Have your say 23 MARCH 27 APRIL CONSULTATION DOCUMENT FOR THE PROPOSED LONG TERM PLAN

Transcription

1 Have your say 23 MARCH 27 APRIL CONSULTATION DOCUMENT FOR THE PROPOSED LONG TERM PLAN

2 This consultation document highlights the key projects and issues related to the Long Term Plan Talk to us DEPUTY MAYOR John Gwilliam M: E: Angela McLeod M: E: Welcome to our proposal for the Long Term Plan This consultation document sets out how Council plans to deliver services and investment in Upper Hutt over the next 10 years. Of particular focus at this time is resilience. We want to reiterate our commitment to keeping our buildings safe. This means we need to upgrade and strengthen our Central Library and Civic Centre, making sure that in a major event we can protect life and restore our core services quickly. Because of the investment required, we have an opportunity to consider if our facilities are in the best location, or if by relocating some services there may be wider benefits for our city centre. We also have to balance our ambition for Upper Hutt with our ability to afford the investments we make. As I have said in the past, we re committed to maintaining our current levels of service. We ve identified 13 optional projects that will significantly increase investment in the city, and focus on lifestyle opportunities for a resilient, vibrant and growing city. I encourage you to provide your feedback on whether Council should proceed with all, some, or none of the projects. This proposal is in keeping with our strategic priority areas for investment supporting our vision of Life. Leisure. Live it! We encourage you to carefully look through what we re proposing and tell us what you think. If we go ahead with everything, we ll be looking at an average annual net rates increase of 3.43% over 10 years. Thank you for taking the time to read our proposal, we welcome your feedback. Blair Griffiths M: E: crblairgriffiths@gmail.com Dave Wheeler M: E: wheeler.dave@xtra.co.nz Hellen Swales M: E: hellen.swales@gmail.com Chris Carson QSM M: E: carsonassociatesnz@gmail.com Glenn McArthur M: E: glmca@xtra.co.nz Paul Lambert M: E: spellbound@xtra.co.nz 2 2 Wayne Guppy MAYOR M E wayne.guppy@uhcc.govt.nz /mayor.wayneguppy Ros Connelly M: E: hello@rosconnelly.nz Steve Taylor M: E: steve@rashataylor.co.nz

3 23 MARCH Friday 12 APRIL Thursday 27 APRIL Friday 21/22/24 MAY Monday Thursday 29 MAY Tuesday 27 JUNE Wednesday Consultation opens Talk to the Mayor Consultation closes Hearings Submissions considered Adoption of Long Term Plan AM Expressions Whirinaki (Foyer) 5.00 PM Upper Hutt City Council Varying times Upper Hutt City Council 9.00 AM Upper Hutt City Council 4.30 PM Upper Hutt City Council What s a Long Term Plan? The Long Term Plan is Council s activity plan and budget for the next decade. Every three years we produce a Long Term Plan, setting out the projects, activities, and services that we ll invest in and develop over the ten-year period. Inside... OUR VISION LONG TERM PLAN LOOKING TO THE FUTURE 4 ANNUAL PLAN ANNUAL PLAN LONG TERM PLAN OUR PLAN ON A PAGE 5 ANNUAL PLAN ANNUAL PLAN KEY INITIATIVES 6 Ways to engage ONLINE POST Make a submission online at consultation.upperhuttcity.com Go to consultation.upperhuttcity.com and download a submission form, fill it out, save it, and it to askus@uhcc.govt.nz with Long Term Plan submission as the subject You can also join the discussion about the draft plan on our Facebook page at facebook.com/upperhuttcitycouncil Complete the form in this document and freepost it to us or drop it in to one of our drop boxes: Upper Hutt City Council reception Fergusson Drive, Upper Hutt COME ALONG AND TALK TO US IN PERSON WORKSHOPS Talk to the Mayor Expressions Whirinaki (foyer) Thursday 12 April, am Stall at The Mall Outside The Warehouse Thursday 19 April, am 2.00 pm Activation scooter competition stall Maidstone Max Thursday 26 April, am 2.00 pm If you d like to attend one of our workshops, askus@uhcc.govt.nz Business workshop Expressions Whirinaki (foyer) Tuesday 10 April, pm OPTIONAL PROJECTS 8 INFRASTRUCTURE STRATEGY 16 FINANCIAL INFORMATION 18 PERFORMANCE FRAMEWORK 20 POLICY CONSULTATIONS 21 Pinehaven Library Cnr Jocelyn Cres and Pinehaven Rd Expressions Whirinaki Arts and Entertainment Centre 836 Fergusson Drive, Upper Hutt MAKE AN ORAL SUBMISSION We will be hearing oral submissions on this consultation document in late May. To book a 10-minute oral submission slot call us on (04) Retailers workshop Expressions Whirinaki (foyer) Wednesday 11 April, am Community workshop 1 HAPAI building Wednesday 11 April, am am Community workshop 2 Expressions Whirinaki (foyer) Thursday 12 April, pm SEND US YOUR FEEDBACK BY 27 APRIL SUPPORTING INFORMATION 22 AUDIT OPINION 22 HAVE YOUR SAY 23 3

