The local roads in our district receive crucial funding through the New Zealand Transport Agency Waka Kotahi's (NZTA) National Land Transport Fund (NLTF). This fund helps to support essential services like road maintenance and footpath renewal by co-funding a portion of the costs that Council budgets towards these activities. Effectively utilising this funding programme is one of the ways that Council balances transportation infrastructure spending with its impact on rates. Council currently receives around 68 cents for every dollar we spend on eligible and approved work.

While Council strives to make the most of its roading budget by applying for NZTA contributions, not all activities submitted for funding are approved. This means that some proposed roading activities have not received the NZTA co-funding Council hoped for, resulting in a funding gap. Council requested NZTA co-funding (subsidy) for a $22.36 million budget over a three-year period from 2024 to 2027.

However, NZTA has advised Council that they will only co-fund $19.71 million of roading activities. This means that $2.65 million in roading activities would need to be wholly funded by Council to undertake our original plans.

One of the key decisions in this Long-Term Plan is how Council addresses this funding shortfall. The choices we face will directly impact how Council manage roading and footpath activities moving forward, with the understanding that continued underfunding of our roading activities may affect future levels of service. Whether through adjusting budgets to cover the costs, prioritising certain activities, or delaying others, your input will play a crucial role in helping Council determine the most responsible and sustainable approach for the district. Our preferred option of $952,475 is the minimum funding required to bridge the shortfall while ensuring that we can maintain current service levels.

All options presented have no impact on debt levels.

Make your submission