OURPLACE OURPLAN THE NEXT 10 YEARS TŌTĀTOU WĀHI : TĀ TĀTAU MAHERE - TE TEKAU TAU E HAERE AKE NEI - It's Our Place

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OURPLACE OURPLAN THE NEXT 10 YEARS TŌTĀTOU WĀHI : TĀ TĀTAU MAHERE - TE TEKAU TAU E HAERE AKE NEI - It's Our Place
OUR PLACE OUR PLAN
                                 TŌTĀTOU WĀHI : TĀ TĀTAU MAHERE

                                 THE NEXT      10    YEARS
                                     TE TEKAU TAU E HAERE AKE NEI

                                               LONG-TERM PLAN 2021-31
                                                CONSULTATION DOCUMENT

Submissions close
5pm Monday 19 April 2021
OURPLACE OURPLAN THE NEXT 10 YEARS TŌTĀTOU WĀHI : TĀ TĀTAU MAHERE - TE TEKAU TAU E HAERE AKE NEI - It's Our Place
ASHBURTON : THE DISTRICT                        COMMUNITY MEETINGS:

OF CHOICE FOR LIFESTYLE
                                                                                       HINDS
                                                ASHBURTON                              Monday 29 March 7-9pm
                                                                                       Hinds Community Centre

AND OPPORTUNITY
                                                Monday 22 March 7-9pm
                                                Council Chambers
                                                                                       MT SOMERS
                                                MAYFIELD                               Tuesday 30 March 7-9pm

HAKATERE: TE ROHE KA WHIRIA
                                                Tuesday 23 March 7-9pm                 Mt Somers Springburn School,
                                                Mayfield Hall
                                                                                       Multipurpose Room

MŌ TE ĀHUA NOHO, ME TE HAPORI
                                                RAKAIA                                  HAKATERE
                                                Wednesday 24 March 7-9pm                Wednesday 31 March 7-9pm
                                                Rakaia Rugby Clubrooms                  Hakatere Hall

                                                METHVEN                                 WEBINAR/VIRTUAL MEETING
                                                Thursday 25 March 7-9pm                 Tuesday 6 April 7-9pm
                                                Mt Hutt Memorial Hall, Function Room    Facebook live / YouTube
It’s your chance to help us shape our future.
Māu anō e tārai i te āpōpō mō tātou.
Let us know at / Whakapā mai ki a mātou:        HOW DO I MAKE A SUBMISSION?
www.ItsOurPlace.nz
                                                          Freepost to:                 In person by dropping it off at:
                                                          Freepost 230444              Ashburton District Council reception
                                                          PO Box 94                    5 Baring Square West
                                                          Ashburton 7740

                                                         Online at:                    Email to:
                                                         ItsOurPlace.nz                submissions@adc.govt.nz
OURPLACE OURPLAN THE NEXT 10 YEARS TŌTĀTOU WĀHI : TĀ TĀTAU MAHERE - TE TEKAU TAU E HAERE AKE NEI - It's Our Place
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 3

CONTENTS RĀRAKI UPOKO
Our place: our plan / Tō tātou wāhi: tā tātou mahere                                                  4

How does it all work? / Ka pēhea rā kā mahi?                                                          6

What we’ve been up to / Ā mātou mahi                                                                10

Our challenges / Te wero kai te aroaro                                                              12

What decisions do we need to make? /
He aha kā whakatauka kai mua i te aroaro?                                                           16
     Drinking water meters                                                                           17
     Elderly Persons Housing                                                                         20

What other projects are we planning in the next 10 years? /
He aha anō kā mahere kai tua, i kā tau tekau e heke mai nei?                                        24
     Infrastructure Services / He ratoka whakariteka                                                 26
     Public Services / He ratoka tūmatanui                                                           28
     Regulatory Services / He ratoka waeture                                                         30
     The future of our infrastructure / Te anamata o tō tātou hakaka                                 32

How do we pay for all of this?                                                                      34
     What will it cost? / He aha te utu?                                                             35
     Where will the money come from? / Ka ahu mai te pūtea i hea?                                    35
     What does it mean for me and the rates I pay? / He aha te pāka ki a au me aku uturēti?          39
     Proposed rate changes / He marohi panoni uturēti                                                40

Independent auditor’s report / Tā te kaitātari kaute kī                                             42

Feedback form / Puka tāpaetaka kōrero                                                               44
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OUR PLACE – OUR PLAN TŌ TĀTOU WĀHI: TĀ TĀTOU MAHERE
Our place is a great place! We live in a fantastic part of the world, with stunning scenery, great people, strong communities, and a prosperous
economy. We want this to continue and keep thriving.

Every three years we develop a 10 year plan which sets out our direction. It lets you know what we         THE MAJOR DECISIONS WE NEED YOUR HELP WITH:
will be doing, how much it costs, and how we intend to pay for it.

Like all businesses, we have challenges as we head into the future. For us, this is the need for
additional investment to meet higher drinking water standards and improvements in freshwater
quality outcomes, increase resilience to climate change and natural hazards, and enhance
community well-being. We have developed our 10 Year Plan with these in mind.

WHAT HAS CHANGED SINCE OUR LAST 10 YEAR PLAN?

In our 2018 plan, we included projects to develop the EA Networks Centre, such as a climbing wall,
extending the swim school pool, splash deck and stadium, and developing sports fields. We have
left these projects out of this plan while we undertake further research into how best to use the
current space and where expansion will be most utilised. This will help ensure we are getting the best              Should we install                      Should we aim to get our
outcome for your money. Our 10 Year Plan will be reviewed again in 2024, and these projects will be                water meters on all                    Elderly Persons Housing
included at that point, if appropriate.
                                                                                                                properties on our drinking                  self-funding, through
OUR PLAN FOR THE NEXT 10 YEARS IS TO:                                                                               water schemes?                       incremental rent increases?
 •   focus on completing the projects we’ve started – deliver on your priorities
                                                                                                                       See page 17 for details.               See page 20 for details.
 •   improve our infrastructure – particularly our drinking water supplies and roading network,
     including the second bridge
 •   increase the resiliency of our district – make sure we’re ready for when the next challenge arrives
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2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 5

So the ball’s in your court. We only review this plan once every three
years, so don’t miss out. Read on. Give us your thoughts. And help us
build the future of our district together.

                                                                            CR LIZ MCMILLAN   CR CAROLYN CAMERON                  CR STUART WILSON
                                                                             DEPUTY MAYOR

                                                                          CR JOHN FALLOON      CR LYNETTE LOVETT                   CR LEEN BRAAM

             NEIL BROWN                           HAMISH RIACH
               MAYOR                              CHIEF EXECUTIVE

                                                                         CR DIANE RAWLINSON    CR RODGER LETHAM                   CR ANGUS MCKAY
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HOW DOES IT ALL WORK? KA PĒHEA RĀ KĀ MAHI?
Our plan (officially the Long-Term Plan 2021-31) outlines our direction for the future, including the services and projects planned and the
issues we are looking to address.

                                                                         There are a number of other documents that are related to this plan. For example, our Infrastructure
                                                                         Strategy sets out the big decisions we need to make over the next 30 years for our water and roading
                                                                         assets. Our Financial Strategy sets out how we will pay for the projects and services we provide. And
                                                                         these all sit underneath our vision, outcomes, and principles which show what we’re aiming for and
                                                                         how we’ll work towards getting there – these are shown on the next page.

