Now for the Future Long-Term Plan 2021-31 Consultation Document Kia Ora

Now for the future Long-term Plan 2021-31 Consultation Document Kia ora

Every three years we create a plan for investing in our city over the coming decade.

This document describes the challenges we face as we look to build the great city you’ve told us you want to live in and invites your feedback on our plans for Tauranga.

We want you to tell us what you think of our proposals and how you think we should pay for them.

Our commissioners will use your feedback to make decisions about the Long-term Plan, which runs from 1 July 2021 to 30 June 2031.

This plan is about now and the future.

More information is available at www.nowforthefuture.co.nz

2 Key dates

Consultation 7 May - 7 June

This is when we want your feedback - Hearings we must hear from you by 4pm on Monday, 7 June 14 - 18 June

Deliberations This is your chance to speak with our commissioners in week starting 21 June person about your feedback, if you wish to do so

The commissioners will consider all the feedback Adopt Long-term Plan from our community week starting 26 July

The commissioners will confirm the Long-term Plan 2021-31

Adopting the Long-term Plan after 30 June 2021 means we are behind the statutory timeframe. We acknowledge this and intend to adopt on 26 July 2021.

At this stage this is unlikely to have any impact on invoicing for water and rates.

3 We are listening

• Complete the online submission form Come and chat with us at one of our events. available at www.nowforthefuture.co.nz These are meetings where your views can be shared directly with commissioners and/or • Scan your completed submission form staff. and email it to [email protected] Come and chat with us at one of our events.

You can also use our online rating calculator Matua Hall 15 May, 9am-midday to find an estimate of your proposed rates. Mount Sports Club 20 May, 4pm-7pm

Greerton Library 31 May, 4pm-7pm

Papamoa Surf Club 1 June, 4pm-7pm.

• Drop your submission form into our For a full list of activities and events, and all Customer Service Centre, 91 Willow the ways you can tell us what you think, go Street, Tauranga or at your local library. to www.nowforthefuture.co.nz • Place your completed form in an envelope and send it to this address (no stamp required):

Freepost authority number 370 Long-term Plan 2021-31 Tauranga City Council Private Bag 12022 Tauranga 3143

For more information on giving us your feedback, see pages 132-133

4 From 7 May to 7 June, we are also keen to hear your feedback on the following topics:

Revenue and Financing Policy This outlines our proposals for sourcing funds (money), as well as our capital and operating expenditure.

Development Contributions Policy This describes how we propose to charge developers about the ways they contribute to roads, pipes, parks and other infrastructure serving their properties.

User Fees and Charges

These documents are available at www.nowforthefuture.co.nz

5 Contents

Whanake te tai 8

Messages from the commissioners 9

Your community outcomes 14

The big challenges facing Tauranga 15

When our spaces and places were built 16

Community spaces and places 17

More people coming to live, work, play and learn 19

Congestion and getting around the city 21

The city centre 23

Resilience - climate change and coping with natural disasters 25

Our ability to get the job done 27

The biggest challenge: funding 29

How we fund what we do 31

Development Contributions 33

Sources of income for the big-ticket items 35

Other consultation topics 78

Sale of Pitau Road village and Hinau Street village 79

Supporting community-led initiatives 84

Our civic administration building 89

Infrastructure strategy 97

Our finances 99

Policies for consideration 115

For your reference 117

Tauranga city rating comparisons 118

Our assumptions 121

Auditors Report 128

Having your say 131

Submission form 134

7 Whanake te tai

Forever flow of the tide

As Tauranga Tangata we have an affinity with the ocean. Whanake te tai speaks to that, drawing upon our natural environment. In this case the ‘forever flow of the tide’, incrementally increasing, but progressively developing and rising. This acknowledges that we need to be as the tide, inch by inch doing more, doing better each day, implying continuous improvement. Tauranga now and for the future He kupu nā ngā kōmihana

Messages from the commissioners Welcome – haere mai

Not so long ago, Tauranga was a sleepy coastal town with a ferry Now is the right time to take a good look at ourselves and decide chugging to and from the Mount. what kind of city we want to live in. We have a real opportunity to be ambitious for this city – to not settle for second rate How things have changed. infrastructure and crumbling leisure and sporting facilities. The Now a multi-lane bridge spans the harbour, carrying tens of commissioners have been getting feedback that people want a thousands of vehicles across the city every day – and to and past city they can be proud of: a thriving community with pools, parks, New Zealand’s busiest port. libraries and theatres; a place where we can move around easily; a city that has affordable homes for ourselves and for our children. Many hundreds of new businesses have moved here, attracting skilled workers from all over the country and around the world. If we seriously want these things, we have to answer the question: New suburbs have been created to house these people and their how are we going to pay for them? families, pushing the city’s boundaries towards Te Puke and the That question, and many more, are at the heart of this Long-term Kaimai Range. Plan.

And yet, during this time, we’ve failed to invest in community This is the time for everyone in our community to get involved, so facilities and the key infrastructure our city needs. please read this document and give us your thoughts. Help us We see the evidence of this every day. Anyone who drives along make the right decisions for you, your family, and your city – now one of our key arterial routes at ‘rush hour’ will know that we’ve and for the future. under-invested in our transport networks. And it’s hard to get around by other means, because we haven’t adequately provided for cyclists, pedestrians and public transport users.

Most summers, we’re asked not to use our sprinklers, to help Anne Tolley manage water shortages. Commission Chair Many of our key community facilities are aging and no longer meet our modern expectations, and in newer parts of the city, they don’t exist at all. In the past two decades we’ve only built five new big public amenities. This despite our population growing by 50%. We all pay one way or another…

Commissioner Stephen Selwood

For decades now, Tauranga has suffered from under-investment in All Long-term Plans are important, but this one is critical. It will set community facilities and key infrastructure like roads and pipes. our strategic direction while underlining our commitment to the future of our city. This has been driven by a desire to keep rates as low as possible. There’s no question that we need to make hard decisions, and And that’s understandable, because nobody wants to pay more that we need to make them now. And we need your views on our rates on their properties or higher prices for services. investment options.

But the downside is that is that we are paying in other ways. Tell us what your priorities are for Tauranga, now and for the future. By not investing in the city, we have come to a situation where our roads are congested, house prices are beyond the reach of many people, water supplies are running low during summer, and we’re not managing our environment as well as we should.

We can either let this situation get worse, or we can invest now for the future and ensure Tauranga is a great place for us, and our children, to live.

We’ve certainly reached a crunch point. What we need now and for the future…

Commissioner Bill Wasley

One of the common things we’ve been hearing from the community is that they don’t want to be subsidising the cost of growth. Or in other words, paying for infrastructure for new residents who are yet Strategies and plans – now and for the future to move here. • SmartGrowth We understand this and we also understand how confronting it is • the Urban Form and Transport Initiative when you see dramatic changes in the city you love and call home. However, what we think hasn’t been made sufficiently clear is that • the Western Bay of Plenty Transport System Plan Tauranga desperately needs upgraded infrastructure to cater for the • Community Facilities Investment Plan people who live here already – for the people who live here now.

Therefore, this Long-term Plan takes care to focus as much on the now as it does on the future Long-term Plan.

Yes, it’s true that Tauranga is the fastest growing city in New We cannot turn off growth but Zealand but even if there were no new residents moving to what we can do is properly Tauranga, we would still need to substantially invest in our current plan for it, so that we all infrastructure and facilities. Tauranga cannot continue to be the benefit. A bigger population poor cousin to places like Hamilton and Rotorua when it comes to means more job opportunities, what we can offer our residents. greater diversity and more activities and amenities for us In recent years we have developed strategies and plans that all to enjoy. provide a balance between being future focused, as well as providing pathways for improvements to our existing infrastructure Our continued challenge is and facilities – to make Tauranga a better place to live, work, play to find additional ways to and learn. fund and implement these strategies and plans – in These are not just our strategies and plans but have been partnership with Government developed in partnerships with tangata whenua, neighbouring and others - to better balance councils, Government and other organisations to find ways to meet the needs of existing and new these challenges. Implementation of these plans is now a key focus. residents. We’re in this together

Commissioner Shadrach Rolleston

Like you, I want Tauranga to be a great place to live. I’m Māori, and this provides me with a uniquely Māori perspective on our city and its challenges. Everyone has a different perspective, I’ve lived here most of my life and I want our city to overcome its and all those perspectives are important. many challenges. Generally speaking, only a small percentage of people take an Also like you, I want my friends and whānau to enjoy their lifestyles interest in their local council’s plans – unless they hear about rates and to be proud of the city they live in. rises, of course.

That’s one reason why we’re working with partners, both local and But this Long-term Plan is not just for a small percentage of us. It’s national, to make Tauranga better for everyone. We’re working with for all of us. other councils, with central government, and with tangata whenua, for example. It’s about working together to own our futures.

We also need to work with you, whoever you might be. I invite you to get involved, now and for the future.

If you look around our city, you will see that we are becoming increasingly diverse.

Young students are attending our tertiary facilities, skilled workers are coming here for jobs, our ethnic make-up is diversifying to include growing numbers of Asian and Pacific peoples.

Māori that whakapapa (connect) to other parts of New Zealand also call Tauranga home. Your community outcomes

Last year you told us what type of city you wanted Community outcomes are a starting point for our Tauranga to be, and your views have been used to Long-term Plan. They guide our decision-making create these community outcomes. to provide you with the city you want.

We have a well-planned city We value and protect our Tauranga is a city that is well planned with environment a variety of successful and thriving compact Tauranga is a city that values our natural centres, resilient infrastructure, and community environment and outdoor lifestyle, and amenities. actively works to protect and enhance it.

We support business and education We can move around our city easily Tauranga is a city that attracts and supports a Tauranga is a well-connected city, easy range of business and education opportunities, to move around in and with a range of creating jobs and a skilled workforce. sustainable transport choices.

We are inclusive We recognise we are an integral Tauranga is a city that recognises and part of the wider Bay of Plenty promotes partnership with tangata whenua, region and upper North Island and values culture and diversity, and where people of all ages and backgrounds are Tauranga is a well-connected city having a key included, feel safe, connected and healthy. role in making a significant contribution to the social, economic, cultural and environmental well-being of the region.

14 Ko ngā taupātanga e pā nui nei ki a tātou o Tauranga

The big challenges facing Tauranga

15 When our spaces and places were built

1955 1957 1963 1965 1968

Memorial Memorial Mount Merivale Community Centre Otumoetai Park pools Park indoor Library Pool courts Wharepai Domain clubrooms Queen Elizabeth Youth Centre

1983 1980 1977 1976 1972 1971

Baycourt Selwyn Park Welcome Bay The Historic Cliff Road Tauranga District Community community Community Village clubrooms Museum and Arts Centre building Centre Greerton Aquatic and Leisure Centre

1989 2005 2006 2011 2016

City centre Bay Oval Papamoa Trustpower Arena (Baypark) Greerton library Library Library Baywave TECT Aquatic Arataki Community Centre & Leisure Centre

16 COMMUNITY SPACES AND PLACES

Tauranga needs more community facilities like swimming pools, sports halls and active reserves – spaces and places that meet the needs of our community.

– Bucky, Arataki Community spaces and places are where people can engage in sport and play, walk and cycle, have connections with others, learn, and have fun. They include parks, pools, libraries, halls, theatres and sports fields.

They contribute to our social, cultural, physical and mental wellbeing – and make our city a great place to live.

However, in Tauranga, we don’t have enough spaces and places to provide for the people who live here now, let alone the people who will move here in future.

Many facilities are worn out or nearing the end of their lives because, for many years, they haven’t received the investment they needed.

Our population has doubled or tripled since many of our spaces and places were built or developed – and more people are coming to live here every day. This means we need to find ways to fund the upgrades, replacements and new places and spaces we need – this includes working with partners to redevelop what we already have.

Over the next 10 years we’re proposing to... invest $672m in spaces and places including aquatics, sports halls, sportsfields and libraries. Also, through the accessible recreation programme, we are proposing to invest in boardwalks, park furniture, shade, sports facilities and accessibility solutions to enable our varied and growing community to connect, explore and engage in valued experiences across the city.

18 MORE PEOPLE COMING TO LIVE, WORK, PLAY AND LEARN

We need more land for homes and businesses, so my children and their children can afford to live in Tauranga.

– Vikram, Matua The number of people living here has doubled since 1980 but our city’s infrastructure (like roads, parks, water pipes and wastewater facilities) has not increased at the same rate.

Much of our existing infrastructure is old and worn out.

This means that for people living here now it is already difficult to get around the city, run businesses and have the lifestyles they want. The infrastructure that supports our day to day lives is already severely under pressure and yet we know that by 2053 our population is likely to be 212,000, which is 60,000 more people than we have today.

