ANNUAL REPORT
FOR THE 16 MONTHS ENDED 31 OCTOBER 2010
Table of Contents
MESSAGE FROM THE CHIEF EXECUTIVE ...... 5 ABOUT FRANKLIN COUNCIL DISTRICT...... 6 OUR VISION AND MISSION STATEMENT ...... 6 THE FRANKLIN DISTRICT COUNCIL & GOVERNANCE ...... 6 THE ORGANISATION STRUCTURE...... 9 COMMUNITY OUTCOMES ...... 10 AUDIT REPORT ...... 11 FINANCIAL RESULTS FOR THE YEAR...... 15 STATEMENT OF COMPLIANCE...... 16 STATEMENT OF COMPREHENSIVE INCOME...... 17 STATEMENT OF CHANGES IN EQUITY ...... 17 STATEMENT OF FINANCIAL POSITION...... 18 STATEMENT OF CASH FLOWS ...... 19 STATEMENT OF CAPITAL EXPENDITURE...... 20 RESULTS OF COUNCIL’S ACTIVITIES ...... 21 LEADING THE FRANKLIN DISTRICT...... 23 REPRESENTATION...... 24 STRATEGIC PLANNING AND POLICY ...... 26 GROWING THE FRANKLIN ECONOMY ...... 30 ECONOMIC DEVELOPMENT ...... 31 TOWN CENTRE MANAGEMENT ...... 35 MOVING AROUND FRANKLIN ...... 38 TRANSPORTATION...... 39 PROTECTING THE FRANKLIN ENVIRONMENT...... 44 EMERGENCY MANAGEMENT ...... 45 REGULATORY ...... 48 SOLID WASTE...... 53 STORMWATER ...... 56 LAND DRAINAGE...... 60 WASTEWATER ...... 61 WATER SUPPLY ...... 66 LIVING AND PLAYING IN FRANKLIN ...... 72 ARTS CULTURE AND HERITAGE ...... 73 COMMUNITY FACILITIES...... 76 OPEN SPACES AND AMENITIES...... 86 SUPPORT AND MISCELLANEOUS ...... 90 NOTES AND STATEMENTS SUPPORTING THE FINANCIAL RESULTS...... 92 GENERAL INFORMATION ...... 93 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES...... 93 ACCOUNTING POLICIES ...... 95 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS...... 105 NOTES TO THE FINANCIAL STATEMENTS...... 106 Note 1 - Revenue...... 106 Note 2a – Revenue Summary ...... 108 Note 2b – Expenses Summary ...... 109 Note 3 – Equity...... 110 Note 4 – Cash & Cash Equivalents ...... 111 Note 5 – Trade and Other Receivables ...... 112 Note 6 – Inventories...... 112 Note 7 – Other Financial Assets...... 113 Note 8 – Property Plant & Equipment 31 October 2010...... 114 Note 9 – Property Plant & Equipment 30 June 2009 ...... 115 Note 10 – Intangible Assets 31 October 2010...... 116 Note 11 – Trade and Other Payables ...... 116 Note 12 – Borrowings...... 118 Note 13 – Financial Instruments ...... 119 Note 14 – Remunerations of Chief Executive Officer ...... 123 Note 15 – Remuneration of Elected Members ...... 123 Note 16 – Cost of Redundancy...... 124 Note 17 – Related Party Disclosures ...... 124 Note 18 – Capital Commitments...... 124
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 3 Note 19 – Non Cancellable Contracts...... 125 Note 20 – Guarantees...... 125 Note 21 – Rating Rates Remissions ...... 125 Note 22 – Reconciliation of Net Cash from Operating Activities to Operating Surplus...... 126 Note 23 – Contingent Liabilities ...... 126 Note 24 – Capital Management...... 127 Note 25 – Events after Balance Date ...... 127 Note 26 - Transfer of Key Council Fixed Assets...... 128 APPENDIX 1 ...... 129 COMMUNITY OUTCOMES ...... 129
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 4 MESSAGE FROM THE CHIEF EXECUTIVE
This is the final annual report of Franklin District Council, one of eight former councils which were amalgamated to form the Auckland Council group on 1 November 2010.
This report tracks the performance of the council for the 16-month period 1 July 2009 to 31 October 2010 and reports progress made against its long-term council community plan (long- term plan) and annual plans.
Auckland Council, Watercare Services Limited and six new council controlled organisations assumed the responsibilities and powers held by the former city, district and regional authorities, with the addition of the Waikato region inheriting authorities in the case of Franklin Council.
Final annual reports have also been produced for:
• Auckland City Council • Auckland Regional Council • Manukau City Council • North Shore City Council • Papakura District Council • Rodney District Council • Waitakere City Council.
This document has been prepared on the assumption of continuity of activities and responsibilities under Auckland Council. No adjustment has been made in the financial statements to reflect the dissolution of the former councils.
With Mayor Len Brown, I acknowledge the work of the former Franklin District Council mayor, councillors and staff, who have left a strong foundation for us to build upon.
I look forward to producing the first annual report for Auckland Council later this year, which will report on our achievements for the period 1 November 2010 to 30 June 2011.
Doug McKay Chief executive
Doug McKay Chief Executive Auckland Council
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 5 ABOUT FRANKLIN COUNCIL DISTRICT
OUR VISION AND MISSION STATEMENT
Vision
Franklin – a country lifestyle in harmony with our environment.
Mission Statement
A diverse people living within defined, planned and serviced country towns and villages surrounded by countryside offering great living, working and recreational options, connected to cities by well developed transport links.
THE FRANKLIN DISTRICT COUNCIL & GOVERNANCE
The District is currently divided into four Wards: Waiuku-Awhitu, Pukekohe, Northern and Southern. Franklin serves a population of over 63,000 and covers a total land area of 219,000 hectares.
