Porirua – our place, our future, our challenge Let’s kōrero

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Published March 2021.
Porirua City Council 16 Cobham Court PO Box 50218 Porirua 5240
This document is available on our website
poriruacity.govt.nz
Porirua – our place, our future, our challenge Let’s krero
2 Consultation Document for the proposed LTP 2021-51
Message from Ngti Toa Rangatira E te iwi e noho nei i te riu o Porirua, tn koutou katoa
The development of the city's Long-term Plan 2021-2051 will bring changes to our city that we will be proud of.
Between now and 2051 we will see Porirua transform into a vibrant and exciting place to be for residents and people who choose to work here. We are blessed with hills, waterways, Te Mana o Kupe bushwalks and two magnificent harbours, Porirua and Puatahanui, as well as rich histories all anchored by Te Matahourua, the anchor left here by Kupe.
As a challenge to all of us – we must look after our environment and look after each other, especially our tamariki and rangatahi.
Nou te rourou, naku te rourou ka ora ai te Iwi
With your contribution, and my contribution the people will thrive
Taku Parai Chairman, Te Rnanga o Ngti Toa Rangatira
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Contents Mai i t Koutou Koromatua 4 From your Mayor
Executive summary 8
Your views 16
Investment in the 3 waters – drinking water, wastewater 17 & stormwater
1. Investing in infrastructure 17
Protecting our harbour 19
Preparing for growth 20
Affordability 25
8. Te Rauparaha Arena hours 30
9. Living wage to contractors 32
10. How to go about balancing the budget 33
Our climate change response 34
Responding to Covid-19 34
Policies and strategies 36
Development Contributions Policy 36
Fees and charges 36
Consultation Document for the proposed LTP 2021-514
Mai i t Koutou Koromatua From your Mayor
It’s never been more important that we understand the choices and challenges that confront us as a city. This Long-term Plan (LTP) consultation document spells them out clearly. Now, we need your help.
Simply put, the LTP looks out thirty years and asks: “how do we best make sure infrastructure and services keep pace with a growing city?”
For public safety, quality of life and harbour health, there is no greater priority than investing in our critical three-waters infrastructure – drinking water, wastewater and stormwater. That’s why we are planning to spend $800 million over the next 30 years to improve the pipe network, ensure water quality for our drinking water, protect our environment (streams, harbour and coast) address flooding hotspots, ensure the integrity of our wastewater system and meet the challenge of climate change.
In roading, we are proposing to invest $323 million to improve resilience and safety across the network, with a focus on high-risk corridors, pedestrian crossings and school zones.
We have significantly increased our overall investment in infrastructure from the previous LTP to improve our 3 waters and transport networks.
Your input is critical to getting this right. So please take the time to go through the document, discuss it with family and neighbours, and let us know how you think the Council can best address these challenges.
Given projected population growth, Porirua City will need more than 10,000 new dwellings over the next 30 years. This creates additional demand on everything from precious water resources and our
under pressure infrastructure to public transport and parking in the CBD. What’s your view on the range of proposed solutions set out here?
In order to meet our obligation to balance budgets, we offer an alternative approach to funding Council activities and critical investments. Do you agree with the idea of ‘smoothing’, which will spread rates increases over the first three years of the LTP?
We’re also seeking your views as to what we do with the Moana Court social housing. Do you agree with the plan to sell the 26 social housing units – valued at more than $3 million – to the Crown or a community housing provider, as long as tenants are protected?
There are also proposals in the LTP for new community assets, including a Cultural Arts Centre in the city, and multi-use community facilities in Eastern Porirua (2024-2028), in the North (2031-34), Ttahi Bay (2035/36) and Whitby (2038/39).
Porirua City is going strong – but keeping pace with growth creates budget pressures that directly impact your household rates. It’s a balancing act, and recent events are a reminder that underinvestment carries its own costs.
For Porirua to thrive, we need more than just a plan. To be successful, the plan must enjoy broad support in the community. That’s why we’re urging you to have your say now. Your input is critical to getting this right so please take the time to go through the document and let us know how you think the Council can best address the challenges we face.
Ng mihi, Anita Baker
$323m on roading
pipeline?
5
A snapshot of our major projects over the next 30 years
3 waters Wastewater pipe and pump station renewals: $359m
Wastewater storage tanks: $120m
Wastewater treatment plant: $45m
Installing water meters: $14m
Access Kenepuru Road, footpath, and cycleway improvements: $8.6m
Parks Aotea Lagoon renewals: $3m
Property New community facilities across the city: $24m
Resource recovery & waste Additional capacity at Spicer Landfill: $26m
7Consultation Document for the proposed LTP 2021-516
What it costs
What this could look like for you
What we’re faced with
» Ageing pipes
Infrastructure investment of $800 million over 30 years
But, if all consultation items are accepted this could drop to 7.81%
Average weekly rates increases:
Weekly increase:
$755K +$6.16
$644K +$5.35
$427K +$3.77
Our focus It’s time to invest in our ageing infrastructure, to improve the health of our harbour, beaches and the city as a whole.
We’ve heard from you that this is a priority, and that’s what has shaped this Long-term Plan.
8.05% average
rates increase
Executive summary Our vision for Porirua City is that it is an even greater place to live, work, and raise a family. This means we must look after the wellbeing of our people, our harbour and our home.
We want to provide the right services and facilities for everyone now and in the future by:
• Investing in 3 waters infrastructure and catchment restoration
• Proactively responding to the climate crisis
• Advocating for and providing a safe, healthy and thriving community
• Putting children and young people at the heart of the city.
This LTP maps out the needs of the city for the next 30 years. It builds on the guiding principles and policies in the Growth Strategy, Climate Change Strategy, and Proposed District Plan. This LTP isn’t business as usual, it takes into account our changing city. It is confronting, but we believe realistic if we are to address the challenges we now understand are coming our way.
This LTP is focused on:
• The 3 waters – drinking water, wastewater and stormwater
• Our harbour
• Climate change
• Affordability.
As a city, we need to significantly invest in our infrastructure. We are upgrading our wastewater and stormwater networks to ensure they are able to protect our communities and harbour. We are improving our drinking water network so we can continue to provide reliable and sustainable access to clean water. We are also investing in our transport network to meet the needs of our growing city.
We are investing in Te Awarua-o-Porirua Harbour as it is our greatest environmental taonga. Alongside investment in the 3 waters infrastructure, which
manages what comes out of the pipes, our streamside restoration programme will help the health of our harbour through improvement of the catchment that drains into it.
We have become increasingly aware of the need to address the impacts of climate change in everything we do. In 2019 our rangatahi approached Council and asked for change. In response Council developed a Climate Change Strategy, “Rautaki o te ao Hurihuri”. Adopted in 2020, this strategy outlines what we will do to reduce greenhouse gas emissions and what changes are needed to make our services and infrastructure more resilient.
The investment in our city isn’t just about meeting the current needs of residents, it also prepares us for future residents. Our city is projected to grow by nearly 30,000 residents (more than 10,000 households) over the next 30 years. We need more homes, but we also need to meet the social and cultural needs of our expanding population. This could be done, for example, by building a cultural arts centre and new multi-use community facilities in high growth areas.
The Council is committed to supporting the community and maintaining our services during the Covid-19 pandemic. In September 2020 the Council adopted the city’s Covid-19 Recovery Plan to help us respond to the ongoing and emerging impacts of Covid-19.
In order to fund our infrastructure investment we need to take on more debt. While this borrowing is unavoidable, we have been careful to keep debt levels affordable now and in the future. We have taken a close look at what we do, and how we do it, to find savings. We have managed to keep the average rate increase to 8.05 per cent for existing ratepayers, without delaying investment in our city.
Central government has undertaken a review of the 3 waters and changes in the supply and management of the 3 waters is coming. Whatever the changes may be, we will remain dedicated to maintaining high quality services and ensuring our infrastructure meets the needs of the community.
9
Strategic priorities In the short term Council will focus on four things of key importance
Our vision Porirua City, a great place to live, work, and raise a family
Community outcomes
Young people at the centre of our
whanau
Access
Sustainable use of resources Connected and accessible transport
Ready for growth – infrastructure,
Diversity of organisms
community
Our people We are diverse and inclusive – a city with lifelong economic and social opportunities
Our harbour We have a healthy harbour and catchment – a thriving natural environment
Our home We build to last and adapt to change
Investing in 3 waters
Putting children and
of the city
Rates The LTP sets out the budget for Porirua City. It proposes how we plan to allocate funds to provide council services. The majority of funding for these services comes from rates, so it’s worth taking the time to talk about what rates are, how they’re calculated, and how they’re allocated.
