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Published March 2021.
Porirua City Council 16 Cobham Court PO Box 50218 Porirua
5240
This document is available on our website
poriruacity.govt.nz
Porirua – our place, our future, our challenge Let’s krero
2 Consultation Document for the proposed LTP 2021-51
Message from Ngti Toa Rangatira E te iwi e noho nei i te riu o
Porirua, tn koutou katoa
The development of the city's Long-term Plan 2021-2051 will bring
changes to our city that we will be proud of.
Between now and 2051 we will see Porirua transform into a vibrant
and exciting place to be for residents and people who choose to
work here. We are blessed with hills, waterways, Te Mana o Kupe
bushwalks and two magnificent harbours, Porirua and Puatahanui, as
well as rich histories all anchored by Te Matahourua, the anchor
left here by Kupe.
As a challenge to all of us – we must look after our environment
and look after each other, especially our tamariki and
rangatahi.
Nou te rourou, naku te rourou ka ora ai te Iwi
With your contribution, and my contribution the people will
thrive
Taku Parai Chairman, Te Rnanga o Ngti Toa Rangatira
3
Contents Mai i t Koutou Koromatua 4 From your Mayor
Executive summary 8
Your views 16
Investment in the 3 waters – drinking water, wastewater 17
& stormwater
1. Investing in infrastructure 17
Protecting our harbour 19
Preparing for growth 20
Affordability 25
8. Te Rauparaha Arena hours 30
9. Living wage to contractors 32
10. How to go about balancing the budget 33
Our climate change response 34
Responding to Covid-19 34
Policies and strategies 36
Development Contributions Policy 36
Fees and charges 36
Consultation Document for the proposed LTP 2021-514
Mai i t Koutou Koromatua From your Mayor
It’s never been more important that we understand the choices and
challenges that confront us as a city. This Long-term Plan (LTP)
consultation document spells them out clearly. Now, we need your
help.
Simply put, the LTP looks out thirty years and asks: “how do we
best make sure infrastructure and services keep pace with a growing
city?”
For public safety, quality of life and harbour health, there is no
greater priority than investing in our critical three-waters
infrastructure – drinking water, wastewater and stormwater. That’s
why we are planning to spend $800 million over the next 30 years to
improve the pipe network, ensure water quality for our drinking
water, protect our environment (streams, harbour and coast) address
flooding hotspots, ensure the integrity of our wastewater system
and meet the challenge of climate change.
In roading, we are proposing to invest $323 million to improve
resilience and safety across the network, with a focus on high-risk
corridors, pedestrian crossings and school zones.
We have significantly increased our overall investment in
infrastructure from the previous LTP to improve our 3 waters and
transport networks.
Your input is critical to getting this right. So please take the
time to go through the document, discuss it with family and
neighbours, and let us know how you think the Council can best
address these challenges.
Given projected population growth, Porirua City will need more than
10,000 new dwellings over the next 30 years. This creates
additional demand on everything from precious water resources and
our
under pressure infrastructure to public transport and parking in
the CBD. What’s your view on the range of proposed solutions set
out here?
In order to meet our obligation to balance budgets, we offer an
alternative approach to funding Council activities and critical
investments. Do you agree with the idea of ‘smoothing’, which will
spread rates increases over the first three years of the LTP?
We’re also seeking your views as to what we do with the Moana Court
social housing. Do you agree with the plan to sell the 26 social
housing units – valued at more than $3 million – to the Crown or a
community housing provider, as long as tenants are protected?
There are also proposals in the LTP for new community assets,
including a Cultural Arts Centre in the city, and multi-use
community facilities in Eastern Porirua (2024-2028), in the North
(2031-34), Ttahi Bay (2035/36) and Whitby (2038/39).
Porirua City is going strong – but keeping pace with growth creates
budget pressures that directly impact your household rates. It’s a
balancing act, and recent events are a reminder that
underinvestment carries its own costs.
For Porirua to thrive, we need more than just a plan. To be
successful, the plan must enjoy broad support in the community.
That’s why we’re urging you to have your say now. Your input is
critical to getting this right so please take the time to go
through the document and let us know how you think the Council can
best address the challenges we face.
Ng mihi, Anita Baker
$323m on roading
pipeline?
5
A snapshot of our major projects over the next 30 years
3 waters Wastewater pipe and pump station renewals:
$359m
Wastewater storage tanks: $120m
Wastewater treatment plant: $45m
Installing water meters: $14m
Access Kenepuru Road, footpath, and cycleway improvements:
$8.6m
Parks Aotea Lagoon renewals: $3m
Property New community facilities across the city: $24m
Resource recovery & waste Additional capacity at Spicer
Landfill: $26m
7Consultation Document for the proposed LTP 2021-516
What it costs
What this could look like for you
What we’re faced with
» Ageing pipes
Infrastructure investment of $800 million over 30 years
But, if all consultation items are accepted this could drop to
7.81%
Average weekly rates increases:
Weekly increase:
$755K +$6.16
$644K +$5.35
$427K +$3.77
Our focus It’s time to invest in our ageing infrastructure, to
improve the health of our harbour, beaches and the city as a
whole.
We’ve heard from you that this is a priority, and that’s what has
shaped this Long-term Plan.
8.05% average
rates increase
Consultation Document for the proposed LTP 2021-518
Executive summary Our vision for Porirua City is that it is an even
greater place to live, work, and raise a family. This means we must
look after the wellbeing of our people, our harbour and our
home.
We want to provide the right services and facilities for everyone
now and in the future by:
• Investing in 3 waters infrastructure and catchment
restoration
• Proactively responding to the climate crisis
• Advocating for and providing a safe, healthy and thriving
community
• Putting children and young people at the heart of the city.
This LTP maps out the needs of the city for the next 30 years. It
builds on the guiding principles and policies in the Growth
Strategy, Climate Change Strategy, and Proposed District Plan. This
LTP isn’t business as usual, it takes into account our changing
city. It is confronting, but we believe realistic if we are to
address the challenges we now understand are coming our way.
This LTP is focused on:
• The 3 waters – drinking water, wastewater and
stormwater
• Our harbour
• Climate change
• Affordability.
As a city, we need to significantly invest in our infrastructure.
We are upgrading our wastewater and stormwater networks to ensure
they are able to protect our communities and harbour. We are
improving our drinking water network so we can continue to provide
reliable and sustainable access to clean water. We are also
investing in our transport network to meet the needs of our growing
city.
We are investing in Te Awarua-o-Porirua Harbour as it is our
greatest environmental taonga. Alongside investment in the
3 waters infrastructure, which
manages what comes out of the pipes, our stream- side restoration
programme will help the health of our harbour through improvement
of the catchment that drains into it.
We have become increasingly aware of the need to address the
impacts of climate change in everything we do. In 2019 our
rangatahi approached Council and asked for change. In response
Council developed a Climate Change Strategy, “Rautaki o te ao
Hurihuri”. Adopted in 2020, this strategy outlines what we will do
to reduce greenhouse gas emissions and what changes are needed to
make our services and infrastructure more resilient.
The investment in our city isn’t just about meeting the current
needs of residents, it also prepares us for future residents. Our
city is projected to grow by nearly 30,000 residents (more than
10,000 households) over the next 30 years. We need more homes, but
we also need to meet the social and cultural needs of our expanding
population. This could be done, for example, by building a cultural
arts centre and new multi-use community facilities in high growth
areas.
The Council is committed to supporting the community and
maintaining our services during the Covid-19 pandemic. In September
2020 the Council adopted the city’s Covid-19 Recovery Plan to help
us respond to the ongoing and emerging impacts of Covid-19.
In order to fund our infrastructure investment we need to take on
more debt. While this borrowing is unavoidable, we have been
careful to keep debt levels affordable now and in the future. We
have taken a close look at what we do, and how we do it, to find
savings. We have managed to keep the average rate increase to 8.05
per cent for existing ratepayers, without delaying investment in
our city.
Central government has undertaken a review of the 3 waters and
changes in the supply and management of the 3 waters is
coming. Whatever the changes may be, we will remain dedicated to
maintaining high quality services and ensuring our infrastructure
meets the needs of the community.
9
Strategic priorities In the short term Council will focus on four
things of key importance
Our vision Porirua City, a great place to live, work, and raise a
family
Community outcomes
Young people at the centre of our
whanau
Access
Sustainable use of resources Connected and accessible
transport
Ready for growth – infrastructure,
Diversity of organisms
community
Our people We are diverse and inclusive – a city with lifelong
economic and social opportunities
Our harbour We have a healthy harbour and catchment – a thriving
natural environment
Our home We build to last and adapt to change
Investing in 3 waters
Putting children and
of the city
Consultation Document for the proposed LTP 2021-5110
Rates The LTP sets out the budget for Porirua City. It proposes how
we plan to allocate funds to provide council services. The majority
of funding for these services comes from rates, so it’s worth
taking the time to talk about what rates are, how they’re
calculated, and how they’re allocated.
