Consultation Document

Transcription

1 Consultation Document FOR THE PROPOSED YEAR PLAN PALMERSTON NORTH SMALL CITY BENEFITS - BIG CITY AMBITION THEBIGPICTURE.PNCC.GOVT.NZ Te Kaunihera o Papaioea - Palmerston North City Council

2 Message from the Mayor and Chief Executive Message from the Mayor and Chief Executive We all know that this city is a great place to live, but we should all be thinking about the bigger picture. The next ten years will be a time of great opportunity for all of regional New Zealand, and we need to harness that opportunity to build the future we want for our city and our people. Last year, we developed a vision for Palmerston North: Small city benefits, Big city ambition. This reflects the value we all place on the great quality of life, community spirit, and affordable access to services that come with being a small city, as well our ambition to have the opportunities larger cities offer. Unlocking these opportunities calls for well-planned growth and sustainable management of our infrastructure resources. This 10-Year Plan presents our perspectives as your Council on the best approach to realising that shared vision and specific proposals for you to provide your feedback on. The vast majority of the Plan delivers the business as usual services - $590m of the $765m capital spend is on basic infrastructure like roads, water supply, wastewater, stormwater, rubbish and recycling, and sports facilities, parks and reserves, as we need to make prudent investments for the future that will ensure our city thrives. We also need to balance affordability for the ratepayers of today and future generations. Key projects we are focused on in this 10-Year Plan are: Future-proofing our wastewater system. Our consent to discharge treated wastewater from the treatment plant into the Manawatū River will expire in 2027, so we need to upgrade or replace the treatment plant over the next 10 years. At this stage we do not know the most practicable treatment and disposal option for this and hence its cost is unknown. For now we have put $128.8m ($110m without inflation) in the budget between 2023 and This is the current estimated cost of state of the art treatment with continued discharge in to the river. Other options are land or ocean discharge, and these could cost up to $250-$300m. We will review the options by June 2021 and we will do this with extensive community consultation so that we can balance regulatory compliance requirements with community expectations and our ability to pay for the project. Please think about this as you read through this document. We have put in an appropriate amount in the budget. If it ends up costing more we may need to review our debt and rates policy limits and our priorities for other projects. See page 11 for more information. Creating a more vibrant city centre, which will in turn attract and retain business investment that will deliver further benefits to the people of Palmerston North. Developing recreation activities along the Manawatū River, which will deliver lifestyle benefits for our residents, and contribute to our city s attractiveness as a place to visit or choose to live in. Ensuring that we have the land and essential infrastructure for sustainable growth in population and jobs. There are no priorities between the projects. We believe they are of equal importance and create an integrated package to benefit the city. In order to fund existing council services and the key projects we are proposing in this Plan to deliver on our draft vision, rates would need to increase. In year one, the rates increase would be 6.4%. That equates to an extra $2.80 per week for the average residential ratepayer. 2 What's the BIG picture? Small City Benefits, Big City Ambition Photo courtesy : Murray Wilson STUFF

3 Kaua e rangiruatia te hāpai o te hoe; e kore tō tātou waka e ū ki uta. Do not lift the paddle out of unison or our canoe will never reach the shore. We know that any increase in rates is not welcomed, but we need to do more than be conservative and just tread water. Otherwise we risk missing the huge opportunities ahead for our region from demographic, technological, economic, social and environmental changes. These changes create new opportunities for our traditional sectors such as defence, research, education, agri-business, health and logistics, as well as wider new opportunities to diversify our economy and enable the city to reach its potential. It is important to remember that even if we were to do nothing more than we are already doing today and not invest in the key projects proposed, there would still be a rates increase to cover increasing costs. That means, just to stand still, you would have a rates rise of 3.5% in year one. It is also important to note that 40% of our funding comes from sources other than rates. Many of the projects we invest in have long-term benefits, which future ratepayers will be able to enjoy. We are mindful of the need to share the costs of these projects across current and future generations, so that the current generation is not disproportionately impacted. We achieve this by funding projects through debt, which means they can be paid off over time by ratepayers across generations. In this context, we are proposing in this 10-Year Plan to raise our debt level from $109m to $349m. This is based on achieving the projects outlined in this Plan, including our best estimate of the wastewater cost. At the same time, we are also proposing in this 10-Year Plan to pay down our debt faster to deliver significant long term savings from paying less interest (just like a mortgage). We are proposing to reduce the term of our debt from 30 to 20 years, which will save $10m in interest over this period. This saving can in turn be put to use on other projects to deliver on our vision. To pay back our debt faster, we need to pay more off as we go, so 1.7% of the proposed 6.4% rates increase is the additional cost of debt repayment. We think this is financially prudent, while still enabling us to invest wisely for the future. What do you think? We encourage you to think about the big picture and imagine what Palmerston North could be like in 2028, and give us your feedback on whether you think we re charting the right course to get us there. We want your feedback and input on all of the proposals in this Plan so that it truly reflects the community s wishes. The Plan will be finalised and formally adopted in June, after we have considered all of your feedback. You can find a lot more detail in the supporting information for this Plan that you can download through our website thebigpicture.pncc.govt.nz or come into the Council office and service centres. We ll also be out in the community talking to you about the Plan. This is your city. Make sure you have your say. Heather Shotter Chief Executive Grant Smith Mayor Message from the Mayor and Chief Executive Te Kaunihera o Papaioea Palmerston North City Council 3

4 Why is the 10 Year Plan important? Our Vision The 10 Year Plan outlines the Council s big picture. It includes the projects and services that we are planning to deliver over the next ten years. The single most important project is the update to our wastewater treatment plant. Strategic planning and looking forward to how our community will look in 10 years is important to ensure we plan, budget and deliver what is required into the future. Much like your own budget, this document summarises what these major projects and services will cost us, and how we will pay for them. This Plan is about working with you the community to ensure we are on the right track. It is about balancing the needs and aspirations of our city, with affordability for ratepayers. This is your Council, your city, your Plan. How do you want to shape your city into the future? Help us continue to see Palmerston North thrive and create an inspiring vision for the generations to come. Let us know by 23 April What's the BIG picture? Small City Benefits, Big City Ambition

5 ONE VISION Palmerston North: Small City Benefits, Big City Ambition 5 Goals 4 Targets by 2028 An innovative and growing city A creative and exciting city A connected and safe community An eco city A driven and enabling council 12,000 more jobs 20% increase in the Creative Cities Index score 90% of people satisfied with the standard of living 25% reduction in CO 2 emissions Our Vision Inclusive Open 6 Principles: Ambitious Bold Enabling Guardianship 3 Top City Shaping Moves Enabling Sustainable Growth City Centre Transformation Manawatū River Network 4 Sustainable Growth Catalyst Projects Wastewater treatment Regional Freight Ring Road, Rail, Airport (multi-modal) infrastructure to enable industrial growth: Longburn & North East Infrastructure for residential growth at Whakarongo (including our own development), City West, Aokautere, Ashhurst & urban intensification Water storage & drainage 6 City Centre Catalyst Projects Streetscape Redesign plan & projects Te Manawa 2025 redevelopment Library of the Future Central Energy Trust Arena masterplan & projects Heritage protection package Initiatives with City Business Partners 6 Manawatū River Network Catalyst Projects Central Energy Trust Wildbase Recovery Centre Victoria Esplanade masterplan & projects He Ara Kotahi bridge & shared pathway Manawatū River shared pathway (Ashhurst to city) Manawatū Gorge (Te Apiti) biodiversity & recreation Ahimate (Waitoetoe) Park & Te Motu-o-Poutoa (Anzac Park) Te Kaunihera o Papaioea Palmerston North City Council 5

6 Mapping the Future Our Integrated Plan Bunnythorpe 2 ab l En NORTH ing su s taina b 2 PALMERSTON NORTH le growth Am ore tre vibrant city cen SH Longburn 1 Linton 3 SH 57 Encou M What's the BIG picture? Small City Benefits, Big City Ambition nt st hro s 2700 tie 1000 e ev ore raging m 0 ugh purpose tf buil i li ac

