OURPLACE OURPLAN THE NEXT 10 YEARS TŌTĀTOU WĀHI : TĀ TĀTAU MAHERE - TE TEKAU TAU E HAERE AKE NEI - It's Our Place
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OUR PLACE OUR PLAN
TŌTĀTOU WĀHI : TĀ TĀTAU MAHERE
THE NEXT 10 YEARS
TE TEKAU TAU E HAERE AKE NEI
LONG-TERM PLAN 2021-31
CONSULTATION DOCUMENT
Submissions close
5pm Monday 19 April 2021
ASHBURTON : THE DISTRICT COMMUNITY MEETINGS:
OF CHOICE FOR LIFESTYLE
HINDS
ASHBURTON Monday 29 March 7-9pm
Hinds Community Centre
AND OPPORTUNITY
Monday 22 March 7-9pm
Council Chambers
MT SOMERS
MAYFIELD Tuesday 30 March 7-9pm
HAKATERE: TE ROHE KA WHIRIA
Tuesday 23 March 7-9pm Mt Somers Springburn School,
Mayfield Hall
Multipurpose Room
MŌ TE ĀHUA NOHO, ME TE HAPORI
RAKAIA HAKATERE
Wednesday 24 March 7-9pm Wednesday 31 March 7-9pm
Rakaia Rugby Clubrooms Hakatere Hall
METHVEN WEBINAR/VIRTUAL MEETING
Thursday 25 March 7-9pm Tuesday 6 April 7-9pm
Mt Hutt Memorial Hall, Function Room Facebook live / YouTube
It’s your chance to help us shape our future.
Māu anō e tārai i te āpōpō mō tātou.
Let us know at / Whakapā mai ki a mātou: HOW DO I MAKE A SUBMISSION?
www.ItsOurPlace.nz
Freepost to: In person by dropping it off at:
Freepost 230444 Ashburton District Council reception
PO Box 94 5 Baring Square West
Ashburton 7740
Online at: Email to:
ItsOurPlace.nz submissions@adc.govt.nz
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 3
CONTENTS RĀRAKI UPOKO
Our place: our plan / Tō tātou wāhi: tā tātou mahere 4
How does it all work? / Ka pēhea rā kā mahi? 6
What we’ve been up to / Ā mātou mahi 10
Our challenges / Te wero kai te aroaro 12
What decisions do we need to make? /
He aha kā whakatauka kai mua i te aroaro? 16
Drinking water meters 17
Elderly Persons Housing 20
What other projects are we planning in the next 10 years? /
He aha anō kā mahere kai tua, i kā tau tekau e heke mai nei? 24
Infrastructure Services / He ratoka whakariteka 26
Public Services / He ratoka tūmatanui 28
Regulatory Services / He ratoka waeture 30
The future of our infrastructure / Te anamata o tō tātou hakaka 32
How do we pay for all of this? 34
What will it cost? / He aha te utu? 35
Where will the money come from? / Ka ahu mai te pūtea i hea? 35
What does it mean for me and the rates I pay? / He aha te pāka ki a au me aku uturēti? 39
Proposed rate changes / He marohi panoni uturēti 40
Independent auditor’s report / Tā te kaitātari kaute kī 42
Feedback form / Puka tāpaetaka kōrero 44
4 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
OUR PLACE – OUR PLAN TŌ TĀTOU WĀHI: TĀ TĀTOU MAHERE
Our place is a great place! We live in a fantastic part of the world, with stunning scenery, great people, strong communities, and a prosperous
economy. We want this to continue and keep thriving.
Every three years we develop a 10 year plan which sets out our direction. It lets you know what we THE MAJOR DECISIONS WE NEED YOUR HELP WITH:
will be doing, how much it costs, and how we intend to pay for it.
Like all businesses, we have challenges as we head into the future. For us, this is the need for
additional investment to meet higher drinking water standards and improvements in freshwater
quality outcomes, increase resilience to climate change and natural hazards, and enhance
community well-being. We have developed our 10 Year Plan with these in mind.
WHAT HAS CHANGED SINCE OUR LAST 10 YEAR PLAN?
In our 2018 plan, we included projects to develop the EA Networks Centre, such as a climbing wall,
extending the swim school pool, splash deck and stadium, and developing sports fields. We have
left these projects out of this plan while we undertake further research into how best to use the
current space and where expansion will be most utilised. This will help ensure we are getting the best Should we install Should we aim to get our
outcome for your money. Our 10 Year Plan will be reviewed again in 2024, and these projects will be water meters on all Elderly Persons Housing
included at that point, if appropriate.
properties on our drinking self-funding, through
OUR PLAN FOR THE NEXT 10 YEARS IS TO: water schemes? incremental rent increases?
• focus on completing the projects we’ve started – deliver on your priorities
See page 17 for details. See page 20 for details.
• improve our infrastructure – particularly our drinking water supplies and roading network,
including the second bridge
• increase the resiliency of our district – make sure we’re ready for when the next challenge arrives
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 5
So the ball’s in your court. We only review this plan once every three
years, so don’t miss out. Read on. Give us your thoughts. And help us
build the future of our district together.
CR LIZ MCMILLAN CR CAROLYN CAMERON CR STUART WILSON
DEPUTY MAYOR
CR JOHN FALLOON CR LYNETTE LOVETT CR LEEN BRAAM
NEIL BROWN HAMISH RIACH
MAYOR CHIEF EXECUTIVE
CR DIANE RAWLINSON CR RODGER LETHAM CR ANGUS MCKAY
6 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
HOW DOES IT ALL WORK? KA PĒHEA RĀ KĀ MAHI?
Our plan (officially the Long-Term Plan 2021-31) outlines our direction for the future, including the services and projects planned and the
issues we are looking to address.
There are a number of other documents that are related to this plan. For example, our Infrastructure
Strategy sets out the big decisions we need to make over the next 30 years for our water and roading
assets. Our Financial Strategy sets out how we will pay for the projects and services we provide. And
these all sit underneath our vision, outcomes, and principles which show what we’re aiming for and
how we’ll work towards getting there – these are shown on the next page.
To help shape our plan, we asked you for some early feedback back in September 2020. We combined
this with other feedback we’ve received, such as that collected through our Annual Residents’ Survey,
to help shape the proposals we’re putting in front of you now. See ItsOurPlace.nz for a summary of
the feedback received.