We are proposing an average rate increase of 8.05 per cent for
existing ratepayers, with the assumption that the number of
ratepayers has grown by 1 per cent, resulting in an 9.05 per cent
increase overall.
What are rates? Rates are a tax on property collected by local and
regional councils. Your rates pay for council services and
activities. We receive income from other sources such as fees, user
charges, and subsidies. After taking these into account, rates pay
for services and activities that have a public benefit.
Where funding will come from
Rates are the way that people who live in Porirua City contribute
to the maintenance and development of the public assets and
services they share with their neighbours. All property owners pay
rates, including Kinga Ora and other government departments.
Development Contributions 1%
Investment Income 0%
2021/22
How are they calculated? Rates are calculated annually through the
LTP and the Annual Plan. Put simply, we calculate the cost to run
the city and divide that cost among all the properties. The amount
of rates you pay depends on where you live, and the size and value
of your property.
Some properties will also have to pay a targeted rate. This is
applied when a particular service is provided within a limited
area, and it’s unfair to split the cost of this service across the
entire city.
Where are your rates spent? The following graph shows the proposed
rates funding for the services we provide. The LTP provides more
detail on how these services will be delivered.
Democracy 4% Wastewater 15%
Libraries 4% Ptaka 4%
Stormwater 5%
Drinking Water 10%
Emergency Management 1% Regulatory Standards 2% Climate Change
Response 0%
Arena, Pools & Events 10%
Resource Recovery & Waste 4%
11
The challenges for our city The LTP maps out our plans and
direction for the city over the next 30 years. In planning for the
future, it is necessary to consider the challenges Porirua and its
residents are currently facing.
As the number of homes in our city grows, we need to protect the
environment and plan for population growth in the context of
climate change. We need to be resilient and adaptive so that we can
respond to both the challenges we know about, and the unexpected,
such as the Covid-19 pandemic. We are also wanting to invest in
people’s wellbeing, that is, planning to provide facilities to meet
the broader social and cultural needs of our residents as we
grow.
Our planned investment has been influenced by a number of factors
the Council is directed by and/or required to respond to. The most
significant of those influences are:
• Transport modes and change in the transport network when
Transmission Gully opens
• Housing demand, house and rent prices and a growing city
• Central government’s National Policy Statements regarding urban
development and freshwater management
• The changes in national climate change policy and weather-related
events on the ground
• Community expectations around safe drinking water and a healthy
harbour
• The four wellbeings focus by central government
• The impact of Covid-19
• Affordability.
This LTP seeks to provide good quality services and robust
infrastructure without putting undue burden on ratepayers. This LTP
outlines our proposed infrastructure investment. We want to know if
you think we have got the balance right.
Investment in the 3 waters – drinking water, wastewater &
stormwater One of the city’s most significant challenges is
improving the performance and condition of our ageing 3 waters
infrastructure system. A well- functioning 3 waters system is
vital for the health of our residents and the environment. A major
focus of this LTP is investment in our 3 waters infrastructure
to make sure it meets the needs of the city now and into the
future.
A lot of the city’s infrastructure has reached the end of its
useful life. This is particularly the case for the 3 waters
system, which accounts for 56% of our total infrastructure budget
for the next 30 years. Of the 3 waters, wastewater needs the
most investment to reduce the harmful effects of leaking pipes and
wastewater overflows on our harbour and the wider
environment.
We plan to achieve this by building wastewater storage tanks at key
locations throughout the city to better manage the volume and flow
of waste and to accommodate additional population growth over time.
The storage tanks will allow time for our sizable renewals
programme to be implemented, which will improve the overall
condition of the pipe network.
Kinga Ora (formerly Housing New Zealand) is undertaking a
significant regeneration within Eastern Porirua in partnership with
Council. In the first 10 years of the LTP there is a large
dependency on Kinga Ora to undertake significant replacement of
3 waters infrastructure within the East.
While there’s a lot of work to be done on the public network owned
by Council, we also need to address issues with private connections
that feed into the network. By working on improvements together we
can fix the leaks and cross-connections causing pollution of our
waterways. One way we are doing this is through the “Knowing your
pipes” initiative which will see Wellington Water Limited crews
checking connections between the private and public networks. If
there is any cost to fix faults on private property, there will be
the ability for owners to apply for assistance to spread the cost
via council rates.
Consultation Document for the proposed LTP 2021-5112
There is also an ongoing need to reduce water usage in Porirua and
improve the sustainability of our water sources. On average we use
323 litres of drinking water each day for every resident. When we
consider that Porirua shares its drinking water with all the
residents of the Hutt Valley and Wellington City, that the region
is expecting significant population growth, and that we can expect
more droughts as a result of climate change, it is obvious that we
need to manage our use of drinking water better. This will
mean changing behaviours towards water use and more efficient
detection and repairs of water leaks.
We believe installing water meters from 2025 is essential. This
will help us identify where leaks are so they can be fixed. It will
also provide residents with a way to monitor and reduce their water
usage. Without the information from water meters we won’t know if
we’re improving.
Central Government is reviewing how to improve the regulation and
supply of drinking water, wastewater and stormwater. The Government
expects to make substantive decisions in April/May 2021. It is
expected that Councils will be asked to consult with their
communities in late 2021 whether they should join one of the new
water service delivery entities. We intend to consult on this
decision, once Central Government has made their decision in
April/May and more facts available, separately to the consultation
on this LTP.
For Councils that participate in the reforms, transfer of
responsibilities, assets, is likely to occur from 2023/24 onwards.
As the reforms are yet to be finalised, this LTP has been developed
under the assumption that the Council will remain responsible for
the ownership and maintenance of our 3 water assets.
Irrespective of our future role in the supply and management of the
3 waters, the health and wellbeing of our residents and environment
will remain a priority.
For more information on the Government reforms visit
dia.govt.nz/three-waters-reform-programme
Protecting our harbour Toit te marae o tane, toit te marae o
tangaroa, toit te iwi
Protect and strengthen the realms of the land and sea, and they
will protect and strengthen the people
Te Awarua-o-Porirua is our harbour and a taonga to
Ngti Toa.
We are committed to restoring the health of the harbour as it is
important as a cultural, recreational and natural resource.
The health of the harbour has declined as Porirua has grown
alongside inadequate practices that have not helped protect it. As
our city continues to grow it has become urgent to respond. This is
why
protecting and restoring the health of our harbour is a central
part of this LTP.
Our harbour depends on the health of our streams and is impacted by
how we use our land. It is reliant on fit-for-purpose 3 waters
infrastructure that is in good condition and meets compliance
standards.
We are addressing leaks and cross connections between wastewater
and stormwater to prevent untreated sewage contaminating our
waterways.
We are also committed to directly improving the health of our
streams and harbour by planting 280km of riparian margins to reduce
silt, sediment and contaminants from entering our harbour.
Porirua is growing and we know that urban development is a major
contributor to the poor health of the harbour. There are a range of
provisions
in the Proposed District Plan to reduce the impacts of growth
through improved development practices. Provisions around
stormwater neutrality, water sensitive design and sediment control
plans are examples of the Proposed District Plan’s intent to
improve the health of the harbour.
Our climate change response Porirua City declared a climate change
emergency on 26 June 2019. There’s still a lot of work to do in
order to understand the impact of climate change on our city and
what steps we need to take to ensure Porirua is resilient. The
impacts of climate change are already being felt with increasing
temperatures, sea level rise, and extreme weather events.
Climate change is a long-term issue for Porirua. While we don’t
have all the answers, we need to start planning our responses now.
Climate change will affect levels of service and infrastructure
investment decisions. Our climate change strategy Rautaki o te ao
Hurihuri lists actions that will be undertaken over the next few
years. These actions are intended to support mitigating the effects
of climate change by reducing greenhouse gas emissions, build a
better understanding of the likely impacts and to prepare the city
for those impacts. The purpose of the climate change strategy is to
make sure we’re doing the most important things first, so the
resources we need (time, money, and people) are allocated
appropriately.
Where the impacts of climate change are well understood we have
factored them into specific infrastructure projects, such as sand
dune restoration and flooding mitigation. A planned risk assessment
of the impact of climate change on the city will further inform
future infrastructure investment decisions.
Being ready for growth Porirua City is expected to experience
significant population and housing growth over the next 30 years.
Our forecasts show that the city will grow by nearly 30,000
residents over this time period. This growth requires careful
planning and investment.
Our challenge is to enable population and housing growth, while
protecting and improving the natural environment and community
wellbeing. Where possible a green approach is being integrated into
the design of infrastructure – like the use of wetlands to reduce
the impact of excess stormwater.
Population growth will also require investment in community
facilities to support social and cultural wellbeing. We’re
proposing new community multi- purpose facilities across the city
in a staged way to meet population growth.
Where growth is occurring, we are using it as an opportunity to
build new infrastructure and upgrade existing infrastructure with
the harbour front of mind. We are working closely with developers
and other agencies to ensure that investments in infrastructure
provide sustainable and fit-for-purpose solutions across the
city.