We are proposing an average rate increase of 8.05 per cent for existing ratepayers, with the assumption that the number of ratepayers has grown by 1 per cent, resulting in an 9.05 per cent increase overall.
What are rates? Rates are a tax on property collected by local and regional councils. Your rates pay for council services and activities. We receive income from other sources such as fees, user charges, and subsidies. After taking these into account, rates pay for services and activities that have a public benefit.
Where funding will come from
Rates are the way that people who live in Porirua City contribute to the maintenance and development of the public assets and services they share with their neighbours. All property owners pay rates, including Kinga Ora and other government departments.
Development Contributions 1%
Investment Income 0%
2021/22
How are they calculated? Rates are calculated annually through the LTP and the Annual Plan. Put simply, we calculate the cost to run the city and divide that cost among all the properties. The amount of rates you pay depends on where you live, and the size and value of your property.
Some properties will also have to pay a targeted rate. This is applied when a particular service is provided within a limited area, and it’s unfair to split the cost of this service across the entire city.
Where are your rates spent? The following graph shows the proposed rates funding for the services we provide. The LTP provides more detail on how these services will be delivered.
Democracy 4% Wastewater 15%
Libraries 4% Ptaka 4%
Stormwater 5%
Drinking Water 10%
Emergency Management 1% Regulatory Standards 2% Climate Change Response 0%
Arena, Pools & Events 10%
Resource Recovery & Waste 4%
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The challenges for our city The LTP maps out our plans and direction for the city over the next 30 years. In planning for the future, it is necessary to consider the challenges Porirua and its residents are currently facing.
As the number of homes in our city grows, we need to protect the environment and plan for population growth in the context of climate change. We need to be resilient and adaptive so that we can respond to both the challenges we know about, and the unexpected, such as the Covid-19 pandemic. We are also wanting to invest in people’s wellbeing, that is, planning to provide facilities to meet the broader social and cultural needs of our residents as we grow.
Our planned investment has been influenced by a number of factors the Council is directed by and/or required to respond to. The most significant of those influences are:
• Transport modes and change in the transport network when Transmission Gully opens
• Housing demand, house and rent prices and a growing city
• Central government’s National Policy Statements regarding urban development and freshwater management
• The changes in national climate change policy and weather-related events on the ground
• Community expectations around safe drinking water and a healthy harbour
• The four wellbeings focus by central government
• The impact of Covid-19
• Affordability.
This LTP seeks to provide good quality services and robust infrastructure without putting undue burden on ratepayers. This LTP outlines our proposed infrastructure investment. We want to know if you think we have got the balance right.
Investment in the 3 waters – drinking water, wastewater & stormwater One of the city’s most significant challenges is improving the performance and condition of our ageing 3 waters infrastructure system. A well- functioning 3 waters system is vital for the health of our residents and the environment. A major focus of this LTP is investment in our 3 waters infrastructure to make sure it meets the needs of the city now and into the future.
A lot of the city’s infrastructure has reached the end of its useful life. This is particularly the case for the 3 waters system, which accounts for 56% of our total infrastructure budget for the next 30 years. Of the 3 waters, wastewater needs the most investment to reduce the harmful effects of leaking pipes and wastewater overflows on our harbour and the wider environment.
We plan to achieve this by building wastewater storage tanks at key locations throughout the city to better manage the volume and flow of waste and to accommodate additional population growth over time. The storage tanks will allow time for our sizable renewals programme to be implemented, which will improve the overall condition of the pipe network.
Kinga Ora (formerly Housing New Zealand) is undertaking a significant regeneration within Eastern Porirua in partnership with Council. In the first 10 years of the LTP there is a large dependency on Kinga Ora to undertake significant replacement of 3 waters infrastructure within the East.
While there’s a lot of work to be done on the public network owned by Council, we also need to address issues with private connections that feed into the network. By working on improvements together we can fix the leaks and cross-connections causing pollution of our waterways. One way we are doing this is through the “Knowing your pipes” initiative which will see Wellington Water Limited crews checking connections between the private and public networks. If there is any cost to fix faults on private property, there will be the ability for owners to apply for assistance to spread the cost via council rates.
There is also an ongoing need to reduce water usage in Porirua and improve the sustainability of our water sources. On average we use 323 litres of drinking water each day for every resident. When we consider that Porirua shares its drinking water with all the residents of the Hutt Valley and Wellington City, that the region is expecting significant population growth, and that we can expect more droughts as a result of climate change, it is obvious that we need to manage our use of drinking water better. This will
mean changing behaviours towards water use and more efficient detection and repairs of water leaks.
We believe installing water meters from 2025 is essential. This will help us identify where leaks are so they can be fixed. It will also provide residents with a way to monitor and reduce their water usage. Without the information from water meters we won’t know if we’re improving.
Central Government is reviewing how to improve the regulation and supply of drinking water, wastewater and stormwater. The Government expects to make substantive decisions in April/May 2021. It is expected that Councils will be asked to consult with their communities in late 2021 whether they should join one of the new water service delivery entities. We intend to consult on this decision, once Central Government has made their decision in April/May and more facts available, separately to the consultation on this LTP.
For Councils that participate in the reforms, transfer of responsibilities, assets, is likely to occur from 2023/24 onwards. As the reforms are yet to be finalised, this LTP has been developed under the assumption that the Council will remain responsible for the ownership and maintenance of our 3 water assets.
Irrespective of our future role in the supply and management of the 3 waters, the health and wellbeing of our residents and environment will remain a priority.
For more information on the Government reforms visit dia.govt.nz/three-waters-reform-programme
Protecting our harbour Toit te marae o tane, toit te marae o tangaroa, toit te iwi
Protect and strengthen the realms of the land and sea, and they will protect and strengthen the people
Te Awarua-o-Porirua is our harbour and a taonga to Ngti Toa.
We are committed to restoring the health of the harbour as it is important as a cultural, recreational and natural resource.
The health of the harbour has declined as Porirua has grown alongside inadequate practices that have not helped protect it. As our city continues to grow it has become urgent to respond. This is why
protecting and restoring the health of our harbour is a central part of this LTP.
Our harbour depends on the health of our streams and is impacted by how we use our land. It is reliant on fit-for-purpose 3 waters infrastructure that is in good condition and meets compliance standards.
We are addressing leaks and cross connections between wastewater and stormwater to prevent untreated sewage contaminating our waterways.
We are also committed to directly improving the health of our streams and harbour by planting 280km of riparian margins to reduce silt, sediment and contaminants from entering our harbour.
Porirua is growing and we know that urban development is a major contributor to the poor health of the harbour. There are a range of provisions
in the Proposed District Plan to reduce the impacts of growth through improved development practices. Provisions around stormwater neutrality, water sensitive design and sediment control plans are examples of the Proposed District Plan’s intent to improve the health of the harbour.
Our climate change response Porirua City declared a climate change emergency on 26 June 2019. There’s still a lot of work to do in order to understand the impact of climate change on our city and what steps we need to take to ensure Porirua is resilient. The impacts of climate change are already being felt with increasing temperatures, sea level rise, and extreme weather events.
Climate change is a long-term issue for Porirua. While we don’t have all the answers, we need to start planning our responses now. Climate change will affect levels of service and infrastructure investment decisions. Our climate change strategy Rautaki o te ao Hurihuri lists actions that will be undertaken over the next few years. These actions are intended to support mitigating the effects of climate change by reducing greenhouse gas emissions, build a better understanding of the likely impacts and to prepare the city for those impacts. The purpose of the climate change strategy is to make sure we’re doing the most important things first, so the resources we need (time, money, and people) are allocated appropriately.
Where the impacts of climate change are well understood we have factored them into specific infrastructure projects, such as sand dune restoration and flooding mitigation. A planned risk assessment of the impact of climate change on the city will further inform future infrastructure investment decisions.
Being ready for growth Porirua City is expected to experience significant population and housing growth over the next 30 years. Our forecasts show that the city will grow by nearly 30,000 residents over this time period. This growth requires careful planning and investment.
Our challenge is to enable population and housing growth, while protecting and improving the natural environment and community wellbeing. Where possible a green approach is being integrated into the design of infrastructure – like the use of wetlands to reduce the impact of excess stormwater.
