CONSULTATION DOCUMENT - Waitaki District Council
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1 CONSULTATION DOCUMENT
2
GREETINGS
WAITAKI!
2020 is behind us but Over the past 6 years, I have
been proud of our efforts
That means it is even more
important to hear from you
the repercussions of the to drive efficiency in our on your thoughts about the
past year keep making organisation. We have managed proposals in the LTP.
themselves felt as we to do more in a number of our The plan shows our ongoing,
work on the Council’s Long activities, while keeping rates significant commitment to
increases to a modest level.
Term Plan (LTP). looking after infrastructure, and
Last year, we responded to the although the future control of
Waitaki is not alone in that, water and wastewater supplies
challenges of COVID, and we
with a lot of pressure on council is yet to be decided, we are
had a zero average rate increase
budgets and services throughout committed to making sure that
for Waitaki. We knew that was
New Zealand. Waitaki residents have the best
putting off some inevitable
increases, but it was the right water infrastructure that we
thing to do at the time. can afford.
This year we are feeling that There are a range of other
inflationary pressure, plus projects and initiatives, plus
the increasing pressure put increased costs for what we are
on many of the Council’s already doing. We are more than
activities by more legislation just an infrastructure provider as
and requirements from central we work towards making Waitaki
government. the best place to be, and we
want the LTP to reflect that with
So, whilst we know we have projects that really help make
worked hard to minimise rate our wonderful Waitaki such a
increases over the next 10 years, great place to live.
they are still relatively high for a
number of those years. Do we have the right things
in the plan to achieve that?
Is it too little? Or too much?
Please take the time to give
us your comments - they are
appreciated.
Help us, as we look
ahead and plan for
Waitaki’s future.
Gary Kircher
Mayor for Waitaki3
CONTENTS
Introduction 4 Waste Management 11 Rates increases,
decreases or status quo? 19
Government-led Three Indoor Sports and Events
Waters Reform 6 Centre 12 Rates changes for your
property 20
Council’s Strategic Priorities 7 Rates Affordability 14
Auditor's Report 21
COVID-19 Recovery 9 Our Infrastructure 17
Feedback Form 23
Climate Change 10 Our reserves and debt levels 18
ASSUMPTIONS & SUPPORTING DOCUMENTS
As you review the proposals
Supporting
As with any planning, there
and options presented, we ask are assumptions made about
documents can be
that you also take into account how the future will unfold. viewed online on the
relevant background information Supporting documents will 'Consultation' page of
used in developing this plan. help you understand the plan Council’s website
This document has been including assumptions and
prepared using the best available financial budgets. The supporting
www.waitaki.govt.nz
information including strategies, documents include our Financial
policies and future forecasts. Strategy and our 30 year
Infrastructure Strategy.
CONCURRENT CONSULTATIONS
At the same time as this Long Term Plan consultation, we are also
consulting on some proposed minor changes to our:
Revenue and Policy on Development We would love your feedback on
Financing Policy Contributions and these policies. More information is
available on our website and from
This outlines how we determine Financial Contributions Council offices. You can make a
the sources of funding for our This determines how we charge submission online or via email to
capital and operating expenses. development contributions so consult@waitaki.govt.nz or send
that a fair share of infrastructure your feedback to the address on
costs (such as new or upgraded the submission form.
roads, water and wastewater
The consultation period for these
pipes) are paid for by those
policies is the same as the Long
undertaking development.
Term Plan – opens 21 April and
closes 12 noon, 21 May!4
INTRODUCTION
Welcome to our Consultation Document for our 2021-2031 LTP - the plan that sets out
what Waitaki District Council is planning to do over the next 10 years.
This Consultation Document provides the It is a balancing act between service realities,
community with a summary of the overall direction community needs and aspirations, and the
Council intends to take over the next 10 years, in line community’s willingness to pay.
with Council’s legal obligations, infrastructure needs
The plan is underpinned by supporting
and community priorities. The document includes an
documentation which provides more detail in regard
overview of our key issues, what we’re planning, how
to the infrastructure, financial budgets and activities
we propose to fund the activities and services, and
of Council.
the impact this may have on ratepayers.
“ What do you care
about most? Community
“ Waitaki is already facilities? Keeping rates
amazing, but what do affordable? Tell us what
we want it to be like you and your whanau
“ Give us some
in ten years’ time? How need”
feedback on what
do we try to prepare for - Cr Hana Halalele
you think Waitaki’s
everything the future Oamaru Ward
future might look
like. Your ideas throws at us?” (Educator, community
advocate, getting things
matter!” - Cr Melanie Tavendale done specialist)
Oamaru Ward “ The LTP is all
- Cr Bill Kingan (Deputy Mayor, Community
Corriedale Ward about forward planning,
(Farmer, lawn
stalwart, nautical but nice)
and future proofing “ When it comes
bowler, bagpiper) the wonderful Waitaki to the future you
for the enjoyment of can let it happen,
“ What do you want
“ Whinging generations to come! ” make it happen
your rates spent on?
afterwards is too or wonder what
Read the plan and - Cr Kelli Williams,
late, make sure your let council know Oamaru Ward happened ”
voice is part of the what you think” (Real estate agent, - Cr Ross McRobie
conversation ” - Cr Colin Wollstein
helicopter pilot, animal Ahuriri Ward
collector) (Real estate agent,
- Cr Guy Percival Oamaru Ward
Corriedale Ward keen cyclist, model
(Accountant, trail
(Farmer, water skier, train buff)
rider, adventurer)
poultry wrangler)5
WE WANT TO
Key things you
need to know
HEAR FROM YOU!
We are seeking your feedback on the
To do what we are planning,
we have proposed a rates
following four key initiatives:
rise of 8.9% in the first year
see page
of the plan, and an average Council’s Strategic Direction
of 5.3% over the following What do you think we should be doing to achieve
nine years. our community outcomes and strategic priorities? 7
see page
COVID-19 Recovery
What else can we do to support our community? 9
see page
Climate Change
What should we be focusing on? 10
“ Covid has made
life tough for small see page
businesses in our Waste management
What waste minimisation and education
district. What should activities would you like to see Council doing?