4 Our vision O Our city is one of a kind. We are surrounded by outstanding natural beauty and a wide range of leisure and recreational opportunities. We re recognised as a great place for families and for people who enjoy the outdoors. We encapsulate this in our vision: Life. Leisure. Live it! In 2015, our vision was established after extensive community consultation. Since then this vision has been supported by five strategic priority areas: Community, Environment, City centre, Economy, and Infrastructure. These areas express our community outcomes and guide what we deliver for our city. Realising our vision In developing this Long Term Plan, we considered a large range of potential opportunities to help realise our vision. As a result we are proposing 13 optional projects that would build on our strengths, and enhance the lifestyle so valued by Upper Hutt residents and families. These opportunities to improve our city would also appeal to visitors and potential new residents, and contribute to thriving communities and businesses. See pages 8 15 for more information on the optional projects. We re asking for your feedback on which projects you support. Looking to the future The plan also sets out our business as usual activities to continue delivering everyday services, facilities, and infrastructure. Our existing infrastructure assets have been well maintained and are generally in good condition. Resilience and growth are two key factors influencing what we plan to deliver to the community and when. See pages 6 7 and to see more detail of how these issues have shaped our business as usual plans. Building our resilience Resilience is the ability to withstand or recover from shocks and adverse events. Council has a responsibility to ensure the readiness of our infrastructure and services and to assist the wider community to respond in the face of a range of potential challenges: be it a natural disaster, extreme weather events, or major economic and social changes. Shocks and stresses don t respect the boundaries between different geographical areas or governing arrangements like councils, so we have to actively work together to build our collective resilience. SO WHAT? Our planning includes future investment in the resilience of our infrastructure, community services, and Council facilities (including seismic strengthening). We ll continue working with other councils and partners in the region to ensure that we can all respond and recover in an emergency or other shock. Our city is growing Recent population growth and development have exceeded previous projections. Over the next ten years, our city and our economy should continue to grow. Well-managed growth can improve community prosperity and wellbeing, support local businesses, and bring new skills and wealth bolstering a vibrant economy. Managing growth is significant for this Long Term Plan. Growth generates more income, and impacts on how we fund large capital projects, our operations, and maintenance of our facilities and infrastructure. SO WHAT? Council needs to manage and mitigate the effects of having more people living in one place. Our Land Use Strategy (adopted in 2016 after community consultation) guides how we respond to growth. This includes impacts on our environment, the amenity of the city, and increased demand on our infrastructure, facilities, and services. Due to accelerated growth, we have brought forward some key infrastructure projects (pages 16 17) and propose to reinstate development contributions (page 21) to help fund this work. 4

5 Our plan on a page REALISING OUR VISION BUILDING OUR RESILIENCE OUR CITY IS GROWING LOOKING TO THE FUTURE Council s nine activities Financial Strategy Optional projects H 2 O Xtream upgrade Community hub Regional cycle trails Walking and cycling network COMMUNITY We re family. Leadership ENVIRONMENT We re a scenic playground. Water supply Maidstone Max upgrade Maidstone sports hub City centre open space Trentham Memorial Park upgrade Stormwater Freedom camping facilities CITY CENTRE We re a centre for opportunity. Planning and regulatory services Land transport Wastewater Sustainability Community and recreation Footbridge to river Major events funding Economic Development Stimulus Policy Residential Stimulus Policy ECONOMY Economic development We re enabling growth and success. Infrastructure Strategy Business as usual Maintenance Renewals Replacements Ongoing service delivery Activity work programmes 3.43% $243 M $110 M Average annual increase to rates (net) Capital expenditure over ten years Public debt at 30 June 2028 CONSULTATION DECISION MAKING INFRASTRUCTURE We re connected. OUR APPROACH WHAT WE PROPOSE TO DO AND SPEND FINALISING THE PLAN OUR OUTCOMES 5

6 Key initiatives Our business as usual plans will keep our city fit for purpose and running smoothly. This section highlights some key initiatives that we will be undertaking. Our business as usual plans result in average annual net rates increases of 2.83% and increases public debt to $84 M. For more details about must-do infrastructure renewals, upgrades, and projects in response to growth and resilience, refer to the Infrastructure Strategy section on pages The full proposed works programmes and other business as usual projects for all of Council s activities can be found in the supporting information on our website. Go to consultation.upperhuttcity.com Further to the items discussed here, we are proposing some optional projects that we are seeking your feedback on (see pages 8 15). For costings, refer to the financial information on pages Seismic upgrades The last seven years have seen significant change to earthquake engineering, and compliance requirements in New Zealand. It has resulted in progressive refinements to requirements for the design of buildings to withstand earthquakes. Based on recent reports and new information, Upper Hutt Central Library and the Civic Centre require earthquake strengthening. We have allocated a preliminary budget of $6 M over the next two years ( ) and investigations are underway to plan this in more detail. The outcome may impact on other projects (such as the community hub and solar panel installation). Civic Centre: This building is not earthquake prone, however seismic strengthening is required to enable the building to be used following a major earthquake. Investigations will consider potential opportunities to address limitations associated with its age, such as not meeting current community needs. Emergency Operations Centre (EOC): Council s EOC is presently located in the Civic Centre. Investigations are underway for a new location for the EOC, including in a facility that could be shared by other emergency services. Central Library: The Central Library building has recently been assessed as earthquake prone (a seismic rating below 33% of the building code) and was closed as a precautionary measure. Services have been temporarily relocated while the full extent of structural work is assessed. The relocation of services provides an opportunity to consider if the library is in the best location, and if the existing building may be more suitable for other purposes (such as a community hub). Any decision would depend on an alternative long term library location being available in the city centre. We ll continue to update the community and consult further on this work as details unfold and plans become clearer. S HIGH PERFORMANCE SPORTS UNIT We are planning to spend $200,000 per annum from reserve funds for five years to support the development of the New Zealand Campus of Innovation and Sport (formerly CIT) into a high performance sports unit. It will deliver extensive benefits to the community growth in local jobs, expenditure, and visitor numbers, and new sports facilities for community use. Council will also underwrite investment in the facility to ensure it is located in Upper Hutt. OPERATING COST $1 M over 5 years TIMING COMMUNITY GRANTS FUNDING Council is combining funding for local and regional groups through the Community Grants Fund. This fund supports local organisations working to strengthen community in Upper Hutt. We re increasing this funding to $130 K in year 1, then from year 2 10 it will be $151 K per annum (plus inflation). This is an increased level of service. OPERATING COST $405 K over 10 years TIMING

