More govt funds for roads

Transport Agency chief executive Geoff Dangerfield said the changes were aimed at improving the system to match funding levels with each region's needs and ability to pay. Photo / Andrew Warner

There will be little change to the Rotorua District Council's roading programme after a Crown announcement that it would be increasing roading funding for local bodies in the region.

But, the recent funding announcement made by the New Zealand Transport Agency will see an extra $400,000 made available to the council in the 2015/16 financial year in the form of increased subsidies.

Earlier this week the New Zealand Transport Agency (NZTA) finalised its new Funding Assistance Rates (FAR) for transport investments, meaning it would be able to increase funding for more of Rotorua's local roading projects. Previously, the agency contributed an average of up to 50 per cent of necessary funding, which will gradually increase to 55 per cent, with the council responsible for the rest.

The council's Transport Solutions director Stavros Michael said an increase in the percentage of funding subsidy the council received for roading maintenance would not mean a change to roading work in the district "as our works programme is determined well in advance by a robust long-term asset management plan".

Mr Michael said the council currently received 47 per cent of the total cost of road corridor maintenance from the NZTA. In the next financial year (2015/16) this will increase to 51 per cent, to 52 per cent in 2016/17 and 53 per cent in 2017/18, with a signalled future target of 55 per cent.

Other districts that will see an increase are Kawerau and Opotiki, which will receive 75 per cent of funding required, Whakatane's funding has been upped to 64 per cent and Taupo will now be 52 per cent funded. "Transport Agency funding relates largely to the road corridor itself, and in addition to our share of those costs the council also has to cover the cost of other roading related components such as footpaths, seal extensions, etcetera," Mr Michael said. "In the 2015/16 year Rotorua District Council expects the new funding formula to mean an increased subsidy of approximately $400,000. How this is accounted for will be a decision for the council to make as part of its deliberations on the 2015-2025 Long Term Plan."

Transport Agency chief executive Geoff Dangerfield said the changes were aimed at improving the system to match funding levels with each region's needs and ability to pay. The funding rate does not apply to emergency roadworks or other exceptional circumstances with the increase taking effect from the 2015-18 National Land Transport Programme period.