Council Our elected Council is made up of a Mayor (elected at large) and twelve ward councillors. Three councillors are elected from each ward.
Community Boards There are two Community Boards within the district. The Waiuku Awhitu Community Board serves the Waiuku-Awhitu Ward and the Onewhero Tuakau Community Board serves part of the Southern Ward. There are four elected members and one member of the Council representing each of the two boards. The boards are elected to advise the Council on matters of local interest and to deal with any matters that are delegated to them by the Council from time to time.
Chief Executive and Staff The elected Council employs the Chief Executive who in turn employs all Council staff. There are currently around 150 part time and full time staff employed responsible for over 20 separate activities / functions.
Franklin Arts Cultural Trust and Library Trust The Council delivered its arts and culture and libraries services to the community through funding agreements with the newly formed community trust. The Franklin Arts Cultural and Library Trust was formed by the amalgamation of the two trusts in August 2008. The trust was required to split its library and arts and cultural activities when the Auckland Governance decision was made.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 6 Enterprise Franklin Development Trust The Council delivered its economic development and district promotion activities to the community through funding agreements with its community partner Enterprise Franklin Development Trust.
Community Leisure Management Ltd The Council has a management contract with Community Leisure Management Ltd to operate the Aquatic and Recreation Centre and outdoor pools.
THE GOVERNANCE STRUCTURE The Council conducts its business in an open and transparent manner. The Council’s current committee structure initiates regular contact with ratepayers and residents to ensure the community has its say in the District’s future.
Council’s current governance structure consists of:
Full Council (Mayor and 12 councillors) have regular meetings (normally once a month) to consider items not delegated to the different committees. These include but are not limited to: Annual and Community Plan and budget setting, monthly and quarterly financial and performance monitoring and strategy setting.
From time to time, the Council will constitute a committee to deal with a specific project. The specific purpose committee is normally active for a specified period and ceases to exist once it has achieved the outcomes of its brief.
Strategy and Policy Committee Membership includes all 12 councillors and the Mayor. Its role is to consider matters of policy directed to it by the Council, the Forum, Activity and Monitoring, and Regulatory Committees including hearing matters of policy under the requirements of the Local Government Act 2002.
The Committee is also charged with developing strategic initiatives on behalf of the Council, for Council’s consideration and adoption, including, but not limited to: The Long Term Council Community Plan; Annual Plans; Activity and Asset Management Plans; District Plan Change development (excluding Hearings) and decision on requests for Plan Changes pursuant to Part II of Schedule 1 of the Resource Management Act 1991; Town Plans; and, Plans associated with specific areas of Council activity (i.e. Recreation Plan, Reserve Acquisition Strategy, etc). The Committee has delegated authority to determine matters of policy, (including Resource Management Policy), including hearing and consideration of any public submissions generated by the decision making requirements of the LGA 2002, other than those reserved to the Council only by the LGA 2002 or any other Act. The Committee is also delegated the authority to process matters of strategic intent through to final adoption, which is reserved to the Council.
Activity and Monitoring Committee Membership includes 7 councillors plus the Mayor. Its role is to consider matters directed to it by the Council, the Forum or management with respect to the Council’s Governance, Network Infrastructure, Environment Management and Community Facilities activities umbrella.
These include: Representation, Policy and Legal Advice, Communications and Consultation, Roading, Water, Wastewater, Stormwater, Land Drainage, Building, Solid Waste, Community Partnerships, Open Space Amenities, Community Centres, Pensioner Housing, Economic Development, Organisation Support (including Property Management), and Regulatory (except RMA matters which are dealt with by the Special Regulatory Committee).
This committee has full delegated authority for the Governance, Network Infrastructure, Environment Management and Community Facilities activities except for: Annual and Community Plan setting, monthly and quarterly report monitoring and strategy setting.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 7
Regulatory Committee Membership includes 5 councillors plus the Mayor. Its role is to carry out all regulatory responsibilities of the Council in relation to: • Any Government Act or Regulation, including but not limited to:
The Resource Management Act 1991 The Building Act 1991 The Health Act Dog Control Act Sale of Liquor Act Local Government Act 2002
• The District Plan • The Council Bylaws
Te Roopu Paehere (Standing Maori Community Committee) This standing Committee of Council has been established to provide opportunity for Maori to participate in Council decision making. Representation comprises of 7 Iwi representatives who are appointed by the Maori community, 2 Councillors and the Mayor and his alternate.
Audit Committee Membership includes the Mayor, the Deputy Mayor, Chairperson of the Activity and Monitoring Committee, one Councillor and an appointed member. Its purpose is to manage the Council’s relationship with its external auditors and to report and make recommendations to the Council on matters within its scope.
Community Boards The District has two community boards; Waiuku/Awhitu Community Board and Onewhero/Tuakau Community Board. Their membership includes four elected members and a councillor representative appointed from the ward that the Community Board lies within. Community Boards have responsibility for the following: • Board issues/recommendations to be included on the Council agendas for consideration; • attend ratepayer and other community meetings; • provide feedback to the Council on issues raised and meeting agenda items; • monitoring of action taken on issues/priorities be recommended to the Council; • provide a facilitation role in progressing Town Plans; • generate meetings to consult with their communities, in conjunction with Councillors, on the Community Outcomes; • analyse and provide formal feedback to the Council on the Franklin Community Plan and make submissions as required under the legislation; • provide feedback to the community on the Council decisions. Community Boards have a formal role in monitoring services in their areas and report issues/achievements to the Activity and Monitoring Committee.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 8 THE ORGANISATION STRUCTURE
The elected Council employs the Chief Executive, who in turn employs all Council staff.