This requires a seriously high level of investment in our existing infrastructure (contributing to meeting the housing and liveability demands of current residents) as well as a seriously high level of investment in infrastructure that allows for new housing areas, new playgrounds, new parks, new roads and new community places.

Tauranga does not have many areas available for new homes and businesses, but we have planned for fresh areas of housing in Tauriko and Te Tumu, as well as for ‘city-living type’ housing from Sulphur Point to Barkes Corner – known as the Te Papa peninsula.

We also need to ensure we develop housing areas that reflect the changing needs of our communities – smaller homes as well as larger, multi-living options and single dwellings.

Overall, we’re proposing to... invest about $2.5b over 10 years to create more liveable places for today, as well as laying the groundwork for future homes and businesses.

20 CONGESTION AND GETTING AROUND THE CITY

I want to move around the city more easily – with different transport options.

– Colleen, Maungatapu It’s no secret that it’s getting harder and harder to move around our city.

This is not only frustrating – it is also bad for our local economy.

We receive a lot of feedback about the quality of local roads and the need for them to be widened or extended to carry more cars. And while we are able to do some of these things across the city, we also need to think about providing alternatives.

Allowing people to get around more easily on foot, by bicycle and on public transport will free up more space on our roads for those people who continue to drive.

Overall, we’re proposing to... invest about $1.9b over 10 years on helping people move around our city more easily and improving connections for local businesses. For more information about the Western Bay of Plenty Transport System Plan (TSP) search for ‘transport plan’ on our website at www.tauranga.govt.nz.

22 THE CITY CENTRE

I want a great city centre – a place of belonging

– Jordan, the Lakes Tauranga’s downtown is yet to complete its transition from a large rural town to a vibrant, modern city centre.

Our city centre is meant to be a social, cultural and economic hub not only for us, but for the wider Bay of Plenty.

Therefore, it’s important that we do all we can to revitalise the heart of our region, providing the right environment to spur our local economy and encourage private investment.

Anybody who’s visited Wharf Street or Durham Street recently will see that some great progress has been made and will have a taste of how amazing our city centre could be.

But much more needs to be done.

We need to think about investing in the central business district, a library, cultural facilities, open spaces, streetscapes, a possible Strand extension boardwalk, and a proper civic administration building (council building).

We’re proposing to... invest about $126m during the next 10 years on revitalising our region’s heart, spurring the local economy and encouraging private investment.

24 RESILIENCE - CLIMATE CHANGE AND COPING WITH NATURAL DISASTERS

I want to live in a city where we have safe, clean water so our moana can continue to be enjoyed by everyone.

– Porina, Welcome Bay It’s easy to think that bad things only happen elsewhere – that tsunamis only happen in Asia, for example, or that our only earthquake cities are Wellington, Napier and Christchurch.

COVID-19 is a stark reminder that bad things can happen anytime, anywhere.

While planning for such situations, we’ve identified 315 projects to improve our city’s ability to cope with climate change and natural disasters.

Apart from tsunamis and earthquakes, we’re also planning for sea level rise, landslides, flooding, erosion, and more.

This is a big focus for us as we look at current threats, as well as future risks and realities.

We’re proposing to... invest about $296m during the next 10 years on strengthening our ability to cope with natural hazards like tsunamis, floods, landslides, erosion and sea level rise.

26 OUR ABILITY TO GET THE JOB DONE

There’s no point making great plans for a better Tauranga if we don’t have the people to make it happen. Achieving the outcomes and proposals in this Long-term Plan will require the right level of investment in staff and contractors. More resources will be needed.

Among other things, we need to provide a single building for our city-based staff. We lose $1m a year in lost time working between three different buildings in the city centre – not counting the frustration for many of our customers who are trying to find the people they need to meet with.

We’re proposing to... increase our investment in staff, systems and payments to our service and maintenance contractors. In 2022, the additional investment required to enable delivery will be $31m. This amount increases by about $3m per year for the next nine years.

28 He taupā nui, ko te pūtea

The biggest challenge: funding

29 During the past few decades we’ve fallen way behind with our investments in community spaces and places (like pools, reserves and libraries) and infrastructure (like roads, playgrounds, water pipes and wastewater facilities).

This means we’re in catch-up mode.

The investment required to create a city that is liveable now, and in the future, means we will need to increase our income from all sources – not just rates but our other sources of funding also.

However, because our debt is high, we propose to use rates to pay some of it off as this will allow us to invest in our city without breaching our borrowing limits. This is called debt retirement and you can read more about this on page 100

We are also investigating other financing and funding options at a city, sub-regional, regional, and national level to find alternatives to some of the rate-funded debt retirement (repayments) proposed in this plan.

This Long-term Plan calls for everyone to pay a share in our city’s revitalisation – ratepayers, developers, commercial owners as well as regional and Government partners.

The following section outlines how our funding works. More information can also be found in the finance section (see page 99).

In total, we’re looking to... invest $4.57b in capital projects over the next 10 years to maintain and renew our infrastructure, accommodate our growing population, help people move around our city more easily and provide the community facilities our people expect.

30 How we fund what we do…

We have a limited range of ways we can fund the Revenue funding operational expenditure over two main types of work that we do: 10 years ($4.6b)

fees and charges 14% 1. Operational expenditure subsidies 3% (the things we do – keeping the city ticking over) general rates 38% water by meter 11%

targeted rates 34%

31 Who is paying for the investment over 10 years 2. Capital expenditure ($4.57b)

(the things we build – making the city liveable) other grants

grants NZTA Sources of income for operational expenditure are: • rates (targeted or general) • water charges (charged by the volume of water used) people • fees and charges who • subsidies (from central government). build new homes and businesses Funding sources for capital expenditure are: people paying • borrowing rates and • development contributions user fees developers • subsidies (from central government). over time

This is from: • people who pay rates and user fees over time • developers In this Long-term Plan we are looking at all available funding and financing options including rating, • people who build new homes and businesses here development contributions and Government grants. • Government and other organisations who provide grants to us. An example of the latter is the Government’s Housing Acceleration Fund (HAF). This recently announced $3.8b fund aims to increase the supply of houses through funding of critical infrastructure and accelerating housing developments where high housing need has been identified.

32 Development contributions (DCs)

When new areas of land are subdivided, property developers pay We use two types of development contributions: development contributions (DCs) to us for the costs of providing new or improved infrastructure like water and wastewater pipes, 1. local development contributions fund the infrastructure that roads, parks, playgrounds, streetlights and community places. services the local area in which the development is taking place, like small pipes and neighbourhood playgrounds. DCs are usually paid after an area is developed. However, roads and pipes are needed before people can actually live there. 2. citywide development contributions go towards infrastructure Therefore the council is required to finance the construction of that services the entire city, like a wastewater treatment plant. infrastructure so the subdivision is liveable and accessible.

The combination of the need for roads and pipes and facilities to be in the ground before someone can buy a section or house, along with the time-lag for payments means that the council Much of the water and roading has to borrow to build the infrastructure needed. In cities where growth is limited, this does not affect their balance sheet the way infrastructure in Wairakei, Tauriko and the it does for cities where there are large new growth areas that are Lakes was funded via DCs, Waka Kotahi constantly being developed. (NZ Transport Agency) subsidies and/or In cities like Tauranga this means our borrowings are very high vested with the council. because we are developing a lot of existing and new infrastructure.

More information about DCs is available at www.tauranga.govt.nz/development-contributions.

Development contributions received over the 10 years of this Long-term Plan are projected to be $500m

33 Vested assets

In addition to contributing funds, sometimes developers contribute actual infrastructure – such as roading, streetlights, water pipes etc – and they hand over these assets for us to maintain.

The ongoing maintenance costs for these assets, along with all other city asset maintenance, is picked up by ratepayers.

These are known as vested assets.

Over the last five years we have received $128.5m worth of vested assets and $154.3m in development contributions.

34 Sources of income for the big-ticket items

The big-ticket items are known as capital costs. These are the costs of building or purchasing big assets such as treatment plants, roads and libraries.

We usually borrow money (by taking out a loan) to pay for long- term and expensive ‘big ticket’ items.

This means the cost is spread over time – much like taking out a mortgage when you buy a home.

It means that future ratepayers (who will eventually end up using the pipes and roads and community buildings) will pay their share of the cost and it will not all fall on the ratepayers of today.

Loans are mostly paid back through rates and development contributions with some also paid back through user fees.

More on debt and borrowing can be found in our finance section (see page 99).

35 More on funding…

Rates

General rates are paid by all ratepayers. The amount you pay is Water by meter rates are charges based on volume of water used determined by the capital value of your property. by a household or business. Sometimes this is referred to as a water rate. Uniform Annual General Charge (UAGC) is a fixed charge that is the same for every property, regardless of its value. In Tauranga, You can find more information about rates on our website at the UAGC, and other fixed targeted rates make up 10% of our total www.tauranga.govt.nz/rates-charges rates requirement.

Targeted rates are paid by ratepayers in certain geographic areas or when their property benefits directly from a service or activity. The charge can be fixed or variable, in which case the amount is determined by the capital value of your property. Three examples of targeted rates are for:

• economic development (paid by commercial ratepayers only) • a better service – for example, smoother roads or more expensive streetlights • wastewater for properties that are, or can be, connected to the wastewater system

You can find more information about targeted rates on our website at www.tauranga.govt.nz/rates-charges

36 Fees and charges Subsidies

People pay fees and charges for certain services we provide, and Subsidies for our operating costs and for big-ticket items usually these make up 14% of our cash income. They help cover costs where come from central government, and these make up 14% of our the benefit of the service is exclusive to a person or property. realised income. The largest contributor is Waka Kotahi (the NZ Transport Agency) which contributes to our transport costs. Some major sources of revenue from user fees and charges are for building and resource consents, parking fees, property leases and Other grants may be received from community trusts and other airport landing charges. agencies, particularly where expenditure helps to meet community or environmental goals. Funding Assistance Rates (FAR) COVID-19 affected our income Waka Kotahi review and set the Funding Assistance Rate (FAR) for each council. We’re in catch-up mode because COVID-19 affected what we earn from fees and charges. The overall average for FARs is 51%.

During the 2020 lockdowns, our revenue was reduced This is paid for local land transport activities such as local road because people were not able to use some services. For maintenance and improvements, public transport services and example, people stopped using our parking meters and cycling improvements. attending events at Baycourt. We share the costs of the land transport network, recognising there Among other urgent measures we took to address our are national and local benefits from investment in the network. revenue drop, we froze staff salaries and cut our training budgets.

However, these measures were only temporary and we are proposing to ease them during this Long-term Plan.

37 He tūnga ki tai awatea, he hao pūhake ki tai ahiahi

Building a great city now, for the future

This section outlines our proposals for the ‘big-ticket’ items like pipes, roads, parks and libraries.

This is called capital expenditure.

The aim is to address the most urgent needs of our city now while working towards our future and achievement of the community outcomes (see page 14).

The end of this section includes some options and questions for your consideration.

38 Now is the right time to take a good look at ourselves and decide what kind of city we want to live in.

– Commission Chair Anne Tolley Capital expenditure priorities

1. Community spaces and places

Replacing old facilities and creating new spaces Our programme of investment in community spaces and places will and places for everyone to enjoy enable us to: • catch up on under-investment over recent years and better Over the next 10 years we’re proposing to invest $672m in spaces serve current residents (including the 36,000 new arrivals over and places including aquatics, sports halls, sportsfields and the last 10 years) libraries. Also, through the accessible recreation programme, we are proposing to invest in boardwalks, park furniture, shade, sports • provide facilities on both sides of the harbour facilities and accessibility solutions to enable our varied and • replace old facilities that no longer meet the needs of our growing community to connect, explore and engage in valued community experiences across the city. • secure land for future community spaces and places (beyond These will contribute to pride in our city and will make us happier, the timeframe of this Long-term Plan). healthier and better connected.

You can find out more about our community facilities investment plan here.

40 Proposals include the following:

Re-development of the Memorial Park pool $49 million

Re-development of the Memorial Park indoor sports facility $54 million

Development of a new active reserve and associated facilities in the west of the existing urban area $56 million

Development of a new active reserve in the Tauriko area* $12 million

Development of a community centre in the Tauriko area* $15 million

Development of a library in the Tauriko area* $15 million

Development of community centres in existing urban areas (Te Papa, excluding city centre) $18 million

Parks developments and upgrades (some also included in city centre figures) $59 million

Development of sportsfields and associated facilities $26 million

Development of Kopurererua Valley $8 million

Marine Park/Sulphur Point upgrade and capacity increase $8 million

Public spaces and amenity improvements in the Te Papa peninsula $71 million

Strategic land purchases for future community facilities in both the Te Tumu and Tauriko areas $58 million

Ohauiti active reserve development $7 million

City centre community spaces and library^ $61 million

Memorial Park to city centre waterfront pathway^ $19 million

* = these investments are also included in the ‘land for homes and businesses proposal’ ^ = these investments are also included in the city centre investment totals

41 2. Land for homes and businesses

Enabling development and building infrastructure for future homes and businesses

Our city needs more homes to accommodate our growing population.