7 Mapping the Future Sustainable Growth (Industrial) 1 Ashhurst 5 1. Wastewater Treatment Plant Upgrade 2. Regional Ring Road, Rail, Airport & multi-modal infrastructure to enable industrial growth: Longburn & North East Industrial Zone (NEIZ) 3. Water Storage & Drainage* * City-wide Sustainable Growth (Residential) 1. Infrastructure for residential growth: Whakarongo (our own city development), Aokautere, City West, Urban Intensification, Ashhurst Mapping the Future City Centre Transformation 1. City Centre Streetscape Plan & Redesign 2. Te Manawa 2025 Redevelopment 3. Library of the Future 4. Central Energy Trust Arena Masterplan & Projects 5. Heritage Protection Package* 6. Initiatives with City Business Partners* * Across City Centre Developing recreation activities Manawatū River Network 1. Central Energy Trust Wildbase Recovery Centre 2. Victoria Esplanade Masterplan & Projects 3. He Ara Kotahi Bridge & Shared Pathway 4. Manawatū River Shared Pathway (Ashhurst to City) 5. Te Apiti Biodiversity & Recreation 6. Ahimate Park (Waitoetoe Park) 7. Te Motu o Poutoa (Anzac Park) City-wide Partners: Rangitāne*,Central Economic Development Agency (CEDA), Central & Local Government, Massey University, Research & Food HQ, NZ Defence, MidCentral DHB, Airport * City-wide Manawatū River & Tributaries Biodiversity Corridors Urban Areas Rail Regional Freight Ring Road An innovative and growing city Regional Freight Ring Road Options City Boundary Te Kaunihera o Papaioea Palmerston North City Council 7

8 Small City Benefits, Big City Ambition Palmerston North Small City Benefits, Big City Ambition Council s vision is for every resident to be able to enjoy the benefits of living in a small city - and we are a small city internationally - with the advantages of a big city. Experiencing the best of both worlds: Small cities Friendly and caring Safer Easy to move around Closer to nature and green spaces Quiet and relaxed Healthy lifestyle Family-friendly Lack diversity in employment Few educational opportunities Less nightlife Young people leave Fewer ratepayers to meet infrastructural costs Limited public transport Big cities Traffic congestion and long daily commutes Housing tends to be more expensive Pollution and a large environmental footprint Impersonal Sprawl onto valuable land Noisy and rushed Wider variety of health, social and educational services Good choices of shops, restaurants, cafés and events More of these services and facilities within walking or cycling distance Wide range of good jobs Lots of sporting and cultural interest groups and facilities More diverse communities More innovation What we re aiming for. What we re working to avoid. It s bold and ambitious, but it s achievable. What we need is a connected community that is on the same page, working together towards common goals. There is large financial investment needed to help us achieve our goal of experiencing the best of both worlds, but if we don t invest, we ll end up with a mix of small and big city disadvantages too and face higher economic, environmental and social costs. This will impact on our children and future generations. This Plan describes how we intend to achieve the advantages, whilst avoiding those disadvantages. We have five draft strategies that show how we will achieve this vision. In your submission you can comment on these. For more information go to thebigpicture.pncc.govt.nz 8 What's the BIG picture? Small City Benefits, Big City Ambition

9 Major Projects Issues, Options, Implications Let us know by 23 April 2018 Council s emphasis is on maintaining our essential infrastructure - the roads, footpaths and cycleways; the water, wastewater and stormwater networks; the parks, sportsgrounds and walkways; and the library buildings and community halls. Major Projects Council s three major focus areas - Sustainable Growth The City Centre Transformation The Manawatū River Sustainable Growth projects includes the wasterwater treatment plant upgrade. These are made up of a number of ambitious projects to help us achieve our vision. The following section includes information on the focus areas and projects we would like your feedback on. Dates to note 19 March Submissions open 23 April Submissions close 9-16 May Hearings May Committee of Council considers submissions 25 June Council finalises 10 Year Plan Te Kaunihera o Papaioea Palmerston North City Council 9

10 Improving our Day to Day Services Ko te pae tawhiti whāia kia tata, ko te pae tata whakamaua kia tina. Seek to bring distant horizons closer, sustain and maintain those that have been arrived at. IMPROVING OUR DAY TO DAY SERVICES The major projects outlined in this document will improve the services we provide. We will also continue to provide improved day to day services and projects. These include: Organisational performance and digital transformation Arts beyond the CBD and Arts Powerhouse projects City-wide active transport connections to schools, work and recreation including Feilding to Palmerston North shared pathway Redevelopment and growth of Council housing Street lighting conversion to LED New biodiversity programmes More activities and events throughout the city (plenty to do) Placemaking, laneways, Palmy Unleashed and Play Projects New recycling services Asset management and maintenance Central Economic Development Agency (CEDA) delivery: job creation, marketing & visitor attraction, supporting start-ups and major events (regional, national and international) Three new community hubs (Bunnythorpe, Highbury Partnership, Kelvin Grove) and meeting community needs for people-centred planning for services & facilities New Civil Defence Emergency Operating Centre Reserve development (Linklater Reserve, Edwards Pit Park and Memorial Park) Alternative and renewable energy services Water quality (fresh drinking water) Massey University entranceway and Food HQ campus redevelopment 10 What's the BIG picture? Small City Benefits, Big City Ambition

11 Wastewater Treatment Plant Upgrade Wastewater Treatment Plant Upgrade Let us know by 23 April 2018 Council s resource consent to discharge treated wastewater from the treatment plant into the Manawatū River is due to expire in As part of the new consent process, we need to complete a review of our wastewater treatment and disposal options by June We then need to lodge a new consent application by June We know the upgrade must be done but the costs are unknown until we have some specific options on the table. With constantly evolving technology in this area, there is a wide range of potential options that we will need to consider. What we do know is that it is a significant project that will have a major impact on our city s rates and debt levels. Sustainable Growth Catalyst Projects We will have detailed conversations with you about specific options and their respective costs and benefits to help decide on the preferred solution. This further detail will be considered for the next 10 Year Plan in three years time. Ultimately, the Council will need to balance regulatory compliance requirements with community expectations and our ability to pay for this project. In the meantime, we need to make a number of budget assumptions so that we can finalise the current 10 Year Plan. These include: $5.2m between 2018 and 2024 to complete the options analysis and obtain the consent (Prog No 1319). $128.8m ($110m without inflation) between 2023 and 2027 (Prog No 628) to undertake the capital upgrades. This is based on significantly improving the treatment of wastewater (to current state-of-the-art level) and continuing to discharge the treated water into the river. We have used this option for the purpose of including a budget provision at a time when we do not know what other options might cost. It does not signal that this is the preferred option, as the preferred option will be determined in consultation with the community. These options include land or ocean disposal and could cost up to $250m-$300m. We have tested what the impact on debt and rates would be if the project cost a lot more than assumed (say $100m more or a total cost of $240m including inflation). See this in the graphs for debt to revenue ratio on page 25 and rates increases on page 27. Assuming no other changes were made to compensate for this then the Council s debt would be forecast to be $449m as at 30 June The Council s debt to revenue ratio would rise to a maximum of 255% (compared with the proposed assumption of 205%). Rates increases beyond 2023 would be higher than currently assumed. If the debt to revenue ratio was to exceed 250% the Council would be faced with significant issues raising debt from lenders. We believe that the $128.8m figure is the most appropriate figure to budget for at this stage, but as you read through the rest of this document and make your submissions we ask you to remember that it could be more or less than this depending on the options. As the various options for this project are developed and costed in consultation with you they will be built into our budgets. This could lead to us reconsidering our debt and rates policy limits and our priorities for other projects. We will consult with you about this on an ongoing basis. While at this stage there is no fixed option, we are keen to hear your thoughts about the Wastewater Treatment Plant upgrade to help inform our future work in this area. It is too early For more information go to thebigpicture.pncc.govt.nz for us to consult on specific options for this, but in the meantime do you have any comments? Photo courtesy : Penny Aspin Te Kaunihera o Papaioea Palmerston North City Council 11

