Growth Issues Looking Back & Looking Forward

Development Contributions

0

10000

20000

30000

40000

50000

60000

Years (time)

Fee

• Is cumulative impact of DC changes & charging full costs to growth:– Providing competitive advantages to some

developers/areas? Papamoa existing surplus water capacity

funded by ratepayers $255; Wairakei no capacity $3,133

– deterring growth in some locations? North West Bethlehem

– negative for existing and future ratepayers? Modelling indicates in ratepayer interest to

subsidise DC with larger rating base spreading rating burden & avoid escalating cost of capital.

TCC Approaches to Growth

• Past

• Present

• Future

Refer table

Looking Ahead

• Growth needs to occur where infrastructure is provided

• If growth not viable in planned areas – where will it go? Consequences of this?

• Housing price points critical to maintain affordability and increase rating base.– 64% of households income <$70,000 pa– $400,000 house $132,000 deposit on $70k – 20% in no. houses <$400,000 in last 5 yrs

(compared to prior 5 yrs).

Looking Ahead (cont.)

• Rating base needs to increase to share burden of growth costs.

• Is cumulative impact of DC changes and charging full costs to growth:– Providing competitive advantages to some

developers/areas? – deterring growth in some locations?– negative for existing and future ratepayers?

Benefits of Planned Growth

• Rating base grows spread rating burden • Economic development• Implementation of growth management

strategy

• Fair & competitive market• Housing affordability

Discussion & Questions