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Porirua – our place,

our future, our challenge


Let’s kōrero

Consultation Document for the


proposed Long-term Plan 2018-38
Message from Ngāti Toa Rangatira
E te iwi e noho nei i te riu o Porirua, tēnā koutou katoa.

The development of the city’s 2018 Long-term Plan will bring changes to our city that we will be
proud of. Between now and 2038 we will see Porirua transform into a vibrant and exciting place to
be for residents and people who choose to work here. We are blessed with hills and islands that are
anchored by Te-Awarua-o-Porirua Harbour. It is our time – Porirua is the region’s city of the future.

Nou te rourou, nāku te rourou, ka ora ai te iwi.

With your contribution, and my contribution, the people will thrive.

Taku Parai
Chairman, Te Rūnanga o Ngāti Toa Rangatira

2 Consultation Document for the proposed LTP 2018-38


Contents
Mai i tō Koutou Koromatua 4
From your Mayor

Our priorities and choices 8

A growing, prosperous, and regionally connected city 8

Strategic property 9

Revitalising Eastern Porirua 10

Paid parking in the city centre 12

Children and young people at the heart of our city 14

Subsidising recycling for Porirua schools and preschools 15

A great village and city experience 16

Improving connections to Titahi Bay 17

A second fenced dog park for the city 18

A healthy and protected harbour and catchment 20

Some of our hard decisions 23

Key policies and strategies 24

Remitting and postponing rates 24

Growth paying for growth 24

Special rate for Porirua’s Hongoeka community 25

Fees and charges 25

Financial Strategy 26

Infrastructure Strategy 32

Independent Auditor’s Report 36

3
Mai i tō Koutou Koromatua
From your Mayor
cent, which is lower than inflation. However, the
drive to balance the books by 2021/22 adds
about 1.95 per cent and the cost of our continued
investment in the city’s core infrastructure adds
a further 2.27 per cent. While these two latter
costs push the rate increase up, they will ensure
our city is well placed in the future.

Over the 20 years of this plan we will be investing


$770 million, this is mostly to improve and
upgrade our core infrastructure. We’re continuing
to prioritise bringing safe drinking water to
your homes and taking away and treating our
wastewater. We’re investing in our stormwater
Kia ora, talofa lava, hello!
to protect our harbour and reduce the risks of
Thanks for taking the time to read our flooding; and we’re connecting our villages with
Consultation Document which outlines what pathways, cycleways and roads.
we’re proposing for our beautiful city over the
Our investment of $40 million in the Transmission
next 20 years.
Gully Motorway link roads into Porirua is the
Our mahi is to make our city even better than it is biggest we have ever made for our city. We need
now for everyone who chooses to live, work and to plan now so we can take advantage of the
raise a family here. We want to improve the way significant opportunities that will come with this
we cope with natural disasters, invest in growth major investment.
and infrastructure, and deliver services that meet
Running a city is a complex and costly job, so it’s
the diverse needs of our growing communities.
important the decisions we make are done with
Our challenge is to find a way to deliver these your input. We are a diverse city where people
things while keeping rate increases as low as have different priorities and views. But we’re
possible. The rub is that Porirua City relies mostly sticking with the priorities that we agreed with
on residential rates to fund the work for our you in 2015 and building on them.
city, while other cities also receive income from
We’ll be at various events and we’re holding a
large commercial sectors, ports, airports and
number of meetings so we can kōrero with as
investments.
many of you as possible. Details of the meetings
This is tough so we work to strike a balance that and how to make a submission are on the next
is fair and works for all of Porirua. page. Come along and ask questions or share
your thoughts on what’s in this Consultation
The proposed average rates increase for the next
Document.
four years is 5.25 per cent.
Let’s work together for Porirua – it’s our place!
So what’s behind this increase? This amount is
driven by a number of factors. The rates increase Mike Tana
for our general operations sits at about 1.03 per Mayor of Porirua City

4 Consultation Document for the proposed LTP 2018-38


Let’s kōrero Porirua!
Porirua is our place, and we want to plan it with you – every step of the way. Our
formal consultation runs from 23 March to 23 April and our Mayor, councillors and staff
will be coming to talk with you at locations throughout the city about Porirua’s future.

March April April

26 09 16
Community workshop
Mana Cruising Club
Community workshop
Porirua RSA
Community workshop
Porirua Club
Monday, 6–8pm Monday, 6–8pm Monday, 6–8pm

For more information on when we are coming to your area and how you can
be involved – go to our website poriruacity.govt.nz

Have your say by 23 April Our proposals and options


Making a submission is easier than you think
and you can do this in many different ways. It We have calculated the dollar rate impact
doesn’t take long! for each option based on rates for a median
residential property with a Capital Value
Go online of $470,000. For the dollar rate impacts
Make an online submission at beyond 2018/19 (Year 1), it’s assumed that
poriruacity.govt.nz/ltpsubmissions the percentage change in rates for the
median property is the same as the average
Write to us change in rates for existing ratepayers.
Make a hard copy submission – fill in the It’s also assumed that there is no material
feedback form that accompanies this document change in the Capital Value of the property.
using the freepost provided (or download a copy Therefore these figures are indicative
from poriruacity.govt.nz/ltpsubmissions) and only because a change in the mix of the
post, email or drop it into us: components of rates (general/targeted rates)
or type of property (residential, commercial,
Postal address Porirua City Council, PO Box rural) may have an impact on the actual
50218, Porirua 5240 dollar rate impacts indicated.

Physical address Ground Floor, Administration The Option 1 proposals in this document are
Building, 16 Cobham Court, Porirua 5022 Council’s preferred option, apart from the
proposal for the second dog park in the city
Email your scanned feedback form to where there is no preference.
longtermplan@poriruacity.govt.nz

5
Porirua is our place – to live, work and raise a family
We want to provide the right services and facilities for everyone now and in the future.
The four long-term priorities for our city that we agreed with you in 2015 support that.
They acknowledge our diversity, and underpin all our decision-making:
• A growing, prosperous and regionally connected city
• Children and young people at the heart of our city
• A great village and city experience
• A healthy and protected harbour and catchment.

We’ll continue to use these four priorities to guide our decisions in this Long-term Plan,
to build on what we have already achieved.

Our challenge Stormwater and wastewater


Although our stormwater network is in pretty
Porirua City has a small number of ratepayers
good condition its performance is compromised
relative to the population and lacks significant
by it being under capacity. This, along with our
other income. Our challenge is to provide a
wastewater service, which is in poor condition,
high level of services and facilities while keeping
has insufficient capacity during heavy rain
rates affordable.
events resulting in overflows that cause
The most significant challenge facing us over environmental and public health risks.
the next 20 years is how our water infrastructure
The ability of our water infrastructure to cope
will perform for our people and city. Most of our
with flood events will only be exacerbated by
investment goes into managing water supply,
climate change. To mitigate this risk, we are
wastewater and stormwater – and significant
planning wastewater and stormwater upgrades
investment is required into the future. The
over the next 20 years to reduce the impacts of
following graph shows you the current condition
flooding and to improve stormwater discharge
rating for these services:
quality.
Key

Stormwater Wastewater Water Water supply

%
Like the rest of the Wellington region, our city is
50 also vulnerable to natural disasters so having a
resilient waters network is important to ensure
40 rapid recovery after an event. We are planning
to increase our water storage capacity through
30 new and upgraded reservoirs in Elsdon, Aotea
and Whitby. Other initiatives like upgrading
20 the Porirua low level reservoir, along with
the wastewater and stormwater network
10 improvements, are planned to meet predicted
growth in the city.
0
Excellent Good Fair Poor Very
Poor

6 Consultation Document for the proposed LTP 2018-38


Next steps the resilience of our water infrastructure, so
Modelling of the waters network is underway we’re taking this opportunity to let you know
and we are working in a variety of ways to what we’ve got planned. Although we’re not
conserve water, reduce wastewater infiltration consulting on this you can read more about our
and plan for better stormwater management plan to invest in infrastructure on page 21.
through design.