7 EXPRESSIONS WHIRINAKI EXTENSION Expressions Whirinaki Arts and Entertainment Centre is our arts and culture entertainment hub. It engages, inspires, and connects people by providing a focal point for art, culture, recreation, and heritage. Due to its growing popularity, it has outgrown its current capacity and also needs additional facilities to ensure it continues to meet the needs of the community. During the LTP process, we consulted on a plan to redevelop and extend Expressions Whirinaki. At the time the preference was to wait for a feasibility study to be completed to set out the best way forward. A feasibility study has since been completed to consider detailed options for this project. The study is available online at consultation.upperhuttcity.com The study s outcomes, and inflation since the original planning, have increased the projected cost to $7.4 M (from the previous budget of $4.3 M). Council has committed to funding 1/3 and the Expressions Whirinaki trust is looking to source 2/3 of the funding externally. CAPITAL COST $7.4 M over 3 years TIMING Sustainability Previously called Solid waste, this activity has been expanded to also include waste minimisation, and sustainability initiatives. RECYCLING DROP-OFF POINT In response to the successful one-year trial completed in January the facility will be retained and funding increased to allow it to be open six days a week from July The current set-up of the facility will be reconsidered to improve how it operates. This represents an increased level of service. CAPITAL COST $50 K TIMING SOLAR PANEL INSTALLATION Council plans to install solar panels on Council buildings to increase energy efficiency, and reduce carbon dioxide emissions and energy costs. This work will be done in conjunction with other upgrades. CAPITAL COST $70 K TIMING LED LIGHTING FOR COUNCIL BUILDINGS Council plans to replace fluorescent lighting in Council buildings with LEDs to improve the environmental performance of our buildings. Costs will be recovered by savings made through reduced energy consumption and maintenance. CAPITAL COST $60 K TIMING

8 Optional projects In this section we re highlighting 13 optional projects that are either new infrastructure or services, or significant upgrades that fall outside our business as usual activities. Our legacy of prudent financial and asset management has set us up in an enviable position. We now have the opportunity to invest in significant improvements to realise our vision. Why these projects? Through a series of Council workshops, and prior community engagement, many opportunities and ideas were considered and evaluated. These 13 projects were prioritised as making the biggest impact in realising our city vision Life. Leisure. Live it! and, in some cases, also responding to growth and/or building resilience. Investing in these projects would go a long way toward us realising our city vision, but we must remain prudent in balancing improvements to our city with affordability. We re providing summary information about the proposed projects and the contribution to our city vision priority areas (represented by the icons). You can also find more information on our website. The majority of the projects present Council s preferred option except for the Trentham Memorial Park upgrade, which has a range of potential options to choose from. Which projects do you support? Based on the costs and anticipated rates impacts, we re seeking your feedback on which projects should proceed. Should we do all of the projects, some of the projects (tell us which ones), or none of the projects? Please give us your feedback on these proposed projects. At the end of this consultation document, there is a freepost submission form. You can also make a submission online. The full proposed works programmes and other business as usual projects for all of Council s activities can be found in the supporting information on our website. Project timing Doing all of these projects would add 0.6% to the average annual net rates increases and increase public debt to $110 M (which includes $84 M for business as usual ). H 2 O Xtream upgrade Community hub Regional cycle trails What will it cost? Walking and cycling network Maidstone Max upgrade Maidstone sports hub City centre open space Trentham Memorial Park upgrade Freedom camping facilities Footbridge to river Major events fund Economic Development Stimulus Policy Residential Stimulus Policy For more information and to give us your feedback online, go to consultation.upperhuttcity.com Each project summary includes project costs. Please note that the annual rates per residential property shows the indicative rates cost per year of the project for an average residential property with a 2017 capital value of $417,000. Including all 13 optional projects will mean an anticipated average 3.43% net increase in rates each year, over the next 10 years. If we don t do any of these projects but only undertake business as usual we re anticipating an average 2.83% net increase in rates each year. The costs of these projects have been included in the ten year budgets and financial forecasts which are summarised on pages Due to the timing of some of the projects, costs may change in the future as we get closer to actually completing the work. We will keep the community up to date on major changes in future years during our Annual Plan processes. 8

9 H 2 O XTREAM UPGRADE This project proposes to upgrade H 2 O Xtream including the addition of new aquatic offerings and water space within the facility. H 2 O Xtream is over 20 years old and maintaining the facility is becoming more expensive. It will require over $2 M in additional maintenance over the next 10 years. With changing community needs, a growing population, and the evolving nature of recreation and sport, it is time to re-evaluate aquatic provision in Upper Hutt. This is considered a high-priority project to meet the needs of the community. COMMUNITY HUB In the Long Term Plan we consulted on a community space to improve the current cluster of community buildings in Logan and Sinclair Streets. This project aims to create additional capacity for a community hub, providing office space for community groups and shared spaces for meetings, programmes and activities. If approved it will increase opportunities for, and improve delivery of, a wide range of community services and activities. STATUS QUO Keeping the facility as is will require over $2 M during the next 10 years for additional maintenance. A feasibility study was recently completed to determine what investment should be made in H 2 O Xtream. The study investigated the current and future needs of the community along with trends in aquatic provision regionally, nationally, and internationally. Planning is now underway to articulate what an upgraded facility would look like. The community will be consulted further during the design and planning phase and new features could include: An additional separate lane pool. A separate toddler pool. A new splash pad. The feasibility study can be viewed at: consultation.upperhuttcity.com The feedback and preference in 2015 was to wait for the results of a feasibility study. A study was completed in 2016 which confirmed the benefits of replacing the cluster of buildings with a central hub. It recommended an extension to the Upper Hutt Central Library. With the study s recommendations being made prior to the library s recent closure, detailed costings and plans for the community hub project would need to consider any consequences from the library seismic works. The first year of the project includes detailed investigations, with implementation of a preferred solution likely to happen in subsequent years. The 2016 Community Hub feasibility study can be viewed at consultation.upperhuttcity.com TOTAL CAPITAL EXPENDITURE TOTAL OPERATING AND DEBT SERVICING TOTAL CAPITAL EXPENDITURE TOTAL OPERATING AND DEBT SERVICING $ M + $8.89 M $47 for 9 years FROM $4.606 M + $2.38 M $11 for 10 years 9

