contribution charges 73. With regard to subdivision consents, development contribution charges are to be paid prior to issuing a certificate under section 224(c) of the RMA 1991. With regard to land use consents, payment is to be made prior to the commencement of resource consent. With regard to building consents payment is to be made prior to the code of compliance certificate being issued under section 95 of the Building Act.

74. Because the sequence of development is not consistent, payment of development contributions will be required at the first available opportunity. Review will occur at each and every subsequent opportunity during development, and additional contributions will be required if the units of demand of the development exceed those previously assessed and paid for. For example, if the number of dwellings or HUEs increases during the life of the development proposal.

Reconsideration of development contributions Right to reconsideration 75. Any person required by the Council to make a development contribution may request the Council to reconsider the requirement if the person has grounds to believe that:

 The development contribution has been incorrectly calculated or assessed under the Council’s Development Contributions Policy; or

 The Council has applied its Development Contributions Policy incorrectly; or  The information used to assess the person’s development against the Development Contributions Policy is incorrect or incomplete, or the way the Council has recorded or used the information is incorrect or incomplete.

Lodging a request for reconsideration 76. A request for reconsideration must be made within 10 working days after the date on which the person lodging the request receives notice from the Council of the level of development contribution required.

77. Any request for reconsideration must be lodged by completing the Council’s ‘Request for Reconsideration of Development Contributions’ application form.

Reconsideration process 78. Upon receiving an application to reconsider a requirement for development contributions, the Council will undertake the following process:

Step 1: Receive the request for reconsideration

 Council officers will assess the request to ensure that it is made on one or more of the statutory grounds for reconsideration and that the application form has been completed in full.

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 Requests that are not made on one or more of the statutory grounds for reconsideration will be rejected.

 Incomplete application forms may be rejected.

Step 2: Assessing the request for reconsideration  Council officers will assess the request for reconsideration against the relevant provisions in the Council’s Development Contributions Policy.

 Council officers may require further information from the applicant to fully assess the request for reconsideration. In such cases, the Council will contact the applicant and provide details of the further information required.

Step 3: Outcome of assessment of request for reconsideration  The outcome of the assessment of a request for reconsideration will be one of the following: o Grant the request in full. o Grant the request in part. o Decline the request.  The applicant will be informed of the outcome and the reasons for the outcome in writing within 15 working days after the date the Council receives all the information required to assess the request for reconsideration.  Council officers will liaise with the applicant to arrange any repayment required to be paid to the applicant as a result of the reconsideration.

Remissions, postponement or refund of development contributions 79. The Council may allow remissions for particular community infrastructure works, such as those undertaken by schools, charitable organisations or trusts. Applications for remissions will be considered on a case-by-case basis.

80. Any request to postpone payment of development contributions may be considered through a development agreement.

81. Refund of money paid as a development contribution or a return of land set aside as a development contribution (except a development contribution required for a specified reserve purpose) will be made in accordance with the relevant provisions of the Local Government Act 2002:  The resource consent lapses or is surrendered.  The building consent lapses.  The development or building for which the consent was granted does not proceed.  The Council does not provide the reserve, network infrastructure or community infrastructure for which the contribution was required.

82. A refund of development contributions paid or a return of land set aside for a specified reserve purpose will be made in accordance with the relevant provisions of the Local Government Act 2002 where:

 Development contribution money is not applied to that purpose within 10 years of the Council receiving the money or other period specified in the policy; and  The Council does not use the land set aside for the specified purpose within 10 years of acquiring the land (or other period agreed by the Council and the person making the development contribution).

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Schedule 1

When are development contributions applied? 83. The Council may charge a development contribution as part of each of the following development processes:  Subdivision consent.  Building consent.  Connection to Council services.

84. The Council will endeavour to charge development contributions at the earliest possible opportunity during a development process.

Assessing requirement for development contributions 85. When deciding whether a development contribution will be required from a person(s) undertaking development, the Council will assess whether:

 The proposed development is a subdivision or other development that generates a demand for reserves, network infrastructure, or community infrastructure as defined in section 197 of the LGA, 2002;  The proposed development is one that, on its own or cumulatively with other developments, will require the Council to incur capital expenditure on new assets or assets of increased capacity (as required by section 197, 198 and 199 of the LGA 2002), and  A development contribution is required under this policy.

86. If the above assessment determines that a contribution is required, the development will be assessed according to the demand generated for each type of service, as measured in whole, or percentages of, HUE. The assessment will be undertaken using the methodology detailed in this policy.

87. Assessment of development contributions requirements will occur under this policy when granting a:  Resource consent for a development or subdivision within the New Plymouth District under the Resource Management Act 1991.  Building consent for building work in new Plymouth district, under the Building Act 2004.  Connection to network infrastructure (e.g. water network, wastewater network).

88. Homeowners carrying out renovations or extensions to their dwellings will not be subject to development contributions, unless the matters in statement 85 of this policy are triggered.

89. The Development Contributions Policy will not apply where a resource or building consent is required by the Council for development of community facilities. In such a case, applying the Development Contributions Policy would merely result in an internal transfer of budget from one account to another, rather than generate any additional funding.

Development contribution costs 90. This schedule includes the development contributions payable for each development catchment in New Plymouth District. As previously detailed, development contributions are charged in accordance with three geographical categorisations as follows:

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 Network catchments: developments are charged for the networks that they are connecting to.  Local area catchments: developments are charged for the local area catchments that they fall within.  Development areas: developments are charged for the areas that they are developing.

91. If a development is in a development area they will be liable for a development area contribution, and may be liable for a local area catchment contribution and a network contribution (if connecting). If a development is not occurring in a development area then they may be liable for a local area catchment contribution and a network contribution (if connecting).

92. The maps included in this schedule are indicative and should only be used as a guide. Each development will be assessed to confirm which network catchments, local area catchments and development area development contributions charges apply.

93. The development contribution charges included in this policy are excluding GST.

Network catchments 94. Any development that occurs within a network catchment will be subject to the relevant network charge if that network is available to the development.

95. The Council forecasts demand based on the location and availability of future growth, infill and greenfield areas. Estimates of the number of new developments that will occur in each network catchment over a 30 year period is assumed as follows:

Network Number of HUE (new developments) forecast to occur in a network catchment Transportation 18,511 Parks 18,511 Stormwater 18,511 Community infrastructure 18,511 Wastewater 17,747 Water – all networks 18,492 New Plymouth water 17,228 Inglewood water 455 Oakura water 566 Okato water 242 Waitara stormwater catchment 596

96. The estimated finance costs to provide the projects for each network catchment have been calculated based on the estimated timeframe of each project to provide for the forecast growth.

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Transportation, Parks, Stormwater and Community Infrastructure networks

Transportation network DC charges per HUE

Parks and open spaces Network DC charges per HUE

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Stormwater Network DC charges per HUE

Community Infrastructure Network DC charges per HUE

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Wastewater network

Wastewater Network DC charges per HUE

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Water networks

Water network: All networks DC charges per HUE

Water network: New Plymouth network DC charges per HUE

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Waitara catchment (stormwater)

DC charges per HUE

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Local area catchments 97. Any development that occurs in a local area catchment will pay the local area development contributions charges as well as the relevant network charges (if applicable). Only developments occurring within a particular local area catchment will be subject to the particular local area catchment charges.

98. Each local area catchment has specific growth projects, generated by development, and that will provide benefit for all developments within the area. As a result, within each local area catchment, development contributions will be recovered from all developments that occur.

99. The development contribution charges for each local area catchment are spread proportionately by the number of expected HUE developments within that area, including development areas, infill and greenfield availability.

100. The forecast demand for each local area is based on the location of future development areas, infill and greenfield availability within each local area catchment. Estimates of the number of new developments that will occur in each local area catchment is assumed as follows:

Local area catchment Number of HUE (new developments) forecast to occur in a local area catchment Waimea 725 Waitara 853

101. The estimated finance costs to provide the projects for each local area catchment have been calculated based on the estimated timeframe of each project to provide for the forecast growth in that catchment.

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Waimea Local area

DC charges per HUE

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Waitara Local area

DC charges per HUE

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Development areas 102. Any development occurring within a specific development area will be subject to the relevant development area charges for that area, as well as the relevant network charges and local area catchment charges (if applicable). Only developments occurring within a development area will be subject to the development area charges.

103. The development contribution charges for each development area have been spread proportionately by the number of expected HUE developments within that area.

104. The estimated finance costs to provide the projects for each development area have been calculated based on the estimated timeframe of all development within the area. This is to ensure equity in applying the finance costs across all developments within a given development area.

105. The following table details the development areas, their expected yields (number of dwellings) and the timeframe for all developments to occur:

Development area Yield (HUE) Years Area Q 1100 10 Upper Carrington 200 10 Junction 183 12 Patterson Road 135 11

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Area Q

DC charges per HUE

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Upper Carrington

DC charges per HUE

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Junction

DC charges per HUE

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Patterson Road

DC charges per HUE

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AMENDMENTS TO THE NGĀ WHARE ORA TAIAO O NGĀMOTU (NEW PLYMOUTH SUSTAINABLE HOMES VOLUNTARY TARGETED RATE SCHEME) POLICY

MATTER

1. The matter for consideration by the Council is to amend the Ngā Whare Ora Taiao o Ngāmotu (New Plymouth Sustainable Homes Voluntary Targeted Rate Scheme) Policy in order to extend the interest-free period, provide clarifications and to improve legal compliance.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report, the Council: a) Notes that the Ngā Whare Ora Taiao o Ngāmotu (New Plymouth Sustainable Homes Voluntary Targeted Rate Scheme) Policy was developed at pace during the Covid-19 lockdown, and Officers have reviewed the Policy after one year of adoption to ensure it is operating as intended. b) Adopts the amendments to the Ngā Whare Ora Taiao o Ngāmotu (New Plymouth Sustainable Homes Voluntary Targeted Rate Scheme) Policy (P20-002) as contained in Appendix 1 to provide:

i. The Council with the ability to set interest-free periods by resolution, including the ability to set interest-free periods for certain categories of improvements.

ii. Removal of the ability to issue nine-year loans, and that all future loans be issued for five years.

iii. All applications shall be subject to the Council being satisfied that the borrower can make repayments without suffering substantial hardship.

iv. A number of small amendments to provide greater clarification and removal of now redundant provisions. c) Resolves to extend the interest-free period for all applications made between 1 July 2021 to 30 June 2022.

