Long Term Plan 2018-28 Te Whakamahere Whaaroa 2018-28 Contents
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Long Term Plan 2018-28 Te Whakamahere Whaaroa 2018-28 Contents Our Vision: Liveable, Thriving, Connected Communities 4 Our Community Outcomes and Goals 4 Key Decisions 5 Financial strategy 6 Balancing Affordability and Growth 6 Sustainable Growth 6 Maintaining Existing Assets 7 Better Services 8 Managing Debt 9 Affordable Rates 10 Balancing the Books 10 Good Investments 11 Planning for the Unexpected 12 30 Year Infrastructure Strategy (2018 – 2048) 13 Strategic Alignment 13 Context 14 Activity Management Practices 18 Strategic Issues and Significant Decisions 23 Most Likely Scenario 31 Key Infrastructure Activities 34 Water supply 34 Wastewater 36 Stormwater drainage 38 Roads and footpaths 40 Solid waste 42 Parks 44 Properties and facilities 46 Libraries 47 The Waikato Spatial Plan 49 Waikato: he reo kotahi 49 Significant Forecasting Assumptions 50 What we do 63 Governance 65 Sustainable Environment 68 Sustainable Communities 77 2 WAIKATO DISTRICT COUNCIL | Long Term Plan 2018-28 Roading 86 Stormwater 90 Wastewater 95 Water Supply 99 Organisational Support 105 Funding Impact Statement 107 Rating Base Information 113 Financial Planning 120 Long Term Plan Disclosure statement 131 Statement of Accounting Policies 134 Reporting entity 134 Basis of preparation 134 Significant Accounting Policies 135 Employee entitlements 142 Policies and Plans 145 Significance and Engagement Policy 145 Revenue and Finance Policy 145 Rate remission and postponement policies 150 Remission of Penalties 150 Remission & Postponement Policy – Maaori Freehold Land 150 Postponement Policy – Financial Hardship 152 Remission Rating of Community, Sporting and Other Organisations Policy 153 Land Protected for Historic or Cultural Conservation Purposes or Land Protected for Natural Conservation Purposes Policy 154 Remission of Uniform Annual General Charge on rating units with exceptional circumstances 154 Remission of rates – Other categories 155 Subdivision Development Remission 155 Postponement of rates for a new subdivision on the grounds of financial hardship 156 Remission Policy on Uncollectible Rates 156 Policy on Maaori participation in decision making 157 Water and Sanitary Services Assessment and Waste Management Plan Statement 158 Council Controlled Organisations 159 Strada Corporation Limited 159 Waikato Regional Airport Limited 159 Waikato Local Authority Shared Services Limited 160 Waikato District Community Wellbeing Trust 164 www.waikatodistrict.govt.nz/longtermplan 3 Our Vision: Liveable, Thriving, Connected Communities He noohanga aahuru, he iwi whai ora, he hapori tuuhono tahi Our Vision and Community Outcomes set the goals we want to achieve in everything we do. We have refreshed our vision to embrace the growth and changes we face. Our vision is that we work together as a district to build liveable, thriving, connected communities as our townships grow. Liveable communities are well-planned and people-friendly, providing for a range of quality residential options, social infrastructure, walkways and open spaces. They reflect what’s important to people, and support a shared sense of belonging both to the local community and the wider district. Thriving communities participate in Council decision-making and community-led projects, provide input into the management of their local assets, and sustain the local business sector that provides local employment. Connected communities have fit-for-purpose infrastructure to create liveable, thriving communities. Connectivity through roads, cycleways, walkways and digital capabilities enable rapid information sharing and engaging in activities together. By these means, people in connected communities access services and amenities that meet their social, health, education and employment needs. Our Community Outcomes and Goals Together with your Community Boards and Committees, we have developed the following community outcomes to guide our decision-making: Supporting our communities: Kia tautoko ki a taatou Haapori We consider the well-being of all of our people in all our planning and activities. We support and plan for the development of complete and connected communities. Building our economy: Ka hanga a taatou Oohanga We attract diverse enterprise/business; creating jobs and opportunities for our community. We continue to support our existing industry. We support others who leverage our location to ensure tourism brings benefits to a range of people in our communities. Sustaining our environment: Kia toituu to taatou Taiao We are a community that believes in environmental sustainability; we pursue and promote related ideas and manage regulatory processes to safeguard and improve our district. Working together with you: Kia mahi