10 REGIONAL CYCLE TRAILS This project proposes that Council participate in the regional cycle trails framework and contributes to the part funding of a resource to provide a coordinated approach to the development and promotion of cycleways, including enabling greater access to government and other funding sources. One of the proposed signature trails in the regional framework is the Rimutaka Cycle Trail, which runs directly through the heart of our city. This regionallyfunded initiative (by those councils directly benefiting, not including Kapiti or Porirua) would enable further track development, building of infrastructure (toilets/shelters), and the development and implementation of a consistent high quality experience for users of regional cycleways including the Rimutaka Cycle Trail. Upper Hutt stands to gain significant benefits from increased numbers of local, regional and national visitors using the Rimutaka trail and we could not afford or achieve this on our own; we would benefit substantially from the investment of others participating in this initiative. WALKING AND CYCLING NETWORK We plan to continue developing our walking and cycling network. This would improve the liveability of our city and provide easy, safe access to our highly valued open space network. It supports the strong recreational focus of our city vision and is aligned to the goals and objectives of the Open Space Strategy. Council had already allocated $708,000 in the Long Term Plan over a ten-year period for the development of a city wide recreational walkway/cycleway network. A report by the Frame Group, considered in June 2017, recommended that this project be fast tracked with special emphasis on the development of the Cruickshank Rail Tunnel track. The report recommended that the revised total cost for all five stages ($5.6 M) be implemented over a five-year period. The Cruickshank Rail Tunnel would commence in , having been identified as the highest recreational potential for its historic interest and as a link between the city centre and the Mangaroa Valley. The Rimutaka Cycle Trail attracts approximately 100,000 users per year with many more using the Hutt River Trail. The provision of additional local trails would compliment and link to these signature trails to add significant value to the overall recreation network. TOTAL CAPITAL EXPENDITURE TOTAL OPERATING AND DEBT SERVICING TOTAL CAPITAL EXPENDITURE TOTAL OPERATING AND DEBT SERVICING $660 K + $404 K $2 for 10 years $5.658 M + $3.854 M $18 for 10 years 10

11 MAIDSTONE MAX UPGRADE The Maidstone Max play area was constructed in 2001 and has been a huge drawcard for the city. Council has continued to add new features to the area over time however the facility is becoming tired, requiring an increased level of maintenance. It has reached the stage where a complete redevelopment is required to ensure the play area, once again, becomes a regional destination. This also provides an opportunity to improve its accessibility for those with special needs. This is considered a high priority project to meet the needs of the community. MAIDSTONE SPORTS HUB Since 2011, Maidstone Park has undergone a huge transformation bringing together sporting codes, installing artificial turfs, tennis courts, floodlighting, a practice area, storage, car parking, and an upgrade to the pavilion. As part of the Long Term Plan , $3.834 million was included to complete the final stage of the sports field development. This budget was not used and is now replaced by the new budget, based on the costs below. The proposal is to undertake a complete redevelopment of the entire play area including the skate park. The community will be consulted further during the design and planning phase and new features could include: Replacing the play equipment with modern, exciting, and interactive equipment to suit all ages and abilities, including a dedicated toddlers and infants play area. Lighting to enable the playground areas to be used in the evening. Feature lighting on the towers to add points of interest at night. A new skate park design to suit current demand from users. A cluster of youth play spaces. This project proposes to complete the development of the sports fields and buildings at the park in two stages. STAGE 1: UPGRADE SPORTS FIELDS ( ) Convert the two current rugby fields to sand-based fields and with new capacity added for athletics use. Additional work and funding is required to improve the stormwater drains, reshape the bank, construct an irrigation bore, and the removal of the block wall from Maidstone Max play area to visually open the park up and maximise space. STAGE 2: REDEVELOP CLUBROOMS ( ) Once the field upgrade is complete, Council will redevelop the current rugby clubrooms into a new combined facility. This will include clubrooms and supporting features such as offices and changing rooms for multiple codes. Council will seek one third of the funding from external sources. TOTAL CAPITAL EXPENDITURE TOTAL OPERATING AND DEBT SERVICING TOTAL CAPITAL EXPENDITURE TOTAL OPERATING AND DEBT SERVICING $3.804 M + $2.777M $15 for 9 years FROM $8.843 M + $3.486 M $17 for 10 years 11

12 TRENTHAM MEMORIAL PARK UPGRADE CITY CENTRE OPEN SPACE This project is an investigation to determine an appropriate location and design for a new open space within Upper Hutt s city centre. Open spaces create opportunities for people to make the most of the local environment, providing pleasant areas where people can relax and enjoy their surroundings while in the urban area. This project supports the goals of the Open Space Strategy, which identified a new city centre open space as a key objective. The combination of its bush remnants and open space makes Trentham Memorial Park a unique haven for both nature lovers and active recreation, with cricket, soccer and rugby played during the year. It provides important linkages to the Hutt River and Rimutaka Cycle Trail which, in turn, link to various other reserve areas. The park is also a great setting for recreational and leisure activities and events that are enjoyed by local residents as well as visitors from the wider Wellington region. Over the next three years the park would be upgraded. This would provide additional facilities to enhance its value as one of our three local destination open spaces complementing Harcourt and Maidstone Parks. The projected cost covers a range of potential new features and we are seeking your feedback on which of these features should be included in the upgrade. A new open space will increase vibrancy and amenity to encourage residents and visitors to spend more time in the Upper Hutt city centre. The landscaping associated with the project will beautify and enhance the city centre, with opportunities for links with the city s natural features. It will provide a central gathering area for the community and for attractions and activities in the city centre. The first stage would involve the development of a range of options that meet the objectives of the project. These options would then be refined and developed further. At the conclusion of the first stage the options would be presented for consideration and consultation and for further refinement as necessary before a final selection is made. It is expected that this process would take approximate 2 3 years starting in year 1 ( ). FEATURE 1 [$200 K] Replace the playground bark with matting to improve accessibility for users with disabilities. FEATURE 2 [~$145 K] Construct a new interactive water-play feature. FEATURE 3 [~$115 K] Construct a learn-to-ride cycle track (similar to the Harcourt Park one) OR construct a pump cycle track for competent cyclists rather than learners. TOTAL CAPITAL EXPENDITURE TOTAL OPERATING AND DEBT SERVICING TOTAL CAPITAL EXPENDITURE TOTAL OPERATING AND DEBT SERVICING $368 K + $276 K $1 for 10 years $460 K + $376 K $2 for 10 years 12

