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Tokomaru Fo B Fo B Mangaore Tokomaru Levin Shaon Opiki Ohau Kuku Manakau Foxton Waitarere Beach Foxton Hokio Beach WaikawWaikawa a Beach Beach This page has intentionally been left blank. Horowhenua District Council Annual Plan 2020/2021 2 Contents Introduction Welcome to the Draft Annual Plan 2020/2021 7 What’s coming up in 2020/2021 7 What’s Council’s Financial Strategy? 8 Council Activity Statements 11 Water Supply 13 Wastewater Disposal 21 Stormwater 28 Land Transport 34 Solid Waste 39 Communities Facilities and Services 45 Property 55 Representation and Community Leadership 60 Community Support 66 Regulatory Services 77 Council Financial Statements 89 Indicative Rates on Selected Properties 90 Funding Impact Statement 92 Financial Statements 100 Reserve Funds 106 Benchmarks Disclosure Statement 112 Accounting Policies 114 Significant Forecasting Assumptions 132 Definitions and Interpretations 137 Horowhenua District Council Annual Plan 2020/2021 3 This page has intentionally been left blank. Horowhenua District Council Annual Plan 2020/2021 4 Mangaore Tokomaru Levin Shaon Opiki Ohau Kuku Manakau Foxton Waitarere Beach Foxton Hokio Beach WaikawWaikawa a Beach Beach This page has intentionally been left blank. Horowhenua District Council Annual Plan 2020/2021 6 Welcome to the draft Annual Plan for 2020/2021. It sets out the services and projects that are planned to be delivered for the 2020/2021 financial year and how Council will fund them. For the 2020/2021 financial year, Council is largely planning to do what it said it would be doing in the Long Term Plan 2018-2038. The Annual Plan for 2020/2021 is Year 3 of the Long Term Plan 2018-2038. Our district is growing, and faster than we anticipated in the Long Term Plan 2018-2038. Statistic New Zealand have estimated that in June 2019 the district’s population was 35,000. If that growth continues, more than 50,000 people will call Horowhenua home by 2040. The transformation that is coming will create a whole range of pressures and opportunities that Council is taking a proactive approach to address. We are doing some exciting projects in this coming year; we will touch on some of these in this Introduction Section. The Activity Statements Section outlines Council’s activities and identifies key projects, costs and funding arrangements. Council’s financial statements are provided in the following section, which include the indicative rates tables. There are a number of exciting projects ahead for 2020/2021. As part of the consultation we want to hear your thoughts on establishing a splash pad at Jubilee Park in Levin and your ideas of what should be included in Council’s next long term plan which will be developed later this year. Key projects for the year ahead Council will focus on, alongside business as usual include: Planning new residential areas – the population increase predicted will require about 440 new houses every year. Creating a Destination Management Plan focused on making our district a great place to live, work, play and visit. Planning to improve al fresco dining areas on Oxford Street in Levin. Redeveloping Queen Street to better reflect the historical links between Lake Horowhenua and the Tararua Ranges and improve our environment. Moving the last of our wastewater discharges from disposal to a waterway to land-based disposal. Adopting the Horowhenua Integrated Transport Strategy and getting to work on many projects, including: advocating for more public transport options; a refurbished train station; connecting shared pathways; and, starting the process of working with NZTA as we plan for the Ōtaki to North of Levin expressway to be built. Horowhenua District Council Annual Plan 2020/2021 7 Council’s Financial Strategy is outlined in the Long Term Plan 2018-38. The Financial Strategy focuses on the Long Term Plan’s wider goal of managing growth while living within its means. A higher than inflation rate increase was identified for the first five years of the Long Term Plan to achieve Council’s financial goals of: Rate funding asset renewals – this means that the renewal of assets is funded through rates collected, rather than by relying on loans. Find alternative sources of income to fund growth projects – this means sources of income that is not rates (e.g. development contributions could be an option). Maintaining a balanced operating budget – this means Council’s revenue is equal to or exceeds operating expenditures so there is no budget deficit. By 30 June 2021 Council expects to have ‘net debt’ of $115m, compared to the Long Term Plan 2018-2038 prediction on $105m. Much of the reason Council has debt is to fund capital projects. This is to ensure future generations pay their fair portion of new assets that they will use. Debt is primarily