HuttCity_TeAwaKairangi_BLACK_AGENDA_COVER

 

 

Long Term Plan/Annual Plan Subcommittee

 

 

19 October 2020

 

 

 

Order Paper for the meeting to be held in the

Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt,

on:

 

 

 

Tuesday 27 October 2020 commencing at 2.00pm

 

 

Membership

 

 

Mayor C Barry (Chair)

Deputy Mayor T Lewis

Cr D Bassett

Cr J Briggs

Cr K Brown

Cr B Dyer

Cr S Edwards

Cr D Hislop

Cr C Milne

Cr A Mitchell

Cr S Rasheed

Cr N Shaw

Cr L Sutton

 

 

 

For the dates and times of Council Meetings please visit www.huttcity.govt.nz

 

Have your say

You can speak under public comment to items on the agenda to the Mayor and Councillors at this meeting. Please let us know by noon the working day before the meeting. You can do this by emailing DemocraticServicesTeam@huttcity.govt.nz or calling the Democratic Services Team on 04 570 6666 | 0800 HUTT CITY

 

 


HuttCity_TeAwaKairangi_SCREEN_MEDRES

 

PURPOSE

To carry out all necessary considerations and hearings, precedent to the Council’s final adoption of Long Term Plans (LTP) and Annual Plans (AP) which give effect to the strategic direction and outcomes set by the Policy, Finance and Strategy Committee through setting levels of service, funding priorities, the performance framework and budgets.

 

Determine:

       Development of a framework and timetable for the LTP and AP processes.

       The nature and scope of engagement and public consultation required.

       Statements to the media.

       Such other matters as the Subcommittee considers appropriate and which fall within its Terms of Reference.

       Informal engagement with the community, and the hearing of any formal public submissions.

       Consideration of submissions on Hutt City Council’s Assessment of Water and Sanitary Services.

 

Consider and make recommendations to Council:

      Levels of service, funding priorities, performance framework, budgets, rating levels and policies required as part of the LTP or AP, excluding any policies recommended to Council by the Policy, Finance and Strategy Committee.

      Consultation Documents.

      Council’s proposed and final LTP.

      Council’s proposed and final AP.

      Final content and wording, and adoption of the final Hutt City Council Assessment of Water and Sanitary Services.

Note:

Extract from the Controller and Auditor General’s October 2010 Good Practice Guide: Guidance for members of local authorities about the Local Authorities (Members’ Interests) Act 1968

 

Appointment as the local authority’s representative on another organisation

5.47         You may have been appointed as the authority’s representative on the governing body of a council-controlled organisation or another body (for example, a community-based trust).

5.48         That role will not usually prevent you from participating in authority matters concerning the other organisation – especially if the role gives you specialised knowledge that it would be valuable to contribute.

5.49         However, you could create legal risks to the decision if your participation in that decision raises a conflict between your duty as a member of the local authority and any duty to act in the interests of the other organisation. These situations are not clear cut and will often require careful consideration and specific legal advice.

5.50         Similarly, if your involvement with the other organisation raises a risk of predetermination, the legal risks to the decision of the authority as a result of your participation may be higher, for example, if the other organisation has made a formal submission to the authority as part of a public submissions process.

 

    


HUTT CITY COUNCIL

 

Long Term Plan/Annual Plan Subcommittee

 

Meeting to be held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

 Tuesday 27 October 2020 commencing at 2.00pm.

 

ORDER PAPER

 

Public Business

 

 

1.       OPENING FORMALITIES - Karakia Timatanga 

Kia hora te marino

Kia whakapapa pounamu te moana

He huarahi mā tātou i te rangi nei

Aroha atu, aroha mai

Tātou i a tātou katoa

Hui e Tāiki e!

May peace be wide spread

May the sea be like greenstone

A pathway for us all this day

Let us show respect for each other

For one another

Bind us together!

 

2.       APOLOGIES 

3.       PUBLIC COMMENT

Generally up to 30 minutes is set aside for public comment (three minutes per speaker on items appearing on the agenda). Speakers may be asked questions on the matters they raise.       

4.       CONFLICT OF INTEREST DECLARATIONS

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have      

5.       Recommendations to Council - 27 October 2020

i)       Long Term Plan Amendment - Recycling and Rubbish Collection (20/1136)

                   To be separately circulated as a supplementary agenda as soon as practicable following audit clearance.

ii)      Long-Term Plan 2021-2031 - purpose, vision, and engagement topics (20/1207)

Report No. LTPAP2020/6/218 by the Head of Strategy and Planning     6

Chair’s Recommendation:

“That the recommendations contained within the report be discussed.”

 

iii)     Long Term Plan 2021-2031, Financial aspects (20/1205)

Report No. LTPAP2020/6/219 by the Chief Financial Officer                 12

Chair’s Recommendation:

“That the recommendations contained within the report be discussed.”

 

iv)     Long Term Plan 2021-2031 Rating Policy Review update report #2 (20/1140)

Report No. LTPAP2020/6/220 by the Manager Financial Strategy & Planning       69

Chair’s Recommendation:

“That the recommendations contained in the report be discussed.”

 

v)      Three Waters Investment 2021-31 Long Term Plan (20/1174)

Report No. LTPAP2020/6/223 by the Strategic Advisor                          94

Chair’s Recommendation:

“That the recommendations contained in the report be discussed.”

 

vi)     Draft Heritage Policy - engagement and consultation (20/1223)

Report No. LTPAP2020/6/224 by the Head of Strategy and Planning 104

Chair’s Recommendation:

“That the recommendations contained within the report be endorsed.”

 

6.       QUESTIONS

With reference to section 32 of Standing Orders, before putting a question a member shall endeavour to obtain the information. Questions shall be concise and in writing and handed to the Chair prior to the commencement of the meeting.   

 

 

 

 

 

 

Kate Glanville

SENIOR DEMOCRACY ADVISOR

            


                                                                                       8                                                       27 October 2020

Long Term Plan/Annual Plan Subcommittee

06 October 2020

 

 

 

File: (20/1207)

 

 

 

 

Report no: LTPAP2020/6/218

 

Long-Term Plan 2021-2031 - purpose, vision, and engagement topics

 

Purpose of Report

1.    The purpose of this report is to:

a.      Ask for Council direction on the purpose, vision, and engagement themes for the Long Term Plan 2021-31 (LTP).

Recommendations

That the Subcommittee recommends that Council:

(i)      notes the results of the Councillor hui on 21st September in relation to the themes, direction, and strategic drivers;

(ii)     notes that the hui themes, direction, and strategic drivers have informed the further analysis conducted by officers;

(iii)    notes that the further analysis was guided by the hui facilitator to ensure continuity between the ideas generated at the hui and the suggested purpose, vision, and topics for LTP engagement;

(iv)    agrees to the suggested purpose, vision, and themes for LTP engagement ;

(v)     notes that a high level Stakeholder Management Plan for the LTP has been developed;

(vi)    notes that officers have assessed the Council’s Significance and Engagement Policy, including its use in several recent consultations; and

(vii)   agrees that the Significance and Engagement Policy will be retained without change.

Having agreed to develop a thirty year plan for the city, the Long-Term Plan 2021-2031 is Council’s first opportunity to begin setting the purpose, vision, and priorities for Te Awakairangi. It is an opportunity to partner with Mana Whenua, and alongside our communities, to develop our thinking about the kind of city we aspire to be and can be.

Agreeing a purpose, vision, and priorities will help inform Council’s engagement with our people on both the LTP and its City Plan.

 

Background

2.    Council agreed the following key directions, assumptions, and priorities at its meeting on 29 September. (Report No. LTPAP2020/5/210)

Key direction/assumption

Priority

Partnership with Mana Whenua

 

·       The relationship with mana whenua, and tangata whenua as a whole, is essential for shaping the city across all four wellbeings.

Adapt and develop Council’s role to enable communities to shape and determine their future

·      Delivering a thriving city requires Council to challenge its own way of working, what it does and its priorities, in order to enable communities to exercise rangatiratanga and shape their own future.


 

Key direction/assumption

Priority

Need to adapt to climate change and consider this across all business areas – it’s everyone’s responsibility

 

·       Take account of climate change in relation to where we live, how we’ll live, and how we’ll service communities. Protect and enhance environment and  biodiversity

Inequity will grow unless addressed

 

·       The city has entrenched areas of social need and poverty and inequality undermine the aim of creating a city where everyone can thrive.

Achieving our aims in a financially  sustainable way

·       Explore fair/equitable and sustainable means of paying for infrastructure and services, and ensure we are investing in services and development at the right time

Population growth will be consistent with forecasts

 

·       Service demand will change as population changes, and pressure on housing will continue. The population is likely to continue becoming more diverse with smaller households.

Housing need and demand will continue to grow as will need for higher quality housing

 

·       Continue to grow housing supply and diversify the type of housing available. We need a focus along the housing continuum i.e. including dealing with housing hardship, affordability of rental and home ownership, and housing quality. We’ll also need to invest in the infrastructure required and creating places – connected neighbourhoods.

Significant investment is required in the water system 

 

·        Maintaining the quality of potable water and dealing effectively with storm and waste water, including the impact on the environment. Exploring ways of managing use/demand.

 

Discussion

 

3.    The themes and discussions from the Councillors hui in September informed further analysis of the key directions and priorities presented to Council at its 24 September meeting. To ensure continuity of thinking, officers worked with the facilitator of the Councillor hui using the findings in relation to key drivers and desired shifts to refine the research and to develop a vision, goals, and emerging options for Council to consider.

4.    The results of this analysis were further discussed with Councillors and Corporate Leadership Team on 13 October. Discussion at this hui included confirmation of Council’s partnership with Mana Whenua and the plan to work together to engage with key stakeholders in the city from September 2020, prior to the formal consultation beginning in April 2021. 

5.    During the discussion with Councillors, officers presented the themes and ideas that have emerged over the last 12 months. These include the importance of effectively providing basic services, environmental protection, and ensuring that everyone in Lower Hutt can thrive supported by financial sustainability and the principle of fairness in paying for services.

6.    Officers also discussed the results of further work with the facilitator of the Councillor hui that focused on purpose and vision, key concepts and phrases that spoke to what makes Te Awakairangi unique - thriving people, kotahitanga, togetherness and partnering for greater impact, and kaitiakitanga.

7.    The results of these discussions in terms of purpose, vision, and LTP engagement topics are presented below:

a.    Purpose = To ensure our city and all of our people can thrive

b.    Vision = Te Awakairangi. The future is made here

c.    LTP engagement themes:

i.   Three waters – investment needed in infrastructure and to accelerate growth for a quality water service that enables our city to be resilient and green.

ii.  Financial sustainability

iii.   An innovative and agile economy – a fresh approach to economic development that attracts job

creators and enables local working.

iv. Climate change – local action together to adapt to climate change and put us ahead on the shift to a smart zero carbon economy.

v.    Housing - standing up for those without an affordable, healthy, home, and innovating to grow the supply of diverse housing.

vi.   Attractive city – our city will attract more new people and job creators because of our unique quality of life.

vii.            Transport – investing in sustainable transport for connected

       neighbourhoods, reducing congestion, and zero carbon.

viii.           Council role – developing Council’s and the community’s capacity to work together.

ix. Infrastructure – with a specific focus on rebuilding Naenae Pool

 

Communication and Engagement

8.    A high level Stakeholder Management Plan and a Communication and Engagement plan have been developed to ensure effective engagement on the LTP.

9.    The Stakeholder Management Plan has been developed to provide a high level overview of Council’s Mana Whenua partnership and of our broad stakeholder groups. The plan will assist with our understanding of the concerns of our partner and stakeholders, and how we intend to engage. From Council, engagement will be led by the Mayor, Elected Members, and Chief Executive, supported by the Corporate Leadership Team and staff.  Key elements of the approach are:

·    Understanding how we engage with Mana whenua

·    Enabling partnership with Mana Whenua, leading to effective participation and shared decision-making. This includes meaningful, timely and inclusive engagement at all levels that requires teams to think about the role of tangata whenua in the planning and delivery of our work programmes.

·    Understanding how we engage with our stakeholders

10.  The Communication and Engagement Plan will be broken into four stages.  Aside from those four stages elected members and officers will engage the community on a monthly basis from September 2020 to March 2021 using the LTP engagement themes as a guide.  The four stages are:

·    September 2020 – March 2021: pre-engagement with Mana Whenua, and then engagement with stakeholders

·    October 2020 – March 2021: design and produce the underlying information and consultation document

·    April – May 2021: promotion and consultation

·    May – June 2021: Produce the final LTP document followed by governance decisions, audit, and publication of the final document.

Significance and Engagement Policy

 

11.  Officers have assessed the Significance and Engagement Policy required under section 76AA of the Local Government Act 2002.  Firstly, officers explored recent use of the policy. Council has used its current policy to good effect a number of times during the last year, for example, in relation to the LTP Amendment, Draft Annual Plan, Rubbish and Recycling, and the consultation about Naenae Pool.

12.  Secondly, officers assessed the policy against those of a number of local authorities e.g. in terms of whether it provides clarity on when communities can expect to be engaged in decisions and the level of engagement required and the description of how Council determines significance and impact, with criteria used including:

·    Impact on services or levels of service,

·    Community interest,

·    Consistency with Council strategy or policy,

·    Ability to reverse the decision, and

·    Cost implications

13.  As a consequence, officers are not recommending any changes to the policy at this time. It is also noted that Council’s current policy follows the best practice advice of theNew Zealand Society of Local Government Management (SOLGM).

Climate Change Impact and Considerations

 

14.  The matters in this report which are in relation to climate change are from the report to Council on 29 September (Report No. LTPAP2020/5/210) and were considered in accordance with the process set out in Council’s Climate Change Considerations Guide.

15.  The need to adapt to climate change and consider this in decision making across all business areas is a key assumption that has been agreed by Council.  Mana whenua, as kaitiaki, have a key interest in protecting the environment. 

Consultation

 

16.  Not applicable at this stage. A high level Stakeholder Management Plan and an engagement plan have been developed to ensure effective engagement on the LTP in the period up to March 2021 and for formal consultation between April and end of May.

Legal Considerations

 

17.  Not applicable

Financial Considerations

 

18.  This paper does not have any direct financial impacts. The Long Term Plan 2021-2031, Financial Aspects paper on the agenda discusses the financial matters.

Appendices

There are no appendices for this report.   

 

 

 

 

Author: Wendy Moore

Head of Strategy and Planning

 

 

Author: John Pritchard

Principal Policy Advisor

 

 

 

 

 

Approved By: Matt Boggs

Director, Strategy and Engagement

 


                                                                                      21                                                      27 October 2020

Long Term Plan/Annual Plan Subcommittee

06 October 2020

 

 

 

File: (20/1205)

 

 

 

 

Report no: LTPAP2020/6/219

 

Long Term Plan 2021-2031, Financial aspects

 

Purpose of Report

1.    The purpose of this report is to progress initial finance related matters in relation to the Draft LTP 2021-2031.

Recommendations

That the Subcommittee recommends that Council:

(i)        considers the budget matters as detailed in table 2 and provides direction to officers in the preparation of the Draft LTP 2021-2031;

(ii)       considers any further direction and guidance to be provided to officers ahead of preparation of the draft LTP 2021-2031.