Management Team Chief Executive Group Manager: Strategic Group Manager: Works and Services Group Manager: Environmental Services Group Manager: Corporate Services Group Manager: Community Facilities Communications Manager Human Resources Manager
Unit Managers lead the following service and support units: Transportation Water Services Open Spaces Property Policy and Strategic Planning District Planning Regulatory Planning Building Compliance Finance Democratic Services Customer Services Information Services
The Human Resources/Organisational Development Manager reports to the CE, Maori Liaison to the Group Manger Strategic, Safer Community Council to the Group Manager Environmental Services and Emergency Management and Special Projects to the Group Manager Community Facilities.
REPORT ON MAORI DECISION MAKING PROCESSES
Franklin District Council recognises its obligations to Maori under the Local Government Act 2002, the Resource Management Act, and various other Acts.
The Long Term Council Community Plan of 2006-16 determined that a standing committee should be raised to represent Maori in Council decision making. This Committee, (Te Roopu Paehere) met for the first time in December 2006. It has continued to meet on a regular basis and has actively participating in the Council’s decision making processes.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 9
COMMUNITY OUTCOMES What are the Franklin Community Outcomes? These are the things that the community believes are important for the long-term future of our District. They don’t belong to the Council; they belong to the community and were developed in consultation with the community.
Community Outcomes and the Four Well Beings It is considered that the four well beings; social, economic, environmental, and cultural are interconnected. The community outcomes generally align to, or address one or more of the well beings as well as contribute towards a sustainable community.
What are the Franklin Community Outcome statements? There are seven Franklin Community Outcome statements, which are defined in the Franklin District Council Community Plan 2009-2019 – Working together for our future (LTCCP 2009 - 19). They are:
1. Economically strong community 2. Easy to get around 3. Safe, healthy and active community 4. Cultural, social, vibrant, inclusive community 5. Special character, healthy, natural environment 6. Well-managed growth for quality living environment 7. An Educated and Enabled Community
Is the Council responsible for delivering all of the Franklin Community Outcome aspirations? No, the Franklin Community Outcomes are the community’s aspirations for the longer-term future, which means they are holistic and of a “big picture” nature. As such they will take a number of years to move towards and are part of a process of development and renewal. Achieving progress will require sustained action from the Council, other organisations and community groups. Part of this work is about how the Council and others can work together to measure progress and demonstrate achievement towards the outcomes. The Council has taken responsibility for making specific contributions toward the achievement of the Franklin Community Outcomes, as outlined within the LTCCP 2009 – 19.
Indicators for Community Outcomes Franklin District Council Community Plan 2009-2019 - Working together for our future outlined the new indicators by which we could more accurately measure progress in achieving Community Outcomes. These are reported for the first time.
How do the Council’s activities relate to Community Outcomes? The linkage between Council activities and Community Outcomes is expressed under each activity heading.
See Appendix 1 for a full list of community outcomes and the measurement of progress in achieving the outcomes.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 10
AUDIT REPORT
Audit Report To the readers of Franklin District Council’s financial statements and performance information for the 16-month period ended 31 October 2010
The Auditor-General is the auditor of Franklin District Council. The Auditor-General has appointed me, Bruno Dente, using the staff and resources of Deloitte, to carry out the audit on her behalf. The audit covers the financial statements, the performance information and the other requirements of Schedule 10 of the Local Government Act 2002 that are included in the report of Franklin District Council for the 16- month period ended 31 October 2010.
Franklin District Council’s financial statements, performance information and other requirements have been completed pursuant to the Local Government (Tamaki Makaurau Reorganisation) Act 2009.
Unqualified Opinion
In our opinion:
• The financial statements of Franklin District Council on pages 17 to 19 and 92 to 128 that are prepared on a dissolution basis:
comply with generally accepted accounting practice in New Zealand; and
give a true and fair view of:
• Franklin District Council’s financial position as at 31 October 2010; and
• the results of its operations and cash flows for the 16-month period ended on that date.
• The performance information of Franklin District Council on pages 22 to 91:
complies with generally accepted accounting practice in New Zealand; and
fairly reflects Franklin District Council’s levels of performance for the 16-month period ended 31 October 2010, including:
• the levels of performance as measured against the intended levels of performance adopted in Franklin District Council’s long-term council community plan; and
• the reasons for any significant variances between the actual performance and the expected performance.
• The report complies with the other requirements of Schedule 10 of the Local Government Act 2002 that are applicable to the report.
The audit was completed on the 24th of February 2011, and is the date at which our opinion is expressed.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 11
The basis of our opinion is explained below and refers to the financial statements being appropriately prepared on a dissolution basis due to the new local government structure for the Auckland region from 1 November 2010. In addition, we outline the responsibilities of Franklin District Council and the Auditor, and explain our independence.
Basis of Opinion
We carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards.
We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements, performance information and other requirements did not have material misstatements, whether caused by fraud or error.
Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements, the performance information and other requirements. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.
The audit involved performing procedures to test the information presented in the financial statements, the performance information and other requirements. We assessed the results of those procedures in forming our opinion.
Audit procedures generally include:
• determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data;
• verifying samples of transactions and account balances;
• performing analyses to identify anomalies in the reported financial and performance data;
• reviewing significant estimates and judgements made by Franklin District Council and Auckland Council;
• confirming year-end balances;
• determining whether accounting policies are appropriate and consistently applied;
• determining the appropriateness of the reported performance information within Franklin District Council’s framework for reporting performance; and
• determining whether all required disclosures are adequate.
We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and performance information. We evaluated the overall adequacy of the presentation of information in the financial statements, the performance information and other requirements. We obtained all the information and explanations we required to support our opinion above.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 12
The financial statements are appropriately prepared on a dissolution basis due to the new local government structure for the Auckland region from 1 November 2010
On 1 November 2010 the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Franklin District Council. Its functions, duties, and powers were transferred to Auckland Council, Hauraki District Council and Waikato District Council. As a consequence of that reorganisation all the assets and liabilities of Franklin District Council have vested in Auckland Council, Hauraki District Council and Waikato District Council and related controlled entities.
