Review the level of rates increase

The COVID-19 pandemic has had a profound impact on our lives. The Council’s initial focus has been on the welfare of its staff and on the well-being of those in the community in need of our support.

We have also turned our minds to the broader economic impact of the pandemic. A first step in this plan is to review the rates increase for the 2020/21 financial year starting on 1 July 2020. We had originally proposed an average 3.5% increase in line with our Long-Term Plan 2018-2028, but now believe that we should consider options to reduce this to a lower level. The planned rates increase will generate increased rates income of $2.8 million and the details of the impact of the rates increase for typical properties is set out in table one and table two.

What’s proposed?

Option 1: Proceed with proposed 3.5% average rates increase
(This is the basis on which this document was initially prepared)

The advantage of this option is that it will provide full funding for the Council’s plans, without the need to adjust budgets and spending plans. The disadvantage is that all ratepayers will be required to pay more at a time when many are under financial pressure.

Option 2: Seek to reduce the initially planned 3.5% average rates increase by identifying savings

The advantage of this option is that it will result in a lower rates increase than initially planned and would not require catch-up rates increases in the future. The disadvantage is that there is still likely to be a rates increase required as it will be difficult to reduce costs without having an impact on services and programmes. The level of reduction from 3.5% will depend on the Chief Executive identifying savings that reduce costs without impacting on the level of service to be provided to the community.

Option 3: No increase. Hold the 2020/21 rates at the same level as the 2019/20 rates

The advantage of this is that ratepayers will not have a rates increase from 1 July 2020. The disadvantage is that rates revenue in 2020/21 will be approximately $2.8 million lower than if we proceeded with the initially planned increases. The increases were particularly to help fund water supply improvements as well as the ongoing programme of roading and other improvements around the district, including the redevelopment of Rolleston Town Centre. This means that there may be a need for catch-up rates increases spread over future years to ensure these programmes are not affected.

Your say: let us know your views on the three options for rates increases in 2020/21.

Note: Rates assistance

The Council is putting in place arrangements to help ratepayers that may have difficulty paying rates such as by reducing penalties and allowing longer to pay. See the Council website for more information or call us on 0800 SELWYN (735 996).

Taking time to get the right solution

In the Long-Term Plan 2018–2028 we proposed developing three new community centres including one in Prebbleton.

Since that time we have carried out initial consultation with the Prebbleton community. Although there’s strong support for a new facility, there’s uncertainty around the best location and type of facility it should be. Taking more time to work with the community on planning would help us find the best long-term outcome.

What’s proposed?

Option 1: Our preferred option

Defer the project for more detailed consideration in the Long-Term Plan 2021–2031

We’re now proposing to defer this project for a few years and move the budget ($6 million) from 2020/21 into the LTP 2021–2031, to allow for further planning and consultation with the community.

This option will allow more time to consider the range of community views on the type of facility required, and determine the best location for a centre that will meet long-term needs.

Impact on rates: This project is mainly funded from a mix of borrowing (funded by the community centre targeted rate), reserve development contributions and a land sale. This proposed change, along with other factors such as lower interest rates and the timing of the opening of the indoor courts facility, means that we will not need to increase the community centres targeted rate from 1 July 2020. The targeted rate will remain at $175 compared with the forecast of $185 in the Long-Term Plan.

What are the other options?

Option 2: Proceed with the project this year, as proposed in the Long-Term Plan 2018–2028.

This is no longer a viable option. Based on community consultation it is not considered feasible to proceed with the project in the 2020/21 year. The range of community views on the location and type of community remains wide, and to proceed now would result in a facility that does not meet community needs.

Impact on rates: If it were feasible, this option would mean that the Council would increase the community centre targeted rate from $175 to $180.

Your say: Let us know your views on the proposal to defer this project while further planning and consultation is carried out. See the question on the online feedback form or submission form.

Reviewing wider community needs

In the Long-Term Plan 2018–2028 we also proposed developing a new community centre at Leeston, which currently does not have a purpose-built community facility. This was scheduled for 2025/26. In 2019, an assessment of the current Leeston Library building, which also houses the medical centre, showed it was earthquake- prone. While the building has been made safe for continued use in the interim, in the long term the building will have to be significantly upgraded or replaced.