11
council be doing to
help them recover
so that Waitaki's We also want your feedback on the following
economy can thrive? ” “ Message for two important issues. We have considered
- Cr Jeremy Holding the pessimists: the options for each and have highlighted our
You’re wrong about
Oamaru Ward
the future! It’ll
preferred option. The preferred options have
(Small business
owner, surfing coach, give us more boom been included in our financial forecasts:
outdoorsman) and zoom than
gloom and doom. ” see page
- Cr Jim Hopkins Indoor Sports and Events Centre
Oamaru Ward Which option do you prefer? 12
(Radio
commentator,
writer, raconteur)
Rates affordability see page
Should we look at smoothing the rates
increases? 16
...and anything else
you’d like to tell us
Submissions close 12 noon,
Friday 21 May 2021.
You can find information on how
to make a submission at the end
of this document.6
GOVERNMENT-LED The MoU with central
Government states the
THREE WATERS REFORM Waitaki District Council is:
1. Willing to explore different
ways of delivering water
(WATER, WASTEWATER & STORMWATER) services - drinking
water, wastewater, and
stormwater
Effective water infrastructure is a necessity for a healthy
2. Willing to share information
community – it provides clean water to your taps, removes on our network and services
wastewater from homes and businesses, and protects our with neighbouring councils
assets from floods by managing storm water. and central Government
and that we are open to
It is the often-unseen It is important to note that signing discussions about how
infrastructure that plays a vital the stage one MoU does not we might be able to work
role in the overall health of our commit Waitaki District Council together in the future.
community and wellbeing of our to anything beyond stage one
environment. or to change the way it delivers The second stage of the
Three Waters services, and there Government water reforms
In July 2020, the Government proposes councils consider
is an ‘opt out’ clause available.
announced a funding package of joining together to set up a
Council expects to engage with
$761 million to provide COVID-19 small number of large entities
the community on the opt out
stimulus to councils nationwide to deliver water services on
decision in late 2021, and any
to maintain and improve Three a regional or multi-regional
decision to participate is likely to
Waters infrastructure on the scale. The entities would be
be given effect to at some point in
proviso they support further publicly owned, with councils
the 2023/4 financial year.
consideration of local government as shareholders but the
water services delivery What does this mean for Council would no longer be
arrangements.
the Waitaki District Council directly responsible for these
services and they would be
The Government funding package Long Term Plan? separately billed to you.
is part of a series of actions in
response to many councils across The Government’s water reforms
New Zealand struggling to meet do add an element of uncertainty
the water regulatory framework about how water services in
that was put in place after the Waitaki will be delivered in the You can find more
Government inquiry into the long-term. We will know more after information on the reform
2016 campylobacter outbreak in the Government’s announcements programme and the proposed
Havelock North that was caused in April/May of this year. timeline here: www.dia.govt.nz/
by contamination of the town’s Three-Waters-Reform-Programme
At this stage, due to the
drinking water supply. uncertainties as to the outcomes
Waitaki District Council, along of the Three Waters review,
with all councils nationwide, Council must assume that we will
signed a Memorandum of continue to deliver Three Waters
Understanding (MoU) with the services over the life of this LTP
Government in August 2020, and we have based our planning
committing it to the first stage on this assumption.
of the water reform programme
to access a $7.46m share of the “This will be the biggest restructure
stimulus package. This funding of the way councils deliver water
has allowed the Council to further services since the 1980s and will require
improve fresh and wastewater significant input from Council over the next
infrastructure across the District two years. This includes providing data and
with a lower impact on ratepayers information to Government to support the
than previously possible.
reform process and working with other
councils across Otago and Canterbury”
- Marty Pacey,
Water Services Manager
(Engineer, keen hiker, sharpshooter)7
COUNCIL’S STRATEGIC
PRIORITIES
Our Planning Cycle So, what is our planning cycle?
As part of Council’s planning cycle Council developed We start with a Strategic Framework that sets
a new Strategic Framework document in 2020. the Council’s vision, community outcomes and
The framework includes the four well-beings our strategic priorities and we review this before
(economic,social, cultural and environmental) that we start our planning for the LTP. Focusing
have been reinstated back into the Local Government on our strategic priorities will enable us to
Act 2002 since the last Long Term Plan (LTP). achieve what we want for our community – our
community outcomes.
Council must now consider its broader role in
fostering liveable communities, as well as providing The Long Term Plan sets Council’s strategic
core infrastructure and services, and ensuring that direction and work programme for a 10 year
principles relating to decisions take into account the period although we do review this every three
aspect of well-being. What this means is that we years. It outlines the services we will provide,
need to consider the well-being of our community in the projects we plan to undertake, the cost of
our planning and operations. In order to promote doing the work, and how it will be paid for. It also
social, economic, environmental and cultural well- sets the rates for year one of the LTP.
being, Council is focused on achieving our community
The Annual Plan is Council’s work programme
outcomes.
over a one year period (July to June) and details
Community outcomes how it will be paid for. We produce an annual
plan in years two and three of the LTP cycle.
Community outcomes describe how Waitaki District
Council aims to meet the current and future The Annual Plan also sets the rates for years two
needs of our communities with good-quality local and three of the LTP.
infrastructure, providing local public services and The Annual Report is produced every year and
performance of regulatory functions. this is where we report back to the community
Community outcomes set the direction for our LTP on what we said we would do in the LTP.
and all activities included in the LTP that the Council
undertakes contribute towards achieving these COUNCIL’S PLANNING CYCLE
outcomes.
we are
“ A community that focuses here
on the wellbeing of its people
is one that thrives and builds Strategic Long
resilience. ” Framework Term
- Helen Algar, Plan
Safer Waitaki
(Humanitarian, Waitaki wellbeing
wonder-woman)
Annual
Report Annual
Plan
Annual
Plan8
strategic
framework
THE
W a i t BEST
a k i THEPLACE TO BE!
BEST PLACE TO BE!
