10 Year Plan - Draft Long Term Plan 2024-2034

DRAFT LONG-TERM PLAN 2024-2034

Takingthenextsteps

Our 10 year plan

Mahere Tekau Tau 2024-2034

He mihi

Ko Te Awa Kairangi he pou herenga iwi, he pou herenga waka.

Here mai ko te kei o tō waka ki te tumu herenga waka o ngā pae mounga kua whakatūtūria nei e te hikuroa o Ngake Mai i Tararua ki Remutaka ki Pūrehurehu, ki Pōkai Mangumangu, ki Pareraho, ki Tirohanga, ki Tukutuku, ki Puke Tirotiro, ki Pukeariki, e whakamarumarutia nei Te Tatau o Te Pō a Ngāti Te Whiti, a Ngāti Tāwhirikura, ki Pukeatua, te tuahu tapu o Te Kāhui Mounga i te wā i a Māui ki te whakapuare i te wahanui o Te Ika Whakarau a Kutikuti Pekapeka.

I ahu mai i Te Wai Mānga, i a Rua Tupua, i a Rua Tawhito, Ko Ngake, ko Whātaitai. Ka timu ngā tai o Te Wai Mānga, ka pari mai ko Te Whanganui a Tara e pōkarekare mai ana.

Ka tū a Pukeatua ki runga i ngā wai e kato ana, i a Awamutu, i a Waiwhetū, kei reira a Arohanui ki te Tangata a Ngāti Puketapu, a Te Matehou, a Ngāti Hāmua e tū ana, tae noa atu rā ki ngā wai tuku kiri o te pūaha o te awa o Te Awa Kairangi.

Koia hoki te puna i heke mai ai he tangata. E kore e mimiti tēnei puna, ka koropupū, ka koropupū. Ko Te Awa Kairangi e rere iho mai ana i hōna pūtakenga i Pukemoumou i te paemounga o Tararua ki runga i hēnei whenua, ki runga i tēnei kāinga, hei āhuru mōwai ngā iwi.

Te Awa Kairangi is a rallying point for the many people and the many tribal affiliations that have made it their home.

Bind yourself to the many mountains of this place that were born from the lashing tail of Ngake. From Tararua to Remutaka, to Pūrehurehu, to Pōkai Mangumangu, to Pareraho, to Tirohanga, to Tukutuku, to Puke Tirotiro, to Pukeariki, to Te Korokoro o Te Mana which stands atop Te Tatau o Te Pō of Ngāti Te Whiti and Ngāti Tāwhirikura, to Pukeatua, the sacred altar of the Mountain Clan in the time of Māui.

It was here that the two ancient tūpuna, Ngake and Whātaitai, were summoned from the depths of the fresh water lake, tasked with prising open the mouth of the great fish.

It is Pukeatua that stands above the waters of Awamutu and Waiwhetū, the home of Arohanui ki te Tangata of Ngāti Puketapu, Te Matehou, and Ngāti Hāmua, flowing out to the life giving waters at the mouth of Te Awa Kairangi.

This is the spring that gives life to the people. This spring which will never be diminished, it will continue to flow, it will continue to flourish. Te Awa Kairangi that flows down from its source at Pukemoumou in the Tararua ranges and over these lands as a sheltering haven for the people.

Contents – Te Reo Māori and English

Will be in full merged version

Message from the Mayor and Chief Executive

Welcome to our Long-Term Plan 2024-2034

Te Awa Kairangi ki Tai Lower Hutt is a growing city with dynamic and diverse communities.

We are home to thousands of businesses and innovators who drive our economy. We have a spectacular coastline, a beautiful river that flows through our city and many green spaces for everyone to enjoy. It’s easy to see why more and more people are choosing to call Lower Hutt home.

We want to do more to ensure that our city is a place where everyone can thrive. We’re working hard to achieve this through the initiatives outlined in our proposed plans which are set out in this 10 Year Plan.

As our city grows there are challenges we need to plan for and opportunities we need to make the most of. Inflation and the rising cost of living are impacting all of us. At the same time, our Council is dealing with a backlog of historic underinvestment in our key infrastructure – shown in our ageing pipes and the risk of future water shortages.

Through our plans we need to strike the right balance between the investment needed and the cost impact on people. Fixing our pipes, seeking feedback on residential water meters, and investing in other water infrastructure are our top priorities. These drive much of the proposed rates increase set out in this draft 10 Year Plan.

We know that more investment is required in our three waters network and that even the proposed $1.6 billion investment will not get us entirely to where we need to be. We’ve balanced affordability for our ratepayers with the need for investment. We are working with central government and colleagues across the region for a better way of delivering water services and to secure investment to ensure they are fit for purpose.

We are continuing the futureproofing of our city through transport and resilience projects including Te Wai Takamori o Te Awa Kairangi (RiverLink), Eastern Hutt Road, and Tupua Horo Nuku (Eastern Bays shared path). Prioritising these projects ensures our city is a safe place where everyone can thrive for decades to come.

This 10 Year Plan has been very challenging to put together. We’ve gone through the budget line-byline to find savings, identify revenue opportunities and made spending cuts before coming up with our proposals. We are not willing to put off the investment that our city sorely needs, nor are we willing to make significant cuts to our core services.

We’ve had to make some difficult calls and after rigorous work we have made $35 million in savings across the board. We’ve also had to ensure we’re prioritising the investment needed to bring critical water and roading infrastructure up to scratch. Thank you for your contribution to this plan that helps us build a connected, resilient and inclusive city where all of our people thrive.

Jo Miller

Partnership with Mana Whenua and Mātawaka

First and foremost is our relationship with Mana Whenua, who have historic and territorial rights in Te Awa Kairangi ki Tai Lower Hutt. The tribal history and legends are based in the lands they have occupied over generations, and the land provides sustenance for the people and enables hospitality for guests.

Mana Whenua interests are represented by five iwi (tribal) organisations and two Mana Whenua marae in Te Awa Kairangi Lower Hutt – Te Tatau o Te Pō and Waiwhetū Marae.

Partnership with Mana Whenua

Council has Tākai Here (Memoranda of Partnership) with the four iwi organisations representing Mana Whenua and iwi Māori in Te Awa Kairangi Lower Hutt.

These take a covenant approach, reflect iwi strategic plans, and align with Council and iwi aspirations.

More information about Mana Whenua partnerships can be found here

Welcome to our draft 10 Year Plan

2024 - 2034

Taking thenext steps (sub header)

Every three years, Hutt City Council prepares a 10 Year Plan that sets out the initiatives and services we plan to fund over the following 10 years. Council adopted our last 10 Year Plan in 2021, and this year it’s time for us to review and adopt a new 10 Year Plan.

Over the last three years we have successfully focussed on getting the basics right. Now we are asking you to help us take the next steps in making Te Awa Kairangi Lower Hutt a great place to live now and into the future.

In 2021 it was clear there was a need and a strong desire from the community to invest in the basics like water infrastructure, our transport network, housing, and resilience measures due to the changing climate and increasing severe weather events. Now Council is taking the next steps on our journey. We remain focused on our goal of providing fit for purpose infrastructure enabling a more connected, resilient, and inclusive city where all of our people can thrive.

The economic conditions have become much more challenging since 2021. Te Awa Kairangi Lower Hutt is dealing with the consequences of historic underinvestment in ageing infrastructure, record population growth and more frequent weather events that are disrupting the city and affecting the roading network. In addition, we are facing increasing costs across the board including higher interest rates, inflation and extra insurance costs.

As you read the updated 10 Year Plan, you will see we have outlined the key infrastructure projects that will help Council address the challenges the community is facing. We are still focussed on resilience and investing in core water and transport infrastructure but know that these will take time to fix properly. We have also looked closely at our other activities and services in the 10-year budget with the economic climate and cost of living in mind.

Upgrading our city’s infrastructure remains a key area of focus, in particular our water services. Council’s Infrastructure Strategy shows how we are taking a proactive approach to addressing our core issues:

• Council will focus on fixing the parts of the water network that are in poor condition by repairing known leaks and increasing the number of kilometres of pipes that are renewed.

• The Seaview wastewater treatment plant is nearing the end of its serviceable life, and we need to renew a number of the critical systems at the facility.

• We are looking at ways to manage the increasing demand for water through initiatives such as universal smart meters and building the resilience of our reservoir network.

• Completing the construction of Tupua Horo Nuku (Eastern Bays Shared Path) will provide more protection for the road out to Eastbourne from the ocean and extreme weather events.

• Improving the resilience of our roading infrastructure by finishing the improvements to Eastern Hutt Road and making good progress on a new multi-modal transport corridor connecting Gracefield and State Highway 2 (the Cross Valley Connection project).

• Making progress on the construction of Te Wai Takamori o Te Awa Kairangi (RiverLink) to provide protection from floods and further revitalise our city centre, improving public transport and addressing congestion.

Alongside investment in infrastructure, a priority is to focus on community wellbeing and supporting people to identify and be proud of where they live. This 10 Year Plan shows that we are taking steps to provide flexible, high-quality spaces and places where people can connect and access services and activities, including hubs and libraries, community halls, pools, and other facilities.

Our financial management remains strong, and our Financial Strategy continues to focus on achieving a balanced budget over the long-term. Like many other councils, we know there are financial challenges ahead and that we must continue to act prudently on behalf of ratepayers to balance wellbeing and ratepayer expectations.

A key focus of the 10 Year Plan is taking the next steps in facing the pressures of a growing population, ageing infrastructure and the impacts of a changing climate. We must do this while also striking a balance between planned rates

increases and including funding to progressing key projects and avoiding significant service reductions.

[the following is to be updated after consultation]

With financial sustainability and affordability front of mind Council is proposing an increase of 16.9% (after growth) in the total amount of rates revenue we collect for 2024/25 in order to fund the approved projects. Around 450% of this will go towards investment in infrastructure for water services and the remaining funds will cover costs for all the other services including roading, parks, community facilities, rubbish and recycling.

This rates increase equates on average to $10.83 per week per residential household.

How to read this plan

We have a wide range of responsibilities and provides a variety of services to the community of Te Awa Kairangi ki Tai Lower Hutt. To guide our activities and management of our finances and ratepayers’ money responsibly, we work to detailed plans. This 10 Year Plan is also known as the Long-Term Plan.

This 10-Year Plan is aimed at providing a long-term perspective over Council’s:

• activities and decision making,

• activities Council plans to undertake,

• the cost of delivering these activities and how they will be paid for.

This 10 Year Plan was shaped through a comprehensive process of engagement, planning, consultation, and decision making which will continue through the life of the plan. It outlines Council’s vision for the future and contains plans to achieve that vision over time. It also highlights the challenges and opportunities facing Council and our strategy to meet these over the next 10 years in each activity area.

In addition to setting Council’s direction, this 10 Year Plan sets out the basis for monitoring and evaluation, so we can report to the community on progress.

Here’s a quickrundown of theCouncil planning and reporting cycle:

• The 10 Year Plan sets out the plans for Te Awa Kairangi Lower Hutt over the following decade and outlines key projects and budgets for that period. The first year of the 10 Year Plan also serves as the Annual Plan for that year.

• In the two years following a 10-year plan, Council produces an Annual Plan each year.

In both the 10 Year Plan and Annual Plans we set goals across different activity areas to make sure Council is always striving to best serve the community. In Council’s Annual Report, we compare the goals we set with how we performed that year. This document is then audited by the Office of the Auditor General.

Challenges we are all facing

It’s important to understand the challenges we are facing in this 10 Year Plan. This is one of our most challenging plans due to the growing population, challenging economic environment, changing climate, managing our assets and dealing with past under investment in our water infrastructure. All these factors play a part in how we plan to take the next steps for our city.

Agrowing population

The current population of Te Awa Kairangi ki Tai Lower Hutt is about 113,000. We’re expecting this figure to reach 125,000 by 2033, and 137,000 in 2043. [could show this in a simple graph?] Our population is also ageing. Rates of projected population growth are highest at ages 50 and over, while the share of the population aged over 70 is expected to rise from 11% to 14% over the next 30 years. Population growth of this scale is putting huge pressure on our supply of houses and infrastructure like pipes and roads.

What we’re doing: Council is working in partnership with the Government, community organisations and the private sector to prepare for population growth. We want to deliver a city that is thriving and meets the needs of diverse businesses, residents, and visitors. We are proposing to continue our policy which requires developers of new houses to contribute to the cost of growthrelated infrastructure such as the cost of the pipes and roads to help support our increasing population.

Achallenging economic environment

Since setting our last 10 Year Plan in 2021, circumstances have changed a lot, with many factors creating the new economic environment.

Council knows the community is facing increasing cost burdens that are having a significant impact on day-to-day living. Council is also faced with economic pressures such as high inflation, the higher cost of borrowing due to increased interest rates, increasing insurance costs, and higher construction and resourcing costs. We need to strike the right balance between these cost pressures and the importance of investing in our city’s infrastructure. Simply put, Council is facing much higher costs and the need to balance the budget is essential.

What we’re doing: Council is carefully considering the rating impact on our community who are affected by the rising cost of living. This means reviewing project budgets and working hard to find savings in our operating costs.

Looking after ageing infrastructure

Council is dealing with the consequences of historic underinvestment in our ageing infrastructure. When this is combined with record population growth, higher costs across the board and more frequent severe weather events, it presents us with some key questions to answer. We are also looking closely at providing sustainable transport choices to ease traffic congestion in the city. This means that water services, transport options and our resilience measures are all in the spotlight even more with increasing demand and much higher levels of investment required. We also have a significant deferred work programme which needs to be dealt with in the years beyond this 10 Year Plan. This will be difficult to do with our current funding mechanisms.

What we’re doing: For this 10 Year Plan, we’re taking the next steps with a clear commitment and strong focus on improving infrastructure. Most of our investment is going towards water and transport as well as projects focused on adapting to a changing climate. All this work is essential in building strong foundations for our future.

Weathering thechangein climate

Communities around the country are feeling the impact of more frequent and severe weather events due to the changing climate. With much of our population living on a large flood plain, we know that Te Awa Kairangi ki Tai Lower Hutt is especially susceptible to the risk of flooding and landslides.

What we’re doing: Te Wai Takamori o Te Awa Kairangi (RiverLink) is a major project we are undertaking in partnership with Greater Wellington Regional Council, Mana Whenua and central government. As well as improving flood protection the project will develop better walking, cycling, and public transport connections in central Te Awa Kairangi ki Tai Lower Hutt and help to revitalise our city centre.

Council wants to avoid increasing debt on this project. We’re considering ways to lower costs by reducing some parts of the project and looking at different ways of doing things, as well as Investigating other funding sources.

We’re also exploring extending due dates over the life of the project so we can spread the costs more evenly across a longer period of time, reducing the impact on our balance sheet and our ratepayers.

Managingourassets

Past under-investment in many of our facilities means significant work is required over the next 10 years. One of the financialchallenges we’re facing is the future affordabilityof our community facilities, parksand reserves.

At the same time, there is increasing demand from our growing population for new activities. We must ensure we can continue to meet the needs of communities while not increasing the burden on ratepayers.

What we’re doing: Council has reviewed leases, licenses and hirefees in line with our Revenue and Financing Policyto ensure they reflect the true cost of assets and strike a fairbalancefor users and non-users.

Council also plans to look at when and how buildings and spaces are being used and whether they could provide better service to our community, alongside the existing users.

OurStrategy

Our vision is to make Te Awa Kairangi kiTai Lower Hutt city a place where everyone thrives. To do this, we need a plan to get there. Our plan centres around three key priority areas and four waysto support how we deliver them.

We’re working towards:

• Providing future-fit infrastructure

• Enabling a liveable city and vibrant neighbourhoods

• Supporting and enhancing the environment

We’re taking the next steps: [icons to support each]

• In partnership with our communities

• In a way that isfinancially sustainable

• Taking climate changeinto account

• All while promoting the wellbeing of allpeople

Long term financial planning

Budget savings of almost $35 million have been made and incorporated into this 10 Year Plan. Given the importance of the decisions that needed to be made we’ve been through all our budgets line by line, and looked at each project in detail to be sure that we’re doing everything we can to make savings, reduce costs and make good decisions for the long-term success of Te Awa Kairangi ki Tai Lower Hutt.

Council continues to invest in a programme of work called Go Digital, which will help increase efficiency and keep costs down. Go Digital is modernising our operational systems, the way we work, and how we engage with the Public. As you will see in this document, Council has taken steps to organise some projects differently, been flexible where possible and delayed some of our transport initiatives, such as the strengthening of the Cuba Street Overbridge, and postponed some renewals work until we’re in a better position to start them.

Two factors are central to our planning:

• Ensuring our long-term financial sustainability, and

• Carefully considering rates charges that are as affordable as possible for our community.

All project and investment decisions are based on the financial approach outlined in our Financial and Infrastructure strategies. You can read the full strategies in Section 3 of this 10 Year Plan.

Hereis whereyour rates will bespent over thenext 10 years:

Conclusion

We know all Councils are facing some big challenges in the coming years. If we achieve what we set out to do in this 10 Year Plan, then our infrastructure will have progressed to be fit for purpose and resilient against the impacts of the changing climate, and will meet the needs of a growing population. In addition, our facilities and services will support the wellbeing of the community. We will have taken the right steps in aiming to have a much more resilient and future proofed city and one where people are proud to live in.

To take the next steps

The purpose of a 10 Year Plan is to answer the question, “What will our city look like in 10 years as a result of this 10 Year Plan?” As we have seen, this plan outlines how we are going to take the next steps to make Te Awa Kairangi ki Tai Lower Hutt better by fixing things like roads and pipes, managing urban growth and housing intensification, improving our facilities and services to meet community needs, and building resilience to combat the impact of our changing climate. To help us make decisions and prioritise projects, we have developed a framework that identifies our priorities and focus areas for long-term planning and investment decisions. The priorities are like the building blocks of the plan –everything we do in the plan should fit with at least one of these priorities. These priorities are based on clear direction from the elected members to support a connected, resilient and inclusive city where all people thrive.

The framework is a guide for the work we will do in the next decade. By using this tool, we’re able to ensure our decisions are strategy-led, streamlined, and consistent. If projects don’t align, we are able to ask why – is it an activity that sits outside our priorities? Or is it something that simply isn’t a priority in the next 10 years?

The fundamental principle of our strategic approach is to promotethewellbeing of all people in Te Awa Kairangi ki Tai Lower Hutt, focusing on the social, economic, environmental, and cultural wellbeing of the community. The main priorities are: [icons to illustrate]

What wewill do:

• Providefuture-fit infrastructure: Making sure the city has good quality and future-ready pipes and roads.

• Enable a liveablecity andvibrant neighbourhoods: Prioritising a high quality of life, green spaces, and community places.

• Support and enhancetheenvironment: Working to support and protect the natural environment and biodiversity. And howwewill do it:

• In partnership: Collaborating with different groups, organisations and businesses to achieve our goals.

• With the changing climate in mind: Considering the changing climate in all decisions and actions.

• Being financially sustainable: Managing money responsibly.

The Principle: Promoting the wellbeing of all people

For Te Awa Kairangi ki Tai Lower Hutt to thrive, neighbourhoods and communities need to be safe, connected, healthy, inclusive, and resilient. Neighbourhoods and communities give us a sense of place and purpose. Council’s role is to support and enable neighbourhoods and communities to thrive.

Council works alongside communities to facilitate and support community-led initiatives and find local solutions to local issues. We use community hui listen to the specific issues and work on problems with groups and agencies across the city.

Our contribution to enhancing Māori wellbeing

We remain dedicated to activating Te Tiriti o Waitangi, working to deepen understanding and navigate pathways to implement and apply the articles within Te Awa Kairangi ki Tai Lower Hutt. The Māori population in the city is steadily expanding, underscoring the need for well-defined aspirations and objectives aimed at enhancing health, education, and employment opportunities for Māori.

Tākai Here (Memoranda of Partnership) serve as ongoing guidance on how we should engage in partnerships with mana and integrity. Collaborating with Mana Whenua enhances our capacity to fulfil Council’s commitment to nurturing and supporting all Māori and Mātāwaka residing in Te Awa Kairangi ki Tai Lower Hutt.

Mana Whenua, Mātāwaka, and Marae organise annual events like Te Rā o te Raukura, that actively promote and champion health, wellbeing, and whānau. Council is committed to offering support to ensure the success of these events, as they provide Māori and our wider population with engagement opportunities.

Priority 1: Future-fit infrastructure

Our infrastructure supports Te Awa Kairangi ki Tai Lower Hutt to be a liveable city where all people thrive: the social, economic, and cultural wellbeing of our community is sustained, and the health and safety of people, property and the environment is protected.

We’re facing some big financial challenges as we re-prioritise projects in this 10year plan. To meet all our aspirations we need a financial strategy that allows us to invest in key areas that will get our city moving- and meet the requirements of a growing population. We must get to a more financially sustainable footing. We also need to ensure that growth pays for growth. This means allocating costs and charges where they fall.

With a growing population we also face some significant housing challenges. We are supporting partnerships to build more warm, dry, environmentally friendly, and healthy homes for our people to live in. By prioritising investment in upgrading and building new infrastructure, we are creating a strong foundation for sustainable growth that will help meet our aim of protecting and enhancing our environment. We consider it prudent to invest now, to avoid large costs in the future or seeing our infrastructure falling behind the needs of the growing population.

Priority 2: Enabling a liveable city and vibrant neighbourhoods

Over the next 10 years we want to take the next steps in creating a liveable city that promotes a high quality of life for everyone. Easy access to green spaces and community places is an important part of this. Our neighbourhood hubs are places to gather and connect and are central to creating vibrant communities. A lack of affordable housing stock is an issue, and our inner city has a high proportion of renters which is set to increase further. The city centre does not have dense housing in comparison to other parts of our city and we have little social housing in the centre. We know that the quality of our housing stock is low in some areas (e.g. Epuni and Melling), where some experience more mould and dampness than in other areas. Over half of our city’s dwellings are more than 50 years old.

Making sure all our residents live in thriving neighbourhoods and have access to good quality housing remains a key priority for this 10-Year Plan.

Priority 3: Supporting and enhancing the environment

We want to support our natural environment, enhance biodiversity, and enable our community to connect with natural spaces. To achieve this our strategies and plans highlight the need for reserve management practices that respond to the changing climate, and resilient against storms and flooding.

The Council’s draft District Plan proposes a range of provisions to address stormwater runoff, this includes water-sensitive urban design rainwater storage tanks and greywater systems for all new residential development to both store and allow for the reuse of water. Our Urban Development team is preparing a spatial plan that will provide a strategic vision and guidance for the future development of our city, outlining goals and objectives for sustainable growth.

We realise that we cannot solve our environmental challenges alone. That is why we are partnering with other councils to implement programmes like the Wellington Region Waste Management and Minimisation Plan 2023-2029. This will create pathways for everyone in the region to work together to care for our resources

Through activities like our kerbside rubbish and recycling service and the Silverstream Landfill, we already take a joined-up approach to managing solid waste.

Over the next 10 years, we want to take the next steps in our recycling programme alongside our partner councils to include kerbside waste collection for food and green organics (FOGO). In doing this, we will relieve the pressure on our landfills across the region.

Our finances at a glance

The budget for this 10 Year Plan has been developed to ensure the delivery of the priorities and progress the investment in basic infrastructure.

There are three key challenges which need to be managed:

Alongside these three challenges, there is uncertainty around legislative reforms and potentially higher compliance requirements that need to be catered for through this 10 Year Plan. The guiding principles for the financial strategy include:

• achieving intergenerational equity, by spreading the costs between present and future ratepayers

• prudent borrowing levels

• achieving a balanced operating budget and ensuring that every day costs are paid for from everyday income

• careful consideration of the affordability of rates charges

• delivering services effectively and efficiently

• strengthening the financial position in the long term

• maintaining principleof “growth pays for growth”

Check out the full Financial Strategy. <link>

Councils are limited in the ways they can generate revenue to cover their costs. Rates are our main source of revenue. Water services (38%) and transport (18%) make up more than half of our operating spend. Although savings were applied to budgets through previous plans, high costs and inflation are being identified across all our activities, which are outstripping savings made.

The cost of borrowing has also increased significantly and is allocated to service areas where incurred.

Council has agreed to go out to the community on a proposed 16.9% rates revenue increase after growth for the year starting on 1 July 2024. On an averagely priced residential home this would equate to around $10.83 more per week in rates.

Council has noted that this 10-year plan has been one of our most challenging due to the cost-of-living crisis, escalating costs, and the need to invest in our infrastructure after decades of under investment.

Through our plans we need to strike the right balance between the investment needed and the cost impact on people. Fixing our pipes and other water infrastructure is our top priority and driving much of the proposed rates increase set out in this draft 10-year plan.

Savings, spending cuts and revenueopportunities

As part of developing the draft LTP proposals for Council we have needed to complete a savings exercise to ease the burden on our ratepayers. We’ve dialled up some activities (like investment in water infrastructure) and dialled down others which are not considered core or priorities at this time. This means we expect there to be some changes to current activities and service levels. These activities have provided great value to the community, however, in the current environment we need to put our resource and budget into other areas.

We’ve gone through the budget line-by-line to find savings, revenue opportunities and propose spending cuts which have informed the proposals included in the draft plan. These equate to $35M over the next 10 years and these have an ongoing effect to reduce the rating impact on ratepayers.

We’ve applied financial principles to our approach for savings and investment. This includes the principle that growth pays for growth (i.e. allocating costs and charges where they fall).

Savings have been made through withdrawal and delaying of some programmes and reducing some services, together with some increases to fees and charges like parking and leases. Some examples of savings include:

• Disestablish Te Wao clubhouse based in Naenae and shift to delivering this Kaupapa through programming and staff based at Neighbourhood Hubs. Disestablish the Safe

• City Ambassador programme – in the current environment we have made the decision to prioritise funding and resource to CCTV services and other safety initiatives.

• Stopping our funding of Hutt Science – We are working with House of Science to identify other sponsors and sustainable funding for this service.

• Continuing our shift towards more community led activity at our facilities, including sports and activities operating at Walter Nash Centre

• Reducing funding for the E Tu Trust – public art will be funded through other existing mechanisms

• Reducing funding for Matariki – in line with our community-led approach, we will offer funding to third parties to host these events

There are savings in other areas such as Mayor’s Taskforce for Jobs (from Year 2 of LTP), exiting Business Central etc.

We’ll continue to implement efficiencies and look for different ways to increase our income which can reduce the rates burden. Refer to <link> for more information about the savings.

Capital Investment and funding

To address growing demands for core infrastructure assets, Council plans to spend $2.6 billion over the next ten years. 62% of this spend is in water services and 21% on transport. This investment level is a significant increase of $1.2 billion compared to the previous 10 Year Plan in 2021, largely due to the need to support investment in a growing city, address the infrastructure deficit with ageing assets and the impact of significant cost escalations due to a challenging economic environment

This significant capital investment will be funded largely by borrowings with some funding from development contributions and central government.

Wellington Water Ltd and Council have been building capacity and capability over the last few years to improve delivery performance. The significant increase in the capital programme, particularly in water services, carries a level of uncertainty and there are risks associated with this. Any delays to our

programme may result in not meeting planned levels of service which will impact our community or result in greater costs in the long term.

Asset management

Infrastructure deteriorates as it ages, increasing the likelihood of failures and service disruption. These failures increase maintenance, operations and customer service costs. Renewing infrastructure that is reaching, or is at, the end of its life reduces the risk of service interruptions and minimises maintenance costs. We are not able to fully fund renewals of all assets during this 10 year plan due to the significant rates increases that would require. While the focus of this plan is for 10 years, there are significant challenges beyond the period of this plan related to the deferred investment and how this will be funded.

Threewaters – drinking water, stormwater and wastewater

Following advice from Wellington Water Limited, this 10 Year Plan includes a significantly higher capital budget for the maintenance, operations and renewal of water assets. This budget is based on what is affordable, even though we know it is less than half of the 30km per year of pipe renewal rate that Wellington Water recommended. This budget will be used for the most urgent jobs and projects. The budgeted spend is expected to result in improvements to the water network over the 10 years and maintain the current levels of service.

Transport

The Integrated Transport Strategy developed in 2022 identified some challenges for the transport network. This 10 Year Plan takes a step towards addressing some of these issues and is expected to improve the overall condition of the transport network over the 10 years. Funding constraints have also had an impact on the planned investment. Government priorities are not yet finalised and further changes may be required in future plans to reflect these priorities.

Abalanced operating budget – everyday costs arepaid for from everyday income

A guiding principle of Council’s Financial Strategy is the importance of having a balanced operating budget. This means that projected operating revenue over the lifetime of this 10 Year Plan is set at a level that’s sufficient to meet projected operating expenses. This ensures that ratepayers are contributing an appropriate amount towards the cost of the services they receive or are able to access, i.e. ‘everyday costs are paid for from everyday income’. This plan projects deficits until 2028-29 when a balanced operating budget position is expected to be achieved, which effectively means we are borrowing to offset the funding shortfall before then.

The projected operating budget provides a realistic balance between managing the pressures on ratepayers and ensuring Council remains financially sustainable into the future.

Borrowings

In August 2023, the Standard & Poors Global Ratings Agency affirmed Council’s AA credit rating, but adjusted the outlook from stable to negative. This reflects the risks associated with higher borrowings due to increased capital investment. To help fund the cost of infrastructure, Council’s Financial Strategy for the upcoming 10 years reflects increases to other funding sources such as development and financial contributions, higher rates revenue, and fees and charges to help fund the cost of infrastructure. After taking other funding sources into account, increased borrowings are largely funding the capital investment programme. Net debt of $0.3 billion at 30 June 2023 is projected to increase to a peak of just over $1 billion in 2029-30.

The projected debt profile is outlined in the graph also highlights the much higher borrowing levels compared to the Annual Plan 2023-2024. The proposed programme fully utilises the debt headroom capacity available whilst ensuring debt is managed prudently within the limits set. Rates

The graph below outlines the rates revenue increases over the 10-year period in the plan.

The examples below show how a range of properties are affected by the proposed rates increase for 2024/25.

Debt and revenue sources are increasing in this 10 Year Plan, however, the levels of service are still at risk due to cost pressures that may exceed the assumptions around inflation. We are doing everything we can to mitigate the risks.

Check out the full Strategy and project list in our supporting documents <link>

Further information can be found in this 10 Year Plan. See:

• Financial Strategy <link>

• Infrastructure Strategy <link>

• Revenue and Financing Policy <link>

• Funding Impact Statement Including Rates<link>

What you said about this 10 Year

Plan

[to be updated following the results of consultation]

Introduction to the Statements of Service Performance Chapter

Taking the next steps (sub header if Gusto need, depending on design)

Welcome to the chapter about Service Performance Reporting in Hutt City Council's 10 Year Plan. Here, we'll illustrate how we make decisions and work towards making our community better in areas like the local economy, the environment, and social and culture activities in Te Awa Kairangi ki Tai Lower Hutt.

We measure our Statement of Service performance through key performance reporting. In 2023, Council undertook a comprehensive review of all Key Performance Indicators (KPIs), resulting in some adjustments that will be explained in this chapter.

The KPIs establish a direct alignment between a performance measurement (what we do) and the outcomes we seek for the city (why we do it).

Developed in collaboration with service delivery managers, these indicators align with Council's strategic priorities and were agreed by our elected members. The KPIs help facilitate performance improvement through regular assessments and are measured on a regular basis. The annual Resident’s Satisfaction Survey plays an important role in monitoring the quality of services and facilities that Council provides.

In 2010, the Government introduced a series of mandatory non-financial performance measures that all local authorities must monitor and report to for their communities. The aim is to enable residents to actively participate in discussions about levels of service for their areas and to lift involvement in the decision-making processes of local authorities.

You can find more information about the mandatory non-financial performance measures here – link.

How to read this Chapter

One of our main jobs at Council is to make decisions that are fair and helpful for both current and future generations who live here now and those who will live here in the future. We carefully pick performance measures that match the goals we have for our services and show how well we're doing.

This involves looking closely at what we do, making sure our service goals match our criteria for success, and getting input from the community when we develop documents such as their 10 Year Plan, the Annual Plan and Resident Satisfaction Surveys.

The performance dashboard at the start of each section gives you a quick look at how well our services are performed. The indicators help us track progress outlined in this 10 Year Plan.

By going through this section with an understanding of how:

• we make decisions,

• follow the rules,

• measure our performance, you should get a good idea of how our Council looks at and shares information about its services.

Introduction to Environmental Wellbeing Section

TeAwa Kairangi ki Tai Lower Hutt Environmental Wellbeing

Ensuring communities have access to quality green spaces and clean, safe waterways is important for enhancing everyone’s health and wellbeing. Green spaces provide areas for physical activity, relaxation, and social interactions, contributing to reduced stress and improved mental wellbeing. Clean waterways not only ensure a safe water supply but also contribute to a healthier ecosystem that supports the diverse flora and fauna we enjoy in the city. In this way, safeguarding the environment is synonymous with safeguarding community health.

Taking the next steps over the next 10 years, our focus will be on making positive changes to keep our freshwater healthy and removing storm and wastewater safely and efficiently. We know there are challenges with using too much water now, so we want to change how we use and manage it. Planned changes in the Government’s Natural Resources Plan will help transform how we utilise water, emphasising less water use, smarter practices, and a promise to keep our freshwater healthy for generations.

Our strategic approach to managing our water infrastructure is outlined in Council’s Infrastructure Strategy contained in this 10 Year Plan. The Infrastructure Strategy tells the story of Council’s stewardship approach to the management of the core infrastructure in Te Awa Kairangi ki Tai Lower Hutt and to meeting the challenges our infrastructure faces.

Some of our other projects outlined in this 10 Year Plan are designed to have positive impacts on our urban environment. For instance, by enabling and encouraging the installation of electric vehicle (EV) charging stations, we are playing a role in growing the necessary infrastructure to encourage greater use of EVs. This, in turn, contributes to reduced air pollution and a cleaner, healthier environment. It exemplifies our commitment to fostering sustainability and wellbeing through targeted initiatives that align with the region’s broader environmental goals.

Environmental Wellbeing

Dashboard

Infographics

Average residential electricity consumption

• January 2023 – 433 kWh (Electricity Authority)

• June 2023 – 720 kWh (Electricity Authority)

New solar and wind renewable energy connections in the Wellington Region from April 2022-31 March 2023

• Sun – 123 (Electricity Authority)

• Wind – 0 (Electricity Authority)

Total number of solar and wind renewable energy connections in the Wellington Region at April 2023

• Sun – 4000 (Electricity Authority)

• Wind – 17 (Electricity Authority)

Residents perceptions of problems (Percentage who agreed with problem2023)

• Traffic congestion – 79% (Quality of life survey)

• Air pollution – 23% (Quality of life survey)

• Noise pollution – 44% (Quality of life survey)

• Water pollution – 64% (Quality of life survey)

Stories for Environmental Wellbeing

Why we are proposing to invest in water meters

We're working with Wellington Water and other Councils across the region towards making sure we have enough water for everyone. Water meters are a key component in helping to manage our water better. They help us use water wisely, reduce risks, and save money. Our goal is to be efficient with our natural water resources. Meters not only track water use but also help create a smarter and more sustainable water supply. Since freshwater is a limited resource, we want to use water wisely to avoid problems and secure a healthy future for our water sources.

Our main aim is to make sure customers have sufficient water, especially during hot summer days, while also keeping costs in check. Sustainability, for us, means using water wisely, making supply systems better, and taking care of rivers and aquifers.

Our journey to water security involves three steps:

• reducing leaks,

• using water wisely,

• getting ready for future needs.

This plan not only helps to save water but also encourages smart water use through metering and helps us better prepare for our water needs throughout the summer. By working on all these things together, we make sure our water supply system is strong, and our water future is positive and sustainable.

Smart meters are one way to help us reach our goal of using water more wisely. They give customers data to manage water use and enable the tracking of leaks faster. Smart meters go beyond just saving money – they help us use water efficiently, fit into smart networks, and move towards a future where our community leads in responsible water use.

New waste plan approved

We have approved a plan to transition our city and the Wellington region over the next six years and beyond to an economy where we process and reuse materials in a sustainable or environmentally friendly way. The Wellington Region Waste Management and Minimisation Plan 2023-2029 creates a pathway for everyone in the region to work together to care for our resources – for less waste and a greater place.

We are joining with the rest of Wellington region’s councils to implement this plan. Some region-wide goals include:

• Ensuring the availability of construction and demolition waste processing and recovery by 2026.

• Providing organic processing systems by 2029.

• Adding five new resource recovery locations to the existing network by 2030.

Our action plan includes measures designed to help the city shift from just managing waste to focusing on reducing, reusing, and recycling. These actions include:

• Assisting local businesses with waste minimisation practices by offering free waste audits, presentations and supporting solutions.

• Supporting the development of regional resource recovery networks to minimise waste. This could include options for managing and processing organic waste, construction and demolition waste, biosolids, materials recovery facilities, and a region-wide resource recovery network.

• Advocating for better waste solutions to central government and other national bodies of influence.

Ngā puna wai | Water supply

Statements of ServicePerformance

What wedo

Ensuring the consistent and secure access to safe drinking water is an important concern for our community. To achieve this, Council’s committed to providing a sustainable, high-quality water supply for both domestic and commercial needs. Our ongoing efforts involve close monitoring of water quality and undertaking necessary maintenance and upgrades to meet the required service standards.

The Greater Wellington Regional Council oversees the extraction, treatment, and bulk water supply to feed the city's water supply system.

Why wedo it

By delivering water that is of high quality and affordable, Council actively contributes to several crucial activities:

• Enhancing the overall health of the community

• Ensuring community safety, particularly through the water supply system's firefighting capabilities

• Supporting industrial and residential development initiatives

Significant negativeeffects and mitigation

Possible adverse impacts encompass the reduction of watercourses (such as rivers and streams) due to water extraction rates and the decline of habitats influenced by the upgrading and replacement of three waters infrastructure. Extraction is carefully regulated to minimise adverse effects to acceptable levels. Our efforts contribute to managing water demand, thus reducing the necessity to seek new water sources

Key Performance Indicators

Watersupply PerformanceMeasure

Wewanttoensureourcommunityhas accessto asafe,clean,reliablewatersupply: The extent to which thewater supply will comply with part 4 of the New Zealand drinking water standards and the drinking water quality assurance rules (bacteria and protozoal compliance criteria)

Number of complaints received about water clarity, taste, odour, pressure, flow and continuity of supply per 1,000 connections.

Wherethelocalauthorityattends acalloutinresponsetoafaultorunplannedinterruptiontoits networkedreticulationsystem,thefollowingmedianresponsetimes aremeasured:

Attendance for urgent callouts: from the time the local authority receives notification to the time service personnel reach the site

Resolution of urgent callouts: from the time the local authority receives notification to the time service personnel confirm resolution of the fault or interruption

Attendance for non-urgent callouts: from the time the local authority receives notification to the time service personnel reach the site

Resolution of non-urgent callouts: from the time the local authority receives notification to the time service personnel confirm resolution of the fault or interruption

Quarterly ≤ 20 working days ≤ 20 working days

Weneedtoensurewehavea sustainablewatersupply forthefuture:

Capital Projects Water supply

ProspectiveStatement of ComprehensiveRevenueand Expense

Water supply

Explanations of differences between the10Year Plan 2024-2034 and the equivalent years of theAnnual Plan 2023-24 – Water supply

Revenue – Water supply

Revenue has increased by $43 million largely due to changes to fees for water set to recover higher bulk water costs and changes to the assumed development contributions revenue recovery aligned to the proposed capital programme and Development and Financial Contributions policy.

Expenditure – Water supply

Expenditure has increased by $151 million and is driven by higher operating cost budgets for maintenance and operations as per Wellington Water Limited advice, bulk water cost increases, as well as higher interest and depreciation costs linked to increased capital investment.

Capital – Water supply

Capital expenditure has increased by $166 million based on the higher investment as advised by Wellington Water Limited. Some key changes are cost increases for the reservoirs, partly driven by growth, water meters and additional funding allocated for renewal projects.

Waiparu | Wastewater

Statements of ServicePerformance

What WeDo

Council plays a crucial role in the community's wellbeing by collecting, treating, and responsibly disposing of wastewater. This service supports the growth and development of our city while ensuring the health of our residents and the protection of the environment.

We operate an extensive pipe network, and efficiently manage the flow of household and commercial effluent to the Seaview Wastewater Treatment Plant before the treated effluent is discharged into Cook Strait at the Pencarrow Outfall.

Why WeDo It

By providing a reliable and responsible wastewater solution, we contribute to the development of our community and uphold the highest standards of public health and environmental protection.

