City Plan: North Shore City Council approves Draft City Plan

Friday, March 06, 2009

North Shore City Council has today approved the 15 year Draft City Plan 2009-2024 for consultation North Shore is the first local authority in New Zealand to prepare a 15 year plan as opposed to 10 year plans being the standard practice.

The draft plan has a lower rates increase than forecast in the previous City Plan 2006-2016, and has received an unqualified audit opinion. Changes have also been made to the new capital programme to maintain steady progress for the city during tough economic times.

Mayor Andrew Williams says the council has done a good job to deliver a comprehensive plan that provides for community needs and which delivers an extensive capital expenditure programme for required infrastructure of a growing city.

“Without the changes this council has made to the draft plan, including careful prioritisation of projects, there would have been much higher rates increases to fund new assets needed by our expanding community,” Mayor Williams says.

The council is proposing an average rates increase of 5.9 per cent for the next financial year (2009/10). In addition, the new Auckland Regional Amenities levy imposed by central government will add an additional 0.5 per cent to the proposed rates increase bringing the total to 6.4 per cent.

Rates for an average value residential property will rise by $116 from $1,813 in 2008/09 to $1,929 in 2009/10.

An average rates rise of 5.4 per cent is proposed over the next 15 years which is below previous forecasts of 8 per cent per annum.

Mayor Williams says cutting rates even further would have resulted in a much reduced capital programme leading to fewer much needed improvements.

"In these difficult economic times we have to maintain a carefully balanced approach as the effects impact on North Shore residents and ratepayers in a great many ways, including those employed by our contractors and service providers,” Mayor Williams says.

The council is planning to invest $1.7 billion in new capital projects and a further $900 million on renewing infrastructure over the next 15 years.

Examples of the major programmes included in these budgets are:
• Transport $1,128m, which includes major road improvements, public transport initiatives, footpath and cycleway improvements
• Wastewater $575m, which includes the completion of the new $117m Rosedale Treatment Plant tunnel and outfall in 2010, and the Project CARE programme by 2021
• Stormwater $261m, to further reduce flooding and address ongoing stormwater quality issues
• Parks, sports fields and beaches $278m, which includes $104m on land for parks
• Water supply $179m, ensuring a constant supply for ratepayers and fire fighting
• Community Services $105m, which includes a new library and aquatic facility in the growing Albany area.

In the draft plan, debt levels are forecast to rise from $347m to a peak of $671m in 2019/20 before falling to $336m in 2023/24. These projected debt levels are within the limits set by the council’s Treasury Management Policy. While debt comes close to the limit of the maximum income to debt ratio during early years of the plan, it reaches a more favourable level in later years.

The current economic climate is having an impact on ratepayers and business alike. For instance, estimated income from Development Contributions is forecast to drop by $80m over a seven year period from 2009/10 to 2015/16, which in turn has an impact on council’s forward programmes.

Mayor Williams says that the 15 year city plan will now go out for public consultation and the council will be asking North Shore residents and ratepayers to give feedback on the draft plan during the five week submission period from March 23 to April 24.

“We are asking our North Shore people for their response as to whether we have got the right balance between the planned capital programme and the funding required from debt and rates over the next 15 years, and seeking feedback on important initiatives such as the revised Development Contributions Policy,” Mayor Williams says

The draft plan and feedback form will be available online at www.northshorecity.govt.nz/cityplan, from libraries and area offices or by calling Actionline on 486 8600 from March 23.

ENDS

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