Waitaki - Whenua taurikura
EMPOWERING OUR PEOPLE AND PLACE TO THRIVE
Whakapuāwai takata, Whakapuāwai whenua
Community Outcomes
economic social and environment
cultural
PROSPEROTU
S STRONG S QUALITY VALUED NT
IE SERVICES
DISTRIC COMMUNIT ENVIRONME
Attractive to new Enable safe and healthy Robust core Protecting our
opportunities communities infrastructure and diverse landscapes
services and water bodies
Support local Connected, inclusive
businesses communities Community facilities Meeting
and services we are environmental and
Foster a diverse and Promoting a greater proud of climate change
resilient economy voice for Waitaki challenges
Celebration of our
community identity
Strategic Priorities
Providing Determining Working with Creating a
the best way Striving
high- the community District Plan towards Driving best
quality core to deliver to respond that is fit value for
3-waters for better Council
infrastructure to COVID-19 for Waitaki’s performance rates
and services the community challenges future
Ensuring we get core business done while delivering on our strategic priorities and achieving our community outcomes
Engagement with Strategies, plans Long Term Plan Our service Monitoring and
the community and partnerships and Annual Plan delivery approach reporting on our
and partners progress
QUESTION 1
What do you think What do you think
Council could do Council could do
to help achieve our to help achieve our
community outcomes? strategic priorities?9
COVID-19 What are we doing to support our community?
Council has committed to facilitating the Waitaki District’s COVID-19
RECOVERY
recovery in a fair, sustainable and integrated way. The following
initiatives have already been introduced by Council in response to the
COVID-19 outbreak:
• An average zero percent rates • A new Community Recovery
This LTP is being prepared change for 2020/21. We will Coordinator position at
continue to work hard to keep Council to assist Waitaki in
in a world still reeling from rates rises as low as possible recovering from COVID-19
the impacts of COVID-19 • We have been prudent with (fixed term 2020-2021)
– including global border our money, building up • Free car parking in Ōamaru
closures, economic reserves which we can now (March – September 2020)
access to help keep rates as
recession, a challenging low as possible
• A “buy local” campaign
• A Tourism Waitaki campaign
job environment, and • A Council support and “We Are Missing You” to attract
overall uncertainty. stimulus funding package (up tourism
to $2 million) including: • As an organisation we have
We appreciate this is a difficult
à A Mayoral Relief Fund - become more digital –
time for many people who
individual welfare requests wherever possible our staff
live here. Fortunately, so far it
from individuals/ families are able to work from home.
appears the Waitaki District is
finding itself not as negatively à An Economic Resilience This means that in the event
affected by the economic effects Fund - financial support of another lockdown we can
of COVID-19 as early estimates for new projects which can continue providing services to
suggested and is faring a lot demonstrate an economic our community
better than many other districts. benefit • We will continue to be
This is partly due to our strong à A Community Resilience cautious about how much
primary industry sector as well as Fund - financial support debt we take on
not being as reliant on tourism for new projects which can • We have continued and will
as other areas in New Zealand. demonstrate a broader keep up with our Capital works
However, we are under no illusion community benefit programme taking advantage
that as a community the effects • A reduction in rentals of the Government’s shovel
of the pandemic could persist for tenants of Council ready and stimulus funding.
through 2021 and beyond. managed property who are This benefits our community
demonstrating financial by supporting the local
hardship from COVID-19 economy
“ The work we do to protect our little blue
penguins is dependent on funds generated by
tourism. Without our visitors the future for the
colony will be challenging ”
- Dr Philippa Agnew,
Ōamaru Blue Penguin Colony
(Scientist, environmentalist, nature lover)
QUESTION 2
Is there anything else
that you think Council
should do to help the
community recover
from COVID-19?10
CLIMATE CHANGE When planning our capital
projects we consider the potential
impacts of climate change and
the mitigation of those impacts.
The issue of climate change is a global one in nature but We are also reviewing rules in our
one that will be addressed through small changes to our District Plan and are now required
to consider the effects of climate
individual daily routines through the decisions we make. change in our resource consenting
The Council wants to play our part. process.
The purpose of our Coastal
Roads Strategy is to make sure
Climate change could mean any or all that we maintain connectivity
of our coastal roads that are
of the following for Waitaki: subject to coastal erosion. The
• Warmer temperatures (more • An increase in storm work that we have undertaken
hot days, fewer frosts) intensity to date on dealing with coastal
• More wet conditions (winter • Local wind extremes erosion includes placement of
and spring) • More thunderstorms rock protection in erosion prone
• Significant decreases in snow • Sea-level rise areas, realigning a section of road
• More windy days • Accelerated coastal erosion (including land purchase) and
increasing resilience by upgrading
a bridge to enable an alternative
route in case of road closure.
Responding to climate change We introduced our Rural
In our Strategic Framework The Infrastructure Strategy Resilience Project in response
we have identified meeting outlines the broader objectives of to the frequency and severity of
environmental and climate Council in response to (amongst storm events and that work has
change challenges as a key other things) climate change and included improving drainage,
community outcome. The natural hazards with regard to installing more wash-over pads,
impacts of climate change are how assets are planned for and strengthening water course
being considered in our work on managed. We take account of embankments, culvert clean-outs
strategies and plans, including the impact of climate change and re-instating roadside swales.
this LTP, our Infrastructure in a number of ways, but This work has now become part of
Strategy, our Financial Strategy, predominantly through design our normal business.
our Coastal Roads Strategy and and construction standards, Council recognises the importance
our District Plan. identification of hazards, and of reducing our greenhouse
mitigation (such as insurance) gas emissions. In 2019 we
over the life of the LTP and commissioned a greenhouse gas
Infrastructure Strategy. inventory report to provide some
base data to help understand our
organisation’s emissions. This will
be used to track and compare
emissions over time.
" We need to adapt and plan for
the effects of climate change
in Waitaki, to safeguard our
whenua for future generations,
before it is too late. "
- Tilly King
QUESTION 3
Head Girl, Waitaki Girls High School, What would you like
(Enviro club leader, climate to see Council focus
activist, dog walker extraordinaire)
on in response to
. climate change?11
WASTE MANAGEMENT
In 2008 Council made the
decision to encourage the Waste Management Survey
private market to provide Last year we carried out a survey As part of the survey, we asked
waste services. with residents to find out how residents whether they would
many residents are using private be willing to pay for a Council
The most significant impact of
contractors for kerbside waste run kerbside waste collection
this approach was the cessation
(rubbish, recycling and green waste) service at a cost of $350 each
of Council-controlled kerbside
collection, how much they are year and the results were fairly
waste collection. Cessation of
spending, and whether the services evenly split between yes and no.