This activity aligns with our commitment to fostering a thriving, sustainable city that prioritises the wellbeing of both residents and the natural environment.

Significant negativeeffects and mitigation

The release of odours, overflows, and the deterioration of watercourses due to overflows are potential significant adverse effects. Odor control systems have been installed in sections of the wastewater infrastructure where odour issues have been noted. Reports of odours are monitored via the Council's Request for Service system and reports from the wastewater system maintenance and operations contractor. Areas affected by overflows are gradually being upgraded using a combination of approaches. Upgrading occurs through the asset renewal program, which involves replacing each wastewater pipeline as it reaches the end of its useful life, and the asset development program, which considers long-term demand projections for the wastewater

Key PerformanceIndicators

Wastewater

Itiscriticalourcommunityisnotexposedto anyhealthorenvironmentalrisks associatedwith wastewater.Weprovideasafe,reliable,qualitywastewaternetwork: Dry weather wastewater overflows per 1,000 connections

Wheretheterritorialauthorityattendstosewerageoverflowsresultingfrom ablockageorother faultintheterritorialauthority’sseweragesystem,thefollowingmedianresponsetimes are measured:

from the time the territorial authority receives notification to the time service personnel reach the site

Resolution time: from the time the territorial authority receives notification to the time service personnel confirm resolution of the blockage or other fault

Capital Projects - Wastewater

ProspectiveStatement of ComprehensiveRevenueand Expense – Wastewater

Explanations of differences between the10-year plan 2024-2034 and the equivalent years of theAnnual Plan 2023-24 - Wastewater

Revenue - Wastewater

Revenue has increased by $36 million largely due to changes to operating subsidy from Upper Hutt City Council for the higher costs of shared services for the activity, and changes to the assumed development contributions recovery aligned to the proposed capital programme and Development and Financial Contributions policy.

Expenditure- Wastewater

Expenditure has increased by $127 million and is driven by higher operating cost budgets for maintenance and operations as advised by Wellington Water Limited as well as higher interest and depreciation costs linked to the increased capital investment.

Capital - Wastewater

Capital expenditure has increased by $347 million based on the higher investment as advised by Wellington Water Limited. Some key changes are to the timing and costs for the Seaview Wastewater Treatment Plant, cost increases for the Petone Collecting sewer upgrade and additional funding allocated for other renewal projects.

Waiāwhā | Stormwater

Statements of Service Performance

What wedo

Everyone is feeling the effects of a changing climate. Council is focussed on controlling stormwater to keep people safe and minimise property damage during extreme weather events.

Through the provision of a comprehensive stormwater drainage pipe network, we effectively manage surface water run-off, offering flood protection and control.

Why wedo it

Controlling stormwater is an important step in safeguarding the wellbeing of the community. Council’s objective is to create a resilient and safe environment by managing stormwater effectively.

By doing this, we also protect people, property and the environment, while managing costs responsibly for the benefit of the community.

Significant negativeeffects and mitigation

The release of pollutants into watercourses via stormwater and flooding when the stormwater system exceeds capacity are potentially significant adverse impacts. To mitigate these, pollution prevention programs, road cleaning initiatives, and debris pits installed in most stormwater system inlets help reduce the entry of contaminants, supported by our monitoring efforts. The stormwater system is engineered to standards commensurate with risk levels at various locations, comparable to those in other New Zealand cities. Additionally, we collaborate with the Greater Wellington Regional Council regarding flooding issues related to watercourses under their management.

Key PerformanceIndicators

Stormwater

Wewanttoensureourcommunitycanenjoyrecreationalassets: Achieve water quality at main recreational beaches: percentage of days that monitored beaches are suitable for recreational use during bathing season – 1 December to 31 March

WewanttoensureourCityhas asafe,reliable,qualitystormwatersystem:

flooding events

Median response time to attend a flooding event, measured from the time the territorial authority receives notification to the time service personnel reach the site

Compliance with resource consents for discharges from stormwater system (number of abatement notices, infringement notices, enforcement orders, and convictions

Capital Projects - Stormwater

ProspectiveStatement of ComprehensiveRevenueand Expense

Explanations of differences between the10Year Plan 2024-2034 and the equivalent years of theAnnual Plan 2023-24 - Stormwater

Revenue - Stormwater

Revenue has increased by $19 million largely due to changes to the assumed development contributions recovery aligned to the proposed capital programme and Development and Financial Contributions policy.

Expenditure- Stormwater

Expenditure has increased by $28 million and is driven by higher operating cost budgets for maintenance and operations as per Wellington Water Limited advice as well as higher interest and depreciation costs linked to the increased capital investment.

Capital - Stormwater

Capital expenditure has increased by $113 million based on the higher investment as advised by Wellington Water Limited. Some key changes are to funding allocations for projects to deal with flooding (partly driven by growth), as well as additional allocations for renewal projects.

Para | Solid waste

Statements of ServicePerformance

What wedo

Council’s role in solid waste management is important for keeping the community healthy, ensuring a high-quality of life, and supporting a thriving environment.

The solid waste activity delivers on Council’s waste management objectives, by:

• operating Council’s kerbside rubbish, recycling and green waste collection service;

• operating Silverstream landfill;

• monitoring and managing all of Council’s closed landfills; and

• investigating, trialling and/or implementing new initiatives to reduce waste.

Over the next 10 years, Council is working to improve our waste minimisation by partnering with other councils in the region to implement a Food and Green Organic collection service.

Why wedo it

Solid waste management is integral to maintaining a healthy, vibrant community. By actively participating in waste management, we directly contribute to the overall wellbeing of our residents and the preservation of the environment.

Our commitment to waste minimisation reflects our dedication to creating a sustainable and eco-friendly community. Through the ownership and operation of the Silverstream Landfill, we take a comprehensive approach to managing solid waste.

Significant negativeeffects and mitigation

The potential environmental impacts resulting from non-compliance with resource consent conditions are managed through our management strategies and adherence to best practices. Inadequate recycling and refuse collection

services might result in increased littering. While certain sustainability initiatives, like waste reduction and modern waste management practices, may appear costly, time consuming, and restrictive to some, these effects are alleviated by collaborating with communities to establish mutually agreed upon sustainability approaches.

Key PerformanceIndicators

Weareworkingtominimisetheharmfuleffectsofrefuse:

notices received from Greater Wellington Regional Council

Wewanttoreducelitterandthenegativeimpactsitcanhaveonournaturalenvironmentandon ourcommunity’shealth:

Wearelookingatwaystoreducetheamountofwastegoingtolandfill:

ProspectiveStatement of ComprehensiveRevenueand Expense - Solid waste

Explanationsof differences between the 10 YearPlan 2024-2034 and the equivalent years of the Annual Plan 2023-24 - Solidwaste

Revenue - Solidwaste

Revenue has decreased by $9 million largely due to anticipated waste diversion activities at the Silverstream Landfill which is expected to reduce the volume of waste received in the future.

Expenditure - Solidwaste

Expenditure has increased by $43 million, driven by higher operating cost budgets for the kerbside collection services including introduction of the new Food and Green Organics collection service proposed to start 1 July 2027. This is offset by higher targeted rates funding included under the Corporate Services activity.

Capital - Solidwaste

Capital expenditure has increased by $15 million based on the roll out costs and joint investment into a processing plant for the new Food and Green Organics collection service proposed to start 1 July 2027.

Whakauka me te Manawaroa |

Sustainability and resilience

Statements of ServicePerformance

What wedo

The climate change and sustainability activity is focused on changing the way we do things to improve climate outcomes across Council and for the community. This includes delivering on our Carbon Reduction Plan 2021-31 and the Lower Hutt Climate Action Pathway.

The climate change activity delivers on Council’s climate change objectives, by:

• providing advice to Council on climate change-related projects (such as the setting up of a Green Star requirement for the new Naenae pool);

• managing and supporting projects to implement carbon reductions in line with Council’s Carbon Reduction Plan 2021-31 and the Lower Hutt Climate Action Pathway (such as the EV charging station roll out);

• delivering the Low Carbon Acceleration fund to support the city to reduce its emissions faster;

• managing and supporting regional projects, in collaboration with neighbouring Councils (including the Regional Climate Change Impact and Risk Assessment, Regional Adaptation Plan and Regional Emissions Reduction Plan; and

• monitoring Council’s carbon emissions (annual carbon footprint).

Why wedo it

In order for Council’s climate change actions to be meaningful, the Council, and communities in Te Awa Kairangi ki Tai Lower Hutt, must ultimately align with good practice.

The sustainability and resilience activities enable the delivery of emission reductions, in line with Council’s organisational zero by 2050 carbon target.

Significant negativeeffects and mitigation

Emergency response and recovery efforts can temporarily impact community and environmental well-being as social systems and infrastructure are reconstructed after an emergency. A poorly executed emergency management response can lead to severe and lasting negative effects on overall well-being.

Key PerformanceIndicators

Sustainabilityandresilience

PerformanceMeasure Reporting frequency Target2024-25 Target2024-34

Councilisrespondingtotheimpactofchangeinclimateand contributingtothegoalof acarbon zerocityby2050

Emissions from Councilowned facilities (tCO2-e)

Emissions from Councilowned fossil fuel vehicles (tCO2-e)

Quarterly 30% reduction by 2024 50% reduction by 2030

Quarterly 30% reduction by 2024 Zero emissions by 2030

Ourcityispreparedforanemergencyandcanrespondappropriately: EOC resourcing levels maintained at least at WREMO competency level targets:

Annual Advanced - 6, Intermediate - 12 Foundation - 12

There are no capital projects associated with this activity.

Controller -6 Advanced - 18, Intermediate - 16 Foundation - 50

ProspectiveStatement of ComprehensiveRevenueand ExpenseSustainability and resilience

Explanations of differences between the10-year plan 2024-2034 and the equivalent years of the Annual Plan 2023-24 - Sustainability and resilience

Revenue - Sustainability and resilience

Revenue has increased by $5 million largely due to the waste minimisation levy recovery based on assumed volume of waste.

Expenditure- Sustainability and resilience

Expenditure has increased by $10 million. This is partly linked to the higher waste minimisation levy which is ringfenced and allocated to specific activities in alignment with the Waste Management and Minimisation Plan. There is also additional budget allocated through this plan for emergency management activities, a large portion of which is contracted costs.

Ngā Ratonga Waeture | Regulatory services

Statements of ServicePerformance

What wedo

Our statutory activities are essential for cultivating a clean, healthy, appealing, safe, and sustainable environment for residents and visitors. These activities encompass building and resource consents, environmental health, trade waste management, animal services, and parking control. We are currently implementing new systems and processes to improve the customer experience and speed of our consent processing. For example, our new customer portal “Objective Build” and new processing software “Go Get” will help streamline consenting processes in the future.

We ensure the safety of the community by inspecting various establishments to guarantee cleanliness and hygienic practices. This reduces the risk of foodborne illnesses and alcohol-related harm.

Additionally, we oversee health-related activities in industries such as tattoo studios and beauty therapy shops to mitigate potential health hazards.

We also address health nuisances and noise issues to maintain a healthy living environment for everyone.

Why wedo it

Most of our functions are required through various pieces of legislation. While primarily focused on environmental wellbeing, these activities also contribute directly to economic, social, and community safety outcomes. They play a crucial role in establishing and maintaining standards, promoting health and safety, and ensuring the welfare of our community. They are also aligning with our commitment to a vibrant and secure city.

Our activities aim to protect public health and the environment. Through the trade waste function, we manage wastewater and chemical hazards, responding promptly to water pollution incidents. By registering commercial properties that discharge liquid waste and charging users accordingly, we

cover the expenses associated with waste treatment and disposal and ensure the safety of our waterways and surroundings.

Our animal services activities focus on enforcing regulations to ensure the safety of residents and the welfare of animals.

Finally , our parking services promote safe and efficient parking, ensuring fair access to public car parking spaces and enhance overall traffic management in the city.

Significant negativeeffects and mitigation

The necessity for regulatory measures benefiting the broader community can sometimes diminish perceptions of personal freedom. These regulations may be viewed as obstacles leading to costs and delays.

Key PerformanceIndicators

RegulatoryServices

Weneedtoensurethatnewhousingissafeandmeets standards withoutdelayingtheprocess:

Wewant a

whereeveryonefeels

Capital Projects Regulatory Services- Regulatory Services

There are no capital projects associated with this activity.

ProspectiveStatement of ComprehensiveRevenueand Expense - Regulatory Services

Explanations of differences between the10-year plan 2024-2034 and the equivalent years of theAnnual Plan 2023-24 – Regulatory Services

Revenue - Regulatory Services

Revenue has increased by $16.5 million largely due to increases to fees and charges to help offset cost increases in this activity.

Expenditure- Regulatory Services

Expenditure has increased by $32 million and is driven by additional resourcing cost put in place to deal with the demands across this activity.

Oranga Ōhanga - Economic Wellbeing

Introduction to Economic Wellbeing Section

A thriving economy is essential for the wellbeing of our people. A strong and sustainable economy provides better job opportunities, higher wages, and a higher living standard for residents. It also builds business confidence, provides commercial opportunities and attracts more investment into the city.

We take a partnership approach to growing the city’s sustainable economic success, building capability within our community and making it easy to do business in Te Awa Kairangi ki Tai Lower Hutt.

Taking the next steps in our work work for the next 10 years involves enhancing our engagement with Māori and Pasifika business communities, supporting partnerships to grow our workforce to meet our infrastructure needs and cement our competitive advantage in the science, technology, manufacturing and innovation sectors.

We will facilitate a circular economy through zero waste and zero carbon initiatives and developing capability. To explain a little more, a circular economy is an economic system that aims to minimise waste and maximise the efficient use of resources. It also looks to regenerate nature and reduce the environmental impact of our activity.

We will celebrate our city’s identity and promoting Lower Hutt, it’s people and businesses to attract investment, spending, and tourism that delivers an effective circular economy.

Economic Wellbeing Dashboard

Infographics [dashboard details to be confirmed and updated]

GDP (Sep 2023)

$7,580M (Infometrics)

Consumer Spending (Sep 2023)

$1,684M (Infometrics)

Income Median annual individual income

$34,700 (Census 2018)

Annual individual income by income group (census 2018)

$20,000 or less – 32%

$20,001 - $40,000 – 23%

$40,001 - $60,000 – 18%

$60,001 - $100,000 – 17%

$100,001 - $150,000 – 6%

$150,001 or more – 3%

Unemployment rate (Sep 2023)

2.80% (Infometrics)`

NEET rate (Year end March 2023)

5.2% (15-19 year olds) (Stats NZ)

10.3% (20-24 year olds) (Stats NZ)

Number of Jobseeker supplement recipients (Sep 2023)

4,133 (Infometrics)

Number of businesses (Sep 2023)

11,143 (Infometrics)

Communication Access (Census 2018)

Access to cell phone /mobile phone 93% (Census 2018)

Access to internet 87% (Census 2018)

No access to telecommunication systems 1% (Census 2018)

Average house value (Sep 2023)

$757,669 (Infometrics)

Average rent (Sep 2023)

$550 (Tenancy Services)

Housing Affordability (average house value to average household income – Sep 2023)

5.5 (Infometrics)

Rental Affordability (average rent to average household income Sep 2023)

28% (Homes.co.nz and Stats NZ via Dot Loves Data)

Number of households on Housing Register (Sep 2023)

564 (Ministry of Social Development)

Ability to cover every day needs

43% not enough or just enough (Quality of Life 2022)

53% enough or more than enough (Quality of Life 2022)

Stories for Economic Wellbeing

Whiria temuka tangata, whārikihia te Kaupapa | Council’s Integrated Transport Strategy

A great transport system connects our communities, provides access to social opportunities, and helps grow our economy. But like other cities, Te Awa Kairangi Lower Hutt facing some big challenges, including a fast-growing population, higher costs and a changing climate.

The Integrated Transport Strategy outlines Council’s vision, and strategic direction for responding to the city’s growing transport challenges. It lays out an integrated approach to delivering land use planning, transport planning, investment and encouraging behaviour change within Te Awa Kairangi Lower Hutt.

The Strategy is now guiding Council’s decision making about changes to the transport system to address the challenges our communities are facing. We’re now developing a plan under each of the seven Strategy focus areas, along with key targets and measures. A range of measures will be used to indicate whether the direction of change is in keeping with the vision of this Strategy, including mode shift, journey times, carbon emissions, health-related measures, economic growth, safety trends, and resident satisfaction.

You can find more information about Council’s Integrated Transport Strategy here - Link

Ngā waka | Transport

Statements of ServicePerformance

What wedo

The Transport team oversees essential programs aimed at maintaining, operating, and enhancing our transport system, and a continuous improvement approach for infrastructure development. Our focus prioritises road safety, encourages mode-shift in transport choice, improved travel options, with a specific emphasis on mitigating climate change and delivery of infrastructure projects in a timely manner. Our goal is to have a wellconnected and modern transport system that accommodates all modes of transportation and ensures accessibility and connectivity throughout the city. Why wedo it

Our commitment is to future-proofing our growing city for future generations. We strive to establish a resilient and interconnected transport system that offers increased accessibility and encourages alternative modes of transport (for example Tupua Horo Nuku). Our efforts in road and traffic asset management, maintenance contracts, road safety services, and active modes aim to provide well-maintained roads, footpaths, and streetlights. This infrastructure facilitates efficient and secure travel for motor vehicles, bicycles, and pedestrians, aligning with our vision of a vibrant and connected city. We are also investing in projects to improve the resilience of our networks in the face of a changing climate. A good example is the work on Eastern Hutt Road which, when finished, will improve the reliability of the road to Council’s Northern suburbs.

Significant negativeeffects and mitigation

The possible environmental impacts of increasing transportation demand include various forms of pollution such as increased water runoff contamination from roads, emissions of particulates from heavy road vehicles, air pollutants

from road traffic, as well as traffic noise and vibrations. Additionally, congestion on vital routes, the loss of productive and recreational land for transportation infrastructure, and public health risks associated with traffic accidents are concerns. Transport planning takes into account these adverse effects and includes measures to address them. Efforts are made to reduce crashes through studies and necessary interventions in high-crash areas. Works are carried out annually to minimise traffic delays and consequently reduce air pollution. Furthermore, alternative modes of transportation are actively promoted.

Key PerformanceIndicators

Transport

Weneedtobeabletotravelalongkeyroutesefficiently:

Road condition index which measures the condition of the road surface

The average quality of ride on a sealed local road network, measured by smooth travel exposure

sealed local road network that is resurfaced annually

Percentage

footpaths that fall within the service standard for footpath condition

Percentage of customer service requests relating to roads and footpaths that are responded to within the statutory timeframe

Kilometres of shared pathways and cycle lanes added annually.

Kilometres of renewals for footpaths

Weareworkingtostrengthenouractivetransportnetwork: Resident satisfaction with the footpath condition

Resident satisfaction with on road cycleway condition

Resident satisfaction with shared path condition Annual ≥ 80% ≥ 80%

Resident satisfaction with the availability of car parking to access services and facilities (does not include access to residences)

Roadsafetyservices:

The number of fatalities and serious injury crashes on the local road network

Annual ≥75% ≥75%

Quarterly Previous year less 1% Previous year less 1% Capital

ProspectiveStatement of ComprehensiveRevenueand Expense – Transport

Explanations of differences between the10-year plan 2024-2034 and the equivalent years of theAnnual Plan 2023-24 - Transport

Revenue - Transport

Revenue has increased by $89 million largely due to proposed parking fee changes, increases in capital/operating subsidies and grants linked to higher costs, and development contributions revenue linked to planned projects driven by growth.

Expenditure- Transport

Expenditure has increased by $93 million, driven by higher operating cost budgets for a range of renewed contracts for maintenance activities, additional resourcing put in place and higher depreciation costs linked to the increased capital investment.

Capital - Transport

Capital expenditure has increased by $95 million based on cost escalations across several existing projects (for e.g. area-wide pavement treatment) ), some new projects planned to deal with growth impacts on the roading network like Subdivision improvements project and additional funding for network resilience work like Eastern Hutt Road resilience.

Whanake tāone | City development

Statements of ServicePerformance

What wedo

Providing essential services that cater for the needs of residents, businesses, and visitors is crucial for the economic development of Te Awa Kairangi Lower Hutt. The City Development Group oversees various activities, including urban design, business support and city growth, housing, and the District Plan. This multifaceted approach ensures a comprehensive strategy for the city's development and wellbeing.

Why wedo it

Our commitment to enhancing the quality of life for residents drives our efforts. Easy access to recreational green spaces, the Te Awa Kairangi Hutt River, and the Te Whanganui a Tara harbour contributes to our distinctive appeal. By supporting the business sector and promoting Te Awa Kairangi ki Tai Lower Hutt as a vibrant business location, we create a positive ripple effect, benefiting local enterprises and residents alike. Initiatives like placemaking, supported events, and collaborations not only add vibrancy to the city but also attract visitors. Collaborating with partners fosters better connectedness within our business community, facilitating skill development and capability enhancement for future growth. Overall, our work aims to create a thriving and interconnected community that contributes to the city's economic prosperity and cultural richness.

Significant negativeeffects and mitigation

Concentrating on economic sectors with lower value might draw away attention and resources from those sectors capable of delivering higher long-term value to the city.

Capital Projects

Operating Projects over $250k per year

ProspectiveStatement of ComprehensiveRevenueand Expense

Explanations of differences between the10Year Plan 2024-2034 and the equivalent years of theAnnual Plan 2023-24 – City Development

Revenue – City Development

Revenue has increased by $19 million largely due to an assumed NZ Transport Agency Waka Kotahi subsidy for capital spend related to Te Wai Takamori o Te Awa Kairangi – RiverLink.

Expenditure –City Development

Expenditure has increased by $22 million and is driven by higher operating cost allocation for internal support activities and interest costs linked to the higher capital spend.

Capital – City Development

Capital expenditure has increased by $68 million based on cost escalation across several existing projects mainly for Te Wai Takamori o Te Awa Kairangi –RiverLink.

Oranga Hapori me te Oranga

Ahurea - Social & Cultural

Wellbeing

Introduction to Social & Cultural Wellbeing Section

Social &Cultural Wellbeing in TeAwa Kairangi ki Tai Lower Hutt

Our city reflects a diverse community, with a quarter born overseas, 18 percent identifying as Māori, 12 percent as Pacific Peoples, and 15 percent as Asian. Additionally, over 20 percent speak two or more languages. 20 percent reside in the most deprived areas, while 25 percent live in the least deprived areas in New Zealand.

We want neighbourhoods and communities that are safe, connected, healthy, inclusive, and resilient. Our neighbourhoods and communities give us a sense of place and purpose. Council’s role is to support and enable neighbourhoods and communities to thrive.

Council staff alongside communities to support community-led initiatives and solutions to local issues. We use community forums and interactions to establish a community voice on specific issues and work on issues with groups and agencies across Te Awa Kairangi ki Tai Lower Hutt.

We operate a number of neighbourhood hubs and community halls, offering a mix of community-led, Council, and agency-led activities and services.

Social and Cultural outcome measures provide insight into the quality of our city's social and cultural wellbeing. Council initiatives, such as programs, events, and facility spaces, aim to impact these outcomes positively by fostering community participation, reducing social isolation, and enhancing overall wellbeing.

Social & Cultural Wellbeing

Dashboard

Infographics

Lower Hutt residents participation in groups and clubs (2022)( Quality of Life Survey )

Club or society – 23%

Faith based group – 21%

Neighbourhood group- 11%

Physical activity participation

Engaged in physical activity 5+ days a week in 2022 – 29%

Attendance at school

Rate per 1,000 students (2021 school year)

Stand downs- 31

Suspensions -2

Exclusions – 0.5

School leavers

Highest NCEA level attained by Lower Hutt school leavers (Education Counts)

with NCEA level 1 - 10.36% (2022 School year)

with NCEA level 2- 23.97% (2022 School year)

with NCEA level 3 or higher- 17.65% (2022 School year)

with University Entrance – 37.14% (2022 School year)

Early childhood education in Lower Hutt

Waiting time for enrolling in early childhood education service

No wait – 30% (2022 School year)(Education Counts)

Up to 1 month – 7% (2022 School year)(Education Counts)

1 to 6 months – 27% (2022 School year)(Education Counts)

Over 6 months – 21% (2022 School year)(Education Counts)

Stories for Social & Cultural Wellbeing

Celebrating theprogress of NaenaePool construction

The new Naenae Pool and Fitness Centre project hit a big milestone at the end of 2023 as our contractors finished the construction of the main steel structure. Everything's on track, and we're expecting the new facility to be officially launched to the community mid to late 2024.

What's great about this project is that the pool building is designed to be super eco-friendly. It's set to be the first aquatic centre in New Zealand to get a Green Five Star rating. This means it's going to cut down on emissions by 50% compared to the old Naenae Olympic Pool.

Alongside the pool, there's a new community centre in the old post office building, which is a special spot with a Heritage Category 1 tag. We’re also planning to give a facelift to the North-East corner of Walter Mildenhall Park. All these projects are going to bring new life to Naenae's town centre.

So, not only are we getting a revamped place to swim and stay fit, but we're also doing it in a way that's kind to the environment. Plus, with the new community centre and park improvements, Naenae is on track to have a vibrant and lively centre once again

Subsections for Social & Cultural

Wellbeing

Hō mātou rangapū hapori me te mahi ngātahi | Community partnering and support

Statements of Service Performance

What wedo

Ensuring the prosperity of our city hinges on the creation of secure, interconnected, healthy, inclusive, and resilient neighbourhoods and communities. Recognising the important role communities play in fostering a sense of belonging and purpose, Council is committed to supporting local groups to improve their overall wellbeing.

Through our hubs, recreation, and digital connection, community and agency initiatives we actively support wellbeing-focused services and programs. Collaborative initiatives aimed at enhancing social and cultural wellbeing play a crucial role in fostering community connectedness and a sense of belonging. Council’s role is to oversee the implementation and ongoing review of the Homelessness Strategy for Lower Hutt. We collaborate closely with partners and service providers to address homelessness effectively, with a particular focus on supporting individuals and families experiencing homelessness.

Why wedo it

Our commitment to community wellbeing is seen through collaborative efforts with local communities to facilitate and support local initiatives. We want to help establish a collective community voice on specific issues and foster collaboration with groups and agencies across Te Awa Kairangi ki Tai Lower Hutt.

Council’s facilities such as hubs contribute to the wellbeing of our people and vitality of the city by:

• providing recreation opportunities that enhance individual health and wellbeing, including personal development and quality of life; and

• attracting visitors and therefore providing economic benefits to the district.

A primary objective is to ensure that individuals and families facing homelessness have the necessary support and resources to secure stable housing. We prioritise prevention efforts to minimise the occurrence of homelessness and strive to create a community where everyone has access to safe and secure housing.

Significant negativeeffects and mitigation

Activities that facilitate gatherings and involve public spaces can have adverse effects, exposing participants to inherent risks. Certain programs and services offered at community hubs may potentially pose risks of injury to participants. Nonetheless, these risks are mitigated by the presence of trained staff. Systems are in position to regulate the rental and utilisation of community facilities, ensuring community safety.

Key PerformanceIndicators

Communitypartneringandsupport

Capital Projects -Community partnering and support

ProspectiveStatement of ComprehensiveRevenueand Expense - Community partnering and support

Explanationsof differences between the 10 YearPlan 2024-2034 andthe equivalent years of the Annual Plan 2023-24 - Communitypartnering and support

Revenue - Community partnering and support

No material variance.

Expenditure -Community partnering and support

Expenditure has increased by $33 million and is driven mainly by higher operating cost allocation for internal support activities and depreciation cost linked to the updated capital programme.

Capital -Community partnering and support

Capital expenditure has increased by $2.6 million based on investigation and updated cost estimates for the required capital works.

Papa rēhia me ngā whenua tāpui |

Open spaces, parks and reserves

Statements of ServicePerformance

What wedo

We are responsible for creating an attractive living environment in Te Awa Kairangi ki Tai Lower Hutt. This is seen through the provision, development, maintenance, and protection of open spaces, parks, reserves, sportsgrounds, street gardens, and street trees.

These areas not only enhance the aesthetic appeal of our city but also serve as important venues for recreation, gatherings, and informal social occasions.

Why wedo it

Council understands the impact of sport and recreation on the wellbeing of individuals, both physically and psychologically. We actively contribute to the development and maintenance of an extensive reserve network. These reserves not only foster a healthy natural environment but also serve as a platform for bringing people together for social activities. Through sportsgrounds, civic parks, neighbourhood parks, bush reserves, cemeteries, playgrounds, the foreshore, street trees, and gardens, we strive to create a pleasant environment accessible to the entire community.

For example, in Council’s bush reserves, we focus on creating connected native habitats that host a diverse range of native species. This collaborative effort aligns with the broader initiatives of entities such as Greater Wellington Regional Council and the Department of Conservation (DOC), collectively contributing to the preservation and enhancement of our natural heritage.

Significant negativeeffects and mitigation

Places where people gather can have drawbacks and expose individuals to the typical risks of public spaces. Certain recreational areas and programs provided might pose potential risks of injury to participants. However, we work to minimise these risks by adhering to safety standards. Additionally, we have procedures in

place to handle any disturbances to plants and animals during construction or maintenance work.

Reserves Investment Strategy

The Reserves Investment Strategy recognises the incredible opportunity we have to provide better quality green spaces to help address the effects of growth and intensification in our city. Within the Strategy you’ll find a proposed project list for the next 10 years. These projects will be funded through Reserve Financial Contributions, enacted under the Resource Management Act and District Plan. Budgets allocated to each project are estimates only and may change based on further community feedback and design.

Key PerformanceIndicators

OpenSpaces,ParksandReserves

PerformanceMeasure Reporting frequency Target 2024-25

Weprovideleisureandrecreationalopportunitiestoourcommunity:

Number of days Council owned/maintained artificial turf sports fields are closed (due to maintenance issues)

Number of days Council owned/maintained grass sports fields are closed (due to maintenance or drainage issues)

Target202434

Quarterly ≤ 20 days ≤ 20 days

Quarterly ≤ 10 days ≤ 10 days

Capital Projects -Open Spaces, Parks and Reserves

ProspectiveStatement of ComprehensiveRevenueand Expense - Open Spaces, Parks and Reserves

Explanations of differences between the10-year plan 2024-2034 and the equivalent years of theAnnual Plan 2023-24 - Open Spaces, Parks and Reserves

Revenue - Open Spaces, Parks and Reserves

Revenue has increased by $7.3 million largely due to financial contributions for reserves assumed to continue at the actuals recovered in recent years and changes to fees and charges to offset rising costs across the activity.

Expenditure- Open Spaces, Parks and Reserves

Expenditure has increased by $3 million and is driven by the inclusion of $6 million for the Petone Wharf demolition plus cost escalations for operating

budgets offset by reduction in depreciation and cost allocation for internal support activities.

Capital - Open Spaces, Parks and Reserves

Capital expenditure has decreased by $18 million based on investigation and updated cost estimates for the required capital work programme including removal of the Petone Wharf project.

Ngā herengatanga, auahatanga, akoranga me ngā mahi a te rēhia |

Connectivity, creativity, learning and recreation

Statements of ServicePerformance

What wedo

Council plays an important role in providing spaces and facilities that serve as hubs for connection, creativity, learning, and enjoyment. Our extensive network of swimming pools, fitness centres, art spaces, and museums form the beating heart of the communities they serve.

Council's Aquatic team enhances community wellbeing through six facilities. Services include swimming pools, fitness suites, Swim City Swim School, and related programs.

The facilities provide spaces where residents and visitors can recreate, relax, connect, improve fitness and health, build water confidence and the ability to swim, and have fun.

Why wedo it

Overall facilities contribute to enhancing cultural life, diversity, and wellbeing. They foster civic pride and promote strong community values. This focus on community strength and resilience ensures a sustainable and prosperous future for our city.

Council focuses on providing high-quality library services and museums stems from the belief that everyone should have access to information, knowledge, arts, and culture. By offering these resources, we aim to support and enrich individuals and the broader community.

Recognising the positive impact of recreation, sport, and fitness on people's lives, we ensure the provision of high-quality services at a cost that helps make them accessible for the entire community.

Aquatic and fitness facilities contribute to the wellbeing of our people and vitality of the city by:

• increasing social cohesion and people’s sense of belonging and healthy communities that can result from the social interaction that occurs at aquatic facilities.

• providing learn to swim programmes (particularly for children) which is considered a vital public service to promote safety and prevent accidental drowning.

Significant negativeeffects and mitigation

Activities that facilitate gatherings and occur in public spaces can sometimes have adverse effects, exposing participants to inherent risks. Certain pool programs we offer may potentially pose risks of injury to participants. However, these risks are minimized with the presence of trained staff. Systems are in place to regulate the rental and usage of community facilities, ensuring community safety.

Key PerformanceIndicators Connectivity,

Capital Projects -Connectivity, creativity, learning and recreation

ProspectiveStatement of ComprehensiveRevenueand Expense -

Connectivity, creativity, learning and recreation

Explanations of differences between the10Year Plan 2024-2034 and the equivalent years of theAnnual Plan 2023-24 - Connectivity, creativity, learning and recreation

Revenue - Connectivity, creativity, learning and recreation

Revenue has increased by $3 million largely due to changes to fees and charges to offset rising costs across the activity area.

Expenditure- Connectivity, creativity, learning and recreation

Expenditure has increased by $22 million driven by additional resourcing put in place, higher interest and depreciation costs linked to the capital spend, offset by reduction in cost allocation for internal support activities.

Capital - Connectivity, creativity, learningand recreation

Capital expenditure has increased by $41 million based on investigation of asset management requirements and updated cost estimates for the required programme of works.

Kāwanatanga, ko te rautaki me ngā kīwei o te kete | Governance, strategy and partnerships

Statements of ServicePerformance

What wedo

Council plays a crucial role in local democracy, defined by the Local Government Act (2002), and has two primary objectives;

• Firstly, we are committed to enabling democratic local decision-making.

• Secondly, we are dedicated to promoting the wellbeing of communities through a sustainable development approach.

Our aim is to empower diverse communities to participate actively in local decisions. This is how we ensure democratic processes are upheld and remain accountable to our community.

We provide elected members with the essential support and professional advice they need to make sound decisions for the city. Our dedication to democratic principles isn’t just a legal requirement; but a representation of our aspirations for a city that’s inclusive and promotes active public involvement.

Why wedo it

Council’s governance activities are driven by a commitment to enhancing the wellbeing of our communities both in the present and for future generations. The Local Government Act (2002) requires us to recognise and respect the principles of the Treaty of Waitangi, emphasising the Crown's responsibility to incorporate these principles. As a result, our partnership with Mana Whenua is essential in meeting our obligations and fostering a city where everyone thrives.

To achieve these goals, we engage in comprehensive governance-related services, strategic planning, policy development, and continuous monitoring and reporting. Our work aims not only to fulfil legal obligations but to create an

inclusive, resilient environment that supports the diverse needs of our community members.

Key PerformanceIndicators

Governance,strategyandpartnerships

Ourcommunityisprovidedwiththeinformationtheyrequireto participateinthedemocratic process:

Percentage

Council agendas made available to the public within statutory timeframes (four clear working days under Council's standing orders)

Residents feel they have enough information to participate in democratic process

Capital Projects -Governance, strategy and partnerships

There are no capital projects associated with this activity.

ProspectiveStatement of ComprehensiveRevenueand Expense – Governance, strategy and partnerships

Explanations of differences between the10-year plan 2024-2034 and the equivalent years of theAnnual Plan 2023-24 - Governance,strategy and partnerships

Revenue

No material variance.

Expenditure

Expenditure has increased by $13.2 million and is driven by higher operating cost allocation for internal support activities, higher employee costs and cost escalations across other operating costs.

ProspectiveStatement of ComprehensiveRevenueand Expense - Corporate Services

Explanationsof differences between the 10-year plan 2024-2034 and the equivalent years of the Annual Plan 2023-24 - Corporate Services

Revenue - Corporate Services

Revenue has increased by $614 million largely due to assumed rates revenue increases.

Expenditure -Corporate Services

Expenditure has decreased by $11 million and is driven by cost savings assumed in budgets.

Capital -Corporate Services

Capital expenditure has increased by $0.9 million based on an updated capital programme.

Ngā whakatau me ngā whakapae o te kawe ratonga Service performance judgements and assumptions

PBE FRS48 ServicePerformanceReportingstandard Introduction

Council is responsible for democratic and effective decision making in Te Awa Kairangi ki Tai / Lower Hutt. Council is also bound by the Local Government Act 2002 to promote the social, economic, environmental, and cultural wellbeing of the city's current and future communities.

How Council selects performancemeasures

In the Council's 10-year plan, significant steps have been taken to evaluate their performance in various ways. This evaluation involves summarising overall performance, assessing the effectiveness of different activities, and providing yearly reports

One major decision for the Council is ensuring that the goals set for our services align with the criteria used to gauge our performance. Council closely examines how these goals and measurements align to ensure that the selected measurements truly reflect the quality of services within the community.

Council don't make these decisions in isolation. They seek input and feedback from people in our community, including residents, those who pay local rates, local boards, and other communities. They consider this input about our services and how to measure their quality. This feedback is collected during the LongTerm Plan, Annual Plan consultation process and through annual Resident Satisfaction Surveys.

The Local Government Act (2002) prescribes specific rules that require standard measurements for different types of activities. This allows people to compare services across Council. Council also takes advice from the Department of

Internal Affairs (DIA) on how to measure certain things following specific guidelines, (such as processing a certain percentage of building permits and resource consents within 20 days). These decisions are essential for ensuring that our method of assessing our services aligns with community preferences, our objectives, and the law.

In addition to the selection of performance measurements, Council also make decisions about how they measure, compile, and present information about the quality of our services. They have a consistent way of reviewing and selecting performance measures. This method looks at why Councils are spending the money they receive now and what they aim to accomplish with it. It helps determine performance measures. They check each measure using certain rules that make sense and show our progress well.

Council have taken steps to guarantee that these performance measures sufficiently contribute to tracking our progress in achieving the objectives outlined in the 10-year long plan. The Council's Service Performance Indicators are found in the "Our Performance" section.

Resident satisfaction surveys

Council uses surveys to help us understand what customers, local residents, and the community think about their services. They are different from surveys that only ask if people are happy with our specific services. Creating these surveys is a meticulous process. Skilled professionals, craft them using the most effective survey methods. Council ensure that the questions are straightforward, avoiding any bias that might influence people's responses. In situations where it's crucial to maintain complete fairness, Council collaborate with impartial organisations to conduct the surveys.

The insights gained from these surveys serve enhance our procedures and making our services even better in the times ahead. Council takes great care in selecting the individuals to participate in our surveys, aiming for a diverse representation that closely mirrors the community of Te Awa Kairangi ki Tai Lower Hutt. They may make slight adjustments to survey results to ensure accurate reflection of the characteristics of the targeted groups. Additionally, when applicable, they employ advanced statistical techniques to assess the significance of survey findings. In cases where the results exhibit uncertainty due to low response rates, Council is transparent in communicating this to ensure full awareness among their audience.

Council use a number of expert survey techniques to make sure their surveys are as good as they can be. For example, surveys about their services are done more frequently because they want to keep improving their services.

Surveys seeking generally opinions are done once a year to get an overall picture of what people think at that particular time. Council also runs surveys with the general population, like the Quality of Life survey, to find out what people think about life in Te Awa Kairangi ki Tai Lower Hutt.

These surveys see the effectiveness of how services are and how they impact people's lives. These surveys help understand how well services are performing and give an idea on how to make them better. It helps to make good decisions based on real information from the community.

How Council report on performancemeasures and results

The year-end results for performance measures are reported in annual reports. Results are reported in a table under the heading Key Performance Indicators for each activity area. Comparative results are provided for the prior year to give a comparison at a similar point in time and show trends. Where a standard for a performance measure has not been met, or there is a significant variance, an explanation is included.

External implications for statements about performance

The introduction of the (the standard) brings more rigorous requirements for reporting service performance to enhance accountability and decision making. External factors beyond an entity’s control, such as government policy changes, travel restrictions, and economic conditions, can influence service performance results.

Hutt City Council utilises non financial Key Performance Indicators (KPIs) based on the 2024-2034 Long Term Plan, ensuring alignment with Council priorities and performance improvement. These KPI’s measure outcomes directly controllable by the Council.

PBE FRS 48 encourages presentation on clear and meaningful service performance information alongside financial statements, emphasising the application of qualitative characteristics and constraints in reporting. Reporting consistency and the disclosure of significant judgements affecting performance information are critical aspects of the Standard. HCC's impact assessment highlights expected changes and required disclosures due to these new reporting standards.