COMPLIANCE Significance This matter is assessed as being of some importance.

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COMPLIANCE This report identifies and assesses the following reasonably practicable options for addressing the matter:

Options 1. Amend the Policy and Scheme.

2. Do not amend the Policy and Scheme, and instead accept the risks. The persons who are affected by or interested in this matter Affected persons are ratepayers who may join the Scheme, and businesses that have become (or could become) suppliers. Recommendation This report recommends option 1 for addressing the matter. Long-Term Plan / There will be minor budgetary implications that can be Annual Plan addressed within baseline budgets. Implications Significant Policy and Plan No Inconsistencies

EXECUTIVE SUMMARY

2. This report recommends the Council approve amendments to the Ngā Whare Ora Taiao o Ngāmotu (New Plymouth Sustainable Homes Voluntary Targeted Rate Scheme) Policy (the Policy). Officers have reviewed the Policy after one year due to the pace the Policy was developed during the Covid-19 lockdown.

3. These amendments enable the Council to extend the interest-free offer by resolution, and this report recommends such a resolution. Doing so provides greater economic support given the longer-than-expected time for the Voluntary Targeted Rate Scheme (the Scheme) to gain momentum. The amendments also propose to clarify a number of issues that have arisen in the first year of the Scheme and/or improve legal compliance.

BACKGROUND

4. During the Covid-19 lockdown period in March-April 2020, the Council developed the “Get Us Back On Our Feet” Plan (the GUBOOF) to provide economic and social support to the community.

5. Part of GUBOOF was the extension of the Council’s Scheme. While previously the scheme had been focused on insulation and home energy, the Policy extended the Scheme to cover a wide array of sustainable housing capital improvements and to lend a higher amount.

6. It has taken longer than initially expected for the Scheme to gain momentum due to the timeframes to on-board additional businesses and employ a

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Sustainable Homes Adviser. Further, the previous Scheme has always been most popular in the lead up to winter. In the past few months in particular, the Scheme has been successful in providing economic support to businesses and providing healthier, drier homes for the community. As of 15 June, 590 applications had been approved, totalling $3.7 million in loans approved. The following graph shows the number of approved applications as of the end of each month in 2020/21 as well as the total as of 15 June.

Total approved applications in 2020/21 600

500

400

300

200

100

0

7. Given the fast pace of developing the Policy during the Covid-19 lockdown, Officers have reviewed the Policy after one year of operation to ensure it is fit for purpose and operates as intended. While on the face of it this is a relatively straightforward Policy and Scheme, the reality is there are significant technical issues that need to be correct. Usually a Policy this complex would take a number of months to develop and test properly.

8. Auckland Council has been running a similar scheme for a number of years. A recent Commerce Commission investigation into the Auckland scheme’s compliance with the Credit Contracts and Consumer Finance Act 2003 has highlighted a number of issues with its scheme. Officers have considered this Council’s compliance with this Act, and the issues faced in Auckland, in this review.

9. Officers consider that there have been significant economic, social and environmental benefits of the Scheme to date. Taranaki District Health Board has held up the Policy and Scheme to the Ministry of Health and the health sector as an example of Public Health Unit officials working with Councils to achieve better outcomes for their community.

10. There are two significant changes recommended to the Policy, as well as some minor amendments.

Interest-free and loan period

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11. The first recommended change is to extend the interest-free period. The Policy as adopted provided an interest-free period for the first year for ratepayers taking out a loan over a five-year period (nine-year loans still had interest apply). This was part of the GUBOOF initiative to incentivise economic activity post-lockdown. From 1 July, if the Policy is left unchanged, property owners will pay an interest rate set at the Council’s average rate of borrowing (just under 3 per cent).

12. Officers recommend extending the interest-free period for the 2021/22 financial year, and to cover all applications, for two reasons:

a) First, given the longer than expected timeframe for the Scheme to gain momentum, extending the interest-free period enables more ratepayers to benefit from the interest-free arrangement. This helps to promote the Council’s Sustainable Lifestyle Capital vision by enabling households to become more sustainable and healthier. The extension is also expected to provide continued stimulus for local suppliers, some of whom have asked for an extension of the interest-free period to support their business as the interest-free offer has enabled them to make a more attractive offer to the market.

b) Second, one of the issues identified during Auckland Council’s review was the interest rate calculation for their scheme. Officers are currently reviewing the application of interest to ensure compliance with the Credit Contracts and Consumer Finance Act. Extending the interest-free period for another year would therefore minimise any potential financial risk to this Council whilst Officers complete this detailed and complex review.

13. Given these potential issues, Officers consider that the best approach is to amend the Policy to enable the Council to be able to resolve to create interest- free periods, and then to make such a resolution. This means future Councils also have the ability to respond to changing economic circumstance or other issues without having to amend the Policy each time. If no such resolution is in place then the Policy provides that the Scheme defaults to being charged at the Council’s average rate of borrowing.

14. Officers recommend that this interest-free period only apply to five-year loans and to outright remove the ability to offer nine-year loans. In the 2020/21 financial year the Council only provided interest-free for five years, with interest charged for nine year loans – and approximately 90 per cent of applications have been for a five-year loan (given the financial advantage of doing so). Only offering five-year loans moving forward means that loans ‘clear-off’ the Council’s books faster, and minimises risk and liability for the Council.

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Credit checks and substantial financial hardship checks

15. The current Policy provides that applicants must have a record of paying rates on time over the preceding three years and then requires a credit check be undertaken when a ratepayer has not been doing so. The recommended changes are to require the Council to be satisfied that the ratepayer will not suffer substantial hardship in repaying, and using information to support this.

16. The current approach has meant a number of ratepayers have been declined access to the Scheme as a result of missed payments that were accidental or minor in consequence (eg. were fixed after being notified by the Council of a missed payment). Such minor incidents should not cause a ratepayer to be denied access provided that they otherwise have a strong credit record. This aspect of the Policy is not working as intended.

17. Further, the Credit Contracts and Consumer Finance Act provides the Council has a legal responsibility to be satisfied that the borrower will make the payments without suffering substantial hardship. Only relying on the payment of a statutory tax (rates) is not always sufficient for these assessment as rate payments should be prioritised by ratepayers. The late, or non, payment of rates should be considered as supplementary information on the ability to pay, not the primary means for assessing it.

18. The amendments provide that the Council will utilise credit checks and, in some instances, ratepayers may need to provide other information to the Council as well so that officers are satisfied that the ratepayer will not suffer substantial hardship in repaying the loan. Late or non-payment of rates will only form part of this assessment and will not be the primary means of assessing eligibility. Operational procedures will help Officers assess this.

Clarifications

19. Officers have also recommended a range of smaller clarifications, particularly in relation to where property owners have raised questions with the Council over the past year.

Now redundant provisions

20. There are a small number of redundant provisions that can now be removed as they referred to the Scheme’s operation prior to 30 June 2021. Making these changes simplifies the Policy moving forward.

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21. For the avoidance of doubt, Officers do not recommend the continuation of the no administration fee period. The administration fee, set in the Schedule of Fees and Charges (adopted on the 19 May 2021 Council meeting) at $200, recovers the reasonable costs of Officers in processing the application. The administrative costs will increase with ensuring compliance with the Credit Contracts and Consumer Finance Act 2003 (including the cost of credit checks). The application fee can, however, be rolled into the loan. There are no known issues with the Credit Contracts and Consumer Finance Act with such a fee.

NEXT STEPS

22. Council has recently appointed a Sustainable Homes Adviser who provides Council home sustainability and health expertise. The Sustainable Homes Adviser is assessing the Scheme and Policy to ensure the categories of products are suitable, and may seek additions or removals, or other amendments to the Policy, in the future.

23. Officers are continuing to assess Council’s compliance with the Credit Contracts and Consumer Finance Act 2003 (and associated regulations), and are likely to implement procedural changes to ensure compliance. The Long-Term Plan 2021-2031 includes $61,000 for a new technology system to manage the Scheme across years 1 and 2 with the majority of spending in year 2 – however, this may need to be accelerated and/or increased and, if so, this can be funded through existing budgets.

24. Once a review is completed, Officers will provide an update to the Finance, Audit and Risk Committee, including whether there needs to be any further amendments to the Policy to ensure legislative compliance.

25. The ability to set interest-free periods would also enable the Council to consider, at the appropriate time, to provide interest-free loans for water conservation home improvements. Doing so would support the Council’s water conservation programme, and would probably best be timed to start with mock water meter billing (scheduled for 2023/24) and the first or second year of water meter billing (scheduled for 2024/25 and 2025/26).

SIGNIFICANCE AND ENGAGEMENT

26. In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance because it enables the Council to meet legislation obligations and has only minor financial implications.

27. No community engagement is proposed given the nature of the issues.

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OPTIONS

Option 1 Amend the Policy and Scheme

Financial and Resourcing Implications

28. Extending the interest-free period will have a financial impact. A $10,000 loan repaid over 5 years at a 3 per cent interest rate would usually have around $800 interest accruing over those 5 years. Assuming up to 500 applications next year, this could mean $480,000 in lost revenue over 5 years, or $96,000 per annum. However, the total number of applications is not within Council’s control.

Risk Analysis

29. This option improves the operation of the Scheme, and minimises the risk of non-compliance with the Credit Contracts and Consumer Finance Act 2003.

Promotion or Achievement of Community Outcomes

30. The Scheme continues to promote Partnerships, Community, Sustainability and Prosperity. Ensuring legal compliance promotes Delivery.

Statutory Responsibilities

31. This option promotes the Council’s compliance with the Credit Contracts and Consumer Finance Act 2003 (as modified by regulation 18 of the Credit Contracts and Consumer Finance Regulations 2004). The Scheme remains compliant with the Local Government (Rating) Act 2002.

Consistency with Policies and Plans

32. This option is consistent with policies and plans.

Participation by Māori

33. No participation by Māori has occurred on this issue as these amendments are not considered to have any particular implications for Māori or their relationship and connection to ancestral lands, taonga or wāhi tapu.

Community Views and Preferences

34. The Council engaged with the community when developing the GUBOOF in 2020. The Policy and Scheme were supported by 94 per cent of respondents, with a range of suggested additional types of improvements that could be funded. This was outlined in the 17 June 2020 Council meeting.

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Advantages and Disadvantages

35. This option enables more ratepayers to benefit from the interest-free period to obtain a more sustainable home, and thereby continue to also support businesses to install the relevant products. The option ensures that Council’s Policy and Scheme will comply with relevant statutory obligations where issues have been identified with Auckland Council’s scheme whilst also providing time for Officers to fully review the way NPDC’s Scheme operates.

