Draft long term plan 2015 2025 consultation document

2015 – 2025

Draft Long Term Plan CONSULTATION DOCUMENT

Ruataniwha – Kaiapoi Civic Centre

What is a Consultation Document?

Every three years the Waimakariri District Council updates its Long Term Plan outlining plans and budgets for all of its services.

This Consultation Document sets out the Council’s key issues in the Draft Long Term Plan, the proposed budget provision for them and estimates of the potential overall impact on your rates. The document invites you to consider what is being proposed and to share your views with the Council on the Draft Long Term Plan 2015-2025 before it is finalised in June this year. Guidance and information on making submissions are included in this document.

If you would like more detailed information on the options considered for key issues and other relevant information this can be found in the table on page 29.

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Mayor’s Message Since September 2010, a considerable amount of the Council’s energy and effort has been directed towards earthquake recovery, with long-term social, infrastructure and town centre recovery being the Council’s top priorities.

Proposed rate increases have been kept in line with projected increases in Local Government inflation rates, and rates increases are capped within a quantified limit (see page 21). However, there are three proposals that would see rate increases greater than inflation in some years.

The Council is particularly interested in your views on these. They are

With most of the recovery responses now well underway, it is timely to consider what our District’s needs are for the next ten years.

• investing – in addition to the $4 million to be spent in 2014/15 in response to the June 2014 floods - a further $16.09 million in flood mitigation works over the next ten years – the Council believes it should commit to this work

Since 2010 the Council has invested heavily in community infrastructure with the rebuild of the Kaiapoi Aquatic Centre, the new Ruataniwha - Kaiapoi Civic Centre and the redevelopment of the Rangiora and Oxford Town Halls. We are now very well served with community facilities.

• a proposal for a three-bin kerbside refuse collection service in urban areas from 2016 at a standard cost of $335 per household - with variations in bin sizes and rebates for low volume users and

The Council has also made a number of investment decisions that are in the District’s long-term interests. These include the construction of the new Cones Road bridge over the Ashley Rakahuri River and commitments to support roading and public area improvements in our main town centres.

The Council is very interested in your views on these issues, other key proposals in this consultation document and our overall financial and infrastructure strategy documents.

The District has grown rapidly since the 2010 earthquakes with its population now estimated to be 55,000. We expect the population to grow to about 63,000 by 2025.

I believe the outlook for the District over the next ten years is very bright, with the Council having produced a positive, yet prudent and responsible plan and budget.

Previous Councils’ decisions to plan for long-term growth and investment in key infrastructure were very sound. The construction of the Eastern District Sewerage Scheme and new upgraded water supplies mean the District is well positioned to manage the effects of anticipated growth on infrastructure over the next 30 years.

I commend this consultation document to you and look forward to receiving your submission.

Having committed $140 million to earthquake repairs, renewals and improved community facilities since 2010, the Council is proposing a level of capital spending over the next ten years to maintain existing services, invest in required infrastructure renewal, and spend wisely on new infrastructure needed to support the anticipated further growth of the District.

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• a provision of $23 million to build an indoor sports complex in 2020/21– the need for better indoor court facilities has been a longstanding issue for the District.

David Ayers Mayor

Overview Given that the Waimakariri is one of the fastest growing districts in New Zealand, the Council continues to plan for residential and business growth, ensuring sufficient urban land is available and appropriate infrastructure services are in place to cater for new residents and new businesses. A key part of this is to ensure essential network infrastructure is in place so that wastewater, community water supplies and storm water systems are adequate to cater for a growing population. A changing community has additional demands on improved levels of service and the Council needs to consider a range of services including kerbside collection, public passenger transport infrastructure and community and recreational facilities. The future of the areas zoned “red” following the earthquakes is not a decision for this Council but, once a decision has been made, there is likely to be a call on the Council’s resources to contribute towards implementing the future use of these areas.

This Draft Long Term Plan proposes new capital investment for upgrading sewer facilities in Rangiora and Kaiapoi ($56 million) and providing for flood management in various parts of the District ($16.09 million). These capital works will be funded by a combination of general and targeted rates to the properties benefiting from the improved levels of service. It makes provision for a contribution, in five years’ time, to meet the need for indoor court facilities in the District.

Rates movement - includes proposed 3-bin kerbside collection (2016/17)

Rates movement - excludes proposed 3-bin kerbside collection

More work is required to refine the Indoor Courts project and determine cost.

The Council decided at its budget meeting in January 2015 to include a 3 bin kerbside collection service in existing urban collection areas in the Draft Long Term Plan, with a proposed starting date in July 2016. This 3 bin kerbside collection service would be funded by a targeted rate of $335 per annum per property. Rebates for low volume usage and possible variations dependent on bin size will apply.

There is also a proposal for an extended recycling area in Ohoka, Mandeville and Swannanoa.

Projected rates from 2015/16 to 2024/25 are forecast to increase on average by 4% in 2015/16, 13% in 2016/17, 4.7% in 2017/18 and thereafter by 3%-4% per annum.

These graphs show the proposed rates if all other proposals in the Long Term Plan are adopted.

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Planning for and Managing Growth

Other 21,500

In order for the Council to estimate the increase in rateable properties over the next ten years, it is important to have an accurate projection of the District’s population at the beginning (2015) and end (2025) of the Long Term Plan period.

