Pre-election report TAURANGA CITY COUNCIL - VOTE
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TAURANGA CITY COUNCIL
Pre-election report
VOTE
VOTE
VOTE VOTE VOTE
VOTE2 TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
About this report
T
he Local Government Act 2002 As a result, we have included two sets of financials
requires the Chief Executive to for the next three years in this report: the original
adopted Long Term Plan budgets for 2017/18 to
prepare a Pre-Election Report
2019/20, and the amended financials for those
before each local government election. years should the Long Term Plan Amendment be
The goal is to provide information to the community adopted as proposed.
and prospective candidates to enable an informed
This report also sets out information about the
election debate around the issues and opportunities
major projects in progress or planned over these
facing the Council.
years, and identifies the key strategic issues facing
This report provides financial information for the Tauranga and the Council. These are linked to
three years preceding the election, this financial year our city’s population growth, its economic, social,
(2016/17) and the three years following the election. environmental and cultural wellbeing, future priorities
It is based on the information contained in Tauranga for transport and urban form. Together this should
City Council’s 2013/14 and 2014/15 audited Annual help readers consider how well the Council has
Reports, the estimated un-audited 2015/16 Annual performed to date, and what we have on our plates
Report, the 2016/17 Annual Plan, the Long Term for the next Council’s term of office.
Plan 2015-2025 and the proposed amendment to
For more information on Tauranga City Council, its
the Long Term Plan – “Creating Tauranga’s Civic
activities or financials please visit our website at
Heart”.
www.tauranga.govt.nz and refer to the Long Term
This proposed amendment is currently under Plan 2015-2025 or the latest Annual Plan for
consultation and the outcomes of the project will 2016/17.
influence the financials for the next three years.
Decisions are expected to be made by the end of
August.Pre-election Report
2016
Contents
4 WELCOME FROM THE CHIEF EXECUTIVE
5 WE’RE TRENDING
5 A snapshot of the city, its growth, its economy, and a look at
the years ahead
7 THE BIG PICTURE
7 Challenges and opportunities in building a great city
13 WHAT’S THE PLAN?
13 Key projects for next year and the three years after that
17 RUNDOWN
17 What we’ve been up to in the past three years
18 THE BOOKS
18 Our financial strategy
18 Financial position
21 Funding impact statements4 TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
From the
Chief Executive
O
ur city is changing rapidly. In October you will choose your future mayor and
Tauranga is growing fast, and councillors, those who will represent you in these
partnerships, and set the direction for our city on your
becoming more of a metropolitan
behalf. This report aims to give you an overview of the
city year by year. People and businesses key issues for the next few years – the big projects, the
are moving here, we are conducting strategic challenges and opportunities we need to look
major projects to reinvigorate our city into – and will add to the public discussion in the run-up
centre, and our suburban centres are to the elections.
growing too.
We want to build a successful city, a competitive city,
on the back of our growth. This is a city that balances
the four well-beings: economic, social, environmental
and cultural. Economic wellbeing should enable social,
environmental and cultural development. And social,
environmental and cultural wellbeing also create
economic opportunities of their own. We therefore need Garry Poole
to ensure our strategies, plans and projects deliver on Chief Executive
each of the well-beings.
In parallel we need to make sure our city can continue
to grow, to welcome more people and businesses while
improving lifestyle and amenity. This means planning for
growth and putting thought into our urban form and our
transport system. This will continue to be a big part of our
work, one of our biggest challenges in terms of financial
management, and a great source of opportunities to be
seized in the coming years and decades.
We can’t do all this on our own. Building a great city
requires a collaborative effort and successful partnerships
with public agencies, businesses, voluntary organisations
and Tangata Whenua. It requires co-investment and
thought leadership to help us through change and keep
our city interesting and new. It also requires a joint effort
to develop our city’s identity.
VOTEWE’RE TRENDING 5
We’re trending
Here’s a snapshot of our city, its growth, its economy,
and a look at the years ahead.
Growing population, growing city
This means there are new ratepayers joining us every
year, who help to pay to keep our city running and
great to live in, and use the infrastructure, facilities and
services. The growth in the number of ratepayers for
the past two years has exceeded what we’d projected
in the 2015-2025 Long Term Plan (LTP). This growth
2013 census 2015 estimate 2045 projection is anticipated to continue through the current year and
117,280 124,600 181,112 into 2018.
New rating units (ratepayers) each year
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
+616 +960 +1,249 +917 +960 +982
SmartGrowth projections used from 2017/18
There has been a major increase in people building new houses in Tauranga over the last two years.
New dwelling permits issued last year totalled almost 1,600 which is 86% higher than the ten-year
average. This trend is projected to continue through this year and the next.
Residential Building Development Contributions
Consents for New Builds (2011 - 2016)
(2011 - 2016) Citywide Development Local Development
Contributions Contributions
1600 $30M
1200 $22.5M
800 $15M
400 $7.5M
0 0
2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016
Developers and new home builders provide money to pay for the additional infrastructure required for a growing
population. Development contributions received last year totalled $27m which is 79% above the ten-year average.
Higher than budgeted development contributions are expected to continue through this year and the next.6 TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
Jobs and economy
Our economy is And we have more Meaning less
healthy jobs to go around unemployment
4.6% GDP growth vs 3.6% 3.7% growth in employment 4.6% for the Bay of Plenty
national average vs 2.4% nationally against 5.7% nationwide
But they’re mostly And not in knowledge
lower-paying jobs intensive industries
$51,070 vs $56,030 mean
29% vs 32% nationwide
annual earnings
Statistics NZ March 2016 labour market statistics, Infometrics 2015 economic profile, Westpac Regional Roundup May 2016
Building and running the city
Your Council currently owns
$3.4 billion Set against Overall,
WORTH OF $297 million our city has equity
OF
physical assets OF NET DEBT
(facilities, infrastructure,
property etc.).
at 30 June 2016 $3.2 billion
Decisions are made by
Rates will help cover your 11 Elected Members:
And we’ll spend one Mayor and
$143 million
OF THE $140 million 10 Councillors
operational costs (capital expenditure) And they’re implemented by
of running the city ON Council’s approx.
infrastructure & assets.
this coming year. 600 staff along with our
contractors & consultants.THE BIG PICTURE 7
THE BIG PICTURE
The big picture
Challenges and opportunities in building a great city
With every challenge come opportunities. Our job as a council is to face these challenges and embrace the
opportunities they present. Think of our growth: successfully accommodating more people and businesses has a
cost, but also exciting potential return on investment – vibrancy, talent, economic activity, diversity, fresh thinking and
innovation. We need to champion the opportunities that growth presents, and take our chance to build a great city.