Responding to Covid-19 Porirua City is committed to supporting the
community and maintaining our services during the Covid-19
pandemic. We have learnt a lot about our city’s vulnerabilities
over the last twelve months and we want to ensure we are well
placed to enable safe, healthy, resilient communities and a
thriving economy. In September 2020 the Council adopted the city’s
Covid-19 Recovery Plan that provides us with the ability to respond
to the ongoing and emerging impacts of Covid-19.
Consultation Document for the proposed LTP 2021-5114
Affordability Given the impacts of Covid-19, increasing house
prices and rent costs in the city and the general cost of living,
some may struggle to afford rate increases. We have been careful to
ensure that the cost of services is achievable in terms of both
Council debt and the impact on ratepayers.
We have made some hard decisions about what projects we need to
invest in and when. Each asset management plan has had to be
reprioritised and projects rescheduled to ensure we can deliver an
infrastructure programme that addresses the biggest issues in the
city without putting undue pressure on ratepayers.
The table below shows the proposed rate increases for 2021/22 (Year
1 of the LTP). For a breakdown on what makes up the rates, and a
more detailed indication of rate increases please see page
39.
Group Average
(% increase) Average
Residential 8.04% $278.11 $5.35
Hongoeka community 8.84% $148.14 $2.85
Commercial 7.31% $626.59 $12.05
Industrial 7.34% $655.40 $12.60
Motels 9.59% $1,999.07 $38.44
Shopping plaza 20.88% $27,328.48 $525.55
We have also included tables which provide comparisons between our
different rating categories. The tables below relate to a property
with Capital Valuation of $1 million. They provide an estimate of
rates for 2021/22 as a percentage of Capital Value, and the average
increase in percentage and dollar terms.
Group Capital
Value General
Rates* Targeted
as a % of CV Total rates
as a % of CV
Farming Median $1,000,000 $2,578 $691 $3,269 0.26% 0.33%
Commercial $1,000,000 $11,419 $3,194 $14,613 1.14% 1.46%
Motels $1,000,000 $5,231 $10,481 $15,712 0.52% 1.57%
Shopping Plaza $1,000,000 $11,419 $1,778 $13,197 1.14% 1.32%
*Targeted rates include kerbside recycling, water, city
development, uniform annual general charge, and wastewater.
Group Capital
Value 2020/21
Rates 2021/22
Rates Average
(% increase) Average
Residential $1,000,000 $4,733 $5,139 8.58% $406 $8
Rural $1,000,000 $3,059 $3,536 15.60% $477 $9
Farming Median $1,000,000 $2,991 $3,269 9.29% $278 $5
Commercial $1,000,000 $13,615 $14,613 7.33% $998 $19
15
Let’s krero Porirua! Porirua is our place, and we want to plan it
with you – every step of the way. This Consultation Document
provides a summary of our LTP 2021–51. Our formal consultation runs
from 26 March to 27 April and the Mayor, councillors and staff will
be available to talk with you online and at locations throughout
the city about Porirua’s future.
Go online Make an online submission: poriruacity.govt.nz/
ltpsubmissions
Write to us Make a hard copy submission – fill in the feedback form
that accompanies this document (or download a copy from
poriruacity.govt.nz/ltpsubmissions) and Freepost, email or drop it
into us.
Email your scanned feedback form to
[email protected]
Postal address Freepost, Long-term Plan, Porirua City Council, PO
Box 50218, Porirua 5240.
Physical address Ground Floor, Administration Building, 16 Cobham
Court, Porirua 5022.
Engagement Online Q&A Sessions poriruacity.govt.nz/ltplive 31
March 7–8pm 6 April 12–1pm 14 April 7–8pm 20 April 12–1pm
7 April 7–8pm: Community workshop North – Mana Cruising Club
9 April 10am–12pm: Maata Waka, Maraeroa Marae, 216 Warspite Ave,
Waitangirua
10 & 11 April 12–2pm: Community drop-in – The Spine,
Ptaka
13 April 7–8pm: Community workshop East – Nuanua Kindergarten, 5A
Warspite Avenue, Cannons Creek
16 & 17 April 10am–1pm: Community drop-in – North City Mall
(Lower Level opposite Mirrou)
18 April 10am–12pm: Community drop-in – North City Mall (Lower
Level opposite Mirrou)
21 April 7–8pm: Community workshop North – Puatahanui Lighthouse
Cinema, 3 Paekakariki Hill Rd, Puatahanui
22 April 7–8pm: Community workshop West – Porirua Club, 1 Lodge Pl,
Porirua City Centre
Have your say by 27 April Making a submission is easier than you
think and you can do this in many different ways. Submitting
doesn’t take long!
8 April Iwi Consultation
30 March Youth Forum
31 March 10–11.30am: Refugee & Migrant Community – Porirua
Gospel Chapel, 88 Hereford St, Cannons Creek.
For more information on where you can krero with the Mayor and
councillors – go to our website poriruacity.govt.nz
Consultation Document for the proposed LTP 2021-5116
Your views The LTP will shape the future of our city and we want to
hear what you think about our plans.
"In addition to wanting to consult on these issues, we are using
this process to capture your feedback on our 3 waters
infrastructure plans to ensure ongoing delivery of services in
light of our ageing pipe network.
We specifically want to know your opinion on proposals to address
the challenges we are facing. Some issues ask you to think about
the big picture – for example ways to protect our environment as we
grow or the provision of new facilities in future growth. Others
suggest small changes and have more modest implications.
We have placed each issue under the corresponding focus area and
briefly explained what we are proposing, why we are proposing it,
and whether it will have an additional rate impact. We welcome your
views and suggestions on our overall focus for this LTP and our
more specific projects identified below.
The purpose of this Consultation Document is to seek your feedback
on the following proposals. For each of the proposals we have
indicated what the impact on rates will be. To make an online
submission go to poriruacity.govt.nz/ ltpsubmissions or fill out
the feedback form provided with this document.
The table below shows the impact on rates of each of the
consultation items for the first three years of the LTP.
Average rates increase to existing ratepayers in first three years
(smoothed) % 8.05
Consultation item – smoothed impact on first three years Impact
%
Harbour catchment restoration +0.5
Living wage to contractors +0.39
Average rates impact of consultation items if they all are adopted
-0.24
Average rates increase to existing ratepayers if all consultation
items adopted % 7.81
Investment in the 3 waters – drinking water, wastewater &
stormwater 1. Investing in infrastructure Background In this LTP we
are committing to investing more in our core infrastructure and
water networks. Our focus is on renewing and improving the
condition and performance of our infrastructure to ensure it meets
future needs of Porirua’s people and environment. The Council
considers it is essential work to do for environmental, public
safety, quality of life and growth reasons and we don’t believe
there are options not to invest. It means things like reducing
contaminants from stormwater, increasing the capacity of pipes,
upgrading pipes, fixing leaks to conserve water, monitoring water
use more closely and reduced over flows from the treatment
plant.
The vast majority of expenditure in this LTP is in our
infrastructure. As a consequence, it’s important we check that
you’re comfortable with our decision to focus on providing and
improving our water-based infrastructure significantly.
Wellington Water manages our 3 waters networks along with
other cities in the region. We have agreed to regionally consistent
investment priorities which are tailored to each city’s
needs.
This investment will bring improvements across the network across
the 30-year timeframe. Continuing improvements to the city’s
3 waters network remains a key priority because of the
multiple benefits to the community. We plan to invest $800 million
on 3 waters assets over the 30-year timeframe.
An important part of this investment strategy focuses on looking
after our existing infrastructure. We need to carry out renewals at
a pace that replaces network assets before they deteriorate to the
point of failure. Around 50 percent of Porirua’s three waters pipes
need to be replaced in the next 30 years.
We have used the age of our assets to develop our forecast for our
3 waters assets. Age as a proxy for asset condition increases the
degree of uncertainty on the level of spending necessary, and on
which assets. Wellington Water will work on developing its
understanding of asset condition which will improve the reliability
of future investment needs.
We are planning to spend $351 million on replacing our city’s aging
3 waters infrastructure in this LTP over the 30-year timeframe.
This represents 50 percent of the renewal’s investment recommended
by Wellington Water. We are spending $750,000 on condition
assessment studies over the next 2 years improving our detailed
understanding of the condition of our water assets. This work will
involve CCTV inspection of pipes, inspections of plant and
machinery and ongoing leak detection. This process will provide
more accurate knowledge and understanding of our assets condition
and performance.
The proposed $351 million investment will see us replace our assets
at a slower pace than what is recommended by Wellington Water,
which could lead to an increased likelihood of failures. We are
taking steps to minimise such risks through better monitoring of
the network and once the outcomes of the studies are known this may
require us to reprioritise the proposed replacement
programme.
We would like to address our renewal backlog in full in this LTP,
however because of our debt funding limits, provision for
unexpected events and the affordability of rates we must balance
our approach to investment.