The following investments aim to:

• improve infrastructure in existing areas such as the Te Papa peninsula • provide roads, pipes and other infrastructure for homes and businesses in new areas.

In addition, we must consider ways to support papakāinga and community housing.

35,000 homes are needed in the next 45 years

42 Growth areas

Intensiﬁcation Mount Maunganui Existing suburban areas available for additional housing 2

City Centre

Tauriko

Papamoa

29A

29 2

Te Tumu 36 Te Papa Tauriko area Te Papa peninsula We propose to invest $296 million in and around Tauriko over the This is the area from Sulphur Point to Barkes Corner. next 10 years, including $83 million related to community spaces and places (see the community facilities section above) and $131 The proposal includes investment of $711 million for Te Papa million on transport (see below). peninsula developments over 10 years, including $442 million on transport and $89 million related to community spaces and places. These investments provide: These investments aim to provide: • for the construction of 3,000 to 4,000 new homes • for an additional 15,000 residents in the area by 2050 • improvements to the state highway network including SH29 and connections • for an additional 4,000 jobs in the city centre by 2063 • an additional 100-150 hectares of business land providing for • an improved passenger transport route from Tauriko to the around an additional 2,000 jobs. city centre, and improved transport choices throughout the peninsula.

Te Tumu area Not included in this total is: This proposal includes investment of $462 million in and around the Te Tumu area over the next 10 years including $152 million on • a proposed budget for direct investment in the city centre transport and $36 million related to community spaces and places. (described below), which will have flow-on benefits to the peninsula These investments provide for: • the proposed $104 million investment in the city-wide Memorial • the construction of 2,000 to 3,000 homes in areas already Park aquatics and indoor sports facilities indicated in the zoned for housing community spaces and places (see page 41). • the construction of a further 7,000 to 8,000 homes in Te Tumu City-wide infrastructure once it is zoned for housing Most of this investment is for upgrading and improving the capacity • the construction of a direct link to the Tauranga Eastern Link of our water and wastewater networks. via the Papamoa East Interchange to support the residential development and also 57 hectares of land for new businesses These will improve service for existing residents and enable the and employment. development of 35,000 new homes across the existing parts of the city.

The proposal includes $158m for the further development of the Waiāri water supply scheme and $198m for further development of the Te Maunga wastewater treatment plant and associated assets.

44 National Policy Statement on Urban Development The National Policy Statement on Urban Development (NPS-UD), which is a Government standard, requires us to enable higher- density living close to employment and where commercial and business areas are easily accessible by active or public transport networks. The NPS-UD specifies that ‘sufficient land capacity’ must be provided to meet expected demand.

Under the NPS-UD ‘sufficient land capacity’ means that the council must meet the anticipated demand plus 20% more over the 10- year period and 15% more in the 10-year to 30-year period.

However, even though the expenditure we are proposing in this Long-term Plan enables development in Te Papa, Te Tumu and Tauriko West, we cannot meet the ‘sufficient land capacity’ requirement under the NPS-UD because processes such as rezoning and some issues associated with access and development of Maori land, are still to be addressed.

A summary of the shortfall in dwellings is expressed in the tables on the following page.

Note: as the NPS-UD was created under the Resource Management Act it has the force of a regulation. While there are no specific consequences for non-compliance, we need to look at all options to achieve compliance and to provide information about how we are doing this.

45 Table 1: Shortfall in dwellings assuming 15% within existing city Table 2: Shortfall in dwellings assuming 25% within existing city area and 85% in new areas area and 75% in new areas

Estimated dwelling shortfall Estimated dwelling shortfall

Medium term Medium term Short Medium Short Medium (4 – 10 yrs) (4 – 10 yrs) term term without term term without with Te Tumu with Te Tumu (1 – 3 Te Tumu and (1 – 3 Te Tumu and and Tauriko and Tauriko yrs) Tauriko West yrs) Tauriko West West West

Projected Projected dwellings needed 3,590 7,880 7,880 dwellings needed 3,590 7,880 7,880 (citywide) (citywide)

Citywide shortfall 580 460 3,460 Citywide shortfall 220 -330 2,670

Citywide shortfall Citywide shortfall 1,300 2,030 5,030 940 1240 4,240 plus 20% plus 20%

46 3. Transport

Helping everyone move around our city more easily and improving connections for local businesses The TSP was developed in partnership We are investing in safe, sustainable and efficient movement of with Western Bay of Plenty District people and goods around and through the city. Council, Waka Kotahi, Bay of Plenty It takes time to build transport infrastructure and for the community Regional Council, tangata whenua, Port of to adapt to new opportunities. Tauranga, Priority One and KiwiRail.

In short, there are no quick fixes and many of the current transport- related challenges in the city will remain for some time.

The Western Bay of Plenty Transport System Plan (TSP) 2020 provides an overview of some of the key changes we are proposing that will deliver:

• increased levels of public transport and active travel options • increased safety • improved accessibility • support for business growth.

47 This Long-term Plan includes $1.9b of investment in transport.

15th Avenue / Turret Road corridor $63m

Hewletts Road / Totara Street / Hull Road sub-catchment $160m

Bus infrastructure (inc Park n Ride) $101m

Accessible streets, including walkways and cycleways $185m

Te Tumu and Papamoa East area projects $152m

Tauriko area projects $131m

Te Papa intensification (including Cameron Road, and Transport Hub) $442m

Local Road and Transport Renewals $161m

Local Roads Safety and upgrades $96m

Vested Assets $210m

Resilience Projects (also included under Resilience) $89m

Other Transport Projects $114m

48 4. City centre investment

Revitalising our region’s heart, spurring the local economy and encouraging private investment

These proposals aim to spur more development in the city centre, ensuring it provides a modern central business district for the wider Bay of Plenty region and promotes economic growth.

Key elements include:

• community spaces and library - $61m (also included under community spaces and places section above) • civic plaza and surrounding public spaces - $12m • other city centre public spaces and streetscapes - $21m • Strand extension boardwalk replacement and associated streetscape - $6m • Memorial Park to city centre pathway - $19m • leasing a new civic administration building (lease costs are commercially sensitive at this stage) - see page 89 for more on this

49 5. Resilience

Strengthening our ability to cope with natural All hazards are mapped in terms of different return periods and time horizons. An example is flooding which is mapped with 50- hazards like tsunamis, floods, landslides, erosion year, 100-year and 500-year storm events and each of these and sea level rise include sea-level rise projections. This provides an extensive database for analysis and use in determining risk. Climate change intensifies many of these hazards through intensified rainfall and higher sea levels. To implement all these projects would require a total investment of $850 million to $950 million (in 2021/22 dollars). We are planning for this changed environment so that our assets – particularly pipes and roads - continue to operate during hazard However, over the 10 years of this Long-term Plan we are proposing events (including those hazards caused by climate change) and so to invest $296 million. provide a solid platform for communities to thrive. Note: at this rate of funding, the full resilience programme will still We have identified 315 projects to improve our city’s resilience to take approximately 45 years. natural hazards including: Early program of works total $108m and include the following. • sea level rise Joyce raw water supply $30m • tsunami • land slide Tauranga Hospital and Historic Village $3m • flooding Oropi and Joyce water supply trunk mains $35m • liquefaction • inundation Chapel St Bridge and causeways $38m • erosion. Slips in vicinity of Cambridge Road/Fernland Spa $1m

50 A full list of resilience projects can be found here

As we are proposing to invest heavily in building projects for resilience, we are proposing to increase the resilience targeted rate to cover the costs of this investment.

Climate change While there has been significant work undertaken on adapting to cope with climate change, there is still further work to be done on identifying ways the council can go about reducing its own impact on climate change e.g. reducing emissions. We are currently doing two sustainability stocktakes that will provide us with further direction on how we can reduce our environmental footprint.

51 6. Enabling delivery

Making sure we have the resources to provide • increase staff budgets to: quality services and deliver what the city needs – support the increased capital expenditure programme and assure quality standards The investments outlined in this Long-term Plan are by far the – meet increased community expectations for improved biggest ever proposed for the city. access, communication and engagement To achieve what is proposed will need significant investment – meet increased requirements for planning across the city in both our people and our systems, as well as providing an appropriate place for our city-based staff to work. – attract and retain the best people we need by paying competitive salaries and reversing the salary and training Investment is required to: freeze from COVID-19

• provide contracted services and maintenance services – replace consultants with salaried staff to improve cost efficiency, adequately resource our ability to deliver on this • provide kerbside waste services plan • ensure adequate digital systems, security and performance – bring expertise in-house. (eg $173m capital investment to replace outdated systems and improve systems that our community uses) We also believe we must measure ourselves against other councils to ensure we are operating as efficiently as possible.

In 2022, the additional investment required to enable delivery will be $31m. This amount increases by about $3m per year for the next nine years.

52 Fixing and updating what we already have

Apart from providing new infrastructure, we must also fix, maintain and improve the assets we already have.

In our Long-term Plan we are proposing to spend $532m doing this (called ‘renewals’).

We need to improve the quality of wastewater and stormwater that flows into our waterways and replace assets that are getting old. Many of the underground pipes in our central city are 100 years old and will need to be replaced with new and larger pipes to support the people who live here now, and our growing population.

Some of this investment will also enable more housing in existing areas of the city so we don’t just spread outwards as we grow.

53 Funding our capital investment programme

We are proposing a capital investment programme of $4.57b over the next 10 years. This programme is based on addressing our big challenges by investing in the ‘big ticket’ items described above as well as renewals. The following graph summarises this capital investment on an annual basis as well as the total over 10 years.

Growth = investing in new areas of the city (“greenfields”)

Renewals, growth and level of service, and level of service = investing in existing areas of the city

54 Our capital expenditure has three purposes: Proposed programme of capital investment by • renewing existing assets as they wear out expenditure type • providing better levels of service to our community such renewal 14% as better community facilities or improved environmental standards • catering for increased demand - most of which comes from growth 26% population growth.

Some projects and programmes of work deliver on more than one purpose, eg our transportation and three waters investment improves levels of service for today’s residents as well as providing level of for demand into the future. service 26%

growth and level of service 38%

55 LTP Programme of Capital Investment

700

600

500

400

Millions 300

200

100

0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Investment in resilience 3 waters intensification Maintaining and improving existing assets and services

Investment in growth areas Investment in community spaces and places Investment in transportation

Citywide investment in waters (Te Maunga and Waiari plants) Investment in city centre Growth assets by developers

56 Long-term plan programme of capital investment - $4.57b

What you will see from these graphs is that we are ramping up our capital investment each year for the first five years and maintaining a much higher level of capital expenditure each year through the 10 years of the Long-term Plan. The coloured sections for each year show the amount of spend in each of our big areas of spend and how much is investment to improve the lives of people who live here now.

Investment in community Growth assets by spaces and places developers Investment in growth areas ($0.5b) ($0.4b) ($0.7b)

Investment in resilience ($0.3b) Citywide investment in waters (Te Maintaining and improving Maunga and 3 waters Investment in transportation existing assets and services Waiari plants) intensification ($1.3b)* ($0.7b) ($0.4b) ($0.2b)

*$1.3b of transport investment excludes Investment in city centre ($0.1b) projects relating to growth areas and resilience. 57 The following graph shows who pays for this expenditure. It shows You will note that we are also relying on subsidies and grants to that ratepayers, now and in the future, will pay for a lot of this fund a lot of this expenditure. investment, but that developers and people building new houses and businesses will also pay their share. The transport investment $1.4b has already been agreed in partnership with Waka Kotahi and our regional partners: the Bay Who is paying for the investment over the 10 years of Plenty Regional Council and the Western Bay of Plenty District Council. We will be relying on these organisations to pay their share.

In particular, the grant share paid by Waka Kotahi is a key assumption in this Long-term Plan and a reduction or lack of funding for projects would mean these could not be undertaken.

Some of our proposed community facilities rely on partial funding from grants from other organisations. These grants are not yet in place as the proposals will be developed through the next few years. If we could not obtain this funding, we would need to relook at what facilities we could afford.

People paying rates and user fees over time What we are not doing… Projects totalling about $546m have been excluded from this Long-term Plan.

To review the impacts of service levels please see pg 64.

These can be viewed on our website at People who Developers www.nowforthefuture.co.nz build new homes and businesses

Other grants Grants NZTA

58 Options and questions

This section describes two options for capital expenditure in our priority areas. In each case, we have identified a ‘preferred option’, which is the one we think is best suited to achieving the right outcomes for Tauranga - now and for the future. An alternative option is provided for your consideration.

We are keen to hear your views on these options.

We are also keen to hear your views on some specific questions, including how to pay for these investments. This information can be found on pages 69-96.

