Growth Issues Looking Back Looking Forward Is cumulative
Growth Issues Looking Back & Looking Forward
• Is cumulative impact of DC changes & charging full costs to growth: – Providing competitive advantages to some developers/areas? Papamoa existing surplus water capacity funded by ratepayers $255; Wairakei no capacity $3, 133 – deterring growth in some locations? North West Bethlehem – negative for existing and future ratepayers? Modelling indicates in ratepayer interest to subsidise DC with larger rating base spreading rating burden & avoid escalating cost of capital.
TCC Approaches to Growth • Past • Present • Future Refer table
Looking Ahead • Growth needs to occur where infrastructure is provided • If growth not viable in planned areas – where will it go? Consequences of this? • Housing price points critical to maintain affordability and increase rating base. – 64% of households income <$70, 000 pa – $400, 000 house $132, 000 deposit on $70 k – 20% in no. houses <$400, 000 in last 5 yrs (compared to prior 5 yrs).
Looking Ahead (cont. ) • Rating base needs to increase to share burden of growth costs. • Is cumulative impact of DC changes and charging full costs to growth: – Providing competitive advantages to some developers/areas? – deterring growth in some locations? – negative for existing and future ratepayers?
Benefits of Planned Growth • Rating base grows spread rating burden • Economic development • Implementation of growth management strategy • Fair & competitive market • Housing affordability
Discussion & Questions
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