                                                                         To help shape our plan, we asked you for some early feedback back in September 2020. We combined
                                                                         this with other feedback we’ve received, such as that collected through our Annual Residents’ Survey,
                                                                         to help shape the proposals we’re putting in front of you now. See ItsOurPlace.nz for a summary of
                                                                         the feedback received.

                                                                         KEY DATES:
                                                                                                                                 SEPTEMBER 2020
                                                                                                                                 Early engagement survey

                                                                                           19 MARCH – 19 APRIL 2021
                                                                                              Consult on draft plan

                                                                                                                                 11-12TH MAY 2021
                                                                                                                                 Council hearings and deliberations

                                                                                                        30 JUNE 2021
                                                                                      Council confirms 10 Year Plan

                                                                                                                                 1 JULY 2021
                                                                                                                                 10 Year Plan is in place
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2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 7

    You have until
5pm, 19 April 2021
to get your feedback in!

                                                              OUR STRATEGIC VISION

                           COMMUNITY OUTCOMES                                                                              GUIDING PRINCIPLES

      Ashburton District Plan                   Financial Strategy                               Infrastructure Strategy                        Other Council strategies

                                                                 OUR 10-YEAR PLAN 2021-31
                                                               (including budgets & work programmes)

                                                                     Activity Management Plans

                 Council policies                                         Council bylaws                                                    Council plans

                                                             Performance monitoring and reporting

     Annual Residents’ Survey             Customer request monitoring                        Activity-specific monitoring                         Our Place campaign
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                                                                                                                                                                                    n regional/nat
OUR STRATEGIC DIRECTION                                                                                                                                           ent the d
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Our strategic direction includes a vision, community outcomes
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Our vision is the overall, future focused goal we are working towards.

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Kā hua ki te hapori, our community outcomes, also look to the future and take a ‘whole-of-

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community’ view. They integrate social, cultural, environmental and economic well-being.

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We aim to contribute to these outcomes in every activity that we deliver, however, we cannot

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achieve these alone. We will continue working with numerous organisations (e.g. health, business,                                                                          ASHBURTON DISTRICT –

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environmental, community, government departments) who also contribute towards achieving
                                                                                                                                                                           THE DISTRICT OF CHOICE

                                                                                                                                                                                                                                                                      th clear and rationa
these outcomes through the activities and services they provide.
                                                                                                                                                                             FOR LIFESTYLE AND

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Ō tātou mātāpono, our guiding principles, set out how we will function and deliver activities and                                                                               OPPORTUNITY
services to our community.                                                                                                                                             Hakatere: Te rohe ka whiria

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                                                                                                                                                                                 hapori

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       See page 2 for how to get in touch

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2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 9

                                                                                                                                                               A prosperous economy based on
 Residents are included and have a voice
                                                   A district of great spaces and places                A balanced & sustainable environment                     innovation and opportunity
 Ka whai wāhi, ka whakaputa kōrero kā
                                                  He tiriwā pai, he wāhi pai i tēnei takiwā                         He taiao toitū                         He ōhaka whai rawa i ruka i te aroka hou
                 kainoho
                                                                                                                                                                      me te whai āheika

Our community feels a sense of belonging,       Our community feels a sense of pride from              We are proud of our natural and built           We are a welcoming, enabling and business
inclusion, and social connectedness. We         living in our district. We have safe, vibrant         environments. We sustainably manage our          friendly district that encourages local
celebrate our identity, heritage and cultural   and thriving communities. We recognise and            environment and natural resources to ensure      economic development. We provide
diversity. We are an organisation that          cater for the range of generations within our         they can be enjoyed now and by future            opportunities for people of all ages and at
collaborates with partners and engages in       community. Our district is well connected,            generations and recognise the vital role these   all phases of life to enjoy a quality of living
two-way dialogue with our communities in        and our social and recreational facilities            play in sustaining our district. We actively     within our District that is economically
order for them to have the opportunity to       enable people to enjoy positive healthy               support improving the health of our District’s   sustainable and affordable. We recognise
influence local outcomes and decisions, and     lifestyles. Our facilities and infrastructure are     rivers, lakes and waterways. Our unique          and manage the effects of population
to gain a sense of ownership of our plans,      planned and developed to meet current and             landscapes and indigenous biodiversity are       growth and actively promote the District as
strategies and decisions.                       future needs.                                         valued. Waste reduction, recycling, energy       a destination of choice. We value the role our
                                                                                                      conservation and efficiency, and water           District’s natural, cultural and social assets
How success will be measured:                   How success will be measured:                         conservation are a part of how we all live.      play in supporting economic development.

• Residents feel a sense of community with      • Resident satisfaction with available local          How success will be measured:                    How success will be measured:
  others in their neighbourhood                   community facilities
• Residents feel they have opportunities to     • Resident satisfaction with the general              • Resident satisfaction with the state of the    •   Housing affordability index trends
  have their say on Council business              lifestyle opportunities available in our district     district’s environment and biodiversity        •   Rental affordability index trends
• Residents believe they can influence                                                                • Resident satisfaction with Council’s           •   District GDP trends
  council decision-making                                                                               activity to care for the districts             •   Unemployment rate trends
• Numbers responding to consultations                                                                   environment and biodiversity                   •   Tourism spend trends
• Numbers participating in local elections                                                            • Council meets its resource consent
                                                                                                        conditions for consents held (eg water
                                                                                                        abstraction, wastewater discharges)
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WHAT WE’VE BEEN UP TO Ā MĀTOU MAHI

We’ve achieved a lot since
our last 10 year plan was
adopted in 2018.

                                             • Ashburton River Crossing and pump                                            • Upgraded the Ashburton Resource
                                               station project completed                                                      Recovery Park
                                             • Trialled new filtration technology                                           • On average, diverted 6.3 tonnes of
                                               at Ocean Farm                                                                  waste into recycling (one third of all
                                                                                                                              waste handled) each year
                                             • Gained a 25-year network-wide
                                               stormwater discharge consent         • Completed over half the Ashburton                                                • Adopted a Climate Change Policy
                                               (Ashburton)                            CBD revitalisation
                                                                                                                                                                       • Undertook a Representation Review
                                             • Adopted a Surface Water Strategy     • Replaced three Rangitata Diversion                                                 resulting in councillor numbers
                                                                                      Race bridges                                                                       reducing to nine
                                                                                    • On average each year, we resurfaced                                              • Allocated $1.2 million in funding to
                                                                                      111 km of road, applied 43,700                                                     community groups and organisations
                                                                                      m3 of gravel to unsealed roads and                                                 each year
                                                                                      repaired 4,400 potholes, undertook
                                                                                      11,700m2 digouts and graded 8.7 km
                                                                                      of unsealed roads

                                                                                                                             For further information on the work we do please
                                                                                                                             refer to our Annual Reports at ashburtondc.govt.nz
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 11