Population growth will also require investment in community facilities to support social and cultural wellbeing. We’re proposing new community multi- purpose facilities across the city in a staged way to meet population growth.
Where growth is occurring, we are using it as an opportunity to build new infrastructure and upgrade existing infrastructure with the harbour front of mind. We are working closely with developers and other agencies to ensure that investments in infrastructure provide sustainable and fit-for-purpose solutions across the city.
Responding to Covid-19 Porirua City is committed to supporting the community and maintaining our services during the Covid-19 pandemic. We have learnt a lot about our city’s vulnerabilities over the last twelve months and we want to ensure we are well placed to enable safe, healthy, resilient communities and a thriving economy. In September 2020 the Council adopted the city’s Covid-19 Recovery Plan that provides us with the ability to respond to the ongoing and emerging impacts of Covid-19.
Affordability Given the impacts of Covid-19, increasing house prices and rent costs in the city and the general cost of living, some may struggle to afford rate increases. We have been careful to ensure that the cost of services is achievable in terms of both Council debt and the impact on ratepayers.
We have made some hard decisions about what projects we need to invest in and when. Each asset management plan has had to be reprioritised and projects rescheduled to ensure we can deliver an infrastructure programme that addresses the biggest issues in the city without putting undue pressure on ratepayers.
The table below shows the proposed rate increases for 2021/22 (Year 1 of the LTP). For a breakdown on what makes up the rates, and a more detailed indication of rate increases please see page 39.
Group Average
(% increase) Average
Residential 8.04% $278.11 $5.35
Hongoeka community 8.84% $148.14 $2.85
Commercial 7.31% $626.59 $12.05
Industrial 7.34% $655.40 $12.60
Motels 9.59% $1,999.07 $38.44
Shopping plaza 20.88% $27,328.48 $525.55
We have also included tables which provide comparisons between our different rating categories. The tables below relate to a property with Capital Valuation of $1 million. They provide an estimate of rates for 2021/22 as a percentage of Capital Value, and the average increase in percentage and dollar terms.
Group Capital
Value General
Rates* Targeted
as a % of CV Total rates
as a % of CV
Farming Median $1,000,000 $2,578 $691 $3,269 0.26% 0.33%
Commercial $1,000,000 $11,419 $3,194 $14,613 1.14% 1.46%
Motels $1,000,000 $5,231 $10,481 $15,712 0.52% 1.57%
Shopping Plaza $1,000,000 $11,419 $1,778 $13,197 1.14% 1.32%
*Targeted rates include kerbside recycling, water, city development, uniform annual general charge, and wastewater.
Group Capital
Value 2020/21
Rates 2021/22
Rates Average
(% increase) Average
Residential $1,000,000 $4,733 $5,139 8.58% $406 $8
Rural $1,000,000 $3,059 $3,536 15.60% $477 $9
Farming Median $1,000,000 $2,991 $3,269 9.29% $278 $5
Commercial $1,000,000 $13,615 $14,613 7.33% $998 $19
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Let’s krero Porirua! Porirua is our place, and we want to plan it with you – every step of the way. This Consultation Document provides a summary of our LTP 2021–51. Our formal consultation runs from 26 March to 27 April and the Mayor, councillors and staff will be available to talk with you online and at locations throughout the city about Porirua’s future.
Go online Make an online submission: poriruacity.govt.nz/ ltpsubmissions
Write to us Make a hard copy submission – fill in the feedback form that accompanies this document (or download a copy from poriruacity.govt.nz/ltpsubmissions) and Freepost, email or drop it into us.
Email your scanned feedback form to [email protected]
Postal address Freepost, Long-term Plan, Porirua City Council, PO Box 50218, Porirua 5240.
Physical address Ground Floor, Administration Building, 16 Cobham Court, Porirua 5022.
Engagement Online Q&A Sessions poriruacity.govt.nz/ltplive 31 March 7–8pm 6 April 12–1pm 14 April 7–8pm 20 April 12–1pm
7 April 7–8pm: Community workshop North – Mana Cruising Club
9 April 10am–12pm: Maata Waka, Maraeroa Marae, 216 Warspite Ave, Waitangirua
10 & 11 April 12–2pm: Community drop-in – The Spine, Ptaka
13 April 7–8pm: Community workshop East – Nuanua Kindergarten, 5A Warspite Avenue, Cannons Creek
16 & 17 April 10am–1pm: Community drop-in – North City Mall (Lower Level opposite Mirrou)
18 April 10am–12pm: Community drop-in – North City Mall (Lower Level opposite Mirrou)
21 April 7–8pm: Community workshop North – Puatahanui Lighthouse Cinema, 3 Paekakariki Hill Rd, Puatahanui
22 April 7–8pm: Community workshop West – Porirua Club, 1 Lodge Pl, Porirua City Centre
Have your say by 27 April Making a submission is easier than you think and you can do this in many different ways. Submitting doesn’t take long!
8 April Iwi Consultation
30 March Youth Forum
31 March 10–11.30am: Refugee & Migrant Community – Porirua Gospel Chapel, 88 Hereford St, Cannons Creek.
For more information on where you can krero with the Mayor and councillors – go to our website poriruacity.govt.nz
Your views The LTP will shape the future of our city and we want to hear what you think about our plans.
"In addition to wanting to consult on these issues, we are using this process to capture your feedback on our 3 waters infrastructure plans to ensure ongoing delivery of services in light of our ageing pipe network.
We specifically want to know your opinion on proposals to address the challenges we are facing. Some issues ask you to think about the big picture – for example ways to protect our environment as we grow or the provision of new facilities in future growth. Others suggest small changes and have more modest implications.
We have placed each issue under the corresponding focus area and briefly explained what we are proposing, why we are proposing it, and whether it will have an additional rate impact. We welcome your views and suggestions on our overall focus for this LTP and our more specific projects identified below.
The purpose of this Consultation Document is to seek your feedback on the following proposals. For each of the proposals we have indicated what the impact on rates will be. To make an online submission go to poriruacity.govt.nz/ ltpsubmissions or fill out the feedback form provided with this document.
The table below shows the impact on rates of each of the consultation items for the first three years of the LTP.
Average rates increase to existing ratepayers in first three years (smoothed) % 8.05
Consultation item – smoothed impact on first three years Impact %
Harbour catchment restoration +0.5
Living wage to contractors +0.39
Average rates impact of consultation items if they all are adopted -0.24
Average rates increase to existing ratepayers if all consultation items adopted % 7.81
Investment in the 3 waters – drinking water, wastewater & stormwater 1. Investing in infrastructure Background In this LTP we are committing to investing more in our core infrastructure and water networks. Our focus is on renewing and improving the condition and performance of our infrastructure to ensure it meets future needs of Porirua’s people and environment. The Council considers it is essential work to do for environmental, public safety, quality of life and growth reasons and we don’t believe there are options not to invest. It means things like reducing contaminants from stormwater, increasing the capacity of pipes, upgrading pipes, fixing leaks to conserve water, monitoring water use more closely and reduced over flows from the treatment plant.
The vast majority of expenditure in this LTP is in our infrastructure. As a consequence, it’s important we check that you’re comfortable with our decision to focus on providing and improving our water-based infrastructure significantly.
Wellington Water manages our 3 waters networks along with other cities in the region. We have agreed to regionally consistent investment priorities which are tailored to each city’s needs.
This investment will bring improvements across the network across the 30-year timeframe. Continuing improvements to the city’s 3 waters network remains a key priority because of the multiple benefits to the community. We plan to invest $800 million on 3 waters assets over the 30-year timeframe.
An important part of this investment strategy focuses on looking after our existing infrastructure. We need to carry out renewals at a pace that replaces network assets before they deteriorate to the point of failure. Around 50 percent of Porirua’s three waters pipes need to be replaced in the next 30 years.
We have used the age of our assets to develop our forecast for our 3 waters assets. Age as a proxy for asset condition increases the degree of uncertainty on the level of spending necessary, and on which assets. Wellington Water will work on developing its understanding of asset condition which will improve the reliability of future investment needs.
We are planning to spend $351 million on replacing our city’s aging 3 waters infrastructure in this LTP over the 30-year timeframe. This represents 50 percent of the renewal’s investment recommended by Wellington Water. We are spending $750,000 on condition assessment studies over the next 2 years improving our detailed understanding of the condition of our water assets. This work will involve CCTV inspection of pipes, inspections of plant and machinery and ongoing leak detection. This process will provide more accurate knowledge and understanding of our assets condition and performance.