Council kerbside collection arose
are meeting their needs.
from careful consideration of our When considering proposed
community – including the fact that The waste management survey projects for this LTP,
only 13 percent of residents were found that the majority of residents Councillors considered the
using the Council-run service. (81%) are using private contractors possibility of providing a multi
(there are three companies bin kerbside recycling service
We also hoped that the
providing kerbside services) for but based on the results of the
introduction of a ‘user pays’
kerbside waste collection and that waste management survey
system would encourage waste
levels of satisfaction are relatively and the additional cost to
minimisation, in that those who are
high (80% of residents are satisfied ratepayers ($350 each year),
producing less waste pay less than
with the service provided). Councillors decided not to
those who produce more waste.
proceed with this option.
We still continue to PREPAREDNESS TO The waste management
be involved in waste PAY FOR KERBSIDE survey found that nearly three
COLLECTION
management in the quarters (74%) of respondents
would like to see Council do
District by: Proportion of
respondents
more waste minimisation and
• Supporting the Waitaki
prepared to pay for NO YES education activities. In 2020
a Council kerbside
Resource Recovery Trust in waste collection 49% 51% we created a new Solid Waste
service in their rates
providing a range of options at a cost of Manager position whose
for waste minimisation and approx. $350/year role it is to promote a more
diversion sustainable environment and
• Providing four rural recovery raise awareness about how we
HOUSEHOLD NO 50% YES 50%
parks in Hampden, Kurow, can manage solid waste more
Otematata and Ōmārama effectively in Waitaki.
• Providing three rural recycling BUSINESS NO 40% YES 60%
If you would like to
centres in Enfield, Papakaio
find out more about
and Herbert FARM NO 66% YES 34% the survey results
• Providing public litter bins please see Council’s website.
around the district on
footpaths, public reserves and
at campgrounds
• Continuing to monitor and
manage littering and illegal
" The future of recycling in Waitaki
dumping throughout the is looking very positive as more people
District look to do the right thing; people
• Offering a Cloth Nappy Scheme want cleaner air, and no rubbish going QUESTION 4
• Funding and facilitating the to landfall and we’re continuing to
work on recycling markets overseas What waste
Enviroschools programme
• Facilitating Waste Minimisation to help achieve that " minimisation and
programmes, seminars and - Trish Hurley education activities
workshops. Waitaki Resource Recovery Park would you like to see
(Operations Manager, problem solver, Council doing?
educator)12
INDOOR SPORTS
& EVENTS CENTRE
Over the last several years the community and Council
have debated the merits of an indoor sports and events
centre being located in Ōamaru.
A feasibility study was completed in 2017 that outlined options for such
a facility and subsequently Council decided the idea had merit but at the
time decided to cap Council costs at $7million (50% of the $14 million
total projected cost). Since that time, an increasing number of people
in the community have become more vocal about having a sports and
events centre – a facility that not only provides improved opportunities for
sport and physical activity for all age groups, but one that also could hold
cultural events and events that helped grow our economy.
Following a series of meetings and workshops including community
representatives and elected members, the scope of the project has
increased as the functions and capacity of the facility have firmed up. The
result of the workshops show the desired specifications for the proposed “ This would be a great
facility include the following: opportunity for the kids in
Waitaki who would want to
• 6 courts for multiple uses, and • Fully air conditioned get more involved in sports
including regional and national • 150 car parks - especially if they can play
fixtures • Catering kitchen in any weather! ”
• Conference facilities to • Café and bar facilities
complement existing - Toeafiafi Halalele
• Gymnasium (Oamaru Intermediate School
operations
• Sufficient storage space student, netball, basketball,
• Toilets and changing areas touch)
• Provision for spectators
• Creche
The projected construction cost for a facility that meets these
specifications is in the vicinity of $24 million (uninflated cost) with
an annual operating cost of $1 million (uninflated and including
repayment of the loan used to fund a contribution by Council).
There have been very positive discussions with individuals
and families in the district, with indications that a significant
percentage of the development cost may come from the private
sector. It is expected that philanthropic trusts and other funding
sources (such as private individuals and families in the district)
will provide up to $14 million. Accordingly, Council
believes it should cap the ratepayer’s contribution at
$10 million (uninflated) with the remaining funding
coming from sources other than Council.We are asking for your feedback on 13
the project; to budget for and develop
Before we commit to building a facility we need a 6 court indoor sports and events
to be very clear about the detail – what can be centre with construction beginning in
delivered and where, for the projected cost 2022 and completed in 2024.
of $24m. Whether the project goes ahead is With each of the funding options
dependent on the certainty of external funding listed below there will be no change
to the scope of the project only the
Council has contracted a company to undertake a business case level of funding through rates.
that will outline the scale of the project, the potential site, The rates stated below include
the cost of construction, the annual operating costs and the construction, operating costs
possible funding sources for the project. The business case will and debt servicing of internal
be used to gain community support and funding. borrowings. In options One, Two
Until the business case is finalised (due for completion by the and Three the amount of Council's
end of June 2021) we are asking about the level of funding you internal debt is shown.
think Council should commit to. Community support is critical
for this project to succeed. A decision to build a facility will not
be made until we are certain about what could be delivered
OPTIONS
within the funding constraints. If the business case signals a Option One
higher cost than $24 million then the external funding target (Council’s preference)
will need to be increased. If the external funding target is Council’s contribution capped at a
not achieved then either the scope of the project will need to maximum $10 million
change or the project will be abandoned in which case we will Internal debt: $1,814,325 in year 2023
reconsult with you. and $9,795,806 in year 2024.
If the project does not go ahead, the revenue and related costs The impact on your rates*:
currently included in the LTP will have to be removed. This will An increase of $10.06 in 2024 and
cause Council to have an unbalanced budget in years 2022 and increasing to $67.30 each year from 2025
2023 of the LTP.
