Draft Annual Plan 2011-12 Summary[1]

8/7/2019 Draft Annual Plan 2011-12 Summary[1]

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PCC # 6620611

DRAFT ANNUAL PLAN2011/12

Mayor and Chief Executivesletter to the community

Welcome to the Porirua City Councils Draft Annual Plan Summary for

2011/12. The services and activities we propose, and the budget weve

allocated to these, are in keeping with the priorities the Council agreed in

the Long Term Plan and what you have told us over the years.

This plan continues to deliver the things that make living in Porirua easy andenjoyable improving the quality of Porirua Harbour, extending our walking andcycling pathways, upgrading our parks and playgrounds and working with ourcommunities through the Village Planning Programme.

Some programmes are being boosted. Like ensuring the citys keyinfrastructure is maintained. We have brought forward $2.1 million in this planto upgrade our pipe network for sewage disposal. When the Council surveys

city residents each year, 95% of respondents tell us that this is important.

Extra money has been made available to develop the heart of our citycentre. We propose spending $150,000 to fast track the crucial planning forimplementation of the City Centre Revitalisation Plan.

This project is about more than just shopping. Its about creating a city heartwhere a socially diverse mix of people enjoy coming because of the uniquesense of place we will have created. Its also about business, employment andresidential growth.

We want the to work regionally and propose spending $50,000 to advanceways of getting better value through sharing services with other localauthorities in the Wellington Region.

Some things have been deferred in this draft plan. If we want to keep ratesdown we simply cant do everything we would like.

The Council has worked hard to keep rates increases below what wasforecast. We believe this budget is prudent and sensible and that it will deliverthe services that our communities expect while also keeping spending incheck during ongoing tough economic times.

Now is your time to tell us what you think. We want to hear whether or notyou agree with our proposals. You have from 29 March to 29 April 2011 tomake a submission. Please let us know your thoughts so we can take this intoaccount before we fi nalise the 2011/12 budget.

Nick Leggett Gary Simpson

MAYOR OF PORIRUA CITY CHIEF EXECUTIVE

We want to hear yourviews on the proposals

we have made inthis Draft AnnualPlan. You have untilFriday 29 Aprilto tellus what you think ofthe Councils plans.We look forward tohearing from you.

Investing ininfrastructure

The Council surveys city residents eachyear and 95% of respondents tell usthat infrastructure, like water supply andsewage disposal, is a priority. Thesepriorities are refl ected in this draft budget.

We propose spending $2.1 millionto upgrade the sewage reticulationnetwork. Ongoing work includesincreasing the capacity and effi ciencyof the waste water treatment plantand work to further reduce stormwater

infi ltration of the sewage system duringperiods of heavy rain.

The Council is also committed tofurther reducing loss of potablewater, purchased for Porirua from theGreater Wellington Regional Council,by continuing to upgrade our waterdistribution network of reservoirs andcitywide reticulation network.

We are also keen to hear your thoughtson the Regional Waste Managementand Minimisation Plan. This will

provide opportunities for a numberof joint solid waste activities, suchas consistent regional approaches topolicy development, exploring sharedservices and development of a regionaleducation strategy.


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Being prepared for natural disasters like an earthquake ortsunami is very much at the forefront of most peoples mindsright now. The Council continues to improve our readinessto respond to emergencies with project funding next yearfocusing on installing more water storage tanks acrossthe city and training volunteers across a broad range ofcommunity organisations with roles in emergency situations.Council offi cers in various roles suppor ted the people ofChristchurch both in Christchurch and in the WellingtonRegion and have brought back valuable information to help usprepare better for emergencies in Porirua.

Deferred programmes of workSeveral tough decisions have been made in order to balanceinvestment in other priority projects highlighted above. Themain changes we propose are:

Roof replacement at Cannons Creek Swimming Pool this rate-funded property maintenance project of $132,000 is ableto be deferred until 2012/13.

Titahi Bay Road sea wall Year 1 ($212,000) of this multi-year project has been deferred until 2012/13. This will notimpact on rates for 2011/12 due to the project being loanfunded, but would reduce rates for 2012/13 rating yearand free-up capacity to complete higher priority projects.

Moana Court pensioner fl ats maintenance We proposedeferring this rate-funded project ($114,000) forremodelling of bathrooms and kitchens in the Council-owned pensioner fl ats. The deferral is linked to thereview of Strategic Properties under the Services and

Costs review. Housing New Zealand Community Renewal Programme

HNZ has delayed this programme in Eastern Poriruawhich has reduced rate-funding by $105,000 from the2011/12 budget that had been set aside for streetscapeimprovements, walkways and landscaping improvements.

Protecting our landscapes andharbourProtection of our harbour and landscapes continues to be apriority. Included in this draft plan is funding to improve waterquality in Porirua Harbour, extend the Pauatahanui pathway(Te Ara Piko) and continue coastal protection and walkwayimprovements in Titahi Bay.

We also propose increasing annual administration chargesunder the Resource Management Act 1991, along with feesand charges under the Building Act 2004.