12 Sustainable Growth Catalyst Projects Regional Ring Road and New Road Bridge The Council has been working with the New Zealand Transport Agency and other councils to develop a regional ring road around the city. This also includes an additional road bridge across the river. This is an important project, dependent on funding from the NZTA, that will help reduce heavy traffic and improve safety in the city centre and suburban streets, as well as supporting the growth in city jobs, especially in distribution businesses. Council is seeking commitment from NZTA as to the exact route that a regional ring road will follow and which parts should be the responsibility of NZTA as a state highway. Along with this, NZTA is considering options to replace the Gorge route, with a decision due to be made in early-mid Currently, we have dedicated over $10m in this plan for strategic roading links, including safety improvements to the Longburn Rongotea Road/No. 1 Line Intersection ( ) and Kairanga Bunnythorpe Road (Mangaone Stream and Jacks Creek) - Bridge Renewal ( ). We will review this once NZTA has chosen the preferred option for the Gorge to ensure we take a strategic and consistent approach. For more information go to thebigpicture.pncc.govt.nz It is too early for us to consult on specific options for this, but in the meantime do you have any comments? Council Housing Support The Council has over 400 housing units, and it rents 320 of these to people on low incomes who: are superannuitants; or have long term disabilities; or are on low incomes and experience barriers to renting in the private market. Rents are currently subsidised by the Council so that they are affordable for tenants. Let us know by 23 April 2018 The demand for this type of rental housing is increasing, and so we want to build more units to meet this demand. To do this, we propose removing the subsidy from current Council housing and charging market rents for new tenants. (Current tenants would not pay market rates.) This will increase the revenue from Council housing to enable us to gradually build more 1-2 bedroom units. Council would ring-fence any increase in rental surplus to building new units. (Prog Nos and 1522.) The proposed change would also maximise use of Central Government support for tenants. Assuming the new units are similar to current units and are built on Council land, we could build approximately 20 new units over the ten years. We are also proposing to introduce a voluntary building Warrant of Fitness for all rental housing across the city. Options and Implications Option 1 Option 2 Options City implications Financial implications Set rent at market rates for new tenants and use the surplus to build more units This is our preferred option An increase in the number of Council housing units that are fit for purpose. New tenants in Council units would pay market rent No ratepayer subsidy and a surplus of $2m over 10 years which will be used to service the loans required to construct approximately 20 additional units Status quo continue to provide and renew 320 units at subsidised rents to tenants. Don t build more units No new Council housing units. Current and new tenants receive subsidised rentals A ratepayer subsidy of $1.9m over the 10 years. This equals $5.10 p.a. to the average residential rate What do you think about Council s proposal to move to market rents so we can build more units? Remember: any change to market rent will not apply to our current tenants. thebigpicture.pncc.govt.nz 12 What's the BIG picture? Small City Benefits, Big City Ambition

13 Our Role in Growth, Infrastructure and Housing Development Palmerston North s house prices have increased over the last few years, following the national trend, but we are still affordable. To assist with and keep this affordability, we are making good land-use planning and infrastructure provisions now, for our future. We are considering further reducing the risk of rapid house price rises by developing some of our own land at Whakarongo for housing (Prog Nos 1485 and 1511). This involves building the subdivision infrastructure like roading, water, and wastewater and offering affordable sections to the market. The Council has done this in the past, for example, Waterloo Crescent and Dahlstrom Grove, and this has the potential to provide many benefits, including providing more housing choice for potential purchasers as well as revenue for Council. It will also allow us to lead by example in providing good urban design for new subdivisions. There is always a relatively high level of risk in new subdivisions, and we will look at a staged approach rather than creating an entire subdivision at once, providing more flexibility and less risk. Options and Implications Options Option 1 Option 2 Option 3 Option 4 Develop the subdivision by creating the infrastructure and selling the sections for someone to build on. This is our preferred option as it best achieves the goal of providing increased choice, competition and revenue with the least overall risk Sell the land to a developer, who will then subdivide and provide the infrastructure themselves Develop the subdivision in partnership with a developer by jointly providing infrastructure within the subdivision and then selling the sections for someone to build on Let us know by 23 April 2018 Develop the subdivision by providing infrastructure within the subdivision, building the houses, and then selling the houses and sections Sustainable Growth Catalyst Projects City implications An increase in the number of sections available, ensuring more choice in the market. An increase in the number of sections available but timing will be at the developer s discretion An increase in the number of sections available An increase in the number of sections available Financial implications The Plan currently assumes the subdivision will produce a net return of over $10m over 10 years and this has been used to reduce the debt required for other programmes Lower risk but lower net return Lower risk but lower net return Higher costs and risk to the Council. Uncertain net return For more information go to thebigpicture.pncc.govt.nz What do you think? Do you agree with our preferred option? How important is affordable housing for you? Do you think this is the right way of looking at it? In all of these options the Council is responsible for providing the infrastructure up to the subdivision boundary. thebigpicture.pncc.govt.nz Te Kaunihera o Papaioea Palmerston North City Council 13

14 City Centre Catalyst Projects City Centre Streetscape Redesign Plan and Projects The world s most exciting cities have one thing in common a vibrant city centre enjoyed by locals and visitors alike. We have a City Centre Streetscape Plan to achieve just that. It consists of eight linked projects that will emphasis pedestrian friendly public spaces, cultivate and attract a lively economy after 5pm, and attracting more private investment in the city centre. Location Square East Prog No. 244 Broadway Prog No Proposed actions wider footpaths, seats and social spaces to encourage foot traffic on this important retail link between The Plaza and Broadway easier pedestrian access to The Square parking that can be used for pop-up markets, extra seats or green space social space with a raised area outside the Regent wider footpaths on the southern side able to be closed to traffic for markets and events restaurants and cafes can spill out into the street trees and planting possibly a pop-up canopy for shade and shelter Proposed timing Cost $6,503, $5,971,000 Main St East Prog No. 243 Rangitikei St Prog No Square West Prog No. 209 Church St Prog No. 247 Square North Prog No. 248 Inner Square Prog No safe convenient bus terminal better visual and pedestrian connections with The Square trees and seats, with open space for cafes and retail to spill out into the street tree-lined boulevard for a greener entrance to the city centre two-lane roadway, with space for trees, plants, and people wider footpaths and more space for cafes and bars simpler and safer Main St intersection for people on bikes and foot social space for meeting and gathering narrow roadway to one lane in either direction and a planted median strip wider footpaths and better pedestrian access to The Square tree-lined boulevard and planted median strip safer places to cross the road narrow roadway to one lane in either direction inter-regional bus terminal new shelter to link to the i-site and public toilets scope to add space for cafes and shops flexible area for events easier for buses and cars to move around $6,623, $978, $4,651, $3,917, $2,624, $683, What's the BIG picture? Small City Benefits, Big City Ambition

15 Options and Implications Options City implications Option 1 Option 2 Option 3 Option 4 Complete projects in this order This is our preferred option A staged, efficient approach to a more vibrant and thriving city centre that addresses the most important areas first. Potential to streamline projects by using one contractor Complete these projects in a different order This could be over a shorter or longer time May not achieve a staged, prioritised approach. If completed in a shorter period, we may need to use more than one contractor, which could add to costs Complete only one or two of the projects This would lead to the city having an inconsistent look and feel in the city centre and a less vibrant and thriving centre Do no improvement projects The city centre would be maintained but a lack of improvements may lead to stagnation and a poor city image City Centre Catalyst Projects Financial implications The Plan includes provision for $31.9m of capital expenditure which would initially be funded from debt. Once complete this would add approximately $74 p.a. to the average residential rate (to service and repay debt). Each $10m of capital expenditure adds approximately $23 p.a. to the average residential rate, so if fewer of the projects are done the increase in rates would be lower than $74 p.a. So, if the Council only did Broadway and the Inner Square, the cost would be $6.7m and the cost on the average residential rate would be $23 x (6.7/10) = $15.40 p.a. For more information go to thebigpicture.pncc.govt.nz What do you think? Do you agree with our preferred option? How important is a vibrant city centre to you? thebigpicture.pncc.govt.nz Let us know by 23 April 2018 Te Kaunihera o Papaioea Palmerston North City Council 15

