pre-election report 2019 · ironman 70.3 world championship taupō will play host to the ironman...

Pre-Election Report

2019

2 Taupō District Council | PRE-ELECTION REPORT 2019

1Taupō District Council | PRE-ELECTION REPORT 2019

Contents

District Snapshot ......................................................................................2

Welcome ..................................................................................................3

Council Vision ...........................................................................................4

What We Do ............................................................................................5

Financial Strategy.....................................................................................6

Major Projects .........................................................................................7

Current Issues ..........................................................................................8

About our Finances .................................................................................9

ProspectiveAverageRatesIncrease ................................................9

Pre-ElectionReport-StatementofFinancialPosition .................10

Pre-ElectionReport-FundingImpactStatement.........................11

Financial Limits - set in the Financial Strategy ...............................12


Ageing population

People per household

Population change

At least

people will be aged 65+ by 2051

1 in 4

Average household size is projected to drop to

2013

20282038

Population peaks at

39,100 in 2038

2.2 by 2038

2013

20382043

34,80039,100 39,000

2.22.32.4

District SnapshotPopulation and Demographics


Welcome to Taupō District Council’s pre-election report for 2019ThisreporthasbeencompiledtomeettherequirementsoftheLocalGovernmentAct2002andaimstoinformboth thecommunityandprospectiveelectioncandidatesaboutsomekeyaspectsofthecouncil’sbusiness.

Thisreportincludesinformationpreviouslypublishedinour2018-2028Long-termPlan,AnnualReports,AnnualPlans andsomenewinformation.Moredetailcanbefoundinthesedocumentsandcanalsobefoundonourwebsite www.taupo.govt.nz.

ThisreportalsooutlinesourmajorprojectsandexpectedexpenditureprogrammeforthisfinancialyearandthethreeyearsfollowingtheOctoberlocalbodyelections.Itaimstopromotediscussionabouttheissuesthecouncilmayfaceandthereforeenableabetterinformedelectiondebate.

“The purpose of a pre-election report is to provide information to promote public discussion about the issues facing the Taupō District.”


Taupō District Council VisionInpreparingitsLTPtheCounciladoptedanewvisiontohelpguidedecisionmaking.Thevisionis:

‘To be the most prosperous and liveable district in the North Island by 2022’.

WewanttheTaupōDistricttobethe‘HeartbeatoftheNorthIsland’notonlybyitsgeographicalpositionbutbycreatingworld-class,authenticandresilientcommunitiesthatpeoplewanttobeapartof.

Wewantourdistricttobeknownforitscharm,tobevibrant,andtoalsoofferaqualityexperienceforbothresidentsandvisitors,whilecreatingrealvalueinwhatweofferandbythewaywedothings.Wewillworkcloselyandcollaborativelywithourpartnerstoensurethebestpossibleoutcomesareachievedforourcommunity,includingiwi,andtomaximiseanyopportunities.

Tohelpguideourstrategywehaveusedacoresetofvaluestounderpinourdecision-makingwhenitcomestotheservicesandactivitieswecarryoutasacouncil.Theseare:

Thislong-termstrategycontinuestoalignwiththegoalswesetourselvesinthelastLong-termPlanof:

• EnsuringthattheTaupōDistrictremainsagreatplacetolive;

• Promotingeconomicdevelopment;

• Protectingourwaterresourcesandusingthemwisely;

• Maintainingthequalityinfrastructurethatwehaveand

• Keepingratesanddebtaffordable.

Wewanttobuildonthestrongfoundationwehavebuiltoverthepastthreeyears.

Theworkwedowillmaintain–andbuildon–ourinternationalreputationasadestinationofchoice.Wewillpromoteanexcellentqualityoflifeforourresidentswhileprotectingthenaturalenvironmentthatmakesourdistrictsospecial.

Wewillbeopenandtransparentinthewaywecarryoutourbusinessandofferanexperiencethatisgenuineandreal.

