PORIRUA CITYS DRAFT

Annual Plan Summary

2014/15
Submission period: 7 April 7 May 2014

To view the full Draft Annual Plan and make a submission online go to www.pcc.govt.nz

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ISSN 1171-9648 (print) ISSN 1175-9097 (online)

Welcome
The Mayor and Council want to hear your views on the proposals in the draft Annual Plan 2014/15. Please take the time to get back to us in whatever way you feel comfortable fill out the form at the back of this summary or complete an online form at www.pcc.govt.nz or phone, email, tweet, facebook or post a video to Youtube. Whatever way youd like to talk to us, were keen to listen.

Your Council
You can contact your Mayor and Councillors to discuss anything relating to Council services. Their contact details are listed below.

EASTERN WARD COUNCILLORS

NORTHERN WARD COUNCILLORS

Councillor Luafataalii Litea Ah Hoi Phone 04 237 6566 litea.mufasa@xtra.co.nz Mayor Nick Leggett Phone 04 237 1400 mayor@pcc.govt.nz

Councillor Anita Baker Phone 027 434 8763 anitabaker@xtra.co.nz

WESTERN WARD COUNCILLORS

Councillor Denys Latham Phone 027 692 2970 denyslatham@paradise.net.nz

Councillor Bronwyn Kropp Phone 021 111 5191 bekropp@gmail.com

Councillor Ana Coffey (Deputy Mayor) Phone 021 292 6648 anamcoffey@gmail.com

Councillor Izzy Ford Phone 0275 714 405 izzy.ford.03@gmail.com

Councillor Euon Murrell Phone 027 445 8191 euon.murrell@tommysmana.co.nz

Councillor Ken Douglas Phone 027 492 5651 marilyn.ken@xtra.co.nz

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Councillor John Burke Phone 0274 441 483 jburke@xtra.co.nz

Councillor Tim Sheppard Phone 021 203 8999 tmsheppard@gmail.com

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From the Mayor

On behalf of the Council, I would like to thank the Porirua community for support at last years election. We have a smaller team around the council table this term, with a good mix of energy and experience. All councillors are connected to the many different sectors that make up our diverse and exciting city. Im proud to serve with them. This Draft Annual Plan brings us to the third year of the Long Term Plan (LTP) 2012-22 and Im pleased to say that we are on track in delivering the services contained within it that enhance the experience of making Porirua a great place to live, work, raise a family and retire. We continue to focus on our strategic priorities: enhancing and connecting our villages, improving the health of our harbour, growing opportunities for economic development and providing quality services that make living, visiting and conducting business here easy and enjoyable. As in previous years, the Council has worked to keep rate increases as low as possible recognising the financial pressures many people face. Because of this, we are not planning anything new in this Draft Annual Plan. The Council also faces significant challenges delivering the levels of service people would like with tight budgets and rising costs. We expect these circumstances will continue next year when we review the LTP 2012-22. However, this years plan will deliver the services and core infrastructure that was promised in the LTP 201222 with funding being managed to address new requests from the public such as providing a more timely response to footpath repairs. Although the basis for the rate increase for 2014/15 is in line with the LTP 2012-22, there are a number of additional factors outside of the control of the Council that have lead to the proposed rise in the average rates increase to 4.3%. Without this, it may mean lowering service levels in some areas. There is no hiding the fact this increase is higher than the Council and the community would like. To put the increase into some perspective, the average weekly increase will be between $1.90 and $3.90 per week for most residential properties. See page 16 for a breakdown of rates by property value band. Transmission Gully is the most significant project for Porirua in a generation. Porirua City will build two new roads at Whitby and Waitangirua to connect to the Transmission Gully Highway at the new James Cook interchange. These new roads will be local roads funded by Porirua City Council with subsidy assistance from the New Zealand Transport Agency. The Government has brought forward the construction of Transmission Gully by using the Public-Private Partnership model to fund, build and maintain the Highway. This decision also brings forward the work on the crucial $40 million link roads in Waitangirua and Whitby. As approximately half of these link roading costs will be paid by Porirua City ratepayers this year, we need to provide $4.4 million for the purchase of land and the initial costs associated with the construction of the link roads. Porirua City Council will not be contributing to the cost of the Transmission Gully Highway, as that is a state highway fully funded by the Government. There are still issues to resolve regarding the Petone/Grenada link which is a separate proposal and well be working with you, the Tawa Community Board and Wellington City Council, to come to a position on the best option for our city. The Council is also considering contributing to the Wellington Regional Amenities Fund this year, at an additional $144,000 cost. This fund provides regional benefits in the arts, culture, environmental attractions and events sectors. Wellington City Council, Hutt City Council, Upper Hutt City Council, Masterton District Council and Kapiti Coast District Council already contribute to this fund. We think its important that the Council supports this too as we all move toward working together more closely. Its always a balancing act between keeping rate increases down while still delivering the services we all want for a vibrant city, so its important we hear your views. You can give us your thoughts informally via Facebook, Twitter or YouTube or make a formal submission by filling out the submission form in this document or on our website. Please take the time to tell us your thoughts, so together we can keep Porirua moving forward. Tweet me @nickoleggett

