Annual Plan 2019/2020

Consultation has concluded

Hinemoa The Long-term Plan 2018/28 (LTP) includes significant investment in maintaining, renewing and improving key infrastructure like roads, stormwater, wastewater networks and schemes, water supplies and sports, recreation, community and cultural facilities.

Nine months in we are reviewing progress made and setting our budgets and work programmes for the 2019/20 financial year. We want to share with you some adjustments needed as a result of key challenges we face and seek your feedback on one key matter around our wastewater services.

The Annual Plan 2019/20 document provides a summary of developments related to projects and work and the necessary changes to our 2019/20 budgets against what was indicated in the LTP. We have worked hard to review and make adjustments, where prudent, to planning and budgets, while remaining mindful of not compromising the objectives of individual projects or our LTP.

The Annual Plan 2019/20 has been adopted by Council. A copy of the Annual Plan 2019/20 is here.

Consultation has concluded

We are proposing to deliver our wastewater services differently...
Why are we considering this?
The management and operation of Council’s wastewater network infrastructure is becoming increasingly complex. Demands and risks on wastewater networks is a significant concern for all of New Zealand and nationally the management and delivery of wastewater services is under the microscope.
We have some major challenges ahead of us (more details in the consultation document)...
1. Ageing network
2. Growth
3. Compliance
4. Out of Forest commitment
5. Capability - Future skill shortage in workforce
6. Climate change
7. Funding and financing of the services
8. Central government - localism vs amalgamation and regulation of service and delivery
The proposal

Contract for service delivery spanning 25 years – This reflects the long lifecycles of networks and links all network systems under one comprehensive set of performance objectives

Operate-Maintain-Renew – The contractor will be responsible for:
- All operations to maintain networks in stable and reliable condition
- Deliver required level of service
- Comply with all resource consent measures
Design-Build-Operate-Maintain-Renew – The upgraded wastewater treatment plant in accordance with resource consent conditions (when known)
What has been undertaken to date?

This has been a three stage process:
- Expressions of Interest form suitably qualified groups/consortia/companies
- Request for tender and shortlisting following extensive testing, interviews and reference checking
- Preferred consortia presented to Council
- Ongoing work with consortia to develop viable and prudent proposal
- Proposal supported in principle by Council subject to community feedback and peer review of all aspects of the contract
He aha ō whakaaro? What do you think? We would like to know your views on this proposed change to how we deliver wastewater services.

Do you support in principle for the long term contracting of our wastewater services? Contracting out allows Council to gain certainty in risk management, future and ongoing costs, reliability and performance management?

Next steps:
- Your feedback will be combined along with the details of the contract and costs to operate in this way.
- This will be presented to Council in June
- Council will consider and decide to either enter into a transition of service and award of contract
- Further consultation would be required for Council to contract out long term our wastewater services. This consultation would require details of the contract and costing prior to Council making a final decision.
Ngā Kaupapa Matua o te Kaunihera - Council's Major Projects
The Long-term Plan 2018/28 is a 10-year plan that connects the district’s 2030 vision to action and invests in work programmes and projects for the benefit of our community. The Annual Plan 2019/20 reviews and make adjustments, where prudent, to planning and budgets, while remaining mindful of not compromising the objectives of individual projects or our LTP.
The Key projects are:
- Our Iconic Museum
- The Aquatic Centre
- Sir Howard Morrison Performing Arts Centre
- Pensioner Housing
- Wastewater treatment – Out of the forest
- District sewerage schemes –East Rotoiti/Rotomā
- Development contributions policy
- Lakefront redevelopment
- Whakarewarewa Forest
- Kuirau Park and skate park
For more information on the major projects here
Ō Reiti - Your rates

So what does this mean for your rates?
In setting the Long-term Plan (LTP) Council agreed that there needs to be certainty to ratepayers regarding their rates. The 10-year increases were set at rates that match the increases to Council’s cost base. Changes to this within the first five years of the plan are driven by a commitment to the aspirations of Vision 2030 and to delivering the services identified in the LTP.
An average rates increase of 4.9% is proposed for the 2019/20 year. This is lower than the 5.1% rise indicated in our LTP and is the result of a targeted approach to identifying opportunities for additional revenue alongside efficiency savings.
However, it is worth noting that the increases will affect various properties differently, as some of the key changes are in targeted rates. Hence, if a property does or doesn't receive the following targeted services then the rates will will be affected accordingly. To see what your rate could be in 2019/20.