used to fund growth related projects and new assets and to a lesser amount renewing assets where rate funding of these is inadequate to cover these costs in any year. Over the years key Wastewater, Water and Stormwater projects have been funded with debt and in more recent years major community facilities projects such as the development of Te Awahou Nieuwe Stroom and Te Takeretanga o kura hau pō have also been funded with debt. We are proposing a rates income increase of 6.90%. This is how much Council’s income from rates will increase for this financial year. It is not an average rate increase for properties across the district. Property specific rates increases will vary based on factors such as connection to services, differentials and valuations. The proposed rates income increase is 1.36% higher than projected in the Long Term Plan 2018-2038. Two key reasons for the increase include our new and improved recycling service and increased water rate (mainly for Levin). During 2019, properties across the Horowhenua were independently revalued. This will have an impact on the distribution of who rates are collected from, and what individual rates increases are. Each year, the Council’s budget in the Annual Plan sets out the amount of rates needed to keep the Horowhenua running. This total is then split across ratepayers using a combination of factors. Rating valuations are one of these factors used to calculate the amount of rates each property owner pays. A change in capital value or land value does not automatically mean rates Horowhenua District Council Annual Plan 2020/2021 8 will increase or decrease because of that change. It is proportional and depends on whether your property value has increased by more than average in comparison to other properties across the District. If you have an above average rating value increase you will likely receive an increase in your rates. Horowhenua District Council Annual Plan 2020/2021 9 This page has intentionally been left blank. Horowhenua District Council Annual Plan 2020/2021 10 Mangaore Tokomaru Levin Shaon Opiki Ohau Kuku Manakau Foxton Waitarere Beach Foxton Hokio Beach WaikawWaikawa a Beach Beach This page has intentionally been left blank. Horowhenua District Council Annual Plan 2020/2021 12 The Water Supply Activity aims to provide a safe and reliable supply of water to urban (residential, industrial and commercial) and agreed rural properties, which adjoin urban areas. Providing drinking water to defined urban and rural areas for Levin, Foxton Beach, Foxton, Shannon, Mangaore and Tokomaru. Management and maintenance of river intakes, groundwater bores, water treatment plants and storage facilities, pump stations, underground pipe networks and associated infrastructure. Implementing water demand management using tools such as the SCADA system and PRVs (pressure reducing valves). Investigating improvements and extensions to Council’s water supply network. Providing water for firefighting capability in areas where a Council reticulated water supply is provided and ensuring compliance with firefighting requirements in areas not reticulated. Ensuring compliance with relevant legislation: o Meeting resource consent requirements for water takes and assets o Meeting the Drinking Water Standards for New Zealand 2005 Respond to and resolve (if possible) complaints relating to the Water Supply Activity. District-wide improvements – renewals (to replace existing assets) – continuous condition surveys via CCTV and pressure testing analysis, programming replacement in line with road and footpath upgrades, assets that have become impaired and replacement of aged assets in the water network and at the water treatment plants. Water demand management - reducing leaks in the water supply network, including - education, working with the community to identify and reduce leaks, and technical solutions. Levin – growth area (to meet additional demand). Upgrade of existing network in the North East, East and South East of Levin to ensure network has sufficient capacity for anticipated growth in Levin. Ōhau and Waitārere Beach – feasibility study of the future supply of water services. Currently neither Ōhau nor Waitārere Beach have a reticulated water supply. This limits the size of new residential sections as residents are required to provide their own water supply on-site (or a developer provides a reticulated water supply network just for that development). The feasibility studies will be completed during 2019/2020, with the next steps considered by the Water Working Party. Water Working Party – consideration of requirements to ensure the District has a viable and sustainable water supply system to meet current and future needs. Horowhenua District Council Annual Plan 2020/2021
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