Option Two
Council considers it is financially prudent to have an underlying Council’s contribution capped at
unbalanced budget for the first two years of the LTP. Council $12 million.
will use excess capacity in its reserves to meet short term Internal debt: $3,814,325 in year 2023
requirements to ensure there is no impact on its ability to and $11,738,806 in year 2024.
maintain service levels and to limit any adverse financial impact
The impact on your rates*:
on the community.
An increase of $21.15 in 2024 and
“ That would be increasing to $78.68 each year from 2025
“ It would be great for the Oamaru awesome if we built a
community to get together and play big sports centre our Option Three
multiple sports and to showcase our community can all use ” Council’s contribution capped at
talents here in our small town ” $14 million.
- Sione Uliti Po'uha Internal debt: $5,814,325 in year 2023
- Chris-Jack Kauapa (Waitaki Boys High School
(Waitaki Boys High student) and $13,681,806 in year 2024.
School student, The impact on your rates*:
basketballer, An increase of $31.45 in 2024 and
rugby player) increasing to $89.29 each year from 2025
Option Four
To decline the proposal
(no impact on your rates).
* This includes inflation and GST
QUESTION 5
Which Option
do you think we
should choose?14
RATES AFFORDABILITY
This is a snapshot of what we do:
Waitaki District Council provides,
maintains, protects and manages:
114 HECTARES 1,200 HECTARES
FORESTRY
13
of PARKS & RESERVES
of CEMETERIES
1 CENTRAL
LIBRARY 45 22
PUBLIC TOILET PLAYGROUNDS
& 5 LIBRARIES
District Branch
facilities
with
over50,000 6 3 BIKE
PARKS "household
Just like anyone’s
budget, some
things are ‘nice to haves’
CAMPGROUNDS 4 PARKS
educational resources
SKATE some things are ‘must
CULTURAL haves’… we need to get
the balance of spending
FACILITIES right in a way that will
Libraries, Opera House
Museum & Archive, Gallery 70 % of our population
with access to a
PUBLIC RETICULATED
take in the big picture for
Waitaki "
1 AQUATIC
CENTRE
Providing learn to swim &
WASTE WATER SYSTEM - Bill Campbell
East Otago Review
water safety programmes
8 WASTE WATER
SYSTEMS at
Duntroon, Kurow, Lake Ōhau,
(Journalist, newspaper editor,
community organiser)
95% of our population
with access to a
Moeraki, Ōamaru, Ōmārama,
Otematata & Palmerston.
PUBLIC WATER SUPPLY
15 WATER SUPPLIES
individual
1,800KM
of LOCAL ROADS
in Waitaki
(10 restricted water
supplies and 5 on-demand
water supplies)
166 KM
FOOTPATHS
of
17110BRIDGESCULVERTS
&
major
2,014 STREET
LIGHTS15
AND all this comes at a cost of course.
This is a snapshot of the approximate cost in rates:
For every $10 of rates:
$1.39 RECREATION
SERVICES
1c CIVIL Aquatic Centre,
cemeteries, parks
DEFENCE 18c $2.25
& gardens, toilets,
camping grounds, A2O
REGULATORY &
BUILDING CONTROL ROADS,
Food safety, building
inspections, environmental
protection, animal control,
BRIDGES &
FOOTPATHS
18c
parking enforcement. COMMUNITY
DEVELOPMENT
44c
LIBRARIES
23c $2.06
DISTRICT WATER SUPPLY
PLANNING
35c PROPERTY & 31c
BUILDINGS
SOLID WASTE
82c 15c
STORMWATER
3165
c c LEADERSHIP,
GOVERNANCE DISPOSAL
SOLID WASTE
WASTEWATER & CONSULTATION
TREATMENT
GALLERY,
67c MUSEUM & Examples only – does not
ARCHIVE AND
31c
apply to every ratepayer
OPERA HOUSE
ECONOMIC Note these costs are as
DEVELOPMENT at 1 July 2020 and will
change when rates are
set for 2021/2216
RATES AFFORDABILITY
We always work hard to keep rates rises as low as
possible however after several years of low rates
increases we’re facing significant pressure on
service delivery.
What this means is that the rates rise this year is likely to be
higher than you’ve been used to.
There are a number of reasons why rates will be higher this year
than in previous years. In 2020 when we were setting rates we
worked towards an average zero percent change. We did this as a We are currently
way of supporting our community to recover from the effects of reviewing our levels
COVID-19. However, this has put increased pressure on rates for
this year and beyond. We are also facing increases in demands
of expenditure to
from Central Government, for example around the delivery of see if there are any
Three Waters services. savings that could
When we started the process of planning for rates in 2021/22 we be made to further
were looking at an average rates rise of approximately 22%. reduce the rates rise.
We knew that this level of rates rise would place pressure on our We will come back to
community so we have put a lot of thought into ways to keep the
rates rise down.
you before the end of
June with the results
What could we do to keep rates down? of this review.
Rates smoothing
Rates smoothing means that the increase in rates would be kept
relatively similar between years, rather than a big difference in
the rise between years. Several options have been considered
for smoothing the level of increase in rates over the first few
OPTIONS
years of the LTP. The effects of each of these options are Which option do you think
outlined in the following table for your information, and we we should choose?
would value your feedback.
Option One
The average rate rises under each of the three scenarios are (Council’s preference)
shown in the table below, including the impact on the years No rates smoothing
immediately following the end of the rate smoothing action.
Option Two
PROPOSED AVERAGE RATE INCREASE Smooth rates over the first
two years of the LTP.
Financial Year 2021/22 2022/23 2023/24 2024/25 2025/26 Option Three
LTP Year Year 1 Year 2* Year 3* Year 4* Year 5* Smooth rates over the first
Option 1
three years of the LTP
8.95% 7.25% 7.4% 6.5% 7.4%
No smoothing
Option 2
8.4% 8.4% 6.9% 6.5% 7.4%
Rate smoothing over two years
Option 3
8.1% 8.1% 8.1% 5.8% 7.4%
Rate smoothing over three years
QUESTION 6
* Note under all of these options only rates for year 1 are set. Which Option do
Any subsequent year is subject to change as part of the Annual
Plan process – these figures are indicative only. Also note, that you think we should
another LTP will be prepared before 2024/25. choose?17
OUR INFRASTRUCTURE
A lot of Council’s work relates to
maintaining and renewing our PEOPLE &
CULTURE
infrastructure to make sure we have 11.1%
the infrastructure our District needs. HERITAGE, ASSETS -
Our infrastructure network enables us ENVIRONMENT ROADING
to provide drinking water, wastewater & REGULATORY 22.5%
disposal, our transport network and 5.9%
sport and recreation opportunities.
