Viewpoint – Balancing the cost of growth

Kaipara District is spread over a vast area of 311,700 hectares. The Kaipara roading network that connects our properties and towns is 1614 km long, with 1140 km of this being unsealed. Road maintenance for Kaipara is normally funded 38% from general rates, with the remaining 62% being subsidised by central government through the New Zealand Transport Agency (NZTA). Road maintenance is Council’s biggest spend at about $30 million per annum. This is matched with the condition of roads being one of the biggest ratepayer concerns.

Council has taken four key steps in the past year to improve roading performance. First, we have brought our roading staff back in-house and withdrawn from the Northland Transportation Alliance, which had all Northland roading staff working out of an office in Whangarei. Second, we changed our primary road maintenance contractor to Downer. Third, we require 30% of the road maintenance work to be carried out by local contractors. Fourth, we have required the engagement of an independent roading technical specialist. Ratepayer feedback and my own observations indicate that these steps are producing improved outcomes.

When growth occurs through subdivision, it is important to ensure that the existing community is not burdened by the costs of this growth, but does contribute to growth infrastructure when it provides a clear benefit to them by improving their existing levels of service. Council has two mechanisms to levy funds to pay for the upgrading of roads, but can’t use both to fund the same works project. The first is financial contributions (FCs) under the Resource Management Act, and the second is development contributions (DCs) under the Local Government Act. Council is using DCs to fund growth related works.

Historically, Council has not had the most robust systems for collecting these funds or for allocating them to the areas that are most affected by growth pressures. The calculation of DCs requires a balancing of the benefit of increased levels of service for existing properties with the costs of the establishment of growth properties. The DC funds can only be used to fund roading projects identified in Council’s Long Term Plan (LTP) (the 10-year budget and work programme). In recent years, some improvements have been made with a DC for Roading East (comprised of the greater Mangawhai and Kaiwaka area) now being charged at $12,600 for each new lot. By contrast in the rest of the district, with comparatively much less growth, only $139 is currently collected for roading for each new lot.

Council is completely reviewing its DC policy to ensure it is fully legally compliant and is properly catering for future growth. One of the issues that I have identified is that the LTP projects don’t include upgrading works on smaller local roads that have been subjected to the cumulative effects of multiple subdivisions. In the current financial year we have identified and rates-funded some of these impacted roads with unaddressed legacy growth issues. This includes Settlement Rd (recently sealed to the Hakaru Hall), Devich Rd (now sealed entirely) and Cames Rd (narrow section to be upgraded and sealed). I will be pushing to get projects for the upgrading of smaller local roads included in the LTP so that in future they don’t get left behind as the district continues to grow.