Developing our city centreThis Council is committed to revitalising the heart of our citycentre for residents, businesses and visitors. The Councilsrole is to help create the environment for business to investso $150,000 has been budgeted to make faster progress onthe City Centre Revitalisation Plan.

The Council has also listened to city centre retailers andbuilding owners who say the CBD needs more all-day parkingfor staff, which will free up parking for shoppers. This draftplan proposes Pay and Display machines for longer termparking close to the city heart. Free short term shopper

parking will remain a feature of the Porirua City Centre.

Active and connected communitiesPorirua has an international reputation for the way wework together as a city to improve the quality of life in ourcommunity and your Council continues to support thisapproach. Having lost an annual grant from the Ministry ofJustice for graffi ti management, the Council has included anextra $62,000 to continue ongoing community programmes toreduce graffi ti across the city.

Community projects like the award-winning VillageDevelopment Programme, Bothamley Park restoration,

playground maintenance and road safety programmes, willcontinue in this plan. The proposed budget also includes$50,000 to provide affordable access to digital technologiesin the city, including targeted development of broadbandinfrastructure.



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The effect on your ratesThe Council has made a real effort to create a budget that will keep rates as low aspossible without compromising key services.

The average ratepayer will see a 5.7% increase in rates in 2011/12 based onthe proposed budget. The amount of rates varies between properties because ofdifferences in capital values and differences in services provided for residential,rural and commercial properties.

Property revaluation changes also affect the rates paid. The results of propertyrevaluations in September 2010 will fi rst take ef fect for rating purposes as at 1 July2011. Consequently, the increase in rates to individual ratepayers will be affectedby the percentage change in the revaluation of their property.

The tables below give an estimate of the rates that residential and rural propertyowners will pay for the 2011/12 year. Final rates fi gures may change based on theincrease in number of properties in Porirua and any budget changes as a resultof consultation made in the fi nal Annual Plan. These costs do not include ratescharged by Greater Wellington Regional Council, which are noted separately on yourrates bill.

Table 1: Residential Properties proposed rates for 2011/12

Property Value ($) 2011/12 Annual Rates ($) Rates per week ($)

$350,000 $2,208 $42

$450,000 $2,552 $49

$550,000 $2,897 $56

$750,000 $3,585 $69

$1,000,000 $4,446 $85

Note that Table 1 rates are inclusive of general and targeted rates

Table 2: Rural Properties proposed rates for 2011/12

Property Value ($) 2011/12 Annual Rates ($) Rates per week ($)

$250,000 $1,039 $20

$450,000 $1,521 $29

$550,000 $1,762 $34

$750,000 $2,244 $43

$1,000,000 $2,846 $55

Note that Table 2 rates include Uniform Annual General Charge but exclude targeted rates

Spending money tosave moneyReducing costs and seeking otherstreams of revenue are important to thisCouncil. The Council proposes includingan extra $50,000 in the budget toexplore oppor tunities for effi ciency gainsthrough sharing some services with otherlocal authorities in the Wellington Region.Also included in the proposed budgetis $40,000 to resource work aimedat securing external funding streams,to support community initiatives andprojects through the Porirua City PartnerProgramme. This successful programme

has already raised hundreds of thousandsof dollars toward Porirua City projects.

What you get foryour ratesYour rates pay for many things safedrinking water, fl ushing toilets, stormwater management, rubbish andrecycling collections, roads, walkingand cycling paths, parks, gardens,playgrounds, libraries, swimmingpools, meeting halls, sports grounds,

public toilets, cemeteries, emergencymanagement preparedness, districtplanning and regulatory services likeanimal and noise control, food safety,building and resource consents andother bylaw activities. You also enjoyleisure and recreation facilities likePataka and Te Rauparaha Arena.

Its always diffi cult deciding whatservices we will provide each year andsome are required by law. You can helpus decide by making a submission.

How rates will be spent

Transport12%

Water Services27%

Solid WasteServices

2%Leisure Services

24%

Economy &Community

11%

Cultural Services13%

DemocraticProcess 4%

EnvironmentalManagement

7%

Lei

This pie chart shows the portion of rate-funding for each ofCouncils Groups of Activities in 2011/12. Note that SolidWaste activities are largely self-funding.

Where funding will come fromCouncil has a number of sources of income in addition to propertyrates. This pie chart shows the different sources of income, withrates clearly the primary source. Non cash items such as vestedassets and asset revaluations have been excluded.

UserCharges

23%

Grants &Subsidies

5%

InvestmentIncome 2%

RatesIncome

70%

Income

RIn


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Cultural Services

Leisure Services

Solid Waste

Water Services

Art & Heritage $107

Libraries $113

Cemeteries & Crematorium $15

City Landscape $215

Beaches, Coast and Harbour $10

Sports Fields & Courts $71

Indoor Recreation $155

Recreation Programmes $19

Water $237

Wastewater $248

Stormwater $63

Refuse Collection

& Disposal

$(57)*

Recycling and Waste $39

Cleaning $53

Cost of Council Activities per Household

This illustration shows the average cost (excl GST) of Porirua City Councils activities for

residential ratepayers in 2011/12. The average annual cost of $2,294 (incl GST) for rates is

based on the average-priced residential property in Porirua (valued at $375,000).