The diagram below sets out the estimated number of people in each of the major population centres and the rest of the District at 2025.

The District’s total population is projected to grow from 55,000 in 2015 to 63,000 in 2025, which is consistent with Statistics New Zealand’s medium projections. Council monitors population growth patterns and calibrates Statistics New Zealand projections with their own surveys and demographic analyses.

Oxford 2,500

Projected Resident Population at 30 June 2025 63,000 Woodend 4,000

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Rangiora 18,000

Pegasus 4,000

Kaiapoi 13,000

Kerbside Collection Services

Walking & Cycling

Kaiapoi Town Centre

Park & Ride

Flood Mitigation & Protection

Red Zone Futures

Rural Seal Extension

Indoor Court Facility

Rangiora Town Centre

Sewer Upgrades

KEY ISSUES

What is the Council planning to spend over the next ten years 2015-2025?

For detail on the options considered for these key issues see the table on page 29.

Copies of the full Draft Long Term Plan (2015-2025) and other relevant documentation are available at all Council Service Centres, Libraries and Aquatic facilities (Rangiora, Kaiapoi and Oxford) and online at waimakariri.govt.nz

$4

MILLION

operating expenditure from 2016/17

Kerbside Collection Services

The Council proposes making a significant change in service levels from a ‘recycling wheelie bin and pay per rubbish bag’ collection service to a ‘rates-funded multiple bin collection service’. The main reasons for the change are improvement of the range of options available, health and safety in managing and collecting household waste by eliminating the need for rubbish bags and introducing an organic waste collection service.

Options considered by Council can be found on the ‘more information’ table on page 30.

The Council has decided to include in the Draft Long Term Plan the option of a 3 bin collection service at a standard cost of $335 per property. Variations to this cost per property will be available depending on the options selected for bin size (80, 140 and 240 litre bin sizes will be offered) and a differential rate charge.

A rebate will also be offered to low volume users using radio frequency identification (RFID) tags to record frequency of use.

Charges would therefore vary in a range from $240 (for 3 x 80 litre bins) to $420 (for 3 x 240 litre bins).

The Council proposes to confirm the area and properties of the existing kerbside recycling collection services in Ohoka, Mandeville and Swannanoa. A map of these extended areas can be found in the Draft Long Term Plan on page 14.

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Type of Rate

Costs to User(s)

Targeted rate (residential)

$335.00 per year

Capital $’000

Operating $’000

–

4,000

MAKE A SUBMISSION: Let us know your views on these proposed changes to the District’s kerbside collection service.

$23 MILLION

capital over two years 2020-2022 loan funded

Indoor Court Facility

During 2014 the Council commissioned a feasibility study which concluded that the District needed an additional indoor sports facility. This would provide four separate indoor courts with associated changing and support facilities to meet existing and future demand from sports like basketball and netball. Subsequently there have been discussions with various groups and individuals as well as the North Canterbury Sport and Recreation Trust on what such a facility should include.

The Council has included a provision of $23 million over two years from 2020-2022 in the Draft Long Term Plan as a contribution to the construction of an indoor court facility. It has also included $100,000 in 2015/16 for the preparation of a functional design brief. This is a necessary key step to clarify the detailed scope of what needs to be included in a new facility. It will detail the types and amount of floorspace as well as building services that need to be provided. The completion of this functional design brief will enable an accurate cost estimate to be calculated and this will also assist in identifying any other external funds that may be available.

The provision of $23 million would cost approximately $108 per ratepayer over a 25 year period. Note that this only relates to the capital cost of building an indoor court complex and any Council contribution to the running costs of a complex would be additional.

Type of Rate

Costs to User(s)

Targeted rate (community service charge)

$108.00 per year for 25 years from 2022/23

Capital $’000

Operating $’000

23,000

1,836

While more detailed information is needed and will be obtained before final decisions on such a facility are made, the Council believes it is important to seek community views on the concept.

MAKE A SUBMISSION: What do you think of Council allocating this amount for this purpose?

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$16.09 MILLION

capital over ten years 2015–2025

Flood Mitigation & Protection

10

Capital $’000

Operating $’000

$20.86 average per rateable property

4,255

370

Rangiora Urban Drainage: land value

$39.34 average per rateable property

3,010

262

Kaiapoi Urban Drainage: land value

$174.40 average per rateable property

8,829

775

Type of Rate

Costs to User(s)

District-wide general rate

High rainfall events in June 2013 and June 2014 resulted in widespread flooding in the District. The Council responded by allocating $4.19 million in 2014/15 for immediate flood mitigation works. These immediate works were for upgrades in the worst flooded areas where improvements could be made cost effectively and quickly. In Mandeville the drainage upgrades will provide a 20% Annual Exceedance Probability (AEP) capacity (a 1 in 5 year event) for the drains that are being improved. In Kaiapoi the Parnhams drain and pump station have had a 100% increase in capacity. The public were consulted on the options for improvement in public meetings and information updates, and the options considered by Council can be found in the ‘more information’ table on page 30. A further $16.09 million on flood mitigation and storm water works is proposed for 2015-2025. An extension of the Ohoka Rural and Kaiapoi Urban Drainage Rating Areas is proposed as well to better reflect the distribution of costs and benefits.