Disclosureof key judgements for 2024-34

In our previous annual reports, Council not only included disclosures about Key Performance Indicators (KPIs), but they also provided additional information on non-financial matters. This included details about the number of complaints received regarding water supply, wastewater, and stormwater KPIs, which were assessed by external auditors. Council also address concerns related to the reliability of the water supply, particularly regarding the percentage of water loss.

The report emphasised the Government's Three Waters Reform program and discussed uncertainties related to measuring greenhouse gas emissions. Council continues these disclosures and have included other important judgments and recommendations from auditors. This involves sharing information about our reasoning behind selecting specific KPIs, among other relevant matters.

Entities share the important decisions they make when reporting on their performance according to specific rules. Several factors determine when these decisions are shared, including how well the performance information aligns with the entity's goals and strategies, its internal consistency, and the level of freedom the entity possesses in selecting and presenting this information.

Other factors include the influence of certain attributes, such as importance and cost, and how user input affects the reporting. The entity also explains the decisions made when comparing past information or describing various elements and how they select measures and present their performance data.

Statement of compliance

This plan of the Hutt City Council has been prepared in accordance with the requirements of the LGA which includes the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP).

The Hutt City Council service performance has been prepared in accordance with the Tier 1 PBE financial reporting standards, which have been applied consistently throughout the period and complies with PBE financial reporting standards.

Ngā rautaki, ngā kaupapa here, me

ngā whakapae - Strategies, policies and assumptions

Significant forecasting assumptions

Assumption Risk Level of uncertainty

Post COVID-19 environmental impacts

The Long Term Plan is prepared on the basis that Council services are operating in an environment not impacted directly by COVID-19.

While COVID-19 itself is no longer a key risk, there are ongoing impacts of Covid such as increased inflationary pressure, resourcing shortages, higher insurance costs, supply chain issues and rising interest rates across the global economic environment This is exacerbated by the impacts of the changing climate.

Specific key assumptions have been made around interest rates, inflation, climate change and insurance costs related to natural disasters below.

Disruption caused by COVID-19 or a similar pandemic will result in changes or closure of Council operations, resulting in reduced revenue or delays in projects.

Wider economic disruption will impact the affordability of rates and levels of nonpayment.

Low

Reason for the uncertainty

Pandemic events are by nature unanticipated; however any uncertainty will be higher in the short term and decrease over time.

Financial impact of the uncertainty

Disruption to Council operations may result in reduced revenue from fees to fund Council activities.

Project delays may result in challenges on delivering project timeframes and budgets.

Assumption Risk Level of uncertainty Reason for the uncertainty Financial impact of the uncertainty

Inflation

Annual inflationary increases are based on the annual Local Government Cost Indices (LGCI), as published in the Final October 2023 BERL Report. LGCI for each year is detailed below.

Actual LGCI for the year significantly differs from that included in the budgets.

Moderate The LGCI estimates used are the forecasts issued by BERL in 2022.

Employee cost assumptions

The salary increase assumption is 4.5%, 3.5% and 3.5% for the first three years of the Long Term Plan with 2.5% for years 4-10. This is to enable Council to retain staff and meet market conditions as well as our obligations as a Living Wage accredited employer. This is offset with a vacancy savings assumption of 6%.

Growth Council projections for income from rates revenue include an

The actual employee costs are significantly different from the projected costs or vacancy savings are not realised.

Moderate Uncertainty exists as the ability to attract and retain staff is dictated by the labour market conditions.

Unanticipated inflationary pressure could arise outside of the forecast LGCI range which is not included in the Long-term Plan 2024-2034 resulting in higher costs to deliver services or projects.

The actual rates for growth are significantly

Moderate Uncertainty exists as the projected increases in population and the

Higher employee costs or lower vacancy savings will result in unbudgeted financial pressures.

Rates of growth that vary significantly from the assumed level will result in

Assumption Risk Level of uncertainty

allowance for growth and inflation. Average growth of 1.1% per annum in the rating base is assumed in year 1 with 0.9% in out years. This is considered to be a reasonable estimate given population growth forecasts and increases in the number of households in Lower Hutt.

Population growth

The population of the city at the 2018 Census was 104,532.

Our current population at the 50th percentile is estimated at 113,034 (8% increase) and is projected to reach 125,000 around 2033 and 149,760 in 2053.

Interest rates

The long-term cost of borrowing is assumed to be an average of 5% through the period of the Long-term Plan.

Due to the volatility in market conditions this will be reviewed and updated throughout the planning process.

different from the projected rates of growth.

Reason for the uncertainty

associated number of houses may not be realised.

Financial impact of the uncertainty

unbudgeted financial pressures.

Population growth rates exceed or are less than forecast.

Moderate

Uncertainty exists as the projected increases in population and the associated number of houses may not be realised.

Rates of growth that vary significantly from the assumed level will result in unbudgeted financial pressures.

Interest rates and swap rates are significantly different from those budgeted.

Moderate Council has interest rate swaps in place to minimise the fluctuation of interest rate movements. As debt projections are forecast to increase significantly over the 10 year period there will be further interest rate swaps to be put in place; there is uncertainty about the future market conditions that will exist.

Higher interest rates provide the ability to earn higher income from cash holdings. Higher interest rates may lead to higher interest cost on debt.

Based on Council’s proposed borrowings profile, a 0.1% movement in interest rates will increase/decrease annual interest expense by between $500k to just over $1M per annum across the 10-year period of this plan.

The impact of this annual change would translate to an indicative rates impact of around 0.4% - 0.7%.

Assumption Risk Level of uncertainty

Natural disasters and insurance costs

Council has comprehensive insurance policies, which are designed to provide substantial, but not total, cover from the financial impact of natural disasters. The level of insurance cover is calculated by extensive loss modelling, which estimates the maximum probable loss.

Council collectively purchases insurance with the Wellington Councils Insurance Group (includes Kāpiti Coast District, Porirua City, Upper Hutt City and Greater Wellington Regional Councils).

Asset revaluation

Council is planning to revalue asset classes in May 2024 in accordance with its accounting policies, and the estimated results of the revaluation have been applied to financial forecasts from 1 July 2025.

Council assesses the carrying value of its revalued assets annually to ensure they do not differ materially from the assets’ fair value.

The damage exceeds the cover obtained by Council and its ability to fund the repair/reconst ruction out of normal budgetary provisions. The cost of insurance increases more than budgeted.

Reason for the uncertainty

Moderate The timing or scale of a natural disaster event cannot be predicted. Should an event occur, there is uncertainty over whether the city is able to recover sufficiently or quickly enough in order to prevent long-term adverse effects on the population or local economy.

Financial impact of the uncertainty

The damage exceeds the cover obtained by Council and its ability to fund the repair/reconstruction out of normal budgetary provisions. The cost of insurance increases more than budgeted.

Asset revaluations differ from those budgeted; depreciation charges resulting may differ.

Moderate

Market buoyancy and property pricing influences the value of the property assets. Contract and construction prices influence the value of infrastructure assets.

A higher level of asset valuation means more depreciation to use to fund asset renewals and some improvements.

Lower levels of valuation and depreciation reduce Council’s ability to fund capital from depreciation and place more reliance on funding improvements from other funding mechanisms, such as debt or rates.

Depreciation rates are contained in accounting policies

Assumption Risk Level of uncertainty Reason for the uncertainty Financial impact of the uncertainty

Revaluations are carried out every three years and this is factored into the financial projections based on an estimated rate of 5% based on information received from our valuers. For further information see council’s accounting policies.

Asset sales

A small amount of asset sales is planned for surplus land following completion of Council projects.

Asset lives

The estimated useful lives of significant assets will be as shown in the Statement of Accounting Policies. The assets will continue to be revalued every three years. It is assumed that assets will be replaced at the end of their useful life.

Ranges in average ages relate to the variability of component parts of assets and changing material and design of assets over time.

Property prices are higher or lower than the planned sales amount

Assets wear out earlier or later than estimated.

Moderate Market buoyancy and property pricing influences the value of the property assets.

A higher sales price would result in a gain on the sale made by the Council. Lower prices would result in greater costs having to be absorbed by rates.

ModerateLow

The level of certainty of useful lives of assets ranges across different asset types.

Underground assets that are not easily accessible have lower levels of confidence on their current condition and therefore expected remaining useful lives whereas aboveground assets have more certainty on their condition assessment and the useful life.

Depreciation and interest costs would increase if capital expenditure was required earlier than anticipated.

Assumption Risk Level of uncertainty

Asset condition

The condition of the network is expected to improve over the period of the 10 Year Plan.

Assumptions have been made regarding the average useful lives (per assumption above) and remaining lives of the asset groups, based on the current local knowledge and experience, asset condition information and historical trends.

Sources of funds

See Council’s Revenue and Financing Policy, included in the 10 Year Plan 20242034.

Detailed condition assessments for underground three waters assets may reveal that they have aged faster than our theoretical modelling anticipates.

Moderate

Reason for the uncertainty Financial impact of the uncertainty

By their nature underground assets are not visible and therefore condition information of these assets is not easily obtainable.

In the Long Term Plan additional funding continues to be assigned for investigative works to ensure we have a sufficient understanding of our underground assets.

Assets that have aged faster than planned may result in the requirement for renewal work to be brought forward to avoid the impact of asset failures.

NZ Transport Agency - Waka Kotahi

The Waka Kotahi New Zealand Transport Agency subsidy is 51% for both operating and capital works. For projects not fully subsidised by NZTA, a lower subsidy applies.

There is uncertainty around funding priorities based on the recent change in government.

Current funding patterns and subsidy percentages may change during the life of the Long Term Plan.

High

The impact of funding priorities on projects may change criteria based on the Government Policy Statement on land transport (GPS) which is not expected to be finalised ahead of adoption of the Long Term Plan 2024-34

Any reduction in subsidy rate would lead to a reduction in the work programme, reprioritisation of projects or Council having to fund a higher share of the costs.

Assumption Risk

Fees and charges

Fees and charges are expected to be increased at a minimum to cover the costs of operating the activity (in line with the Revenue and Financing policy) and factor in rising costs.

Fees and charges do not increase in line with the Revenue and Financing policy recovery rates.

Central government funding

Budgets have been prepared including funding from the COVID-19 Response and Recovery Fund for Naenae Pool ($27M) and Tupua Horo Nuku (Eastern Bays Shared Path) ($30M).

Budgets also included funding from the Infrastructure Acceleration Fund of $99M towards growth wastewater and stormwater projects on the valley floor.

Level

of debt

The Financial Strategy sets limits on net debt at 250% of total revenue (excluding vested assets) for the period of the Long Term Plan. Net interest must be less than 15% of revenue

Level of uncertainty

Reason for the uncertainty Financial impact of the uncertainty

Low

Funding requirements are not met and therefore funding from central government does not eventuate.

Low

Funding choices for individual activities lead to lower than required increases in fees and charges.

Fees and charges recovery rates are estimated at a point in time and may differ as the year progresses and other overhead costs increase.

Receipt of this funding is dependent on continued government support for the scheme, as well as Council meeting specific milestones as the projects are completed.

Cost increases at a higher rate than the increases set for fees and charges would result in the need for funding from other sources such as rates to cover shortfalls.

Higher debt levels lead to higher servicing costs.

Moderate Council’s ability to service debt from existing funding sources reduces.

Any change in the level of grants received would require the funding gap to be made up from borrowing or for projects to reduce in scope.

Change in the capital programme, the service levels offered by Council or rates revenue requirements may lead to a change in debt levels.

Assumption Risk Level of uncertainty

(excluding vested assets) and less than 25% of rates revenue.

Climate change

The changing climate will affect the city and Council infrastructure due to a wide variety of climate impacts.

Climate change impacts such as sea-level rise and increased rainfall intensity will impact on the city, including Council infrastructure.

This has flowon effects, such as capital and operational cost increases to maintain functional infrastructure.

Social, economic, cultural and environmental impacts will also be felt by residents, businesses and visitors.

Water Services reform

The Water Services Reform programme was led by the previous government and there is some uncertainty due to

Reason for the uncertainty

Financial impact of the uncertainty

Moderate In the short to medium term (10–30 years), impacts are relatively certain (e.g., the sea level is rising slowly), but resulting impacts are still fairly limited. Impacts are less certain in the longer term, but likely to be more severe.

The timing of when climate change impacts will significantly impact the city and Council’s infrastructure is relatively uncertain. In addition, if global emissions are not reduced quickly, the scale of impacts is likely to increase beyond those that are already reasonably certain.

Initiatives to optimise environmental outcomes for Lower Hutt inhabitants may be too expensive to progress in a financially constrained environment; but lack of investment now is very likely to lead to worse outcomes in the future (e.g. reducing emissions quickly comes at a cost but can avoid those climate impacts that are not yet locked in).

Uncertainty of the timing and ultimate scale of impacts will affect the timing and scale of forecast capital and operational expenditure, asset impairment and reduced useful life of infrastructure assets in areas vulnerable to the harm of climate change-related events.

The legislation enacted by the new government could result in a significant change in the Low

There is a high degree of uncertainty around the nature of this change.

Any resulting change may impact revenue, expenditure assets and liabilities that Council presents, however the activity will continue, led by any new entity created.

Assumption Risk Level of uncertainty Reason for the uncertainty Financial impact of the uncertainty

the change in government who have repealed the legislation around reform but new legislation is not yet enacted.

It is important that planning for the council’s three waters assets is continued in the interim and included in the Long-term plan. On this basis, the Longterm Plan has been prepared with Council’s three waters services included.

We have continued to include waters in all the years of the draft Long Term Plan 2024-34 to ensure we can provide certainty to our communities around this investment and the rates impact.

service delivery model for Water services, for e.g new council controlled entity for the Wellington region.

Capital programme achievability

Our plan largely assumes that the programme can be achieved over the life of the plan with an adjustment to budgets to reflect 75% funding and delivery assumption per year.

Three Waters programme is assumed to be 100% delivered for the first three years of the

The planned capital programme is not able to be fully achieved over the life of the Long Term Plan.

The increase in demand on contractors to achieve the programme may result in

High While investments have been made in funding resources to support delivery and taking actions alongside our partners to manage the increased expenditure effectively, there are risks due to the increase in scale of the capital programme that there is not sufficient contractor availability

Delays in projects can result in additional costs, including costs of retaining project staff for longer periods and inflationary impacts.

The additional demand for contractors from the Council and in the region may impact market conditions and increase the cost of obtaining contractor services.

Assumption Risk Level of uncertainty Reason for the uncertainty Financial impact of the uncertainty

plan and reverts to 75% delivery per year thereafter.

Council is projecting a significant increase in its capital programme to achieve the outcomes proposed in its Long Term Plan.

cost increases.

or internal resource to support the delivery of the programme within the timeframes and projected costs included in the Long Term Plan.

Financial strategy

Draft Financial Strategy Long Term Plan 2024-2034

Summary and overview

Council’s Financial Strategy is based on a number of important principles that provide the foundation for prudent sustainable financial management. These principles can be summarised as:

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

• maintaining prudent borrowing levels

• achieving a balanced operating budget and ensuring that everyday costs are paid for from everyday income

• careful consideration of the affordability of rates charges

• delivering services effectively and efficiently, and

• strengthening Council’s financial position in the long term

• maintaining principle of “growth pays for growth”

Our financial strategy focuses on strong fiscal management while addressing growing demands for increased capital investment in core infrastructure assets. Council is proposing a capital investment spend of just o$2.6 billion for the 10 years of the plan, 63 per cent of which is for three waters and 21 per cent for transport. This investment level is a significant increase of $1.2 billion compared to Long term plan 2021-31, largely due to the need to support investment in a growing city, address the infrastructure deficit with ageing assets and the impact of significant cost escalations due to a challenging economic context.

Borrowings are a key component of recognising the intergenerational equity principle, whereby the cost of long-term assets should be met by ratepayers over the life of those assets. It is important that we prudently manage the amount of borrowings, while enabling the step-up of investment in infrastructure assets. Net debt of $0.3 billion at June 2023 is projected to increase to just over $1 billion by 2030. Council has reviewed the borrowing limits and increased them to enable the funding of the larger investment programme (refer table 1). The net debt to revenue ratio is set at a limit of 250%, which is within the Local Government Funding Agency debt covenants requirements of a limit of 280%. The Council has set the limit lower at 250% as it considers it essential to maintain headroom and the ability to fund the impacts of significant natural disasters should they occur, such as extreme weather events or earthquakes

The proposed investment in three waters is lower than the levels recommended by Wellington Water Limited (WWL), which would have investment increasing by a further $1 billion. This significantly higher investment level would result in borrowing limits being exceeded if there were not offsetting mechanisms applied, such as much higher rates increases or budget cuts to other

services (please refer to the Consultation Document for further information). With the proposed lower level of investment included in this draft plan, the Council is effectively applying an affordability lens, which constrains the rates revenue increases and in turn limits the amount of debt we can take on. There are a range of service level impacts and risks related to the proposed investment, which are outlined in the Infrastructure Strategy.

Annual income of around $250 million is largely applied to fund operating costs for services delivered by Council and to maintain assets. A guiding principle of this financial strategy is the importance of a balanced operating budget. This means ensuring that projected operating revenue is set at a level sufficient to meet projected operating expenses, and that current ratepayers are contributing an appropriate amount towards the cost of the services they receive or are able to access; i.e., ‘everyday costs are paid for from everyday income’.

We are facing many cost pressures largely due to high inflation, interest rates, insurance, higher construction and resourcing costs. These significant economic pressures are set to continue to impact us and all councils up and down the country.

The 10-year plan projects that Council will not achieve the balanced operating budget target for a number of years, until 2029-30 (see Figure 17). This projected balanced operating budget position provides a pragmatic balance between managing the pressures on current ratepayers and ensuring the Council remains financially sustainable into the future, whereby the actions of today do not significantly impact unfairly on ratepayers in the future. This approach is financially prudent and in line with the legislative requirements, due to the longer-term plans for rates revenue generation and repayment of debt occurring to avoid a significant impact on future ratepayers. The level of funding also enables Council to maintain its levels of service and undertake asset renewals and is consistent with the Revenue and Financing Policy.

Council has considered the level of rates revenue in light of a number of factors, including affordability to ratepayers, the legislative requirement for financial prudence and the economic environment. The Council has a high dependency on rates as a principle revenue source, and there are few options available to offset cost pressures.

Over the course of developing this 10-year plan a range of savings were identified and applied to budgets totalling $34.8M over the period. These are ongoing and reduce the rates funding requirement over the 10-year period, the projected rates revenue increases for ratepayers range between 16.9 per cent and 7.2 per cent. Based on the rates revenue setting proposed, an overall increase in rates charges for 2024-25 is estimated at 16.8% for an average residential property. The rates revenue rise equates to an average increase of $10.83 per week per household or an average increase of $563 per annum. Investment in Three Waters infrastructure makes up around 45% ($251) of the average $563 per annum rise. The remaining $312 covers cost increases for all the other services provided (including roading, parks, community facilities, rubbish, recycling etc.). For an average commercial central property the increase is $63.04 per week

Section A: Introduction and setting the scene

What is a financialstrategy?

Our financial strategy is intended to guide the decisions we make now and, in the future, to enable Council’s contribution to the vision for Lower Hutt. The financial strategy builds on our current financial position and sets out our overall financial goals for the 10-year plan. Our strategy focuses on strong fiscal management while addressing growing demands for increased capital expenditure in core infrastructure assets such as the wastewater, water supply, stormwater and transport networks.

The Local Government Act 2002 (LGA) requires us to manage our revenues, expenses, assets, liabilities, investments and general financial dealings prudently. In doing so, we’re aware of the impact our costs and funding decisions have on our community. We’re particularly concerned about the affordability of Council services, and have carefully considered this in developing our strategy, in particular regarding the impact of rates charges.

Setting thescenefrom theAnnual Plan 2023-24

Annual Plan 2023-24 saw council dealing with unprecedented levels of cost escalations, increasing the tension on our ever-challenging balance of debt and rates funding. Council made some tough choices to slow down some capital investment, implement savings and increase the fees and charges as well as rates revenue funding to better manage these cost pressures. It was apparent through this process that the rates and debt levels would continue to have to rise significantly in the short term in order to address the infrastructure deficit and battle high-cost escalations across council services. These challenges have carried over into the 10-year plan and are summarised below:

1. Infrastructure deficit – Council owns a lot of ageing assets which require significant investment. While investing in core infrastructure is critical for supporting a city that thrives, there is a need to balance investment in key projects against financial sustainability and rates affordability.

2. Affordability constraints - Council must consider carefully what it invests in to ensure the best return on investment for the community. We don’t want to put off intergenerational and strategic investments, but we do want to ensure we aren’t unnecessarily adding to people’s financial pressures. At the same time we also need to ensure we maintain the ability to pay for our everyday costs with everyday revenue, i.e. operational expenses are paid for by operating revenue.

3. Borrowing capacity – Due to the rising costs across the board, as well as the challenges around infrastructure deficits, the Council needs to consider the strategic outcomes it wants to achieve in the longer term and the best way to mitigate risks related to achieving those outcomes through prioritisation of the investment options.

Strategic context and links to key aspects in the 10 year plan

Significant forecasting assumptions – refer <link>

Infrastructure Strategy – refer <link>

Revenue and Financing Policy - revenue <link>

Section B: Our financial position leading into the preparation of the 10-year plan

As at 30 June 2024, the Council’s total assets are projected to be worth over $2.3 billion and include infrastructure assets, land and buildings; whilst total liabilities are projected to be around $0.6 billion and include borrowings and payables to suppliers.

In August 2023, Standard & Poors Global Ratings Agency affirmed the Council’s AA credit rating but adjusted the outlook from stable to negative; reflecting in particular the higher borrowings.

Financial trend information of some key indicators from 2018 to 2024 are shown in figures 1 to 4; these include capital investment, net debt, revenue and expenditure. Our most recent audited Annual Report, for the period ended 30 June 2023, showed that Council achieved income of $213M and incurred operating expenditure of $241M, with a net operating deficit of $28M (per balanced operating budget definition). This result excludes the unbudgeted gain on revaluation of financial instruments of $3.6M and capital contributions of $31M.

Section C: Financial strategy guiding principles for the 10-year plan

Our financial strategy is based on guiding principles which provide the foundation for prudent sustainable financial management, as detailed below.

Key financial Strategy guiding principles:

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

2) Fairness and equity

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

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

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

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

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

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

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

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

8) Distribution of benefits – consideration is given to the distribution of the benefits from Council activities over identifiable parts of the community, the whole community or individuals (users).

Where there are identifiable direct benefits the proportion of costsassociated with these benefits should be covered by the user(s).

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

10) Good financial governance and stewardship

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

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

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

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

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

Key considerations in developing the financial strategy:

A range of considerations have been applied to ensure the strategy meets the balanced operating budget and financial prudence requirements such as:

• A careful review of debt limit settings to ensure headroom is available to fund the impacts of a significant natural disaster, such as extreme weather events or earthquakes;

• The ability to fund the interest costs of debt;

• The approach to debt repayment with funding increased to support repayments;

• The approach to revenue generation being minimum increases to continue to fund services and meet cost pressures.

• The rates settings and limits imposed to meet rates affordability considerations;

• The review of projected depreciation expense and capital renewal expenditure, and the use of depreciation funding;

• A careful review of the balanced operating budget position (i.e. operating expenditure and operating revenue) and the long term broader financial impacts

Section D: Capital expenditure programme

Capital expenditure is categorised into renewals (renewing existing assets), service improvement (new assets that improve the services provided to the community) and growth (new assets required to accommodate growth within the city). This financial strategy focuses on strong fiscal management whilst addressing growing demands for increased capital expenditure in core infrastructure assets such as the stormwater, wastewater, water supply and transport networks.

Over the next 10 years, Council plans to spend $2.6 billion on capital investment, 63 per cent of which is in the wastewater, stormwater and water supply area, and 21 per cent on transport. This significant capital investment will be funded largely by borrowings. This is a significant increase in investment from the previous 10-year plan of $1.2 billion and reflects the need to meet community expectations for our growing city in the context of the infrastructure deficit and factor in cost escalation It should be noted that this higher investment is still lower than the recommended level by WWL for three waters. There is an option being consulted on with the recommended level of investment but would require higher rates increases to fund as we near our debt capacity constraints. There are risks associated with the lower investment as outlined in the Infrastructure Strategy. We need to remain mindful that although there is higher investment proposed under the preferred option, we still might not be able to get on top of the work required to prevent asset failure. While the focus of this plan is for 10 years, there are significant challenges beyond the period of this plan related to the deferred investment and how this will be funded.

Key investment in the plan includes:

1. three waters investment of $1.6 billion, which includes asset renewals of $939 million together with investments in reservoirs, a range of works to reduce flooding risks, works to improve environmental water quality, Infrastructure acceleration fund projects (stormwater and wastewater) and water meters etc. to name a few.

2. transport investment of $544M, including asset renewals of $149M together with investment for the Cross Valley Transport Connections project, Tupua Horo Nuku, Eastern Hutt road resilience etc.

3. investment in solid waste to the value of $58M, in city development to the value of $167M, in open spaces, and social, cultural and wellbeing to the value of $188M.

Total capital expenditure by council activity Figures 5, 6, 7 and 8 respectively show the cost of this programme by activity, spend per annum, the driver for the projects and the funding sources. This expenditure includes the cost of renewing existing assets that are coming to the end of their useful lives. It also includes the cost of improving existing assets and investing in new assets. Our asset management practices ensure we maintain service levels to at least current levels.

The significant increase in the capital programme, particularly in water services, also carries a level of uncertainty and risks to achievability. Wellington Water has been building capacity and capability over the last few years to improve delivery performance. Council has also been reviewing its organisational structure and making incremental changes through increased project delivery staff and the functions that support them. It is important to us that there are no delays to the programme as that may result in not meeting planned levels of service or greater costs in the long term.

Asset management

Infrastructure deteriorates as it ages, increasing the likelihood of failures and disrupting service to customers. These failures also increase maintenance, operations and customer service costs. Planning to renew infrastructure that is reaching or at the end of its life reduces the risk ofservice interruptions and minimises maintenance costs. Tosupport our budget forecasts, Wellington Water use age-based asset information to prioritise the areas most in need of renewals. Over the next 30 years, our goal is to reduce the renewals backlog and address future needs. Council is alsoworking to better understand the condition of our assets in order to reduce the level of uncertainty and improve our overall understanding of the condition and expected life of asset.

Three waters: We received advice on our three waters assets based on the current information available to Wellington Water Limited (WWL). We are proposing to include a significantly higher capital budget for the maintenance, operations and renewal of these assets based on this advice. We have not included budgets at the levels recommended by WWL due to the constraints on debt and rates funding. This means that the available budget will be used for the most urgent jobs/projects which could mean longer times to resolve and address non-urgent jobs/projects and issues being resolved at a slower rate. The budgeted spend is however expected to result in improvements to the three waters network over the 10 years and maintain current levels of service.

Transport: The Integrated transport strategy developed in 2022 has identified some key challenges for our transport network. This 10-year plan is a step towards addressing some of these and is expected to improve the overall condition of the transport network over the 10 years. Funding constraints have also played an important role in the planned investment for this plan. Furthermore, government priorities are not yet finalised and further changes may be required in future plans to reflect these priorities.

Renewals (looking after what we have)

It is important the Council continues torenew/replace assets to ensure our assets are fit for purpose and deliver the level of service that is required. Our asset management plans identify the timing for renewals based on the condition of assets. An ongoing programme of condition assessment helps to build a detailed picture of assets and the necessary investment.

Forecast depreciation could be considered a reasonable estimate of annual renewal costs. Ifover time, renewals expenditure is approximately equal to depreciation, it can be reasonably assumed that the assets and services that they are providing are sustainable. Depreciation is however based on a

number of assumptions and may not reflect the actual future asset renewal funding requirements (e.g., due to the long life of infrastructure assets, cost escalations, changes in scope or compliance requirements etc.).

Where there is surplus depreciation above the capital renewals level, this will enable debt to be repaid. New assets whichhave a long life will not generally require a replacement earlier in their life, so a depreciation surplus will be created which willenable debt to be repaid. The required funding will need to be borrowed when these assets come to the end of their useful life. The depreciation surplus would be dependent on the level of depreciation funding that is in place; for HCC this may be limited in the short to medium term but more certain in the longer term.

Based on current projections, while at an overall level the renewals are funded through depreciation (for the most part from year four onwards, refer figure 10) and any remaining surplus depreciation funded could be used to make debt repayments By funding renewal expenditure, together with moving to a balanced operating budget (see Section G), this enables a financially sustainable asset replacement programme.

Growth

The population of the city at the 2018 Census was 104,532 (Source StatsNZ).

The population is estimated to have grown by around 8,497 people, an 8 per cent increase to the 2023 figure. Further increases of around 11,817 (10% per cent) people is expected from 2023- 2033. The growth in households is projected to be about 4,217 (10 per cent) over the same period.

(Source Sense Partners)

Council’s asset management plans and infrastructure strategy have taken these growth forecasts into consideration, and our existing assets, together with the growth projects included in the plan, will ensure the city continues to meet the levels of service outlined in this plan. Total growth spend for the 10-year plan is $444M; this amount represents the growth portion of all capital projects. Council uses development contributions to allocate the costs of growth to ensure equity between developers and ratepayers. The projected revenue from development contributions is estimated at $172M over the period of the plan; this will be a funding source for the growth-related capital works programme. See the Infrastructure Strategy for further information on capital expenditure plans, together with asset information and service levels.

Section E: Operational expenditure

The Council is forecasting operational expenditure of $4.1 billion over the life of the 10-year plan, on average $408M per year over 10 years. This reflects the costs of continuing with the Council’s programme to prioritise spend based on the key priorities (see Figure 11).

We are facing many cost burdens largely due to high inflation, interest rates, insurance, higher construction and resourcing costs. These significant economic pressures are set to continue to impact us and all councils up and down the country.

The key issues we are facing are largely as a result of:

1. growth – there will be more households in Lower Hutt, based on our growth assumptions of 1.1 per cent in the first year and 0.9 per cent thereafter per annum

2. depreciation and interest payments – the increased capital expenditure programme means corresponding increases in the costs of servicing these assets

3. price increases – inflation and the factors that influence it will mean that it will cost increasingly more to do business. BERL forecasts that costs in general for the local government sector could increase by 22 per cent over the 10-year period of the plan.

Through the previous 10-year plan and Annual Plan 2023-24 savings were identified and applied to budgets.

Through September to October 2023, officers conducted base budget reviews which yielded $6.1M of savings over the period of the DLTP, which have been applied to budgets and had a favourable rates impact of 0.2% in 2024-25.

During November 2023, officers conducted further budget reviews to identify savings and revenue opportunities of $17.4M over the period of the DLTP, which were applied to budgets (favourable rates impact of 0.9% in 2024-25).

Council has also made a range of savings and spending cut related decisions on 27 November 2023 which has led to further $11.3M reduction over the period of the DLTP (favourable rates impact of 0.4% in 2024-25).

All these savings have an ongoing effect and also reduce the rating impact, Council will continue to drive for efficiencies and revenue opportunities to reduce the rates burden into the future.

Section F: Borrowings and investments

Borrowings are a key component of recognising the intergenerational equity principle and that the cost of long term assets should be met by ratepayers over the life of those assets. It is important that the amount of borrowings is prudently managed, whilst enabling continued investment in infrastructure and community assets to continue.

With the significant capital expenditure plans we will need to increase our debt to fund what is not provided for by way of capital subsidies, development contributions income and depreciation.

The projected debt profile is outlined in figure 13 which also highlights the much higher borrowing levels compared to the Annual Plan 2023-24. The Financial Strategy for the upcoming 10 years reflects increases to other funding sources such as development and financial contributions, higher rates revenue and fees and charges to help fund the cost of infrastructure. After taking other funding sources into account, increased borrowings are funding the capital investment programme. Net debt of $0.3 Billion as at June 2023 is projected to increase to a peak of just over $1 Billion in 2029-30. As outlined in figure 12, rates revenue is our major source of funding which is constrained due to considerations around affordability and in turn constrains our debt capacity. This is because the debt we take on is directly linked to the total revenue we recover, as there are specific limits we need to stay within as outlined in table 1 below. This means the higher the rates revenue we can generate, the higher the amount of borrowings we can take on and vice versa.

The increase in Council’s debt is the result of funding major infrastructure improvement and renewals. The timing of the programme and the associated borrowing requirements has been carefully considered to ensure that this best meets the needs of the current and future generations. The proposed programme fully utilises the debt headroom capacity available whilst ensuring debt is managed prudently within the limits set.

Managing debt in a prudent manner helps the Council build resilience and sustainability, as it provides the Council with financial capacity to cope with exceptional circumstances. The Treasury Risk Management Policy outlines different measures the Council uses to limit its level of debt; Table 1 summarises these. These limits are set at prudent levels and meet the requirements of the Local Government Funding Agency. Council has reviewed the limits as part of the development of

this 10-year plan; the net interest to revenue and net interest to annual rates income limits have been increased to enable the funding of the increased investment programme (Figures 15 and 16).

Below 15%(10% in 2024)

Below 250%

Net debt can be increased to a maximum of 270% of total revenue at any time, provided that this is due to a significant natural disaster. Net interest

Below 25%(20% in 2024) Liquidity

Greater than 110%

Managing our debt: We place reliance on a strong financial position to ensure we have capacity to borrow, both for forecast expenditure needs and any unforeseen requirements that may arise. We manage the risks proactively and ensure we have appropriate levels of debt in accordance with our debt limits, with no significant concentrations of debt repayment in any one year, ensuring working capital is maintained to meet ongoing commitments and surplus cash is invested or used to repay debt. We also focus on collection of monies owed to ensure no concentrations of credit risk exist.

Council secures borrowing by way of a debenture trust deed that provides security over rating income. Investments

Council has investments in several Council Controlled Organisations (CCOs), Civic Financial Services Ltd, the Local Government Funding Agency, property and cash.

The 10-year plan assumes that there will be no material return on investments from the CCOs, but rather that profits generated will be applied to reinvestment in the business or to repayment of

borrowings to the Council. Cash investments: Council maintains liquidity and credit facilities to minimise financial risk and maintain secure and cost-effective funding sources to meet financial needs. In managing its liquidity, cash is invested on short-term deposit to manage cash flows and maximise returns. Surplus cash is placed on call or term deposits as appropriate. Property investments: Council has a small property portfolio with which it seeks to achieve market returns. These properties are largely held for strategic reasons, such as the RiverLink project. A property sales programme exists and will continue to deliver sales; however, Council expects these to be relatively minor for the life of the Long Term Plan. For further details on borrowings and investments are available in our Treasury Risk Management Policy

Section G: Balancing the operating budget

A guiding principle of this financial strategy is about the importance of a balanced operating budget. This means that projected operating revenue over the lifetime of the LTPis set at a level sufficient to meet projected operating expenses, ensuring that current ratepayers are contributing an appropriate amount towards the cost of the services they receive or are able to access, i.e. ‘everyday costs are paid for from everyday income’.

We need to move towards a sustainable position, balancing the budget over the medium term. The proposed capital investment programme and cost pressures in the LTP, together with limitations on revenue particularly due to affordability issues of rates, makes this very challenging. The proposed draft LTP projects a balanced operating budget position being achieved in 2028-29 (refer figure 17).

The Local Government Act 2020 (LGA) requires Council to budget each year for operating revenue at a level sufficient to meet operating expenses budgeted for that year. This is known as the “balanced operating budget” requirement. The LGA does allow councils to budget for a deficit, if it resolves that it is financially prudent to do so.

In assessing a financially prudent decision, consideration is given to:

- the estimated expenses of achieving and maintaining the predicted levels of service provision set out in the LTP, including the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life

- the projected revenue available to fund the estimated expenses associated with maintaining the service - capacity and integrity of assets throughout their useful life

- the equitable allocation of responsibility of funding the provision and maintenance of assets and facilities throughout their useful life

- the funding and financial policies adopted under section 102 of the LGA.

We acknowledge that we run deficits from a balanced operating budget perspective mainly due to revenues not covering the full cost of depreciation. Council will use the following financial levers to move progressively towards achieving a balanced operating budget: fees and charges, rating for depreciation, development and financial contributions, efficiencies, debt repayment and rates setting.

The 10-year plan projects that Council will not achieve the balanced operating budget target for a number of years: until 2029-30 which effectively means we are borrowing to offset the funding shortfall. Council has considered the level of rates revenue in light of a number of factors, including the legislative requirement for financial prudence, as well as the economic environment and increasing cost pressures on households due to the high cost of living(see Section H). Setting rate levels to achieve a balanced operating budget earlier would increase the rates burden for ratepayers, and there are concerns about affordability. Adopting some smoothing of the impact over a number of years results in the best fiscal and sustainable outcome. The projected balanced operating budget position provides a pragmatic balance between managing the pressures on current ratepayers and ensuring the Council remains financially sustainable into the future, whereby the actions of today do not significantly impact unfairly on ratepayers in the future. It is financially prudent and in line with the legislative requirements due to the longer term plans for rates revenue generation and repayment of debt occurring to avoid a significant impact on future ratepayers. The level of funding also enables Council to maintain its levels of service and undertake asset renewals, and is consistent with the Revenue and Financing Policy

Section H: Rates and rates increases

Rates revenue is the amount Council requires to provide services to residents and ratepayers after allowing for other income, such as fees and charges, grants and subsidies. The Council has a high dependency on rates revenue as its principal source of income. As Figure 12 shows, 75 per cent of operating expenditure is funded from rates over the life of the 10-year plan. Affordability of rates is a key principle of the Financial Strategy. It was front of mind as the 10-year plan was developed and rates increases considered.

The Revenue and Financing Policy has been carefully reviewed; however no material changes have been made to the policy. A rates remission for financial hardship has been proposed for the first three years of the 10-year plan to ease the burden on those households impacted by the current economic environment. Council has determined its rates increases based on a number of factors, including the levels of service it wants to provide and its capital programme. The rates revenue increases reflect the guiding principles and issues referred to earlier in this strategy, including the challenge of achieving a balanced operating budget. The economic environment with a number of legislative reforms underway, new government with potentially new priorities and high inflationary pressures introduces further uncertainty and the possibility of further financial challenges.

Due to the affordability constraints on rates revenue and limit on our ability to debt fund, there are a range of risks that the levels of service could be impacted in some areas due to cost pressures that exceed our assumptions around inflation in the future

Some level of smoothing of rate changes can provide more certainty to residents; Council considers this to be a better approach. Council has applied this approach in its projected rates increases for the 10-year plan. The Water Services Reform legislation, led by the previous government was repealed but new legislation is not yet enacted. Potentially all (or some) of the current three waters assets and related borrowings could transfer from council balance sheets to a new Water entity. Due to the change in government there is a lot of uncertainty as to what the future holds in this area; as a result, the 10-year plan assumes that Council will retain the current three waters infrastructure. The projected rates increases have been considered in light of this. This allows us to provide certainty to our community around the rating impact and the planned levels of investment. This assumption will be advised as new information becomes available.

The LGA requires the Council to quantify its limits on rates increases, see Table 3. The rates revenue increases below have been It is important to distinguish between the increases in rate revenue from year to year and the average rate increase. Our revenue does not only reflect the impact of rates increases to the average ratepayer; it also includes rate revenue received from the growth in new rateable properties each year, which are expected to be about 1.1 per cent for the first year then 0.9 per cent per annum thereafter

Further information about the indicative rating impact for the average ratepayer by category and suburb is available in the Rates Funding Impact Statement (refer section X).

Notes:

1) These figures include inflation but exclude GST.

2) These figures do not take into account additional income from new properties in the city each year. Property growth is assumed to be around 1.1% in the first year then 0.9% annually.

3) Targeted rates for introduction of the new Food and Green waste service will be consulted on through the Long term Plan 2024-34. This service is required to meet longer term waste minimisation goals.

Appendix 1: Further explanation about our approach to the balanced operating budget

The Local Government (Financial Reporting and Prudence) Regulations 2014 established eight benchmarks against which all councils must report. One of these benchmarks is the balanced operating budget, defined as ‘Council Revenue excluding development contributions, vested assets, gains on derivatives and revaluations of property, plant and equipment as a proportion of operating expenses – excluding losses on derivatives and revaluations.