NICK LEGGETT Mayor of Porirua City

Find out more and discuss this Draft Annual Plan with the Mayor and Councillors at the Porirua Expo on Saturday 12 April between 10am to 4pm at Te Rauparaha Arena. Or come to a public meeting at 7pm on Thursday 17 April 2014 at Pataka.

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From the Chief Executive

The Councils Draft Annual Plan 2014/15 has been prepared with a focus on alignment with Year Three of the Long Term Plan (LTP) 2012-22. Like any plan, adjustments have been made to take into account assumptions that have not turned out as anticipated. This Draft Annual Plan is no different in that respect and I will briefly outline the major issues that are discussed within the document. NET DEFICIT AND DECLINING REVENUES The Council is facing a number of financial pressures, one of which is declining non-rate revenue against what was expected in the LTP 2012-22. This shortfall is presenting the Council with a dilemma; to either let the Net Deficit increase beyond that specified in the Long Term Financial Strategy (LTFS); or fund the shortfall from rates (over and above the limit set out in the LTFS); or make savings without affecting levels of service. The forecast Net Deficit for 2014/15 has increased from that signalled in the LTP 2012-22 forecast for 2014/15. The draft Net Deficit of $4.1 million is $1.5 million higher than the original $2.6 million forecasted for 2014/15 in the LTP 2012-22. It is important to note this is consistent with the deficit adjusted to reflect the approved deficit increase within the Annual Plan 2013/14. The significant changes are occurring from a decrease in revenue primarily from fees and charges as well as Development and Financial Contributions of $1.9 million. As a result of this financial position, the Council has signalled it will be reviewing levels of service as part of the development of the LTP 2015-25 that will be consulted on early next year. In the meantime, the Council will continue to deliver the level of services outlined in the LTP 2012-22, along with the planned significant investment in infrastructure discussed in Section 1.5. of the full Draft Annual Plan. BENEFITS TO RATEPAYERS The Councils LTP 2012-22 defines the limits on rates and rate increases over 10 years and as a result of changes approved in the Annual Plan 2013/14, the average annual increase to ratepayers for 2014/15 has increased from 2.9% (Year Three of the LTP 201222) to 4.3%. This increase reflects Consumer Price Index (CPI) plus growth in the city rating base and several other factors outside the control of the Council. CPI is calculated at 2.0% (2.4% in the LTP 2012-22), based on forecast CPI for the year ended June 2015, and growth is assumed to be 1.0% (0.5% in the LTP 2012-22), giving a base increase of 3%. The growth in the rating base is primarily driven by new developments in the Aotea and Whitby areas. Unknown at the time of the LTP 201222 was the impact and timing of two events requiring the Council to increase rates over and above the quantified limit set out in the LTP 2012-22: The bringing forward of capital expenditure for the Transmission Gully Highway (TGH) link roads from 2016/17 to 2013/14 which will add 0.4% to rates; and The Councils move to Capacity Infrastructure Services Limited for the delivery of water management services adding 0.6% to rates. Also contributing to the proposed average increase in rates is the request by the other councils in the Wellington region that the Porirua City Council considers contributing to the Regional Amenities Fund that they are all jointly contributing to. This contribution would mount to $144,000 and will add 0.3% to rates in 2014/15, increasing in later years. These additional proposed increases will add an extra $2.60 per week for the average residential ratepayer. COST OF BORROWING The acceleration of the TGH project has impacted on the Councils borrowing requirements. In order for the Council to access funds to cover capital expenditure for the project at the lowest possible cost, the Council is proposing to join the Local Government Funding Agency (LGFA). By joining the Agency as a Guaranteeing Local Authority, the Council will be able to borrow money at better interest margins. More information on this proposal is set out in Appendix 6.5 of the full Draft Annual Plan. COUNCIL PROPERTY The Council faces challenges in terms of asset management, particularly property maintenance. At a time when the Councils deficit and revenue streams are under pressure, there are difficult choices to make around retaining deteriorating assets or selling them. A current example is the Titahi Bay Hall property but there are other examples. This will be an area under scrutiny in the LTP 2015-2025 review. EFFICIENCY AND EFFECTIVENESS As part of Councils continual strive for improvement, an efficiency and effectiveness review was undertaken last year by accounting company Grant Thornton to provide whole of Council insight. The review investigated Councils activity areas and the inputs and capabilities used to deliver outputs in those areas. The result was largely favourable and found limited scope for a reduction in rates and costs, but it did identify areas where resources can either be applied to negate the existing financial constraints/issues or negate increases in cost per capita above the Consumer Price Index (CPI). As a result three work streams have been developed to investigate how to make improvements in the following areas:

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Strategic Priorities
Procurement; Human Resources; Organisational Alignment. Further detail on this work is described in Section 2.4 of the full Draft Annual Plan. The Council has made tough decisions to remain aligned to Year Three of the LTP 2012-22 and acknowledges the challenges ahead with providing the same levels of service to the community without increasing rates to an unacceptable level. Key decisions are required to balance investment, maintenance and improvement to services while keeping rates affordable. We welcome your feedback. Its important we are focussed on why the Council carries out the activities it does. Below are four priority areas the Council is using to inform the spending choices we make: A City of Villages Connected and distinctive villages, able to have their respective spaces and characters shaped by the people who live in them.

A Healthy and Protected Harbour At the heart of our city of villages, providing recreational, economic and cultural opportunities, now and in the future.

GARY SIMPSON Chief Executive

A Growing City Prosperity, growth and better opportunities for all Porirua residents through city centre revitalisation.

A Great City Experience Quality, affordable and efficient services at every point enabling residents, businesses and visitors to make the most of their city experience.

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Key Points in this Draft Annual Plan 2014/15

LOCAL ROADS CONNECTING TRANSMISSION GULLY HIGHWAY The funding to build two new local roads at Whitby and Waitangirua to connect to the Transmission Gully Highway at the new James Cook interchange is being brought forward to align with the planned two year earlier start of construction on the mainline section of the Highway. This expenditure provides for the purchase of land and the initial construction phase. This project was consulted on with the community during the development of the LTP 2012-22. REGIONAL AMENITIES FUND The Council proposes to contribute to the regional fund which has been set up to provide regional benefits in the arts, culture and environmental attractions and events sectors, for example, the Wellington Zoo. Wellington City Council, Hutt City Council, Upper Hutt City Council, Masterton District Council and Kapiti Coast District Council currently contribute to this Fund. The Council proposes to contribute $144,000 (0.3% of rates) in 2014/15 increasing to $216,000 in 2018/19. This would be an on-going commitment that would be 7.2% of the total fund which is capped at $3 million. CITY CENTRE CANOPY FABRIC RENEWAL The City Centre canopy fabric is near the end of its asset life. If the fabric is not replaced within the next two years, there is an increased risk of failure in the canopy occurring in a high wind event. The Council proposes to provide $200,000 for the detailed design of a more translucent fabric for the City Centre canopy, including assessment of the fabric materials, engineering assessment of existing structure, process design for the replacement of the fabric and lighting design. It is expected that a budget of approximately $3 million will then be required for phase two of this project for the manufacture, removal and replacement of the canopy fabric in 2015/16 if a decision is made to proceed.

NEW ZEALAND LOCAL GOVERNMENT FUNDING AGENCY LIMITED The Council is proposing to join the New Zealand Local Government Funding Agency Limited (LGFA), a Council Controlled Trading Organisation (CCTO), as a Guaranteeing Local Authority. All local authorities are able to borrow from the LGFA, but different benefits apply depending on the level of participation. The Council proposes to participate as a Guaranteeing Local Authority because it believes that it will enable the Council to borrow at better interest margins, and that this benefit outweighs the costs associated with the LGFA. REVIEW OF ADMINISTRATIVE FEES AND CHARGES The Council reviews its Administrative Fees and Charges under the Building Act 2004 and Resource Management Act 1991 annually. For the last financial year (2013/14) the Council approved an increase in fees and charges by 4.9%. The Council consulted on and adopted an increase in fees and charges annually by 4.9% in the LTP 2012-22. Further details of this review are set out in the accompanying Statement of Proposal: Review of Administrative Fees and Charges under the Building Act 2004 and the Resource Management Act 1991 for the financial year 2014/15.

