Annual Plan Update Have Your Say
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Have Your Say Annual Plan Update
Message from the Mayor
I’d like to talk to you The draft budgets approved by Council for consultation follow
very closely the path and direction set out in the 2018-28
about Council’s Long Term Plan (LTP).
2019-20 draft So “What does the Draft 2019-20 Annual Plan and Budget
mean to you and future generations of Marlburians?”
Annual Plan. Please read this, ask questions and have your say.
Council recently considered the
draft budgets prepared by staff
which included not only the budget
for 2019-20, but also Council’s forecast financial position for the next
decade. Council always looks ten years ahead because so many John Leggett
of its activities are long term and decisions made today can have
implications well into the future.
Mayor of Marlborough
What does it mean for Levels of Service?
As a Council we are looking to maintain and where possible improve Maintaining the health of our environment is essential to protecting
existing levels of service. So, for example, despite increased costs, the quality of life we enjoy in Marlborough as well as the viability of
our beautiful parks, gardens and green spaces will be maintained to some of our key industries.
at least current standards. As signalled in the LTP, levels of service Please see the table below for details of where Council is improving
will be raised in some other areas, particularly in our Environmental service levels.
Science and Monitoring and Biosecurity Activities.
COMMUNITY FACILITIES
PARKS, RESERVES, SPORTS ENVIRONMENTAL BIOSECURITY CONSENTS AND
CAPITAL EXPENDITURE
GROUNDS, POOLS, SCIENCE & MONITORING (PEST MANAGEMENT) COMPLIANCE
CEMETERIES ETC.
Capital expenditure is With the high levels Council is proposing to This is the first full year With the need to
made to either, improve of growth being increase the levels of of implementation of implement the
levels of service, provide experienced in the service in this Activity the Biosecurity Strategy Marlborough Environment
for growth (which is in District, the funding as we must monitor and and the Regional Pest Plan, to adequately respond
itself an improvement in available from Reserve analyse the trends in the Management Plan. Both to new Government
levels of service) or and Community environment if we are these documents were initiatives, and cope with
renew existing assets. Facility Development to have a sustainable separately consulted growth and complexity
Contributions has future. Council also on last year. Council Council has increased its
It has been assessed increased and is available has to respond to an is proposing to increase focus on these Activities.
that of the $66.6M to improve facilities in the increasing number of the budget for this To meet the increased
Capital Expenditure District. There is also the Government National Activity by $192,000 demands placed on
budget, $29.7M relates to funding from the Small Policy Statements and to $1.7M. these Activities, Council
improving level of service Townships Programme. National Environmental is proposing to increase
and $15.1M relates to These additional Standards. its budget by $489,000
growth. funding sources mean a to $9.5M.
Capital Expenditure in significant increase in the To effectively discharge
turn leads to additional projects to be delivered its responsibilities
maintenance costs, and in turn maintained. Council has increased
depreciation and Council is proposing to the budget for this
interest costs. increase its operating Activity by $348,000
budget by $1.05M to $4.4M.
to $12.2M
What does this mean for your rates?
The forecast rates increase is 3.96%, which places Council in the The forecast movement in the index in the year ahead is 2.32%.
lower third of proposed rates increases across NZ. The 2018-28 LTP The other major impact is from capital expenditure.
forecast a 2019-20 rates increase of 5.72%. At the time the LTP was Last year Council spent a record $63M improving the District’s
being finalised we promised that we would look for opportunities assets, especially Roads, Water Supply and Sewerage. This level
to reduce rates, which we have done. of capital expenditure is forecast to continue for the next three years,
We would like our increase to be lower but, like everyone, councils which will have significant flow-on effects on interest, depreciation
are subject to inflation. In our case this is measured by the BERL- and operating costs. The combined impact of inflation and capital
compiled Local Government Cost Index. expenditure accounts for most of the proposed rates increase.