59 Options and questions

Option Invest in our city now Our preferred option 1 and for the future

We’re proposing to invest $4.57b over the next 10 years City centre – revitalise the heart of the region, spurring the across the following areas. More information on the projects is local economy, encouraging private investment and providing provided on pages 30-53. a single council building to replace the three that are currently being used. The detail of the projects we are investing in for each of these areas is outlined in the supporting documentation at Resilience – strengthening the city’s ability to cope with www.nowforthefuture.co.nz. natural hazards such as tsunami, floods, landslides, erosion and sea level rise. Community spaces and places – replacing old facilities and building new ones, as well as maintaining, renewing and Delivery – improving our resources to ensure the 10 year improving our existing spaces and places. investment programme can be achieved.

Examples include parks, pools, reserves, community centres and a library.

Supplying land for homes and businesses – investing in infrastructure that will support improvements for existing residents as well as creating space for new homes and businesses.

Transport – helping people move around the city more easily and improve connections for local businesses.

60 Options and questions

The impact on rates and debt below is based on the full capital programme and operational services delivered as set Impact on service out in the financial statements. Significantly increases level of service around:

1. Transportation – multi-modal, improves safety, helps Impact on rates address increasing congestion issues as city grows and enables some better flow on key routes In 2022 the median residential property with a rating 2. Community amenity – provided through key value $655,000 would have a $7.58 per week increase and community infrastructure of aquatic facilities, indoor the median commercial property with a rateable value sports facilities, libraries, community halls and centres, $1,070,00 would have a $32.45 per week increase. active green spaces and sports field facilities. The average household using 171m3 of water would have 3. Housing and land supply - serviced residential housing a $2.24 increase per week based on the cost of water by land capacity for new growth areas and serviced meter increasing from $2.23m3 to $2.90m3. This increase business land supply for job and economic growth. includes the introduction of debt retirement in the water activity of $3.5m in 2022. Other impacts Over the remaining nine years the general rates increase would be an average of 4% per year and average total Greater transparency by having targeted rates that ring- rates (including targeted rates) would be an average fence funds for specific projects and debt retirement. increase of 8%. The amount of rate funded debt retirement would reduce if capital delivery is slower than budgeted as debt would Impact on debt also be lower. By end of year 10 total debt would be $1.7b

This requires rate funded debt retirement over 10 years of $600m

61 Options and questions

Rating impacts of Option 1 Detailed impacts by property value are outlined below. Note you can also use our rates calculator at www.nowforthefuture.co.nz

The rates increase in 2022 includes approximately $3.33 per week for the new kerbside waste collection service. For many households, the council’s kerbside service will be cheaper than what they are currently paying for waste contractors and rubbish bags.

62 Options and questions

Residential rates impact Increase per How this compares to the (preferred option) week price of milk 2l Low Residential (1%) $330,000 CV 16% (5% plus new waste service) $4.90 One bottle of milk per week

One and a half bottles of milk per Lower Quartile (25%) $530,000 CV 16% (8% plus new waste service) $6.55 week

Median (50%) $655,000 CV 17% (9% plus new waste service) $7.58 Two bottles of milk per week

Upper Quartile (75%) $820,000 CV 17% (11% plus new waste service) $8.94 Two bottles of milk per week

Commercial rates impact Increase per (preferred option) week

Lower Quartile (25%) $550,000 CV 27% $16.46

Median (50%) $1,070,000 CV 35% $32.45

Upper Quartile (75%) $2,140,000 CV 41% $65.36

Water-by-meter charge impact Increase per 2020/21 2021/22 Increase (preferred option) week

$2.90 / cubic Median residential water use (171m3) $2.23 / cubic meter of water 30.0% $2.24 meter of water

Fixed meter charge $33 $35 6.1% $0.04

63 Options and questions

Option 2 Invest some now and a little for the future

This would mean investing $546m less over the next 10 years. Resilience – projects addressed in the 10 years would be The reduction in spending would mean lower debt retirement constrained to $115m, not the $296m in option 1. This would charges, particularly from 2025. push out the time taken to address resilience issues across our assets to 90 years. If we choose option 2, the effects would be as follows. Delivery – we will have sufficient resources to achieve the 10 Community spaces and places – only Memorial Park pool year priority capital investment programme and to deliver the upgrade and a new central library would be built during the 10 services that our community expects as we will still gear up our years. organisational capacity in 2022 to achieve the planned level of capital delivery. Land purchase in the Tauriko and Te Tumu areas would still be undertaken.

Supplying land for homes and businesses – this has the same outcomes as option 1.

Transport – some Transport System Plan projects would not happen in the next 10 years including: park and ride and bus infrastructure, accessible street construction at Mount to Papamoa and Mount to Bayfair transport investment.

City centre – there will be fewer projects to revitalise the heart of the region – an example being the Memorial Park to city centre pathway not getting underway.

64 Options and questions

The impact on rates below is based on the adjusted reduced capital programme by $546m and operational services Impact on service delivered as set out in the financial statements. Some increases to level of service around:

1. Transportation – multi-modal, improves safety, helps Impact on rates address some of the increasing congestion issues as city grows and enables some better flow on key routes. In 2022 the median residential property with a rating value $655,000 would have a $6.65 per week increase and 2. Community amenity. Existing deficit in community the median commercial property with a rateable value infrastructure addressed in two areas. Some future- $1,070,00 would have a $30.21 per week increase. proofing for community infrastructure through land acquisition and commencement of development in 3 The average household using 171 m of water would have a other growth areas. $2.24 increase per week. 3. Housing and land supply – same as for option 1 Over the remaining nine years the general rates increase would be less than 4% average per year and the average Other impacts total rates (including targeted rates) would be an average increase of 7%. Greater transparency by having targeted rates that ring fence those funds for specific projects and debt Impact on debt retirement.

Debt will be $1.2b by the end of year 10 - lower than option 1 by $439 million (as capital investment programme is decreased).

65 Options and questions

Rating impacts of Option 2 Detailed impacts by property value are outlined below. Note you can also use our rates calculator at www.nowforthefuture.co.nz

66 Options and questions

Increase How this compares to the Residential rates impact per week price of milk

Low residential (1%) $330,000 CV 14% (3% plus new waste service) $4.37 One bottle of milk per week 2l

Lower quartile (25%) $530,000 CV 15% (6% plus new waste service) $5.77 A bit more than one bottle of milk per week

Median (50%) $655,000 CV 15% (7% plus new waste service) $6.65 One and a half bottles of milk per week

15% (8% plus new waste Upper quartile (75%) $820,000 CV $7.80 Two bottles of milk per week service)

Increase Commercial rates impact per week

Lower quartile (25%) $550,000 CV 25% $15.25

Median (50%) $1,070,000 CV 33% $30.21

Upper quartile (75%) $2,140,000 CV 38% $60.99

67 Options and questions

Share your thoughts! ? Questions Download the submission form

Please tell us your views on the overall proposal for capital expenditure across Supporting documents and links all six priority areas… These can be found on our website at www.nowforthefuture.co.nz

Which option do you support for these capital investment priorities for the city?

Option 1 - Invest in our city now and for the future (our preferred option)

Option 2 - Invest some now and a little for the future

68 Funding the six investment priority areas

We want you to tell us if we have the funding mix right to ensure we can achieve the investments in our six priority areas.

Rate funding options For rates we are proposing:

a. a greater use of targeted rates

b. to increase the commercial differential from 1.2 to 1.6.

69 Options and questions: targeted rates

We are proposing to use new targeted rates to improve Community facilities transportation, stormwater and community amenities (for more information on targeted rates see page 71). There is currently no significant targeted rate for community spaces and places such as libraries and parks. Targeted rates can only be spent on the things they were collected for. We propose to establish a targeted rate from 2022 to fund building projects and pay off some debt. We already collect some targeted rates for wastewater, water supply and resilience. Resilience We propose increasing these rates over time to pay off some A targeted rate for making our city more resilient to disaster of our debt (see page 100 for more information on ‘debt and climate change was established in the previous Long- retirement’). This will allow us to make further investments in term Plan. these areas. This rate initially funded the costs of resilience planning. We are now proposing to invest heavily in building projects for Stormwater resilience (which requires capital expenditure). We propose Currently, we use the general rate to fund investments in increasing the resilience rate to cover the costs of this stormwater. We propose making this a targeted rate so investment. people can see what they are paying for. Note that this option is not asking you about the level of Transportation investment and therefore the amount of targeted rates you want to pay. It is asking you about the structure of our rates There is currently no significant targeted rate for transport and whether you would like to have greater use of targeted investments. rates to ring fence revenue collected for agreed investment purposes. We propose to establish a targeted rate from 2022 to fund transport projects and pay off some debt.

70 Options and questions: targeted rates

Option Introduce new targeted rates for stormwater, transportation and Our preferred option 1 community facilities and to extend the resilience targeted rate to include capital expenditure

Targeting rates in this way would ringfence these funds to be spent on investment for agreed stormwater, transport, Impact on debt community facility and resilience outcomes. These rates would be calculated on capital value using the same differential as No effect on debt it is about the accountability and applied to the general rate. transparency of the rating system.

The resilience rate was established based on capital value but Impact on service not differentiated. It is proposed to move this targeted rate to also be differentiated. No impact as it is about how the rates are charged

Impact on rates Other impacts

No effect on rates collected it is about the accountability Greater transparency in that money is ring fenced for and transparency of the rating system. specific projects

71 Options and questions: targeted rates

Option No new targeted rates but continue 2 to collect through general rates

Not targeting rates in this way would mean that any budgets proposed to be ringfenced for these purposes would be Impact on rates collected through the general rate, which also funds all other activities that benefit the whole community. The general rates The amount of revenue required would not change, would be calculated on capital value using the commercial however, the percentage increase on the general rate differential. would be significantly more.

Not making the resilience rate the same differential as the Impact on debt general rate would mean that residential and commercial ratepayers would pay the same rate in the dollar. No effect on debt it is about the accountability and transparency of the rating system.

Impact on service

No impact as it is about how the rates are charged

Other impacts

The money would then not be ring fenced for those specified projects.

72 Options and questions: targeted rates

Share your thoughts! ? Questions Download the submission form

What do you think about the proposal for targeted rates?

Which option do you prefer?

Option 1 - Introduce new targeted rates for stormwater, transportation and community facilities, and to extend the resilience targeted rate to include capital expenditure (our preferred option)

Option 2 - No new targeted rates but continue to collect through general rates

73 Options and questions: commercial differentials

Do you support increasing the commercial Total rates by category: current differential? The differential is the amount of rates paid on commercial properties compared with residential properties. 20%

We are proposing to increase the commercial differential from 1.2 to 1.6.

A differential of 1.6 means that businesses would pay $1.60 for 80% every $1 paid by homeowners for properties of the same value.

The differential partly recognises that businesses can claim rates as an expense on their tax returns and reclaim GST. We can consider options to phase in this increase over time. Total rates by category: proposed

23% If the 1.6 differential is implemented in 2021/22, commercial ratepayers will contribute 23% of the total rate. This is 77% still considerably lower than other large New Zealand cities.

Residential Commercial

74 Options and questions: commercial differentials

Option Increase the commercial differential Our preferred option 1 to 1.6 in 2021/22

This would mean that commercial ratepayers would pay more than they do now while reducing the overall amount that Impact on rates residential customers pay. This recognises that commercial ratepayers benefit proportionally more from city-wide capital In 2021/22 the median general residential rate would investment than they are currently paying. reduce from $1,745 to $1,639 and the median commercial general rate would increase from $3,420 to $4,284.

Impact on debt

None

Impact on service

None

Other impacts

None

75 Options and questions: commercial differentials

Option Increase the commercial differential to 1.4 in 2 2021/22 and then to 1.6 in 2022/23 and onwards

This option would allow commercial property owners more time to adjust to the change. Impact on rates

In 2021/22 the median general residential rate would reduce from $1,745 to $1,690 and the median commercial general rate would increase from $3,420 to $3,866.

Impact on debt

None

Impact on service

None

Other impacts

None

76 Options and questions: targeted rates

Share your thoughts! ? Questions Download the submission form

What do you think about the proposal to increase the commercial differential? Supporting documents and links can be found on our website at www.nowforthefuture.co.nz Which option do you prefer?

Option 1 - Increase the commercial differential to 1.6 in 2021/22 (our preferred option)

Option 2 - Increase the commercial differential to 1.4 in 2021/22 and then to 1.6 in 2022/23 and onward

77 Other consultation topics

Ētahi atu kaupapa kōrero

78 Sale of Pitau Road village and Hinau Street village

After community consultation in 2018, Council decided to sell our nine elder housing villages to a public housing provider to ensure the long-term sustainability of public housing in Tauranga. The commissioners have already agreed We are currently in negotiations to sell the villages to Kāinga Ora to allocate $1.5m of the eventual sale – Homes and Communities, central government’s public housing proceeds to subsidise development provider. contributions on the development of new The intention is to provide for our community by reinvesting a papakāinga housing and new housing significant portion of the sale proceeds in housing. built by registered community housing As part of this process, we have considered the location and providers. redevelopment potential of each village. As a result of that consideration, and subject to public feedback, Council wishes to remove two of the villages – Pitau Road village and Hinau Street village – from the portfolio to be sold to Kainga Ora, and to sell them separately for private development.