13 FREEDOM CAMPING FACILITIES This project proposes to provide freedom camping facilities in one or more locations in Upper Hutt. Freedom camping is increasing in popularity both for New Zealanders and overseas visitors. The provision and promotion of freedom camping areas and facilities in Upper Hutt could encourage more visitors to the city and provide a unique experience. This is a real opportunity in the tourist market due to the limited freedom camping facilities in the Wellington region compared to some other parts of New Zealand. Sites close to the city centre could provide a positive economic flow-on effect to local businesses with more people staying and spending money in Upper Hutt. The level of service that may be provided would be considered in more detail. Areas identified for freedom camping may not necessarily require extensive facilities, provided the users have fully self-contained vehicles. Restrictions on the length of stay would need to be determined and monitored. Moonshine Park, Poets Park, and Silverstream Amenity Reserve (next to the river by Silverstream Bridge) have been identified as being suitable for camping as they all contain existing vehicle access points, public toilets with access to drinking water, and at Silverstream Amenity Reserve a dump point is also available. These sites are also well away from residential properties and have direct access to the Hutt River and the Rimutaka Cycle Trail as well as being reasonably close to the city centre. Mangaroa Valley Reserve, Riverbank Park, and the green space opposite Expressions Whirinaki may also be considered. FOOTBRIDGE TO RIVER The proposal is to construct a pedestrian overbridge spanning State Highway 2 in close proximity to the city centre. A significant section of the Hutt River between Moonshine and Maoribank is currently isolated from the city by State Highway 2. The only safe crossing point along this stretch through the heart of the city is at the northern end using the traffic signals at Totara Park. Stronger links to the river from the city support the recreational focus of our city vision and is aligned with Council s Open Space Strategy. This project would significantly improve access to the Hutt River cycling and pedestrian network and associated recreation and leisure opportunities. It would provide additional safe crossing points across State Highway 2 for residents and visitors. Due to the timing of several large infrastructure projects in the early part of this LTP, initial scoping and investigation work for this project would commence in 2025, with the actual construction outside the term of this Long Term Plan (after 2028). TOTAL CAPITAL EXPENDITURE TOTAL OPERATING AND DEBT SERVICING TOTAL CAPITAL EXPENDITURE TOTAL OPERATING AND DEBT SERVICING $328 K + $376 K $2 for 10 years $676 K + $48 K $1 for 3 years FROM

14 MAJOR EVENTS FUND This project proposes to allocate new funding for Council to secure a major event of such a scale to provide widereaching benefits to our city and its residents. Major events must attract at least 10,000 people and it must be a regionally significant event. Events provide many benefits to the area they take place in, including economic benefits, creating a sense of community and sense of place, social connectedness, and vibrancy for the city. We need to ensure that we continue to attract and retain residents to our city who will contribute to thriving communities and businesses, and that we continue to attract a wide range of visitors. Council relies on the continuation of events in our city as an important part of achieving our vision of Life. Leisure. Live it! In addition to this proposed project, Council will continue to support local community-led events and groups with smaller grants each year through the Events Fund and Community Grants. Council also currently contributes $106 K annually to the Wellington Regional Amenities Fund, which grants funds to events and organisations that support the arts, culture and environment, and provide significant benefit to the Wellington region. To fund this project there would be an increase of $100 K (plus inflation) to the total sum Council invests in events each year. ECONOMIC DEVELOPMENT STIMULUS POLICY This initiative, first introduced in , has now been running successfully for four years. The policy has contributed to increased vitality within our city centre and provided investors with the confidence that Upper Hutt is a great place to establish a business. From its inception, the incentives that Council has granted enabled investment of over $10 million in Upper Hutt with $6 million of this invested in the city centre, resulting in a significant rejuvenation. During this period, the policy also contributed to the attraction, retention, or expansion of businesses in the Upper Hutt community, and securing over 350 jobs in our city. To keep momentum going, we re proposing to continue with this policy for the next three years and to double the level of funding to $500,000 per year. We are also proposing minor changes to extend the policy to enable activities that contribute to local employment as emerging opportunities and provide greater support for existing local businesses. The stimulus package waives key development charges, such as resource and building consent fees; provides grants for business relocations, refits and earthquake strengthening work; and enables the reduction and remission of rates. It aims to encourage development to: Increase investment in our economy Support established businesses to grow Provide employment Increase GDP growth Upgrade buildings and improve the presentation and structural safety of premises in Upper Hutt including encouraging the strengthening of earthquake-prone buildings. View the draft policy at: consultation.upperhuttcity.com TOTAL CAPITAL EXPENDITURE TOTAL OPERATING COST TOTAL LOAN FUNDING TOTAL OPERATING AND DEBT SERVICING $0 + $1.115 M $5 for 10 years $1.5 M + $1.678 M $10 for 8 years FROM

15 What do you think? RESIDENTIAL STIMULUS POLICY This initiative would encourage higher-density residential development in and around the city centre, neighbourhood centres, and major transport nodes. These areas are considered appropriate for higher-density development. They are already identified in the District Plan with comprehensive residential development (CRD) overlays. The stimulus package waives key development charges, such as resource/building consent fees and reserve fund contributions. Higher-density residential development is becoming more desirable to certain sectors of the community and demand is increasing in the city. Higher-density residential development will also create different housing types and styles, thereby providing a greater variety to the housing stock of the city. This is your opportunity to tell us which projects you support, and/or any other comments or views you may have on what we re proposing. Please give us your feedback by using the freepost form at the end of this consultation document, or by making a submission online. For more information on the proposed projects and to make a submission online, go to consultation.upperhuttcity.com The policy would focus on and incentivise higherdensity residential development. As such it will not apply to commercial developments, short-term visitor accommodation or retirement villages. In addition to the financial incentives, Council will also provide enhanced support for applicants to understand and apply the relevant parts of the District Plan. To implement this new policy, we are proposing to allocate funding of $500,000 per year for three years. View the draft policy at: consultation.upperhuttcity.com It s OK, but... Sounds great! Yeah, nah. TOTAL LOAN FUNDING TOTAL OPERATING AND DEBT SERVICING $1.5 M + $1.678 M $10 for 8 years FROM