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Financial Summary
LONG TERM FINANCIAL STRATEGY In 2012 the Council formalised a Long Term Financial Strategy (LTFS) for the ten year period 2012-2022 as part of the requirements of the Local Government Act 2002. In setting their LTFS, the Council adhered to the following principles: Having a prudent budget that keeps debt levels manageable, invests in future assets, provides a return in terms of public use of investment and supports intergenerational equity; Prioritising infrastructural investment and expenditure made by the Council to ensure assets are maintained and significant programmes of work are completed; and Recognising that rates are an investment in the city and require a prudent and responsible approach to how they are spent. In preparing the Draft Annual Plan 2014/15, the Council continued with the budget priorities it set during the LTP 2012-2022 as outlined on page 35 of that document. The Council has effectively used Year Three of the LTP , adjusted for the decisions made during the Annual Plan 2013/14, as its basis for this draft Annual Plan. The following is an update of the Councils progress with the key elements in its ten year LTFS.

Balancing the Budget

The forecast operating deficit for the 2014/15 financial year is $4.1 million compared with the Year Three forecast in the LTP 2012-2022 of $2.6 million. While this is an unfavourable variance from the forecasted Year Three result of the LTP 2012-22, the Council believes the Draft Annual Plan is still consistent with the LTFS in that the levels of service continue to be provided and the capital expenditure programme as set out in Year Three will continue to be implemented. The Annual Plan 2013/14 recognised that revenue was failing to meet LTP 201222 expectations and accordingly reduced its revenue budgets for various council activities in this Draft Annual Plan 2014/15. This is primarily in fees and charges and development and financial contributions totalling $1.9 million. This lower level of revenue will also have an impact in future years, presenting the Council with a dilemma on how to continue to provide the current levels of service to the community. As part of the development of the LTP 2015-2025, the Council will need to consult with ratepayers about the implications of the lower revenue. In particular, should the Council delay its return to a Net Surplus (as required by the LGA 2002), change its quantified rate limit set in the LTFS, or review the levels of service provided to ratepayers? These questions are best addressed during next years LTP process where the Council will look at all services and consult with ratepayers on any proposed changes.

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PROSPECTIVE STATEMENT OF COMPREHENSIVE INCOME For the Year ended 30 June Annual Plan 2013/14 $000s
Rate revenue Fees and charges Income from vested assets Other income Total income Personnel costs Interest expense Depreciation and amortisation Other expenses Total expenditure Net surplus/(decit) Other comprehensive income Revaluation of property, plant and equipment Total comprehensive income 45,349 41,740 45,697 43,133 45,697 41,563 48,210 14,675 2,070 4,429 69,384 22,460 3,956 19,142 27,435 72,993 (3,609)

LTP 2014/15 $000s

49,749 16,051 2,072 5,317 73,189 22,348

Annual Plan 2014/15 $000s

50,765 14,722 2,072 3,653 71,212 22,358 4,220 19,721 29,047 75,346 (4,134)

3,757
21,079 28,569 75,753 (2,564)

PROSPECTIVE STATEMENT OF CHANGES IN EQUITY For the Year ended 30 June Annual Plan 2013/14 $000s
Equity at 1 July Revaluation gains / losses taken to equity Increase / (decrease) in special funds & reserves Net income / (expense) recognised directly in equity Net surplus / (deficit) Total comprehensive income Equity at the end of the year Equity at the end of the year is comprised of the following: Ratepayers equity Special funds and reserves Asset revaluation reserves Equity at the end of the year 321,280 14,407 848,713 1,184,400 310,011 22,133 888,971 1,221,115 324,438 14,601 846,368 1,185,407

LTP 2014/15 $000s 1,177,982 45,697 0

45,697 (2,564) 43,133

Annual Plan 2014/15 $000s 1,143,844 45,697 0

45,697 (4,134) 41,563

1,142,660 45,349 0
45,349 (3,609) 41,740

1,184,400

1,221,115

1,185,407

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PROSPECTIVE STATEMENT OF FINANCIAL POSITION For the Year ended 30 June Annual Plan 2013/14 $000s
Total equity Total current assets Total non-current assets Total assets Total current liabilities Total non-current liabilities Total liabilities