tahi taatou Our communities work with us so we are collectively focused on the right things at the right time. Providing value for money: Ka whai painga mo te puutea Residents and ratepayers get value for money because we find innovative ways to deliver strategic, timely and fit for purpose infrastructure and services at the most effective cost. OUR APPROACH When considering the financial picture, the Council’s overall approach continues to be: • Support growth in targeted areas • Maintain existing assets • Modernise infrastructure where it is prudent to do so • Do more within existing budgets • Move the cost of providing a service to those who use them ie. user pays 4 WAIKATO DISTRICT COUNCIL | Long Term Plan 2018-28 Key Decisions Sitting between Auckland and Hamilton, and within the golden triangle anchored by Tauranga to the east, our district is attracting new businesses and residents. We expect the number of our rateable properties will increase by about 6,500 in the next decade, from 32,000 to 38,500. Growth brings opportunities as well as challenges. In recent years we’ve worked to develop and maintain our infrastructure – our roads and waters services – to keep pace with this growth while seeking to maintain affordability for our ratepayers. The options presented in our consultation document focused on how we manage our ‘Three Waters’ services, and how we re-balance ratepayer contributions to General Rates by adjusting the Uniform Annual General Charge. During the consultation period between 14 March and 16 April, 733 submissions were received. Forty eight submitters presented their submissions to Council at the hearing on 16 May. The majority of submissions received were in relation to the two consultation items ‘Three Waters’ management and the Uniform Annual General Charge (UAGC). The table below summarises the submissions received in support of each option on the two consultation items. Category Option 1 Option 2 Option 3 Option 4 Total ‘Three waters’ management 69 47 65 309 490 UAGC 110 292 92 - 494 ‘Three waters’ management As shown in the table above the majority of submitters indicated their preference for option 4 - a professional Council- appointed Waters Governance Board. This was also Council’s preferred option. The Board would control the ‘three waters’ operations and service delivery, but the Council would retain ownership of the infrastructure and would continue to provide the background corporate support required so that the way our customers pay for their waters services would stay the same. Re-balancing ratepayer contribution to the General Rate As shown in the table above the majority of submitters indicated their preference for option 2 - reducing the UAGC to $351.96. This was also Council’s preferred option. When property values were reassessed in Waikato District in 2017 lower value residential properties in our townships had the highest increase in value. For example, some houses in Huntly West went up by more than 100 per cent compared with an average rise in value of 33.7 per cent across the district. This means the general rates burden is likely to fall more heavily on lower-value residential property owners than on other categories of ratepayers. Reducing the UAGC will help ease this burden. www.waikatodistrict.govt.nz/longtermplan 5 Financial Strategy Balancing Affordability and Growth The Council is achieving this by: • Doing more with existing budgets. • Moving costs of services to those who use them. • Maintaining existing assets. • Modernising infrastructure. • Supporting growth. Forecast growth will see a 20 percent increase in the number of properties (6,500) over the next 10 years. This is substantial and requires a significant investment in all the Council activities to achieve our vision for liveable, thriving and connected communities. Alongside this maintaining existing service, in an environment of increasing regulation and weather events is challenging. The Council will seek to provide value for money by finding innovative ways to deliver infrastructure and services. Within this context the Council has developed a financial strategy that balances affordability for those paying while supporting investment to allow for and arising from population growth. Sustainable Growth The Waikato district has been growing rapidly, our proximity to Auckland and Hamilton making us an attractive proposition for both business and residential development. Growth will occur in the Waikato due to factors outside of our control. How the Council responds to growth drives whether that growth enhances the council vision for liveable, thriving and connected communities. The Council’s forecast growth will mean 6,500 properties for 12,000 more people. Much of this growth will occur in towns (40:60 urban to rural population in 2019, rising to 43:57