The proposed $351 million investment will see us replace our assets at a slower pace than what is recommended by Wellington Water, which could lead to an increased likelihood of failures. We are taking steps to minimise such risks through better monitoring of the network and once the outcomes of the studies are known this may require us to reprioritise the proposed replacement programme.
We would like to address our renewal backlog in full in this LTP, however because of our debt funding limits, provision for unexpected events and the affordability of rates we must balance our approach to investment.
The following graph breaks down the 10 and 30 year spend of each of our water infrastructure groups into growth, level of service and renewals.
3 Waters Capital Expenditure – 10 and 30 years
When we allocate projects into categories we must consider the primary purpose of the infrastructure. Renewals relate to the replacement of existing infrastructure at the end of its useful life or function. Levels of Service relates to addressing existing shortfalls in current infrastructure or changes to acceptable level of service. Growth projects relate to infrastructure used to support growth in the city. Growth expenditure may seem smaller than what you might think because a lot of the projects relating to growth are primarily related to levels of service improvements.
We plan to invest $308 million on 3 waters over the next 10 years which is $205 million more than we planned in the previous LTP. This increase will have an average rate impact of 4.1% a year over the first 10 years of the LTP.
Your view » Do you support this focus and agree it is a high priority for the city?
» If so, do you think this level of expenditure is about right?
Capital cost: $308 million
Year/s: Capital spend across the first 10 years of the LTP
Rate Impact: The additional $205 million spend, compared to the LTP 2018, results in an average rate impact of 4.1% per year across the first 10 years of the LTP. This means an increase of $163.24 per year for the average ratepayer.
Debt Impact: As with our other LTP investments, the capital costs are fully loan funded with the cost of interest and principal repayments over a 40-year period. The relating depreciation and operating costs have been included in the base 8.05% rate increase.
Stormwater Drinking Water Wastewater
10 Years 30 Years 10 Years 30 Years 10 Years 30 Years
$000 $000 $000 $000 $000 $000
Growth - - 46,801 46,801 324 44,096
Levels of Service 20,687 20,687 22,407 26,727 132,405 310,903
Renewals 1,620 26,069 18,275 74,581 65,526 250,374
Totals 22,307 46,756 87,483 148,109 198,254 605,374
0
100
200
300
400
500
600
700
$ millions
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Protecting our harbour Improving our 3 waters network isn’t the only thing we are doing to restore the health of our harbour. Our harbour and catchment restoration programme is another way we are aiming to do our bit to clean up the harbour and protect it from future damage.
2. Harbour and catchment restoration Background Our harbour and its catchments are in poor health.
In recent years we’ve improved our monitoring of the health of our harbour and it has become clear that sediment is entering it at a faster rate, wastewater spills have become more regular, and beach closures more frequent.
Harbour water quality can be restored but it will take time. We have identified three ‘must do’s’ to fix water quality in the harbour:
• Improve our 3 waters infrastructure network
• Improve policy, regulation, and enforcement
• Undertake riparian (streamside) planting along all of the streams in Porirua
Streamside restoration (riparian planting) is a very effective way of reducing the effects of sedimentation and pollutants entering streams and our harbour. You can think of our streams as stormwater pipes which are doing a very poor job of filtering the water and run-off they collect before depositing it in the harbour. Riparian planting is like a giant natural filter, ensuring what is deposited in the harbour is filtered water.
Streamside planting has the added benefits of restoring the ecological health of our city and capturing carbon dioxide.
Our riparian planting programme is too slow. At the current rate it would take 43 years to complete planting along all streams. We want to plant all the Porirua catchments within 20 years as this will make a tremendous difference to water quality in the harbour. We estimate this will cost approximately $1.4 million a year. We want as much of this funding as possible from external sources, so we are applying for $600,000 funding each year, primarily from central government.
What we are proposing If Council is unsuccessful in obtaining the external funding, we propose fully funding the riparian planting programme ourselves to achieve our 20-year goal. Our current application to central government is for five years of funding from 2022/23. There will be other funding opportunities in the future, but we want to commit to fully funding the riparian planting programme, whether central government contributes or not.
Your view » Do you support the Council fully funding the riparian planting programme for
five years if central government declines our application for funding?
Fully fund riparian planting programme for five years if funding bid unsuccessful
Capital cost: –
Year/s: 2022/23 to 2026/27
Rate Impact: This proposal would result in a 0.7% or $27.81 increase per year for the average ratepayer from 2022/23 (Year 2) to 2026/27 (Year 6).
Debt Impact: This proposal has no impact on debt.
Preparing for growth Meeting the needs of a growing city requires careful planning. Adequately investing in the 3 waters and transport networks is vital, but we also need to ensure our services and facilities meet the wellbeing and social needs of the public.
We would like your feedback on the proposals below.
3. Multi-use community facilities Background Modern multi-use community facilities provide spaces that bring people together, with a focus on building social connections. They are versatile facilities with features designed to meet the needs of individuals and groups, such as library services and flexible meeting places.
Building community facilities are a large expense for the Council and take several years to complete. Plans to build new facilities must be forecasted accurately in the LTP to ensure funding is available when required. Where there are new developments around the city we will look to developers to help fund facilities.
Funding of $8 million has already been allocated to build a library and multi-use community space in the East. This is planned for delivery between 2024-28 in partnership with Kinga Ora.
The Council recently undertook a piece of research to understand what community facilities might be needed in the future to accommodate population growth in the city. The research looked at what facilities we currently have at the neighbourhood, city-centre, and city-wide level. To read the full report visit poriruacity.govt.nz/ltp/#documents
The research found that Porirua would require new facilities in the north and west at different stages over the next 30 years.
• Significant population growth is projected in northern Porirua that will create the need for a multi-use community facility, ideally located within the new proposed development area (Plimmerton Farm).
• Titahi Bay residents rely heavily on facilities located in the city centre. A plan is needed to ensure the neighbourhood community spaces in Titahi Bay meet the needs of the community in the future.
• The Whitby area currently has adequate provision of community facilities. However, as the area grows, particularly through the proposed Judgeford Hills development, additional community space located centrally in the Whitby area will be needed.
What we are proposing We are proposing the following:
1. Allocate $8 million ($11.335 million inflated) from 2031/34 for a multi-use community facility in northern Porirua and $1.718 million a year from 2034/35 to run the facility.
2. Plan for a Titahi Bay multi-use community facility, allocating $4 million ($5.989 million inflated) for construction in the 2038/39 year and $1.044 million a year from 2039/40 to run the facility.
3. Allocate $4 million ($6.488 million inflated) in year 2035/36 for construction of a Whitby multi-use community facility and $1.024 million a year from 2036/37 to run the facility.
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Your view » Do you support the allocation of $8 million funding in the Long-term Plan for multi-
use community facilities in northern Porirua?
» Do you support the allocation of $4 million funding in the Long-term Plan for multi- use community facilities in Titahi Bay?
» Do you support the allocation of $4 million funding in the Long-term Plan for multi- use community facilities in Whitby?
Invest in a multi-use community facility in Northern Porirua
Capital Cost: $8 million ($11.335 million inflated)
Operational Cost: $1.718 million per year
Year: 2034/35
Rate Impact: 1.06% increase per year from 2034/35 (Year 14) covering the ongoing operational and maintenance costs of the facility. This project would mean an increase of $76.73 per year for the average ratepayer from 2034/35 onwards.*
No future Investment: If the project does not proceed then the rates from 2034/35 (Year 14) will be 1.06% lower and debt levels would be lower as Council would not need to borrow the $8 million budgeted cost for the project.
Invest in a multi-use community facility in Titahi Bay
Year: 2038/39
Invest in a multi-use community facility in Whitby
Year: 2035/36
*As with our other LTP investments, this is fully loan funded with the cost of interest and principal repayments over a 40-year period as well as depreciation and operating costs included in the rates impact. These numbers have been included in the LTP.
4. Cultural Arts Centre Background Porirua is a culturally diverse city and over the years we have often considered whether we have the appropriate facilities to celebrate our diversity. Ptaka is a world-leading contemporary art gallery and museum dedicated to Mori, Pacific and Aotearoa New Zealand culture. While Ptaka is often used as a performance space, it is not equipped for large performances.