Note that these costs do not include rates charged by Greater Wellington Regional

Council, which are noted separately on your rates bill.

* Landfi ll Joint Venture makes a distribution to Porirua City Councils activity costs


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Democratic Services

Economy & Community

Transport

GST $299

Democratic Process $81

Environmental Management

Environmental Policy Planning $59

District Plan Administration $33

and Monitoring

Building Control $22

Dog and Stock Control $6

Environmental Standards $29

Community Development $67

Economic Development $56

City Marketing & Promotion $31

Visitor Information Centre $17

Property $34

Emergency Management $24

Subsidised Roading $156

Roading Other $92


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Draft Prospective Statement of Comprehensive IncomeFor the year ended 30 June 2012

Draft Prospective Statement of Changes in EquityFor the year ended 30 June 2012

Annual Plan2010/11

$000

LTP2011/12

$000

Draft Annual Plan2011/12

$000Rate revenue 42,471 45,201 44,844

Fees & charges 14,619 14,513 15,065

Income from vested assets 2,062 2,121 2,121

Other income 4,884 4,181 4,642

Total income 64,036 66,016 66,672

Personnel costs 20,822 21,334 21,753

Interest expense 2,832 3,013 2,747

Depreciation and amortisation 18,250 17,572 17,537

Other expenses 28,210 28,502 29,118Total expenditure 70,114 70,421 71,155

Net surplus/(defi cit) (6,078) (4,405) (4,483)

Other comprehensive income

Revaluation of proper ty, plant and equipment 79,431 8,465 7,806

Total comprehensive income 73,353 4,060 3,323

Annual Plan2010/11

$000

LTP2011/12

$000


$000

Equity at 1 July 1,078,674 1,158,569 1,162,340

Revaluation gains /losses taken to equity

79,431 8,465 7,806

Increase / (decrease) in specialfunds & reserves

0 0 0

Net income / (expense) recognised directly in equity 79,431 8,465 7,806

Net surplus / (defi cit) (6,078) (4,405) (4,483)

Total comprehensive income 73,353 4,060 3,323

Equity at the end of the year 1,152,027 1,162,629 1,165,663

Equity at the end of the year is comprised of the following:

Ratepayers equity 328,350 317,564 329,889

Special funds and reserves 8,566 10,741 9,473

Asset revaluation reserves 815,111 834,324 826,301

Equity at the end of the year 1,152,027 1,162,629 1,165,663



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Annual Plan2010/11

$000

LTP2011/12

$000


$000

Total equity 1,152,027 1,162,629 1,165,663

Total current assets 23,239 19,771 22,765

Total non-current assets 1,209,007 1,216,462 1,212,154

Total assets 1,232,246 1,236,233 1,234,919

Total current liabilities 15,900 15,947 20,934

Total non-current liabilities 64,319 57,657 48,322

Total liabilities 80,219 73,604 69,256

Net assets1,152,027 1,162,629 1,165,663

Draft Prospective Statement of Financial PositionFor the year ended 30 June 2012

Draft Prospective Statement of Cash FlowsFor the year ended 30 June 2012

Annual Plan2010/11

$000

LTP2011/12

$000


$000

Net Increase in cash fromoperating activities

11,394 10,396 13,887

Net (decrease) in cash frominvesting activities

(26,458) (16,298) (24,493)

Net Increase in cash fromfi nancing activities

9,992 2,500 4,500

Net increase / (decrease) in cash (5,072) (3,402) (6,106)

Cash resources at the beginningof the year

22,587 17,643 23,571

Cash resources at the end of the year 17,515 14,241 17,465


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Key Dates

Submissions Open29 March

Submissions Close29 April

Hearing Dates11 - 13 May

How do I make asubmission?You can download a submission formfrom the Councils website and sendit by one of the following ways:

Mail your submission to:

Draft Annual Plan SubmissionsPorirua City CouncilPO Box 50 218PORIRUA 5240

Email your submission to:

[email protected] your name, postal addressand contact phone number.

Make an online submission:

Fill in an online submission form onthe Councils websitewww.pcc.govt.nz

Deliver your submission:

Bring your submission to reception inthe Councils Administration Buildingin Cobham Court.

Fax your submission:

(04) 237 1445

More InformationCopies of the full Draft Annual Planare available to view at the CouncilAdministration Building and citylibraries, or online at www.pcc.govt.nz

You can also follow us and postfeedback on Facebook and Twitter:

www.facebook.comNick Leggett

www.twitter.com/

nickoleggett

See Mayor Nick Leggetton YouTube

We want to hear your viewsWhat do you think of the Councils proposals for the coming fi nancial year?Do you think weve focused on the right priorities? Whatever your point ofview, it will really help our decision-making to fi nalise the citys Annual Planand budget, if we could hear from you.

Documents

Draft Annual Plan 2011-12 Summary[1]