• Adopted an Economic Development                                               • Extended the Ashburton                                              • Each year, we supported the local
  Strategy                                                                        Cemetery to meet our needs                                            construction and property sector by
                                                                                  for the next 80 years                                                 processing on average 875 LIM reports,
• Became an ‘Established’ Welcoming                                                                                                                     585 building consents, 828 Code of
  Community                                                                     • Adopted the 30 year Ashburton                                         Compliance Certificates, 194 resource
                                                                                  Domain Development Plan                                               consents, and 55 subdivision plans
• Organised or supported, an average
  of 50 community events a year            • Upgraded public conveniences       • Restored the Cenotaph           • Welcomed over 1 million           • Each year, we promoted and protected
                                             at the Ashburton Domain, Rakaia      (war memorial in Baring           users to the EANC, Library          public health by registering over
• Announced as a Refugee settlement
                                             Salmon Site, Lake Camp and           Square West)                      and Museum                          6,000 dogs, responding to 414 noise
  area
                                             Wakanui                                                                                                    complaints, meeting with 121 alcohol
• Supported local businesses through                                                                              • Introduced the popular              licensed premises in our district and
  Covid-19 by establishing a stakeholder   • Invested resource to improve our                                       ‘Burty Challenge’ school            126 premises with Food Control Plans
  advisory group and ‘Open for               connection with reserve boards                                         holiday programme
                                             and halls                                                                                                • Updated or developed 1-2 community
  Business’ website                                                                                               • Introduced self-issue and           response plans to support emergency
• Sale of commercial property                                                                                       return stations to the              preparedness in our communities
  contributed on average $2.9 million                                                                               Ashburton Library                   each year.
  to the general rate                                                                                                                                 • Supported our community through
• Received $20 million from the                                                                                                                         the Covid-19 pandemic lockdowns –
  government’s Covid-19 Response                                                                                                                        supporting meals-on-wheels deliveries,
  and Recovery Fund to put towards                                                                                                                      cleaning and other admin tasks at
                                                                                                                                                        the hospital, and calling our over 70s
  the new Library and Civic Centre –
                                                                                                                                                        residents living in our district
  and construction is now underway
12 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

OUR CHALLENGES TE WERO KAI TE AROARO
This document is all about getting your feedback on our plans for the future. But firstly, we want to let you know a bit about the challenges
we are facing, and how we plan on building the resilience of our district to be able to deal with them.

WATER REFORMS

Over the past three years, central and local government have been looking for ways to overcome the           This is likely the greatest change in local government service delivery for many years. The
challenges facing our water services – that is, drinking water, wastewater and stormwater – known as         government has stated it is their intention that our drinking water, wastewater and quite possibly
‘three waters’.                                                                                              stormwater assets and operations will pass to a new regional or multi-regional organisation that will
                                                                                                             be responsible for managing these water supplies and services. Put simply, we as Council, may no
Both acknowledge that there are broader challenges facing local government and the communities               longer be delivering these activities on your behalf.
that fund and rely on these services. In some parts of the country there has been underinvestment in
three waters infrastructure and persistent affordability issues. Alongside this is the need for additional   We’ve signed a Memorandum of Understanding which committed us to working with Government
investment to meet improvements in freshwater quality outcomes, increase resilience to climate               and other parties to look at the future delivery of our water services. This includes considering the
change and natural hazards, and enhance community well-being. The Government’s view is that                  following design features.
current service delivery arrangements are no longer fit for purpose and that reform is required.
                                                                                                              •   Water service delivery entities that are of significant scale (most likely multi-regional).
In response to this, in 2018, the Drinking-Water Standards for New Zealand (DWSNZ) were updated. We           •   Publicly owned entities, with a preference for collective council ownership and protections
have been working towards compliance over the last couple of years but there is still more to do. Some            against privatisation.
of our schemes require costly capital upgrades which we have budgeted for over the next few years.
                                                                                                              •   Mechanisms for enabling communities to provide input in relation to the new entities.
Overshadowing the DWSNZ, the Water Services Regulator Act 2020 established a new Crown entity,
Taumata Arowai. The new entity will be responsible for administering and enforcing a new drinking
water regulatory system.

          For further information, see our Significant Forecasting
          Assumptions, Infrastructure and Financial Strategies
          at ItsOurPlace.nz
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                                                                                                                                                                    You have until
                                                                                                                                                             5pm, 19 April 2021
                                                                                                                                                             to get your feedback in!

There is a timetable of approximately three years for the reform programme, running through to July        We have not committed to joining any new entity. However, our
2023, comprising three main phases:
                                                                                                           community will need three waters services whether or not we
 •   Late 2020: Councils sign up to a memorandum of understanding (MoU) agreeing to work                   deliver them. Therefore, our current planning, budgets and timing
     together in good faith to consider multi-region groupings. We, along with every other eligible
     council in New Zealand, agreed to this phase; but this has not committed us to anything further.
                                                                                                           of projects in this 10 Year Plan is based on ‘business as usual’ (plus
 •   Sept-Dec 2021: Councils opt-in to multi-region groupings and begin the planning. At this point
                                                                                                           the introduction of water meters) - albeit with the certainty that
     we would decide to commit to joining a larger entity or not.                                          water quality standards will increase. We will come back to discuss
 •   Early 2022: The new entities form and establish themselves, beginning operation somewhere             any potential changes with you, once we have the full details.
     in late 2022.

Each phase may be accompanied by funding. We received $7.9 million of funding in the first phase,
which we put towards the Ashburton Relief Sewer project which commenced in December 2020.

We expect Government to make policy decisions relating to the reforms in May 2021, to enable
legislation to be introduced later in the year. This will include decisions on the main design features,
number, and boundaries of the new water entities. Our council will be included in one of the entities,
but we will have the opportunity to ‘opt out’.

While we understand the general shape of the reforms, the specifics are uncertain. The effects are
likely to be felt in the areas of governance and funding, and consequently in prioritisation, if funds
and projects are considered regionally or cross-regionally.
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CLIMATE CHANGE                                                                                                            With a rurally dominated community it is expected that our agriculture sector will be a source of strength for
                                                                                                                          our local economy as we move through the Covid-19 recession. While the local economy is looking to remain
We adopted our Climate Change Policy in 2019 which contains district-specific assumptions1.                               reasonably stable, the increasing difficulty to import goods and skilled labourers into New Zealand may
The greatest of these are those related to the increased severity and frequency of extreme weather                        impact the delivery of services and therefore our economy.
events. Extreme weather events represent a threat to people and property, including both public and
private infrastructure.                                                                                                   We have assumed business as usual and have considered rates affordability when preparing our budget
                                                                                                                          forecasts.
Our challenges
 • Economic and social impact on the farming community, and in turn the wider community, could                            NATURAL HAZARDS AND DISASTER EVENTS
     be substantial.
                                                                                                                          Like many places in New Zealand, our district is geographically diverse, reaching from the mountain ranges
    •   Hotter summers may cause increased damage of transport infrastructure.
                                                                                                                          to the ocean. Because of this, our district is susceptible to a number of possible natural hazard events such as
    •   Increases in pests, diseases and weeds through higher survival rates during winter will affect both               earthquakes, floods, and storms, which potentially damage property and threaten human life.
        the agricultural sector and be a threat to native species.
                                                                                                                          The Alpine Fault has a 30% chance of rupturing in the next 50 years. If it does, it will have a significant effect
    •   An increase in drought and increased plant water use due to higher temperatures will increase                     throughout the South Island. To support our preparedness, we are strengthening our infrastructure to
        agriculture reliance on irrigation. However, reduced snowmelt and rainfall will result in reduced supply.         withstand the predicted strength of this earthquake.
Our opportunities
 • Agricultural businesses in our district could be leaders in adaption and mitigation technologies as they
     have been in the past. These could provide an opportunity to showcase and celebrate our ability in this
     space with the wider community.
    •   Warmer temperatures, a longer growing season and fewer frosts could provide opportunities
        to grow new crops.
    •   Increased migration, especially for climate refugees, could lead to our district being a more
        diverse district.
    •   Conserving and enhancing intact ecosystems, such as wetlands, could help lessen the impact
        of extreme weather events as well as providing ecological value.
We are a member of the Canterbury Climate Change working group looking to procure an assessment
of our own emissions and energy consumption. We are also focussed on ensuring our infrastructure is
resilient and will cope with changes to our climate.

