There is much to love about Nelson. Our climate, natural environment and parks make us a mecca for recreation. We have a diverse economy driven by innovative businesses and a unique advantage as New Zealand’s seafood capital. Our creative arts sector and heritage facilities give our city character. We are a safe, caring and inclusive community. Our predecessors invested in good infrastructure. This consultation on the Long Term Plan for the next decade is about Council building on these strengths to ensure we remain the best little city in the best little country in the world.
Beyond the storm - Kei tua i te āwhā
The “Beyond the storm” title reflects two contexts in which this plan is being developed. The August 2022 weather event was the worst in 50 years and has had a huge impact on Council’s work and finances. Fixing the damaged infrastructure, finding a pragmatic solution for homes damaged or put at risk by landslides and securing financial support from the Government has dominated my first year as Mayor. The last big decision for Council related to the 2022 storm is how we meet the cost, and our proposal is for a $300 annual targeted rate for all separately used or inhabited parts of a rating unit in Nelson. We now have the opportunity to think beyond the storm on the longer-term challenges for our city.
It is not just a weather event that has made this Long Term Plan so challenging. We also have an economic storm with the highest inflation and interest rates in three decades and increased costs for Council in areas we cannot control such as depreciation, insurance and audit fees. We are very mindful that households and businesses are also facing the same economic pressures. Our challenge is to navigate a realistic and responsible financial path while ensuring we maintain and improve the services that support the city’s prosperity and wellbeing.
Our strategy
The underlying strategy in this proposed Long Term Plan is to take a cautious approach to new capital spending for any large civic projects over the next few years, while continuing preparatory work so those projects are ready to go once the economic situation improves. This reflects the difficult economic climate and the amount of storm recovery work that still needs to be completed.
We are aiming to get on with four smaller projects: A surf lifesaving facility at Tāhunanui Beach, a central city arts hub, an all-weather sports turf and supporting the Nelson Provincial Museum to deliver its project of a new Archives, Research and Collections facility (which is in the existing Long Term Plan). A city doing nothing goes backwards and we want to be progressively improving our facilities.
We believe there will be a need for investment in larger projects during the later years of this plan, such as Civic House. We are confident the economy will then be in better shape. Big projects also have long lead times and need broad community support. There will be further community consultation as this work progresses.
Infrastructure
Council’s greatest responsibility to our community is in the provision of vital city infrastructure for services such as drinking water, wastewater, stormwater, roads, stopbanks, drains, bridges, cycleways and footpaths. There is widespread concern across New Zealand that Councils have been underinvesting. This was a significant driver for the “Three Waters” reforms of the previous Government, which would have taken away from Council's control of these water assets.
Nelson’s infrastructure is in much better shape than it is for most Councils but we must continue to invest if we are to keep up with maintenance, provide for growth and better manage risks such as climate change. This draft plan provides over the next 10 years for an overall capital investment of around $815 million in key infrastructure. This includes a $128 million investment in drinking water infrastructure, $248 million for wastewater, $99 million for stormwater and $45 million for flood protection. We also propose capital expenditure of $295 million in transport infrastructure with a balanced approach between roading, public transport and active transport options such as walking and cycling.
Balancing risks and equity
There are important inherent questions in this consultation process over risk and intergenerational equity. We could choose to fund the storm repair costs over a greater number of years than the decade proposed but this increases the risk of not having paid for the 2022 event before we are hit again with another natural disaster. We also face choices about how much of the infrastructure we need should be funded from rates today, or from loans that will be paid in the future. We believe the approach proposed, with the debt cap rising from 175% to 200% of revenue, strikes an appropriate balance between keeping rates manageable today without placing an excessive burden on future generations.
Working together
This year, we celebrate 150 years of Nelson City Council. There is much we can be proud of in that long history. However, it is only in recent years that any attempt has been made to honour Te Tiriti o Waitangi / the Treaty of Waitangi and include iwi in decision making for our city and region.
Our Council’s ambition is to carve out a pragmatic pathway for our corner of New Zealand that builds respectful relationships with iwi and benefits the whole community. This is particularly important at this time when these issues nationally are becoming more divisive and difficult.
I was very involved as a then-Government Minister and Nelson MP in the settling of Te Tauihu treaty claims in 2014 and I am determined now, as Mayor, that these are honoured by our Council. On 12 December 2023, I signed, on behalf of Nelson City Council, the historic Kia Kotahi Te Tauihu, Together Te Tauihu Partnership Agreement along with our eight Te Tauihu iwi, and our two neighbouring local authorities of Tasman District Council and Marlborough District Council. The challenge now is to implement this agreement over the next decade in a way that builds confidence and shows the benefits of working together.
On Tuesday 12 December, 2023, Ngā iwi o Te Tauihu and the mayors of Nelson City Council, Tasman District Council and Marlborough District Council signed Kia Kotahi Te Tauihu, Together Te Tauihu Partnership Agreement.