It is proposed that the $16.09 million is allocated to works in Ohoka, Mandeville, Kaiapoi, Rangiora, Fernside and other areas. It is proposed that the funding of the flood works would be through both the existing urban drainage rate for infrastructure related works and the general rate for flooding related works. The $16.09 million therefore would be funded from a combination of the district-wide general rate ($4.26 million), the Kaiapoi urban drainage rate ($8.83 million) and the Rangiora urban drainage rate ($2.95 million). Modelling of options will be carried out for future works considering 2% AEP and 20% AEP storm scenarios. There will be public consultation on the options and proposed upgrades as they are progressed.

Maps of the extended drainage areas can be referred to in the Draft Long Term Plan on page 15.

MAKE A SUBMISSION: What are your views about 1) $16.09 million spend on flood mitigation works, and 2) expanding the drainage rating areas as proposed?

you

What do think?

Red Zone Futures

$6.76 MILLION

capital expenditure over eight years 2016–2023 loan funded

$0.62 MILLION

operating expenditure from 2016/17

What’s your vision for the red zones in the Waimakariri District?

Tell us your ideas and help shape around this land for future generations Despite uncertainty how theto enjoy.

Red Zones are to be used, the Council believes it is prudent to plan Discuss the possibilities for the red zones with CERA, the Waimakariri and budget for contributing to their future development – not only for the benefit of the immediate District Council and your community at one of the following community workshops: Kaiapoi and The Pines/Kairaki communities but also in adding to amenity and enjoyment opportunities Location: Kaiapoi Golf Club, 373 Williams Street, Kaiapoi. for the District.

There are between 60 and 80 hectares of ‘Red Zone’ land that may be available Dates:whole Monday 11 August Wednesday 13 August for community use.

This will need developing and maintaining and there could be significant land Monday 18 August* Time: 7-9pm management responsibilities on the Council depending on the decision from Central Government in conjunction with Pines and Kairaki Beaches Association about*Heldroles and responsibilities.

For more information and to contribute your ideas visit:

$6.76 million canvasredzone.org.nz over eight years has been allocated in the Draft Long Term Plan for the restoration of Red Zone areas for future recreational, business or environmental use.

Join the conversation #canvasrz

Costs to User(s)

District-wide general rate

$34.76 average per rateable property from 2023/24

Capital $’000

Operating $’000

6,766

622

MAKE A SUBMISSION: What do you think about this provisional allocation for the Council to contribute to Red Zone future use?

Canvas001 TN

Type of Rate

This will be funded District-wide so that the impacts of the earthquakes and the subsequent repairs and restoration are shared broadly by all properties in the District.

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$56 MILLION

capital over ten years for sewer upgrades & new treatment systems

Eastern District

Sewer Upgrades

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Type of Rate

Costs to User(s)

Eastern District Sewer Scheme treatment upgrades

$155.30 per property connected to scheme

Capital $’000

Operating $’000

55,998

5,836

The main purpose of the Rangiora sewer upgrade is to help prevent the existing sewer overflows in the central Rangiora area and help the Council meet an appropriate level of service to this community. The existing system is prone to overflowing in certain locations during moderate to large rain events causing raw sewage to flow onto private property and into waterways. A package of works has been identified to help address current system deficiencies and also to provide for growth in both west and east Rangiora. The total value of the works amounts to $16.5 million, with funding from a mixture of development contributions ($7.6 million) and loan funding ($8.9 million). Further work is planned beyond the ten years of this Long Term Plan.

In Kaiapoi, a further $14.3 million for sewer upgrades to address system deficiencies and cater for growth has been included from 2019/20 to 2024/25. The existing treatment systems at Rangiora and Woodend need to be extended to cater for growth. A total of $16.5 million has been allocated for the construction of a new pump station and aeration ponds at Rangiora’s waste water treatment plant, and $8.7 million has been allocated for new aeration ponds and additional wetlands at Woodend waste water treatment plant.

MAKE A SUBMISSION: Do you support the sewer upgrade works and how they are proposed to be funded?

$4

MILLION

$3.77 MILLION

capital for Kaiapoi in 2015/16

capital for Rangiora in 2015/16 and 2016/17

$2.2 MILLION

capital for Rangiora in 2019/20

Town Centres

The Council in 2014 prepared a North of High Street (Rangiora) precinct plan for the Minister for Earthquake Recovery in response to the Government’s overall Land Use Recovery Plan. The plan proposes intensification and new commercial developments within the High/Durham/Blackett/Good Street block, including a large retail building with public parking above. It is a further key step in the recovery of the town centre in addition to realignment of Red Lion Corner and two-waying High Street.

Public Improvements Capital $’000

Operating $’000

Type of Rate

Costs to User(s)

Town Centre Upgrades District-wide general rate

$18.69 average per rateable property from 2015/16

3,766

333

Rangiora Parking District-wide roading rate

$31.15 average per rateable property from 2019/20

6,213

532

This Draft Long Term Plan includes $4 million to fund the Council’s share of the proposed parking building. It also includes $2 million to fund longer term public off-street parking demands in line with a wider town centre parking strategy for Rangiora. The Council is proposing to fund this through loan funding and financial contributions.

Significant on-street improvements in Kaiapoi Town Centre have been completed or are planned. Provision is also made for expenditure of a further $3.77 million to complete key aspects of the Kaiapoi Town Centre Plan, including streetscape/amenity and links to residential Red Zones. While the earthquakes are behind us there is still an ongoing significant programme of works including $20-$25 million for infrastructure repairs and $2.5 million for Kaiapoi River enhancement and wharf repairs.