KEY DATES:
SEPTEMBER 2020
Early engagement survey
19 MARCH – 19 APRIL 2021
Consult on draft plan
11-12TH MAY 2021
Council hearings and deliberations
30 JUNE 2021
Council confirms 10 Year Plan
1 JULY 2021
10 Year Plan is in place
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 7
You have until
5pm, 19 April 2021
to get your feedback in!
OUR STRATEGIC VISION
COMMUNITY OUTCOMES GUIDING PRINCIPLES
Ashburton District Plan Financial Strategy Infrastructure Strategy Other Council strategies
OUR 10-YEAR PLAN 2021-31
(including budgets & work programmes)
Activity Management Plans
Council policies Council bylaws Council plans
Performance monitoring and reporting
Annual Residents’ Survey Customer request monitoring Activity-specific monitoring Our Place campaign
8 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
n regional/nat
OUR STRATEGIC DIRECTION ent the d
istrict o
w ith o thers when ne
iona
l iss
eded ues a
pres partner nd
Re
Our strategic direction includes a vision, community outcomes
us economy ba
and guiding principles. pero sed
ros o o
A novat on & pportunit n
p i
in y
Le
ad
Our vision is the overall, future focused goal we are working towards.
the
s
ice
com
ice
Kā hua ki te hapori, our community outcomes, also look to the future and take a ‘whole-of-
Ab
erv
vo
mun
community’ view. They integrate social, cultural, environmental and economic well-being.
ala
ve a
rovide fi t r purposes s
We aim to contribute to these outcomes in every activity that we deliver, however, we cannot
nce
ity wi
included and ha
achieve these alone. We will continue working with numerous organisations (e.g. health, business, ASHBURTON DISTRICT –
d & su
environmental, community, government departments) who also contribute towards achieving
THE DISTRICT OF CHOICE
th clear and rationa
these outcomes through the activities and services they provide.
FOR LIFESTYLE AND
stainable en
fo
Ō tātou mātāpono, our guiding principles, set out how we will function and deliver activities and OPPORTUNITY
services to our community. Hakatere: Te rohe ka whiria
s are
mō te āhua noho, me te
hapori
viro
dp
ent
ld
n an
n
d
m
e
i
Have any questions?
s
c
en
Re
isio
Pla
t
n-m
See page 2 for how to get in touch
a
Ad
kin
is t ces
g
r ic t la
of gre dp
at spaces an
an W o rk ty
d eng with the communi ns
age i er satio
n meaningful conv
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 9
A prosperous economy based on
Residents are included and have a voice
A district of great spaces and places A balanced & sustainable environment innovation and opportunity
Ka whai wāhi, ka whakaputa kōrero kā
He tiriwā pai, he wāhi pai i tēnei takiwā He taiao toitū He ōhaka whai rawa i ruka i te aroka hou
kainoho
me te whai āheika
Our community feels a sense of belonging, Our community feels a sense of pride from We are proud of our natural and built We are a welcoming, enabling and business
inclusion, and social connectedness. We living in our district. We have safe, vibrant environments. We sustainably manage our friendly district that encourages local
celebrate our identity, heritage and cultural and thriving communities. We recognise and environment and natural resources to ensure economic development. We provide
diversity. We are an organisation that cater for the range of generations within our they can be enjoyed now and by future opportunities for people of all ages and at
collaborates with partners and engages in community. Our district is well connected, generations and recognise the vital role these all phases of life to enjoy a quality of living
two-way dialogue with our communities in and our social and recreational facilities play in sustaining our district. We actively within our District that is economically
order for them to have the opportunity to enable people to enjoy positive healthy support improving the health of our District’s sustainable and affordable. We recognise
influence local outcomes and decisions, and lifestyles. Our facilities and infrastructure are rivers, lakes and waterways. Our unique and manage the effects of population
to gain a sense of ownership of our plans, planned and developed to meet current and landscapes and indigenous biodiversity are growth and actively promote the District as
strategies and decisions. future needs. valued. Waste reduction, recycling, energy a destination of choice. We value the role our
conservation and efficiency, and water District’s natural, cultural and social assets
How success will be measured: How success will be measured: conservation are a part of how we all live. play in supporting economic development.
• Residents feel a sense of community with • Resident satisfaction with available local How success will be measured: How success will be measured:
others in their neighbourhood community facilities
• Residents feel they have opportunities to • Resident satisfaction with the general • Resident satisfaction with the state of the • Housing affordability index trends
have their say on Council business lifestyle opportunities available in our district district’s environment and biodiversity • Rental affordability index trends
• Residents believe they can influence • Resident satisfaction with Council’s • District GDP trends
council decision-making activity to care for the districts • Unemployment rate trends
• Numbers responding to consultations environment and biodiversity • Tourism spend trends
• Numbers participating in local elections • Council meets its resource consent
conditions for consents held (eg water
abstraction, wastewater discharges)
10 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
WHAT WE’VE BEEN UP TO Ā MĀTOU MAHI
We’ve achieved a lot since
our last 10 year plan was
adopted in 2018.
• Ashburton River Crossing and pump • Upgraded the Ashburton Resource
station project completed Recovery Park
• Trialled new filtration technology • On average, diverted 6.3 tonnes of
at Ocean Farm waste into recycling (one third of all
waste handled) each year
• Gained a 25-year network-wide
stormwater discharge consent • Completed over half the Ashburton • Adopted a Climate Change Policy
(Ashburton) CBD revitalisation
• Undertook a Representation Review
• Adopted a Surface Water Strategy • Replaced three Rangitata Diversion resulting in councillor numbers
Race bridges reducing to nine
• On average each year, we resurfaced • Allocated $1.2 million in funding to
111 km of road, applied 43,700 community groups and organisations
m3 of gravel to unsealed roads and each year
repaired 4,400 potholes, undertook
11,700m2 digouts and graded 8.7 km
of unsealed roads
For further information on the work we do please
refer to our Annual Reports at ashburtondc.govt.nz2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 11
• Adopted an Economic Development • Extended the Ashburton • Each year, we supported the local
Strategy Cemetery to meet our needs construction and property sector by
for the next 80 years processing on average 875 LIM reports,
• Became an ‘Established’ Welcoming 585 building consents, 828 Code of
Community • Adopted the 30 year Ashburton Compliance Certificates, 194 resource
Domain Development Plan consents, and 55 subdivision plans
• Organised or supported, an average
of 50 community events a year • Upgraded public conveniences • Restored the Cenotaph • Welcomed over 1 million • Each year, we promoted and protected
at the Ashburton Domain, Rakaia (war memorial in Baring users to the EANC, Library public health by registering over
• Announced as a Refugee settlement
Salmon Site, Lake Camp and Square West) and Museum 6,000 dogs, responding to 414 noise
area
Wakanui complaints, meeting with 121 alcohol
• Supported local businesses through • Introduced the popular licensed premises in our district and
Covid-19 by establishing a stakeholder • Invested resource to improve our ‘Burty Challenge’ school 126 premises with Food Control Plans
advisory group and ‘Open for connection with reserve boards holiday programme
and halls • Updated or developed 1-2 community
Business’ website • Introduced self-issue and response plans to support emergency
• Sale of commercial property return stations to the preparedness in our communities
contributed on average $2.9 million Ashburton Library each year.
