Decision on Roading funding adjustments following Waka Kotahi NZTA shortfall

   Added 3 weeks ago

Following the announcement from Waka Kotahi New Zealand Transport Agency in August 2024 regarding funding allocations for the next three years, Ōtorohanga District Council has decided to take a pragmatic approach to address the shortfall in roading funding for the current and upcoming financial years. Council receives a portion of the funding needed for roading work from the government and a portion from local rates, known as 'local share'. Council has now made a decision on how to apply the unmatched local share for the 2024/25 year, while considering the potential for future Waka Kotahi funding opportunities in the subsequent years.

Ōtorohanga District Council had planned to spend $41.7M on roading over the first three years of its Long Term Plan (LTP) 2024-2034. However, the Waka Kotahi funding allocation for these years is $31M, leaving a $10.7M shortfall. Despite this reduction, Council is confident that key components of the roading programme are still achievable, as the previous three years saw $27.7M invested in the district's roading network.

At the Council meeting on 12 November 2024, Council resolved to:

• Apply a portion of the unmatched local share to selected capital and operating projects for the 2024/25 year.
• Retain a portion of the surplus funding in reserve, ready to support future Waka Kotahi funding opportunities, should they arise.
• Keep the community informed about the shortfall and the steps being taken to mitigate its effects.

While the immediate funding shortfall for the 2024/25 year is manageable, Council will review its budgets again in 2025/26 and 2026/27 years, and adjustments will be made as necessary.

Council remains committed to working with the community and ensuring that the roading network continues to meet the needs of residents, businesses, and visitors in the Ōtorohanga District.

For more information, please contact Mark Lewis, Group Manager Engineering and Assets, on 0800 734 000.