Main outcomes of Long-Term Plan 2024-34 deliberations
Published on 09 July 2024
Our Long-Term Plan 2024-34 included a large number of issues to be consulted on and decisions to be made, which required many days of deliberations from our elected members in the Council Chamber. The decisions below do not encompass every decision made. However, they include many of the key questions we asked our community during consultation and key themes we heard in submissions.
From 29 to 31 May, elected members made significant changes to our proposed long-term plan, based on community feedback. The minutes are available on our Council meetings pages and the deliberations can be viewed on our YouTube channel
The decisions have now been incorporated into our budgets and were officially adopted on 26 June 2024. The changes reduced the total rates increase from 11.3% to 10.1% in Year 1 (1 July 2024 to 30 June 2025).
Rates review
Support for a new rating system
Elected members voted to change to a new rating system where 50% of valuation-based rates will be determined based on land value, along with a targeted rate of 50% based on capital value. This will be phased in, in 3 equal stages over 3 years.
This is slightly different to the option we originally proposed, which was 70% land value and 30% capital, and which was going to come into effect immediately.
A change in rating system does not impact how much total rates council collects, but rather it changes what proportion different ratepayers pay.
Rural rates discount to reduce, but not as much as proposed during consultation
Rural ratepayers currently don’t pay as much as residential ratepayers, to reflect that they don’t get some of the same services – for example, footpaths or streetlights. Previously, there was a 37% discount to the general rate for these ratepayers. During consultation we proposed the discount should be lowered to 17%. Instead, elected members voted to reduce the discount to 30% in Year 1 and 25% in Year 2 (1 July 2025 to 30 June 2026).
New and upgraded community facilities
Changes made to upgrades for Central Energy Trust Arena
During consultation we proposed demolishing the Barber and Bell Halls, which need seismic upgrades, and replacing these with a new facility as well as building new turfs, changing blocks and bathrooms. We proposed completing a new artificial turf first, with work starting later this year and into next year. The work around the other turfs would occur in Years 2, 3, 5 and 6. Replacing Arena 5 with a new building was proposed for Years 2, 4, and 5.
Instead, we will continue to maintain Barber and Bell Halls with appropriate maintenance and at the same time construct a new Arena 5 Indoor facility over the next 3 years. This has a cost of $17M. The outer fields development and other proposed projects will be deferred and reconsidered in the next long-term plan in 3 years.
Changes to proposals for community libraries/hubs
We had proposed to spend $30.5M on a new Awapuni community library hub and upgrades to Te Pātikitiki in Highbury. Elected members have voted to reduce the budget for Awapuni to $8M and $3.5M for Te Pātikititiki. They also allocated $1.5M toward a possible community hub/library in Roslyn, which wasn’t proposed but was submitted on during consultation.
Te Motu o Poutoa Anzac Park and upgrades to the Pasifika Centre are set to continue based on what was proposed during consultation.
Multicultural Centre to have a new home
We’d proposed finding a new facility in the city centre to lease for our multicultural events and spending $750,000 to fit out the space, with operating costs of $200,000 each year.
Now, the multicultural centre will move into the main Council building. This will require Council staff to be moved around, and the space to be fitted out at a cost of $450,000 (a $300,000 saving), and a reduction in operational costs from $200,000 to $40,000. This reduced operational cost is primarily due to not needing to pay for a lease. While the space isn’t as large as originally proposed, it does meet most of the requirements for a space for our multicultural communities to gather for events.
Seismic upgrades to landmark facilities
Seismic upgrades to be deferred for one year
We’d proposed starting design for the Regent Theatre in Year 1, with construction in Years 2 and 3, and other seismic upgrades to Central Library, Te Manawa and other facilities following this. Elected members have voted to spread the planned works over 10 years and defer the start of the programme by a year. This has allowed around $15M of the costs to be deferred out of the next 10 years. The design for the Regent Theatre will now start in Year 2 and construction in Years 3 and 4. The other facilities will also be deferred one year.
Reductions were also made to our Earthquake Prone Heritage Building Fund which will now have $75K available to assist building owners in Year 1, $76,000 in Year 2 and $78,000 in Year 3. All of these exclude inflation.
Our plans for transport
City Centre Transformation and street upgrades delayed
Proposed upgrades to our city centre have been delayed. Work was proposed to occur in the next 3 years in the stretch between Main Street roundabout (by the former Post Office building) around to the Rangitikei/Cuba intersection. This section was proposed to occur around the same time that Safari Group redevelop the former Post Office building into a hotel. Elected members have asked staff to report back with updates on Safari Group’s planned development that may impact the timing of this work.
Transit hub project budget halved
During consultation we proposed spending $20M on the new transit hub. This will now total $12M over 2 years (Years 3 and 4).
Reduce and slow down cycling improvements
Elected members have decided to halve the cycleway budget proposed in the draft long-term plan. In Years 1, 3, 5 ,7 and 9 there will be $250,000 spending each year, and Years 2, 4, 6, 8 and 10 will have budgets of $2.5M per year. This will result in a slow-down of new cycleways being created in the city.
