2021-2031 Ten Year Plan | 2021-2031 He Mahere Kahurutaka - Queenstown Lakes District Council

 
2021-2031 Ten Year Plan | 2021-2031 He Mahere Kahurutaka - Queenstown Lakes District Council
2021-2031
Ten Year Plan
| 2021-2031
He Mahere
Kahurutaka
Consultation document
| He tuhika whakawhiti kōrero

     SUBMIS
            SIONS
   CLOSE A
           T 5.00PM
     ON MON
             DAY
    19 APRIL
             2021
2021-2031 Ten Year Plan | 2021-2031 He Mahere Kahurutaka - Queenstown Lakes District Council
Contents | Rāraki take

       A message from the Mayor | He karere mai i te mea                                                  3

       What is the Ten Year Plan? | He aha ki kua i te aroaro?                                            5

       Our vision | Tō tātou moemoeā                                                                      6

       The numbers you need to know | Kā tatauraka                                                        8

       The challenges ahead | Kā taero e whai ake                                                         13

           Big Issue 1: Delivering safe and reliable 3 water services for our communities                 16

           Big Issue 2: Meeting the transport needs of our communities and ensuring capacity and choice   20

           Big Issue 3: New Targeted Rate on Queenstown Town Centre properties                            24

           Big Issue 4: Increasing User Fees and Charges                                                  28

       Other projects | Ētahi atu hinoka                                                                  30

       What else has changed | Kā panonitaka                                                              32

       We want to hear from you | Whakapā mai                                                             35

       The important dates | Te wātaka                                                                    36

       Want more information about the Ten Year Plan | He pātai anō māu?                                  36

       Need help with your submission? | He āwhina māu?                                                   36

       Auditor’s report | Rīpoata o te kaitātari kaute                                                    37

       Submission form | Puka tāpaetaka                                                                   39

2   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT
A message from the Mayor
| He karere mai i te mea

In 2018 the Council laid out its
most ambitious capital investment                    The choices                                   In this confronting environment
                                                                                                   Council must show leadership and
programme in response to
unprecedented and sustained                          that this                                     together with our communities we
                                                                                                   must seek to be resilient. Disaster-
growth in both resident and
visitor populations. At $990M                        Council will                                  Defying Resilience | He Hapori
                                                                                                   Aumangea is one of our communities’

                                                     make through
that programme was three times                                                                     defining vision statements and
larger than any before to meet the                                                                 one that has been called upon
increased demand on 3 waters                                                                       in recent times. Combined with
(stormwater, wastewater and                          this Ten Year                                 continued investment by Council, the
water supply), roading                                                                             entrepreneurial spirit and resilience
infrastructure, community facilities
and services, waste management
                                                     Plan will                                     that is embodied by our district’s
                                                                                                   communities is a strong foundation
and much more1.                                      unlock our                                    for our recovery from the effects of
                                                                                                   COVID-19.
We considered that period to be
our greatest challenge but we were
                                                     communities’                                  Aotearoa New Zealand has fought
wrong.                                               ability to                                    hard against the pandemic and with
                                                                                                   the unprecedented freedoms we have
In 2020, Council had to take a
comprehensive and wholesale
                                                     recover, and                                  maintained and the return of Kiwis
                                                                                                   from overseas, we are confident that
review of all the assumptions that
led to the last plan. Now, with a
                                                     to live well.                                 Queenstown Lakes will long continue
                                                                                                   to be a highly desirable place to live,
continuing focus on our changing                                                                   work and invest in.
climate, the unprecedented global
pandemic fallout, and the changing                   COVID-19 has been devastating                 It would be short sighted and indeed
needs of our growing community,                      on a global scale. Within Aotearoa            irresponsible not to continue to plan
the Council needs to deliver a plan                  New Zealand, our district’s                   for and invest in growing well in our
that gets the level of investment                    communities were hard hit due                 district but we can and must begin to
right to re-ignite our economy                       to the local economy’s reliance               think about doing things differently.
and ensures we grow well into the                    on the visitor industry and the               We need a continued future-focus
future. Our greatest challenge has                   sudden and prolonged absence                  on Climate Action where our climate-
been achieving this within what we                   of any international visitors3.               conscious communities make very
believe is an acceptable average                     The pandemic fallout will be felt             real changes to how they live, work
annual rates increase of 4.3%2                       around the world for many years               and play. We need to support our
over the ten years.                                  to come. The Council does not                 tourism system to recover along
                                                     underestimate the social and                  with a renewed drive towards a
                                                     financial toll this global crisis             more diversified economy. We need
                                                     has taken on our people and our               to plan for growth in the right way
                                                     country. A significant number                 in the right places and we need to
                                                     of our international workforce                open ourselves to more efficient land
                                                     community has moved on or                     use, with a focus on better living
                                                     returned to their home country,               for everyone in our communities
                                                     as have others who have had to                throughout the district. The draft
                                                     find employment outside of our                Spatial Plan4 is how we will ensure our
                                                     district, and we have seen a rise in          district remains desirable and liveable
                                                     unemployment and mental health                for current and future generations.
                                                     issues.

1
  www.qldc.govt.nz/your-council/council-documents/ten-year-plan-ltp
2
  After allowing for growth in rateable properties
  www.qldc.govt.nz/recovery/data-reports
                                                                                                                                                 3
3
                                                                                            QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT
4
  Find out more about the draft Spatial Plan at letstalk.qldc.govt.nz
Strategic planning is the backbone               From the perspective of resilience                I look to the proposed rates
    to our investment planning,                      in Council’s existing infrastructure              increases (average of 4.3% over
    therefore we are consulting on the               there is also a focus on ensuring                 the ten years) and I can reassure
    Spatial Plan in conjunction with the             investment is optimised, that it                  you that the journey to reach this
    Ten Year Plan and Council’s 30-                  is maintained in a fit state and                  point has been robust and our
    year Infrastructure Strategy.                    not degraded, particularly where                  rationale in the proposed plan
                                                     it creates risk to health. The                    is sound. Cut deeper and our
    The key issues we are consulting                 changing climate is presenting new                community will feel those cuts and
    on in this Consultation Document                 challenges and shifting priorities                in some instances we start to put
    are transport, our investment                    for our communities. Increasingly                 the health and wellbeing of our
    programme for water supply,                      the Council is investing and                      communities and environment at
    wastewater and storm water,                      developing with a climate action                  risk. I acknowledge that the timing
    a rating proposal for the                        lens shaped by the Climate Action                 of proposed user fees and charges
    Queenstown CBD (first signalled in               Plan6 and its five key outcomes,                  and the targeted CBD rate is far
    the 2018-2028 Ten Year Plan), and                which will be reviewed annually.                  from ideal in the current context.
    increasing fees and charges.                                                                       We have indicated preferred
                                                     While the overall numbers                         options that place the cost directly
    The communities’ Vision Beyond                   continue to be significant,                       with those benefitting but we want
    2050, including the vision                       funding constraints due to debt                   to hear from those impacted the
    statements of Zero Carbon                        capacity within the first five years              most, we do have genuine options.
    Communities | Parakore Hapori                    have seen a number of projects
    and Deafening Dawn Chorus |                      reprogrammed, delivering them                     As always this process can only
    Waraki, has never been more                      later in the ten-year period or                   be complete once we have heard
    relevant nor more essential.                     beyond. Over the last year Council                the voices and the views of our
    Planning for our generations                     has undertaken a considerable re-                 people.
    to come is one of the most                       prioritisation of projects. Inevitably
    productive and critical things we                some of the things we want to do,
    can do.                                          or you as our communities want us
                                                     to do, have had to be delayed or
    It is essential now that we continue
    the investment programme
                                                     reprioritised beyond the 2021-2031
                                                     period in this draft plan.
                                                                                                       Kā mihi,
    we began in 2018. This will be
    critical for our communities and                 This includes some of the more
                                                                                                       Thank you.
    our economy. Building on that                    community-focused services or
    work programme, the proposed                     facilities, such as upgrades to
    capital investment programme                     reserves and parks, additional
    for 2021-2031 is forecast at                     sport and recreational facilities or
    $1.68 billion (2018: $0.99 billion)              investment on some tracks, trails
    reflecting the adjusted scale and                and active travel networks.
    shifting priorities in the revised
    programme.                                       It is also necessary to
                                                     acknowledge that the proposed
    The need to invest in our                        investment is large and
    district’s future exists in a very               challenging, and the proposed
    challenging and new environment.                 budget presents a `best case’
    It is a significantly constrained                scenario. We are confident we
    environment that has defined how                 have the capability and capacity
    we have shaped the proposed                      within the organisation but it is
    investment and operational                       important we go into this ten-
    programme. There is a high level of              year programme with open
    legal compliance shaping Council’s               eyes knowing that there are
    choices ensuring the community                   factors beyond Council’s control
    is kept safe and Council delivered               that could affect the current
    services are compliant, particularly             planning. This Council is adept at
    in the 3 waters infrastructure.                  responding to a rapidly changing                  JIM BOULT
    Primarily that is in the form of the             environment with the agility to                   Mayor,
    water services reforms and the                   reprogramme and reprioritise to                   Queenstown Lakes District Council
    creation of Taumata Arowai, the                  ensure consistent delivery.
    government’s new Water Services
    Regulator, to oversee and enforce
    a new drinking water regulatory
    framework, with an additional
    oversight role for wastewater and
    stormwater networks5.
                                                                             5
                                                                                 www.dia.govt.nz/Three-Waters-Reform-Programme
4   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT                       6
                                                                                 www.qldc.govt.nz/your-council/our-vision-mission/climate-action-plan
What is the Ten Year Plan?
| He aha ki kua i te aroaro?