LTP 2014/15 $000s 1,221,115 28,034 1,277,300 1,305,334 27,505 56,714

84,219

Annual Plan 2014/15 $000s 1,185,407 15,664 1,257,266 1,272,930 22,879 64,644
87,523

1,184,400 26,672 1,244,703 1,271,375 17,685 69,290

86,975

PROSPECTIVE STATEMENT OF CASHFLOWS For the Year ended 30 June Annual Plan 2013/14 $000s
Net Increase in cash from operating activities Net (decrease) in cash from investing activities Net Increase in cash from financing activities Net increase / (decrease) in cash Cash resources at the beginning of the year Cash resources at the end of the year

LTP 2014/15 $000s 16,038 (15,972)

188 254

Annual Plan 2014/15 $000s 9,816 (20,245)

9,287 (1,142)

12,946 (22,696)
9,915 165

18,983 19,148

5,309 5,563

5,216 4,074

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Rates and Rates Increases

As required by legislation, the Council has quantified its limits on rates and rate increases. The LTP 2012-22 was forecasting an average increase in rates of 2.9% based on the formula of Consumer Price Index (CPI) plus growth in the rating base. The assumptions for Year Three of the LTP 2012-22 were that CPI would be 2.4% and the growth in the rating base would be 0.5%, giving an average increase in rates of 2.9%. The Council has set its assumptions for CPI at 2% and growth in the rating base at 1.0% to arrive at a base average rate increase of 3.0%. This compares favourably with the forecast in the LTP 2012-22. The Council has recognised that the LTP 2012-22 was unable to foresee three developments that would impact on Councils ability to absorb additional cost increases for events outside the Councils control. These are explained below: TRANSMISSION GULLY HIGHWAY This has required the bringing forward of capital expenditure for the local roads at Whitby and Waitangirua to join the Transmission Gully Highway (TGH) from the amount budgeted in the LTP 2012-22 for 2016/17 to 2013/14. This expenditure is loan funded and repayments will commence in 2014/15, where in the LTP the repayments started in 2017/18. The Council consulted on the bringing forward of this expenditure during the previous Annual Plan process and formally adopted the change along with the principle that for the years prior to 2017/18, the repayments would be added to the yearly rate increase, in this instance another 0.4% to the rate increase until 2017/18 when it was originally budgeted for. This principle will be applied for any other TGH link road capital expenditure that is brought forward from 2017/18. The impact on rate increases that this movement brings about is illustrated in the table below.
2014/15 2015/16 2016/17 2017/18

thought that this approach would be cost neutral, revised indications are that the delivery of these services will add an additional 0.6% to rates. REGIONAL AMENITIES FUND Lastly, the Council has been asked to contribute $144,000 to the Regional Amenities Fund. It is proposed that the contribution be on-going and will increase to $216,000 in 2018/19. For 2014/15 this will add another 0.3% to the proposed rate increase. With the addition of these items, the proposed average rate increase is 4.3%. 2014/15 will also see an updated property revaluation (it is revised every three years). This will mean that while the proposed average increase is 4.3%, there will be fluctuations across the City due to the revaluation, making comparisons to previous years difficult.

Debt Level and Borrowing Limits

The Councils debt levels, and its ability to service this debt, remain well within the policy limits set in the LTP 2012-22. The acceleration of the capital expenditure programme relating to the building of the local roads joining the TGH has meant that the Council has also had to increase its borrowings above that set out in the LTP 2012-22. The bringing forward of this expenditure has added $6.5 million to the borrowing of the Council, the other $1.5 million has arisen from loan funding urgent building work and the increase in costs for loan funded capital expenditure work. In order to minimise the costs that this increased borrowing will place on Council, the Council is proposing to join the Local Government Funding Agency (LGFA), which will give the Council access to lower costing funding options which is expected to generate savings in the range of $250,000 to $400,000 per annum. As a requirement of accessing these funds through LGFA, the Council will be required to be jointly liable for other member councils borrowings through the LGFA. No member has defaulted on its loans, either as a member or as a borrower elsewhere, and the Council believes this to be of low risk. Refer to Appendix 6.7of the full Draft Annual Plan for more information on the LGFA.