Here are some topics that we as a council and a city will need to consider in the next few years.
We need to provide for the graph is based on the capital programme set out in
the Long Term Plan (LTP). Should the Civic Heart LTP
needs of our rapidly growing amendment result in the council investing in additional
city, and to be able to pay for it buildings, whether they be administration buildings, a
library, or a museum, the Council-imposed debt limits
Managing growth is top of the agenda, and will remain would be exceeded for several years from 2019.
there for a while. Our population is growing faster
In the last two years, residential housing growth has
than we’d anticipated, and central Government is
been well in excess of LTP projections (last year the
putting increasing pressure on councils to free up
number of new dwelling consents was almost 1,600,
land for housing and business. To do this we need to
which is 86% higher than the ten-year average). As
provide the core infrastructure upfront – roads, water,
a result, expenditure on growth-funded infrastructure
wastewater and stormwater networks and open
is needed earlier than projected in the LTP. This will
space – to enable this land to be subdivided. Once
put further pressure on debt limits, which would push
these new housing areas are in place they will also
above the Financial Strategy debt-to-revenue ratio
require adequate community facilities.
limit by 2019. Without alternative funding, this would
We need to make sure we can accommodate constrain our ability to invest in core and community
this rapid growth, with the appropriate zoning and infrastructure. Recognising these growth pressures,
provision of land with the necessary infrastructure. We Tauranga City Council, along with New Zealand’s
work to fund the core infrastructure from development four other growth councils, has been identified by
contribution revenue. However, growth still puts central Government as a potential recipient of support,
pressure on our debt levels as we are required to through a new $1 billion infrastructure investment
forward-fund infrastructure investment and recover programme to assist councils in making more land
costs from development contributions over time. We available for housing.
need to plan ahead so that we deliver investment in
A significant challenge for Council is to balance
time for demand, and stage development to manage
expenditure to serve new growth with investment in
the impact on debt. Community facilities and wider
the city for community infrastructure, such libraries,
public amenity cannot be funded from development
community centres and art and culture facilities,
contributions so require funding through rates.
which help to create a city that fully delivers on social,
In our Long Term Plan 2015-2025 we have committed cultural, environmental and economic well-being.
most of our available debt capacity to fund growth.
So to recap: we need more land to meet demand
The graph on the next page shows how close we will
for housing, development-ready with infrastructure in
be getting to the debt-to-revenue ratio limit of 225%
the ground, the capacity to deliver more services and
set by Council in its Financial Strategy and the 250%
amenities to more people, while limiting the impact on
limit currently set by the Local Government Funding
debt and rates increases for residents.
Agency for Council borrowing through this agency. We
are also moving closer to the total debt limit of $500
million set in the Council’s Financial Strategy. This8 TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
THE BIG PICTURE
Closing External Debt $m
Final LTP June 2015 (Inflation Adjusted)
600 300%
500 488 495 493 250%
465 469
442 423
410 419
400 185 181 170 146 200%
355 205 124 107
227
300 150%
272
256
200 100%
302 314 323 323 300 312
260
100 215 50%
139
98
0 0%
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Growth Debt Other Debt Debt to Revenue Ratio Debt to Revenue Debt to Revenue
Ratio Limit 225% Ratio Limit 250%
What we’re already doing about it: This is our chance to:
• Planning ahead through the SmartGrowth • Ensure infrastructure planning and investments
partnership, zoning and planning for new urban are sustainable with an eye to future environmental
growth areas. requirements, technology and trends in the way
people want to live, work and play (e.g. sustainable
• Staging development and using just-in-time
and efficient transportation).
investment and developer agreements to minimise
the impact of growth on rates and debt. We are • Put more thought into place-making: how we
confident Tauranga will continue to grow, but the plan, design and manage community facilities
duration of the current very high growth is more and infrastructure, to create public spaces
challenging to predict. So we’re planning for and experiences that better promote social
resilience and agility in new developments, giving connectedness and people’s health, happiness,
ourselves the ability to ramp up or slow down and wellbeing.
the forward infrastructure programme in line with
• Ensure new and affordable housing areas are
development activity.
available ahead of demand into the future.
• Participating in discussions around the National
Policy Statement on Urban Development Capacity.
Central Government has also proposed to support
high growth councils through a $1 billion fund
for infrastructure development in high growth
areas. If these proposals address the current debt
constraints we are facing, and if the Government
finds ways of de-risking additional debt councils
would incur to meet the policy’s requirements, we
will consider the offer favourably.
• Maintaining, and where we can, improving the
quality and efficiency of our core infrastructure
and services so that Tauranga can remain a safe,
inspiring and beautiful place to live.THE BIG PICTURE 9
THE BIG PICTURE
We need to look at our • Transport planning and co-investment with NZTA
and the Regional Council.
urban form
• Making changes to the city plan to allow for
We don’t want a disjointed city, a collection of sprawling higher density housing in new developments, and
suburbs. Tauranga should ‘work’ as a whole – our planning in advance for social infrastructure.
city centre and suburban centres need to have their This is our chance to:
respective purposes and not conflict with one another.
• Influence the demand for higher density housing
We have great suburban centres like Greerton Village, options by devising an offer both appealing and
Mount Maunganui and Bethlehem Town Centre, that sustainable, in collaboration with the development
each have their own identity and offering – shopping community.
areas, community facilities and public spaces. Our city
centre needs its own purpose as a central business • Help provide options for more affordable housing.
district and a space for recreation and entertainment. • Build a liveable city that makes sense and is easy
We need to understand these dynamics better to build to navigate, and help our centres to grow into their
a city that works for everyone. own.