How much our $1.11 $1.02 69cents
activities cost Roads and Footpaths Community Facilities Flood Protection
per household
per day on $1.40 $1.36 25cents
average Sewerage Water Supply Library ServicesWhat does this mean for our Capital Expenditure?
The key point is that all projects identified in the LTP will continue. In the case of the Library/Art Gallery it’s important to consider the
However, we have looked at the timing of some of them. With many positive impact Picton’s new library has had on the main street of
Council capital projects costing more than $1M and having a long Picton. The new Blenheim Library/Art Gallery will have an even
life, it’s vital they’re planned, designed and built professionally. As greater impact at 3,600m2 compared to Picton’s 761m2. As we only
a result we’re proposing to extend the timeframes for some of them have one opportunity to get this project right it’s important to take
including two major projects; the $12-15M Flaxbourne Irrigation a little extra time. This will allow land, design and funding elements
Scheme and the $20M Blenheim Library/Art Gallery. to be finalised and project risks to be minimised. While construction
In the case of Flaxbourne it’s essential to confirm the availability of would be moved out a year, the investigation and design already
water in the Waima (Ure) River and also identify any ecological effects underway will continue.
in those times when the river isn’t flowing. Given the long dry period Please see the table below for details of Council’s major
we had at the start of the year, it’s hard to believe, that the challenge construction projects. There is a lot going on!
has been to get sufficient low flow periods for the ecological testing
required for resource consent applications.
CAPITAL PROJECTS EXPENDITURE 2019-20 CAPITAL ($M) TOTAL PROJECT ($M)
Lansdowne Park Sports Hub 3.4 5.0
Library/Art Gallery 0.8 20.0
Road renewals - Including sealed road resurfacing 6.7 On-going
Minor Improvements - Seal Widening, Intersection Improvements,
1.6 On-going
Bridge Renewals, Jetty Replacement
Walking & Cycling - Grove Rd to Westwood, Waikawa Rd, Scott St 1.3 On-going
Blenheim Sewerage - McLauchlan St, Budge St and Bomford St 9.8 29.8
Picton Sewerage - Waikawa Trunk Sewer Upgrade 5.2 19.1
Blenheim Stormwater - Redwood St, Town Branch Drain, Casey’s Creek 4.3 8.1
Renwick Water 4.4 15.7
Havelock Water 1.5 6.9
Multi-beam seabed mapping - Pelorus Sound/Te Hoiere 1.0 3.0
Flaxbourne Irrigation Scheme 7.0 15.0
What does this mean for the What does this mean for
amount of Council Debt? Reserve Balances?
In the 2018-28 LTP, Council set itself a cap on Net Debt of While I acknowledge that Council has used Reserves to remove the
$140M. Just as it did for the LTP, Council expects to remain impact on rates for one-off projects, the forecast balance of Reserves
just within that cap for the next ten years. Net Debt is forecast in 10 years time is better than forecast in the LTP. Following recent
to peak at $138.8M in 2024 before decreasing to $112M in 2029. events, we are conscious of the need to hold a prudent level of
This is a very low level of indebtedness given the $1.6Billion Reserves, a position clearly supported by the community according
value of Council’s total assets. to your feedback on the 2018-28 LTP.
