Roading Renewals

What we're proposing to reduce

We’re proposing to spread out our road pavement renewal programme over a longer period. We would closely monitor the quality of the road network, and prioritise work to try and keep the roads to the current standard.

Our network of local roads is over 1,000km long – that’s longer than the entire North Island! But it comes with a hefty price tag – roading accounts for around 20% of our total annual spend, or around $17.8 million. Waka Kotahi/NZ Transport Agency contribute around $6.3 million towards maintenance and capital improvement of the network.

In the current year (2023/24) we will spend around $3 million on pavement maintenance (e.g. pothole repairs, repairing edge breaks etc), and a further $5.1 million on pavement renewals, which includes the resurfacing of our roads (to protect the pavement from rain and wear and tear from traffic) and the renewal of pavement on our roads (to strengthen the pavement).

What are we proposing to reduce?

Roading costs have increased dramatically – quite simply, it costs more to do less. Because affordability is our key area of concern for this LTP, and because we’re not sure whether central government will contribute additional funding, we’re proposing to spread our renewals work programme out over a longer time period and closely monitor the impact this may have on the condition of the roads. Our most recent audit data shows that the local roads are currently maintained to a higher standard than what is required – so while we would be cutting back the maintenance programme, we believe we could still maintain the roads to the required standard. Even doing less work, the budget for roading renewals would still need to increase to $5.7m.

The catch is that you won’t notice the impact of this right away – it could take a couple of years before people start to notice any additional wear and tear on our roads (e.g. more ruts or potholes).

Reduce our roading renewal programme to cut costs

We’re proposing to spread out our road pavement renewal programme over a longer period. We would closely monitor the quality of the road network, and prioritise work to try and keep the roads to the current standard.

This would still require $5.7 million for pavement renewals in 2024/25. This is almost a $600,000 increase on the current year, but would result in less works due to the significant cost increases in this area.

Standard of service this would provide:

We aim to keep the roads to the current standard – but there is a risk of more wear and tear on our roads over time.

Impact on debt:

There is no impact on debt.

Council's share of additional operating cost per year:

$291,000 for 2024/25.

Average additional cost per property per year:

$11.87 for 2024/25.

Pavement Renewals

$5.4 million for pavement renewals for 2024/25 to continue to resurface and renew our road network.

Standard of service this would provide:

Continuing to fund at the current level would likely result in a reduction in the service (e.g. more wear and tear on our roads over time).

Impact on debt:

Renewals are funded from Waka Kotahi subsidy, 51%, and rates, 49%. There is no impact on debt.

Council's share of additional operating cost per year:

$144,000 for 2024/25.

Average additional cost per property per year:

$5.87 for 2024/25.

Keep roading renewals at the current level

There would be less risk of increased wear and tear if we kept our pavement renewal programme at the current level which would require funding of approximately $6.5m.

If the community sees this as a priority, we could fund the increase.

Waka Kotahi/NZ Transport Agency currently contribute 51% of local roading costs – we could put a proposal to them to increase funding, but we can’t be certain that they would approve it, so there is a risk that the community would need to fund the full amount.

Standard of service this would provide:

Same as current service/no change.

Impact on debt:

There is no impact on debt.

Council's share of additional operating cost per year:

If Waka Kotahi contributes 51%: $683,000.

If Waka Kotahi do not increase funding: $1.39m.

Average additional cost per property per year:

If Waka Kotahi contributes 51%: $27.88 for 2024/25.

If Waka Kotahi do not increase funding: $56.90 for 2024/25

Other projects we're proposing to reduce

Walking & cycling improvements

We’re proposing that to keep costs down, we stop budgeting for new walking and cycling connections, and safety improvements for walking and cycling.

Town centres infrastructure

We’re proposing to prioritise maintaining and renewing the existing infrastructure over doing any major upgrades.

Stage for Matamata Civic Centre

We’re proposing that to keep costs down, we remove this project from our work programme and maintain the level of service we currently provide.

Te Aroha Spa
We are proposing to continue to explore options to help Te Aroha capitalise on its rich spa history and thrive as a tourist destination.
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