Before a final decision is made, Council is consulting with the community on the future of Pitau Road village and Hinau Street village. The proposed sale of these two villages is intended to balance the wellbeing of tenants (affordable public housing supply) with the best interests of ratepayers (financial return).

Kāinga Ora are supportive of Council’s decision to consult on the future of these two villages.

79 Reasons for proposal and other options

Pitau Road Village and/or Hinau Street Village are Proposal separated from the elder housing portfolio and sold for private development.

Two villages – Pitau Road village and Hinau Street village – The units in these two villages do not meet today’s minimum are in central Mount Maunganui. design standards. They need significant redevelopment in the short to medium term to bring them up to current standards. However they are not located in a priority area for future public housing development.

As well as not being a priority area for public housing, their Tenants who currently live in these two high land value makes them less appealing to a public housing villages would still have a home. This provider. The combined estimated market value for these two is likely to be a unit in one of the other properties is approximately $18m to $23m. elder housing villages. This process Due to these combined factors, we are proposing to sell these would take time, so tenants would stay two villages on the open market for private development and to in their current units until another unit use the proceeds to support wider housing outcomes for the city. The commissioners have already agreed to allocate $1.5m of the becomes available. Tenants would eventual sale proceeds to subsidise development contributions be supported through this process, on the development of new papakāinga housing and new including financial support. The housing built by registered community housing providers. wellbeing of our tenants is our number The remainder of the elder housing portfolio (seven villages) one priority. would still be sold to a public housing provider, and will offer significant scope for redevelopment and intensification, allowing for increased public housing supply across Tauranga.

80 Reasons for proposal and other options

When selling Council-owned assets, we need to consider the best possible outcomes for our ratepayers, while being Impact on rates committed to achieving positive benefits for the community. Elder housing is not rate funded activity and has no This proposal balances these outcomes by offsetting the impact on rates. discounted price that the remainder of the portfolio (seven villages) is expected to be sold at. It also recognises that Impact on debt these two villages are not suited for redevelopment as public housing due to their location and high land value. It provides Proceeds from the sale will be used to deliver housing an opportunity for the funds to be used to enable positive outcomes across the city. Until they are spent, sale housing outcomes for the city. Additionally, we would consider proceeds will also lower Council’s overall debt position and how Pitau Road village and Hinau Street village could be therefore provide additional debt capacity to manage redeveloped to provide greater density and good design Council’s planned investment in infrastructure in the Long- outcomes. The intent is that the villages will be sold at the best term Plan. price consistent with the achievement of such other desired Council outcomes. This price is likely to be much higher than if Impact on service the sites were sold to a public housing provider.

Under this proposal the two villages will no longer be used for An initial decrease in the number of units available to be public housing in the longer term. Therefore, the transfer does not used for public housing (over time units would increase as raise any accountability, monitoring or conflict of interest issues. other villages are redeveloped).

Other impacts

Tenants in these villages would need to move. They would be offered a house elsewhere, most likely in one of the other elder housing villages.

81 Reasons for proposal and other options

Alternative Pitau Road village and/or Hinau Street village are option sold as part of the elder housing portfolio.

Impact on rates This was the Council’s decision in 2018. Elder housing is not rate funded activity and has no This would see these villages sold to a public housing provider. impact on rates. This could be one or more community housing providers or a consortium including one or more community housing providers or a central government entity. Impact on debt

If these two villages are sold as part of the portfolio to a Proceeds from the sale will be used to deliver housing public housing provider, it is likely to be at a discounted price outcomes across the city. Until they are spent, sale proceeds (50% or less of market value). The discounted sale price would will also lower Council’s overall debt position and therefore reflect that these villages would continue to be used for public provide additional debt capacity to manage Council’s housing, which is costly to build, maintain and deliver. planned investment in infrastructure in the Long Term Plan.

The tenants who currently live in these villages would remain in Impact on service their units but may be moved in the future, for example: if the villages were redeveloped. No impact. The current service would continue to be Retaining the two villages is not a reasonably practicable option. provided, but by another organisation. Council has already resolved to sell its elder housing portfolio and the process is well advanced. The issue for decision is solely Other impacts whether Pitau Road and/or Hinau Street villages should be sold separately from the other villages, and for private development None rather than to a public housing provider.

82 Reasons for proposal and other options

Share your thoughts! ? Questions Download the submission form

What do you think? Supporting documents and links To find out more about the sale of the elder housing Which option do you prefer? villages visit www.tauranga.govt.nz/elderhousing

To find out more about the Long-term Plan visit Option 1 - Proposal: Pitau Road Village and/ www.nowforthefuture.co.nz or Hinau Street Village are separated from the elder housing portfolio and sold for private development (our preferred option)

Option 2 - Alternate option: Pitau Road village and/or Hinau Street village are sold as part of the elder housing portfolio

83 Supporting community-led initiatives

Community grant funding supports community-led initiatives, which create positive change in our community through promoting the social, economic, cultural and environmental wellbeing of Tauranga residents.

Council currently funds numerous community organisations to help Council meet its community outcomes, through a range of methods. These methods include uncontested grants, service level agreements, subsidies on rates and user fees and charges, contested match funds, and contested external agency funds.

Our current approach is to consider ad hoc requests for funding as submissions to the Long-term Plan or annual plan. Feedback from community organisations and stakeholders about our current approach has highlighted a lack of transparency, fairness and consistency in funding support.

With this in mind we’re proposing a new community grant fund that would be supported by a Community Funding Policy. The policy will provide community organisations with clear direction on accessing potential financial support in a more transparent and structured way. The proposed approach will also ensure that the funding provided will align with and achieve council’s strategic objectives and outcomes. You can see the draft policy at www.nowforthefuture.co.nz

We need your feedback on how best to financially support community organisations.

84 Options and questions

Option Set up a community grants fund of Our preferred option 1 $1.8m per year

Council could establish a community grant fund where The advantages of this option are: applications would need to meet specific eligibility and criteria. Applicants could apply for a minimum funding amount • fair, transparent and consistent distribution of funding to of $10,001 and a maximum of $50,000. Grants under $10,001 community organisations would still be available through the Community Development • greater transparency of Council’s decision-making process Match Fund. regarding investment in the community and clarity for applicants Community organisations could also apply for a Partnership Agreement. These are agreements where a community • accountability and reporting requirements ensure that organisation would partner with Council over multiple years money is spent and used for the intended purpose and to deliver actions and programmes that align with community outcomes outcomes and council’s strategic priorities. • administration of a community grant fund can be The draft policy that supports the proposed fund also includes undertaken in an efficient and effective manner. requirements to ensure a fair and transparent process is It is anticipated that the level of funding would be reviewed undertaken in the assessment of applications, and that the and determined every three years as part of the Long-term reporting requirements would demonstrate the outcomes that Plan process. were achieved through the use of the fund.

Grants would be distributed through two funding rounds, spread equally throughout the year, with no more than 60% allocated in the first funding round- to ensure sufficient funds are available for future rounds.

85 Options and questions

Impact on rates

$6.1m additional rates required over the 10 years

Impact on debt

$4.6m increase in debt by the end of 2031 financial year

Impact on service

Increase in level of service and a much fairer, more transparent and consistent distribution of funding to community organisations to deliver actions and programmes that align with community outcomes and Council’s strategic priorities.

Other impacts

86 Options and questions

Option Retain the current approaches to community funding 2 and support

This option means we won’t create a dedicated community grant fund. The community organisations sector could Impact on rates continue to seek funding from Council through inclusion of requests for funding through the annual plan and Long-term None Plan submission process. Impact on debt If we continue with this approach, we will not address the issues that have been identified throughout the review None process and by key stakeholders; there will not be a fair and transparent approach to the distribution of funds to Impact on service community organisations; and it will be challenging to demonstrate how the approved funding aligns with our This option would mean a continuation of the current strategic outcomes. approach to community funding and will not provide a fair and transparent approach to the distribution of funds to community organisations.

Other impacts

Will not demonstrate a clear alignment with Council’s strategic outcomes.

87 Options and questions

Share your thoughts! ? Questions Download the submission form

What do you think of the proposal to set up a community grants fund of $1.8m per Supporting documents and links year… can be found on our website at www.nowforthefuture.co.nz

Which option do you prefer?

Option 1 - Set up a community grants fund of $1.8m per year (our preferred option)

Option 2 - Retain the current approaches to community funding and support

88 Our civic administration building

Our city centre is meant to be a social, cultural, and economic hub circumstances and will leave the Willow St civic site available to not only for us, but for the wider Bay of Plenty. prioritise community focused facilities.

It’s important that we do all we can to revitalise the heart of our This change will allow the council to have its administration region, provide the right environment to spur the local economy activities in one location (by 2024) providing a higher level of and encourage private investment. service, while eliminating the inefficiencies involved in staff moving between three separate buildings. Previously, through the Heart of the City Project, key activities around supporting development and growth in the city centre were This change in location for the civic administration building has identified and agreed. multiple benefits:

While recent times have brought about much change, the desire to • a single fit-for-purpose facility which can be occupied within create a thriving city centre still remains. Part of this was to develop three years, developed by experts in office developments the civic site at Willow St in accordance with a Civic Masterplan • activates an area in the city centre which is in sharp decline focused on community facilities and to provide a well located, accessible civic administration building that would fit the service • enables council to sell a complex council-owned site at fair needs of our community and enable our staff to best meet these market value (for which Council has for a number of years been needs. unable to attract interest at a market price)

The current civic buildings are at their end of life, pose a health and • enables the site where the council buildings are to be safety risk and are set to be demolished by the end of this year. developed into new city open space for the whole community Much of the civic administration activities have been relocated on to enjoy a temporary basis across multiple locations, • the sale proceeds will provide funding - therefore reducing the debt that council needs to raise for a new building. The decision to deliver a new leased civic administration building within the Willow Street Civic Masterplan area was previously Council believe that in conjunction with the new Farmers building confirmed/committed to in the 2018 - 28 Long Term Plan. However and the Regional Council building, this development will further greater benefits are now identified in locating the premises on reinvigorate Devonport Road and the southern part of the city a medium-term leasehold basis in a new office building built centre, encouraging new investment in retail and commercial by others on a council-owned site at 90 Devonport Rd. This activities. The new site is free of underlying land interests or site had been identified as being fit for disposal under the right complexities associated with delivering multiple new facilities in parallel on the Willow St site.

89 Investing in immediate delivery of a medium-term leasehold arrangement for civic administration enables Council to focus investment and redevelopment on higher priority community assets such as the much-needed new library/community hub. The council may still have the opportunity to build its own civic administration building back on the former Willow St site as a long-term option for investigation at a later date.

It should be noted that the sale of the land at Devonport Road to Willis Bond is dependent on Council leasing the new premises. The sale of this land has not been included in the following financials but will positively impact the broader commercial outcomes.

90 Options and questions

Option Proposed 2021-31 LTP Our preferred option 1 - Lease purpose build office 90 Devonport Road - 8000m2 over 15 years completed July 2023

This includes continuing the current lease arrangements across multiple sites for 2-3 years while design and construction of new premises occurs.

This would enable us to house all our staff in one location in the city centre in the immediate future while acting as a catalyst to activation of the wider city centre.

91 Options and questions

Impact on rates Impact on service

The rates associated with the leasing of the Devonport Increased level of service including: road site would be $4.0m to $4.3m per annum from 2024. • increased delivery of a broader range of services Average annual operating cost over 8 years $5.7m to $6.1m • fit for purpose services Impact on debt • greater accessibility for customers • efficiencies in productivity /time savings and resources The debt impact of leasing at this site would be $16.1m of capital fitout costs from 2023. Direct impacts on staff are: • more immediate relocation • staff no longer having to commute between buildings • relationships, decision making, and staff satisfaction are improved • health and safety, wellness and wellbeing of staff improved

92 Other impacts

Increased activation and placemaking within the city centre

Increased sustainability outcomes

Location-based efficiencies – adjacent to Bay of Plenty Regional Council.

*A range has been provided as premises subject to negotiation and agreement

93 Options and questions

Option Updated 2018-28 LTP - 2 Lease purpose build office located on Willow or Durham Street sites over 15 years - 8000m2 completed July 2025

This includes continuing the current lease arrangements across multiple sites for 3-5 years while design and construction of Impact on debt new premises occurs. The debt impact of leasing at this site would be $17.5m from 2025.