We also need to look into the form in which our city • Work with partners to plan for an urban form
is growing. If our population keeps growing as it is, at that promotes health, accessibility and social
some point we will run out of developable land. We connectivity, for all our communities including our
need to put serious thought into how we can provide ageing population.
more residential options through intensification,
• Better understand the future workplace dynamics
growing upwards instead of outwards where it makes
and work locations.
sense. How can we encourage the development of
different types of housing, like two or three storey • Reduce environmental impacts, energy use, travel
terraced apartment buildings? What do we need times and costs by giving options to people to
to provide for this type of offering to be attractive shop, work and play closer to home.
to buyers, and the surrounding communities? How
• Increase the vibrancy of our city centre through
do we bring the development community on the
higher density, and attract more investment into
journey with us? We will need to work on this with the
the city.
community in the next few years.
What we’re already doing about it:
• Developing and implementing the City Centre
Spatial Framework as part of our City Centre
Strategy. This framework considers the
relationships between the spaces and activities in
the city centre and provides a range of strategies
for creating a vibrant, safe and active centre.
• Starting work on intensification: what it could
achieve and what it would take to achieve it.
We have started research and analysis in a project
called Compact City that you’ll hear more about
soon.
• Scoping work on developing a coherent centres
strategy.10 TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
THE BIG PICTURE
We need to future-proof our capacity in and out of Tauranga from November
2016 (80,000 extra seats per year; 13 extra flights
transport system to Auckland and six to Christchurch per week).
Transport impacts everyone who lives in, works in or • We are beginning to discuss future rail
visits Tauranga. It supports our businesses and the opportunities for our city as part of the Upper
development of our economy. It plays an important North Island Strategic Alliance.
part in preserving the lifestyle we all seek in Tauranga. This is our chance to:
Residential and commercial growth in Tauranga places • Ensure we have sustainable connectivity with
increasing pressure on our transport network. Even with Auckland as the largest economy in New Zealand
the recent completion of large infrastructure projects by and our gateway to the world.
us at the Council and by the New Zealand Transport
Agency (NZTA), there is some congestion at peak hours. • Better understand Tauranga’s transport needs and
This will inevitably increase over the next 30 years. trends and plan for the future accordingly.
We need to plan ahead and work together with • Keep in check the environmental impacts of
partners to deliver an integrated transport system. This increased freight and vehicular movements
will allow us to expand our opportunities and keep (emissions, harbour pollution).
on track to build a city that’s great to live in, easy and • Look into emerging freight efficiency technologies
safe to get around and supportive of the industries (remote trip management, driverless vehicles) and
that bring money into our city. The continued support understand what they mean for the future of our
of organisations such as NZTA, the Port of Tauranga, network.
KiwiRail and the Bay of Plenty Regional Council is
B. TRAVEL WITHIN THE CITY
essential to our joint success into the future.
With a growing population, more cars on the road,
A. OUR EXTERNAL TRANSPORT CONNECTIONS
more cars seeking to park in the city centre and in
With the globalisation of the economy, and the growth suburban centres, inner city transport is a key topic
of the city, our transport connections through road, we need to keep addressing.
rail and air are more important than ever. We need to
We need to work to maintain the reliability of travel
accommodate increased volumes of freight to support
times in Tauranga despite growth pressures. We need
our industries like horticulture, and work with the Port of
to mitigate excess congestion through investments at
Tauranga to understand how its development and the
pinch points, like Turret Road and city centre parking.
arrival of an increasing number of mega-container ships
and cruise ships will impact our roading and rail network. Most importantly, we need to continue work on
developing an integrated transport strategy, to
We need to find ways to limit the impact of increased
influence the demand and use of roads, instead of
freight movements on wellbeing and congestion,
limiting our response to increasing capacity. This
including advocating for central government
means continuing to work with the Regional Council
investment in rail for freight.
on creating public transport that people will choose
We need to provide quick, safe links to Auckland and to use. There’s a lot of work to be done to support a
Hamilton, for residents, visitors and businesses. modal shift, get people out of cars and into buses,
What we’re already doing about it: onto bikes and on foot. This will require more
investment in walkways and cycleways. It will mean
• We are working closely with the NZTA to support managing our network in favour of buses, bikes and
the delivery and upgrade of state highways. The walking. And figuring out how we can help fund the
Tauranga Eastern Link (Baypark – Paengaroa) was operation of school buses to reduce the cost to the user.
delivered last year and NZTA has announced it will
be building the Tauranga Northern Link (Te Puna to What we’re already doing about it:
Takitimu Drive) by 2021. • Co-planning and co-investing with the Regional Council
• We are upgrading our airport terminal and and the NZTA on transport issues and opportunities.
capacity. Air New Zealand is increasing seat • Supporting the completion of the Welcome BayTHE BIG PICTURE 11
THE BIG PICTURE
roundabout and the development of the future This is our chance to:
Baypark to Bayfair flyover.
• Reverse the trend in favour of public transport use,
• Working with the Regional Council on the Western champion environmentally sustainable transport
Bay Public Transport Blueprint, a public transport options and reduce the city’s environmental footprint.
review involving core transport partners – councils,
• Champion health-promoting activities in residents’
NZTA, and Smartgrowth – looking at options
day to day lives, and provide better lifestyle
to improve public transport prior to new public
opportunities and experiences.
transport contracts in 2018.
• Better understand what customers want, and
• Working on completing the urban cycle network
look at digital opportunities to increase their use of
in Tauranga and starting the construction of the
public transport.
Omokoroa to Tauranga cycle trail in 2017/18.
• Make sure whatever investment we make in the
• Completing the build of a new floor on the
city centre, and across the city, ties in with our goal
Elizabeth Street car parking building and starting
of achieving a modal shift, and is supported by the
work this coming year on constructing a new car
integrated transport strategy.
parking building on Harington Street in the city centre.