This definition includes NZ Transport Agency - Waka Kotahi capital subsidies as revenue and assumes councils fully rate for depreciation. Depreciation spreads the capital cost of assets over their useful lives, so that each generation of ratepayers pays for their share of the use of the asset. Not fully funding for depreciation may place a burden on future ratepayers, who have to pay for the asset replacement. Funding depreciation supports the intergenerational equity principle, whereby everyone who benefits from use of an asset pays for their share over the asset’s useful life. By rating for depreciation, we are providing cash to fund the capital renewal programme. Depreciation is, however, based on a number of assumptions and may not reflect the actual future asset renewal funding requirements (e.g., due to the long life of infrastructure assets).

For our roading assets, it is not necessary to fully fund depreciation, as we receive a NZ Transport Agency - Waka Kotahi capital funding subsidy. We need to provide funding for ‘our share’ of the expenditure. Council has some significant projects, such as the Cross Valley Transport Connections and cycleways programmes, which we have assumed will be funded by NZ Transport Agency - Waka Kotahi in the financial projections. The NZ Transport Agency - Waka Kotahi funding and central government grant funding of the capital improvements and growth is significant, at $356M. In assessing our balanced operating budget target we have applied the Local Government (Financial Reporting and Prudence) Regulations 2014 definition, modified to exclude the NZ Transport Agency - Waka Kotahi capital improvement subsidies from the calculations of revenue. The reason for this NZ Transport Agency - Waka Kotahi adjustment is that the funding is not available to meet our day-to-day operational costs. In a similar way we have also modified the definition of revenue to exclude central government co-funding for various projects.

Understanding the operating surplus/(deficit)

Figure 18 shows a comparison of the projected operating results based on three different methods: financial accounting standards (orange), the local government balanced operating budget benchmark method (green) and the Hutt City Council balanced operating budget method as described in Figure 17 (blue).

The projected financial accounting results (orange) include non-cash items such as ‘income’ from vested assets and the impacts of revaluations of assets resulting in three-yearly peaks. These accounting results reflect the accounting position as meeting all the Public Benefit Entity International Public Sector Accounting Standards (PBE-IPSAS) reporting standards. The large spikes in favourable results are a result of the accounting requirement to revalue assets, which is assumed to occur every three years. Although there are projected accounting operating surpluses for most years of the plan (orange), and projected balanced operating budget benchmark surpluses (green), the Hutt City Council balanced operating budget target shows deficits until 2028/29. This is because part of the income we receive is from Waka Kotahi NZ Transport Agency in the form of a subsidy for expenditure on our roading network. The subsidy is to cover both operating and capital expenditure. We also receive capital grant funding tagged to specific capital spend.

The capital components of the above funding need to be spent on capital items and is not available to meet the day-to-day operational costs. This funding is reflected in the orange and green lines and hence the projected results are more favourable. In the Hutt City Council balanced operating budget projection, the ring-fenced funding for Waka Kotahi NZ Transport Agency funded capital improvement works has been excluded, as well as central government grant funding tagged for capital projects. Excluding this ring-fenced funding from the operating results provides more accuracy in terms of the projected underlying operating result.

Revenue and financing policy

Section A: Introduction

A wide number of funding sources are available to Council to fund its activities, ranging from general and targeted rates through to fees and user charges. This policy outlines Council’s approach to funding its activities. It provides information on what funding tools are used and who pays, as well as describing the process used to make these decisions. This policy should be read in conjunction with the Funding Impact Statement (see section 6). The Funding Impact Statement is the mechanism used to implement the Revenue and Financing Policy and provides detail on how rates are set.

Support for principles relating to Māori

Section 102(3A) of the Local Government Act 2002 provides that this policy must support the principles set out in the Preamble to Te Ture Whenua Māori Act 1993 (that requirement is effective from 1 July 2024). These principles include recognition that land is a taonga tuku iho of special significance to Māori people, and to facilitate the occupation, development, and utilisation of that land for the benefit of its owners, their whanau, and their hapū. Council considers that this policy supports those principles, particularly when viewed in conjunction with Council’s Policy on Remission and Postponement of Rates for Māori Freehold Land and applying those principles to the Development and Financial Contributions Policy.

Section B: Changes to the policy

A new targeted rates for Food and green organics waste has been included in Section H - funding needs analysis under the Solid waste activity.

Section F is updated to reflect proposals for minor changes to rates allocation percentages across the commercial and utility categories.

Minor editorial changes have been made to the layout and presentation of items in the policy.

Step One

The funding needs of Council must be met from what Council determines to be the most appropriate funding source for each activity following consideration of:

• the community outcomes to which the activity contributes

• the distribution of benefits between the community as a whole and any identifiable parts of the community and individuals

• the period over which the benefits are expected to occur

• the extent to which the action or inaction of particular individuals or groups contributes to the need for the activity to take place

• the costs and benefits of funding an activity distinctly from other activities. Council has considered the matters above for funding operating and capital expenditure arising from Council’s activities. Section D provides an explanation of the funding tools for operating expenditure. Section E discusses the funding tools for capital expenditure funding and the principles applied in their use. The funding needs analysis in Section G provides a more detailed discussion of the use of different funding tools for operating and capital costs and the reasons for the allocation of costs to various sectors of the community for each activity.

StepTwo

The second step in the process is for Council to apply its judgement to the overall impact of any allocation of liability on the current and future social, economic, environmental and cultural wellbeing of the community. In exercising this judgement, Council considers the following:

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

• the impact of rates and rates increases on businesses and on the competitiveness of Lower Hutt as a business location

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

• the special characteristics of particular classifications of property – including their purpose and proximity to the city

• the complexity of the rating system and the desirability of improving administrative simplicity

• the change in relative rateable values between types of properties.

As the General rate is a general taxing mechanism, shifting the ‘differential factor’ for each sector’s share of the city’s overall capital value is the principal means that Council has used to achieve the desired overall rates impact on the wider community. Council considered the application of this in terms of affordability for all sectors in applying the general rate differentials.

Section D: Funding of operating expenditure

The policy sets target funding bands for the main funding sources for each activity. The funding bands are:

• High: 80–100%

• Medium/high: 60–79%

• Medium: 40–59%

• Medium/low: 20–39%

• Low: 0–19%

Our funding sources for operating expenditure and how they are applied is as follows:

General rates provide Council’s largest source of funding. General rates are used to help fund activities where the Council has concluded that the whole community or city benefits. This is sometimes referred to as a public good that can demonstrate the following characteristics:

• non-rival – the enjoyment by one person does not prevent the benefit from being enjoyed by others. An example is street lighting

• non-excludable – no person or group can easily be prevented from enjoying the benefit. An example is a beach or park.

In these cases, all ratepayers pay towards the cost of the activity. Where the activity also provides benefits to individuals or parts of the community, rates are used to fund the balance of costs after the potential for user charges has been exhausted.

Council sets general rates based on the capital value of properties. Capital value is used because, in the main, it reflects the ability to pay better than the alternatives of land value or annual value.

What each ratepayer pays depends on the capital value of their property relative to the value of other properties, and on the share of the general rate that has been allocated to each sector of the community (residential, commercial and utilities).

Uniformannualgeneralcharge

Council also has the option to assess a uniform annual general charge (UAGC). A UAGC recovers a portion of general rates costs as a fixed amount per rating unit. Such fixed charges tend to have a disproportionate impact on low-income households, as the charges make up a higher proportion of such a household’s income. For this reason, Council does not currently utilise a UAGC.

Council does, however, use fixed amounts for some targeted rates.

Targetedrates

Council uses targeted rates where it has decided that the cost of a service or function should be met by a particular group of ratepayers (possibly even all ratepayers) or in order to provide greater transparency about the use of the funding. There is considerable scope to set rates for a specific function (e.g., water), target a rate on a specific geographic area (e.g., Jackson Street), or set different levels of rates for different property types (e.g., a promotion levy targeted on Commercial Central properties).

Thereis anew targetedrateproposedinthe10-yearplanforFoodandGreenorganicswastefrom1 July 2027 –RefertosectionHforfurtherdetails.

Fees andcharges

User charges are used where there are strong benefits to individuals or parts of the community from an activity and it is feasible to collect fees.

User charges contribute to the cost of some facilities (such as swimming pools) and also fully or partly meet the cost of regulatory services, such as those under the Building Act 2004 and Resource Management Act 1991.

Similarly, Council has the ability to fine people and businesses for certain rule infringements. The amount of income derived through these fines depends on the level of non-compliance and the resourcing Council is able to put into enforcement activities.

Otherfundingsources

Council’s other main funding sources for operating expenditure are grants and subsidies. Waka Kotahi New Zealand Transport Agency funding assistance for road maintenance makes up the majority of this funding. Other central government funding is occasionally available for specific projects and initiatives.

Council does not intend to use borrowing, proceeds fromasset sales, development contributions or financial contributions to help fund operating expenditure unless the sources identified above are insufficient to meet its revenue needs.

Section E: Funding of capital expenditure

Our funding sources for capital expenditure and how they are applied is as follows: Funding

Grants and subsidies

1 Funding received from other agencies, usually for specific projects/programme of work such as Waka Kotahi New Zealand Transport Agency (in relation to certain roading projects), Crown Infrastructure Partners (COVID-19 Response and Recovery Fund), Kainga Ora (Infrastructure Acceleration funding for valley floor wastewater and stormwater projects), and Upper Hutt City Council (in relation to joint wastewater activities).

2 Revenue under the Local Government Act 2002 to help fund planned growth-related capital expenditure for roading and transport, stormwater, wastewater and water. Financial/Environmental

3 Revenue under the Resource Management Act 1991 to help fund growth-related capital expenditure on recreation reserves, and for other infrastructure where individual developments give rise to capital expenditure that is not planned, and therefore is not included in Council’s Development and Financial Contributions Policy.

External borrowing

7 Borrowings to meet capital cash flow requirements where the above funding sources are inadequate to meet these needs. Repayments of debt are spread across several years. This enables Council to better match funding with the period over which benefits will be derived from assets and helps ensure intergenerational equity.

Borrowing and repayments are managed within the framework specified in the Liability management section of the Treasury Risk Management Policy.

Section F: General rate differential factor

The general rate payable on each category of property is expressed as a rate in the dollar of capital value. These different rates in the dollar for different property categories are known as ‘differential factors’ and are determined following the completion of step two of the process (which is designed to allow the Council to apply its judgement on the overall impact on the wellbeing of the community). This judgement includes the consideration of the matters in step two above, including activity areas where the benefits of the activity are not considered to be equally shared among the community.

Following a review Council undertook for the purposes of the previous 10-year plan, the general rate will continue to be apportioned between residential, commercial and utility categories based on a percentage applied to each category group. A percentage approach helps to reduce fluctuation in the general rate caused by valuation movement differences between categories.

For the 10-year plan Council considered the matters in step two above and options for modifying the differentials as overall impact adjustments. It considered the competing interests of different sectors of ratepayers as set out in the step two process (see Section C), particularly the different abilities of the residential and commercial sectors to accommodate rate increases at this time, and the impacts of those increases, particularly on rates affordability. Other considerations of Council included:

• the impacts of the changes made in the previous 10-year plan

• the outcome of the latest three-yearly property revaluation completed in 2022

• recent development plans in the city through number and value of consents

• other economic factors for both commercial and residential ratepayers.

In its judgement, Council has decided that the overall percentage allocation for the residential and commercial (including utility) categories should remain the same as 2023-24 with minor adjustments to the individual commercial category percentages, and differential adjustments should be made to give effect to this.

The indicative percentages to be applied forthetermofthe10-yearplanunder the policy are as follows (including 2023-24 as a comparator):

The general rate for Rural rating units is differentiated on the basis of perceived distance to Council services. Rating units to which this differential will apply are those within Rural activity areas in the Council’s operative District Plan.

For the smaller rural and community facilities differential rating categories a standard differential multiplier will be applied. This reflects the fact that small changes in the category may significantly impact average rates on individual properties if a percentage was applied.

The differential factors for these categories are: •

The following indicativedifferential factors will be applied across all differential categories in 2024/25 to give effect to category percentages.

•

•

3.406

This policy should be read in conjunction with the Funding Impact Statement which provides further details on how rates are set.

Section G: Summary of operational funding sources

Stormwater

Solidwaste

City development

Communitypartnering andsupport

Openspaces,parksand reserves (including cemeteries)

Libraries

Museums

Aquatics andrecreation

Animalcontrol

Buildingconsentsand resource consents

Public Health

Emergency management

Sustainabilityand resilience

City governance

Section H: Funding needs analysis

ACTIVITY BACKGROUND

Transport

The transport activity consists of five sub-activities – road assets, traffic assets, road safety services, active modes and parking. Council operates, maintains and renews the road asset, which includes footpaths, throughout the city. Traffic control measures are used to ensure the efficient and safe movement of motor vehicles, cyclists, pedestrians and other forms of transport. Road safety programmes and interventions aremanagedtoimprove thesafetyoutcomes of all users on our transport network. Walking, cycling and micromobility initiatives are managed to enable safe and efficient mode choice across our transport system. Parking involves the provision, maintenance and regulation of on- street and off-street carparks in the commercial areas of the city. The location and regulation of carparks is designed to ensurefair,easyandefficientaccess tothecity’s commercial areas.

RATIONALE

Council has no direct means tochargeindividual users of the local network onauser-pays basis. Thereforemost of the expenditure is fundeddirectlyfromgeneral rates revenue (and governmentsubsidies). Tripgenerationis auseful base indicator benefitbetween ratepayer categories. Trip generation of the Commercial/Utility and Residential sectors is estimated at 72 per cent and 28 per cent respectively. The net cost tocouncilof major projects with benefits over several decades, will be debt funded, along with an appropriate contribution from development contributions charges for growth-related infrastructure. Revenue generated from controlled parking is used to offset the costs ofproviding the activity.

Operational costs

• general rates: Medium/ high

• grants, subsidies, andother: Low

• fees and charges: Low

ACTIVITY BACKGROUND

Communityoutcome

Who benefits

Economicwellbeing

Roading assets: Many of the benefits of roading networks accrue to individuals or businesses. Toa large extent, this is reflected in the subsidies Council receives from government for roading, which are ultimately funded from fuel excise, road user charges and vehicle registration charges. However, Council mustcover the remainder of the unfunded component. Trip generation can be used as an indicator of both the cause and benefit ofthis activity’s costs. Traffic assets: Traffic assets provide a range of benefits widely dispersed among the community, and for which there is little ability to charge, or sense in charging, individuals for the benefits they receive. Road safety services: Road safety services provide a range of benefits for all mode users across the network, for which there is little ability to charge, or sense in charging, individuals for the benefits they receive. Active modes: Active mode initiatives encourage behaviours that benefit health, wellbeing and the environment and there is no appetite to charge individuals for the benefits they receive. Parking: The benefits of on-street parking largely accrue to the individuals or groups involved. Controlled parking is provided in key business and shopping areas for the benefit of business. However,

charging and actively monitoring parkinginmost areas, suchas most urbanneighbourhoods, is simply notpractical or costeffective –althoughsometimerestrictions may still apply. Consequently, a large proportion of the cost is simply absorbed into the roading budget, and funded accordingly. The primary beneficiaries of growth-related infrastructure are the developments that can be undertaken and the businesses and residents that occupy new sites. If, and to the extent that, investment in infrastructure benefits growth and existing residents, this is reflected in the allocation of costs between growth and levels of service or renewal.

Periodof benefit

Thebenefits of transport facilities areongoing andspreadover thelong-term. Theseintergenerational benefits support the ongoing use of debt financing for associated capital works.

ACTIVITY BACKGROUND

Whoseacts createa need

Separatefunding

Watersupply

Heavy vehicles create an additional cost to Councilbecause of the increased wear they impose on roads, and the need to have wider roads to accommodate them. Theneedtoundertake street cleaningis partially causedby theactions of individuals littering or dumping. In areas with a high concentration of parking demand, it becomes necessary and cost-effective to manage parking, allowingmuch of thecostassociatedwiththeseparks tobe recoupedthroughparkingcharges and/or fines.

Council considers that thereis littlebenefitofseparatefundingof this activity.

This activity involves the supply of high-quality drinkable water for domestic and commercial use. Council purchases bulk water from Greater Wellington Regional Council, and this accountsfor a significant portion of the total cost ofwater supply to the city. Water is then distributed around the city through the local pipe network. Council’s ownership of the pipe network is historical.

In the absence of metering, targeted rates can be seen as a proxy for user charges. All connections are charged the targeted rate, and this is assumed to cover the supply of the average residential user. Commercial water users are charged on a metered rate for water consumption. Major projects with benefits over several decades will be debt funded, along with an appropriate contribution from development contributions charges for growth-related infrastructure.

Operational costs

• targeted rates: High

• general rates: Low

• grants, subsidies and other:

Low

• fees and charges: Low

Community outcome

Environmental wellbeing

Who benefits

Period of benefit

Whose acts create a need

Much of the benefit from this activity is considered to be private to the people who obtain and use the water. Public health benefits arise out of the treatment of water-borne diseases. The primary beneficiaries of growth-related infrastructure are the developments that can be undertaken and the businesses and residents that occupy new sites. If, and to the extent that, investment in infrastructure benefits growth and existing residents, this is reflected in the allocation of costs between growth and levels of service or renewal.

The benefit of most operating costs is expected to arise in the year the funding is sourced. Capital expenditure provides benefit over the life of the asset.

Properties and users who either waste or use excessive amounts of water

ACTIVITY BACKGROUND

Separate funding

Wastewater

Council ensures the treatment and disposal of household and commercial effluent according to regional and national environmental standards. A new treatment plant was commissioned in2002 toensure effluent is treated to higher standards.

Council considered that due to the administrative costs there is no further benefit in separate funding of this activity.

In the absence of the ability to use metering, targeted rates (including pan charges) can be seen as a proxy for user charges.

High water and waste users are charged fees under a trade waste by-law. Major projects with benefits over several decades will be debt funded, along with an appropriate contribution from development contributions charges for growth-related infrastructure.

Operational costs

• targeted rates: High

• general rates: Low

• grants, subsidies and other: Low

• fees and charges: Low

ACTIVITY BACKGROUND

RATIONALE

Communityoutcome

Environmental wellbeing

Who benefits

Periodof benefit

The removal of wastewater largely benefits the person whose wastewater is removed. However, the public also benefits through improved public healthand anunpolluted environment. Theoperationof manysocial andcommercial activities wouldbecurtailedif raw effluent was not properly dealt with. Upper Hutt City Council makes an operating contribution towards the shared service. The primary beneficiaries of growth-related infrastructure are the developments that can be undertaken and the businesses and residents that occupy new sites. If, and to the extent that, investment in infrastructure benefits growth and existing residents, this is reflected in the allocation of costs between growth and levels of service or renewal.

Thebenefits of wastewaterservices areongoingandspreadoverthelong-term. Theseintergenerational benefits support the ongoing use of debt financing for associated capital works.

FUNDINGSOURCESAND BANDS

ACTIVITY BACKGROUND

Whoseacts createa need

Stormwater

Separate funding

Thereis alsoa significantexacerbator component tothe treatment of wastewater, as peoplecausecosts throughtheir action(for example, commercial businesses that produce trade waste) or inaction (for example, not installing a dual flush toilet).

Council considered that due to the administrative costs that there is no further benefit in separate funding of this activity.

Council operates an effective drainage system to protect property from flooding damage. Stormwater infrastructure includes pipe networks, street-side gutters, retention dams and open watercourses. These are provided and maintained according to the reasonable costs of managing foreseeable flooding events.

Community outcomes

As the community as a whole benefits from this activity, the costs are best recovered from General rates. Major projects with benefits over several decades will be debt funded, along with an appropriate contribution from development contributions charges for growth-related infrastructure.

Operational costs

• general rates: High

• grants, subsidies and other: Low

• fees and charges: Low

Environmental wellbeing

Who benefits

Period of benefit

Stormwater reticulation, watercourses, major storm events and watercourse quality management, addressed under this activity, are partly for private benefit but mainly for public benefit. This is interms of dealing with public spaces and the public stormwater system, maximising damage from severe flooding and conducting monitoring and pollution control for the community at large. Economies of scale associated with the provision of the overall system are also recognised. The primary beneficiaries of growth-related infrastructure are the developments that can be undertaken and the businesses and residents that occupy new sites. If, and to the extent that, investment in infrastructure benefits growth and existing residents, this is reflected in the allocation of costsbetween growth and levels of service or renewal.

The benefit of most operating costs is expected to arise in the year the funding is sourced. Capital expenditure provides benefit over the life of the asset

Whose acts create a need

Buildings and pavements increase the necessity for stormwater management, and in this respect the built-up areas can be considered to exacerbate the problem.

Separate funding

Council considered that due to the administrative costs there is no further benefit in separate funding of this activity.

ACTIVITY BACKGROUND

Solidwaste

Council contracts out the collection of residential solid waste and household recycling. It also owns a landfillfor the disposal of the city’s refuse. Councilwishes to promote recycling and waste reduction and to provide for the disposal of the city’s solid waste.

Council is proposing to expand its current rubbish, recycling and green waste collection services to provide weekly Food and Green Waste collection from 1 July2027.

Communityoutcome

RATIONALE

Currently the solid waste function makes an overall surplus, particularly as a result of landfill activities. This return on investment compensates Council as a wholeandthewholeratepayer basefor thelong-term business risks of landfill operationand aftercare. Any surplus is therefore used to offset general rates.

FUNDINGSOURCESAND BANDS

Operationalcosts

• targeted rates: Medium

• general rates: Low

• grants,subsidies and other: Low

• fees andcharges: Medium

Environmental wellbeing

ACTIVITY BACKGROUND

Who benefits

Period of benefit

Whose acts create a need

Council currently provides kerbside refuse, recycling, and opt-in Green waste, which are funded through targeted rates. The implementation of the Council’s new Food and Green waste collection service from 1 July2027 will help reduce greenhouse gas emissions, reduce waste to the landfill thereby prolonging the longevity of this facility, i.e. costsavings on future expansion of the site, reduce leachate and pollution and allow for organic waste resource recovery. There are public benefits in ensuring that refuse is disposed ofappropriately. The consequences of poorly dealt with waste are immediate public health effects. Longer-term health effects can also result from interaction with contaminated sites. There are private benefits to people whoserefuseis disposedof.

The benefit of most operating costs is expected to arise in the year the funding is sourced. The benefits ofcapital spend on the Landfill are ongoing and spread over a long period. These intergenerational benefits support the ongoing use of debt financing for associated capital works.

Individuals generate waste therefore creating the need for this activity. There are also individuals who create waste but do not use this service (such as illegal dumping of rubbish) and can create additional costs for Council.

Separate funding Council considered that due to the administrative costs there is no further benefit in separate funding of this activity.

ACTIVITY BACKGROUND

Citydevelopment

Council has a leading role in fostering the city’s growth and development in a number of ways. Council develops the District Plan policy and makes changes to the District Plan in line with national and regional policy changes and also in line with expectations of the local community. Council aims to develop an urban environment that will help to attract people and investment, and enhance the city’s image and economy. Council manages and develops the public space of the city on behalf of the community. Council

RATIONALE FUNDINGSOURCESAND BANDS

Whilebusinesses andresidents benefitfromcitydevelopment,after maximising other available funding(whichare mostly non-existent), it is considered appropriate that the remainder of the activity is funded from General rates. The net cost to council ofmajor projects with benefits over several decades, will be debt funded, along with an appropriate contribution from development contributions charges for growth-related infrastructure.

Operationalcosts

• general rates: High

• grants,subsidies and other: Low

aims to create a businessfriendly environment, facilitate the expansion and creation of local businesses and employment, increase tourism to the city and contribute to regional growth through regional economic development initiatives.

Communityoutcome

Who benefits

This activitycontributes toall community outcomes.

District/spatial planning and urban design has a mix of private and public benefits, as well as encouraging optimal resource use over time. The Council develops these with input from the community in termsof the Resource Management Act. Certain parts of the community, such as business owners, may gain distinct private benefits as a result of Councilwork inshopping areas etc. Benefits are ongoing, and work particularly around the preservation of heritage elements is intended for the benefit of future generations. The benefits of preservingbuildings of architectural, heritage andhistoric valuepertainto boththecommunity as awhole andtheowner or occupier. The city’s businesses and residents benefit from Council’s supportof the business sector and from its promotion of the city as a place to visit.

ACTIVITY BACKGROUND

RATIONALE FUNDINGSOURCESAND BANDS

Periodof benefit

Whoseacts createa need

Thebenefit of most operating costs is expectedtoariseinthe year thefundingis sourced. Thebenefits of urbandevelopmentareongoing andspreadover the long-term. Theseintergenerational benefits support the ongoing use of debt financing for associated capital works.

Thereis very limitedimpact of theactions or inactions ofothers.

Separatefunding Council consideredthat duetothefinancial scaleof the activity thereis no further benefit inseparatefundingof this activity.

Communitypartneringandsupport

Council provides a range of community hubs and facilities to enable the delivery of community activities and provide safe inclusive spaces for the community. Council has previously carried out a significant rejuvenation programme across its community facilities to improve the wellbeing of Hutt City residents.

As thecommunity as awholebenefits from this activity, the costs arebest recoveredfrom General rates.The net cost tocouncil ofmajor projects with benefits over several decades, will be debt funded, along with an appropriate contribution from development contributions charges for growth-related infrastructure.

Operationalcosts

• general rates: High

• grants,subsidies and other: Low

• fees andcharges: Low

Community outcome

Social and cultural wellbeing

Who benefits

No particular sector or group is considered to drive or benefit from these costs beyond those groups that can be targeted by user fees.

Period of benefit

The benefit of most operating costs is expected to arise in the year the funding is sourced. The benefits ofcommunal facilities (e.g.,halls, hubs etc.) are ongoing and spread over the long-term.

Whose acts create a need

None identified

Separate funding Council considered that due to the financial scale of theactivity there is no further benefit in separate funding of this activity.

Openspaces,parksandreserves(includingcemeteries

Council provides and maintains passive recreational facilities in the city for the enjoyment and wellbeing of the public, free of charge. Sports fields are provided and maintained through charges to sports codes. Recreation areas are both natural and created; the majority of Council effort is targeted at maintenance and retaining areas in their natural state.

Noparticular sector or groupis consideredto derivebenefit from these costs beyondthosegroups that canbetargeted by user fees.

Majorprojects withbenefits overseveral decades will be debtfunded,alongwith anappropriatecontributionfromreservefinancial contributions charges for growth-related infrastructure.

Operationalcosts

• general rates: High

• grants,subsidies and other: Low

• fees andcharges: Low

Communityoutcome

Social andcultural wellbeing

Who benefits Parks and reserves: Council views the active participation of residents in outdoor activities as beneficial to the whole community. While it is recognised that the rural sector often provides its own recreational land, Council considers that this sector is also a beneficiary from this activity. Cemeteries: There is a significant private benefit in this service to the families ofdeceased people where burials and interment services are provided. There is also anongoing community benefit in providing for the respectful treatment of deceased people who form part of the community’s heritage and whakapapa. The primary beneficiaries of growth- relatedopenspaces, park andreserves are thedevelopments that canbe undertakenandthe businesses andresidents that occupy new sites. Tothe extent that investment in this infrastructure benefits growth and existing residents, this is reflected in the allocation of costs between growth and levels of service or renewal.

Periodof benefit

Whoseacts createa need

Thebenefit of mostoperating costs is expectedtoariseintheyear thefundingis sourced. Capital expenditureprovides benefit over the life of the asset.

Theactions of sportscodes contributetothe needfor Council toundertake the maintenanceof sports fields. Housingintensification andurbandevelopmentto respondtopopulationgrowthcreates aneedforgreenspaces.

Separatefunding Council consideredthat duetothe administrativecosts thereis nofurther benefit inseparatefundingof this activity.

ACTIVITY BACKGROUND

Libraries Council provides, maintains and manages eight libraries in the city. These are run as a single city-wide service. Their primary roleis to providewrittenand recordedmaterial such as books, audio-visual resources, and access to online information. Library services are used for many purposes including learning, research and entertainment.

Communityoutcome

Who benefits

RATIONALE FUNDINGSOURCESAND BANDS

Some of the individual benefit of library activities is recovered through user charges and fines. User recovery is also constrained by section142 of theLocal Government Act 2002.General rates aretheappropriatefunding sourcefor the remainder of theactivity, as the whole of thecommunity benefits from libraries.

The net cost to council ofmajor projects with benefits over several decades, will be debt funded, along with an appropriate contribution from development contributions charges for growth-related infrastructure.

Operationalcosts

• general rates: High

• grants,subsidies and other: Low

• fees andcharges: Low

Social andcultural wellbeing

Whilethere are identifiableindividual benefits from theprovisionof library services, theCouncil views openandlow-cost access toinformation and books as being in the best interest of the city as a whole, therefore the whole city benefits.

ACTIVITY BACKGROUND

RATIONALE FUNDINGSOURCESAND BANDS

Museums

Periodof benefit

Thebenefit of mostoperating costs is expectedtoariseintheyear thefundingis sourced. Capital expenditureprovides benefit over the life of the asset.

Whoseacts createa need Thereis very limitedimpact of theactions or inactions ofothers.

Separatefunding Council consideredthat duetothe administrativecosts thereis nofurther benefit inseparatefundingof this activity

The Council believes that support for the arts, recognition of our social history and cultural endeavours are an important componentin makingthecityavibrantand attractivecity,as well as providing a means for the community to express a sense of self and place.

Communityoutcome

Who benefits

Someof theindividual benefit of museum activities is recoveredthroughuser charges. General rates aretheappropriatefunding source for the remainder of the activity, as the whole community benefits from museums.

The net cost to council ofmajor projects with benefits over several decades, will be debt funded, along with an appropriate contribution from development contributions charges for growth-related infrastructure.

Operationalcosts

• general rates: High

• grants,subsidies and other: Low

• fees andcharges: Low

Social andcultural wellbeing

Whileindividual visitors tothesefacilities do gainindividual benefit, the collectingof anentry feewouldbeinefficient duetothe costs associated with establishing and operating a door charge system. Council recognises the contribution that the Dowse Foundation and donors are making to the city through extensive community fundraising activities.

ACTIVITY BACKGROUND

RATIONALE FUNDINGSOURCESAND BANDS

Periodof benefit

Thebenefit of mostoperating costs is expectedtoariseintheyear thefundingis sourced. Capital expenditureprovides benefit over the life of the asset.

Whoseacts createa need Thereis very limitedimpact of theactions or inactions ofothers.

Separatefunding Council consideredthat duetothe administrativecosts thereis nofurther benefit inseparatefundingof this activity.

Aquatics and recreation Council provides and maintains sixswimming pools inthe city as part of its portfolio of recreational facilities.

Recreational programmes are community-based programmes designedto encourageresidents to engageina range of recreational activities. These services are provided to promote health and enjoyment and stimulate the community’s interest in different recreational opportunities.

Fees andcharges contribute totherecovery of individual benefit. However, the fees areset at alevel that supports affordability for users to access facilities. Therefore General rates are the key source of income for this activity.

The net cost to council ofmajor projects with benefits over several decades, will be debt funded, along with an appropriate contribution from development contributions charges for growth-related infrastructure.

Operationalcosts

• general rates: Medium

• fees andcharges: Medium

ACTIVITY BACKGROUND

Communityoutcome

Who benefits

RATIONALE FUNDINGSOURCESAND BANDS

Environmental wellbeing

Individuals benefit from thepersonal fitness andenjoyment they derivefrom usingthefacilities. However, Council alsorecognises that there are positive benefits for the community when the population is fit and actively engaged. Pools provide quality and accessible tuition in essential water safety and life skills,whichproduces both individual and community benefits.

Regulatoryservices

Animalcontrol

Periodof benefit

Whoseacts createa need

Thebenefit of mostoperating costs is expectedtoariseintheyear thefundingis sourced. Capital expenditureprovides benefit over the life of the asset.

Thereis very limitedimpact of theactions or inactions ofothers.

Separatefunding Council consideredthat duetotheadministrativecosts that thereis nofurther benefit inseparatefundingof this activity.

Animalcontrol is primarilythedog controlfunctionwitha small amount of service involved with general livestock control. Dog registration fees are a targeted form of costrecovery for this activity. An animal control function is necessary to ensure the public is safe from the negative effects of

As bothindividuals andthecommunity benefit from this activity, it is appropriatethat themix of funding is split betweenfees and charges, other revenue and general rates.

Operationalcosts

• general rates: Medium/ Low

• grants, subsidies and other: Medium / Low

• fees and charges: Medium

ACTIVITY

animal ownership.

Building consentsand resource consents

Communityoutcome

Who benefits

Environmental wellbeing

Theowners of dogs benefit from theavailability of theservice, whilethewhole community benefits from havingasafer environment because of dog control.

Periodof benefit

Whoseacts createa need

Separatefunding

The activity includes regulatory consents and compliance functions for building work inLower Hutt, general advice to the public on consenting matters, co-ordination of Land Information Memorandum applications and advice on environmentally sustainable residential design and products.

Thebenefit of most operating costs is expectedtoariseinthe year thefundingis sourced. Thereis noplannedcapital expenditure.

Theactivity canbeconsideredan exacerbator issue, as the actions of animal owners createtheneedfor theservice, includingthose people who are not good dog owners.

Council consideredthat duetothe administrativecosts that thereis nofurther benefit inseparatefundingof this activity.

The activity predominantly benefits those individuals who obtain a building or resource consent. However, these activities protect the public interests of all residents and businesses by ensuring the city grows in ways that encourages high-quality development and produces the best long-term results, so it is considered appropriate that a portion of the costs are funded via general rates.

Operational costs

• general rates: Medium/Low

• grants, subsidies and other: Low

• fees and charges: Medium/High

ACTIVITY BACKGROUND

Community outcome

Who benefits

Environmental wellbeing

There is a direct benefit to those property owners who are obtaining a building consent, while there is a benefit to the community of ensuring safe and sanitary buildings. Generally, commercial buildings are more complex and therefore there is a greater benefit to the commercial sector than the residential sector.

PublicHealth

Period of benefit

Whose acts create a need

Separate funding

The activity provides inspection, auditing, enforcement and education that ensures compliance with Council’s policies and regulations concerning public health.

Community outcome

Who benefits

Period of benefit

The benefit of most operating costs is expected to arise in the year the funding is sourced. There is noplanned capital expenditure.

Non-complying buildings and businesses operating without consent.

Council considered that due to the administrative costs that there is no further benefit in separate funding of this activity.

The activity predominantly benefits those individuals who obtain the appropriate license. However, this activity protects the whole community.

Operational costs

• general rates: Medium

• fees and charges: Medium

Environmental wellbeing

The public receive a benefit from this activity due to the compliance of the businesses with the public health standards. Businesses also receive a benefit due to customers’ assurance that individual businesses are meeting the appropriate standards.

The benefit of most operating costs is expected to arise in the year the funding is sourced. There is noplanned capital expenditure.

ACTIVITY BACKGROUND

Whose acts create a need Businesses not complying with publichealth requirements.

Separate funding Council considered that due to the financial scale of theactivity there is no further benefit in separate funding of this activity.

Sustainabilityandresilience

Emergency management Council develops and implements city-wide emergency managementplans andpromotescommunity preparedness for emergencies

Communityoutcomes

Who benefits

Periodof benefit

As thecommunity as awhole benefits fromthis activity, the costs arebest recoveredfrom General rates.

Environmental wellbeing

Thewholecommunity benefits from this activity. Itis triggeredwherethe disruptiontocommunity lifeis suchthat acoordinated community response is required.

Thebenefit of most operating costs is expectedtoariseinthe year thefundingis sourced. Thereis noplannedcapital expenditure.

Whoseacts createa need Noneidentified

Separatefunding Council consideredthat duetothefinancial scaleof the activity that thereis no further benefitinseparatefundingthis activity.

Operationalcosts

• general rates: High

• grants,subsidies and other: Low

ACTIVITY BACKGROUND

RATIONALE FUNDINGSOURCESAND BANDS

Sustainabilit

yand resilience Council enables system change by enabling the delivery of its Energy and Carbon Reduction Plan 2020–24, improving sustainability outcomes across Council and the community, and funding initiatives or kickstarting thinking inlinewithits EnvironmentalSustainability Strategy2015–45.Thisactivity also comprises work to engage with the community on climate change; in particular, the development of a pathway to reduce city-wide emissions to net zero by 2050, and a pathway for how as a community we should respond to forecast climate impacts, such as sea-level rise.

As thecommunity as awhole benefits from this activity, the majority of the costs arebest recoveredfrom General rates.

Operationalcosts

• general rates: High

• grants,subsidies and other: Low

Communityoutcome Environmental wellbeing

ACTIVITY BACKGROUND

Who benefits

Periodof benefit

Thewholecommunity benefits from this activity. Itis triggeredwherethe disruptiontocommunity lifeis suchthat acoordinated community response is required.

Thebenefit of most operating costs is expectedtoariseinthe year thefundingis sourced. Thereis noplannedcapital expenditure.

Whoseacts createa need Noneidentified

Separatefunding Council consideredthat duetothefinancial scale of theactivitythereis no further benefitinseparatefundingof this activity.

Governance,strategyandpartnerships

Council, as the elected governance body, is responsible for deciding the direction and objectives of the activities it delivers on behalf of the city. Council is required by law to have elected members. Community representatives on CommunityBoards arealso elected; theyarepartof Council and provide local input into governance issues.

As thecommunity as awholebenefits from this activity, the costs arebest recoveredfrom General rates.

Operationalcosts

• general rates: High

• grants,subsidies and other: Low

ACTIVITY BACKGROUND

Community outcome This activity contributes to all community outcomes

Who benefits

Period of benefit

Whose acts create a need

The beneficiaries of this activity are the people and organisations in the citywho benefit through the democratic governance of the city’s affairs.

The benefit of most operating costs is expected to arise in the year the funding is sourced. There is no planned capital expenditure.

None identified

Separate funding Council considered that due to the financial scale of theactivity there is no further benefit in separate funding of this activity.

Infrastructure strategy

Te Awa Kairangiki Tai Lower Hutt2024 – 2034 Infrastructure Strategy

CONTENTS:

1. Mayor’s foreword

2. The Strategy at a glance

3. Infrastructure supports Te Awa Kairangi ki Tai Lower Hutt to be a liveable city

4. Why infrastructure matters

5. Outcomes & scope

6. Lower Hutt’s infrastructure networks in more detail

7. The changing face of Te Awa Kairangi ki Tai Lower Hutt

8. Changes in the national and regional context

9. Key infrastructure challenges and risks

10. How Council aims to meet its infrastructure challenges

11. Implementing the Strategy: the key core infrastructure projects

12. Assumptions informing the Strategy

13. Financial projections

14. Appendices

MAYOR’SFOREWORD

Infrastructure underpins the quality of life we value. Our homes are connected to and protected by our water networks, and we make the most of the great recreation spaces in our city by using a connected network of roads, cycleways and footpaths. Infrastructure supports Te Awa Kairangi ki Tai Lower Hutt to be a liveable city and plays a vital role in protecting our health, property, and the environment.

Our city is growing, housing is intensifying, and we are experiencing more extreme weather events because of changes in the climate. This is challenging our infrastructure with a growing demand for water and increasing pressure on an ageing waste and storm water network.

Infrastructure is intergenerational. Built well, infrastructure assets can last for over a century. Investment in infrastructure requires substantial capital investment when it needs replacing or requires significant maintenance. Council has tripled its investment in renewing water pipes in the network, but there is much more to do.

Council funds infrastructure through a mix of revenue from rates and Council borrowing. Given the significant costs associated with building and maintaining infrastructure this Strategy sets out the key infrastructure projects that Council has prioritised and budgeted to undertake over the next three years.

These projects will help ensure that we have infrastructure that is fit for the future, connects and protects the taonga that is Te Awa Kairangi ki Tai Lower Hutt, for generations to come.

THE STRATEGY AT AGLANCE

Vision

Our infrastructure supports Te Awa Kairangi ki Tai Lower Hutt to be a liveable city where all our people thrive: the social, economic, and cultural wellbeing of our community is sustained, and the health and safety of people, property and the environment is protected.

Council owns and manages 1845km of water network pipes and some 486km of roads and footpaths. This Strategy sets out the investment Council will make in core water and roading infrastructure projects over the next 3 years.

What wehavedelivered since2021:

• Tripled investment in water pipe renewals in 2022 and 2023 – compared to the previous 5 years

• Renewed 14.5 km of pipes in 2022-23 compared with 4kms in each year from 2017-2022

• Progressed the Tupua Horo Nuku (Eastern Bays Shared Path) and the Eastern Hutt road resilience projects.

Our infrastructurenetworks facereal challenges:

• Greater demand as the city population grows from 113,00 now to 137,000 by 2043

• Growing pressure from housing intensification, particularly on the valley floor

• An ageing water infrastructure network resulting from historical under investment and constrained regional water storage capacity

• Increased risk of climate induced high rainfall events and sea level rise creating inundation risk

• A lack of sustainable transport choices and increasing traffic congestion.

