Annual Plan 2019/20 - Consultation

The situation
The Provincial Growth Fund announcements in December 2018 saw a significant amount of Central Government funding committed to economic development initiatives in the Eastern Bay of Plenty. This includes funding towards the investigation and design stage of the Whakatāne Waterfront and Town Centre Regeneration project, an initiative aimed at bringing together and accelerating multiple strands of Council’s existing economic development work to unlock further growth in the tourism and marine economy of Whakatāne. The project will be delivered in partnership with Ngāti Awa and any proposed developments will recognise the cultural significance for iwi and hapū of Ngāti Awa historical sites, events and practices relating to the Whakatāne River.

Our current commercial wharf is aging and does not meet existing needs, let alone future demand for berthage, or provide adequate support for the growth of our tourism and marine economies. This project proposes to use redevelopment of the commercial wharf as a catalyst for regenerating and transforming the town, attracting private investment and new growth opportunities along the waterfront. It will create jobs for our people; provide high quality amenities for residents and visitors to the Eastern Bay of Plenty; and meet international visitor expectations.

• Whakatāne Waterfront and Town Centre Regeneration Fact Sheet - (PDF, 527 KB)
• Project Information - Waterfront and Town Regeneration - (PDF, 829 KB)

What is proposed?
The Government’s Provincial Growth Fund is making funds available to support regional economic development for the next two years. The Council wants to progress this project now, to ensure that the opportunity to work with Central Government for this transformational project is maximised. The Annual Plan proposal is to update the timing and budgets for this concept. This would see the development of a business case, including community and stakeholder engagement, with feasibility and detailed design in 2019/20 and construction of a new commercial wharf component completed by 2023.

What are the costs and who pays?

In the coming year, funding of $1.546 million will be required for the final stage of the business case and for detailed design. While the Provincial Growth Fund will meet a large portion of the costs, increased local funding is also required. This local share would come from the Harbour Fund ($200,000 - no rating impact) and from General Rates ($250,000). Later stages of the project anticipate a contribution from the PGF as well as a local funding commitment. Local funding is already included in our Long Term Plan budget but if the required amount changes significantly, we will undertake further public consultation.

The situation
A passionate group of local business people have recently formed EPIC (Events Promotion Initiatives and Community). EPIC aims to deliver on a vision shared by many organisations, groups and people, for a “reenergised and revitalised Whakatāne town centre that attracts more people, who stay longer and spend more”. As part of this vision, EPIC aims to promote the Whakatāne CBD as the heart of the town, where people come together for socialising and recreation. A first major initiative was achieved in late 2018 – the EPIC Late Night Christmas Shopping event. The event created a vibrant atmosphere in the Whakatāne CBD, increasing foot traffic and lifting sales revenue for the December month. The group has researched other town centres with successful programmes and has facilitated the development of a strategy for the Whakatāne Town Centre.

EPIC has so far been self‐funded.

What is proposed?
EPIC is seeking funding for a town-centre programme, through a targeted rate on the Whakatāne CBD. The funding will be used to implement its Whakatāne Town Centre Strategy and to run marketing, promotion and event campaigns. Similar programmes are adding significant value in other towns including Mt Maunganui, Tauranga and Taupō for example.

What are the costs and who pays?
EPIC is requesting $80,000 funding to implement its Whakatāne Town Centre Strategy. This would be spread as a targeted rate over 110 properties in Whakatāne CBD, based on the capital value of each property. See the fact sheet for an overview of rating proposal and targeted properties.

• EPIC Town Centre Strategy Fact Sheet - (PDF, 1.2 MB)
• Project Information - EPIC Town Centre Strategy - (PDF, 700 KB)

The situation
Wainui Road is a highly used arterial transport route in our District providing part of the road access from Ōhope through to Ōpōtiki. The route has a poor safety record and continues to present a major unacceptable crash risk. In partnership with the New Zealand Transport Agency (NZTA), there is an opportunity to progress improvements to this road over the next two years.