We need to up our digital game serve our customers. Through it we will deliver
new technical infrastructure, channels, software,
Digital connectivity supports business opportunities, and systems for digital interactions within the Council
opens doors to new markets, provides for leisure and and with customers, businesses, and partners.
entertainment, and allows to better understand and • We’re working on delivering a supportive
serve customers and communities. As individuals environment for businesses and individuals to
many of us rely everyday on the online availability of access, participate and make the most of digital
information and interactions. The digital world now technologies and the digital economy. The actions
rules the physical in many aspects and we want to in the Western Bay of Plenty Digital Enablement
embrace the opportunities it presents. Plan aim to help the sub-region reach its full
We want to build a connected city. We are already potential in using digital technology to improve
leading the way in some aspects, with a 99% business productivity and people’s lives.
coverage of Ultra-Fast Fibre throughout the city. • We’ll also be supporting advocacy to develop the
Council’s own information technology systems need digital infrastructure outside our city, in the broader
to be brought up to speed, for example to offer Western Bay.
the online services our customers would expect.
We are already working on this – upgrading our This is our chance to:
enterprise systems and working on delivering more, • Make it easier for customers to do business with us.
better online services in the coming years. But that’s
merely scratching the surface of what we could be • Help Tauranga’s businesses grow by improving
doing in this space to support our businesses, our their use of digital technologies and their access to
communities and our city. the digital economy.
What we’re already doing about it: • Attract more businesses to Tauranga, and
especially innovative businesses; to nurture
• We’ve started to implement our newly-developed our innovation ecosystem – digital solutions for
Digital Platform Strategy, to help us keep pace logistics, horticulture, health etc.
with the evolving digital needs of our customers.
It sets the tone: Council’s customer services are • Be bold and look into things like connected
to be digital by default, while also preserving more infrastructure and intelligent assets, and see how
traditional modes of interaction. It will help us they could help us manage our assets and plan for
manage data more effectively, and use it to better our infrastructure investment more effectively.12 TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
THE BIG PICTURE
We need to help foster innovation • Championing an increase in education
opportunities – supporting the development of
to support our job market the future Tauranga campus of the University of
Waikato in the city centre.
We need to help create opportunities for our city and
growing population to be as economically active as • Considering the effective use of council land and
possible. As a council we can take action to support investment partnerships to accelerate emerging
innovation, research and commercial opportunities. opportunities e.g. helping create a hub for the sub-
We can support collaboration, open doors and make regional marine sector by developing the Marine
processes easier. We can help ensure companies Precinct in collaboration with the Regional Council.
starting or relocating here have access to skilled • Supporting research and commercial opportunities
staff. There are ongoing opportunities, particularly in the marine biotechnology and aquaculture
with our young people, to ensure they gain skills industry, e.g. the potential Sino-New Zealand
so they can also participate and contribute to the Coastal Innovation Partnership between Yantai
growth of the city. We can better support flourishing, University and the University of Waikato.
knowledge intensive industries and trades. Tauranga
is fortunate to be the home to one of the most active This is our chance to:
angel investor networks in the country – Enterprise • Nurture ‘innovation ecosystems’ – the coming
Angels. At this stage, most of the Enterprise Angels’ together of businesses with research and
investment is directed outside the city. We need to development interests, universities, start-ups and
foster the development of innovative companies with venture capitalists to develop and market new
high-growth potential, to bring this investment and all products and services.
its spin-offs, such as employment, back into Tauranga.
• Market the city as a place where innovation and
What we’re already doing about it: investment in innovation happens, with a focus on
• Funding Priority One, our economic development our competitive and emerging niches.
agency supporting local businesses and working • Adopt innovation and collaboration principles
on attracting other companies to Tauranga. within planning and design processes.
We need to define our identity Plenty, Priority One and other stakeholders on our
city’s and our region’s unique selling points.
to better market our city
This is our chance to:
There’s so much on offer in Tauranga. Defining our • Enhance our environment and build an attractive
identity is an important part of growing up as a city. A city, to preserve the connection between the
strong identity attracts interest, people, investment. natural environment and the built environment. The
It gives residents something to be proud of, stand current and future investment in amenities in the
behind, and promote. city (Civic Heart, waterfront, streetscapes, Phoenix
To achieve this will require strong leadership, and a park, Visitor Information Centre) is the opportunity
vision for the future. to give life to a new identity and create a coherent
and appealing city.
What we’re already doing about it:
• Reconnect with our history and champion our heritage,
• Taking a hard look at ourselves. How can we in collaboration with Tangata Whenua. To nurture and
become a magnet for talent and investment? How celebrate our cultural richness and diversity.
do we perform on the four well-beings? How can
we compete for people, businesses and visitors on • Put ourselves out there to New Zealand and the
the national and international stages? world. Get ourselves on the map. Sell ourselves as
a destination, for whatever we decide we want to be.
• Participating in discussions with Tourism Bay of
We’re on a journey towards these aspirations. Now what’s the plan on the medium term?WHAT’S THE PLAN? 13
WHAT’S THE PLAN?
What’s the plan?
Key projects for this year and the three years after that
We’re working to successfully manage Tauranga’s growth ensure services such as water and wastewater treatment
into the future – providing and maintaining infrastructure can be supplied to the growing number of people.
for our growing city, delivering efficient services to our
Here’s an overview of the major projects that are in
community, and investing in Tauranga’s future.
progress or planned for this year (2016/17) and the three
Our city’s growth in the last two years was more rapid years after that.
than projected in the Long Term Plan 2015-2025 – quite
Note that the total project costs in the tables below may
a bit more rapid, 2.5% last year instead of the 1.6%
include costs prior to 2016/17 and after 2019/20 as well
anticipated. We have therefore needed to bring forward
as those in the four years presented.
even more capital expenditure on infrastructure, to be
able to open up more areas of land for housing and to
Providing and maintaining infrastructure for our growing city
THIS YEAR NEXT THREE YEARS
Total Cost
2016/17 2017/18 2018/19 2019/20
of Project*
Completing the Southern Pipeline
The Southern Pipeline project will provide a major
wastewater pipeline and pumping stations to divert
wastewater from the Chapel Street wastewater $10,000,000 $23,923,399 $0 $0 $99,174,456
treatment plant to the Te Maunga plant. This is
necessary to provide for the city’s growth in the
western corridor (Pyes Pa West, Tauriko, The
Lakes).
