Annual Plan 2017/18 Consultation Document

2017/18

ANNUAL PLAN Central Otago District Council

CONSULTATION DOCUMENT www.codc.govt.nz PO Box 122, Alexandra | 03 440 0056 | submissions@codc.govt.nz

Contents 4

Consultation ISSUE 1

6

Consultation ISSUE 2

Maniototo Community

Healthcare Facility Project

Central Otago Touring Route

8

Changes in Timing

- Lake Dunstan Water Supply Project

- Cromwell Wastewater Treatment Upgrade Project

- Cromwell Memorial Hall

9

Where to get information How to have your say Consultation Timeline

10

Submission Form

It’s Annual Plan Time In each of the two years between Long Term Plans Council produces an Annual Plan.

We review the budgets and work programmes we had planned for the year in our Long Term Plan and consider whether adjustments are necessary.

Due to legislative changes we are now only consulting on significant changes from Year 3 of our Long Term Plan 2015/25 (LTP) or on projects/funding that are completely new.

The 12 months ahead is very much about getting on with business as usual, delivering services and implementing programmes as planned and budgeted for in our LTP. We are looking at an average district rates rise of 2.8%.

To find out what this could mean for your property head online to www.codc.govt.nz and enter your property details into our handy online calculator.

Your Councillors

Tim Cadogan Your Mayor

Neil Gillespie Deputy Mayor

Victoria Bonham

Stephen Jeffery

Shirley Calvert

Nigel McKinlay

Lynley Claridge

Martin McPherson

Stuart Duncan

Malcolm Topliss

Barrie Willis

To have a chat with your local elected member go to www.codc.govt.nz/councillors for their contact details.

3

CONSULTATION

ISSUE 1

Maniototo Community Healthcare Facility Project Maniototo Health Services Ltd has made a request to the Maniototo Community Board to fund part of the Maniototo Community Healthcare Facility Project.

Maniototo Health Services Ltd is a charitable trust that provides a range of health and elderly care services for the community and employs 50 staff. The main hospital is a 1930s two-storey brick building with an adjacent rest home that was originally a nurses’ home built in the 1960s. The main hospital is uneconomical to refurbish, while the rest home is not meeting current standards in terms of room size, privacy and layout.

The Healthcare Facility Project is a $5.5 million project that would extend and refurbish the current rest home to accommodate 29 beds serving as both a hospital and a rest home facility.

Maniototo Health Services Ltd requested funding of $2 million towards the development.

Three options are proposed with funding levels ranging from $1 million to $2 million.

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CONSULTATION ISSUE 1 - Maniototo Community Healthcare Facility Project

Option 1: Do not provide any funding

Advantage: No additional cost to ratepayers

Disadvantages: May lead to abandonment or downscaling of the project

Possible loss of employment

Option 2: Fund through a Loan Under this option, a uniform annual charge would be added to all Maniototo ratepayers’ rates bill to pay for the interest and principal of a loan used to fund Council’s contribution to the project:

Level of Funding Loan Term

$1 million

$1.5 million

$2 million

Additional Rates 25 years

$48.32 per annum

$72.44 per annum

$96.53 per annum

Additional Rates 40 years

$39.83 per annum

$57.70 per annum

$79.56 per annum

Advantage:

Provides financial support to the project

Disadvantages: Additional costs passed onto ratepayers

Option 3: Part fund through Property Sales and Loan Funding The Maniototo Community Board currently owns a number of properties. Two properties have been identified as a potential funding source for this initiative. These properties have an estimated value of $1.4 million and a current lease return of $24,125 per annum. Under this option, Maniototo ratepayers’ rates would increase by between $11.52 to $43.64 per annum for the life of the loan, dependent on the option chosen. These costs represent loss of rental, and additional interest and principal payments.

However if Maniototo loses ownership of these assets it also loses the potential capital gains from the land and future increases in rental on these properties. Taking these into account results in a long-term cost of between $39.02 and $96.35 per annum for each ratepayer, dependent on the option chosen.