 

 

Acronyms:

AP - Annual Plan 2020/21

DLTP – Draft Long Term Plan 2021-2031

FLTP – Final Long Term Plan 2021-2031

CD – Consultation document

Capex – capital expenditure

Opex – operating expenditure

LGA – Local Government Act 2002

RFP - Revenue and Financing Policy


 

Section A – High-level plan for LTP 2021-2031 (LTP)

2.    Council is required to prepare a ten year LTP every three years.  The LTP Subcommittee endorsed the high level plan for the LTP 2021-2031 on 24 September 2020.  Table 2 provides a summary of the process completed to-date together with the next stages and timing.

Table 1: High-level plan

Activity

Date

Status

Officers progress initial planning and preparation

July to August 2020

Complete

Waste Services Review -  LTP amendment  decision of Council

15 Sept 2020

Complete

Council endorsed the high level plan and key assumptions. Initial decisions progressed on strategic direction, key policies and financial aspects.

24 Sept 2020

 

Complete

Further progress decisions on strategic direction, policy reviews, public engagement plans and financial aspects (incl. three waters investment options).

27 October 2020

 

Today

Relevant policy reviews completed and approved for consultation. Key decisions progressed to inform Draft LTP (DLTP), including activity management plans (budgets, fees and charges etc.) 

30 Nov 2020

 

Key decisions finalised by Council to enable draft CD and Draft LTP (DLTP).

21 Dec 2020

DLTP  and draft CD approved

2 Feb 2021

DLTP and CD audited (six weeks)

Feb 2021

Council adopt CD for public engagement

22 Mar 2021

Public consultation

29 Mar to 3 May 2021

Hearing of submissions and related advice

12 May 2021

Council meets to make final decisions

9 June 2021

Council adopts the LTP and sets the rates

30 June 2021

 


 

Section B – Strategic financial context and background

3.    At the LTP Subcommittee meeting 24 September 2020, the strategic financial context was presented (refer report LTPAP2020/5/212). A number of important decisions were progressed in relation to the drafting of the LTP:

-     Financial Strategy principles agreed (refer Appendix 1),

-     A revised LTP activity structure agreed,

-     LTP revenue, operating and capital expenditure key assumptions agreed,

-     Debt management – a revision to the debt to revenue limit agreed,

-     Budget decisions on a number of matters including Naenae pool, Eastern bays cycleway, Cross Valley Transport Connections Programme and Homelessness Prevention.

 

4.    The LTP Subcommittee also progressed key policy decisions with important financial considerations; this included the Revenue and Financing policy, Rating policy and Development Contributions policy.

5.    Advice from Wellington Water was presented on investment options for the LTP. The LTP subcommittee requested officers to undertake further work with Wellington Water to specifically address the affordability concerns about these three waters investments. A separate report on this agenda provides further advice on this matter. 


 

Section C - Budget matters for consideration by Council

6.     As previously agreed a base budget review is being progressed as part of the LTP. In September the Corporate Leadership Team reviewed detailed base budget information over a three day period. As a result of this process, there are a number of matters where decisions/directions is now sought from Council. In order to progress the development of the DLTP Council is requested to consider each of these budget matters in table 2 and provide direction to officers.

 

Table 2: Budget matters requiring Council review and decisions

 

Brief description

Financial impact over the ten years of the LTP and officers recommendation

Further information(Appendix 2)

1.

Dowse Museum – increase capacity to have more public education programmes by closing the Museum to the public on Monday. The programmes could include school and community groups, and also longer more in depth group programmes. Building and exhibition maintenance could be carried out on Monday’s to ensure uninterrupted visitor experience on other days.

A reduction in opex of $0.2M and increased revenue of $0.1M.

This is largely due to slightly reduced staffing on Monday and additional revenue generation from some of the new activities offered. 

Officers recommend the approval of the proposed changes.  

Refer Attachment  A

2.

Dowse Museum Collections Store Refurbishment.

This work has been planned for many years and is budgeted to occur in 2021/22. The proposal is to defer $0.8M of the $1M budget out one year to 2022/23. The works would address the current inefficient storage solutions for the collection assets and also address health and safety risks.

No change to overall budget proposed – change timing with $0.8M deferred to 2022/23.

Approval is also sought to progress securing additional funding towards the project.

Officers recommend the approval of the proposed changes.

Refer Attachment B

3.

Library services – collections replacement budget.

As part of the Annual Plan 2020/21 budget cuts, this budget was reduced by 20% (by $170k down to $680k). Attachment C provides comparisons to other councils and rationale for the proposed changes to the future LTP budgets. In summary a 10% reduction of budget is proposed for 2021/22 with modest increases thereafter.

A reduction in capex of $0.4M.   

Officers recommend the reduction in this budget. 

Refer Attachment C

4.

Stokes valley pool roof and Huia pool roof.

After testing the budgets through independent contractors for the pool roofing projects (Huia old $0.28M and Stokes Valley $0.4M) the budget is insufficient to complete both roof replacements. If the work is not completed then serious damage to the structure of the building will start occurring and a more expensive cost and loss of service to the community.

Increase capex by $0.65M to complete these works in 2021/22 (total budget of $1.6M)

Officers recommend the approval of the proposed changes.

Refer Attachment D

5.

Huia pool replace moveable floor 2024/25

Based on high level cost estimate to replace the current movable floor it requires an additional amount of $0.45M, in addition to current budget of $1M (total $1.45M). The current floor is 39 years old and will be 44 when the work is completed.

An increase in capex of $0.45M.

Officers recommend the approval of the proposed changes.

Refer Attachment E

6.

Activating Naenae town centre

With the closure of the Naenae pool, funding was approved for Naenae of $0.3M for two years (activities $100k and activation $200k). The funding source for this was from the Naenae pool operating budgets.  Given the extended delivery date of the project, it is proposed that this funding is extended for a further two years until the Naenae pool project is completed in 2023/24.

No net impact on budgets as involves transfer of funding of $0.3M from Naenae pool budget. 

Officers recommend approval of the proposed change.

Refer Attachment F

7.

Spatial planning

The existing ‘Suburban shopping centre’ capital budget is proposed to be replaced by a Spatial planning operating budget. This funding would enable the City plan, Naenae and Wainuiomata plans to be progressed in 2020/21.

Capex of 1.44M (Suburban shopping centre budget)   over the period 2020/21 to 2030/31 is proposed to be reprioritised to opex of $1.63M. .

Officers recommend the approval of the proposed budget changes.

Refer Attachment G

 

8.

Extend partner program - Love Wainuiomata

Additional funding is sought to enable Love Wainuiomata to continue involvement in spatial planning for the town centre and surrounds and continue to implement the Wainuiomata Development Plan with the community. There is no funding set aside in the LTP for Love Wainuiomata as it was approved for a fixed term.

Additional opex of $1M.

Officers recommend the approval of the proposed budget changes.

Refer Attachment H

 

9.

Extend partner program- Business incubator funding/start up hub

Additional funding sought is to continue a business incubator/start up hub to encourage the start-up and development of future digital and physical product ventures.

In 2020/21 there is funding of $0.1M for the business incubator due to a carryover from 2019/20.

Additional opex of $1M.

Officers recommend the approval of the proposed budget changes.

Refer Attachment I

 

10.

Wellington Regional Growth Framework

The additional funding sought is for Council to participate in the master planning of the Lower Hutt triangle project with iwi and multiple government agencies.

Increase in opex of $0.6M (in the first three years of the LTP).

Officers recommend the approval of the proposed budget changes.

Refer Attachment J

11.

Wise Street Extension

Funding is sought is to enable housing development to continue within the Residential zoned area of Wise Street, Wainuiomata to meet increasing housing demand. This would enable a further 180+ houses.

The capital cost of $1.2M will be recovered through Development Contributions.

Officers recommend the approval of this additional funding.

Refer Attachment K

12.

Transport –  road resurfacing

Resurfacing and rehabilitation of the network’s roads to ensure the safety and travel comfort of road users, as well as providing waterproofing to the road pavements to provide for longer life.

Increase capex by $16.3M (from $62.8M to $79.1M) a 25% increase. After adjusting for NZTA subsidy net costs over ten years of $8M. In 2020/21 the increase of budget is $0.4M p.a., with an assumed NZTA subsidy of $0.2M.

Officers recommend the approval of the additional funding.

Refer Attachment L

13.

Transport – roading network improvements

This proposed change is addressing the known upcoming increased programme of work required for the cyclic resurfacing of roads, to ensure the safety and travel comfort of road users, as well as providing waterproofing to the road pavements to provide for longer life. The programme of work requires current budget to be brought forward to align with the physical works timing.

There is no increase to budget requirement. Proposed changes to the timing of planned works, to enable a revised start of 2024/25 rather than previous planned start in 2029/30. Over the ten year period of the LTP there is an increase of $2.6M offset by NZTA funding of $1.3M.

Officers recommend the approval of the proposed changes. 

Refer Attachment M

14.

Transport – funding for bridges

Additional funding sought for annual condition inspections of the bridges, retaining walls and seawalls, together with undertaking the physical works of structural maintenance as identified in the inspections.

 

 

Increased opex by $2.27M  (from $3.78M to $6.05M) or 60% increase. After adjusting for NZTA subsidy net costs over ten years of $1.1M. In 2020/21 the increase of budget is $0.2M p.a., with an assumed NZTA subsidy of $0.1M.

Officers recommend the approval of the proposed changes.

Refer Attachment N

15.

Transport – traffic safety

Proposed safety driven improvements to intersections and routes and includes

·    Kerb extensions and refuge islands to improve pedestrian safety;

·    Raised platforms for pedestrian crossings and to slow traffic;

·    Median barriers;

·    Intersection geometry improvements;

·    Signalising priority controlled intersections;

·    Installation of roundabouts

Increase capex of $5.4M (from $4M to $9.4M), which includes no increase for 2021/22 and thereafter an increase of $0.6M per year.

Officers recommend the approval of the proposed changes.

Refer Attachment O

16.

Major events fund

Demonstrating a vibrant city by hosting a major event.

A major event could celebrate the diversity in Lower Hutt.

 

Increase opex of $1.35M, being additional funding of $0.15M from 2022/23 and onwards.

Given the cost pressures faced by Council for core infrastructure of Three Waters and Transport, officers do not recommend the proposed budget changes be approved. 

Refer Attachment P

17.

Upgrading the flag infrastructure across the city

The outdated flag system across the city makes it cost prohibitive to erect and remove flags on a regular basis. Having a decorated city is a high impact way to add vibrancy and life and demonstrate a thriving economy.  It is also a high impact way to promote events and activities to the city.

Increase capex by $0.3M.

Officers recommend the approval of the proposed changes.

Refer Attachment Q

18.

Petone Settlers Museum

The Museum is closed on Mondays and Tuesdays between Easter and Labour Day and is open 7 days during the alternative summer months. It is proposed that the Museum is closed on Mondays and Tuesdays throughout the year. Attachment R provides analysis of number of visitors and other analysis. Changes to the hours would enable larger school and community group visits, including more in-depth educational visits.

Reduced opex of $0.07M and increased revenue of $0.05M.

Officers recommend the approval of the proposed changes. 

Refer Attachment R

19.

Footpath renewals

Footpath renewals are required when the condition assessment determines that renewal is more cost effective than continued maintenance. Appropriate maintenance and renewal of footpaths is essential to ensure the safety of footpath users.

Increase footpath renewal budget by $2M (from $2.1M to $4.1M).

Funded from transfer of budget from Road reconstruction budget $1M, together with additional funding of $1M to meet the needs of growing network across the city.

Refer Attachment S

Next steps

7.     There are a number of matters from the base budget review process which require further development ahead of presentation to the LTP Subcommittee. This includes, for example, addressing funding issues in relation to wharf assets and opportunities to change the way some services are delivered across the city. These will be presented at the next Subcommittee meeting.

8.     The next stage of the LTP process includes the preparation of activity management plans and detailed budgets. Officers are currently progressing through this process and plan to report back on progress at the next Subcommittee meeting on the 30 November.

Climate Change Impact and Considerations

9.     The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide.  There are no direct climate change impacts or considerations arising from this report other than those identified within the report.

Legal Considerations

10.   The most relevant legislation includes the Local Government Act 2002, Local Government (Rating) Act 2002 and the Rating Valuations Act 1998. 

Financial Considerations

11.   There are a range of financial matters detailed in this report. Further financial considerations will be progressed as part of the LTP 2021-2031.

Appendices

No.

Title

Page

1

Appendix 1 : LTP 2021-2031 Financial strategy principles

22

2

Appendix 2 : Detail project information to support decisions.

24

    

 

 

 

 

 

Author: Jenny Livschitz

Chief Financial Officer

 

 

 

 

 

 

Reviewed By: Anna Welanyk

Director Transformation and Resources

 

 

 

Approved By: Jo Miller

Chief Executive

 


Attachment 1

Appendix 1 : LTP 2021-2031 Financial strategy principles

 

LTP 2021-2031 – Financial strategy principles

 

Summary:

1.    Council’s Financial Strategy promotes the sustainable funding of services and is based on the key principles of:

-     affordability of rates,

-     delivering services effectively and efficiently

-     achieving intergenerational equity by spreading the costs between both present and future ratepayers

-     maintaining prudent debt levels

-     strengthening Council’s financial position.

These principles provide the foundation to drive towards sustainable financial management.

 

Detailed financial principles:

1. That the financial strategy enables Council’s contribution to the vision for Lower Hutt.

2. Fairness and equity

The funding of expenditure is equitable across both present and future ratepayers.

a)   Intergenerational equity – the cost of long term assets should be met by ratepayers over the life of that asset. This is reflected by debt funding new assets and funding the replacement or renewal of assets from rates.

b)   Balanced budget – projected operating revenue over the lifetime of the LTP is set at a level sufficient to meet projected operating expenses, ensuring that current ratepayers are contributing an appropriate amount towards the cost of the services they receive or are able to access, i.e. ‘everyday costs are paid for from everyday income’.

3. Prudent sustainable financial management – budgets are managed prudently and in the best interests of the city in the long term. Debt must be maintained at prudent levels and be affordable.

4. Ability to pay (affordability) – affordability is an important consideration as it ensures that the ability of our diverse community to pay rates is transparently considered as part of the decision-making process. Consideration will be given at both the macro level (i.e. generally affordable to most) and also at the micro level (i.e. for a specific individual where rates rebates, remissions or postponement policies may be required).

5. Value for money – any proposals must contribute to the strategic outcomes agreed with the community and the total cost must be reasonable. The cost effectiveness of the funding mechanism must be considered.

