2020/21 ABMAHERE PŪTEA Ā-TAU ANNUAL BUDGET PAPAIOEA PALMERSTON NORTH CITY YEAR THREE OF THE 10 YEAR PLAN 2018 – 2028 He iti rā, he iti pounamu Te Kaunihera o Papaioea Small city benefits, big city ambition pncc.govt.nz Palmerston North City Council AN INNOVATIVE 1. AND GROWING CITY ONE VISION A CREATIVE 2. AND EXCITING CITY Palmerston North A CONNECTED SMALL CITY BENEFITS 3. AND SAFE COMMUNITY BIG CITY AMBITION 4. AN ECO CITY Five Strategic Goals A DRIVEN AND 5. ENABLING COUNCIL. Introduction INTRODUCTION MAHERE PŪTEA Ā-TAU ANNUAL BUDGET Small City Benefits, Big City Ambition 5 ANNUAL BUDGET 2020/21 | Palmerston North City This Annual Budget was adopted by the Council on 24 June 2020 in accordance with the Local Government Act 2002. The Annual Budget states the Council’s intentions. It is based on the Council’s best information and planning at the time it was developed. If circumstances change, the Council may have to change its intentions. This is especially the case in light of current uncertain economic conditions. All the decisions in this document are reviewable, especially during future 10 Year Plans and Annual Budgets This is made clear in the Local Government Act 2002, Section 96: (1) The effect of a long-term plan and an annual plan adopted by a local authority is to provide a formal and public statement of the local authority’s intentions in relation to the matters covered by the plan. (2) A resolution to adopt a long-term plan or an annual plan does not constitute a decision to act on any specific matter included within the plan. (3) Subject to section 80, and except as provided in section 97, a local authority may make decisions that are inconsistent with the contents of any long-term plan or annual plan. (4) No person is entitled to require a local authority to implement the provisions of a long-term plan or an annual plan. 1 The Council uses the term “Annual Budget’ to represent the ‘Annual Plan’ required under the Local Government Act 2002 2 The Council uses the term “Annual Budgets’ to represent the ‘Annual Plans’ required under the Local Government Act 2002 6 Te Kaunihera o Papaioea | Palmerston North City Council Introduction Contents INTRODUCTION Goal 2 - Creative & Exciting City 39 Goal 5 - Driven & Enabling Council 70 He Mihi 8 Active Public Space Activity 39 Leadership Activity 70 A Message from the Mayor and Chief Executive 9-10 Arts, Culture & Heritage Activity 41 Corporate Support Activity 72 The Consultation Process 11 Commercial and Strategic Active Community Activity 44 Investments Activity 75 What we provide and what it costs the average ratepayer 16-17 Active and Public Transport Activity 49 SECTION 2 – Financial Overview and Forecast Financial Statements 18 Financial and Rating Information Annual Plan / Goal 3 - Connected & Safe Community 52 Here you can see what assumptions Budget Disclosure Statement 22 have been made in preparing the Connected Communities Activity 52 financial information. You’ll also see details about the rating system. SECTION 1 – Implementing Safe Communities Activity 56 Significant Forecasting Assumptions 79 the 10 Year Plan Rating System, Rates and Funding This shows what we’re planning to do, Goal 4 - Eco-City 58 Impact Statements 81 and how much it is expected to cost to implement year 3 of the 10 Year Plan. Rubbish & Recycling Activity 58 SECTION 3 – Groups of Goals and Activities – Biodiversity & Sustainable Practices Activity 60 Additional Information Introduction 27 Stormwater Activity 62 Goal 1 - Innovative & Growing City 31 Wastewater Activity 64 Levels of Service, Performance Measures and Targets 97 City Development Activity 31 Water Supply Activity 67 The Role and Structure of the Council 117 Strategic Transport (Roading) Activity 33 How to Contact the Council 123 Glossary 125 Economic Development Activity 37 Small City Benefits, Big City Ambition 7 ANNUAL BUDGET 2020/21 | Palmerston North City He Mihi Introduction Kei te mihi ake ki te pae maunga o Tararua me tōna taumata Te Ahu ā Turanga. Ko te awa e rere mai nei ko Manawatū. Ko Tānenuiarangi te tangata, ko Rangitāne te iwi, no reira ka tuku whakamihi ki te iwi o Rangitāne e pupuri nei i te mauri o tēnei whenua. Tini whetu ki te rangi, Rangitāne ki te whenua. Tihei Mauriora! The Palmerston North City Council respectfully acknowledges the local iwi Rangitāne and their customary relationship to this area, and Tūturu Pumau meeting house on the Te Hotu Manawa o Rangitāne o Manawatū Marae appreciates their manaakitanga of this City and all of the people who have made it their home. The Council remains committed to fostering and strengthening our partnership with Rangitāne. 