Much of this work is not visible to
residents but it is essential for us to COUNCIL &
GOVERNANCE
continue to thrive as a district.
11.4% % of
This graph depicts the percentage of RATES
rates required for each of Council’s
groups of activities. The majority of ASSETS -
our spending (71.6%) is related to our PROPERTY
$831 million asset base. 3.5%
Some of our infrastructure projects ASSETS -
which are planned to start within ASSETS - WATER
the next ten years are listed in the PARKS & 31.7%
table below.
RECREATION
13.9%
SOME PROPOSED INFRASTRUCTURE PROJECTS IN THE LTP
The Council's budgeted capital
What? How much? When does expenditure is higher than it has
it start? been in previous LTPs.
Water supply upgrades to meet New
Zealand Drinking Water Standards:
We are also facing uncertain market
conditions and this could impact
Waihemo water main upgrade $2.25 million 2021 our ability to secure contractors to
Otematata water main upgrade $1 million 2021 complete the work.
Ōamaru water main upgrade $3 million 2021 Over the next 10 years Council has
Stoneburn $2 million 2022 set an asset renewals budget at
Tokarahi $3.2 million 2023 a level that significantly exceeds
Awamoko $2.25 million 2024 expected asset replacements based
on age and performance only. This
Windsor $2.2 million 2024
reflects Council's commitment
Kauru Hill $2.2 million 2024 to catch up with previous
Bushy Creek $2.2 million 2024 underspending on maintenance and/
Lake Ōhau $1.16 million 2024 or renewals of key infrastructure
assets, in particular the Three
Palmerston wastewater main upgrade $926,000 2021
Waters.
Ōmārama adventure playground $400,000 2025
For full details about our asset
District wide unsealed road metalling $800,000 each year 2021
condition, our asset renewal
District wide sealed road resurfacing $2 million each year 2021 programme and our plan to deliver
Ōamaru Airport lighting upgrade $612,000 2022 the capital programme please
Hampden beach landfill removal $1.8 million 2022 refer to our Infrastructure Strategy
which can be viewed online on the
Sumpter Wharf Ōamaru maintenance $830,000 2023
'Consultation' page of Council's
Otematata gardens and seating area $104,000 2023 website www.waitaki.govt.nz.18
OUR RESERVES
AND DEBT LEVELS
Council expects to be in a very sound financial position, despite
the requirement to utilise external debt to fund the replacement
of core infrastructure and other capital projects.
We use debt and reserves to fairly share the cost of weather and other natural adverse events. However,
long life assets across the people that benefit from we also want to be comfortable that we are collecting
them, both now and into the future. Over the term an appropriate amount from the community. For
of this LTP, we will use reserves extensively, and will example, after reviewing available fund balances, we
continue to use both internal and external debt as have reviewed the amount we set aside each year to
needed. fund depreciation and resolved to reduce the rate
impact of that over the initial years of the LTP.
Funded reserves have previously been used to invest
in community initiatives which will generate a good Council uses internal debt, which is where we
return until it is required for the purpose it was temporarily move money from one part of Council
collected for. Investments in North Otago Irrigation to another. We monitor the size of this debt as it
Co Ltd, Observatory Village Charitable Trust and has to be repaid and interest must be charged. The
the Kurow-Duntroon Irrigation Co will be repaid measure we use for this monitoring is total debt
progressively over the ten years of this LTP and does not exceed total revenue. This will be achieved
provide further funding for capital works. over the 10 years with total debt expected to vary
between 55% and 99% of total revenue, with the peak
We are generally satisfied with our projected financial
occurring in 2027.
position. We believe it will give us the capacity to
respond to both planned events such as replacing
pipes and bridges and unplanned impacts like19
RATES INCREASES, DECREASES
OR STATUS QUO?
Rates are, and will remain, the most important way in which
we fund the activities we undertake.
We have set out in the Financial Strategy our overall We use two other measures to monitor the change
goals on rates increases, how we want to achieve and impact of rates. The first is that rates should not
those goals and the success we have had in achieving exceed 70% of total operating expenditure. We expect
them in the past. One way we choose to consider this to vary between 61% and 69% of operating
this is the overall rate increase compared to local expenditure over the next 10 years, with the peak
government inflation. occurring in 2031.
It is clear from the chart below that we have not The second measure focuses on affordability, where
been able to achieve this target in the first 5 years we compare rates on a typical Ōamaru home against
of the LTP. We have been very satisfied with the projected levels of Married National Superannuation.
success in keeping rates at affordable levels over the The limit on that measure is 10% and we expect to sit
past several years. Unfortunately, as the local and between 7.5% and 9.5% for the life of the LTP.
national economies recover from the pandemic, and
as our focus is now firmly on aging infrastructure and
development within the district, this must change.