to the general rate • Supported our community through
• Received $20 million from the the Covid-19 pandemic lockdowns –
government’s Covid-19 Response supporting meals-on-wheels deliveries,
and Recovery Fund to put towards cleaning and other admin tasks at
the hospital, and calling our over 70s
the new Library and Civic Centre –
residents living in our district
and construction is now underway12 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
OUR CHALLENGES TE WERO KAI TE AROARO
This document is all about getting your feedback on our plans for the future. But firstly, we want to let you know a bit about the challenges
we are facing, and how we plan on building the resilience of our district to be able to deal with them.
WATER REFORMS
Over the past three years, central and local government have been looking for ways to overcome the This is likely the greatest change in local government service delivery for many years. The
challenges facing our water services – that is, drinking water, wastewater and stormwater – known as government has stated it is their intention that our drinking water, wastewater and quite possibly
‘three waters’. stormwater assets and operations will pass to a new regional or multi-regional organisation that will
be responsible for managing these water supplies and services. Put simply, we as Council, may no
Both acknowledge that there are broader challenges facing local government and the communities longer be delivering these activities on your behalf.
that fund and rely on these services. In some parts of the country there has been underinvestment in
three waters infrastructure and persistent affordability issues. Alongside this is the need for additional We’ve signed a Memorandum of Understanding which committed us to working with Government
investment to meet improvements in freshwater quality outcomes, increase resilience to climate and other parties to look at the future delivery of our water services. This includes considering the
change and natural hazards, and enhance community well-being. The Government’s view is that following design features.
current service delivery arrangements are no longer fit for purpose and that reform is required.
• Water service delivery entities that are of significant scale (most likely multi-regional).
In response to this, in 2018, the Drinking-Water Standards for New Zealand (DWSNZ) were updated. We • Publicly owned entities, with a preference for collective council ownership and protections
have been working towards compliance over the last couple of years but there is still more to do. Some against privatisation.
of our schemes require costly capital upgrades which we have budgeted for over the next few years.
• Mechanisms for enabling communities to provide input in relation to the new entities.
Overshadowing the DWSNZ, the Water Services Regulator Act 2020 established a new Crown entity,
Taumata Arowai. The new entity will be responsible for administering and enforcing a new drinking
water regulatory system.
For further information, see our Significant Forecasting
Assumptions, Infrastructure and Financial Strategies
at ItsOurPlace.nz2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 13
You have until
5pm, 19 April 2021
to get your feedback in!
There is a timetable of approximately three years for the reform programme, running through to July We have not committed to joining any new entity. However, our
2023, comprising three main phases:
community will need three waters services whether or not we
• Late 2020: Councils sign up to a memorandum of understanding (MoU) agreeing to work deliver them. Therefore, our current planning, budgets and timing
together in good faith to consider multi-region groupings. We, along with every other eligible
council in New Zealand, agreed to this phase; but this has not committed us to anything further.
of projects in this 10 Year Plan is based on ‘business as usual’ (plus
• Sept-Dec 2021: Councils opt-in to multi-region groupings and begin the planning. At this point
the introduction of water meters) - albeit with the certainty that
we would decide to commit to joining a larger entity or not. water quality standards will increase. We will come back to discuss
• Early 2022: The new entities form and establish themselves, beginning operation somewhere any potential changes with you, once we have the full details.
in late 2022.
Each phase may be accompanied by funding. We received $7.9 million of funding in the first phase,
which we put towards the Ashburton Relief Sewer project which commenced in December 2020.
We expect Government to make policy decisions relating to the reforms in May 2021, to enable
legislation to be introduced later in the year. This will include decisions on the main design features,
number, and boundaries of the new water entities. Our council will be included in one of the entities,
but we will have the opportunity to ‘opt out’.
While we understand the general shape of the reforms, the specifics are uncertain. The effects are
likely to be felt in the areas of governance and funding, and consequently in prioritisation, if funds
and projects are considered regionally or cross-regionally.14 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
CLIMATE CHANGE With a rurally dominated community it is expected that our agriculture sector will be a source of strength for
our local economy as we move through the Covid-19 recession. While the local economy is looking to remain
We adopted our Climate Change Policy in 2019 which contains district-specific assumptions1. reasonably stable, the increasing difficulty to import goods and skilled labourers into New Zealand may
The greatest of these are those related to the increased severity and frequency of extreme weather impact the delivery of services and therefore our economy.
events. Extreme weather events represent a threat to people and property, including both public and
private infrastructure. We have assumed business as usual and have considered rates affordability when preparing our budget
forecasts.
Our challenges
• Economic and social impact on the farming community, and in turn the wider community, could NATURAL HAZARDS AND DISASTER EVENTS
be substantial.
Like many places in New Zealand, our district is geographically diverse, reaching from the mountain ranges
• Hotter summers may cause increased damage of transport infrastructure.
to the ocean. Because of this, our district is susceptible to a number of possible natural hazard events such as
• Increases in pests, diseases and weeds through higher survival rates during winter will affect both earthquakes, floods, and storms, which potentially damage property and threaten human life.
the agricultural sector and be a threat to native species.
The Alpine Fault has a 30% chance of rupturing in the next 50 years. If it does, it will have a significant effect
• An increase in drought and increased plant water use due to higher temperatures will increase throughout the South Island. To support our preparedness, we are strengthening our infrastructure to
agriculture reliance on irrigation. However, reduced snowmelt and rainfall will result in reduced supply. withstand the predicted strength of this earthquake.