Council is one of only seven local authorities in New Zealand to
be awarded an “AA positive” long-term credit rating from S&P
Global Ltd (formerly Standard and Poor’s). That should provide 2019-20 Operating Expenditure - $M
you, our community, with confidence. It also means that Council
enjoys very favourable borrowing terms. Roads and Footpaths 22.0
Sewerage 12.2
Community Facilities 12.2
Water Supply 10.6
Summary Solid Waste Management 9.2
Regional Development 6.3
I believe that Council has taken a financially prudent
approach to this year’s budget. It has Flood Protection and Control Works 5.2
Environmental Science and Monitoring 4.4
• increased levels of service where needed;
Democratic Process 4.2
• continued to invest not only in core infrastructure
but the community facilities that make Marlborough
Building Control 3.5
a great place to live and visit; Resource Consents 2.8
• reduced the forecast rates increase for 2019-20 by Library Services 2.8
1.76% to 3.96% Stormwater Drainage 2.6
• kept net debt within prudent levels; and maintained Community Housing 2.2
Reserves at a prudent level. Environmental Policy 1.7
Now we need you to tell us whether the Draft 2019-20 Harbours 1.6
Annual Plan and Budget reflects your wishes and Other (includes: Environmental Protection, 7.7
Emergency Management, Animal Control,
priorities. I look forward to receiving your comments. Culture and Heritage, and Environmental Health)Development Contributions for North West Blenheim Extension Zone
Plan Change Areas 66, 69
A similar charging mechanism to that used to deliver infrastructure For those who wish to develop land within this area it will mean
like roads, water supply, sewerage and stormwater in the existing paying a separate Zone Development Contribution of $22,917
North West Blenheim Zone and Plan Change Areas 64, 65 and 67 per lot (plus GST), as well as the existing Development
is proposed for the new housing zone on the north-west perimeter Contribution. The new contribution would be levied on all
of urban Blenheim running between Old and Middle Renwick Roads properties in the Zone to ensure that costs are fairly and equitably
represented by Plan Change Areas 66 and 69. spread amongst all the landowners who are developing their land
for residential use. In some instances, this will result in developers
Council‘s intention to establish a zone levy for those two plan
receiving credits should they be required to provide larger capacity
change areas was signalled in the 2016-17 Consultation Document.
infrastructure to service the whole Zone not just their individual
At present, single owners of large subdivisions cover the costs subdivision.
and get the benefit of the economies of scale possible with a large
In total these Zone Contributions will simply recover the costs
development. Because there are so many landowners involved
developers would normally incur as part of a subdivision.This is
in the North West Blenheim Extension Zone the development is
an amendment to the existing Development Contributions Policy.
unlikely to progress as a single block.
What’s the alternative?
Therefore Council proposes that it coordinates the design and
provision of infrastructure for the essential services to the new Apply the existing Development Contributions Policy leaving each
subdivisions, to efficiently deliver a consistent standard throughout landowner responsible for their own development, a less efficient
this newly zoned housing area. option that would mean higher costs, likely higher section prices
and potentially, delays to the development of land-locked property.
ROSE
EAST
Have your say
Although we’re not putting forward any significant new Or write to us at:
proposals this year, we’d like to hear from you about what Annual Plan Feedback,
we’re doing. Marlborough District Council,
Also, what would you like Council to consider as it finalises 15 Seymour St, PO Box 443, Blenheim,
its Annual Plan later this year? or email annualplan@marlborough.govt.nz
2019-20 Annual Plan Adoption Process
Submissions need to be with us by 6 May. Councillors will If you would like to speak to Councillors at the hearing,
formally consider all submissions and feedback received. let us know this along with your submission, by 6 May.
28 February 4 April 5 April 6 May
You can fill out an online submission form at: Council considers 2019-20 Annual Annual Plan Annual Plan
www.marlborough.govt.nz under Have Your Say. LinkAnnual
2019-20 to supporting documentation
Plan Consultation http://bit.ly/MDCDAgenda
Submissions open Submissions close
Plan Budget Document adopted
for consultation
2019-20 Annual Plan Adoption Process
28 February 4 April 5 April 6 May 4-6 June 10 June 27 June 1 July
Council considers 2019-20 Annual Annual Plan Annual Plan Annual Plan Council considers Annual Plan New rates effective
2019-20 Annual Plan Consultation Submissions open Submissions close Submissions Hearings Annual Plan adopted and rates from 1 July 2019
Plan Budget Document adopted Submissions set for 2019- 20
for consultation rating year
4-6 June 10 June 27 June 1 JulyYou can also read