TGH 2016/17 budget moved forward to 2013/14 TGH 2017/18 budget moved forward to 2014/15 TGH 2018/19 budget moved forward to 2015/16 Total

0.4%

(0.4%)

0.4%

2.4%

0.4%

0.4%

2.4%

(0.4%)

Asset Management Issues

In keeping with the intention of the Councils priorities in its LTP 2012-22, the Council continues to make significant investment in maintaining and improving the Citys infrastructure, easily the Councils biggest investment. The council owns approximately $900 million of infrastructure. In 2014/15 the Council is investing $15.2 million (66% of the capital expenditure budget) in transport, water supply, wastewater, wastewater treatment plant and stormwater. Of this, $4.4 million relates to the roads in Waitangirua and Whitby that link to the TGH, with the balance on asset renewals and capacity enhancements.

Table 1. Impact on rate increases arising from changes to capital expenditure for Transmission Gully Highway project

CAPACITY INFRASTRUCTURE LIMITED During 2013/14 the Council joined with Wellington City Council and Upper Hutt City Council as a shareholder in Capacity Infrastructure Ltd and for Capacity to provide regional management and delivery services for water, wastewater and stormwater services. While initially it was
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Rates Information
Rates are a property tax to fund local government activities. The amount of rates charged varies between properties because of differences in capital values, and differences in services provided for residential, rural and commercial properties. Property valuation changes, which the Council has no control over, will also affect the rates paid. Prospective financial statements for 2014/15 that detail the rate funding requirements can be found in Section 5 of the full Draft Annual Plan 2014/15 under Funding Our Work. RATES CHARGED BY GREATER WELLINGTON REGIONAL COUNCIL The property rates figures in this Annual Plan exclude the rates assessed by the Greater Wellington Regional Council, which also appear on the rates bill. See the Greater Wellington Regional Council website for information on Greater Wellingtons rates for 2014/15. IMPACT OF PROPERTY REVALUATIONS ON RATES INCREASE 2014/15 is a property revaluation year for rating purposes. This means that properties were revalued as at 1 September 2013 and the new valuations will first take effect, for rating purposes, as at 1 July 2014. Consequently, the increase in rates to individual ratepayers will be determined by the percentage change in the revaluation of their property. While the city-wide, proposed average rates increase is 4.3% across all rating categories, the impact of property revaluations will also be a major factor in the change in rates paid for each property. TABLE 2: Residential Properties Rate Increase for 2014/15
Property Value $250,000 $350,000 $450,000 $550,000 $750,000 $1,000,000 2014/15 Annual Rates $2,068 $2,446 $2,824 $3,202 $3,958 $4,903 Annual rates comprise of the following charges: Rates per week $40 $47 $54 $62 $76 $94 Water $353 $353 $353 $353 $353 $353 Sewage Disposal $353 $353 $353 $353 $353 $353 Kerbside $17 $17 $17 $17 $17 $17 General $945 $1,323 $1,701 $2,079 $2,835 $3,780 UAGC $400 $400 $400 $400 $400 $400

Property Rates for 2014/15

The tables below show an estimate of what you may expect to pay based on your revised property value. The actual rates will be set after the adoption of the final Annual Plan in June 2014. Changes to the number and value of properties in the City and any amendments made to the budget as a result of submissions to the Draft Annual Plan will affect the final rates figure. The Property Rating Categories (Residential, Rural, and Business) are based on properties of different values and are described in detail in Section 5.8 Funding Impact Statement of the full Draft Annual Plan. All amounts expressed include GST calculated on the basis of the prevailing rate at the time of supply.

Note : Figures include general and targeted rates but exclude rates assessed by Greater Wellington Regional Council (go to www.gwrc.govt.nz) for information on Greater Wellingtons proposed rates for 2014/15.

TABLE 3: Residential Properties Average Weekly Rate Increase for 2014/15

Property Value $150,001 to $250,000 $250,001 to $350,000 $350,001 to $450,000 $450,001 to $550,000 $550,001 to $750,000 $750,001 to $1,000,000 Average Weekly Rate Increase $1.97 $2.30 $2.67 $2.83 $3.14 $3.83

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TABLE 4: Rural Properties Rate Increase for 2014/15

Property Value $250,000 $450,000 $550,000 $750,000 $1,000,000 2014/15 Annual Rates $1,062 $1,591 $1,855 $2,385 $3,046 Rates per week $20 $31 $36 $46 $59 Annual rates comprise of the following charges: Water Sewage Disposal Kerbside General $662 $1,191 $1,455 $1,985 $2,646 UAGC $400 $400 $400 $400 $400

Note: Figures include Uniform Annual General Charge, exclude targeted rates such as water, sewerage and the Pauatahanui sewerage scheme, and exclude rates assessed by Greater Wellington Regional Council (go to www.gw.govt.nz) for information on Greater Wellingtons proposed rates for 2014/15.