The following graph breaks down the 10 and 30 year spend of each of
our water infrastructure groups into growth, level of service and
renewals.
Consultation Document for the proposed LTP 2021-5118
3 Waters Capital Expenditure – 10 and 30 years
When we allocate projects into categories we must consider the
primary purpose of the infrastructure. Renewals relate to the
replacement of existing infrastructure at the end of its useful
life or function. Levels of Service relates to addressing existing
shortfalls in current infrastructure or changes to acceptable level
of service. Growth projects relate to infrastructure used to
support growth in the city. Growth expenditure may seem smaller
than what you might think because a lot of the projects relating to
growth are primarily related to levels of service
improvements.
We plan to invest $308 million on 3 waters over the next 10
years which is $205 million more than we planned in the previous
LTP. This increase will have an average rate impact of 4.1% a year
over the first 10 years of the LTP.
Your view » Do you support this focus and agree it is a high
priority for the city?
» If so, do you think this level of expenditure is about
right?
Capital cost: $308 million
Year/s: Capital spend across the first 10 years of the LTP
Rate Impact: The additional $205 million spend, compared to the LTP
2018, results in an average rate impact of 4.1% per year across the
first 10 years of the LTP. This means an increase of $163.24 per
year for the average ratepayer.
Debt Impact: As with our other LTP investments, the capital costs
are fully loan funded with the cost of interest and principal
repayments over a 40-year period. The relating depreciation and
operating costs have been included in the base 8.05% rate
increase.
Stormwater Drinking Water Wastewater
10 Years 30 Years 10 Years 30 Years 10 Years 30 Years
$000 $000 $000 $000 $000 $000
Growth - - 46,801 46,801 324 44,096
Levels of Service 20,687 20,687 22,407 26,727 132,405 310,903
Renewals 1,620 26,069 18,275 74,581 65,526 250,374
Totals 22,307 46,756 87,483 148,109 198,254 605,374
0
100
200
300
400
500
600
700
$ millions
19
Protecting our harbour Improving our 3 waters network isn’t
the only thing we are doing to restore the health of our harbour.
Our harbour and catchment restoration programme is another way we
are aiming to do our bit to clean up the harbour and protect it
from future damage.
2. Harbour and catchment restoration Background Our harbour and its
catchments are in poor health.
In recent years we’ve improved our monitoring of the health of our
harbour and it has become clear that sediment is entering it at a
faster rate, wastewater spills have become more regular, and beach
closures more frequent.
Harbour water quality can be restored but it will take time. We
have identified three ‘must do’s’ to fix water quality in the
harbour:
• Improve our 3 waters infrastructure network
• Improve policy, regulation, and enforcement
• Undertake riparian (streamside) planting along all of the streams
in Porirua
Streamside restoration (riparian planting) is a very effective way
of reducing the effects of sedimentation and pollutants entering
streams and our harbour. You can think of our streams as stormwater
pipes which are doing a very poor job of filtering the water and
run-off they collect before depositing it in the harbour. Riparian
planting is like a giant natural filter, ensuring what is deposited
in the harbour is filtered water.
Streamside planting has the added benefits of restoring the
ecological health of our city and capturing carbon dioxide.
Our riparian planting programme is too slow. At the current rate it
would take 43 years to complete planting along all streams. We want
to plant all the Porirua catchments within 20 years as this will
make a tremendous difference to water quality in the harbour. We
estimate this will cost approximately $1.4 million a year. We want
as much of this funding as possible from external sources, so we
are applying for $600,000 funding each year, primarily from central
government.
What we are proposing If Council is unsuccessful in obtaining the
external funding, we propose fully funding the riparian planting
programme ourselves to achieve our 20-year goal. Our current
application to central government is for five years of funding from
2022/23. There will be other funding opportunities in the future,
but we want to commit to fully funding the riparian planting
programme, whether central government contributes or not.
Your view » Do you support the Council fully funding the riparian
planting programme for
five years if central government declines our application for
funding?
Fully fund riparian planting programme for five years if funding
bid unsuccessful
Capital cost: –
Year/s: 2022/23 to 2026/27
Rate Impact: This proposal would result in a 0.7% or $27.81
increase per year for the average ratepayer from 2022/23 (Year 2)
to 2026/27 (Year 6).
Debt Impact: This proposal has no impact on debt.
Consultation Document for the proposed LTP 2021-5120
Preparing for growth Meeting the needs of a growing city requires
careful planning. Adequately investing in the 3 waters and
transport networks is vital, but we also need to ensure our
services and facilities meet the wellbeing and social needs of the
public.
We would like your feedback on the proposals below.
3. Multi-use community facilities Background Modern multi-use
community facilities provide spaces that bring people together,
with a focus on building social connections. They are versatile
facilities with features designed to meet the needs of individuals
and groups, such as library services and flexible meeting
places.
Building community facilities are a large expense for the Council
and take several years to complete. Plans to build new facilities
must be forecasted accurately in the LTP to ensure funding is
available when required. Where there are new developments around
the city we will look to developers to help fund facilities.
Funding of $8 million has already been allocated to build a library
and multi-use community space in the East. This is planned for
delivery between 2024-28 in partnership with Kinga Ora.
The Council recently undertook a piece of research to understand
what community facilities might be needed in the future to
accommodate population growth in the city. The research looked at
what facilities we currently have at the neighbourhood,
city-centre, and city-wide level. To read the full report visit
poriruacity.govt.nz/ltp/#documents
The research found that Porirua would require new facilities in the
north and west at different stages over the next 30 years.
• Significant population growth is projected in northern Porirua
that will create the need for a multi-use community facility,
ideally located within the new proposed development area
(Plimmerton Farm).
• Titahi Bay residents rely heavily on facilities located in the
city centre. A plan is needed to ensure the neighbourhood community
spaces in Titahi Bay meet the needs of the community in the
future.
• The Whitby area currently has adequate provision of community
facilities. However, as the area grows, particularly through the
proposed Judgeford Hills development, additional community space
located centrally in the Whitby area will be needed.
What we are proposing We are proposing the following:
1. Allocate $8 million ($11.335 million inflated) from 2031/34 for
a multi-use community facility in northern Porirua and $1.718
million a year from 2034/35 to run the facility.
2. Plan for a Titahi Bay multi-use community facility, allocating
$4 million ($5.989 million inflated) for construction in the
2038/39 year and $1.044 million a year from 2039/40 to run the
facility.
3. Allocate $4 million ($6.488 million inflated) in year 2035/36
for construction of a Whitby multi-use community facility and
$1.024 million a year from 2036/37 to run the facility.
21
Your view » Do you support the allocation of $8 million funding in
the Long-term Plan for multi-
use community facilities in northern Porirua?
» Do you support the allocation of $4 million funding in the
Long-term Plan for multi- use community facilities in Titahi
Bay?
» Do you support the allocation of $4 million funding in the
Long-term Plan for multi- use community facilities in Whitby?
Invest in a multi-use community facility in Northern Porirua
Capital Cost: $8 million ($11.335 million inflated)
Operational Cost: $1.718 million per year
Year: 2034/35
Rate Impact: 1.06% increase per year from 2034/35 (Year 14)
covering the ongoing operational and maintenance costs of the
facility. This project would mean an increase of $76.73 per year
for the average ratepayer from 2034/35 onwards.*
No future Investment: If the project does not proceed then the
rates from 2034/35 (Year 14) will be 1.06% lower and debt levels
would be lower as Council would not need to borrow the $8 million
budgeted cost for the project.
Invest in a multi-use community facility in Titahi Bay
Capital Cost: $4 million ($5.989 million inflated)
Operational Cost: $1.044 million per year
Year: 2038/39
Rate Impact: 0.54% increase per year from 2039/40 (Year 19)
covering the ongoing operational and maintenance costs of the
facility. This project would mean an increase of $44.42 per year
for the average ratepayer from 2039/40 onwards.*
No future Investment: If the project does not proceed then the
rates from 2039/40 (Year 19) will be 0.54% lower and debt levels
would be lower as Council would not need to borrow the $4 million
budgeted cost for the project.
Invest in a multi-use community facility in Whitby
Capital Cost: $4 million ($6.488 million inflated)
Operational Cost: $1.024 million per year
Year: 2035/36
Rate Impact: 0.59% increase per year from 2036/37 (Year 16)
covering the ongoing operational and maintenance costs of the
facility. This project would mean an increase of $44.87 per year
for the average ratepayer from 2036/37 onwards.*
No future Investment: If the project does not proceed then the
rates from 2036/37 (Year 16) will be 0.59% lower and debt levels
would be lower as Council would not need to borrow the $4 million
budgeted cost for the project.
*As with our other LTP investments, this is fully loan funded with
the cost of interest and principal repayments over a 40-year period
as well as depreciation and operating costs included in the rates
impact. These numbers have been included in the LTP.