16 City Centre Catalyst Projects Library of the Future Council originally consulted on a concept plan for a Library of the Future in order to understand the community s aspirations. The project included a wide range of improvements, including a new entrance via a café directly from The Square, more focus on new digital technologies, an upgraded children s section and having more community activity in the library. It is about ensuring that the library can remain the Living Room of the City, an active and vibrant space for our diverse community. It is too early for us to consult on specific options for this, but in the meantime do you have any comments? Planning for the upgrade has shown that Council needs to do more assessment of the building and its fixtures and fittings before awarding a contract for the redevelopment. This is a prudent approach to ensure that we don t find unexpected problems behind the walls when the work starts. It will also ensure that we can have greater confidence in the long term sustainability of the significant heritage building that is home to our Central Library. We have put $7.7m in the budget over the next three years to replace components of the building s infrastructure that are worn out and for Library of the Future (Prog No. 1518). The results of the building assessment will be available around May and will inform the development of a full schedule of work. This will enable us to prudently plan the works and meet the community s aspirations, rather than revise the concept itself. Hence, at this stage we do not have specific options to consult on but we are still interested in your views. Let us know by 23 April What's the BIG picture? Small City Benefits, Big City Ambition

17 Te Manawa 2025 Redevelopment The Council wants to see Palmerston North positioned as a national, and even international, arts powerhouse. Te Manawa Museum of Art, Science and History is key to achieving this vision. Te Manawa is run by Te Manawa Musuems Trust. The Council owns the buildings and gives the Trust an annual grant ($3.1m this year). The Trust has a proposal to redevelop the facility. This would expand Te Manawa s regional and national profile through enhanced visitor experiences, including blockbuster exhibitions with greater accessibility to collections and the use of more exciting technologies. The Trust will raise most of the funds for this $69m project ($58m excluding inflation) with Council considering a contribution of $17.9m in ($15m excluding inflation) towards the project, conditional on the Trust raising the remaining funds (Prog No.1460). Council will also provide the Trust with $153,000 between to help develop the project. A part of this project includes earthquake strengthening work, which must be done to the building. If it is decided not to go ahead with the major upgrade, the Council will still need to spend $4m on earthquake strengthening. If the redevelopment goes ahead, this earthquake proofing will be integrated into the project and will be covered by both the Council s contribution and the Trust s fundraising. City Centre Catalyst Projects Options and Implications Option 1 Option 2 Option 3 Options Contribute $17.9m to the project (as long as the Trust can raise all the rest). This is our preferred option Contribute a lesser amount Maintain status quo by spending $4m on earthquake proofing the current buildings City implications Palmerston North would have a nationally significant museum, with part-funding from Council and the majority of funding for the project coming from fundraising This would depend on how much the Trust could raise, although realistically the project would be scaled down Status quo exhibition space, with earthquake strengthening to the buildings Financial implications The Plan includes provision to borrow $17.9m to fund the Council s proposed share of the capital cost of the work. Once complete this would lead to an increase of $41 p.a. in the average residential rate. If the Council s contribution was a lower amount (say $10m) then the increase in the average residential rate would be less $23 p.a. (in this case). At this stage no provision has been made to fund any additional operating costs of an enhanced facility. For more information go to thebigpicture.pncc.govt.nz What do you think? Do you agree with our preferred option? This project fits Council s goals but is being driven by the Te Manawa Museums Trust. The key issue for Council is should we support it and, if so, how much should we contribute? thebigpicture.pncc.govt.nz Te Kaunihera o Papaioea Palmerston North City Council 17

18 City Centre Catalyst Projects Central Energy Trust Arena Masterplan and Projects Palmerston North s Central Energy Trust Arena is the lower North Island s regional sports and events hub. It is a multi-purpose centre and caters for many different sporting codes, community activities, trade shows, exhibitions, conferences, and concerts. While there are fit for purpose facilities within the Arena, for some years there has been identified areas that could be improved. Partnerships are an important part of our work and we have also identified an opportunity to create better synergies by basing Sport Manawatū and other sports organisations at Central Energy Trust Arena. The Master Plan for Central Energy Trust Arena was released last year and includes the following projects: Some of the projects, as indicated, are dependent on external funding such as donations, grants and sponsorship. Location All weather pitch Prog No 1082 Proposed actions Proposed timing Installing an all-weather playing field $1,400,000 Cost Includes $700,000 of non-council funding Speedway pits Prog No 1082 Cuba St Entrance Plaza Prog No 1083 New Southern Grandstand Prog No 990 Sport House Prog No 1430 Western Embankment Concourse Prog No 1083 Relocating and improving the speedway pits to provide space for the new entrance plaza A new open plaza entrance way and concourse that links the city centre and Arena, and makes it easier to find your way to events and activities held there A covered grandstand on the Cuba St side of the speedway / rugby field Sport Manawatū is proposing to build and own office space for itself and other sports organisations at the Arena. Council is proposing to make a contribution to this A link (on the Pascal St side) between the new and existing grandstands to provide better access between them, and improved viewing of the speedway / rugby field $7,074,000 Includes $1,015,000 of noncouncil funding $5,725, $9,267,000 Includes $6,317,000 of non-council funding $1,548,000 (opex) $1,900,000 Let us know by 23 April What's the BIG picture? Small City Benefits, Big City Ambition

19 Options and Implications Options City implications Option 1 Option 2 Option 3 Option 4 Complete projects in the suggested order. This is our preferred option This would ensure a staged approach to developing the Central Energy Trust Arena as a multi-purpose hub for sport and recreation The most important areas needing improvement would be addressed first Complete projects in a different order and / or timing May not have a staged, prioritised approach Complete only one or two of the projects This could lead to the facility not meeting some sport and spectator expectations Do no improvements projects The facility would be maintained but with a lack of improvements means might not meet sporting and spectator needs City Centre Catalyst Projects Financial implications The Plan includes provision for $25.4m of capital expenditure, $8m of which it is assumed would be funded from external sources and the balance from debt. Once complete this would add approximately $40 p.a. to the average residential rate (to service & repay debt). Each $10m of capital expenditure funded by the Council adds approximately $23 to the average residential rate, so if fewer of the projects are done the increase in rates will be lower than $40 p.a. For more information go to thebigpicture.pncc.govt.nz What do you think? Do you agree with our preferred option? Should we upgrade the Central Energy Trust Arena? Why do you say this? thebigpicture.pncc.govt.nz Have we got the right projects in the right order at the right time? Te Kaunihera o Papaioea Palmerston North City Council 19

20 Manawatū River Network Catalyst Projects Victoria Esplanade Masterplan and Manawatū River Projects Victoria Esplanade is Palmerston North s premier park and holds a special place in the hearts of many residents. Over 600,000 people visit it every year. The Council is developing an Esplanade Masterplan to guide its development over the next ten years, with a focus on prioritising pedestrian friendly links between the Esplanade and the river. The Masterplan will also link the Central Energy Trust Wildbase Recovery Centre (expected to open in August 2018), the He Ara Kotahi bridge (expected to open in April 2019) and the Junior Road Safety Park (opened in December 2017). These projects are also part of the Manawatū River Network enhancements. We are carrying out more detailed consultation on the Masterplan (For more information go to thebigpicture.pncc.govt.nz) but also want to know through the 10 Year Plan what priority you put on the development of the Esplanade. Is it really important to you? For now, we have a project in the 10 Year Plan to improve the Cook St / Park Rd intersection / Esplanade entranceway (Prog No 1081 and 324, $1,486,000 in ). We also have a total of $1,942,000 in the Plan (Prog No. 1454, in years 2, 4, 6 and 8-10) to make other improvements within the Esplanade, so it is more pedestrian-friendly. Other programmes related to the Esplanade and River are: 752 Manawatū River Framework Implementation develop a linear park along the riverside so that each year there will be more things to do and more people will spend more time there. This includes work at Ahimate (Waitoetoe) Park , $4,773, Te Motu o Poutoa / Anzac Park Reserve Development work with Rangitāne to develop this area in a way that reflects its historic and cultural significance , $756, City Reserves - Ashhurst Domain development provide additional recreational opportunities , $601, Te Apiti Masterplan (Manawatū Gorge) Council s contribution towards improving recreation, biodiversity, cultural and educational opportunities at this unique location , $100,000 per year 1127 New Bonsai House - construct a permanant home adjacent to the conservatory for the Bonsai collection , $110,000 Options and Implications Option 1 Option 2 Option 3 Option 4 Options Complete the Esplanade entranceway improvements in the short term, with other improvements in the medium to long term Complete the other Esplanade and river projects as scheduled above Our preferred option Complete all suggested projects, including the Esplanade entranceway improvements and other pedestrian improvements at the same time, i.e. in the short term Only complete some of the projects Status quo with no improvements City implications A safer and clearer entranceway in the short term, with a more staged approach to other Esplanade improvements to determine best options based on the first round of improvements Ensures all improvements are completed earlier This would depend upon which projects as described above The Esplanade would be maintained but this would not improve visitor experience to Esplanade and Riverside Financial implications The Plan includes provision for $9.6m of capital expenditure which would initially be funded from debt. Once complete this would add approximately $22 p.a. to the average residential rate (to service and repay debt). Each $1m of capital expenditure adds approximately $2.30 to the average residential rate, so if fewer of the projects are done the increase in rates will be lower than $22. Remember, there is also a separate Victoria Esplanade Masterplan consultation. For more information go to thebigpicture.pncc.govt.nz Esplanade: Should we make these entranceway and pedestrian improvements in the Esplanade? If yes, in the short-term or spread them out a bit? thebigpicture.pncc.govt.nz 20 What's the BIG picture? Small City Benefits, Big City Ambition

