LTP 2018-2028 Prioritisation Workshop PRESENTATION TO COUNCILLORS 16 - - PowerPoint PPT Presentation

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LTP 2018-2028 Prioritisation Workshop

PRESENTATION TO COUNCILLORS 16th NOVEMBER 2017

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Strategic Priorities

• 1. Prioritisation Workshop on 9 November – key points from

Workshop

• 2. Chief Executive’s Recap
• 3. Director’s Revised Activity Summaries
• 4. CAPEX Summaries
• 5. Workshop Discussion and Rationalisation

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2018 - 2028 LONG TERM PLAN

• Councillor Strategic Direction Setting

and (February-June)

• LTP Environmental Scan and population

projections finalised (May)

• Council approved Vision, Community

Outcomes and Strategic Priorities approved (June)

• Draft Infrastructure Strategy 1st cut to

Council (July)

• Draft Business and Asset Management

Plans completed(August)

• Activity Summary presentations to

committees

• WTF LTP Early Engagement and

feedback to Councillors (September – October)LTP key dates

• Revenue and Financing Policies

workshops (October - November)

9 Councillor Project Prioritisation

16 Councillor Project Prioritisation

Development Contributions (DC) Policy Review

30 Treasury Management Update 7 Extraordinary meeting of Council for Draft Financial

Strategy update, Draft Infrastructure Strategy update and Draft Significant and Engagement Policy

14 Council approval of the Finance and Infrastructure

Strategy Fostering Maori Participation in Council Decision Making for Approval Revenue and Financing Policy Treasury Policy for approval Formal LTP Consultation Programme Proposal for approval

25 Adoption of Estimates

Future Tairāwhiti Draft Consultation Document Discussion Draft Activity Summaries for approval Significance & Engagement Policy for approval Draft Development Contributions Policy

Completed 2017 NOV 2017 DEC 2017 JAN 2017

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2018 - 2028 LONG TERM PLAN

2 Consultation Document approved 12 Formal Consultation begins

Submission analysis and staff responses prepared

13 Formal Consultation closes 14-16 LTP Hearings /

Deliberations with Council (if required) Provide draft LTP Document to the Auditors

28 Council adopts 2018-2028

LTP Adopting Report

1-13 Asset Management

and Business Plans Revised and Adopted.

FEB 2018 MAR 2018 APR 2018 MAY 2018 JUN 2018 JUL 2018

8 Provide draft Consultation

Document to the Auditors

22 Present the draft Long Term

Plan for approval Adoption of Revenue and Financing Policy and new remissions policies for consultation,

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Key points from 9 November workshop

• Central Government opportunities
• WTF
• Long Term Plan Strategic Alignment
• CE’s LTP Think-piece
• Scenario Refinement

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What we got clarity on…

• Investigate alternative CCTO arrangements
• Core asset renewals, meet statutory requirements, health & safety/risk
• Drop some levels of service to deliver on roads and three waters
• Discretion to move capital projects (Taruheru Walkway not funded)
• Drainwise – ok to spend where MAXIMUM impact could be achieved
• Prepared to revise the strategic priorities as a result of not being

achievable

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Strategic Priorities recap…

• Thrive Tairāwhiti
• Thrive Tairāwhiti
• Tairāwhiti Wai
• Early Adopters
• Intelligent infrastructure
• Intelligent investments
• Mana Tairāwhiti

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Strategic Priorities Revision?

Tairāwhiti Wai Improve the wellbeing of our waterways and coastal environments including protection of healthy soils Intelligent infrastructure Invest in existing and future core infrastructure needs, with a focus on cost efficient and effective designs Intelligent investments make sensible, long-term decisions on investments and borrowing, and always seek the best value for community money.

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Bones of a revised Financial Strategy

• Go back to basics & do the basics well – focus on core infrastructure

(legal requirements) & maintain existing levels of service (and enhance through trade-offs e.g remove non-essential assets)

• Have a manageable capital expenditure programme at an acerage
• f $30M per annum
• Keep rates & debt sensible & affordable (4.5-6% & debt 150% total

revenue)

• Reduce reliance on rates income and ensure that the user does pay

costs residing with the primary beneficiary to ensure ratepayers aren’t subsidizing private benefit (e.g roads for forestry)

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Bones of a revised Financial Strategy

• Increase grants & positive partnerships with central government and

local agencies to deliver key but not necessarily core work (e.g ECFP, 1B trees, Navigations)

• Have smart investments & delivery models that make a good level of

return (Joint ventures, Treasury Management)

• Make sure growth pays for growth as far as possible (DCs)

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Bones of a revised Financial Strategy