We have increased our capital expenditure This year’s rates proposal


which will impact rates levels. We did consider
It’s never an easy job making the final
a slower approach but this would not address
decision. Not everyone wants the same
the immediate issues that we are facing. We
things and some people want to spend
also looked at increasing our spend further to
more than others. Of course, your Mayor and
address the capacity challenges more quickly.
councillors also have to take into account
However, this would have had an even larger
rules set by central government before
impact on rates and with staff already stretched
making any decisions. You can read about
we would have found it difficult to deliver a
those later in this document.
larger capital programme.
The proposed average rate increase
The programme that we’ve agreed with
for the next four years for ratepayers is
Wellington Water works to address the above
5.25 per cent after allowing 1.0 per cent for
issues. This will see us increasing our investment
growth. This is because we are starting to
in the waters network by $97.6 million more than
pay for the Transmission Gully Motorway link
in the last Long-term Plan over the next 20
roads and we are smoothing the peaks and
years. This will be funded by debt, depreciation
troughs that will occur over the next four
funds and Development Contributions.
years as we also work to balance the budget
In our last Long-term Plan you told us you by 2021/22.
wanted greater investment to enhance

Rate percentage increase to existing ratepayers

10

5
%
4

0
6

33

8
/3
/2

/2
/1

/3
/3

/3
/2
/2

/2

/2

/2

/3
/1

/2
/1

/2

/3
/1

/3
/2

/3

/
16

20

30
17

18
15

26

36
27
24

34
25

28
21

31

37
23
22

32

35
19

33
29

Actual rate increase LTP 2015-25 annual rate increase Projected rate increase

7
Our priorities and choices

A growing, prosperous, and regionally


connected city

Our city is growing. We want to foster this Gully Motorway and its new interchanges at
growth in a careful and considered way to Kenepuru, behind Whitby/Waitangirua and
generate greater income for Porirua City, benefit at Pāuatahanui, an 800 lot subdivision in
residents and businesses, and attract visitors. Kenepuru, and an Adventure Park on Rangituhi.
New businesses, residents and visitors will all
We’re at the heart of the Wellington region.
put pressure on our existing roading network,
Our central location has regional and national
in particular the network around the Kenepuru
advantages. It’s important to connect Porirua
Interchange that is expected to see significant
City with other parts of the region and the
changes in traffic patterns and volumes.
country through infrastructure, shared services,
partnerships with other groups, and connect Also, under current legislation, ownership
with agencies and organisations who value the of SH1 and SH58 impacted by the new
same things that we do. Transmission Gully Motorway could be passed
on to Porirua City. However, this is still the
Exciting new projects across the city will boost
subject of discussions with the New Zealand
growth. Key projects include the Transmission
Transport Agency (NZTA) and at this stage we

8 Consultation Document for the proposed LTP 2018-38


have not been able to ascertain any of the
ongoing associated operational or capital Feedback
costs. Revocation of SH1 and SH58 will result
For this Long-term Plan we are seeking your
in additional costs and have an impact on
feedback on projects that support a growing,
rates. But due to the uncertainty at this point
prosperous and regionally connected city:
in time, this Long-term Plan does not include
any financial implications of revocation. Our • Strategic property
next Long-term Plan (2021/41) will include those
• Revitalising Eastern Porirua
known impacts.
• Paid parking in the city centre
Here’s a look at what’s already underway:
• a new look and feel for the central business
district Strategic property
• maximising the opportunities presented by How do we make sure that the right kind of
Transmission Gully Motorway development happens, in the right places, as
• traffic modelling for city centre access and the city grows and changes?
the wider roading network will help consider
One way the Council can influence future
the local and regional impacts of changes to
development is by investing in strategically
traffic flows brought about by the possible
important property and then work with the
revocation of SH1 and SH58 as well as the
private sector to develop it. The Council has
impact of growth
done this successfully in the past.
• a new economic plan which develops and
There is significant investment occurring in
leverages opportunities and promotes
Porirua City and the Wellington region including
Porirua City as a great place to live and do
Transmission Gully Motorway and the link roads
business
and that’s giving us good information about
• regular, quality and diverse city events how the city is likely to grow. This investment
• supporting the development of Porirua will deliver new housing, employment and
Adventure Park – expected to attract create additional revenue for our city. With
80,000 visitors a year and create more than strategic property investments the Council can
100 new jobs help accelerate this growth.

• work with developers to grow suburbs like We have made a budgetary provision of
Kenepuru Landing, our Northern Growth $11 million to acquire key sites over the next few
area and Aotea. years. It is likely the way the land is used will
change around Transmission Gully Motorway
Our approach to growth is to: and its associated link roads. We will look to
acquire suitable land parcels to help facilitate
• focus on getting the basics right
future development and revitalisation in the
• build on existing strengths right places. We do not anticipate that any
• develop and leverage opportunities, and acquisitions would be a long term-hold; rather
we would look to dispose of the land over time.
• improve perceptions of our city.
The proceeds of the disposals are not factored

9
into the plan but over time the rates impact Revitalising Eastern Porirua
of the sale would flow through into lower rate
increases than currently shown. We are expecting growth and change in
Eastern Porirua with the Transmission Gully
Motorway and link road changes, as well
Your views as the Government’s interest in increasing
the quality and quantity of social housing.
Do you support this active approach to help It’s the ideal time for Council to work with
develop, grow and revitalise our city? Here central government and other partners so
are the options: that changes reflect the strength of these
communities and provide practical solutions
1. Invest in strategic property
for some of the issues like access to jobs and
Cost $11 million community services.
Years 2019/20 and 2020/21
Eastern Porirua will flourish with a more
Rate impact 0.33% increase per year diverse range of housing ownership, more
over four years from Year 1 that assumes local employment, and greater investment in
sufficient funding for future years. This is the local schools and surrounding community
fully loan funded with the cost of interest facilities. We can encourage this in four
and principal repayments over a 25 year important ways:
period included in the rates impact. This
1. Use the District Plan review to enable
project would mean an increase of $9.71
changes in land-use that will allow better
for the average ratepayer in Year 1 of the
utilisation of land, greater housing quantity,
project.
and to stimulate commercial and industrial
If there were to be any sales on these development in the area
properties in the future the proceeds 2. Increase investment in our roads and
would be used to repay debt. There will infrastructure – in partnership with central
be no impact on the standard services government and developers
we provide to support a growing city (like
family events) and our plans to revive the 3. Work closely with central government to
city centre. advocate for investment in Eastern Porirua
4. Support the development of quality facilities
2. No investment in strategic property for the community that will be used by
If we choose not to go ahead with these people in the immediate community and
strategic investments we would lose the the wider city.
opportunity to directly influence the future
shape of our city. Not proceeding would We are considering how the Council can best
also lower the rate level from the 5.25% invest in infrastructure in this part of the city.
shown for the first four years by 0.33% and Part of the mix could be to work with partners
a lower debt level as Council would not to build a multi-functional community facility
borrow the $11 million budgeted cost. to house a number of services such as a library,
recreation facilities, community meeting rooms,
and office space for businesses, government