Option 2 Do not amend the Policy and Scheme, and instead accept the risks

Financial and Resourcing Implications

36. While this option does not forego interest revenue, that revenue (either some or all) could become a potential liability for the Council depending on the findings of Council’s review of the Scheme.

Risk Analysis

37. This option is higher risk as it would mean the Policy and Scheme will remain unchanged, and the terms of new loans will accrue interest. The immediate change required that has been identified would not be implemented, and the de-risking approach of the interest-free period extension would not occur.

Promotion or Achievement of Community Outcomes

38. This option would not promote Delivery as it is not prudent to operate a scheme without the de-risking approach.

Statutory Responsibilities

39. This would be inconsistent with the Credit Contracts and Consumer Finance Act 2003 (as modified by regulation 18 of the Credit Contracts and Consumer Finance Regulations 2004).

Consistency with Policies and Plans

40. This option is consistent with policies and plans.

Participation by Māori

41. No participation by Māori has occurred on this issue as these amendments are not considered to have any particular implications for Māori or their relationship and connection to ancestral lands, taonga or wāhi tapu.

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Community Views and Preferences

42. The Council engaged with the community when developing the GUBOOF in 2020. The Policy and Scheme was supported by 94 per cent of respondents, with a range of suggested additional types of improvements that could be funded. This was outlined in the 17 June 2020 Council meeting.

Advantages and Disadvantages

43. This option does not provide an extension to the interest-free period, which benefits homeowners (and their tenants if any) and businesses. It also means that an opportunity to ensure Council complies with statutory obligations is missed.

Recommended Option This report recommends Option 1: Amend the Policy and Scheme for addressing the matter.

APPENDICES

Appendix 1 Amendments to the Ngā Whare Ora Taiao o Ngāmotu (New Plymouth Sustainable Homes Voluntary Targeted Rate Scheme) Policy (ECM8548658)

Report Details Prepared By: Greg Stephens (Senior Policy Adviser) Team: Corporate Planning and Policy Team Approved By: Joy Buckingham (Group Manager Corporate Services) Ward/Community: District wide Date: 16 June 2021 File Reference: ECM8548659

------End of Report ------

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THE NGĀ WHARE ORA TAIAO O NGĀMOTU (NEW PLYMOUTH SUSTAINABLE HOMES VOLUNTARY TARGETED RATE SCHEME) POLICY

Policy purpose

This policy provides parameters for the Council’s Ngā Whare Ora Taiao o Ngāmotu scheme. Ngā Whare Ora Taiao o Ngāmotu is a voluntary targeted rate scheme which provides support to households to undertake a wide range of sustainability improvements to their house and property, and to repay the costs through a voluntary targeted rate over a five or nine year period.

Policy statements

Who may apply?

1. Funding may be applied for a residential rating unit1 (dwelling), including a residential dwelling on farmland or small holding.2 Commercial/industrial properties are excluded from this Policy. The dwelling must not be a non- rateable property under the Local Government (Rating) Act 2002.

2. The owner3 must not be in rates arrears, and must not have a history of late or non-payment of rates over the past three years. Owners that do not meet this criteria may be approved following a credit check to the satisfaction of the Council. Council must be satisfied that the owner4 will make the payments (see clause 25) without suffering substantial financial hardship. The owner must agree to a credit check in order for Council to assess this, and provide any other relevant information (including evidence if required). Furthermore, the owner must not have rates arrears, and/or must not have a history of multiple late payments, or non-payment of rates, over the past three years, without reasonable justification, against any property owned directly or indirectly by the owner. Council officers may issue and follow operational procedures to assist in this assessment.

2.3. The owner is not eligible for funding if the dwelling has an existing voluntary targeted rate applying to it. For the avoidance of doubt, only one application may be received per dwelling.

3.4. The owner does not need to be the occupier of the dwelling.

1 Rating unit means a rating unit for the purposes of the Rating Valuations Act 1998 2 Rating definitions as per differential categories as set in the Revenue and Financing Policy. 3 Owner means the person (whether natural or non-natural) who, whether jointly or separately, is seized or possessed of, or entitled to, any estate or interest in land constituting a rating unit (Local Government (Rating) Act 2002) 4 Owner means the person (whether natural or non-natural) who, whether jointly or separately, is seized or possessed of, or entitled to, any estate or interest in land constituting a rating unit (Local Government (Rating) Act 2002)

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4.5. Rating unit comprising more than one separately used or inhabited part and where the rating unit is used for residential purposes: the owner may apply for only one funding loan unless Council agrees otherwise (considering the nature of the rating unit).

What can be applied for?

5.6. Owners can apply for a minimum of $1,000 up to a maximum of $10,000 (funding).

6.7. The funding can be used to undertake capital improvements to the dwelling and property that provide household sustainability improvements, including:

a. Home energy efficiency (including insulation, double glazing, draught sealing, and insulation of hot water cylinders and piping)

b. Water conservation (including rain water collection systems, significant leak repairs, water efficient toilets [four or more stars in the Water Efficiency Labelling Scheme], low pressure systems, low flow shower heads and flow restrictors, grey water systems, and composting toilets [outside of wastewater reticulated areas only])

c. Efficient inbuilt heating and hot water systems (including solar hot water system, heat pump water heating, wetback system, efficient electric hot water system, and EECA-approved heat pump, wood burner and pellet burner)

d. Ventilation systems (including extractor fan and full-house ventilation systems) and ground vapour barriers

e. Energy conservation and generation systems (including solar photovoltaic panels, micro-hydro systems and associated battery systems)

f. Lighting efficiency improvements (including LED lighting, solar tube lighting, and insulated sky lights)

g. Self-sustainability and food resilience measures (including green houses, edible garden and landscaping, raised bed systems, rainwater/greywater tanks, irrigation, and home orchards)

h. Electric vehicle charging infrastructure (including high voltage fast charger outlets in garages)

i. Transitioning the household to electric or clean energy systems (including replacement of gas appliances with electric appliances)

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j. Structural repairs to address weather-tightness issues (including re- roofing, re-cladding and re-application of external plaster cladding systems), and

k. Other household improvements may be approved by the Council from time to time where the Council is satisfied of the sustainability benefits of those improvements.

7.8. The funding may also be applied towards receiving expert advice on their home or property, such as from a Homefit assessor, builder or designer. The cost of which must be included within the initial application. For applications received before 30 June 2021 the Council will provide a 20 per cent subsidy of the fee.

8.9. The Council will determine appropriate suppliers to provide products that meet the above requirements.

9.10. The owner may apply for more than one type of capital improvement at one time, up to the total value of $10,000 (including GST).

10.11. The Council will provide funding to one supplier. Funding may be approved for two suppliers if the owner receives expert advice (and the Council may agree to an additional supplier in exceptional circumstances).

11.12. Insulation products must be listed as an accepted insulation product by the Energy Efficiency and Conservation Authority (EECA), and be installed in accordance with EECA standards. The owner shall not be granted funding for an EECA accepted clean heating product unless the dwelling is sufficiently insulated, or funding is also being sought for insulation.

12.13. Funding is provided directly to the supplier and not to the owner.

Who are the suppliers?

13.14. The Council will approve suppliers to provide the capital improvements and any expert advice.

14.15. Funding is not available for businesses that are not an approved supplier, or for ‘do-it-yourself’ owners.

15.16. Suppliers must enter into an agreement with the Council, and must meet the agreement’s terms and conditions of that agreement. Under the agreement the supplier must follow good business practices. A breach, by the supplier, of the terms and conditions of the agreement will result in cancellation of the agreement by the Council.

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16.17. The Council shall determine the process for registering businesses as suppliers. The Council will give additional weighting to businesses that have a staff member qualified as a Homefit assessor or under a similar scheme.

Partnership arrangements

17.18. The Chief Executive of the Council may enter into a partnership arrangement with an iwi, community group (with a legal entity), not-for-profit organisation or business where, in the Chief Executive’s opinion, doing so provides additional benefits to owners who apply through that partnership arrangement.

18.19. In these circumstances the Chief Executive may approve for the partner organisation to determine suppliers and products, however these must be sustainability improvements.

19.20. The Chief Executive shall apply such terms and conditions as the Chief Executive sees fit to the partnership arrangement, but the Council funding provided shall be consistent with clauses 1-6, and 21-32 of this Policy.

How will the loan be repaid?

20. Applications pre 30 June 2021: the owner may choose one of two repayment options:

. A nine year repayment term. Interest shall be charged 3.25 per cent per annum. The interest rate is fixed for the term of the loan.

. A five year repayment term. No interest shall be charged for the five years of this loan.

26. Applications from 1 July 2021: the owner may choose to either repay through a five year term or a nine year term. In both cases, interest shall be charged at the Council’s average rate of borrowing (stated in the relevant Annual Plan year). 21. The owner must repay over a five year term. [Transitional arrangement: applicants who applied on or before 30 June 2021 were able to select a nine year repayment period, and will continue to have that nine year period to repay.]

22. Interest shall be charged at Council’s average rate of borrowing, as stated in the relevant Annual Plan (or Schedule of Fees and Charges), unless Council resolves to offer an interest-free period. A resolution for an interest free period:

a. Must specify the time period that an interest-free period is available

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b. May be limited to certain improvement categories (as listed in clause 7), or on other criteria specified in the resolution (including meeting additional terms and conditions)

27.23. The interest rate is fixed for the term of the loan. The interest rate will not be lowered if the average rate of borrowing decreases, nor increased if the average rate of borrowing increases. The applicable interest rate is the interest rate as of the time of application.

28.24. The owner must agree to pay all rates (including volumetric water rates if applicable) by direct debit for the life of the loan.

29. Repayment of the loan will be through a targeted rate applied to the relevant separately used or inhabited part of the dwelling. That rate shall be set at:

. For those repaying over 9 years, calculated at 11.11 per cent of the total borrowing (including interest) owed or

. For those repaying over 5 years, calculated at 20 per cent of the total borrowing (including interest if applicable) owed. 25. Repayment of the loan will be through a targeted rate applied to the relevant separately used or inhabited part of the dwelling. For the avoidance of doubt, the Local Government (Rating) Act 2002 applies to the targeted rate, including late payment penalties and other compliance mechanisms. That rate shall be set for repayment over 5 years, calculated at 20 per cent of the total borrowing (including applicable interest) owed. [Transitional arrangement: applicants who applied on or before 30 June 2021 were able to select a nine year repayment period, and those applicant will continue to pay across the nine year period at 11.11 per cent of the total amount borrowed (including interest) per annum]

34.26. The loan repayment will commence as an additional rate on the next 1 July following acceptance, by the Council, of the application.

