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2022/23 Annual Plan 
– Update to Councillors, 9 December 2021
2022/23 Annual Plan Recap – where we got to
At the 28 October Council Workshop:
•
The impacts to our budget and work programme from COVID-19, constrained operating 
environment, CAPEX underspend, OPEX cost pressures, lower Public Transport Farebox 
Revenue were noted.
•
There was discussion around the low appetite for further rates increase in the community.
•
Agreement between Councillors and Officers to try and keep the average rates increase 
for 2022/23 close to the 12.27% signalled in our 2021-31 LTP. 
•
Officers would be assessing the “do-ability” of our 2021-31 LTP Year 2 work programme.
•
Officers would come back to a Council Workshop on 9 December 2021 to discuss the draft 
2022/23 Budget and the significance and materiality assessment on proposed changes. 
Purpose of today’s Workshop
Agenda:
•
Outcomes of our “Do-ability” assessment of our 2021-31 LTP Year 2 work programme
•
The 2022/23 Draft Budget
•
Water Levy Update
•
Our approach to the 2022/23 Annual Plan Public Engagement
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
•
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 outcome of the exercise resulted in an overall cost-neutral budget
•
There is still a question around the “do-ability” of our 2022/23 CAPEX programme
given the significant increase over the previous year
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 Draft Budget

Rates % increase 2021-31 LTP
Notable changes to the 2021-31 LTP Year Two
Description
Funding
Debt
Rates Impact
Rates Impact 
Rates Change
$'000s
$'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 2.5%
Rates
320
0.20%
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 Impact
1,098
0.67%
12.94%
Potential use of Internal Reserves
Description
Funding
Debt
Rates Impact
Rates Impact
Rates Change
$'000s
$'000s
%
Annual Plan Rates Changes Impact
1,098
0.67%
12.94%
(from previous slide)
Proposed use of Internal Reserves
Equity
-1,650
-1.04%
2022/23 Annual Plan
-552
-0.37%
11.90%

2021-31 LTP and Proposed 2022/23 Annual Plan



Estimated Rates Profile
Summary
Highest »
15.32% Year 3
Average » 
13.40% 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
Public Transport Farebox
Debt Funding - OPEX revenue gap
-
7,350
-
Additional RiverLink funding
50,000 50,000 50,000
Reserves
Dividend reserves
(1,650)
-

Debt Affordability Benchmarks LTP/AP

Debt affordability benchmarks LTP cont…
Questions for Councillors
•
Do you agree with the proposed Rates increase of 11.90% (using Internal Reserves)?
– or would you rather the rates increase of 12.94% (without Internal Reserves)?

Water Levy Update
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,
additional OPEX average increase of $1.5m across years 2 & 3 for Smart Metering investigations.
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 $59.8m 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.

Proposed 2022/23 Annual Plan Water Levy Increase

Engagement on Annual Plan
Annual Plan Engagement – LGA requirements
•
As per Section 95(2A) of the Local Government Act 2002, you need to consult on an 
Annual Plan if there are any Significant or Material differences from the content of the 
related year to the Long Term Plan
•
Officers completed a Significance and Materiality Assessment of all the proposed 
changes to Year 2 of  our 2021-31 Long Term Plan in line with our Significance and 
Engagement Policy:
➢Our assessment concluded that no items trigger a requirement to ‘consult’
➢Three items (RiverLink, Kaitoke Flume Bridge and Silverstream Pipe Bridge) were 
deemed significant and material enough to trigger an ‘inform’ level of engagement 
to our communities
Annual Plan Engagement – Inform or consult?
•
Legal advice was sought on whether we would have to amend our 2021-31 Long Term 
Plan, and therefore consult, with regards to the significant cost increase to the 
RiverLink project. The advice concluded that while the overall cost increase is material:
– it is related to general project cost increases rather than any change to how we are delivering the 
project;
– it does not go against our Financial Strategy or agreed debt limits;
– and there are no options to consult on.
• The Kaitoke Flume Bridge and Silverstream Pipe Bridge projects, being delivered by 
Wellington Water Limited, also face significant cost increases under similar 
circumstances to RiverLink.
➢The recommendation is for us to Inform rather than Consult the community on the 
RiverLink, Kaitoke Flume Bridge and Silverstream Pipe Bridge projects.
Annual Plan Engagement – what does it look like?
•
What might “inform and engage” on the 
There are key differences between Inform and Consult levels of 
engagement
2022/23 Annual Plan look like? 
Inform
Consult
– An overview of our Year 2 work programme
Might look like…
Might look like…
– The proposed Rates increase 
• Social media campaigns
• Formal consultation process on 
the ‘significant and material 
– Inform on RiverLink, Kaitoke Flume Bridge and 
• Media releases and councillors 
speaking to their communities 
differences’ (incl. submissions 
Silverstream Pipe Bridge cost increases
about what is in the plan
and hearings)
•
•
Collate any feedback into 
Online, print and social media 
– Inform on other cost increases including Harbour 
general themes and issues
awareness campaigns about 
the proposed change(s) and 
Bylaw Fees, Wellington Water Levies.
• Reactive Q&A
how people can have their say
– Acknowledge any community feedback
Supported by:
Supported by:
• 2022/23 Annual Plan 
•
A consultation document
•
There are numerous opportunities to engage 
document
•
Supporting Information 
• Fact Sheets for each 
communities both before and after the 
document
Catchment area
•
Annual plan is published.
Digital content for websites
Question for Councillors on Engagement
•
Do you support our recommendation to engage and inform on the 2022/23 Annual 
Plan?
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
Mana whenua engagement 
Engagement period on 
on 2022/23 Work Programme
AP and R&F Policy
28 Oct
9 Dec
1 Feb
17 Mar
17/18/19 May
30 Jun
Council 
Council 
Council 
Adopt R&F 
R&F Policy 
Adopt 
Workshop 
Workshop
Workshop for 
Policy 
Hearings and 
2022/23 AP 
on AP 
on Draft AP 
draft AP Budget 
Consultation 
Deliberations
and R&F 
process and 
Budget and 
update and R&F 
Documents
Policy
direction
consultation 
Policy 
topics