COVID-19

In 2020 we saw the national economy take a hit as a consequence of Covid-19 and the lockdowns.
We have formed Covid-19 response groups to put in place measures to support the economic and welfare
recovery of our district. Where possible, we are buying local, and also encouraging others to do the same
through our ‘Mid Canterbury Open for Business’ directory.

1           Based on the Intergovernmental Panel on Climate Change warming scenario RCP 8.5 - a high baseline scenario.
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 15

The stopbanks that protect Ashburton and Tinwald from river flooding are designed to contain a one in 200         To try and alleviate this build-up of work, we have looked at the timing of major projects, and if possible
year flood. During heavy rain events river levels and stopbanks will be monitored by Environment Canterbury       moved some to later years. This also helps to manage the impact on rates affordability. However, where
and close communications maintained with Ashburton District Civil Defence Emergency Management.                   there is an immediate need, or a regulatory deadline, this has not been possible. The strain on resources
                                                                                                                  required judicious decision-making and we will be having an increased focus on ensuring we deliver. We
We are in the process of updating our emergency response plans for all our communities so they are                have employed extra resources into our project management team. Staff will also be reporting to the elected
prepared should a range of disaster events – flood, pandemic, wind storm, earthquake etc occur.                   members through six-weekly activity briefings to provide governance level oversight of these projects. We
                                                                                                                  feel we have got the balance right with this plan.
NATIONAL POLICY STATEMENT (NPS) FRESHWATER MANAGEMENT
                                                                                                                  OUR15,
                                                                                                                 Page CAPITAL PROGRAMME–
                                                                                                                         Our capital       LAST THREE YEARS ACTUAL AND BUDGETED NEXT 10 YEARS
                                                                                                                                     programme
The National Policy Statement for Freshwater Management 2020 provides local authorities with updated
direction on how they should manage freshwater under the Resource Management Act 1991. It came into                                            80,000
force on 3 September 2020.

                                                                                                                   Capital expenditure $000s
                                                                                                                                               70,000
This NPS will significantly affect the way our district is farmed. There will be a flow on effect to our urban                                 60,000
sector if the forecasted reduced profits are realised. We have used funding from the Provincial Growth Fund                                    50,000
to employ an Agricultural Portfolio Advisor to look into the impact of this NPS and how we can minimise any                                    40,000
adverse effects on our agriculture-based economy.
                                                                                                                                               30,000
RESOURCE MANAGEMENT ACT (RMA) REFORM                                                                                                           20,000
                                                                                                                                               10,000
Central government have recently announced that by the end of 2021 new legislation will be introduced to                                           0
replace the Resource Management Act (RMA). It is expected the reform will have significant impacts for local                                            Actual Actual Annual Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
government.                                                                                                                                             18/19 19/20 Plan
                                                                                                                                                                      20/21
The RMA will be replaced with a new Natural and Built Environments Act (NBA) and a Strategic Planning Act
(SPA), in line with the recommendations of a review commissioned in 2019. The review also recommended                                                          Drinking Water                           Wastewater
                                                                                                                                                Drinking Water                          Balance                                  Urban Ashburton-Tinwald 2nd bridge
a new Climate Change Adaptation Act (CCA) be passed to deal with legal complexities surrounding managed                                         Stormwater        Stormwater            Wastewater        Transportation (excl 2nd bridge)
retreat from coastlines and other areas exposed to the impacts of climate change.                                                               Library & Civic Centre                  Transportation (excl 2nd bridge)
                                                                                                                                                               Library & Civic Centre                   Urban Ashburton-Tinwald 2nd Bridge
OUR WORK PROGRAMME                                                                                                                                             Balance

We have one of our largest ever capital works programmes planned for the next 10 years. The peaks in the          OUR RATES
first couple of years have been caused by works being delayed in 2020/21 due to Covid-19, and also the
stimulus funding we received from central government which has brought infrastructure projects forward. In        Balancing the affordability of rates against the need to undertake some costly projects is a difficult
                                                                                                                 Page
                                                                                                                  task33,
                                                                                                                       we What   we’veare
                                                                                                                          face. There  budgeted  to invest
                                                                                                                                          some actions     in our
                                                                                                                                                       we can     infrastrcuture
                                                                                                                                                               take to increase the affordability today, such as:
addition, we set out an ambitious 10 year plan in 2018. In short, we have a lot of work to
get through!                                                                                                      increasing debt to spread the cost across a longer period of time, using reserves (savings), or not
                                                                                                                 Drinking    Water
                                                                                                                  fully funding                           Wastewater
                                                                                                                                depreciation (which reduces the amount needed from the general rate).
Most of the capital projects are required to be done now and they can’t be delayed or the level of services
                                                                                                                  However, these actions have                                   Years 1-                                           Years 1-
for you as our residents will be impacted. For example there could be more leaks or additional maintenance
                                                                                                                                                                                10 $98m                                            10
required on our water and wastewater networks if we don’t complete the capital programme as planned. A            impacts further down the                                                                                         $62.3m
significant project in years 1 and 2 of the plan is the Ashburton Library and Civic Centre which we consulted     line. See page 38 for a full
                                                                                                                                                                                              Have any questions?
                                                                                                                                                                                Years 11-
with the community on in 2019 and that we received strong submitter support to progress. The $20million           discussion of the issues.                                     20                                                 Years 11-
                                                                                                                                                                                $78.8m                                             20
Covid-9 Response and Recovery funding we received last year for this project is a significant saving for our                                                                                  See page 2 for how to get in touch   $41.5m
community.                                                                                                                                                                      Years 21-
                                                                                                                                                                                30                                                 Years 21-
                                                                                                                                                                                $90.5m                                             30
                                                                                                                                                                                                                                   $46.9m
16 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

WHAT DECISIONS DO WE NEED TO MAKE?
HE AHA KĀ WHAKATAUKA KAI MUA I TE AROARO?
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 17

DRINKING WATER METERS
We provide drinking water to 70% of our residents through 12 schemes. However, we estimate we              As more properties are built, more water is required. In simple terms, reducing the amount of water
could be losing up to 50% of our water from the system – either through leaks or inefficient use.          that is lost from the system will increase the amount of available water in the pipe - meaning we
                                                                                                           will able to provide more houses with the amount of water they require, with the infrastructure we
This project would put a water meter on every property on our water schemes so that we can detect          already have.
any abnormal usage and fix any leaks that are identified. We want to be clear that the installation of
the meters is for leak detection, and therefore, we don’t intend to charge ordinary water users.           Water is a resource that is necessary for our health, and for the health of our ecosystems that support
                                                                                                           our essential flora and fauna. With climate change likely to increase the frequency and intensity of
Please note that this project excludes Methven-Springfield and Montalto water schemes as they already      drought events around the world, it is more important now than ever, that we reduce the amount of
have restricted usage.                                                                                     water we are losing in order to protect and conserve this precious taonga.