A further report for the Kaiapoi River Bank Project will be prepared for Council prior to the adoption of the Draft Long Term Plan in June 2015, to increase the budget to $8.5 million.

MAKE A SUBMISSION: What’s your opinion of the proposed improvements to the Rangiora and Kaiapoi Town Centres’ Public Improvements Programme.

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Walking & Cycling

Park & Ride

Rural Seal Extension

Additional Issues For detail on the options considered for these additional issues see the table on page 29.

Copies of the full Draft Long Term Plan (2015-2025) and other relevant documentation are available at all Council Service Centres, Libraries and Aquatic facilities (Rangiora, Kaiapoi and Oxford) and online at waimakariri.govt.nz

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$4.9 MILLION

capital over two years 2022-2024 loan funded

Park & Ride

One of the major issues facing the District’s commuters is traffic congestion on the Northern Motorway. Some 45% of people who live in the District work outside the District.

Infrastructure Type of Rate

Costs to User(s)

District-wide general rate

$15.32 average per rateable property from 2023/24

Capital $’000

Operating $’000

4,909

284

The Council plans to build park and ride facilities at strategic locations to enable commuters to safely park their vehicles and then catch public transport into Christchurch City. Provision is made in 2022-2024 for park and ride facilities. No detailed analysis has been carried out and the estimates are indicative.

Other initiatives are underway to improve public transport service levels.

MAKE A SUBMISSION: What’s your opinion of the Council’s plans to provide park and ride facilities?

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$1.1 MILLION

capital over four years 2016/17–2019/20 loan funded

Walking & Cycling

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Type of Rate

Costs to User(s)

Roading rate

$5.93 average per rateable property from 2019/20

Capital $’000

Operating $’000

1,114

103

The District’s Walking and Cycling Strategy was approved by the Council in 2011 and the 2012-2022 Long Term Plan allocated $1 million over four years from 2016/17 to 2019/20 for its implementation.

This provides for modest expenditure for walking and cycling paths and, in time, connecting the main towns in the District with safe walking and cycling routes.

It is unlikely that the strategy will attract New Zealand Transport Authority (NZTA) subsidies since there are no NZTA commuter routes for walking and cycling in the District.

MAKE A SUBMISSION: What are your views on the Council’s proposed allocation for the District’s Walking and Cycling Strategy?

$1.2 MILLION

capital over ten years 2015–2025 loan funded

Rural Seal Extension Type of Rate

Costs to User(s)

Roading rate

$3.57 average per rateable property from 2024/25

Capital $’000

Operating $’000

1,236

65

The Council proposes a modest allocation for rural seal extension over the next ten years in keeping with its policy to provide seal extension for those roads that carry more than 200 vehicles per day. It receives no subsidy for sealing of roads with low traffic volumes.

The provision would allow about 5km of road in total to be sealed per annum.

MAKE A SUBMISSION: What is your viewpoint on the Council’s rural seal extension allocation?

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Financial Strategy HOW RATES, DEBT AND LEVELS OF SERVICE WILL BE IMPACTED IN THIS LONG TERM PLAN

18 Waimakariri River Braids ©Henrico Prins – creativecommons.org/licenses/by-nc/2.0/

The Council’s Financial Strategy includes key financial parameters to guide decisions on prudent, long term funding.

Rating requirements over the next ten years continue to be influenced by recovery from the Canterbury earthquakes and high levels of population growth. Both the rebuilding of community infrastructure and the demand for improved levels of service from a growing community have resulted in very little ‘financial headroom’ for this Draft Long Term Plan. The probabilities of a significant local earthquake or alpine fault earthquake in the next 30 years have been considered, and it is prudent to ensure borrowing capacity within policy limits exists to fund recovery from such an event.

Significant factors considered in the Financial Strategy

Canterbury Earthquakes

The financial impact of the Canterbury earthquakes and the associated rebuild continues. Although some of the costs were met from insurance and others from borrowing, the ongoing servicing cost of these loans will be met from rates throughout 2015-2025.

Growth

The estimated population of the District is expected to increase from 55,000 to 63,000. This is based on the assumption of an average of 2.5 people per household. Most population growth is expected in the eastern area of the District.

Provision exists in the District Plan to accommodate expected growth.

Where the money goes.

19.5%

Roading

14.0%

Sewerage Community Parks & Reserves

12.4% 11.2%

Water Supply

7.2%

Drainage

6.2%

Pools

5.9%

Libraries Community Buildings & Halls

4.3%

Planning & District Development

4.1%

Solid Waste Disposal & Collection

3.2%

Budget Provision to Recover from another Major Natural Disaster

The Council has developed a Risk Management and Financing Strategy to consider capacity for response to major natural disasters. The Council proposes to provide borrowing headroom of $70 million without insurance and $30 million with insurance in this Draft Long Term Plan. This allows for its share of funding of the estimated recovery cost of $172 million following a major earthquake. This is not proposed expenditure but provision for borrowing capacity in the event of a worst case natural disaster.

Price Level Adjustment for Inflation

The Draft Long Term Plan is adjusted for expected price movements over the next ten years. The price level adjustors, from which rates and other revenue movements are derived over the ten year period of the Long Term Plan, are based on those recommended to local government by Business and Economic Research Limited (BERL). These price rises are cumulative over the ten year period of the Long Term Plan.