To address thesechallenges Council will:

• Invest in building, maintaining or renewing critical core infrastructure

• Engage with the community, other councils, and key partners

• Focus on ensuring that environmental standards are met, including water quality

• Take a long term strategic approach to building, maintaining and operating infrastructure

• Make sure that infrastructure investment mitigates the effects of a changing climate

• Make prudent financial decisions that are sustainable into the future and across generations.

Thekey water infrastructureprojects are:

• Pipe renewals

• Seaview Wastewater Treatment Plant

• Gracefield reservoir renewed

• Petone stormwater improvements

• Petone collecting sewer

• New Eastern Hills reservoir and outlet main

• Black Creek stormwater improvements

• Investment in universal smart water meters

Thekey transport infrastructureprojects are:

• Cuba Street overbridge seismic strengthening

• Cross Valley connections

• Subdivision roading improvements

• Eastern Hutt Road resilience

• Connected cycle and pathway network

• Tupua Horo Nuku

One of Council’s core functions is to build and maintain infrastructure which ensures the health and wellbeing of our residents as well as protecting people and property from significant and critical infrastructure risks.

The Long-Term Plan gives life to Council’s commitment to making Te Awa Kairangi ki Tai Lower Hutt a connected, resilient, and liveable city where all our residents can connect, thrive, and be part of vibrant neighbourhoods and communities. It supports this commitment by providing infrastructure that is fit for the future and protects the environment. Council achieves this by working closely with the community and other key partners, keeping our changing climate in mind, and operating in a financially sustainable way.

Infrastructure is intergenerational. Built well, infrastructure assets may last for over a century. Investment in infrastructure is lumpy, involving large up-front costs to develop and substantial capital investment when it needs replacing or requires significant maintenance. The long life of infrastructure means that significant cost peaks can be followed by troughs where relatively low expenditure is required.

Te Waihanga (the New Zealand Infrastructure Commission) has stated that New Zealand has under-invested in infrastructure in the past, resulting in lowered service quality, congested infrastructure services and insufficient capacity to support housing growth. Te Awa Kairangi ki Tai similarly faces significant infrastructure challenges, particularly in relation to an ageing water infrastructure network, increased pressure from population growth and the need to mitigate and adapt to our changing climate.

This Strategy articulates Council’s stewardship approach to the management of the core infrastructure in Te Awa Kairangi ki Tai and to meeting the challenges our infrastructure faces.

Council funds infrastructure through a mix of revenue from rates and Council borrowing. Given the significant costs associated with building and maintaining infrastructure, this Strategy sets out the investments in key infrastructure projects that Council has prioritised and budgeted to undertake. This aligns with the LongTerm Plan and Council’s Financial Strategy. Figure 1 below provides a snapshot of the core infrastructure in Te Awa Kairangi ki Tai

- Reservoirs

- Water main

- Pump stations

- Treatment plant

Wastewater

Local roads and footpaths

486

(roads) and

- Sewage trunk mains

- Pump stations

- Storage tanks, and

- Outfall pipeline

- Stormwater mains

- Pump stations

- Roadways and bridges

- Footpaths and walkways

- Cycleways

- Retaining walls and seawalls

- Traffic services, and

- Street lightning

WHY INFRASTRUCTURE MATTERS

It is hard to think of any event or activity in Te Awa Kairangi ki Tai that doesn’t use infrastructure. Our homes are connected to, served, and protected by essential water networks, and we access the many facilities in our city by using a connected network of roads and footpaths. Infrastructure provides an important base for our activities; the foundation for our economy to prosper; our people to be healthy, and our city to be safe. In short, infrastructure is critical to sustaining Te Awa Kairangi ki Tai as a connected, resilient, and liveable city.

As the steward of infrastructure assets in Te Awa Kairangi ki Tai, Council wants to ensure that the city’s residents have:

• Safe drinking water

• Wastewater collected from their homes and businesses, treated and safely discharged back into the environment

• Rainfall collected and taken away from their roads and properties to prevent flooding

• the ability to travel easily and safely throughout the city using alternative forms of transport

• Enjoyable public facilities in our community such as parks and reserves.

Infrastructure matters to residents

In responding to Council’s 2023 early engagement on the Long-Term Plan Draft Priorities and Principles, 89% of respondents agreed or strongly agreed that ‘providing infrastructure that is fit for the future’ should be a key area of focus for Council.

There was strong consensus among respondents that infrastructure stands at the core of Council’s duties, and that Council must invest in infrastructure that is not just sustainable but also future-ready, while also balancing the needs of the community and adhering to budgetary constraints.

“We need both the basic infrastructure that allows people to lead their every-day lives comfortably, but we ALSO need to be future-focused and think about what the Hutt needs in 5, 10, 20 years. It's actually not enough to just get the basics right - they're called basics for a reason. The Hutt needs to be ambitious and climate-focused when it comes to infrastructure.” (resident feedback 2023)

Results of Council’s Residents Satisfaction Survey (RSS 2023) shown in Figure2and Figure3 below, indicate a downward trend in resident satisfaction with council owned core infrastructure:

These results demonstrate that residents’ experiences of living in Te Awa Kairangi ki Tai are being impacted by the current state of our infrastructure. With a population that is projected to reach 137,000 by 2043, residents’ experiences are likely to be further negatively impacted unless there is substantial and ongoing investment in building and maintaining the infrastructure in Te Awa Kairangi ki Tai.

Here are some examples of the concerns about our infrastructure identified by residents who took part in the Resident Satisfaction Survey:

"The constant water issues in our area have significantly reduced quality of life. The harbour is frequently unclean to swim in and water pipes have regularly burst in the streets.”

"Because of all the infill housing not required to have off street parks roads are being congested with residents’ cars."

"Infrastructure is seriously underfunded. Water pipes in my neighbourhood burst monthly and leak huge amounts of water onto the roads for weeks or months after being reported before being repaired. The rivers are in a terrible state. Many places I used to swim for my entire childhood have notices up saying they are not safe for swimming or are visibly polluted or filled with massive amounts of sediment."

"Things like footpaths etc have been neglected and are often quite dangerous for older/disabled people. Too many water leaks are left running for long periods." (resident feedback 2023)

Infrastructure in the context of the changing climate

Infrastructure should protect and support people, property, and the environment. The changing climate, however, is increasingly creating challenges and issues for infrastructure networks throughout Aotearoa New Zealand. Te Awa Kairangi ki Tai is no exception to this. Located on a floodplain close to the inter-tidal zone, large parts of the city are vulnerable to natural hazards.

As the effects of our changing climate grow, intense storms and heavy rainfall increase the risk of surface flooding and slips. Rainfall that exceeds the capacity of the stormwater system may enter the wastewater system and create public health risks through human contact with potentially contaminated water. Conversely increased and prolonged dry periods may mean that the water supply is inadequate to meet demand.

Projected sea-level rise of between 50 cm and 80 cm by 2090 means that coastal properties and roads could be swamped or submerged, with an increased likelihood of storm surges damaging seawalls, roads, wharves, and properties. Sealevel rise may also pose a risk of ground salination, threatening the viability of using water from the underground aquifer.

Sea-level rise may also compromise the ability of the stormwater network to drain effectively and further exacerbate the impact of flooding, resulting in some of the city’s key infrastructure, particularly the Seaview Wastewater Treatment Plant, facing inundation.

“We can't keep kicking the climate can down the road like other councils and government groups have been doing for years. The time to take action is now. We will pay for it later on if we don't, so it's cheaper to invest now.”

(resident feedback 2023)

STRATEGY OUTCOMESAND SCOPE

This Infrastructure Strategy builds on Council’s 2018 and 2021 Infrastructure Strategies. It takes the ‘next step’ in a journey to improve Council’s stewardship of the infrastructure assets in Te Awa Kairangi ki Tai and ensure they are fit for the future. The Strategy’s vision supports the aim of Council’s Long-Term Plan to make Te Awa Kairangi ki Tai a liveable city, while the outcomes articulate what the Council wants to deliver.

Outcomes

Council intends to deliver the following outcomes:

• Infrastructure supports the future growth of Te Awa Kairangi ki Tai as a safe, healthy, liveable, and vibrant city

• Improved reliability, resilience, sustainability, and long-term adaptability of our infrastructure

• Improved resident satisfaction with infrastructure that is designed and managed well to meet community needs and aspirations.

Scope

This Strategy addresses the mandatory categories of infrastructure required under the Local Government Act 2002 (LGA):

• Water supply

• Wastewater (sewage treatment and disposal)

• Stormwater drainage and flood protection

• Roads and footpaths.

Categories of infrastructure not covered by this Strategy include:

• Council owned and managed parks and reserves, playgrounds, swimming pools, community facilities such as libraries, halls and integrated hubs, landfill facilities

• Regionally owned and managed ‘bulk’ water supply infrastructure, flood protection, public transport, coastal management, and emergency management services

• Government owned and managed rail corridors, state highways and bridges, schools, hospitals, conservation land, social services, and emergency services

• Privately owned and managed utilities – electricity, gas, and telecommunications.

Council has plans and policies in place to ensure that its other assets are well managed. Council shares or co-manages some infrastructure with other councils in the region, with Upper Hutt City Council and with the New Zealand Transport Agency (Waka Kotahi). Council works closely with these organisations to ensure effective and efficient delivery of infrastructure.

OUR CORE INFRASTRUCTURE NETWORKSINMORE DETAIL

Water Supply

Council’s water supply network receives treated water from the Greater Wellington Regional Council’s bulk water network. The water is stored in local reservoirs and distributed via a pressurised pipe network to consumers at their boundary toby. The water supply network consists of reservoirs, water mains, pumping stations, area meters, and tobies. Critical water supply assets include large diameter pipes, together with all reservoirs and pumping stations.

Most areas of the city meet expected water quality standards for water storage and water pressure, and careful management of this water supply and distribution infrastructure contributes to making sure good health outcomes are maintained.

A view of Council’s water network is provided in Figure4

Wastewater

The wastewater system collects, treats, and disposes of wastewater from residential and business properties, including industrial liquid wastes. The wastewater system consists of a network of pipes connecting to each property, which in turn discharge into a system of larger-diameter trunk sewer pipes.

There are two main trunk sewer pipelines for the Hutt Valley. One follows the western Hutt River stop bank, and the second passes through the eastern suburbs of Taita and Naenae, before following the rail corridor through to Moera. The trunk sewers convey wastewater from Lower Hutt (including Wainuiomata) and Upper Hutt to the Seaview Wastewater Treatment Plant.

Treated liquid effluent from the Seaview plant is dispersed via an outfall at Pencarrow Head, while the treated solid effluent is disposed of at the Silverstream landfill. Resource consents are in place for the discharge of treated wastewater and for overflows in the case of high flows. Ongoing monitoring and environmental scanning ensures compliance with current and potential future resource consents.

Critical wastewater assets include large-diameter pipes, trunk pipes, the Seaview Wastewater Treatment Plant, and the Silverstream Storage Tank. Seven out of the 22 pumping stations in the city’s wastewater network are identified as critical assets and these are closely monitored to ensure maintenance and renewals are undertaken when an unacceptable risk of failure is observed or predicted.

The extent of Council’s three water network infrastructure is shown in Figure5

Stormwater and Flood Protection

The stormwater system manages surface water run-off to minimise flooding and any adverse effects on the quality of the water it runs into. The primary stormwater system consists of pipes, open drains, retention dams and pumping stations. Stormwater is directed through streams, rivers, channels, and pipes to the harbour. ‘Secondary flow-paths’ are provided in some areas to accommodate floodwaters when the primary system is overloaded.

Flood protection is important for city planning and development based on management of risk. Components of a robust flood protection system include stop banks to prevent the occurrence of flooding, stormwater management to drain

water away effectively and efficiently, and land use controls to minimise exposure of property or infrastructure to flood risk.

To help manage storm events, resource consents are in place for when water levels cause discharges into rivers and streams, including intermittent discharges to the Waiwhetū Stream. This includes contaminants from the road such as oil and rubber. Ongoing monitoring and environmental scanning ensures compliance with current and potential future resource consents.

Roading and Footpaths

Council aims to ensure our roading network provides safe, convenient, and efficient transportation through the city. Well-designed road and footpath networks can enhance living environments for residents, and a well-functioning transport network recognises the needs of all road users, including pedestrians and cyclists.

The transport network in Te Awa Kairangi ki Tai comprises roads, footpaths, and roading assets including carparks, walkways, bridges, subways, street lighting, seawalls, and items such as parking meters. Roads and footpaths comprise approximately fifty percent of our total transport infrastructure value, bridges another twenty percent, with the remainder consisting of streetlights, parking meters, signage, and so on. Critical assets include key strategic or arterial routes and bridges.

The Cross Valley Connections Programme aims to improve the accessibility, safety, and resilience of the roading network in southern Lower Hutt. These are represented in Figure 6. This work will support urban growth as well as encouraging alternative modes of transport such as walking and cycling. This is important to address the increased traffic volumes and congestion generated by growth in Petone, Eastern Bays and Wainuiomata. Council’s micro-mobility programme of shared paths and cycleways is designed to promote multi-modal transport, better health outcomes and reduce vehicle emissions.

What wehavedelivered since2021

Council’s investment in infrastructure has increased significantly since 2021. Figure 6 below shows the increasing investment in water and transport infrastructure.

Good progress has been made on Tupua Horo Nuku (Eastern Bays Shared Path) and the Eastern Hutt Road resilience project. Additionally investment in the water network has tripled over the 5-year period and has delivered:

• 14.5 kms of three water pipe renewals in each of 2021-22 and 2022-23, with an estimated 15.3 to be completed in 2023-20242

• A Growth Study to identify future water infrastructure needs

• Design for a new reservoir to meet needs of the valley floor

• Renewal of very high critical assets such as the Barber Grove to Seaview Main Collecting Sewer.

Water networkrenewals: a casestudy in building increased resilience

The Eastern Hills reservoir will be designed to meet the latest national seismic hazard assessment standards and will be built to Importance Level Four (IL4), which is a minimum requirement by Wellington Water Ltd for drinking water reservoirs. This will be accomplished by adopting a sliding base design, flexible pipe connections that can absorb significant earthquake movements, and auto shut off valves that will prevent the uncontrolled release of water from the reservoir if the downstream bulk main fails. Specified structural components will contain and minimise any leakage in the event of an earthquake with a greater than a 1 in 2500 year recurrence.

The Petone Collecting Sewer crosses the Wellington Faultline. To increase the resilience of the Collecting Sewer, designed breakpoints with isolating valves will be installed. This means that in a significant seismic event the pipeline can be isolated and repaired quickly. This project is using a cast iron pipeline that will be lined with new polyethylene pipe which has greater tolerance for movement than the existing asbestos cement pipeline. Polyethylene pipes were also used in the recent renewal of the Barber Grove to Seaview Main Collecting Sewer.

2 This is an increase from an average of 4 kms in each year from 2017-2022. This represents 50% of what WWL recommends Council replaces annually to maintain our water network assets on a lifecycle basis.

THE CHANGING FACE OFTE AWA KAIRANGI KI TAI LOWER HUTT

Growth scenarios show Te Awa Kairangi ki Tai’s population both rising and ageing over the next 30 years, with a corresponding increase in the need for housing and infrastructure services. Housing intensification is visibly evident throughout the city. This higher-density housing has significant implications for our infrastructure.

Council will need to assess whether the condition and capacity of current water services infrastructure can absorb this increasing demand, particularly in areas of high-density housing. Similarly, Council will need to consider whether our transport networks can meet the expectations of a growing population to move easily throughout Te Awa Kairangi ki Tai.

Population Growth

The current population of Te Awa Kairangi ki Tai is estimated to be 113,000. Population growth is likely to be high by historical standards with Council expecting this figure to reach 125,000 by 2033, and 137,000 in 2043. In the past five years, the population has grown through natural increase (more births than deaths) and internal and external migration.

In the year ending June 2023, Aotearoa New Zealand experienced net migration growth of 86,800; the largest number of new migrants since May 2020. External migration will continue to contribute to population growth in Te Awa Kairangi ki Tai, although the largest number of new residents will come from other parts of Aotearoa New Zealand.

Our city’s population is ageing. Rates of projected population growth are highest at ages 50 and over, while the share of the population aged over 70 is expected to rise from 11% to 14% over the next 30 years. The fastest rates of expected growth are in the 80+ age group, while the lowest rates of population growth are expected for people in their 20s

Housing is Intensifying

Te Awa Kairangi ki Tai is experiencing rapid housing intensification. With an increasing population this trend is likely to continue. In 2023, Council amended the District Plan to enable a greater level development in the city (Plan Change 56). This includes permitting three-storey buildings and three units per site in most

residential areas and enabling buildings of six-storeys or more in areas near the city centre, Petone commercial centre and train stations. Plan Change 56 also introduced new restrictions on intensification in some areas, including for the purpose of managing natural hazard risks.

Under Plan Change 56, developments of four residential units or more in residential zones require resource consent. This will allow the capacity of water and transport infrastructure to service the development to be considered on a case-by-case basis. Figure 7 below shows the areas of Te Awa Kairangi ki Tai that will be designated as Medium Density Residential following the adoption of District Plan Change 56.

Urban Renewal - Changing the Central City

Urban renewal is an approach to planning which engages the community and works in partnership with the private sector, to provide new or replace out-of-date amenities, housing, and infrastructure. Te Wai Takamori o Te Awa Kairangi (Riverlink) is an example of urban renewal. Urban renewal can be delivered quickly because it requires less capital expenditure and organisational restructuring than regeneration, which often requires new policy and planning frameworks (see Figure 8 below.)

Council is establishing an Urban Renewal Programme to oversee urban development in Te Awa Kairangi ki Tai and deliver a central city that is thriving, vibrant, and meets the needs of diverse businesses, residents, and visitors. This includes the central city, with investments being made in Te Wai Takamori o Te Awa Kairangi (RiverLink), and through the Infrastructure Acceleration Fund (IAF).

“Council has an obligation to its citizens to provide clean, user-friendly, healthy spaces for recreation, sport and cultural events so as to enhance the wellbeing of its citizens’ mental wellbeing as well as physical wellbeing.” (resident feedback 2023)

TeWai Takamori o Te Awa Kairangi (Riverlink) - Acasestudy in how infrastructureinvestment supports urban renewal

Te Wai Takamori o Te Awa Kairangi is reinvigorating Hutt City, with a focus on attracting people to live, work and invest in the CBD. The key goals of Te Wai

Takamori o Te Awa Kairangi are to reorient the city to face and connect with the Awa and respond to climate change. The project will:

• Deliver Improved flood protection for the Lower Hutt city centre and areas south of the city

• Facilitate city redevelopment

• Provide resilient transport choices allowing all people and businesses to move safely and reliably within the city centre.

Te Wai Takamori o Te Awa Kairangi will enable property development along the river front. This includes the integration of buildings within the stop banks to provide direct physical and visual connections to the Awa. An upgraded stormwater network and wastewater upgrade will support the additional CBD population, as will improvements to the local road network and streetscapes in the areas bounded by Melling Bridge, Ewen Bridge, Cornwall Street and the river.

Flood protection work will combine river channel improvements with soft and hard bank edge erosion protection, maximise the width of river berms, and upgrade stop banks to allow for better flood conveyance and flood security. A key aspect of the flood protection scope of works is improving water quality and biodiversity along the river corridor.

A pedestrian and cycling bridge will connect Margaret Street to Pharazyn Street and Melling Train station will be relocated. The Melling Transport Improvements package of work will increase rail patronage and reduce commuter traffic on State Highway 2 by improving rail services on the Hutt Valley and Wairarapa lines and enhancing park and ride opportunities at stations in Te Awa Kairangi Lower Hutt.

The Infrastructure Acceleration Fund

In 2021, the Government announced the Infrastructure Acceleration Fund (IAF) initiative as part of the Housing Acceleration Fund also announced in 2021. The IAF is designed to allocate funding to new or upgraded infrastructure including transport, three waters and flood management infrastructure. Council received $98.9m of government IAF funding during 2022 to contribute to upgrading and updating stormwater and wastewater networks in the central city and valley floor.

As part of the funding agreement, Council has committed to enabling 3,500 homes to be built in the areas impacted by the water network upgrades. The housing outcomes agreed to in the IAF include:

• A mixture of medium density townhouses and high-density apartments

• Dwellings within a walkable distance of train stations and bus stops

• Proximity to employment, education, recreation, and cultural amenities

• Support from and development opportunities available to mana whenua

• Construction of over 2950 lower cost dwellings and public housing dwellings. The following projects are proposed:

• Melling Stormwater Pipeline - with associated pumpstations, discharging into the river via existing outfalls

• Woburn Stormwater Pipeline - with associated pumpstations, discharging into the river via existing outfalls

• Wastewater Pipeline - Sewer Rising Main, gravity diversions and pumpstations with an associated emergency storage tank. This project is required by the IAF agreement but is not funded by the IAF.

These projects are in the option development phase, with subsequent design to be completed before costs can be determined. The projects are partially IAF funded with Council expected to fund the remainder using development contributions and rates. They will be an integral component of Council’s 2027-2037 Infrastructure Strategy.

THE NATIONAL AND REGIONAL CONTEXT FOR INFRASTRUCTURE

Councils own and manage infrastructure networks in a wider context of legislative settings and national policy frameworks, as well as significant regional and local initiatives. This section sets out key changes that have occurred in the wider context since 2021.

Government’s Water Services Reform Programme

In 2023, the previous Government passed legislation establishing ten regional water services entities to operate, manage and maintain water infrastructure in Aotearoa New Zealand. In December, the new Minister of Local Government, Simeon Brown, announced that the Government will introduce and pass legislation to repeal the previous government’s water services legislation in early 2024.

The repeal bill is the first part of the Government’s new approach to water services delivery, Local Water Done Well, and was enacted in February 2024. The bill repealed former legislation regarding Three Water. Local Water Done Well has a fundamentally different approach to that of the previous Government. It does not require the establishment of and transition to new water services entities. Local Water Done Well recognises the importance of local decision making and flexibility for communities and councils to determine how their water services will be delivered in the future, while still retaining a strong emphasis on water quality and infrastructure investment.

The Minister Brown has indicated that transitional support options will provide flexibility for the needs and circumstances of different councils, and that the repeal bill will include provisions making temporary modifications to local government legislation for the transitional period affecting the 2024 long-term plans.

Te Mana o te Wai and the National Policy Statement for Freshwater Management

Te Mana o te Wai recognises the fundamental importance of water, and that protecting the health of water protects the health and well-being of the wider environment. Te Mana o te Wai is defined in the National Policy Statement for Freshwater Management (2020) as:

• Mana whakahaere: the power, authority, and obligations of tangata whenua to make decisions that maintain, protect, and sustain the health and wellbeing of, and their relationship with, freshwater

• Kaitiakitanga: the obligations of tangata whenua to preserve, restore, enhance, and sustainably use freshwater for the benefit of present and future generations

• Manaakitanga: the process by which tangata whenua show respect, generosity, and care for freshwater and for others

• Governance: the responsibility of those with authority for making decisions about freshwater to do so in a way that prioritises the health and well-being of freshwater now and into the future

• Stewardship: the obligations of all New Zealanders to manage freshwater in a way that ensures it sustains present and future generations.

• Care and respect: the responsibility of all New Zealanders to care for freshwater in providing for the health of the nation.

Council’s stewardship approach to infrastructure, outlined in this Strategy, gives effect to Te Mana o te Wai.

Managing the demand for water

Objective 3b of the National Policy Statement for Freshwater Management is to ‘improve and maximise the efficient allocation and efficient use of water’. Several major New Zealand cities, representing 60% of Aotearoa’s population, have introduced water metering to manage the demand for water, including Auckland, Tauranga and Christchurch.

Councils throughout Aotearoa New Zealand face an increasing demand for water resulting from population growth as well as from water loss caused by the poor condition of water infrastructure. This combination of issues means that councils are having to invest heavily in building or renewing infrastructure, or reducing the demand for water, or both.

In its 2013 report to central government, the Local Government Infrastructure Efficiency Expert Advisory Group stated that the introduction of universal water metering has the potential to offset investment in additional water supply infrastructure. While the costs of water metering need to be carefully considered the experience of councils that have implemented water metering show that charging for water can significantly delay the high capital costs associated with consenting new water sources and building new infrastructure, as well as removing

or reducing the need for seasonal water restrictions. Universal water metering reduces water use by:

• Increasing customer’s awareness of their water use and efficiency of use of water

• Identifying where water losses are occurring

• Developing a better understanding of the overall network balance which can enable councils to reduce water losses.

It is likely that advances in digital smart metering technology will see an increasing expansion of shared water metering programmes by councils, which will enable information to be sent directly to consumers; improve the identification and repair of leaks, and act to reduce the burden of significant infrastructure costs for councils and their ratepayers.

Transport

Effective transport networks that provide a range of low-emission transport options and reduce congestion are critical to sustainable urban and regional development focused on increasing housing supply, choice and affordability, and developing resilient and productive towns and cities.

Government has recently issued its draft Transport Policy Statement for 2024/25 –2033/34 which outlines six strategic priorities:

• Maintain and operate the transport system efficiently to meet current and future needs

• Increase the resilience of the transport system to better cope with natural hazards

• Reduce emissions by transitioning to a lower carbon transport system

• Provide sustainably safer transport for all

• Ensure well-designed and operated transport networks provide reliable, resilient, multi-modal, and low-carbon connections to support productive economic activity

• Enabling people to readily access social, cultural, and economic opportunities through a variety of transport options.

The priority transport projects set out in this Strategy are consistent with and designed to give effect to these priorities.

The forecast growth in population and consequently dwellings is expected to place further demands on the Transport network. In light of the financial pressures and prioritised investment in Three Waters, this is proposed to be managed through specific budget set aside to deal with transport network improvements related to

subdivisions. This funding will be prioritised for critical infrastructure. In addition, the planned projects like RiverLink also provide for transport related growth infrastructure.

Regional and Local Spatial Planning

The Wellington Regional Growth Framework 2021 (The Growth Framework) is the main spatial strategy for the Wellington region and describes a long-term vision for how the region will grow, change, and respond to key urban development challenges and opportunities. The main spatial elements of The Growth Framework for Te Awa Kairangi ki Tai are Future Urban Development Areas in the central Hutt triangle (an area encompassed by the city centre, and Naenae and Woburn Stations), Taitā, Petone North, and Wainuiomata North, as a well as a possible new West-East Growth Corridor between Johnsonville and Wainuiomata.

The Growth Framework identifies a range of regional initiatives required to implement the strategy, including:

• incorporating green infrastructure in new development;

• improving the environmental outcomes from greenfield development; and

• adapting to the impacts of the changing climate.

Some of the planned initiatives that contribute to these outcomes are Tupua Horo Nuku, Food and Green Organics service implementation, and the Reserves investment strategy.

Under Government’s National Policy Statement on Urban Development, councils in specified urban environments (the urban environment comprising Wellington City, Porirua City, Hutt City, Upper Hutt City and Kapiti District councils being one of them) are collectively required to prepare spatial plans known as Future Development Strategies (FDS). The purpose of a FDS is to promote long-term strategic planning. Councils do this by setting out how the local authorities intend to achieve well-functioning urban environments and provide sufficient development capacity over the next 30 years to meet expected demand.

A Future Development Strategy for the Wellington region and Horowhenua is being developed through collaboration between local authorities, central government, and Mana Whenua, and will replace The Growth Framework. Infrastructure is a critical element in the development of the Future Development Strategy because the capacity constraints of existing infrastructure will impact future growth plans

for the Wellington region. Council is also developing a spatial plan for Te Awa Kairangi ki Tai, including consideration of how to provide robust infrastructure networks that are resilient in the face of the impacts of natural hazards.

OUR INFRASTRUCTURE CHALLENGESAND RISKS

Ageing Water Infrastructure

Water infrastructure in Te Awa Kairangi ki Tai is ageing resulting in reduced network resilience, water loss, leakage of wastewater into the environment, and reduced ability to support population growth.

“Our infrastructure is old and very tired, especially sewer and stormwater pipe work and drinking water pipe work, designed, and installed with limited future proofing for the expanding city we now live in. It needs major upgrading now.” (resident feedback 2023)

Determining when assets need renewing is a complex task requiring good information. Some water infrastructure assets are visible, and their condition can be easily observed, while others are underground, making it difficult to forecast when they may fail. WWL uses closed circuit television cameras to check on the condition of the pipe network as well as smoke testing to check whether wastewater infrastructure is operating effectively.

The poor condition of our water infrastructure is evidenced by WWL estimates that throughout the wider region, over 40% of drinking water is being lost due to leaks resulting from ageing infrastructure, historic under-investment, and a backlog of renewals and repairs. They have received record numbers of service requests for leak repairs, with over 3,000 leaks awaiting repair across the Wellington region.

Stormwater Risks

Most of the existing stormwater infrastructure was originally designed to accommodate a five-year “average recurrence interval” rainfall event. Much of this stormwater infrastructure can be overloaded when more severe rainfall is experienced. Service level expectations are now higher than when the system was

designed, and general replacement or renewals are now built to a 10-year average recurrence interval standard.

During wet weather both stormwater and groundwater can infiltrate the wastewater system, leading to possible overloading of the system and overflows which create health, water recreation and water quality issues. Infiltration reduction strategies include pipeline inspection and renewal programmes and are aimed at minimising the entry of stormwater or groundwater to the wastewater system. We are now experiencing more intense rainfall events that put pressure on our stormwater networks. Planning for the effects of rainfall intensity because of the changing climate is being incorporated into design standards and stormwater mitigation solutions. It is not always practical, however, to build our way out of stormwater flooding issues, and case-by-case solutions such as plan changes or overland flow path options must be considered.

Figure 9 below show WWL’s assessment of the condition of the water supply, storm water and wastewater infrastructure in Te Awa Kairangi ki Tai, including the length of pipe infrastructure in each condition category. Condition four (poor) means that the infrastructure has between 5% and 20% of its life remaining, while at Condition five (very poor) the infrastructure has less than 5% of its life remaining, which is around three years.

The Pressure of Growth on Water Infrastructure

As the population of Te Awa Kairangi ki Tai grows more fresh water is needed per day, with a corresponding demand on the capacity of the wastewater network. WWL estimates that an additional 150,000 people (more than the population of Te Awa Kairangi ki Tai could be living in the wider Wellington region within the next 30 years. It warns that water use in the Wellington region is at an all-time high, primarily due to water loss, population growth and water usage patterns. As more houses are built there will be increased pressure on stormwater networks, including intensive housing creating more solid surface areas with reducing pathways for water to run off, although Council’s draft district plan will require new-builds to incorporate rainwater and greywater capture and use systems.

Council’s Three Waters Growth Study 2022 found that a significant programme of investigative, design and physical works was needed to meet the demands of future growth and bring existing networks up to target levels of service capacity. The study signalled that the possible costs of the interventions proposed in the study had an associated cost estimate of approximately $1.27 billion.

There is increasing pressure on the water storage capacity in the Wellington region as well as on the capacity of its water service networks. Water use restrictions have become a regular occurrence across the Wellington region. In Te Awa Kairangi ki Tai the demand for water will be exacerbated by proposed District Plan changes which will allow for greater housing intensification in parts of the city.

WWL provides the region’s councils with advice on the interventions needed to address leaks and the increasing risk of water shortages. They provided the following recommendations at a regional water shortage summit in September 2023:

• Keep the water in the pipes – invest in finding and fixing leaks, managing water loss and replacing old infrastructure;

• Reduce water demand through water metering – invest in universal smart meters across the metropolitan Wellington region; and

• Add more supply – build another pair of storage lakes to increase supply and complete the existing project to optimise Te Marua capacity.

The challenge facing Te Awa Kairangi ki Tai is further illustrated by WWL’s assessment that the length of water infrastructure pipe renewals achieved in 20222023, and similarly projected for 2023-2024, is about half of what is needed on an annual basis to maintain our water network assets on a lifecycle basis. They note that even if substantive additional funding was made available for water infrastructure renewal, the rate of renewal would be severely limited by the current capacity of the skilled workforce needed to carry out this work.

In summary, despite the increasing investment Council has and will make in water network renewal, current water storage constraints as well as capacity constraints in the regional water infrastructure workforce will impact the level of increased system and network capacity that can be achieved in the short to medium term. In combination with the need for Council to operate with fiscal prudence, this means there are two potentially unavoidable future risks:

• the likelihood of ongoing and potentially increasing water shortages across the Wellington region

• that Council will be unable to provide infrastructure support in all areas of housing development or renew ageing water infrastructure on a lifecycle basis in Te Awa Kairangi ki Tai.

“We've had decades of underinvestment in infrastructure both through national and local government, we have a deficit to address before we even

start planning for our rapid population growth in future.” (resident feedback 2023)

“I am concerned about the housing intensification and the impact this will have on our stormwater and also wastewater. With the significant increase in hard surfaces, the water has nowhere to go but into the stormwater drains, which can’t cope with a wee downpour at the best of times… add 40+ extra houses in the 200m radius around our home showering and flushing the loo on top of a climate crisis and we are going to have significant problems.”

(resident feedback 2023)

Key Transport Infrastructure Challenges

At a regional level, our transport network faces the following challenges:

• A lack of sustainable and attractive transport choices has resulted in an inefficient transport system

• The capacity of the public transport network has limited ability to accommodate future growth or achieve desired changes in people’s transport choices

• The current transport infrastructure isn’t designed to accommodate different forms of transport, leading to increasing conflicts between transport users.

These regional transport challenges are exacerbated in Te Awa Kairangi ki Tai by a fast-growing population and housing intensification, increasing congestion on key routes, and the threats of the changing climate. Te Awa Kairangi ki Tai’s transport network is highly vulnerable to disruption. The city only has two main North-South corridors and limited East-West linkages.

Our transport network lacks resilience to extreme weather, king tides, and seismic events. Some of our largest communities only have a single accessway and any disruption to this accessway could have a significant impact on our communities. Specific transport challenges in Te Awa Kairangi ki Tai include:

• Gaps in the walking and cycling network

• Busy streets and constraints such as the Hutt River and the rail line make it harder to travel by foot or bicycle

• Bus services are not frequent enough, are indirect, and are poorly integrated with rail services

• Roads and footpaths need to be redesigned to accommodate walking and cycling.

Increasing demand for ‘inner-city living’ will put pressure on areas such as the CBD and Petone, lead to changing requirements for road alignment, and speed up the need to move away from car-centric road design. Council wants to make it easier for people to get around using public transport, cycling or on foot by making these options more convenient, integrated, affordable, and attractive. An increase in demand for public transport will need to be accommodated by increased bus services and appropriate infrastructure, such as the provision of space for bus stops and bus lanes.

“Community amenities should be easily accessible to everyone. Relying less on cars and moving to more public transport hubs and walkable city centres/community areas will enable more people to move freely in these areas.” (resident feedback 2023)

The Multiple Effects of a Changing Climate and Natural Hazards

Our changing climate is posing increasingly real challenges to communities across Aotearoa New Zealand and risks to the infrastructure which communities rely on. The significant challenges facing Te Awa Kairangi ki Tai’s infrastructure as a result of more extreme climate events include sea-level rise and increased levels of rainfall.

Projected sea-level rise may compromise the ability of the stormwater network to drain effectively and exacerbate the impacts of flooding. Sea-level rise could also result in some of the city’s key infrastructure, particularly the Seaview Wastewater Treatment Plant, facing inundation, as well as increasing the risk of salination, which could threaten the viability of water from the aquifer. Projected sea-level rise of between 50 cm and 80 cm by 2090 means that coastal properties and roads could be swamped and submerged by water, and an increased likelihood of storms and tsunamis surging inland, damaging seawalls, roads, wharves, and properties.

Increased levels of rainfall that exceed the capacity of the stormwater network may result in groundwater entering the wastewater system, while increasing and prolonged dry periods may result in the water supply not being able to adequately meet demand. Both scenarios create health risks for residents.

“Climate change mitigation and adaptation is essential for survival. Strengthening the natural environment contributes to mitigation (sequestration) as well as promoting biodiversity. Increasing plantings and green spaces will support adaptation by providing shade, and converting areas prone to inundation to reserves will protect residents and businesses. Access to the natural environment supports health and wellbeing.” (resident feedback 2023)

Earthquakes pose a major natural hazard risk for Te Awa Kairangi ki Tai. A rupture of Wellington’s Hikurangi fault could cause extensive subsidence in Petone, liquefaction in floodplain areas, landslides and slope failure in the Western Hills, Eastern Bays and Wainuiomata Hill Road, and tsunami risk in Petone and Eastern Bays.

A significant seismic event could seriously disrupt critical single-access routes, particularly those connecting the Hutt Valley to Wellington, and to Wainuiomata. This loss of access may affect the transport of vital supplies. Any significant damage to roads, underground pipes, stormwater networks, or subsequent overflowing, could affect the ability of roads to function, particularly if heavy rainfall follows a seismic event.

Council’s planning for disaster events focuses on ensuring people have access to clean drinking water and sanitation. More generally the city’s infrastructure needs to be able to withstand a significant earthquake, both regarding structural integrity and regarding maintaining or resuming the provision of services with minimal disruption to the public. This strategy’s multi-asset approach recognises the close integration of transport and water infrastructure networks.

HOWCOUNCIL AIMSTO MEET THESE CHALLENGES

Council is taking a stewardship approach to managing infrastructure in Te Awa Kairangi ki Tai. Put simply, stewardship is about making sure we look after our assets. Council has a responsibility to ensure its infrastructure protects the health and safety of people, property, and the environment. Council’s stewardship approach aligns with the goals of the LTP to ensure Te Awa Kairangi ki Tai is a liveable and vibrant city by providing infrastructure that is fit for the future, and which supports and enhances the environment. Council will do this by engaging with the community, keeping the changing climate uppermost in mind, and making sure its infrastructure investments are financially sustainable. Dimensions of Council’s stewardship approach are described below.

Working with the Community and Partners

Council understands the importance of engaging with the community and stakeholders in planning, funding, and delivering infrastructure to ensure that key projects and decisions reflect community values and ambitions. Council wants to create an ongoing dialogue with the community. Its Community Engagement Strategy outlines Council’s commitment to engaging with the community, including in-depth consultation on major infrastructure projects. This Infrastructure Strategy is an integral part of the Long-Term Plan and the extensive consultation process that has helped shape it.

Close collaboration with key stakeholders such as Waka Kotahi and other Wellington Water Limited shareholder councils is critical to building and maintaining high quality infrastructure. Council wants to ensure that its goals are aligned with the objectives of these organisations to maintain a smooth working relationship and clear focus on infrastructure. Waka Kotahi meets some of the cost of our roading and shared path projects (for example see Te Wai Takamori o Te Awa Kairangi case study). Council works closely with Waka Kotahi as a co-investor in our transport network on the policies and priorities which will impact their funding decisions for this infrastructure.

Supporting and Enhancing the Environment

Water is one of our most important natural resources. Council is focused on ensuring it delivers high quality water and minimising any potential contamination of the water supply. It aims to ensure an adequate supply of water, while balancing this against the environmental impact of water sourcing, through both supply and demand management. Council works closely with WWL to make sure relevant environmental standards are met or exceeded. Council also aims to minimise the unpredicted or accidental occurrence events that can result in stormwater and wastewater infrastructure networks carrying contaminants. Infrastructure can have large practical and visual effects in determining the ‘look’ and ‘liveability’ of Te Awa Kairangi ki Tai, as well as having effects on natural habitats and ecosystems. Council makes every effort to ensure that the integration of infrastructure with the natural environment provides the opportunity to achieve better environmental outcomes and infrastructure amenities. This means ensuring that infrastructure is in place to best serve the community in which it is located, balanced against social and environmental considerations.

Spatial Planning for Future-Fit Infrastructure

Government’s Infrastructure Efficiency Expert Advisory Group and the National Infrastructure Unit of Treasury advocate using a spatial planning approach to drive future investment in infrastructure. Infrastructure needs to take geographical and spatial factors into account. Roads need to be near the land use they serve, while other infrastructure, such as wastewater treatment facilities, is best located away from sensitive land uses.

Spatial planning informs long-term strategy development through the analysis of a wide range of spatial factors: development patterns, natural hazard risks, the natural environment, and infrastructure. Spatial planning aligns these components in a series of maps and diagrams, to illustrate Council’s plans for an area, including the possible types of development for the area and the infrastructure that would be necessary to support development.