10 Consultation Document for the proposed LTP 2018-38


agencies and other groups. This would service
the eastern areas and adjoining suburbs. Your views
We have budgeted $15 million in capital Do you support the idea of a community
expenditure for a community facility like this, facility like this, built in partnership with
and we want to know what you think of this others? Here are the options:
idea.
1. Invest in the revitalisation of Eastern
We think it’s important that we recognise that Porirua
investment in one of the oldest parts of our Cost $15 million
city will be required at some time in the future.
As we start to shape our thinking and also Year 2025/26
better understand what other agencies are Rate impact 2% increase in 2028/29
considering in the East, we will be in a position (Year 11). As with our other long-term
to consult with the community in more detail investments, this is fully loan funded
and refine our thinking further. The budget with the cost of interest and principal
provision spans from 2025/26 (Year 7) to repayments over a 25 year period as
2027/28 (Year 10) of our plan. This means well as depreciation and operating costs
there is no proposed rate impact until 2028/29 included in the rates impact. This project
(Year 11). would mean an increase of $81.68 for the
average ratepayer in 2028/29.
At this stage we are gauging support for
the idea and there will be no change to the 2. No future investment
existing standard services we provide across If the project does not proceed then
the city like libraries and swimming pools. Once the rates from 2028/29 (Year 11) will be
we have your feedback, we will start looking 2% lower and debt levels from 2024/25
at what might be included in a community (Year 7) would be lower as Council would
facility, where it might go and whether or not not need to borrow the $15 million
it would replace existing facilities. Following budgeted cost for the project.
this investment, there will be an improved level
of services in which we and our partners will
provide to support a growing city.

If community feedback shows support for


this concept we will further consult to gather
feedback on the exact location and facilities
that could be offered and will provide more
detail on this in the next Long-term Plan.

11
Paid parking in the city centre Long-term car parking
We are also looking at long-term parking
Parking is important whether you come into the
options in the city centre, to enable our workers
city centre for work, to shop or to meet friends.
to be able to park close to the city centre at:
We manage the city’s parking spaces through
pricing and time restrictions. • Sections of Lyttelton Avenue
• Station Road
Currently there is no charge for most parking
spaces in the city centre. But we are • Remainder of Lydney Place North carpark.
considering reducing the time people park for
We are also proposing increasing the price for
free from next year, based on the following
all day parking from $5 to $7.50 a day. With the
principles:
growth in our business sector and an increase
• parking for quick stops should still be free in demand for long-term parking we think this
• increasing turnover for our busier areas is a good solution that remains competitive
compared to other cities in the region.
• encouraging the use of the outer areas and
increased foot traffic through the city centre To see more information on this proposal go
to our website poriruacity.govt.nz keywords
• improving parking technology.
LTP supporting information.
By doing this we hope to provide a more
convenient, accessible and safer parking
experience for everyone who comes into Your views
the city.
Please tell us what you think about these
Short-term car parking ideas for introducing some paid parking in
the city centre.
The first 30 minutes would remain free for
those who want to grab a coffee or a bite to Phased from 2018/19 to 2021 total revenue
eat. After 30 minutes it would cost $1 per half $671,000
hour for a maximum 90 minute stay. Rates impact -0.25% per year over four
years from Year 1 with annual increases from
This will apply in the following areas:
2022/23 (Year 5) in line with regulatory fees
• Cobham Court and charges. This project would mean a
• Blue Heron Lane decrease of $7.35 for the average rates payer
in 2018/19 (Year 1).
• A section of Lydney Place North carpark
If we didn’t introduce these new parking
• Hagley Street
charges then it should be assumed that the
• Kilkerran Place proposed average rates increase of 5.25%
• Ferry Place would go up by 0.25%.

• Hartham Place. The parking service we provide in the city


centre will be enhanced by introducing more
short-term parking options. This proposal
will support good turnover rate and better
access to the city for residents and visitors.

12 Consultation Document for the proposed LTP 2018-38


Proposed paid car parking: Short-term Long-term

13
Children and young people at the heart of our city

We want our young people to grow up in a • community events that appeal to families
supportive community where they participate
• providing accessible playgrounds through
in decisions affecting their future.
‘Playable Porirua’.
Around 40 per cent of our population are aged
under 25 years and a quarter of us are 15 years
or younger. Feedback
Here’s what we’re already doing: For this Long-term Plan we are seeking
your feedback on one project that supports
• partnership with Partners Porirua to improve children and young people:
education and employment outcomes for
children and young people • Subsidising recycling for Porirua schools
and preschools.
• primary and secondary school engagement
– encouraging young people to take part in
city wide consultations
• operation of Te Pahi, our community bus, for
lower decile schools to access our facilities
and events
• education programmes at our community
facilities

14 Consultation Document for the proposed LTP 2018-38


Subsidising recycling for Porirua schools and preschools
One of the most common concerns that young people have when we speak with them is for
the environment. As part of our work to better manage our rubbish and recycling we discovered
most of our schools can’t afford to run recycling stations. 

So we propose to offer subsidised recycling for schools and preschools in our city.

Without subsidised recycling, most schools and preschools will not recycle and we as a city
want to support waste minimisation. Annual waste tonnage will reduce if schools participated in
the programme.

Your views
Do you agree with subsidising recycling in schools and preschools, and if so, what do you think
of the following two options:

1. Introduce subsidised recycling for schools and preschools


We would offer annual grants to schools to subsidise the commercial rate.
Cost $50,000
Year 2018/19
Rate impact 0.02% or $0.59 for the average ratepayer from 2018/19 (Year 1).
Debt impact This proposal has no impact on debt.

2. Fully fund recycling in schools and preschools


We would pay for recycling in all schools and preschools, rather than offering a subsidy. This is a
more expensive option but would mean that all schools and preschools could take up this offer.
Cost $100,000
Year 2018/19
Rate impact 0.04% or $1.18 for the average ratepayer from 2018/19 (Year 1).
Debt impact This proposal has no impact on debt.

This proposal will not change our standard recycling service we offer to residents across the city.
Both options will reduce our waste output and increase the city’s annual recycling tonnage.

This service will encourage children and young people to better dispose of rubbish and recycling
at school and at home. If we were to fully fund recycling in schools and preschools this would
remove any barriers to them accessing this improved service.

What option do you support to help encourage schools to better manage rubbish and recycling?

To read the Waste Management and Minimisation Plan 2017-2023 go to our website
poriruacity.govt.nz keywords LTP supporting information.

15
A great village and city experience

We are working to create a city that provides Over the next two years we will be looking at
recreational, social and cultural opportunities how we might adapt to the changes in the
for everyone. climate. Building resilience in our communities
and in our infrastructure is important as we
We do this through services that are efficient
experience increasingly adverse weather
and respond to your interests and activities
conditions and associated consequences.
that bring us together to celebrate our
diversity. We want you to have a say on the This work will be captured in a Climate Change
look and feel of your village, and ensure that Strategy that’s expected to be ready in
it has sound and resilient infrastructure. 2020/21.