6. Prioritisation of investment choices – careful consideration is given to investment choices and options, with priority given to core infrastructure investment and ‘invest to save’ options.

7. Environmental sustainability - Funding decisions will consider community outcomes being sought, including wider environmental and climate change impacts.

8. Distribution of benefits – consideration is given to the distribution of the benefits from Council activities over identifiable parts of the community, the whole community or individuals (users). Where there are identifiable direct benefits the proportion of costs associated with these benefits should be covered by the user(s).

9. Growth pays for growth – the capital costs incurred to develop infrastructure that supports growth within the city should be primarily covered by those causing the growth and increasing the demand on Council infrastructure.

10. Good financial governance and stewardship

Good stewardship of Council’s assets and finances requires Council to ensure that its actions now do not compromise the ability of future councils to fund future community needs. Under this principle:

a) Assets must be maintained at least at current service levels to avoid placing a financial burden on future generations.

b) Debt must not be used to fund operating expenditure other than in specific exceptional circumstances.

c) The level of debt is regularly reviewed to ensure that it is at a level that will not restrict a future council’s ability to fund new assets through debt.

d) The consequential operational expenditure implications of capital expenditure decisions are considered.

 


Attachment 2

Appendix 2 : Detail project information to support decisions.

 

 

Further detailed content on specific budget matters follows. Below is a summary of the contents of this attachment:

Attachment A: Close the Dowse to the public on Monday

Attachment B: Collections Store Refurbishment

Attachment C: Library collections budget

Attachment D: Stokes valley pool roof and Huia Pool roof

Attachment E: Huia moveable floor project increase

Attachment F: Activating Naenae’s town centre

Attachment G:   Spatial plans (City plan, Naenae and Wainuiomata)

Attachment H: Love Wainuiomata

Attachment I: Business Incubator/start up hub

Attachment J: Wellington Regional Growth Framework

Attachment K: Extension of Wise Street

Attachment L: Road resurfacing,

Attachment M: Roading Network improvements

Attachment N: Bridge maintenance

Attachment O: Traffic safety

Attachment P: Major events fund

Attachment Q: Upgrading flag infrastructure across the city

Attachment R: Petone Settlers Museum

 

 

 

 

 

 

 


 

Attachment A: Dowse Art Museum – Close on Mondays

1.

Project/ initiative

Close the Dowse Art Museum on Mondays

2.

LTP Activity

Social and Cultural  Wellbeing

Connectivity, creativity, learning and recreation

Art and Museums

3.

Business lead

Karl Chitham

4.

Brief project description

(problem/opportunity statement)

When asked to consider opportunities to not only make budgetary cuts, but also to think about new ways of doing things, the Museums leadership team considered a number of factors including how we might be more efficient as a team and how we could better serve both our local community and also our regional and broader arts and culture communities.

If approved this proposal would take effect from January 2021.

Rationale:

For some national context, of the 17 dedicated public art galleries surveyed only two are currently closed on Mondays with the remainder open 7 days (excluding some public holidays). This number does not include institutions that are a combined historical museum and art gallery (including Te Papa). Of these only one is closed on a Sunday and the remainder are open 7 days (excluding some public holidays).

Internationally the models are mixed with Australia and the United Kingdom having either 7 days open or they are closed one day a week. While central Europe and the United States generally favour one day closed a week.

The Dowse Art Museum’s busiest days are Saturday and Sunday, with our lowest daily visitation generally being on a Monday. This evidence is supported by our door counter records which show 20k visitors total annually on Mondays (towards a total annual target of 200k visitors).  

Opportunities:

This proposal to close the Dowse Art Museum on Mondays reflected some consideration of savings, but also the potential to increase our capacity to have more public education programmes and a greater focus on revenue generation activities.

Our engagement team can see potential for more school and community group visits as many people, due to COVID-19, are more reluctant to visit spaces where there will be increased risk of interacting with visitors from other places. Education in particular believes this will increase interest in longer more in-depth group programmes.  

Revenue generation could also be a significant focus of this Monday close particularly around venue hire and paid/ticketed programmes. It is important however to bear in mind that venue hire does include some casual staff requirements, but these are often on-charged. Although our core outcome for our engagement programmes is for these to be accessible across all demographics we have identified some opportunities to offer pay as you go workshops and ticketed special events.

There is also the added outcome of building and exhibition maintenance being carried out on Monday’s to ensure an undisrupted visitor experience on other days. Currently some works have to take place either side of opening hours (The Dowse is open 10am-5pm) sometimes resulting in after-hours contractor rates or working during open hours resulting in a poor visitor experience.

5.

Strategic alignment and desired outcomes sought

Previous - Leisure and Wellbeing Strategy 2012-2032

Current – Our city and all its people thrive

·      Museums contribute to the development of social capital by encouraging greater social participation, stimulating curiosity about the social, built, cultural and natural environment; building self-esteem and civic pride, and improving the quality of life within their communities. They also contribute to the regeneration of communities by providing heritage records.

6.

Community engagement

Stakeholder groups (Friends and Dowse Foundation) consulted, no sector consultation required, rate payer consultation may be required as part of LTP process.

7.

Overview of project savings and potential revenue

Current estimated savings of a weekly closure on Monday is based only on Front of House staffing and is approx. $22,932 per annum (estimated at 3x front of house staff members each working 7 hour shifts and receiving a living wage of $21 per hour).

The closure will have no impact on back of house staffing.

We have also projected to get one new or returning school booking per week (approx. 30pax) and one new or returning community group booking per week across our Monday close days. 

It is difficult to estimate the increase in revenue but we have a projected target of a minimum of two new venue hires per week (based on Monday close) resulting in a weekly increase of approx. $525 which works out to approx. $27,000 per annum. However, given the uncertainty of this, we have worked on a conservative estimate of $10,000 pa.

 

8.

Risks and mitigation plans

The key risk in this proposal is related to rate payer cost benefit perception, meaning that rate payers feel they are not getting value for money if The Dowse is closed one day a week as opposed to open 7 days a week.

 

This can be mitigated by introducing the change from the beginning of the calendar year to ensure there is time to communicate the change to the public and having FAQs available particularly around what happens internationally.

9.

Annual Plan/LTP key assumptions

That key non-financial targets are not adversely affected by this proposal e.g. Dowse annual visitation target of 200k. Currently we have approx. 20k visitors annually on Mondays so this number would have to be increased across the rest of the week or made through venue hire and/or education programmes.  

 

That this proposal is a permanent arrangement that will have some savings and potential revenue impacts over the coming years.

 

 

 

Further budget information

Table 1: Revenue budget

$M

2020/21

2021/22

2022/23

2023/24

2024/25

2025-2031

Total

Annual Plan 2020/21

0.0

0.0

0.0

0.0

0.0

0.0

0.0

LTP 2021-2031 – Subtotal

0.005

0.010

0.010

0.010

0.010

0.050

0.095

Variance

0.005

0.010

0.010

0.010

0.010

0.050

0.095

 

Table 1: Operational budgets

$M

2020/21

2021/22

2022/23

2023/24

2024/25

2025-2031

Total

Annual Plan 2020/21

0.011

0.022

0.022

0.022

0.022

0.110

0.209

LTP 2021-2031

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Variance

0.011

0.022

0.022

0.022

0.022

0.110

0.209

*these savings relate to employee costs


 

Attachment B: Dowse Art Museum – Collection Store Upgrade

1.

Project/ initiative

Dowse Collection Storage Upgrade

2.

LTP Activity

Social and Cultural  Wellbeing

Connectivity, creativity, learning and recreation

Art and Museums

3.

Business lead

Andrea Blackshaw, Karl Chitham

4.

Brief project description

(problem/opportunity statement)

This proposal is to shift the current LTP funding allocation of $1m CAPEX for the Dowse Collection Storage Upgrade into two financial years. Keeping $200k in 2021/22 financial year to allow for the initial packing of the collection to begin and in the following 2022/23 financial year to have the remaining funding for the build components. This would also allow us an opportunity to secure additional funding towards the project as funding commitment would have already been confirmed and work would be underway.

Rationale:

Over the past 49 years the Dowse collection has grown from a small collection of paintings to thousands of items some of which are of significant value. The collection storage capacity in the building was increased in 1982 with the opening of the Dowse extension, but with the exception of minor non-structural additions the space has not had any significant investment for decades. This has resulted in some inadequate and inefficient storage solutions for our collection assets, some health and safety issues for the collections and staff and limited capacity for collection growth. The current collection storage only allows for very limited access by the public under very strict parameters, which could be increased significantly through this project. 

Background:

The Dowse currently has a collection of 3,316 artworks worth approx. $19.5m combined insurance value. We exhibit between 150 and 300 of these works each year in up to 10 exhibitions in the Dowse programme and in other galleries around the country.

We acquire (donation, bequest or purchase) around 50 works for the collection per annum.

The collection is made up predominantly of fine arts and craft with a focus on contemporary practice and is of national significance. The Dowse has the largest collection of contemporary New Zealand studio jewellery and has the third largest New Zealand studio craft collection in the country after Te Papa and Auckland Museum.

·      1988 - A timber mezzanine was built along the north wall to increase storage capacity and includes second hand painting racks all of which are still in place.

·      1999/2000 - Temporary mezzanine was added along the west wall with storage units below all of which are still in place. Project cost was approx. $43,000

·      2006/2007 – collection storage upgrade was removed from the project plan for the Dowse building redevelopment due to funding restrictions

·      2011/12 – Second-hand Dexion shelving purchased to increase capacity. Cost of $17,000

·      2014 - Fire rating increased to minimum safety standards, fire insulation between collection store and galleries installed and HVAC dampers added. Unknown project cost

·      2015 – more Dexion shelving purchased to increase capacity and wooden slotted storage added. Cost of $7,700

·      2018 - Jewellery collection rehoused. Funded through crowd funding and The Dowse Foundation as a special project.

Opportunities:

More adequate and efficient use of space and storage solutions allowing for us to continue to grow the collection in the future, as well as making the collection more accessible by staff.

An opportunity to increase the fire rating in this area of the building, have safer storage solutions meeting seismic risk and museum standards guidelines, and safer accessibility to items at height.

Making the collection more accessible to the public through regular collection store tours, research visits and stakeholder viewings.  

5.

Strategic alignment and desired outcomes sought

Previous - Leisure and Wellbeing Strategy 2012-2032

Current – Our city and all its people thrive

Museums contribute to the development of social capital by encouraging greater social participation, stimulating curiosity about the social, built, cultural and natural environment; building self-esteem and civic pride, and improving the quality of life within their communities. They also contribute to the regeneration of communities by providing heritage records.

6.

Community engagement

Stakeholder groups (Friends, Dowse Foundation, Blumhardt Foundation and long-term loan lenders) consulted, sector consultation for best practice knowledge only, rate payer consultation may be required as part of LTP process.

7.

Overview of project costs and funding source (refer tables below)

Stage 1 (2021/22 financial year) $200k:

·      Approx. 80-100k towards staffing to inventory and pack 4000+ collection items (including long-term loans) for moving to temporary storage. This is for one additional lead collection technician and two assistant technicians on 6 month contracts.

·      Approx. 100k for crating and specialist materials (Tyvek, ether foam, acid free cardboard, acid free tissue) for the packing of the collection. Moving the collection to temporary storage. Temporary storage rental.

Stage 2 (2022/23 financial year) $800+k:

·      Approx. $20-40k for demolition of existing temporary structures and removal of all temporary shelving and other storage.

·      Approx. $187K for shelving (quotes from Hydestor and Dexion have already been secured based on initial layout designs)

·      Approx. $40-60k for facility works to improve safety and flexibility of some internal spaces, reconfigured and replaced lighting and to move staff workstations

·      Approx. $400-600k for new fire suppressant system

·      Approx. $20k for upgraded security camera system  

8.

Risks and mitigation plans

The risks in this proposal are if this project did not proceed.

 

The collection storage has had very little investment over the past 40 years resulting in an ad hoc approach to storage solutions and increasing health and safety issues.

 

These challenges will increase over coming years with outcomes such as damage to assets, danger to staff, and poor sector and stakeholder reputation leading to no donations, lenders removing works and galleries refusing to loan for exhibitions. 

9.

Annual Plan/LTP key assumptions

That this proposal is based on funding that already appears in the LTP.

 

Due to the financial impact of COVID-19 on Hutt City Council the proposal is that this funding could sit across multiple financial years, therefore spreading the financial risk for council and allowing for more

 

Table 1: Capital budgets

$M

2020/21

2021/22

2022/23

2023/24

2024/25

2025-2031

Total

Annual Plan 2020/21

0.00

1.0

0.0

0.0

0.0

0.0

1.0

LTP 2021-2031

0.0

0.2

0.8

0.0

0.0

0.0

1.0

Variance

0.0

0.0

0.0

0.0

0.0

0.0

0.0

 

 


 

Attachment C: Library collections budget

 

1.

Project/

initiative

Library Collections Budget (CAPEX)

2.

LTP Activity

Connectivity, creativity, learning and recreation

Social and Cultural  Wellbeing

 

3.

Business lead

Andrea Blackshaw, Kat Cuttriss

 

4.

Brief project description

(problem/opportunity statement)

Hutt City Libraries develop and provide access to library collections across a range of formats (electronic and print), subject areas and genres, to inform and inspire all residents of all ages and stages. 

 

Our collection size (c260, 000 items) is comprised of 253,000 physical items, and 7,000 eBooks that we own outright on ePukapuka.  These are owned assets which depreciate and which are CAPEX coded. We have access to an additional 26,000 eBooks in a shared ownership model with the ePukapuka consortia (OPEX subscription costs).

 

The vast majority of our community prefer print items. eBook issues only accounted for 8% of our total lending in 2019/20, when we had 841,270 issues of print materials, and 69,070 issues of eBooks.

 

We are member of the SMART library collaboration, with Masterton, Porirua and Kāpiti Coast Libraries and WelTec/Whitireia.  This provides all Hutt City residents with free access to the lending collections of these partner libraries (over 500,000 items in total).

 

Purchasing of Hutt City Libraries collections was outsourced in 2011. As part of this process $350K in OPEX savings were achieved through redundancies.

 

Benchmarking statistics from PLNZ (Public Libraries of NZ) show that:

 

·      Our collection size per capita is slightly lower than the national average.

·      The size of our library collection is much smaller than libraries serving similarly sized populations.

·      Our average issues per capita are high, and our stock turnover (number of times on average each item is issued) is consistently well above the national average. We can deduce that our collection is well tailored to community need and works hard to meet demand.

·      Our collection spend per capita is higher than average.  This is because processing (shelf-ready) costs are incorporated into our CAPEX spend, as part of what is required to make the asset usable. Most other libraries in New Zealand currently report on these costs as part of OPEX budgets. Our CAPEX costs are inflated by these ‘shelf-ready’ costs. If we remove them from the CAPEX collections budget ($140K in 2018/19), our spend per capita comes down to $6.89 in the benchmarking table below.