Council works actively with the other councils of the Wellington region, central government, and Mana Whenua on spatial planning at a regional scale through the Wellington region’s Future Development Strategy. Council is progressing the development of a city spatial plan to consider how to accommodate our population growth over the next 30 years. This will help inform the future provision of robust infrastructure networks, including infrastructure that is resilient to the impacts of natural hazards.

Mitigating and Adapting to a Changing Climate

The Ministry for the Environment recommends that councils plan for a sea-level rise of between 50cm and 80cm by the 2090s, and continuing rises beyond that. In a 2023 report on coastal inundation and sea level rise assessment for Hutt City District prepared for the Hutt City Council, the National Institute for Water and Atmospheric Research (NIWA) suggest that sea levels are expected to rise by 1.65m to 1.94m by 2130.

The way Council builds and manages infrastructure needs to take the changing climate and increasing climate-related hazards into account. Climate adaptation will be incorporated into the design of new infrastructure projects as well as focusing on making existing infrastructure networks more resilient.

Flood protection in urban areas takes place via stormwater management and is the responsibility of Council. Flood protection through managing significant waterways such as the Hutt River is primarily the responsibility of the Greater Wellington Regional Council. Council works closely with the Regional Council to

develop and implement “catchment environmental strategies” (currently in place for the Hutt River) and Floodplain Management Plans (currently in place for the Hutt River and under development for the Waiwhetu Stream).

Greenhouse gases emitted by transport account for a significant proportion of Te Awa Kairangi ki Tai’s total emissions and have a negative effect on our natural environment and public health. Council will pursue transport networks that enable motor vehicles to travel as efficiently as possible. It will also encourage alternative means of travel, such as walking or biking, and the use of public transport to reduce emissions.

Tupua Horo Nuku (Eastern Bays Shared Path) – a casestudy in climate adaptation

An example of how Council is managing and adapting to our changing climate is Tupua Horo Nuku – the Eastern Bays Shared Path, which is building a 4.4-kilometre walking and cycling path between Eastbourne and Ngā Matau. The design of Tupua Horo Nuku includes mitigating sea and storm surges which currently occur in the Eastern Bays. Tupua Horo Nuku demonstrates a future focused approach to planning, designing, and building infrastructure which protects people, property, and infrastructure.

Sustainable Investment in Infrastructure

Community feedback from the early engagement on the Long Term Plan emphasised financial sustainability as a pivotal concern. The overarching message from the survey underscored Council's duty as a steward of its financial resources, and to balance immediate needs with future challenges, including the changing climate. Respondents indicated a strong desire for long-term infrastructure investments, combined with strategic debt management and a clear focus on Council's intergenerational responsibilities.

“Future funding should always be properly planned with best, likely and worst outcomes projected including risks such as high inflation as it’s very

clear we never projected or resourced for such circumstances which have always been a risk in the past”

“The Council can’t do everything - we need to prioritise spending. Rates cannot keep rising” (resident feedback 2023)

Council funds it’s capital expenditure mainly from borrowing and then spreads the repayment of that borrowing over several years. This enables Council to better match funding with the period over which the benefits will be derived from assets and helps ensure intergenerational equity. Council tries to optimise projects which attract capital subsidies and grants from other government agencies such as Waka Kotahi, and contributions from Upper Hutt City Council, in relation to wastewater activities. Infrastructure projects to accommodate growth may also be partly funded by developers.

Council’s Financial Strategy sets debt to revenue limits and constraints on increasing rates, to ensure its capital expenditures are affordable in the long term. Council therefore prioritises funding the maintenance and renewal of existing core infrastructure assets and will review the timing and scope of large projects to ensure expenditure on assets is made at the most cost-effective time.

Ensuring Levels of Service

Council will comply with all appropriate legislation and standards and ensure that wherever possible our infrastructure meets the needs of today without compromising the needs of our future residents. Sound management of our assets is essential to improving the design, development, and management of our infrastructure. Council’s Activity Management Plans require the levels of service provided by our infrastructure partners to be of a high standard in terms of quality, responsiveness, and timeliness. The following indicators are used to monitor the performance and service provided by city infrastructure:

• Performance measures: performance measures published in the Long Term Plan and reported on in Council’s Annual Report’ allow the community to judge the standard of the infrastructure service

• Customer standards: quality and service availability, target response times for addressing problems with service provision, and courtesy, e.g., keeping property owners informed of system maintenance or other works

• Activity standards: activity standards cover aspects of activity likely to be of concern to the community, such as service quality, customer focus, cost-

effectiveness, environmental performance, and compliance with legal and industry standards

• Management indicators: indicators relating to the performance of assets (e.g., pump stations), and the performance of service contracts.

We do not want the condition of the city’s infrastructure to impact negatively on our communities and have taken steps to solve this by significantly lifting our investment in infrastructure. For example, Council has committed $2.8 million more in operational funding to immediately fix the backlog of leaky pipes. There is also additional operating funding allocated to monitoring and investigations as well as reactive maintenance work to mitigate the risks associated with constrained capital investment over the next 10 years.

This Strategy has been prepared with the expectation that the levels of service will continue at 2023 levels. What the community will see as a result of the increased funding is that critical infrastructure, such as the Seaview Treatment Plant, Gracefield Reservoir and the multi-modal transport corridor connecting Gracefield and State Highway 2 (Cross Valley Connection) will be delivered to improve the capacity and resilience of the water and transport networks. But there are tradeoffs with this approach. Because we are investing within the available funding envelope, we will not be able to address some known issues, such as the backlog of pipe renewals. As a result, people will still experience some loss of service if the infrastructure fails.

We need to remain mindful that even with this investment, we still might not be able to get on top of the work required to prevent asset failure. While the focus of this strategy is for 10 years, there are significant challenges beyond the period of this plan related to the deferred investment and how this will be funded. Overall, Council is satisfied that this approach balances affordability and the investment needed to maintain acceptable levels of service for our communities.

Water Asset Levels of Service

Council is facing big issues with our water infrastructure. The reality is that our water infrastructure has suffered from enormous underinvestment, making it harder for us to meet the needs of our growing city. The largest part of our budget for this 10 Year Plan is being set aside for water infrastructure because we are facing a challenge of leaks in our ageing water infrastructure combined with population growth.

Council is faced with making decisions around increasing our spend on water services to give us all confidence in the quality of our drinking water, the ability of our wastewater systems to maintain a reliable service for our communities. We want Wellington Water Ltd to have the funds to be able to fix more leaks, replace pipes and other ageing infrastructure.

Wellington Water has proposed a significantly higher investment in our water services and the proposal we have indicated as preferred is to invest $1.5 billion over 10 years, but does not fully address all the improvements potentially required but considers the impact of a Rates rise to the rate payers in our community. The other option is to invest $2.6 billion over 10 years which would include a network upgrade and more pipe renewals but may be unaffordable to ratepayers.

Transport Asset Levels of Service

Council has undertaken market testing for delivering the required service levels in asset maintenance and renewals. Overall, there is good confidence for delivering the capital programme required to meet service levels for the immediate term. 35% ($94m) of the Maintenance, Operating and Renewals costs for the next three year has had a robust technical methodology applied for its creation (resealing and pavement rehabilitation). This work was re-tendered in mid-2023. A further 30% ($94m) was re-tendered in mid-2023 for maintenance costs in the street, street lighting maintenance contracts, with cleaning contract being extended for another year.

Validating maintenance performance helps avoid unexpected capital renewal costs and adds to the confidence of the immediate term costs.

The first three years of the capital spend accurately reflects planned service levels, available funding and current supplier costs. For years 4 to 10 in the Long-Term Plan, calculations are indexed against global planning assumptions of the Council’s long-term plan process. There is not necessarily inclusion of new assets maintenance or renewal requirements or contingency costs for condition deterioration beyond economic life thresholds. For periods beyond the 10-year mark, currently maintenance and renewal assumptions are extrapolated from the Long-Term plan into the 30-year horizon. Renewals are generally forecast as incremental rather than with “lumpy” replacement milestones.

IMPLEMENTING THE STRATEGY

Prioritising Investment to Address our Infrastructure Challenges

Core infrastructure is expensive to build and the investment requirement to maintain it can be periodic but significant. Council would like to address all the infrastructure issues experienced by the community as quickly as possible, however there are real funding and other constraints that mean this cannot be the case. There is an obvious tension between the need for investment in infrastructure and the need to stay within the parameters of the Council’s Financial Strategy.

Council’s investment in infrastructure is designed to meet the real and significant challenges described earlier in this Strategy:

• Addressing our ageing infrastructure

• Supporting growth and meeting demand

• Building network resilience

• Adapting to the impacts of a changing climate

The prioritisation of the investments that Council will make in addressing its core infrastructure challenges have been guided by Council’s Financial Strategy and align with the strategic priorities outlined in the Long-Term Plan. Additional factors which have informed this prioritisation include:

• Urgency – what is the urgency of the infrastructure issue?

• Affordability – what level of funding can Council put towards addressing this issue?

• Partnership optimisation – can Council optimise partnership funding for infrastructure?

• Capital achievability – the significant increase in the capital programme, particularly in water services, also carries a level of uncertainty and risk to achievability. Wellington Water and Council has been building capacity and capability over the last few years to improve delivery performance. Through the last 10 year plan 2021-31, we started making changes to address challenges around deliverability. This has included additional operating funding to support WWL to increase capacity and capability, improved planning processes with supply partners and engaging a range of project delivery resources to better manage and deliver projects. Council has also been reviewing its organisational structure and making incremental changes through increased project delivery staff and the functions that support them. It is important to us that there are no delays to the

programme as that may result in not meeting planned levels of service or greater costs in the long term.

This Strategy sets out the priority investments in infrastructure that Council considers prudent, realistic, and achievable, and which optimise the funding available to Council to invest in infrastructure.

Investing in Water Infrastructure

Our greatest water infrastructure challenge is a rapidly ageing water network. Council’s strategic approach to investing in water infrastructure is aligned to that of other councils in the wider region, namely:

• Keeping the water in the pipes by investing in finding and fixing leaks, managing water loss and replacing ageing infrastructure

• Minimising the future cost of water infrastructure by exploring ways of reducing the demand for water and influencing water use behaviour

• Adding more water supply by building additional water storage capacity.

Water Asset management lifecycle

The water asset management lifecycle and renewals are based on an age-based profile and the target renewal rate in partnership with Wellington Water. This does not take into account condition and is intended to ensure that at the end of 30 years, we will have removed the backlog of renewals and be able to reduce the rate of renewals to a long-term, sustainable level that aligns with the rate of deterioration.

Within this renewal profile we prioritise the assets with the worst condition to be renewed. Condition assessments were undertaken in 2022 and 2023 of critical assets, which included 140km of pipe, 25 water reservoirs, 25 pumping stations and the wastewater treatment plant assets. 1358 leaks have been fixed in Lower Hutt since 1 July 2023 (as of 12 December 2023). We renewed 14.5km of pipes in 2022/23. A significant increase from an average of 4km in previous years. Smart water meters do need to be installed and is estimated to cost $78 million over six years.

Tables 1-3 below sets out the key projects to address our ageing water infrastructure, meet the growing demand for water, and build the resilience of our water infrastructure. By far the largest investment will be directed to fixing leaks and renewing the pipe network.

Key project Explanation

Three waters Network Renewals

Seaview Wastewater Treatment Plant

Parts of the water supply, wastewater and stormwater service are in very poor condition. This investment will focus on fixing known leaks and increasing the number of kilometres of the water network which are renewed.

Cost Funding source Time period

$639M 30% funded by UHCC for shared assets only. Remainder through debt and development contributions

2024/25 to 2033/34

Gracefield Reservoir

The Seaview Wastewater Plant is nearing the end of its service life. This project will deliver a number of critical plant system renewals including the sludge dryer, odour control systems, and UV systems.

$195M 30% funded by UHCC (shared asset). Remainder through debt and development contributions

2024/25 to 2034/35

The Gracefield reservoir is in poor condition and this project will deliver a replacement reservoir. This work will occur once the

$34M Debt

2030/31 to 2031/32

Key project Explanation

new Eastern Hills reservoir has been commissioned to ensure continuity of supply.

Cost Funding source Time period

Petone Stormwater Improvements

This project will deliver upgrades to the Udy Street stormwater main.

$48M Debt and development contributions

2028/29 to 2033/34

Petone Collecting

Sewer

The main collecting sewer for Petone is at the end of its service life and has been assessed as being highly vulnerable. This project will deliver a replacement collecting sewer.

$83M 30% funded by UHCC (shared asset). Remainder through debt and development contributions

2024/25 to 2029/30

Eastern Hills Reservoir and Outlet Main

Implementing universal smart water meters

There is a water shortage in the Central Hutt water supply zone. This project will support growth on the valley floor and address the existing shortfall in water supply.

$84M Debt and Development contributions 2026/27 to 2028/29

The increasing demand for water will outstrip future water supply capacity and create significant future water related infrastructure costs. Exploring options for managing the demand for water is a key component of regional council’s strategy to reduce the future costs of water infrastructure.

$78M Debt 2024/25 to 2029/30

This project will address flooding risks and address future stormwater demand.

The graphs below show the relative proportions of Council’s investment in water infrastructure, with the vast bulk of the investment being directed to addressing ageing infrastructure, and to network renewals in particular. This includes detecting and fixing water leaks.

Focussing on critical water assets

The key challenge that Council faces with its water assets is the prioritisation of available investment across an ageing network, due to a constrained borrowing capacity combined with ratepayer affordability in the current economic climate.

This strategy incorporates Council’s decision to substantially increase investment in waters assets over the next 10 years to ensure renewal of all critical assets, such as the Seaview Wastewater Treatment Plant, along with investment in new assets to meet growth expectations on the valley floor. This is to ensure that major outages or disruptions to service are less likely to occur.

What has been excluded from the preferred option is significant investment in renewing local pipe networks. For waterpipes, around 50% of what is required to be renewed has been included and only 10% of wastewater pipes. These will continue to deteriorate with the likelihood of more local outages or disruption to services.

This means that Council has made a decision to defer investment to later years in some local network renewals which is likely to result in a continued level of local network outages and disruption to services.

All water projects in the draft plan, once adopted, will not require a further decision, unless circumstances change (such as new legislative requirements) that require a change. One project that is yet to be determined is the capital investment required to renew or refurbish the main Outfall pipe, but this is some years away from a decision and would likely fall into the 2027-2037 LTP and accompanying Infrastructure Strategy.

Further decisions will also be required in respect to renewing network discharge consents which are likely to impose level of service improvements. Network improvements required to meet the new Levels of Service will likely require significant investment which is currently not fully known or funded in this strategy

Investing in Water Infrastructure – What We Will See and Impacts on Service Levels

Council received advice on its water assets from WWL. As a result of this advice Council is proposing a significantly higher capital budget for the maintenance and renewal of these assets, although not at the level proposed by WWL due to constraints on debt and rates funding.

The constrained level of investment Council can make in water infrastructure, in combination with the need for WWL to build the necessary workforce capacity, will mean that the water network renewal programme of work will extend beyond the 30-year period of this Infrastructure Strategy. The budgeted spend is expected to result in improvements to the water network over the next 10 years, although the community will continue to experience a level of disruption caused by both the network renewal programme, and from a level of ongoing leaks occurring in the water network.

Council’s investment in its water infrastructure will address both leaks and pipe network renewal ensuring that 18km of pipes are replaced in 2024/25, rising towards 30km per year from 2030 onwards. This includes the pipes leading to the Seaview Wastewater Treatment Plant and scoping work in relation to renewal of the pipe running from the plant to the outfall at Pencarrow. A recently completed comprehensive condition assessment of the Seaview Waste Water Treatment Plant indicated a need for urgent investment in renewing critical plant items over the next three years. $195M has been included in the first ten years of this Strategy to address this.

Partnership Funded Water Infrastructure

As outlined earlier, Government announced the Infrastructure Acceleration Fund (IAF) initiative in 2021. The IAF is designed to allocate government funding to new or upgraded infrastructure including transport, water and flood management infrastructure. Council secured $98.9million of government IAF funding in 2022 to contribute to upgrading and updating the stormwater networks in the central city and valley floor.

The following projects have been proposed:

• Melling Stormwater Pipeline – with associated pumpstations, discharging into the river via existing outfalls.

• Woburn Stormwater Pipeline – with associated pumpstations, discharging into the river via existing outfalls.

• Wastewater Pipeline – Sewer Rising Main, gravity diversions and pumpstations with an associated emergency storage tank. This project is required by the IAF agreement but is not funded by the IAF.

These projects are in the option development phase, with subsequent design to be completed before costs can be determined. The projects are partially IAF funded with Council expected to fund the remainder using development contributions and rates. They will be an integral component of Council’s 2027-2037 Infrastructure Strategy.

Investing in Transport Infrastructure

Council’s Transport Plan sets out an ongoing programme of work to maintain, operate and renew the roading network in Te Awa Kairangi Lower Hutt. This programme includes roading, cycle path, footpath and environmental maintenance. The aim of this programme of work is to ensure that the city has a resilient and sustainable transport system that provides the community with transport options that connect people easily, safely, and affordably to where they need to go, whether they go by bike, foot, public transport, or car.

In addition to this ongoing programme of work Council will be investing in key transport projects designed to address ageing roading infrastructure, meet the growing demand on the city’s roading network, building the resilience of our roading network, and ensuring the roading network is adapting to the impacts of the changing climate. These key projects are set out in Tables 4-7 below.

Transport Asset management lifecycle

The transport asset management lifecycle refers to Council’s systematic approach to managing its transport assets (roads, footpaths, lighting and cycleways) efficiently throughout their lifespan. By managing assets throughout this lifecycle, Council can optimise asset use, minimise costs, and ensure the safety, reliability, and efficiency of transportation networks in Te Awa Kairangi ki Tai Lower Hutt.

The outcomes from a 2020 Investment Logic Mapping Problem Definition workshop were reviewed and updated for inclusion in the 2023 Asset Management Plan and 2024-2034 Long-Term Plan. There were three focus areas:

1. Network compliance (to address aging infrastructure)

2. Network resilience (resilience/ Environmental considerations)

3.

Network future capacity

To provide greater funding certainty and confidence, work has begun at Council to undertake long-term condition assessments, by asset class including cyclical renewal profiles. When completed, these will be aligned with the forward plan of asset construction to inform longer-term maintenance and renewals plan (including costs) which are currently not available.

Detailed condition reports will commence by mid-2024. In parallel with this work, Council is improving the level of internal technical capability and asset management systems needed to support this activity. By working to understand capital renewal requirements beyond the first three years, we will be able to provide greater confidence around forecasting assumptions in the future. In light of the financial pressures due to funding constraints, investment in waters infrastructure has been prioritised, with funding in Transport being mainly focused on Maintenance, Operations and renewals (MOR) projects as well as those with significant partner funding.

Key project Explanation Cost Funding source Timeperiod

Cycleway and micromobility programme A programme of investment towards a connected cycle and pathway network across Hutt City.

$60.4m 51% of programme subsidy funded, remainder debt and development contributions

2022-31

Key project Explanation Cost Funding source Time period

Tupua

Horo Nuku

Construction of a new shared path between Windy Point and Point Howard to provide safer walking and cycling and construction of a new sea wall to improve the resilience of the road.

$79.9M Around 30% through debt and the rest of funding provided by Waka Kotahi/ NZTA and Crown Infrastructure Partners

2022 – 2026

Investing in Transport Infrastructure - what we will see and impacts on service levels

Council’s Integrated transport strategy developed in 2022 identified some key challenges for our transport network. This strategy sets out a 10 year plan designed to ensure the roading network is well maintained to allow for vehicle movement with a high level of safety and a low level of delays, ensure footpaths are smooth and free of hazards, and provide cycle lanes which give separation from heavy traffic.

Council has prioritised the areas most in need of renewals through the conditioning rating survey and testing done by our consultants. Further work will be undertaken to create a 10-year renewals plan which will form the basis of the next Long-Term Plan.

To provide greater certainty over long-term renewals, work has begun to ensure that we have an evidence-based future work programme that stipulates the required maintenance and renewals requirements to maintain and renew transport assets. This draft Long-Term Plan has been set based on the existing levels of service as a 10-year programme is developed ahead of the next LongTerm Plan.

The Integrated Transport Strategy 2022 is expected to improve the overall condition of the transport network in Te Awa Kairangi ki Tai over the next 10 years. The key projects outlined above will make a significant contribution to the objectives of the Integrated Transport Strategy by improving the resilience of key transport corridors, investing in a cycle and pathway network and, critically, future proofing the transport network so that it is able to meet the needs of a growing population.

While funding constraints have played a role in deciding the transport investments set out in this Strategy, these projects are expected to improve the overall condition of the transport network over the next 10 years. Government’s transport priorities are yet to be finalised and it is likely that further changes may be required in future plans to reflect these priorities.

Significant upcoming decisions for transport infrastructure

All bridges are subject to contracted periodic assessments.

A forward schedule is created based on the assessed

The funding subsidy for this has been included in the 2021-24 NLTP and is subject to extension approval by NZTA.

Key project Significant decisions made Significant decisions to be made Seismic strengthening of Cuba street overbridge

Key project Significant decisions made Significant decisions to be made criteria. The decision to undertake strengthening was made prior to 2021 and included in the relevant LTP documents.

Subdivision roading improvements

Eastern Hutt Road resilience

To provide for additional funding in the LTP 2024 and NLTP 2024-27 subsidy submission to address this project, This cost has also been factored into the Development Contribution work that will be consulted on in the draft Long-Term Plan.

To provide for additional funding in the LTP 2024 and NLTP 2024-27 subsidy submission to address this project,

If funding was not approved by NZTA, or cost estimates exceed LTP estimates, this could require further Council decisions.

Cross Valley connections

Cycleway and micro-mobility programme

The business case for this programme was approved by Council and NZTA in 2021.

To provide additional funding in the LTP 2024 and NLTP 2024-27 subsidy submissionfor the next phases of work.

The business case for this programme was approved by Council and NZTA in 2021.

To provide additional funding in the LTP 2024 and NLTP 2024-27 subsidy submissionfor the next phases of work..

If funding was not approved by NZTA, or cost estimates exceed LTP estimates, this this could require further Council decisions. The EHR business case included a cycleway which has been split out and included in the Cycleway and micro-mobility programme.

If funding for one, but not the other, was approved by NZTA, this could require a decision by Council to fund 100% the project not subsidised by NZTA.

If funding is not approved by NZTA, or cost estimates exceed LTP estimates, this could require further Council decisions.

If NZTA or Government transport funding priorities change, this may impact this programme and Council may face significant decisions.

If funding is not approved by NZTA, or cost estimates exceed LTP estimates, this could require further Council decisions.

If NZTA or Government transport funding priorities change, this may impact this programme and

ASSUMPTIONSINFORMING THE STRATEGY

Life cycles of significant transport infrastructure assets

Lifecycle management of transport assets is set out in section 2.7.7 of the Tranpsort Asset Management Plan (AMP). This approach assumes that management through an asset’s life cycle to maximise its usable life is coupled with, targeted interventions to optimise asset life, level of service, and funding requirements. A performance and gap analysis (AMP section 3.3) sets out the application of this targeting which informs forward works planning.

Growth or decline in the demand for relevant services

The current population of Te Awa Kairangi ki Tai Lower Hutt is about 113,000. We’re expecting this figure to reach 125,000 by 2033. Population growth of this scale is putting huge pressure on our supply of houses and infrastructure like pipes and roads. Council’s investment projections incorporate the policy position which requires developers of new houses to contribute to the cost of growth-related infrastructure such as the cost of the pipes and roads to help support our increasing population

Increases or decreases in relevant levels of service

Our planned investment in water and transport infrastructure in the 10 Year Plan is expected to maintain current levels of service for the duration of the plan. For example, we have committed $2.8 million more operational funding to immediately fix the backlog of leaky pipes. This will help maintain our current service levels. Even with this investment, some uncertainty remains. The budgeted spend on water is expected to result in improvements to the water network over the next 10 years, although the community will continue to experience a level of disruption caused by both the network renewal programme, and from a level of ongoing leaks occurring in the water network. While we are satisfied that our approach balances affordability and the investment needed to maintain acceptable levels of service for our communities, we are also mindful that this will require us to make the assets last longer than what Wellington Water Limited has advised.

While funding constraints have played a role in deciding the transport investments set out in this Strategy, these projects are expected to maintain the overall condition of the transport network over the next 10 years. Government’s transport priorities are yet to be finalised and it is likely that further changes may be required in future plans to reflect these priorities and subsequent impacts on levels of service

Government’s Water Services Reform Programme

The Government has advised that it will be repealing the legislation enacted by the previous government for water reform. The repeal bill is the first part of the Government’s new approach to water services delivery, Water Done Well, which recognises the importance of local decision making and flexibility for communities and councils to determine how their water services will be delivered in the future, while still retaining a strong emphasis on water quality and infrastructure investment.

Council has prepared this Strategy on the assumption that it will remain responsible for water related infrastructure assets.

Funding and Financial Sustainability

Council’s Financial Strategy focuses on the next 10 years. Council will fund the projects outlined in this Strategy through a mixture of general and targeted rates, as well as user subsidies, grants, fees, and charges and development contributions. Council manages borrowing and repayments within the framework specified in the Liability Management section of the Treasury Risk Management Policy. Council’s Financial Strategy further sets debt to revenue limits and constraints on increasing rates in the long term. Council has therefore given priority funding to maintaining and renewing its existing assets and will review the timing and scope of large projects to ensure future expenditure on assets is done at the most cost-effective time. Council will also optimise funding from other government agencies and development contributions.

There are funding challenges associated with the deferred programme of investment in years 11-30 which can potentially only be addressed through additional funding from Central government or reduction in service levels. There is a large degree of uncertainty as to how this will be managed.

The Condition of Water Assets

Although the condition of Council’s water network is expected to improve significantly over the period of this strategy, condition assessments for these assets may reveal that they have aged faster than our modelling anticipates. WWL has made assumptions regarding the average useful lives and remaining lives of the current asset groups, based on current local knowledge, experience, and historical trends. These need to be reviewed and accuracy improved based on physical inspections and assessments of deterioration.

FINANCIAL PROJECTIONS

The projections included below (Figures 10-15) relate to the proposed Three Waters and Transport capital investment included in the Draft Long-Term Plan 2024-34.

The step up in opex from year 11 onward is as a result of the unconstrained capital programme from this point which has direct associated operating costs such as depreciation. Additional opex has been built into years 1-10 to manage monitoring, investigations, and maintenance activities to offset the capital funding at levels lower than recommended for Three Waters.

Year 11 onwards represents a capital programme unconstrained by funding limitations and is at the required levels to deal with renewals and backlog for Three Waters. There is significant uncertainty associated with how this will be funded in the future.

APPENDIX1

Local Government Act requirements relating to InfrastructureStrategies

101B Infrastructurestrategy

(1) A local authority must, as part of its long-term plan, prepare and adopt an infrastructure strategy for a period of at least 30 consecutive financial years.

(2) The purpose of the infrastructure strategy is to—

(a) identifysignificantinfrastructure issues for the local authority over the period covered by the strategy; and

(b)identify theprincipaloptions for managing those issues and the implications of those options.

(3) The infrastructure strategy must outline how the local authority intends to manage its infrastructure assets, taking into account the need to—

(a) renew or replace existing assets; and

(b) respond to growth or decline in the demand for services reliant on those assets; and

(c) allowfor planned increases or decreases in levels of service provided through those assets; and

(d) maintain or improve public health and environmental outcomes or mitigate adverse effects on them; and

(e) provide for the resilience of infrastructure assets by identifying and managing risks relating to natural hazardsand by making appropriate financialprovisionfor those risks.

(4) The infrastructure strategy must outline the most likely scenario for the management of the local authority’s infrastructure assets over the period of the strategy and, in that context, must

(a) show indicative estimates of the projected capital and operating expenditure associated with the management of those assets

(i) in each of the first 10 years covered by the strategy; and

(ii) in each subsequent period of 5 years covered by the strategy; and

(b) identify

(i) the significant decisions about capital expenditure the local authority expects it will be required to make; and

(ii) when the local authority expects those decisions will be required; and

(iii) for eachdecision, the principal options the localauthority expects to have to consider; and

(iv) the approximate scale or extent of the costs associated witheach decision;

and

(c) include the following assumptions on which the scenario is based:

(i) the assumptions of the local authority about the life cycle of significant infrastructure assets:

(ii) the assumptions of the local authority about growth or decline in the demand for relevant services:

(iii) the assumptions of the localauthority about increases or decreases in relevant levels of service; and

(d) if assumptions referred to in paragraph (c) involve a high level of uncertainty,—

(i) identifythe nature of that uncertainty; and

(ii) include anoutline of the potential effects of that uncertainty.

(4a) A local authority must, for a long-term plan for or after 2027–2037, identify and explain, in the infrastructure strategy, any significant connections with, or interdependencies between,

(a) the matters included in that infrastructure strategy; and

(b) the matters that are

(i) included inan infrastructure strategy prepared and adopted by a water services entity under section 157 (and see alsoclause 16 of Schedule 1) of the Water Services Entities Act2022; and

(ii) relevant to the localauthority’s districtor region.

(5) A local authority may meet the requirements of section 101A and this section by adopting a single financial and infrastructure strategy document as part of its long-term plan.

(6) In this section, infrastructure assets include

(a) existing or proposed assets to be used toprovide services by or on behalf of the local authority in relation to thefollowing groups of activities:

(i) water supply:

(ii) sewerage and the treatment and disposalof sewage:

(iii) stormwater drainage:

(iv) flood protection and control works:

(v) the provision of roadsand footpaths; and

(b) any other assets that the local authority, inits discretion, wishes to include in the strategy.

Significance and engagement policy

All councils are required to have a Significance and Engagement Policy under the Local Government Act 2002. The policy must be reviewed every three years.

Council must ensure that the community receives every opportunity to engage with the decision-making process, particularly in cases where the decision is significant and may represent a material departure from an existing policy.

Our Significance and Engagement Policy sets out the general approach that Hutt City Council will take to determining the significance of proposals and decisions relating to issues, assets or other matters. It also sets out the criteria or procedures that are to be used by Hutt City Council in assessing the extent to which issues, proposals, assets, decisions, or activities are significant or may have significant consequences. For the community, the policy clarifies how and when communities can expect to be engaged in decisions about different matters

You can read the full Significance and Engagement Policy here: [LINK]

Development and financial contributions policy

The Development and Financial Contributions policy is a key part of our funding toolkit, helping to provide funding for growth-related infrastructure. The policy is aligned to our Financial Strategy principle of “growth pays for growth”. This means allocating costs and charges where they fall. Council can impose both development and financial contributions to help fund growth related infrastructure, but these must not both be imposed on a development for the same purpose.

Councils can require financial contributions to be made under s108 (2)(a) of the Resource Management Act 1996 through setting conditions requiring a contribution of money or land or can be a combination of the two (s108(9)). Financial contribution charges are established through the District Plan and summarised in the Development and Financial Contributions Policy

Development contributions are payments made to council by developers towards the costs of planned infrastructure required such as water services or roading, to meet the future needs of the growing community. Development contributions are levied on development and are established in a Development and Financial Contributions Policy, which the Council must review every three years.

The purpose of the Policy is to ensure that a fair, equitable, and proportionate share of the cost of infrastructure is funded by development.

You can review Council’s full proposed Development and Financial Contributions policy here: [LINK]

Ratesremissionpolicy

Councils can have a Rates Remission Policy to provide relief from rates. These are set in accordance with section 102(3) of the Local Government Act 2002.

A Rates Remission Policy provides a reduction in the amount of rates payable on a property.

Council has developed a proposed a Rates Remission for this 10 Year Plan. Our proposed Rates Remission Policy will grant relief in nine different scenarios including some rates for schools and up to $250 towards the rates for those on a low-income.

Check out the full proposed policy in our supporting documents <link>

Ratespostponementpolicy

Councils can have a Rates Postponement Policy to provide relief from rates. These are set in accordance with section 102(3) of the Local Government Act 2002.

A Rates Postponement Policy delays the need for rates to be paid to a point in the future.

Council has reviewed the Rates Postponement Policy for this 10 year plan and is proposing no changes. Our Rates Postponement Policy can help some small businesses and those experiencing financial hardship.

Check out the full proposed policy in our supporting documents <link>

Ngā ringaringa me ngā waewae o

Te Kaunihera - Council controlled organisations

Seaview Marina Limited

Objectives:

Council’s objective for Seaview Marina Ltd (SML) is for it to own and operate Seaview Marina.

Natureandscopeofitsactivities:

Seaview Marina Limited (the Company) is responsible for the operation of the boating facilities and services, the maintenance of infrastructural assets and the development of additional facilities and services as demand dictates.

Council requires SML to own and operate Seaview Marina as a facility for the enjoyment of Te Awa Kairangi ki Tai Lower Hutt community and to support charitable non-profit ventures with a marine focus without compromising its commercial objectives and environmental responsibilities. KeyPerformanceIndicators

12

To provide financialor non- financialsupport to at least three charitable (nonprofit) ventureswith a marine focusduring any given financial year.

Support to at least three organisation s Support to at least three organisation s

Support to at least three organisation s

13 Public benefit Perform survey of public opinion on marina facilities (duringthird quarter)

Environmental

14

Reduce direct emissions

15

Fleet and equipment

Reduce direct emissionsby 50% by 2030, and achieve net zero emissionsby 2050

Equipment or vehicles utilising fossil fuels to be phased out by equipment or vehicles that are electric or utilise other low carbon alternative.

Reduce direct emissionsby 50% by 2030, and achieve net zero emissionsby 2050

Equipment or vehicles utilising fossil fuels to be phased out by equipment or vehicles that are electric or utilise other low carbon alternative.

Reduce direct emissionsby 50% by 2030, and achieve net zero emissionsby 2050

Equipment or vehicles utilising fossil fuels to be phased out by equipment or vehicles that are electric or utilise other low carbon alternative.

Annually

Bi-Annually

Annual footprint report provided by HCC

Annually

Notes to Performance Measures

1. Operational expenses are defined as all expenses controllable by Seaview Management. Excludes depreciation and finance charges and losses arising from the revaluation of similar assets within an asset class.

2. Return on equity is defined as net Surplus / (Deficit) before tax and dividends and excluding losses or gains arising from the revaluation of similar assets within an asset class divided by the opening balance of equity at the start of the year.

3. Excludes carry forward of expenses on projects from prior years, unless specifically budgeted for (e.g., where project spans two or more fiscal periods). Refers to the total capital budget.

4. March 2022 saw an occupancy high of 89%. More recent wider pricing pressure has seen occupancy decline to 82% in February 2023, where it has hovered since. Occupancy strategies can be expected to return previous high occupancy levels at a gradual rate.

Urban Plus Limited

The Urban Plus Group comprises Urban Plus Ltd (UPL), UPL Developments Ltd and UPL Ltd Partnership.

Objectives:

Council’s objective for UPL is for it to own and operate a portfolio of rental housing and develop property in preparation for sale or lease. The company’s activities include property development, rental property management, provision of strategic property advice to Council and the purchase of surplus property from Council for development.

Natureandscopeofitsactivities:

UPL was established in 2007 as a specialist property company charged with supporting the objectives of Council by providing housing outcomes for Lower Hutt. UPL has managed and invested into its portfolio of social housing since it took ownership of the portfolio from Council in 2007. UPL also provides specialist property services and advice to Council and is involved in a range of development activities.

UPL’s primary focus has been on delivering social housing for low-income elderly and releasing affordable and market housing for sale. Council’s expectation is that UPL continues the delivery of wider housing outcomes and benefits.

Key performanceindicators: Rental

1.1

1.4 Tenant satisfaction with the provision of the company’s rental housing greater than or equal to 90%.

1.5 Percentage of total housing units occupied by low-income elderly3 greater than or equal to 90%.

1.6 Annual rental increases to be no greater than $50 per week per unit.

1.7 Increasing the portfolio size to 220 units by December 2025.

1.8 Any rental housing units purchased and not already utilising electricity or renewable sources of energy for space heating, water heating, and cooking facilities, shall be converted to utilise only electricity or renewable sources of energy within five years of acquisition.

1.9 New rental housing units constructed by UPL to utilise only electricity or renewable sources of energy for space heating, water heating and cooking facilities.

Property Development

1.10 Capital expenditure within budget.

1.11 Operational expenditure within budget.

1.12 All new developments shall only utilise electricity or renewable sources of energy for space heating, water heating and cooking facilities.

1.13 All new housing units (standalone house or townhouse) shall achieve a certified HomeStardesign rating of at least six stars 4

3 ’Aged 65-plus’ in this context relates to an applicant for a residential tenancy, that at the time of application, is able to demonstrate:

i. that they are eligible for National Super (aged over 65 years – this being subject to review periodically by Central Government);

ii. that they have no other income;

iii. that they do not have cash or assets of such a magnitude that would mean they could make independent accommodation choices.

4 The assessment criteria being: Either - an independent review by a certified HCC Homestar Assessor to qualify the design would satisfy and meet the appropriate the Homestar 6 standards for each UPL project –Or, via a formal registration and certification process via NZGBC. The decision on which option to utilise is at the discretion of UPL officers in terms of financial impact to projects on a case-by-case basis.

1.14 A pre-tax return of not less than 15% on Development Costs including Margin and Contingency on housing released to market (except where the Board and Shareholder agree otherwise to achieve specified objectives).

1.15 Value of divestment to Community Housing Providers (or socially likeminded organisations) set at each project’s Development Cost (includes contingency and GST) plus a margin of no greater than 12.5% (except where the UPL Board and Shareholder agree otherwise to achieve specified objectives).

1.16 Long term public rental accommodation pre-tax returns at no less than (or equal to) 3.0% after depreciation5

Professional Property Advice

1.17 Achieve a market return on additional services provided to the Shareholder.

UPL Developments Limited

1.18 Undertake, negotiate and execute tender and procurement processes for and on behalf of the Partnership and ‘parent’ company as required.

1.19 Facilitate civil and construction contracts for and on behalf of the Partnership and ‘parent’ company as required.

1.20Facilitate payment of contract progress claims for Board approved contracts as well as payments to other suppliers engaged to provide services or goods to defined development projects.

1.21 Should UPLDL be used for future developments, the same performance measures apply as for Property Development (refer above).

1.22Act as General Partner when a Limited Partnership structure is utilised for development projects.

UPL Limited Partnership

1.23 Develop land in a manner which maximises its value at a level of risk appropriate for the investment of funds.

5 Returns are specific to each project’s (Board Approved) business case where long term market rentals are developed. Future rents are set as per independent annual review.

1.24 To perform business undertakings in common with UPL with a view to profit from development projects for the purposes of funding for the elderly housing portfolio and meeting the Shareholder’s wider key priority outcomes.

1.25 Should UPLLP be used for future developments, the same performance measures apply as for Property Development (refer above).

Wellington Water Limited

Objectives:

Wellington Water Ltd (WWL) fully manages, under contract, drinking water, wastewater and stormwater (Water services) for Hutt City Council. It provides safe and environmentally sustainable services to Council with a focus on contracted service delivery for the operation, maintenance and ongoing development of drinking water, stormwater and wastewater assets and services, and asset management planning. WWL operates as a business on a non-profit basis.

Natureandscopeofitsactivities:

WWL manages the Three Waters networks through a pool of expert staff and resources available to the region. Shareholding councils are Lower Hutt, Wellington, Porirua and Upper Hutt City Councils, along with the South Wairarapa District Council. WWL also manages the bulk water assets for the Greater Wellington Regional Council.

Performancemeasures

WWL provides a reliable water supply, wastewater and stormwater management service to Council. Its key performance measures for each of the Three Waters activities are outlined in section two of the draft annual plan.

Hō mātou pūtea - Our finances

Financial statements

Notes to the financial statements

Reportingentity

Hutt City Council isa territoriallocal authority establishedunderthe Local Government Act 2002 (LGA) and is domiciled andoperates in NewZealand. Council was first formed as Lower Hutt City Council on 1November 1989 by theamalgamation of five localauthorities. Thename waschangedto the Hutt City Council by a special Act of Parliament on 8 October 1991. The relevant legislation governingtheCouncil’soperationsincludedthe LGA and the Local Government (Rating)Act 2002.

The group consistsof theultimate parent,Hutt City Council, anditssubsidiaries/councilcontrolledorganisations (CCOs),Seaview MarinaLtd and Urban Plus Ltd Group (both 100 per cent owned). The Urban Plus Ltd Group consistsof Urban Plus Ltd andits100 per cent ownedsubsidiaries UPL Development Ltd andUPL Ltd Partnership. Council’s 17 per cent equity share ofitsassociate Wellington WaterLtd is equity accounted. Council’s subsidiaries/CCOs are incorporated and domiciledin NewZealand.