3.0%

Council & Committees Promotion & Economic Development

1.3% 1.0%

Public Conveniences

4.5%

Other

0

2

4

6

8

10

$ millions “Other” comprises: Canterbury Museum (0.9%), Community Grants (0.9%), Community Development (0.8%), Civil Defence (0.8%), Community Boards and Ward (0.7%), Central Business Area (0.5%), Rural Fire (0.5%), Animal Control (0.1%), Cemeteries (0.1%)

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It should be noted that the Consumer Price Index (CPI) is not a robust indicator for local government inflationary costs - construction/infrastructure costs are not incorporated into the CPI. Balancing the Budget Each year’s projected operating revenues are set to meet that year’s operating expenses. It is expected that operating expenditure will increase from $75 million in the 2014/15 financial year to $112.9 million in the 2024/2025 financial year. This increase is due to a larger population, the demands for increases in levels of service and the price level adjustment.

Borrowing over the ten years to 2024/25 will increase by $87 million, from $85 million in June 2015 to $173 million by 2025. Borrowing will provide partial funding of the substantial post-earthquake capital works programme ($24m), infrastructure renewal ($114m), new levels of service ($108m) and growth ($140m). Other capital funding sources are from subsidies and grants ($52m). Development contributions ($107m) and asset sales ($2.5m) will fund growth-related expenditure and depreciation funding and reserves ($138m) will fund the balance of the capital expenditure.

Proposed Change to the Depreciation Funding Policy The Depreciation Funding Policy is proposed to be modified from 1 July 2015 to equate to the long term provision that is required to renew assets, taking into consideration inflationary and investment factors. The change will mean a $3 million reduction in the depreciation that is currently being funded. Any funding provision is held in an interestearning special fund account and made available for future asset renewals.

Rates Movements

• Rates smoothing – first introduced in the 2012-2022 Long Term Plan to offset the effects of the significant earthquake recovery expenditure programme. An element of rates smoothing has been retained in this Draft Log Term Plan 20152025 to manage those effects • Funding of earthquake related costs – costs are being progressively rated for over the period of the Draft Long Term Plan and have an effect on rates of about 1%.

Debt Levels and Interest Costs Net debt is forecast to peak at $173 million in 2024/25 which is well within policy limits of total debt as a percentage of total assets, not exceeding 15%. At the peak of the Council’s borrowings in 2024/25, total debt as a percentage of total assets is 6.5%. The Council adopts a long term approach when borrowing for long life assets of 25 years with an interest rate set at 6.7%. If a better interest rate is obtainable, savings are passed on in lower rating charges.

Interest Cost on Debt to Rate Revenue 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 14/15

15/16

16/17

17/18

18/19

19/20

20/21

21/22

22/23

23/24

Rates movements have been affected by:

Proposed in LTP

Proposed natural disaster with Insurance

• The impact of the Canterbury earthquakes

Proposed natural disaster without Insurance

Council Policy Limit

• Price level adjustments • Growth – while development contributions fund much of the growth, additional developed land and services need to be maintained and added to the Council’s operational expenditure • Service level increases – for some services, such as kerbside collection and flood mitigation, a greater total rates take will be required • Depreciation and interest payments – significant capital investment postearthquake means a corresponding increase in depreciation and interest • Change to the Depreciation Policy will lower the amount of depreciation requiring funding

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Security on Borrowing The Council generally does not offer assets as collateral on borrowing. The Council secures borrowing from the Local Government Funding Agency or its creditors with a charge over rates and rates revenue.

24/25

Rates (increases) affordability

Average Annual Average AnnualRate Rate increase increase (%)(%)

The following graph compares the Council’s planned rates increases with a quantified limit on rates increases included in the financial strategy included in this Draft Long Term Plan.

The quantified limit is the Consumer Price Index Index (CPI) plus growth in properties in the District plus Earthquake Recovery Rate increases plus increases for levels of service.

18.0% 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% 15/16

16/17

17/18

18/19

19/20

20/21

21/22

22/23

23/24

24/25

Year Actual rates increases (at or within limit)

Quantified Limit on Rates Increases Actual rates increases (exceeds limit)

Total Debt

N e w / r e p a i d

40

200

35

180 160

30

140

25

120

20

100

15

80 60

10

millions Total Debt Total Debt millions

New/Repaid millions millions

The Council manages debt through its treasury policy. New debt is managed under this policy, where the maximum amount of debt that can mature in any year is 40% of total debt.

Council exercises interest rate management over debt. Budget provision under the policy is to provide for replacement over 25 years. The graph below shows the summary of debt, new debt and provisions made for annual repayment profile.