Consultation Document for the proposed LTP 2021-5122
4. Cultural Arts Centre Background Porirua is a culturally diverse
city and over the years we have often considered whether we have
the appropriate facilities to celebrate our diversity. Ptaka is a
world-leading contemporary art gallery and museum dedicated to
Mori, Pacific and Aotearoa New Zealand culture. While Ptaka is
often used as a performance space, it is not equipped for large
performances.
A number of feasibility studies and partnerships have investigated
whether Porirua needs a dedicated Cultural Arts Centre, where it
would be built, and how it would be funded. For a variety of
reasons the timing has never been quite right and these proposals
did not eventuate. However, the need for space where our culture
can be expressed and celebrated, remains strong.
What we are proposing In the LTP we are proposing to
allocate:
• $250,000 in the 2021/22 year to fund a feasibility study for the
Centre. $100,000 of this will be sought from external
funding.
• We have not allocated capital or operational costs for the
proposed Cultural Arts Centre in the LTP. Our current analysis is
that a suitable facility would cost $30 million to construct and
could be included as early as 2023/24. In any such plan we will
seek $6 million of external contributions to help pay for
construction. We estimate that it would cost around $1.1 million
per year to run the facility from 2024/25, assuming construction
took place in 2023/24.
These cost estimates to build and run the Cultural Arts Centre are
provisional. A more detailed costing will be produced from the
feasibility study.
Your view » Do you support the proposal to build a Cultural Arts
Centre in the city centre?
Proposal to build a Cultural Arts Centre in the city centre
Capital Cost: $30 million ($24 million debt funded)
Operational Costs: $150,000 feasibility study ($100,000 external
funding, for the $250,000 feasibility study) and ongoing
operational costs of $1.1million per year
Year: 2023/24
Rate Impact: We have not allocated capital or operational costs of
the Cultural Arts Centre in the LTP. Successful adoption of this
proposal would result in a 2.10% increase per year from 2024/25
(Year 4) on top of the 4.87% increase. This project would mean an
increase of $101.54 per year for the average ratepayer in 2024/25
onwards.
Debt Impact: If the project was to proceed the $24 million being
the net costs would be debt funded. We have assumed a 20% third
party funding would be received for this project. As with our other
LTP investments, this is fully loan funded with the cost of
interest and principal repayments over a 40-year period as well as
depreciation and operating costs included in the rates impact.
These costs would need to be incorporated into the LTP.
23
Consultation Document for the proposed LTP 2021-5124
5. City centre parking Background The way we get to and move around
our city is affected by our roading network, public transport, and
urban form. As Porirua grows demand for parking in the city centre
is growing and will continue to grow.
Our public parking should provide reasonable and equitable access
to the city centre (CBD part of the city) and support our wider
transport, social, and environmental outcomes. Managing parking as
part of the wider transport system helps to keep cities moving,
promotes the ongoing development and use of public and active
transport, reduces our greenhouse gas emissions, and makes safer
pedestrian spaces.
We need more tools to manage parking demand in the city centre. As
Porirua does not currently have on-street paid parking, we can’t
influence parking behaviour the way other cities can. Currently
there are only two small areas of paid parking in Porirua and
on-street parking is free. The limited long-term parking available
in the city centre also puts pressure
on the short-term options, with workers moving their cars several
times a day around short-term parking spaces.
The cost of providing parking is currently 50% funded from
ratepayers with the other 50% coming from enforcement and the small
amount of paid parking. Expanding paid parking would allow more of
the cost to be paid by users as opposed to ratepayers
generally.
What we are proposing We propose developing a specific city centre
parking management plan. The key features of this would be:
• Free short-term parking options for quick trips into the city
centre.
• An increase in long-term paid parking spaces.
• Relatively low-cost parking – we anticipate charges of $1-$2 per
hour.
• Simple and flexible payment methods.
If Council decides to develop a city centre parking plan, we will
need to update our Traffic Bylaw.
Your view » Do you think the Council should expand paid parking to
include on-street parking
in the city centre?
Expansion of paid parking
Year: 2021/22
Rate Impact: There is a phased approach to the implementation of
paid parking. The additional revenue is not included in the LTP and
would decrease the estimated rate increase of 8.05%. This project
is estimated to result in additional revenue of:
• $258,000 in 2021/22 – 0.33% ($13.04) decrease to rates
• $683,000 in 2022/23 – 0.80% ($34.22) decrease to rates
• $918,000 in 2023/24 – 0.99% ($45.54) decrease to rates
Debt Impact: The capital costs for the project will be covered by
the additional revenue received. There is no impact on debt from
this proposal.
25
Affordability To offset the increased spending on infrastructure we
have identified a number of savings we could make. These proposals
will have an impact on the community through the services we
provide and the rates you pay. We want to hear your feedback on
each of them.
6. Moana Court housing Background Unlike some other councils,
Porirua City Council has a very small social housing portfolio. We
own 26 social housing units in the Moana Court complex in Te Pene
Avenue, Titahi Bay. These units provide people aged 65 or older
with secure, low-cost accommodation that is close to shops and
public transport.
The units are managed by Wellington City Council’s City Housing
Unit because we are unable to provide the range of support that the
tenants need. While the units are compliant with Healthy Homes
requirements, they require significant investment to bring them up
to an acceptable standard for elderly tenants. Even with an
upgrade, the quality of housing is low by today’s standards.
The current capital value of Moana Court is over $3 million. The
cost of running Moana Court is around $80,000 more than we receive
in rent each year. It is estimated that more than $160,000 will be
required in the next two years for major repairs and
improvements.
In 2014 the Government changed the legislation underpinning social
housing, allowing registered Community Housing Providers to receive
the Income-Related Rent Subsidy, which ensures that social housing
tenants only pay 25% of their income in rent. This was previously
only available to Kinga Ora (Housing New Zealand)
tenants.
Because councils are excluded from receiving the subsidy,
ratepayers incur a higher cost to provide social housing than Kinga
Ora or Community Housing Providers. Several other councils have
chosen to sell their social housing assets to Kinga Ora or
Community Housing Providers because it makes economic sense to do
so and doesn’t affect the quantum of social housing
available.
The Council is a very minor provider of social housing in the city.
Government plays a major role with over 2,000 social housing places
through Kinga Ora, with Ngti Toa Rangatira managing around 900
of these.
What we are proposing The Council has two broad options available
to it. We either continue to own Moana Court and investigate how to
improve the facility, or we stop owning social housing altogether.
The Local Government Act deems social housing to be a strategic
asset. This means that if the Council wants to reconsider its
ownership, we must consult through the Long-term Plan
process.
The wellbeing of the existing tenants remains paramount, regardless
of which option is chosen. If there is any change in ownership or
management of the units it must be to a registered Community
Housing Provider or the Crown, and the existing tenants continue to
have access to social housing at current or better tenancy
terms.
Consultation Document for the proposed LTP 2021-5126
OPTION A: CONTINUE WITH THE STATUS QUO
This option means Council makes no changes to social housing for
the near future. Council will continue to own the Moana Court
complex and pay Wellington City Council, or another provider, to
manage the tenancies.
The consequence of this option for the Council is that there would
continue to be an operating cost to ratepayers in excess of $80,000
per annum or up to $200,000 to $300,000 if the rental subsidy and
the cost of capital are taken into account.
OPTION B: DIVEST THE SOCIAL HOUSING UNITS AND FOCUS ON SUPPORTING
SOCIAL HOUSING IN OTHER WAYS
Under this option, the Council would divest (sell) its social
housing but continue to support social housing through regulation,
policy, advocacy and facilitation.
This option would require Council to sell the Moana Court complex
to another provider on the condition that:
• the complex is sold to a registered Community Housing Provider or
the Crown, and;
• the existing tenants continue to have access to social housing at
current or better tenancy terms.
One of the major benefits to the tenants of this option is that
community housing providers offer full wrap-around services to
tenants focused on wellbeing, and access to the government rental
subsidy.
For Council the benefit of this option is that there would be a
reduction in costs, enabling Council to redirect ratepayer funds
elsewhere, and an improvement in Council’s level of debt.
OTHER OPTIONS CONSIDERED
We could choose to increase our focus on social housing provision.
However, that would mean significant investment both in Moana
Court, obtaining and developing more housing, and investment of
staff time in managing a social housing portfolio. These would come
at a cost to other Council priorities. Other parties can access
government subsidies to deliver the same housing and services at a
lesser cost than Council. We think there are better ways to support
social housing.
Other options that have been considered, but deemed not feasible
were:
• Selling the units on the open market with no restrictions on use.
This option was not preferred as it provides no certainty that
tenants will continue to be supported.
• Retain ownership of the land and sell the units to a Community
Housing Provider or Kinga Ora, with a long-term lease for the land.
This option was discarded as it does not enable the Council to
release the value of the land.
Council’s preference is to sell Moana Court to another Community
Housing Provider or the Crown.
This does not mean the Council would have no role at all in
housing. We have an important role in the broader affordable
housing issue, ensuring that there is sufficient land for
development and redevelopment of housing, investing in the critical
infrastructure that supports housing, and advocating for and
supporting community housing providers in the city.