We fund our drinking water supplies together in a ‘club’ rate (a targeted uniform annual charge). This     In short, we need to reduce the amount of water that is lost from the system, and we think meters are
means that all properties connected to one of our drinking water supplies (again except Methven-           the best way forward.
Springfield and Montalto) all pay the same charge.
                                                                                                           BUT WILL THAT MEAN INDIVIDUAL PROPERTIES ARE CHARGED FOR WATER?
WHY DO WE THINK THIS IS A GOOD IDEA?
                                                                                                           Our reason for installing the meters is for leak detection, and therefore, we don’t intend to charge
Water leaks are costing us - we still have to pump and treat the water (including the costs of chemicals   ordinary2 water users.
and electricity) regardless of whether it is being used. At the moment, estimating our water loss is a
calculation which includes many assumptions. We don’t know how accurate this is. Water meters would
mean we would know more accurately how much water is being lost from the public network. They will
also help us to identify leaks in individual properties – meaning they can be fixed much quicker.

We already have meters on some properties. Any new house that is built in our district and connected              We are losing up to 50% of our drinking water to leaks.
to one of our water supplies, has a meter installed. As do any connections that are renewed. Some                 We plan to install water meters on all connections to our
towns where we have had issues in the past with large leaks, such as Mt Somers and Mayfield, already
have them too. This means we already know how successful meters are for identifying and fixing leaks.             drinking water supplies for leak detection. We do not plan
                                                                                                                  to charge for water in this draft ten year plan, but the future
In the future, when we are renewing water consents for our drinking water supplies, we will need to
demonstrate good stewardship of the water. If we want to increase the amount of water allocated to                funding of water will be reviewed in three years’ time.
a water supply, we will need to show a need for more – and that this couldn’t be reasonably achieved
through reducing the amount lost. Data from the drinking water meters will allow us to do this.

                                                                                                           2        See the Annual Plan 2020/21 for definitions of ordinary and extra-ordinary water users
18 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

THE OPTIONS

                                                                                                                                How much will it cost me?
 SPREAD OVER THREE YEARS
 We would install water meters over three years, starting in 2021/22 and finishing by June 2024.                                 •   $0               Year 1
                                                                                                                                     $10.50           Year 2
 The full cost of the meters is $5.17 million, and we would loan-fund this across three years: $1 million in Year 1, and             $31.70           Year 3
 $2.06 million in Year 2 and another $2.11 million in Year 3.                                                                        $48.60           Year 4
                                                                                                                                 •   Total cost: $5.17 m
 The meters will be debt funded, with the debt paid back across 10 years by properties connected to a Council drinking
 water supply. The repayment of some loan costs would begin from 2022/23, with the full loan costs hitting in Year 4.            •   Funded by loans – debt will increase by $5.17 million between Years 2-4

 ALL IN ONE YEAR                                                                                                                How much will it cost me?

 Rather than spreading the cost over three years, we could install all meters in Year 1 (2021/22).                               •   $0               Year 1
                                                                                                                                     $52.60           Year 2
 The meters would still be debt-funded, with the debt paid back across 10 years by properties connected to a Council                 $51.10           Year 3
 drinking water supply.                                                                                                              $49.70           Year 4

 The repayment of the full loan costs would begin from 2022/23.                                                                  •   Total cost: $5 m
                                                                                                                                 •   Funded by loans – debt will increase by $5 million from Year 2

 DON’T INSTALL METERS                                                                                                           How much will it cost me?

 Another option is that we simply don’t install the meters across the district. This isn’t our preferred option as we believe    •   $0
 identifying the source of water loss is an important role of ours.
                                                                                                                                 •   Total cost: $0
 At the moment our water loss monitoring is simplistic and is not going to reduce the amount of water loss we currently          •   Debt increase: $0
 have when compared with the technology of water meters.

 We know that future water consents will require us to prove our good stewardship of drinking water supplies.
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 19

Advantages

                                                                                     PREFERRED
 •   High likelihood of addressing the issue of water loss

                                                                                      OPTION
 •   Improved level of service for our community

Disadvantages

 •   Increased debt levels from Years 2-4
 •   May take 3-4 years to see the benefit of the meters on water loss numbers

Advantages

 •   High likelihood of addressing the issue of water loss, more quickly than the other options
 •   Improved level of service for our community
Disadvantages

 •   Increased debt levels from Year 2
 •   Rate increase from Year 2 to cover loan repayments
 •   We may need to reprioritise / delay other projects

Advantages

 •   No debt repayment increase to rates for the properties receiving this service

Disadvantages

 •   No significant progress made in identifying and reducing water loss
 •   No improvement to current levels of service
20 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

ELDERLY PERSONS HOUSING
We own around 100 homes which we rent out to vulnerable residents aged over 65 years, who meet          BUT IS THIS INCREASE AFFORDABLE FOR RESIDENTS?
a certain criteria.
                                                                                                        We see the rental increase as affordable. Our rents are currently $20-100 below other providers of
It is intended that the rent received covers the costs associated with running the housing. However,    similar type housing.
a backlog of maintenance has been funded from reserves (savings) and there is still more to do.
Unfortunately, the reserves will be fully depleted within four years at current rates of expenditure.   In addition, some residents may be able to access higher accommodation supplements from central
                                                                                                        government as the rent increases. Effectively, the increase that some residents see will only be a small
In July 2020, we amended our Revenue and Financing Policy to allow funding to come from the             proportion of the actual increase.
general rate to cover the shortfall, and we have included this in our ten year budget accordingly.
We have also undertaken a comprehensive review of the service and we now have a plan for the            The maximum of $170 per week for a single unit and $190 per week for a double unit is based off an
way forward. We want to get the service back to being self-sustaining.                                  internationally adopted standard for defining affordability. This standard states that residents should
                                                                                                        spend no more than 30% of their gross house hold income on housing costs3. Some single residents
To do this, we are proposing increasing rents by up to $20, to $110/week for a single unit and $130/    choose to live in double units, therefore they may pay more than 30% of their income on rent.
week for a double unit from 1 August 2021. Every year after there would be a $10 increase until they
reach $170 per week for a single unit and $190 per week for a double unit. We are aiming for these
rental prices as we estimate they will enable our Elderly Persons Housing activity to fund itself.

Within two years, the activity should be self-sustaining, and there should be no further need for
support from the general rate. We are, however, suggesting that in two years’ time another review                 Visit ItsOurPlace.nz
is undertaken to ensure we have achieved this. During this review we will also consider the ongoing
future of our portfolio, for example, such as whether another community housing provider would be
more suitable to manage the portfolio.                                                                            to see our draft Elderly Persons Housing Policy which
                                                                                                                  will reflect the outcome of this decision.