21 Active Transport: Walking and Cycling Walking, cycling and running are all popular and healthy recreation activities in and around Palmerston North, and offer great green modes of transport. We want to encourage a strong culture of walking and cycling (along with public transport) for both recreation and commuting purposes. You will have seen a lot of effort already put into creating shared walking and cycling pathways recently, especially alongside the River. This includes the He Ara Kotahi shared pathway between the main urban part of the City and Linton (to be finished April 2019). This plan continues this through these programmes: Summerhill Drive pedestrian and cycle improvements: $1,103,000, ( ) Aokautere Drive pedestrian and cycle improvements: $1,048,000, ( ) Manawatū river (Ashhurst to Riverside Drive) cycle / pedestrian pathway: $656,000, ( ) Riverside Drive to Railway Rd cycle / pedestrian pathway: $1,659,000, ( ) PN Bunnythorpe cycle / pedestrian pathway: $2,833,000, ( ) Park Rd (Fitzherbert Ave-Katane St) cycle / pedestrian improvements: $554,000, ( ) Whakarongo Napier Rd cycle / pedestrian pathway: $908,000, ( ) Napier Rd (SH3) / Roberts Line intersection pedestrian and cyclist safety upgrade: $1,062,000, (2023) Manawatū River Network Catalyst Projects Of course, we also support walking and cycling through other projects including Bikes in Schools, the Junior Road Safety park, and providing on road cycleways and bike stands. Options and Implications Financial implications Our preferred option is to do all these projects for their environmental, recreation and health benefits. They also contribute to the city-wide network of cycling and walking links. However, we could do fewer of them, do them over a longer a period or do none at all. The Plan includes provision for $9.8m of capital expenditure, $1.4m of which would be funded by NZTA. The balance would be from Council debt. Once complete this would add approximately $19 p.a. to the average residential rate (to service and repay debt). Each $1m of capital expenditure adds approximately $2.30 to the average residential rate, so if fewer projects are done the increase in rates will be lower than $19 p.a. What do you think? Do you agree with these projects and the timing of them? If we change their timing, it will change the impact on rates each year. Remember that $1m of capital expenditure adds approximately $2.30 to the average residential rate. thebigpicture.pncc.govt.nz Let us know by 23 April 2018 Te Kaunihera o Papaioea Palmerston North City Council 21

22 Other Consultation The Living Wage The Council is considering paying permanent staff the Living Wage from year 2 of the 10 Year Plan. The Living Wage is set nationally each year and is currently $20.20 per hour. At present, Council s minimum hourly rate is $17.50 per hour. We estimate that introducing the Living Wage for permanent staff earning below $20.20 per hour could cost between $325,000 and $1.3m p.a., depending on the extent to which the increase flows on to other staff to maintain relativity between wage rates. This would add between $9 and $35 per year to the average residential rate. For more information see thebigpicture.pncc.govt.nz The proposed 10 Year Plan does not provide funding for paying the Living Wage. The Council has no fixed view on this. We are interested in your views and will consider the results of feedback as we finalise the Plan. Projects Considered but Not Funded There are many other projects that we have considered but not included in this plan. We d like them too, but the number of projects we would like exceeds our ability to pay. We are particularly keen to hear your views on the following projects that are not included: A trial kerbside food waste recycling collection (Prog No. 1370, $472,000 (operating) in ) Subsidising pre-school children and off-peak adult admission to swimming pools as a trial to see if it leads to increased use of the pools. This would cost $75,000 (operating) for each of the next three years. (Prog No. 1434) Realigning and widening the five dips part of Kelvin Grove Road (between Stoney Creek Rd and Henaghans Rd) to improve safety (Prog No. 159, $3,028,000 capital) in ) Purchasing land at Riverside Drive (off Te Matai Rd) for a cycle criterium track, river entranceway and wetland biodiversity area (Prog No. 1456, $167,000 (capital) in ). These are not in the proposed Plan. Should we add them? Every $1m of capital expenditure adds approximately $2.30 to the average residential rate. Every $1m of operating expenditure adds $27 to the average residential rate. If you think we should add a project/s, are there any projects you think we should leave out of the plan, or is this in addition to what we have planned? You can find a complete list of the projects considered but not funded in our Plans. For more information go to thebigpicture.pncc.govt.nz thebigpicture.pncc.govt.nz 22 What's the BIG picture? Small City Benefits, Big City Ambition

23 Other Consultations We are also seeking your feedback on several other policies and issues: Esplanade Masterplan See page 20 of this document for more information. Significance and Engagement Policy This sets out how we will involve people in our decision making. Our aim is to have as many people as possible, across a variety of sectors, involved in a wide range of decisions. We need to ensure that we make our information relevant, accessible and easy to understand so that you can have your say. We review the Policy every three years to ensure it is still meeting peoples expectations. If you have any comments about the Policy please include them with your submission. Revenue and Financing Policy This explains how each of the Council s Activities (services) will be funded in particular whether they will be funded by rates or fees. Other Consultation Development Contributions Policy Amendments This explains how developers will be charged for infrastructure capacity improvements due to growth. We are proposing only minor amendments. These will improve the administrative efficiency and clarity of the Policy, create development contribution areas for new locations, and align the Policy with the 10 Year Plan and City Development Strategy growth projections. Unreinforced Masonry Earthquake-Prone Building: Priority Roads, Footpaths and Thoroughfares Consultation This identifies unreinforced priority buildings that will need to be strengthened or demolished in a shorter timeframe, based on a higher number of people and/or vehicles being located near them. Council Strategies and Plans These show more details on how Council intends to achieve its vision and goals. You can comment on these through your 10 Year Plan submission For more information go to thebigpicture.pncc.govt.nz Let us know by 23 April 2018 Te Kaunihera o Papaioea Palmerston North City Council 23

24 Finances Financial Strategy The Big Picture The Council has assets with a replacement value of over $1.7 billion which are generally in good condition and are sized appropriately to cope with significant city growth Our current debt levels are moderate for a regional New Zealand city (especially given the range and quality of services provided) Rates levels are comparable with districts of our size in New Zealand We are planning for high population and household growth over the next 10 years and medium growth beyond Year 10 with adequate appropriately zoned land to cope with the first 10 years of growth The Council believes it is necessary to invest in new improved catalyst projects to meet its vision and goals for the city The requirement to update the city s wastewater treatment and disposal system provides the greatest single challenge to the long term financial sustainability of the Council. At the present time it has been assumed an acceptable option will be obtained for $110m (plus inflation) but there is a high level of risk it could cost more than this In order to fund existing council services and key projects we are proposing in this Plan, including new capital expenditure of $506.8m, our rates and debt levels will need to increase debt increasing from a forecast $109m to $349m To help manage the additional debt we are proposing that rates be increased now to enable the term of our debt to reduce from 30 to 20 years this would mean $45m more of the debt would be repaid over the 10 years than was originally planned. Paying down the debt faster reduces the interest cost (much like a mortgage) Total rates would need to increase by 6.4% in 2018/19, 5.6% in 2019/20, 5.8% in 2020/21 and increases of between 2.6% and 6.6% in each of the following seven years What is it proposed that money will be spent on? What are the proposed sources of funds? 3 % 6 % 8 % 1 % 7 % 14 % 49 % 14 % 59 % 18 % 21 % Operations & Maintenance Finance Costs Loan repayment Capital Expenditure - to meet additional demand Capital Expenditure - to improve the level of service Rates Subsidies & Grants Fees, Charges, Sales & Other Income Development Contributions Additional Loans Capital Expenditure - to replace existing assets Refer to page 39 for the proposed 10 Year Budget at a Glance. 24 What's the BIG picture? Small City Benefits, Big City Ambition