Impact on rates

The rates associated with leasing at the Willow Street site, which would take longer to achieve than the Devonport road site, would be $3.9m to $4.2m from 2026, (note: additional costs of accommodation to match the flooring footprint of option 1 in 2024-2025 are not included).

Average annual operating cost over 6 years $5.5m to $6.0m

94 Options and questions

Impact on service Other impacts

Decreased level of service including: Willow Street site requires a significant amount of work to be completed before premises can be built. • delayed relocation associated with a longer delivery programme Masterplan to be completed.

• staff continue to work from separate buildings for a Underlying land interests associated with ownership and longer and extended period. use to be resolved. • less connected council and community, multiple Reduced integrated planning outcomes with other city locations make harder for customers to connect centre projects currently being delivered. • increased need to find additional office leasing space to accommodate growth Less scope to negotiate cost efficient build / lease options. • inefficiencies of operation across multiple places and Constraints and risk associated with delivering two on a longer-term basis significant builds in the same location at the same time - library/community hub in parallel with civic administration. • delay in contribution to the overall city centre enhancements.

Direct impacts on staff are:

• staff continue to have to commute between buildings • relationships, decision making, and staff satisfaction are not improved • health and safety, wellness and wellbeing of staff not improved

95 Options and questions

Share your thoughts! ? Questions Download the submission form

What do you think of our proposal to lease a civic administration building to Supporting documents and links house all staff at the new location 90 This can be found on our website at Devonport Road? www.nowforthefuture.co.nz

Which option do you prefer?

Option 1 - Proposed 2021-31 LTP - Lease purpose build office 90 Devonport Road - 8000m2 over 15 years completed July 2023 (our preferred option)

Option 2 - Updated 2018-28 LTP - Lease purpose build office located on Willow or Durham Street sites over 15 years - 8000m2 completed July 2025

96 Infrastructure Strategy

Several plans and strategies provide the foundation for the Infrastructure Strategy. These include asset management plans What is infrastructure? and: The infrastructure covered by the Infrastructure Strategy, • The Water Safety Plan is the ‘hardware’ that provides core Council services. This includes structures, pipes and fittings, pumps, treatment • The Urban Form and Transport Initiative (UFTI) Final Report plants, reservoirs, roads, footpaths, bridges, as well as • The Tauranga Reserve Management Plan places and spaces such as libraries, community centres, • The Community Facilities Investment Plan reserves, sports and performance facilities. • The Te Papa Spatial Plan It does not include the airport infrastructure, Council’s ICT infrastructure, or Council’s administrative and property • The Western Bay of Plenty Transport Systems Plan infrastructure. You can read the full Infrastructure Strategy here.

Planning, constructing, operating and maintaining resilient and sustainable infrastructure is a core part of Council’s role in creating the places that our communities want to live. The Infrastructure Strategy, alongside the Financial Strategy, demonstrates how Council plans to do this.

Over the next 30 years we are planning to spend $2.3b of capital expenditure to renew and maintain the city’s existing assets and $6.8b on new infrastructure.

97 The “Three Waters” reform In July last year, central government launched the Three Waters Reform Programme, which aims to reform the way councils provide water services.

As part of this process, we and other councils are working with We own and operate $1.1 billion in infrastructure such as central government to find ways to improve water management water pipes and water treatment plants. These carry nationwide. debt of $400 million. They generate more than $57 million It is possible that new entities will be created to own water from usage and targeted rates, and a further $10 million infrastructure. These would be publicly owned, and the preference from assets vested to us. is for them to be collectively owned by the local councils they serve. However, this infrastructure is ageing and requires Steps will be taken to stop private businesses from buying the significant investment if it is to meet the needs of our water infrastructure over time. growing city. You will have a chance to share your views with us before any of Over the next 10 years, we propose investing $238 million in these changes are finalised. maintaining and restoring these assets (called ‘renewals’), Central government has proposed the following timeframe: $404 million in infrastructure improvements, and $1 billion in building new infrastructure in growth areas. • April/May 2021: The Government expects to announce policy decisions for public review. We are planning this investment regardless of any law changes, as it is vitally important for the health of our • Mid-2021: Legislation will be drafted and introduced to community and our economy that waters remain a priority. Parliament in the middle of the year for consideration and debate. The new legislation will be supported by a much stronger regulatory system than currently exists for water services. • Late 2021: We expect to engage with our community on the New laws are changing how councils manage water supply, proposed structure and whether we should take part. stormwater and wastewater. • End of 2021: Councils will be asked whether or not they wish to participate in the new system. For example, central government’s Te Mana o Te Wai requires councils to follow new requirements when managing fresh water. • 2023/24: The structure is likely to take effect. Other changes affect the safety of drinking water, the oversight of wastewater and stormwater networks, and who owns certain water-related infrastructure.

98 Te tahua a te Kaunihera o Tauranga

Our finances

Our Financial Strategy considers the increasing costs of a growing city and how those costs should be shared between us, our partners and developers. Details of the strategy can be found here.

It also considers an impact of rates and other costs including affordability and certainty for ratepayers.

99 Building blocks of the financial strategy - funding and financing

Tauranga already has high debt levels and under our current of approximately $0.6b over the Long-term Plan. This is due to borrowing limits we cannot borrow more without first paying down us approaching our overall financial limits. Options to avoid this some of our debt. Our approach to this Long-term Plan is to additional rating burden will be a key focus of work going forward. increase rates to pay to retire some of this debt each year so that we can do more investment. Our capital programme This means that our rates will be higher than they need to be to This Long-term Plan is driven by a need to provide more capital achieve a balanced operational budget. The additional rates will investment. It proposes that the right groups pay their share. As create an operating surplus that can be used to repay debt. was shown earlier, developers and people building new houses and businesses already pay for many of the costs of the infrastructure Over time this approach may not be the best way to fund our to enable them (growth infrastructure). new investment. We are also looking at other options, some of which are likely to be in place over the next couple of years and Where we are improving and maintaining assets and services in therefore reduce the need for the large amounts of debt retirement the existing city it is usually the ratepayer who covers the cost of proposed from year four onwards. these investments. We also rely on external funding, in particular, through NZTA for a share of our capital investment costs. The new These options, such as using the new legislation to have another community investments have assumed a portion of grant funding. organisation finance investment, have not been included in the Where external funding cannot be achieved the level of investment draft Long-term Plan as work is ongoing. However, if agreement would need to be reduced to remain affordable to the city. can be reached for these new options they may be included for consultation in future plans. Work also continues with sub regional partners in order to progress other options.

In summary, this Long-term Plan assumes a traditional approach of Tauranga City Council financing investment through our normal borrowing with debt paid back by ratepayers, developers and people building new houses and businesses. This results in a higher level of rating burden on Tauranga ratepayers. This may not be the best way to deliver investment and we will continue to work at a city, sub regional, regional and national level on better options. For example, currently we require rate-funded debt retirement

100 Relationship between capital expenditure level and rates- funded debt retirement

The capital programme now exceeds $4.57b over the 10 years of this Long-term Plan which means our debt increases proportionately to very high levels. If we are not able to meet the delivery of This has led to an infrastructure funding challenge for us. In the the proposed capital programme, then absence of other financing tools and, based on maintaining a debt rates-funded debt retirement will also to revenue ratio within LGFA limits, we have based this Long-term reduce to align with actual capital delivery. Plan budget on the full programme of capital delivery at $4.57b supported by debt retirement of $600 million across the major infrastructure activities of council.

This level of rates funded debt retirement would not be required if there was structural reform, such as three waters activities and This will be reviewed through future annual plans and the next their debt being transferred from council to an independent entity Long-term Plan. or further local government reform.

There are challenges around the deliverability of a programme of this scale – particularly around the transportation, resilience and community facilities programmes which are early in their development and at a scale not delivered to date by our council.

While we are building capacity internally and with our contracting partners, and government is looking to support this level of investment, we acknowledge that significant risks around delivery remain.

For further information on the Deliverability of our capital program please see pg 127.

101 The following chart shows that we can maintain a financially sustainable debt to revenue based on the rates assumptions in the draft budget including debt retirement. The yellow line shows the level of debt (after debt retirement and sources of capital revenue) that is associated with the $4.57b capital programme. We come close to the limits in the years from 2026 to 2028 before returning to levels that maintain some borrowing headroom.

Borrowing limits - debt to revenue

300% 295% 290% 285% 280% 280% 280% 280% 280% 280%

253% 254% 264% 261% 253% 250% 243% 230% 227% 214%

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

102 Impact on debt

As shown in the graph above, capital expenditure directly impacts the level of council debt. Because of the sustained growth and demands for more council-delivered infrastructure, our financials are continually under pressure.

This Long-term Plan would result in Council’s debt exceeding LGFA borrowing limits without the addition of rates funded debt retirement, or a substantial reduction in the capital programme (about $1.2b).

The high level of debt and the debt-to-revenue ratio through the middle years of the Long-term Plan increases the risk around our ability to respond to unforeseen events such as a natural disaster. The graph on page 104 shows the total level of debt in each year of the Long-term Plan.

103 Annual debt profile

$2,000

$1,500

$1,058 $1,028 $1,049 $999 $986 $990 $m $1,000 $837 $713 $589 $46 $50 $42 $54 $58 $453 $38 $500 $34 $30 $26 $22 $563 $584 $596 $573 $550 $416 $452 $512 $324 $369

$0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Growth debt Growth debt transferred to rates debt Rates and user fees debt

104 The portion of development contribution (DC) funded debt for new growth areas is declining later in the 10 years even though the growth pressures continue. There are two main reasons for this:

1. we have negotiated with developers for the new growth areas that they deliver the local infrastructure as vested assets. This has reduced the amount of infrastructure for these areas that we have needed to fund

2. the capital investment to enable new housing through intensification in existing areas is currently identified as loan funded. However, there may be opportunities to directly charge some of this spending to growth once we know more about the projects. Over time, growth debt would be expected to reduce as development contributions are collected to cover this debt.

There remains a risk that we will not be able to collect enough DCs to cover the costs of growth infrastructure. When this happens, the council can choose to transfer this debt to the ratepayer as has occurred in the past.

Total debt from growth that has been picked up by the ratepayer increases to $60m over the 10 years.

Infrastructure delivery has been timed to meet our city’s demands while remaining within LGFA borrowing limits. The Long-term Plan is based on addressing the city’s infrastructure deficit across community amenity projects being completed and funded by us rather than through third parties, which is generally the lowest cost option for ratepayers. However, we will continue to look at collaborative and alternative delivery options for infrastructure that may take pressure off our balance sheet without significant additional cost to ratepayers.

105 Operational revenue and expenditure

The above challenges also affect the operational expenditure • increase staff budgets to: of Council. The capital investment programme includes significant investment to address the infrastructure deficit – support the increased capital expenditure and to assure across transportation, community, three waters and resilience. quality The new kerbside waste collection service is also included from – meet increased community expectations for improved 2022. Capital investment flows through to operational costs of access, communication and engagement depreciation, financing of debt along with the cost of operating and maintaining new assets. – meet increased requirements for planning across the city – attract and retain the very best people we need to address Operational costs in this Long-term Plan are driven by: market movement in salaries and to reverse the salary • growth and associated large infrastructure investment and training freeze from COVID-19 (note: reversing these demands temporary savings accounts for $4m of the cost increase from last year) • investment for aging infrastructure – replace consultants with salaried staff to assist cost • an existing infrastructure deficit across community amenity. efficiency, adequately resource delivery and retain expertise in-house Our operating budget requirements have increased in response to the need to:

• provide what we need for our community in terms of contracted delivery and maintenance services across the business • provide for planning for our city and our investments • provide kerbside waste services • ensure adequate digital systems, security and performance (e.g. $173m capital investment to replace outdated systems and improve systems that interact with our community)

106 Operational expenditure (inflated) Operational costs over the 10 years

700,000

600,000

500,000

400,000

300,000 Expenditure $000’s Expenditure

200,000

100,000

0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Depreciation Finance Repairs and maintenance Employee costs Other operating costs

107 What our rates pay for*

The following graph shows the proportion of rates spent on each *Note that rates requirements for each activity are offset by net interest group of activities. It shows that three waters transportation not allocated to activities. spaces and places and sustainability and waste, which are our core services, account for 84% of our expenditure.

Wastewater 15%

Community Stormwater 12% services 9%

Economic development 1% Sustainability Spaces and places 19% Transportation 19% Water supply 14% and waste 5%

City and infrastructure planning 3% Regulatory and compliance 2% Emergency management 1% Support services 0.4% Financial Strategy limits

Quantified limits and targets

Quantified limits on borrowing Consistent with our Treasury Policy, Council will adhere to the following limits on borrowing:

• net interest expense on external debt as a percentage of annual operating revenue will not exceed 20% • net interest expense on external debt as a percentage of annual rates revenue will not exceed 25% • net external debt as a percentage of annual operating revenue (including Bay Venues Limited) will not exceed the borrowing limits set by the Local Government Funding Agency (see the table below).