Ugrading the Te Maunga Wastewater Plant
This upgrade of the Te Maunga wastewater
treatment plant is planned to handle the increase in $2,801,000 $9,737,000 $803,000 $5,208,000 $49,568,206
flow caused by the projected increase in population
over the next ten years.
A new water treatment plant to supply our
eastern areas - Waiari
We’ll be working on building a third water supply
intake and treatment plant for Tauranga, near $800,000 $7,700,000 $16,200,000 $21,000,000 $54,445,387
Te Puke. We need this to cope with the planned
increase in population over the next ten years. This
project consists of the raw water intake works and
treatment plant for supplying our coastal strip.
Three new water supply reservoirs
We’ll be building a new water reservoir on Joyce
Road (Pyes Pa), one on Kennedy Road (Pyes Pa $7,955,159 $3,796,565 $0 $0 $15,639,401
also) and one on Welcome Bay Road (the Eastern
Reservoir) to ensure the future delivery of water
thoughout Tauranga.
Bridging the Kopurererua Stream
This new bridge will connect the Tauriko growth area $3,300,000 $0 $0 $0 $3,400,000
to State Highway 36 via Kennedy Road.
Pedestrian overbridges at Tauriko / The Lakes
We’ll be building two new overbridges to provide $2,626,000 $130,000 $1,196,000 $0 $3,952,000
pedestrian access to the Tauriko shopping centre.
* Total project cost may include costs prior to 2016/17 and after 2019/20 as well as those in the four years presented.14 TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
WHAT’S THE PLAN?
Providing and maintaining infrastructure for our growing city
continued
THIS YEAR NEXT THREE YEARS
Total Cost
2016/17 2017/18 2018/19 2019/20
of Project*
Extending Te Okuroa Drive in Papamoa East
Works at Te Okuroa Drive are a key part of providing $4,150,213 $11,423,336 $1,333,802 $78,446 $34,303,443
infrastructure to the development of the Wairakei
growth area.
Upgrading Kennedy Road
The improvements to Kennedy Road are planned to $2,500,000 $2,359,340 $0 $0 $4,939,340
provide key infrastructure to the development of the
Pyes Pa growth area.
Major upgrades for Domain Road
Due to the population growth in Papamoa and
subsequent increase in traffic, works are planned to $0 $0 $0 $6,516,383 $7,499,552
reconstruct Domain Road in order to cope with the
increased use.
Planning for stormwater works across the city
We’re continuing to upgrade and improve our $8,200,000 $8,200,000 $6,000,000 $6,000,000 $77,560,114
stormwater network across Tauranga.
Sprucing up the Kopurererua Valley
Works are planned to develop cycle/walkways, $200,000 $100,000 $100,000 $100,000 $3,394,419
realign the stream, and plant more trees in our
beautiful Kopurererua Valley.
Tauranga Domain Athletics Track
We’ll be resurfacing the Tauranga Domain athletics
track in 2017/18. This will be partially offset by a $0 $790,295 $0 $0 $940,295
$395,150 contribution from the Tauranga Millenium
Track Trust.WHAT’S THE PLAN? 15
WHAT’S THE PLAN?
Delivering efficient services to our communities
THIS YEAR NEXT THREE YEARS
Total Cost
2016/17 2017/18 2018/19 2019/20
of Project
Better software and systems to manage our
data and serve our customers
A new entreprise system (large-scale software to
support business processes, information flows, $3,000,000 $1,000,000 $0 $0 $7,000,000
reporting and data analytics) will allow us to process
information more quickly and efficiently and allows
for greater self-service of information by the public.
Wairoa Active Reserve Development
Due to the planned population increase around
West Bethlehem, works are planned to develop the $309,806 $2,809,682 $2,500,000 $2,000,000 $7,659,488
Wairoa Active Reserve. This includes sportsfields
and facilities.
Blake Park Hockey Turf Grant
We will be contributing to the development of a third
hockey turf at Blake Park. This grant to Tauranga $0 $600,000 $0 $0 $600,000
Hockey Association is for $600,000 or a maximum
of 25% of the total project cost.
Completing the urban cycle network and
building the new coastal cycle trail
In the coming years we’ll be completing the urban
cycle network in our city (routes A-J), and building $752,829 $1,913,000 $0 $0 $2,665,829
the connection between Omokoroa and Tauranga’s
Coastal Cycle Route. The cycle trail will run from the
Wairoa River Bridge, alongside the rail corridor, all
the way to Otumoetai.
TECT All Terrain Park Development
We have a joint project with Western Bay of Plenty
District Council to further develop and maintain $310,000 $260,000 $135,000 $85,000 $4,444,648
the TECT All Terrain Park in Pyes Pa, our outdoor
adventure park.
More parking spaces in the Elizabeth Street
Carpark
We’re finalising the construction of an additional $1,040,000 $0 $0 $0 $5,172,000
floor on the Elizabeth Street carpark. This will
provide an additional 110 spaces in the CBD.
A future sportsfield in Te Tumu
Due to the planned growth in the Te Tumu growth $0 $0 $4,500,000 $0 $4,500,000
area in Papamoa East, land purchase for sportsfield
development has been planned for 2019.16 TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
WHAT’S THE PLAN?
Investing in Tauranga’s future
THIS YEAR NEXT THREE YEARS
Total Cost
2016/17 2017/18 2018/19 2019/20
of Project
More fun on the waterfront
We will be doing major works on the Tauranga city
centre waterfront to create access to the water. $3,500,000 $1,000,000 $500,000 $0 $6,203,975
This will include building tidal stairs (planned for
2016/17), a wharf, public areas and a seawall.