In forming our opinion, we considered:
• the accounting policy on pages 92 and 105 about the financial statements being prepared on a dissolution basis; and
• the disclosures regarding the effects of that dissolution in notes 2b, 14, 16, 25 and 26.
We consider the basis of preparation of the financial statements and the related disclosures to be appropriate to Franklin District Council’s circumstances.
Responsibilities of Franklin District Council and the Auditor
The Local Government (Tamaki Makaurau Reorganisation) Act 2009 required the report of Franklin District Council for the 16 month period ended 31 October 2010 to be prepared by Franklin District Council and completed by Auckland Council.
Therefore, Auckland Council is responsible to ensure that the report of Franklin District Council includes financial statements and performance information that comply with generally accepted accounting practice in New Zealand. The financial statements must fairly reflect the financial position of Franklin District Council as at 31 October 2010. They must also fairly reflect the results of operations and cash flows for the 16 month period ended on that date. The performance information must fairly reflect Franklin District Council’s levels of performance for the 16 month period ended 31 October 2010.
Auckland Council is also responsible to ensure that the report of Franklin District Council includes the other requirements of Schedule 10 of the Local Government Act 2002.
We are responsible for expressing an independent opinion on the financial statements, the performance information and the other requirements and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and section 99 of the Local Government Act 2002.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 13
Independence
When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants.
Other than the audit of Franklin District Council’s report and in carrying out the audit of amendments to its long-term council community plan, and the Auditor-General being the auditor of Auckland Council, we have no relationship with or interests in Franklin District Council.
Bruno Dente Deloitte On behalf of the Auditor-General Hamilton, New Zealand
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 14
FINANCIAL RESULTS FOR THE YEAR
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 15 STATEMENT OF COMPLIANCE
Responsibility
Auckland Council is authorised and required by the Local Government (Tamaki Makaurau Reorganisation) Act 2009 to complete and adopt an annual report for Franklin District Council. The Council and management of Auckland Council accept responsibility for the completion of the Financial Statements and the judgements used in them and hereby adopt the financial statements as presented. When completing the annual report and financial statements Auckland Council has relied on the system of internal control maintained by Franklin District Council and the confirmations received from management of Franklin District Council.
In the opinion of the Auckland Council the financial statements for the 16 months ended 31 October 2010 fairly reflect the financial performance, financial position and service performance of Franklin District Council.
Statement of Compliance
The Council and management of Auckland Council confirm that all the statutory requirements of section 98 of the Local Government Act 2002 have been met.
______Len Brown Douglas McKay MAYOR CHIEF EXECUTIVE February 2011 February 2011
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 16
STATEMENT OF COMPREHENSIVE INCOME FOR THE 16 MONTHS ENDED 31 OCTOBER 2010
Council Group Actual Budget Actual Actual Year Ended 30 Year Ended 30 16 Months to 31 October 2010 June 2009 June 2009 Notes $000 $000 $000 $000 Revenue Revenue from Activities 2a 28,965 29,915 23,395 23,313 Targeted Rates 2a 22,765 24,385 16,781 16,781 District Wide Rates 2a 41,684 41,546 29,905 29,905 Other Revenue 2a 24,597 12,373 13,338 13,338
Total Revenue 118,011 108,219 83,419 83,337 Expenditure Employee Benefit Expenses 2b 15,057 15,878 9,830 11,081 Depreciation and Amortisation 2b 21,493 22,312 14,565 14,847 Finance Costs 2b 8,068 7,657 4,773 4,773 Other Expenditure on Activities 2b 72,024 49,172 35,625 34,127
Total Expenditure 116,642 95,019 64,793 64,828
Operating Surplus 1,369 13,200 18,626 18,509
Other Comprehensive income Gains/(Loss) on Asset Revaluation 73,545 27,799 36,266 36,266 Total Other Comprehensive Income 73,545 27,799 36,266 36,266
Total Comprehensive Income 74,914 40,999 54,892 54,775
STATEMENT OF CHANGES IN EQUITY
Council Group Actual Budget Actual Actual 2010 2010 2009 2009 Notes $000 $000 $000 $000
Equity at the beginning of the year 1,149,099 1,107,397 1,094,207 1,095,740
Operating Surplus 3 1,369 13,200 18,626 18,509 Gains/(Loss) on Asset Revaluation 3 73,545 27,799 36,266 36,266 Total Comprehensive Income 74,914 40,999 54,892 54,775
Equity at the end of the year 1,224,013 1,148,396 1,149,099 1,150,515
Note: There are no group statements for 31 October 2010 as the Franklin Arts, Culture and Library Trust was disestablished on 30 June 2010. The library function was brought ‘in-house’ and an independent trust set up for arts and culture.
