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2022/23 Annual Plan 
– Update to Councillors, 15 March 2022
Purpose of this session
To discuss with Council:
•
Budget and Rates confirmation
•
Public Engagement Plan 
•
Timeline / next steps
2022/23 Annual Plan Recap – where we got to
At the 9 December Council Workshop:
•
Councillors agreed on the proposed rates increase for next year of 13.14% (not 
using internal reserves, and using a 3% personnel allowance increase)
•
Officers established that a public consultation is not required for the 2022/23 
Annual Plan
•
However, we will “Inform” the public on some items that faced increased costs 
since our LTP was published:
▪ RiverLink project
▪ Bulk Water Supply network improvement projects (Kaitoke Flume Bridge replacement and 
Silverstream Pipe bridge replacement)
2021-31 LTP Year 2 work programme – “do-ability” overview
•
Business Groups reviewed the “do-ability” their 2021-31 LTP Year 2 (2022/23) work 
programmes, identifying savings and re-phasing opportunities
•
The outcome of the exercise resulted in an overall cost-neutral budget
•
Savings were identified in some areas; however, these were offset with cost increases 
in other areas. Instances of CAPEX re-phasing were lower than expected
•
The question of the “do-ability” of our 2022/23 CAPEX programme remains
2021-31 LTP Year 2 work programme – budget changes
Some examples of proposed budget changes that have contributed to budget neutrality:
Year 2 Budget Increases:
Year 2 Budget Decreases:
Environment and Flood Protection
+ Pinehaven FMP (brought forward 12 months)
- Otaki FMP (deferred 12 months)
+ Bolstering science advice – freshwater and 
- Ruamahanga Aerial Electromagnetic Survey 
wetlands  (new in Year 2)
(deferred 12 months)
Metlink Public Transport
+ Rollout of National Ticketing Solution
- Expected cost reduction – RTI
+ Airport Bus Service
- Bus Service enhancements, timetable changes
+ Public Transport On Demand Service
2022/23 Annual Plan Work Programme
Major CAPEX Projects
22/23
Environment and Flood Protection
Riverlink
$24m
Water Supply
Kaitoke Flume Seismic Upgrade
$13.7m
Te Marua Water Treatment Plant upgrade
$20.5m
Silverstream Pipebridge
$30.6m
Metlink Public Transport
National Ticketing Solution
$4.5m
Asset management – Rolling stock, Buildings and 
$16.1m
Structures
Real Time Information
$5.2m
BAU Capex - Station & Bus Stop Renewals
$6.0m
2022/23 AP Work Programme
Major OPEX Projects
22/23
Environment and Flood Protection
JFN: Wairarapa Moana, Fish Passage, Riparian Management 
$2.8m
Wairarapa Rivers
Ruamāhanga Aerial Survey (delayed in 21/22)
$1.5m
Metlink Public Transport
Electric Vehicle Programme
$9.1m
National Ticketing Solutions
$12.6m

2022/23 Draft Budget

Rates % increase 2021-31 LTP
Notable changes to the 2021-31 LTP year two and considered 
in last workshop
Description
Funding
Debt
Rates 
Rates 
Rates
$'000s
Impact
Impact 
Change
$'000s
%
2021-31 LTP
12.27%
Reduced Starting Debt
Debt
-60,000
-5,324
-3.35%
Increased Debt Servicing Charges
Rates
2,451
1.54%
Water Overhead Reduction
Rates
500
0.31%
Personnel Cost Increase 2% to 3% **
Rates
640
0.40%
Farebox Revenue Reduction (COVID-19)
Debt
7,350
132
0.07%
RiverLink
Debt
0
0
n/a
Operating Expenditure increases
Rates
3,019
1.90%
Proposed 2022/23 Annual Plan Rates Changes 
1,418
0.87%
13.14%
Impact
Notable changes to the 2021-31 LTP Year Two
Description
Funding
Debt
Rates 
Rates 
Rates
$'000s
Impact
Impact 
Change
$'000s
%
Proposed 2022/23 Annual Plan Rates Changes 
13.14%
Impact from December 9 workshop
Rates Remission
Rates
30
0.02%
3 Waters Reform
Rates
150
0.09%
Stadium Grant
Debt
1,500,000
24
0.02%
Proposed 2022/23 Annual Plan Rates Changes 
204
0.13%
13.27%
Impact

2021-31 LTP and Proposed 2022/23 Annual Plan



Estimated Rates Profile
Summary
Highest »
15.85% Year 3
Average » 
14.03% over first triennium
Trend » 
downward sloping profile
LTP Financial Tools Utilised
21/22 
22/23 
23/24 
24/25 
25/26
Year 1
Year 2
Year 3
Year 4
Year 5
Tools
Description
$'000s
$'000s
$'000s
$'000s
$'000s
Debt Funding - OPEX Public Transport Farebox revenue gap
-
7,350
-
Additional RiverLink funding
50,000
50,000
50,000
Stadium Grant
1,500

Debt Affordability Benchmarks LTP/AP

Debt affordability benchmarks LTP cont…
Questions for Councillors and other Business
•
Do you agree with the proposed Rates increase of 13.27% (using Internal Reserves)?
•
Ali to lead a brief discussion on the recommendation for the treatment on the Three 
Waters reform ”better off” funding in the Annual Plan.