Creating Tauranga’s Civic Heart*
The proposed Civic Heart project includes a new
civic administration building, improvements to
Masonic Park, a new carpark building in Harrington
Street and feasibility studies on a museum, new $8,615,520 $37,728,435 $35,599,393 $9,763,595 $91,706,943
library and a new perfoming arts centre. This project
is currently undergoing public consultation. The
figures here are those from the original proposal,
and are subject to change.
Our Digital Strategy
We want to be a connected city and take advantage
of what technology offers. This project provides
funding for digital innovation, contributing to a $1,100,000 $1,400,000 $250,000 $250,000 $4,000,000
digitally-enabled city. This work will give the public
greater access to Council information online and
provide a platform for greater digital interaction.
Transforming Phoenix Carpark
We will be redeveloping the current Phoenix carpark
in the Mount into an urban park. This will include $750,000 $1,160,000 $0 $0 $2,000,000
upgrading the public toilets and creating new public
areas.
Building the future marine hub of the Bay
We’ll soon start to build Tauranga’s own purpose-
built marine servicing facility at Sulphur Point, the
Tauranga Harbour Marine Precinct. The precinct will
provide a base for boat building and refit businesses $9,570,000 $500,000 $0 $0 $11,409,250
in Tauranga. It is jointly funded by Tauranga City
Council and the Bay of Plenty Regional Council. The
project includes procuring the largest travel-lift in NZ
and building the marine infrastructure to go with it.
Floodlights for night games at Bay Oval
We will be providing a grant to the Bay Oval Trust
for lighting at Bay Oval. This will give Tauranga $150,000 $765,000 $0 $0 $915,000
the capability to host a greater number of large-
scale cricket events, day and night. This project is
scheduled for 2018.
* Note on Proposed Long Term Plan Amendment – Creating Tauranga’s Civic Heart
Council’s civic buildings have been affected by significant weathertightness issues and moderate earthquake risk. Weathertightness
issues resulted in relocation of staff from most of the main council buildings in 2015. A Civic Space Options project was undertaken,
resulting in a proposed Long Term Plan Amendment which was consulted on in June and July 2016. Decisions are expected to be
made by the end of August 2016.
The Long Term Plan Amendment proposes to provide new council accommodation with immediately surrounding open space (a civic
place) by 2020 on the Willow Street site. An open space area around the building would connect to a proposed new civic square on
Masonic Park. The proposal also includes conducting feasibility studies for a library, museum and performance venue.
Go to www.tauranga.govt.nz/civicheart for detailed information on the Civic Heart proposed Long Term Plan Amendment.RUNDOWN 17
RUNDOWN
What we’ve been up to in
the past three years
This is a quick run-down of the key projects and decisions
that have come out of council in the past three years.
Providing and maintaining infrastructure for our Investing in Tauranga’s future
growing city
• We increased our investment in major events to
• We built an interchange at Mangatawa, an off-ramp showcase the city, attract visitors and increase our
at Sandhurst Drive and an interchange at Domain Road city’s vibrancy.
to allow access on and off the new Tauranga Eastern
• We provided land in the city centre for the future
Link.
Tauranga campus of the University of Waikato, which
• We laid major water mains at Joyce Road in Pyes Pa will provide extended education opportunities to
to provide water supply to the Tauriko growth area. people in Tauranga.
• We started building vertical evacuation structures and • We increased support for economic development
bridges in Papamoa East, and decked the coastline agency Priority One to promote and enhance the
with directional evacuation signs to support safe commercial sector in Tauranga.
evacuation in the unlikely event of a tsunami.
• We continued to develop the waterfront, contributing
• We began to address significant stormwater issues in to the Hairy Maclary statues and undertaking
some of our worst-affected areas across Tauranga. landscaping to create an attractive and fun city centre.
Delivering efficient services to our communities • We kicked off and obtained Regional Council funding
for the development of the Marine Precinct, engaged
• We created a new Council-Controlled Organisation,
with the local marine industry and successfully
Bay Venues Limited, to manage and develop our
completed the sale of lots to marine businesses.
indoor sports and community facilities.
While managing rates and debt
• We automated the city centre car parking buildings so
that people can park 24/7 and pay more easily, and In June 2015 we sold Route K to NZTA as part of the
we provided pop-up carparks on Devonport Road state highway network. This stretch of road goes from
and Cliff Road to help meet demand. SH29 at the Lakes to the 15th Avenue connection. The
$61m we received for this road gave us capacity to
• We laid a new boardwalk around Pilot Bay and
construct the new infrastructure required by our growing
installed new family barbecue areas.
city and to improve capital investment in areas such as
• We installed lighting, irrigation and a new carpark at stormwater and city centre renewal and enhancement.
Blake Park so that people can make the most of the
Debt has also reduced significantly from a budget of
reserve.
$355m to $297m at 30 June 2016. This is due to a
• We built a new library in Greerton, which will provide combination of unbudgeted land sales, high development
access to books, information and education but also contributions revenue and deferral by a year of some
be a hub for the community to come together. capital expenditure.18 TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
THE BOOKS
The books
Our financial strategy • Maintaining affordable rate levels by limiting rate increases
to CPI (Consumer Price Index) + 2% after growth
The primary financial strategy for Tauranga City Council
revolves around providing the best value for ratepayers • Maintaining a quantified limit on rates as previous
using the following key performance indicators: year’s rates + rates % limit.
• Maintaining Council debt at a level less than $500m Tauranga City Council has achieved each key performance
indicator for the last three years as shown below.
• Maintaining a debt to revenue ratio of less than 225%
2013/14 LTP 2014/15 LTP 2015/16 LTP
Annual Annual
Limit Limit Projection Limit
Report Report
Maintain debt less than $500m $365m $402m $304m $412m $297m $355m
Maintain a debt to revenue ratio of less
214% 250% 164% 250% 155% 225%
than 225%
Maintain affordable rate levels through
1.0% 5.0% 6.8%* 4.3% 3.5% 3.7%
limit on rate % increase after growth
Maintain limit on Rate Collection $105.8m $108.9m $114.2m $114.7m $120.3m** $119.9m
Favourable Unfavourable
*2014/15 rates included a special levy of 4.5% to create a fund for stormwater alleviation projects.
