LONG-TERM PLAN 2021-31 REPORT NO. 2021/EXT/1731 ISSN NO. ISSN 1176-9750 ISSN NO. ISSN1178-6574 (e) Contents Ngā ihirangi Section One – Setting the Scene 114 Prospective Statement of Cash Flows for the periods 2021-31 ($000) 3 Contents 115 Prospective Summary of Capital Purchases for the periods 2021- 5 Chair and Chief Executive’s Message 31 ($000) 6 Our Region 117 Prospective Reserve Balances for the periods 2021-31 ($000) 7 Your Councillors 118 Funding Impact Statements by Group of Activity 8 Vision and Community Outcomes 127 Prospective Funding Impact Statement to 30 June 2031 14 Strategic Challenges 128 Rates Funding Impact Statement for the Year Ending 30 June 15 Summary of the Infrastructure Strategy 2022 17 Finance Strategy 140 Sample Ratepayers for 2021-22 23 Summary of Rates and their changes 141 Statement of Accounting Policies to 30 June 2031 24 Sample Ratepayers for 2021-22 155 Significant Assumptions 169 River and Drainage Scheme Reserves Summary for the periods 2021-31 ($000) Section Two – Our Activities 171 River and Drainage Scheme Capex Renewal Reserves Summary 26 Land and Water Management for the periods 2021-31 ($000) 36 Flood Protection and Control Works 173 Annual Administrative Charges for the Year Ending 30 June 2022 48 Biosecurity and Biodiversity Protection 187 Long-term Plan Disclosure Statement for the periods 1 July 2021 55 Regional Leadership and Governance to 30 June 2031 69 Transport 77 Investment Section Five –Policies Section Three – Infrastructure Strategy 193 Revenue and Financing Policy 82 Infrastructure Strategy 206 Significance and Engagement Policy Section Four – Financial Information 213 Rates Collection 108 Introducing the Finances 214 Council-controlled Organisations 110 Prospective Statement of Comprehensive Revenue and Expense Index and Audit Opinion for the periods 2021-31 ($000) 111 Prospective Statement of Financial Position for the periods 216 Index 2021-31 ($000) 218 Audit Opinion 113 Prospective Statement of Changes in Equity for the periods 2021-31 ($000) Setting the scene Te horopaki Chair and Chief Executive’s message He kupu nā te Heamana me te Tumuaki Kia ora and welcome to our 2021-31 Long-term climate change in Horizons’ Region, and passenger changes to property values and specific rating Plan (LTP). This document sets out how we plan on transport in regards to both improvements to inputs such as river schemes, biosecurity and managing the region’s natural resources for the next Palmerston North and Whanganui bus services and passenger transport. 10 years and what we will do to make our place a the Lower North Island Passenger Rail. Thank you to those who made submissions towards healthy environment, where the people thrive. As a result of submissions and deliberations, Council this LTP. We appreciate that any rate increase isn’t In planning for this LTP, Council workshopped the resolved to include additional funding to support ideal and want you to know that Council did not activities we are required to deliver, key challenges the Living Wage proposal for Public Transport Bus make these decisions lightly. It is always a fine our region faces and what needs to be put in place Drivers; to increase funding for the implementation balance between keeping rates at an affordable to mitigate and respond to these over the next of Feilding bus service enhancements; to fund level while ensuring we have the appropriate 10 years, all while weighing up the effect on rate remedial work on the South-East Ruahine River programmes in place as the work we do has a direct contributions. As a result, we identified a need Management Scheme; and to provide additional impact on your day-to-day life and on providing an to increase expenditure for some of our funding to the Environmental Education programme. environment we are all proud of now and for our work programmes. The 2021/22 targeted rate increase for the Upper future generations. Manawatu/Lower Mangahao River Management During our consultation period we received over 430 Scheme were also removed for the year and the submissions, of which we heard from 46 submitters target rating for two community biodiversity projects Ngā mihi nui in person. A large portion of these people provided was reinstated. feedback on the key issues highlighted in our LTP consultation document. These were how to fund There will be an average increase in rates across the Oranga Wai Our Freshwater Future - the work region of 8.4% for Year 1, 8.2% in Year 2, and 6.5% Rachel Keedwell Michael McCartney programme that will deliver central government’s in Year 3. It is important to keep in mind that these Chair Chief Executive National Policy Statement for Freshwater rates are only an average and the rate impact will Management, a new work programme to address