Level of Funding

Loan Term

$1 million

$1.5 million

$2 million

* Additional Rates 25 years

$11.52 per annum

$19.48 per annum

$43.64 per annum

** Estimated loss of Capital Gains or interest (not Rated)

$27.50 per annum

$52.71 per annum

$52.71 per annum

Total cost 25 Years

$39.02 per annum

$72.19 per annum

$96.35 per annum

* Additional Rates 40 years

$11.52 per annum

$18.97 per annum

$38.89 per annum

** Estimated loss of Capital Gains or interest (not Rated)

$27.50 per annum

$52.71 per annum

$52.71 per annum

Total cost 40 Years

$39.02 per annum

$71.68 per annum

$91.60 per annum

* Rated - includes loss of rental, interest and principal

Advantage:

** Not rated potential capital gains (or alternate income streams) lost through the sale of the properties

Provides financial support to the project

Disadvantages: Additional costs passed onto ratepayers

Loss of community owned asset that currently generates an income

e would like to know if the ratepayers of Maniototo would like to support the facilities through an W additional charge through rates, how long and how much.

5

CONSULTATION

ISSUE 2

Central Otago Touring Route It is proposed to develop a nationally recognised, signed and marketed self-drive touring route that links Queenstown and Dunedin, via Central Otago, and enables visitors to experience our region’s unique stories and offerings.

The purpose of developing such a route is to put Central Otago on the drive tourism map, linking with other nationally recognised touring routes and drawing visitors into the district. The touring route will disperse visitors throughout the region and provide significant economic benefits, particularly to our smaller rural communities.

Community demand for this project is evident in the Central Otago tourism strategy, which identified the establishment of an official touring route as a priority action in both the 2007-12 and 2014-19 documents.

The proposal recommends the establishment of a main or arterial route, with special interest or ‘side’ journeys being developed over time. Route options taking into consideration the packaging of our range of product offerings and the infrastructural requirements to ensure safe and enjoyable journeys for our visitors have been scoped over the past year.

The recommended route is to travel from Queenstown, through Cromwell, Alexandra, the Maniototo (via the Ida Valley), then on to Middlemarch and Outram (via State Highway 87). The Ida Valley was chosen as the preferred route with its iconic ‘big sky’ and ‘open space’ vistas.

The anticipated establishment costs for product development and marketing is $107,000. Roading enhancements to cater for additional visitor traffic are estimated at $80,000. Investigations will be made into the region’s eligibility for support funding through funds such as the New Zealand Transport Agency’s Visiting Drivers Project Fund and the Ministry of Business, Innovation and Employment’s Tourism Growth Partnership Fund.

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CONSULTATION ISSUE 1 - Central Otago Touring Route

Option 1: Fund the Preferred Option Council funds the development of a self-drive touring route through Central Otago agreeing to the recommended route. The touring route will travel Queenstown to Dunedin via Cromwell, Alexandra, Omakau, the Ida Valley, Ranfurly, Middlemarch and Outram. This is Council’s preferred option.

Total cost $187,000. Funded through the Tourism Rate.

Option 2: Fund an Alternate Route Council funds the development of a self-drive touring route through Central Otago via an alternative route of Queenstown to Dunedin via Cromwell, Alexandra, SH85 to Ranfurly and SH87 to Outram.

Total cost $187,000. Funded through the Tourism Rate.

Option 3: No funding Council does not agree to fund the development of a touring route through Central Otago from Queenstown to Dunedin via any route option.

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Changes in Timing Lake Dunstan Water Supply Project The anticipated completion date for this project has changed from June 2018 to December 2019. The original timeframe was overly optimistic and did not provide sufficient time to undertake investigation and design work. This is necessary to ensure that the project meets the expectations of the community and is delivered in a cost-effective manner.

Initial design for this project is underway. This will examine the various options regarding pipe routes, and various pipe size and reservoir storage options.

Tendering of the construction work will commence in April 2018. The forecast expenditure for 2017/18 has been revised to reflect when expenditure is likely to occur based on a project completion date of December 2019.

Cromwell Wastewater Treatment Upgrade Project This project is progressing well. Council is on track to meet Otago Regional Council consent conditions for discharges into Lake Dunstan by 1 January 2019.