                                                                                                        3         communityhousing.org.nz
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 21

                                                 RENT / WEEK
PROVIDER
                             Single unit                Double unit

Ashburton District Council   $86.00 - $97.91            $110 - $123.67

Hauraki District Council     $187.00                    $187.00

Timaru District Council      $120.50 - $150.50          $140.00 – $160.50

Dunedin District Council     $117.00 - $121.00          $160.00 - $165.00

Waitaki District Council     $145.00                    $145.00

Westland District Council
                             $120.00                    $150.00
(management outsourced)

Ashburton Housing and
Support Trust                $185.00                    $185.00
(Modern unit price)

Current market rent          $235.00                    $235.00
22 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

THE OPTIONS                                                                                                                              How does this affect my rates bill?
                                                                                                                                         If your property is worth more, you will contribute more.

 SELF-SUSTAINING IN 2 YEARS                                                                                                              Based on your property CV:

 We would increase rents to $110/week for a single unit and $130/week for a double unit from 1 August 2021. There would then              •   $350,000 =    $1.75
 be an annual increase of $10 from 2022, until rents are at $170/week for single units and $190/week for double units.
                                                                                                                                          •   $700,000 =    $3.50
 This will raise an additional $1.96 million across the 10 years of the plan, resulting in only $135,000 needed from the general rate     •   $1 million = $5.00
 and loan funding of $1.4 million.
                                                                                                                                          •   $10 million = $50.00
 By 2023/24 the activity should be self-sustaining with no need to access the general rate for additional money, and with a reserve      General rate is not required from 2023/24
 balance of $285,000.

 SELF-SUSTAINING IN 7 YEARS                                                                                                              Based on your property CV:

 We would increase rents by up to $10 per week from August 1 2021, which would be an increase to $100/week for a single unit and          •   $350,000 =   $3.15
 $120/week for a double unit and each year thereafter, until rents are up to $170 per week for single units, and $190 per week for
 double units.                                                                                                                            •   $700,000 =   $6.30
                                                                                                                                          •   $1 million = $9.00
 This will raise an additional $1.82 million across the ten years of the plan – meaning $930,000 less is needed from the general rate
 than the current situation (assuming no loan funding, as proposed in option 1).                                                          •   $10 million =$90.00
                                                                                                                                         General rate is not required from 2027/28
 By 2027/28 the activity will be self-sustaining, with no need to access the general rate for additional money, and with a reserve
 balance of $260,000.

 STATUS QUO – INFLATIONARY RENT INCREASES + GENERAL RATE                                                                                 Based on your property CV:

 Under our current policy, rents increase by inflation (Consumer Price Index) each year. Any shortfall in funds required for the          •   $350,000 =   $3.50
 upkeep of the houses is then made up using the general rate.
                                                                                                                                          •   $700,000 =   $7.00
 In this scenario, expenses increase faster than rental income, meaning the general rate is required to pick up the shortfall –
 increasing from $156,000 in 2021/22 to $294,000 by 2030/31. The reserves would be empty by 2025/26.                                      •   $1 million = $10.00

 In this scenario, the portfolio is not self-sustaining and would become increasingly reliant on the support of all ratepayers through    •   $10 million = $100.00
 the general rate.                                                                                                                       General rate is required on a continual basis
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 23

Advantages
                                                                        Have any questions?
 •   Maintenance of units could occur in a timely manner,
     improving levels
                                                                        See page 2 for how to get in touch

                                                            PREFERRED
     of service for tenants

                                                             OPTION
 •   General rate support reduced to $0 in 2 years
Disadvantages

 •   Reliant on general rate support for 2 years
 •   Rental increase for tenants
 •   Loan funding

Advantages

 •   Maintenance of units could occur in a timely manner,
     improving levels of service for tenants
 •   General rate support reduced to $0 in 7 years
 •   No loan funding
Disadvantages

 •   Reliant on general rate support for 7 years
 •   Rental increase for tenants

Advantages

 •   Minimal rental increase for tenants
Disadvantages

 •   Increasing reliance on general rate
 •   Portfolio would not be self-sustaining
 •   No change to levels of service
24 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

ASHBURTON : THE DISTRICT
OF CHOICE FOR LIFESTYLE
AND OPPORTUNITY
HAKATERE: TE ROHE KA WHIRIA
MŌ TE ĀHUA NOHO, ME TE HAPORI
It’s your chance to help us shape our future.
Māu anō e tārai i te āpōpō mō tātou.
Let us know at / Whakapā mai ki a mātou:
www.ItsOurPlace.nz
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 25

Visit ItsOurPlace.nz to learn what is proposed
for our local services, activities and projects over
the next 10 years and have your say. While you’re
there, check out our free rates calculator to see
what your rates could be in the years ahead.
26 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

WHAT ELSE ARE WE PLANNING IN THE NEXT 10 YEARS? HE AHA ANŌ K
Here’s some of our new infrastructure and projects we have in our plan for the next 10 years

                                                      YEAR 1                                      YEAR 2                                         YEAR 3                                    YEAR 4

                                                                                                          Universal drinking water meters $5.2m

         DISTRICT WATER MANAGEMENT                             NW Ashburton wastewater $1.8m               Grit chamber pipeline renewal $3.2m

                                                                                                                                4 membrane treatment plants $15.3m

                                                      Ashburton relief sewer $1.6m                                                                        UV disinfection upgrades $3.9m

                                                                                             Rakaia bore $462k                                                                                 Methven reservoir $609k

         TRANSPORTATION

         WASTE REDUCTION & RECOVERY                                 ARRP upgrades $135k                                                                     Re-use shop rebuild $760k           Methven transfer station $1.3m

         ECONOMIC DEVELOPMENT                                                        New Library and Civic Centre $49.8m                            				                                   Balmoral Hall upgrade $487k

                                                                Ashburton CBD Car park $1.5m
         COMMUNITY SERVICES
                                                                                                           Ashburton Domain playground $154k

         PARKS & OPEN SPACES                                                            Walnut Ave promenade $812k

                                                                                      Baring Square East upgrade $3.3m

         RECREATION FACILITIES
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 27

KĀ MAHERE KAI TUA, I KĀ TAU TEKAU E HEKE MAI NEI?
                                                                                                                                               Projects that run across ten years

 YEAR 5                                       YEAR 6                                     YEAR 7                  YEAR 8                                       YEAR 9                                           YEAR 10

                                     Ashburton bore $686k                                                                                     Drinking water network renewals $19.4m

                                                                                                                                                 Stormwater capital upgrades $17m

                                                                        Tuarangi Road wastewater service $1.1m

      Ashburton urban second bridge $7.5m*                                                                                Unsealed maintenance repairs (grading, potholes) $2.4m across the first 3 years

                                                       Compactor building (ARRP) $1.8m                                    Sealed maintenance repairs (potholes, digouts etc.) $5.1m across the first 3 years

                                                                                                                                         Reserve Boards and Memorial Hall upgrades $1.8m

                                                                                                                                              Elderly Persons Housing upgrades $2.4m

                                                                                                                                             District-wide Public toilet upgrades $3.5m

      Ashburton Domain Central Hub $1.1m                                                                                                     Assorted Ashburton Domain upgrades $2m

          Ashburton Domain Water play $949k                                                                                                             Festive lighting $417k

      Ashburton Domain playground $166k

                                                                                                                                                        Library books $1.8m

                                                                                                                                                                                  Costs are rounded  *Our contribution only
28 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

INFRASTRUCTURE SERVICES                                 HE RATOKA WHAKARITEKA
Our highlights for the next 10 years: Drinking Water, Wastewater, Stormwater, Stockwater, Transportation, and Waste Reduction & Recovery.