By advancing this project, there is also an opportunity to utilise part of the Council’s financial contribution to unlock other NZTA funding to bring forward other projects that meet Central Government transportation priorities. These priorities include road safety, resilience and improving access for all road users, including pedestrians, cyclists, and people who are mobility restricted.

• Accelerating Projects for Road Safety and Active Transport Fact Sheet - (PDF, 931 KB)
• Project Information - Wainui Road Safety Improvements and Active Transport Projects - (PDF, 730 KB)

What is proposed?
We are proposing to support NZTA’s project of road safety improvements on the route between Ōhope and Ōpōtiki. Our commitment would be towards the Wainui Road section within our District. The project includes road widening, safety barriers, minor realignments and passing areas. The total cost of improvements along the whole route, including the State Highway, is estimated at $33 million, with $6.8 million being the cost estimate for the improvements on the Wainui Road section. The Council would need to contribute $2.45 million towards the project with the balance being funded by NZTA.

This will potentially enable us to use $1.2million of that investment to accelerate selected projects within the Active Whakatāne Strategy. The Strategy aims to promote a healthier, safer, more inclusive and more active modes of transport.

What are the costs, and who pays?

The local share of funding required is $2.45 million(split over two financial years). This would be loan-funded over 25 years and repaid through Roading Rates.

The situation
The Whakatāne District Aquatic and Fitness Centre is a major recreational facility for residents and visitors to the District, catering for members of a number of aquatic clubs, recreational swimmers and people involved in learn-to-swim and aquatic fitness programmes. The Centre continues to experience strong growth in use and as a result, there is increased pressure on the facility, particularly over winter months when the outdoor pool is closed. In 2018 the Long Term Plan received a submission with over 80 signatures requesting that Council investigate the feasibility of enclosing the outdoor pool. Discussions with potential funding partners indicates that there is strong interest in contributing towards this project.

• Project Information - Whakatāne Aquatic Centre Outdoor Pool - (PDF, 728 KB)

What is proposed?
Enclosing the outdoor pool would provide additional pool/lane space during the autumn and winter. This will help to meet current and future demand for sports-related use, aquatic programmes, and public recreational use. The Annual Plan proposes to include funding for the installation of the enclosure structure and a solar heating system to help offset increased running costs. The cost is estimated at between $821,000 and $1.063 million. The proposal would only proceed if the anticipated $850,000 of external funding is confirmed.

What are the costs, and who pays?

With external funding expected, the Council may need to fund up to $213,000 towards the construction of the project. If required, this would be funded by a Council loan. The Aquatic Centre facility would also have increased operating costs of $111,000 per year to cover maintenance, heating and expanded lifeguard duties. The operating costs would be met from a mix of increased income from user fees and general rates.

The situation
Our Long Term Plan includes a project to redevelop the Whakatāne District War Memorial Hall. One of the key drivers of the project is the need for earthquake strengthening work to parts of the building. The earthquake-prone building assessment on the facility is close to being finalised and the Council will then have a legal obligation to complete strengthening work within a 7.5 year timeframe. Given that the facility continues to be well-used, Council wishes to manage the risk sooner rather than later.

• Project Information - Seismic Strengthening Whakatāne and District War Memorial Hall - (PDF, 731 KB)

What is proposed?
The Annual Plan proposes to include funding to advance the seismic strengthening work in the coming year, to ensure the hall continues to be fitfor-purpose. The longer-term intention will continue to be for a complete redevelopment of the facility by 2026, but noting that substantial funding will need to be secured from project partners before progressing.

What are the costs, and who pays?

The costs of the earthquake strengthening work is expected to be $550,000. This would be loan funded over 25 years and repaid through general rates.

