Year two
Our Annual Plan is directly informed by our long-term plan. We’re currently preparing our Annual Plan 2022/23, which is year two of our long-term plan. So far, Council is not proposing any significant changes and is largely sticking to the plan we consulted on last year.
Overview
Since December we've been assessing our operating environment, refreshing information, identifying any necessary amendments to what's in our long-term plan, and updating budgets. It's become clear we need to stick to our 20-year long-term plan, which is about investing for resilience and growth. In the first three years alone, we’re looking to invest $225.3 million.
In sticking to our plan we'll keep our strategic direction, community outcomes, levels of service, strategic assets and proposed major projects as they are. Our financial strategy will continue to balance rates, borrowings, and capital expenditure, and we'll continue to work with mana whenua on building a mutually mana-enhancing partnership. However, we do need to make some minor amendments such as rephasing some of our projects, due to factors beyond our control including supply shortages, inflation, and COVID-19.
The flow-on effect of COVID-19 is starting to impact Council projects, and we expect this to continue as COVID-19 spreads through New Zealand. It's likely that Council will need to delay some of its planned projects due to building and construction material shortages, escalating material costs and contractor availability.
As things stand, we're looking at a 7.5 percent average rates increase, which is lower than the 8.0 percent projected increase for year two of our long-term plan. Council will continue to look for opportunities to reduce this further before the final Annual Plan is adopted at the end of June 2022.
While COVID-19 continues to be a factor, this is a big year for the Kāpiti Coast. With Te Ara Nui o Te Rangihaeata (Transmission Gully) finally open, and a substantial list of projects and initiatives in progress, we have the opportunity to emerge from this year stronger than ever.
Staying focused on what matters most
The Kāpiti Coast continues to face the big issues identified in our Long-term Plan 2021–41, including access to housing, climate change and managing growth. Some of these have been further exacerbated over the past year by the economic and social impacts of COVID-19.
As agreed with the community through our consultation on the long-term plan, we'll progress work by:
- taking a bigger role in housing
- rebuilding the Paekākāriki seawall in timber with improved beach access
- setting up a Council-controlled organisation (CCO)
- exploring whether Council may be able to have a role in the airport.
More information about these decisions can be found in our Long-term Plan 2021–41.
What’s in it for your community?
A couple of localised examples of the projects we intend to deliver for your community through the Annual Plan 2022/23. You can read more about these and other projects in our Projects section.
Paekākāriki-Raumati
- Building a 900-metre long timber replacement of the Paekākāriki seawall to improve protection of the road, infrastructure and the beach environment.
- Road safety improvements at Raumati Beach Village to improve safety, particularly around intersections and crossing points used to access schools and shops.
Paraparaumu
- Start of the Maclean Park redevelopment, including new toilet and shower facilities and an upgrade of the skatepark.
- Improvements to Paraparaumu Transport Hub includes creating people-friendly, functional and safe spaces, including a larger, safer and more convenient bus interchange.
Waikanae
- Mahara Gallery upgrade to enable the gallery to permanently house the Field Collection, a significant asset for Waikanae and the whole Kāpiti Coast District.
- Continuing to develop the new Waikanae Library and Service Centre. The first phase, to confirm the best location for the new library within Mahara Place, is already underway. The second stage, the design, is set to begin by early 2023.
- Waikanae Water Treatment Plant upgrade to increase earthquake resilience and to replace aging equipment.
Ōtaki
- Ōtaki Pool stage 2 improvements, including upgrading the changing rooms, increasing heat efficiency and reducing the facility’s carbon footprint.
- Upgrade the Ōtaki/Hautere Water Treatment Plant to remove turbidity and ensure access to safe drinking water.
Keeping pace with change
Our work programme for 2022/23 remains as outlined in the long-term plan, but some major projects and initiatives need to be rephased to reflect the reality of the current delivery environment.
In particular, the flow-on effect of COVID-19 is having a significant impact on Council projects. We are having to deal with building and construction material shortages, escalating material costs and limited contractor availability.
Key projects we intend to rephase include the East-West connection in Paraparaumu with a ‘link road’ from Arawhata Road to Ihakara Street, and the Waikanae Stage 2 Water Treatment Plant upgrade.
Subject to Council’s approval, $5.6 million will be allocated for Stage 2 of Otaraua Park for the development of an amenity building (changing rooms and public toilets) and a sports pavilion to serve the users of the sports fields and wider park environment.
Other proposed activities and projects are mostly consistent with the long-term plan. Council will continue to revisit timelines as year two of the long-term plan progresses.