What’s proposed?

Option 1: Our preferred option

Review wider community needs for facilities in Leeston

The Council now wants to review the original community centre proposals to take account of local needs for library, medical and other facilities. This would also involve deferring a proposed extension to Leeston Park, while the wider community needs are explored.

Reviewing the project will allow more opportunity to broaden the scope of the project, consider the range of community views on the type of facility required, and determine the best location for a centre.

Impact on rates: This option would not have any impact on rates in the current year as the facility was not scheduled until 2025/26. The rates impact from any new proposal would be subject to consultation through a future Long-Term Plan or Annual Plan.

What are the other options?

Option 2: Proceed with the project, as proposed in the LTP 2018–2028, in the 2025/26 year

Outcomes: The facility would not meet community expectations or Council requirements and would likely result in higher long-term costs, arising from the repair or replacement of the existing library building.

Impact on rates: This option would not have any impact on rates from 1 July 2020 as the facility would not be constructed until 2025/26.

Your say: Let us know your views on the proposal to review and take a wider approach to the Leeston community facility project. See the question on the online feedback form or submission form.

The Council provides high quality drinking water to more than 80% of the district’s population, through 30 water schemes, supplying nearly 20,000 households.

Since 2015, a standard district-wide rating system has been in place for all Selwyn properties connected to a Council water supply. Charges include a combination of a fixed base rate (through a targeted rate) and a variable amount based on the amount of water used (volumetric charge) as measured by water meter.

In Selwyn, for the majority of households, the current water rate includes a fixed charge of $244 a year, plus an additional volumetric charge of 48 cents per cubic metre of water (1,000 litres) – based on a household’s water meter reading.

We now need to review these changes, so that we are making adequate provision for future growth and security in our water supply infrastructure network, to encourage water conservation, and to provide for any impact from the Government’s Three Waters review.

What’s proposed?

Option 1: Our preferred option

Increase water supply charges to provide for quality improvements and demand management

For households connected to a Council water supply, we’re proposing to increase the annual Water Supply Targeted Rate from $244 to $264. At the same time we propose to increase the variable volumetric based on the amount of water used, from 48c to 52c per cubic metre for metered supplies, and from $175 to $190 per water unit for restricted supplies.

This is an 8% increase compared with the planned 4% increase which was indicated in the Long-Term Plan 2018-2028.

The increase will help the Council to keep pace with increasing demand for water supply quality upgrades, so that we can maintain the continued high level of service for our growing communities. A number of reticulation and scheme capacity upgrades are planned this coming year.

The change will also support the need for continued upgrading of water supplies to provide a higher level of treatment and redundancy.

This is particularly important as it is predicted that the security and quality of groundwater will decline over the next 10 years, while at the same time a higher level of service is expected.

Increasing the volumetric charging will help with water demand management, providing added incentive for households to use water wisely, so that those who use less water pay less. This will also reduce the need for expensive capacity upgrades.

What are the other options?

Option 2:

Maintain the 4% increase originally indicated in the Long-Term Plan 2018-2028:

• Water Supply Targeted Rate increases from $244 to $254
• Volumetric charge increase from 48c to 50c per cubic metre.
• Per water unit rate for restricted supplies increases from $175 to $183.

This level of increase would mean that greater increases would likely be required in future years. It would also have a reduced impact on water demand management measures, as the effectiveness of volumetric charging on water use would be lessened.

Option 3:

Maintain the level of fixed charge at the current level

• Water Supply Targeted Rate remains at $244

Adopt a higher level of increase for the variable charge (volumetric, based on water use)

• Volumetric charge increases from 48c to 58c per cubic metre.
• Per water unit rate for restricted supplies increases from $175 to $212.

This option would have a greater impact on water demand management measures, as the effectiveness of volumetric charging on water use would be increased, encouraging households to use water wisely.

The impact of the preferred option on different ratepayers, depending on their water use, is summarised in the table below.