Water Levy Update

Proposed 2022/23 Annual Plan Water Levy Increase
Water Levy – Outline
Wellington Water recommends Greater Wellington invests in the following key investment priorities:
Fund an average increase $2.1M for OPEX for each of the three-year supporting a step change increase in operational costs to look after existing 
infrastructure (and noting stimulus funding provides uplift in years 1 & 2)
Plus an Annual Plan change to include;
additional OPEX average increase of $0. 28m across years 2,3 & 4 to increase maintenance budget
Fund $167m CAPEX over 10 years for renewals to look after existing infrastructure.
Plus an Annual Plan change to include;
additional CAPEX of $37.0m across years 2, 3 & 4 for the Kaitoke Flume Bridge,
additional CAPEX of $51.7m across years 2, 3 & 4 for the Silverstream Pipe Bridge.
Include CAPEX funding of $13m over 10 years to extend the bulk water network. Phasing is linked with city council growth planning.
Fund $61m CAPEX over 10 years in activities that Reduce Water Consumption including;
$37M to increase Capacity at Te Marua WTP.
Plus an Annual Plan change to include;
additional CAPEX of $17.3m across years 2, 3 & 4 for the Te Marua WTP Capacity Upgrade.
Fund $150-$250K OPEX for carbon assessments
Fund the following in the first 5 years;
$4.4M for Waterloo WTP Ground Improvements,
$2.3M for Te Marua WTP Clarifier Seismic strengthening.

Public Engagement plan – March update
2022/23 Annual Plan Public Engagement
• We will carry out a public engagement prior to the finalisation and adoption of the Annual Plan 
• Our public engagement period will be late March – late April 2022
-
at the same time as the Revenue & Finance Policy and the Rates Remission Policy (Māori Freehold land) 
consultations are being undertaken 
• We will prepare two main pieces of collateral to support the public engagement campaign:
I.
Annual Plan Public Engagement “2-pager” – to provide a high-level view of key messages related 
to our 2022/23 Annual Plan, and other front of mind issues.
II.
Annual Plan Regional Factsheets – to provide a high-level view of significant 
projects/programmes that are planned for each area of our region for 2022/23.
• Our public engagement will be primarily digitally-focused,  utilising our owned channels (website and 
social media) and earned channels (media releases).
• An FAQ document will be available to Councillors and the Contact Centre when the public engagement 
period launches.
Annual Plan 2022/23 Public Engagement “2-pager”
Public Engagement “2-pager” – key messages
•
Significant LTP project/programme deliverables for 2022/23.
•
The projects/programmes that have changed since adoption of our 2021-31 LTP:
- RiverLink Project cost increase (indicative figure)
- Bulk Water Supply network improvement project cost increases; Silverstream Pipe Bridge and Kaitoke Flume 
Bridge (funded by Water levy). 
- Greater Wellington’s position on the Three Waters Reform (short statement).
•
Challenges we are keeping an eye on:
- our CAPEX delivery (raising project costs and supply chain challenges)
- Public Transport farebox revenue (due to a decrease in patronage)
•
Opportunities we are thinking about for our next LTP (2024-2034):
- Stadium funding and future support
- LGWM future funding changers as project details confirmed.
•
How we are acknowledging community feedback.



Annual Plan 2022/23 Factsheets by region
Factsheets – key messages
•
One for each of our five parts of the region (Wellington City, Porirua, Kāpiti, Hutt Valley, Wairarapa)
•
Snapshot of significant programmes or projects planned for the upcoming 2022/23 year
•
Rates breakdown table for each region
Revenue and Financing Policy & Rates Remission Policy 
•
Proposed changes to the Revenue and Financing policy do not impact the Annual Plan 
Budget or Total Rates Revenue for 2022/23. 
▪ However, the proportion of Targeted vs General Rates that ratepayers will see on their rates bill will 
change.
•
Proposed changes to the Rates Remission policy on Māori Freehold land will have 
minimal impact on the Annual Plan Budget for 2022/23. 
▪ The Annual Plan Budget has made a provision of $30,000 for the anticipated cost of anything remission 
applications made under this policy during 2022/23.
Questions/actions for Councillor decision?
•
Do you support the 2022/23 Annual Plan Public Engagement approach?
•
Do you support the key messages in our Public Engagement?
Next Steps – 2022/23 Annual Plan Key Deliverables
We are here
Sep 21
Oct 21
Nov 21
Dec 21
Jan 22
Feb 22
Mar 22
Apr 22
May 22
Jun 22
Business Initiatives/Budget Review Process
Preparing Annual Plan Public Engagement
Preparing final Annual Plan
Engagement period on 
Annual Plan
Public Consultation on 
RFP and RRP
28 Oct
9 Dec
17/18/19 May
30 Jun
Council 
Council 
17 Mar
R&FP Hearings
Adopt 2022/23 
15 Mar
Late Mar 
Workshop 
Workshop
Update 
and 
Annual Plan and 
Council Workshop 
Annual Plan
on AP 
on Draft AP 
report to 
Deliberations
set 2022/23 
for draft AP Budget 
Public 
process and 
Budget and 
Council on 
rates
update and on 
Engagement 
direction
consultation 
Annual Plan 
R&FP Adopted
Public Engagement 
commences
topics
Progress
RRP Adopted
method