16 Infrastructure Strategy We produced our first 30-year Infrastructure Strategy in We re required to review it for this Long Term Plan. For the full strategy go to consultation.upperhuttcity.com KEY ISSUES DRIVING OUR INFRASTRUCTURE PLANNING Renewal of existing assets. Changing demand, including demographic change and population increase. Allow for planned changes to levels of service. Public health and environmental outcomes. Resilience of infrastructure assets. Infrastructure spending Infrastructure spending can be broken down into the following four categories. OPERATING EXPENDITURE Operating Expenditure (OPEX) covers our costs to maintain infrastructure. See page 19 for details. ASSET RENEWAL Asset renewal includes all investment necessary to renew the condition and life of an asset and maintain the integrity of the existing network. We are planning some significant infrastructure investment (to 2048) providing new assets and upgrades, and building resilience. This will deliver an efficient infrastructure network that supports community wellbeing, growth, and economic development. Upper Hutt s core infrastructure has been well-managed and is generally in very good condition. Council has confidence in its three-waters asset information Wellington Water (who manages these networks on our behalf) confirms our information is the most up-to-date out of its four client councils (Upper Hutt, Hutt City, Wellington, and Porirua). Council s proactive programme of condition rating assets means they deliver high levels of service and comply with current standards. We ll ensure this continues and that our infrastructure remains fit for purpose now and in the future. We re not anticipating significant unplanned investment over the next 30 years. BUILDING INFRASTRUCTURE RESILIENCE Resilience will be addressed concurrently within the asset renewals programme. Often a marginal cost increase can bring about significant resilience benefits. In other words, resilience is incorporated in all projects: networks are renewed with more resilient materials; and renewals are prioritised with resilience being a key driver alongside asset condition. Specific resilience projects include seismic upgrades of Council buildings, pipes, and reservoirs; and the installation of automatic shut-off valves to retain water in reservoirs after an earthquake. Not all resilience gain is through capital investment, and improvements can also result from upgrading processes, systems, and planning. RESPONDING TO GROWTH The Infrastructure Strategy was prepared in conjunction with our asset management plans, and aligns with the Land Use Strategy (the key planning document for future growth). We ll continue to require developers to construct and vest infrastructure that services new developments to Council. This reduces our requirement to finance capital projects over the life of the strategy. We ll ensure the quality of this infrastructure is maintained through our code of practice, and consent conditions. TIMING OF INFRASTRUCTURE SPENDING Infrastructure assets require substantial capital expenditure for replacement or significant maintenance. Long asset lifespans create significant peaks in expenditure (such as during this Long Term Plan) followed by long periods of relatively low expenditure in the outer years of the strategy. The strategy considers the best way forward to ensure efficient and effective management of these assets. The Infrastructure Strategy, our asset management plans, and the Land Use Strategy are regularly reviewed to respond to changing circumstances including asset condition, increasing standards, growth rates and the realisation of new development across the city. The graph below shows planned CAPEX spending on initiatives in accordance with the focus areas opposite.* LEVEL OF SERVICE CHANGE Level of service change includes upgrading assets to meet existing service standards or increasing service standards (driven by customer expectations and/or changes in technical standards or legislative requirements). $40 M $20 M $20 M GROWTH Growth (new) includes all capital investment resulting from changes in demand for the services delivered by the assets. $10 M * This data for is taken from the Funding Impact Statement in the financial statements. Subsequent 5-year averages are taken from the Infrastructure Strategy. Refer to the supporting information for more detail AVERAGE AVERAGE AVERAGE AVERAGE 16

17 Activity focus areas in the strategy WATER SUPPLY Work with Greater Wellington Regional Council (GWRC) to ensure ongoing security of supply against water shortages. Improving resilience in the event of a natural disaster. Demand management. Improved network modelling. Aligning services with growth demands. STORMWATER Investigate improvement to parts of the stormwater network not meeting expected levels of service. GWRC s Natural Resources Plan will require us to hold consents for its stormwater discharges. This may require upgrades to the network to meet environmental standards. Catchment studies for flood mitigation including improved understanding of the capacity for onsite disposal systems. Flood mitigation measures. WASTEWATER Reduce the volume of stormwater inflow into identified parts of the wastewater network. Seaview Treatment Plant overflow improvements. Replacing mains in poor condition or facing seismic risk. Improved network modelling. Aligning services with growth demands. Pinehaven Flood Management Project. Stormwater quality monitoring. Key business as usual infrastructure initiatives This table shows key projects, their timing within the Long Term Plan, and full costs (excluding subsidies or other external funding sources). LAND TRANSPORT Land Transport t Ensure the road network is resilient, efficient, effective, and safe and assists in the delivery of Council s strategic goals. The vulnerability of the rural roading network to natural hazard events. Substandard rural carriageway widths impact on safety of motorists, cyclists, and pedestrians on rural roads. Delivering agreed levels of service as the city grows. Provision of cycling and walking facilities. Advocate for capacity and safety upgrades of SH2 and SH58. COUNCIL PROPERTY Maintain community facilities so they are fit for purpose. Ongoing rationalisation of land and building holdings. Investigate options and provide a new community hub. Extension of Expressions Whirinaki. Investigate options and upgrade of H 2 O Xtream. Complete seismic assessments of Council-owned buildings and any required remedial works. Resealing ($12.2 M) Fergusson/Ward/Whakatiki intersection upgrade ($4.41 M) Fergusson/Gibbons/Main intersection upgrade ($6.1 M) Rural roads high priority safety projects ($9.6 M) Silverstream Bridge replacement ($25.2 M) Revitalisation of city centre ($4.15 M) Eastern Hutt/Fergusson Drive/County Lane ($2.11 M) Water supply Pipeline renewals ($10.82 M) Cruickshank Reservoir development ($3.52 M) Wastewater Pipeline renewals ($17.6 M) Wastewater project capital ($25.48 M) Stormwater PARKS AND RESERVES Cater for anticipated future growth in burial requirements. Extension of the cycling and walking facilities. Disposal of surplus land holdings. Redevelop Maidstone Max and develop Maidstone Sports Hub including fields/turfs and shared sports facilities. Alignment of work with the Open Space Strategy. Pipeline renewals ($10.7 M) Pinehaven Stream capacity upgrade ($18.22 M) Community and recreation (covers parks and reserves and Council property) Seismic upgrades ($6 M) Expressions Whirinaki extension ($7.4 M) Cemetery development ($3.38 M) 17