Here’s what we’re already doing:


• a village planning programme and Your feedback
relationships with residents associations
For this Long-term Plan we are seeking your
• community infrastructure feedback on projects that support a great
• roading including Transmission Gully village and city experience:
Motorway link roads • Improving connections to Titahi Bay
• cycleways and walkways, parks, • A second fenced dog park in the city.
playgrounds, libraries, pools and events.

16 Consultation Document for the proposed LTP 2018-38


Improving connections to Titahi Bay
There is strong support in the Titahi Bay community for a shared pathway for pedestrians and
cyclists along Titahi Bay Road between Onepoto Road and Wi Neera Drive. This shared pathway
would create a safe pathway along this busy part of the road into the city, and address coastal
erosion that caused us to defer the project due to cost. The completion of the shared pathway
would be an important milestone on our journey to provide different and safer options for
commuting in and out of Porirua City.

Your views

1. Pathway on the harbour side


This would cost $3 million including a $1.5 million subsidy from NZTA. This pathway will have
a cycleway/walkway separated from traffic by a kerb barrier and marker posts. It will also
address coastal erosion in that area. This will make it easy and safe for cyclists, scooters and
walkers coming to and from Titahi Bay along this busy stretch of road.
Cost $3 million
Year 2023/24
Rate impact 0.4% or $14.94 for the average ratepayer in 2023/24 (Year 5).
Debt impact Assuming the $1.5 million subsidy from NZTA, this is fully loan funded with the
cost of interest and principal repayments over a 25 year period included in the rates impact.
This would improve the walking and cycling amenity in the area and protect this part of the
road from the threat of erosion.

2. Pathway on the inland side


This would provide direct access to the pathway for cyclists and walkers of the southern part
of Titahi Bay who use Te Pene Avenue. But they would still need to cross Titahi Bay Road.
Cost $0.7 million
Year 2023/24
Rate impact 0.1% or $3.73 for the average ratepayer in 2023/24 (Year 5).
Debt impact This is fully loan funded with the cost of interest and principal repayments
included in the rates impact. We are not assuming any NZTA subsidy for this option.
This will improve the walking and cycling amenity in the area but would not address the
erosion on the harbour side of the busy road.

3. Keep it how it is
Cyclists would continue to use the road shoulder. Parts of the coast will continue to erode
and we will need to address it at some point in the future when costs are likely to be higher.

17
A second fenced dog park for the city
We know that fenced dog parks can provide great benefits to the community as a whole as
exercised dogs are generally happier and quieter neighbours. We already have a fenced dog park
coming to Ascot Park as part of one of our Village Planning projects. This is due to be completed
by June this year.

Your views
Where do you think the best place for a second fenced dog park is? It must have key features
including size, location, accessibility, good drainage, car parking and safety. We want to get
these things right so the dog park will be well used and easily maintained. Below are proposed
locations for a second fenced dog park if you agree the city needs one:

1. Takapūwāhia Reserve This site is close to our city centre and has lots of parking, with room
to expand. It has good visibility, existing street lights and plenty of trees. It is a good size with
room to expand and has good access to further drainage.

2. Papakōwhai Reserve This site has good off street parking options and is a good size. It is flat
and grassy with interesting bush and walking tracks. The site can get very wet and we would
need to spend money on additional drainage. It is also quite close to residential properties
and there may be noise impacts we will need to consider.

3. Plimmerton Domain This site is a good size, has good parking and has easy access to
Te Ara Harakeke. It is flat and grassy and well frequented. It is prone to flooding, and there’s
an existing sporting code using this space already that we wouldn’t be able to accommodate
elsewhere. We also know this site is close to our forecasted growth areas so we need to take
this into consideration as there may be properties built close to the park in the future.

4. No second fenced dog park This option would rely on dog owners using the new fenced park
that’s being built in Ascot Park.

Let us know if you support a second dog park in the city and where you would like it to be.
Cost is up to $200,000 with $20,000 for maintenance each year
Year 2018/19
Rate impact 0.01% or an increase of $0.29 for the average ratepayer in 2018/19 (Year 1)
Debt impact This proposal has no impact on debt

There will be no change to the standard services we provide like animal control and access to
parks and reserves. A second dog park will mean that we have two available to dog owners, to
reduce risks associated with contact with non-dog owners.

To see more information on the proposed locations go to our website poriruacity.govt.nz


keywords LTP supporting information.

18 Consultation Document for the proposed LTP 2018-38


19
A healthy and protected harbour and catchment

Te Awarua-o-Porirua Harbour is our greatest Our Harbour Strategy is set to be reviewed in


environmental taonga and we’re working hard 2020 and will be the city’s opportunity to have
to protect it. You told us that protecting our a stocktake of what we’ve achieved with our
harbour and catchment is a key priority for our partners, and what still needs to be done to
city. So we’re working with our partners and the protect it into the future.
community to take care of it for generations
to come.
Feedback
Here’s what we’re already doing:
We are not asking for your feedback on any
• improvements to stormwater and specific projects that support a healthy
wastewater networks harbour and protected catchment, however,
• partnerships with Ngāti Toa Rangatira, in the following pages there is more
Greater Wellington Regional Council information on the challenges facing our
(GWRC), Wellington City Council, and water infrastructure and our plans to address
community groups them.

• support for the Whaitua process being run


by GWRC to better manage and protect
our waterways.

20 Consultation Document for the proposed LTP 2018-38


Investing in our water A total of $93.75 million is planned in the first ten
years that will have an average rates impact of
infrastructure
0.5 per cent over the 20 year period:
In 2015, we committed to investing more in our
Public and waterway health
aging infrastructure and particularly on parts of
Wastewater network and treatment plant
the wastewater and stormwater networks that
($46.62 million)
most need it.
Resilience
New issues that have influenced our proposed
Water supply, network and reservoirs
Long-term Plan include:
($18.07 million)
• flood events
Flooding
• Kaikōura earthquake
Stormwater network, especially for the CBD
• a growing city ($12.44 million)
• expectations of safe drinking water. Reliability and resource usage
Asset renewals across waters networks
Wellington Water manages our waters ($8.63 million)
networks along with other cities in the
region. We have agreed regionally consistent Growth
investment priorities which are tailored to each Whitby Reservoir, modelling ($8.63 million)
city’s needs. The table on the next page sets
Safe water and assets
out the strategic direction and priorities we are
Water supply network ($1 million)
focusing on.
Porirua City faces multiple challenges with our
This has meant reprioritising our spending to
waters networks. This investment will bring
target areas where current asset condition and
increasing improvements across wastewater,
performance show the highest priorities.
flooding and resilience – spanning a 20-year
Funding from Development Contributions will timeframe. Progressing improvements to
cater for growth in our population. In this Long- the city’s wastewater network remains a key
term Plan we have allowed for some additional priority because of the multiple benefits to the
funding. community.

Due to the challenges and risks associated with


our aging infrastructure we have decided that it Your views
is crucial that we invest in this area. This includes
bringing forward $18 million to invest over the This investment will have an average rates
next 10 years in stormwater, wastewater, and impact of 0.5% over the 20 year period.
water supply that will continue into years 10-
If you wish to make a comment on this
20 and includes upgrading our wastewater
investment, please leave your feedback at
treatment plant in 2033.
the end of our feedback form.