25 Debt The Council needs to borrow to fund major new capital developments in the same way as individuals do when they need a new home or car. Our debt is also a way of sharing the costs of these projects across both current and future generations who will also benefit from these projects. To help decide the maximum level of borrowing that is sustainable, the Council proposes to adopt the following policy limits: BORROWING LIMITS Net external debt as a percentage of total assets Net external debt as a percentage of total revenue POLICY MAXIMUM FORECAST LEVEL AT 30 JUNE 2019 FORECAST MAXIMUM DURING 10 YEARS <20% 8.4% 17.1% 16.3% <200% 111% 205% 190% FORECAST LEVEL AT 30 JUNE 2028 Financial Strategy Net interest as a percentage of total revenue Net interest as a percentage of annual rates income <15% 5.8% 11.2% 10.8% <20% 7.5% 14.1% 13.5% Liquidity >110% 128% 128% 111% We are proposing to increase the policy maximum for the net external debt as a percentage of total revenue ratio to 200% (from the previous level of 175%). This is considered appropriate to enable the Council to borrow the amounts which are projected to be necessary to undertake the proposed capital development programme and in particular the significant upgrades which are required to the wastewater treatment plant. At this stage there is a high level of uncertainty over the likely costs for the plant upgrade and the ongoing operating costs thereafter. As the various options for this project are developed and costed they will be built in to our budgets. This could lead to us reconsidering our debt and rates policy limits and our priorities for other projects. All of this will be done in consultation with residents. The debt to total revenue ratio limit of 200% is exceeded in one year of the Plan. Given the level of uncertainty in relation to the forecast costs the Council has determined that for the time being the forecast programme of capital development and the consequential borrowing requirements are appropriate. Net Debt to Revenue Percentage 300% 250% 200% 150% 100% Net Debt to Revenue (Proposed) Net Debt to Revenue (if Wastewater project costs $100m more - see page 11) Proposed Policy Max 50% 0% 18/19 19/20 20/21 21/22 22/23 23/24 Years 24/25 25/26 26/27 27/28 Current Policy Max Nebt Debt = total debt less cash and short term investments. Net interest = interest costs less interest income. Te Kaunihera o Papaioea Palmerston North City Council 25

26 The proposed capital expenditure over the 10 years of $765m is made up of $258m for renewing present assets and $507m for building new assets. In order to fund capital expenditure, the Council will need to borrow an additional $377m. During the same period, $128m will be raised through rates to allow us to repay some of our debt. This means the Council s debt is forecast to increase from $109m to $349m over the 10 years. This is based on the assumption that the borrowing for the wastewater treatment project will be $128.8m. Remember it could be more than this. Financial Strategy $400 Net Debt Forecast $350 Millions $300 $250 $200 Net Debt Forecast $150 $100 18/19 Rates 19/20 20/21 21/22 22/23 23/24 Years 24/25 25/26 26/27 27/28 In order to fund existing council services and the key projects we are proposing in this Plan to deliver on our vision, rates will need to increase. The rates increase includes the cost of our proposal to pay down our debt faster to deliver significant long term savings from paying less interest (just like a mortgage). We are proposing to reduce the term of our debt from 30 to 20 years. This saving can in turn be put to use on other projects to deliver on our vision. We are committed to ongoing identification of innovations and efficiencies that enable us to minimise rates increases, while still delivering for our community. This aim to keep rates increases as low as possible has to be balanced with the need to continue to fund the maintenance and renewal of key city infrastructure and the need to plan for a higher level of debt repayment to create sufficient capacity to service debt associated with any future high priority capital programmes. Over the 10 year period the Council s aim is to limit rates as follows: Total rates 1 will increase by no more than the Local Government Cost Index (LGCI) 2 : plus the growth in the rating base plus 2% (to fund increasing asset renewal costs and new services) plus an allowance for accelerated debt repayment 3. Total rates will be no more than 2% of the city s rateable land value. 1 Total rates excludes rates on Council properties but includes metered water revenue. 2 LGCI is an overall cost index developed by BERL for local authorities. It is based on the cost structures of local authorities and includes operating expenditure and capital expenditure variables. The forecast LGCI used in this Plan is that published by BERL in September This allowance reflects the effect on rates of the additional debt the Council has decided it is prudent to repay earlier than had been previously planned (i.e. by repaying over a maximum of 20 years rather than 30 years). For 2018/19 this is the equivalent of 1.7% of total rates. 26 What's the BIG picture? Small City Benefits, Big City Ambition

27 The proposed increases in total rates each year are shown in the following graph. Proposed Rates Increases Percentage 10% 8% 6% 4% Rates Increase (Proposed) Rates Increase (if Wastewater project costs $100m more - see page 11) Financial Strategy 2% Proposed Policy Max 0% 18/19 19/20 20/21 21/22 22/23 23/24 Years 24/25 25/26 26/27 27/28 At this stage the proposed 10 Year Plan does not achieve the Council s policy aims for some of the years. To meet its vision and goals for the city, the Council believes rates need to increase by more than its policy limit at least in the short term and then again when the full impact of the proposed upgrade to the wastewater treatment and disposal system takes effect. The actual increase each year will be determined in the light of updated circumstances and the development of the Annual Plan. Rates are made up of two parts, a fixed part which is the same for each property and a variable part based on the land value. For 2018/19 the fixed part ($1,413 for residential properties) is proposed to be made up of the following: CHARGE TYPE CHARGE 2017/18 CHARGE 2018/19 WHAT IT PAYS FOR Water $273 $272 Pays for the cost of providing water Wastewater $246 $250 Pays for the cost of treating and disposing of wastewater Kerbside Recycling $128 $126 Pays for the cost of kerbside recycling Rubbish & Public Recycling $60 $65 Pays for general rubbish & recycling costs including transfer stations, cleaning up fly tipping, community education General (UAGC) $630 $700 Contributes to paying for all other Council services and acts as a way of ensuring that all properties contribute a more equal share of the cost rather than it all being based on the land value For residential properties, each of the above fixed charges (except for the general charge) is based on the number of separately used or inhabited part. The variable part (based on the land value) varies depending on the nature of the use of the property. It is proposed that the definitions of each of the types of use will be changed in an effort to make them easier to understand and administer. These changes will not affect most properties. A few, particularly those which are vacant, may be classified in a lower rated group than they currently are. Te Kaunihera o Papaioea Palmerston North City Council 27