A number of feasibility studies and partnerships have investigated whether Porirua needs a dedicated Cultural Arts Centre, where it would be built, and how it would be funded. For a variety of reasons the timing has never been quite right and these proposals did not eventuate. However, the need for space where our culture can be expressed and celebrated, remains strong.
What we are proposing In the LTP we are proposing to allocate:
• $250,000 in the 2021/22 year to fund a feasibility study for the Centre. $100,000 of this will be sought from external funding.
• We have not allocated capital or operational costs for the proposed Cultural Arts Centre in the LTP. Our current analysis is that a suitable facility would cost $30 million to construct and could be included as early as 2023/24. In any such plan we will seek $6 million of external contributions to help pay for construction. We estimate that it would cost around $1.1 million per year to run the facility from 2024/25, assuming construction took place in 2023/24.
These cost estimates to build and run the Cultural Arts Centre are provisional. A more detailed costing will be produced from the feasibility study.
Your view » Do you support the proposal to build a Cultural Arts Centre in the city centre?
Proposal to build a Cultural Arts Centre in the city centre
Capital Cost: $30 million ($24 million debt funded)
Operational Costs: $150,000 feasibility study ($100,000 external funding, for the $250,000 feasibility study) and ongoing operational costs of $1.1million per year
Year: 2023/24
Rate Impact: We have not allocated capital or operational costs of the Cultural Arts Centre in the LTP. Successful adoption of this proposal would result in a 2.10% increase per year from 2024/25 (Year 4) on top of the 4.87% increase. This project would mean an increase of $101.54 per year for the average ratepayer in 2024/25 onwards.
Debt Impact: If the project was to proceed the $24 million being the net costs would be debt funded. We have assumed a 20% third party funding would be received for this project. As with our other LTP investments, this is fully loan funded with the cost of interest and principal repayments over a 40-year period as well as depreciation and operating costs included in the rates impact. These costs would need to be incorporated into the LTP.
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5. City centre parking Background The way we get to and move around our city is affected by our roading network, public transport, and urban form. As Porirua grows demand for parking in the city centre is growing and will continue to grow.
Our public parking should provide reasonable and equitable access to the city centre (CBD part of the city) and support our wider transport, social, and environmental outcomes. Managing parking as part of the wider transport system helps to keep cities moving, promotes the ongoing development and use of public and active transport, reduces our greenhouse gas emissions, and makes safer pedestrian spaces.
We need more tools to manage parking demand in the city centre. As Porirua does not currently have on-street paid parking, we can’t influence parking behaviour the way other cities can. Currently there are only two small areas of paid parking in Porirua and on-street parking is free. The limited long-term parking available in the city centre also puts pressure
on the short-term options, with workers moving their cars several times a day around short-term parking spaces.
The cost of providing parking is currently 50% funded from ratepayers with the other 50% coming from enforcement and the small amount of paid parking. Expanding paid parking would allow more of the cost to be paid by users as opposed to ratepayers generally.
What we are proposing We propose developing a specific city centre parking management plan. The key features of this would be:
• Free short-term parking options for quick trips into the city centre.
• An increase in long-term paid parking spaces.
• Relatively low-cost parking – we anticipate charges of $1-$2 per hour.
• Simple and flexible payment methods.
If Council decides to develop a city centre parking plan, we will need to update our Traffic Bylaw.
Your view » Do you think the Council should expand paid parking to include on-street parking
in the city centre?
Expansion of paid parking
Year: 2021/22
Rate Impact: There is a phased approach to the implementation of paid parking. The additional revenue is not included in the LTP and would decrease the estimated rate increase of 8.05%. This project is estimated to result in additional revenue of:
• $258,000 in 2021/22 – 0.33% ($13.04) decrease to rates
Debt Impact: The capital costs for the project will be covered by the additional revenue received. There is no impact on debt from this proposal.
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Affordability To offset the increased spending on infrastructure we have identified a number of savings we could make. These proposals will have an impact on the community through the services we provide and the rates you pay. We want to hear your feedback on each of them.
6. Moana Court housing Background Unlike some other councils, Porirua City Council has a very small social housing portfolio. We own 26 social housing units in the Moana Court complex in Te Pene Avenue, Titahi Bay. These units provide people aged 65 or older with secure, low-cost accommodation that is close to shops and public transport.
The units are managed by Wellington City Council’s City Housing Unit because we are unable to provide the range of support that the tenants need. While the units are compliant with Healthy Homes requirements, they require significant investment to bring them up to an acceptable standard for elderly tenants. Even with an upgrade, the quality of housing is low by today’s standards.
The current capital value of Moana Court is over $3 million. The cost of running Moana Court is around $80,000 more than we receive in rent each year. It is estimated that more than $160,000 will be required in the next two years for major repairs and improvements.
In 2014 the Government changed the legislation underpinning social housing, allowing registered Community Housing Providers to receive the Income-Related Rent Subsidy, which ensures that social housing tenants only pay 25% of their income in rent. This was previously only available to Kinga Ora (Housing New Zealand) tenants.
Because councils are excluded from receiving the subsidy, ratepayers incur a higher cost to provide social housing than Kinga Ora or Community Housing Providers. Several other councils have chosen to sell their social housing assets to Kinga Ora or Community Housing Providers because it makes economic sense to do so and doesn’t affect the quantum of social housing available.
The Council is a very minor provider of social housing in the city. Government plays a major role with over 2,000 social housing places through Kinga Ora, with Ngti Toa Rangatira managing around 900 of these.
What we are proposing The Council has two broad options available to it. We either continue to own Moana Court and investigate how to improve the facility, or we stop owning social housing altogether. The Local Government Act deems social housing to be a strategic asset. This means that if the Council wants to reconsider its ownership, we must consult through the Long-term Plan process.
The wellbeing of the existing tenants remains paramount, regardless of which option is chosen. If there is any change in ownership or management of the units it must be to a registered Community Housing Provider or the Crown, and the existing tenants continue to have access to social housing at current or better tenancy terms.
OPTION A: CONTINUE WITH THE STATUS QUO
This option means Council makes no changes to social housing for the near future. Council will continue to own the Moana Court complex and pay Wellington City Council, or another provider, to manage the tenancies.
The consequence of this option for the Council is that there would continue to be an operating cost to ratepayers in excess of $80,000 per annum or up to $200,000 to $300,000 if the rental subsidy and the cost of capital are taken into account.
OPTION B: DIVEST THE SOCIAL HOUSING UNITS AND FOCUS ON SUPPORTING SOCIAL HOUSING IN OTHER WAYS
Under this option, the Council would divest (sell) its social housing but continue to support social housing through regulation, policy, advocacy and facilitation.
This option would require Council to sell the Moana Court complex to another provider on the condition that:
• the complex is sold to a registered Community Housing Provider or the Crown, and;
• the existing tenants continue to have access to social housing at current or better tenancy terms.
One of the major benefits to the tenants of this option is that community housing providers offer full wrap-around services to tenants focused on wellbeing, and access to the government rental subsidy.
For Council the benefit of this option is that there would be a reduction in costs, enabling Council to redirect ratepayer funds elsewhere, and an improvement in Council’s level of debt.
OTHER OPTIONS CONSIDERED
We could choose to increase our focus on social housing provision. However, that would mean significant investment both in Moana Court, obtaining and developing more housing, and investment of staff time in managing a social housing portfolio. These would come at a cost to other Council priorities. Other parties can access government subsidies to deliver the same housing and services at a lesser cost than Council. We think there are better ways to support social housing.
Other options that have been considered, but deemed not feasible were:
• Selling the units on the open market with no restrictions on use. This option was not preferred as it provides no certainty that tenants will continue to be supported.
• Retain ownership of the land and sell the units to a Community Housing Provider or Kinga Ora, with a long-term lease for the land. This option was discarded as it does not enable the Council to release the value of the land.
Council’s preference is to sell Moana Court to another Community Housing Provider or the Crown.
This does not mean the Council would have no role at all in housing. We have an important role in the broader affordable housing issue, ensuring that there is sufficient land for development and redevelopment of housing, investing in the critical infrastructure that supports housing, and advocating for and supporting community housing providers in the city.
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Your view » Do you think that the Council should sell Moana Court (to a Community Housing
Provider or the Crown) or retain ownership?