Ourplans,infrastructureandworkprogrammeswillbedesignedtoensurewearepreparedtowithstandorrecoverquicklyfromdisastersand/ordifficultsituations.Wewillbeflexibleandrespondquicklytochange.

Ourdistrict'sreputationwillbebuiltontheattractivenessofourtowns,thediversityoftheexperiencesweoffer,andthefriendlinessofourpeople.

Thevibrancyofourdistrictwillbecreatedbywell-connectedcommunitieswhoworktogethertocreateapositive,funenvironmentpeoplewanttocallhome.

Weenablepeopletoprosperbyworkingtokeepunemploymentlow,housingaffordableandensuringwhateverwedoisthebestitcanbe.

Wewillretainandattractresidentsandbusinessesbyensuringthedistrictremainsaffordableandensuringtheworkwedocreatesabetterlifeforpeopleandtheirfamilies.


What We DoWe deliver a range of services on behalf of the community in 10 groups of activities. These are:

• Community services

• Water

• Transport

• Community facilities

• Stormwater

• Wastewater

• Solid waste

• Democracy and planning

• Investments

• Economic development


Financial StrategyThisfinancialstrategycontinuesthefocussetbycouncilinLong-termPlans2012-22and2015-25onprudentlymanagingourinvestmentsandborrowings,keepingratesaffordableandsustainable,andlookingaftertheassetswehavewhilemaintaininglevelsofservice.

Thisstrategyoutlinescouncil’sfinancialvisionforthenext10yearsandtheimpactsonrates,debt,levelsofserviceandinvestments.Itwillguidecouncil’sfuturefundingdecisionsand,alongwiththeInfrastructureStrategy,informsthecapitalandoperationalspendingfortheLong-termPlan2018-2028.Italsoidentifiesthechallengesthatwewanttorespondtowithourfinancialgoals.

Financial StrategyCouncil’s financial strategy informs and guides the assessment of funding and expenditure proposals

Infrastructure Strategy

Funding and Financial PoliciesCouncil adopts a set of funding and financial policies to provide predictability and certainty over the sources and levels of funding

Balanced Budget RequirementOperating revenues will be set at a level that meets operating expenditure

Prudence and SustainabilityCouncil will manage its finances prudently and in a way that promotes the current and future interests of the community


Major ProjectsThis section outlines the major projects currently underway or planned over the next three years. Project information has been sourced from the Annual Plan and/or our Long-term Plan.

Upgrades to Water Supplies to meet Drinking Water Standards for NZ

Wehave19waterschemesaroundthedistrictandarerequiredunderlegislationtotakeallpracticablestepstoensurewesupplydrinkingwaterthatcomplieswiththeDrinkingWaterStandardsforNewZealand.We haveaprogrammeofwatertreatmentupgrades plannedoverthenext10yearstoensurewecanmeetthisrequirement.

Funding of Water Schemes

InthisLong-termPlan2018–28councilwillgiveconsiderationtowhetherthecurrentscheme-basedapproachtofundingtheprovisionofwateriseconomicallysustainable,orwhethertomovetoanalternative,likedistrict-widefundingofresidentialwatersupply(similartohowwastewateriscurrentlyfunded).

Destination Play Space

AdestinationplayspaceisplannedforTaupōwithplayfacilitiesforallagesandabilities.AmasterplanforthenewplaygroundiscurrentlybeingconsideredwiththepreferredlocationbeingtheTongariroDomainarea,thoughcommunityengagementwillbesoughtoverthecomingmonthstofinaliseboththelocationandthekeycomponentsoftheplayground.

Taupō Airport Upgrade

Increasingpassengernumbers,ageinginfrastructure,healthandsafetyissues,andprojectedtourismgrowthpromptedustotakeagoodlookatourairportfacilitiesandtheexperienceweoffertoairtravellers.

Towardstheendof2017wepresentedabusinesscasetotheMinisterofTransportoutliningtheneedtoupgradetheterminalbuilding,carparkandentrancewaysasTaupōAirportis50percentownedbytheCrown.