109 Key financials for LTP inflated

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Capital programme ($m) 310 400 428 478 580 567 478 435 433 457

Net debt ($m) 799 984 1,159 1,322 1,539 1,653 1,688 1,674 1,627 1,594

Debt to revenue ratio (inc BVL revenue) 216% 229% 240% 242% 253% 250% 243% 240% 218% 206%

Debt to revenue ratio 230% 243% 253% 254% 264% 261% 253% 250% 227% 214% (inflated, excluding BVL)

Financial limit on borrowing 300% 295% 290% 285% 280% 280% 280% 280% 280% 280% (debt to revenue ratio)

Total rates ($m)* 235 269 303 363 412 442 489 516 545 568

Total rates increase (net growth) 22% 13% 11% 18% 12% 5% 9% 3% 3% 2%

*See next page for more information

110 *Rates breakdown 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

General rates ($m) 137 151 161 170 188 196 216 225 234 238

Limit on general rates increase 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% (net of growth)

General rates increase (net growth) 9% 9% 5% 4% 8% 2% 8% 2% 2% 0%

Kerbside collection ($m) 11 12 13 14 15 16 17 18 19 21

Other targeted rates including rates funded 54 67 86 130 158 175 196 208 221 234 debt retirement ($m)**

Water by meter ($m) 33 38 42 48 52 56 60 65 70 75

Total rates ($m) 235 269 303 363 412 442 489 516 545 568

Total rates increase (net growth)*** 22% 13% 11% 18% 12% 5% 9% 3% 3% 2%

Total rates increase (net growth) excluding 16% 13% 11% 19% 12% 6% 9% 4% 4% 2% kerbside

**Targeted rates are in addition to general rates and will be consulted on as part of this Long-term Plan. Given the nature of these rates (relating primarily to debt retirement and the timing and scale of capital expenditure) a percentage increase limit has not been set. The increase required will be determined by the level of investment. Targeted rates are included in the total rates increase above.

*** The large increase in year four is driven by debt retirement charges mainly in transportation and stormwater, the requirement for which will be dependent on capital delivery and waters reform.

111 Debt retirement included in rates

Debt Retirement Targeted Rates 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Stormwater ($m) 1.3 2.4 3.6 15.3 15.7 16.1 16.6 1 7.0 17.5 18.0

Wastewater ($m) 0.0 2.1 4.2 8.7 13.5 16.1 16.6 1 7.0 17.5 18.0

Water Supply (water by meter) ($m) 3.5 3.6 3.7 6.5 6.7 6.9 7. 1 7. 3 7. 5 7. 7

Transport ($m) 0.0 0.0 7. 4 18.7 19.2 19.7 20.3 20.8 21.4 22.0

Community ($m) 2.5 5.8 6.0 6.1 15.2 15.6 16.0 16.5 16.9 17.4

Resilience ($m) 0.0 0.0 0.0 3.6 3.8 3.9 4.0 4.1 4.2 4.3

Rates funded debt retirement ($m) 7. 3 13.8 24.9 59.0 74.0 78.3 80.5 82.8 85.1 8 7. 4 included in targeted rates

112 Rates and agreed limits on rates This Long-term Plan sees a proposal for higher targeted rates to fund activities or specific outcomes with the revenue ring-fenced The focus of the Long-term Plan is on what we need to do and for that purpose. These costs are to either: spend to achieve the desired outcomes for our city recognising the challenges and issues that our city is facing. Rating is one of 1. fund the cost of delivering specific services such as kerbside the ways we fund the needed expenditure. Other ways include collections, water supply and wastewater or direct charges to people using our services, subsidies and grants, developer contributions and shared arrangements or partnerships 2. a level of investment (including debt retirement) consulted on with other organisations. with the community.

Where we decide to fund activities or services by rates, Council Therefore, targeted rates are proposed to be not included in the must consider how to structure rates to determine how much overall limit on rates increases that has been applied to general different members of the community contribute and for what. rates. The Long-term Plan remains compliant with the limits for borrowing Quantified limits on rates increases and rates throughout the 10 years. In presenting rates limits for the Long-term Plan we have set a We are confident that we can maintain existing levels of service limit on the increase in general rates which are rates to cover the and meet additional demands for services within the rates and general expenditure and services of Council. Under the revenue and borrowing limits set. financing policy the areas covered by general rates are identified.

This quantified limit on rates increases sets the maximum budgeted increase in annual general rates collected per year based on the Long-term Plan budgets at 12%, which is the highest general rate increase proposed in year one of the Long-term Plan. This limit does not give an indication of the rates increase on different groups of ratepayers as this will vary according to rating structure and capital value changes. Because of the proposed changes to rating structure there is significant variation in rates increases amongst ratepayers.

113 Securities and financial investments

Policy on the giving of securities for borrowing Quantified targets for returns on financial Council will generally offer security for its general borrowing and investments and equity securities interest rate risk management activities by way of a floating Council’s quantified target for returns on financial investments and charge over rates revenue. Council recognises that utilising rates equity securities are: revenue as security lowers the risk involved for lenders and, therefore, will lower the cost of borrowing to the council. • they are better than the daily average of call, 30 day, 60 day, and 90 day bank bill rates as published by the New Zealand In the normal course of business, Council offers rates revenue Financial Markets Association. as security for its borrowing. Council offers security through a Debenture Trust Deed, which allows Council to provide security over rates revenue from time to time made by Council under the Local Government (Rating) Act 2002.

Where doing so would help further the council’s community goals and objectives, Council may offer security over an asset other than rates, on a case by case basis. Objective for holding and managing financial investments and equity securities Council’s investment objectives are included in our Treasury policy. Overall Council holds financial investments to manage its liquidity and funding risks. Its objectives in relation to these investments and equity are therefore that they:

• Contribute to the fundamental objective of managing liquidity requirements and funding risk, • Protect the capital amount invested, • Optimise returns in the long-term while balancing risk and return.

114 Policies for consideration

Alongside the proposals set out in this consultation document, we are seeking feedback on policies that support them. These draft policies are available on our website or from council offices.

Draft Revenue and Finance Policy

We are proposing some changes to this policy, including:

• an increase in the contribution from the commercial sector through differential from 1:1.2 to 1:1.6 from 2021/22 onwards; • a new targeted rate for kerbside waste collection • a new targeted rate for kerbside garden waste collection (optional) • a new targeted rate for stormwater infrastructure investment • a new targeted rate for transportation infrastructure investment • a new targeted rate for community amenity investment.

Go to: www.tauranga.govt.nz/council/council-documents/policies for a full copy of the draft policy.

115 Draft 2021/22 Development Contributions Policy

The Draft 2021/22 Development Contributions Policy and Council has been signalling the expected increase in citywide supporting Statement of Proposal are being consulted on development contributions for several years. The expected costs alongside the draft Long-term Plan 2021-2031. of completing the Waiāri Water Supply Scheme have increased over the past financial year and so the fee payable per household Development contributions are an important funding tool used has also increased from what was identified in the operative by Council to ensure that developers and the growth community development contributions policy. contribute towards the cost of providing infrastructure which enables growth in the city. Other changes to the 2021/22 Development Contributions Policy are outlined within the consultation documents for the policy and The operative 2020/21 Development Contributions Policy is include a change to the definition of household unit, clarifying the available online. way the maximum yield rule in the policy is applied and increased local development contributions for Wairakei and Pyes Pa West catchments.

The community can provide feedback on the proposed changes The most significant change to the 2021/22 to the policy through the same submission process as the Long- term Plan. Development Contributions Policy is that the citywide development contributions Go to: www.tauranga.govt.nz/development-contributions for a full will be increasing from current charge of copy of the draft policy. $12,208 per residential dwelling (including GST) up to $28,158 per dwelling.

The citywide development contribution is increasing because it is being used to fund the construction of the Waiāri Water Supply Scheme. If these costs are not funded via development contributions then they would be passed onto the existing community and likely result in a further increases to general rates.

116 For your reference

User Fees and Charges

We have reviewed the User Fees and Charges schedule for the 2021/22 year.

Go to: www.tauranga.govt.nz/council/forms-fees-and-payments/fees-and-charges for a full list of proposed charges.

Other supporting information

You can find significant assumptions and strategic direction used to develop the Long-term Plan at: www.nowforthefuture.co.nz

You can find groups of activities and performance measures for Council at: www.nowforthefuture.co.nz

117 Tauranga City Council rating comparisons

Median/average residential This graph is indicative only

$4,000

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

Nelson Dunedin Rotorua Hamilton Auckland Tauranga Wellington Christchurch Western Bay Queenstown

(median cv $615,000) (unitary-lv $278,000) (median cv $424,000) (median cv $540,000) (median cv $620,000) (average cv $839,296) (median cv $655,000) (average cv $508,000) (median cv $1,090,000)

(unitary-average cv $1,080,350) 118 Median/average commercial This graph is indicative only

$16,000

$14,000

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

Nelson Rotorua Dunedin Tauranga Hamilton Auckland Wellington Western Bay Queenstown Christchurch

(median $615,000) (median $540,000)

(median cv $495,000) (median cv $690,000) (median cv $1,070,000) (median cv $1,890,000) (average cv $1,858,000)

(unitary-average lv $765,000)

(unitary-average cv $2,863,000)(average suburban cv $879,000) 119 A note about your rates...

A 10% increase in our rates revenue doesn’t mean everyone pays 10% more on their rates bill. Your increase will depend on the services your property is charged for, what type of property you own, and the value of your property.

For an estimate of the rates changes proposed for your property please go to our rates calculator at www.nowforthefuture.co.nz

You can ask us to help you with this by calling 07 577 7000.

120 Our assumptions

Our forecasting assumptions:

• identify important trends and projections • assess risks that might impact us and our community.

These assumptions provide an essential basis for this Long-term Plan. They will be revised before the plan is finalised to ensure they use the most up-to-date and relevant information.

Below are some of the key assumptions we have used for our budgeting that have a degree of uncertainty.

121 Our assumption Risks Level of uncertainty Effect

Population Population and household Population and household growth will Overall level of High - The and household growth, and location of growth, occur faster or slower than predicted, uncertainty is potential financial projections align with Smart Growth and/or in different locations than medium. As with all impact of over or and locations projections assumed long-term growth under investing projections there in infrastructure is a relatively high based on modelling risk of short-term of the growth fluctuations as allocations, could periods of high be significant and low growth is experienced through a projection period

122 Our assumption Risks Level of uncertainty Effect

Climate Tauranga is subject to a range of There are certain probabilities of The probability Should an event change natural hazards. hazards occurring. of a large natural occur, and - natural hazard event depending on the hazards/ We have mapped most of the Probability modelling generally covers causing widespread scale of that event, events areas at risk of these hazards. 1-20 years to 1-2,500-year return damage to the there will be a need We have made that information periods. We have undertaken site- City, or parts of the for the Council publicly available and shared specific or citywide scale planning City is low however to be prepared it with affected land-owners/ for a number of hazards and are the consequences and respond communities. continuing to plan for and implement will be significant. accordingly to that new hazard modelling and planning for The most common need. Varying management wider community resilience to these. hazard event will approaches are in place for the be flooding from Significant financial hazards, which are governed intense rainfall costs may be through the LGA, RMA, BA or events which incurred due to a CDEM Acts. The future City Plan feature in over 90% significant natural review (in this Long-term Plan) will of our resilience hazard event bring a new regulatory approach projections. occurring. to natural hazard risk, and risk reduction.

Due to their unpredictable nature, this Long-term Plan

has not planned for any significant natural hazard events to occur during its lifetime which would require us to make significant investment in response (we do invest in susceptibility mapping, infrastructure- resilience planning and risk reduction through regulatory control).

123 Our assumption Risks Level of uncertainty Effect

Climate The consequences of floods are Our so-called ‘depth x velocity impact’ Moderate noting Should flooding change - consistent with our modelling studies are still to be completed. that there is events occur there stormwater program. modelling underway will be desires events The challenge will be to implement for 1-500-year from affected the full range of methods available to floods not yet community us within our flood risk approach and complete members for continue with the adopted approach. Council to amend its approach to flood risk management and invest in infrastructure delivery resulting in high capital costs to Council.