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About water charges

All councils in New Zealand rate for water supply. Water rates help councils pay for the ongoing costs of operating the water supply, and provide funds for maintaining and renewing the water supply infrastructure so that it continues to operate effectively. Note – these are not charges for water itself – water is free. Water supply charges cover the costs involved in sourcing and supplying water, including water treatment, renewals and upgrades, and compliance.

Some councils charge households a fixed water rate, some charge a rate based on a property’s capital value, some charge a variable amount based on the amount of water used (volumetric charging), and many councils use a combination of these methods.

In Selwyn, properties on Council supplies pay a combination of a base rate (through a targeted water rate) and a variable amount based on the amount of water used (volumetric charge). Water meters help to reduce water consumption as they link water use to charging – so people who use more water pay more in charges, while properties with lower water use benefit from lower charges.

Water charges in Selwyn compare favourably with those in other parts of New Zealand – well below the average for medium- size councils. Our volumetric charge (currently 48c per m3) is one of the lowest in the country.

For more information on water meters and charging, see www.selwyn.govt.nz/watermetering

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Your say: Let us know your views on the proposal to increase water charges to provide for quality improvement and water demand management. See the question on the online feedback form or submission form.

Planning and building a new wastewater system

Over the past three years a joint working party representing the Council, Malvern Community Board, Darfield and Kirwee township committees, Canterbury District Health Board and Environment Canterbury has been considering options for the possible establishment of a wastewater scheme for Darfield and Kirwee, which do not currently have a reticulated wastewater system.

A business case assessment, which included public consultation, indicated that while a full township wastewater scheme was not warranted, there was evidence to support a scheme for central Darfield and for any new development within the township. There was feedback from the business community of the potential benefits for growth and for reducing onsite treatment costs. It would also allow smaller houses to be provided in Darfield to provide for our ageing population.

The Council has endorsed the business case recommendation, to progress further planning and consultation for a reticulated scheme for central Darfield and for new developments. The Council also confirmed it will continue to seek cost-effective and environmentally sound solutions for both Darfield and Kirwee.

What’s proposed?

Seeking community feedback on proposals for a reticulated wastewater scheme in central Darfield

We now want to find out more about the community’s views on the proposal to develop a reticulated wastewater scheme for central Darfield, and in particular their preferred method to pay for the scheme, for those who connect.

Any proposal to include a reticulated scheme in the Council’s budget would then be subject to full consultation through the Long-Term Plan 2021-2031, or through specific consultation on the project.

Through the business case process, a range of technical options have been identified for how the wastewater should be treated, where a treatment plant might be located, how the reticulation system would work, and disposal methods.

More work is still to be done on these options, to identify the most appropriate solutions, and we’ll consult further with the community on these through the LTP next year.

What are the options?

There are a range of funding options to pay for the initial construction of the scheme:

• Local loan rate and/or lump sum payments
• From existing property owners, contributions from future land developers, and rates paid by the wider Selwyn District
• Other grants or subsidies
• Other options such as a loan held against the future sale of a property

The funding will depend on a number of factors including the design of the scheme and an assessment of who benefits. Consumers would benefit from connection to a modern wastewater scheme, which would eliminate the need to upgrade current septic tank systems. There would also be longer- term environmental and public health risk benefits. A reticulated scheme would reduce the risk to business owners who rely on their wastewater system to function, and would also allow developers of new subdivisions to provide a higher standard of treatment.

Operating costs would be funded through annual rates.

It’s too early to know the likely costs of a future scheme, as this would depend on the technical details. However a 2017 study identified that the cost per household could be in the vicinity of $20,000 to $36,000 depending on specifics of the scheme configuration.

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Approximate area to be included in any proposed Central Darfield Scheme. Note: Scheme will also be extended to include future new subdivisions.

Your say: Let us know your views on the proposal to proceed with further consultation, planning and design for a reticulated wastewater scheme for central Darfield, including options for paying for the scheme. See the question on the online feedback form or submission form.