21
Porirua City Waters Dashboard Some of our hard decisions
Customer Outcome 1 Customer Outcome 2 Customer Outcome 3
We are conscious of the need to keep rates increases
Safe and healthy water Respectful of the environment Resilient networks support our economy down as much as possible. As such, much of the work
Overall we provide service that contributes to safe We continue to have work to do in this area around Overall the three waters service is reliable. There we do is to make Porirua an attractive city for others
and healthy water, although there are potential public measuring our performance. We continue to undertake are parts of the network that do not have sufficient to invest in so we can more easily afford our essential
health issues linked to network capacity and condition investigations to identify and remedy pollution sources capacity during large wet weather events. This can services and infrastructure.
issues that may result in contamination of urban and work is ongoing regarding understanding the lead to flooding and wastewater overflows.
stormwater catchments. education needs of the community. That has meant we have had to make some
difficult decisions to save money that have clearly
We provide safe and healthy drinking water We manage the use of resources in We minimise the impact of flooding on
a sustainable way people’s lives and proactively plan for the disappointed some people. Those decisions are not
impacts of climate change made lightly, but are made with the best interests of
We are expecting to achieve compliance with the New We measure water consumption (including loss) across Further development of hydraulic models will allow Porirua at heart.
Zealand Drinking Water Standards. Improvements to the region, with service levels currently within targets. us to better understand the likely impact of flooding
treatment at Te Marua, in conjunction with improved As part of future consolidation of contracts for on communities. There are known flood risk areas No performing arts centre
monitoring and lake management procedures, will protect wastewater treatment plants, we are developing a including the CBD. Areas prone to flooding will need to
consumers from the impacts of algae growth in the regional approach for the management of biosolids. be prioritised based on a consistent economic analysis Early last year the Council decided we could no
Macaskill storage lakes. framework. Our work on climate change impact longer support giving Aotea College $1 million to
in 2017/18 will inform our approach to stormwater
help them build a new performing arts centre at
investment.
the college.
We operate and manage assets that are safe for our We will enhance the health of our waterways We provide three water networks that are
suppliers, people and customers and the ocean resilient to shocks and stresses Since then, discussion has continued about whether
or not to have a performing arts centre in the city
There are known access safety risks with reservoirs, We currently monitor freshwater sites and beaches The water supply and wastewater strategies for seismic
centre. Our focus for this Long-term Plan is on how
wastewater pump stations and some operational aspects and some of these sites exceed pollution target levels. resilience will enable activities to be prioritised for the
of the wastewater treatment plant. Integrated planning on the wastewater and stormwater 2018/28 plan. All Porirua reservoirs require seismic we can grow the city while spending on core services.
networks are intended to minimise pollution impacts strengthening and it is expected to take 40+ days to We’ve agreed that a performing arts centre is not a
from these networks. restore water supply network to near normal operations. priority at this stage, and will not be included in this
Long-term Plan.
We provide an appropriate region-wide firefighting We influence people’s behaviour so they are We plan to meet future growth
water supply to maintain public safety respectful of the environment and manage demand
Former Marines Hall
Identification and confirmation with the Fire Service of This indicator currently is not measured although The National Policy Statement on Urban Development
critical hydrants that will be part of ongoing hydrant education programmes are in place for some areas such Capacity reinforces the need to understand the There is no financial provision made for the former
performance testing across the region is an ongoing work as community information boards and the Whaitua impact of Council’s growth aspirations on three waters Marines Hall.
programme. Where non-compliant hydrants are found committee. The above indicators are assessed based infrastructure performance. Continued pressure on the
they are prioritised for upgrade works. on experience and knowledge at this stage. A draft land development section to process building consent
education strategy, to raise the communities enquiries, has highlighted the need for planning to Consolidating our property portfolio
awareness of three waters is being finalised. identify and resolve potential capacity issues.
This year we’ll be completing a review of our entire
We minimise public health risks associated with We ensure the impact of water services is for the We provide reliable services to customers property portfolio. We manage approximately 87
wastewater and stormwater good of the natural and built environment buildings or structures across the city and expect
in future that the budget for maintenance and
There are network capacity issues that result in overflows There is significant work underway with consenting Current service interruptions for water supply and
that can result in public health risks, including uncontrolled activities under the Proposed Natural Resources Plan. network blockages for wastewater and stormwater renewals will be higher.
discharges at surcharging manholes. Work is ongoing to The outcomes of the collaborative work with the Whaitua networks continue to be within targeted service levels.
minimise the number of overflows in Porirua. committee may impact future consent conditions. We want to better understand our property, and
make sure it’s what our communities need. Until
Results at the end of June 2017 the review is done, we’ve delayed our maintenance
programme so we don’t spend money on property
Key: On track Intervention required Significant intervention required
that might be sold or used differently.

22 Consultation Document for the proposed LTP 2018-38 23


Key policies and strategies
Every three years when we review our Long-term Plan, we also review some of our major policies
and consult on any changes at the same time.

Remitting and into the future – recognising that some parts of


the city are expected to grow significantly over
postponing rates the next 20 years.

We also need to align our thinking with the


One of these policies is our combined Rates
Long-term Plan, District Plan, and other
Remission and Postponement Policy. The policy
national or regional work like the National
contains seven different types of remission or
Policy Statement 2016, and urban development
postponement of rates available in Porirua
capacity requirements.
ranging from Māori freehold land through to
properties affected by weathertightness claims.

Key changes
Key changes As part of the review we are proposing to
match the Development Contributions Policy
As part of this review we are proposing to
with the 20-year timeframe of the Long-
add rates remission to incentivise residential
term Plan. This will mean that we will collect
development in the city centre.
for significant developments signalled in the
We are also proposing to update the second decade of the Long-term Plan from 1
business and economic development July 2018.
remission to clarify the types of rates that
We have also included new development
can be remitted.
contribution charges for three projects across
To have a look at the proposed policy go to the city including the library aspect of the
our website poriruacity.govt.nz keywords proposed community facility in the East,
LTP supporting information. new cycleways, and the Whitby high level
reservoir that will service development in
Whitby West.

Growth paying To have a look at the proposed policy go to


our website poriruacity.govt.nz keywords
for growth LTP supporting information and let us know
what you think.
Another policy that we need to review every
three years is our Development Contributions
Policy. This is to make sure that we have thought
about how we are collecting our development
contributions for growth infrastructure now and

24 Consultation Document for the proposed LTP 2018-38


Special rate for Fees and charges
Porirua’s Hongoeka We have been working hard to be more
community customer-focused, and in some areas this has
added costs to provide a better service for our
In 2017 the Council agreed to adjust the rural customers. We think that it’s fairer if customers,
differential from 70 per cent to 80 per cent of who benefit directly from our particular
the general rate. The Hongoeka community services, pay more so that these costs are not
made a submission asking that we consider passed onto all ratepayers.
retaining their differential at 70 per cent. This We’re proposing to increase some fees and
is because they reside on private land and charges over the next three years – this will also
therefore don’t receive the same services that help us to keep rate increases down.
our rural and urban ratepayers receive – such
as maintaining their roads in and out of the Here are some of the things that we are looking
community. to increase over the next three years:

Let us know if you support this change and why. • rubbish bags from $2.50 to $3.00
• landfill fees by 2.5 per cent
To have a look at the proposal go to our
website poriruacity.govt.nz keywords • increasing revenue from our parking leases
LTP supporting information. – this is paid off-street parking on Council
land.