28 Rates examples Examples of proposed rates for 2018/19 are shown in the following table: Financial Strategy General Rates $ (including UAGC) Targeted Rates $ Single Unit Residential Land value Land value Land value Land value $101,000 $128,000 $147,000 $175,000 Quartile 1 Median Average Quartile 3 1,501 1,715 1,866 2, General Rates $ (including UAGC) Targeted Rates $ Two Unit Residential Land value Land value Land value Land value $113,000 $139,000 $160,000 $185,000 Quartile 1 Median Average Quartile 3 2,069 2,384 2,638 2,941 1,426 1,426 1,426 1,426 Total Rates $ 2,214 2,428 2,579 2,801 Total Rates $ 3,495 3,810 4,064 4,367 Increase $ over 2017/ Increase $ over 2017/ Non-Residential (Commercial/Industrial) # Miscellaneous Land value Land value Land value Land value Land value Land value Land value Land value $180,000 $315,000 $574,000 $640,000 $113,000 $235,000 $395,000 $475,000 Quartile 1 Median Average Quartile 3 Quartile 1 Median Average Quartile 3 General Rates $ (including UAGC) 5,243 8,650 15,187 16,852 General Rates $ (including UAGC) 1,841 3,072 4,688 5,495 Targeted Rates $ Targeted Rates $ Total Rates $ 5,558 8,965 15,502 17,167 Total Rates $ 1,906 3,137 4,753 5,560 Increase $ over 2017/ ,042 Increase $ over 2017/ Rural/Semi-serviced (between 0.2 & 5ha) Rural/Semi-serviced (5ha or more) Land value Land value Land value Land value Land value Land value Land value Land value $180,000 $220,000 $224,000 $260,000 $235,000 $350,000 $643,000 $680,000 Quartile 1 Median Average Quartile 3 Quartile 1 Median Average Quartile 3 General Rates $ (including UAGC) 1,354 1,499 1,514 1,645 General Rates $ (including UAGC) 1,056 1,230 1,674 1,730 Targeted Rates $ Targeted Rates $ Total Rates $ 1,419 1,564 1,579 1,710 Total Rates $ 1,121 1,295 1,739 1,795 Increase $ over 2017/ Increase $ over 2017/ # Non-residential examples do not include any rates for wastewater based on the number of toilet pans or water charged by meter. The proposed charge per pan is $250. Metered water is charged on the basis of a fixed amount (depending on the size of the connection) and the balance by the volume used. It is proposed to increase the fixed amount for smaller connections by a significant amount so that such users pay a minimum amount similar to the charge made to residential users. 28 What's the BIG picture? Small City Benefits, Big City Ambition

29 Infrastructure One of the Council s major roles is providing and maintaining the city s infrastructure. This covers transport, stormwater, wastewater, water, property and recreational assets. These all underpin economic and social activity and help maintain the health of the environment. The total replacement cost of this infrastructure is $1.7 billion. The bulk of this infrastructure is in the early to mid-phase of its life and in a good condition, and surveys have shown that most people are satisfied with Council s infrastructure. Nevertheless, it is still expensive to look after, and we currently spend around $14 million a year renewing it. This will gradually increase as the infrastructure ages and as we build more. We also need to replace some older water pipes in the next few years to reduce maintenance costs. We expect to spend an average of $18.6m a year (present day cost) over the next 30 years to keep the assets in a good condition. The Council has significant decisions to make about its infrastructure over the next years. The single biggest is the wastewater treatment plant upgrade (see page 11). Other include providing a further river crossing and regional freight ring road, and developing new infrastructure for growth, encouraging alternative transport modes, city centre streetscape, Manawatū River Framework, Central Energy Trust Arena, Te Manawa, Library of the Future, and use of Council land for housing - are covered earlier in this document. Other issues include: Infrastructure Strategy Resilience of infrastructure - following the Christchurch earthquakes councils are putting increased focus on understanding and improving the resilience of their core infrastructure. We have reviewed the possible impact of earthquakes and floods on our infrastructure, particularly for roading, water and wastewater. Generally our infrastructure has the ability to withstand major earthquakes and floods. In some cases remedial work is required (eg the Milson Line Overbridge in , $6.7m). Some more detailed seismic assessments are scheduled for the Turitea Dam. Security of water supply - Palmerston North has a generally good water supply. It comes primarily from the Turitea dam and is supplemented by bores across the city. In recent years summer droughts have led to the need for gardening water restrictions to ensure that residents and businesses have enough water for consumption and sanitation. Central Government is also reviewing the NZ Drinking Water Standards following last year s issues in Havelock North. The 10 Year Plan includes funding to refurbish the water bores, duplicate the pipeline between the water treatment plant and the reservoirs supplying the urban areas, and provide extra treatment to meet the expected new standards. Impact of climate change the Council has a target of reducing greenhouse gas emissions in Palmerston North by 25% by To do this we are improving the energy efficiency of our infrastructure, making more use of trees and natural systems, and using new technologies like LED lighting. We are providing more infrastructure to enable people to make low-carbon choices, particularly in transport. We are also improving our stormwater network so it can better handle more frequent heavy rainfall, and the impact of infill development. The most significant infrastructure projects proposed for years 11 to 30 include: PROJECT $m $m $m $m Additional River Crossing Infrastructure for Urban Growth - City West Central Energy Trust Arena Enhancements 34 8 Water Treatment Plant and Network Road Improvements Stormwater Improvements For more information go to thebigpicture.pncc.govt.nz Te Kaunihera o Papaioea Palmerston North City Council 29

30 How your money is spent - the average residential ratepayer The Council divides its services into activities. This shows the weekly costs (including interest & debt repayment) of the Council s services for the average residential ratepayer (2018/19). The BIG Picture $0.42 Animal control & Public health Animal control, public health $0.22 Cemeteries Cemeteries & crematorium $0.40 Civil defence & Safer community Civil defence & safer community initiatives 0.80% $8.43 Active community Central Energy Trust Arena, reserves, sportsfields, swimming pools, support to recreation groups, public toilets 0.85% 0.44% 17.01% 2.84% 2.50% 2.80% $1.41 Economic development Economic development, international relations, conference & function centre 7.40% $1.24 Community support Community centres, support to community groups & social housing 2.02% $1.39 $3.67 Rubbish and Recycling Refuse & recycling, waste minimisation $1.00 Active public space Community, commemorative & economic events, place activation City development Building & planning services, heritage management & urban design 30 What's the BIG picture? Small City Benefits, Big City Ambition

31 $3.25 $4.30 Leadership Mayor & Councillors, Council meetings, consultation, plans (including District Plan) & strategies, iwi relationships 8.67% $7.44 Transport Roads, footpaths, shared pathways, streetlights Arts, Culture & Heritage Arts, culture & heritage facilities (including Te Manawa, Regent) & support 6.55% $4.37 Libraries City & branch libraries, mobile library, youth space 8.81% $0.37 Biodiversity & Sustainable practices Biodiversity, sustainable practices The BIG Picture 0.75% 15.00% 0.41% 9.70% 10.55% $0.20 Corporate support Corporate support, commercial or strategic investment Council services and household costs $4.81 Wastewater Collection, treatment and disposal The weekly cost of Council s services compared with these other household costs Cost per week Phone / internet $31 Electricity $38 Milk, Cheese and Eggs $15 $49.59 per week for average ratepayer $5.23 Water Treatment, storage, distribution 2.90% $1.44 Stormwater Flood protection* * Horizons Regional Council is responsible for Manawatū River and Mangaone Stream flood protection Te Kaunihera o Papaioea Palmerston North City Council 31

32 Audit Report Independent auditor s report on Palmerston North City Council s Consultation Document for its proposed Long-Term Plan I am the Auditor-General s appointed auditor for Palmerston North City Council (the Council). Section 93C of the Local Government Act 2002 (the Act) requires an audit report on the Council s consultation document. We have done the work for this report using the staff and resources of Audit New Zealand. We completed our report on 5 March Opinion In my opinion: the consultation document provides an effective basis for public participation in the Council s decisions about the proposed content of its long-term plan, because it: fairly represents the matters proposed for inclusion in the long-term plan; and identifies and explains the main issues and choices facing the Council and city, and the consequences of those choices; and the information and assumptions underlying the information in the consultation document are reasonable. Basis of opinion We carried out our work in accordance with the International Standard on Assurance Engagements (New Zealand) 3000 (Revised): Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. In meeting the requirements of this standard, we took into account particular elements of the Auditor-General s Auditing Standards and the International Standard on Assurance Engagements 3400: The Examination of Prospective Financial Information that were consistent with those requirements. We assessed the evidence the Council has to support the information and disclosures in the consultation document. To select appropriate procedures, we assessed the risk of material misstatement and the Council s systems and processes applying to the preparation of the consultation document. We did not evaluate the security and controls over the publication of the consultation document. Responsibilities of the Council and auditor The Council is responsible for: meeting all legal requirements relating to its procedures, decisions, consultation, disclosures, and other actions associated with preparing and publishing the consultation document and long-term plan, whether in printed or electronic form; having systems and processes in place to provide the supporting information and analysis the Council needs to be able to prepare a consultation document and long-term plan that meet the purposes set out in the Act; and ensuring that any forecast financial information being presented has been prepared in accordance with generally accepted accounting practice in New Zealand. I am responsible for reporting on the consultation document, as required by section 93C of the Act. I do not express an opinion on the merits of any policy content of the consultation document. 32 What's the BIG picture? Small City Benefits, Big City Ambition