Proposed amendments to the Development Contributions Policy

Under the Local Government Act 2002, local authorities may adopt a Development Contributions Policy to help fund the cost of providing additional community facilities due to growth. Selwyn District Council has had such a policy in place since the early 2000s. The Act requires local authorities to review their policies every three years and we do this in line with the Long-Term Plan cycle, however the Act also allows local authorities to amend their policy at any time, subject to consultation and the Council is proposing three specific changes to development contributions that will apply to resource and building consent applications.

What’s proposed?

Seeking community feedback on proposals for amendments to the Development Contributions Policy

Option 1: Our preferred option

We propose to make three changes in relation to the Development Contributions Policy.

Not making an inflationary increase in development contributions from 1 July 2020

The Development Contributions Policy allows for annual inflationary adjustments to the development contributions based on the Producer Price Index for Outputs for Construction. Currently, this index is 3.2% (December 2019) and therefore under the Development Contributions Policy all development contributions would be increased by 3.2% from 1 July 2020.

The aim of the inflationary increase is to be fair to developers over the three year review cycle for the Development Contributions Policy, so that over the three years all developers pay an equal amount in relative terms. However, since the development contributions were set two years ago interest rates have fallen reducing costs and this indicates no need for inflationary increases from 1 July 2020.

Introducing a new specific development contribution for a block of land adjacent to Broadlands Drive, Rolleston

In 2009/10 the Council constructed the portion of Broadlands Drive between Goulds Road and Lowes Road in Rolleston. The road services the land on either side of the road, including Clearview School.

To date, the benefit to the balance of the land adjoining the road has not been funded as the land has not been developed. It is appropriate to charge a development contribution on this land as the road means that network infrastructure capacity has been provided for the land so that it can be developed. The proposed development contribution will be $365,500 (plus GST) for the 2.8229 hectare block of land identified as Section 2 on Title Plan SO 494531.

Introducing a new development contribution for water in West Melton

Capital expenditure has been incurred to connect the Edendale water scheme to the West Melton water scheme. This will provide benefits to existing ratepayers and will also provide additional network infrastructure capacity for West Melton. This capacity will allow further development in West Melton and in line with the Council’s Revenue and Financing Policy, the growth component of capital expenditure should be funded from development contributions. Total expenditure is $1.01 million and the growth component to be recovered through the proposed Development Contribution is 12% of the total. The expenditure provides capacity for 20 lots. The proposed new development contribution will be applied to new development in West Melton. The development contribution is proposed to be $6,246 (plus GST).

What are the other options?

Option 2 – don’t make the proposed changes to the Development Contributions Policy

The benefit of not making any changes to the Development Contributions Policy is that it provides certainty for land developers for the time between the usual three year review periods.

The disadvantage in relation to increasing the development contributions for inflation is that developers may feel disadvantaged if development contributions are increased for a period and then at a later date they are reduced.

The disadvantage of not introducing the new development contributions for the block of land adjoining Broadlands Drive and for water in West Melton is that the costs will not be recovered and will fall on ratepayers.

Your say: Let us know your views on the proposal to make three changes in relation to the Development Contributions Policy. See the question on the online feedback form or submission form.

Our Long-Term Plan 2018-2028 set out a busy programme of work through to 2028 – and we’re making good progress on our key projects.

Te Ara Ātea and Rolleston town centre

Construction is now well under way on Te Ara Ātea – the new library and community facility in Rolleston. Te Ara Ātea is a landmark project in the new town centre, which will include a town square and spaces for community gatherings, events and recreation, and a pedestrian promenade, as well as retail, hospitality and commercial development. Te Ara Ātea and the initial town square and reserve projects are expected to be completed in 2021. A number of roading projects critical to the town centre development are also in progress during 2020.

Planning for the next phase of the development, the new commercial, retail, hospitality and entertainment areas that surround Te Ara Ātea and the town square, is well under way. This work will continue over the coming year, so that we are well paced to proceed with this project once the initial economic shock caused by the COVID-19 pandemic subsides. Further consultation on the commercial development will be undertaken before the project proceeds.

