Draft Annual Plan 2023/24

Share Draft Annual Plan 2023/24 on Facebook Share Draft Annual Plan 2023/24 on Twitter Share Draft Annual Plan 2023/24 on Linkedin Email Draft Annual Plan 2023/24 link

Thank you for your feedback on the Draft Annual Plan. Your feedback is important to help inform the decisions the Council makes when planning for the District’s future.

The Council will meet in early May to consider the feedback received and hear from submitters before making changes to the final plan which will be adopted in June.

Kia ora Waimakariri,

Welcome to the Draft Annual Plan for 2023-2024, the third year of our Long Term Plan (LTP).

We have navigated our way through some unprecedented times and challenges over the past few years.

Since adopting the LTP in 2021 we have traversed through Covid-19 and its aftermath. From a health perspective we fared well as a District, but unfortunately our community has not been immune to the economic and social challenges the pandemic brought.

We, like the rest of New Zealand and the world, have been affected by supply chain delays which greatly impacted the cost and

Kia ora Waimakariri,

Welcome to the Draft Annual Plan for 2023-2024, the third year of our Long Term Plan (LTP).

We have navigated our way through some unprecedented times and challenges over the past few years.

Since adopting the LTP in 2021 we have traversed through Covid-19 and its aftermath. From a health perspective we fared well as a District, but unfortunately our community has not been immune to the economic and social challenges the pandemic brought.

We, like the rest of New Zealand and the world, have been affected by supply chain delays which greatly impacted the cost and availability of goods and services.

On top of this there have been compounding issues such as rising food and energy prices and increased inflation rates, caused in part by the war in Ukraine and the ongoing effects of Covid-19 on the global economy.

Simply, there’s been no economic period quite like this in the past 30 years.

During the pandemic we made it a priority to ensure rates were kept low. At the start of the pandemic, we had a low 1.5% increase and subsequent 4.5% increase.

In these instances we had some of the lowest increases in Canterbury, but unfortunately, we can’t keep rates artificially low forever without doing a disservice to our District’s future residents. It’s our top priority to always maintain the levels of service our community expects.

This year we had projected an increase in rates of 4.3% but as the rate of inflation increased it forced our hand and we’ve had to balance the economic realities with the expectations of the community.

We started with a proposed rates increase of 14.4% and have gone through our programme looking for savings and at what projects we can defer to keep increases as low as possible.

We had a goal of keeping rates increases under the inflation rate of 7.2% and the Local Government cost index which is consistently higher than the consumers price index (CPI).

We are pleased to report we have reviewed our programme extensively and managed to cap our proposed rates significantly lower than forecasted at an average of 5.97%.

Credit rating agency, Standard and Poor’s, recently announced that Waimakariri District Council has retained its AA long-term and A-1+ short-term credit rating with a stable outlook.

The AA rating equates the Council with New Zealand’s national credit rating – the ‘sovereign rating’. Standard and Poor’s does not rate any individual Council higher than the sovereign rating.

Standard and Poor’s noted that the Council has strong financial management and budget flexibility. The consistency of Council’s financial performance, and how it is rated, assists significantly when it comes to future borrowing and rates that can’t otherwise be achieved.

Our staff have done an excellent job working through and finding the savings that mean our rates are much lower than inflation. As a consequence our Council will have one of the lower increases in New Zealand.

Importantly it also ensures any critical work isn’t put off for too long.

It is important to the Council to ensure affordability for residents, especially when we know households are under pressure due to the cost-of-living crisis.

Key issues

When looking ahead at the Draft Annual Plan for 2023-24 we have only put forward proposals needed to meet legislative requirements or current service levels.

There are three key challenges we face:

1. New regulations mean we need to test water supplies more regularly and bring forward planned upgrades

2. We have to make immediate improvements to the stormwater network following flooding from extreme weather events

3. Inflation and capped Waka Kotahi subsidies are disproportionately affecting our roading budget and more is needed to make sure local roads remain at a high standard.

Other issues

In Local Government there continues to be a lot of uncertainty with four central-government driven reform programmes underway – Three Waters, Resource Management Reforms, the Future for Local Government Review as well as Modernising the Emergency Management Framework.

There’s also new legislation aimed to meet the challenges we face due to a changing climate that will affect how the Council runs, as well as new urban planning rules which we are required to follow.

We’ve been playing an active role in these reforms and changes to ensure the Waimakariri voice is heard at a national level so we are best placed to continue to provide affordable services that our community expect from us.

Tell us what you think

Our aim is to make prudent, future-focused decisions, while still keeping the high level of service our residents expect from us.

We look forward to hearing from you. Please share your thoughts with us before 17 April 2023.

Ngā mihi,

Dan Gordon Mayor

Jeff Millward Acting Chief Executive

Thank you for your feedback on the Draft Annual Plan. Your feedback is important to help inform the decisions the Council makes when planning for the District’s future.