We are also looking to increase most of our


regulatory fees by 3 per cent and most other
fees by 1.5 per cent each year for the next three
years.

To take a look at these proposed changes go


to our website poriruacity.govt.nz keywords
LTP supporting information.

25
Financial Strategy
Background and key areas of focus Rates and rate increases
We are committed to balancing the budget and
Our 2018 Financial Strategy continues to support
continuing to fund for depreciation and that’s
the principles we agreed with you in 2015.
why rate increases for the next four years will
We said we would:
be higher than Council and residents would like.
• have a prudent budget keeping debt levels What we have managed to do is reduce the
manageable rate increases that were projected for the next
• prioritise infrastructure investment, and four years in the 2015 Long-term Plan with the
total rates impact for the next four years being
• ensure large costs are spread over generations,
21 per cent instead of 23.7 per cent. This reflects
so everyone who benefits, helps pay.
the drive to be more efficient and provide better
We remain committed to these principles value for money for all.
to provide the foundation for achieving a
balanced budget by the end of 2021 and Consistent approach
moving to a more sustainable financial base. Rate increases are forecast to change annually.
These changes between years can be
The Financial Strategy covers the next 20
significant as the impacts of some assets and
years through to 2038. By doing this we are
expenses vary. To soften this, we have decided
promoting transparency and clarity with what
to provide consistent year-on-year rate
we need from our assets in the long-term.
increases, rather than big highs and lows over
Another advantage is that we can more the next four years.
effectively align with our 30 year Infrastructure
We are looking to have consistent annual
Strategy and asset management plans.
average rate increases for the first four
The November 2016 Kaikōura earthquake years of 5.25 per cent through to the end of
and storm events showed that some of our 2021, excluding any impact from property
core infrastructure is tired and needs extra revaluations. This will give us time to implement
investment to make sure that our communities a number of efficiencies and revenue increases
are best placed in the future – particularly that will give us a solid platform from 2022
in regards to our water infrastructure. onwards.

For this reason we have taken a “resilience” It is worth noting that the rate level of 5.25
approach to this Long-term Plan and how we per cent for years 1-4 of the Long-term Plan
spend our capital. We have reprioritised our is driven by our continual investment in
planned spending and are proposing to invest an infrastructure and the need to balance the
additional $18 million on the wastewater network budget by 2021/22. These contribute to the
in the first ten years of this Long-term Plan. 5.25 per cent as follows:
• General increase 1.03 per cent
We are pleased with where we are at on
our journey to balance the budget, with a • Infrastructure 2.27 per cent
financial position that is basically sound and a
• Balanced budget 1.95 per cent.
strong balance sheet that is supported by our
Standard & Poor’s A+ credit rating.

26 Consultation Document for the proposed LTP 2018-38


Proposed rating impacts for 2018/19

Average 2017/18 2018/19 Average 2018/19 rates makeup


Capital rates rates rates
Value increase
($) ($) ($) (%) ($) ($) ($) ($) ($) ($)
Water Waste- Recycling UAGC City General
water Development

Residential
Lower Quartile 305,000 2,343.60 2,463.76 5.1 391.38 405.19 81.63 419.65 - 1,165.92
Median 470,000 2,941.33 3,094.51 5.2 391.38 405.19 81.63 419.65 - 1,796.67
Upper Quartile 590,000 3,376.04 3,553.23 5.2 391.38 405.19 81.63 419.65 - 2,255.39

Rural
Less than 50 hectares
Lower Quartile 610,000 1,966.51 2,089.25 6.2 - - - 419.65 - 1,669.60
Median 930,000 2,777.97 2,965.11 6.7 - - - 419.65 - 2,545.45
Upper Quartile 1,210,000 3,488.00 3,731.48 7.0 - - - 419.65 - 3,311.83
50 hectares & greater
Lower Quartile 840,000 2,549.75 2,667.39 4.6 - - - 419.65 - 2,247.74
Median 1,870,000 5,161.65 5,423.56 5.1 - - - 419.65 - 5,003.90
Upper Quartile 5,250,000 13,732.74 14,468.05 5.4 - - - 419.65 - 14,048.39
Hongoeka community
Lower Quartile 172,000 855.81 879.90 2.8 - - - 419.65 - 460.25
Median 425,000 1497.38 1,556.90 4.0 - - - 419.65 - 1,137.25
Upper Quartile 540,000 1789.00 1,864.63 4.2 - - - 419.65 - 1,444.98

Commercial
Lower Quartile 270,000 4,606.27 4,834.96 5.0 391.38 405.19 - 419.65 99.19 3,519.55
Median 530,000 7,902.84 8,319.68 5.3 391.38 405.19 - 419.65 194.71 6,908.75
Upper Quartile 1,140,000 15,637.11 16,495.36 5.5 391.38 405.19 - 419.65 418.81 14,860.33
City centre properties* 1,300,000 23,727.69 21,547.78 -9.2 - 2,025.93 - 2,098.26 477.59 16,945.99
Industrial
Lower Quartile 281,250 4,748.91 4,985.74 5.0 391.38 405.19 - 419.65 103.33 3,666.2
Median 510,000 7,649.26 8,051.62 5.3 391.38 405.19 - 419.65 187.36 6,648.04
Upper Quartile 882,500 12,372.23 13,044.15 5.4 391.38 405.19 - 419.65 324.21 11,503.72
Motels**
Lower Quartile 1,140,000 14,828.59 15,596.77 5.2 - 7,698.55 - 419.65 418.81 7,059.75
Median 1,650,000 18,006.34 18,942.44 5.2 - 7,698.55 - 419.65 606.18 10,218.06
Upper Quartile 4,350,000 40,597.42 42,732.62 5.3 - 13,776.36 - 419.65 1,598.10 26,938.51
Shopping plazas**
Lower Quartile 6,400,000 65,489.46 71,678.71 9.5 - 405.19 - 419.65 2,351.23 68,502.64
Median 11,730,000 119,360.18 130,686.71 9.5 - 405.19 - 419.65 4,309.37 125,552.50
Upper Quartile 75,500,000 817,560.70 891,364.41 9.0 - 20,259.35 - 35,250.74 27,737.20 808,117.12

Note:
* Previously there were only 56 properties paying the City Centre Development Rate.
The new City Development Rate is now spread across all commercial properties.
**Properties charged for water by meter.

27
Balancing the budget Capital expenditure over the next 20 years
In 2015 we talked with the community about (including inflation)
how we could get the right mix between Over the first 10 years of the plan we are
affordable rating levels, debt management, proposing to spend $337.9 million on capital,
and balancing our books as required by the 32 per cent of which will be in the wastewater,
Local Government Act 2002. stormwater and water supply areas, and
20 per cent on roading.
We agreed together to plan to balance our
books by 2021/22 and at the same time This significant capital investment will be funded
committed to the Transmission Gully Motorway by debt and from rating for depreciation.
link roads to support growth into the future.
The single biggest project in our 20 year capital
This is why rates have remained higher than
programme is the upgrade of our wastewater
we would like, but will drop when the link roads
treatment plant in the second decade of this
have been completed and we balance our
plan – 2033.
budget – both in 2021/22.