• Maximum shareholder benefit from the CCTO through increased

dividends and exploring other CCO delivery models

• GHL dividend of $1.8M vs $1.5M distribution
• Pamoa harvest ($3-4M) + carbon credits
• Support Initiatives to grow the rates revenue base e.g.Tairawhiti

Economic Development Action Plan (TEAP) and Maori Land Review

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The BLURPLE scenario (shades of blue & salmon)

Current legislative requirements will be met and significant risks managed. Our core-assets will have some improvements to the current under performance. While there may be decreases in some budget and some reduction in staffing levels, the overall level of service is maintained for most activities. Capital projects with opex implications will still be prioritised ($1M = $100k opex). Special enhancement projects (for example Titirangi revegetation) will be delivered if external funding is gained. Accessibility of facilities and provision of services maintained at the current levels. This scenario does not include the Taruheru Walkway or additional funding for future Navigations maintenance infrastructure (not already committed to).

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Shades of some salmon – but mostly all blue

• 5.5% rates increase
• Capital expenditure around 30M with peaks for major projects

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$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Planning and Development Environmental Services Governance and Support Recreation and Leisure Roading Solid Waste Management Flood Protection Storm water Waste water Water supply Planning and Development Environmental Services Governance and Support Recreation and Leisure Roading Solid Waste Management Flood Protection Storm water Waste water Water supply LTP Year 1 2018/19 $5.2 $9.3 $8.9 $9.6 $30.0 $3.9 $1.8 $2.8 $7.4 $5.6 Annual Plan 2017/18 $5.0 $9.0 $9.6 $9.6 $24.7 $4.0 $1.8 $2.8 $7.1 $5.2 Annual Report 2016/17 includes CAPEX $5.0 $11.3 $8.9 $11.3 $33.9 $4.1 $2.7 $2.0 $8.2 $4.9

Activity Changes $M

LTP Year 1 2018/19 Annual Plan 2017/18 Annual Report 2016/17 includes CAPEX

15 CORE AND MAJOR PROJECTS

Year One 2018/19 Current Scenario: $26.2M Core Capital $7.8M Major Projects $33.9M +$10M External funding (Major)

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Director Discussions

• The scenarios based on 5.5%
• Whats in what isn’t?
• What do you want in? What do you want out?
• CAPEX and direction on programme of works
• Possible alternative scenarios for the consultation document?
• Current 5.5% (or less)
• Alternative - If we increase by XX you receive XX

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Partnering with ECT

• What does a “Partnership” look like?
• Understanding each other drivers and bottom lines (investment

priorities/Trust Deed/community priorities)

• Common outcomes? Best for region? Tairawhiti First?
• What are Councils collective priorities – gain agreement, negotiate

and make it happen (MoU)

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Investment from ECT – on?...

• Pool
• Lawson Field
• Tairawhiti Navigations (observatory, inner harbour etc…)
• Community Facilities Strategy
• MAR (Eastland Group)?
• Waipaoa Flood Control?
• Others?

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Next Steps

• Draft key points for ECT discussion (Dep Mayor?) – seek agreement

through an MoU

• Refine budgets based on feedback – high level agreement on 14

December

• Will outline high level what you will/will not get for rates
• Key consultation points for the consultation document
• Draft Financial Strategy and Infrastructure Strategy – more work!
• Full draft estimates and rates modelling impact January for inclusion

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High Level Scenarios

Council Options Drivers/Activities Roading Salary and wages Pay back operational debt(roading, provision) Infrastructure (drainwise, wastewater compliance) Increased/Reduce levels of service 0.00% Reconciling to Base Rates of 5.5% Base Rates 7.36% Roading 3.65% 3 Waters 1.25% Salary and wages 2.00% Pay back Debt 0.46% Less reduced costs/LOS

• 1.90%

5.5%

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High Level Scenarios cont.

Priorities? Base Current Comments Partial Costs Full Costs Roading 2.50% 3.65% 70% of projected increase is covered. 100% of roading works covered. 3 Waters Compliance 1.25% 1.25% Salary and Wages 2.00% 2.20% Reduced only to 2% level. Based on $20.5m total, actuals align to 2.2%. Support Services 0.61% 0.61% Includes increases needed for Health & Safety. Pay back operational debt 0.46% 1.00% Repays operational debt over 20 years. With an additional 0.5% pay back of load in now completed within 10 years. Environmental Services and Protection 0.56% 0.56% Legislation compliance. Transformation and Relationships 0.25% 0.25% Aligning with compliance of Plan deliverables. Liveable Communities 0.39% 0.39% 8.02% 9.91%