35.27. The owner may, at any time, repay the entire loan balance; however, partial lump sum payments cannot be accepted.

36.28. If the owner intends to sell or transfer the ownership of the dwelling during the period after this agreement has been entered into and while the Targeted Rate is still being assessed against the dwelling, the owner must, in writing, give notice of that intention to the Council, and advise the owner’s solicitor and the prospective purchaser about the Targeted Rate and terms and conditions of the rate.

37.29. Upon sale or transfer of ownership of the property, either:

a. the balanceoutstanding loan must be settled at the point of sale, or

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b. the Council may approve the transfer of debt to the new owner, in which case the terms and conditions of the loan must be, or must have been, listed on the sale and purchase agreement and signed by both parties.,

b.c. If Council is not notified, then the new owner becomes liable for the outstanding balance.

Other matters

38.30. The Council may charge an application fee to cover administrative costs in accordance with the Council’s schedule of fees and charges. The application fee may be added to the loan. No administration fee will be charged from adoption of this policy until 30 June 2021.

39.31. The owner is responsible for obtaining and paying all necessary resource consents, building consents, and meeting any other applicable legal requirements (additional costs).

40.32. The administration fee and additional costs may be added to the loan, so long as the total loan does not exceed $10,000.

Policy contact

The policy holder is the Policy Development Team in the Strategy Group.

Policy review

This policy shall next be reviewed within six years of adoption.

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4 PROPOSED FINANCIAL DELEGATIONS REGISTER AND PROCUREMENT APPROACH ADOPTION

MATTER

1. The matter for consideration by the Council is a proposed adoption of changes to financial delegations and procurement approaches that were implemented as a response to Covid-19 through the Get Us Back On Our Feet (GUBOOF) initiatives.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report Council:

a) Approves the proposed financial delegations and procurement approaches from 1 July 2021.

Delegation Pre-Recovery Period Recovery Plan Period Proposed (pre-Covid) (current) CEO & 1 Group Over $500,000 Over $500,000 No change Manager (GM) (Procurement policy (Procurement policy exemption * under $250,000 exemption1, over $500,000 CEO approval, exemption elected Council committee over $250,000 elected Council approval) committee approval) Procurement Open or closed Request for No change No change Approach Proposal Any two GMs $100,000 to $200,000 $300,000 to $500,000 No change

Procurement Open market request for Open or closed Request for Open or closed Request for Approach tenders or proposals Quotes (Dependent on Proposal complexity of project) 1 Group Manager $75,000 to $100,000 $200,00 to $300,000 No change (GM)

Procurement Open market request for Open or closed Request for Open or closed Request for Approach tenders or proposals Quotes (Dependent on Proposal complexity of project) Functional $50,000 to $75,000 $50,000 to $200,000 $100,000 to $200,000 Manager (FM)

Procurement Open or closed Request for Three written quotes or Revert to Pre-Covid approach Approach Quotes (Dependent on Open or closed Request for complexity of project) Quotes (Dependent on complexity of project) Operational $25,000 to $50,000 No change $50,000 to $100,000

1 Procurement Policy exemption is defined as such actions as sole sourcing. Note: All purchasing that is of greater value than $25,000 will be processed in the procurement software system.

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4 Manager (OM)

Procurement Three written quotes are No change Open or closed Request for Approach required Quotes (Dependent on complexity of project) Lead $10,000 to $25,000 No change $25,000 to $50,000

Procurement Direct purchase No change Direct purchase (Dependent on Approach complexity of project) Coordinator $0 to $10,000 No change No change

Procurement Direct purchase No change No change Approach

COMPLIANCE Significance This matter is assessed as being of some importance. This report identifies and assesses the following reasonably practicable options for addressing the matter:

1. Adopting a change to financial delegations and procurement approaches, including an increase in delegation for Leads and Operational Managers.

Options 2. Extending the current GUBOOF financial delegations and procurement approaches beyond 30 June 2021 until changed by Council resolution.

3. Not adopting the proposed changes and reverting to the financial delegations and procurement approaches that were in place before the current GUBOOF settings were adopted. The persons who are affected by or interested in this matter Affected persons are suppliers of goods and services to Council and the wider community. Recommendation This report recommends Option 1 for addressing the matter. Long-Term Plan / Annual Plan No Implications Significant Policy and Plan Yes Inconsistencies

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4 EXECUTIVE SUMMARY

2. This report proposes that as a result of the key learnings and outcomes of the Council’s Procurement Recovery Plan (Covid-19) (‘the Plan’), Council considers the adoption of the proposed financial delegations and procurement approaches from 1 July 2021.

3. The changes considered for permanent adoption are to increase the Council’s leadership team’s delegations. The changes proposed are two Group Managers are required to sign off procurements and contracts between $300,000 and $500,000, one Group Manager can authorise procurements and contracts up to $300,000, Functional Managers have the ability to authorise procurements and contracts up to $200,000, Operations Managers up to $100,000 and Leads up to $50,000.

4. A further change is identified to the procurement approach by allowing Officers to procure by requesting quotes for purchases of up to $200,000.

5. Officers consider that the benefits of adopting the proposed approaches outweigh the additional risks associated with increasing delegations, which can be managed by existing controls over expenditure at the Council.

6. Should the proposed approaches not be approved then Council will revert to pre-Covid approaches that had been causing administrative bottlenecks that slowed the delivery of projects of benefit to the community.

BACKGROUND

7. The original purpose of the plan was to aid the effectiveness of New Plymouth district’s economic recovery from the Covid-19 pandemic. The plan was intended to facilitate the planning and execution of procurement actions needed during the recovery phase of the pandemic.

8. Officers consider that the plan has proved to be a practical way of eliminating procurement process bottlenecks in order to support the community’s socio- economic objectives and recovery, while maintaining a focus on managing whole of life costs and providing good quality procurement outcomes.

9. Council implemented the Plan for a 12-month period from 1 July 2020, dependent on the recovery model applied to Taranaki. In accordance with the predicted timeframes, we are now entering a Post-Covid-19 era of phasing out accelerated procurement, reverting to less agile practice now that we once again have the luxury of time to plan fully and taking into consideration, lessons learned.

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4 10. The procurement approaches adopted by Council during the last 12 months have assisted recovery of the local economy. Officers found it especially advantageous to seek quotes for goods, works or services from local suppliers, as it allowed for speed of delivery with projects and supported economic recovery.

11. Wherever possible the Council will use an open competitive procurement process to give all suppliers the opportunity to compete. On occasion, the Council exercises the ability to run a closed tender. Commonly this is where there is sufficient rational for this approach i.e. shallow markets, one supplier, a genuine emergency, advertised but no response. There is no change in this approach for Council Officers.

12. In adopting the Annual Plan 2020/21, Council adopted a temporary amendment to the Council’s financial delegations. This empowered Officers to make higher level financial decisions and removed time constraints for decision making, simplifying the process and resulting in greater efficiency and flexibility in procurement processes. Officers consider that these benefits support this paper’s proposal to apply these changes indefinitely.

13. In accordance with the adopted initiatives, the Plan was designed to streamline and expedite processes, allowing contract extensions and other ‘to market’ time improvements, to benefit the community by assisting Council’s goods and services suppliers. These benefits have been realised.

14. The Plan has also increased the efficiency of processes through:

a) using simple and improved documentation to accelerate lean processes;

b) utilising the amendments to financial delegations;

c) utilising the amendments to procurement approach.

The Plan has improved processing efficiency

15. The Plan has been a collaborative piece of work across Council and has enabled Council procurement to be more effective and efficient.

16. Efficiencies have been achieved by increasing the financial delegations and removing delays for additional signoffs and financial approvals. As a result, projects have started and been completed earlier than anticipated. While there is a risk to increasing financial delegations, these are mitigated by the controls that Council has in place.

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4 17. A comparison between the 2019/20 financial year and the first seven months of 2020/21 (period based on the data available), shows an increased number of contracts processed during the adopted Plan (or shorter) period. For the pre- Plan period, 45 contracts of a value greater than $50,000 were awarded, compared to 53 during the Plan period to the end of February 2021.

18. The Plan removed previously identified procuring constraints (e.g. two-stage tendering). Subsequently, Officers have had the tools for increased speed in procurement processes and been able to deliver projects in a more efficient, agile and flexible manner. This finding is supported by the average number of processing days for internal approvals, for contracts valued between $100K and $300k, decreasing from 10 days to five days per contract, since the Plan was implemented.

19. However, one impact has been the shifting of the administrative bottleneck that previously sat at the Group Manager level, to the Functional Manager level given the Functional Manager’s increased financial delegation under the Plan. Therefore, it is recommended that to address this the Lead and Operational Manager financial delegation approval be increased.

The Plan has improved Council’s engagement with local providers

20. One key focus and aim of the Plan was to assist the local economy during the recovery phase of the pandemic. Internal tracking since Council implemented the Plan indicates it has succeeded in providing an injection to the local economy. To date, an extra $4 million has been injected into the local economy during the 2020/21 Plan period, compared to the equivalent 2019/20 period. A correlation exists between being able to access the local market only and not being required to tender everything to the open market. Officers anticipate that the adoption of proposed financial delegations and procurement approaches will result in continued support of the local economy.

NEXT STEPS

21. If approved by Council, Officers will update the Financial Delegations Register and procurement approaches accordingly from 1 July 2021.

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4 SIGNIFICANCE AND ENGAGEMENT

22. In accordance with Council's Significance and Engagement Policy, this matter has been assessed as being of some importance. Further streamlining procurement processes is likely to assist the Council in delivering its stated levels of service. The proposed changes are likely to benefit the local business community (as seen in the spread of local spending through the Plan). Procurement processes, and particularly a “spend local” approach have been the subject of a high level of community comment in the past. The community is interested in how Council procures goods and services to ensure value for money and support of local providers when possible.

OPTIONS

The three reasonably practicable options for addressing the matter are:

Option 1 Adopt the proposed financial delegations and procurement approaches, including an increase for Leads and Operational Managers, from 1 July 2021.

Option 2 Retain the current GUBOOF financial delegations and procurement approaches.