Tendering of the design and build contract is in its final stages. The successful tenderer will take possession of the site on 1 May 2017.

The timing of expenditure has been revised for 2017/18 to reflect the tendered costs and construction timeline for this project. The expected final cost of this project has been revised from $11.4 million to $9.6 million.

Cromwell Memorial Hall The Cromwell Memorial Hall refurbishment project is now due for completion in 2018/19. Previously due for completion in 2016/17 the extension in project timing has occurred due to decisions made by the Cromwell Community Board to revisit some aspects of the project in late 2016.

In February 2017 the Cromwell Community Board resolved to move forward with this project based on the previously adopted detail design plan (available on Council’s website). Tenders received in late 2016 for the project resulted in the cost being more accurately determined as $5.6 million.

As previously consulted on and resolved by the Cromwell Community Board, the project is to be funded by 50% community grants and the balance from Council sale of industrial, commercial or residential land.

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Where to get information More information is available on our website at www.codc.govt.nz/consultation Printed copies of this information is also available on request.

Email submissions@codc.govt.nz or phone 03 440 0605.

You will find these items on our website:

• Financial statements • Performance measures • Rating examples • Rates calculator

How to have your say Make a submission to Council on the attached submission form or go to our website www.codc.govt.nz to submit online.

Email: submissions@codc.govt.nz Post: Annual Plan

Central Otago District Council

PO Box 122

Alexandra 9320 Deliver: Central Otago District Council

1 Dunorling Street Alexandra

or any of Council’s service centres.

Consultation Timeline MARCH

APRIL

MAY

JUNE

24

24

23

24

25

26

31

28

Submissions Open

Submissions Close

Hearings Maniototo

Hearings Vincent

Hearings Teviot Valley

Hearings Cromwell

Hearings Council

Annual Plan Adopted

Hearing dates are subject to change. Hearing times and dates will be advertised on Council’s website and in the CODC Noticeboard on page 5 of The News.

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ANNUAL PLAN 2017/18

Submission Form Name Address

Post Code

Email Phone (daytime)

Local Community Board (if known/applicable) please tick Cromwell

Maniototo

Teviot Valley

Vincent

Unsure

N/A

I am writing this submission: (please tick)

as an individual

on behalf of a group (include group name and your position)

I would like to present my submission in person to Council (please tick) Yes

Tips for making an effective submission

No

If you wish to present to Council you will be given a 10 minute time slot, which includes time for questions. Please limit your presentation to five minutes.

Please note all submissions (including personal details of submitters – name, address and phone numbers) will be public documents.

Ways to get your submission to us: Email:

submissions@codc.govt.nz

Post:

Annual Plan, Central Otago District Council, PO Box 122, Alexandra 9320

Deliver: Central Otago District Council, 1 Dunorling Street,

Alexandra or any of Council’s service centres.

Submissions close 5pm Monday 24 April 2017 10

Head each of your topics with a title so we clearly know what issue you are submitting on. Make it clear what you are supporting or opposing and give reasons why.

Please print clearly with a dark coloured pen so your submission is easy to read and copy.

If you need extra sheets of paper please use full A4 sized pages.

Include your name, address and phone number on each extra sheet of paper.

Please note that Council may have other processes underway that may be more appropriate for your submission. If this is the case, we will divert your submission to that process. We will let you know if this happens.

ANNUAL PLAN 2017/18

Submission Form Maniototo Community Healthcare Facility Project Which option do you support?

Option 1: Do not provide any funding

Option 2: Fund through a Loan

Preferred Loan Term:

Preferred Level of Funding:

Option 3: Part fund through Property Sales and Loan Funding

Preferred Loan Term:

Preferred Level of Funding:

Further comment:

Central Otago Touring Route Which option do you support?

Option 1: Fund the Preferred Option

Option 2: Fund an Alternate Route

Option 3: No funding

Further comment:

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ANNUAL PLAN 2017/18

Submission Form Do you have any other comments to make regarding this year’s Annual Plan?

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