Our opportunities
• Agricultural businesses in our district could be leaders in adaption and mitigation technologies as they
have been in the past. These could provide an opportunity to showcase and celebrate our ability in this
space with the wider community.
• Warmer temperatures, a longer growing season and fewer frosts could provide opportunities
to grow new crops.
• Increased migration, especially for climate refugees, could lead to our district being a more
diverse district.
• Conserving and enhancing intact ecosystems, such as wetlands, could help lessen the impact
of extreme weather events as well as providing ecological value.
We are a member of the Canterbury Climate Change working group looking to procure an assessment
of our own emissions and energy consumption. We are also focussed on ensuring our infrastructure is
resilient and will cope with changes to our climate.
COVID-19
In 2020 we saw the national economy take a hit as a consequence of Covid-19 and the lockdowns.
We have formed Covid-19 response groups to put in place measures to support the economic and welfare
recovery of our district. Where possible, we are buying local, and also encouraging others to do the same
through our ‘Mid Canterbury Open for Business’ directory.
1 Based on the Intergovernmental Panel on Climate Change warming scenario RCP 8.5 - a high baseline scenario.2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 15
The stopbanks that protect Ashburton and Tinwald from river flooding are designed to contain a one in 200 To try and alleviate this build-up of work, we have looked at the timing of major projects, and if possible
year flood. During heavy rain events river levels and stopbanks will be monitored by Environment Canterbury moved some to later years. This also helps to manage the impact on rates affordability. However, where
and close communications maintained with Ashburton District Civil Defence Emergency Management. there is an immediate need, or a regulatory deadline, this has not been possible. The strain on resources
required judicious decision-making and we will be having an increased focus on ensuring we deliver. We
We are in the process of updating our emergency response plans for all our communities so they are have employed extra resources into our project management team. Staff will also be reporting to the elected
prepared should a range of disaster events – flood, pandemic, wind storm, earthquake etc occur. members through six-weekly activity briefings to provide governance level oversight of these projects. We
feel we have got the balance right with this plan.
NATIONAL POLICY STATEMENT (NPS) FRESHWATER MANAGEMENT
OUR15,
Page CAPITAL PROGRAMME–
Our capital LAST THREE YEARS ACTUAL AND BUDGETED NEXT 10 YEARS
programme
The National Policy Statement for Freshwater Management 2020 provides local authorities with updated
direction on how they should manage freshwater under the Resource Management Act 1991. It came into 80,000
force on 3 September 2020.
Capital expenditure $000s
70,000
This NPS will significantly affect the way our district is farmed. There will be a flow on effect to our urban 60,000
sector if the forecasted reduced profits are realised. We have used funding from the Provincial Growth Fund 50,000
to employ an Agricultural Portfolio Advisor to look into the impact of this NPS and how we can minimise any 40,000
adverse effects on our agriculture-based economy.
30,000
RESOURCE MANAGEMENT ACT (RMA) REFORM 20,000
10,000
Central government have recently announced that by the end of 2021 new legislation will be introduced to 0
replace the Resource Management Act (RMA). It is expected the reform will have significant impacts for local Actual Actual Annual Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
government. 18/19 19/20 Plan
20/21
The RMA will be replaced with a new Natural and Built Environments Act (NBA) and a Strategic Planning Act
(SPA), in line with the recommendations of a review commissioned in 2019. The review also recommended Drinking Water Wastewater
Drinking Water Balance Urban Ashburton-Tinwald 2nd bridge
a new Climate Change Adaptation Act (CCA) be passed to deal with legal complexities surrounding managed Stormwater Stormwater Wastewater Transportation (excl 2nd bridge)
retreat from coastlines and other areas exposed to the impacts of climate change. Library & Civic Centre Transportation (excl 2nd bridge)
Library & Civic Centre Urban Ashburton-Tinwald 2nd Bridge
OUR WORK PROGRAMME Balance
We have one of our largest ever capital works programmes planned for the next 10 years. The peaks in the OUR RATES
first couple of years have been caused by works being delayed in 2020/21 due to Covid-19, and also the
stimulus funding we received from central government which has brought infrastructure projects forward. In Balancing the affordability of rates against the need to undertake some costly projects is a difficult
Page
task33,
we What we’veare
face. There budgeted to invest
some actions in our
we can infrastrcuture
take to increase the affordability today, such as:
addition, we set out an ambitious 10 year plan in 2018. In short, we have a lot of work to
get through! increasing debt to spread the cost across a longer period of time, using reserves (savings), or not
Drinking Water
fully funding Wastewater
depreciation (which reduces the amount needed from the general rate).
Most of the capital projects are required to be done now and they can’t be delayed or the level of services
However, these actions have Years 1- Years 1-
for you as our residents will be impacted. For example there could be more leaks or additional maintenance
10 $98m 10
required on our water and wastewater networks if we don’t complete the capital programme as planned. A impacts further down the $62.3m
significant project in years 1 and 2 of the plan is the Ashburton Library and Civic Centre which we consulted line. See page 38 for a full
Have any questions?
Years 11-
with the community on in 2019 and that we received strong submitter support to progress. The $20million discussion of the issues. 20 Years 11-
$78.8m 20
Covid-9 Response and Recovery funding we received last year for this project is a significant saving for our See page 2 for how to get in touch $41.5m
community. Years 21-
30 Years 21-
$90.5m 30
$46.9m16 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT WHAT DECISIONS DO WE NEED TO MAKE? HE AHA KĀ WHAKATAUKA KAI MUA I TE AROARO?
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 17
DRINKING WATER METERS
We provide drinking water to 70% of our residents through 12 schemes. However, we estimate we As more properties are built, more water is required. In simple terms, reducing the amount of water
could be losing up to 50% of our water from the system – either through leaks or inefficient use. that is lost from the system will increase the amount of available water in the pipe - meaning we
will able to provide more houses with the amount of water they require, with the infrastructure we
This project would put a water meter on every property on our water schemes so that we can detect already have.
any abnormal usage and fix any leaks that are identified. We want to be clear that the installation of
the meters is for leak detection, and therefore, we don’t intend to charge ordinary water users. Water is a resource that is necessary for our health, and for the health of our ecosystems that support
our essential flora and fauna. With climate change likely to increase the frequency and intensity of
Please note that this project excludes Methven-Springfield and Montalto water schemes as they already drought events around the world, it is more important now than ever, that we reduce the amount of
have restricted usage. water we are losing in order to protect and conserve this precious taonga.