The Statement of Comprehensive Income and Statement of Changes in Equity should be read in conjunction with the notes and statements on pages 92 to 128 supporting the financial results.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 17
STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2010
Council Group Actual Budget Actual Actual 2010 2010 2009 2009 Notes $000 $000 $000 $000 Current Assets: Cash and Cash Equivalents 4 298 191 3,809 3,893 Trade and Other Receivables 5 7,360 7,735 7,706 7,715 Inventories 6 15 15 15 16 Other Financial Assets 7a 287 334 311 311 Total Current Assets 7,960 8,275 11,841 11,935
Non Current Assets: Property, Plant & Equipment 8, 9 1,324,829 1,237,261 1,229,559 1,231,126 Other Financial Assets 7b 857 906 902 898 Intangible Assets 10 955 1,217 1,282 1,286 Total Non Current Assets 1,326,641 1,239,384 1,231,743 1,233,310
TOTAL ASSETS 1,334,601 1,247,659 1,243,584 1,245,245
LESS Current Liabilities: Bank Overdraft 4 4,000 0 14,000 14,000 Trade and Other Payables 11a 7,173 14,709 14,652 14,778 Provisions 11b&c 968 229 235 235 Employee Benefit Liabilities 11d 1,082 949 922 1,041 Interest Rate Swaps 13 125 00 0 Borrowings 12 15,000 7,028 7,028 7,028 Total Current Liabilities 28,348 22,915 36,837 37,082
Non Current Liabilities: Provisions 11b&c 574 435 430 430 Employee Benefit Liabilities 11d 365 394 391 391 Interest Rate Swaps 13 801 0 242 242 Borrowings 12 80,500 75,519 56,585 56,585 Total Non Current Liabilities 82,240 76,348 57,648 57,648
TOTAL LIABILITIES 110,588 99,263 94,485 94,730
NET ASSETS 1,224,013 1,148,396 1,149,099 1,150,515
REPRESENTED BY EQUITY Retained Earnings and other reserves 388,656 386,549 387,287 388,703 Asset Revaluation Reserves 835,357 761,847 761,812 761,812
TOTAL EQUITY 3 1,224,013 1,148,396 1,149,099 1,150,515
The Statement of Financial Position should be read in conjunction with the notes and statements on pages 92 to 128 supporting the financial results.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 18 STATEMENT OF CASH FLOWS FOR THE YEAR 16 MONTHS ENDED 31 OCTOBER 2010
Council Group Actual Budget Actual Actual 2010 2010 2009 2009 $000 $000 $000 $000 Cash Flows from Operating Activities Receipts from Rates Revenue 76,468 64,427 52,280 52,280 Government Grants & Subsidies 17,028 14,913 12,614 12,614 Receipts from Other Revenue 24,387 21,299 17,570 17,680 Interest and Dividend Received 339 13 91 108 Goods and Services Tax (net) (771) 0 905 905 Payments to Suppliers and Employees (77,948) (60,385) (48,620) (48,427) Interest Paid (7,724) (7,071) (4,644) (4,644) Net Cash from Operating Activities (Note 22) 31,779 33,196 30,196 30,516
Cash Flows from Investing Activities Proceeds from Sale of Assets 7 07 7 Proceeds from Community Loans 302 218 286 286 Movement in Deposits 110 (1,827) 0 0 Purchase of Property, Plant and Equipment (57,356) (55,865) (45,905) (46,268) Purchase of Community Loans (212) (333) (166) (166) Net Cash used in Investing Activities (57,149) (57,807) (45,778) (46,141)
Cash Flows from Financing Activities Proceeds from Borrowing 39,000 31,700 17,324 17,324 Repayment of Borrowings (7,142) (7,000) (6,529) (6,530) Net Cash from Financing Activities 31,858 24,700 10,795 10,794
Net increase(decrease) in Cash held for the Year 6,488 89 (4,787) (4,831) Plus: Opening Cash and Bank (10,191) 102 (5,404) (5,276)
Closing Cash and Bank (3,702) 191 (10,191) (10,107) Represented by: Cash and Cash Equivalents 298 191 3,809 3,893 Bank Overdraft (4,000) 0 (14,000) (14,000) (3,702) 191 (10,191) (10,107)
The Statement Cash Flows should be read in conjunction with the notes and statements on pages 92 to 128 supporting the financial results.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 19 STATEMENT OF CAPITAL EXPENDITURE
16 Months to 16 Months to Council Capital Expenditure 2009 Actual 31 October 2010 31 October 2010 $000 $000 $000 Actual Budget Land Transport 18,821 21,515 15,709 Stormwater & Land Drainage 4,260 7,371 4,825 Wastewater 12,067 11,588 10,706 Water Supply 3,839 4,647 2,428
Town Centre Upgrades 3,369 4,059 3,740 Solid Waste 5 198 20 Community Facilities & Community Services 898 1,350 1,130 Open Spaces and Amenities 3,834 3,727 2,799 Property Management 411 780 448 Information Systems 247 653 242
Cost of Capital Works 47,751 55,888 42,047
Asset Renewal Reserves 11,322 13,558 10,277 Subdivision Contributions 11,921 14,457 9,976 Loan 17,769 19,923 15,669 Subsidy 6,322 7,524 6,019 Other Capital Reserves 417 426 106
Cost of Capital Works 47,751 55,888 42,047
See the Council the activities section of this report for further details of capital expenditure.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 20
RESULTS OF COUNCIL’S ACTIVITIES
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 21
LEADING THE FRANKLIN DISTRICT
These are the activities of the council that provide leadership. In particular it covers the operation of the elected Council and all of the committees and strategic planning and policy development.
REPRESENTATION STRATEGIC PLANNING AND POLICY
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 23
REPRESENTATION
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES Economically strong community Safe, healthy and active community Cultural, social, vibrant, inclusive community Special character, healthy, natural environment Well managed growth for quality living environment Educated and enabled community
The Representation activity covers the roles and functions of our elected representatives; the Mayor, Councillors and Community Board Members and includes civic events and citizenship ceremonies. Functions and costs provided for in this area include: • Elected Member salaries and expenses • Meetings of the Council, all committees of the Council and Community Boards • Representation of Franklin District on local and regional organisations • Advocacy for and on behalf of individuals and groups within the Franklin community • Civic events like Anzac Day and Citizenship ceremonies • Costs associated with the electoral process including triennial elections and reviews of representation arrangements
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Residents rating of Mayor and Councillors performance over last 12 months. Target 67% (Communitrak Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved – 66% 08/09 N/A Achieved Explanation: 66% of those who contacted the Mayor and (67%) Annual Measure Councillors over the last 12 months rate their performance as very/fairly good. While 85 % rate 07/08 Not performance as acceptable or very/fairly good. Achieved (65%)
Residents rating of accessibility of Councillors. Target 70% (Communitrak Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved – 73% New N/A Measure Explanation: 73% said they know how to make contact with Annual Measure Councillors and would do so.