We prepare a Ten Year Plan every three years in
consultation with residents from throughout the
Queenstown Lakes District.
This is the framework for how          > Buildings, venues and facilities,          Whilst we have placed a strong
the district will be developed and       such as community halls                    focus on maintenance and
serviced over the next decade, but                                                  renewals so the levels of service
with a specific focus on the next      > Transport infrastructure,                  you have experienced are
three years. In interim years we         including cycleways and parking            maintained or improved, we also
produce Annual Plans to determine        provision                                  need to keep providing for the
short-term budgets and projects                                                     needs of both our current and
for the coming year. We also           > Parks and reserves                         future communities.
publish Annual Reports that share
with you how we’re performing          > Water supply, wastewater
against these plans.                     and stormwater

The Ten Year Plan covers all of the    > Waste and recycling
services we provide as a Council
and projects that we propose to        > Community services such
deliver or begin within the next ten     as libraries and sport &
years. This includes the following:      recreation facilities

                                       > Regulatory and enforcement
                                         services, such as animal control

                                       > Community and economic
                                         development, and community
                                         resilience

You can access the full draft Ten Year Plan
document online at letstalk.qldc.govt.nz.
Alternatively drop into our offices in Queenstown
or Wānaka, or any of our libraries.

                                                                             QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT   5
Our vision
    | Tō tātou moemoeā

    There are two core frameworks                    VISION BEYOND 2050
    that have underpinned the
    development of the draft 2021-
    2031 Ten Year Plan: the four
    community wellbeings as defined
    by the Local Government Act
    2002 and the Vision Beyond 2050
    principles. These are also reflected
    as the foundation for our Ten Year
    Plan community outcomes, and
    the key performance indicators by
    which we will measure ourselves.

                                                             THRIVING PEOPLE                              EMBRACING THE
                                                          | WHAKAPUĀWAI HAPORI                             MĀORI WORLD
                                                                                                          | WHAKATINANA
    Vision Beyond                                          The three central figures                        TE AO MĀORI
                                                           are the people within the
    2050                                                 communities thriving. With the
                                                            sun rising behind them.
                                                                                                    The koru and the traditional
                                                                                                    haehae lines represent te ao
                                                                                                        Māori as a whole.
    Looking beyond the year 2050,
    the community vision - A Unique
    Place. An Inspiring Future |
    He Wāhi Tūhāhā. He Āmua
    Whakaohooho7 – presents eight
    key themes for how we want to
    live, work and play in our district in
    the future. This series of defining
    principles (or vision statements)
    is intended to be carried into
    the future and is brought to life
    through additional outcomes that
    define what we hope for, to hear, or
    experience in day-to-day life in the
    Queenstown Lakes.

    In March 2019, the Council
                                                                DEAFENING                                 ZERO CARBON
    unanimously agreed to commit to
                                                               DAWN CHORUS                                 COMMUNITIES
    the vision as a guiding document
                                                                 | WARAKI                              | PARAKORE HAPORI
    to inform future decision making
    and planning.
                                                             This icon shows a tūī                   The koru surrounding the
                                                          singing as a new day starts                wind turbine represent the
                                                            reflecting a healthy and                 life or more so the energy
                                                           thriving environment and                 that is produced so that we
                                                                   ecosystem.                       may thrive in a zero carbon
                                                                                                             community.

6   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT                                    7
                                                                                              www.qldc.govt.nz/your-council/our-vision-mission
Community
                                                                           Wellbeings
                                                                           In 2019, an amendment to the
                                                                           Local Government Act reinstated
                                                                           the community wellbeings giving
                                                                           councils a clear directive that
                                                                           community wellbeing needed
                                                                           to be a core consideration in
                                                                           any decision making. These
OPPORTUNITIES FOR ALL                    BREATHTAKING                      four wellbeings had consistently
 | HE ŌHAKA TAURIKURA                     CREATIVITY                       underpinned Council planning
                                       | WHAKAOHOOHO                       and decision-making, and the
                                          AUAHATAKA                        legislative clarification was
  The koru and mangopare
                                                                           welcomed by QLDC and reflects
   show the different paths
                                                                           our commitment to promoting the
  and opportunities that are        This icon is representative
                                                                           social, economic, environmental,
          available.                   of an atom, but also
                                                                           and cultural wellbeing of
                                          creativity itself.
                                                                           communities in the present
                                                                           and for the future.

                                                                           Aligned with the community Vision
                                                                           Beyond 2050 principles, these
                                                                           wellbeings have also been a
                                                                           foundation in developing this draft
                                                                           Ten Year Plan and continue to be
                                                                           a key factor in Council decision-
                                                                           making processes.

    DISASTER DEFYING                  PRIDE IN SHARING
       RESILIENCE                        OUR PLACES
 | HE HAPORI AUMANGEA              | KIA NOHO TAHI TĀTOU
                                           KĀTOA
The puhoro are representative
  of speed and swiftness, in       This icon shows our whenua
  this case representing the        and the pride we have in it,
   swiftness that we take in         with the different styles of
making sure we are resilient in   koru representing the different
such situations. Then the koru       elements within the rohe.
    bringing life and hope.

                                                                    QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT   7
The numbers you need
    to know | Kā tatauraka

    It is essential that we continue
    to invest and build upon the
                                                     reduction in user fees such as
                                                     consent processing, parking and        Funding
    programmes that were begun
    with the 2018-2028 Ten Year
                                                     sport facilities ($2.9M).
                                                                                            Constraints
    Plan, to the benefit of our local                There was also a significant budget
    communities, our economy, our                    reduction in operational costs of
    environment and the wellbeing of                 $11.7M (6.9%) which included           Operational and capital
    current and future generations.                  staff costs being reduced by 11%       expenditure budgets have been
    Achieving a balanced, sustainable                ($4.7M) and other operational and      developed with an affordability
    capital investment programme,                    maintenance expenditure reduced        lens primarily to ensure that
    supported by a realistic operational             by $1.47M.                             an effect on rates is kept to a
    budget to deliver and maintain                                                          minimum where possible, that
    levels of service, must be balanced              Most rate funded loan repayments       borrowing limits aren’t exceeded,
    with an acceptable, fair and                     were suspended to keep the             and that user fees for services
    appropriate increase in rates.                   proposed rates increase down           such as consent applications,
    Some of the considerations in                    to an acceptable level ($2.6M)         parking, and community facilities
    achieving that are outlined here.                and all loan repayments funded         are set appropriately. In finding an
                                                     from the QAC dividend were also        acceptable balance for the draft
                                                     suspended.                             2021-2031 Ten Year Plan, Council
                                                                                            has had to work within the limits
                                                     It’s important to realise that the     set on borrowing New Zealand
    The COVID-19                                     amended budget for 2020-2021
                                                     was a one-off response to reduce
                                                                                            Local Government Funding
                                                                                            Agency Te Pūtea Kāwanatanga
    Context                                          rates. We acknowledge that
                                                     there are still households with
                                                                                            ā-Rohe.