We fund our drinking water supplies together in a ‘club’ rate (a targeted uniform annual charge). This In short, we need to reduce the amount of water that is lost from the system, and we think meters are
means that all properties connected to one of our drinking water supplies (again except Methven- the best way forward.
Springfield and Montalto) all pay the same charge.
BUT WILL THAT MEAN INDIVIDUAL PROPERTIES ARE CHARGED FOR WATER?
WHY DO WE THINK THIS IS A GOOD IDEA?
Our reason for installing the meters is for leak detection, and therefore, we don’t intend to charge
Water leaks are costing us - we still have to pump and treat the water (including the costs of chemicals ordinary2 water users.
and electricity) regardless of whether it is being used. At the moment, estimating our water loss is a
calculation which includes many assumptions. We don’t know how accurate this is. Water meters would
mean we would know more accurately how much water is being lost from the public network. They will
also help us to identify leaks in individual properties – meaning they can be fixed much quicker.
We already have meters on some properties. Any new house that is built in our district and connected We are losing up to 50% of our drinking water to leaks.
to one of our water supplies, has a meter installed. As do any connections that are renewed. Some We plan to install water meters on all connections to our
towns where we have had issues in the past with large leaks, such as Mt Somers and Mayfield, already
have them too. This means we already know how successful meters are for identifying and fixing leaks. drinking water supplies for leak detection. We do not plan
to charge for water in this draft ten year plan, but the future
In the future, when we are renewing water consents for our drinking water supplies, we will need to
demonstrate good stewardship of the water. If we want to increase the amount of water allocated to funding of water will be reviewed in three years’ time.
a water supply, we will need to show a need for more – and that this couldn’t be reasonably achieved
through reducing the amount lost. Data from the drinking water meters will allow us to do this.
2 See the Annual Plan 2020/21 for definitions of ordinary and extra-ordinary water users18 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
THE OPTIONS
How much will it cost me?
SPREAD OVER THREE YEARS
We would install water meters over three years, starting in 2021/22 and finishing by June 2024. • $0 Year 1
$10.50 Year 2
The full cost of the meters is $5.17 million, and we would loan-fund this across three years: $1 million in Year 1, and $31.70 Year 3
$2.06 million in Year 2 and another $2.11 million in Year 3. $48.60 Year 4
• Total cost: $5.17 m
The meters will be debt funded, with the debt paid back across 10 years by properties connected to a Council drinking
water supply. The repayment of some loan costs would begin from 2022/23, with the full loan costs hitting in Year 4. • Funded by loans – debt will increase by $5.17 million between Years 2-4
ALL IN ONE YEAR How much will it cost me?
Rather than spreading the cost over three years, we could install all meters in Year 1 (2021/22). • $0 Year 1
$52.60 Year 2
The meters would still be debt-funded, with the debt paid back across 10 years by properties connected to a Council $51.10 Year 3
drinking water supply. $49.70 Year 4
The repayment of the full loan costs would begin from 2022/23. • Total cost: $5 m
• Funded by loans – debt will increase by $5 million from Year 2
DON’T INSTALL METERS How much will it cost me?
Another option is that we simply don’t install the meters across the district. This isn’t our preferred option as we believe • $0
identifying the source of water loss is an important role of ours.
• Total cost: $0
At the moment our water loss monitoring is simplistic and is not going to reduce the amount of water loss we currently • Debt increase: $0
have when compared with the technology of water meters.
We know that future water consents will require us to prove our good stewardship of drinking water supplies.2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 19
Advantages
PREFERRED
• High likelihood of addressing the issue of water loss
OPTION
• Improved level of service for our community
Disadvantages
• Increased debt levels from Years 2-4
• May take 3-4 years to see the benefit of the meters on water loss numbers
Advantages
• High likelihood of addressing the issue of water loss, more quickly than the other options
• Improved level of service for our community
Disadvantages
• Increased debt levels from Year 2
• Rate increase from Year 2 to cover loan repayments
• We may need to reprioritise / delay other projects
Advantages
• No debt repayment increase to rates for the properties receiving this service
Disadvantages
• No significant progress made in identifying and reducing water loss
• No improvement to current levels of service20 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
ELDERLY PERSONS HOUSING
We own around 100 homes which we rent out to vulnerable residents aged over 65 years, who meet BUT IS THIS INCREASE AFFORDABLE FOR RESIDENTS?
a certain criteria.
We see the rental increase as affordable. Our rents are currently $20-100 below other providers of
It is intended that the rent received covers the costs associated with running the housing. However, similar type housing.
a backlog of maintenance has been funded from reserves (savings) and there is still more to do.
Unfortunately, the reserves will be fully depleted within four years at current rates of expenditure. In addition, some residents may be able to access higher accommodation supplements from central
government as the rent increases. Effectively, the increase that some residents see will only be a small
In July 2020, we amended our Revenue and Financing Policy to allow funding to come from the proportion of the actual increase.
general rate to cover the shortfall, and we have included this in our ten year budget accordingly.
We have also undertaken a comprehensive review of the service and we now have a plan for the The maximum of $170 per week for a single unit and $190 per week for a double unit is based off an
way forward. We want to get the service back to being self-sustaining. internationally adopted standard for defining affordability. This standard states that residents should
spend no more than 30% of their gross house hold income on housing costs3. Some single residents
To do this, we are proposing increasing rents by up to $20, to $110/week for a single unit and $130/ choose to live in double units, therefore they may pay more than 30% of their income on rent.
week for a double unit from 1 August 2021. Every year after there would be a $10 increase until they
reach $170 per week for a single unit and $190 per week for a double unit. We are aiming for these
rental prices as we estimate they will enable our Elderly Persons Housing activity to fund itself.
Within two years, the activity should be self-sustaining, and there should be no further need for
support from the general rate. We are, however, suggesting that in two years’ time another review Visit ItsOurPlace.nz
is undertaken to ensure we have achieved this. During this review we will also consider the ongoing
future of our portfolio, for example, such as whether another community housing provider would be
more suitable to manage the portfolio. to see our draft Elderly Persons Housing Policy which
will reflect the outcome of this decision.