The Council will meet in early May to consider the feedback received and hear from submitters before making changes to the final plan which will be adopted in June.

  • Investment needed to meet new water standards

    Share Investment needed to meet new water standards on Facebook Share Investment needed to meet new water standards on Twitter Share Investment needed to meet new water standards on Linkedin Email Investment needed to meet new water standards link
    supporting image

    New Zealand’s drinking water laws have changed. New regulations mean we need to test water supplies more regularly and potentially bring forward planned upgrades.

    Taumata Arowai took over responsibility for regulating drinking water from the Ministry of Health in November 2021, via the Water Services Act.

    Under the Act all suppliers of water must submit a Drinking Water Safety Plan (DWSP) as well as introduce a residual disinfectant, such as chlorine, unless awarded an exemption.

    The Council has submitted six applications to Taumata Arowai seeking exemptions from having to use chlorine in our water supplies.

    Waimakariri residents on urban schemes have been clear that they do not want chlorinated public water and the Council is doing everything we can to ensure that happens.

    We believe we have, and can continue to maintain, high quality and safe drinking water for our residents without the use of chlorine and we are committed to working proactively with Taumata Arowai on the exemption process.

    The decision whether we must chlorinate however, will be dictated by the outcome of the Taumata Arowai assessment of our applications.

    While we are waiting for our applications to be assessed, Taumata Arowai has allowed the Council to continue running currently unchlorinated water supplies, where permitted, on the basis that more regular testing is undertaken and a programme of work is brought forward which will increase the safety of supply.

    This increased testing, and fast-tracking of UV treatment projects may not guarantee a positive outcome to the exemption process, and it is likely that further investment will still be required.

    There is a cost associated with this which accounts for approximately $400k annually for more regular testing and requires $6m to be brought forward for planned ultra-violet (UV) upgrades.

    OPTIONS:

    A: Council’s preference

    The community supports a more robust testing regime and bringing forward planned treatment upgrades to meet the new rules.

    Project Completed

    Total Additional Spend Required

    Rate Per Year Per Property

    2023/24

    $6m

    $35

    B: The proposal is declined

    The community does not support this further investment into testing and infrastructure upgrades. This would mean however that water supplies would likely not pass the exemption process and will need to be chlorinated.

  • Stormwater upgrades needed to respond to extreme weather events

    Share Stormwater upgrades needed to respond to extreme weather events on Facebook Share Stormwater upgrades needed to respond to extreme weather events on Twitter Share Stormwater upgrades needed to respond to extreme weather events on Linkedin Email Stormwater upgrades needed to respond to extreme weather events link
    supporting image

    In 2022 we experienced the wettest July on record.

    Our Civil Defence team and Council staff work through these events to ensure our infrastructure is functioning, any issues are found, main roads remain accessible, and signage is placed in busy areas where extreme caution is required – all so any risks to residents is minimised.

    Having well-functioning stormwater infrastructure is key to our community getting through these events. Recent significant rain events have helped identify parts of our network that need to be upgraded.

    At the peak of the July event Council received more than 1650 calls resulting in more than 600 requests for support.

    With the climate changing we expect there to be more regular instances of heavy rainfall which cause flooding across the District.

    In the aftermath of weather events, we work through these service requests which involve on-site visits, discussion with property owners, looking at Council infrastructure and putting in place fixes where possible.

    These extreme weather events and the subsequent flooding means we have had to make immediate improvements to the stormwater network.

    While this work is essential, it will significantly affect some areas of the District (like low-lying coastal areas) more than others.

    To date the Council has spent $3.82m as part of emergency and immediate works due to these weather events.

    However, the job is not finished yet. There is a further $7.8m required to undertake fixes to the network and necessary stormwater upgrades over the next eight years that will significantly reduce the flooding risk of these extreme events.

    OPTIONS:

    A: Council’s preference

    The community sees value in spending on stormwater infrastructure that will make the District more resilient to extreme weather and heavy rainfall events.

    Project Completed

    Total Additional Spend Required

    Rate Per Year Per Property

    2023/31

    $7.8m

    $18.22


    B: The proposal is declined

    The community does not support further investment in stormwater infrastructure. Without this investment the risk of flooding during large storm events remains the same.

  • Inflation fuelling higher roading costs

    Share Inflation fuelling higher roading costs on Facebook Share Inflation fuelling higher roading costs on Twitter Share Inflation fuelling higher roading costs on Linkedin Email Inflation fuelling higher roading costs link
    supporting image

    High Inflation and a disproportionate increase in road construction costs (such as fuel, labour, and aggregates) is putting pressure on our budget for road maintenance.

    More funding is needed to make sure local roads remain at a high standard.

    Across the District the Council maintains over 950km of sealed roads, 580km of unsealed roads, 350km of footpaths, 288 bridges, 18km of cycleways, over 18,000 signs and many more roadside assets that help keep drivers safe.

    We know a safe, well-maintained road network is important to our residents and we are committed to supplying a high standard network to ensure our District remains well connected and easily accessible.