                                                     reduced incomes or concerned           The key borrowing limit is the ratio
                                                     about their financial stability, and   of debt to revenue which is set at
    The 2020-2021 Annual Plan                                                               280% and our approach has been
                                                     this has a flow on effect to their
    was developed as a direct                                                               to remain within that limit to ensure
                                                     wider wellbeing, however it will
    response to the COVID-19 global                                                         there is sufficient contingency
                                                     be necessary for Council to return
    pandemic and the immediate and                                                          should it be required due to an
                                                     to a more prudent approach with
    anticipated effects on our district.                                                    emergency response scenario or
                                                     regard to debt repayments and
    In particular, the plan needed to                                                       unforeseen changes imposed by
                                                     the funding of depreciation (see
    reflect that there was a high level                                                     Central Government that need
                                                     below).
    of uncertainty in many households                                                       significant investment. There are
    about the security of their future                                                      also consequences for breaching
                                                     In the draft 2021-2031 Ten
    income and the effects any                                                              that limit that would significantly
                                                     Year Plan, we expect a gradual
    economic downturn may have.                                                             reduce Council’s borrowing
                                                     improvement in economic
    The plan was also built around                                                          capacity in the future.
                                                     conditions with tourism picking up
    a number of issues relating to a
                                                     initially with the return of trans-
    reduction in Council’s revenue of                                                       So in order to deliver a draft plan
                                                     Tasman business during 2021-
    $17.9M with 42.5% of this directly                                                      with acceptable average rates
                                                     2022, and other international travel
    affecting rates. This revenue                                                           increases whilst remaining within
                                                     from 2022-2023. This aligns with
    reduction related to tourism-                                                           borrowing limits, this has meant
                                                     airline industry and government
    related revenues down by at least                                                       a number of projects within the
                                                     travel bubble assumptions for
    50% ($4.7M), no payment of the                                                          capital programme have been
                                                     the same period. We have also
    Queenstown Airport Corporation                                                          reprioritised to later or beyond this
                                                     assumed that all revenue streams
    dividend ($5.8M) which would                                                            draft Ten Year Plan.
                                                     return to 100% of pre-COVID
    have been used to repay debt,
                                                     levels by 2023-2024.
    development contribution incomes
    down by 22.6% ($4.5M), and a

8   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT
Depreciation                              Visitor Levy                                   Rates Impact
Funding
                                          In June 2019, a poll was held                  The proposed average rates
                                          by postal vote over the whole                  increase for 2021-2022 is 4.56%
In year one of the draft 2021-2031        district to inform consideration by            (after allowing for growth of 2.5%
Ten Year Plan (2021-2022) there           Central Government of a proposed               in the rates database). In contrast
is a significant 21% increase in          legislative change to enable the               to the 1.59% average increase
depreciation expense which is             introduction of a visitor levy to fund         that was delivered in the 2020-
primarily due to 2020 revaluations        visitor-related infrastructure and             2021 Annual Plan (specifically
of roading asset values. Although         services within the Queenstown                 revised as a direct response to the
the gross increase is $7.4M, the          Lakes District. In this referendum,            unique circumstances of the global
rates impact is limited to the            81.37% voted8 in support of                    pandemic) it is not sustainable
amount of depreciation actually           introducing a visitor levy on short            within this draft plan to maintain an
funded. This represents a $70k            term accommodation.                            average increase at that reduced
increase to $14.6M, which is                                                             level for the reasons outlined in
less than originally forecast and         QLDC had been working with                     this Consultation Document. The
represents a minimum acceptable           Central Government officials to                higher increase this year reflects
amount to fund currently planned          prepare and introduce a local bill             the need to continue investing in
renewals programmes.                      to parliament. However, due to                 the comprehensive programme
                                          COVID-19 and the uncertainty                   of works and ensure that we
QLDC has historically funded              around when international tourism              have an organisation that can
around 50% of depreciation                will return, the visitor levy was put          deliver it as well as maintaining
expense in order to provide               on hold. In developing this draft              the levels of service expected by
adequate budgets for asset                Ten Year Plan, our assumption                  our communities. The average net
renewals. The large increase in           is that work will recommence on                annual increase over the ten years
infrastructural asset values over         this project and that a levy will be           (after allowing for growth) is now
the past two years as well as the         introduced from year four (2024-               4.3% up from the 3.4% forecast in
large capital programme has seen          2025).                                         2018. The forecast rates increases
the funded percentage drop to                                                            reflect the assumption that a visitor
34.4% in 2021-2022 of the draft           We estimate that the visitor levy              levy is introduced from year four
Ten Year Plan. We have determined         would recover $162.8M for the                  (2024-2025). If this is not the case,
that we need to increase the              remaining seven years of the                   this will have a significant impact
funded percentage to 36% by               Ten Year Plan and it would be                  on both the capital programme
2026-2027 and to 38% by 2030-             used primarily to fund the capital             and rates increases. For example,
2031 to fund the various renewal          expenditure attributable to visitors.          the average rates increase after
programmes required over the                                                             growth for the last seven years
next ten years. This strategy allows      If the visitor levy were not                   would be 6.3% without the levy in
us to progressively increase the          available, the capital programme               contrast to 4.0% with it.
funded amount which avoids a              from 2024 to 2031 would need to
large spike in rates required in a        be reduced significantly or rates
single year.                              increased by a further 2.3% per
                                          annum for the last seven years of
                                          the plan (see Rates Impact).

    10 YEAR RATES INCREASE

    Financial Year             2022     2023      2024      2025      2026        2027      2028       2029       2030       2031
    ended 30 June

    Net Rates increase       4.56%     5.42%     5.15%     5.62%     5.62%     5.60%      2.55%      2.92%      2.42%      3.63%
    (after growth)

    Gross Rates increase     7.17%     8.05%     8.30%     8.78%     8.78%     8.76%      5.63%      6.00%      5.49%      6.74%
    (before growth)            Limit     Limit     Limit     Limit     Limit     Limit      Limit      Limit      Limit      Limit
                              9.0%      9.0%      9.0%      9.0%      9.0%      9.0%       9.0%       9.0%       9.0%       9.0%

8
    41.45% voter return                                                           QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT   9
RATING CHANGES FOR 2021-2022

     The proposed rates increases below9 include the following elements:

      CHARGE TYPE                                  CHARGE DETAIL
      Uniform Annual Charge                        Increase of $9 per property
      Waste Charge                                 Increase of $17 per property (residential only)
      Aquatic Centre Charges                       Wānaka decrease of $15 per property (residential only); Wakatipu $2 increase
      Increase in rates for wastewater             Queenstown $50 per connection per annum; Wānaka $18; Lake Hayes $80
      Increase in rates for water supply           Wānaka $20 per connection per annum; Lake Hayes $34; Glenorchy $10;
                                                   Hāwea $20; Arthurs Point $30; Luggate $40

     The increase in waste management charges mainly reflects the forecast price increase from $25 to $35 per unit
     of Emission Trading Scheme (ETS) credits required to offset emissions at the landfill. The increases proposed for
     water and waste-water schemes reflect the required increases in depreciation funding (discussed above), interest
     payments related to capital expenditure and increases to electricity and maintenance contract costs.