3 communityhousing.org.nz2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 21
RENT / WEEK
PROVIDER
Single unit Double unit
Ashburton District Council $86.00 - $97.91 $110 - $123.67
Hauraki District Council $187.00 $187.00
Timaru District Council $120.50 - $150.50 $140.00 – $160.50
Dunedin District Council $117.00 - $121.00 $160.00 - $165.00
Waitaki District Council $145.00 $145.00
Westland District Council
$120.00 $150.00
(management outsourced)
Ashburton Housing and
Support Trust $185.00 $185.00
(Modern unit price)
Current market rent $235.00 $235.0022 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
THE OPTIONS How does this affect my rates bill?
If your property is worth more, you will contribute more.
SELF-SUSTAINING IN 2 YEARS Based on your property CV:
We would increase rents to $110/week for a single unit and $130/week for a double unit from 1 August 2021. There would then • $350,000 = $1.75
be an annual increase of $10 from 2022, until rents are at $170/week for single units and $190/week for double units.
• $700,000 = $3.50
This will raise an additional $1.96 million across the 10 years of the plan, resulting in only $135,000 needed from the general rate • $1 million = $5.00
and loan funding of $1.4 million.
• $10 million = $50.00
By 2023/24 the activity should be self-sustaining with no need to access the general rate for additional money, and with a reserve General rate is not required from 2023/24
balance of $285,000.
SELF-SUSTAINING IN 7 YEARS Based on your property CV:
We would increase rents by up to $10 per week from August 1 2021, which would be an increase to $100/week for a single unit and • $350,000 = $3.15
$120/week for a double unit and each year thereafter, until rents are up to $170 per week for single units, and $190 per week for
double units. • $700,000 = $6.30
• $1 million = $9.00
This will raise an additional $1.82 million across the ten years of the plan – meaning $930,000 less is needed from the general rate
than the current situation (assuming no loan funding, as proposed in option 1). • $10 million =$90.00
General rate is not required from 2027/28
By 2027/28 the activity will be self-sustaining, with no need to access the general rate for additional money, and with a reserve
balance of $260,000.
STATUS QUO – INFLATIONARY RENT INCREASES + GENERAL RATE Based on your property CV:
Under our current policy, rents increase by inflation (Consumer Price Index) each year. Any shortfall in funds required for the • $350,000 = $3.50
upkeep of the houses is then made up using the general rate.
• $700,000 = $7.00
In this scenario, expenses increase faster than rental income, meaning the general rate is required to pick up the shortfall –
increasing from $156,000 in 2021/22 to $294,000 by 2030/31. The reserves would be empty by 2025/26. • $1 million = $10.00
In this scenario, the portfolio is not self-sustaining and would become increasingly reliant on the support of all ratepayers through • $10 million = $100.00
the general rate. General rate is required on a continual basis2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 23
Advantages
Have any questions?
• Maintenance of units could occur in a timely manner,
improving levels
See page 2 for how to get in touch
PREFERRED
of service for tenants
OPTION
• General rate support reduced to $0 in 2 years
Disadvantages
• Reliant on general rate support for 2 years
• Rental increase for tenants
• Loan funding
Advantages
• Maintenance of units could occur in a timely manner,
improving levels of service for tenants
• General rate support reduced to $0 in 7 years
• No loan funding
Disadvantages
• Reliant on general rate support for 7 years
• Rental increase for tenants
Advantages
• Minimal rental increase for tenants
Disadvantages
• Increasing reliance on general rate
• Portfolio would not be self-sustaining
• No change to levels of service24 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT ASHBURTON : THE DISTRICT OF CHOICE FOR LIFESTYLE AND OPPORTUNITY HAKATERE: TE ROHE KA WHIRIA MŌ TE ĀHUA NOHO, ME TE HAPORI It’s your chance to help us shape our future. Māu anō e tārai i te āpōpō mō tātou. Let us know at / Whakapā mai ki a mātou: www.ItsOurPlace.nz
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 25 Visit ItsOurPlace.nz to learn what is proposed for our local services, activities and projects over the next 10 years and have your say. While you’re there, check out our free rates calculator to see what your rates could be in the years ahead.
26 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
WHAT ELSE ARE WE PLANNING IN THE NEXT 10 YEARS? HE AHA ANŌ K
Here’s some of our new infrastructure and projects we have in our plan for the next 10 years
YEAR 1 YEAR 2 YEAR 3 YEAR 4
Universal drinking water meters $5.2m
DISTRICT WATER MANAGEMENT NW Ashburton wastewater $1.8m Grit chamber pipeline renewal $3.2m
4 membrane treatment plants $15.3m
Ashburton relief sewer $1.6m UV disinfection upgrades $3.9m
Rakaia bore $462k Methven reservoir $609k
TRANSPORTATION
WASTE REDUCTION & RECOVERY ARRP upgrades $135k Re-use shop rebuild $760k Methven transfer station $1.3m
ECONOMIC DEVELOPMENT New Library and Civic Centre $49.8m Balmoral Hall upgrade $487k
Ashburton CBD Car park $1.5m
COMMUNITY SERVICES
Ashburton Domain playground $154k
PARKS & OPEN SPACES Walnut Ave promenade $812k
Baring Square East upgrade $3.3m
RECREATION FACILITIES2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 27
KĀ MAHERE KAI TUA, I KĀ TAU TEKAU E HEKE MAI NEI?
Projects that run across ten years
YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
Ashburton bore $686k Drinking water network renewals $19.4m
Stormwater capital upgrades $17m
Tuarangi Road wastewater service $1.1m
Ashburton urban second bridge $7.5m* Unsealed maintenance repairs (grading, potholes) $2.4m across the first 3 years
Compactor building (ARRP) $1.8m Sealed maintenance repairs (potholes, digouts etc.) $5.1m across the first 3 years
Reserve Boards and Memorial Hall upgrades $1.8m
Elderly Persons Housing upgrades $2.4m
District-wide Public toilet upgrades $3.5m
Ashburton Domain Central Hub $1.1m Assorted Ashburton Domain upgrades $2m
Ashburton Domain Water play $949k Festive lighting $417k
Ashburton Domain playground $166k
Library books $1.8m
Costs are rounded *Our contribution only28 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
INFRASTRUCTURE SERVICES HE RATOKA WHAKARITEKA
Our highlights for the next 10 years: Drinking Water, Wastewater, Stormwater, Stockwater, Transportation, and Waste Reduction & Recovery.