** Higher rates collection was due to timing of new rating units (more rating units than anticipated when we struck the rates).
Financial position • Other non-current assets, including investment
properties, intangible assets such as our systems and
The Statement of Financial Position shows what databases, and the value of investments in Council-
Tauranga City Council owns (its assets) and what it Controlled Organisations – Bay Venues Limited and
owes (its liabilities) at the end of the financial year. This the Art Gallery; and
statement provides a snapshot of Tauranga City Council’s
net worth (assets less liabilities) at a point in time. • Current assets including debtors (people who owe us
money), cash and short term deposits.
Assets and liabilities
Each year we construct, develop and renew assets
The Council’s net worth is $3,166 million as at 30 June around Tauranga. This adds to the value of property,
2016. This is calculated as the difference between the plant and equipment.
total assets and the total liabilities of the Council.
Liabilities
Council’s net debt is $297m. When we talk about net
debt we are referring to Council’s borrowings (both current The Council’s total liabilities at 30 June 2016 are $425
and non-current) offset by its cash and short term deposits. million. The major liabilities of the Council include:
Assets • Gross borrowings; and
The Council’s total assets at 30 June 2016 are worth • Other liabilities such as trade and other payables.
$3,591 million. The major assets of the Council include:
• Property, plant and equipment - this includes land,
buildings and infrastructure assets such as networks
to supply water and treat wastewater, provide roads
and manage stormwater throughout the city;THE BOOKS
STATEMENT OF FINANCIAL POSITION ORIGINAL LTP PROPOSED LTP AMENDMENT
ESTIMATED
ANNUAL ANNUAL ANNUAL LONG TERM LONG TERM LONG TERM LONG TERM LONG TERM LONG TERM
ANNUAL
REPORT REPORT PLAN PLAN PLAN PLAN PLAN PLAN PLAN
REPORT
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2017/18 2018/19 2019/20
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
ASSETS
ASSETS - CURRENT
Cash and Short-term Deposits 30,017 35,563 18,566 0 15 16 16 15 16 16
Debtors & Other Receivables 17,089 15,330 17,311 15,330 17,914 18,374 18,872 17,914 18,374 18,872
Inventories 534 438 339 438 560 574 590 560 574 590
Derivative Financial Instruments 38 1,069 181 1,069 40 41 42 40 41 42
Non-Current Assets Held for
10,015 6,042 8,358 4,356 4,818 5,036 2,812 4,818 5,036 2,812
Sale
Total Current Assets 57,693 58,442 44,755 21,193 23,347 24,041 22,332 23,347 24,041 22,332
ASSETS - NON-CURRENT
Derivative Financial Instruments 1,771 1,773 1,858 1,773 1,771 1,771 1,771 1,771 1,771 1,771
Other Financial Assets 5,761 5,953 6,080 6,969 9,366 10,449 11,586 9,366 10,449 11,586
Other Investments - CCO’s 82,532 98,330 102,051 106,343 101,347 105,503 109,955 101,347 105,503 109,955
Other Investments - Other
159 174 200 174 166 170 175 166 170 175
Entities
Investment Properties 29,334 40,703 50,283 40,703 30,894 31,719 32,607 30,894 31,719 32,607
Intangible Assets 9,476 7,455 11,942 7,343 9,141 9,029 8,917 9,141 9,029 8,917
Forestry 6,211 10,160 9,236 10,160 6,542 6,717 6,905 6,542 6,717 6,905
Property, Plant & Equipment 3,217,822 3,209,042 3,364,708 3,346,889 3,642,925 3,818,827 4,022,343 3,648,246 3,864,213 4,080,375
Total Non-Current Assets 3,656,067 3,373,590 3,546,358 3,520,354 3,802,152 3,984,185 4,194,259 3,807,473 4,029,571 4,252,291
TOTAL ASSETS 3,410,760 3,432,032 3,591,113 3,541,547 3,825,499 4,008,226 4,216,591 3,830,820 4,053,612 4,274,623
THE BOOKS
1920
TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
THE BOOKS
STATEMENT OF FINANCIAL POSITION ORIGINAL LTP PROPOSED LTP AMENDMENT
ESTIMATED
ANNUAL ANNUAL ANNUAL LONG TERM LONG TERM LONG TERM LONG TERM LONG TERM LONG TERM
ANNUAL
REPORT REPORT PLAN PLAN PLAN PLAN PLAN PLAN PLAN
REPORT
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2017/18 2018/19 2019/20
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
LIABILITIES
LIABILITIES - CURRENT
Payables & Deferred Revenue 33,746 43,288 41,353 34,060 35,371 36,280 37,264 35,371 36,280 37,264
Provisions 6,379 7,083 6,163 83 503 516 530 503 516 530
Employee Entitlements 3,659 2,568 3,883 2,568 3,835 3,934 4,041 3,835 3,934 4,041
Deposits Held 4,204 4,526 5,041 4,526 4,406 4,519 4,642 4,406 4,519 4,642
Revenue in Advance
5,005 3,153 2,885 3,153 5,246 5,381 5,527 5,246 5,381 5,527
Development Contributions
Derivative Financial Instruments 190 381 581 381 190 190 190 190 190 190
Borrowings 90,000 75,000 30,000 60,000 112,150 118,048 123,673 127,639 144,975 154,484
Total Current Liabilities 143,183 135,999 89,906 104,771 161,701 168,868 175,867 177,190 195,795 206,678
LIABILITIES - NON-CURRENT
Provisions 64 54 794 78 144 174 206 144 174 206
Employee Entitlements 206 116 70 116 216 222 228 216 222 228
Derivative Financial Instruments 18,108 28,083 48,302 28,083 18,108 18,108 18,108 18,108 18,108 18,108
Borrowings 305,396 255,318 285,542 331,349 330,053 347,412 363,966 318,538 362,254 386,622
Total Non-Current Liabilities 323,774 283,571 334,708 359,626 348,521 365,916 382,508 337,006 380,758 405,164
TOTAL LIABILITIES 466,957 419,570 424,614 464,397 510,222 534,784 558,375 514,196 576,553 611,842
NET ASSETS 2,943,803 3,012,462 3,166,499 3,077,150 3,315,277 3,473,442 3,658,216 3,316,624 3,477,060 3,662,782
EQUITY
Retained Earnings 776,430 842,824 874,476 935,842 1,007,252 1,080,218 1,167,798 1,009,154 1,083,104 1,171,584
Other Reserves 2,167,373 2,169,638 2,292,023 2,141,308 2,308,025 2,393,224 2,490,418 2,307,470 2,393,956 2,491,198
EQUITY 2,943,803 3,012,462 3,166,499 3,077,150 3,315,277 3,473,442 3,658,216 3,316,624 3,477,060 3,662,782
THE BOOKSTHE BOOKS
Funding Impact Statement Overall the financial results for Tauranga City Council for the year to 30 June 2016
reflect the growth in residential property in Tauranga over the past year. This is
The Funding Impact Statement shows how Tauranga City Council will pay for its reflected in higher development contributions (DCs) with total DCs for the year of
budget each year. The statement includes where the money will come from, how $27m – $10m above budget. Almost 1,600 new dwelling permits were issued for
much money will come from each available source and where the money will be the year, which is 86% above the ten-year average. In operational revenue and
spent. costs the higher levels of activity in Tauranga are reflected in higher demand and
These statements reflect the growth of the rating base and the increase in associated user fee revenue across a range of Council activities, along with higher
building activity in Tauranga, and the increase expenditure to cater for this growth operating costs incurred as Council meets this demand.