See how we plan to do this below

6000

4000
Balanced budget achieved
2000

0
6

33

8
/3
/2
million

/2
/1

/3
/3

/3
$million

/2
/2

/2

/2

/2

/3
/1

/2
/1

/2

/3
/1

/3
/2

/3

-2000
16

20

30
17

18
15

26

36
27
24

34
25

28
21

31

37
23
22

32

35
19

33
29

-4000

-6000

-8000

-10000

‘Porirua City balanced budget defined as Local Government (Financial Reporting and Prudence) Regulations 2014 definition
modified to exclude costs and gains from asset sales and NZTA’s capital subsidies from the calculation of revenue’.

28 Consultation Document for the proposed LTP 2018-38


Capital expenditure years 1–10

CBD, future projects Other Landfill


& strategic land purchases
1% 2% Roading (Excl TGM)
15%
17%

Admin building
& proposed facility TGM link roads
3%
8%
Total
Stormwater
Village Programme $337.9
2% million 5%
Parks & Reserves
8% WWTP & Wastewater
Libraries
17%
1%
Support
Services Water Supply
Property
8% 10%
3%

Capital expenditure years 11–20

CBD, future projects Other Landfill


& strategic land purchases
1% 3% Roading (Excl TGM)
11%
Village Programme 15%
2%
Parks & Reserves
8%
Libraries
Stormwater
1% Total
$434.9 11%
Support
million
Services
9%
WWTP & Wastewater
Property
29%
3%
Water Supply TGM link roads
7% 0%
Admin building & proposed facility
0%

29
Debt and rating for depreciation The increase in the city’s debt is the result of
We have a lot of projects to complete over the our major infrastructure renewals such as water
next four years, including Transmission Gully supply, stormwater, wastewater reticulation
Motorway link roads in 2021/22. This has meant and roading that includes the Transmission
we have increased our debt to pay for what we Gully Motorway link roads.
can’t cover with depreciation and any capital
We have carefully considered the timing of
subsidies received.
our capital programme and the associated
Depreciation is applied to recognise the use of borrowing requirements to ensure that this
the city’s assets evenly over their economic life. best meets the needs of current and future
Depreciation is charged to today’s ratepayers generations.
and this pays for the renewal of these assets
To read the full Financial Strategy go to our
to make sure that the cost is shared evenly
website poriruacity.govt.nz keywords
and that future generations aren’t unfairly
LTP supporting information.
burdened.

As shown in the following table, the city’s debt


over the first ten years goes from $78.1 million
to a projected maximum of $129.4 million
in Year 5 (2022/23) and back to $105.9 million
in Year 10 (2027/28).

18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28
Year 1 2 3 4 5 6 7 8 9 10
Debt ($million) 93.2 107.9 124.7 124.9 129.4 128.2 120.9 109.4 106.7 105.9
Ratio of debt Limit 103% 116% 125% 121% 118% 115% 103% 93% 89% 87%
to operating 250%
income
External Limit 5% 6% 6% 6% 6% 6% 6% 6% 5% 5%
interest as a 20%
% of operating
income

30 Consultation Document for the proposed LTP 2018-38


31
Infrastructure Strategy
Background and key areas of focus Our assets

This is our second Infrastructure Strategy. It


Water supply
aims to meet three objectives:
Around a quarter of our water supply network is
• provide for future growth while improving in poor condition and nearing the end of its life,
the state of our environment and this is affecting how it performs. Some of
• meet at least the minimum levels of service our reservoirs are big enough to supply drinking
water but don’t hold enough back-up water for
• keep our services resilient yet affordable.
firefighting or emergencies, or won’t be able to
supply enough water in the future, and nearly
Aging assets
all of them are at risk of critical damage in a
Assets eventually reach an age where large earthquake.
they begin to wear out and require more
maintenance than the asset is worth. Our Wastewater
wastewater network in particular is getting
Over half of our wastewater network is in
to the point where there needs to be a
poor condition, which means ground water
steady replacement programme.
is entering the system and overloading it at
times. There is also too much rainwater getting
Capacity
in from places like roof guttering on houses and
Some of our networks were built without ponding around gulley traps – so when it rains,
enough capacity for future growth. This is the amount of wastewater we have to pump
especially an issue for our water, stormwater to our wastewater treatment plant and clean-
and wastewater networks. up more than triples when compared with dry
weather. Some of the heavy rainfall wastewater
Service resilience doesn’t even get to the treatment plant but
The city is exposed to natural hazards, instead spills out of the system, harming the
especially earthquakes, landslides, flooding land and harbour along the way.
and coastal erosion. We need to make sure
that our infrastructure can withstand adverse Stormwater
events, or that we can recover and rebuild The stormwater network is in good condition
quickly if a disaster occurs. overall but we have two major performance
issues. The first is that the system doesn’t have
enough capacity in some places and is failing
to protect property and keep roads clear when
it rains. Secondly the system has not been built
to prevent contaminants (rubbish and silt) from
getting into the harbour.

32 Consultation Document for the proposed LTP 2018-38


Roading Parks and reserves
The majority of our roads were built between We provide parks and reserves for a variety of
the 1950s and the 1970s. Overall, our different users that cover large quantities of
surfaces and footpaths are in an excellent land. One of the key drivers for spend in this
to fair condition. We can expect rising traffic area is the requirement to regularly renew
congestion at some already busy intersections assets like playgrounds and playing surfaces.
in the years to come following the completion Another driver for spend arises when we
of the Transmission Gully Motorway link roads are given land for parks and reserves when
and Kenepuru Landing. We are also still in the new subdivisions are built. We then need to
process of discussing options for the successful maintain these new public spaces for the city.
transfer of SH1 and SH58 back to Porirua City
following the completion of Transmission Gully Major infrastructure projects planned
Motorway. The table on the next page sets out the main
issues and programme responses, their options,
Property costs and timing. The programmes outlined in
We have a more reliable base of information the table are the most significant of the large
on our properties than we’ve previously had. works programmes.
Almost all buildings have been visited by
Most issues are to be met with a range of both
a building surveyor and our 30 year works
large and small projects, and a mix of capital
programme is built on much better knowledge
and operational works programmes. The
of our buildings. The buildings are of such
forecast costs are not adjusted for inflation.
varying age and importance that our condition
assessment covers a range from excellent to
poor. We can’t do all the work we’d like to do as
urgently as we’d like, so our works programming
method targets buildings which are of high
importance and low condition first.

Solid waste
Our regional Waste Management and
Minimisation Plan (WMMP) was adopted in
2017 and is a key document for decisions on
solid waste. Outcomes from the actions in the
WMMP will determine a range of variables
such as recycling rates, future tonnage and
income. Our main issues in this activity are the
upcoming resource consent renewal for the
landfill, and the unknown cost associated with
that, and also the certainty of having to build
new landfill space to keep up with the long-
term demand.

33
Key Issues Scope of Project 2018-27 2028-37 2038-48
$ million
Poor asset condition Pipeline renewals projects 6.0 11.0 11.9
supply
Water

Level of service – New reservoirs 17.9 5.0 -


resilience
Poor asset condition Pipeline renewals over a series of annual 25.6 21.0 3.0
Wastewater

projects.