Councilandthegroup providelocal infrastructureand local public servicesand perform regulatory functionsto the community. Council does not operateto makea financial return. Accordingly, Councilhas designated itself and the group aspublic benefit entities (PBEs) forfinancialreportingpurposes.

The financial statementspresentedare for Councilonly anddo not include group information.

Basisofpreparation

Statementofcompliance

The draft financial statementshave been prepared in accordancewith therequirements of the LGA andthe Local Government (FinancialReportingand Prudence) Regulations 2014, which includes the requirement to comply with generally accepted accounting practice in New Zealand.

The draft financial statementshave also been prepared in accordance with Tier1 PBE accounting standards and comply with those standards.

The draft prospective financial statementswere authorised forissue by Councilon TBC. Council,that authorise the issueof the prospectivefinancial statements,are responsible for the prospective financial statementspresented,including the appropriateness ofthe assumptionsunderlyingthe prospective financial statements and allother required disclosures. No actual resultshave been incorporated in these prospective financial statements. Councildoesnot intendto updatetheprospective financial statements subsequent to presentation.

Measurementbase

The draft financial statementshave been prepared on ahistoricalcost basis, modified by the revaluation of landand buildings, certain infrastructural assets and financial instruments (including derivative instruments), which have been measured at fair value. Management isnot aware ofany material uncertaintiesthat may cast significant doubt on Council’s ability to continue asa going concern.Thedraft financial statementshave

therefore been prepared on a goingconcern basis,and the accounting policieshave been applied consistently throughout the period.

Presentationcurrencyandrounding

The draft financial statements are presented in New Zealand dollars, andall values are roundedto thenearest thousand dollars($000). The functionalcurrency of Councilis New Zealand dollars.

Summary of significant accounting policies

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits or service potential will flow to Council and the revenue can be reliably measured, regardless of when payment is being made.

Revenue is measured at the fair value of consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The specific recognition criteria described must also be met before revenue is recognised.

Interest

Interest income is recognised using the effective interest method.

Dividends

Revenue is recognised when Council’s right to receive the payment is established, which is generally when shareholders approve the dividend.

Rental revenue

Rental revenue arising from operating leases or rental agreements on properties is accounted for on a straight-line basis over the lease or rental term and is included in revenue in the Statement of Comprehensive Revenue and Expense.

General and targeted rates revenue

General rates, targeted rates (excluding water-by-meter) are recognised at the start of the financial year to which the rates resolution relates. They are recognised as the amounts due. Council considers that the effect of payment of rates by instalments is not sufficient to require discounting of rates receivable and subsequent recognition of interest revenue.

Rates arising from late payment penalties are recognised as revenue when rates become overdue.

Revenue from water-by-meter (charged on usage) is not considered to be a rate in terms of this policy.

Rates remissions are recognised as a reduction of rates revenue when the Council has received an application that satisfies its Rates Remission Policy.

Rates collected on behalf of the Greater Wellington Regional Council (GWRC) are not recognised in the financial statements, as in this case the Council is acting as an agent for the GWRC.

Governmentgrants, subsidies and funding subsidies

Council receives government subsidy from the NZ Transport Agency - Waka Kotahi, which subsidises part of the costs of maintenance and capital expenditure on local roading infrastructure. The subsidies are recognised as revenue upon entitlement, as conditions pertaining to eligible expenditure have been fulfilled.

Other grants received

Council receives grants and subsidies from other organisations. Other grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when the conditions of the grant are satisfied.

Infringement fees and fines

Council recognises revenue from fines (such as traffic and parking infringements) when the notice of infringement or breach is served by Council. The fair value of this revenue is determined based on the probability of collecting fines, which is estimated by considering the history of fines over the preceding two-year period.

Development andfinancial contributions

Development and financial contributions are recognised as revenue when Council provides, or can provide, the service for which the contribution was charged. Otherwise, development and financial contributions are recognised as liabilities until such time as Council provides, can to provide, the service for which the contribution was levied.

Vested assets

Where a physical asset is acquired for nil or nominal consideration, the fair value of the asset received is recognised as revenue when control over the asset is obtained. The fair value of vested or donated assets is usually determined by reference to the cost of constructing the asset. For assets received from property development, the fair value is based on construction price information provided by the property developer.

Borrowing costs

Borrowing/finance costs are recognised as an expense in the period in which they are incurred. Borrowing costs consist of interest and other costs that Council incurs in connection with the borrowing of funds. Council has chosen not to capitalise borrowing costs directly attributable to the acquisition, construction or production of assets.

Income tax

Income tax expense includes components relating to both current tax and deferred tax.

Current tax is the amount of income tax payable based on the taxable profit for the current year, plus any adjustment to income tax payable in respect of prior years. Current tax is calculated using tax rates (and tax laws) that have been enacted or substantively enacted at balance date.

Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses. Temporary differences are differences between the carrying amount of assets and liabilities in the Statement of Financial Position and the corresponding tax bases used in the computation of taxable surplus.

Deferred tax is measured at the tax rates that are expected to apply when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at balance date. The measurement of deferred tax reflects the tax consequences that would follow from the way the entity expects to recover or settle the carrying amount of its assets and liabilities.

Deferred tax liabilities are generally recognised for all taxable temporary differences.

Deferred tax assets are recognised to the extent that it is probable that taxable surplus will be available against which the deductible temporary differences or tax losses can be utilised.

Deferred tax is not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition of an asset and liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting surplus nor taxable surplus.

Current tax and deferred tax are recognised against the surplus or deficit for the period, except when it relates to a business combination, or to transactions recognised in other comprehensive revenue and expenses or directly in equity.

Cash and cash equivalents

Cash and cash equivalents (current assets) in the Statement of Financial Position comprise cash at bank, cash in hand, deposits held at call with banks and other shortterm highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.

For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents, as defined above, net of outstanding bank overdrafts. Bank overdrafts are shown within interest-bearing loans and borrowings in current liabilities in the Statement of Financial Position.

Debtors and otherreceivables

Debtors and other receivables are initially measured at their face value, less an allowance for expected credit losses. A receivable is uncollectable when there is evidence that the amount due will not be fully collected. The amount that is uncollectable is the difference between the amount due and the present value of the amount expected to be collected.

Derivative financial instruments

Council uses derivative financial instruments such as interest-rate swaps to manage exposure to interest-rate risks arising from Council’s operational and financing activities. Council does not hold or issue derivative financial instruments for trading purposes.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently measured at their fair value at each balance date. As Council does not designate its derivative financial instruments as hedging instruments for accounting purposes, the associated gains or losses on derivatives are recognised within surplus or deficit.

Derivatives are carried as current or non-current assets when their fair value is positive and as current or non-current liabilities when their fair value is negative, depending on the maturity of the instrument.

Property, plant andequipment

Property, plant and equipment consist of:

Operational assets

These include land, buildings, landfill post-closure, improvements, library books, plant and equipment, collection items and motor vehicles.

Restricted assets

Restricted assets are mainly parks and reserves owned by Council that provide a benefit or service to the community and cannot be disposed of because of legal or other restrictions.

Infrastructure assets

Infrastructure assets are fixed-utility systems owned by Council. Each asset class (roading assets, water assets, stormwater assets and wastewater assets) includes all items that are required for the network to function. For example, sewerage reticulation includes reticulation piping and sewer pump stations.

Land (operational and restricted, except land under roads) and art collections are measured at fair value. Buildings and infrastructure assets are measured at fair value less accumulated depreciation. All other asset classes are measured at cost less accumulated depreciation and impairment losses.

Measurement subsequent to initial recognition – revaluation

Land (excluding land under roads), buildings and infrastructural assets are revalued with sufficient regularity to ensure their carrying amount does not differentiate materially from fair value, at least every three years.

The carrying values of revalued assets are assessed annually to ensure that they do not differ materially from the assets’ fair values. If there is a material difference, then the off-cycle asset classes are revalued.

Revaluation of property, plant and equipment is accounted for on a class-by-class basis.

The net revaluation results are credited or debited to other comprehensive revenue and expense and are accumulated to an asset revaluation reserve in equity for that class of asset. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive revenue and expense but is recognised in the surplus or deficit. Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive revenue and expense.

The fair value of land, buildings, site improvements and collection assets are their market value. The fair value of the roading, water assets, stormwater assets and wastewater assets are measured using the depreciated replacement cost. Fair value is assessed by an independent registered valuer.

Additions

The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to Council and the cost of the item can be measured reliably. Work in progress is recognised at cost less impairment and is not depreciated.

In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired through non-exchange transactions, it is recognised at its fair value as at the date of acquisition.

Disposals

An item of property, plant and equipment is de-recognised upon disposal or when no further future economic benefits or service potential are expected from its use or disposal. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are reported net in the surplus or deficit. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to accumulated funds.

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to Council and the cost of the item can be measured reliably. The costs of day-to-day servicing of property, plant and equipment are recognised in the surplus or deficit as they are incurred.

Depreciation

Depreciation is provided on a straight-line basis on all property, plant and equipment (other than land, land under roads and art collections), at rates calculated to allocate the cost or valuation of the asset less any estimated residual value over its remaining useful life. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.

In respect of revalued assets, the useful life is adjusted to a rate recommended by the independent valuer as at the date of the revaluation.

Upper Hutt City Council’s interestin the bulk wastewater system

The Hutt Valley and Wainuiomata bulk wastewater system is managed by Council.

Upper Hutt City Council pays an annual levy to Hutt City Council based on an apportionment formula equating to between 29 per cent and 33 per cent of the funding requirements. While Upper Hutt City Council does not have legal ownership of the bulk wastewater system, it is entitled to a share of the proceeds from any sale of the assets.

Upper Hutt City Council’s interest in the bulk wastewater system assets is deducted from the value of property, plant and equipment recognised in the Statement of Financial Position. Funding contributions from Upper Hutt City Council are recognised as revenue in the surplus or deficit if the contributions are for the operation of the bulk wastewater system. Funding contributions for capital work are recognised as an increase in Upper Hutt City Council’s interest in the bulk wastewater system assets.

Intangible assets

Software acquisition and development

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs that are directly associated with the development of software for internal use by Council are recognised as an intangible asset.

Direct costs include the software development employee costs and an appropriate portion of relevant overheads.

Staff training costs, costs associated with maintaining computer software and costs associated with development and maintenance of Council’s website are recognised as an expense when incurred.

Resource consents

Costs associated with registering a resource consent in the wastewater activity are recognised as an intangible asset.

Amortisation

The carrying value of an intangible asset with a finite life is amortised on a straightline basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is de-recognised. The amortisation charge for each period is recognised in the surplus or deficit.

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Computer software

Resource consents

2–10 years 10.00% – 52.55%

12–29 years 3.33% – 7.86% (life of the consent)

Impairment of property, plant, equipment and intangible assets

Intangible assets subsequently measured at cost that have an indefinite useful life, or are not yet available for use, are not subject to amortisation and are tested annually for impairment.

Property, plant, equipment and intangible assets subsequently measured at cost that have a finite useful life are reviewed for indicators of impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

If an asset’s carrying amount exceeds its recoverable amount, the asset is regarded as impaired and the carrying amount is written down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss is recognised in the surplus or deficit.

Creditors andother payables

Short-term creditors and other payables are recorded at face value.

Borrowings

Borrowings are initially recognised at their face value plus transaction costs. After initial recognition, all borrowings are measured at amortised costs using the effective interest rate.

Borrowings are classified as current liabilities, unless Council has an unconditional right to defer settlement of the liability for at least 12 months after the balance date.

Employee entitlements

Short-term benefits

Employee benefits that Council expects to be settled wholly before 12 months after the end of the period in which the employee renders the related service are measured on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at, balance

date, and retiring and long-service leave entitlements expected to be settled wholly before 12 months.

Council recognises a liability and an expense for bonuses where contractually obliged or where there is a past practice that has created a constructive obligation.

Long-term benefits

Employee benefits due to be settled beyond 12 months after the end of the period in which the employee renders the related service include retirement gratuities. Due to the low value of the benefit and the fact that most employees who are entitled to this benefit have now accrued full entitlements, no actuarial valuation has been undertaken. The calculation is based on the entitlements accruing for eligible staff based on years of service using current remuneration rates.

Presentation of employee entitlements

Annual leave and vested long service leave are classified as a current liability. All other employee entitlements are classified as a non-current liability, as retirement dates are not known.

Superannuation schemes

Defined contribution schemes

Obligations for contributions to KiwiSaver and defined contribution superannuation schemes are recognised as an expense in the surplus and deficit as incurred.

Provisions

Council recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in ‘finance costs’.

Landfill post-closure costs

As operator of the Silverstream Landfill site, Council has an obligation to ensure the ongoing maintenance and monitoring services at landfill sites after closure. Council also has an obligation to monitor the closed landfill site at Wainuiomata and other sites previously operated by local authorities subsequently amalgamated to form Hutt City Council.

A site restoration and aftercare provision has been recognised as a liability in the Statement of Financial Position. Provision is made for the present value of closure and post-closure costs when the obligation for post-closure arises. The calculated cost is based on estimates of closure costs and future site trade waste charges and monitoring costs. The estimated length of time needed for post-closure care is 25 years.

The calculations assume no change in the legislative requirements or technological changes for closure and post-closure treatment. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to Council.

Amounts provided for closure and post-closure costs are capitalised to the landfill asset where they give rise to future economic benefits, or if they are incurred to enable future economic benefits to be obtained. The capitalised landfill asset is depreciated over the life of the landfill based on the capacity used. The provision of landfill post-closure costs is valued annually by an independent valuer.

Equity

Equity is the community’s interest in Council and is measured as the difference between total assets less total liabilities. Equity is disaggregated and classified into the following components:

• accumulated funds (comprehensive revenue and expenses)

• council-created reserves

• restricted reserves

• asset revaluation reserves.

Accumulated comprehensive revenue and expense is Council’s accumulated surplus or deficit since the formation of Council, adjusted for transfers to/from specific reserves.

Reserves represent a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or created by Council.

Council-created reserves are established by Council. They may be altered without reference to any third party or the courts. Transfers to and from these reserves are at the discretion of Council.

Restricted reserves are subject to specific conditions accepted as binding by Council, which may not be revised by Council without reference to the courts or a third party. Transfers from these reserves may be made only for specified purposes or when certain conditions are met.

Asset revaluation reserves relate to the revaluation of property, plant and equipment to fair value after initial recognition.

Goods and services tax (GST)

All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are stated on a GST-inclusive basis. Where GST is not recoverable as input tax it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the Statement of Financial Position.

The net GST paid to or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the Statement of Cash Flows.

Operating statements included in the Statement of Service Performance

The operating statements report the net cost of services for significant activities of Council. Council has derived the net cost of services for each significant activity using the cost allocation system outlined below.

Direct costs are charged directly to significant activities. Indirect costs are charged to the significant activities based on cost drivers and related activity or usage information.

Each significant activity has been charged an internal interest cost. The net interest cost incurred by Council is allocated to each significant activity based on the net book value of property, plant and equipment used by the activity.

Critical accountingestimates and assumptions

In preparing these financial statements, Council management has made estimates and assumptions concerning the future that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures. These estimates and assumptions may differ from the subsequent actual results. Estimates are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within future financial years are discussed below.

Infrastructural assets

There are a number of assumptions and estimates used when performing depreciated replacement cost valuations over infrastructural assets. These include:

• The physical deterioration and condition of an asset: for example, Council could be carrying an asset at an amount that does not reflect its actual condition. This is particularly so for those assets that are not visible; for example, stormwater, wastewater and water supply pipes that are underground. This risk is minimised by Council performing a combination of physical inspections and condition modelling assessments of underground assets

• Estimating any obsolescence or surplus capacity of an asset

• Determining the remaining useful lives over which the asset will be depreciated. These estimates can be impacted by the local conditions, for example, weather patterns and traffic growth. If useful lives do not reflect the actual consumption of the benefits of the asset, then Council could be over- or under-estimating the annual depreciation charge recognised as an expense in the Statement of Comprehensive Income. To minimise this risk Council’s infrastructural asset useful lives have been determined with reference to the New Zealand Infrastructural Asset Valuation and Depreciation Guidelines published by the National Asset Management Steering Group and have been adjusted for local conditions based on past experience. Asset inspections, and deterioration and condition modelling, are also carried out regularly as part of the Council’s asset management planning activities, which gives Council further assurance over its useful life estimates.

Experienced independent valuers perform Council’s infrastructural asset revaluations.

Provision for landfill aftercare costs

The long-term nature of the liability means that there are inherent uncertainties in estimating costs that will be incurred. The future cash outflows for the provision have been estimated taking into account existing technology and known changes to legal requirements.

Provisions are measured at management’s best estimate of the expenditures required to settle the obligation at the reporting date and are discounted to present value where the effect is material.

In determining the fair value of the provision, assumptions and estimates are made in relation to the discount rate, the expected cost of the post-closure restoration and monitoring of the landfill site and the expected timing of these costs. Expected costs and timing of the closure are based on the estimated remaining capacity of the landfill, based on the advice and judgement of qualified engineers. The estimates are discounted at a pre-tax discount rate that reflects current market assessments of the time value of money.

For other significant forecasting assumptions, see section 4.

Critical judgements in applying accounting policies

Management has exercised the following critical judgements in applying accounting policies in relation to the classification of property.

Council owns a number of properties held to provide housing to pensioners. The receipt of market-based rental from these properties is incidental to holding them. The properties are held for a service delivery objective as part of Council’s social housing policy. The properties are therefore accounted for as property, plant and equipment rather than as investment property.

Notes to the financial statements

Reserve funds

Reserves are held to ensure that funds received for a particular purpose are used for that purpose and any surplus created is managed in accordance with the reason for which the reserve was established. Surpluses held in reserves are credited with interest. Council holds 12 reserve funds; five are restricted reserves. Restricted reserves are reserves that have rules set by legal obligation that restrict the use that Council may put the funds towards.

The remaining Council-created reserves are discretionary reserves that Council has established for the fair and transparent use of monies. Reserves are not separately held in cash and the funds are managed as part of Council’s treasury management.

Table 1 contains a list of current reserves, outlining the purpose for holding each reserve and the Council activity to which each reserve relates, together with summary financial balances.

Council-created reserves

– purpose of the fund

Reserve purchase and development (parks and reserves activity)

To provide for the purchase of land for reserves purposes or the development of existing reserves. The fund is made up of financial contributions from subdivision and revenue from the sale of surplus reserve land. The main purpose of the fund is to provide open space and recreational opportunity to offset the effects of land use intensification.

To annually provide for the

of Council elections and by-elections.

Landfills reserve (solid waste activity)

To set funds aside for the longer-term replacement of the landfill. This figure has been capped at $12M.

Waste minimisation reserve

To encourage a reduction in the amount of waste generated and disposed of in New Zealand, and to lessen the environmental harm of waste. This reserve was created in 2009 as a result of the Waste Minimisation Act 2008. Funding is distributed to local authorities by the Ministry for the Environment and expenditure includes grants to others, waste minimisation initiative operating expenses and recycling contracts.

Wingate Landfill reserve (parks and reserves activity)

To provide for the development and major maintenance of the former landfill areas (top areas) at the end of Page Grove, Wingate, now managed as

land and used for various recreational activities.

Wingate Park (parks and reserves activity)

To provide for the development and major maintenance of the former landfill areas (bottom areas) at the end of Page Grove, Wingate, now managed as reserve land and used for various recreational activities.

Ex-Hillary Commission funds (aquatics and recreation)

To provide funding for sporting activities. Approval needs to be given by Sport New Zealand.

Restricted reserves –purpose of the fund Taitā Cemetery – JV Bently (parks and reserves activity)

The Council is contracted to maintain Plot 32/33, block 7, St James section in perpetuity. The plots contain Issac Young, Eliza Young and AG Talbut.

tree bequest (parks and reserves activity)

To provide for the planting of trees in and around Hutt City on major thoroughfares.

Talbut bequest (parks and reserves activity)

To provide for the planting and maintenance of reserves.

Arts Trust (museums activity)

To purchase for the Dowse Collection works of art created by Eastbourne artists, being artists who have or have had a significant association with Eastbourne.

Prudence reporting

Rates (increase)Affordability Benchmark

Council meets the rates affordability benchmark if planned rates increases are equal or less than each quantified limit on rates increases.

The following graph compares Council's proposed rates increases with the quantified limit on rates increases contained in the Financial Strategy in the Long Term Plan 2024-2034. The quantified limits are set to enable the achievement of a balanced operating budget by 2028-29 (based on Council’s definition of a balanced operating budget) while maintaining debt headroom at reasonable levels.

2027-28 includes the impact of introducing the new rates funded food and green organics waste service.

Debt Affordability Benchmark(Planned debt compared to debt limits)

Council meets the debt affordability benchmark if planned borrowing is within each quantified limit on borrowing.

The following graph compares Council's actual borrowing with a quantified limit on borrowing stated in the financial strategy included in the Long Term Plan 2024-2034. The Long Term Plan 2024-2034 achieves debt levels within the quantified limit.

Debt Affordability Benchmark(Planned debt as percentageof revenue)

Council meets the debt affordability benchmark if planned borrowing is within each quantified limit on borrowing as a percentage of revenue (excluding development contributions, financial contributions, gains on derivative financial instruments and revaluation on PPE).

The following graph compares Council's actual borrowing with a quantified limit on borrowing stated in the Financial Strategy included in the Long Term Plan 2024-2034. The Long Term Plan 2024-2034 achieves debt levels within the quantified limit.

Balanced Budget Benchmark(Planned RevenueGreater Than Planned Expenditure)

Council meets the balance budget benchmark for each year if its revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments and revaluation on property, plant or

equipment) exceeds its operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant or equipment).

The Council meets this benchmark if its revenue equals or is greater than its operating expenses. The benchmark is met for all the years of the plan however the revenue as defined includes capital sources of funding (central government grants and subsidies) linked to specific capital programmes and projects. Should thesecapital sources of funding beremoved, thebenchmarkwould not bemet from 2024 to 2028.

Essential Services Benchmark

Council meets the essential service benchmark if its capital expenditure on network services for the year equals or is greater than depreciation on network services

The following graph displays the Council's planned capital expenditure on network services as a proportion of depreciation on network services. Council meets this benchmark as its planned capital expenditure on network services is equal to or greater than depreciation on network services.

Debt Servicing Benchmark

Council meets the debt servicing benchmark if its borrowing costs for the year equals or are less than 15% (10% in 2024) of its revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments and revaluation of property, plant and equipment).

The following graph displays the council's planned borrowing costs as a proportion of revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluation of property, plant and equipment). Because Statistics New Zealand projects the council's population will grow as fast as the national population growth rate, it meets the debt servicing benchmark if its borrowing costs equal or are less than 15% of its revenue. Actual borrowing costs as a percentage of revenue are well within the 15% limit.

Funding impact statement including rates for 2024-25

Tauākīpāpātanga tāhua āpitiatu ki ngā tākekaunihera 2024-25

Funding impact statements including 2024-25 rates

Section A: Introduction

This Draft Funding Impact Statement includes full details of how rates are calculated. It should be read inconjunction with Council’sRevenue and Financing Policy(see section 4), which sets out Council’s policies inrespect of each source of funding.

Summary of funding mechanisms and indication of level of funds to be produced by each mechanism

The Whole of Council Funding Impact Statement sets out the sources of funding to be used for 2024-25 and for subsequent years, the amount of funds expected to be produced from each source, and how the funds are to be applied. Details of user charges and other funding sources, and the proportion applicable to each activity, are included in Council’s Revenue and Financing Policy which isincluded in the 10Year Plan. Charges include GST unless otherwise noted.

Uniform annual general charge

Council is proposing not to seta uniform annual general charge (UAGC) for 202425.

Potential new rates during theterm of the Long Term Plan 2024-34

Council is proposing to setand assessa new targeted rate for a Green and Organic Waste household kerbside service. Community feedback isbeing sought through the draft Long Term Plan engagement. If approved, the new targeted rate and service would take effect from from 1 July 2027.

Definition of separately used or inhabited part

For the purposes of any targeted rate set as a fixed amount per separately used or inhabited part (SUIP) of a rating unit, a SUIP isdefined as:

Any part of the rating unit separately used or inhabited by the owner or any other person who has the right to use or inhabit that part byvirtue of a tenancy, lease, licence or other agreement.

At a minimum, the land or premises intended to form the SUIP of the rating unit must be capable of actual habitation, or actual useby persons for purposes of conducting a business.

For the avoidance of doubt, a rating unit thathas only one use (i.e., it does not have separate parts or is vacant land)is treated asbeing one SUIP of a rating unit.

Section B: Rates for year

For 2024-25, and for subsequent years, Council will set the following rates.

a. Water supply rate

A targeted rate will be set to meet the net operating costs of water supply and reticulation in the city. Lump sums will notbe invited in respect of this rate. Council has set the targeted rate for water supply on the basis of the following factors:

• a charge per SUIP of a rating unitthat isconnected to the water reticulation system and is not metered

• a charge of 50percent of the above charge per SUIP of a rating unit that is not connected to but is able to be connected to the water reticulation system

• a charge per rating unit that is connected to the water reticulation system and contains more than one SUIP, where a water meter has been installed to measure the total water consumed provided that:

➢ rating units situated within 100m of any part ofthe water reticulation network are considered to be able to be connected (i.e., serviceable)

➢ rating units that are not connected to the system, and that are not able to be connected, will not beliable for this rate

➢ where the owner of a rating unit with more than one SUIP has installed a water meter to measure the total water consumed, the owner will be liable to pay for water consumed as measured by the meter as set out in Council’s Fees and Charges (see Appendix 1).

The proposed charges for the 2024-25 rating year are as follows:

b. Wastewater rate

A targeted rate will be set to meet the net operating costs of wastewater collection, treatment and disposal within the city. Lump sums will not be invited in respect of this rate.

Council will set the targeted rate for the wastewater function on the basis of the following factors:

• a charge per SUIP of a rating unitfor all rating units connected to the wastewater system

• for rating units in the commercial categories, an additional charge of 50percent of the full charge for the second and each subsequent WC or urinal connected to the wastewater system from each rating unit

provided that:

• no charge is made to any rating unit not connected to the wastewater system.

The proposed charges for the 2024-25 rating year are as follows:

Category Charge

Connected – SUIP $766.00 each

For commercial rating units in the CMC, CMS, and UTNcategories - second and each subsequent WC or urinal from each rating unit $383.00 each

c. Recycling collection targeted rate

A targeted rate will be set to meet 100percent of the costs of the recycling collection service. Lump sums will not be invited inrespect of this rate.

For rating units in the Residential and Rural differential categories, the targeted rate will be set asa fixed amount per SUIP of eachserviceable rating unit.

For Community Education facility rating units (those rating units that are 100% NonRateable under schedule 1 clause 6, part 1, of the Local Government (Rating) Act) and rating units in the CF1,CF2, or CF3 differential categories, ratepayers will be able to opt in to receive the recycling service. The targeted rate will be set asa fixed amount per SUIP of each rating unit that receives this service.

Rating units in the Residential and Rural differential categories that are not able to be serviced by the system will not be liable for this rate. This could include:

• land that does not have improvements recorded

• land with a storage shed only

• land that cannot receive the service due to inaccessibility, as determined by the Council.

The proposed charge for the 2024-25 rating year is as follows: Category Chargeper SUIP

Rating units in the Residential and Rural categories that can be serviced; or Community Education Facilities and

Rating units in the CF1,CF2 or CF3 categories, that choose to opt in

d. Refusecollection targeted rate

$130.00

A targeted rate will be set to meet 100percent of the costs of the rubbish collection service. Lump sums will not be invited inrespect of this rate.

Rating units in the Residential and Rural differential categories that are not able to be serviced by the system will not be liable for this rate. This could include:

• land that does not have improvements recorded

• land with a storage shed only

• land that cannot receive the service due to inaccessibility, as determined by the Council.

For Community Education facility rating units (those rating units that are 100% NonRateable under schedule 1 clause 6, part 1, of the Local Government (Rating) Act) and rating units in the CF1,CF2, or CF3 differential categories, ratepayers will be able to opt in to receive the refuse collection service.

The rate is set on a differential basis, based onprovision or availability of the service.

The targeted rate will be set per SUIP based on extent of provision of service on each serviced rating unit as follows: Community Education Facility (those rating units that are 100% Non-Rateable under schedule 1 clause 6 of the Local Government (Rating) Act), CF1,CF2 and CF3 differential categories.

The targeted rate will be set per SUIP based on extent of provision of service on each rating unit able to be serviced in the Residential and Rural differential categories.

The standard refuse service includes one 120-litre bin (or equivalent). Rating units can opt to use an 80-litre or 240-litre bin instead of the standard service. Rating units in the Residential and Rural differential categories that are able to be serviced but opt not to be, will be rated atthe charge applying tothe 80-litre bin.

The proposed charges for the 2024-25 rating year are as follows:

e. Green wastecollection targeted rate

A targeted rate will be set to meet 100percent of the costs of the green waste collection service. Lump sums will not be invited in respect of this rate.

For Community Education facility rating units (those rating units that are 100% NonRateable under schedule 1 clause 6, part 1, of the Local Government (Rating) Act, and rating units in the CF1, CF2 ,CF3, Residentialand Rural differential categories, ratepayers will be able to opt in to receive thegreen waste service. The targeted rate will be set asa fixed amount per SUIP of each rating unit that receives this service.

The proposed charge for the 2024-25 rating year is as follows:

by those that choose to opt in

Council is proposing to setand assessa new targeted rate for a Green and Organic Waste household kerbside service. Community feedback isbeing sought through the draft Long Term Plan engagement. If approved, the new targeted rate and service would take effect from from 1 July 2027.

f. Jackson Street Programmerate

A targeted rate, based on thecapital value of each rating unit, will be set to raise revenue from rating units in the Commercial Suburban category and witha frontage to Jackson Street, Petone, between Hutt Road and Cuba Street. The revenue raised

from this rate will be applied to meet the costsof the Jackson Street Programme, a community-based initiative to help reorganise and revitalise commercial activities in Jackson Street. Lump sums will not be invited in respect of this rate.

The proposed charge for the 2024-25 rating year is as follows: Category Charge

Rating units (or part thereof) in the Commercial Suburban category having frontage to Jackson Street, Petone, between Hutt Road and Cuba Street

g. General rate

A general rate will be set:

cents per $ of capital value

• to meet the costs of Council activities, other than those detailed above

• based on the capital value of each rating unitin the city

• on a differential basis, based on the use to which the land isput and its location.

Section C: Differential rating details

Each rating unit(or part thereof) is allocated to a differential rating category (based on land use and location) for the purpose of calculating the general rate and some targeted rates. Set out below are the definitions used to allocate rating units to categories, together with details of the differential rating relationships between each category of rating unit for the purposes of setting and assessing the general rate.

Definition of rating categories: Category Description

Residential (RES) All land that is: used for residential purposes, excluding land categorised as rural; or used or set aside for reserve or recreational purposes (other than East Harbour Regional Park); and not otherwise categorised in the Definition of Rating Categories table

Commercial Central (CMC)

Commercial Suburban (CMS)

All land used for commercial and/or industrialpurposes, and located within the Central Commercial Area as defined in the Council’s operative District Plan, excluding land categorised as: Community Facilities; Utility Networks.

All land used for commercial and/or industrialpurposes, excluding land categorised as:

Community Facilities; Commercial Central; Utility Networks.

Utility Networks (UTN)

Community Facilities 1 (CF1)

Community Facilities 2 (CF2)

All land comprising all or part of a utility network.

All land that is:

100% non-rateable in terms of the Local Government (Rating) Act 2002, Schedule 1, Part 1

50% non-rateable in terms of the Local Government (Rating) Act 2002, Schedule 1, Part 2.

All land occupied bycharitable trusts and not-for-profit organisations that either: use the land for non-trading purposes for the benefit of the community; or

would qualify asland thatis 50% non-rateable in accordance with Part 2 of Schedule 1 of the Local Government (Rating) Act 2002 if the organisation did not have a liquor licence.

Community Facilities 3 (CF3)

All land occupied by not-for-profit community groups or organisations whose primary purpose is to address the needs of adult members for entertainment or social interaction, and which engage in recreational, sporting, welfare or community services as a secondarypurpose

For the purposes of these definitions:

• Rating units that have no apparent land use (or where there is doubt as to the relevant use) will be placed in a category which best suits the activity area of the property under the District Plan.

• Rating units that have more than one use will be ‘divided’ so that each part may be differentially rated based on the landuse of each part.

For the avoidance of doubt, ‘commercial purposes’ includes rating units used:

• as a hotel, motel, inn, hostel or boarding house

• primarily as licensed premises

• as a camping ground

• as a convalescent home, nursing home, rest home or hospice operating for profit

• as a fire station

• by a government, quasi-government or localauthority agency for administration or operational purposes

• as an establishment similar to any of the kindsreferred to above, except to the extent that any such rating unit is non-rateable land in terms of the Local Government (Rating) Act 2002.

A ‘utility network’ includes:

• a gas, petroleum or geothermal energy distribution system

• an electricity distribution system

• a telecommunications or radio communications system

• a wastewater, storm water or water supply reticulation system.

•

Subject to the right of objection set out in section 29 of the Local Government (Rating) Act 2002, it shall be at the solediscretion of Council to determine the use or primary use of any rating unit in the city.

Relationships of differential categories

The general rate payable on eachcategory of property is expressed as a rate in the dollar of capital value.

The general rate will be apportioned between residential, commercial and utility categories based on a percentage applied toeach category group.

The percentage proposed to be applied to each category group for the three years from 2024-25 are agreed following the completion of step two of the section 101(3) funding needs analysis process (whichis designed to allow the Council toapply its judgement on the overall impact of the allocation of liabilityfor revenue needs on the current and future social, economic, environmental and cultural wellbeing of the community).

The indicativepercentages to be applied under the new policy are as proposed as follows (including 2023-24 asa comparator):

The following table sets out the proposed differential factors that Council willapply across all differential categories in 2024-25 togive effect to the approach. The general rate differentials and charge per dollar of capital value are:

Section D: Other information

Summaryofproposedrevenuerequiredbydifferentialgroupin2024-25

Summaryoftotalproposedrevenuerequiredfrom2024-25rates

Note: The total rate revenue includes rates charged on Council-owned properties, rate refunds and rate remissions.

Ratesinstalmentdetails

The rates above are payable in six equal instalments on the following dates:

Penaltiesonunpaidrates

The Council resolves, pursuant to sections 57and 58 of the LocalGovernment (Rating) Act 2002, except as stated below*, that:

a. A penalty of 10percent will be added to the amount of any instalment remaining unpaid by the relevant due date above.

b. A penalty of 10percent will be added to the amount of any rates assessed in previous years remaining unpaid on 7 July 2024. The penalty will be added on 22 August 2024.

c. A further penalty of 10percent will be added to the amount of any rates to which a penaltyhas been added under b) above and which remain unpaid on 22 February 2025

*No penalty shall beadded toany rate account if:

• A direct debitauthority is inplace for payment of the rates by regular weekly, fortnightly or monthly instalments, and payment in full is made bythe end of the rating year.

• Any other satisfactory arrangement has been reached for payment of the current rates by regular instalments by the end of the rating year.

Ratingbase

Based on the projected increase of 1.1percent in the rating base eachyear, the following table shows the projected number of rating units in the cityasat 30 June:

The following table shows the projected capital and land value as at30 June 2024:

Examplesofratesonarangeoftypicalproperties

The examples below show how a range of properties are affected by the rates for 2024-25

Funding impact statements

Fees and charges

The following is a consolidated list of Council’s fees and charges. All fees and charges include Goods and Services Tax (GST).

AdditionalServices

InfringementfeessetintheDogControlAct1996apply.

Archives

There is no charge for inspecting physical items on-site at Council offices. Please note: Researchers can use their own camera to take images when inspecting physical items on-site at Council offices.

Search Fees

For information ona topic where we searchthe Archives on your behalf

ReproductionFees

Reproductions are provided as high-quality, scanned images via email. Reproductions are subject tothe physicalcondition, type of itemand any copyright conditions.

Reproduction 2023/2024 charges 2024/2025 charges

Fee per half hour of staff time or part thereof

Reproduction of items larger than A3 are charged based on size, original format and physical condition.

Charges will be notified and agreed before reproduction is carried out. Charges will be notified and agreed before reproduction is carried out.

Ashes**

Re-interments

Note: Re-interments are tobe charged as for interment fees.

Price on enquiry Price on enquiry

Price on enquiry Price on enquiry

Note:Reimbursement for unused plots is calculated at the rate originally paid for the plot.

*These figures are indicative only and the actualcost may differ depending on the nature of the disinterment.

**Applies toallplot purchases, where deceased has lived outside the city for the last five or more years.

Encroachment on Hutt City Council land

Assessed by Council at a market rate Assessed by Council at a market rate

Note:Council is currently reviewing its Encroachment Policy, including the annual licence fees. The fees noted above for gardens, garage (per car park), drainage reserve, and pavement are the current fees. Council reserves the right toalter the licence scope and fee inlink with any future Encroachment Policy adopted by Council

All fees include GST and are payable under section 36 of the Resource Management Act 1991.

Our fees are divided into three parts and will be invoiced in stages.

• Application Deposit

• Intermediate Invoices

• Final Invoice

TheresourceconsentApplicationDepositcoversonlypartthecostofprocessing yourapplicationandisadepositforworkthatwilltakeplace.

MonthlyIntermediateInvoicesaresentifyourapplicationisapprovedandcover feesfor:

• additionalprocessingfees

• consultants’,advisors’andspecialists’feescoveringarangeofexpertisee.g. heritage,geotechnical,ecological,noisecontrol,trafficmanagementetc

• Costsrelatedtopublicnotificationandhearings,suchasvenuehire, photocopying,cateringandpostage

• monitoringfeeswhiletheworkisunderway,includingsitevisits,research, photos,communicationsandadministration

TheFinalInvoicetakesintoaccountthedepositalreadypaid,anyfurtherpayments fortheservicesmentionedaboveandanydiscountsowedtoyou.

Consentsthatrunoverstatutorytimeframeswillbediscountedinaccordancewith provisionsinSection36AAoftheResourceManagementAct.

Application type

Notified applicationhearing required

2023-2024

Processing & Administratio n

Processing: up to 50 hours

2023-2024 Fee

Limited notification Processing: up to 35 hours

Business

Support: 1 hour

Monitoring : 1 hour

Non-notified

Non-notified

Processing: up to 9 hours

Business

Support: 1 hour

Monitoring : 1 hour

Processing: up to 5 hours

Business

Support: 1 hour

Monitoring : 1 hour

Boundary

up to 3 hours

2024-2025

2024-2025 Fee administration and planning technician time

Processing & Administratio n

Consultants charged at actual cost and planning technician time

$11,000.00

Additional fee of $1,000.00 for applications requiring notification in a daily newspaper

Processing: up to 50 hours

Consultants charged at actual cost

$11,500.00

Additional fee of $1,000.00 for applications requiring notification in a daily newspaper

$7,920.00 Processing: up to 35 hours

Business Support: 1 hour

Monitoring : 1 hour $8,430.00

$2,350.00 Processing: up to 9 hours

Business Support: 1 hour

Monitoring : 1 hour $2,450.00

$1,470.00 Processing: up to 7 hours

Business

Support: 1 hour

Monitoring : 1 hour $1,990.00

$810.00 Processing: up to 3 hours $840.00

All

or monitoring time by planner, engineer, or monitoring officer

Hearing commissioner time shall be recovered for time spent in hearings and deliberating

Council Commissioners :

Chair: $116.00 per hour

Members: $93.00 per hour

Independent Commissioners :

Chair: Actual Cost Member of hearing panel: Actual Cost

up to 3 hours Business Support: 1 hour $840.00

Council Commissioners :

Chair: $116.00 per hour

Members: $93.00 per hour

Independent Commissioners :

Chair: Actual Cost

Member of hearing panel: Actual Cost

Note: condition s apply, applications will be accepted on a

Fast Tracknon-notified consents onlyissued within 5 days

Note: condition s apply, applications will be accepted on a case-by-case basis

Application type

2023-2024

Processing & Administratio n

Notified applicationhearing required

Processing: up to 50 hours at the senior rate

2023-2024 Fee

Limited notification Processing: Up to 35 hours

Monitoring: 1 hour

Subdivision

Subdivision

Processing: Up to 17 hours

Business

Support: 1 hour

Monitoring: 1 hour

Processing: Up to 27 hours

Business

Support: 1 hour

Monitoring: 1 hour

Subdivision consent Processing: Up to 13 hours

Business

Support: 1 hour

2024-2025

2024-2025 Fee and planning technician time

Processing & Administratio n

Consultants charged at actual cost and planning technician time

$11,000.00

Additional fee of $1,000.00 for applications requiring notification in a daily newspaper

Processing: up to 50 hours

$7,920.00 Processing: Up to 35 hours

Consultants charged at actual cos

$11,500.00

Additional fee of $1,000.00 for applications requiring notification in a daily newspaper

Monitoring: 1 hour $8,280.00

$4,110.00 Processing: Up to 17 hours

Business Support: 1 hour

Monitoring: 1 hour $4,290.00

$6,310.00 Processing: Up to 27 hours

Business

Support: 1 hour

Monitoring: 1 hour $6,590.00

$3,230.00 Processing: Up to 13 hours

Business Support: 1 hour $3,370.00

Chair: $116.00 per hour

Members: $93.00 per hour

r time shall be recovered for time spent in hearings and deliberating :

Independent Commissioners :

Chair: Actual Cost

Member of hearing panel:

:

Chair: $116.00 per hour

Members: $93.00 per hour

Independent Commissioners :

Chair: Actual Cost

Member of hearing panel:

Consents for:

• Domestic solar hot water heating panels

• Solar water heating systems

• Hot water heat pump systems

• Hot water systems, i.e. wetbacks associated with wood pellet stoves or low-emission wood burners First

and

for the category of consent will apply

charges for the category of consent will apply All

Resourceconsenttermsandlatepayment

Initialand additionalfees

Feesmustbepaidbeforeapplicationsareprocessedandworkundertakenby Council.Furtherchargeswillbeinvoicedifadditionaltimeisspentprocessing requestsand/ordisbursements.

