Growth Issues Looking Back & Looking Forward

Is cumulative impact of DC changes & charging full costs to growth: –Providing competitive advantages to some developers/areas?  Papamoa existing surplus water capacity funded by ratepayers $255; Wairakei no capacity $3,133 –deterring growth in some locations?  North West Bethlehem – negative for existing and future ratepayers?  Modelling indicates in ratepayer interest to subsidise DC with larger rating base spreading rating burden & avoid escalating cost of capital.

TCC Approaches to Growth Past Present Future Refer table

Looking Ahead Growth needs to occur where infrastructure is provided If growth not viable in planned areas – where will it go? Consequences of this? Housing price points critical to maintain affordability and increase rating base. –64% of households income <$70,000 pa –$400,000 house  $132,000 deposit on $70k –20%  in no. houses <$400,000 in last 5 yrs (compared to prior 5 yrs).

Looking Ahead (cont.) Rating base needs to increase to share burden of growth costs. Is cumulative impact of DC changes and charging full costs to growth: –Providing competitive advantages to some developers/areas? –deterring growth in some locations? – negative for existing and future ratepayers?

Benefits of Planned Growth Rating base grows  spread rating burden Economic development Implementation of growth management strategy Fair & competitive market Housing affordability

Discussion & Questions