27
Your view » Do you think that the Council should sell Moana Court
(to a Community Housing
Provider or the Crown) or retain ownership?
Divest Moana Court ownership and sell to a Community Housing
Provider or the Crown
Capital cost: $3.3 million current capital value
Operational cost: $80,000 saving
Year: 2022/23
Rate Impact: The sale of Moana Court is estimated to result in a
cost saving of $80,000 per year from 2022/23 (Year 2) of the LTP.
This initiative would result in a 0.09% or $4.01 per year decrease
for the average ratepayer.
Debt Impact: This proposal has no impact on debt.
If we chose not to go ahead with the sale of Moana Court, we would
likely incur ongoing yearly maintenance costs of 0.09% or $4.01
decrease for the average ratepayer. The current capital value for
Moana Court is $3.3 million.
Consultation Document for the proposed LTP 2021-5128
7. Village Planning Programme Background The Village Planning
Programme started in 2003 in one village (Plimmerton) and over the
years has expanded to 14 villages. Each village plan has been
developed by our communities to guide the future development of
their villages and reflect their aspirations. Projects have ranged
from a new waka ramp and dog park, to playgrounds and community
events like the Titahi Bay Beach Festival.
Targeted funding has been used to fund the villages programme and
included capital funding, operational funding and funding for
staff.
In May 2020 Council agreed to pause requests for funding new
projects for two years to allow completion of backlogged projects
(post pandemic).
The number and complexity of projects managed by the Village
Planning Programme has increased over time, along with costs and
regulatory requirements. Village Planning have increasingly been
delivering projects that overlap with the work done by other teams
in Council.
What we are proposing We are proposing a new way for residents to
access funding for community projects. Village planning groups,
Residents’ Associations and any other members of the community
could submit a project to the Annual Plan and/or Long-term Plan.
Councillors would decide which projects to fund, and if approved,
the relevant team from the Council would undertake the design,
consenting and construction of the project in collaboration with
the community.
This proposal is an alternative to the existing Village Planning
model and is the current process used for other new projects from
the community. Residents work directly with the team at Council
that would deliver their project.
It is proposed that existing Village Planning projects will be
completed, but any new projects would be managed under the new
funding model. The new funding model removes the targeted funding
allocated to the Village Planning Programme.
29
Your view Which of the options for Village Planning do you
prefer?
1. Keep the status quo and have residents and groups submit
projects for funding from a dedicated Village Planning
budget.
2. Adopt a new model where residents and groups submit projects for
the Annual Plan or Long-term Plan. The appropriate team at Council
will manage the project and councillors will have final approval of
projects. The current funding allocated to the Village Planning
Programme will be removed.
Rate impact Moving from the Village Planning Programme to the
proposed model would remove the funding currently allocated to
Village Planning in the LTP. $600,000 in capital costs would be
removed from the budget and $275,000 of ongoing operating and staff
costs would be saved, resulting in a reduction in rates as
indicated below.
The actual impact on rates will depend on what projects get adopted
under the proposed model and these would be assessed by councillors
alongside all other projects. The reduction in rates below only
reflects the money saved from ending the Village Planning
programme.
Adoption of a new model for Village Planning
Capital Cost: $600,000 saving
Year/s: 2021/22
Rate Impact: Adoption of this model would result in average yearly
cost savings of $215,000 across the first three years of the LTP.
This is a 0.24% or $9.53 per year decrease for the average
ratepayer from 2021/22 (Year 1). We have not factored this cost
saving into the LTP, it is assumed the average rate increase of
8.05% would go down by 0.24%.
Debt Impact: The $600,000 capital expenditure relating to Village
Planning is already incorporated into the LTP. If the proposal is
adopted, then Council would not be required to borrow this
amount.
Consultation Document for the proposed LTP 2021-5130
8. Te Rauparaha Arena hours Background The Council has explored a
number of cost saving opportunities. One option we have identified
is to reduce the opening hours of Te Rauparaha Arena.
Reducing the opening hours has an impact on the level of service
provided to the community, and in accordance with our Significance
and Engagement Policy we need to consult with the public on
this.
What we are proposing We are proposing to open Te Rauparaha Arena
at 6am each weekday, half an hour later then we currently do. This
would mean no entry to pool, gym or stadiam until 6am. This is a
reduction of 2.5 hours a week. We believe this will save at least
$20,000 a year in operational costs from reduced salaries and
wages.
This will impact current users including pool users and fitness
members. It is not proposed to reduce admission fees or membership
fee in conjunction with the reduced hours as this will not result
in any cost savings. As this is a reduction in the level of service
we provide to the public, we want to hear your feedback.
Your view » Do you support the proposed reduction in opening hours
at Te Rauparaha Arena?
Reducing operational hours of Te Rauparaha Arena
Capital cost: -
Year/s: 2021/22
Rate Impact: This initiative would result in yearly average cost
savings of $42,000 from 2021/22 (Year 1) of the LTP. This is a
0.05% or $1.90 per year for the average ratepayer from 2021/22
(Year 1). We have not factored the reduced hours into the LTP, it
is assumed the average rate increase of 8.05% would go down by
0.05%.
Debt Impact: This proposal has no impact on debt.
31
Consultation Document for the proposed LTP 2021-5132
9. Living wage to contractors Background Living Wage Movement
Aotearoa NZ advocates for a living wage that provides workers and
their families with the basic necessities of life, to live with
dignity and to participate as active citizens in society. From 1
April the minimum wage will be $20 an hour and the living wage is
$22.10 an hour, a difference of more than $4,000 per year for a
full-time worker.
Since 2016/17 Council has increased the minimum hourly wage for
Council employees to bring them up to the living wage. Council’s
lowest paid staff are now earning the living wage, which is updated
on 1 July each year to match the living wage as part of its annual
salary review process.
The Living Wage Movement Aotearoa NZ has continued to lobby for
living wage to be extended to staff employed by contractors of the
Council. If Council requires our contractors to pay the
living
wage to their staff working for Council on a regular and ongoing
basis (such as cleaners and security), there will be an increased
cost to the Council estimated to be between $200,000 and $400,000
per year.
What we are proposing In the LTP we have not allocated the
additional funding needed to extend the living wage to contractors.
We have two options:
1. Maintain the status quo and only Council staff are paid the
living wage. This will have no additional cost but will mean
contractors may receive less than the living wage.
2. Commit to paying the living wage to new contractors and to
existing contractors as contracts come up for renewal. This will
have an increased cost to the Council.
Your view » Do you support the Council extending the living wage to
contractors?
Payment of living wage to contractors
Capital cost: -
Year/s: 2021/22 to 2023/24
Rate Impact: This initiative would result in an average of $300,000
per year increase across the first three years of the LTP. This is
a 0.34% or $13.60 per year for the average ratepayer from 2021/22
(Year 1).
Debt Impact: This proposal has no impact on debt.
33
10. How to go about balancing the budget Background We need to
adequately fund our services and invest in our infrastructure, but
we also need to manage our debt and keep rates at an affordable
level. The Local Government Act 2002 requires that we balance our
books. This means we need to keep our rates at a level that ensures
we aren’t borrowing to pay for our day-to-day expenses.
The Act does allow for Council to not achieve a balanced budget if
it resolves that it is financially prudent to do so. In the 2018
LTP we planned to balance our budget in 2022/23.
What we are proposing We are proposing a further one-year extension
of the balanced budget, meaning we won’t balance the budget until
2023/24. Achieving the balanced budget in 2022/23 as planned would
require double-digit rate increases. To provide more consistent
rate increases we are also proposing to smooth rates across the
first three years of the LTP. This means we will avoid a large rate
increases in the next two years, but higher rates in 2023/24.
The impact on rates of extending the balance budget and smoothing
is illustrated in the graph below.
Rate Increase to existing ratepayers
0
2
4
6
8
10
12
2021/22 2022/23 2023/24
%
Your view » Do you support extending the balanced budget by one
year out to 2023/24 and
smoothing the rate increase across the first three years of the
LTP?
Rate Impact: Our projected average rate increase of 8.05% has
already factored in extending the balanced budget by one year and
smoothing the rate increases across the first three years of the
LTP.
Consultation Document for the proposed LTP 2021-5134
Our climate change response Over the next few years we will be
taking action to help mitigate the effects of climate change and to
prepare the city for the future impacts based on our recently
adopted Climate Change Strategy. To action that strategy we have
allocated $300k to undertake the analysis needed and get some key
information about our greenhouse gas emissions. As we are still in
the early stages of our response work we do not have any
significant capital proposals in this LTP that we are consulting
on. However, climate change is a long-term issue for all of us, so
we will be sure to consult with you as our plans for response
develop.
Responding to Covid-19 When we developed our Recovery Plan we
consulted with the community to understand how we can help people
get through the Covid-19 pandemic. While we are not making any
proposals in this LTP, we remain committed to supporting the
community and maintaining our services.