18 Financial information Council s financial strategy explains how we will manage our finances over the next ten years. Financial Strategy Council will continue to provide core services and ensure infrastructure is well-maintained. Maintaining current levels of service accounts for most of our operating spend over the next 10 years. Growth requires investment in services and infrastructure to ensure that our city is fit for purpose. We plan to continue funding our existing services, maintaining and renewing infrastructure and making new investments to enhance the city, such as the 13 optional projects discussed in this document, while keeping rate increases at a reasonable level. KEY POINTS FROM THE FINANCIAL STRATEGY This plan provides for infrastructure asset maintenance and renewal guided by the Infrastructure Strategy and well-established asset management plans. We will fund asset renewal and replacement based on condition instead of depreciation. All years of the plan will see a cash surplus after removing depreciation and income for capital purposes. The proposed debt required to fund our investments will be kept within set parameters and we ll maintain a lean cost structure. Council s financial strategy aims to ensure intergenerational equity is maintained in the funding of infrastructure assets. This will be achieved by having renewals or replacement of assets predominantly funded from rates and new assets or improvements to assets funded by borrowing. Subsidies will also be used wherever available to keep costs down. The Local Government Cost Index (LGCI) shows the forecast inflation (operating and capital expenditure combined) and is usually higher than the Consumer Price Index. On average, over the ten years, we intend to keep rates increases within the LGCI + 2% (with assumed growth of up to 2% annually). Due to the planned seismic work as part of business as usual, the rates increase in (Y1) will be slightly above this limit. If we do all 13 optional projects, rates increases in (Y2 Y4) will also exceed this limit. No changes are proposed to the current rating system. The full financial strategy can be viewed at consultation.upperhuttcity.com Rates On average, Upper Hutt residents pay some of the lowest rates in the Wellington region. We re careful with how we spend your money. However, we need to continue to invest over the next ten years on the essential upgrades to infrastructure and facilities that will keep our city working and thriving. We also need to future proof our city to cope with a growing population and changing demographics INDICATIVE RATES FOR AVERAGE PROPERTIES FOR MORE EXAMPLES, PLEASE GO TO CONSULTATION.UPPERHUTTCITY.COM General rates* (includes the regional amenity fund rate) Targeted rates* (water supply, wastewater, stormwater) RESIDENTIAL CV $417,000 RURAL CV $717,000 BUSINESS CV $1,019,000 $1,187 $1,489 $8,409 $1,032 NOT APPLICABLE $2,568 Total UHCC rates (including GST)* $2,219 $1,489 $10,977 Change per week (FROM )* $2.17 $2.55 $15.55 This has driven our business as usual planning which will mean an anticipated average 2.83% net increase in rates each year. Including all 13 optional projects discussed in this document will mean an anticipated average 3.43% net increase in rates each year. AVERAGE NET RATES INCREASE* Y Y Y Y Y Y Y Y Y Y % 5.32% 4.60% 5.31% 4.29% 4.19% 1.81% 1.82% 0.97% 1.24% BORROWINGS 14% * These figures are inclusive of the optional projects. Anticipated average rates increases for years 2 and 3 are confirmed through the Annual Plan process. For year 4 onwards, the next Long Term Plan (for ) will reconsider the planned works and resulting costs to ratepayers. Rates are not our only source of funding but do make up the majority at 61%. Council always considers alternative options to minimise the rates impact where possible this includes user fees and charges, external funding, and debt (discussed on page 20). GENERAL RATES 37% REVENUE AND FUNDING SOURCES (OVER 10 YEARS) DEVELOPMENT AND FINANCIAL CONTRIBUTIONS 1% SUNDRY REVENUE 1% RESERVE FUNDS 2% SUBSIDIES 7% FEES AND CHARGES 14% TARGETED RATES 24% 18

19 10-year budget at a glance This page outlines the average costs of Council s nine main activities for , how these activities are funded and the percentage of rates spending that each activity represents. ACTIVITY CAPEX OPEX FUNDING SOURCES PORTION OF RATES SPEND Leadership $0 $31.4 M Rates Debt Other 1 97% 0% 3% 6% Land transport $79.2 M $87.6 M Rates Debt Other 1 45% 15% 40% 16% Water supply $19.1 M $83.4 M Rates Debt Other 1 76% 6% 18% 15% Wastewater $43.5 M $77.9 M Rates Debt Other 1 73% 21% 6% 17% Stormwater $29.2 M $31.6 M Rates Debt Other 1 63% 15% 22% 7% Sustainability $50 K 2 $5.3 M Rates Debt Other 1 0% 0% 100% 0% Planning and regulatory services $0 $59.2 M Rates Debt Other 1 49% 0% 51% 6% Community and recreation $70.9 M $179.7 M Rates Debt Other 1 58% 20% 22% 28% Economic development $398 K $26.7 M Rates Debt Other 1 85% 13% 2% 5% 1. Includes fees and charges, subsidies and grants, development and financial contributions, and funding from other agencies (NZTA, GWRC, etc). 2. Excludes sustainability initiatives funded under other activities such as Community and recreation (Council property). 19

