1. ANNUAL PLAN
2019/20
Council Workshop
21 November 2018

2. Purpose of today Recap of LTP for 2019/20 The changes Rates impact
Consultation approach
Next steps

3. A recap - the Long Term Plan 2018-28

4. We set GW’s direction for the 10 years
An extraordinary region – thriving, connected and resilient
4 Strategic Priorities
Fresh water quality and biodiversity
Regional resilience
Water supply
Public transport
Leadership areas
Business as usual

5. We planned for the future

6. We noted the key drivers impacting the business – 3 year

7. We agreed our activities

8. We set the LTP rates

9. Assumptions in the LTP for 19/20
Patronage Growth
Bus – 1.00%
Rail – 2.50%
Fare increases based on the BERL CPI adjustor
Bus and Rail – 1.60%
Insurance – at the rate of inflation
Personnel market movement – 2%
Note: in 2018/19 we had a 3% fare increase and a reduction in total fares of $7.5m to pay for new fare initiatives

10. Things have changed…

11. Changes to the key drivers of the LTP – 3 year

12. Our base assumptions since the LTP
Unchanged:
Inflation
Personnel market movement
Insurance (identified as a risk)
Fare increases
Changed:
Bus contract indexation

13. Non PT changes +ve = Increases rates -ve = Decreases rates Activity
Rates Impact 19/20 $M
Natural Resources Plan
Ongoing hearing and implementation costs
+ 0.5
Wellington Accommodation
New premises – fit-out and lease costs
+ 0.3
Let’s Get Wellington Moving
Revised costings for planning stage
+ 0.1
Total
+ 0.9
+ve = Increases rates
-ve = Decreases rates

14. PT changes +ve = Increases rates -ve = Decreases rates Activity Change
Rates Impact 19/20 $M
Bus network changes / enhancements (next slide)
+ 3.7
+ 1.8
Increased fare revenue
- 0.9
- 0.4
FY18/19 capex changes
+ 3.4
+ 0.2
Indexation changes (Fuel costs etc)
+ 1.2
+ 0.6
Other bus contract changes
- 1.0
- 0.5
Other cumulative changes
+ 1.9
+ 0.9
Total
+ $2.6
+ve = Increases rates
-ve = Decreases rates

15. Bus network changes Change $M
NZ Bus Enhancement packages and reschedules
1.4
Tranzurban Enhancement packages and reschedules
0.8
Route 18E extension
0.5
Route 14 extension (including 1 peak vehicle)
0.3
Provision for peak requirements
0.7
Total
3.7

16. Other PT changes - $1.9M Favourable movements Rail operator costs
KiwiRail Network Agreement
Bus advertising revenue
Unfavourable movements
IT Systems Support
Double decker road maintenance and tree clearance
Snapper fee
Rail traction electricity
Total Mobility Subsidies

17. What’s not included Bus network changes Additional electric buses
Route 10 and 23 services to access the Zoo and Newtown Flats
Splitting of Route 2 at Miramar
Additional services for Vogeltown and Mornington
Additional electric buses

18. 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
Impacts of decisions beyond 2019/20
Fare increase – Council decides not to increase fares in line with inflation

19. Full impact on rates

20. Options available External revenue assumptions (eg. Patronage)
Additional PT fare increases
Timing and extent of GW activities
Assumptions on cost drivers
Repayment term of loans
Use of reserves (timing only)
Timing of capital programmes of work

21. PT reserve movements

22. LTP rate profile

23. Applying possible funding options

24. Water levy 3.5% - no change from the LTP
Changes in the timing of projects being discussed
2018/19
2019/20
$33.1m
$34.2m

25. Consultation and engagement

26. Our options
Our approach will depend on the budget and what changes are included or not
Two basic options:
We inform and engage – tell the story of why there are changes and do not consult on options
We consult – we have clear options to consult with the public on

27. Proposed approach The key drivers of budget change in 2019/20 are:
decisions that Council have already made (i.e. bus services)
Increased costs for existing programmes (i.e. LGWM, NRP)
Changes to assumptions
As such there are no real options to genuinely consult the public on
Recommendation – inform and engage

28. Consultation and engagement?
Next steps
Workshop 13 December
Draft Annual Plan
Draft Budget
Consultation and engagement approach
Workshop 7 Feb
Annual Plan
Consultation/ engagement document
Consultation approach
Meeting 26 Feb
Confirm draft Annual Plan
Adopt consultation/ engagement document
Engagement
March
Consultation and engagement?

29. End of presentation