8 Te Kaunihera o Papaioea | Palmerston North City Council Introduction A message from the Mayor Kia ora everybody This year’s Annual Budget – year three of Council’s 10 Year our pre-covid crisis proposal, which identified a need Our catalyst projects shaping our city to meet communities’ Plan focussed on city growth and vitality – was prepared for total rates income to increase by 4.4% – which was core needs and lifestyle aspirations beyond the short term for consultation before the seriousness of the Covid-19 also down from 5.2% projection in the 10 Year Plan. Any remain substantially on track, and we are now asking for pandemic crisis became evident. The last few months lower increase than 1.95% would threaten our ability to your feedback on one of our biggest projects ever – the have presented unprecedented challenges for people deliver city services residents now receive and derail our Nature Calls, city wastewater project. and businesses. These difficulties continue with variable opportunity to flourish as a regional city. I’m incredibly proud of how our community has rallied adverse impacts as our city and region implements its The real economic outcomes of the pandemic remain together to support each other through this difficult recovery plans and actions. unknown. We do know that, despite major impacts on city time. That is what great cities do. As we push through the The Annual Budget outlines how we will support and revenue and people’s livelihoods, Palmerston North is in headwinds, Palmerston North retains its small city benefits pay for smart, sustainable growth and wellbeing, that a stronger position than many of our peers. Our city had but also foundation for prosperity. We are in a position to ensures our infrastructure and facilities are in their best economic momentum ahead of the crisis (while national meet our immediate challenges and take our opportunities possible shape for now and future generations. Council economic growth was weakening in 2019), and we have to become the leading regional city in New Zealand. has taken into account the extraordinary economic and the resilience of a diverse economy that is strong in less- Ngā mihi social impacts of the pandemic in a reassessment of impacted sectors by the crisis, as well as uplift from a assumptions about costs, revenue and the availability of number of major infrastructure projects underway or in the external resources to deliver services and programmes. pipeline. It’s important that we now leverage significant funding opportunities being rolled out by the government, In striving to reduce immediate burdens and implement and that we are able to invest in and service major projects community recovery initiatives, while also safeguarding to stimulate economic recovery, employment and welfare, our city’s future, we have determined that total rates will and build up our platform for smart city growth in the need to increase by 1.95%. This is considerably lower than near future. Grant Smith (Mayor) Small City Benefits, Big City Ambition 9 ANNUAL BUDGET 2020/21 | Palmerston North City A message from the Chief Executive Positioning for Recovery and Opportunity Our Annual Budget 2020/21 is an important bellwether on The decision to more than halve the growth-targeted 4.4% external funding opportunities – both central government how well we are progressing our city vision of small city increase in rates proposed, down to 1.95% reflects the critical and private investments – in the post-pandemic local / benefits, big city ambition – the foundation of Council’s 10 hardships our community faces. In delivering significant global recovery climate. This includes working in smarter Year Plan 2018-28. savings, Council has worked hard through the budgeting and quicker ways, taking into account value propositions process to maximise efficiencies, while trying hard not to such as digital connectivity and service delivery. This year’s Annual Budget process was disrupted by the diminish our service levels, capabilities and weaken our global covid crisis that has challenged us all. The pandemic ability to meet community needs through this pressing time. Limitations on gatherings placed constraints on this year’s has underlined the valuable roles that local councils play in consultation process on the Annual Budget, however ensuring continuity of essential services and also welfare We also need to remain on the front foot and progress the Council values the public’s positive engagement in making assistance. It’s notable that over 20,000 people were assisted city under our vision for growth, vitality and wellbeing over submissions in April. in Palmerston North by our Emergency Operations Centre the longer term. While we have made some reductions during Covid-19 activation. in the immediate capital works programme and halted Palmerston North has the strategic direction, financial additional debt repayment in this budget, our pipeline of settings and recovery plans in place to keep our city on a Along with multiple individual and organisational-level capital investment remains solid and it is core to the city’s positive track.