                       • Upgrades have been planned to ensure           • Replace the wetland plants at Ocean
                         our water is safe to drink. We’re installing     Farm across four years, starting in
                         UV disinfection on our deep groundwater          2022/23 at a cost of $2.1m.
                         supplies, and membrane treatment plants
                         on four water schemes in Years 2 and 3.

                         However, we are looking into whether
                         one plant could service all four schemes
                         (Methven, Methven-Springfield, Montalto,
                         Mt Somers) to make it more affordable –
                         so we’ll come back and discuss our options                                                 • Continue with our stormwater network
                         with you within the next two years, once                                                     upgrade programme - to increase our
                         this word is done.                                                                           resilience against flooding and to improve
                                                                                                                      the quality of the water before it enters the
                                                                                                                      environment.

                                                                         • Complete the Ashburton Relief Sewer      • Drill additional water bores in Ashburton – to
                                  • Continue with our
                                                                           project (Year 1 Council contribution       increase capacity, and Rakaia – as a backup in
                                    drinking water network
                                                                           $1.6m).                                    case there are problems with the current bore.
                                    upgrade programme –
                                    spending $19.4m across               • Upgrade/reline our sewer mains across
                                    the next 10 years.                     the next 10 years at a cost of $16.1m.
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 29

• We’ve budgeted to start the detailed design in 2024/25 on the second
  urban bridge connecting Ashburton and Tinwald. Construction
  would begin the following year. The full cost of this project is estimated
  to be $37m - we’ve included $7.5m of debt and funding in our financial
  forecasts (20% of the project cost). We have planned on the balance of
  the funding to come from Waka Kotahi ($18.8m - 51% of the project) and
  central government - $10.7m (remaining 29% of project).                       • We’ll spend $15.3 million in the
  We have put together a Strategic Business Case for Waka Kotahi (New             first three years on reseals and
                                                                                  rehabilitation of our sealed road                                                     • Our temporary re-use shop at the
  Zealand Transport Agency) to review, with the next step, depending on
                                                                                  network, and $3.5 million on                                                            Ashburton Recovery Park can’t be
  their response, a Detailed Business Case. This would look at funding
                                                                                  re-metalling our gravel roads.                                                          used past June 2024 – so in 2023/24
  scenarios. If the 80% government funding option isn’t their preferred
                                                                                                                                                                          we’ll build a new one.
  choice, we would need to reconsider the current Council decision to                                                 • Methven does not have enough
  fund only 20%. Waka Kotahi have signalled that they are facing funding                                                water storage – and one of the
  constraints for their 2021-24 National Land Transport Programme. How                                                  reservoirs is at risk of failure in an
  this will affect the years beyond 2023/24 is not yet known. Our current                                               earthquake, so we will build an
  view is that if we don’t get the full 80% of funding approved, we will not                                            additional 500m3 reservoir.
  go ahead with this project. If we were to fund any more than the 20%
  we would need to discuss this with you.

                                                                        • Continue our stockwater closure                                                               • Replace the Ashburton
                                                                          programme – we’ve reduced the budgeted                                                          Recovery Park compactor
                                                                          costs by $50k each year to reflect the                                                          building 2026/27 $1.8m, and
                                                                          increasing number of races closed.                                                              build a new Methven transfer
                                                                                                                                                                          station 2024/25 $1.3m.
30 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

PUBLIC SERVICES                      HE RATOKA TŪMATANUI
Our highlights for the next 10 years: Community Governance & Decision-Making, Economic Development, Community Services,
Parks & Open Spaces, Recreation Facilities

                       • Provide annually $290k of contestable grants to our                                                                 • Our previous plan included a climbing wall,
                         community, in addition to the $970k of grants to                                                                      extending the swim school pool, splash deck,
                         community agencies such as Ashburton Art Gallery,         • Develop a Parking Strategy and                            and stadium, and developing sports fields at
                         Safer Mid Canterbury, Ashburton Trust Events                Ashburton CBD Parking Plan –                              the EA Networks Centre – we have paused
                         Centre, and Canterbury West Coast Sports Trust.             and we’ve budgeted $1.5m in                               these projects while we undertake research
                                                                                     2021/22 to implement this plan.
                                                                                                                                               on the best way to utilise the centre, and they
                                                                                                                                               may be rescheduled in our next 10 year plan,
                                                                                                                                               if appropriate.

• Upgrades to the Ashburton                                • Continue to fund tourism promotion through            • Review the Sport &                                • Provide $1.8m for
  Cemetery, including a secure                               a $195,000 grant – currently ChristchurchNZ             Recreation Strategy                                 the Reserve Boards
  yard and soil storage area,                                undertake this work on our behalf.                      in 2022/23 (Year 2 of                               and Memorial Halls to
  entrance road, and new fencing.                                                                                    our 10 Year Plan).                                  undertake a programme
                                                                                                                                                                         of upgrades over the
                                                                                                                                                                         next 10 years.
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 31

                                                  • Various other projects including
                                                    improvements to Argyle Park, irrigation
                                                    and lighting improvements at the Domain
                                                    sports grounds and development of the
                                                                                                                            • Become an ‘Excelling’
                                                    Bowyers Stream area.
                                                                                                                              Welcoming Community.

• The first projects of the Ashburton Domain                  • Additional resources have been included to increase our                  • Complete construction on our new Library & Civic
  Development Plan will get underway, including                 capability in biodiversity and to continue delivering the                  Centre building in 2022/23. We will also rejuvenate
  the Walnut Ave promenade, Central Hub,                        level of service currently provided across our Parks &                     Baring Square East to complement the new facility
  playground upgrades and water play project.                   Open Spaces activities.                                                    and CBD upgrades.
32 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

                                                                                                      Have any questions?
                                                                                                      See page 2 for how to get in touch

REGULATORY SERVICES                             HE RATOKA WAETURE
Our highlights for the next 10 years: Regulatory Services, Regulatory Compliance.

                                        • The reform of the Resource Management Act
                                          indicated for 2021/22 by central government
                                          will significantly affect our District Planning and
                                          we will need to respond appropriately.

                                        • We will continue to promote and protect public health     • Include a new IL4 building as part of the
                                          by inspecting 1,950 swimming pool fences, meeting with      new Library & Civic Centre which will
                                          1,000 alcohol licensed premises and 1,100 food premises     be our designated Emergency Operations
                                          with Food Control Plans, and conducting 68,000 dog          Centre – with post-disaster functions.
                                          registration transactions across the 10 years.
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 33

• We will continue to support the sustainable development
  and growth of the district and have budgeted to issue
  8,750 LIM reports, 6,460 building consents, 7,560 Code of
  Compliance Certificates, 1,120 resource consents, and 750
  subdivision plans over the next ten years.
34 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

THE FUTURE OF OUR INFRASTRUCTURE                                           TE ANAMATA O TŌ TĀTOU HAKAKA
We have a number of decisions that will need to be made over the coming years to ensure our infrastructure will still be providing the levels
of service our community expect and need beyond 2031.