Option 3 Revert to the financial delegations and procurement approaches that were in place before the current GUBOOF settings were adopted.

The options are assessed together below.

Financial and Resourcing Implications

23. There are no direct financial or resourcing implications for any of the options. Should further efficiencies be realised, and more projects be delivered, then there may be a need for internal reallocation of resourcing to support the processing of contract payment claims.

Risk Analysis

24. Implementation of the proposed changes will need the appropriate support to maintain fair and transparent behaviours. Robust procurement processes with executive oversight and approval will continue. This will also ensure appropriate controls are in place to prevent or detect fraud.

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4 25. Increasing the delegations of some and making changes to approaches, inherently increases risk and could be identified as such for the community. However, regular purchasing checks, the implementation of the procurement and contracts system, and the project management system, along with continued reporting will provide adequate controls to manage the heightened risk.

26. It could be considered that the Chief Executive Officer’s visibility of contract spend could be impaired. However, Council continues to increase wider visibility to the organisation through project and procurement software programs.

27. To date there has been no recorded risk that has arisen for Council through the adoption of the Procurement Recovery Plan. Feedback from the affected parties also failed to record any potential risks.

Promotion or Achievement of Community Outcomes

28. Regardless of the option selected, Council will continue to support local suppliers. The level of that support is determined by processing volumes, which will in turn be determined by the option approved. Option 1 is intended to increase efficiency to aid our officers to deliver projects within allotted timeframes.

Statutory Responsibilities

29. None of the identified options will breach Council legal compliance or statutory obligations because Council follows good procurement practices and has controls around the exercise of delegations to act fairly and reasonably within the law.

Consistency with Policies and Plans

30. The Council’s Procurement Policy and Financial Delegations Register will be modified by 1 July 2021 in line with Council’s decision on this matter.

31. All the options are in line with and are consistent with the Council’s strategic focus of efficiency.

Participation by Māori

32. The Procurement Policy includes a section on Māori participation in procurement processes. This recognises a unique local iwi contribution and value-add to the community. None of the options alter this part of the policy.

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4 33. Following community engagement from the GUBOOF initiatives, approximately 100 survey respondents identified as Māori (12 per cent of responses). The results found that Māori favoured giving Taranaki contractors and suppliers preference, which was slightly more than other respondents (98.1 per cent to 97.6 per cent of other respondents).

Community Views and Preferences

34. Procurement processes are likely to be of interest to many in the community, particularly those that supply goods and services to the Council.

35. Of all the initiatives identified in the Plan, the highest level of support was given to buying local (98 per cent).

36. Community feedback from the GUBOOF engagement indicated that 87 per cent of responses would be willing to accept Council paying more for goods and services if that meant procuring from a local supplier rather than looking outside the district.

Advantages and Disadvantages

37. Officers consider that the administrative benefits of the proposed changes to delegations and procurement approaches outweigh the increased risks, which can be managed by existing procurement controls.

38. Advantages and improvements can be identified with the adoption of the proposed changes, including the removal of time constraints for decision making and greater speed, simplicity and flexibility in procurement processes.

39. The proposed approaches would foster efficient procurement, continued local supplier support and economic injection into the local economy.

40. An increased volume of contracts will directly correlate to improved procurement efficiency and an increase in project delivery, with Executive Leadership Team maintaining appropriate oversight as is the case now.

41. The Plan has seen an increase in collaboration between Council personnel, as well as between the Council and suppliers. Consequently, the proposed adoptions will continue to promote the advantages of procurement, due to the improved efficiencies, while also supporting ongoing compliance with policy and legislation.

Recommended Option This report recommends option 1 for addressing the matter.

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4 APPENDICES

Appendix 1 Procurement Recovery Plan (Covid-19) (ECM8278259)

Appendix 2 Temporary Changes to Procurement Policy (ECM8276503)

Report Details Prepared By: Richard Gater (Procurement Lead) Team: Procurement Approved By: Joy Buckingham (Group Manager Corporate Services) Ward/Community: District Wide Date: 19 May 2021 File Reference: ECM8567906

------End of Report ------

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PROCUREMENT RECOVERY PLAN (COVID-19) 4.1

Purpose

1. The purpose of this document is to outline the New Plymouth District Council’s procurement activity in response to the Covid-19 Pandemic

2. This document has been prepared in line with the Emergency Procurement section of the Council’s Procurement Policy (P19-001).

3. The purpose of the Proposed Procurement Recovery Plan (Covid-19) is to aid the effectiveness of Taranaki’s economic recovery from the Covid-19 pandemic. The plan is intended to facilitate the planning and execution of procurement actions needed during the recovery phase of the pandemic.

4. To aid the effectiveness of Taranaki’s economic recovery the plan aims to remove time constraints for decision making and result in greater speed, simplicity and flexibility in procurement processes. In addition, a ten per cent evaluation discount on price would favour a supplier who can demonstrate their impact on the local supply chain and employment of local resources.

5. To expedite Taranaki’s and New Plymouth District’s economic recovery, Council officers recommend that the existing two-stage tendering process be suspended. In addition, other methods of accelerating procurement (such as sole sourcing) should be considered.

Proposed Procurement Recovery Plan (Covid-19) methods

Suspension of two-stage tendering process

6. To expedite Taranaki’s and New Plymouth District’s economic recovery, the existing two-stage tendering process be suspended.

Multi-sourcing procurement strategies

7. To expedite the procurement process and reduce tender application costs for suppliers, Supplier Category Panels will be established. Category panels will be comprised of pre-approved suppliers of goods and/or services. Once established the Council can source goods and services directly from the panel without openly advertising.

8. Before inviting a supplier to be included in a panel, Council officers will

i) Consider the supplier’s

• Current financial status,

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4.1 • Available resources and

• Ability to complete work

ii) Review previous project evaluations that have taken place over the past 24 months and review existing contracts with the Council.

Apply Local Supply Chain Evaluation Discount

9. Where feasible, Council officers will seek quotes for goods, works or services from local suppliers. Local is defined as suppliers that use Taranaki’s supply chain and employ regional resources which impact on the New Plymouth District and Taranaki’s Regional economy.

10. Supplier evaluation criteria for projects will have a focus on the number of employees, coupled with how the supplier’s proposal identifies further employment opportunities. The opportunities include such initiatives as retraining resources from other sectors, utilising apprenticeships and/or employing staff with less experience, different ethnicities or lower socio- economic background.

11. A ten per cent evaluation discount on price will be given to a supplier who can demonstrate their impact on the local supply chain and employment of local resources.

12. To ensure that the Council is placing value on the benefits that a local supplier creates socially, economically, environmentally and culturally, the discount is applied for evaluations purposes only.

13. The complex projects that hold significant value will favour the local supply chain through non-price evaluation criteria.

14. Suppliers are still required to provide goods and services at an appropriate level of quality and experience. This requirement will not be compromised by the Local Supply Chain Discount.

Note: Using local evaluation criteria is out of scope for roading projects due to the need to comply with the New Zealand Transport Authority’s Procurement Policy.

Sole sourcing

15. To assist with boosting and stimulating the region's economy efficiently, Council will utilise sole sourcing for critical and urgent goods, works or services.

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Extending existing contracts 4.1

16. Critical contracts which are due to expire within the next 12 months may be extended outside of the term agreements. Short term extensions require approval of the Council’s Executive Leadership Team.

17. Short term extensions are limited to a maximum of 12 months.

Project Fluctuations

18. To protect against project price fluctuations the use of fixed-price contracts or target pricing approaches will be used along with retentions if appropriate.

Advertising

19. The Council will provide suppliers with advance notice of future projects to enable more visibility for planning and forecasting to enable maintenance of appropriate levels of resources to target future opportunities.

20. Advertising periods for live tenders will be reduced to 15 working days with prior advanced notice to the market having been implemented.

Tendering

21. Through the duration of the plan, there will be increased efficiency of tender processes through:

a) Using simple documentation i.e. existing light procurement plan

b) Using closed tender processes

c) Raising staff purchasing (P-card) limits

d) Pre-approving contracts (contract approved before procurement appointment)

e) Accelerating lean procurement process review

Reusing historic evaluation information

22. For identified projects, and where similar to those used in past evaluations, the Council will reuse work scopes to determine suitable suppliers. Evaluations from the last 24 months are deemed as suitable to award contracts. This approach will be most suitable for high volume renewals projects where the expertise needed is limited and work scopes are generic. A suppliers’ financial position and available resource will be considered.

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Amendments to the financial delegated procurement approach 4.1

23. For the duration of the Procurement Recovery Plan (Covid-19) the following approach will be taken to procurement.

Current Proposed Approach Critical/urgent essential Sole Sourcing, where contracts * feasible Over $500,000 Open or closed Request for Proposal process $100,000 to $500,000 Open or closed Request for Quotes (Dependent on the complexity of the project) $100,000 plus Open market request for tenders or proposals $25,000 to Three written quotes are $100,000 required $0 to $25,000 $0 to $100,000 Direct purchase

* Critical/urgent contracts are defined as projects that hold significant value for the community and the economic recovery of the District)

24. Where an Expression of Interest or Request for Information approach has been applied, a Sole Sourcing approach can be executed.

Financial delegations

25. To remove time constraints for decision making and result in greater speed, simplicity and flexibility in procurement processes, temporary amendments will be made to the Council’s Delegations Register to empower Council Management to make higher level financial decisions. These amendments will be by separate Council resolution.

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Timeframes 4.1

26. The active timeframe of the Proposed Procurement Recovery Plan (Covid-19) is estimated to be up to 12 months, dependant on the recovery model applied to Taranaki.

Level 4 Lockdown Level 1 Advance preparedness for Continue with accelerated procurement activities. Adoption of procurement policy, while reverting policy changes. Identification of to normal processes for non-essential critical/essential projects. projects.

Level 3 and 2 Post Covid-19 Levels

Procurement prepared for Phase-out accelerated

immediate response. Identify procurement, revert to best

projects for special practice, taking into consideration

procurement procedures to be lessons learned. shovel ready.