     We have attempted to minimise the impact of all these factors but increases in these areas are inevitable and we will
     continue to look to smooth the impact over future years.

     RATES IMPACT BY PROPERTY TYPE – MEDIAN PROPERTY VALUES

      SUMMARY OF INDICATIVE TOTAL RATE MOVEMENTS 2021-2022
      MEDIAN VALUES
      Property Type          CV              Location                                                Draft Rates %   Draft Rates $
      Residential            $1,090,000      Queenstown                                              4.36%           $145
      Commercial             $1,890,000      Queenstown                                              6.73%           $432
      Accommodation          $2,081,000      Queenstown                                              5.38%           $567
      M/U Accommodation      $1,260,000      Queenstown                                              4.40%           $189
      Vacant                 $700,000        Queenstown                                              4.29%           $101
      M/U Commercial         $1,250,000      Queenstown                                              4.89%           $196
      Residential            $845,000        Wānaka                                                  4.02%           $125
      Commercial                            $1,045,000              Wānaka                           5.08%           $248
      Accommodation                         $1,100,000              Wānaka                           3.69%           $271
      M/U Accommodation                     $900,000                Wānaka                           3.77%           $146
      Primary Industry                      $5,050,000              Wānaka                           3.56%           $155
      Country Dwelling                      $1,560,000              Wānaka                           2.44%           $62
      Vacant                                $550,000                Wānaka                           2.72%           $61
      M/U Commercial                        $880,000                Wānaka                           4.15%           $151
      Residential                           $890,000                Arrowtown                        2.13%           $67
      Commercial                            $1,650,000              Arrowtown                        5.45%           $323
      Accommodation                         $1,700,000              Arrowtown                        3.61%           $281
      M/U Accommodation                     $900,000                Arrowtown                        2.44%           $91
      Vacant                                $720,000                Arrowtown                        3.36%           $78
      M/U Commercial                        $900,000                Arrowtown                        2.78%           $98
      Primary Industry                      $4,100,000              Wakatipu                         6.64%           $218
      Country Dwelling                      $2,050,000              Wakatipu                         5.37%           $140
      Residential                           $700,000                Glenorchy                        4.93%           $125
      Residential                           $820,000                Lake Hayes                       6.85%           $197
      Residential                           $570,000                Hāwea                            3.64%           $95
      Residential                           $520,000                Luggate                          4.01%           $88
      Residential                           $650,000                Kingston                         4.04%           $71
      Residential                           $860,000                Arthurs Point                    3.01%           $93

10   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT                                        9
                                                                                                   Per annum
CUMULATIVE RATES IMPACT OF MAJOR LEVEL OF SERVICE INCREASE PROJECTS AT YEAR TEN

PROGRAMME                              INVESTMENT                PERCENTAGE APPLICATION                                            TIMING
                                                                 INCREASE
Water Treatment                        Capex of $85.5M           0.6% to 7.5%          Serviced properties distict wide            From year five
Wastewater Upgrades                    Capex of $141.8M 1.2% to 5.4%                   Serviced properties distict wide            From year five
Queenstown Town Centre                 Capex of $157.6M 0.4% to 9.2%                   Wider Queenstown CBD;                       From year three*
                                                                                       Wakatipu ward
* This table shows the full impact in year ten; the new rate is likely to commence in year three with a lower impact and
progressivly increase as the capital works are completed

BASE YEAR IS 2020-2021
   Cumulative Rating Impact       Existing   Water Treatment    Adjusted   Wastewater Impact   Adjusted   Queenstown Town    Adjusted   Total Cumulative
                                   Total          Impact         Total      Revised Increase    Total       Centre Impact     Total          Impact
                                   Rates     Revised Increase    Rates                          Rates     Revised Increase    Rates
Location   Property   Valuation   20/21 $         $         %   20/21 $         $         %    20/21 $         $         %   20/21 $         $          %
           Type

QT/Wak     Dwg        Low           2,953        17      0.6%     2,970       100      3.4%      3,070        13      0.4%     3,083      130       4.4%
QT/Wak     Dwg        Median        3,331        24      0.7%     3,355       100      3.0%      3,455        18      0.5%     3,473      142       4.3%
QT/Wak     Dwg        High          6,176        82      1.3%     6,258       100      1.6%      6,358        61      1.0%     6,419      243       3.9%
QT/Wak     Comm       Low           2,719        15      0.6%     2,734       100      3.7%      2,834        27      1.0%     2,861      142       5.2%
QT/Wak     Comm       Median        6,416        68      1.1%     6,484       100      1.6%      6,584       119      1.9%     6,703      287       4.5%
QT/Wak     Comm       High         81,574      812       1.0%    82,386     1,300      1.6%     83,686     1,433      1.8%    85,119     3,545      4.3%
QT/Wak     Accomm     Low           4,063        28      0.7%     4,091       100      2.5%      4,191        43      1.1%     4,234      171       4.2%
QT/Wak     Accomm     Median       10,525        84      0.8%    10,609       400      3.8%     11,009       131      1.2%    11,140      615       5.8%
QT/Wak     Accomm     High        285,959     2,294      0.8%   288,253    15,400      5.4%    303,653     3,597      1.3%   307,250    21,291      7.4%
QT CBD     Dwg        Low           2,953        17      0.6%     2,970       100      3.4%      3,070        62      2.1%     3,132      179       6.1%
QT CBD     Dwg        Median        3,331        24      0.7%     3,355       100      3.0%      3,455        91      2.7%     3,546      215       6.5%
QT CBD     Dwg        High          6,176        82      1.3%     6,258       100      1.6%      6,358       303      4.9%     6,661      485       7.9%
QT CBD     Comm       Low           2,719        15      0.6%     2,734       100      3.7%      2,834       134      4.9%     2,968      249       9.2%
QT CBD     Comm       Median        6,416        68      1.1%     6,484       100      1.6%      6,584       589      9.2%     7,173      757      11.8%
QT CBD     Comm       High         81,574      812       1.0%    82,386     1,300      1.6%     83,686     7,069      8.7%    90,755     9,181     11.3%
QT CBD     Accomm     Low           4,063        28      0.7%     4,091       100      2.5%      4,191       213      5.2%     4,404      341       8.4%
QT CBD     Accomm     Median       10,525        84      0.8%    10,609       400      3.8%     11,009       648      6.2%    11,657     1,132     10.8%
QT CBD     Accomm     High        285,959     2,297      0.8%   288,256    15,400      5.4%    303,656    17,751      6.2%   321,407    35,448     12.4%
Wan        Dwg        Low           2,953      197       6.7%     3,150        76      2.6%      3,226         0      0.0%     3,226      273       9.2%
Wan        Dwg        Median        3,100      211       6.8%     3,311        76      2.5%      3,387         0      0.0%     3,387      287       9.3%
Wan        Dwg        High          4,349      328       7.5%     4,677        76      1.7%      4,753         0      0.0%     4,753      404       9.3%
Wan        Comm       Low           3,170      210       6.6%     3,380        76      2.4%      3,456         0      0.0%     3,456      286       9.0%
Wan        Comm       Median        4,881      310       6.4%     5,191        76      1.6%      5,267         0      0.0%     5,267      386       7.9%
Wan        Comm       High         49,156     3,258      6.6%    52,414       608      1.2%     53,022         0      0.0%    53,022     3,866      7.9%
Wan        Accomm     Low           3,954      233       5.9%     4,187        76      1.9%      4,263         0      0.0%     4,263      309       7.8%
Wan        Accomm     Median        7,333      347       4.7%     7,680       228      3.1%      7,908         0      0.0%     7,908      575       7.8%
Wan        Accomm     High         86,925     3,750      4.3%    90,675     2,280      2.6%     92,955         0      0.0%    92,955     6,030      6.9%
QT/Wak     C Dwg      Low           1,861         0      0.0%     1,861         0      0.0%      1,861        17      0.9%     1,878        17      0.9%
QT/Wak     C Dwg      Median        2,615         0      0.0%     2,615         0      0.0%      2,615        35      1.3%     2,650        35      1.3%
QT/Wak     C Dwg      High          5,550         0      0.0%     5,550         0      0.0%      5,550       104      1.9%     5,654      104       1.9%
QT/Wak     PI         Low           1,937         0      0.0%     1,937         0      0.0%      1,937        19      1.0%     1,956        19      1.0%
QT/Wak     PI         Median        3,286         0      0.0%     3,286         0      0.0%      3,286        56      1.7%     3,342        56      1.7%
QT/Wak     PI         High         11,473         0      0.0%    11,473         0      0.0%     11,473       251      2.2%    11,724      251       2.2%
Wan        C Dwg      Low           2,126         0      0.0%     2,126         0      0.0%      2,126         0      0.0%     2,126         0      0.0%
Wan        C Dwg      Median        2,523         0      0.0%     2,523         0      0.0%      2,523         0      0.0%     2,523         0      0.0%
Wan        C Dwg      High          4,380         0      0.0%     4,380         0      0.0%      4,380         0      0.0%     4,380         0      0.0%
Wan        PI         Low           2,096         0      0.0%     2,096         0      0.0%      2,096         0      0.0%     2,096         0      0.0%
Wan        PI         Median        4,370         0      0.0%     4,370         0      0.0%      4,370         0      0.0%     4,370         0      0.0%
Wan        PI         High         14,576         0      0.0%    14,576         0      0.0%     14,576         0      0.0%    14,576         0      0.0%