• Upgrades have been planned to ensure • Replace the wetland plants at Ocean
our water is safe to drink. We’re installing Farm across four years, starting in
UV disinfection on our deep groundwater 2022/23 at a cost of $2.1m.
supplies, and membrane treatment plants
on four water schemes in Years 2 and 3.
However, we are looking into whether
one plant could service all four schemes
(Methven, Methven-Springfield, Montalto,
Mt Somers) to make it more affordable –
so we’ll come back and discuss our options • Continue with our stormwater network
with you within the next two years, once upgrade programme - to increase our
this word is done. resilience against flooding and to improve
the quality of the water before it enters the
environment.
• Complete the Ashburton Relief Sewer • Drill additional water bores in Ashburton – to
• Continue with our
project (Year 1 Council contribution increase capacity, and Rakaia – as a backup in
drinking water network
$1.6m). case there are problems with the current bore.
upgrade programme –
spending $19.4m across • Upgrade/reline our sewer mains across
the next 10 years. the next 10 years at a cost of $16.1m.2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 29
• We’ve budgeted to start the detailed design in 2024/25 on the second
urban bridge connecting Ashburton and Tinwald. Construction
would begin the following year. The full cost of this project is estimated
to be $37m - we’ve included $7.5m of debt and funding in our financial
forecasts (20% of the project cost). We have planned on the balance of
the funding to come from Waka Kotahi ($18.8m - 51% of the project) and
central government - $10.7m (remaining 29% of project). • We’ll spend $15.3 million in the
We have put together a Strategic Business Case for Waka Kotahi (New first three years on reseals and
rehabilitation of our sealed road • Our temporary re-use shop at the
Zealand Transport Agency) to review, with the next step, depending on
network, and $3.5 million on Ashburton Recovery Park can’t be
their response, a Detailed Business Case. This would look at funding
re-metalling our gravel roads. used past June 2024 – so in 2023/24
scenarios. If the 80% government funding option isn’t their preferred
we’ll build a new one.
choice, we would need to reconsider the current Council decision to • Methven does not have enough
fund only 20%. Waka Kotahi have signalled that they are facing funding water storage – and one of the
constraints for their 2021-24 National Land Transport Programme. How reservoirs is at risk of failure in an
this will affect the years beyond 2023/24 is not yet known. Our current earthquake, so we will build an
view is that if we don’t get the full 80% of funding approved, we will not additional 500m3 reservoir.
go ahead with this project. If we were to fund any more than the 20%
we would need to discuss this with you.
• Continue our stockwater closure • Replace the Ashburton
programme – we’ve reduced the budgeted Recovery Park compactor
costs by $50k each year to reflect the building 2026/27 $1.8m, and
increasing number of races closed. build a new Methven transfer
station 2024/25 $1.3m.30 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
PUBLIC SERVICES HE RATOKA TŪMATANUI
Our highlights for the next 10 years: Community Governance & Decision-Making, Economic Development, Community Services,
Parks & Open Spaces, Recreation Facilities
• Provide annually $290k of contestable grants to our • Our previous plan included a climbing wall,
community, in addition to the $970k of grants to extending the swim school pool, splash deck,
community agencies such as Ashburton Art Gallery, • Develop a Parking Strategy and and stadium, and developing sports fields at
Safer Mid Canterbury, Ashburton Trust Events Ashburton CBD Parking Plan – the EA Networks Centre – we have paused
Centre, and Canterbury West Coast Sports Trust. and we’ve budgeted $1.5m in these projects while we undertake research
2021/22 to implement this plan.
on the best way to utilise the centre, and they
may be rescheduled in our next 10 year plan,
if appropriate.
• Upgrades to the Ashburton • Continue to fund tourism promotion through • Review the Sport & • Provide $1.8m for
Cemetery, including a secure a $195,000 grant – currently ChristchurchNZ Recreation Strategy the Reserve Boards
yard and soil storage area, undertake this work on our behalf. in 2022/23 (Year 2 of and Memorial Halls to
entrance road, and new fencing. our 10 Year Plan). undertake a programme
of upgrades over the
next 10 years.2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 31
• Various other projects including
improvements to Argyle Park, irrigation
and lighting improvements at the Domain
sports grounds and development of the
• Become an ‘Excelling’
Bowyers Stream area.
Welcoming Community.
• The first projects of the Ashburton Domain • Additional resources have been included to increase our • Complete construction on our new Library & Civic
Development Plan will get underway, including capability in biodiversity and to continue delivering the Centre building in 2022/23. We will also rejuvenate
the Walnut Ave promenade, Central Hub, level of service currently provided across our Parks & Baring Square East to complement the new facility
playground upgrades and water play project. Open Spaces activities. and CBD upgrades.32 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
Have any questions?
See page 2 for how to get in touch
REGULATORY SERVICES HE RATOKA WAETURE
Our highlights for the next 10 years: Regulatory Services, Regulatory Compliance.
• The reform of the Resource Management Act
indicated for 2021/22 by central government
will significantly affect our District Planning and
we will need to respond appropriately.
• We will continue to promote and protect public health • Include a new IL4 building as part of the
by inspecting 1,950 swimming pool fences, meeting with new Library & Civic Centre which will
1,000 alcohol licensed premises and 1,100 food premises be our designated Emergency Operations
with Food Control Plans, and conducting 68,000 dog Centre – with post-disaster functions.
registration transactions across the 10 years.2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 33 • We will continue to support the sustainable development and growth of the district and have budgeted to issue 8,750 LIM reports, 6,460 building consents, 7,560 Code of Compliance Certificates, 1,120 resource consents, and 750 subdivision plans over the next ten years.
34 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
THE FUTURE OF OUR INFRASTRUCTURE TE ANAMATA O TŌ TĀTOU HAKAKA
We have a number of decisions that will need to be made over the coming years to ensure our infrastructure will still be providing the levels
of service our community expect and need beyond 2031.
The main factors that we have taken into account when drafting our plan are: compliance with have thoroughly checked and corrected the information we hold on all of our assets, both water and
regulations; sufficient infrastructure to meet the demand and growth of our district; infrastructure that transportation.
is resilient and can withstand and recover quickly from disruptions; and that our spending is affordable
for our community. Roads, bridges, footpaths and other transportation assets are inspected regularly for defects and
condition to inform the upcoming renewal programme.