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Procurement Recovery Plan Process Plan & Implement Embed Review 4.1

Month May 20 June20 July 20 Feb 21 March 21 Apr 21

Stakeholder and Local Business Engagement Support Business Change & Risk Management Market Feedback

Adoption of recovery plan Work with Stakeholders to ensure compliance with procurement recovery plan Measure impact of Process recovery plan Identify Key Stakeholders Work with Stakeholders to implement the Social, Economic and Environmental Values

Business communications Deliver supporting documents for Council officer guidance Review of DA levels and Review overall Delegations effectiveness efficiency and Development of supporting documents Analysis of present and emerging risks recommendations

Identify projects for Support reduction in open tender advertisement period through Release of supplier Review long term Advertising advertisement to open market supplier communications, tender evaluation and contract survey on Council advertisement (first 12 months) negotiations procurement process opportunities

Local business engagement Ensure compliance of local supplier focus Support officers with supplier Review recovery Local on boarding and background plan impact and Define evaluation method Support officers with local evaluation methodologies checks plan for BAU

Develop category panels Panel contract development Review panel effectiveness and

Panels further opportunities Identify potential suppliers Complete panel agreements and define work distribution methods

Identify critical Support Council officers with historical evaluations review Support Council officers through Contracts contract management and future open contracts for extension Support Council officers with short term contract extensions and variations tenders of short term extensions

Review of tender template Delivery and support of lite procurement documents Plan for BAU Tendering A dopt local focus into criteria Ensure all documentation is complete to ensure fairness and transparency

Identify potential redeployment candidates Support business through procurement planning, sourcing and management cycle. Plan

Resource Maintain auditable records with administration of procurement document approvals, for Continue to implement Business Partnership tenders, contract compiling, contract payments and contract retentions BAU

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ADOPTION OF PROCUREMENT RECOVERY PLAN (COVID-19) 4.2

MATTER

1. The matter for consideration by the Council is a proposed Procurement Recovery Plan (Covid-19). The temporary plan will work as a recovery document that is underpinned by the current Procurement Policy. Community engagement on the plan is proposed.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report the Council: a) Adopt the Proposed Procurement Recovery Plan (Covid-19) for community engagement. b) Note that when the results of the community engagement are reported back, amendments to the financial delegations register will be sought for the period that the Procurement Recovery Plan (Covid- 19) is in existence.

COMPLIANCE Significance This matter is assessed as being of some importance. This report identifies and assesses the following reasonably practicable options for addressing the matter:

1. Undertake community engagement on the Proposed Procurement Recovery Plan (Covid-19).

Options 2. Adopt (or amend) the Proposed Procurement Recovery Plan (Covid-19) and amend the delegations register.

3. Not adopt the Procurement Recovery Plan (Covid-19) or amend the delegations register

The persons who are affected by or interested in this matter Affected persons are suppliers of goods and services to the New Plymouth District Council and the wider community. Recommendation This report recommends option 1 for addressing the matter. Long-Term Plan / Annual Plan No Implications Significant No. This report is consistent with current policy which Policy and Plan envisages adoption of a proposed recovery plan. Inconsistencies

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4.2 EXECUTIVE SUMMARY

2. This report proposes that the Council considers the adoption of a Proposed Procurement Recovery Plan (Covid-19) for community engagement. Consequential amendments would be required to the delegations register.

3. The Proposed Procurement Recovery Plan (Covid-19) is planned to work as a Covid-19 Pandemic recovery document that is underpinned by the existing procurement policy to aid the effectiveness of Taranaki’s economic recovery.

4. The proposed plan would remove time constraints for decision making and result in greater speed, simplicity and flexibility in procurement processes. In addition, a ten per cent evaluation discount on price would favour a supplier who can demonstrate their impact on the local supply chain and employment of local resources.

BACKGROUND

Impacts of Covid-19

5. The Covid-19 pandemic has created unprecedented economic and social circumstances. The impact will not be even across the board with some sectors (such as tourism and retail) impacted more than others. The economic recovery will take several years. The community’s well-being is therefore being tested.

6. In response to the impacts of Covid-19, including a forecasted decline in GDP and rise in unemployment the Council is developing a “Get us Back On Our Feet” plan. The plan provides a range of options to help the district and its residents. The short term response is largely through the period of Annual Plan 2020/21. The medium term response and Recovery Planning will inform development of the Long-Term Plan 2021-2031.

7. The Get Us Back On Our Feet Plan comprises a number of proposals. Proposals are based on current understanding of the social and economic impacts of Covid-19. It is acknowledged that many of these impacts and their outcomes are unknown and the Council and community are in one of the most dynamic planning phases seen in recent history.

8. One of the proposals being presented to Council relates to implementing a Procurement Recovery Plan. The Council’s current Procurement Policy references the establishment of a recovery plan to authorise necessary procurement activity during, and immediately after, genuine emergencies. The content of the proposed recovery plan is designed to expedite process, contract extensions and other ‘to market’ time improvements to benefit the community through assisting the Council’s goods and services suppliers.

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9. New Plymouth District Council adopted a Procurement Policy in 2019. The 4.2 purpose of the policy is to provide guidance to suppliers and staff of New Plymouth District Council to achieve its long-term plan outcomes and vision for the future. The policy provides clear intentions to suppliers, contractors and the community on the key areas the Council will consider throughout the procurement process.

10. The existing procurement policy and strategy of the long term, two-stage tendering process is considered inappropriate at present and would impact on the economic recovery of Taranaki. The current policy may prevent officers making balanced decisions without delay.

The Proposed Procurement Recovery Plan (Covid-19) Aims to Aid Taranaki’s Economic Recovery

11. The purpose of the Proposed Procurement Recovery Plan (Covid-19) is to aid the effectiveness of Taranaki’s economic recovery from the Covid-19 pandemic. The plan is intended to facilitate the planning and execution of procurement actions needed during the recovery phase of the pandemic.

12. Council officers recommend the proposed plan as a practical way to remove procurement process blockages in order to support the community’s socio- economic objectives. In addition to supporting small and medium sized businesses the proposals also enable the creation of new employment opportunities. The proposed plan will reduce timeframes, while maintaining the integrity of the whole of life costs and good quality procurement outcomes.

13. To expedite Taranaki’s and New Plymouth District’s economic recovery, Council officers recommend that the existing two-stage tendering process be suspended. In addition, other methods of accelerating procurement (such as sole sourcing) should be considered.

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Timeframes 4.2

14. The active timeframe of the Proposed Procurement Recovery Plan (Covid-19) is estimated to be up to 12 months, dependant on the recovery model applied to Taranaki.

Level 4 Lockdown Level 1 Advance preparedness for Continue with accelerated procurement activities. Adoption of procurement policy, while reverting policy changes. Identification of to normal processes for non-essential critical/essential projects. projects.

Level 3 and 2 Post Covid-19 Levels

Procurement prepared for Phase-out accelerated

immediate response. Identify procurement, revert to best projects for special practice, taking into consideration

procurement procedures to be lessons learned. shovel ready.

Proposed Procurement Recovery Plan (Covid-19) inclusions

Multi-sourcing procurement strategies

15. The proposed plan enables Supplier Category Panels to be established with a flexible approach. Category panels are comprised of pre-approved suppliers of goods and/or services. Once established the Council can source goods and services directly from the panel without openly advertising. This expedites the procurement process and reduces tender application costs for suppliers.

16. In order to establish suitable Supplier Category Panels, Council officers will review previous project evaluations that have taken place over the past 24 months and review existing contracts with the Council. Officers will consider each supplier’s current financial status, available resources and ability to complete work before inviting a supplier to join a panel.

17. Category Panels allow goods, works and services to be evenly distributed in several identified ways e.g. taking it in turns, or operating a lowest price conforming evaluation to maintain market competition. Panels reduce the risk of monopolies and achieves an overall increase in employment. This shares the workload and utilises the full potential of Council’s cash flow.

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Apply Local Supply Chain Evaluation Discount 4.2

18. To assist in recovery of the local economy, and where feasible, Council officers consider it advantageous to seek quotes for goods, works or services from local suppliers. Local is defined as suppliers that use Taranaki’s supply chain and employ regional resources which impact on the New Plymouth District and Taranaki’s Regional economy.

19. In particular, supplier evaluation criteria for projects will have a focus on the number of employees, coupled with how the supplier’s proposal identifies further employment opportunities. The opportunities include such initiatives as retraining resources from other sectors, utilising apprenticeships and/or employing staff with less experience, different ethnicities or lower socio- economic background.

20. The Proposed Procurement Recovery Plan (Covid-19) would result in a ten per cent evaluation discount on price to favour a supplier who can demonstrate their impact on the local supply chain and employment of local resources. This is aimed at projects that can be mobilised quickly. Adopting this initiative as part of the evaluation criteria acknowledges the “Get us Back On Our Feet” Plan, as it provides an opportunity to directly support and encourage local suppliers through a non-monetary mechanism.

21. The discount is applied for evaluations purposes only. This will ensure that the Council is placing value on the benefits that a local supplier creates socially, economically, environmentally and culturally.

22. The complex projects that hold significant value will favour the local supply chain through non-price evaluation criteria.

23. The Council will still require suppliers to provide goods and services at an appropriate level of quality and experience. This requirement will not be compromised by the Local Supply Chain Discount.

24. Using local evaluation criteria is out of scope for roading projects due to the need to comply with the New Zealand Transport Authority’s Procurement Policy.

Amendments to the financial delegations register

25. Council officers recommend that a temporary amendment be made to the Council’s Delegation Register once the Proposed recovery plan has been adopted. This will empower Council Management to make higher level financial decisions and will remove time constraints for decision making and result in greater speed, simplicity and flexibility in procurement processes. It is estimated the efficiency in processes proposed could be in excess of a 20 working days.

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26. It is recommended that a temporary amendment be made to the hierarchy in 4.2 the delegations register to empower Council officers to make financial decisions at a higher level. This is particularly relevant to the current sole sourcing approval requirements. Noting that this risk is mitigated by a procurement monthly report showing what has been approved under these new delegations to the Executive Leadership Team.

27. Strategic high value or high importance projects will still require Elected Members approval before activation.

28. The proposed delegation changes are listed below:

Current Proposed Delegation Over $500,000 Over $500,000 CEO & Group Manager (Procurement policy (Procurement policy (GM) approval exemption * under exemption * over $250,000 CEO approval, $500,000 elected Council exemption over $250,000 committee approval) elected Council committee approval)

$100,000 to $500,000 $300,000 to $500,000 Any 2 GM approval $75,000 to $100,000 $200,000 to $300,000 GM approval $50,000 to $75,000 $50,000 to $200,000 Functional Manager (FM) approval $25,000 to $50,000 $25,000 to $50,000 Operational Manager (OM) approval $10,000 to $25,000 Lead approval

* Procurement Policy exemption is defined as such actions as sole sourcing.