RATES INCREASES AFFORDABILITY BENCHMARK
Projected annual increase in Rates Income compared with the
projected annual change in the Local Government Cost Index (LGCI) plus 2%
10.0%
9.0%
8.0%
Annual increase in rates %
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2022 LTP 2023 LTP 2024 LTP 2025 LTP 2026 LTP 2027 LTP 2028 LTP 2029 LTP 2030 LTP 2031 LTP
Year
Projected LGCI + 2% Proposed rates annual Proposed rates annual
increase at or within limit increase exceeds limit20
RATES
CHANGES
FOR YOUR
PROPERTY
Year Rates Rates
Land Value $ Capital Value $ charged projected % Change
2021 2022
RESIDENTIAL
Oamaru 75,000 250,000 2,209 2424 9.73%
Why is the rate increase Oamaru 110,000 320,000 2,401 2,614 8.87%
for your property never Oamaru 270,000 570,000 3,147 3,353 6.55%
the same as the figure
we talk about? Oamaru 195,000 760,000 3,362 3,562 5.95%
For simplicity we talk about Kakanui 100,000 390,000 1,990 2,223 11.71%
rates increases in terms of Weston 90,000 35,5000 2,372 2,661 12.18%
the total amount of rates
required. Very few people (and Goodwood 32,000 140,000 1,580 1,704 7.85%
properties) see this exact same Hampden 60,000 255,000 1,476 1,589 7.66%
increase in their annual rates
bill. This is especially true in the Herbert 35,000 265,000 1,623 1,761 8.50%
year when we’re developing
Kurow 61,000 230,000 1,772 2,031 14.62%
our LTP because the rating
revaluation takes place at the Lake Ohau 205,000 415,000 1,815 1,906 5.01%
same time. As rateable values of
Maheno 30,000 215,000 1,000 1,046 4.60%
properties change by different
amounts, what will be charged Moeraki 84,000 240,000 2,315 3,207 38.53%
in rates also varies. When
this variation is added to the Omarama 122,000 310,000 2,039 2,183 7.06%
changes in all the separate rates Otematata 90,000 320,000 1,879 2,053 9.26%
we use, it means the change you
will see is almost as unique as Palmerston 40,000 255,000 2,229 2,290 2.74%
the property you own.
COMMERCIAL
The following tables help
illustrate this, providing Oamaru 185,000 440,000 4,390 3,446 -21.50%
sample properties covering Oamaru 1,210,000 5,150,000 33,649 31,230 -7.19%
residential, agricultural and
commercial properties. From Omarama 410,000 1,450,000 8,574 9,950 16.05%
these examples you can see Otematata 460,000 740,000 4,174 4,424 5.99%
the variability in the level of
rates charged. While these Palmerston 170,000 640,000 7,631 7,538 -1.22%
examples may not precisely
reflect your specific property, AGRICULTURAL
they may assist you in putting
Ahuriri 6,650,000 7,780,000 15,744 17,255 9.60%
the proposed impact on rates
into perspective. Papakaio 13,400,000 16,200,000 33,129 36,145 9.10%
Waitaki 6,200,000 7,700,000 15,169 16,585 9.33%
* Capital Value (CV) is the Bridge
value of a property for rating Awamoko 1,980,000 2,380,000 6,259 6,856 9.54%
purposes, not the current
market value of your home Waihemo 1,230,000 1,540,000 5,579 6,023 7.96%21
AUDITOR'S REPORT
To the reader:
Independent auditor’s report Assurance Engagements Other Than Responsibilities of the Council
on Waitaki District Council’s Audits or Reviews of Historical Financial and auditor
consultation document for its To the reader: The Council is responsible for:
Information. In meeting the requirements
of this standard, we took into account
proposed 2021-31 long-term plan. particular elements of the Auditor- • meeting all legal requirements
I am the Auditor-General’s appointed Independent auditor’s report
General’s Auditing Standards and the on Waitaki relating to its
District procedures, decisions,
Council’s
auditor for Waitaki District Council (the International Standard on Assurance consultation, disclosures, and other
Council). The Local Government Act 2002
consultation document for its proposed 2021-31actions long-termwith
associated plan
preparing and
Engagements 3400 The Examination of
(the Act) requires the Council to prepare a Prospective Financial Information that publishing the consultation document
I am the Auditor-General’s
consultation document when developing were consistentappointed auditor
with those for Waitaki District
requirements. andCouncil (the Council).
long-term The Local
plan, whether in
its long-term plan. Section 93C ofGovernment Act printed or electronic form;
the Act We2002 (the Act)
assessed requires the
the evidence theCouncil
Councilhas
to prepare a consultation document when
sets out the content requirements of the its to
developing long-term plan.information
support the Section 93C the Act sets out• the
of disclosures
and having systems
content and processes
requirements of thein
consultation document and requires an in the consultation document. place to provide the supporting
consultation document
audit report on the consultation document. and requires an auditToreport
selecton the consultation document. I have done the
information and analysis the Council
appropriate procedures, we assessed the
work
I have done the work for this report for this report using the staff and resources of Audit New needs
using Zealand. Weable
to be completed our areport on
to prepare
risk of material misstatement and the
the staff and resources of Audit New
19 April 2021. Council’s systems and processes applying consultation document and long-term
Zealand. We completed our report on to the preparation of the consultation plan that meet the purposes set out
19 April 2021. document. in the Act; and
Qualified opinion Qualified opinion • ensuring that any forecast financial
We did not evaluate the security and
In our opinion, except for the effect of the controls over the publication of the information being presented has
matter described in the basis for In our opinion,consultation
qualified except for the effect of the matter described in the
document. been basis for qualified
prepared opinion with
in accordance section
opinion section of our report: of our report: Emphasis of matters generally accepted accounting
practice in New Zealand.
• the consultation document provides an Without further modifying our opinion, we
•
effective basis for public participation the consultation
draw attention document provides
to the following an effective basis are
disclosures.
We for responsible
public participationfor reporting in the on the
in the Council’s decisions about the consultation document, as required by
Council’s decisions over
Uncertainty
aboutthree
the proposed
waters
content of its 2021-31
section 93C long-term
of the Act. plan,
We do because
not expressit:
proposed content of its 2021-31 long-
term plan, because it: reforms an opinion on the merits of any policy
fairly represents the matters proposed forcontent inclusion in the
of the long-termdocument.
consultation plan; and
à fairly represents the matters proposed Page 6 outlines the Government’s
for inclusion in the long-term plan; and intention to make three waters reform Independence and quality control
à identifies and explains the main issues identifies
decisions duringand explains
2021. the main
The effect thatissues and We choices facing thewith
have complied Council and district,
the Auditor-
and choices facing the Council and the and the consequences of those choices; and
reforms may have on three waters General’s:
district, and the consequences of those services provided is currently uncertain • independence and other ethical
choices; and • because no decisions
the information have been
and assumptions made. The
underlying the information
requirements, in the consultation
which incorporate document
• the information and assumptions consultation document was prepared as if the independence and ethical
are reasonable.