124 Our assumption Risks Level of uncertainty Effect

Climate Sea-level rise will affect all the Current projected rise indicates there High - While a High - Effects change - sea Tauranga harbour margins and may be a need to withdraw from some range of modelling can result in loss level rise open coastal areas in a variety of low-lying zones. and verification has of land that has ways, directly through sea level been undertaken, been developed, rise, and indirectly by exacerbating If sea level rise occurs faster than there is no clear or has further coastal hazards of storm surge predicted, the effects will also be felt confirmation of development and erosion as well as land-based sooner. which modelling potential affecting RCP will best land supply, hazards of liquefaction. There is a risk that a proactive represent our future infrastructure and approach to planning for sea-level rise Sea-level rise consideration of wider transport is not put in place. 1.25m by 2130 is directed through connections. NZ and BoP coastal policies for intensification and 1.6m for Loss of developable green-field development. Hazard or developable land modelling has adopted RCP8.5 will reduce TCC and 8.5+ for projections over the ability to provide for next 100 years. housing demand

Local That the business and structure Local government amalgamation High This may be high, government of local government in Tauranga processes have been undertaken in depending on the reorganisation will not alter within the lifetime of other regions. Within 10 years there level of change. this Long-term Plan. may be significant changes to our There could boundaries and to the nature of local be significant government in our region restructuring, reorganisation or establishment costs incurred. There would be associated financial and rating changes as a consequence.

125 Our assumption Risks Level of uncertainty Effect

Ownership We will retain ownership of Unanticipated changes to the High High - changes of water water supply and wastewater legislative landscape may cause could have a infrastructure infrastructure assets. significant changes to what we do and significant financial assets how we pay for it. impact on the way Note: Central government is we operate. currently undertaking a reform Failing to account for legislative reform of the way that three waters in this Because the three (wastewater, water supply and waters capital stormwater) is managed in New Long-term Plan could lead to programme is Zealand. unnecessary underinvestment in a significant infrastructure due to our balance sheet contributor to TCC In 2020 we signed a constraints. debt currently and memorandum of understanding over the next ten Since the timing and implications for with central government to years this reform the three waters reform is yet to be collaborate on the reform would materially confirmed by central Government, we programme, which proposes assist the financial may need to review this long-term significant changes to the future sustainability of once further information is available. provision of these services in New TCC and the extent Zealand. to which debt would need to be If the changes are implemented, reduced through these would affect some of the debt retirement information in this document. charges. No changes have yet been confirmed and this consultation document has been prepared on the basis that our management of these services will continue.

126 Our assumption Risks Level of uncertainty Effect

Delivering The capital programme in this The capital programme is larger High While there is a the capital plan is much larger than previous than we have delivered in the past. high chance that programme programmes. Significant changes are being made to the full programme our organisation and procurement and will not be delivered Adjustments have been made delivery processes to achieve this. in the timeframes to reduce expenditure in the budgeted, it is early years and move it into There are risks of delays in the early likely that the later years. This reflects possible stages of consent and design, and in delays for individual delays that are common in the procuring delivery from contractors. If projects will not be early stages of projects while this happens work will be deferred to significant. Costs they are designed, community later years of the Long-term Plan and of the total project feedback is sought, and affected programmes of work will be and a delay in consents are obtained. The main rephased accordingly. achievement of purpose of the adjustments is to desired community The financial implications of such ensure budgets for interest, debt outcomes may delays include lower borrowings and and depreciation are realistic. occur. a reduction in the need for rates- funded debt retirement in early years, Delays to projects although it is expected that most of where suppliers this would be undertaken in later years cannot be sourced, of the Long-term Plan. or prices are too high requiring Some government funding from crown longer negotiations infrastructure partners and NZTA or change in scope depends on delivery within prescribed of projects. Leading timeframes. Consequently, this work is to suboptimal being prioritised to be delivered on time. community If delivery of the capital programme outcomes is delayed, then proposed outcomes will not be achieved in the timeframes originally intended.

Renewals projects will be prioritised to ensure existing levels of service are maintained.

127

To the reader:

Independent auditor’s report on Tauranga City Council’s consultation document for its proposed 2021-31 long-term plan

I am the Auditor-General’s appointed auditor for Tauranga City Council (the Council). The Local Government Act 2002 (the Act) requires the Council to prepare a consultation document when developing its long-term plan. Section 93C of the Act sets out the content requirements of the consultation document and requires an audit report on the consultation document. I have done the work for this report using the staff and resources of Audit New Zealand. We completed our report on 4 May 2021.

Opinion

In our opinion:

• the consultation document provides an effective basis for public participation in the Council’s decisions about the proposed content of its 2021-31 long-term plan, because it:

¡ fairly represents the matters proposed for inclusion in the long-term plan; and

¡ identifies and explains the main issues and choices facing the Council and the City, and the consequences of those choices; and

• the information and assumptions underlying the information in the consultation document are reasonable.

Emphasis of Matters

Without modifying our opinion, we draw attention to the following disclosures.

128 Three waters reforms

Page 98 outlines the Government’s intention to make three waters reform decisions during 2021. The effect that the reforms may have on three waters services provided is currently uncertain because no decisions have been made. The consultation document was prepared as if these services will continue to be provided by the Council, but future decisions may result in significant changes, which would affect the information on which the consultation document has been based. The Council expects further consultation with the community will be required once there is greater certainty with respect to the proposals.

Uncertainty over the delivery of the capital programme

Page 101 outlines that the Council is proposing a capital programme that exceeds $4.57 billion over the 10 years of the long-term plan. While the Council has taken steps to deliver its planned capital programme, there is a high risk that projects could be delayed if suppliers cannot be sourced as outlined on page 127. To mitigate the impact that this may have on levels of service, the Council plans to prioritise renewals projects.

Basis of opinion

We carried out our work in accordance with the International Standard on Assurance Engagements (New Zealand) 3000 (Revised): Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. In meeting the requirements of this standard, we took into account particular elements of the Auditor-General’s Auditing Standards and the International Standard on Assurance Engagements 3400: The Examination of Prospective Financial Information that were consistent with those requirements.

We assessed the evidence the Council has to support the information and disclosures in the consultation document. To select appropriate procedures, we assessed the risk of material misstatement and the Council’s systems and processes applying to the preparation of the consultation document.

We did not evaluate the security and controls over the publication of the consultation document.

Responsibilities of the Council and auditor

The Council is responsible for:

• meeting all legal requirements relating to its procedures, decisions, consultation, disclosures, and other actions associated with preparing and publishing the consultation document and long-term plan, whether in printed or electronic form;

129 • having systems and processes in place to provide the supporting information and analysis the Council needs to be able to prepare a consultation document and long-term plan that meet the purposes set out in the Act; and

• ensuring that any forecast financial information being presented has been prepared in accordance with generally accepted accounting practice in New Zealand.

We are responsible for reporting on the consultation document, as required by section 93C of the Act. We do not express an opinion on the merits of any policy content of the consultation document.

Independence and quality control

We have complied with the Auditor-General’s:

• independence and other ethical requirements, which incorporate the independence and ethical requirements of Professional and Ethical Standard 1 issued by the New Zealand Auditing and Assurance Standards Board; and

• quality control requirements, which incorporate the quality control requirements of Professional and Ethical Standard 3 (Amended) issued by the New Zealand Auditing and Assurance Standards Board.

In addition to this audit and our report on the Council’s 2020/21 annual report and report on the disclosure requirements, we performed a limited assurance engagement related to the Council’s debenture trust deed, which are compatible with those independence requirements. Other than these engagements we have no relationship with or interests in the Council or any of its subsidiaries.

Clarence Susan Audit New Zealand On behalf of the Auditor-General, Tauranga, New Zealand

130 Ngā tukanga tuku kōrero

Having your say

131 We want your feedback on the issues our changing city faces.

You’re welcome to give us your feedback on the topics covered in We need your feedback before submissions close this consultation document, or any other issue you’d like to raise. at 4pm on Monday 7 June 2021 There are a range of ways you can provide feedback including If you’re making a postal submission, please ensure we receive it by the following sessions where you can simply talk to us and we will this deadline. ensure this is included in the formal submission process.

Come and chat with us at one of our events. Need help? Matua Hall 15 May, 9am-midday If you have any questions, or need help with your submission, get in Mount Sports Club 20 May, 4pm-7pm touch and we’ll give you a hand:

Greerton Library 31 May, 4pm-7pm Phone: 07 577 7000

Papamoa Surf Club 1 June, 4pm-7pm Email: [email protected] In person: Visit our Customer Service Centre at 91 Willow Street, Tauranga

132 How to do a written submission

• Complete the online submission form available at Submissions close at 4pm on Monday, 7 June 2021 www.nowforthefuture.co.nz If you’re making a postal submission, please ensure we receive it by • Scan your completed submission form and email it this deadline. to [email protected] Things to note Should you wish to speak to Council at the hearings you must still • Drop your submission form into our Customer provide a written submission outlining your main points. Service Centre, 91 Willow Street, Tauranga or at If you are hand-writing your submission please use a dark-coloured your local library. pen. • Place your completed form in an envelope and send it to this address (no stamp required): Need help? Freepost authority number 370 Long-term Plan 2021-31 If you have any questions, or need help with your submission, get in Tauranga City Council touch and we’ll give you a hand: Private Bag 12022 Phone: 07 577 7000 Tauranga 3143 Email: [email protected]

In person: Visit our Customer Service Centre at 91 Willow Street, Tauranga

Need more room? You can attach extra pages – just make sure they’re A4 and that you include your name and contact information.

Once the Long-term Plan 2021-31 is adopted, submitters will be sent a summary of key decisions.

133 Submission form

Written submissions may contain personal information within the meaning of the Privacy Act 2020. By taking part in this public submission process, submitters agree to any personal information (including names and contact details) in their submission being made available to Commissioners and staff. Submitters also agree to their name in their submission being made available to the public as part of the consultation and decision-making process. All information collected will be held by Tauranga City Council, 91 Willow Street, Tauranga. Submitters have the right to access and correct personal information.

*Compulsory field Ethnicity NZ European First name*: Māori Last name*: Asian Please state Organisation represented (if available): Pacific Please state

Other Please specify Postal address*: Gender Male

Daytime phone number*: Female

Gender diverse Email address*:

Other Please specify

Prefer not to say

134 Age: Do you wish to speak to Council in support of your submission (14 -18 June)? Under 16 Yes 16-24 No 25-35

36-45 If so, please indicate whether you would prefer

46-55 daytime

56-65 evening

66-75 We will contact you to arrange a speaking time. Each speaker is allocated 10 minutes. 76-85

86+ Would we be able to contact you again for feedback on other council issues? Prefer not to say Yes

How long have you lived in Tauranga? No Less than 1 year

1-2 years

3-5 years

6-10 years

More than 10 years

I have lived here on and off throughout my life

135 Questions

Building a great city now, for the future

1. Please tell us your views on the overall proposal for capital expenditure across all six priority areas

2. Which option do you support for these capital investment priorities for the city?

Option 1: Invest in our city now and for the future (our preferred option)

Option 2: Invest some now and a little for the future

136 Funding the investment priority areas

Targeted rates

3. What do you think about the proposal for targeted rates?

4. Which option do you prefer?

Option 1: Introduce new targeted rates for stormwater, transportation and community facilities, and to extend the resilience targeted rate to include capital expenditure (our preferred option)

Option 2: No new targeted rates but continue to collect through general rates

137 Commercial differentials

5. What do you think about the proposal to increase the commercial differential?

6. Which option do you prefer?

Option 1: Increase the commercial differential to 1.6 in 2021/22 (our preferred option)

Option 2: Increase the commercial differential to 1.4 in 2021/22 and then to 1.6 in 2022/23 and onwards

138 Other consultation topics

Sale of Pitau Road village and Hinau Street village

7. Which option do you prefer?

Option 1 - Proposal: Pitau Road Village and/or Hinau Street Village are separated from the elder housing portfolio and sold for private development (our preferred option)

Option 2 - Alternate option: Pitau Road village and/or Hinau Street village are sold as part of the elder housing portfolio

8. Any other comments?

Supporting community-led initiatives

9. Which option do you prefer?

Option 1: Set up a community grants fund of $1.8m per year (our preferred option)

Option 2: Retain the current approaches to community funding and support

10. Any other comments?

139 Our civic administration building (Council building)

11. Which option do you prefer?

Option 1: Proposed 2021-31 LTP - Lease purpose build office 90 Devonport Road - 8000m2 over 15 years completed July 2023 (our preferred option)

Option 2: Updated 2018-28 LTP - Lease purpose build office located on Willow or Durham Street sites over 15 years - 8000m2 completed July 2025

12. Any other comments?

Is there anything else you would like to tell us about this Long-term Plan? (Including the Draft DC Policy, Draft Revenue and Finance Policy or the Draft User Fees and Charges)

13. Any other comments?

140 14. Any other comments continued

Need more room? You can attach extra pages – just make sure they’re A4 and that you include your name and contact information.

Submission guidelines: • Should you wish to speak to Council at the hearings you must still provide a written submission outlining your main points. • If you are hand-writing your submission, please use a dark-coloured pen and write as neatly as possible.

141 Long-term Plan 2021-31 Consultation Document