 

 

 

 

 

 

 

 

 

 

 

From 2018/19 financial year:

 

Population

Number of libraries

Collection size

Collection size per capita

Library visits per capita

Library stock turnover

Issues per capita

 Capex  spend per capita  

Hamilton

169,500

6

369,017

2.18

4.66

3.35

7.28

   $5.08       

Tauranga

134,000

5

291,300

2.17

5.55

5.27

11.46

$6.86

Dunedin

130,700

8

602,549

4.61

8.79

1.94

8.92

$6.86

Lower Hutt

103,000

8

258,450

2.51

13.15

4.40

9.96

$8.25

Palmerston North

88,700

8

185,054

2.09

10.2

4.89

10.2

$8.16

Whangarei

86,000

4

167,169

1.94

5.77

4.50

8.75

$7.55

National average*

n/a

n/a

n/a

2.71

6.74

3.13

7.88

$6.21

*NB re National average – size of collections range from 50,000 items to several millions items

 

 

5.

Strategic alignment and desired outcomes sought

 

Library collections are our core service, and the quality and relevance of our collections underscore all other library services, programmes and experiences.  Library collections are the key way we help residents build literacy skills by reading what they find informative, interesting and/or entertaining.  Increased literacy rates lead to improved educational outcomes, which in turn lead to improved employment and economic prospects, and a thriving, resilient city.

 

6.

Community engagement

 

Equity and accessibility underscore our entire activity. We therefore develop and deliver our library collections for all people in our communities – “something for everyone.” 

 

We are members of the following library collaborations and consortia, providing cost-effective collection services and better return on investment for every collection dollar spent, as well as increasing options and choices for Lower Hutt residents:

·      SMART Libraries (as above)

·      EPIC (Electronic Purchasing in Collaboration), a whole-of-New-Zealand cross-sector library consortium for procuring e-databases and e-serials collections

·      ePukaPuka, which many public libraries in New Zealand belong to, for procuring e-book collections

 

7.

Overview of project costs and funding source (refer tables below)

 

In the 2020/21 Annual Plan, a 20% reduction of CAPEX collection budget ($850k reduced to $680k) was implemented in our collection acquisitions work programme.

 

We propose a 10% reduction for LTP 2021 ongoing ($850k reduced to $765k in year one) with modest (1-2%) annual increases to keep pace with population growth.

 

8.

Risks and mitigation plans

 

The current 20% budget reduction has resulted in:

·      Putting on hold some purchases of new collection formats (as requested by residents) e.g. junior dyslexic readers for children, more foreign language eBooks for migrant communities

·      Cessation of all purchasing of CD and DVD formats

·      Customers waiting longer for some high-demand titles as we have not been able to purchase the same number of copies of popular titles as we would have formerly

·      Hutt City Libraries leaning heavily on the SMART collaboration as a net borrower. This carries longer-term risks as lending/borrowing ratios across the collaboration need to balance over time, otherwise some member libraries may decide it is in the best interests of their local communities to leave the collaboration.  Kāpiti Libraries had a 50% CAPEX collections budget cut in FY19/20, and leaned heavily on the collaboration as a net borrower for that year to meet their local community demand.  Their collection budget has now been reinstated to 100% for FY20/21.  We are twice the size of Kāpiti, meaning the negative effect on the collaboration of us being a net borrower will be much more pronounced.  This is an effect that member libraries may not be able to sustain, with the result that they leave the collaboration and it therefore ceases to exist.  This would be counter to SMART’s strategic goal, which is to move into a growth phase and bring any one of the three other public libraries in our region (Wellington, Upper Hutt, South Wairarapa) into the collaboration.  This would increase collection breadth and choice for Lower Hutt residents and would enable greater economies of scale in collection acquisitions across the collaboration.  We need to stay in the collaboration as an actively-contributing member, to be able to realise these future potential gains.

·      Increased turnover rates. Turnover rates are informed by number of issues and the number of items in the collection. An increase in issues makes the turnover rate go up. A decrease in the number of items owned (or purchased each year) also makes the turnover rate go up.  If we are buying insufficient number of items each year to replace worn out items, existing items in the collection get issued more often and wear out faster, needing replacement more quickly.  Current (reduced) funding levels allow for each collection item to be replaced once every 9 years.  Different collections need to be replaced at different rates.  Collections such as children’s picture books, high demand adult fiction, computing, health and travel books need to be replaced (because of wear or obsoleteness of the information contained in them) about once every 5 years.  The replacement rate for non-fiction, large print, general and classic fiction etc., is once every 12-15 years under current (reduced) budget funding levels. This will make the content of some collections significantly out of date over time.

·      A collection $ spend per capita of $5.44, compared to the national average of $6.21 (when removing shelf-ready costs of $120k = $560k for collection items). Community may consider this a notable under-investment in a key community asset.

 

A 10% budget reduction, as proposed, will mitigate the above in part, and will result in:

·      A collection $ spend per capita of $6.16, compared to the national average of $6.21 (when removing shelf-ready costs of $130k = $635k for collection items).

 

9.

Annual Plan/LTP key assumptions

 

A library collection needs to increase in breadth and size over time, to keep pace with the needs of a growing population (1-2% increase projected year on year). 

 



 

Further budget information

Table 1: Capital budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

$0.85

$0.85

$0.85

$0.85

$0.55

$5.325

$9.28

LTP 2021-2031

$0.765

$0.775

$0.785

$0.8

$0.82

$4.92

$8.865

Variance

($0.085)

($0.075)

($0.065)

($0.05)

$0.027

($0.405)

($0.415)

 

 


 

Attachment D: Roof replacement Stokes valley and old Huia Pool and Fitness

 

1.

Project/

initiative

Roof Replacement Project – Stokes Valley and old Huia Pool + Fitness – increase in budget

2.

LTP Activity

Swimming Pools

3.

Business lead

Andrea Blackshaw, Stephen Keatley & Marcus Sherwood

 

4.

Brief project description

(problem/opportunity statement)

This project is for the complete replacement of iron and butanol roofing including guttering and down pipes for Stokes Valley Pool and the old part of Huia Pool.

 

Huia Pool roof is currently 39yrs old and was due for replacement in 2015.

Stoke Valley Roof is currently 35yrs old and was due for replacement in 2020.

 

These projects were first included in the LTP in 2012 for replacement with Huia Pool budgeted $408k in 2015/16 and Stokes Valley Pool $514k in 2022/23. The budget was set at the time based on independent Asset Management Plan estimates.

 

Due to Council budget priorities Huia Pool roof replacement has been pushed back for a number of years without the budget being revised or inflated. There is currently $930k budgeted for both projects this financial year.

 

A detailed scoping and cost report was completed this year by Duncan Commercial Construction (attached) highlighting insufficient budget to complete the required works. Estimates for completing both projects range from $1.34M - $1.73M.

 

We are now seeking Council approval to reallocate the current budget for both pools to the Huia Pool roof replacement project (work to be commenced this financial year) and are further seeking additional funding of $645k be included in the draft LTP to complete Stokes Valley Roof next financial year. 

 

This essential building work has already been delayed 6 years. If the work is not completed in a reasonable timeframe then serious damage to the structure of the building is likely to occur with the potential for increased expense and disruption to service.

 

5.

Strategic alignment and desired outcomes sought

Aquatic Asset Management Plan

Long Term Plan 2018-2028

 

Huia Pool roof is 39 years old and Stokes Valley Pool roof is 35 years old.  They have reached the end of their economic life and require replacement.  To enable the building to meet the minimum 50 year plus life expectancy these key elements need to be replaced.

 

We are seeking Council approval to reallocate the current budget for both pools to the Huia Pool roof replacement project (work to be commenced this financial year) and are further seeking additional funding of $645k be included in the draft LTP to complete Stokes Valley Roof next financial year. 

 

6.

Community engagement

Long Term Plan 2018-2028

 

 

 

 

 

7.

Overview of project costs and funding source (refer tables below)

There is currently the following budgets allocated:

·      Huia - $0.53m

·      Stokes Valley:$0.4m

 

Current shortfall based on mid-range estimate from consultant report is $0.645m

 

 

8.

Risks and mitigation plans

If the work is not completed then serious damage to the structure of the building will start occurring and will likely increase building damage, maintenance costs and potential Health and Safety issues.

 

Regular inspections and essential remedial works are undertaken as required.

 

 

9.

Annual Plan/LTP key assumptions

We currently have $0.930m budgeted but require a further $0.645m to complete the project for Stokes Valley Pool + Fitness which can occur in the 2021-22 year.  The current budgeted amount will be used to complete the Huia Pool + Fitness Roof project.

 

 

 

 

 

Further budget information

Table 1: Capital budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0.930

 

 

 

 

 

0.930

LTP 2021-2031

1.575

-

-

-

-

-

1.575

Variance

(0.645)

-

-

-

-

-

(0.645)

 


 

Attachment E: Huia Pool and Fitness Moveable floor replacement

 


1.

Project/

initiative

Huia Pool + Fitness Movable Floor Replacement – increase in budget

2.

LTP Activity

Swimming Pools

3.

Business lead

Andrea Blackshaw, Stephen Keatley and Marcus Sherwood

 

4.

Brief project description

(problem/opportunity statement)

Complete replacement of the main pool moveable floor at Huia Pool. This is an essential operational item allowing the pool to be used for multiple activities increasing the usage and revenue able to be generated from the site.

 

The floor mechanism is currently 39 years old and was due for replacement in 2017/18 at an estimated cost of $564k. The budget was set in 2012 and was based on independent Asset Management Plan estimates.

 

This project has been pushed back due to Council priorities and closure of Naenae Pool and is now scheduled to be completed in 2025/26. The original budget was revised in 2018 to $1M.

 

High level costings for this project were again reviewed this year as part of the update of the Aquatics Asset Management Plan and work on the Naenae Pool rebuild with a new estimated cost of $1.450M. We are currently waiting on a formal quote to verify this estimate.

 

Failure would result in a significant loss of service. We are experiencing increased issues with both the mechanical and electrical systems with 4 un-planned maintenance outages this year.

5.

Strategic alignment and desired outcomes sought

Leisure and Wellbeing Strategy

Aquatic Asset Management Plan

Long Term Plan 2018-2028

 

The replacement floor project was originally approved in the 2012 Long Term Plan and budget revised in 2018 Long Term Plan and moved out due to the closure of Naenae Pool.

 

We are seeking an increase in budget of $450k for this project in 2025/26.

 

6.

Community engagement

Through the 2019-20 Annual Plan process

 

7.

Overview of project costs and funding source (refer tables below)

Current Budget $1M

Requested Budget $1.450M

 

 

 

8.

Risks and mitigation plans

As the floor is sourced from overseas any changes in the exchange rate will have an impact on the final budget.

 

Regular maintenance checks and servicing is undertaken however this is expensive as the technology is obsolete.

 

 

 

 

Table 1: Capital budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

 

 

 

0.05

0.95

 

1.0

LTP 2021-2031

 

 

 

0.050

1.4

 

1.45

Variance

 

 

 

0

(0.45)

 

(0.45)

 

 


 

Attachment F: Activating Naenae’s town centre

 

1.

Project/

initiative

Activating Naenae’s town centre

2.

LTP Activity

Community partnering and support

·      Social and Cultural Wellbeing

Neighbourhoods and Communities

3.

Business lead

Mel Laban/Gary Craig

 

4.

Brief project description

(problem/opportunity statement)

The closure of Naenae Pool has had a significant negative impact on the Naenae community and local retailers in the town centre. The pool was a key meeting point and hosted many community events and birthdays. It also brought in many people from across the region in particular for aquatic sports. This made the town centre more vibrant and provided customers for local business.

Council has included a project to replace the pool in the 2021/31 LTP. However, it won’t be complete until mid-2024. In the interim, Council has allocated $300K in 2019/20 and 2020/21 for initiatives and activities to activate the town centre. So far this has funded a number of things including events and business development activities.

 

Officers propose extending this investment for a further two years while the pool is closed s enable this activity to continue.

5.

Strategic alignment and desired outcomes sought

Strategic Direction: (previous)

“A dynamic and resilient city with active citizens and vibrant connected neighbourhoods”

Leisure and Wellbeing Strategy

 

“Our city and all our people thrive; connected and resilient communities.’ (current)

 

Community Outcomes:

A safe community

Healthy People

Activity engaged in community activities

Strong and inclusive communities

A healthy and attractive built environment

6.

Community engagement

The Voice of the Community Report and other engagement undertaken in Naenae in recent years provides guidance of what sort of activities and initiatives the community value.

 

Overview of project costs and funding source (refer tables below)

2019/20 and 2020/21: $200k pa activation; $100k pa activities

 

Propose 2021/22 and 2022/23: $300k pa activation

 

This activity is fully funded from rates.

 

8.

Risks and mitigation plans

There is a risk that the closure of the pool will result in worsening wellbeing outcomes for the Naenae community and will see more retailers struggle to survive. On top of the pandemic, this risk is heightened.

To mitigate this, we propose continuing this investment to enable ongoing events and initiatives. We are also piloting a Community Co-ordinator in Naenae who is taking an Asset Based Development Approach to developing the community.

9.

Annual Plan/LTP key assumptions

$300k allocated in 2021/22 and 2022/23

 

Further budget information

Table 1: Operating budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0.3

0.3

 

 

 

 

0.6

LTP 2021-2031

0.3

0.3

 

 

 

 

0.6

Variance

-

-

 

 

 

 

-

 

 


 

Attachment G: Spatial Planning (includes City plan and town centres)

 

1.

Project/

initiative

Spatial Planning (includes City Plan and town centres)

2.

LTP Activity

City development

3.

Business lead

Kara Puketapu-Dentice

 

4.

Brief project description

(problem/opportunity statement)

The Economic Development Plan identifies four growth areas; one of these includes stimulating growth and development across Hutt City. The development of spatial planning documents better enables council to influence the types of development it wishes to see across the city and in a way that aligns with community aspirations and the District Plan (under review) and the integrated transport strategy (in the process of being developed).

 

5.

Strategic alignment and desired outcomes sought

·      Hutt City’s Economic Development Plan has been developed to align with the Urban Growth Strategy. The two key growth targets for the UGS to 2032 are: Population growth that would ensure a total of  at least 110,000 people living in the city

·      An increase of at least 6000 homes in the city

 

Spatial Planning will be a key enabler to achieving these targets and ensuring that development is done in a considered manner which takes into account the community voice, best urban design practice and aligns with other key planning documents (District Plan and the Integrated Transport Strategy).

6.

Community engagement

Key partners: Hutt Valley Chamber of Commerce, Jackson Street Programme, Seaview Business Association, Technology Valley, Love Wainuiomata, South End Business Group, Wellington NZ, Local Schools, Team Naenae Trust, mana whenua

The community at large will be required to be engaged with.

7.

Overview of project costs and funding source (refer tables below)

Please see below:

·      Internal employees

·      Funding partners for engagement

·      Consultant fees

 

This will be funded through rates.

