CLOSED: Consultation has concluded. Please see key dates within the timeline for next steps.
The current picture
Maintaining our roads is one of the top issues in our District and is the biggest area of spend for us annually.
In fact, you’ve told us that your key concerns are making sure our roads and footpaths remain well-maintained and safe.
However, over the past three years, there have been significant cost increases. According to Local Government New Zealand, materials to build and maintain our roads are around 27% more expensive than three years ago.
Over the past three years, weContinue reading
CLOSED: Consultation has concluded. Please see key dates within the timeline for next steps.
The current picture
Maintaining our roads is one of the top issues in our District and is the biggest area of spend for us annually.
In fact, you’ve told us that your key concerns are making sure our roads and footpaths remain well-maintained and safe.
However, over the past three years, there have been significant cost increases. According to Local Government New Zealand, materials to build and maintain our roads are around 27% more expensive than three years ago.
Over the past three years, we have undertaken significant investment in our walkways and cycleways network, however, the new government has signalled it will spend more on road maintenance and less on walkways and cycleways, so we also need to factor this in.
The changing landscape
We want to reduce the financial impact on you, but to achieve this something must give.
We’ve taken a good, hard look at the figures and if we reduce spend, maximise central government funding where possible and prioritise getting as much value from our roading network as we can, we think this can work.
However, this means we might have to wait longer for some planned walkways, cycleways, gravel road seal extensions, public transport infrastructure and minor road improvements.
Framing the future
We still want to carry out these projects for our communities but we’re proposing we take a little longer to get everything done.
We know investment needs to be made and we’re using loans over the next three years to spread the cost.
We have looked at where we are less likely to received New Zealand Transport Agency Waka Kotahi subsidies and where we could pause from upgrades for a year, use existing reserves or reduce investment and slow the timing of delivery.
We think our preferred option strikes a balance of moving forward and managing the cost to our communities without compromising on safety.
There are two options:
1. Our preferred option - Spend less on specific roading and walkway/cycleway projects to reduce the impact on rates - 13.6% rate increase in 2024/25 (Year One).
- Impact on rates: 13.6% rates increase in 2024/25 (Year One).
- Impact on debt: No impact on debt levels over 10 years.
- Impact on levels of service: Despite changes in project schedules, efforts are made to sustain the existing levels of service. However, due to these project timing adjustments, the delivery on some agreed increases in levels of service are delayed compared to previous plans (e.g. A lower distance of gravel roads will be sealed each year).
2. Spend more on specific roading and walkway/cycleway project budgets (in line with Long Term Plan 2021-31 budgets). This equates to an average increase per property of $79.62 in Year One (2024/25). This is in addition to the proposed 13.6% rates increase.
- Impact on rates: An average increase per property of $79.62 in Year One (2024/25). This is in addition to the proposed 13.6% rates increase.
- Impact on debt: An increase of $7.79m over 10 years.
- Impact on levels of service: No impact on levels of service.
What are the projects we're talking about?
Project description | Proposed change |
Rural road (minor upgrades of roading) | Reduce Year One (2024/25) budget to $0 |
Waihī Beach Community Roading Funding | Reduce Year One (2024/25) budget to $0 and make use of existing reserve funds. Revert to current funding arrangements from Year Two (2025/26) onwards. |
Katikati Community Roading Funding |
Ōmokoroa Community Roading funding |
Te Puke Community Roading Funding |
Maketu Community Roading Funding |
Walking and Cycling | Reduce the proposed budget from $1.5m to $500,000 for Years 2025 to 2034. |
Public Transport Infrastructure such as bus shelters and bus bays | Reduce the proposed budget for Year One 2024/25 to $0. Revert to current funding arrangements from Year Two (2025/26) onwards $109,000. |
Seal Extension – sealing of gravel roads | Reduce the proposed budget from $2m to $1.5m for Years 2025 to 2034. |