The situation
The Matatā township was struck by devastating debris flows in 2005. Initial plans for an engineering solution to reduce risk for residents living on the fanhead of the Awatarariki Stream were eventually abandoned in 2012, because experts advised that there was no viable solution available. Peer-reviewed independent hazard and risk assessments confirm the loss-of-life risk on a portion of the fanhead is unacceptably high. The Council is now working with Central Government and the Bay of Plenty Regional Council to gain funding support for a potential managed retreat programme. This would enable property owners to relocate away from the high-risk area.

Our Long Term Plan includes this project but notes that funding arrangements would need to be finalised before the managed retreat progresses.

• Implementing a Managed Retreat from the Awatarariki Debris Flow Hazard Fact Sheet - (PDF, 590 KB)
• Project Information - Awatarariki Managed Retreat - (PDF, 752 KB)

What is proposed?
The managed retreat programme is expected to cost $15.06 million in total. This proposal would allow properties to be purchased at current market value, and also includes contributions to legal and relocation costs for landowners. Property valuations would be conducted independently at the time an offer is made, and a dispute resolution process will be available should owners not agree with valuations.

If the managed retreat programme is not agreed upon by all parties, a proposed change to our District Plan will seek to re-zone the high-risk land from ‘residential’ to ‘coastal protection’, preventing any future development. A change to the Bay of Plenty Regional Natural Resources Plan would also seek to manage the existing risk to people by preventing them from living on the fanhead.

What are the costs, and who pays?

Council is working with funding partners to finalise the cost-sharing arrangements. The managed retreat proposal would see the $15.06 million cost split three ways. Subject to budget bids being successful, the funding partners are the Whakatāne District Council, Central Government and Bay of Plenty Regional Council. The District Council portion of $5.02 million is proposed to be loan funded over 30 years.

The Plan changes are estimated to cost a further $1.7-2.0 million and would be loan funded over ten years. The rating cost would be funded through the general rate.

The situation

As a result of multiple factors, the cost of operating our water supply and wastewater services is increasing more rapidly than forecast in the Long Term Plan.

Central and Regional Government expectations of the health and environmental outcomes of these services are steadily increasing. For example, following the Havelock North water supply contamination incident and inquiry, the sector’s ability to deliver safe, potable water for the community is also being scrutinised. The local government sector’s impact on fresh water management is also a focal point of national debate.

Added to this challenge, adjustments to our work programme and budgets are required as we get a better understanding of the state of three waters assets (water supply, wastewater and stormwater), as a result of improved asset data collection and analysis. Adjustments are also needed to reflect the known operating costs of the new Otumahi water scheme, which recently came online.

• Project Information - Three Waters Operations and Backflow Prevention - (PDF, 761 KB)

What is proposed?
An increase is proposed in the operating expenditure for three waters in 2019/20. This will help us to deliver the comprehensive work programmes set out in Council’s Asset Management Plans and Infrastructure Strategy for our three waters services.

The increase in operational expenditure budgets for 2019/20 would support improved consent condition compliance monitoring; help deliver longer-term service improvements; and prepare for significant resource consent applications in the near future.

What are the costs, and who pays?

The additional operational funding required for three waters in 2019/20 is $438,000. This would result in an average rates increase of around $88 per property connected to equalised water supplies and wastewater services*. This is the biggest single driver of rates increases for 2019/20, but is something we cannot avoid, as we need to make sure our services are well managed and meet current and future health and safety standards.

* With many properties on volumetric charging, the actual cost may differ from this average. Also, the Murupara schemes are not equalised for rating purposes and will face independent cost adjustments.

• Draft Capital Projects List 2019/20 - (PDF, 900 KB)
• Draft Financial Forecast Statements and Funding Impact Statement - (PDF, 5.63 MB)
• Whakatāne District Council Financial Strategy 2018-28 - (PDF, 445 KB)
• Summary Whakatāne District Council Long Term Plan 2018-28 - (PDF, 7.5 MB)
• Full Whakatāne District Council Long Term Plan 2018-28 - (PDF, 14.2 MB)