Capital projects
Infrastructure
| Project | Long-term Plan 2022/23 forecast | Annual Plan 2022/23 proposed | Variance |
| Strengthen east-west connection in Paraparaumu with a 'link road' from Arawhata Road to Ihakara Street | $16 million | $0.4 million | -$15.6 million |
| Increase our renewal of footpaths across the district | $1.5 million | $1.5 million | $0.0 million |
| Rebuild Paekākāriki seawall in timber and improve beach access | $3.3 million | $3.3 million | $0.0 million |
| Keep upgrading our stormwater network to protect homes and businesses from flooding | $6.1 million | $6.0 million | -$0.1 million |
| Progress our drinking water safety and resilience project | $4.7 million | $12.6 million | $7.9 million |
| Upgrade our water network | $2.8 million | $2.8 million | $0.0 million |
| Upgrade our wastewater treatment plant | $3.7 million | $3.6 million | -$0.1 million |
| Upgrade our wastewater network | $1.1 million | $1.1 million | $0.0 million |
Community services
| Project | Long-term Plan 2022/23 forecast | Annual Plan 2022/23 proposed | Variance |
| Mahara Gallery | $1.9 million | $2.6 million | $0.7 million |
| Upgrade Maclean Park, including progressing the development of Te Uruhi – Kāpiti Gateway with co-funding from Government | $0.9 million | $2.2 million | $1.3 million |
| Continue development of Otaraua Park and begin redevelopment of Waikanae Park | $0.3 million | $5.9 million | $5.6 million |
| Move on to stage 2 of our improvements at Ōtaki Pool | $0.7 million | $0.7 million | $0.0 million |
| Develop a new multi-use space for the Waikanae library and community service centre | $2.8 million | $2.0 million | -$0.8 million |
| Replace Te Newhanga Kāpiti Community Centre | $0.8 million | $1.4 million | $0.6 million |
| Reshape our community facilities in Ōtaki, focussing initially on the library and memorial hall | $0.3 million | $0.2 million | -$0.1 million |
Other projects and initiatives
| Project |
| Implement our climate emergency action framework and action plans for climate change mitigation and adaptation across our work |
| Continue our emissions reduction programme within Council as we work towards becoming carbon neutral by 2025, and increase community education to reduce waste |
| Continue to support our district's recovery from COVID-19 |
| Work with iwi and the business community to implement the economic development strategy and develop a destination management plan and workforce plan |
| Set up a council-controlled organisation that could be used in the future for activities to benefit the district |
| Support and enable increased supply and development of housing |
| Develop and implement our district growth strategy |
| Review our District Plan, particularly to reflect central government's National Policy Statement on Urban Development (NPS-UD) |
You can read more in our Long-term Plan 2021–41.
What’s different?
We are making some minor amendments to our Long-term Plan 2021–41, which will be reflected in our Annual Plan 2022/23.
Lower average rates increase
Council rates are proposed to rise 7.5 percent on average instead of the 8.0 percent projected in the long-term plan. This increase is around $4.67 per week per ratepayer (based on 25,766 (forecast rateable unit per long-term plan for 2022/23)). Council will continue to look for opportunities to reduce this even further before the final Annual Plan is adopted at the end of June 2022.
Slowing down our repayment of borrowings for asset replacement
By slowing down our planned repayment of borrowings for asset replacement (including our water supply) and by not closing the unfunded depreciation gap in 2022/23, we will be able to create a 1.3 percent saving. This is on the assumption that central government will mandate removal of water assets from council ownership.
Lower net borrowings
Net borrowings will be less than what was forecast in the long-term plan. Our June 2023 net borrowings are forecast to be $220 million (208 percent of operating income), compared to $246 million (220 percent of operating income) in the long-term plan. This is below the 250 percent preferred limit.
Returning our water account surplus
We can return $1 million back to ratepayers from the water account surplus (from water rates, which is kept in a “closed” account).
Increasing operational cost pressures
There are increasing operational cost pressures on Council relating to growth, increasing demand for services, climate change, and minimising the impacts of COVID-19 on our community. Together they result in a 3.7 percent rates impact.
Slight increase in growth projections
Council has re-examined growth projections, which resulted in a slight increase in rateable units (over and above growth projections used in the long-term plan), spreading our costs over a wider rating base. The impact of growth on rates is expected to be 1.1 percent, which is marginally above the 1 percent projected in the long-term plan.
Lower depreciation charges and interest costs
Given project/capital spending for 2021/22 will be around $52 million (lower than the $73.5 million in year one of the long-term plan), there will be lower depreciation charges and interest costs in 2022/23. Due to lower spending, some capital projects will need to be rephased. This equates to a reduction in rates of approximately 1.5 percent.
Fees and charges
We are making a small increase to most fees and charges of 2.4 percent. This increase is in line with BERL Local Government Cost Index (LGCI) projections that include the increasing cost of inflation.
Other amendments to fees and charges include:
- Library overdue loan charges are to be removed
- The current fee for the 10-week aquatic (small group) programme will be replaced with an enrolment per term fee that recognises that the length of term is variable.
- A change in the application fee for Building Consents certificate of acceptance to cover the first 2 hours only. This reflects the time it takes Council to process these applications. If required, additional hours will be charged at the Building Consents Officer’s hourly rate.
For the full schedule see Proposed fees and charges 2022/23 [PDF 660 KB].
Rates
When we agreed our Long-term Plan 2021–41 with the community in June 2021, the projected average rates increase for 2022/23 was 8 percent. Since then, we have looked long and hard at what our rates need to be for 2022/23 to maintain facilities, achieve levels of service and plan for growth. We also had several Council briefings and workshops to confirm what we need to focus on delivering in 2022/23 (you can view these on our YouTube channel).