SincethenwehaveengagedwiththeMinistryofBusiness,InnovationandEmploymentandprovidedabusinessplantotheRegionalEconomicDevelopmentFundseekingassistancewithfundingtheupgrade.Wehaveanopportunitytoenhancethevisitorexperienceandprovideafitting‘gateway’tothecentralNorthIsland.Wehopetoattractsomegovernmentfundingtoupgradethefacilitiesandhaveallowed$2.5millionintheplanasourcontribution.

District Plan Review

TheResourceManagementActrequiresustoreview theprovisionsofourDistrictPlanatleastevery10years. Ourfocuswillbeonunderstandingtheissues thatthecommunityandDistrictPlanusersface, collectinginformationandevidence,andpreparingnewdraftprovisions.

Planning for the New Council Administration Building

Wehadtovacateourcounciladministrationbuildingduetohighcostsforearthquakestrengtheningandasbestosremoval.CounciliscurrentlyleasingsixindividualofficesintheTaupōcentralbusinessdistrictandhasmadeadecisiontobuildanewCouncilAdministrationBuildingat61-67TuwharetoaStreet.Thedevelopmentwillincludetwolevelsofundergroundparking,floorspaceforalternateusesincludingacaféandbusfacilities,anditwillbebuilttoIL4standard,theminimumrequiredforapost-disasterfacility.

Turangi Events Centre

CouncilhascommissionedaNeedsAssessmentandFeasibilityStudyforaSportsandRecreationFacility[EventsCentre]inTurangi.Thestudywillconsidertourismopportunitiesandthepotentialtolinkan indoorcourtfacilitytotheTurtlePoolsswimmingcomplex.AnagreementbetweenlandownersNgatiTurangitukuaandthecouncil(ManaWhakahonoarohe)willbecriticaltothedevelopmentofthisproject,aswillengagementwiththewidercommunityandpotentialuser groups.

IRONMAN 70.3 World Championship

TaupōwillplayhosttotheIRONMAN70.3WorldChampionshipinNovember2020.Thetwo-dayeventhassecuredbothCouncilandCentralGovernmentfundingandisexpectedtoattractaround5000competitors,13,500supportersandmediafromaroundtheworld. Itwillbethefirsttimethe70.3WorldChampionship hasbeenheldinNewZealandandonlythesecondtimeinOceania.InvestmentincludesanupgradeoftheTaupōlakefrontpath(seebelow)andpedestrianislandson LakeTerrace.


Current IssuesGrowth then Decline in PopulationThepopulationoftheTaupōdistricthasseensteadygrowthinrecenttimesbutprojectedgrowthintothefutureremainsmodestbeforepeakinginthelate2030s.Thedistrictpopulationisprojectedtoincreasefrom34,800inMarch2013toapeakof39,100in2038beforedeclining.

Thiswillhavefinancialimplicationsascouncilwillneedtoprovideandfundinfrastructureforthisgrowthandthencontinuetofunditthroughthedeclineinpopulation.However,asdiscussedintheInfrastructureStrategy,wedonotknowhowthedeclineinpopulationandthereforethenumberofhousesforsalewillimpactonthenumberofholidayhomesinthedistrictandhowthiswillimpactontheprovisionofinfrastructure.

Ageing Population and AffordabilityWhileanageingpopulationisaworldwidephenomenon,itisanticipatedthatthiswillbehighlypronouncedintheTaupōDistrictoverthenext30years.Currently18percentofthepopulationisaged65yearsandoverbutthisisprojectedtoincreaseto25.4percentin2033and28.5percentin2043.Asmostofthesepeoplewillberetiredandmanyonfixedincomes,affordabilityofrateswillbeanissueforsome.Withincreasingexpenditurerequiredforinfrastructureinthenext30years,thedesiretoreduceCouncildebt,andtheageingofthepopulation,affordabilityofrateswillneedtobetakenintoaccountinfuturefinancialstrategies.