8.

Risks and mitigation plans

National and regional objectives and direction overrides Hutt City initiatives

Each spatial plan will have terms of reference, work programme, communications and engagement plan and a dedicated internal resource responsible for its delivery and associated monitoring and reporting.

 

9.

Annual Plan/LTP key assumptions

That the existing suburban shopping centre capital budget is proposed to be replaced by a Spatial Planning operating budget, with an increased spend in 20/21 to fund the city spatial plan, Naenae spatial plan as well as the Wainuiomata spatial plan.

 

It is anticipated that the funding in proceeding years will be applied to further spatial planning activities in centres across Hutt City (beyond Wainuiomata, Naenae and the City Spatial Plan - which is focused on developing key spatial planning documents for the District Plan process)

 

The funding will also be used to implement activities agreed through the Spatial Planning process.

 

Benefits of Spatial Planning:

 

Once spatial plans are in place this will enable council to lead the market direction for intensification and redevelopment activities of our town centres.

 

The increased Spatial Planning funding will enable improved economic, social, environmental and housing performance of our town centres through better urban design which is supported and directed through co-design with the community.

Spatial planning will also enable council to leverage off the CCTP, integrated transport strategy and the District Plan to better direct development in an aligned way.

 

 

Further budget information

Table 1: Operating budgets

$M

2020/21

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

-

-

-

-

-

-

-

 

LTP 2021-2031

0.53

0.2

0.1

0.1

0.1

0.1

0.5

1.63

Variance

(0.53)

(0.2)

(0.1)

(0.1)

(0.1)

(0.1)

(0.5)

(1.63)

 

Table 2: Capital budgets

$M

2020/21

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0.34

 

0.3

 

0.2

-

0.6 ($0.2M every second year)

1.44

LTP 2021-2031

-

 

-

 

-

-

-

-

Variance

0.34

 

0.3

 

0.2

 

0.6

1.44

 

 

 


 

Attachment H: Love Wainuiomata

 

1.

Project/

Initiative

Love Wainuiomata

2.

LTP Activity

City Development

3.

Business lead

 

   Head of City Growth

4.

Brief project description

(problem/opportunity statement)

Love Wainuiomata Incorporated is a community owned and driven organisation.  Guiding its work is the Wainuiomata Development Plan.

 

The purpose of the Development plan is to:

·      Articulate the community vision and describe what this could mean for the future of Wainuiomata

·      Summarise the Community’s priorities aspirations for what Wainuiomata could be like in the next 20 years

·      Provide strategic direction to the ideas that have come from the community with actionable tasks and programmed implementation

 

Wainuiomata is undergoing transformational change with new housing developments and the redevelopment of the Mall site.

 

A town centre and surrounds spatial plan is being undertaken and this will lead to the implementation of more improvements in the area.

 

Love Wainuiomata is the voice of the community in this work, which is enabling the Wainuiomata Development Plan.  Its future involvement in the planning and delivering of the Development Plan initiatives is crucial to ensuring a thriving community.

 

5.

Strategic alignment and desired outcomes sought

This project is strongly aligned with the Council’s Urban Growth Strategy, the Wainuiomata Development Plan being a direct output of the Strategy initiatives.

 

Wainuiomata is recognised as an area of future housing growth both in the UGS and the Wellington Regional Growth Framework.

 

6.

Community engagement

Led by the Development Plan Group, public engagement included a campaign asking the community to tell the group what they love about Wainuiomata and what would they like to see more of. The ‘What’s Our Future Wainuiomata’  raised the profile  of the Development Plan project, gathered some initial ideas and aspirations from the community and also promoted a community workshop which was held in November 2014.  The November community workshop captured the basis for the Development Plan content and helped to inform a shared community vision statement. The workshop had nearly 100 people in attendance and was structured and facilitated in a way that the community could engage and discuss real issues, opportunities and solutions together. Outcomes from the workshop were then on display at a community Expo, held in March 2015. A second workshop, focussing on the town centre was held in August 2015, with around 60 people.

The top rated ideas from the community were:

• Improve the gateway into Wainuiomata

• Re-design public spaces of The Strand and the mall

• Provide better services and accommodation for youth and elderly

• Enhance the Homedale Village as the gateway to the wilderness

• Make a new children’s play park in the centre

• Strengthen relationship between town centre and Village

• Integrate cycleway along creek/stream/reserves

• Celebrate heritage, narrative and story-telling

7.

Overview of project costs and funding source (refer tables below)

 

The additional funding sought is for Love Wainuiomata to continue involvement in spatial planning for the town centre and surrounds and continue to implement the Wainuiomata Development Plan with the community.

 

8.

Risks and mitigation plans

 

A work plan is developed and agreed between Council and Love Wainuiomata and progress is monitored by Council.

 

9.

Annual Plan/LTP key assumptions

Council seeks to continue to work with Love Wainuiomata to deliver the community’s aspirations for Wainuiomata as articulated in the Wainuiomata Development Plan.

 

 

 

 

 

Further budget information

Table 1: Operating budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

$0K

$0K

$0K

$0K

$0K

$0K

$0K

LTP 2021-2031

$100K

$100K

$100K

$100K

$100K

$500K

$1000K

Variance

$100K

$100K

$100

$100

$100

$500

$1000K

 

 

 


 

Attachment I: Business incubator/Start Up Hub

 

1.

Project/

initiative

Business incubator/Start up Hub

2.

LTP Activity

City Development

3.

Business lead

 

   Head of City Growth

4.

Brief project description

(problem/opportunity statement)

 The Business incubator/start up hub provides a space and mentored training for scalable start-ups in the product, design, manufacturing or technology sector. This allows start-ups to be part of a great community alongside other start-ups and existing hub residents, with access to coaches, advisors and mentors, specialist workshops and inspirational speakers. Selected start-ups join a collective of like-minded entrepreneurs and experts collaborating on innovative and exciting projects, within a modern workspace that promotes contemporary ways of working.

Businesses receive:

A range of 1:1 support, peer learning, community and public events to support business growth and founder connection.

1-1 Advisory

• working with each business on a bi-weekly basis as an advisor.

• The role of the advisor is to provide accountability, guidance, connections.

Peer-to-peer Knowledge Sessions

• Every two weeks, businesses in the incubation programme will get together to share knowledge and give each other feedback. These sessions are structured and are facilitated by the hub managers.

Access to external mentors / experts

• In addition to internal coaches and advisors, member businesses can sign up for a 1-1 session with mentors that are a right fit.

The Speaker Series

• Regular workshops and talks delivered by a guest expert. Sessions run for 90 minutes. The general format of each session is a presentation by guest followed by discussion and Q&A.

Community

• Regular networking and community events with the hub space.

5.

Strategic alignment and desired outcomes sought

This project is strongly aligned with the Council’s Economic Development Plan in particular the focus of future STEM businesses.

 

It is also aligned with Council’s Covid-19 Recovery Plan supporting the start-up business community.

 

6.

Community engagement

This initiative has evolved from a series of Start-up initiatives beginning with Lightning Lab – Manufacturing a joint initiative between Callaghan Innovation, Council, Grow Wellington (the Regional EDA) and Creative HQ.  This short term pilot trialled the highly successful Lightning Lab acceleration model for the first time with physical product start-ups.  There was strong support for the programme amongst the manufacturing and business community.

 

The goal was to replicate the success of digital accelerators that take companies from concept to seed funding in 3 months.  The demands of producing a physical product require more time and access to workshop space and machinery.

 

Whilst successful in itself a Government review of future incubator funding did not extend the pool of funds available to manufacturing products so the programme was reframed and continued as 1st Assembly funded solely by Council but run by Creative HQ.

 

Funding constraints required further fine tuning of the programme and it is now run through The Settlement – a private co-working space with some mentorship from Creative HQ.

 

It is not ideal for manufacturing ventures and we are currently investigating options for the future of the programme.

 

The programmes have spawned or grown a number of exciting start-up businesses including UBCO – manufacturer of electric farm and defence bikes and Eight360 developing a virtual reality motion simulator 

 

 

7.

Overview of project costs and funding source (refer tables below)

 

The additional funding sought is to continue a business incubator/start up hub To encourage the start-up and development of future digital and physical product ventures.

 

8.

Risks and mitigation plans

 

A work plan is developed and agreed between Council and Start-up hub manager/operator and progress is monitored by Council. The hub is managed by a professional entity.

 

9.

Annual Plan/LTP key assumptions

Council seeks to continue to support start-up businesses through incubation and mentoring.

 

 

 

 

 

Further budget information

Table 1: Operating budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

$0K

$0K

$0K

$0K

$0K

$0K

$0K

LTP 2021-2031

$100K

$100K

$100K

$100K

$100K

$500K

$1000K

Variance

$100K

$100K

$100

$100

$100

$500

$1000K

 


 

Attachment J: Wellington Regional Growth Framework

 

1.

Project/

initiative

Urban Growth – Wellington Regional Growth Framework

2.

LTP Activity

City Development

3.

Business lead

 

   Head of City Growth

4.

Brief project description

(problem/opportunity statement)

The Wellington region is growing faster than it has done for many decades and is facing immediate and longer-term housing supply and affordability, urban development, and infrastructure challenges.

 

The Wellington Regional Growth Framework is a spatial plan that has been developed by local government, central government and iwi partners in the Wellington-Horowhenua region to deliver on the Urban Growth Agenda (UGA) objectives of the Government. The Framework also provides councils and iwi in the region an agreed regional direction for growth and investment. The Framework identifies how the Wellington-Horowhenua region1 could accommodate a future population of 760,000 people and an additional 100,000 jobs over the next 30 years. This would represent an additional 200,000 people in the region. The Wellington Regional Growth Framework is expected to be adopted by the Councils in the region prior to end of 2020 and signed off by Cabinet early 2021.

5.

Strategic alignment and desired outcomes sought

The diagram below shows the relationship between the Framework and other statutory and non-statutory documents. It demonstrates that we have taken current growth strategies and plans into account when developing the Framework and that the Framework will set direction for plans going forward.

 

Some of the benefits of the Framework include:

·      Better co-ordination between planning and funding agencies to identify and respond to the planning challenges impacting the Wellington-Horowhenua region.

·      Identifying the regional investment pipeline for infrastructure and services and providing increased certainty for all levels of government and the private sector.

·    Providing an easy to understand story to the outside world to optimise external investment and jobs.

·      Creating a long-term and agreed approach to growth to avoid changes to policy from one electoral cycle to another, which could otherwise deter private investment.

6.

Community engagement

Public consultation and finalisation of the Framework is currently estimated to occur March – May 2021, subject to Cabinet signoff.

 

7.

Overview of project costs and funding source (refer tables below)

The additional funding sought is for Council to participate in Master planning of the Lower Hutt triangle project with Iwi and multiple Government agencies.

 

It is anticipated that all agencies involved will share in the cost of the Master planning exercise – the basis of this is still to be determined.

 

8.

Risks and mitigation plans

The Wellington Regional Growth Framework projects will be managed through a project office to be established, with multi agency involvement. 

 

9.

Annual Plan/LTP key assumptions

That Council endorse the Wellington Regional Growth Framework and participate in the early stage project identified for Lower Hutt.

 

Table 1: Operating budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

$50K

$50K

$50K

$50K

$50K

$250K

$500K

LTP 2021-2031

$250K

$250K

$250K

$50K

$50K

$250K

$1,100K

Variance

$200K

$200K

$200k

$0

$0

$0

$600K

 

Attachment K: Extension of Wise Street

 

1.

Project/

initiative

Complete extension of Wise Street, Wainuiomata to end of current Residential Zoned land.  (Extension Section 2).

2.

LTP Activity

City Development

3.

Business lead

 

   Head of City Growth

4.

Brief project description

(problem/opportunity statement)

Council’s Urban Growth Strategy identified the Wise Street area of Wainuiomata for future residential growth.  The area in question is currently zoned for residential development. 

 

An earlier part extension of the road and trunk infrastructure has seen growth enabled in this area over the past 4 years.  The further extension of the road and trunk infrastructure to the boundary of the area currently zoned for residential development will enable another 180+ houses.

The extension is being considered in 2 stages of work over 2 summer periods to coincide with the house building on the remaining development sites.

Extension Section 1 – estimate $0.9M – currently budgeted

Extension Section 2 – estimate $1.2M (unbudgeted)

 

 

 

5.

Strategic alignment and desired outcomes sought

This project is strongly aligned with the Council’s Urban Growth Strategy an objective of which is to create 6,000 new dwellings by 2032.

 

6.

Community engagement

The Urban Growth Strategy 2012-2032 was developed in consultation with the Lower Hutt community and in regard to Wainuiomata there was support for residential development to occur in this part of Wise Street. 

7.

Overview of project costs and funding source (refer tables below)

 

The additional funding sought is to enable housing development to continue within the Residential zoned area of Wise Street, Wainuiomata to meet increasing housing demand.

 

The cost will be recovered through Development Contributions.

 

8.

Risks and mitigation plans

 

Our standard procurement and contract management processes as for all capital projects. 

 

9.

Annual Plan/LTP key assumptions

Council seeks to continue to support housing growth in the city.

 

 

 

 

 

Table 1: Capital budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

$0

 

 

 

 

 

$0

LTP 2021-2031

$1.2M

 

 

 

 

 

$1.2M

Variance

$1.2M

 

 

 

 

 

$1.2M

 


 

Attachment L: Road resurfacing

 

1.

Project/

initiative

Road Resurfacing

2.

LTP Activity

Transport

3.

Business lead

Kara Puketapu-Dentice, John Gloag

 

4.

Brief project description

(problem/opportunity statement)

Resurfacing and rehabilitation of the network’s roads to ensure the safety and travel comfort of road users, as well as providing waterproofing to the road pavements to provide for longer life.

 

 

 

5.

Strategic alignment and desired outcomes sought

To provide a safe, resilient and efficient transport system which supports the economic and social aspirations of the city. Seeking to optimise whole of life costs while providing the appropriate level of service.

 

The service level is measured by a number of KPIs including;

 

Road Condition Index

This is a measure of the road surface condition through visual inspection which produces an overall condition value based on an aggregation of a variety of surface defects.

 

Smooth Travel Exposure

This is a customer outcome measure indicating ‘ride quality’ measured by lasers as a vehicle travels around the network. It is an indication of the percentage of vehicle kilometres travelled on a road network with roughness below a defined upper threshold level. The threshold varies depending on the traffic volume band and urban/rural environment of the road.

 

Net Present Values (NPVs)

Required calculation to determine that the most appropriate treatment is being undertaken to optimise whole of life cost.

Resident Satisfaction

As measured by the annual Key Research customer satisfaction surveys.

 

Strategically aligned with national, regional and city objectives.

 

6.

Community engagement

Engagement via Annual Plan and LTP processes. Monitoring via Key Research annual surveys and direct community feedback.

7.