Selwyn indoor courts complex at Foster Park

In late 2019 work started on the new indoor courts complex at Foster Park. This facility is expected to be ready for use in 2021 and will assist in meeting the rapidly growing need for indoor sports facilities in Selwyn. It includes eight courts, multi-use space, an indoor walking track, changing rooms, administration areas and public toilets servicing the Foster Park fields.

Selwyn Aquatic Centre extension

Users of the Aquatic Centre can look forward to significantly increased capacity when the new extension opens to the public. The new 10-lane, 25-metre pool currently in construction will more than double the current lane capacity and accommodate increasing demand from aquafitness, casual swimming, deep water and other activities.

Selwyn Health Hub

Initial groundworks began in early 2020 for the new Health Hub, located opposite the Council offices in Rolleston. The Council, the Canterbury District Health Board and Pacific Radiology have agreed plans to build and fit out the hub, which will provide space for health providers and related services to locate in Selwyn, offering improved access to health services for the growing community.

District and local projects planned in 2020/21

We have a busy work programme ahead in 2020/21 as we continue to invest in the services, facilities and infrastructure that our growing communities need. Here’s a summary of some of the significant district projects that are already scheduled in our work programme for the coming year.

Township maintenance contracts

The Council has made provision for an additional $263,000 in township maintenance budgets for the 2020/21 year, bringing the total budget to $751,000. This covers a range of maintenance elements including tree maintenance, garden mulch, planting replacement, playground undersurface and footpath lighting. The increase reflects township growth with the number of new reserves being vested in the Council.

Transportation

Subsidised maintenance and renewals

Funding provided by the NZ Transport Agency through the National Land Transport Plan (NLTP) has resulted in Selwyn’s subsidised maintenance and renewals program increasing by 25% from $32 million to $40 million over three years. This will assist in meeting the increasing maintenance requirements on the transportation network arising from sustained growth in population and traffic volumes. Pressure on the roading programme may require us to review funding in the future, including the level of rate contribution.

Solid Waste

Reconnect project – Pines Resource Recovery Park

Work has begun on this staged project to expand and improve facilities at the district’s primary resource recovery park. Work planned in 2020/21 includes initial work on the development of a reuse shop, salvage material yard and education centre.

Structure plans

Funding has been set aside in the coming year for reviews of the Rolleston, Lincoln and Prebbleton structure plans, and potentially development of a structure plan for West Melton. The Council will also start work on Township Structure Plans for Darfield and Leeston, as required by the Malvern and Ellesmere Area Plans. These plans are important in providing for future growth of these townships.

Water supply

Water supply reticulation and scheme capacity upgrades and renewals are planned in the coming year for Darfield, Hororata-Acheron, Kirwee, Leeston, Lincoln, Prebbleton and Rolleston.

Water treatment upgrades continue this year with the expectation that all water supplies, regardless of groundwater security status, will have UV treatment and provision for emergency chlorination.

Stormwater

Leeston flood bypass

Work will commence this autumn on the Stage 3 Volkman Road Drain upgrade, while Stage 4 is expected to proceed from next spring.

Hororata stormwater projects

Hororata township has been subject to the effects of a number of rainstorm events over recent years. We have an agreed work plan to improve stormwater management in the township. This will follow on from recent work including clearance on the Downs Road drain, improving the flow in Cordy’s stream and reducing flow impediments in the Hororata River.

Wastewater

Major projects planned in the coming year include the construction of two additional solar drying hall lanes at the Pines Wastewater Treatment Plant. This is to cater for continuing population growth in our eastern urban centres, and will effectively double the capacity of the solar drying process.

In 2020/21 we also expect to commence design and construction of an additional clarifier and to upgrade the current sludge digester at the Pines plant.

Reticulation upgrades will be undertaken across several townships in the Eastern Selwyn and Ellesmere wastewater areas. Upgrading of the Castle Hill and Lincoln oxidation ponds are also scheduled in this coming year.