The extent to which elected members consider community views: percentage of significant issues that have demonstrated consideration of community views. Target 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved – 100% New Achieved Measure Explanation: All significant matters appropriately considered community views.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 24
Percentage of council business items conducted in open for the purposes of accountability and transparency. Target 99%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved Achieved Explanation: More than 99% of council business was held in open session.
Te Roopu Paehere (TRP) members satisfaction that their committee provides an effective mechanism for engaging with Council (method to be confirmed. Likely to be by member rating). Target to be set 2009/10. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - 73% level of satisfaction. New N/A Measure Explanation: A survey was completed by members of TRP in Annual Measure which they rated various aspects of effectiveness. The results were ratified at a full TRP meeting on 22 June 2010.
COST OF SERVICES STATEMENT
Year Ended 16 Months to 31 October 2010 Activity REPRESENTATION 30 June 2009 $000 $000 Actual Budget Actual EXPENDITURE Council & Committees 837 1,250 638 Democracy 4,075 3,581 2,834 Te Roopu Paehere 112 124 87 Onewhero Tuakau Community Board 103 101 77 Waiuku Awhitu Community Board 111 99 88
TOTAL EXPENDITURE 5,238 5,155 3,724
EXPENDITURE Direct Costs 1,130 1,372 848 Overheads & Internal Charges 4,108 3,783 2,876 TOTAL EXPENDITURE 5,238 5,155 3,724
REVENUE Fees and Charges 23 70 3 Targeted Rate 177 176 159 General Rate & UAGC 4,769 4,769 3,633 TOTAL REVENUE 4,969 5,015 3,795
NET COST OF SERVICE 269 140 (71)
TRANSFERS TO / (FROM) RESERVES Subdivision Contributions Transferred 0 0 0 NET RESERVE TRANSFERS 29 (111) 23
(SURPLUS) / DEFICIT AFTER TRANSFERS 298 29 (48)
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 25
STRATEGIC PLANNING AND POLICY
This ‘Activity’ contributes to the following community outcomes Economically strong community Easy to get around Safe, healthy and active community Cultural, social, vibrant, inclusive community Special character, healthy, natural environment Well managed growth for quality living environment
Within the Strategic Planning and Policy Activity Group are all of the work streams that assist our Council to develop strategies and policy for the district.
These include: • Research, development, monitoring and review of strategic documents including the Long Term Council Plan • Research, development, and review of the Council policy and by-laws • Development, management and review of the Franklin District Plan • Providing policy officer support to Council working groups and regional committees and groups as required • Provision of policy advice to staff, management and the Council as required • Liaison with other planning authorities as required
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Reports to Council meet legislative requirements for decision making. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - 100% New Achieved - 100% Measure Explanation:
Deliver quality policy advice to Council to support responses to major challenges involving environmental, economic, political and social changes related to providing for economic and demographic growth within the District.
Growth is accommodated in line with the District Growth Strategy (DGS). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Explanation: Policy and design advice that deals with Franklin’s Measure Achieved growth areas is provided to ensure that consents remain consistent with intent of the DGS.
Plan changes provide 366 ha for additional business use over 10 years
Tuakau: Release of 80 ha of business land to be complete by 2011/12. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved N/A N/A Explanation: Project complete. 75 ha (net) has been rezoned as Project completed business land.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 26
Waiuku: Release of 50 ha of business land to be complete by 2011/12. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: On track to be achieved 2011/12 N/A On track for completion early 2011 Explanation: Plan Change 23 was notified on 3 July 2007. The public hearing on submissions was held from 29 April 2009 to 1 May 2009. The Council decision was notified on 2 July 2009. Three appeals have been received - one has been resolved and the other two are being progressed through negotiations.
Pokeno: Release of 70 ha of business land to be complete by 2010/11. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: On track for completion by June 2011 N/A On track for completion by early 2011 Explanation: Pokeno Structure Plan and Plan Change 24 were notified in December 2008. The hearing was conducted in August 2009, and the decision from the commissioner’s report has been released. Five appeals were received - two were resolved and the remaining appeals are currently being progressed through negotiations with the expectations they also will be resolved.
Paerata: 156 ha of business land to be released by 2011/12. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: At risk – Delayed N/A Delayed Explanation: After a project review Council decided to Council has prepared concentrate initially on Paerata South. Paerata a Concept Plan for North land has been flagged as a Stage 2 Greater Pukekohe, project for the future Auckland Council, including Paerata, potentially in the 2012-2015 Long Term Plan. which will provide an The Pukekohe North Catchment Management overarching framework Plan (includes Paerata South) has been for future development resolved and further stormwater investigations of this area, among and works are being carried out in Paerata others. South.
Consistency with the national Urban Design Protocol to which Franklin District Council is a signatory pursuant to its responsibilities under the Resource Management Act 1991 and the Local Government Act 2002 Percentage of consents monitored (25% sample) consistent with design guide (adopted 2009). Target for 2010/11 is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - 100% New Achieved Measure Explanation: Franklin’s Design Guide, prepared in the light of Franklin’s signing up to the national urban design protocols is for residential design only, although good urban design approaches are also applied to plan changes relating to other zones and activities. Consents issued to date meet this requirement except in the circumstance where pre-existing development has made the design guides impractical to achieve. Plan Changes are progressed in a way that is consistent with the Design Guide.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 27
Statutory documents and reports delivered on time in accordance with the agreed work programme Review of District Plan. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved New Not Achieved Measure Explanation: Legislation requiring commencement of a full review has been repealed. Council has undertaken only those District Plan changes it considers necessary to remedy gaps and administration problems until the Auckland Council and Waikato and Hauraki Districts) develop new District Plans. District Plan issues are being identified for the attention of the Auckland, Waikato and Hauraki Councils to assist in transition, e.g. heritage strategy, the remedial plan change, and growth issues related to Pukekohe township.