Overview of project costs and funding source (refer tables below)

Costs are increasing each year over the next 10 years, which reflects the number of pavements that are expected to require rehabilitation/reconstruction and roads due for resurfacing, each year.  This is based from predictive modelling that has been undertaken.

 

HCC receives 51% subsidy from NZTA for this work.

 

8.

Risks and mitigation plans

If timely resurfacing work is not undertaken then the road surface will deteriorate making unsafe driving conditions and traffic delays.  This will also compromise the road pavement through a lack of waterproofing seal, and will cause the road pavement to unnecessarily deteriorate and shorten its design life so that it requires extensive and expensive premature reconstruction work.

 

Undertaking timely resurfacing work to maintain the required level of service for road users and provide the necessary waterproofing seal to protect the road pavement. 

 

Choosing the most appropriate resurfacing/pavement treatment to ensure that the expected life is achieved.

 

9.

Annual Plan/LTP key assumptions

 

 

 

 

 

 

 

 

Further budget information

Table 1: Operating budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

3.188

3.341

3.392

3.443

3.545

15.122

32.031

LTP 2021-2031

3.392

3.443

3.468

4.102

4.157

21.777

40.339

Variance

0.204

0.102

0.076

0.659

0.612

6.655

8.308

 

Table 2: Capital budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

6.25

6.55

6.65

6.75

6.95

29.65

62.8

LTP 2021-2031

6.65

6.75

6.8

8.05

8.15

42.7

79.1

Variance

(0.4)

(0.2)

(0.15)

(1.3)

(1.2)

(13.05)

(16.3)

 

 

 

 

Attachment M: Roading network improvements

 

1.

Project/

initiative

Roading - Network Improvements

2.

LTP Activity

Transport

3.

Business lead

Kara Puketapu-Dentice

 

4.

Brief project description

(problem/opportunity statement)

Addressing the known upcoming increased programme of work required for the cyclic resurfacing of roads, to ensure the safety and travel comfort of road users, as well as providing waterproofing to the road pavements to provide for longer life. The programme of work requires current budget to be brought forward to align with the physical works timing. There is no increase to budget requirement.

 

 

5.

Strategic alignment and desired outcomes sought

To provide a safe, resilient and efficient transport system which supports the economic and social aspirations of the city. Seeking to optimise whole of life costs while providing the appropriate level of service.

 

Strategically aligned with national, regional and city objectives.

 

 

6.

Community engagement

Engagement via Annual Plan and LTP processes. Monitoring via Key Research annual surveys and direct community feedback.

 

 

 

7.

Overview of project costs and funding source (refer tables below)

The known upcoming increased programme of work for cyclic resurfacing has been budgeted over the 2029/30 to 2033/34 period.

 

More recent modelling anticipates this peak to happen sooner, starting in 2024/25.

 

There is no increased budget requirement, rather a re-phasing of the existing budgets, to now be $1M across each year between 2024/25 to 2032/33

 

HCC receives 51% subsidy from NZTA for this work.

 

8.

Risks and mitigation plans

If timely resurfacing work is not undertaken then the road surface will deteriorate making unsafe driving conditions and traffic delays.  This will also compromise the road pavement through a lack of waterproofing seal, and will cause the road pavement to unnecessarily deteriorate and shorten its design life, so that it requires extensive and expensive premature reconstruction work.

 

Undertaking timely resurfacing work to maintain the required level of service for road users and provide the necessary waterproofing seal to protect the road pavement. 

 

Choosing the most appropriate resurfacing/pavement treatment to ensure that the expected life is achieved.

 

9.

Annual Plan/LTP key assumptions

 

 

 

 

 

 

Further budget information

Table 1: Operating budgets – NZTA revenue

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

-

-

-

-

-

(2.244)

(2.244)

LTP 2021-2031

-

-

-

(0.51)

(0.51)

(2.55)

(3.570)

Variance

-

-

-

(0.51)

(0.51

(0.306)

(1.326)

 

Table 2: Capital budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

-

-

-

-

-

4.4

4.4

LTP 2021-2031

-

-

-

1.0

1.0

5.0

7.0

Variance

-

-

-

1.0

1.0

0.6

2.6

 

 


 

Attachment N: Bridge Maintenance

 

1.

Project/

initiative

Bridge Maintenance

2.

LTP Activity

Transport

3.

Business lead

Kara Puketapu-Dentice

 

4.

Brief project description

(problem/opportunity statement)

Undertaken annual condition inspections of the bridges, retaining walls and seawalls.

 

Undertake the physical works of structural maintenance/renewal as identified in the inspections.

 

5.

Strategic alignment and desired outcomes sought

To provide a safe, resilient and efficient transport system which supports the economic and social aspirations of the city. Seeking to optimise whole of life costs while providing the appropriate level of service.

 

The appropriate level of service for these assets is primarily focussed on safety with the obvious consideration of optimising whole of life cost

 

Strategically aligned with national, regional and city objectives.

 

6.

Community engagement

Engagement via Annual Plan and LTP processes. Monitoring via Key Research annual surveys and direct community feedback.

 

 

7.

Overview of project costs and funding source (refer tables below)

An increase of cost each year for the next 10 years to reflect anticipated bridge maintenance work that is required.  This has been based on identified maintenance that is required over the next 3 years, and extrapolated out over the following 7 years as an indication of anticipated level of work required.

 

HCC receives 51% subsidy from NZTA for this work.

 

8.

Risks and mitigation plans

Without regular inspections the condition of the bridges, retaining walls and seawalls are unknown.  Any deterioration in the structure will not be identified and addressed, putting public safety at risk and having the condition deteriorate further resulting in more extensive and expensive work being require, and potentially risking the design life being shortened.

 

Regular inspections of each structure to identify any deterioration and ensuring that necessary repairs are undertaken in an appropriate timeframe, as well as identifying preventative maintenance that is required.

 

 


 

 

Further budget information

Table 1: Operating budgets – NZTA revenue

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0.193

0.193

0.193

0.193

0.193

0.964

1.929

LTP 2021-2031

0.309

0.303

0.303

0.303

0.303

1.513

3.088

Variance

0.116

0.116

0.116

0.116

0.116

0.579

1.159

 

Table 2: Operating budgets – operational costs

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0.378

0.378

0.378

0.378

0.378

1.890

3.780

LTP 2021-2031

0.605

0.605

0.605

0.605

0.605

3.025

6.050

Variance

(0.227)

(0.227)

(0.227)

(0.227)

(0.227)

(1.135)

(2.270)

 


 

Attachment O: Traffic safety

1.

Project/

initiative

Traffic Safety Improvements

2.

LTP Activity

Transport

3.

Business lead

Kara Puketapu-Dentice, John Gloag

4.

Brief project description

(problem/opportunity statement)

Primarily involves making safety driven improvements to intersections and routes. Includes measures such as:

·      Kerb extensions and refuge islands to improve pedestrian safety;

·      Raised platforms for pedestrian crossings and to slow traffic;

·      Median barriers;

·      Intersection geometry improvements;

·      Signalising priority controlled intersections;

·      Installation of roundabouts etc.

·      Professional services associated with these activities.

 

The recent growth in Lower Hutt has resulted in more traffic congestion and reduced safety outcomes. This will require additional future funding to manage these effects as the city continues to grow.

The annual budget for this activity has remained static at $400,000 per annum for many years. We have recently worked through a comprehensive prioritisation exercise with our funding partner (NZTA) which has identified a safety programme of around $1.9M to $2.5M per year over the next 10 years which has a positive return on investment and effective reduction in the death and serious injury rate. We are looking to increase our annual funding to around ½ this amount ($1,000,000) per annum from 2022/ 23.

5.

Strategic alignment and desired outcomes sought

Aligned with the MOT Transport Outcomes Framework:

Inclusive access: Enabling all people to participate in society through access to social and economic opportunities, such as work, education and healthcare.

Healthy and safe people: Protecting people from transport-related injuries and harmful pollution, and making active travel and attractive option.

 

Aligned with Government Policy Statement 

Safety: Developing a transport system where no-one is killed or seriously injured.

Better Travel Options: Providing people with better transport options to access social and economic opportunities.

Improving Freight Connections: Improving freight connections for economic development.

Climate Change: Developing a low carbon transport system that supports emissions reductions, while improving safety and inclusive access.

6.

Community engagement

There has been no specific engagement on this particular activity; however there has been extensive community engagement on the GPS.

7.

Overview of project costs and funding source (refer tables below)

Existing funding is $400,000 per annum. This is 51% funded by NZTA and 49% funded by HCC.

We are proposing increasing the total budget to $1,000,000 per annum from 2022/ 23 going forward. We have assumed that budgets are under too much pressure to make the increase in 2021/ 22.

This additional budget would be 51% subsidised by NZTA.

8.

Risks and mitigation plans

We have applied to NZTA for additional subsidy in line with the proposed budget increase. In the event they do not approve the additional funding we would likely retain the forward budget at the current level.

An on-going risk is the resource we have to procure and deliver physical works. We would need to supplement our in house team with external consultants for design, procurement and delivery.

9.

Annual Plan/LTP key assumptions

Assumed subsidy funding is approved by NZTA.

 

Further budget information

Table 1: Revenue budgets  - NZTA subsidy

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0.204

0.204

0.204

0.204

0.204

1.020

2.040

LTP 2021-2031

0.204

0.510

0.510

0.510

0.510

2.550

4.794

Variance

-

0.306

0.306

0.306

0.306

1.530

2.754

 

Table 2: Capital budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0.4

0.4

0.4

0.4

0.4

2.0

4.0

LTP 2021-2031

0.4

1.0

1.0

1.0

1.0

5.0

9.4

Variance

-

(0.6)

(0.6)

(0.6)

(0.6)

(3.0)

(5.4)

 

Attachment P: Major event fund

1.

Project/

initiative

Demonstrating a vibrant city by hosting a major event

Our goal is to attract people to Lower Hutt by bringing to life the tourism action plan and empowering our events community by helping deliver vibrant events and instilling community whakahī (pride).

 

2.

LTP Activity

Connectivity, creativity, learning and recreation

3.

Business lead

Matt Boggs; Lizzie Edwards, Head of Promotions and Events - Acting

 

4.

Brief project description

(problem/opportunity statement)

We have an opportunity to celebrate the wellbeing and diversity of our city via a major event.  A wide and varied cross section of society call Lower Hutt home and it is important that this is celebrated via a major event and that our city make-up is celebrated.   One way of doing this is by assisting to deliver a major event to city where people come together as one.  This event must resonate with the wider community as a whole and act as a way to break down barriers within the community. 

This might require the creation of an event just for Lower Hutt, or a series of smaller events that are ‘bought in’ to the city that resonate with our community.

While we do have Te Raukura which meets the needs of Maori and Pasifika community, it does not truly celebrate the cultural diversity of Lower Hutt as a whole. 

Other smaller events celebrate culture but there is not one overarching event that brings the community together to celebrate what it means to live in Lower Hutt.

For example an event that celebrates matariki in a way that is inclusive and restful might meet the need the community.

LTP 2018 - 2028: Events Strategy – Council-run events are a great way to get involved in the community. Our Events Strategy explains the selection process for events based on a set of priorities and outcomes expected.

Events were referred to in the LTP plan a number of times in regard to the importance of them to our community relating to urban growth, leisure and wellbeing, as well as environmental sustainability.

5.

Strategic alignment and desired outcomes sought

 

The work of this team straddles outcomes that relate to both social and cultural wellbeing, and economic wellbeing.

 

We take a lead role in promoting Hutt City to develop and grow by:

·      increasing tourism and events in Hutt City

·      managing an integrated year-round events calendar

·      creating a business-friendly environment

·      facilitating the expansion and creation of local businesses and employment

·      contributing to regional growth through regional economic development providing quality online and digital experiences to our customers

 

In April 2020 a new team direction was presented to and approved by CLT to get us through the 12 month emergency budget.  It is anticipated that the long term plan reset will determine the long term direction of the team. 

6.

Community engagement

We’ll conduct research, looking at what other councils around New Zealand are doing in this space and draw on industry knowledge and experience.  We’ll also look to future event trends in New Zealand and internationally.

 

We’d use this to come up with options that we can then discuss with the community before coming up with a final event concept.  We’d do this by way of online engagement and engagement stations at already established events.

 

We’ll talk to local businesses about what they’d like to see and discuss how we might see mutual benefits.

 

7.

Overview of project costs and funding source (refer tables below)

 

We have asked for additional budget of $150k per year for a major event that will celebrate the diversity of Lower Hutt.

 

Depending on whether we create something that is bespoke to our community, or buy in a pre-packaged event this can be scaled accordingly.  There is the potential to offset costs through sponsorship and grant applications.

 

8.

Risks and mitigation plans

 

There is a reputational risk of the community finding out that HighLight is no longer being delivered by Hutt City Council.  A good way of mitigating this risk is by asking the community what they would like to see delivered and really understanding what it is that will help us feel like we are one.

 

We can work to deliver something within the parameters of the budget allocated.  This is scalable dependant on the event that is agreed upon, the budget and the desire to obtain sponsorship income to offset costs.

 

Further budget information

Table 1: Operating budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0

0

0

0

0

0

0

LTP 2021-2031

0

0.15

0.15

0.15

0.15

0.75

1.5

Variance

-

0.15

0.15

0.15

0.15

0.75

1.5

 


 

Attachment Q: Upgrading flag infrastructure across the city

 

1.

Project/

initiative

Upgrading the Flag Infrastructure across the city to a fit-for-purpose Flag Tracks system (CAPEX)

We have an outdated flag system across the city.  Flying flags is a wonderful way to add vibrancy and celebrate the culture of a city.  It is expensive to use the current flag system as we must engage a professional business to put up and remove flags at a significant cost.

This project includes purchasing decorative flags that tell the story of our city and celebrate who we are.

2.

LTP Activity

Connectivity, creativity, learning and recreation

3.

Business lead

Lizzie Edwards, Head of Promotions and Events - Acting

 

4.

Brief project description

(problem/opportunity statement)

We have an outdated flag system across the city that makes it cost prohibitive to erect and remove flags on a regular basis.  Having a decorated city is a high impact way to add vibrancy and life and demonstrate a thriving economy.  It is also a high impact way to promote events and activities to the city.  It is expensive to use the current flag system as we currently engage a professional business to put up and remove any flags.

Rather than replacing like for like this additional budget would allow us to start a project to identify the best places for new flags to be erected and calculate the cots on that basis.  Overall if we erected 200 flags across the city and ran four campaigns throughout the year then this could be achieved within the Capex and Opex budget requested as part of this LTP process.

