Growth Issues Looking Back & Looking Forward

1. Growth Issues Looking Back & Looking Forward

3. 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.

4. TCC Approaches to Growth • Past • Present • Future Refer table

5. 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 $70k • 20%  in no. houses <$400,000 in last 5 yrs (compared to prior 5 yrs).

6. 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?

7. Benefits of Planned Growth • Rating base grows  spread rating burden • Economic development • Implementation of growth management strategy • Fair & competitive market • Housing affordability

8. Discussion & Questions