Insufficient capacity Treatment Plant upgrades to increase 7.6 34.5 –


throughout the plant.
Environmental damage Provisions for water sensitive urban design - - -
(WSUD) will be considered through the District
Stormwater

Plan review process (no direct capital response)


Insufficient capacity CBD Stormwater Upgrade – projects to 2.1 17.8 -
and level of service eliminate flooding in the CBD
failures (CBD flooding) A wetlands in the Titahi Bay Rd area to 5.5 - -
clean, and control runoff into the harbour.
Significant future Intersection upgrades around the city to 7.2 - -
changes in traffic improve traffic flows and relieve congestion
volumes, distribution at peak times. We’re also building new road
and transport modes connections to Transmission Gully Motorway
Uncertainty about Discussion with NZTA to determine how - - -
Roading

ownership and cost Transmission Gully Motorway will be


liability operated, and the effect of revocation on
the city (no direct capital response).
Insufficient capacity Intersection upgrades to improve traffic 4.9 3.5 -
flows and relieve congestion at peak
times. Upgrades including Whitford-Brown,
Papakowhai, Routeburn and Okowai.
Poor asset condition and Continue building surveys to improve our - - -
performance knowledge knowledge (no direct capital response).
Property

Dated building design Eastern Community Hub – new community 15.2 - -


limiting function, facility including indoor recreation, library
accessibility and use and social space.
Project Rejig – to refurbish the Cobham 5.2 - -
Court admin block.
Regionally low recycling The WMMP contains an action to - - -
rates compared to investigate further what the heart of the
national average issue is (no direct capital response).
Solid waste

Landfill consent expiring Re-consent the landfill (no direct capital - - -


2030 response). From 2020 to 2025 we will
consider options to decide what has to be
consented.
Current landfill cells are New cells will be built in the first, second and 3.2 11.5 2.68
filling up third decade.
Parks asset condition Replace assets to improve our overall asset - - -
has deteriorated condition. There are no specific large capital
Parks

projects but a series of small renewals.


Capacity pressure on New artificial sports turf. - 1.8 -
existing facilities

34 Consultation Document for the proposed LTP 2018-38


Capital expenditure

The next table shows our capital expenditure (capex) for the next 30 years in five-year chunks
– or our one-off expenses on major items that we expect to last a long time. Typical capex
expenses are things like new assets such as our new water reservoirs, upgraded treatment
installation, or replacing high cost assets like pipelines, roads or bridges.

Most of our capex is funded from bank loans if it’s renewal funded from depreciation. If it’s growth,
it’s funded by development contribution loans.

Capital expenditure 2019-23 2024-28 2029-33 2034-38 3029-42 2043-48


Year 1-5 6-10 11-15 16-20 21-25 26-30
$ million
Water supply 18,255 10,721 16,268 6,318 9,518 10,318
Wastewater 30,644 21,848 43,195 42,020 17,844 35,606
Stormwater 11,191 3,227 15,356 16,825 7,163 7,163
Roading 38,520 22,777 19,660 23,833 37,006 37,006
Parks 11,993 10,283 10,803 12,577 13,285 11,215
Property 11,901 18,663 4,259 4,211 4,105 4,105
Solid waste 3,937 1,991 10,146 335 13,000 335

Note: these figures are uninflated.

Operating expenditure

The following table shows our operating expenditure (opex) for the next 30 years in five-year
chunks – or how much we will spend on daily business-as-usual activities. Typical opex expenses
are things like staff, materials, energy, maintenance costs and contractors.

Most of our opex is funded from rates. Some is funded from fees and charges, and some from
other agencies like NZTA.

Operational cost 2019-23 2024-28 2029-33 2034-38 2029-42 2043-48


Year 1-5 6-10 11-15 16-20 21-25 26-30
$ million
Water supply 44,313 51,605 56,048 56,048 56,719 56,719
Wastewater 66,282 74,088 86,372 104,498 110,341 110,341
Stormwater 16,506 18,445 22,568 28,878 31,793 31,793
Roading 48,509 57,569 64,228 71,297 68,039 70,519
Parks 60,150 63,860 67,554 74,051 76,622 76,622
Property 29,053 34,283 44,008 43,263 41,267 41,267
Solid waste 47,466 48,298 50,042 50,463 50,578 50,577

Note: these figures are uninflated.

35
Independent Auditor’s Report
Independent auditor’s report on Porirua City Council’s
consultation document for its proposed 2018–38 Long-Term Plan
I am the Auditor-General’s appointed auditor for Porirua City Council (the Council). Section 93C
of the Local Government Act 2002 (the Act) requires an audit report on the Council’s consultation
document. We have done the work for this report using the staff and resources of Ernst & Young.
We completed our report on 15 March 2018.

Opinion

In my opinion:
• the consultation document provides an effective basis for public participation in the
Council’s decisions about the proposed content of its 2018/38 long-term plan, because it:
»» fairly represents the matters proposed for inclusion in the long-term plan, and
»» i dentifies and explains the main issues and choices facing the Council and city,
and the consequences of those choices; and

• the information and assumptions underlying the information in the consultation document
are reasonable.

Basis of opinion

We carried out our work in accordance with the International Standard on Assurance
Engagements (New Zealand) 3000 (Revised): Assurance Engagements Other Than Audits or
Reviews of Historical Financial Information. In meeting the requirements of this standard, we
took into account particular elements of the Auditor-General’s Auditing Standards and the
International Standard on Assurance Engagements 3400: The Examination of Prospective
Financial Information that were consistent with those requirements.

We assessed the evidence the Council has to support the information and disclosures in the
consultation document. To select appropriate procedures, we assessed the risk of material
misstatement and the Council’s systems and processes applying to the preparation of the
consultation document.

We did not evaluate the security and controls over the publication of the consultation document.

36 Consultation Document for the proposed LTP 2018-38


Responsibilities of the council and auditor

The Council is responsible for:


• meeting all legal requirements relating to its procedures, decisions, consultation, disclosures,
and other actions associated with preparing and publishing the consultation document and
long-term plan whether in printed or electronic form;
• having systems and processes in place to provide the supporting information and analysis the
Council needs to be able to prepare a consultation document and long-term plan that meet
the purposes set out in the Act; and
• ensuring that any forecast financial information being presented has been prepared in
accordance with generally accepted accounting practice in New Zealand.

I am responsible for reporting on the consultation document, as required by section 93C of the
Act. I do not express an opinion on the merits of any policy content of the consultation document.

Independence

In carrying out our work, we complied with the Auditor-General’s:


• independence and other ethical requirements, which incorporate the independence and
ethical requirements of Professional and Ethical Standard 1 (Revised); and
• quality control requirements, which incorporate the quality control requirements of Professional
and Ethical Standard 3 (Amended).

Other than our work in carrying out all legally required external audits, we have no relationship
with or interests in the Council or any of its subsidiaries.

Grant Taylor
Ernst & Young
On behalf of the Auditor-General
Wellington, New Zealand

37
38 Consultation Document for the proposed LTP 2018-38
39
Disclaimer: While all care and diligence has been used
in extracting, analysing and compiling this information,
Porirua City Council gives no warranty that the
information provided is without error.

COPYRIGHT ©

You are free to copy, distribute and adapt the work,


as long as you attribute the work to Porirua City Council.

Published March 2018.

Porirua City Council


16 Cobham Court
PO Box 50218
Porirua 5240

This document is available on our website

poriruacity.govt.nz