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1
wrgf.co.nz/wp-content/uploads/2020/10/1246-GWRC-Draft-Framework-Report-SEPT-2020-14.pdf
2 ‘greenfield’ land is undeveloped land in a city or rural area
either used for agriculture or landscape design or left to
evolve naturally. Rather than building upon greenfield land, a
developer may choose to redevelop brownfield, which have been
developed but left abandoned or underused. Source Wikipedia.
The Wellington Regional Growth Framework is a long-term vision for
the region that identifies how the region will respond to growth at
a spatial level. The Framework is a collaboration between local
governments, central government, and mna whenua. Porirua City has
worked collaboratively on the Framework and in so doing, has
incorporated work we have already developed in our Growth Strategy
and Proposed District Plan.
Consultation on the Framework is being run by the Wellington
Regional Growth Framework team, not Porirua City. If you have any
feedback on the framework you can provide it to Wellington Regional
Growth Framework team through their website wrgf.co.nz
The Draft Wellington Regional Growth Framework1 is a 30-year
spatial plan for the Wellington-Wairarapa-Horowhenua region
developed by local government, central government and iwi partners
to provide regional direction for growth and investment.
The region is facing a number of challenges with housing and urban
development, transport and resilience for the future. These
challenges are regional issues that are best dealt with in
integrated ways
The draft Framework delivers on the Urban Growth Agenda objectives
of the Government, which includes improving environmental,
employment, transport, and housing outcomes for communities. The
draft Framework takes the National Policy Statement on Urban
Development 2020 into account and provides a scenario for
accommodating an additional 200,000 people and 100,000 jobs in the
region over the next 30 years.
The draft Framework’s objectives include:
• enabling more housing development around transport nodes and at a
higher density
• developing more greenfield2 housing development that is higher
density and connected to public transport
• increasing housing capacity in major centres
• investigating improved multi-modal west-east connections across
the region.
Work already underway by councils in the region including Porirua
City Council’s Growth Strategy and Proposed District Planning have
been taken into account. The draft Framework is consistent with
Porirua City enabling more intensive residential growth throughout
its existing urban footprint, especially within medium density
residential areas in the Proposed District Plan.
Porirua City Council has been working with other councils, central
government and iwi on the Framework and we are working on a joined
governance for implementation of the Framework, once finalised.
Consultation on the Wellington Regional Growth Framework is being
undertaken at the same time as the LTP, but not as part of our
Council consultation. To participate in the consultation on the
Framework, or for more information, please go to
wrgf.co.nz/have-your-say
Consultation Document for the proposed LTP 2021-5136
Policies and strategies Every three years we review a number of our
major policies and strategies alongside the LTP.
Development Contributions Policy As the city grows we need to
invest in infrastructure to meet the needs of residents. This
includes the 3 waters, roading, public facilities, and parks.
The Development Contributions (DC) Policy allows us to collect
funding from developments to help cover the cost of this
infrastructure. This ensures the cost of providing infrastructure
to support new developments doesn’t entirely fall on current
ratepayers.
We review the DC Policy every three years. We are reviewing the DC
at the moment and will be consulting with the public later this
year. You can find the current policy here:
poriruacity.govt.nz/ltp/#documents
Fees and charges We have been working hard to be more customer-
focused and in some areas this has added costs to provide a better
service for our customers. We think that it’s fairer if customers,
who benefit directly from particular services, pay more so that
these costs are not passed onto all ratepayers.
We’re proposing to increase some fees and charges over the next
three years – this will also help us to keep rate increases down.
We are looking to increase most of our regulatory fees by 3 per
cent and most other fees by 1.5 per cent each year for the next
three years. Here are some of fees and charges we are proposing to
change:
• Aquatics centre charges for children relating to supervision
system costs for health and safety;
• Alignment of water connection fees to recover actual costs of
services.
We are looking to increase most of our regulatory fees by 3 per
cent and most other fees by 1.5 per cent each year for the next
three years. To take a look at these proposed changes go to our
website poriruacity.govt.nz/ltp
Financial Strategy Background and key areas of focus Our 2021
Financial Strategy continues to support the principles we agreed
with you in both 2018 and 2015. We said we would:
• have a prudent budget keeping debt levels manageable
• prioritise infrastructure investment
• ensure large costs are spread over generations, so everyone who
benefits, helps pay.
We remain committed to these principles to provide the foundation
for achieving a balanced budget and moving to a more sustainable
financial base.
The Financial Strategy covers the next 30 years to 2051. By doing
this we are promoting transparency and clarity with what we need
from our assets in the long-term. Another advantage is that we can
more effectively align with our 30-year Infrastructure Strategy and
asset management plans. To view the full Finance Strategy visit
poriruacity.govt.nz/ ltp/#documents
The LTP enables Council another opportunity to review and
reprioritise our approach to core infrastructure investment and
ensure our communities are best placed for the future –
particularly in regards to our water infrastructure. The focus has
been on understanding the condition and performance of our assets,
planning for the growth in our City and ensuring we achieve the
environmental outcomes our community wants. We have reprioritised
our planned spending and are proposing to invest $800 million on
the 3 waters core infrastructure and $323 million on Transport
in the LTP.
We are pleased with where we are at on our journey to balance the
budget, with a financial position that is basically sound and a
strong balance sheet that is supported by our Standard & Poor’s
A+ credit rating.
Covid-19 and how everything changed We have reviewed our financial
approach to the LTP given the ongoing impacts of Covid-19. We have
been mindful of ensuring that the cost of services balances Council
debt and the impact on ratepayers and the community.
Our Annual Plan 2020/21 was reviewed in light of the pressures we
were facing, and the decision was made to keep to the rate increase
at 4.98% as outlined in year 3 of the 2018 LTP. This required
Council to take on more debt to fund the increase in core
infrastructure cost due to the uncertainty that came from the
nationwide lockdown.
We saw a drop in revenue of $1.4 million and had to revise our
budgets to account for decrease in our estimated income. This
ultimately resulted in a decrease in revenue of $1.9 million, or a
2.8% equivalent average rate increase. We have also worked on
identifying further savings opportunities and efficiencies within
our business model.
Hard decisions were made around our capital programme and what
projects we could invest in. We have seen a significant increase in
our spending in core infrastructure to support the future of our
city and had to balance this approach without putting undue
pressure on ratepayers. We must not only consider the financial
constraints on our infrastructure but the ability to deliver the
capital program.
Consultation Document for the proposed LTP 2021-5138
Balancing the budget We need to adequately fund our services and
invest in our infrastructure, but we also need to manage our debt
and keep rates at an affordable level. The Local Government Act
2002 requires that we balance our books. This means we need to keep
our rates at a level that ensures we aren’t borrowing to pay for
our day-to-day expenses.
In 2018 we talked with the community about how we could get the
right mix between affordable rating levels, debt management, and
balancing our books
as required by the Local Government Act 2002. We agreed together to
plan to balance our books by 2021/22.
As part of the 2020/21 Annual Plan we extended the balanced budget
again to 2022/23, in light of the impact of Covid-19. In order to
ensure we balance the need to adequately fund our services and the
affordability of rates we a proposing extending the balanced budget
one further year to 2023/24. See how we plan to do this
below.
Rate increases and a consistent approach We are committed to
balancing the budget and continuing to fund for depreciation and
that’s why rate increases for the next three years may be higher
than Council and residents would like. Rate increases between years
can be significant as the impacts of some assets and expenses vary.
To soften this, we have decided to provide consistent year-on-year
rate increases, rather than big highs and lows over the next three
years.
We are looking to have consistent annual average rate increases for
the first three years of 8.05 per cent through to the end of
2023/24, excluding any
impact from revaluations. This will give us time to implement a
number of efficiencies and revenue increases that will give us a
solid platform from 2025 onwards.
It is worth noting that the rate level of 8.05 per cent for years
1-3 of the LTP is driven by our continual investment in
infrastructure and the need to balance the budget by 2023/24. These
contribute to the 8.05 per cent as follows:
General increase 2.81 per cent
Infrastructure 2.57 per cent
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-12
-10
-8
-6
-4
-2
0
2
4
6
$ m
n
‘Porirua City balanced budget defined as Local Government
(Financial Reporting and Prudence) Regulations 2014 definition
modified to exclude costs and gains from asset sales and NZTA’s
capital subsidies from the calculation of revenue’.