Terms of payment

Paymentofadditionalfeesisduebythe20thofthemonthfollowinginvoice processing.

Latepaymentwillincur:

• an additional administrative fee (lesser than 10% of the overdue amount or $300.00)

• allcostsandexpenses(includingdebtcollectionorlegalfees)associated withrecoveryoftheoverdueamount.

Building consents

ApplicationFees

Ourapplicationfeescoverourinitialadministrationandprocessingtimeandthe specifiednumberofinspections.

OurapplicationfeesincludeGST.

Theydon’tinclude:

• additionaladministration,processingandinspectionfees

• disbursementcosts

• consultants’fees(atcost)

• theBRANZlevy($1per$1,000forworksvaluedat$20,000andover)SUBJECT TOCHANGE

• theMinistryofBusiness,InnovationandEmploymentlevy($1.75per$1,000for worksvaluedat$20,444andover).NOTETHESEAREUNDERREVIEWBYMBIE CURRENTLYsubjecttochange

We’llletyouknowthedetailsoftheseadditionalfeesoncetheapplicationprocessis complete.

Buildingconsentfeeslistforthefinancialyears2022-2023and2023-2024

HardcopyConsents

Yourapprovedconsentswillbesentelectronicallyunlessyourequestahardcopy. Additionalfeeswillapplyinthefollowingsituations:

• Consent applications submitted in hardcopy

• Hardcopy issued of approved Minor Works Consent

• Hardcopy issued of approved Residential Consent

• Hardcopy issued of approved Commercial Consent

Application Type

2023-2024 Processing & Inspections included

Free standing and Inbuilt fire

Fast Trackfive days up to 1 hour processing, 0.5 hours admin and 1 hour inspection time

Minor works (minor drainage) up to 1.5 hours processing, 0.5 hours admin and 2 hours inspection time

2023-2024 Fees

2024-2025 Processing & Inspections included 2024-2025 Fees works building consents, schedule 1 exemptions, extension of time requests and code compliance certificates applications

$500,000 value of work)

$175.00 (incl and above $500,000 value of work)

Commercial: $250.00 (below $500,000 value of work)

$500.00 (incl and above $500,000 value of work)

Residential: $465.00

Commercial: $515.00 1.5 hours processing,1 hour inspection time and 0.5 hour administration time

Residential $657.50 Commercial $707.50

Residential: $757.50

Commercial: $845.00 up to 2 hours processing, 0.5 hours admin and 2 hours inspection time

Residential $1,002.50 Commercial $1,082.50

Application Type

2023-2024 Processing & Inspections included

< $5000 up to 3 hours processing, 0.5 hours admin and 2 hours inspection time

To $10,000 up to 5 hours processing, 0.5 hours admin and 2 hours inspection time

To $19,999 up to 5.5 hours processing, 1.5 hours admin and 3 hours inspection time

To $50,000 up to 7 hours processing, 1.5 hours admin and 4 hours inspection time

To $100,000 up to 8 hours processing, 1.5 hours admin and 5 hours inspection time

To $200,000 up to 10 hours processing, 1.5 hours admin

2023-2024 Fees

Residential: $1,050.00

2024-2025 Processing & Inspections included 2024-2025 Fees

Commercial: $1,175.00 up to 3 hours processing, 0.5 hours admin and 2 hours inspection time

Residential $1,232.5 Commercial $1,332.5

Residential: $1,440.00

Commercial: $1,615.00 up to 5 hours processing, 1 hour admin and 2 hours inspection time

Residential: $1,882.50

Commercial: $2,095.00 up to 5.5 hours processing, 1.5 hours admin and 3 hours inspection time

Residential $1,775.00

Commercial $1,915.00

Residential $2,202.50

Commercial $2,372.50

Residential: $2,370.00

Commercial: $2,645.00 up to 7 hours processing, 1.5 hours admin and 4 hours inspection time

Residential: $2,760.00

Commercial: $3,085.00 Up to 8 hours processing, 1.5 hours admin and 5 hours inspection time

Residential $2,777.50 Commercial $2,997.50

Residential $3,237.50

Commercial $3,437.50

Residential: $3,345.00 Up to 10 hours processing, 1.5 hours

Residential $3,927.50

2023-2024 Processing & Inspections included

and 6 hours inspection time

To $300,000 up to 11 hours processing, 1.5 hours admin and 7 hours inspection time

To $500,000 up to 12 hours processing, 2.5 hours admin and 8 hours inspection time

To $1,000,000 up to 16 hours processing, 2.5 hours admin and 8 hours inspection time

To $2,000,000 up to 20 hours processing, 2.5 hours admin and 9 hours inspection time

Over $2,000,000 up to 22 hours processing, 3 hours admin and 10 hours inspection time

2023-2024 Fees

2024-2025 Processing & Inspections included 2024-2025 Fees

Commercial: $3,745.00 admin and 6 hours inspection time

Residential: $3,735.00

Commercial: $4,185.00 Up to 11 hours processing, 1.5 hours admin and 7 hours inspection time

Residential: $4,275.00

Commercial: $4,775.00 Up to 12 hours processing, 2.5 hours admin and 8 hours inspection time

Residential: $5,055.00

Commercial: $5,665.00 up to 16 hours processing, 2.5 hours admin and 8 hours inspection time

Residential: $6,030.00

Commercial: $6,775.00 Up to 20 hours processing, 2.5 hours admin and 9 hours inspection time

Residential: $6,690.00

Commercial: $7,415.00 Up to 22 hours processing, 3 hours admin and 10 hours inspection time

Commercial $4,247.50

Residential $4,387.50

Commercial $4,747.50

Residential $5,012.50

Commercial $5,412.50

Residential $5,932.50

Commercial $6,412.50

Residential $7,082.50

Commercial $7,662.50

Residential $7,855.00

Commercial $8,495.00

Schedule 1

exemptionminor works including exemption for blown insulation up to 1 hour processing and 1 hour admin

Residential: $345.00

Additional time: $195.00 per hour

Commercial: $370.00

Additional time: $220.00 per hour

Up to 1 hour processing and 1 hour admin

Residential: $395.00

Additional time: $230.00 per hour

Commercial: $415.00

Additional time: $250.00 per hour

Schedule 1 exemption - all others up to 4 hours processing and 1 hour admin

Certificate for Public Use up to 2 hours processing, 1 hour admin and 1 hour inspection time

Residential: $930.00

Additional time: $195.00 per hour

Commercial: $1,030.00

Additional time: $220.00 per hour

Residential: $735.00

Additional time: $195.00 per hour

Commercial $810.00

Additional time: $220.00 per hour

Up to 4 hours processing and 1 hour admin

Fast Trackprocessed

Two times application

up to 2 hours processing, 1 hour admin and 1 hour inspection time

Residential: $1,085.00

Additional time: $230.00 per hour

Commercial: $1,165.00

Additional time: $250.00 per hour

Residential: $855.00

Additional time: $230.00 per hour

Commercial $915.00

Additional time: $250.00 per hour

Two times application

Application

within 10 working days (conditions applyapplications will be accepted on a case-by-case basis only)

Extension of time

Notice to fix

fee

Additional time:

Residential: $390.00 per hour

Commercial: $440.00 per hour

Residential: $292.50

Commercial: $330.00

Residential: $195.00

Additional time: $195.00 per hour

Commercial: $220.00

Additional time: $220.00 per hour

2024-2025 Processing & Inspections included 2024-2025 Fees

fee

Additional time:

Residential: $460.00 per hour

Commercial: $500.00 per hour

Residential: $460.00

Commercial: $500.00

Residential: $230.00

Additional time: $230.00 per hour

Commercial: $250.00

Additional time: $250.00 per hour

Owner supplied information $195.00 per hour $230.00 per hour

PIM up to 2 hours processing and 1 hour admin

Residential: $540.00

Additional time: $195.00 per hour up to 2 hours processing and 1 hour admin

Residential: $625.00

Additional time: $230.00 per hour

Building Consent fee terms and latepayment

InitialFeesandAdditionalFees

Initialfees canbe paid anytime fromthe invoice being received and must be paid before approved applications are issued by Council. The processing of your applicationwillcontinue whenyoureceive the invoice. Further charges willbe invoiced for disbursements and if additional timeisspentprocessingthe application.

TermsofPayment

Payment of additionalconsenting,administration,disbursementsand consultants’ fees shallbe paid before applicationis issued. Additional inspectionfeesshallbe paidbeforeCodeComplianceCertificateisissued.

Late paymentwillincur:

• an additional administrativefee-lesserof10%oftheoverdueamountor $357.50

• allcostsandexpenses(includingdebtcollectionorlegalfees)associated withrecoveryoftheoverdueamount. Other

Code

Residential: $195.00

Commercial:

Residential: $510 (includes 1.5 hours of processing, 1 hour of administration)

Feetype

2023-2024 Fees 2024-2025 Fees

Additional time: $230 per hour

Commercial: $1,040 (includes 3.5 hours of processing, 1 hour of administration)

Additional time: $250 per hour

All additional processing and admin (per hour) - except where a different rate is listed

Building inspections –minimum charge of 1 hour per inspection

Admin only: $150.00

Residential: $195.00

Commercial: $220.00

Residential: $195.00

Commercial: $220.00

Admin only: $165.00

Residential: $230.00

Commercial: $250.00

Residential: $230.00

Additional time: $230 per hour

Commercial: $250.00

Additional time: $250 per hour

Amendment to building consent including B2 durability modification

72

Residential: $540.00 (includes 2 hours processing and 1 hour admin)

Additional time: $195.00 per hour

Commercial: $590.00 (includes 2 hours processing and 1 hour admin)

Additional time: $220.00 per hour

Residential: actual cost

Commercial: actual cost

(Processing time covered in initial fee)

Residential: $625 (includes 2 hours processing and 1 hour admin)

Additional time: $230.00 per hour

Commercial: $665 (includes 2 hours processing and 1 hour admin)

Additional time: $250.00 per hour

Residential: actual cost

Commercial: actual cost

Section 75 - building on two or more allotments

2023-2024 Fees 2024-2025 Fees

(Processing time covered in initial fee)

Residential: actual cost

Commercial: actual cost

(Processing time covered in initial fee)

Works under $100,000 $1,200.00 + normal building consent fee + levies for MBIE

Additional time:

Residential: $195.00 per hour

Commercial: $220.00 per hour

Additional processing time will be charged at the end of the process

Residential: actual cost

Commercial: actual cost (Processing time covered in initial fee)

Works $100,000 and over $3,500.00 + normal building consent fee + levies for MBIE

Additional time:

Residential: $195.00 per hour

Commercial: $220.00 per hour

Additional processing time will be charged at the end of the process

$1,300.00 and normal building consent fee and any levies required e.g. For MBIE

Additional time:

Residential: $230.00 per hour

Commercial: $250.00 per hour

Additional processing time will be charged at the end of the process

$3,800.00 and normal building consent fee and any levies required e.g. For MBIE

Additional time:

Residential: $230.00 per hour

Commercial: $250.00 per hour

Additional processing time will be charged at the end of the process

BuildingWarrantofFitnessfeeterms

RegistrationfeesmustbepaidbetweentheBuildingWarrantofFitnessrenewaldate andthe20thofthefollowingmonth.

LatePayments

Ifpaymentisnotreceivedbythe20thofthemonthfollowingtherenewaldateof yourBuildingWarrantofFitness,thefollowing willapply:

• an additional administrativefee-lesserof10%oftheoverdueamountor $357.50

• allcostsandexpenses(includingdebtcollectionorlegalfees)associated withrecoveryoftheoverdueamount.

BuildingWarrantofFitnessInspectionfeeterms

Termsofpayment

Paymenttobemadebeforethe20thofthefollowingmonth.

Latepayment

Ifpaymentisnotreceivedbythe20thofthemonthfollowing,thefollowingwillapply:

• an additional administrativefee-lesserof10%oftheoverdueamountor $357.50

• allcostsandexpenses(includingdebtcollectionorlegalfees)associated withrecoveryoftheoverdueamount.

Pools late payment terms

Ifpaymentisnotreceivedbythe20thofthemonthfollowingthedateoftheinvoice, thefollowingwillapply:

• an additional administrativefee-lesserof10%oftheoverdueamountor $357.50

• allcostsandexpenses(includingdebtcollectionorlegalfees)associated withrecoveryoftheoverdueamount.

Hardcopylodgementsanddocumentsissuedforconsent

Hardcopy lodgement fee

Excludes: Freestanding and Inbuilt fires, and Exemptions

Minor Works Consent (hardcopy)

Residential: $97.50 Commercial: $110.00

Residential: $75.00

Commercial: $75.00

Residential: $460.00

Commercial: $500.00

Residential: $345.00

Commercial: $375.00

Residential Consent (hardcopy)processing $150.00 $230.00 per hour

Commercial Consent (hardcopy)processing $150.00 (first hour)

Additional time: $150.00 per hour $250.00 per hour

ApplicationFeeRefunds

Youcanwithdrawyourbuildingconsentapplicationbeforeithasbeengrantedby Council.

Ifyouwithdraworcancelyourapplication,anyrefundwillreflectthetimeourteam havealreadyspentprocessingit.

Request for building information hard copy $1.65 per A4

Plumbing and drainage plan

Aerial

AllfeesincludeGST.

feeincludes 8 hours processing time)

Fast Track – residential only, processed within five working days (conditions apply, applications will be accepted on a caseby-case basis)

Completed LIM

Your LIM will be sent electronically. A fee will apply if a hard copy is requested.

Available free on our website

Available free on our website

LIM/Property Information terms and latepayment

Initial fees and additional fees

per A3 $2.15 per A4

per A3

Available free on our website

Available free on our website

Fees must be paid before applications are processed and work is undertakenby Council.

If your application is withdrawn a refund maybe given based on the amount of time already spent processing the LIM.

Charges for commercial LIMs where additionaltime is spent processing the application willbe invoiced

Terms of payment

Late paymentwillincur:

• an additional administrativefee(10%oftheoverdueamount)

• allcostsandexpenses(includingdebtcollectionorlegalfees)associated withrecoveryoftheoverdueamount.

Full details of the development contributions charges and their makeup can be found in the Council’s Development and Financial Contributions Policy which is updated through each Annual/Long-term planning cycle and consulted on where significant changes to the policy are made.

health

Application for registration of Food Control Plan (FCP) based on a template or model issued by MPI

Application for registration of a business subject to a plan or model for National Programmes

$375.00 (includes 2 hours processing) $390.00 (includes 2 hours processing)

$375.00 (includes 2 hours processing) $390.00 (includes 2 hours processing)

Application for renewal of registration $185.00 (includes 1 hour processing) $195.00 (includes 1 hour processing)

Application for amendment to registration $185.00 (includes 1 hour processing) $195.00 (includes 1 hour processing)

Significant amendment to Food Control Plan $185.00 (includes 1 hour processing) $195.00 (includes 1 hour processing)

Additional time $185.00 per hour $195.00 per hour

Verification of a Food Control Plan (FCP) based on a template or model issued by MPI

Verification of a plan or model for National Programme 3 (NP3)

Verification of a plan or model for National Programme 2 or 1

Cancellation of a verification within 3 days without acceptable reason

Inability to verify an FCP or National Programme at the scheduled time, or to carry out the verification due to the absence of key personnel, or the FCP, or records not being available

$185.00 per hour for all verification activities, including travel time.

$185.00 per hour for all verification activities, including travel time.

$185.00 per hour for all verification activities, including travel time.

$195.00 per hour for all verification activities, including travel time.

$195.00 per hour for all verification activities, including travel time.

$195.00 per hour for all verification activities, including travel time.

$185.00 in addition to any time spent, at $185.00 per hour

$195.00 in addition to any time spent, at $195.00 per hour

All other services and compliance/monitoring activities for which a fee may be set under the Food Act. This includes follow up visits to close out corrective actions, review of (successful) appeals/submissions to verification outcomes, surrender, suspension and revocation of registration.

For each device, for each further period of 7 days or part thereof

Registration fee for an Appearance Industry application

Registration fee for a combined Hairdresser/Appearance Industry application

Additional time for registration/inspection and investigation of justified complaints under the Appearance Industries Bylaw

$275.00 (which includes up to 1.5 hour of inspection, administration, and travel time)

$370.00 (which includes up to two hours of inspection, administration, and travel time

$290.00 (which includes up to 1.5 hour of inspection, administration, and travel time)

$390.00 (which includes up to two hours of inspection, administration, and travel time

Seizure fine (stereo equipment)

Subsequent seizures (stereo equipment) within the same property within a 6 month period

$180.00 and $1.00 per day after the 1st month of storage

$300.00 and $1.00 per day after the 1st month of storage

$180.00 and $1.00 per day after the 1st month of storage

$300.00 and $1.00 per day after the 1st month of storage

Speciallicences

Applicationfeesforspeciallicencesarecalculatedaccordingtothesizeand frequencyoftheeventoreventscoveredbythespeciallicence. Special licence

(400+

• more than 3 medium events (100400 people)

• more than 12 small events (less than

Otherfees

Environmental policy

RequestsforchangestoDistrictPlan

Allactualcostsrelatedtotheproposedplanchange,includingCouncilofficers’time, willbebornebytheapplicantasfollows:

All work undertaken by Council’s officers in

connection with the request for the change shall be charged against the deposit at:

Hearing Commissioner time shall be recovered for time spent in hearings and deliberating.

Council Commissioners:

Chair:

Members:

Independent Commissioners:

Chair:

Member of hearing panel:

Pleasenote:

• If the proposed change is notified publicly, advertising charges will be actual costs payable by the applicant.

• All information requested by the Council shall be supplied at the applicant’s cost.

• All work undertaken by independent consultants, advisors and/or specialists in connection with the request for the change shall be charged at the actual costs plus disbursements against the deposit.

• Actual costs of any external venue or equipment hire to run a successful hearing shall be borne by the applicant.

NoticeofRequirementandAlterationstoNoticesofRequirement

Allactualcostsrelatedtotherequirement,includingCouncilofficers’time,willbe bornebytheRequiringAuthorityasfollows:

All work undertaken by Council officers in connection with the requirement shall be

Planner:

Business

Planner:

charged against the deposit at:

Hearing Commissioner time shall be recovered for time spent in hearings and deliberating.

Council Commissioners:

Chair Members Independent Commissioners:

Chair

Member of hearing panel

Pleasenote:

• Iftherequirementisnotifiedpublicly,advertisingchargeswillbeactualcosts payablebytheRequiringAuthority.

• AllinformationrequestedbyCouncilshallbesuppliedattheRequiring Authority’scost.

• Allworkundertakenbyindependentconsultants,advisorsand/orspecialists inconnectionwiththerequirementshallbechargedattheactualcostsplus disbursementsagainstthedeposit.

• Actualcostsofanyexternalvenueorequipmenthiretorunasuccessful hearingshallbebornebytheapplicant. Purchasingaprinted

Costs will be dependent on the officer time required.

Business Support: $150.00 per hour

Planner: $220.00 per hour

We encourage use of the ePlan.

Costs will be dependent on the officer time required.

Business Support: $150.00 per hour

Planner: $230.00 per hour

Includesallgardenwaste.Greenwastemustnotbemixedwithgeneralrefuse.Only appliestovehiclesthatcanaccessthetransferstation.

Libraries

Interloans (urgent)

Lost/damaged items

Hot

Subscription access for anyone living outside the SMART libraries area who does not own a ratepaying property withing the SMART libraries area

Cost of the item at time of purchase by Hutt City Libraries

Cost of the item at time of purchase by Hutt City Libraries

Littering infringement Litteringfines

Minor littering

Including but not limited to:

• cigarette butts

• wrappers/paper

• chewing gum

• small amount of food waste

• take-away food/drink containers

• fish and chip papers

• plastic drink bottle(s) and aluminium can(s)

• domestic/commercial waste in, or by, public litter bins

• single small bag of refuse

Medium littering

Including but not limited to:

• multiple small bags, one to three large bags or boxes of refuse

• small furniture items

• small amounts of discard due to an insecure load from truck or trailer

Major littering

Including but not limited to:

• any large volume of household/commercial/ green waste

• car parts

• large furniture items

• four or more large rubbish bags

• hazardous rubbish such as used nappies, needles, sanitary pads, broken glass, wood with nails and sharp metals.

Official Information

Ifyou’relookingforaccesstoinformationaboutyourself,thisiscoveredbythe PrivacyAct2020freeofcharge.

ThereisnochargeforstandardrequestsmadeundertheLocalGovernmentOfficial InformationandMeetingsAct1987.

Nochargeswillapplywheretheinformationcannotbereadilyfound,orfortime spentdecidingwhetherinformationwillbereleased.

Thefollowingchargeswillapplyfornon-standardrequestsmadeundertheLocal GovernmentOfficialInformationandMeetingsAct1987.

Chargeswillbenotifiedandagreedwiththerequesterbeforeanycopying, scanning,collationorredactioniscarriedout.

Achargemaybemodifiedorwaivedatthediscretionofageneralmanager:

• iftheinformationisinthepublicinteresttorelease,

• ifpaymentmightcausefinancialhardship,

• orwheretheinformationassistspublicorganisationsintheirwork.

Reproductioncharges

Photocopying A3/A4 - up to 20 pages Free of charge Free of charge

Photocopying A3/A4 - over 20 pages $0.20 per page $0.20 per page

Scanning or copying of items larger than A3

Charged on a case-by-case basis depending on size, original format and condition

Substantialcollationandredaction

Reproduction costs: As notified on request

Staff time: $40.00 per half hour

Reproduction costs: As notified on request

Staff time: $40.00 per half hour

Forrequestswhichrequiresubstantialcollation,scanningand/orredactionbefore release(non-standard)thefollowingchargeswillapply:

Any external contractor time as required

Expensecharges

Allchargeswillneedtobepaidbeforeyoureceivetheinformationyouhave requested.Allchargesincurredwillbefixedsotorecovertheactualcosts involved,including:

• Photocopying–thefirst20pagesarefree.EveryA4pageafterthatwillbe chargedat20cents.

• Producingadocumentbycomputerorsimilarequipment

• Reproducingaphotograph,film,videooraudiorecording

• Viewingorhearingavisualoraudiorecording

• Providingacopyofanymap,planorotherdocumentlargerthanA4

• Retrievalofinformationoffsiteoranysituationwhereadirectchargeis incurredinprovidingtheinformation

Parking

Payanddisplaymetersoperatebetween9amand5pm,MondaytoFriday.

Youcanpay:

• with coins or by credit card.

• through the free PayMyPark website or app - pay your parking from your smartphone and extend your time remotely.

• with a SmartPark in-car meters that you can top-up online.

Riverbank car park (Light Blue) Zone

Saturday and Sundays, P120 zones (no charge)

Saturday, Sunday and public holidays unrestricted

No daily maximum parking duration

Sunday and public holidays unrestricted

MondayFriday 9am5pm: $2.00 per hour $7.00 maximum daily charge

Saturday 7am2pm: $2.00 per hour $4.00 maximum daily charge

Monthly pass*: $100.00

–5pm Public holidays unrestricted Enforcement 7 days per week

daily maximum parking duration Public holidays unrestricted Enforcement 7 days per week $3.00 per hour $10.00 maximum daily charge

Monthly pass*: $150.00

*RiverbankcarparkmonthlypassesreducedinpriceforDecemberandJanuary. PassescanbepurchasedfromCouncil'sbuildingat30LaingsRoadinLowerHuttor thePayMyParkApp. Infringementsformeteredparking

paying the required fee

*Trafficmanagementcostsareadditionalandwillbeadvisedatthetimeof quotation.

CorridorAccessRequests

InaccordancewithClause6.5CorridorManagerCostRecoveryintheNational Code,CouncilisabletorecovercostsinadministeringandmonitoringCorridor AccessRequests(CAR)consentcompliance.

Since1July2015HuttCityCouncilalignsitselfwithUpperHuttCityCouncil’sfeesand chargesforprocessingCAR.Thisincludeschargingafeefortexturizingsealcoats wheretrenchesarelocatedwithinthecarriageway.

Signboardhireandproductioncosts

TherearefoursignboardslocatedinLowerHuttthatcanbehiredoutbytheweek. Theweeklyhirefeesincludeinstallationandremovalcosts.Totalpriceforhiringis weeklyhirefeeplusproductioncostsplusGST. AllpricesareexclusiveofGST.

2023-2024Charges

2024-2025Charges

Sportsfields and parks

Seasoncharges

Settorecoverthepercentageofoperatingcostidentifiedbelowplusthefull operatingcostofancillaryservices:

One-offorsingledayhire

Wecharge10percentoftheseasonchargepergame,or15percentoftheseason chargeperdayifthegamelaststhreehoursorlonger.

Specialeventscharges

Wechargefeesforhiringoutsportsgroundsforeventsandotherspecialevents.Our feesandchargesincludegoodsandservicestax(GST).

VenueHire

Principles:

• Spaces should be optimised, multi-purpose and flexibleand serve a wide range of activity,

• Given population growth, increased residential density and the loss of other community spaces (churches etc), spaces need to be fairlyshared across different groups (some historic arrangements may need to be revisited and quotas applied to enable this),

• Charges should reflect the type of activity taking place,

• Charges should be within Council’sRevenue and Finance Policy guidelines.

Significant individual benefit rate - 80% of Base Rate

Community rate

50% of Base Rate

Partner rate

0%-50% of Base Rate

Community halls:

event.

Private events that are not open to all – eg: weddings, parties, celebrations and faith-based groups. This includes churches.

Community group for community benefit and does not charge attendees per session.

Activities which are open and free to attend and/or developed or delivered in partnership with Council and/or deliver strongly to Council’s equity priority and / or focus areas of wellbeing activity may -at officers discretion –be reduced down to 0%

Hourly rates for hall hire are set out below.

• Annual EOI process to identify regular hirers wanting access to the same space, selection by assessment and / or ballot.

Neighbourhood Hub BookableSpaces

• Includes AV for where AV is supplied,

• Weekend bookings between 7am Saturday and 7pm Sunday attract a 10% premium,

• Annual EOI process to identify regular hirers wanting access to the same space, selection by assessment and / or ballot.

Note: 25% discount for community organisations.

in 2023–24)

Post event reset and tech check

in 2023–24)

Ngā whakamāramatanga –

Definitions

10YearPlan – A plan that describes the activities of a localauthority, its community outcomes, and its long-term focus in terms of decisions and activities. This is the same as our Long-Term Plan (LTP).

Activitystatement-This statement describes the amount of money needed to operate and maintain facilitiesand services and to cover capital expenses within an activityfunction.

AnnualPlan – A planthat describes the activities of the localauthority in relation to the LTP, with a particular focus on the financialyear for which the document is produced.

Asset – Something of value thatCouncil ownson behalf of the people of Te Awa Kairangi ki Tai Lower Hutt, such as roads, drains, parks, and buildings.

AssetManagementPlan – A long-term planfor managing an asset to ensure that it continues to have the capacity to provide anagreed level of service and that costs over the life of the asset are minimised.

Assumptions/assumed– refers to accepting certain conditions or premises as true or valid without explicit confirmation, often used as the basis for decision-making or planning.

Balancedoperatingbudget-A balanced operating budget occurs when a Council's projected operating revenue matches or exceeds its planned operating expenditure, ensuring that the Council does not spend more than it earns.

Borrowings-refers to obtaining fundsfrom external sources, typicallythrough loans or bonds, to financeprojects or cover expenses.

Capitalexpenditure – Money spent on acquiring or building long-term Council assets.

Capitalvalue-The value of land plus additions such as buildings, driveways, and fences.

CentralBusinessDistrict(CBD) – Te AwaKairangi kiTai Lower Hutt’s citycentre.

CommunityBoards – A local elected body setup under the Local Government Act 2002. Community boards are consulted by Council and can represent community concerns to Council. Hutt City Council has three community boards: Eastbourne, Petone and Wainuiomata.

Compliance-Compliance refers to adhering to relevant laws, regulations, policies, and standards setforth by governing bodies or authorities, ensuring that the Council operates within legal and ethical boundaries.

ConsultationDocument-a document that clearly explains matters proposed to be included in the 10 Year Plan and provides an opportunity for the public to participate in decision making.It explains objectives, significantissues, and how rates, dept and levels of service mightbe affected asa resultof those decisions. The content requirements of the consultation document are set out in the Local Government Act 2002.

Council-ControlledOrganisation(CCO) – A company or Trust, in which Council isat least a 50% shareholder that independently manages facilities, delivers services, and undertakes developments on behalf of the TeAwa Kairangiki Tai Lower Hutt community. Where necessary, Council provides operational funding tothese organisations.

Criticalinfrastructure - Assets which providecritical servicesand failure of which could result in major outages or disruptions to service such as reservoirs, pumping stations and main network pipes.

Democracy-A wayCouncil govern themselves. It can be used to mean community participationin decision making between elections, as well asat elections.

Depreciation(amortisation) – anexpense charged each year to reflect the estimated cost of using our assets over their lives. Amortisation relates to ‘intangible’ assets such as software (as distinct from physical assets, which are covered bythe term depreciation).

Developmentcontribution-A payment made by a developer to cover part of the costs of providing infrastructure to a new development, i.e. “growth” related cost. EmployeeCosts – The costs of allstaff expenditure, including wages, salaries and related taxes, training, and recruitment costs. Remuneration of elected and appointed representatives is also included under this heading. This does not include CCO director fees, whichare included in operating expenditure.

FinancialYear – Council’sfinancial year runs from 1 July to 30 June of the following year.

Generalrates- The rates levied on most properties for general services including residential, rural, business and utility. They arelevied on the basis of zoning, land use and capitalvalue.

Grantorsubsidy-Money given from localor central government or other funds to a person or group for a specified purpose.

Hearing-Meeting at which members of the public speak formallyto elected representatives and/or staff aboutan issue.

Income-Revenue gained from all sources during the year, such as rates, grants, specialfunds, subsidies, and fees and charges. Income does not include loans or the proceeds in excess of the net book value from the sale of assets.

Inflation-Inflation isthe gradual increase in the prices of goods and services inan economy over time.

Infrastructure-The stock of fixed capitalequipment that helps a community to function. This includes thepipes and machinery that allow Council’s tocollect and manage water, wastewater, storm water and rubbish, as wellasassets such as roads and buildings.

Intergenerationalequity-refers to the principle of ensuring fairness and sustainabilityin decision-making processes that impactpresent and future generations, aiming to distribute resources, benefits, and burdens fairlyacross different generations while preserving the environment and meeting the needs of both current and future residents.

LocalGovernmentAct2002 – The keylegislation that defines the powers and responsibilities of local authorities like Hutt City Council.

LongTermPlan(LTP) – See 10-Year Plan, above. Maintenance costs – Money spent to keep the Council’s assetsin working condition, such as repairs and maintenance.

ManaWhenua – Māori who have historic andterritorial rights over the land. Mana Whenua refers to iwi and hapū who have these rights in Te Awa Kairangi kiTai Lower Hutt. The tribe’s history and legends are based in the lands they have occupied over generations and the land enables and sustains the people, the places, and the processes of Te Ao Māori (Māori worldview).

OperatingExpenditure – Money spent on theday-to-day operations of the Council. OperatingProjects – Significantprojects thatdo not result in the creation of Council assets.

PerformanceMeasure – A measure that shows how well Council isdoing in achieving the goalsit hasset for itself.

Policy- A policyis a predetermined course of action or set of guidelines established by the Council to guide decision-making, address specific issues, or achieve particular goals within the community.

PPE–An accounting term for Property, plant and equipment representing all the assets of the Council, such as land buildings, pipes, roads, community facilities.

Rates – A form of property tax. In Te Awa Kairangi ki Tai Lower Hutt, we have both General Rates and Targeted Rates. General Rates are based on a property’s capital value, and Council use this money to invest inthings likefootpaths and libraries. Targeted Rates are a fixed amount for each rating unit or separately used and inhabitable part (SUIP) of a rating unit.Targeted rates payfor things like Water or Wastewater.

ResidentsSatisfactionSurvey(RSS) – This survey is conducted using a panel system, where a group of residents receive surveys to providefeedback on the city. Resourceconsent-Where a Council, using delegated authority under the Resource Management Act, gives an applicant permission for a particularland use activity.

ResourceManagementAct(RMA)-Resource Management Act (RMA) isNew Zealand’s mainpiece of legislation that sets out how Council should manage our environment.

Revenue-Revenue represents the income generated by the Council through various sources, such as taxes, fees, grants, and other sources, which are crucial for funding public servicesand initiatives within the community.

Significance – The degree of importance of an issue, proposal, decision, or matter as assessed bya local authority in terms of itslikelyconsequences for the current and future social, economic, environmental, or cultural wellbeing of the community.

SignificantActivity – Anactivity deemed to be significant according to Council’s Significance and Engagement Policy.

SeaviewMarinaLimited(SML) – This isa Council-controlled organisation which is Wellington’s newest and fastest developing marina, situated atthe sheltered northeast end of Wellington Harbour.

Strategy-A policyis a predetermined course of action or set of guidelines established by the Councilto guidedecision-making, address specific issues, or achieve particulargoals within the community.

Submission-Feedback or proposalfrom a citizen or group on an issue aimed to influence judgement at the Council level attimes such as draftAnnual Plan, Long Term Plan or other new significant plans.

Targetedrate – Any rate levied other than the general rate, which is targeted at users of a service such as water supply, wastewater, refuse and recycling, and the Jackson Street Programme.

TeĀtiAwa – An iwi with historic and territorialrights over Te Awa Kairangi, Lower Hutt, and Te Upokoo Te Ika a Māui, the widerWellington region. Te Āti Awain this region share close kinship to Te ĀtiAwain northern Taranaki, Kāpitiand the northern areas of the South Island.

ThreeWaters/WaterServices-A term for grouping the three water services provided by Councils together: water supply; wastewater; and stormwater.

UrbanPlusLimited(UPL)&UrbanPlusLimitedDevelopmentsLimited(UPLDDL) –

These are Council-controlled organisations and are multidisciplined property companies. They provide high quality residential property development, rental housing portfolio management and strategic property services.

Usercharges – Income to Council through fees and charges paid by those who use specific services Councilprovides.

Wastelevy-The waste disposal levyraises revenue for initiatives to reduce waste and encourage resource recovery (e.g., composting and recycling).

WellingtonWaterLtd-Wellington region’s professional water services provider. They are 100 percent Council owned and funded, and their job isto provide safe and healthy drinking water, collect and treat wastewater, and ensure the stormwater network is well managed.

Worksprogramme-The works programme sets out the plans to be carried out over the next 10 years, such as pipeline renewal upgrades, enhanced cycle tracks, or equipment replacements. The schedule includes the year the work will take place, the costs of the work and the source of funding.

Contact details

Your Mayor and Councillors

Hutt City Council is made up of 12 Councillors and a Mayor. Along with all other local authorities in New Zealand, Council is elected every three years.

The Mayor and six Councillors are elected on a city-wide basis and six Councillors are elected to represent their respective wards, while working in the best interests of the city as a whole. There are six wards – Northern, Eastern, Central, Western, Harbour and Wainuiomata – each with one Councillor. Following elections in October 2022, a new Council was sworn in for the new triennium. You can find information about Hutt City Council’s elected members below and on our website – hutt.city/councillors

Campbell Barry

Koromatua | Mayor

Tui Lewis

Koromatua Tuarua | Deputy Mayor

Kaikaunihera ki te Whanganui

Harbour Ward Councillor

Josh Briggs

Kaikaunihera o Te Tāone Whānui

City Wide Councillor

Brady Dyer

Kaikaunihera o Te Tāone Whānui

City Wide Councillor

Simon Edwards

Kaikaunihera o Te Tāone Whānui

City Wide Councillor

Karen Morgan

Kaikaunihera o Te Tāone Whānui

City Wide Councillor

Tony Stallinger

Kaikaunihera o Te Tāone Whānui

City Wide Councillor

Gabriel Tupou

Kaikaunihera o Te Tāone Whānui

City Wide Councillor

Glenda Barratt

Kaikaunihera ki Te Riu

Central Ward Councillor

Keri Brown

Kaikaunihera o Wainuiomata

Wainuiomata Ward Councillor

Andy Mitchell

Kaikaunihera ki Te Rāwhiti

Eastern Ward Councillor

Chris Parkin

Kaikaunihera ki Te Uru

Western Ward Councillor

Naomi Shaw

Kaikaunihera ki Te Raki

Northern Ward Councillor

Hutt City Council

Address: Administration Building, 30 Laings Road,Lower Hutt

Postal Address: Private Bag 31 912, Lower Hutt 5010

Phone: 04 570 6666 | 0800 HUTT CITY

After hours emergencies:

04 570 6666 | 0800 HUTT CITY

Email: contact@huttcity.govt.nz

Website: huttcity.govt.nz

Facebook: facebook.com/huttcitycouncil

Twitter: twitter.com/huttcitycouncil

Chief Executive Tumu Whakarae: Jo Miller

Email: jo.miller@huttcity.govt.nz

Neighbourhood Hubs

War Memorial Library

Address: 2 Queens Drive, Lower Hutt

Phone: 04 570 6633

EastbourneCommunity Library

Address: 38 Rimu Street, Eastbourne

Phone: 04 562 8042

Maungaraki Community Library –

Whare Pūrākau

Address: Maungaraki School, 137 Dowse Drive, Maungaraki

Phone: 028 2550 3219

Moerā Community Library

Address: 107 Randwick Road, Moerā

Phone: 04 568 4720

Naenae Community Library

Address: Hillary Court, Naenae

Phone: 04 567 2859

PetoneCommunity Library

Address: 7 Britannia Street, Petone

Phone: 04 568 6253

Koraunui Stokes Valley

Community Hub &Library

Address: 186 Stokes Valley Road, Stokes Valley

Phone: 04 562 9050

Walter Nash Centre&Library

Address: 22 Taine Street, Taitā

Phone: 04 560 1090

Wainuiomata Community Hub &Library

Address: 1a–1c Queen Street, Wainuiomata

Phone: 04 564 5822

Pools

Huia Pool and Fitness

Address: Huia Street, Lower Hutt

Pool phone: 04 570 6655

Fitness suite phone: 04 570 1053

Stokes Valley Pool and Fitness

Address: Bowers Street, Stokes Valley

Pool phone: 04 562 9030

Fitness suite phone: 04 562 9030

McKenzieBaths Summer Pool

Address: 79 Udy Street, Petone

Phone: 04 568 6563

EastbourneSummer Pool

Address: Marine Parade, Eastbourne

Phone: 04 562 7582

Wainuiomata Summer Pool

Address: 2 Moohan Street, Wainuiomata

Phone: 04 564 8780

Arts and Culture

TheDowseArt Museum

Address: 45 Laings Road, Lower Hutt

Phone: 04 570 6500

PetoneSettlers Museum

Address: 130 The Esplanade, Petone

Phone: 04 568 8373

LittleTheatre

Address: 2 Queens Drive, Lower Hutt

Phone: 04 570 6500

Independent Auditor's Report