20 Borrowings What do you think about our proposed debt levels? Tell us on the submission form or online at consultation.upperhuttcity.com P Using debt is a prudent mechanism to share the burden of funding long-term investments. This way, future users who benefit from PUBLIC DEBT BAU + all 13 projects these investments also pay for them, and our current ratepayers don t carry the full cost. $120 M 107 M 113 M 112 M 114 M 112 M 109 M 110 M Debt is primarily driven by capital expenditure. Our capital programme is timed to balance demand for new infrastructure against the need to maintain prudent debt levels throughout the $100 M $80 M 71m 87 M 10 years. Our major investments will fund renewals, new infrastructure, increased capacity in response to growth, and build $60 M 54 M resilience. Our infrastructure assets are generally in good condition and, combined with our comparatively low debt to date, we have $40 M the opportunity to make major investments to realise our vision and improve our city. $20 M Council uses debt to fund projects that are not practical to ratefund up front. A 1% rates increase is equivalent to $411 K of capital expenditure, whereas the same 1% rates increase allows $4.2 M of debt-funded capital expenditure. To fund all of our planned work, including the 13 optional projects, Upper Hutt s public debt will increase from $40 M to $110 M by 30 June For business as usual (BAU) only, the debt will increase to $84 M by 30 June % NET INTEREST AS PROPORTION OF TOTAL REVENUE DEBT AFFORDABILITY This increase remains within Council s parameters for debt affordability, as set out in the Financial Strategy: net external debt will not exceed 175% of total revenue (changing from 140%) net interest will not exceed 10% of total revenue 10% 8% 6% 4% 4.0% 4.7% 5.8% 7.5% 8.0% 7.7% 7.5% 7.8% 7.5% 7.2% net interest will not exceed 15% of annual rates income 2% liquidity will exceed 110% external public debt per capita will not exceed $3,000 adjusted by the Local Governement Cost Index (LGCI) Performance framework Our performance measures enable us to monitor and report against our outcomes and service performance. In previous Long Term Plans and Annual Plans, performance measures were grouped under each Council activity area which enabled us to provide activity specific information and performance. For this Long Term Plan, we have updated our performance measures to align with our strategic priority areas. This acknowledges that different activities contribute to achieving our community outcomes. It also aims to make the performance framework more meaningful and relevant. We have reworded our existing level-of-service objectives, aligned these under the city vision strategic priority areas, and refocused the measures we report against. Targets and trends are set so that Council can measure and continually improve services provided to the community. We will report our performance annually in our Annual Reports. This framework will enable us to better identify progress towards achieving our community outcomes. The revised performance framework can be viewed at consultation.upperhuttcity.com 20

21 Policy consultations We are seeking your feedback on proposed changes to the following three policies. To view the full draft policies, go to consultation.upperhuttcity.com Development Contributions Significance and Engagement Development contributions are a charge imposed on a developer by a council to recover some of the capital costs incurred when providing infrastructure such as for land transport, three waters services, and community facilities. Development contributions are directly related to growth which, until recently, was relatively static in Upper Hutt. The levy has not been imposed since the policy lapsed in We are now seeing a significant increase in growth in Upper Hutt. As a result the Development Contributions Policy has been reviewed and will reinstate the levy for some activities relating to new development in the rural area of the city. If Council does not collect development contributions, the costs associated with new growth-related infrastructure is borne by the community as a whole (through rates) instead of those who directly benefit from new developments. The draft policy proposes the following contributions (excluding GST). These are based on catchments and planned infrastructure works set out in detail in the draft policy. This policy sets out how Council engages with our community based on the significance or importance of an issue, proposal, or matter. Once the Council determines how significant an issue is, it can tailor engagement techniques to ensure communities are involved in the decision-making process. It is important that the Council has this policy because if a decision is considered significant, Council is required by legislation to engage with the community. The policy explains when the community can expect to be consulted with, and what level of engagement this might be. The draft policy has been updated to make it more user friendly and readable; to simplify and streamline some aspects to improve its application; and to incorporate best practice for public engagement. Revenue and Financing Water and wastewater catchment Mangaroa $17,747 per lot/household unit Roading catchment Akatarawa Road Kaitoke Mangaroa Moonshine Hill Road $9,690 per lot $10,076 per lot $5,830 per lot $9,690 per lot ANIMAL CONTROL This activity includes management of animal ownership and compliance: dog registration; enforcement; control of stray animals; managing impounded, dangerous, and menacing animals (via the Seaview Pound); responding to complaints; and public education. Katherine Mansfield Drive extension (including $9,142 per lot Mangaroa contribution) Swamp Road West (including Mangaroa and $36,512 per lot Katherine Mansfield Drive extension contributions) Swamp Road East (including Mangaroa and $9,142 per lot Katherine Mansfield Drive extension contributions) Alexander Road $276 per 100 m 2 of floor area Council intends to extend the policy to other areas beyond the rural part of the city and to all infrastructure activities related to growth. This will be completed as part of a future Annual Plan process and the community will be consulted again at that time. Please note development contributions are charged separately and additionally to financial contributions under the Resource Management Act 1991 (RMA). Council will continue to change financial contributions until these are removed in The main beneficiaries of the Animal Control activity are the owners of animals, mainly dogs, while the wider community benefit from the service making the city safer from dangerous animals and reducing public nuisance caused by animals. Instead of retaining the current funding model (100% user pays), we propose that this activity be funded by up to 25% from general rates and 75% from user fees and charges. The rates funding element acknowledges that there is a wider public benefit beyond only the owners of animals who pay the user fees and charges. It is also in line with the approach of other councils in the region and New Zealand. OTHER CHANGES A number of activity funding ranges have changed (Land Transport, Parks and Reserves, H 2 O Xtream, and City Libraries). These reflect the proposals in the Long Term Plan, lower income levels, and loan repayments for capital expenditure. A minor wording change is also proposed for the Property activity, to maintain consistency. 21