differ from district to district due to factors such as 5 Our Region PART WAITOMO Manawatū-Whanganui Around WE HAVE Mean annual rainfall in the region RUAPEHU ranges from 900mm PART TAUPŌ 250,000 PART STRATFORD THREE TO OVER PEOPLE major river systems, two coasts and the call it home Central Plateau 2,000mm The Horizons Region WE HAVE ONE is made up of WE HAVE OF THE WHANGANUI SEVEN largest areas of hill 2.2 MILLION country in New Zealand HECTARES DISTRICTS MANAWATŪ - RANGITĪKEI and highest proportion of land (8% of New Zealand’s total land area), and approximately of highly erodible land plus 31,000 hectares of marine area 89% of any region of our ratepayers live in urban centres Approximately THERE ARE 206,000 OVER PALMERSTON NORTH 109,000 HECTARES TARARUA 35,000km HOROWHENUA RATEPAYERS or 18% of the nation’s versatile LAND USE IS: contribute to our soils are in the region of waterways in the work programmes Horizons Region WE HAVE OVER THERE ARE We also have two coasts with jurisdiction extending 230 40 LAKES 12 45% Sheep and beef 33% Native cover ESTUARIES 8% Dairy This includes 67 dune, NAUTICAL 5% Forestry 44 riverine, 24 landslide, in our region, including Manawatū MILES 9% Other 7 volcanic lakes and 88 Estuary, an internationally artificial reservoirs recognised RAMSAR site out to sea 6 Your Councillors Ngā Kaikaunihera RACHEL KEEDWELL JONO NAYLOR WIREMU TE AWE AWE FIONA GORDON JOHN TURKINGTON BRUCE GORDON Chair, Palmerston North Deputy Chair, Palmerston North Palmerston North Palmerston North Manawatū-Rangitīkei Manawatū-Rangitīkei 021 177 2790 027 569 0937 021 918 242 027 373 8277 027 445 8410 027 442 7462 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] DAVID COTTON NICOLA PATRICK EMMA CLARKE SAM FERGUSON WESTON KIRTON ALLAN BENBOW Whanganui Whanganui Horowhenua Horowhenua Ruapehu Tararua 027 442 5920 027 871 6459 021 498 156 027 827 7037 027 494 4497 021 374 984 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] The region’s six constituencies provide a total of 12 elected The chief executive is employed directly by the Council. The • Audit, Risk and Investment Committee representatives who form the governance body of Horizons chief executive, in turn, employs the staff of Horizons Regional • Catchment Operations Committee Regional Council, which is the trading name of the Manawatū- Council. The staff of the Council number approximately 265 • Environment Committee Whanganui Regional Council. Local government elections are full-time equivalents. Around 65 per cent of the staff are based • Linklater Bursary Sub-Committee run every three years, and the chair of the Council is elected at the head office in Palmerston North. The remainder are • Manawatū River Users’ Advisory Group by the members of the Council. The next election is due in located at service centres and depots throughout the region. • Passenger Transport Committee October 2022. The Council carries out much of its work through a number of • Regional Transport Committee standing committees. These are: • Strategy and Policy Committee 7 These outcomes form a key part of our Vision and strategic approach and align with Council’s community outcomes vision for the region: Tō tātou rohe – taiao ora, tangata ora, mauri ora. Te Wawata me ngā Hua ā-Hapori Our place – a healthy environment where people are thriving. Our community outcomes are what we aim to achieve to promote the social, economic, environmental, These community outcomes and our vision and cultural wellbeing of our communities in the present and for the future whilst taking a sustainable can only be fulfilled through Horizons development approach (Local Government Act 2002). working together with its communities. They are also a long-term commitment; As part of our Long-term Plan, they may take longer than the 10-year Horizons as a local authority, is period of this Long-term Plan to fully required to set out the region’s realise. community outcomes. For this Long- term Plan, Council has refreshed its Achievement of the community outcomes community outcomes. This review requires some level of prioritisation and was also an opportunity to reflect trade-offs. To that end, Horizons has four changes to the legislation in 2019. strategic priorities to inform the next three years. They are (in no particular order): The following are what Council Our region’s Our region has has determined to be the high level ecosystems are effective transport • Freshwater healthy networks outcomes that it pursues. They are: • Climate Change • Unlocking Information, and • Biodiversity Whilst these four work streams are strategic priorities, they are not all that Horizons seeks to achieve. The following section further describes each outcome and how our work programmes advance the region towards achieving them.