The main factors that we have taken into account when drafting our plan are: compliance with                have thoroughly checked and corrected the information we hold on all of our assets, both water and
regulations; sufficient infrastructure to meet the demand and growth of our district; infrastructure that   transportation.
is resilient and can withstand and recover quickly from disruptions; and that our spending is affordable
for our community.                                                                                          Roads, bridges, footpaths and other transportation assets are inspected regularly for defects and
                                                                                                            condition to inform the upcoming renewal programme.
Our main focus in the short-term is around installing district wide water meters (see page 17 for the
full details on this project), and upgrading the Methven, Mt Somers, Methven-Springfield and Montalto       We carry out a closed-circuit television (CCTV) survey of a selection of our wastewater pipes each year
drinking water schemes to comply with the new drinking water standards. We’re also continuing to            to assess their condition and refine our renewals programme. We have not carried out formal condition
progress our plans for the second urban bridge across the Ashburton River.                                  assessment for our non-reticulated three water assets however. Instead we use incidental inspections
                                                                                                            (such as looking at assets and listening to motors) to warn us when assets may be close to failure.
In the 2030s, our wastewater resource consents come up for renewal, and we’re likely to see higher          We accept that there are risks with this approach and that it could result in disrupted levels of service,
standards and expectations for nutrient loadings. To pre-empt this, we have made strategic land             unplanned renewals costs and potentially increased maintenance costs.
purchases near existing facilities and we’re looking at different ways to deal with wastewater disposal
at our treatment plants, including subsurface irrigation.                                                   Our renewal strategy for three waters infrastructure is based on age (when assets like underground
                                                                                                            pipes reach the end of their useful life), material and criticality with modifications made based on
We know our assets pretty well, but there is also a lot we don’t know. Some of our assets were built a      analysis of maintenance records and customer complaints. This means we are generally funding our
hundred years ago, and it’s not always easy to understand the condition they’re in or to predict exactly    renewals in line with depreciation. We will need to keep monitoring our rates of failure to ensure that
when they’ll fail.                                                                                          our renewal programme remains responsive to our infrastructure needs.

In the last five to ten years a lot of work has gone into improving our knowledge and understanding         We’re also looking ahead at where new developments are happening and where we may need to extend
of our assets. In particular, we have implemented a new asset database for the three waters and             our drinking water infrastructure.

                   See our draft Infrastructure Strategy
                   for more information at ItsOurPlace.nz
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 35

WHAT WE’VE BUDGETED TO INVEST IN OUR INFRASTRUCTURE

                                                 DRINKING WATER      WASTEWATER
                                                 $98m Year 1-10      $62.3m Year 1-10

                                                 $78.8m Year 11-20   $64.1m Year 11-20

                                                 $90.5m Year 21-30   $75.1m Year 21-30

                                                 STORMWATER          TRANSPORTATION
                                                 $26.8m Year 1-10    $234m Year 1-10

                                                 $18.6m Year 11-20   $251m Year 11-20

                                                 $22.3m Year 21-30   $301m Year 21-30
36 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

HOW DO WE PAY FOR ALL OF THIS?
2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT | 37

WHAT WILL IT ALL COST?                           HE AHA TE UTU?                                            WHERE WILL THE MONEY COME FROM?
We look after about $1.17 billion worth of infrastructure, assets and facilities - that includes roads,
                                                                                                           KA AHU MAI TE PŪTEA I HEA?
pipes, buildings and land, right down to the bins at the domains.
                                                                                                           Generally, we collect rates to cover the cost of our operating expenditure and use loans and reserves
We also undertake the large task of running, regulating and monitoring all the goings-on that contribute   to fund our capital projects. However, in Years 1-3 of our plan we are also using reserves to offset the
to where and how we live, work and play in our district.                                                   general rate.

We estimate it will cost us a total of around $576 million over the next 10 years to look after what we    We use fees and charges to collect costs directly from individuals who use a service. We also try to get
have and provide all of our services (our operating costs).                                                grants and subsidies where we can (such as the $20 million we received from the government’s Covid-19
                                                                                                           Response and Recovery Fund in 2020), and have investments that give us a return – all of this helps to
It will cost another $354 million to upgrade our assets and build new ones (our capital costs).            reduce how much we need from rates and loans.

Projected spend over the next 10 years                                                                     Projected sources of revenue for the 10 years

                                                                                                                                                    Interest &
                                                               Total projected spend                                                                dividends 0.1%
                                                                                                                         Fees &
                                                               $929m 2021/22 - 2030/31
                                                                                                                         charges
Capital expenditure                                                                                                      12%
$354m (38%)

                                                                                                           Subsidies
                                                                                                           & grants
                                                                                                           16%

                                                                                                                                                                           Rates
                                                                                                                                                                           55%
                                                                                                           Other
                                                                Operating expenditure
                                                                                                           revenue
                                                                $576m (62%)
                                                                                                           18%
38 | 2021-31 LONG-TERM PLAN | CONSULTATION DOCUMENT

RATES
                                                                                                                                                                                       You have until
                                                                                                                                                                                5pm, 19 April 2021
Due to Covid-19, we reduced the projected rates increase of 5.0% down to 2.6% for 2020/21.                                                                                      to get your feedback in!
This has resulted in some deferred costs, which are now in the first years of this 10 year plan.
We also have a significant programme of infrastructure work which is impacting the rates.
                                                                                                            % rates increase for past three years and next 10 years
This means there are higher rates increases in the first few years of the plan. We have set limits on our
total rates, and how much rates can increase by each year.

 •   Total rates in any one year are to be no more than 1% of the total capital value of our district.
 •   Total rates increases in Year 1-4 to be no more than 5.0% each year, exclusive of LGCI.
 •   Total rates increases from Year 5 onwards to be no more than 3.0% each year, exclusive of LGCI.

        LGCI, Local Government Cost Index, is effectively inflation
        for councils. It is a value that is calculated specifically for
                                                                                                                                                                                       * Based on figures from the LTP 2018-28,
         us, based on the price of items that councils use, such as                                                                                                                      Annual Plans 2019/20 and 2020/21

        bitumen and civil contracting services. The amount that
         affects your rates bill, is the rates increase plus LGCI.                                                 LGCI           Average rate incr past 3 years (incl LGCI)
                                                                                                                   Rates incr     Average rate incr years 1-10 (incl LGCI)

WE’RE USING THE FOLLOWING STRATEGIES TO REDUCE THE RATE RISE                                                Depreciation

Reserves                                                                                                    We rate for depreciation each year based on how much it would cost to replace an asset, divided by
                                                                                                            its expected useful life. These funds are then used for any capital work that is required on that asset.
We generally use reserves (savings) that were created from selling capital to fund other capital            Any funds that are not required in the year they’re rated for, are held for future expenses. We see this
projects. Reserves created through profits (our investments) are used to offset rates in the year they      as fair, as this spreads the costs evenly across the ratepayers who use the asset over its lifetime. This
are realised.                                                                                               is the principle of intergenerational equity.

We have chosen to use $377,700 in Year 1, $300,000 in Year 2 and $500,000 in Year 3 from our Forestry       However, due to our concern about the affordability of the rate rises, we have chosen to only fund
reserve (which contains $7.6 million) to offset the general rate. We believe this is the best option        deprecation on the equipment at the EA Networks Centre to the value that is required for capital
to keep rates affordable for our community, while still ensuring we have reserves available for the         works in the year we are rating for it. In addition, we have also only partially funded depreciation on
future.                                                                                                     the Ashburton Library & Civic Centre building across our 10 Year Plan (this affects Year 3 onwards).
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