    It’s also important to ensure the safety of residents as they move about Waimakariri.

    Roads are jointly funded by Council rates as well as Waka Kotahi through taxes in an approximate 50/50 split.

    With 2023 being the last year of Waka Kotahi/NZTA’s National Land Transport Programme (NLTP) three-year funding cycle, we do not have the option of going to the agency seeking additional funding until 2024.

    To ensure our road network remains at the current standard, the Council will need to make up the difference.

    Our expected budget for subsidised road maintenance for the year ahead is a total of $6.54m. On top of this amount, we are seeking a further $1.058m to ensure our road network remains at the current high standard.

    OPTIONS

    A: Council's preference

    We partially fund the gap for some renewal projects and all maintenance activities. This equates to an added $1.058m of funding.

    Project Completed

    Total Additional Spend Required

    Rate Per Year Per Property

    2023/25

    $1.058m

    $37.81


    B: Only fund maintenance

    We only fund the gap for maintenance. This equates to $665k.

    Project Completed

    Total Additional Spend Required

    Rate Per Year Per Property

    2023/24

    $665k

    $23.77


    C : Fully fund the shortfall

    We fully fund the shortfall of $1.28m which means our road network receives the maintenance and renewals needed.

    Project Completed

    Total Additional Spend Required

    Rate Per Year Per Property

    2023/24

    $1.28m

    $45.74


  • Other issues

    Share Other issues on Facebook Share Other issues on Twitter Share Other issues on Linkedin Email Other issues link
    supporting image

    The following topics are mostly the result of national regulatory changes (including environmental and infrastructure standards) that affect Council’s public facilities, water supplies, stormwater network and planning provisions.

    Central Government-led Reforms

    There continues to be a significant reform agenda being undertaken by central government which is resulting in a high degree of uncertainty in the sector. Reforms include Three Waters, Resource Management Act, Review into the Future of Local Government, and the Emergency Management Framework.

    All these reforms have the potential to significantly affect core Council business. The most pressing reform is still Three Waters which proposes to take the provision of water supply from councils across New Zealand and amalgamate these into four entities.

    Climate Change and Sustainability

    In 2022 the Council adopted a Climate Change Scenario Technical Report. This report, prepared by the National Institute of Water and Atmospheric Research (NIWA), is to inform the climate change response in our District.

    The report found that weather patterns are expected to become more volatile and we will see annual average temperatures increase generally, with fewer frost and snow days. In 2017/18 we undertook an emissions inventory that found 72% of the Council’s emissions come from vehicles, 14% from power, 11% from air travel and 3% from other.

    We have since adopted a corporate sustainability strategy and ensured these principles are now part of our everyday actions and a consideration in our procurement. Currently the Council is calculating an emissions profile for the District, and our own Emissions Reduction Plan.

    Community Facilities

    The 2021 Long Term Plan had a focus on community facilities that are needed for our growing District. The Council resolved to secure land in Pegasus and North Woodend and look to build a community facility in Pegasus by 2024/2025 as well as investigate possible community facilities in North Woodend by 2029/2030 to secure future opportunities for these growing communities.

    We also deferred the upgrade of the Trevor Inch Memorial Library and Rangiora Civic Building to 2028 and decided to revisit this proposal in the next Long Term Plan.

    Rubbish and Recycling

    We know that too much rubbish and recyclable material is ending up in landfills and our environment. Central government is currently reviewing legislation that regulates our rubbish and recycling sector. Staff and consultants are working through a plan to upgrade the Southbrook site, with the intention of finalising design this year, obtaining a consent during the 2023/24 year and construction starting in 2024/25.

    This upgrade, which was budgeted for in a prior Long Term Plan, will mean that the Park can continue to meet the needs and expectations of our growing population. Once costs are known this will likely be a topic for a future Long Term or Annual Plan.

    Rating Revaluation

    At the end of 2022 new rating valuations were received for Waimakariri. These valuations are prepared by Quotable Value (QV) and look at the rateable value of all properties in the District. Rating valuations are usually carried out on all New Zealand properties every three years to help councils set rates for the following three-year period

    Inflation and Depreciation

    Like residential property, the value of public assets owned by the Council has increased. However, the market value to replace these has also increased dramatically due to inflation.

    Rather than taking the extreme step of adding a required 7.52% to overall rates in order to combat that steep rise in replacement cost, we have taken a measured approach and will watch what happens to the cost fluctuations in the coming years. Our aim is to gradually fund this spike in replacement cost over the next five years.

    Development Contributions

    The Council has reviewed its Development Contribution Policy to confirm that the elements of the policy are still relevant for administration of development contributions. The key topics considered under this review include:

    • Rebate/remission scheme for development in Tuahiwi Reserve MR873

    • Development contribution maps associated with development in east Rangiora.

    For more information on these topics click on the links in the Key Documents tab and feel free to reference these topics in your submission.