Divest Moana Court ownership and sell to a Community Housing Provider or the Crown
Capital cost: $3.3 million current capital value
Operational cost: $80,000 saving
Year: 2022/23
Rate Impact: The sale of Moana Court is estimated to result in a cost saving of $80,000 per year from 2022/23 (Year 2) of the LTP. This initiative would result in a 0.09% or $4.01 per year decrease for the average ratepayer.
If we chose not to go ahead with the sale of Moana Court, we would likely incur ongoing yearly maintenance costs of 0.09% or $4.01 decrease for the average ratepayer. The current capital value for Moana Court is $3.3 million.
7. Village Planning Programme Background The Village Planning Programme started in 2003 in one village (Plimmerton) and over the years has expanded to 14 villages. Each village plan has been developed by our communities to guide the future development of their villages and reflect their aspirations. Projects have ranged from a new waka ramp and dog park, to playgrounds and community events like the Titahi Bay Beach Festival.
Targeted funding has been used to fund the villages programme and included capital funding, operational funding and funding for staff.
In May 2020 Council agreed to pause requests for funding new projects for two years to allow completion of backlogged projects (post pandemic).
The number and complexity of projects managed by the Village Planning Programme has increased over time, along with costs and regulatory requirements. Village Planning have increasingly been delivering projects that overlap with the work done by other teams in Council.
What we are proposing We are proposing a new way for residents to access funding for community projects. Village planning groups, Residents’ Associations and any other members of the community could submit a project to the Annual Plan and/or Long-term Plan. Councillors would decide which projects to fund, and if approved, the relevant team from the Council would undertake the design, consenting and construction of the project in collaboration with the community.
This proposal is an alternative to the existing Village Planning model and is the current process used for other new projects from the community. Residents work directly with the team at Council that would deliver their project.
It is proposed that existing Village Planning projects will be completed, but any new projects would be managed under the new funding model. The new funding model removes the targeted funding allocated to the Village Planning Programme.
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Your view Which of the options for Village Planning do you prefer?
1. Keep the status quo and have residents and groups submit projects for funding from a dedicated Village Planning budget.
2. Adopt a new model where residents and groups submit projects for the Annual Plan or Long-term Plan. The appropriate team at Council will manage the project and councillors will have final approval of projects. The current funding allocated to the Village Planning Programme will be removed.
Rate impact Moving from the Village Planning Programme to the proposed model would remove the funding currently allocated to Village Planning in the LTP. $600,000 in capital costs would be removed from the budget and $275,000 of ongoing operating and staff costs would be saved, resulting in a reduction in rates as indicated below.
The actual impact on rates will depend on what projects get adopted under the proposed model and these would be assessed by councillors alongside all other projects. The reduction in rates below only reflects the money saved from ending the Village Planning programme.
Adoption of a new model for Village Planning
Capital Cost: $600,000 saving
Year/s: 2021/22
Rate Impact: Adoption of this model would result in average yearly cost savings of $215,000 across the first three years of the LTP. This is a 0.24% or $9.53 per year decrease for the average ratepayer from 2021/22 (Year 1). We have not factored this cost saving into the LTP, it is assumed the average rate increase of 8.05% would go down by 0.24%.
Debt Impact: The $600,000 capital expenditure relating to Village Planning is already incorporated into the LTP. If the proposal is adopted, then Council would not be required to borrow this amount.
8. Te Rauparaha Arena hours Background The Council has explored a number of cost saving opportunities. One option we have identified is to reduce the opening hours of Te Rauparaha Arena.
Reducing the opening hours has an impact on the level of service provided to the community, and in accordance with our Significance and Engagement Policy we need to consult with the public on this.
What we are proposing We are proposing to open Te Rauparaha Arena at 6am each weekday, half an hour later then we currently do. This would mean no entry to pool, gym or stadiam until 6am. This is a reduction of 2.5 hours a week. We believe this will save at least $20,000 a year in operational costs from reduced salaries and wages.
This will impact current users including pool users and fitness members. It is not proposed to reduce admission fees or membership fee in conjunction with the reduced hours as this will not result in any cost savings. As this is a reduction in the level of service we provide to the public, we want to hear your feedback.
Your view » Do you support the proposed reduction in opening hours at Te Rauparaha Arena?
Reducing operational hours of Te Rauparaha Arena
Capital cost: -
Year/s: 2021/22
Rate Impact: This initiative would result in yearly average cost savings of $42,000 from 2021/22 (Year 1) of the LTP. This is a 0.05% or $1.90 per year for the average ratepayer from 2021/22 (Year 1). We have not factored the reduced hours into the LTP, it is assumed the average rate increase of 8.05% would go down by 0.05%.
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9. Living wage to contractors Background Living Wage Movement Aotearoa NZ advocates for a living wage that provides workers and their families with the basic necessities of life, to live with dignity and to participate as active citizens in society. From 1 April the minimum wage will be $20 an hour and the living wage is $22.10 an hour, a difference of more than $4,000 per year for a full-time worker.
Since 2016/17 Council has increased the minimum hourly wage for Council employees to bring them up to the living wage. Council’s lowest paid staff are now earning the living wage, which is updated on 1 July each year to match the living wage as part of its annual salary review process.
The Living Wage Movement Aotearoa NZ has continued to lobby for living wage to be extended to staff employed by contractors of the Council. If Council requires our contractors to pay the living
wage to their staff working for Council on a regular and ongoing basis (such as cleaners and security), there will be an increased cost to the Council estimated to be between $200,000 and $400,000 per year.
What we are proposing In the LTP we have not allocated the additional funding needed to extend the living wage to contractors. We have two options:
1. Maintain the status quo and only Council staff are paid the living wage. This will have no additional cost but will mean contractors may receive less than the living wage.
2. Commit to paying the living wage to new contractors and to existing contractors as contracts come up for renewal. This will have an increased cost to the Council.
Your view » Do you support the Council extending the living wage to contractors?
Payment of living wage to contractors
Capital cost: -
Year/s: 2021/22 to 2023/24
Rate Impact: This initiative would result in an average of $300,000 per year increase across the first three years of the LTP. This is a 0.34% or $13.60 per year for the average ratepayer from 2021/22 (Year 1).
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10. How to go about balancing the budget Background We need to adequately fund our services and invest in our infrastructure, but we also need to manage our debt and keep rates at an affordable level. The Local Government Act 2002 requires that we balance our books. This means we need to keep our rates at a level that ensures we aren’t borrowing to pay for our day-to-day expenses.
The Act does allow for Council to not achieve a balanced budget if it resolves that it is financially prudent to do so. In the 2018 LTP we planned to balance our budget in 2022/23.
What we are proposing We are proposing a further one-year extension of the balanced budget, meaning we won’t balance the budget until 2023/24. Achieving the balanced budget in 2022/23 as planned would require double-digit rate increases. To provide more consistent rate increases we are also proposing to smooth rates across the first three years of the LTP. This means we will avoid a large rate increases in the next two years, but higher rates in 2023/24.
The impact on rates of extending the balance budget and smoothing is illustrated in the graph below.
Rate Increase to existing ratepayers
0
2
4
6
8
10
12
2021/22 2022/23 2023/24
%
Your view » Do you support extending the balanced budget by one year out to 2023/24 and
smoothing the rate increase across the first three years of the LTP?
Rate Impact: Our projected average rate increase of 8.05% has already factored in extending the balanced budget by one year and smoothing the rate increases across the first three years of the LTP.
Our climate change response Over the next few years we will be taking action to help mitigate the effects of climate change and to prepare the city for the future impacts based on our recently adopted Climate Change Strategy. To action that strategy we have allocated $300k to undertake the analysis needed and get some key information about our greenhouse gas emissions. As we are still in the early stages of our response work we do not have any significant capital proposals in this LTP that we are consulting on. However, climate change is a long-term issue for all of us, so we will be sure to consult with you as our plans for response develop.
Responding to Covid-19 When we developed our Recovery Plan we consulted with the community to understand how we can help people get through the Covid-19 pandemic. While we are not making any proposals in this LTP, we remain committed to supporting the community and maintaining our services.
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1 wrgf.co.nz/wp-content/uploads/2020/10/1246-GWRC-Draft-Framework-Report-SEPT-2020-14.pdf 2 ‘greenfield’ land is undeveloped land in a city or rural area either used for agriculture or landscape design or left to
evolve naturally. Rather than building upon greenfield land, a developer may choose to redevelop brownfield, which have been developed but left abandoned or underused. Source Wikipedia.