Our main focus in the short-term is around installing district wide water meters (see page 17 for the
full details on this project), and upgrading the Methven, Mt Somers, Methven-Springfield and Montalto We carry out a closed-circuit television (CCTV) survey of a selection of our wastewater pipes each year
drinking water schemes to comply with the new drinking water standards. We’re also continuing to to assess their condition and refine our renewals programme. We have not carried out formal condition
progress our plans for the second urban bridge across the Ashburton River. assessment for our non-reticulated three water assets however. Instead we use incidental inspections
(such as looking at assets and listening to motors) to warn us when assets may be close to failure.
In the 2030s, our wastewater resource consents come up for renewal, and we’re likely to see higher We accept that there are risks with this approach and that it could result in disrupted levels of service,
standards and expectations for nutrient loadings. To pre-empt this, we have made strategic land unplanned renewals costs and potentially increased maintenance costs.
purchases near existing facilities and we’re looking at different ways to deal with wastewater disposal
at our treatment plants, including subsurface irrigation. Our renewal strategy for three waters infrastructure is based on age (when assets like underground
pipes reach the end of their useful life), material and criticality with modifications made based on
We know our assets pretty well, but there is also a lot we don’t know. Some of our assets were built a analysis of maintenance records and customer complaints. This means we are generally funding our
hundred years ago, and it’s not always easy to understand the condition they’re in or to predict exactly renewals in line with depreciation. We will need to keep monitoring our rates of failure to ensure that
when they’ll fail. our renewal programme remains responsive to our infrastructure needs.
In the last five to ten years a lot of work has gone into improving our knowledge and understanding We’re also looking ahead at where new developments are happening and where we may need to extend
of our assets. In particular, we have implemented a new asset database for the three waters and our drinking water infrastructure.
See our draft Infrastructure Strategy
for more information at ItsOurPlace.nz2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 35
WHAT WE’VE BUDGETED TO INVEST IN OUR INFRASTRUCTURE
DRINKING WATER WASTEWATER
$98m Year 1-10 $62.3m Year 1-10
$78.8m Year 11-20 $64.1m Year 11-20
$90.5m Year 21-30 $75.1m Year 21-30
STORMWATER TRANSPORTATION
$26.8m Year 1-10 $234m Year 1-10
$18.6m Year 11-20 $251m Year 11-20
$22.3m Year 21-30 $301m Year 21-3036 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT HOW DO WE PAY FOR ALL OF THIS?
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 37
WHAT WILL IT ALL COST? HE AHA TE UTU? WHERE WILL THE MONEY COME FROM?
We look after about $1.17 billion worth of infrastructure, assets and facilities - that includes roads,
KA AHU MAI TE PŪTEA I HEA?
pipes, buildings and land, right down to the bins at the domains.
Generally, we collect rates to cover the cost of our operating expenditure and use loans and reserves
We also undertake the large task of running, regulating and monitoring all the goings-on that contribute to fund our capital projects. However, in Years 1-3 of our plan we are also using reserves to offset the
to where and how we live, work and play in our district. general rate.
We estimate it will cost us a total of around $576 million over the next 10 years to look after what we We use fees and charges to collect costs directly from individuals who use a service. We also try to get
have and provide all of our services (our operating costs). grants and subsidies where we can (such as the $20 million we received from the government’s Covid-19
Response and Recovery Fund in 2020), and have investments that give us a return – all of this helps to
It will cost another $354 million to upgrade our assets and build new ones (our capital costs). reduce how much we need from rates and loans.
Projected spend over the next 10 years Projected sources of revenue for the 10 years
Interest &
Total projected spend dividends 0.1%
Fees &
$929m 2021/22 - 2030/31
charges
Capital expenditure 12%
$354m (38%)
Subsidies
& grants
16%
Rates
55%
Other
Operating expenditure
revenue
$576m (62%)
18%38 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT
RATES
You have until
5pm, 19 April 2021
Due to Covid-19, we reduced the projected rates increase of 5.0% down to 2.6% for 2020/21. to get your feedback in!
This has resulted in some deferred costs, which are now in the first years of this 10 year plan.
We also have a significant programme of infrastructure work which is impacting the rates.
% rates increase for past three years and next 10 years
This means there are higher rates increases in the first few years of the plan. We have set limits on our
total rates, and how much rates can increase by each year.
• Total rates in any one year are to be no more than 1% of the total capital value of our district.
• Total rates increases in Year 1-4 to be no more than 5.0% each year, exclusive of LGCI.
• Total rates increases from Year 5 onwards to be no more than 3.0% each year, exclusive of LGCI.
LGCI, Local Government Cost Index, is effectively inflation
for councils. It is a value that is calculated specifically for
* Based on figures from the LTP 2018-28,
us, based on the price of items that councils use, such as Annual Plans 2019/20 and 2020/21
bitumen and civil contracting services. The amount that
affects your rates bill, is the rates increase plus LGCI. LGCI Average rate incr past 3 years (incl LGCI)
Rates incr Average rate incr years 1-10 (incl LGCI)
WE’RE USING THE FOLLOWING STRATEGIES TO REDUCE THE RATE RISE Depreciation
Reserves We rate for depreciation each year based on how much it would cost to replace an asset, divided by
its expected useful life. These funds are then used for any capital work that is required on that asset.
We generally use reserves (savings) that were created from selling capital to fund other capital Any funds that are not required in the year they’re rated for, are held for future expenses. We see this
projects. Reserves created through profits (our investments) are used to offset rates in the year they as fair, as this spreads the costs evenly across the ratepayers who use the asset over its lifetime. This
are realised. is the principle of intergenerational equity.
We have chosen to use $377,700 in Year 1, $300,000 in Year 2 and $500,000 in Year 3 from our Forestry However, due to our concern about the affordability of the rate rises, we have chosen to only fund
reserve (which contains $7.6 million) to offset the general rate. We believe this is the best option deprecation on the equipment at the EA Networks Centre to the value that is required for capital
to keep rates affordable for our community, while still ensuring we have reserves available for the works in the year we are rating for it. In addition, we have also only partially funded depreciation on
future. the Ashburton Library & Civic Centre building across our 10 Year Plan (this affects Year 3 onwards).You can also read