Dwg             Dwelling
Comm            Commercial
Accomm          Accommodation
C Dwg           Country Dwelling
PI              Primary industry                                                                   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT       11
Delivering our                                   Bundling multiple projects into
                                                      consolidated packages of work
                                                                                             There are two main reasons for
                                                                                             the $690M increase in capital
     programme                                        is another strategy that we have
                                                      been employing successfully and
                                                                                             budget from 2018 to 2021. The
                                                                                             first relates to the increase in cost
                                                      will continue to do so through this    estimates for projects included in
                                                      programme.                             the 2018-2028 Ten Year Plan which
     Council acknowledges that we
                                                                                             have not yet been completed and
     are proposing an ambitious work
                                                      We have contracts already in           the second relates to the inclusion
     programme. We are aware of
                                                      place for major pieces of work         of new projects. Examples of
     the challenge in delivering this
                                                      which are ongoing such as              new projects are: Queenstown
     proposed programme and the
                                                      the Queenstown town centre             Performing Arts Centre ($51.3M);
     specific risks that we will need to
                                                      streetscape upgrades and the first     Wānaka Sportsfield development
     mitigate. To deliver the expanded
                                                      stage of the Queenstown arterial,      (Ballantyne Rd $24.2M); new
     programme we will need to
                                                      and significant 3 Waters upgrades,     Stormwater projects ($47.1M);
     manage all aspects closely and do
                                                      and we are well progressed in          Resource Recovery Park
     some things differently. We have
                                                      setting up for delivery of key         ($38.7M); Queenstown Public
     already made changes in planning
                                                      projects through our Alliance          Transport hub ($17.3M); Road
     for this and are gearing up in other
                                                      with Waka Kotahi NZTA. This            Safety Programmes ($24.9M);
     areas to enable delivery.
                                                      Alliance compromises of four           Wānaka Water Treatment ($52.4M)
                                                      key contractors which allows the       and servicing of the Te Tapuea
     Our infrastructure strategy
                                                      Council to guarantee access to         Southern Corridor (Coneburn) for 3
     identifies that we are in a
                                                      contractor resources into the future   waters ($66.8M).
     challenging environment for
                                                      to underpin roading programmes.
     completing infrastructure work
                                                                                             Further factors include the need
     with pressures on availability
                                                      Although we are confident that our     for Council to deliver projects
     of materials and specialist
                                                      approach to managing delivery          already committed to including
     contractors. To mitigate these
                                                      is robust, additional lead time is     Housing Infrastructure Fund
     risks we are taking a multi-faceted
                                                      being built into projects to ensure    projects ($62.8M) and the Crown
     approach.
                                                      that there is sufficient time for      Infrastructure Partners’ shovel-
                                                      the projects to acquire land and       ready projects (Queenstown
     Within Council our dedicated
                                                      receive consents. Furthermore, in      streetscapes upgrades and arterial
     project management office (PMO)
                                                      the event that it becomes apparent     road), the $90M New Zealand
     is key in managing work across
                                                      we are not able to deliver projects    Upgrade Programme Package
     our multiple projects. The PMO
                                                      to the timeframes proposed we will     for Queenstown (bus hub and
     receives independent oversight
                                                      review other work and re-prioritise.   improvements for SH6, a new
     from third party experts which is
                                                                                             roundabout at Howards Drive and
     reported to the Audit, Finance and
                                                      From a financial perspective we        an active travel underpass at Te
     Risk Committee. Our PMO will
                                                      also won’t borrow for a project        Pūtahi Ladies Mile), and delivering
     manage key projects and maintain
                                                      until we have the certainty that       the regulatory requirements of the
     an overview of the entire capital
                                                      works can be delivered. Note –         Three Waters Reform.
     works programme.
                                                      the rates impacts are linked to the
                                                      depreciation of those new assets
     We already have in place multi-
                                                      once they are completed over
     year contracts that ensure
                                                      future years and to the finance
     contracting resources are
                                                      costs only once they are incurred.
     available to meet the needs of our
     programme, allowing us to adapt
     and reprioritise as necessary.

12   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT
The challenges ahead
| Kā taero e whai ake

Investing in                            Te Pūtahi Ladies Mile and Tapuae
                                        Southern Corridor.
                                                                                      in te Reo Māori which translates
                                                                                      to “in the pursuit of wellness”.

Infrastructure                          Reflecting this continued and
                                                                                      One of the key influences of the
                                                                                      Spatial Plan has also been the