Sewage disposal – new targeted rate - Rotoma residents

From 1 July 2019 properties in the Rotoma area will be connected to the new East Rotoiti/Rotoma scheme. The new service being provided will result in residents receiving the targeted rates for sewage disposal of $463.84 to contribute towards the operating costs associated with network.

When the network is fully completed (estimated 2020/21) all properties serviced by the East Rotoiti/Rotoma scheme will start contributing towards the scheme’s construction costs.

Sewage disposal – increased targeted rate due to new schemes

Rotoma properties will be connected to the new East Rotoiti/Rotoma sewage scheme from 1 July 2019. As these properties come on line Council needs to reflect the additional costs associated with the commissioning and connection to the scheme and the provision of a new service. This new service will add to Council’s overall cost to operate the network. It is estimated the total operating cost of the scheme will be approximately $0.98m per year. Properties that are part of the scheme will contribute $300,000 per year, leaving $0.68m to be funded from the remainder of the community.

This means each property in the Rotorua district will receive an additional pan charge of 12% or $49.92 (GST excl). ($413.92 2018/19 to $463.84 2019/20)

For information on how rates are charged and understanding your charges here
He Kupu nā te Manukura - Mayor’s message
E ngā iwi puta noa i tō tatau rohe o Rotorua, tēnā tatau.

The 2019/20 financial year is year two of our 2018-2028 Long-term Plan, a 10-year plan that connects the district’s 2030 vision to action and invests in work programmes and projects for the benefit of our community, based around five key themes;
- Reviving our facilities
- Environmental sustainability
- Growing our district
- Keeping the foot on the pedal of progress
- Funding and delivery
The Long-term Plan (LTP) includes significant investment in maintaining, renewing and improving key infrastructure like roads, stormwater, wastewater networks and schemes, water supplies and sports, recreation, community and cultural facilities.

Nine months in we are reviewing progress made and setting our budgets and work programmes for the 2019/20 financial year. We want to share with you some adjustments needed as a result of key challenges we face and seek your feedback on one key matter.

The world around us has not significantly changed since we adopted the LTP but challenges like sourcing of external funding, our ongoing commitment to engagement and partnering, the condition of assets and lengthy resource consenting processes have impacted on what we’ve been able to achieve in year one (2018/19). This will result in changes to overall timing of some of our planned programme of work and, in some cases, changes to costs.

This document provides a summary of developments related to projects and work and the necessary changes to our 2019/20 budgets against what was indicated in the LTP. We have worked hard to review and make adjustments, where prudent, to planning and budgets, while remaining mindful of not compromising the objectives of individual projects or our LTP.

An average rates increase of 4.9% is proposed for the 2019/20 year. This is lower than the 5.1% rise indicated in our LTP and is the result of a targeted approach to identifying opportunities for additional revenue alongside efficiency savings.

Much of our work in 2019/20 will continue as set out in our LTP with no significant changes but one key topic we would like feedback about relates to the pressures on our wastewater services and a proposal for an alternative way to deliver this service across the district.

There will be a number of ways for you to tell us what you think and have your say.

We look forward to your input as we continue the journey to “colour” Rotorua’s future – for you, your tamariki and mokopuna, and the progress of this wonderful district we all call home.

Together – tatau tatau – we can and do make a difference.

Hon Steve Chadwick JP
Mayor of Rotorua