these services will continue to be provided
underlying the information in the requirements of Professional and
consultation document are reasonable. by the Council, but future decisions may Ethical Standard 1 issued by the New
result in significant changes, which would
Basis for qualified opinion – Basis for qualified opinion – Inadequate explanation of the matters
Zealand Auditing and of public
Assurance
affect the information on which the Standards Board; and on the consultation document,
Inadequate explanation of the interest relating to the proposed content
consultation document has been based. of the infrastructure
We are responsible
strategy
for reporting
matters of public interest relating • Act. We do not express an opinion on the merits of any policy co
quality control requirements, which
Uncertainty over external funding incorporate the quality control
to the proposed content of the Section 93C(2)(c)(ii) of theprojects
of capital Act requires the Council to describe in its consultation
Independence document
and quality control matters
requirements of Professional and
infrastructure strategy of public interest relating to the proposed content of the infrastructure strategy. The disclosures on
Pages 12 to 13 outline that the Council Ethical
We Standard
have complied 3 (Amended)
with the issued
Auditor-General’s:
Section 93C(2)(c)(ii) of the Act requires
page 17 abouthas theassumed
Council’s ainfrastructure strategy do
significant percentage of not adequately
by the New describeZealandthe content
Auditingof the
and
the Council to describe in its consultation • independence and other ethical requirements, which i
the funding
strategy and asset to build
management an indoor
plans. In particular, the CouncilAssurance
sports and does ethical Standards
not explain Board.
requirements of Professionalto
its approach
document matters of public interest relating events centre will be obtained externally.
and Ethical Standa
In addition
maintaining and renewing its three waters assets. Consequently, the infrastructure to
Auditing this auditstrategy
and Assurance and our Board;
Standards report and
to the proposed content of the infrastructure The external funding contributions are on the Council’s annual report, we
strategy. The disclosures on page 17 disclosures
about in the consultation
currently uncertaindocument
becausedo not provide an effective
funding have• carried basis forlimited
qualityout public
control participation
assurance
requirements, in the qu
which incorporate
the Council’s infrastructure strategy doCouncil’s
the not decisions
agreements aboutarethe
notproposed content
in place. There is of its 2021-31 long-term
Professional plan.
and Ethical Standard 3 (Amended) issued
engagements related to the Council’s
adequately describe the content of the a risk that the level of funding through Assurance Standards Board.
debenture trust deed, which is
strategy and asset management plans.
In particular, the Council does notWe carried outrates
explain
couldin
our work beaccordance
impacted, butwiththe
theCouncil
Internationalcompatible
Standard
In addition toonwith those
thisAssurance
audit and ourindependence
Engagements
report on the Council’s annual r
indicates that a decision to build the requirements.
assurance engagementsOther than
related this
to the Council’s debenture trust
(New Zealand)facility
its approach to maintaining and renewing 3000 (Revised) Assurance Engagements
will not be made until there is Other Than Audits or Reviews of Historical
engagement
those independencewe have no relationship
requirements. Other than this engagement
its three waters assets. Consequently, the Information.
Financial certaintyInofmeeting
what can theberequirements
delivered withinof this standard,
interests we took
in the into
Council. account particular
with or interests in the Council.
infrastructure strategy disclosures in the funding constraints. Auditing Standards and the International Standard on Assurance
elements of the Auditor-General’s
consultation document do not provide an
Engagements
effective basis for public participation in Uncertainty
3400 over three
The Examination waters Financial Information that were consistent with
of Prospective
infrastructure
those requirements.
the Council’s decisions about the proposed assets forecast
content of its 2021-31 long-term plan. Page 17 outlines that the Council’s
We carried out our work in accordance with forecasting for three waters infrastructure
asset renewals is based on age and Rudie Tomlinson
the International Standard on Assurance Rudie Tomlinson
asset failure rates. Planning on this basis Audit New Zealand
Engagements (New Zealand) 3000 (Revised) Audit New Zealand
increases the risk of disruption in services. OnOnbehalf of the Auditor-General,
behalf of the Auditor-General, Dunedin, New Zealand
Dunedin, New Zealand22
WE WANT TO
HEAR FROM YOU!
The Local Government Act requires Council to consult with
its communities on proposed actions if they are considered Want more
to be significant in terms of Council’s Significance and information?
Engagement Policy. Go online! - to the
Consultation Page on
We value your input, and The LTP Budget is based on
our website to find other
encourage you to take the Council’s preferred options as
supporting information:
time to get involved by reading set out in the feedback form.
www.waitaki.govt.nz
through the list of significant When reading these options,
projects and changes we are please keep in mind that for Or give us a call on
proposing for the 2021-31 rates funded projects, an 03 433 0300.
period, and tell us what you additional $325,000 increases
Keep an eye on our
think. You will also find a list of the overall rates impact by
Facebook page as well:
options that we are proposing approximately 1%. The table
@WaitakiDistrictCouncil
to resolve any issues, the impact on page 16 provides more
of the proposals on rates, debt information on the likely rates
levels and on levels of service. impact on individual ratepayers.
More information and a digital copy of this consultation
document and feedback form is available on the ‘Consultation’
page of Council’s website www.waitaki.govt.nz
Printed copies of this document will be available at Council offices and Waitaki
District Libraries during the consultation period.
Do it online Talk to us SAVE TIME
fill in the online form on our If you want to present your Do it online!
website submission/feedback to Council
please let us know by ticking
Write it the appropriate box on the
and post it back to us: feedback form.
Waitaki District Council, Hearings are scheduled for 24
Private Bag 50058, and 25 May. Once the timetable
Ōamaru 9444 has been finalised we’ll contact you
de
QR co o go
to let you know when you’ll
Email it be speaking. t h is
scan ur phone t
send your feedback to o ne
consult@waitaki.govt.nz Drop in sessions with y t to our onli
We'll be holding informal sessions straigh dback form
Drop it around the district where there
fee
to Council offices in will be opportunities to speak to
Ōamaru - 20 Thames St, or Councillors. Check out our website
Palmerston - 54 Tiverton St. for the dates, times and locations.
Key Dates
Consultation Opens Consultation Closes Hearings LTP Adopted
Wednesday 21 April 2021 12pm, Friday 21 May 2021 24 & 25 May 2021 29 June 2021You can also read