The Wellington Regional Growth Framework is a long-term vision for the region that identifies how the region will respond to growth at a spatial level. The Framework is a collaboration between local governments, central government, and mna whenua. Porirua City has worked collaboratively on the Framework and in so doing, has incorporated work we have already developed in our Growth Strategy and Proposed District Plan.
Consultation on the Framework is being run by the Wellington Regional Growth Framework team, not Porirua City. If you have any feedback on the framework you can provide it to Wellington Regional Growth Framework team through their website wrgf.co.nz
The Draft Wellington Regional Growth Framework1 is a 30-year spatial plan for the Wellington-Wairarapa-Horowhenua region developed by local government, central government and iwi partners to provide regional direction for growth and investment.
The region is facing a number of challenges with housing and urban development, transport and resilience for the future. These challenges are regional issues that are best dealt with in integrated ways
The draft Framework delivers on the Urban Growth Agenda objectives of the Government, which includes improving environmental, employment, transport, and housing outcomes for communities. The draft Framework takes the National Policy Statement on Urban Development 2020 into account and provides a scenario for accommodating an additional 200,000 people and 100,000 jobs in the region over the next 30 years.
The draft Framework’s objectives include:
• enabling more housing development around transport nodes and at a higher density
• developing more greenfield2 housing development that is higher density and connected to public transport
• increasing housing capacity in major centres
• investigating improved multi-modal west-east connections across the region.
Work already underway by councils in the region including Porirua City Council’s Growth Strategy and Proposed District Planning have been taken into account. The draft Framework is consistent with Porirua City enabling more intensive residential growth throughout its existing urban footprint, especially within medium density residential areas in the Proposed District Plan.
Porirua City Council has been working with other councils, central government and iwi on the Framework and we are working on a joined governance for implementation of the Framework, once finalised. Consultation on the Wellington Regional Growth Framework is being undertaken at the same time as the LTP, but not as part of our Council consultation. To participate in the consultation on the Framework, or for more information, please go to wrgf.co.nz/have-your-say
Policies and strategies Every three years we review a number of our major policies and strategies alongside the LTP.
Development Contributions Policy As the city grows we need to invest in infrastructure to meet the needs of residents. This includes the 3 waters, roading, public facilities, and parks. The Development Contributions (DC) Policy allows us to collect funding from developments to help cover the cost of this infrastructure. This ensures the cost of providing infrastructure to support new developments doesn’t entirely fall on current ratepayers.
We review the DC Policy every three years. We are reviewing the DC at the moment and will be consulting with the public later this year. You can find the current policy here: poriruacity.govt.nz/ltp/#documents
Fees and charges We have been working hard to be more customer- focused and in some areas this has added costs to provide a better service for our customers. We think that it’s fairer if customers, who benefit directly from particular services, pay more so that these costs are not passed onto all ratepayers.
We’re proposing to increase some fees and charges over the next three years – this will also help us to keep rate increases down. We are looking to increase most of our regulatory fees by 3 per cent and most other fees by 1.5 per cent each year for the next three years. Here are some of fees and charges we are proposing to change:
• Aquatics centre charges for children relating to supervision system costs for health and safety;
• Alignment of water connection fees to recover actual costs of services.
We are looking to increase most of our regulatory fees by 3 per cent and most other fees by 1.5 per cent each year for the next three years. To take a look at these proposed changes go to our website poriruacity.govt.nz/ltp
Financial Strategy Background and key areas of focus Our 2021 Financial Strategy continues to support the principles we agreed with you in both 2018 and 2015. We said we would:
• have a prudent budget keeping debt levels manageable
• prioritise infrastructure investment
• ensure large costs are spread over generations, so everyone who benefits, helps pay.
We remain committed to these principles to provide the foundation for achieving a balanced budget and moving to a more sustainable financial base.
The Financial Strategy covers the next 30 years to 2051. By doing this we are promoting transparency and clarity with what we need from our assets in the long-term. Another advantage is that we can more effectively align with our 30-year Infrastructure Strategy and asset management plans. To view the full Finance Strategy visit poriruacity.govt.nz/ ltp/#documents
The LTP enables Council another opportunity to review and reprioritise our approach to core infrastructure investment and ensure our communities are best placed for the future – particularly in regards to our water infrastructure. The focus has been on understanding the condition and performance of our assets, planning for the growth in our City and ensuring we achieve the environmental outcomes our community wants. We have reprioritised our planned spending and are proposing to invest $800 million on the 3 waters core infrastructure and $323 million on Transport in the LTP.
We are pleased with where we are at on our journey to balance the budget, with a financial position that is basically sound and a strong balance sheet that is supported by our Standard & Poor’s A+ credit rating.
Covid-19 and how everything changed We have reviewed our financial approach to the LTP given the ongoing impacts of Covid-19. We have been mindful of ensuring that the cost of services balances Council debt and the impact on ratepayers and the community.
Our Annual Plan 2020/21 was reviewed in light of the pressures we were facing, and the decision was made to keep to the rate increase at 4.98% as outlined in year 3 of the 2018 LTP. This required Council to take on more debt to fund the increase in core infrastructure cost due to the uncertainty that came from the nationwide lockdown.
We saw a drop in revenue of $1.4 million and had to revise our budgets to account for decrease in our estimated income. This ultimately resulted in a decrease in revenue of $1.9 million, or a 2.8% equivalent average rate increase. We have also worked on identifying further savings opportunities and efficiencies within our business model.
Hard decisions were made around our capital programme and what projects we could invest in. We have seen a significant increase in our spending in core infrastructure to support the future of our city and had to balance this approach without putting undue pressure on ratepayers. We must not only consider the financial constraints on our infrastructure but the ability to deliver the capital program.
Balancing the budget We need to adequately fund our services and invest in our infrastructure, but we also need to manage our debt and keep rates at an affordable level. The Local Government Act 2002 requires that we balance our books. This means we need to keep our rates at a level that ensures we aren’t borrowing to pay for our day-to-day expenses.
In 2018 we talked with the community about how we could get the right mix between affordable rating levels, debt management, and balancing our books
as required by the Local Government Act 2002. We agreed together to plan to balance our books by 2021/22.
As part of the 2020/21 Annual Plan we extended the balanced budget again to 2022/23, in light of the impact of Covid-19. In order to ensure we balance the need to adequately fund our services and the affordability of rates we a proposing extending the balanced budget one further year to 2023/24. See how we plan to do this below.
Rate increases and a consistent approach We are committed to balancing the budget and continuing to fund for depreciation and that’s why rate increases for the next three years may be higher than Council and residents would like. Rate increases between years can be significant as the impacts of some assets and expenses vary. To soften this, we have decided to provide consistent year-on-year rate increases, rather than big highs and lows over the next three years.
We are looking to have consistent annual average rate increases for the first three years of 8.05 per cent through to the end of 2023/24, excluding any
impact from revaluations. This will give us time to implement a number of efficiencies and revenue increases that will give us a solid platform from 2025 onwards.
It is worth noting that the rate level of 8.05 per cent for years 1-3 of the LTP is driven by our continual investment in infrastructure and the need to balance the budget by 2023/24. These contribute to the 8.05 per cent as follows:
General increase 2.81 per cent
Infrastructure 2.57 per cent
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-12
-10
-8
-6
-4
-2
0
2
4
6
$ m
n
‘Porirua City balanced budget defined as Local Government (Financial Reporting and Prudence) Regulations 2014 definition modified to exclude costs and gains from asset sales and NZTA’s capital subsidies from the calculation of revenue’.