District Plan Review

The review of our district planning “rule book” reaches a key milestone in the coming months. Following initial consultation in 2018, the Council has undertaken widespread engagement with landowners and stakeholders on draft rules and policies. A draft Proposed Plan is nearing completion and will be ready for formal notification and submissions in mid-2020. Following those stages of the process, hearings are scheduled for around November 2020. It’s expected that the Proposed District Plan will be fully in place, subject to any Environment Court appeals, by mid-2022.

Anyone wanting to have a further say on the future District Plan and to see the detailed draft provisions will have the opportunity when the plan is notified for formal public consultation later this year.

Following is a selection of new, updated and significant projects in each ward, planned for 2020/21.

Ellesmere Ward

• Leeston Park – installation of new cricket nets ($37,000)
• Southbridge – Southbridge pool painting and sealing ($5,000)
• Southbridge Hall – replacement of windows ($200,000)
• Southbridge Hall – entrance pavement safety improvements ($35,000 brought forward from 2022/23)
• Lakeside Hall - car park lighting ($8,200)
• Development of new neighbourhood reserve in Southbridge ($88,655) Wastewater pipeline renewals ($1 million)

Malvern Ward

• Hororata, Blackberry Patch house – roof replacement ($50,000 brought forward from 2027/28)
• Darfield Library – roof replacement ($46,600 brought forward from 2025/26)
• Springfield Pit Reserve – continued development ($20,000) to continue momentum on this community-led project
• Lake Coleridge – playground equipment renewal ($61,000 brought forward from 2022–26)
• Castle Hill – additional budget for extension to Castle Hill Community centre ($100,000)
• Hororata Reserve – upgrade public toilets ($183,690 brought forward from 2023/24 and part funded from the Government’s Tourism Infrastructure Fund)
• Rewi Alley car park resurfacing ($5,000 brought forward from 2022/23) Darfield Community Centre – entrance upgrade ($52,839)
• Castle Hill Wastewater Pond upgrade

Selwyn Central Ward

• Brookside Park – installation of new cricket nets ($40,000)
• West Melton – Retford Common reserve development ($100,000 to undertake development of this reserve – funded from reserve development contributions)
• Foster Park – internal roadways for emergency access to indoor courts ($433,280 brought forward 2021/22 and 2022/23)
• Development of new neighbourhood reserves in Rolleston ($155,064) Rolleston and Lincoln water capacity upgrades ($920,000)

Springs Ward

• First stage of development at new Prebbleton sports park in Birches Road ($2.68 Million)
• Shands Road Cemetery roadway extension ($104,448) Upgrade Liffey Domain public toilet in Lincoln ($317,034)
• Renew lighting at the tennis courts at Broadfield Reserve ($29,326)
• Renewal of gazebo at Springston Cemetery ($8,000 brought forward from 2022/23) Water renewals ($370,000)
• Wastewater upgrades and renewals ($646,000)

Changes to fees and charges and refuse rates

Chargeable costs for Environmental and Regulatory services

Some changes and additions to fees and charges are proposed. A schedule of the proposed changes is published in the Draft Annual Plan as part of the supporting information – see the ‘Supporting Information’ link on this site.

Dog registration

• Registration fee for first/second dog – increase from $30 to $35 per dog.

Solid Waste

Some changes are proposed to charges for refuse and recycling, and for waste disposal.

• Recycling targeted rate – increase from $80 to $89 as a result of increased recycling processing costs due to the international recycling situation.
• Organic wheelie bin – decrease from $210 to $206, reflecting improved operational costs.
• Refuse 240-litre wheelie bin – increase from $407 to $415
• Refuse 80-litre wheelie bin – increase from $136.40 to $139
• Pines Resource Recovery Park general waste disposal fees – increase from $242 to $257 per tonne. Reflecting operational, landfill disposal fee and transport increases.

Trade Waste Bylaw

The Council is introducing a new Trade Waste Uniform Annual Charge under its Trade Waste Bylaw 2016. The charge will apply to Permitted Dischargers and cover the administration costs relating to the Trade Waste consenting process. The charge will be set at $160 (including GST) per year. Operating costs for the wastewater service provided to Permitted Dischargers will continue to be recovered through the rates assessed for each property.