Annual Plan and Annual report. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved in accordance with Auckland Governance N/A legislation. Explanation: The Annual Plan for Franklin District Council Annual Report cannot covered from 1 July 2010 to 31 October 2011. It be completed until was adopted at the May Council meeting and after 31 October. ratified by the ATA in June 2010. The Annual Report for 2009/10 year will be adopted by the new Auckland Council.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 28
COST OF SERVICES STATEMENT
Activity STRATEGIC PLANNING & POLICY 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE Strategic Planning & Policy 992 1,124 759 Resource Management Planning 3,512 3,492 2,114
TOTAL EXPENDITURE 4,504 4,616 2,873
EXPENDITURE Direct Costs 3,739 3,863 2,335 Overheads & Internal Charges 765 753 538
TOTAL EXPENDITURE 4,504 4,616 2,873
REVENUE Fees and Charges 139 15 454 Grants and Subsidies 11 0 0 General Rate & UAGC 4,012 4,011 2,618 TOTAL REVENUE 4,162 4,026 3,072
NET COST OF SERVICE 342 590 (199)
TRANSFERS TO / (FROM) RESERVES Other Transfers to/(from reserves) (185) (360) (210) NET RESERVE TRANSFERS (185) (360) (210)
(SURPLUS) / DEFICIT AFTER TRANSFERS 157 230 (409)
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 29
GROWING THE FRANKLIN ECONOMY
Both of the activities in this group support economic development in the District.
ECONOMIC DEVELOPMENT TOWN CENTRE MANAGEMENT
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 30
ECONOMIC DEVELOPMENT
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Economically strong community Safe, healthy and active community Cultural, social, vibrant, inclusive community Well managed growth for quality living environment Educated and enabled community
The Council has provided for the Economic Development activity by way of a strategic partnership with the Enterprise Franklin Development Trust (EFDT). EFDT was established in 2003 from an amalgamation of organisations which had all provided the district with some Economic Development activities. Since the formation of the Trust a coordinated and more strategic approach has been evident.
EFDT is working towards the following goals: • To grow and retain existing business in Franklin and attract new business and industry to Franklin • To protect the values and identity of Franklin District • To facilitate the development of thriving town centres • To increase visitors to Franklin • To facilitate, encourage and celebrate innovation and excellence.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
7,500 new jobs created by 2021 (cf 2007). Report progress. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: At risk - New Remains at risk Measure Explanation: Due to recession the district has seen an increase in unemployment noted in 2009 and continuing into 2010. January 2010 had 18550 employed within Franklin. 650 less than 2008.
50% of residents work in Franklin. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2006 – N/A achieved Explanation: Based on 2006 census 51% of Franklin residence work in Franklin. Next result due in 2011.
Local business confidence compared with national trends shows similar levels of confidence in the Franklin economy. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Local and National confidence levels both reflect a Results Survey due end of Oct drop in business confidence. But still on positive generally 2010. side. slightly above national Explanation: March 2010 survey shows 60.4% of Franklin firms average. felt that local business conditions will remain the same, 18.9% felt things will improve and 20.8% believed that conditions would deteriorate.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 31
Support the implementation of Franklin District’s growth and economic strategies.
Businesses and investors who receive: advice; business services; and support from EFDT indicate via survey that as a result of EFDT’s intervention their needs were met and business capability increased. Target 70%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. New Achieved Measure Explanation: Project Managers report at monthly meetings. In Project Managers have latest feed back 100% of businesses receiving reported 99% support said their needs were met. Previous satisfaction from telephone surveys gave a satisfaction level of businesses they have 70%. worked with. Survey planned delayed due to transfer of Trust.
Businesses and investors receive advice and a range of business services and support. Target is 1000 businesses and/or individuals interact with EFDT for information, business advice, support or mentoring per year. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Achieved Measure Explanation: Figures for full year Approx 2400 businesses • Between 2100 and 2400 businesses receive receive the Franklin Focus the Franklin Focus on a regular basis on a regular basis. • 1395 people attended business network People attending business events network events: 1. CTCW BB - July 32, • 283 people attended business growth courses August 37, Sep 41 • 56 business people received business 2. Business Leaders Forum assessments 7 Sep - 25 • 246 developers and landlords attended 3. Business after Five 16 development forums Sep - 53 • 4448 businesses and individuals who have had an interaction with EFDT resulting in information, assistance and support People attending business growth courses: 1. Marketing workshop 20 July - 12 Percentage of respondents to the retail business health check undertaken in Pukekohe, Waiuku, and Tuakau that indicate high levels of confidence in the vitality and health of their town centre. Target 70%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 74% New N/A Measure Explanation: Retail survey conducted in March 2010. Next retail survey - 120 retailers surveyed Pukekohe being conducted in October 2010. - 40 retailers surveyed Waiuku National core retail - 20 retailers surveyed Tuakau sales were flat. Retail Next survey in Oct 2010. in Franklin is likely to be the same.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 32
Percentage performance achieved by Franklin’s two i – SITES in the VIN mystery shopper accreditation. Target is 75%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: 7% increase in numbers visiting i – Sites. VIN 2009 visitors N/A survey no longer conducted – 54,589 Explanation: 58,416* people visited the Bombay and Pukekohe i – Sites were handed i-SITES, an increase of 3827 over the previous over to Auckland 1 year. Sep 2010
Number of significant events supported annually that support the Districts rural identity. Target 2. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: Pukekohe Express cycling event and events in No major events Hampton Downs provided opportunities, from planned for this period. which further regional leverage is gained. Planning for events based on theatre productions and the Spring and Onion Festival in 2011.