to Grow Well                            forecast growth, Queenstown
                                        Lakes District has been classed as
                                                                                      communities’ Vision Beyond
                                                                                      2050 eight principles, ensuring
                                        a tier 2 urban environment under              alignment with the draft 2021-
                                        Central Government’s National                 2031 Ten Year Plan which is also
Prior to COVID-19, the Queenstown       Policy Statement on Urban                     founded on the vision.
Lakes was experiencing the              Development 2020 (NPS-UD). The
fastest rate of resident and visitor    NPS-UD requires councils to plan              The requirements of the NPS-UD
growth in Aotearoa New Zealand.         well for growth and ensure a well-            and the ongoing development
While the pandemic has created          functioning urban environment                 and interations of the district-
uncertainty about the future, the       for all people, communities and               wide Spatial Plan will increasingly
underlying drivers of demand to         future generations, and contains              influence Council’s investment
live or visit the Queenstown Lakes      objectives and policies that                  programme through the ten-
remain and growth is likely to          councils must give effect to in their         year planning cycle. This big-
return in the future. Over the past     resource management decisions.                picture planning aligns with
30 years, the Queenstown Lakes                                                        QLDC’s continued focus on
has grown steadily from 15,000          The NPS-UD directs local                      more targeted masterplanning to
residents to its current population     authorities to enable greater                 ensure this intentional approach to
of approximately 42,000, alongside      supply and ensure that planning               development and investment, and
significant growth in visitors to the   is responsive to changes in                   the wellbeing of our communities
area. This growth has been driven       demand, while seeking to ensure               is consistent. This work is seen
by the attractive climate, clean        that new development capacity                 through the masterplans for
environment, outdoor lifestyle,         enabled by councils is of a form              Queenstown Town Centre, Te
strong economic opportunities and       and in locations that meet the                Kirikiri Frankton, and Te Pūtahi
improved national and international     diverse needs of communities                  Ladies Mile, and work will continue
connectivity.                           and encourages well-functioning,              into the next few years on the
                                        liveable urban environments. It               masterplans for Wānaka and
Following the onset of the              also requires councils to remove              Tapuae Southern Corridor.
pandemic, there has been no sign        overly restrictive rules that affect
of that growth diminishing and          urban development outcomes in
demand for new housing and the          our cities.
need to invest in infrastructure
remains strong. Our key
assumption is that the demand
                                        The Queenstown Lakes Spatial
                                        Plan (being consulted on
                                                                                      Responding
to live in or visit the Queenstown
Lakes will continue into the future
                                        concurrently to this draft Ten Year
                                        Plan) has been developed by
                                                                                      to Climate
and this will be throughout the
district. Current forecasts estimate
                                        QLDC, central government and iwi
                                        partners to deliver on the Urban
                                                                                      Change
the number of residents, visitors       Growth Agenda objectives of the
and jobs will approximately double      Government. The Spatial Plan is
over the next 30 years, requiring       a vision and framework for how                Our changing climate is an
17,000 new homes in the area.           and where the communities of                  increasing focus for both our
A joined-up view of where the           Wakatipu and Upper Clutha can                 communities and the Council.
Queenstown Lakes is heading             Grow Well and develop to ensure               Globally people are changing
is needed to address these              our wellbeing and prosperity. The             their behaviours, how and what
challenges, particularly in high-       overarching goal of the Partnership           they purchase, where they live
demand areas such as Wānaka,            and the Queenstown Lakes Spatial              and what impact that has on
Lake Hāwea, Te Kirikiri Frankton,       Plan is to ‘Grow Well’ or ‘Whaiora’           their environment, methods

                                                                               QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT   13
of travel and more. They are                     essential investment for 3 waters     electric fleet, gas capture facilities
     also demanding more from the                     infrastructure and investing in       at the landfill and an ongoing
     organisations they engage with                   transport programmes that include     commitment to reducing reliance
     to reduce emissions in order to                  public transport options and cycle/   on personal passenger vehicles,
     slow or reverse our changing                     walking networks. If adopted          encouraging a shift to active
     climate, or to find ways to adapt                as proposed, these have the           transport and public transport
     to it. Councils have a role to                   potential to deliver on a number of   usage, and our expectation the
     play in responding to this from                  organisational commitments which      Queenstown Airport Corporation
     both an emissions reduction                      reach over and above Council’s        will be carbon neutral by 2050.
     and mitigation perspective and                   statutory obligations.
     with regard to climate change
     adaptation as the provider of vital              For example, QLDC, our Mayor,
     infrastructure that underpins the                Councillors and Community                 HOW WE AS A COUNCIL
     daily lives of our communities.                  Board members are committed               AND A COMMUNITY
     The Local Government Act 2002                    to responding to and planning             ARE ADAPTING TO OR
     makes it clear that the purpose                  for a changing climate. In June           PREPARING FOR THE
     of local government includes “to                 2019, Council declared a climate          CHANGING CLIMATE
     promote the social, economic,                    emergency, acknowledging that             IS ONE OF THE
     environmental, and cultural                      adapting to the effects of climate        MOST SIGNIFICANT
     well-being of communities in the                 change has become increasingly            CHALLENGES OF OUR
     present and for the future.”                     urgent and to make a real                 TIME.
                                                      difference, we need collaborative
     We also acknowledge our                          action.                                   The effects are already
     district plays an important role in                                                        being seen, for example
     shaping Aotearoa New Zealand’s                   On the same day in June 2019,             in more extreme weather
     international reputation. As such,               Councillors also adopted                  events in Aotearoa New
     it’s important for us to reflect and             QLDC’s first Climate Action Plan          Zealand and around the
     support the provisions of the                    developed following many months           rest of the world. So is our
     Climate Change Response (Zero                    of expert advice and community            response proportionate and
     Carbon) Amendment Act (“Zero                     engagement and sending a                  appropriate? Would you be
     Carbon Act”) passed by parliament                strong message that the Council           prepared to see available
     in 2019. The Act provides a                      is serious about, and committed           funding diverted from other
     framework in which Aotearoa                      to, addressing climate impacts.           projects or an increase in
     New Zealand can develop and                      The overall goals for the district        the rates you pay to do
     implement clear and stable climate               highlighted in the Climate Action         more? When we next review
     change policies that contribute                  Plan are to achieve net zero              the Climate Action Plan,
     to the international effort to limit             carbon emissions by 2050, and to          what would you like to see
     the global average temperature                   be resilient to the local impact of       included or changed?
     increase to 1.5°C above pre-                     climate change across the whole
     industrial levels. It will enable                district.
     Aotearoa New Zealand to prepare
     for and adapt to the effects of                  These organisational commitments
     climate change, as well as setting               underpin Council decision-
     clear goals including reducing all               making in how we manage our                          HAVE YOUR SA
                                                                                                                          Y ON
     greenhouse gases (except biogenic                infrastructure, our day-to-day                        THIS VITAL ISSU
                                                                                                                            E
     methane) to net zero by 2050.                    operations, where we invest our                      AS PART OF YO
                                                                                                                           UR
                                                      capital and operational expenditure                 SUBMISSION O
                                                                                                                         N THE
     Two of the big issues for                        and much more. This can be                          2021-2031 TEN
                                                                                                                         YEAR
     consideration in this Consultation               seen in decisions such as QLDC                             PLAN.
     Document are providing                           undergoing a transition to an

14   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT
Three Waters                          draft 2021-2031 Ten Year Plan in
                                      line with current advice from the
                                                                                  Final decisions on a service
                                                                                  delivery model will be informed

Reform                                Department of Internal Affairs Te
                                      Tari Taiwhenua.
                                                                                  by discussion with the local
                                                                                  government sector and the work
                                                                                  of the Three Waters Steering
                                      Under the MoU, central and                  Committee from Department of
Reform of how 3 waters services       local government agreed to work             Internal Affairs Te Tari Taiwhenua,
are delivered throughout Aotearoa     together to identify an approach            with public consultation expected
New Zealand has been on Central       to service delivery reform that             by August this year and a decision
Government’s policy agenda since      considers the following design              by the end of 2021.
2017 and there is broad political     features:
consensus that some form of                                                       Public communications regarding
reform is required and desirable.     > Water entities would be                   the water reform process will
In July 2020, the Government            publicly-owned, multi-regional            occur through May-August 2021,
announced funding to provide            entities, with a preference for           Council’s participation in the
immediate post-COVID-19                 collective council ownership,             service delivery model may be
stimulus to maintain and improve        and mechanisms for enabling               considered following that period,
water networks infrastructure, and      communities to provide input in           but the guidance from central
to support a three-year programme       relation to the new entities.             government at this stage is that it
of reform of local government                                                     will be beneficial for consumers of
water services delivery               > Delivery of drinking water                those services for QLDC to remain
arrangements. One key driver for        and wastewater services as a              in the programme.
this move was the fatal Havelock        priority, with the ability to extend
North campylobacter outbreak in         to stormwater service provision
2016 and the need for everyone          only where effective and efficient
to be able to access safe, reliable     to do so;                                      NEW WATER REGULATOR
drinking water services. There
are also opportunities for cost       > Water service delivery entities,               3 waters infrastructure in the
and operational efficiencies by         that are:                                      district is generally managed
rationalising services, as well as                                                     by QLDC with the exception of
the review providing the chance         o Of significant scale (most                   some local private schemes.
to consider improvements around           likely multi-regional) to enable             3 waters management in
environmental protection and              benefits from aggregation to                 Aotearoa New Zealand is
sustainability.                           be achieved over the medium                  undergoing significant change
                                          to long-term;                                as outlined in the section
Like many local authorities,                                                           ‘Three Waters Reform’. This
QLDC signed a Memorandum                o Asset owning entities, with                  has seen the establishment of
of Understanding (MoU) with               balance sheet separation to                  Taumata Arowai as the new
Central Government in 2020 and            support improved access to                   Water Services Regulator, to
is participating in the exploration       capital, alternative funding                 oversee and enforce a new
of future service delivery options.       instruments and improved                     drinking water regulatory
Regardless of the final service           balance sheet strength; and                  framework, with an additional
delivery model, the community will                                                     oversight role for wastewater
need 3 waters services whether          o Structured as statutory                      and stormwater networks.
this Council delivers them or             entities with appropriate                    The anticipated requirements
not. Therefore these activities           and relevant commercial                      of the regulator are assessed
are reflected in the financial            disciplines and competency-                  in the 3 waters section of this
strategy and the infrastructure           based boards;                                draft Ten Year Plan.
strategy and assumed as being
Council-delivered within the

                                                                           QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT   15
Big Issue 1:
     Delivering safe and
     reliable 3 water services
     for our communities

     Ensuring existing infrastructure networks and
     services are well-maintained, safe, and compliant is
     our core business.