Changes proposed include:

·      Only one flag per pole (rather than two) to make the budget stretch further and to mitigate the issue of flags being backwards (and hard to read)

·      A reduced number of flag tracks across the city but a higher rotation of flags

·      HCC own and run the asset programme so that we do not look at hiring flag space to externals (policy will control this)

·      We manage a project to remove the branded McDonalds and Mitre 10 MEGA flags in Petone

·      Wainuiomata and Naenae will need to be brought into the fold as they are currently managing their own flag programmes

·      A flag design that represents Lower Hutt City would be created that is able to be read from both sides

Some retailers in Petone (Mitre 10 MEGA and McDonalds) have paid for infrastructure and erected their own flags on poles to advertise their businesses.  These are historical agreements based on a handshake that we cannot track to origin of.

5.

Strategic alignment and desired outcomes sought

 

This project aligns with a desire to have Lower Hutt reflected as a vibrant and thriving community where there is local pride as indicated by the Events Strategy 2013 – 2023.

 

Street flags can be used as a means of adding colour, building city pride or for the promotion of events which are of regional or national importance.

 

They can also help create awareness of events, build a sense of excitement and help create vitality.  Used to create attractive and lively streetscapes and manage unauthorised sign proliferation.

 

6.

Community engagement

 

We’ll engage with the community via social media to involve them in the change.  This will include businesses and community groups such as Love Wainuiomata, South End business group, Eastbourne business collective, Naenae Proud, McDonalds, Flagmakers and Mitre 10 MEGA

 

There is the potential to use local artists to design the flag that represents Lower Hutt which would form a community engagement programme.

 

7.

Overview of project costs and funding source (refer tables below)

We currently have $18k of Opex allocated to flags per year which allows us to put up and remove two campaigns of 168 Flags.  Usual stock levels for a well decorated city are four campaigns per year of 200 flags per campaign. 

If this project goes ahead we’ll combine existing budget with the new Capex budget to have a new flag system installed as well as enough flags for four campaigns that we can fly all year round.

Key assumptions of our calculations include

·      General life of the flag and replacement terms won’t be known until flags are flown consistently for a period of time.  Flags will degrade at different rates around the city.

·      Key businesses in Petone (McDonalds and Mitre 10) can be managed to have their flags removed

·      The Naenae and Wainuiomata groups can be managed to have their flags upgraded to the new system/or we take the management of this over

·      We can agree on a city wide flag policy (there is a policy in draft format now)

·      Design of a new flag would need to be factored in to the costs

 

8.

Risks and mitigation plans

 

The combination of Capex and Opex over 10 years means that the project can be scaled so that it is fit for purpose and have broad appeal.

 

We’d find a supplier fit for purpose with the best pricing and product to meet the needs of the project.

 

A HCC Flag policy will be created and implemented so that external requests for flag use can be fairly managed.

 

In the proposed budget increase we will make allowances for any replacements caused by damage to poles through traffic accidents and the like.

 

Liaison with McDonalds and Mitre 10 MEGA may lead to dissatisfaction in them losing ownership of flags they perceive as theirs.  We’d consult with legal on this process.

 

9.

Annual Plan/LTP key assumptions

 

Additional $250k in 2021/22 to upgrade the infrastructure

Additional $30k per year to purchase flags

 

 

 

 

 

Further budget information

Table 1: Operating budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0.02

0.02

0.02

0.02

0.02

0.09

0.18

LTP 2021-2031

0.02

0.02

0.02

0.02

0.02

0.09

0.18

Variance

0

0

0

0

0

0

0

Table 2: Capital budgets

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0

0

0

0

0

0

0

LTP 2021-2031

0.28

0.03

0.03

0.03

0.03

0.03

0.30

Variance

(0.28)

(0.03)

(0.03)

(0.03)

(0.03)

(0.03)

(0.30)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment R: Petone Settlers Museum

1.

Project/ initiative

Close the Petone Settlers Museum on Mondays and Tuesdays

2.

LTP Activity

Social and Cultural  Wellbeing

Connectivity, creativity, learning and recreation

Art and Museums

3.

Business lead

Karl Chitham

4.

Brief project description

(problem/opportunity statement)

When asked to consider opportunities to not only make budgetary cuts, but also to think about new ways of doing things, the Museums leadership team considered a number of factors including how we could better serve both our local community and also our regional and broader arts and culture communities and how we might be more efficient as a team.

If approved this proposal would take effect from January 2021.

Rationale:

Petone Settlers Museum is already closed on Mondays and Tuesdays between Easter and Labour Day and is open 7 days during the alternate summer months. On Mondays and Tuesdays during summer hours the average is 51 visitors per day with our lowest daily visitation generally being on a Monday and Tuesday. This evidence is supported by our staff doing a manual count which show 2652k visitors total annually on Mondays and Tuesdays, which makes up only 18% of our total annual visitation target of 15k.  

For some national context most dedicated historical museums are generally open 7 days (excluding some public holidays) with a small number closed one or two days a week.

Internationally the models are mixed with Australia and the United Kingdom having either 7 days open or they are closed one day a week (this is generally dependant on whether they are private or publicly funded with publicly funded organisations open 7 days). While central Europe and the United States generally favour one or two days closed a week.

Opportunities:

This proposal to close the Petone Settlers Museum on Mondays and Tuesdays permanently partially reflects some consideration of savings, but also the potential to increase our capacity to have more public education programmes, with a small focus on revenue generation activities.

Our engagement team can see potential for more school and community group visits as the limited space at Petone Settlers Museum makes it difficult to negotiate a good drop-in visitor experience while simultaneously hosting large class groups. Education in particular believes this will increase interest in longer more indepth group programmes for groups including schools.  

There is also the added outcome of building and exhibition maintenance being carried out on Monday’s and Tuesday’s to ensure an undisrupted visitor experience on other days. Currently some works have to take place either side of opening hours (Petone Settlers Museum is open 10am-4pm) sometimes resulting in after-hours contractor rates or working during open hours resulting in a poor visitor experience.

Revenue generation could also be a focus of this Monday close particularly around venue hire and paid/ticketed programmes. It is important however to bear in mind that venue hire does include some casual staff requirements, but these are often on-charged. Although our core outcome for our engagement programmes is for these to be accessible across all demographics we have identified some opportunities to offer pay as you go workshops and ticketed special events.

5.

Strategic alignment and desired outcomes sought

Previous - Leisure and Wellbeing Strategy 2012-2032

Current – Our city and all its people thrive

·      Museums contribute to the development of social capital by encouraging greater social participation, stimulating curiosity about the social, built, cultural and natural environment; building self-esteem and civic pride, and improving the quality of life within their communities. They also contribute to the regeneration of communities by providing heritage records.

6.

Community engagement

Stakeholder groups (Petone Historical Society) consulted, no sector consultation required, rate payer consultation may be required as part of LTP process.

7.

Overview of project savings and potential revenue

Current estimated savings of a weekly closure on Monday is based only on Front of House staffing and is approx. $7,644 per annum (estimated at 1x front of house staff member working 7 hour shift across two days per week for 6 months and receiving a living wage of $21 per hour).

The closure will have no impact on back of house staffing.

We have also projected to get two new or returning school booking per week (approx. 30pax) and one new or returning community group booking per week. 

It is difficult to estimate the increase in revenue but we have a projected target of a minimum of one venue hire per month (based on Monday and Tuesday close) resulting in a monthly income of approx. $520 which works out to approx. $6,240 per annum. However, given the uncertainty of this, we have worked on a conservative estimate of $2,000 - $5,000 pa.

8.

Risks and mitigation plans

The key risk in this proposal is related to rate payer cost benefit perception, meaning that rate payers feel they are not getting value for money if Petone Settlers Museum is closed two days a week for the entire year as opposed to open 7 days a week currently in summer.

 

This can be mitigated by introducing the change from the beginning of the calendar year to ensure there is time to communicate the change to the public and having FAQs available particularly around what happens internationally.

9.

Annual Plan/LTP key assumptions

That key non-financial targets are not adversely affected by this proposal eg Dowse annual visitation target of 15k. Currently we have approx. 2652k visitors during summer on Mondays and Tuesdays so this number would have to be increased across the rest of the week or made through venue hire and/or education programmes.  

 

That this proposal is a permanent arrangement that will have some savings and potential community engagement benefits over coming years.

 


 

 

Further budget information

Table 1: Revenue budget

$M

2020/21

2021/22

2022/23

2023/24

2024/25

2025-2031

Total

Annual Plan 2020/21

0.0

0.0

0.0

0.0

0.0

0.0

0.0

LTP 2021-2031 – Subtotal

0.002

0.005

0.005

0.005

0.005

0.025

0.047

Variance

0.002

0.005

0.005

0.005

0.005

0.025

0.047

 

Table 2: Operational budgets

$M

2020/21

2021/22

2022/23

2023/24

2024/25

2025-2031

Total

Annual Plan 2020/21

0.0038

0.0076

0.0076

0.0076

0.0076

0.038

0.072

LTP 2021-2031

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Variance

0.0038

0.0076

0.0076

0.0076

0.0076

0.038

0.072

*these savings relate to employee costs


 

Attachment S: Footpath and drainage renewal programmes

 

1.

Project/

initiative

Footpath Renewal & Drainage Renewal Programmes

2.

LTP Activity

Transport

3.

Business lead

Kara Puketapu-Dentice

 

4.

Brief project description

(problem/opportunity statement)

Footpath renewals are required when the condition assessment determines that renewal is more cost effective than continued maintenance. Appropriate maintenance and renewal of footpaths is essential to ensure the safety of footpath users.

 

Drainage renewals are required to appropriately manage stormwater in order to prevent deterioration of the adjacent assets, the footpath and the carriageway.

 

There is currently a budget of $407k p.a. approved for Road Reconstruction which targets specific sections of streets for the placement and/or renewal of the stormwater management system (kerb and channel, sumps, laterals etc.), footpaths, vehicle crossings, traffic calming measures, street beautification, signage and road markings.

 

This expenditure would be more effective by redirecting $300k p.a. of it into a network wide drainage renewal programme and supplementing the current network wide footpath renewal programme with the remaining $100k p.a. This increase would take the footpath renewal budget to $310k p.a. Further to this an additional increase of $100k p.a. is recommended to support the growing footpath network across the city.

 

This would facilitate a more appropriate level of service for our footpath network and a more effective protection of our roading assets through a targeted renewal programme of our stormwater management system.

 

The footpath level of service is measured by annual resident satisfaction surveys, annual condition rating surveys undertaken by an independent inspector and monitoring the number of Requests for Service relating to this asset.

 

5.

Strategic alignment and desired outcomes sought

To provide a safe pedestrian and micro-mobility transport network which supports the economic and social aspirations of the city. Seeking to optimise the whole of life cost of the footpath network via the appropriate balance between maintenance and renewal while providing the requisite level of service.

 

To improve the integrity of our drainage system which improves the whole- of-life performance of our footpaths and carriageways.

 

This activity is strategically aligned with national, regional and city objectives.

 

6.

Community engagement

Engagement via Annual Plan and LTP processes. Monitoring via annual Key Research surveys, condition rating assessments and direct community feedback.

 

 

 

7.

Overview of project costs and funding source (refer tables below)

This initiative does not require additional budget, rather the redirection of expenditure to improve the level of service of our stormwater management system and our footpath network.

 

 

 

8.

Risks and mitigation plans

If timely renewal work is not undertaken then the footpaths will deteriorate making them unsafe for pedestrians and micro-mobility users.  This risk is heightened when you consider the aging population of our city and the increasing vulnerability of footpath users to a compromised footpath surface.

 

Failure to undertake timely footpath renewals will result in an increased cost legacy for future generations

 

If our stormwater management system is not appropriately maintained and renewed we compromise the whole-of-life performance of our roading corridor, including the footpaths and carriageway.

 

Further budget information

Table 1: Capital budgets for footpath renewal

$M

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Total

Annual Plan 2020/21

0.21

0.21

0.21

0.21

0.21

1.05

2.1

LTP 2021-2031

0.41

0.41

0.41

0.41

0.41

2.05

4.1

Variance

(0.2)

(0.2)

(0.2)

(0.2)

(0.2)

(1.0)

(2.0)

 

 

 

 

 


                                                                                      69                                                      27 October 2020

Long Term Plan/Annual Plan Subcommittee

07 October 2020

 

 

 

File: (20/1140)

 

 

 

 

Report no: LTPAP2020/6/220

 

Long Term Plan 2021-2031 Rating Policy Review update report #2

 

Purpose of Report

1.    The purpose of this report is to further progress rating policy decisions as part of drafting the LTP 2021-2031 ahead of the public consultation process.

Recommendations

That the Subcommittee recommends that Council:

(i)        notes the decisions of the LTP Subcommittee on the 24 September and that this report has been prepared in response to those decisions;

(ii)       notes the ‘step two’ process which requires Council to apply its judgement and includes considerations of the overall impact on the current and future social, economic, environmental, and cultural wellbeing of the community as noted in the report.

(iii)      agrees with the new definition of the Rural differential rating category to be included in the rates funding impact statement and the revenue and financing policy for consultation as part of the LTP 2021-31, refer section C of the report;

(iv)      agrees to the Rates Remission Policy being updated to include a remission to allow an implementation for ratepayers changing from Rural to Residential to take place over two years;

(v)       agrees with combining the Business Central and Business Queensgate differential rating categories;

(vi)      agrees to the removal of the Business Accommodation differential rating category, by merging into either Business Central or Business Suburban differential rating categories depending on location;

(vii)     agrees to the Rates Remission Policy being updated to include a remission to allow an implementation for ratepayers changing from Business Accommodation to Business Central to take place over two year years;

(viii)    agrees to the use of a fixed multiplier for the smaller differential rating categories of Rural and Community Facilities alongside the use of a percentage proportion for the Residential, Business and Utility categories;

(ix)      considers the General Rate percentage allocation amount to be applied to the residential rating category with the proportionate change to commercial categories, refer paragraph 51;

(x)       agrees to implement the change to the General Rate percentage allocation over a three year period, refer paragraph 53;

(xi)      notes that officers will report back to the subcommittee on the 30 November with the draft RFP and FIS updated for the Council decisions made; and

(xii)     considers any further direction to be provided to officers in developing rating policy.

 

 

Acronyms:

AP - Annual Plan 2020/21

DLTP – Draft Long Term Plan 2021-2031

LTP – Long Term Plan 2021-2031

CD – Consultation document

LGA – Local Government Act 2002

LGRA – Local Government (Rating) Act 2002

RFP - Revenue and Financing Policy

FIS – Rates Funding Impact Statement

Section A – Background

2.    The latest three yearly property revaluation in Lower Hutt saw residential property values increase substantially more than commercial property values. Council decided to start a review of the rating policy mainly due to concerns about the affordability of rates for residential ratepayers impacted by these changes in property values. 

3.    The draft AP included various rating policy options for 2020/21 as an interim one-year solution. Following engagement with the community Council adopted a holding position for the AP to keep the allocation of the General Rates at the same percentage levels between all differential rating categories as was the case in 2019/20.

4.    Council agreed that through the LTP 2021-2031, a full review would be completed, from a first principles approach of the RFP and the associate rating policy aspects.