by investing in infrastructure and facilities and upping our delivery of services.
FUNDING IMPACT STATEMENT ORIGINAL LTP PROPOSED LTP AMENDMENT
ESTIMATED
ANNUAL ANNUAL ANNUAL LONG TERM LONG TERM LONG TERM LONG TERM LONG TERM LONG TERM
ANNUAL
REPORT REPORT PLAN PLAN PLAN PLAN PLAN PLAN PLAN
REPORT
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2017/18 2018/19 2019/20
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING
General Rates, Uniform Annual
84,639 91,441 95,723 99,755 104,608 109,054 115,806 104,612 109,556 117,015
General Charges, Rates Penalties
Targeted Rates including targeted
37,660 39,505 42,051 43,512 45,189 47,640 49,731 45,189 47,639 49,730
rates for Water Supply
Subsidies and grants for operating
4,161 4,322 4,095 4,452 4,394 4,529 4,657 4,394 4,529 4,657
purposes
Interest and Dividends from
4,459 4,228 2,991 1,834 2,463 2,649 2,786 2,462 2,649 2,786
Investments
Fees and charges 34,844 38,503 40,069 38,415 34,523 35,902 37,498 34,079 36,225 37,831
Local authorities fuel tax, fines,
infringement fees, and other 1,401 1,422 1,045 1,506 1,588 1,629 1,673 1,589 1,629 1,673
receipts
Total Sources of Operating
167,164 179,421 185,974 189,474 192,765 201,403 212,151 192,326 202,228 213,692
Funding (A)
THE BOOKS
2122
TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
THE BOOKS
FUNDING IMPACT STATEMENT ORIGINAL LTP PROPOSED LTP AMENDMENT
ESTIMATED
ANNUAL ANNUAL ANNUAL LONG TERM LONG TERM LONG TERM LONG TERM LONG TERM LONG TERM
ANNUAL
REPORT REPORT PLAN PLAN PLAN PLAN PLAN PLAN PLAN
REPORT
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2017/18 2018/19 2019/20
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
APPLICATIONS OF OPERATING FUNDING
Payments to Staff & Suppliers 102,623 104,475 125,253 124,876 118,777 124,424 123,898 119,146 125,172 124,101
Finance Costs 24,840 24,659 20,663 19,420 24,953 26,694 27,679 24,167 27,655 29,771
Total Applications of Operating
127,463 129,134 145,917 144,296 143,730 151,118 151,577 143,313 152,827 153,872
Funding (B)
Surplus/(Deficit) of Operating
39,701 50,287 40,057 45,178 49,035 50,285 60,574 49,012 49,400 59,821
Funding (A-B)
SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital
7,066 6,837 4,232 4,078 5,756 6,474 6,253 5,756 6,474 6,253
expenditure
Development and financial
14,665 19,082 27,140 20,460 19,361 22,274 24,955 19,361 22,274 24,955
contributions
Increase/(Decrease) in debt 11,001 (55,337) 21,056 42,889 25,215 9,752 8,664 53,149 47,043 19,705
Gross proceeds from the sale of
7,958 84,281 13,256 4,356 10,084 5,036 2,812 10,084 5,036 2,812
assets
Lump sum contributions 284 1,250 1,328 5,602 457 42 41 457 42 41
Total Sources of Capital
40,974 56,112 67,012 77,385 60,873 43,578 42,725 88,807 80,869 53,766
Funding (C)
APPLICATION OF CAPITAL FUNDING
CAPITAL EXPENDITURE
- to meet additional demand 13,693 30,502 23,294 59,225 45,972 52,215 68,741 46,850 52,215 68,741
- to improve level of service 18,316 34,295 37,744 54,818 47,567 24,948 18,848 74,622 62,239 29,890
- to replace existing assets 20,246 17,351 19,809 23,107 20,639 27,430 26,222 20,218 27,052 26,128
Increase/(Decrease) in reserves 28,420 24,251 26,222 (14,587) (4,270) (10,730) (10,512) (3,872) (11,236) (11,173)
Total Applications of Capital
80,675 106,399 107,068 122,563 109,908 93,863 103,299 137,819 130,270 113,586
Funding (D)
Surplus/(Deficit) of Capital
(39,701) (50,287) (40,057) (45,178) (49,035) (50,285) (60,574) (49,012) (49,401) (59,820)
Funding (C-D)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 024 TAURANGA CITY COUNCIL | PRE-ELECTION REPORT
Contact us
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