Long Term Community Plan 2012-2022 - Hurunui District Council

www.hurunui.govt.nz
Service
Relevant
Community
Outcomes
Relevant Issues &
Constraints
Who benefits, and over
what period
Future Funding & Sustainability
Roads and
Footpaths
The Council’s funding
of Roading services
contributes to the
Hurunui district being:
A place with essential
infrastructure:
- We have a strong
emphasis on service
delivery across
all infrastructure
including roading,
water (for drinking
and development),
waste water,
stormwater and solid
waste
This is a significant service in
terms of expenditure, so there
are benefits for accountability
and transparency from funding it
separately from other services.
Funding this service separately
adds no significant extra cost.
We have an issue relating to
maintaining our roading network
at the levels of service shown
through our Asset Management
Plans due to NZTA reducing
funding. Whereas we expect to
manage for the next three years,
the problem will start to appear
from 2015 when our income
will not match our maintenance
programme. We have built
inflation into the NZTA subsidy
but unsure at this stage whether
that will actually be the case.
Is it fair that ratepayers on state
highways should pay for local
roads?
Yes, because they have access
and the option of using all
the roads in the district and
throughout NZ.
Is it fair that one ratepayer on
a road should have their road
(which is essentially a drive)
maintained?
Yes, because it is a network
and we all get the potential
to use any part of the roading
network. A road may well lead
to a recreational resource. Such
roads provide public access as
well providing benefit to trades
people requiring access to farms
for their business.
100% benefit to road users,
but all people in the District
will use the roads at some
stage, and it is generally not
practical to distinguish between
different levels of use. Optional
enhancements to road surfaces
will require contributions from
affected property owners
(see the Road Seal Extensions
Policy), with the balance being
met by the Council. There will
be some component of benefit
to visitors to the District, and
in recognition of this, subsidies
from the New Zealand Land
Transport Agency will be
employed where possible.
Benefits from roading may
generally be tagged to the area
of property owned, and hence
to Capital Value.
Benefits from capital
expenditure occur for the
lifetime of the road (15 to 30
years). However the roads are
maintained in perpetuity so
the roading should be funded
by loan for its life without
maintenance. Benefits from
operational expenditure accrue
at the time the expenditure was
made.
Operational Costs:
• For the Council contribution, 100%
District Rate for operations, roads
and bridges to be known as the
Roading Rate.
Caital Costs:
• Capital improvements above
$100,000 may be funded by reserves
or loans pursuant to the Council’s
Internal Financing Policy. Other
Capital Expenditure to be funded as
operational.
• If a community wishes the Council
to carry out resealing work that
does not qualify for a NZTA Subsidy,
then there is a mechanism through
the Road Seal Extension policy
which allows for the ratepayers
to meet 50% of the costs and the
Council contributing the remaining
50% from the General rate.
• If any of the Capital Expenditure
caters for future growth, then that
portion of the expenditure that
relates to growth may be funded
from future users via Financial
Contributions.
Footpaths
• Operational and Capital Costs:
• Township maintenance100% local
amenity rate on ward or community
rating area.
Sustainability:
• The ongoing maintenance and
building of new roads will continue
to be demanding financially,
to individual ratepayers and
government subsidies. However, the
negative effects on the economic
wellbeing of those who pay for
roads will be offset by future gains in
social and economic wellbeing.
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