TABLE 5. Rural Properties Average Weekly Rate Increase for 2014/15

Property Value $150,001 to $250,000 $250,001 to $350,000 $350,001 to $450,000 $450,001 to $550,000 $550,001 to $750,000 $750,001 to $1,000,000 Average Weekly Rate Increase -$0.57 $0.13 $0.18 -$0.10 -$0.01 $0.60

TABLE 6: Business Properties Rate Increase for 2014/15

Property Value $250,000 $450,000 $550,000 $750,000 $1,000,000 2014/15 Annual Rates $4,412 $7,057 $8,380 $11,025 $14,331 Rates per week $85 $136 $161 $212 $276 Annual rates comprise of the following charges: Water $353 $353 $353 $353 $353 Sewage Disposal $353 $353 $353 $353 $353 Kerbside General $3,306 $5,951 $7,274 $9,919 $13,225 UAGC $400 $400 $400 $400 $400

Note: Figures include Uniform Annual General Charge, general and targeted rates, exclude kerbside recycling and Pauatahanui Sewerage scheme targeted rate, and exclude rates assessed by Greater Wellington Regional Council (go to www.gw.govt.nz) for information on Greater Wellingtons proposed rates for 2014/15.

TABLE 7. Business Properties Average Weekly Rate Increase for 2014/15

Property Value $150,001 to $250,000 $250,001 to $350,000 $350,001 to $450,000 $450,001 to $550,000 $550,001 to $750,000 $750,001 to $1,000,000 Average Weekly Rate Increase $3.07 $4.26 $5.08 $6.58 $8.23 $11.91

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TABLE 8: Motel Properties Rate Increase for 2014/15

Property Value $250,000 $450,000 $550,000 $750,000 $1,000,000
Note:

2014/15 Annual Rates $2,745 $4,038 $4,689 $5,992 $7,621

Rates per week $53 $78 $90 $115 $147

Annual rates comprise of the following charges: Water $353 $353 $353 $353 $353 Sewage Disposal $353 $353 $353 $353 $353 Kerbside General $1,629 $2,932 $3,583 $4,886 $6,515 UAGC $400 $400 $400 $400 $400

Figures include Uniform Annual General Charge, general and targeted rates, exclude kerbside recycling targeted rate, and exclude rates assessed by Greater Wellington Regional Council (go to www.gw.govt.nz) for information on Greater Wellingtons proposed rates for 2014/15.

TABLE 9: Shopping Plaza Properties Rate Increase for 2014/15

Property Value $250,000 $450,000 $550,000 $750,000 $1,000,000
Note:

2014/15 Annual Rates $3,739 $5,845 $6,898 $9,004 $11,637

Rates per week $72 $112 $133 $173 $224

Annual rates comprise of the following charges: Water $353 $353 $353 $353 $353 Sewage Disposal $353 $353 $353 $353 $353 Kerbside General $2,633 $4,739 $5,792 $7,899 $10,531 UAGC $400 $400 $400 $400 $400

Figures include Uniform Annual General Charge, general and targeted rates, exclude kerbside recycling targeted rate and exclude rates assessed by Greater Wellington Regional Council (go to www.gw.govt.nz) for information on Greater Wellingtons proposed rates for 2014/15.

How Rates will be Spent

The pie chart below shows the portion of rate-funding that goes towards each of the Councils nine Groups of Activities in 2014/15.