16   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT
When you turn on the tap you
expect clean, drinkable water.           Water Supply                                   Wastewater
When you flush the toilet you need
to know that wastewater won’t
be contaminating our precious            Achieving compliance with the                  Ensuring the wastewater
waterways. When it rains you want        Ministry of Health Manatū Hauora               infrastructure is resilient, provides
to be confident that stormwater          Drinking Water Standards for New               sufficient capacity and failsafe
is well managed. We also need            Zealand 2005 (Revised 2018) and                measures is an essential part of
to provide sufficient capacity and       the anticipated standards under                ensuring we are managing any
resilience in the 3 waters network       Taumata Arowai is a significant                potential adverse effects on our
to meet the demand of a growing          driver in the capital investment               local environment. The capital
community, as well as meeting            programme. Under the proposed                  investment includes a renewals
national drinking water standards.       programme this would be achieved               programme to ensure that the
                                         in all publicly-provided schemes               existing infrastructure is fit-for-
During our pre-engagement, you           throughout the district by year                purpose. It also includes delivering
also told us that protecting our         five of the plan (2025-2026).                  more emergency wastewater
environment is a key priority for        Significant investments in water               storage from year four (2024-
the community, reflecting that Zero      supply include the Wānaka water                2025) onwards. Significant
Carbon Communities | Parakore            treatment and network upgrades                 projects prioritised for delivery
Hapori and Deafening Dawn                ($52.4M) and Two Mile water                    within the draft plan include the
Chorus | Waraki were among               treatment plant ($31.9M) both due              Cardrona village wastewater
the most important priorities to         for completion in 2024-2025; the               scheme ($11.0M) in 2021-2022;
achieve Vision Beyond 2050.              Tapuae Southern Corridor water                 the Hāwea wastewater treatment
Ensuring our 3 waters infrastructure     supply scheme ($20.4M) and                     solution ($26.1M) completing in
can protect and enhance our              water treatment plant ($7.3M), Te              2023-2024; the Frankton Track
natural environment is part of our       Pūtahi Ladies Mile ($9.3M) and                 wastewater ($26.2M) completing in
commitment to environmental              Hāwea ($8.3M) reservoirs all due               2024-2025; the Kingston Housing
wellbeing and the QLDC Climate           for completion in 2030-2031; the               Infrastructure Fund wastewater
Action Plan outcome that the ‘built      Arrowtown reservoir ($6.8M) due                scheme ($20.5M) due to complete
environment and infrastructure is        for completion in 2026-2027; and a             in 2026-2027; the Glenorchy
climate responsive’.                     new publicly-provided scheme for               wastewater scheme ($18.2M)
                                         the Cardrona village ($8.1M).                  completing in 2028-2029; and
To achieve all of this, a step-                                                         the Tapuae Southern Corridor
change in capital expenditure is         To deliver a capital investment                wastewater scheme ($46.2M) due
required to respond to ageing            programme that is achievable                   to come online in 2030-2031.
infrastructure, levels of service, and   within current debt to revenue
changing legislation; along with the     ratios, a number of projects                   Additional investment is also
need for additional investment to        have had to be deprioritised and               planned in Wānaka-located
meet improvements in freshwater          at present are not within this                 treatment plant Project Pure
outcomes, increase resilience            proposed Ten Year Plan. These                  ($10.7M) in 2022-2023 and
to climate change and natural            include the west Wānaka reservoir              Queenstown-located Project
hazards, and enhance community           ($22.8M), a water supply main on               Shotover ($40.4M) in 2023-2031.
wellbeing. Furthermore, as many          State Highway 6 ($4.4M) and other
communities throughout the district      strategic land acquisitions.                   In developing this draft programme
continue to grow, Council needs to                                                      some challenging decisions have
ensure that they are provided with       Some of the existing water                     had to be made and this has
adequate 3 waters services as well       supply schemes are not fully                   included reprioritising and delaying
as continuing to work across all of      in compliance with the current                 a number of projects. The projects
the districts’ smaller communities       drinking water standards, however              that aren’t planned within this
to improve water supply and              all of our water supply schemes                draft Ten Year Plan include the
wastewater infrastructure. Whilst        which require a Water Safety Plan              connection of Hāwea Flat ($5.1M)
these challenges all bring benefits      are authorised by the drinking                 and existing Kingston Township
to the homes and businesses              water assessor. The funding                    ($2.1M) to Council-operated
serviced, they also bring                allocated in the ten year plan will            wastewater infrastructure.
additional cost.                         bring all council supplies to a fully
                                         complying standard over the next
QLDC is proposing a total capital        five years.
investment in 3 waters projects of
$768M, with $298M being invested                                                                      DO YOU AGREE
within the first three years.                                                                                        OR
                                                                                                     DISAGREE WIT
                                                                ENT                                               H THE
                                                      E C OMM ON 3                                    PRIORITISATIO
                                                                                                                    N?
                                                    S
                                              PLEA OPTIONS REE
                                                  HE              AG
                                            ON T . DO YOU E RIGHT
                                                  R S           T H
                                            WATE ESE ARE WATER
                                              AT T H        F O R
                                           TH             S            E
                                                    RITIE        SS TH
                                              PRIO LY ACRO
                                                SUPP ISTRICT?                    QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT   17
                                                       D
Stormwater                                       Impact on Rates
     Stormwater management is not                     The large capital investment for 3 waters described above will have a
     currently subject to the same                    significant impact on rates. Whilst, the growth portion of this investment will
     focus and reform programme as                    be funded by development contributions10, the portion related to increasing
     water supply and wastewater,                     levels of service will come from rate funded debt. In this context, levels of
     but given its potential to effect                service relates to investing to ensure water treatment meets the New Zealand
     both our environment and the                     Drinking Water Standards. The table below shows the impact on the main
     lives of our local communities,                  urban centres of Queenstown and Wānaka.
     QLDC is proposing investment
     in stormwater treatment and
     conveyancing from 2024 onwards.                      RATES IMPACT OF MAJOR PROJECTS
     Some of the more significant
     proposals include a $10.8M                           WATER TREATMENT AND WASTEWATER UPGRADES
     investment between State Highway
     6 and Grant Road in Queenstown                       Project                Water Treatment                      Wastewater Upgrades
     to be completed in 2026-2027; and
     high-risk areas in Wānaka ($8.0M)                    Capital Cost           $85.1M                               $107.2M
     and Wakatipu ($5.2M) in 2027-2028.
     A key development is a proposed
                                                          Timing                 2021 to 2025                         2021 to 2025
     stormwater bypass to divert flows
     from development away from
     Bullock Creek, and the creation of a                 Ratepayers             All serviced urban areas             All serviced urban areas
     new receiving treatment wetlands at                  Affected
     the Wānaka Showgrounds ($1.6M)
     completing in year two (2022-2023).                  Main Impact            All serviced urban areas             All serviced urban areas

                                                          Total Rates            0.6% to 7.5%                         1.2% to 5.4%
                                                          Increase

                                                          Residential            Within Queenstown                    Within Queenstown
                                                          Impact ($)             scheme $17 to $82 per                scheme $100 per annum;
                                                                                 annum; Wānaka $197 to                Wānaka $76 per annum*
                                                                                 $328 per annum*

                                                          Debt impact            $40.5M                               $37.2M

                                                      *Note: The rating impacts for water treatment and wastewater upgrades are
                                                      calculated for year five (2025-2026) of the draft Ten Year Plan and reflect
                                                      both the increase in operating costs and debt servicing. The level of service
                                                      component of the capital cost for Queenstown does include a contribution
                                                      from commonage land sales, which reduces the impact significantly. There
                                                      is no similar contribution expected from Wānaka land sales.