Changes in Numbers of DwellingsThelong-termtrend,forthepast50years,hasbeenforadecreaseinthenumberofpeopleperdwelling.Thisistrueacrossallagesbutparticularlywithanincreasingageingpopulation.Asretireesdisinvestfromlargerfamilyhomestosmallerhomessuitableforoneortworesidents,thereductioninaverageoccupancyperhouseholdwillresultinanincreaseinhouseholdformation.Projectionsshowagrowthinhouseholdsatarateslightlyfasterthanthepopulation.However,thegrowthinhouseholdsalsopeaksin2038.Theincrease inhouseholdspotentiallyenablesagreaterratetake butasmanyofthesenewhouseholdswillbeon fixedincomes,theabilitytopayincreasedrateswill belimited.

Asthesechangesarelong-termtrendsweneedtokeepmonitoringtheminsubsequentLong-termPlans.WedonotconsiderthattherewillbechangesincapitalandoperatingcostsinthisLong-termPlaninprovidingforthesetrends.

Maintaining and Renewing our InfrastructureArangeofcouncilassetsmaybenearingtheendoftheirusefullifeorarealreadyattheendoftheirusefullifeandneedrenewal,howeverwedonotknowhowmanyassetsthisissuepotentiallyaffects.

Paetiki Shops MakeoverThePaetikishopsarethelargestshoppingareaoutsideofthetowncentreandwillbegettingabitofafacelift.Wearelookingatsometrafficcalmingmeasuresfortheareatomakeitmorepedestrian-friendlyaswellassomelandscapeimprovementstocreatesomethingthecommunityisproudof.

Iwi and Māori forums and agreementsOveranumberofyearswehaveenteredintoforums andagreementstomakedecisionsonarangeofissuesthataffectthedistrict.Thesedecision-makingforumshavecomeaboutthroughTreatyorLandCourtsettlements,specificlegislationornegotiatedagreementsbetweeniwiandCouncil.Wewanttocontinuetostrengthenrelationshipsthroughtheseprocesses,butalsobeyondtheseagreementssothatwecanincreasemeaningfulopportunitiesforMāoriwithindecisionmakingprocesses.

Taupō lakefront path and reserve enhancement projectAreplacementpathisplannedfortheTaupōlakefrontthatwillinvolveupgrading4kmoftheexistingwalkwayintoasharedusepath.TheupgradewillstretchfromthewatertreatmentplantonLakeTerracetoRainbowPoint.Amasterplanisbeingdevelopedthatwilladdressexistinghealthandsafetyissuesandincludefeaturestoenhancethereserveexperience.Theprojectwillincludeworkingcloselywiththekeystakeholderstoensuretheirvaluesarereflectedinthedesign.

Mangakino changing facilitiesSomemuchneededchangingfacilitiesareplannedfortheMangakinosportsgrounds.ConceptdesignsarebeingdevelopedwithassistancefromsportsclubsandtheMangakinoPouakaniRepresentativesGroup.ThefacilitieswillprovideabetterequippedtraininggroundforourKingCountryRugbyteam,aswellasenableMangakinotohostmorehomegames,bringingmorevisitorsto thedistrict.


About our FinancesThisfinancialstrategycontinuesthefocuscouncilsetinLong-termPlans2012-22and2015-25onprudentlymanagingourinvestmentsandborrowings,keepingratesaffordableandsustainable,andlookingaftertheassetswehavewhilemaintaininglevelsofservice.

1.50%

0.00%

0.50%

1.00%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

2022/23 2023/24 2024/252019/20 2020/21 2021/22 2025/26 2026/27 2027/282018/192017/18

Prospective average rate increases%

3.00%

2.40%

3.44%

2.67%

3.50% 3.70% 3.70% 3.70%3.80%

3.80% 3.90% 4.00% 4.10% 4.20%

3.02%

3.70%

3.91%

2.93%

2.09%1.92%

1.70%

2.03%

FinancialStrategyLimit(LGCI+1.5%) ProspectiveAverageRates%Increase


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Financial Limits - Set in the Financial StrategyFinancial Limits - set in the Financial Strategy