Reduce low cost/low risk and Road to Zero budget
This will see the budget halved over the decade. This programme receives co-funding from NZ Transport Agency Waka Kotahi. Elected members have voted to spend $4M in Year 1 and allow for inflation in the in the years following.
Some changes to shared pathway proposals
Elected members have reduced the shared pathway budget. $55M had been proposed for a shared pathway to Feilding and to connect the river pathway to Ashhurst. Elected members voted to instead spend $6M over the first 3 years to build and connect the Palmerston North to Feilding Pathway to the section that Manawatū District Council has already built.
The proposed spending to connect the river pathway to Ashhurst has been removed, with a decision to revisit this in Year 4 as part of the next long-term plan. This is because conversations with landowners are ongoing, and no design has been done yet. Staff are scheduled to provide an update on the project later in 2024. Council can review this if there are any changes or opportunities over the next 3 years.
Council also endorsed the proposal of a City to Sea shared pathway between Palmerston North and Foxton, though has not committed any financial support.
Our plans for water
We’re taking another look at Nature Calls
During consultation, we explained that our Nature Calls wastewater management project could cost $647M, which would see an additional levy to rates of at least $1,000 per year once construction began (likely after Year 4). As a result of feedback, elected members have voted to reduce that budget to $400M, and for staff to review and report back on whether there is a better Best Practicable Option for our future treatment and discharge of the city’s wastewater.
Council will also develop a new city-wide stormwater strategy within the next 3 years, so it can help to inform the next review of the Future Development Strategy.
Our visions, goals and plans
Strategic Priority Grants increased
We partner with community organisations to help deliver on our strategic goals to help our community. Elected members have voted to increase these grants by 10% each year over the next 3 years, to continue supporting community needs in view of current inflationary pressures.
Read more about our Strategic Priority Grants
A new emissions target set
Elected members have set a new emissions target for Council. Our new target is to reduce our organisational emissions by 60% (from our 2015/16 baseline) over the 10 years to 2034. We will report on this annually.
More emphasis on youth
A new programme has been created for youth wellbeing, at a cost of $33,000 per year for the first 3 years of the long-term plan. This will fund the creation of a youth development reference group, an annual youth wellbeing forum, and a quick response youth development fund.
An increased focus on food resilience
Council will increase the funding we provide to Environment Network Manawatū through our Environmental Initiatives Fund by $30,000 a year. This will support food security projects and the development of a city-wide food security and resilience policy.
We will also review our community garden guidelines and rules to be more permissive and encouraging for groups starting a garden on public land.
Protecting our city’s heritage
We’ll create a city heritage plan out of existing resources, along with a volunteer city heritage advisory or reference group that can be built on in future years.
Supporting culture and wellbeing
Council has granted $10,000 in Year 1 to engage with the Te Awa Community Foundation for a civic fund for Palmerston North.
We will also fund the Palmerston North Surf Life Saving Club $15,000 for Year 2 and $16,000 for Year 3.
Civic support of $10,000 will be given to the New Zealand Rugby Museum for an international Australian exhibition.
Waste Management and Minimisation Plan
Elected members have considered feedback, and as a result requested that the investigation and plan to introduce a food scraps collection now also includes a green waste collection. No other major changes have been made to what was proposed during consultation.
Other decisions made under the Long-Term Plan 2024-34
Council will contribute a grant of $450,000 towards the development and construction of a new covered bowling green at Palmerston North Bowling Club. This will be $225,000 for Year 3 and then $225,000 for Year 4 (excluding inflation).
Council will remove the Community Pool Grant of $100,000 in Years 1 to 3.
Council will proceed with the construction of a campervan dump station on the northern side of Custom Street in Ashhurst.
A reduction of $1M will be made to funding for Professional Services in Years 1 and 2.
We will create a new programme of $50,000 annually for the provision of civics education initiatives in the community. We will also develop key indicators and report annually on the effectiveness of these initiatives.
Council will bring forward $300,000 to be spent on renewals for changing room and park facilities identified as being in poor condition.
In projects where partner funding is required, the chief executive will ensure that Council doesn't undertake any physical works until external funding is committed, unless Council determines otherwise (excluding NZTA).
In preparing the draft of the final Long-Term Plan 2024-34, the chief executive will revise the timing of the present provisions for accelerated debt repayment so they continue to total approximately $150m over 10 years, but will smooth the impact on rates in a more strategic manner.
Council will defer Programme 1845 – Te Marae o Hine to Year 3 onwards.
Council will defer Programme 764 – Energy use monitoring from Years 3, 5 & 6 to Years 4, 6 & 7.
Council will remove Programme 2488 – Business Sustainability Fund.
Council will add “Community social service groups and facilities that are well supported and invested in” to Goal 3 outcomes, and ‘‘Natural environment-focused community groups and facilities that are well supported and invested in” to Goal 4 outcomes.