Balanced budget achieved
Average Capital
Residential
Lower Quartile 427,000 2,744.36 2,940.54 7.15% 392.94 496.59 57.60 423.96 1,569.45 2,940.54
Median 644,000 3,459.29 3,737.40 8.04% 392.94 496.59 57.60 423.96 2,366.31 3,737.40
Upper Quartile 755,000 3,826.65 4,146.85 8.37% 392.94 496.59 57.60 423.96 2,775.76 4,146.85
Rural
Median 1,195,000 3,375.41 3,937.92 16.66% 423.96 3,513.96 3,937.92
Upper Quartile 1,555,000 4,265.29 4,995.88 17.13% 423.96 4,571.92 4,995.88
50 hectares & greater
Median 2,493,000 6,173.83 6,837.39 10.75% 423.96 6,413.43 6,837.39
Upper Quartile 6,998,000 16,574.22 18,429.57 11.19% 423.96 18,005.61 18,429.57
Hongoeka community
Median 544,000 1,675.94 1,824.08 8.84% 423.96 1,400.12 1,824.08
Upper Quartile 691,000 2,015.85 2,202.93 9.28% 423.96 1,778.97 2,202.93
Commercial
Lower Quartile 328,000 4,989.69 5,330.60 6.83% 392.94 496.59 423.96 282.33 3,734.78 5,330.60
Median 643,000 8,572.34 9,198.93 7.31% 392.94 496.59 423.96 554.21 7,331.23 9,198.93
Upper Quartile 1,384,000 16,977.77 18,274.61 7.64% 392.94 496.59 423.96 1,192.08 15,769.05 18,274.61
Industrial
Lower Quartile 372,000 5,495.87 5,877.13 6.94% 392.94 496.59 423.96 320.75 4,242.90 5,877.13
Median 675,000 8,933.50 9,588.90 7.34% 392.94 496.59 423.96 581.62 7,693.79 9,588.90
Upper Quartile 1,168,000 14,531.41 15,633.19 7.58% 392.94 496.59 423.96 1,006.43 13,313.27 15,633.19
Motels
Shopping plaza
Upper Quartile 82,607,000 894,490.32 1,072,834.87 19.94% 24,829.41 35,612.73 71,153.80 941,238.93 1,072,834.87
Capital expenditure over the next 30 years (including inflation) Over the first 10 years of the LTP we are proposing to spend $738 million on capital investment, 54 per cent of which will be in the wastewater, stormwater and drinking water areas, and 17 per cent on transport.
This significant capital investment will be funded by debt and from rating for depreciation. A breakdown of our capital expenditure for each 10-year period of the LTP is provided below.
Per cent
Capex $738
Stormwater 3 1 4
Transport 17 19 24
Property 6 2 3
CBD, Future Projects & Strategic Land Purchases 6 8 8
Others 5 7 7
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Debt and rating for depreciation We have seen a significant increase in our capital projects from the last LTP. This has meant we have increased our debt to pay for what we can’t cover with depreciation and any capital subsidies received.
Depreciation is applied to recognise the use of the city’s assets evenly over their economic life. Depreciation is charged to today’s ratepayers and this pays for the renewal of these assets to make sure that the cost is shared evenly and that future generations aren’t unfairly burdened.
As shown in the following table, the city’s debt over the first ten years goes from $131 million to a projected maximum of $372 million in Year 9 (2029/30) and back to $371 million in Year 10 (2030/31).
The increase in the city’s debt is the result of our major infrastructure renewals such as water supply, stormwater, wastewater reticulation and roading.
We have carefully considered the timing of our capital programme and the associated borrowing requirements to ensure that this best meets the needs of current and future generations.
To read the full Financial Strategy go to poriruacity.govt.nz/ltp/#documents
21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31
Year 1 2 3 4 5 6 7 8 9 10
Debt ($ million) 131.1 160.8 210.8 263.8 297.1 327.6 348.8 365.6 369.3 371.6 370.8
Ratio of debt to operating income
Limit 280%
137% 161% 183% 191% 211% 227% 229% 221% 213% 205%
External interest as a % of operating income
Limit 20%
5% 5% 6% 7% 8% 9% 10% 9% 9% 9%
Infrastructure Strategy The Infrastructure Strategy for Porirua City poriruacity.govt.nz/ltp/#documents outlines the Council’s infrastructure investments for the next 30 years, including how we intend to:
• improve the condition and performance of assets
• prepare for residential growth
• improve environmental outcomes for water quality, waste minimisation, carbon reduction and use of parks and reserves
• consider the impacts of climate change and opportunities to improve resilience; and
• respond to increasing community expectations, and government standards, around infrastructure.
Factors influencing infrastructure Central Government expectations The Government is considering 3 water reform and regulatory changes that will impact the way Councils deliver 3 waters services to the community. In the meantime, while Government is working on its proposals for change, Porirua City Council will continue to provide drinking water, wastewater and stormwater services with our delivery partner Wellington Water.
Improving the condition, performance and capacity of 3 waters assets (especially wastewater) to meet and maintain acceptable levels of service is one of the city’s biggest challenges. It is also important to comply with the National Policy Statement for Freshwater Management that requires water to be managed in an integrated and sustainable way.
The Government has set a national target of 90% of specified rivers and lakes to be safe for swimming and recreation by 2040 (and an interim target of 80% by 2030). The health of our harbour and surrounding catchments is a high priority for the Council and the community. Leaking and overflowing pipes degrading the quality of our water is not acceptable.
Population growth It is anticipated that Porirua City will need an additional 10,035 new dwellings by 2051 to accommodate an additional 28,635 residents.
Accommodating this growth needs to be managed in accordance with the National Policy Statement for Urban Development 2020 that supports increasing the supply of houses.
We have considered the impact of population and housing growth (including housing intensification) on our infrastructure assets and reflected this in our major infrastructure projects. For example, new parks and reserves in areas of urban growth and increasing capacity of water and transport networks to cope with more people.
Climate change and natural hazard resilience Rising sea levels and increased rainfall coupled with the effects of storm surge are increasing the likelihood of flooding and erosion in Porirua. The Council declared a Climate Change Emergency in June 2019 and subsequently developed the Climate Change Strategy 2021-2024 to adapt to and mitigate the challenges we are facing.
We are improving our understanding of the impacts of climate change on the city’s infrastructure. A planned risk assessment of the impacts of climate change on the city will inform future infrastructure investment decisions.
The Council has identified the key natural hazards through our Proposed District Plan. We need resilient infrastructure to withstand the effects of natural hazards. We have factored in opportunities to improve resilience within renewal programmes. However, we are unable to address seismic strengthening of all water reservoirs, reinforcing the importance of residents having their own emergency water supply.
Capital programme delivery We are planning to significantly increase our investment in 3 waters and transport infrastructure over the next 30 years. Not doing so would increase the likelihood of failures with our networks, decrease the current levels of service, limit our ability to grow, and mean greater investment would be required in the future. The Council will prioritise the upgrading of critical infrastructure to maintain levels of service and avoid network failure. For full details see our Infrastructure Strategy.
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In developing the LTP we have worked hard to understand and manage the uncertainties around the ability of the industry to deliver our capital programme. We have worked closely with industry experts to understand the scale of our programme and the ability of the industry to deliver it.
Demand for construction workforces is increasing as the demand to build more houses increases and competes with large infrastructure projects such as Transmission Gully. The number of infrastructure projects is growing and so is the cost of delivering them. To reduce this uncertainty, we are growing our workforce to increase our capacity to deliver projects and starting procurement early to give some certainty to the costs and process.
Covid-19 has introduced economic and social uncertainty. From an infrastructure perspective this creates uncertainty about our ability to deliver infrastructure projects within agreed timeframes. Border restrictions are affecting access to skilled workers and to construction materials. We continue to monitor the effects of Covid-19 on our ability to deliver and work with our partners and contractors to address these issues.
We will continue to work with key stakeholders to ensure our infrastructure projects can be delivered in a timely and cost-effective way.
Eastern Porirua Regeneration Project On 1 November 2018 the Government announced that it is investing $1.5 billion over 25 years to implement a regeneration programme for eastern Porirua. Kinga Ora (formerly Housing New Zealand) are working with Ngti Toa Rangatira and Council to upgrade about 2,000 state homes and build 2,000 new affordable homes and 150 public houses. The infrastructure plan that supports the LTP is reliant on Kinga Ora investment in eastern Porirua.
How we are responding Drinking water Up to 24% of our drinking water pipes are in poor or very poor condition. To maintain provision of safe and healthy water we will implement the Regional Water Safety Plan and improve the condition of water pipes.
We will encourage more efficient use of water in the city so our water supply remains sustainable for future generations and we can delay construction of a new water source for both Porirua City and the
Wellington Region. To make progress towards more efficient use of our water supply, we are planning the installation of water meters from 2025.
Wastewater As much as 49% of the public wastewater network is in poor condition, leading to leaks and network overflows. We want to improve the condition of these pipes through wastewater renewals, increasing the capacity of wastewater storage and the wastewater treatment plant.
We have similar issues with the condition of private wastewater pipes with cross connections to stormwater pipes and leaking pipes. We are planning to work with property owners to address these issues. Improvements in both the public and private network will lead to better environmental outcomes and support population grow

Porirua – our place, our future, our challenge Let’s kōrero

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