1. Rates Revenue to Operating RevenueTotal rates revenue must not exceed 80% of operating revenue

Annual Report2016/17


Forecast2018/19

Annual Plan2019/20

LTP2020/21

LTP2021/22

LTP2022/23

Limit in LTP Financial Strategy <80% <80% <80% <80% <80% <80% <80%Total rates as a % of operating revenue 74.38% 68.55% 68.26% 69.28% 67.38% 68.25% 68.20%

2. Limits on Rates Increases



Forecast2018/19

Annual Plan2019/20

LTP2020/21

LTP2021/22

LTP2022/23

LGCI 2.45% 2.53% 2.00% 2.20% 2.20% 2.30% 2.30%LGCI + Quantified Limit 3.45% 3.53% 3.50% 3.70% 3.70% 3.80% 3.80%Actual/forecast rates increases 0.82% 2.26% 3.44% 3.65% 2.59% 2.39% 2.50%

3. Debt Affordability



Forecast2018/19

Annual Plan2019/20

LTP2020/21

LTP2021/22

LTP2022/23

Gross external borrowing limit <200% <200% <200% <200% <200% <200% <200%Actual/forecast 178% 158% 148% 147% 145% 144% 144%

4. Return on Investments



Forecast2018/19

Benchmark 2.92% 2.81% 2.51%Actual 3.18% 3.29% 2.95%

In 2016/17 to 2017/18 rate increases could not exceed Local Government Cost Index (LGCI) + 1.0%. From 2018/19 to 2022/23 rates increases must not exceed LGCI + 1.5%.

Gross external borrowing must not exceed 200% of annual operating income

Investment returns are benchmarked to a market interest rate being the mid-point policy benchmark rate based on 0-12 months where there are enforced minimum percentages. The benchmark is constructed as follows:

50.0% 6-month BKBM mid-rate (average of reporting month)50.0% 6-month BKBM mid-rate, 6 months ago (average of month)


Financial Limits - Set in the Financial StrategyFinancial Limits - set in the Financial Strategy

1. Rates Revenue to Operating RevenueTotal rates revenue must not exceed 80% of operating revenue



Forecast2018/19

Annual Plan2019/20

LTP2020/21

LTP2021/22

LTP2022/23

Limit in LTP Financial Strategy <80% <80% <80% <80% <80% <80% <80%Total rates as a % of operating revenue 74.38% 68.55% 68.26% 69.28% 67.38% 68.25% 68.20%

2. Limits on Rates Increases



Forecast2018/19

Annual Plan2019/20

LTP2020/21

LTP2021/22

LTP2022/23

LGCI 2.45% 2.53% 2.00% 2.20% 2.20% 2.30% 2.30%LGCI + Quantified Limit 3.45% 3.53% 3.50% 3.70% 3.70% 3.80% 3.80%Actual/forecast rates increases 0.82% 2.26% 3.44% 3.65% 2.59% 2.39% 2.50%

3. Debt Affordability



Forecast2018/19

Annual Plan2019/20

LTP2020/21

LTP2021/22

LTP2022/23

Gross external borrowing limit <200% <200% <200% <200% <200% <200% <200%Actual/forecast 178% 158% 148% 147% 145% 144% 144%

4. Return on Investments



Forecast2018/19

Benchmark 2.92% 2.81% 2.51%Actual 3.18% 3.29% 2.95%

In 2016/17 to 2017/18 rate increases could not exceed Local Government Cost Index (LGCI) + 1.0%. From 2018/19 to 2022/23 rates increases must not exceed LGCI + 1.5%.

Gross external borrowing must not exceed 200% of annual operating income

Investment returns are benchmarked to a market interest rate being the mid-point policy benchmark rate based on 0-12 months where there are enforced minimum percentages. The benchmark is constructed as follows:

50.0% 6-month BKBM mid-rate (average of reporting month)50.0% 6-month BKBM mid-rate, 6 months ago (average of month)

Private Bag 2005, Taupō [email protected]

+64 7 376 0899 or 0800 ASK TDCwww.taupodc.govt.nz

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