                                                                     More information about development contributions and the Policy on Development
                                                                    10

18   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT              Contributions can be found in Volume Two of the Ten Year Plan supporting documents
Options
  1          OPTION 1:        The Council would complete the       The increases for properties in Wānaka are significant in
             Complete         programme within its preferred       some instances depending on the capital value. Residential
PREFERRED

             the Water        timeline and eliminate the risks     properties show increases of between 6.7% to 7.5%,
  OPTION

             Treatment        associated with the current water    commercial from 6.4% to 6.6%, and accommodation
             Programme        supplies. The Council would also     from 4.3% to 5.9%. The impact is reduced for properties
             as outlined      be compliant with its statutory      in Queenstown because of the smaller relative cost
             in the plan      obligations.                         per ratepayer. Residential shows increases between
             (by 2024)                                             0.6% and 1.3%, commercial from 0.6% to 1.1%, and
                                                                   accommodation from 0.7% to 0.8%.
                                                                   The Level of Service will be enhanced under this option
                                                                   in terms of providing water treatment that delivers water
                                                                   supply to homes and businesses which fully complies with
                                                                   the New Zealand Drinking Water Standards by 2024, and
                                                                   eliminates the risk of water-borne infection or disease.

  2          OPTION 2:        Option two is to seek an             The impact under this option would also see similar overall
             Spread           exemption from the regulator         increases to option one, but the timing of increases would
             the Water        to delay a portion of the water      be delayed over a longer period and for up to five years.
             Treatment        treatment programme but aim          For Wānaka, residential properties show increases of
             Programme        to complete within ten years.        between 6.7% to 7.5%, commercial from 6.4% to 6.6%,
             over the ten     This would mean delaying             and accommodation from 4.3% to 5.9%. The impact for
             years            the construction of the water        properties in Queenstown shows residential increases
                              treatment plant in either            between 0.6% and 1.3%, commercial from 0.6% to 1.1%,
                              Queenstown or Wānaka.                and accommodation from 0.7% to 0.8%.
                              The Council would therefore not      The Level of Service under this option would also provide a
                              comply with the drinking water       water supply that complies with the New Zealand Drinking
                              standards for an extended period.    Water Standards and eliminates the risk of water-borne
                              The benefit of this approach         infection and disease, however this would be over a ten-
                              is that costs and debt are not       year period rather than by 2024.
                              incurred as rapidly which means      This option relies on gaining an exemption from the
                              that some rates will not increase    regulator and does not promote deliberate non-compliance
                              so quickly.                          which may result in regulatory action.
                              This would only be a viable          It also prolongs the current risk of a contamination event
                              option should the final form         occurring and algae will continue to enter the reticulated
                              of the legislation, currently        network, with resulting blockages affecting customer
                              under consideration by Central       experience.
                              Government, afford the regulator
                              the authority to approve delayed
                              compliance.

            Please note, QLDC has considered wastewater and stormwater in presenting options to the community for
            consideration, and at this stage we do not believe there are any alternative options that we can present, so we have
            focused on water treatment and supply.

                                                                                        QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT   19
Big Issue 2:
     Meeting the transport
     needs of our communities
     and ensuring capacity
     and choice

     How we all move
     around the district,
     for pleasure and
     business, has been
     a challenge in
     recent years.

20   QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT
Although some of the pressure
on our roading network can be            Crown                                     Wakatipu
attributed to visitors, our own
growing population clearly signals       Infrastructure                            Transport
the need for more capacity and
alternative options from the             Partners’                                 Programme
                                         ‘Shovel Ready’                            Alliance
traditional single passenger in a car.
These are areas where QLDC has
been investing and working with the
Otago Regional Council, and needs        Projects
to continue to do so to ensure we                                                  In September 2020, we announced
can meet this increasing need.                                                     QLDC and Waka Kotahi NZTA
                                         In June, the Prime Minister made          were forming an alliance to deliver
We also need to ensure that the          the announcement that QLDC                a number of cornerstone projects,
options available suit people’s          had been awarded $85M in                  including the ‘shovel ready’
changing lifestyles. As people travel    funding towards stage one of              projects. In November 2020, we
from further afield for work or to       the Queenstown arterial project           then announced a consortium
use local services, they need to         and the Queenstown CBD street             of Beca, Downer, Fulton Hogan,
know they won’t be sitting in traffic    upgrades. This was the first shovel       and WSP will come together with
congestion or have options such          ready funding announcement and            QLDC and Waka Kotahi NZTA
as park and ride facilities to remove    will give a big boost to the local        to deliver the objectives of the
the need to drive into Queenstown        economy by supporting more                Wakatipu Transport Programme
CBD altogether. Others living in         than 300 jobs in the district. These      Alliance which include revitalising
town centres in higher density           projects form a key part of the           the Queenstown CBD and
accommodation or those simply            district’s recovery programme from        unlocking the benefits of other key
choosing a greener travel option         the effects of COVID-19.                  developments such as Lakeview
need access to public transport                                                    and Project Manawa (Civic Heart).
and safe, usable alternatives such       Delivering on these projects              Delivering these projects requires
as well-lit and well-maintained          is a commitment the Council               additional funding alongside
walking and cycle routes.                made in seeking the funding,              the contribution from the Crown
                                         and completion of these appear            Infrastructure Partners, and you
You also told us during the pre-         in year two of the draft capital          can see more information about
engagement process that transport        programme (2022-2023). This               this in the section
was one of the key issues in             commitment provides certainty to
achieving the vision principle of Zero   the community and local business          Other projects the Alliance aims
Carbon Communities | Parakore            and confirmation that QLDC is             to deliver include the $90M New
Hapori and a more connected              firmly committed to providing a           Zealand Upgrade Programme
community support the principles         boost to our economy and creating         Package for Queenstown which
of Thriving People | Whakapuāwai         jobs. Both the shovel-ready               provides bus lanes and bus priority
Hapori and Opportunities for All | He    projects and Alliance programme           on SH6A, improvements to the
Ōhaka Taurikura. In particular, you      (see next column) are integral parts      SH6a/SH6 intersection, a new
wanted to see more commitment            of Council’s wider approach to            roundabout at Howards Drive and
to support walking, e-scooters,          transport infrastructure to ease          an underpass at Te Pūtahi Ladies
cycling etc, greater access to public    congestion in and around the              Mile to provide better walking
transport, and a move to prioritising    Queenstown CBD and encourage              and cycling connections. These
electric vehicles. Investment in         a mode shift to public and active         improvements are part of the $6.8
transport can also benefit our           transport options as outlined in the      billion New Zealand Upgrade
communities’ social, economic and        options detailed on page 22.              Programme transport investment
environmental wellbeing.                                                           to improve travel choices, get our
                                                                                   cities and regions moving and
                                                                                   boost productivity in the country’s
                                                                                   growth areas.

                                                                            QLDC TEN YEAR PLAN 2021–2031 CONSULTATION DOCUMENT   21
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