Balanced budget achieved
Average Capital
Residential
Lower Quartile 427,000 2,744.36 2,940.54 7.15% 392.94 496.59 57.60
423.96 1,569.45 2,940.54
Median 644,000 3,459.29 3,737.40 8.04% 392.94 496.59 57.60 423.96
2,366.31 3,737.40
Upper Quartile 755,000 3,826.65 4,146.85 8.37% 392.94 496.59 57.60
423.96 2,775.76 4,146.85
Rural
Median 1,195,000 3,375.41 3,937.92 16.66% 423.96 3,513.96
3,937.92
Upper Quartile 1,555,000 4,265.29 4,995.88 17.13% 423.96 4,571.92
4,995.88
50 hectares & greater
Median 2,493,000 6,173.83 6,837.39 10.75% 423.96 6,413.43
6,837.39
Upper Quartile 6,998,000 16,574.22 18,429.57 11.19% 423.96
18,005.61 18,429.57
Hongoeka community
Median 544,000 1,675.94 1,824.08 8.84% 423.96 1,400.12
1,824.08
Upper Quartile 691,000 2,015.85 2,202.93 9.28% 423.96 1,778.97
2,202.93
Commercial
Lower Quartile 328,000 4,989.69 5,330.60 6.83% 392.94 496.59 423.96
282.33 3,734.78 5,330.60
Median 643,000 8,572.34 9,198.93 7.31% 392.94 496.59 423.96 554.21
7,331.23 9,198.93
Upper Quartile 1,384,000 16,977.77 18,274.61 7.64% 392.94 496.59
423.96 1,192.08 15,769.05 18,274.61
Industrial
Lower Quartile 372,000 5,495.87 5,877.13 6.94% 392.94 496.59 423.96
320.75 4,242.90 5,877.13
Median 675,000 8,933.50 9,588.90 7.34% 392.94 496.59 423.96 581.62
7,693.79 9,588.90
Upper Quartile 1,168,000 14,531.41 15,633.19 7.58% 392.94 496.59
423.96 1,006.43 13,313.27 15,633.19
Motels
Shopping plaza
Upper Quartile 82,607,000 894,490.32 1,072,834.87 19.94% 24,829.41
35,612.73 71,153.80 941,238.93 1,072,834.87
Consultation Document for the proposed LTP 2021-5140
Capital expenditure over the next 30 years (including inflation)
Over the first 10 years of the LTP we are proposing to spend $738
million on capital investment, 54 per cent of which will be in the
wastewater, stormwater and drinking water areas, and 17 per cent on
transport.
This significant capital investment will be funded by debt and from
rating for depreciation. A breakdown of our capital expenditure for
each 10-year period of the LTP is provided below.
Per cent
Capex $738
Stormwater 3 1 4
Transport 17 19 24
Property 6 2 3
CBD, Future Projects & Strategic Land Purchases 6 8 8
Others 5 7 7
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Debt and rating for depreciation We have seen a significant
increase in our capital projects from the last LTP. This has meant
we have increased our debt to pay for what we can’t cover with
depreciation and any capital subsidies received.
Depreciation is applied to recognise the use of the city’s assets
evenly over their economic life. Depreciation is charged to today’s
ratepayers and this pays for the renewal of these assets to make
sure that the cost is shared evenly and that future generations
aren’t unfairly burdened.
As shown in the following table, the city’s debt over the first ten
years goes from $131 million to a projected maximum of $372 million
in Year 9 (2029/30) and back to $371 million in Year 10
(2030/31).
The increase in the city’s debt is the result of our major
infrastructure renewals such as water supply, stormwater,
wastewater reticulation and roading.
We have carefully considered the timing of our capital programme
and the associated borrowing requirements to ensure that this best
meets the needs of current and future generations.
To read the full Financial Strategy go to
poriruacity.govt.nz/ltp/#documents
21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31
Year 1 2 3 4 5 6 7 8 9 10
Debt ($ million) 131.1 160.8 210.8 263.8 297.1 327.6 348.8 365.6
369.3 371.6 370.8
Ratio of debt to operating income
Limit 280%
137% 161% 183% 191% 211% 227% 229% 221% 213% 205%
External interest as a % of operating income
Limit 20%
5% 5% 6% 7% 8% 9% 10% 9% 9% 9%
Infrastructure Strategy The Infrastructure Strategy for Porirua
City poriruacity.govt.nz/ltp/#documents outlines the Council’s
infrastructure investments for the next 30 years, including how we
intend to:
• improve the condition and performance of assets
• prepare for residential growth
• improve environmental outcomes for water quality, waste
minimisation, carbon reduction and use of parks and reserves
• consider the impacts of climate change and opportunities to
improve resilience; and
• respond to increasing community expectations, and government
standards, around infrastructure.
Factors influencing infrastructure Central Government expectations
The Government is considering 3 water reform and regulatory changes
that will impact the way Councils deliver 3 waters services to
the community. In the meantime, while Government is working on its
proposals for change, Porirua City Council will continue to provide
drinking water, wastewater and stormwater services with our
delivery partner Wellington Water.
Improving the condition, performance and capacity of 3 waters
assets (especially wastewater) to meet and maintain acceptable
levels of service is one of the city’s biggest challenges. It is
also important to comply with the National Policy Statement for
Freshwater Management that requires water to be managed in an
integrated and sustainable way.
The Government has set a national target of 90% of specified rivers
and lakes to be safe for swimming and recreation by 2040 (and an
interim target of 80% by 2030). The health of our harbour and
surrounding catchments is a high priority for the Council and the
community. Leaking and overflowing pipes degrading the quality of
our water is not acceptable.
Population growth It is anticipated that Porirua City will need an
additional 10,035 new dwellings by 2051 to accommodate an
additional 28,635 residents.
Accommodating this growth needs to be managed in accordance with
the National Policy Statement for Urban Development 2020 that
supports increasing the supply of houses.
We have considered the impact of population and housing growth
(including housing intensification) on our infrastructure assets
and reflected this in our major infrastructure projects. For
example, new parks and reserves in areas of urban growth and
increasing capacity of water and transport networks to cope with
more people.
Climate change and natural hazard resilience Rising sea levels and
increased rainfall coupled with the effects of storm surge are
increasing the likelihood of flooding and erosion in Porirua. The
Council declared a Climate Change Emergency in June 2019 and
subsequently developed the Climate Change Strategy 2021-2024 to
adapt to and mitigate the challenges we are facing.
We are improving our understanding of the impacts of climate change
on the city’s infrastructure. A planned risk assessment of the
impacts of climate change on the city will inform future
infrastructure investment decisions.
The Council has identified the key natural hazards through our
Proposed District Plan. We need resilient infrastructure to
withstand the effects of natural hazards. We have factored in
opportunities to improve resilience within renewal programmes.
However, we are unable to address seismic strengthening of all
water reservoirs, reinforcing the importance of residents having
their own emergency water supply.
Capital programme delivery We are planning to significantly
increase our investment in 3 waters and transport infrastructure
over the next 30 years. Not doing so would increase the likelihood
of failures with our networks, decrease the current levels of
service, limit our ability to grow, and mean greater investment
would be required in the future. The Council will prioritise the
upgrading of critical infrastructure to maintain levels of service
and avoid network failure. For full details see our Infrastructure
Strategy.
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In developing the LTP we have worked hard to understand and manage
the uncertainties around the ability of the industry to deliver our
capital programme. We have worked closely with industry experts to
understand the scale of our programme and the ability of the
industry to deliver it.
Demand for construction workforces is increasing as the demand to
build more houses increases and competes with large infrastructure
projects such as Transmission Gully. The number of infrastructure
projects is growing and so is the cost of delivering them. To
reduce this uncertainty, we are growing our workforce to increase
our capacity to deliver projects and starting procurement early to
give some certainty to the costs and process.
Covid-19 has introduced economic and social uncertainty. From an
infrastructure perspective this creates uncertainty about our
ability to deliver infrastructure projects within agreed
timeframes. Border restrictions are affecting access to skilled
workers and to construction materials. We continue to monitor the
effects of Covid-19 on our ability to deliver and work with our
partners and contractors to address these issues.
We will continue to work with key stakeholders to ensure our
infrastructure projects can be delivered in a timely and
cost-effective way.
Eastern Porirua Regeneration Project On 1 November 2018 the
Government announced that it is investing $1.5 billion over 25
years to implement a regeneration programme for eastern Porirua.
Kinga Ora (formerly Housing New Zealand) are working with Ngti
Toa Rangatira and Council to upgrade about 2,000 state homes and
build 2,000 new affordable homes and 150 public houses. The
infrastructure plan that supports the LTP is reliant on Kinga Ora
investment in eastern Porirua.
How we are responding Drinking water Up to 24% of our drinking
water pipes are in poor or very poor condition. To maintain
provision of safe and healthy water we will implement the Regional
Water Safety Plan and improve the condition of water pipes.
We will encourage more efficient use of water in the city so our
water supply remains sustainable for future generations and we can
delay construction of a new water source for both Porirua City and
the
Wellington Region. To make progress towards more efficient use of
our water supply, we are planning the installation of water meters
from 2025.
Wastewater As much as 49% of the public wastewater network is in
poor condition, leading to leaks and network overflows. We want to
improve the condition of these pipes through wastewater renewals,
increasing the capacity of wastewater storage and the wastewater
treatment plant.
We have similar issues with the condition of private wastewater
pipes with cross connections to stormwater pipes and leaking pipes.
We are planning to work with property owners to address these
issues. Improvements in both the public and private network will
lead to better environmental outcomes and support population grow