ANNUAL PLAN 2019/20 Council Workshop 13 December 2018

Purpose of today Recap on previous workshop Update on draft budget Confirm the engagement approach Next steps

On 20 November we outlined… The proposed changes to the LTP for the 2019/20 year Base assumptions for the LTP Risks and uncertainties

This was the rates picture

Council provided direction on how to address the rates impact Confirmed use of some PT reserves Confirmed application of likely current year capital expenditure timing impact Plus: Remove the fare increase assumption i.e. no increase for 2019/20 Assume more aggressive patronage growth for rail and bus

Historical patronage growth

Further updates since then We reviewed feasible patronage growth assumptions and have budgeted for: 4.5% growth in rail 2.0% growth in bus The renewal on our insurance premiums has been received – extra $760k in 2019/20

The rates impact 2019/20

PT Reserves

The LTP vs AP 2018-28 rates picture

There remain some risks and uncertainties Risk / Uncertainty NZTA funding for the bus enhancements Riverlink – rental revenue LGWM - costs for planning phase likely to be higher than allowed for Fares revenue - patronage & inflation WREMO - building rental costs Long Distance Trains – options and funding Ferry Terminal – business case and follow-up work CentrePort Dividend Hutt Valley rail line upgrade and impacts on revenue/patronage

Your Direction Q. Are you comfortable with the proposed rates increase for 2019/20 and the remaining risks? YES - We will prepare a draft Annual Plan budget for approval your approval in February NO - How do you want management to approach reducing rates?

Water levy impact 2019/20 Increased insurance premium - $300K Change in insurance cover - $600-$850K Water levy increase estimated to move from 3.5% to 6%

Engagement

Approach Low significance - informing To run alongside the Regional Public Transport Plan consultation Councillor led engagement with logistical support from officers Drop in sessions Community groups and organisations (presentations)

Reaching the audience Collateral Social media updates Website Presentation Posters, flyers, advertising Information document and supporting information Social media updates facebook, twitter Website February – advice of upcoming engagement April/May – documentation online

Timeframe – book your diaries February we will get in touch to develop your individual itinerary Confirm drop-in sessions April through May Drop in sessions (with RPTP consultation) Community group presentations .

Next steps Workshop 7 Feb Meeting 26 Feb Engagement April / May Annual Plan Consultation/ engagement document Finalise consultation approach Meeting 26 Feb Confirm draft Annual Plan Adopt engagement document Engagement April / May

End of presentation