40

5

20

-

15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 New Debt

Debt repaid

Debt

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Indicative Rates by Sample Properties $ CAPITAL VALUE (2014)

$ ACTUAL RATES 2014/15

$ PROPOSED RATES 2015/16

$ DOLLAR MOVEMENT FROM 2014/15

Kaiapoi urban

379,000

2,361

2,470

109

Rangiora urban

410,000

2,477

2,517

40

Oxford urban

355,000

2,739

2,856

117

Woodend urban

411,000

2,413

2,510

97

Pegasus

500,000

2,737

2,761

24

Ashley/Sefton

348,000

1,276

1,376

100

Cust

432,000

2,018

2,150

132

Fernside

651,000

4,201

4,499

298

Garrymere

655,000

2,782

3,065

283

Mandeville

731,000

2,638

2,737

99

Ohoka

719,000

2,418

2,751

333

Oxford Rural No. 1

1,023,000

3,125

3,649

524

Oxford Rural No. 2

700,000

2,131

2,361

230

Pines & Kairaki

293,000

2,293

2,191

(102)

Poyntz Road

547,000

2,381

2,559

178

Rangiora Rural

768,000

1,726

1,837

111

Summerhill

779,000

2,920

2,970

50

Tuahiwi

423,000

1,973

2,368

395

Waikuku

357,000

2,216

2,348

132

West Eyreton

496,000

2,073

2,184

111

EXAMPLE PROPERTY

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The 30 Year Infrastructure Strategy The Council’s Infrastructure Strategy identifies the significant issues and the overall approach to managing assets like water, sewerage and roading over the next 30 years.

Waimakariri has been one of the fastest growing districts in the country over the past 30 years, more than doubling its population. Accordingly, the average age of its infrastructure is relatively low. While sewer systems in larger settlements were laid from 1930 onwards the majority of the underground infrastructure has been laid since 1985. As result, the vast majority of the Council’s infrastructure is not due for replacement until after 2050.

This means that, for the next 30 years, the Council’s main focus is catering for growth and meeting increasing community expectations of the standard of services.

The Council has confirmed where future growth should occur (see map in Infrastructure Strategy page 9), and has a successful record of major infrastructure investment decisions, such as: • the $36 million Eastern Districts Sewerage Scheme with capacity for another 70-100 years of projected growth • the $16 million upgrade of the Rangiora water supply that should provide sufficient capacity for double the current Rangiora population.

Such commitment to major investment in its infrastructure to cater for growth in the past decade means that, for the next thirty years, the ‘backbone’ of the major infrastructure is in place. The main work required is to ‘plug-in’ new growth areas to the existing systems.

Major roading issues relate to connecting the eastern part of the District with Christchurch and making sure local arterial roads have sufficient capacity to cope

with anticipated traffic growth. With strong growth and the need to rebuild and strengthen community facilities such as pools, libraries and town halls following the Canterbury earthquakes, the District is now well served with such facilities. These include three major swimming pools all built, or rebuilt, in the last ten years, the $12 million Ruataniwha – Kaiapoi Civic Centre completed in early 2015, and the refurbished Rangiora and Oxford Town Halls.

Infrastructure – Key Issues • Catering for projected population increases and associated growth-related issues • Adjusting service levels to meet increasing community expectations and higher regulatory standards • Ensuring infrastructure is resilient to major natural events and the Council has sufficient financial resources to fund infrastructure reinstatement and • Renewing existing infrastructure in a sustainable manner.

Catering for growth

In just under thirty years the District’s population has more than doubled from 25,811 in 1986 to approximately 55,000 in 2015. That has accelerated recently with growth of 17,100 since 2001.

Based on Statistics NZ population projections, the Council estimates the population in 2025 to be 63,000. Using Statistics NZ’s medium growth variant population projection, this rises to approximately 73,700 by 2045.

Since the mid-late 1990s the Council has signalled where growth should occur.

In the past twenty years most growth has occurred in Rangiora, Kaiapoi and Woodend and the new town, Pegasus. There has also been considerable rural residential development.

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For the next thirty years residential growth is expected to occur predominantly to the west of Rangiora, in north Woodend, the remainder of Pegasus, and to the north and west of Kaiapoi, with several smaller rural residential developments in the eastern part of the District.

$83 million of the recovery costs, with $57 million recoverable from insurers and the Local Authority Protection Programme (LAPP), which funds the Council’s 40% share of below-ground infrastructure asset repair, leaving about $32 million to be funded by the Council itself.

Increasing service levels to meet community expectations and higher regulatory standards

Increasing expectations about the standard of local government have accelerated recently. Also new national standards require higher level drinking water and waste water discharge criteria. The Council is proposing expenditure of $16.03 million on flood mitigation and protection in 2015-2025 to complete a $21 million quality improvement programme, started in 2014/15.

Ensuring infrastructure is resilient in major natural events

The District is susceptible to natural hazards including flooding and tsunami in lower lying areas and the possibility of an alpine fault rupture or local earthquake.

The 2010/2011 Canterbury earthquake series provided insight into the damaging effects of earthquakes and the Council now has a stronger understanding of how its assets will perform in a major earthquake event. The Council will spend about $127 million recovering from the 2010/2011 earthquakes. Much of this spend has been invested in improving asset resilience and strengthening buildings.

The Council has developed and adopted a Risk Assessment and Financing Strategy to assess the financial effects of major natural disasters based on an expected worst-case scenario, which is a major earthquake.

Over halfway – © Aaron Campbell Photography

The Council will rely on several funding sources including continuing Crown and NZTA funding support, and having prudent insurance arrangements in place. The Council will also incur a share of the cost.

Any Council share of the recovery costs would need to be funded by borrowing as the Council does not anticipate having any significant cash or investment assets available to realise and contribute to a recovery. Accordingly, the Council has resolved to provide borrowing ‘headroom’ in its Draft Long Term Plan to cater for a maximum credible disaster event. The desired outcome is that, after the borrowing headroom has been allowed for, the Council will remain financially sound within its Treasury and Borrowing Policy limits.