5.    At the LTP Subcommittee meeting on 24 September 2020 two reports covered matters related to the RFP, “Revenue and Financing Policy Review” and “Rating Policy Review”.

6.    As part of the “Revenue and Financing Policy Review” report the Subcommittee resolved as follows:

 (i)     notes that as part of the preparation of Draft LTP 2021-2031, that the Revenue and Financing Policy is being reviewed;

(ii)     endorses the proposed approach to the review of the Revenue and Financing Policy as detailed in Section C contained in the report;

(iii)    endorses the proposed ‘Funding Needs Analysis’ section of the Revenue and Financing Policy section, attached as Appendix 1 to the report;   

(iv)    notes this ‘Funding Needs Analysis’ will underpin further work to be undertaken in relation to setting fees, rates and other funding sources for the Long Term Plan 2021-2031 and in future years;

(v)     notes the work completed to date on updates to the Revenue and Finance Policy.

7.    As part of the “Rating Policy Review” report the subcommittee made the following resolutions:

(i)      notes that rates affordability is a key consideration in the Council’s Financial Strategy, as detailed in Section A contained in the report;

(ii)     notes that in approving the rating policy in the Annual Plan 2020/21, Council agreed to a rates policy review being undertaken from a first principles approach, as part of the LTP 2021-2031;

(iii)    notes that the rates policy will be consulted on a part of the Draft LTP 2021-2031 process, with relevant details included in the Revenue and Financing Policy and the Rates Funding Impact Statement;

(iv)    notes the overall approach to the rating review as outlined in Section C contained in the report;

(v)     agrees that there is to be no change to Council continuing to set general rates based on the capital value of properties, refer Section E contained in the report;

(vi)    agrees that there is no change to targeted rates, apart from those changes relating to refuse and recycling, refer Section F contained in the report;

(vii)   agrees that a Uniform Annual General Charge is not implemented, refer Section G contained in the report; 

(viii)  agrees in principle that the Community Facilities differentials and related rates remission policy continue unchanged, refer Section H contained in the report; 

(ix)    agrees in principle to progressing changes to rural rates to align with the District Plan rural activity description, refer Section I contained in the report;

(x)     having considered the method of setting general rates differentials as contained in Section J of the report, directs officers to further develop options to support its preferred option of using a percentage of rates methodology, as compared with a multiplier methodology;

(xi)    requests officers to develop options which would see the residential share of rates at 60%, 58% and 56%, with options around staging any changes over time;

(xii)   having considered the options to change general rates differentials as contained in Section K of the report, requests officers to further develop options of merging differentials for Business Central and Business Queensgate;

(xiii)  having considered the options to change general rates differentials as contained in Section K of the report, requests officers to further develop options of removing the differential for Business accommodation, by merging into either Business Suburban or Business Central depending on location;

(xiv)  notes that officers will report back to the Subcommittee on 27 October 2020 with further analysis and advice in relation to rating policy review.

8.    This report sets out the next steps in consideration of the matters resolved above.

Section B – Approach to the rating policy review

9.    The rating policy forms part of the Council’s RFP. The preparation of the RFP is required to be undertaken in a two step process under the LGA. ‘Step one’ was agreed at the previous committee meeting as part of the report “Revenue and Financing Policy Review”.  The report covering step one provided an analysis of Council activities, including who benefits, whose act creates a need and how each activity should be funded.

10.  ‘Step two’ of the process is more specifically focused in the rates policy area and is the focus of this report. Extract of RFP:

“Step Two

The second step in the process is for Council to apply its judgement to the overall impact on the community. In exercising this judgement Council considers the following;

·    The impact of rates and rates increases on residential properties, and in particular on the affordability of rates and rates increases for low, average and fixed income households.

·    The impact of rates and rates increases on businesses and on the competitiveness of Lower Hutt as a business location.

·    The fairness of rates (and changes in rates) relative to the benefits received for ‘stand- out’ properties with unusually high capital values.

·    The special characteristics of particular classifications of property - including their purpose and proximity to the city.

·    The complexity of the rating system and the desirability of improving administrative simplicity.

·    The change in relative rateable values between types of properties.

As the General rate is a general taxing mechanism, shifting the ‘differential factor’ for each sector’s share of the city’s overall capital value is the principal means that Council has used to achieve the desired overall rates impact on the wider community.”

11.  In addition to the matters above, the re-introduction of the four wellbeing’s into the LGA requires Council to consider the overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental, and cultural well-being of the community.

12.  The approach being taken to this rating review was confirmed by the LTP Subcommittee on 24 September and includes the following:

a)   Comparing HCC rates policy to other similar Councils across New Zealand.

b)   Reviewing how each of the rating tools is being applied at HCC and the options for the future.

c)   Considering the impact on ratepayers of various options.

d)   Requesting Council to provide direction to officers on the options ahead of progressing further. This is likely to involve a few cycles.

e)   Preparing a revised draft rates policy for consultation in the Draft LTP.

f)    Considering public feedback ahead of finalising the policy.

g)   Obtaining specialist legal and technical rating advice throughout this review.

13.  Overview of the rating tools progressed further in this report

Rural Differential Rating Category definition (Section C)

Consolidation of certain Business Differential Rating Categories (Section D)

General Rate percentage allocation (Section E)

14.  Information prepared in this report is based on information included in the AP. It is not updated for any subsequent LTP 2021-2031 budget or rates changes approved by Council. Updated information including rates impacts for the LTP 2021-2031 will be reported following further Council decisions in relation to the budget review.

Section C – Rural Differential Rating Category definition

15.  Currently there are 491 properties in the city classified as Rural from a rating policy perspective. They collectively pay $679,525 or 0.9% of the general rate. The Rural Differential set in the AP is 0.747.

16.  The subcommittee agreed in principle on 24 September 2020 to progress with the option of aligning the Rural differential rating category definition with the Rural definition in the District Plan. This is on the basis that:

·    There are currently aspects that do not align between the FIS and the RFP.

·    The proposed approach is in line with the approach taken by other Council’s, including Porirua City Council and Upper Hutt City Council.

·    The proposed approach improves definition clarity, supports legal compliance, and provides longevity to the policy as property rating will naturally change with land use over time.

17.  Currently the FIS describes the Rural differential rating category as including:

“All rating units in the city which are:

used primarily for residential purposes, having an area in excess of 3,000 m2, but not connected to either water or sewerage reticulation;

East Harbour Regional Park;

not otherwise categorised in the Definition of Rating Categories table.”

18.  Currently the RFP describes the rationale for a lower rural rate as:

“rural properties often experience a lower level of service because of the longer distances between rural properties and Council facilities”.

19.  Aligning the definition with the District Plan will require updates to the Rates FIS and the RFP.  The proposed updates are as follows.

RFP – insert following text:
“The General Rate for Rural rating units is differentiated on the basis of perceived distance to Council services. Rating units to which this differential will apply are those within areas zoned as Rural in the Council’s operative District Plan.”

20.  FIS – replace definition of Rural differential rating category with:
“All rating units in the city used primarily for residential purposes and located in entirety within land zoned within Rural definitions in the Council’s operative District Plan”

21.  As a result of the change in definition there will be a small number of properties (54) that will have significant increases in the General Rate assessed. The impacts are shown in Table 1 below.

Table 1 – impact of rural definition change

Property Category

2020/21 Rates

Council endorsed option

$ Change in Rates

% Change in Rates

Average Rural General Rate (no services)

$1,608

N/A

N/A

Average remain Rural (430 properties)

$1,643

$0

0%

Average change from Rural to Residential (54 properties)

$1,353

$457

33.81% increase

Average change from Residential to Rural (11 Properties)

$2,042

($516)

(25.27%) decrease

 

22.  Council could choose to implement the change as a one off change, or look to implement the change over a period of time through the use of a Rates Remission for affected properties. Officers recommend the use of a one year remission of 50% of the change to adjust the General Rate payable by the affected properties. This remission would then be in place to allow for any further District Plan zoning changes in the future. The proposed wording for the remission is included in appendix 1.

23.  Officers recommend Council endorses the changes identified above.

24.  As part of consultation, officers will look to communicate with the individual ratepayers affected due to the small number of affected properties by this change.

Section D – Consolidation certain Business differential rating categories

25.  Council needs to consider not only the method of setting differentials, but also the categories of properties that the differential should be applied to.  When considering the categories, Council must consider

·    property locations;

·    both differences and similarities between the categories;

·    the overall impacts on all ratepayers.

26.  The Subcommittee agreed in principle on 24 September 2020 to progress with the options of:

·    combining differential rating categories for Business Central and Business Queensgate to reflect the similarity of level of services provided by the Council ; and

·    removing the differential rating category for Business Accommodation, by merging into either the Business Suburban or Business Central differential rating category depending on location to reflect that there is limited rationale for these properties being separated out from other businesses.

Combining Business Central and Business Queensgate differential rating category

27.  The impact of merging Business Central with Business Queensgate is presented in table 2 below. This impact is based on taking a weighted average of 2020/21 rating values and rates to identify the revised differential that would apply. This is based on the rating values as at 1 July 2020 when the rates were set for 2020/21 and assumes no changes to rating values or rates increases.

Table 2 – Impact of merging Business Central with Business Queensgate

Property Category

Capital Value 1 July 2020

1 July 2020 Rates Actual

$ Change Amount annual

Change Amount %

Average Residential

$625,042

$2,599

$0

0%

Average Business Central

$1,690,799

$13,628

$295

2% increase

Average Business Suburban

$1,625,545

$11,812

$0

0%

Average Business Accommodation

$3,127,121

$24,711

$0

0%

Business Queensgate

$240,000,000

$1,906,376

($88,685)

(5%) decrease

Average Rural (no services)

$867,386

$1,608

$0

0%

Utilities

$2,630,700

$18,294

$0

0%

 

28.  The numbers in table 2 are subject to change due to a range of factors including:

·    Investment by Queensgate in their rebuild programme underway

·    Investment by other Business Central ratepayers

·    Any decisions by Council to adjust the General Rates allocation between categories per Section E of this paper

29.  Of the 2019 rating valuation, 0.8% of the City’s total value was held by Queensgate Mall (the Mall).  Therefore, the Mall is a “standout” ratepayer and Council must consider the impact of the proposed policy change on the Mall.

30.  As part of the AP the Council resolved to use a separate differential for the Mall to reflect that while the rating values had changed (including a decrease) the benefits received for “stand-out” properties with unusually high rating values still remains.

31.  The Mall is progressing in its rebuild programme. The rating value of the “stand-out” property is expected to increase in line with this rebuild activity in the 2021/22 and 2022/23 financial years.

32.  Officers recommend that Council approve the combining of the Business Central and Business Queensgate differential rating categories to reflect that there is no service difference received by the two categories.

Merging Business Accommodation into either Business Suburban or Business Central depending on location

33.  The impact of removing the Business Accommodation differential rating category, by merging into either Business Suburban or Business Central depending on location, is presented in table 3 below.

Table 3 – Impact of removing Business Accommodation differential

Property Category

2020/21 Rates

Council endorsed option

$ Change in Rates

% Change in Rates

Average Business Accommodation

$24,711

N/A

N/A

 

Average change to Business Central (4 properties)

39,168

3,527

9.3% increase

Average change Business Suburban (29 Properties)

19,763

(487)

(2.6%) decrease

 

34.  Making this change would better reflect the impact of location on receipt of Council services and align accommodation properties with other commercial properties in their location. 

35.  Officers recommend that Council approve the removal of the Business Accommodation differential rating category and the merging of these properties into the Business Suburban and the Business Central categories.

36.  Council could choose to implement the change as a one off change, or look to implement the change over a period of time through the use of a Rates Remission for affected properties. Officers recommend the use of a one year remission of 50% of the change to adjust the General Rate payable by affected properties over time. The proposed wording for the remission is included in appendix 2.

Section E – General rate percentage allocation

Background

37.  In 2012, business general rates were almost four times the amount of residential general rates. In the 2012-2022 Long Term Plan the priority focus for the Council was on “growth and rejuvenation of the city”. Council began a process of adjusting the share of the general rate paid by businesses, residential and rural ratepayers. A gradual transition over 10 years was introduced. This was considered to be a more equitable allocation between differential rating categories. The intention was that by 2021/22, the general rate paid by a business ratepayer would be 2.3 times that of a residential ratepayer (with a minor revision from 2.30 to 2.29 included in the LTP 2018-2028).

38.  In 2016 and 2019 the Council decided to make changes from its policy position to moderate the effect of the three-yearly property revaluation on residential properties caused by the significant increase in residential property values compared to the other property types. 

39.  Modelling indicated that about a 60% residential share of the total general rate was intended based on this initial approach from 2012. However, by 2019/20 the allocation had reached 63% residential as shown in the graph 1. Council chose to maintain the allocation at the 63% level as part of the AP.

Graph 1: General rates revenue percentage by property category

40.  Council considered the impacts of the 2019 rating revaluation on the affordability of rates for all ratepayers. It was particularly concerned that the increase in the amount residential ratepayers pay of the general rate, without any change, reduces affordability of rates for residential ratepayers. Council considered affordability an important factor when considering the overall impacts of how it funds activities.

In the finalising of the Annual Plan 2020/21, Council considered the matters in ‘step two’ (refer paragraph 10) and options for modifying the differentials as overall impact adjustments. It weighted the competing interests of different sectors of ratepayers as set out in ‘step two ‘, particularly the different abilities of the residential and commercial sectors to accommodate rates increases at this time, and the impacts of those increases, particularly on rates affordability. In its judgement, the interests of residential ratepayers were more pressing, and differential adjustments were made to reduce the rates incidence on this sector.

Percentage proportion: 60%, 58%, and 56% approach

41.  The Subcommittee, at the meeting on 24 September, requested officers to develop options which would see the residential allocation of the total general rate at 60%, 58% and 56%, with options around staging any changes over time.

42.  The rating impacts for these options are presented in table 4 for each percentage.  Options for 60%, 58%, and 56% assume the Business Central and Business Queensgate categories are merged.

Table 4 - Options for 60%, 58%, and 56% residential share of general rate.

 

 

Allocation in 2020/21 63%

Option to revise to 60%

Option to revise to 58%

Option to revise to 56%

Property Category

Capital Value 1 July 2020

1 July 2020 Rates Actual

$ Change Amount annual

Change Amount %

$ Change Amount annual

Change Amount %

$ Change Amount annual

Change Amount %

Average Residential

$625,042

$2,599

($70)

(3%) decrease

($119)

(5%) decrease

($168)

(6%) decrease

Average Business Central

$1,690,799

$13,628

$1,589

12% increase

$2,420

18% increase

$3,252

24% increase

Average Business Suburban

$1,625,545

$11,812

$1,096

9% increase

$1,790

15% increase

$2,484

21% increase

Average Business Accommodation

$3,127,121

$24,711

$2,297

9% increase

$3,677

15% increase

$5,056

20% increase

Business Queensgate

$240,000,000

$1,906,376

$94,918