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Amendments to the financial delegated procurement approach 4.2

29. The Procurement Recovery Plan (Covid-19) proposes a change to the delegated procurement approach. This combined delegation change will gain speed, simplicity, and flexibility to be able to engage the market most efficiently.

Current Proposed Approach Critical/urgent essential Sole Sourcing, where contracts * feasible Over $500,000 Open or closed Request for Proposal process $100,000 to $500,000 Open or closed Request for Quotes (Dependent on the complexity of the project) $100,000 plus Open market request for tenders or proposals $25,000 to Three written quotes are $100,000 required $0 to $25,000 $0 to $100,000 Direct purchase

* Critical/urgent contracts are defined as projects that hold significant value for the community and the economic recovery of the District)

30. Where an Expression of Interest or Request for Information approach has been applied, a Sole Sourcing approach can be executed. Officers will prepare further guidance on identifying and managing risks in all these areas.

Sole sourcing

31. Council has many existing successful agreements and strong relationships with small to medium-sized enterprises and large local suppliers. For critical and urgent goods, works or services, a direct appointment provides the most efficient process to quickly engage with the market and improve local cash flow. Critical or urgent contracts are defined as projects that hold significant value for the community and the economic recovery of the district. Sole sourcing can also have recognised benefits of saving time, as well as saving on internal and external resource costs. This is essential to boosting and stimulating the region's economy, as this process is not burdened by a drawn-out procurement process or pro-longed lead times. Sole sourcing in this manner is restricted by the current procurement policy.

32. Directly appointing suppliers to category panels will be essential for any Central Government stimulus funding (within any rules for that funding). This will ensure the speedy mobilisation of suppliers and employment, for the potential high volume renewals work. This allows officers flexibility in their response to projects that directly impact on the regions recovery.

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4.2 Extending existing contracts

33. Council officers recommend that critical contracts which are due to expire within the next 12 months are able to be extended outside of the term agreements. The Procurement Team will highlight contracts the Covid-19 pandemic has impacted and/or will further impact on procurement planning and seek for an extension from the Executive Leadership Team.

34. Applying short term agreements outside of current contract clauses will enable time to adequately consider the post Covid-19 pandemic situation before entering into new contracts. Contracts that are extended must be within the financial agreements based on unit prices of existing contracts. These short term extensions are limited to a maximum of 12 months.

35. Utilising contract scope variations will enable flexibility and the ability to mobilise suppliers efficiently. Using existing contracts reduces risks, as the approved suppliers have already successfully passed through the procurement evaluation process and Council has agreed preferred rates. This is particularly advantageous for the Crown Infrastructure works being identified for Central Government funding. Forecasted contract value will be amended and reapproved by the appropriate delegated authority in accordance with the added contract term.

Project Fluctuations

36. To protect against project price fluctuations, fixed-price contracts or target pricing approaches are used. In addition, a competitive procurement approach is used to achieve market rates where appropriate.

37. The use of retentions in contracts also ensures defects are remediated.

Advertising

38. Council officers recommend that the Council give advance notice of future projects to suppliers. This will enable suppliers have more visibility for planning, forecasting and have confidence in maintaining the appropriate levels of resources to target future opportunities.

39. The Proposed Procurement Recovery Plan (Covid-19) also includes a reduction in advertising periods for live tenders. Currently the Ministry of Business, Innovation and Employment recommend an advertising period of 25 working days, this will be reduced to 15 working days with prior advanced notice to the market having been implemented.

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Tendering 4.2

40. The Proposed Procurement Recovery Plan (Covid-19) is designed to increase the efficiency of tender processes through:

a) Using simple documentation i.e. existing light procurement plan

b) Using closed tender processes

c) Reusing historic project scopes

41. Other opportunities to quickly engage the market for goods, works and services include:

a) Raising staff purchasing (P-card) limits (currently $1,000 per monthly)

b) Pre-approving contracts (contract approved before procurement appointment)

c) Accelerating lean procurement process review

Reusing historic evaluation information

42. For identified projects, where similar work scopes were used in past evaluations, these will be reused to determine suitable suppliers. It is fair to assume the Covid-19 pandemic will not have impacted supplier methodologies and experience. Evaluations from the last 24 months are deemed as suitable to award contracts. In particular, this is a suitable approach for high volume renewals projects where the expertise needed is limited and work scopes are generic. However, it is recommended that the suppliers’ financial position and available resource be considered.

NEXT STEPS

43. This report recommends community engagement prior to final adoption of the Proposed Procurement Recovery Plan (Covid-19). Consideration of community feedback would be undertaken prior to adoption of a final plan at the end of June (when the Proposed Annual Plan 2020/21 is adopted). The changes will take immediate effect on adoption of the Procurement Recovery Plan (Covid- 19) by the Council. Council officers will continue to track the effect of the plan by monitoring efficiency of the processes and the wider Covid-19 Recovery Plan. This report proposes the term of the Procurement Recovery Plan (Covid- 19) being 12 months from adoption. Council Officer’s will report back if it is deemed practicable to revoke the Procurement Recovery Plan (Covid-19) or extend its duration of operation.

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SIGNIFICANCE AND ENGAGEMENT 4.2

44. In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance because of the impact on commercial ratepayers and the financial difficulties being experienced by businesses and individuals across the district. The community have previously expressed views on the Council’s procurement practices and Council officers advise that community engagement on the Proposed Plan is possible.

OPTIONS

45. The three reasonably practicable options are:

a) Undertake community engagement on the Proposed Procurement Recovery Plan (Covid-19).

b) Adopt (or amend) the Proposed Procurement Recovery Plan (Covid-19) and amend the delegations register without engagement.

c) Not adopt the Proposed Procurement Recovery Plan (Covid-19) or amend the delegations register

The options are assessed together below.

Financial and Resourcing Implications

46. Implementing the Proposed Procurement Recovery Plan (Covid-19) will need the appropriate support to maintain fair and transparent behaviours. Robust procurement processes with executive oversight and approval will continue as per the financial delegations. This will also ensure appropriate measures are in place to prevent against such actions as fraud.

47. Increased support will be needed to deliver contract payment claims promptly and manage retentions on contracts. It is proposed that the employment of a Procurement Business Partner which is underway continues and internal resources are redeployed to provide support if required.

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Risk Analysis 4.2

48. The Ministry of Business, Innovations, and Employment have advised that accelerated procurement in the national alert level 3 and 4 is desirable. This is not compliant with the Government Rules of Sourcing. In the absence of guidance around procurement in the national alert levels 1 and 2, it is possible that the Proposed Procurement Recovery Plan (Covid-19) will be inconsistent with the Government Rules of Sourcing. However, given the anticipated expectation of a long term recovery period for the community, it is recommended that the Council acknowledge the inconsistency and adopt the Proposed Procurement Recovery Plan Covid-19 for 12 months to allow efficiency and provide the local economy the best chance of recovery in the short-medium term.

49. Undertaking community engagement will delay implementation of the plan for approximately six weeks and may therefore have impacts on procurement processes during that time.

Promotion or Achievement of Community Outcomes

50. Adoption of the Proposed Procurement Recovery Plan (Covid-19) supports all of the Community Outcomes by supporting the Council’s suppliers and ensuring that the Council retains access to goods and services to provide its activities.

Statutory Responsibilities

51. The Council’s purchasing activities must be in accordance with its legal responsibilities. Fundamentally the Council’s public law obligation is always to act fairy and reasonably, and in keeping with the law. This imposes a higher standard of conduct than that which may apply in the private sector.

52. The proposed recovery plan meets the statutory obligations.

Consistency with Policies and Plans

53. Adoption of the Proposed Procurement Recovery Plan (Covid-19) in response to the Covid-19 pandemic is consistent with the Council’s Procurement Policy.

Participation by Māori

54. The Procurement Policy includes a section on Iwi Māori participation in procurement processes. This recognises a unique local iwi Māori contribution and value-add to the community. The Proposed Procurement Recovery Plan (Covid-19) does not alter this part of the policy

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Community Views and Preferences 4.2

55. Procurement processes are likely to be of interest to many in the community, particularly those that supply goods and services to the Council.

56. The Covid-19 pandemic has created unprecedented economic and social circumstances. While the effects of the pandemic are not yet well understood, the economic recovery may take several years. The financial difficulties being experienced by businesses and individuals have been expressed in the media and directly to the Council.

Recommended Option This report recommends Option 1 – Undertake community engagement on the Proposed Procurement Recovery Plan (Covid-19).

APPENDICES

Appendix 1 Proposed Procurement Recovery Plan (Covid-19) (ECM 8278259)

Appendix 2 Procurement Recovery Plan Supplier Analysis

Report Details Prepared By: Richard Gater (Procurement Lead) Team: Procurement Approved By: Joy Buckingham (Chief Financial Officer) Ward/Community: District Wide Date: 30 April 2020 File Reference: ECM8276503

------End of Report ------

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4.2 Procurement Recovery Plan Supplier Analysis Local Suppliers

Local is defined as suppliers that use Taranaki’s supply chain and employ regional resources which impact on the New Plymouth District and Taranaki’s regional economy. This includes purchasing goods, works or services from a business or business branch in the Taranaki area that is operated by a member of the community who has decision making control over local operations.

These businesses are managed by people who live and work in our communities; raising their families and investing in our communities’ futures. They support our people, schools, organisations, and increase our quality of life; thus improving the health of our communities overall.

Applying 10 per cent on price evaluation

Applying 10 per cent discount onto the evaluated pricing to benefit the local conforming suppliers will focus on the areas where quotes are requested i.e. projects in-between $100,000.00 and $500,000.00 as per the recommendation in the procurement recovery plan. An example would be as follows –

Example Project – Pukekura Car Park Supplier Local Price Project 10% local evaluation Difference Conforming reduction against lowest price Joe Blogs Ltd N $151,000.00 Y N/A NP Industries Y $159,000.00 Y $143,000.00 Stratford Civil Y $156,000.00 N N/A Awarded NP industries Price $159,000.00 +5%

From our definition of local, an analysis of recent projects and tender evaluations has shown there is no potential financial impact from implementing a 10 per cent evaluation reduction on projects valued in-between $100,000.00 to $200,000.00.