The Council estimates that the maximum asset loss or damage and recovery costs from a major earthquake to be about $172 million.

It is assumed that the current level of Government support for emergency response and NZTA roading subsidies will remain in place. In total, this will fund about

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Main structure complete – © Aaron Campbell Photography

Renewing existing infrastructure in a sustainable manner

The Council asset management systems for recording and modelling the performance of its assets are well developed. All assets are recorded in databases linked to Geographical Information Systems, with details of replacement costs, asset age, materials and known condition. The information is considered very reliable. The sewer, water and stormwater systems in the main townships have been modelled to determine what level of service they provide. This information is used to determine when assets should be replaced or upgraded to cater for anticipated growth.

The vast majority of the Council’s sewerage, water and drainage assets do not need to be renewed until after 2050 and most of the renewal occurs towards the end of the 21st century.

Between 2070 and 2120 renewal of existing infrastructure will be a significant issue for the community. Changes in technology and standards, along with improved understanding of the expected life and performance of assets, will likely change greatly over this century and more contemporary renewal strategies may be adopted.

Replacement Costs ($) millions

Total Replacement Cost Forecast (in 2015 $) for the next 100 years

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ABOUT

GETTING

INVOLVED Council will be out and about in the community from 7 March to 7 April 2015 talking with you about issues in the Draft Long Term Plan 2015-2025. We’ll be at a range of events including community fairs and street stands around the District. For information on when and where, please see waimakariri.govt.nz How to make a submission

Your views are crucial to effective local authority decision making. Council wants your comments on information and proposals contained within this Consultation Document, or any other aspects of the Draft Long Term Plan 2015–2025.

How do I comment?

• Online – at waimakariri.govt.nz • Pick up a submission form – Submission forms are available at Council service centres and libraries. There is also a tear-out submission form in this document.

• Write to us – be sure to include your name and address.

Send your submission to: Draft Long Term Plan Submissions Waimakariri District Council Private Bag 1005 Rangiora 7440 • Email us longtermplan@wmk.govt.nz

Present your views to the Council in person

If you would like to present your submission to the Council in person, please choose one of the following dates and times. Please indicate your choice on your submission.

• Kaiapoi, Wednesday 29 April 2015 (between 1.30pm and 9pm) • Rangiora, Thursday 30 April 2015 (between 1.30pm and 9pm) The Mayor and Councillors are keen to hear your ideas and concerns, and encourage you to make a submission and/or to present your views to the full Council.

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If you have any queries about making a submission, please contact: Helen Stanley Phone: (03) 311 8900 ext 8874

Email: helen.stanley@wmk.govt.nz

Please return your submissions no later than 7 April 2015. Council reserves the right not to consider any submissions received after that date.

Alternate Phone:

Kerbside Collection

Indoor Court Facility

Flood Mitigation and Protection

1.

2.

3.

Your Submission

We welcome your opinion on these or any other aspect of the Draft Long Term Plan.

Key Issues

Town/City: Postcode:

Postal Address:

Primary Phone:

Email:

Organisation: (if applicable)

Name:

Please return your submission no later than 7 April 2015.

Please complete the name and contact details below. Anonymous feedback will be considered at the Council’s discretion.

Any individual or organisation can make a written submission. We welcome both general and detailed comment. Your submission will be considered by Council in an open meeting.

Submission Form

ABOUT THE DRAFT LONG TERM PLAN 2015 / 2025

LTC-03-11-04

COUNCIL USE ONLY

Continued over page

5.

4.

Town Centres

Sewer Upgrades

Red Zone Futures

Your Submission continued

6.

Your opinion on any other aspects of the Draft Long Term Plan

Please attach additional pages as required

Hearings – Dates/Times

Submit by email or online longtermplan@wmk.govt.nz waimakariri.govt.nz

If you would like to present your submission in person please select one of the allotted times below.

Submission presentations will be limited to 10 minutes.

1.30pm – 9pm, Wednesday 29 April 2015, Kaiapoi 1.30pm – 9pm, Thursday 30 April 2015, Rangiora

Mail to:

Draft Long Term Plan Submissions Waimakariri District Council Private Bag 1005 Rangiora 7440

More Information Below are details of what and where to find more information that is available upon which this Consultation Document is based, including the full Draft 2015-25 Long Term Plan. To view all documents online see waimakariri.govt.nz/draft-long-term-plan.aspx

TITLE

WHAT IS THIS

2015-2025 Draft Long Term Plan

The full draft LTP includes: - The statement of outcomes that guide the Council and the key risks and assumptions on which the LTP is based; - Plans for each of the 12 main Council activities (e.g. Roading, Water Supply, etc.), including costs, funding and performance information; - Information on 3 council controlled organisations (e.g. Enterprise North Canterbury); - The overall financial strategy, detailed financial information especially on proposed rating; and key financial policies.

30 Year Infrastructure Strategy 2015-2045

This 30 year view of the main assets that the Council manages: - Describes the core assets, significant infrastructure issues and factors influencing asset demand over the next 30 years; - Identifies the Council’s priorities and management strategies for infrastructure; - Provides 30 year financial estimates for core infrastructure expenditure.