Where Operating Funding Will Come From

The Council has four other sources of income in addition to property rates, as shown in the pie chart below. Non-cash items such as vested assets and asset revaluations have been excluded. Where Funding will come from 2014/15
User Charges 22% Grants & Subsidies 4% Investment Income 0% Development Contributions 0% Rates Income 74%

How Rates will be spent 2014/15

Wastewater 16% Water Services 12% Democratic Process 8% Environmental Management 3% Stormwater 5% Strategy & Planning 13% Community & Leisure 29%

Transport 10% Solid Waste Services 4%

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Operating Expenses of Council

The pie chart below shows the breakdown of operating expenses by type for 2014/15. Other costs cover items such as staff training, printing and stationery, but excluding interest on borrowings, and by themselves account for less than 2% of operating expenses each. Operating Expenses of Council 2014/15
Repairs & Maintenance 2% Purchase of Material 2% Other 4% Insurance 2% Fuel, Power & Gas 3% Interest 6%

Capital Expenditure Programme

The pie chart below shows the portion of capital expenditure that goes toward each of the Councils Groups of Activities for 2014/15.

Capital Expenditure
Landfill Management (Joint Venture) 3% Strategy & Planning 15% Stormwater 3% Wastewater 9% Water Supply 6% Transport 30%

Staff Costs 30%

Wastewater Treatment Plant (Joint Venture) 18% Organisational Performance 6%

Depreciation 26%

Consulting & Professional Fees 4% Contracted Services 21%

Democratic Process 5% Environment & Regulatory Services 0% Community & Leisure Services 5%

How You Can Have Your Say

The submission period for the Draft Annual Plan 2014/15 is 7 April 2014 to 5pm 7 May 2014. Find out more and discuss this Draft Annual Plan with the Mayor and Councillors at the Porirua Expo on Saturday 12 April between 10am to 4pm at Te Rauparaha Arena. Or come to a public meeting at 7pm on Thursday 17 April 2014 at Pataka. INFORMATION AVAILABLE Copies of all relevant documents will be available during the consultation period from: The Council website (http://www.pcc.govt.nz key word annualplan); The public libraries in Porirua City; By post via request from the Councils contact centre on (04) 237 5089; The Councils front counter (Council Administration Building, Cobham Court, Porirua). SUBMISSION CHECKLIST There is no set format that a submission must take, however you should aim to present your submission in a way that is organised and easy to read. Please note that under the Official Information Act 1982 all submissions will be made available to the public. NEXT STEPS To provide you with an opportunity to speak in support of your submission, oral presentation of submissions will be heard at Public Hearings scheduled on 19 and 20 May 2014. The Hearings will be held in the Council Chambers on level 2 at Porirua City Councils Administration Building. The Council will meet to discuss submissions and submission responses at a meeting on 4 June 2014, and is scheduled to adopt the Annual Plan 2014/15 at a meeting on 25 June 2014. These meetings are open to the public and will be held in the Council Chambers at the Porirua City Councils Administration Building. The Annual Plan 2014/15 becomes operational on 1 July 2014.

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2014/15 Draft Annual Plan Submission Form

SUBMISSION PERIOD IS: 7 APRIL 2014 TO 7 MAY 2014

Your Contact Details Mr / Mrs / Miss / Dr

(Please circle which option applies)

First Name Suburb Cell Phone

Family Name City Other

Street Address Phone (ofce hours) Email I am making this submission as an Individual
(Please circle which option applies)

On Behalf of an Organisation

Name of Organisation Number of people whose views are represented by this submission Hearings (Please circle which option applies) I would like to speak at a hearing Yes Person speaking at hearing if different Name from your contact details

No Day phone & cell phone

Note: The Council is also consulting on fees and charges for building and resource consents. A statement of proposal on the change is available for your feedback. Your Comments
(Please reference any headings & page numbers in the Draft 2014-2015 Annual Plan, or associated consultation documents, that you are referring to)

If you need more space, please attach your comments and/or additional information to this form Items I support & reasons why:

Items I oppose & reasons why:

Any other comments & suggestions about the 2014/2015 Draft Annual Plan:

ATTACHMENT Word / PDF / Hard Copy Send your Submission to Porirua City Council Post Hand Deliver C/- Draft Annual Plan Submissions C/- Draft Annual Plan Submissions Porirua City Council Ground Floor, Administration Building PCC, Cobham Court, Porirua PO Box 50218 PORIRUA 5240 or deliver to any public library in Porirua City Important Dates for Submissions Closing Date Hearing Dates Final Annual Plan Available

Email / Online submissions@pcc.govt.nz www.pcc.govt.nz

7 May 2014 19 & 20 May 2014 Early July 2014

All submissions will be acknowledged in writing: Privacy Act Notice: Submissions will form part of the Hearings Agenda and will be publicly available.