No. of projects Locally Tender Local non-local tendered analysed awarded submissions submissions average price difference 18 96% 57 45 + 12%

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4.2

Although there is a significant local advantage for these projects, there is an estimated increase in competition from outside of the Taranaki region, as New Zealand businesses look to get back on their feet. By allowing a 10 per cent local reduction for evaluation purposes only, the evidence suggests there is no potential budget impacts on the 38 capex projects that could be procured through a request for quotes, but adds further security to the use of the Taranaki local supplier market. Consequently, projects analysed in the $200,000.00 to $500,000.00 bracket identified an increase in proposals from outside of the Taranaki Region. No. of projects Locally Tender Local non-local tendered analysed awarded submissions submissions average price difference 15 67% 49 30 + 15%

If the 10 per cent evaluation price reduction was applied to these project, then this would have increased the local awarded contracts to 80 per cent, with an average cost increase of 7 per cent. However, the overall analysis shows an average project cost increase of 15 per cent if contracts are awarded to suppliers outside of Taranaki. Again, the evidence suggest no significant budget impacts to applying a 10 per cent evaluation reduction to local suppliers.

350 Extraordinary Council agenda (29 June 2021) - VT Funding

VENTURE TARANAKI 2021/22 TRANSITIONAL FUNDING REQUEST 5

MATTER

1. The matter for consideration by Council is one-off additional funding for Venture Taranaki to continue with Covid-19 recovery, Māori partnerships and regional strategy and sectors work in 2021/22 while the shareholder review is completed and considered.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report: a) That $190,000 transitional funding be provided to Venture Taranaki – Te Puna Umanga in 2021/22 for regional strategy and sectors and Māori partnerships work. b) That this funding is contingent on the current regional strategy and sectors and Māori partnership roles being retained.

COMPLIANCE Significance This matter is assessed as being of some importance This report identifies and assesses the following reasonably practicable options for addressing the matter:

1. Approve $300,000 additional funding for Venture Taranaki.

Options 2. Approve $190,000 additional funding for Venture Taranaki.

3. Do not approve any additional funding for Venture Taranaki.

The persons who are affected by or interested in this matter Affected persons are the Venture Taranaki Board and Staff and the wider community. This report recommends option two for addressing the Recommendation matter. Long-Term Plan / Annual Plan No Implications

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COMPLIANCE Significant 5 Policy and Plan No Inconsistencies

EXECUTIVE SUMMARY

4. We recommend that Council approves an additional $190,000 to Venture Taranaki in the 2021/22 year to continue with Covid-19 recovery, Māori partnerships and regional strategy work. This recognises that a shareholder review is currently underway, external funding has been greatly reduced and the importance of continuing with this work while the review is completed and considered.

BACKGROUND

5. Venture Taranaki (VT) has been funded by the four Taranaki councils and central Government (through the Ministry of Business, Innovation and Employment (MBIE)) for the last three years to undertake regional strategy work – including Tapuae Roa and Taranaki 2050 development, coordination and implementation. This funding ends on 30 June 2021.

6. NPDC also provided the Tapuae Roa budget to VT in 2020/21 ($364,854) to assist with programmes to implement regional strategy work – such as Power- Up and Branching Out. This funding ($376,215 in 2021/22) has been approved to be used in a more flexible manner to continue with regional strategy staffing and programmes.

7. VT also undertook work in the Māori partnerships area through an operating surplus, over the past year. VT has stated that there is no current funding to continue with this work.

8. A shareholder review of VT is currently underway. This review considers the future role of VT in a post-Covid environment, including in regional strategy implementation and Māori partnerships. It is expected that this review will be considered by Council and form the basis of the 2021 Statement of Expectations for VT and its 2022/23 Statement of Intent.

9. VT has requested an additional $300,000 transitional funding for 2021/22 while the review is being completed to continue with regional strategy and sectors, recovery and Māori partnerships work. This funding would enable staffing levels to be maintained in these areas and provide some additional operational funding.

10. MBIE has approved $190,000 funding to VT for Taranaki 2050 and Tapuae Roa work, in particular for the following:

352 Extraordinary Council agenda (29 June 2021) - VT Funding

a) Development of an integrated regional planning framework and combined action plan (Taranaki 2050, Tapuae Roa and Taranaki Recovery Plan); 5

b) implementation of regional strategy actions through support, leadership, coordination and monitoring;

c) communications of the programme; and

d) secretariat support to Ngā Kaiwhakatere o Taranaki.

11. Shareholder expectations of the VT Board are that all possible measures are undertaken to prioritise talent and skills retention, rather than programmes during the review period. It is critical to be able to be agile post-review and that the intellectual property, people and expertise to operate in the future are not lost.

12. As such, it is recommended that $190,000 is approved out of the $300,000 request and that existing operational funding and the 2021/22 Tapuae Roa funding be used to meet the priorities of the shareholder as per the draft VT Statement of Intent 2021/22. This includes an expectation that existing staff are retained in these areas.

NEXT STEPS

13. If additional funding was approved (options 1 or 2), it is recommended that a condition is attached that ensures regional strategy and sectors and Māori partnerships staff are retained. This would enable work to continue in these areas and also opportunities relating to central Government funding to be maximised. This includes the recently announced $200 million funding to be administered by Kānoa – Regional Economic Development and Investment Unit.

14. The VT review will be completed in time to be considered by the Council and feed into the development of the 2021 Statement of Expectations. This would outline what the shareholder (Council) priorities are for VT to focus on in the coming year (and beyond) as business as usual and VT would respond to that through its draft Statement of Intent due by 1 March 2022.

15. Council would also consider the ongoing use of the Tapuae Roa funding and any potential further funding going forward.

SIGNIFICANCE AND ENGAGEMENT

16. In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance because of the relatively small amount of money involved while the VT review is completed and recognising the importance of retaining applicable staff at this time.

353 Extraordinary Council agenda (29 June 2021) - VT Funding

OPTIONS 5 Option 1 Approve $300,000 additional funding for Venture Taranaki

Option 2 Approve $190,000 additional funding for Venture Taranaki

Financial and Resourcing Implications

17. Either of these options would be funded from the existing economic development reserve. There would be no implications for other budgets, assets or liabilities. Funding would be used by VT for staff costs and associated overheads or programme expenses.

Risk Analysis

18. There are no foreseeable risks of these options. MBIE staff are aware that the Council is considering this funding and is very encouraging of regional contribution to complement its own funding. $190,000 would match central Government funding.

Promotion or Achievement of Community Outcomes

19. These options positively contribute to the partnerships, delivery, community and prosperity community outcomes. They will strengthen the ability of VT to undertake regional strategy, Covid-19 recovery and Māori partnerships work.

Statutory Responsibilities

20. These options meet statutory responsibilities outlined in the Local Government Act 2002 around the purpose of local government and requirements related to council-controlled organisations such as VT.

21. Separation of governance and management responsibilities of CCOs is important and as such it is generally unadvisable for shareholders to dictate staffing requirements. However, as this is directly related to a request for additional funding and shareholder priorities it is considered appropriate.

Consistency with Policies and Plans

22. These options are consistent with the Long-Term Plan 2018-2021, Draft Long- Term Plan 2021-2024 and the Annual Plan 2020/21. They are also consistent with the VT draft Statement of Intent 2021/22.

354 Extraordinary Council agenda (29 June 2021) - VT Funding

Participation by Māori

23. These options would ensure VT continues to undertake Māori partnerships work 5 while the shareholder review of VT is completed and considered. This aims to build a stronger relationship between Ngā Iwi o Taranaki and VT, helping Council to meet its own partnerships aspirations.

Community Views and Preferences

24. There has been ongoing community interest in regional strategy and sector work. For example, the development of Taranaki 2050 involved thousands of people in the community participating in the process, recent roadshows for Tapuae Roa and Taranaki 2050 (including related specific sector workshops) were very well attended, feedback from iwi has been positive around VT being more involved in Māori partnerships and central Government is keen to see work continue around regional strategies.

25. In the 2020 NRB Community Satisfaction Survey, 36 per cent of respondents said to spend more on economic development – second highest only to roads (39 per cent).

Advantages and Disadvantages

26. The advantage of these options is that the staff are retained and work is able to continue at VT while the review is completed. This recognises 2021/22 as a transitional year for VT to respond to any decisions of Council regarding the future focus.

27. The disadvantage is the costs associated with this compared to VT reprioritising existing budgets (including the Tapuae Roa funding) to meet the shortfall.

Option 3 Do not approve additional funding for Venture Taranaki

Financial and Resourcing Implications

28. Under this option the related work would either cease or VT would modify its workplan and reprioritise its base and Tapuae Roa funding to meet shareholder expectations. It would be the most financially prudent option in the short-term, however it would likely have negative implications for staff and performance at VT, particularly this close to the new financial year.

Risk Analysis

29. The risk of this option is that work that is considered important to the Council and is likely to be identified in the review as core, is unfunded and that related knowledgeable and experienced staff at VT are lost to the organisation.

355 Extraordinary Council agenda (29 June 2021) - VT Funding

Promotion or Achievement of Community Outcomes 5 30. This option will reduce the contribution by VT to the community outcomes of partnerships, delivery, community and prosperity.

Statutory Responsibilities

31. Under this option there are statutory responsibilities relating to the affected staff that would be managed by VT.

Consistency with Policies and Plans

32. This option is inconsistent with the Council-adopted Tapuae Roa regional economic development strategy as it would reduce the implementation and monitoring of this. It is consistent with the Long-Term Plan 2018-21 and Annual Plan 2020/21.

Participation by Māori

33. This option would likely result in focused Māori partnerships work ceasing, reducing the impact that VT can make through working with Ngā Iwi o Taranaki on regional development activities.

Community Views and Preferences

34. There would be mixed community views and preferences related to providing VT with this additional one-off funding. This funding was not considered in the Long-Term Plan 2021-2031 process. However, the 2020 NRB Communitrak Survey showed that there was willingness by many (36%) for Council to spend more on economic development.

Advantages and Disadvantages

35. The advantage of this option is that the funding would be available for other economic development activities. The disadvantage is that the agency responsible for delivering that on behalf of the Council would need to reduce services that they provide in 2021/22.

Recommended Option This report recommends Option 2: Approve $190,000 additional funding to Venture Taranaki for addressing the matter.

356 Extraordinary Council agenda (29 June 2021) - VT Funding

Report Details 5 Prepared By: Kathryn Scown (Principal Advisor – Regional Economic Development) Team: Strategic Partnerships Approved By: Kelvin Wright (Deputy Chief Executive) Ward/Community: District Wide Date: 17 June 2021 File Reference: ECM8564593

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