33 Independence In carrying out our work, we complied with the Auditor-General s: Audit Report independence and other ethical requirements, which incorporate the independence and ethical requirements of Professional and Ethical Standard 1 (Revised); and quality control requirements, which incorporate the quality control requirements of Professional and Ethical Standard 3 (Amended). Other than our work in carrying out all legally required external audits, and an engagement in the area of assurance review of the Council s Debenture Trust Deed, which is compatible with those requirements, we have no relationship with or interests in the Council or any of its subsidiaries. Karen Young Audit New Zealand On behalf of the Auditor-General, Wellington, New Zealand Te Kaunihera o Papaioea Palmerston North City Council 33

34 Your City, Your Say Your City, Your Say go online and read the supporting documents at thebigpicture.pncc.govt.nz facebook PNCity phone talk with a Councillor (for contact details go to pncc.govt.nz and search Talk to ) call in to a library come to a Let s Talk session attend a hearing (you can do this even if you re not making a submission) Hearings - have your say Hearings 9-16 May (To be held in the Council Chamber) Wed 9 May 9am-11am 12noon- 2pm Thu 10 May 9am-11am 12noon- 2pm Fri 11 May 9am-11am 12noon- 2pm Tue 15 May 9am-11am 12noon- 2pm Wed 16 May 9am-11am 12noon- 2pm 3.30pm- 5.30pm 3.30pm- 5.30pm 3.30pm- 5.30pm 3.30pm- 5.30pm 3.30pm- 5.30pm 7pm-9pm 7pm-9pm 7pm-9pm 7pm-9pm 7pm-9pm General Let s Talk Sessions Date Time Sessions Monday 19 March 5 pm 7 pm Council Chambers - 32 The Square, Palmerston North Wednesday 4 April 7 pm 8.30 pm Longburn Community Committee - Longburn School, Carey Street, Longburn Saturday 7 April 8 am 10 am Albert Street Market - Cnr Albert and Church Streets, Palmerston North Sunday 8 April 9 am 12 noon Central Library - 4 The Square, Palmerston North Tuesday 10 April 3.30 pm 5pm Youth Space - Cnr Coleman Mall and George Street, Palmerston North Wednesday 11 April 7.30pm - 9 pm Bunnythorpe Community Committee - Bunnythorpe School, Baring Street, Bunnythorpe Thursday 12 April 4 pm 6 pm Ashhurst Community Library - Cnr Cambridge and Bamfield Streets, Ashhurst Topic focused Let s Talk Sessions if you re passionate about any of the following please come along to have your say Focus Topic Date Time Sessions Environment Thursday 29 March 5 pm 6.30 pm Arts Wednesday 4 April 10 am am Sport and Recreation Thursday 5 April 1.30 am 3 pm Community Services Friday 6 April 10 am am Business Friday 13 April 10 am 12 noon Caccia Birch, 130 Te Awe Awe Street, Palmerston North Square Edge Community Arts - 47 The Square, Palmerston North Sport Manawatū - Central Energy Trust Arena, 61 Pascal Street, Palmerston North PN Community Services Council - Hancock Community House King Street, Palmerston North Manawatū Chamber of Commerce - Conference and Function Centre, 354 Main Street, Palmerston North 34 What's the BIG picture? Small City Benefits, Big City Ambition

35 10 Year Plan Submission Form (Including the following draft updated and new policies: Revenue and Financing Policy, Development Contributions Policy, Financial Strategy, Infrastructure Strategy) This form is for you to let us know what you think about our proposed 10 Year Plan for Please print clearly so this form can be easily photocopied, read and understood. Provide all of your contact details including postal address, phone and/or . Make it clear if you re representing an organisation by filling out the relevant field below. Preferred Title: Let us know by 23 April 2018 Mr Mrs Miss Ms Other Please circle which applies Submission Form Full Name: Name of the organisation you represent (only if applicable): Address: Phone: (mobile) (hm) (wk) Signature: Preferred dates and times: 1ST OPTION Date: 2018 Time: 2ND OPTION 3RD OPTION 4TH OPTION 5TH OPTION Date: 2018 Date: 2018 Date: 2018 Date: 2018 Time: Time: Time: Time: All submissions will be acknowledged in writing and given to the Mayor and Councillors, who will consider the views and comments expressed when finalising the 10 Year Plan. If you would like to make a personal presentation in support of your submission before a Committee of Councillors, please tell us your choices of dates and times in order of preference. Options for dates and times are listed on page 34 of the Consultation Document. As required by the Local Government Official Information and Meetings Act 1987, all submissions will be publicly available, including their placement on the Council s website, although you may request that your contact details (but not your name) be regarded as confidential. If you want your contact details withheld please let us know by ticking this box: Withhold my Contact details Send this form: submission@ pncc.govt.nz freepost 10 Year Plan Submissions, Palmerston North City Council FreePost PX33317, Palmerston North DX Sort deliver Customer Services Centre, Civic Administration Building, The Square, Palmerston North Te Kaunihera o Papaioea Palmerston North City Council 35

36 Submission Form We would particularly like to know what you think of our draft vision for Palmerston North: Small city benefits, Big city ambition? What about the goals and targets? Submission Form What do you think of our proposed projects? Are they value for money? What about their impact on debt and rates? Tell us your preferred options (refer to pages 11-21). Be specific and say why you think this. Wastewater (At this point it is too early to consult on specific options but we still want your comments) City Centre Streetscape Te Manawa 2025 Central Energy Trust Arena Victoria Esplanade Active Transport 36 What's the BIG picture? Small City Benefits, Big City Ambition

37 Housing Support Council s Role in Growth, Infrastructure and Housing Development Currently, the proposed new rates and debt levels are necessary to fund the projects and services we are planning to deliver over the next 10 years. Do you think we have the balance right? Is there anything you d like to see amended in the Plan to change the level of rates and debt? Submission Form Other comments: SUBMISSIONS CLOSE MONDAY 23 April 2018 PLEASE NOTE: Submissions will not be returned, so if you want a copy please keep one As stated on the front of this form, all submissions are made available to the public (including on the Council s website) If your submission relates to a District Planning matter or other issue currently being or about to be dealt with through another Council process, it will be redirected to that process If you have a concern about a specific, one-off issue, such as broken glass, please call the Customer Services Centre on and they will arrange to have the problem fixed without delay. FOR FURTHER INFORMATION GO TO: or phone Te Kaunihera o Papaioea Palmerston North City Council 37

38 Submission Form If you need more writing space, just attach additional pages to this form. 38 What's the BIG picture? Small City Benefits, Big City Ambition

39 Proposed 10 Year Budget at a Glance Area of spend Innovative and Growing City Creative and Exciting City Capital Expenditure $764.8m $1.6m $171.3m Operating Expenses $1,594.8m $119.3m $338.3m Rates Other Rates Other How operating expenses are funded 10% 52% 48% 90% Proposed 10 Year Budget at a Glance Transport $225.8m $360.6m Rates Other 52% 48% Connected and Safe Community $53.4m $238.5m Rates Other 35% 65% Eco-city $10.0m $90.7m Rates Other 41% 59% Water $85.3m $104.5m Rates Other 1% 99% Wastewater $165.5m $147.0m Rates Other 25% 75% Stormwater $14.6m $45.9m Rates Other 0% 100% Driven and Enabling Council $37.4m $150.0m Rates Other 46% 54% Other = user fees and charges, rents and leases, subsides and grants (including NZTA), and interest and dividends. Te Kaunihera o Papaioea Palmerston North City Council Print & Design by Print Synergy - Palmerston North City Council 39

40 Palmerston North City Council W pncc.govt.nz E info@pncc.govt.nz P Private Bag 11034, The Square, Palmerston North, 4442