Treasury Policy

Provides the policy framework for all of Council’s borrowing and investment (treasury) activities and defines key responsibilities and operating parameters within which borrowing and investment is to be carried out.

Development Contributions Policy

Sets out the rationale for and details by type and location the contributions to be levied from developers to recover the costs of providing infrastructure for new development in the District.

Risk Assessment and Financing Strategy Relating to Major Natural Disasters

The Strategy considers the likelihood and severity of major natural disasters, assesses how they could impact on the Council’s operations and its financial capacity and position. It provides the basis for including borrowing headroom for future disaster recovery within the Council’s Financial Strategy.

Depreciation Funding of Infrastructure and Long Term Council Assets

This report to the Council sets out the reasoning and details of changes to the Council’s depreciation funding policy included in the draft LTP.

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Kerbside Collection Services

Three reports are available: - ‘Urban Kerbside Collection – Issues and Options Paper’ - ‘Urban Kerbside Collection Future Level of Service: Report on Feedback’ - Solid Waste Long Term Plan Budgets – Additional Information about Kerbside Collection Services Map showing proposed recycling Kerbside Collection Service areas in Ohoka, Mandeville and Swannanoa

Indoor Court Facility

Two reports are available: - ‘Waimakariri District Indoor Court Feasibility Study 2013’ - ‘Draft LTP: Options for Provision of an Indoor Court Facility’

Flood Mitigation and Protection Works – information on options considered, details of the Council’s proposal and its financial implications

Two reports are available: - ‘Flood Mitigation Works and Funding – October 2014’ - ‘Flood Mitigation Works – Funding Options’ - Note included in this report are maps showing the proposed extensions to the Ohoka Rural and Kaiapoi Urban Rated Drainage Area boundaries

Sewer Upgrades

A presentation to the Utilities and Roading Committee is available: - ‘Central Rangiora Wastewater Upgrade’

Town Centre Public Improvements – information on options considered, details of the Council’s proposal and its financial implications

Two reports are available: - ‘Rangiora and Kaiapoi Town Centre Budgets’ - ‘Rangiora Town Centre Car parking – Strategic Approach’ Also go to waimakariri.govt.nz/your_council/district-development.aspx for substantial information on town centre development including the ‘North of Hight Precinct Plan’

Rural Seal Extension

One report is available: - ‘Subdivision Share Programme and Seal Extension Policy’

Growth Projections

One paper is available: - ‘Waimakariri District Population Projections as Assumptions for Use in preparing the 2015-25 Long Term Plan and the 2015-45 Infrastructure Strategy’ - V1.1 @ September 2014

- information on options considered, details of the Council’s proposal and its financial implications

– information on options considered, details of the Council’s proposal and its financial implications

– information on options considered, details of the Council’s proposal and its financial implications

– information on options considered, details of the Council’s proposal and its financial implications

– Information on the basis for the population projections for the LTP

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Consultation Document 2015-2025 Publisher Waimakariri District Council 215 High Street Private Bag 1005, Rangiora 7440

Audit Report

Published March 2015 File: LTC-03-11 Computer File: 150216021908 ISSN 2324-240X (Print) ISSN 2324-2418 (Online)

Independent auditor’s report on Waimakariri District Council’s Consultation Document for its proposed 2015 25 Long Term Plan

Responsibilities of the Council and auditor

I am the Auditor General’s appointed auditor for Waimakariri District Council (the Council). Section 93C of the Local Government Act (the Act) requires an audit report on the Council’s consultation document. I have carried out this audit using the staff and resources of Audit New Zealand. We completed this audit on 24 February 2015.

• meeting all legal requirements relating to its procedures, decisions, consultation, disclosures, and other actions associated with preparing and publishing the consultation document and long-term plan whether in printed or electronic form;

Opinion In my opinion:

• the consultation document provides an effective basis for public participation in the Council’s decisions about the proposed content of its 2015 25 long term plan, because it:

– fairly represents the matters proposed for inclusion in the long term plan; and

– identifies and explains the main issues and choices facing the Council and district, and the consequences of those choices; and

• the information and assumptions underlying the information in the consultation document are reasonable.

Basis of Opinion We carried out our work in accordance with the Auditor-General’s Auditing Standards, relevant international standards and the ethical requirements in those standards.

The Council is responsible for:

• having systems and processes in place to provide the supporting information and analysis the Council needs to be able to prepare a consultation document and long term plan that meet the purposes set out in the Act; and • ensuring that any forecast financial information being presented has been prepared in accordance with generally accepted accounting practice in New Zealand.

• matters relating to the electronic presentation of the report to the readers of the LTP consultation document I am responsible for reporting on the consultation document, as required by section 93C of the Act. I do not express an opinion on the merits of any policy content of the consultation document.

Independence We have followed the independence requirements of the Auditor-General, which incorporate those of the External Reporting Board. Other than our work in carrying out all legally required external audits, we have no relationship with or interests in the Council or any of its subsidiaries.

We assessed the evidence the Council has to support the information and disclosures in the consultation document. To select appropriate audit procedures, we assessed the risk of material misstatement and the Council’s systems and processes applying to the preparation of the consultation document.

We did not evaluate the security and controls over the publication of the consultation document.

John Mackey Audit New Zealand On behalf of the Auditor-General, Christchurch, New Zealand

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