As a result, we are now proposing an average increase of 7.5 percent. This increase is around $4.67 per week per ratepayer (based on 25,766 (forecast rateable unit per long-term plan for 2022/23)).
Council will continue to look for opportunities to reduce this even further before the final Annual Plan is adopted at the end of June 2022.
Find out the proposed Council rates increase for your property for 2022/23 using our Rates search.
Where the money goes
Each day, people in our district use a range of Council services, from libraries, swimming pools and parks, through to dog registration and building consents, as well as infrastructure such as water and roading.
In 2022/23, we’re anticipating rates revenue of approximately $96.514 million (including GST).
Read on to find out more about the costs of providing services per resident per week, based on our current estimated population of approximately 58,000.
Infrastructure
| Area | Cost of providing service/resident/week |
| Access and transport – Putanga me te waka | $5.53 |
| Coastal management – Whakahaere takutai | $0.76 |
| Stormwater – Wai āwhā | $1.75 |
| Water – Wai | $3.30 |
| Wastewater – Wai para | $3.33 |
| Sustainability and resilience – Toiūtanga me te manawaroatanga | $0.71 |
Community services
| Area | Cost of providing service/resident/week |
| Parks and open space – Ngā papa rēhia me ngā papa | $2.58 |
| Recreation and leisure – Ruhanui | $4.19 |
| Community facilities – Whare tapere hapori | $2.05 |
Partnerships
| Area | Cost of providing service/resident/week |
| Tangata whenua | $0.36 |
| Community support – Ngā hāpai hapori | $1.03 |
| Governance – Mana whakahaere | $1.69 |
| Economic development – Whakawhanake umanga | $1.07 |
Planning and regulatory services
| Area | Cost of providing service/resident/week |
| Districtwide planning – Mahere ā-rohe | $1.28 |
| Regulatory services – Ratonga whakaritenga | $3.80 |
Corporate
| Area | Cost of providing service/resident/week |
| Corporate services – Paheko rangapū | $2.36 |
Help with rates
We know any rates increase has an impact, particularly for those in our community on low incomes. If you need help paying your rates, please give us a call or visit one of our service centres.
Council rates remissions
If you’re having trouble paying your rates, Council may be able to help. This includes help for temporary hardship due to repairing water leaks, a serious health issue or essential housing maintenance and other circumstances. Find out more at Rates remissions (Council assistance).
Government rates rebates
Council helps residents access Government rates rebates. If you’re a low-income homeowner or retirement village resident who holds a licence to occupy agreement, you may be eligible for a Government rates rebate. Learn more at Rates rebates (Government assistance).
What the proposed rates increase means for you
While the proposed average rates increase across the district for 2022/23 is 7.5 percent – around $4.67 per week per ratepayer – the actual increase will be different for different properties, even in the same area. This is because property rates are calculated using a combination of fixed charges, land value and capital value. Land value and capital value are assessed independently by Quotable Value New Zealand Limited.
See how the proposed average rates increase for 2022/23 would apply to median properties across the district below.
| Median Property Values | Urban | Rural | Commercial | |||
| Paraparaumu/Raumati | Waikanae | Ōtaki | Paekākāriki | |||
| Capital value | 670,000 | 690,000 | 485,000 | 755,000 | 1,010,000 | 850,000 |
| Land value | 370,000 | 365,000 | 240,000 | 430,000 | 560,000 | 500,000 |
| Total current rates | 3,418 | 3,424 | 2,886 | 3,278 | 2,070 | 3,963 |
| Total proposed rates | 3,665 | 3,668 | 3,068 | 3,550 | 2,184 | 4,278 |
| $ increase/year | 248 | 244 | 182 | 273 | 113 | 314 |
| $ increase/week | 4.76 | 4.69 | 3.50 | 5.24 | 2.18 | 6.05 |
| % change | 7.2% | 7.1% | 6.3% | 8.3% | 5.5% | 7.9% |
Notes:
- Urban property figures include water rates for typical water usage (fixed and volumetric) of 255 cubic metres per year.
- Commercial property figures include a fixed water charge.
- All rates figures include GST.
- Excludes Greater Wellington Regional Council rates.
Find out the proposed Council rates increase for your property for 2022/23 using our Rates search, and more about rates in our Rates section.
Keeping you informed
As we are sticking to our Long-term Plan 2021-41, we are not required to consult on our Annual Plan 2022/23. Consultation on the Long-term Plan 2021–41 was extensive and we are not looking to re-visit decisions made through that process.
However, keeping you informed is important to us. We hope you find this information useful. If you have any further questions or comments about the draft Annual Plan 2022/23 you can email [email protected] or contact an elected member.
Timeline for preparing our Annual Plan 2022/23
|
Date |
|
|
10 February |
Council Annual Plan workshop 1 (watch workshop on Youtube) |
|
24 February |
Council Annual Plan workshop 2 (watch part 1 and part 2 on Youtube) |
|
26 May |
Council meeting to agree fees and charges for 2022/23 year |
|
30 June |
Council meeting to:
|