Franklin gains positive economic benefits from events, with an increase in event support and participants visiting business centres. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Yes Measure Explanation: • Glenbrook Vintage Railway themed EFDT continues to weekends events support organisers of • Karaka Vintage Day (March) festivals and events and has been involved • Wrights Water Gardens Lotus Festival (Jan) with RWC 2011 on • A&P Show (Feb) behalf of the Franklin District – supporting • 3 Community Christmas Parades (Dec) towns • Franklin Arts Festival (Sep)
• Spookers attraction Full report on Projects • The NZ Festival of Motor Racing Hampton included in EFDT’s Downs. report to the last All such events make a contribution to the local Council meeting 23 economy through several channels including Sep 2010. extended stays; dining; service station use; retail and return visits. (Accommodation and retail figures are tracked during these events).
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 33
Undertake cluster development initiatives focusing on equine, food industry, and motorsport. The initiatives to establish Clusters and Public/Private initiatives and the effects of these initiatives are reported in quarterly reports to Council. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved – All projects reported to Council each New Achieved quarter. Measure Explanation: Progress on the following projects was reported to Full report on Projects Council’s satisfaction each quarter: included in EFDT’s • Broadband Initiative report to the last Council meeting 23 • Tuakau Business land Sep 2010. • Equine Project • Waiuku Heritage Project • Motorsport • Freight / Business Transport Study • Horticulture Sector Support • Visitor experience • Franklin Country website marketing Quarterly reports detail actions taken on each project.
COST OF SERVICES STATEMENT
Activity ECONOMIC DEVELOPMENT 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE Economic Development 2,103 2,027 940
TOTAL EXPENDITURE 2,103 2,027 940
EXPENDITURE Direct Costs 2,068 2,020 919 Overheads & Internal Charges 35 7 21
TOTAL EXPENDITURE 2,103 2,027 940
REVENUE Targeted Rate 879 865 609 General Rate & UAGC 506 506 400 TOTAL REVENUE 1,385 1,371 1,009
(SURPLUS) / DEFICIT AFTER TRANSFERS 718 656 (69)
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 34
TOWN CENTRE MANAGEMENT
COMMUNITY OUTCOMES
Economically strong community Easy to get around Safe, healthy and active community Cultural, social, vibrant, inclusive community Special character, healthy, natural environment Well managed growth for quality living environment
Town Centre Management is a project based activity which is charged with keeping our town centres attractive and up to date. To meet the changing needs of Franklin, capital investment and maintenance work is needed in the Pukekohe, Tuakau and Waiuku town centres. This will enhance economic development by making town centres attractive to businesses and lively places for retail, work and play.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Percentage of residents that agree that Franklin town centres are attractive and well maintained. Target is 80% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Measured. New N/A measure Explanation: This measure was not added to the annual Annual Measure Communitrak survey due the reorganisation of local government in Auckland.
Programme of Town Centre redevelopments progressed – Pukekohe. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - remains on track. 2009 – N/A Achieved Explanation: Upgrade of Seddon St design work underway. Annual Measure Work on two roundabouts has been advanced to match with roading developments. CCTV feasibility study has been tendered. Stage 5 a (Eastern Gateway) was deferred by LTCCP 2009- 19 to following year.
Programme of Town Centre redevelopments progressed – Waiuku. (Target 2009/10: Complete Lower Queen, Bowen Sts and Town Square). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - On track. 2009 - N/A Achieved Explanation: Contract commenced early January 2010. Annual Measure
Programme of Town Centre redevelopments progressed – Tuakau. (Target: Nil for 2009/10). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: No works for this year. N/A N/A Explanation: Work was deferred by LTCCP 2009-19. Due to Annual Measure recommence 2012/13 yr.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 35
Average rating achieved by cleaning and maintenance contractor across a broad range of performance standards (e.g.: cleanliness of litter bins, presence of weeds, and soiling of walkway canopies) (Target: 4 out of 5). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – N/A Achieved Explanation: The cleanliness and maintenance of the town 2008 – Not Annual Measure centres is contracted to Eco Maintenance. Their achieved performance receives a community review every six months.
COST OF SERVICES STATEMENT
Activity TOWN CENTRE MANAGEMENT 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE
Pukekohe Town Centre 1,250 1,317 758 Waiuku Town Centre 499 779 257 Tuakau Town Centre 303 336 230 Village Maintenance 29 33 2
TOTAL EXPENDITURE 2,081 2,465 1,247
EXPENDITURE Direct Costs 829 1,001 524 Overheads & Internal Charges 81 118 77 Depreciation 254 393 114 Internal Interest 917 953 532
TOTAL EXPENDITURE 2,081 2,465 1,247
REVENUE Fees and Charges 1 0 0 Targeted Rate 2,155 2,160 1,326 General Rate & UAGC 573 573 287 TOTAL REVENUE 2,729 2,733 1,613
NET COST OF SERVICE (648) (268) (366)
TRANSFERS TO / (FROM) RESERVES Debt Repayments 268 268 131 Other Transfers to/(from reserves) 375 0 236 NET RESERVE TRANSFERS 643 268 367
(SURPLUS) / DEFICIT AFTER TRANSFERS (5) 0 1
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 36
Capital Works Programme
16 Months to 16 Months to 2009 31 October 2010 31 October 2010 Actual Capital Works $000 $000 $000 Actual Budget
Town Centre Upgrades 3,369 4,059 3,740
Significant Capital expenditure projects are - Actual Budget Actual
Pukekohe Town Centre 1,330 1,990 1,881 Waiuku Town Centre Redevelopment Stg 1 1,958 1,906 1,859 Pukekohe Town Centre Capital Renewal 81 150 0 Other capital works 0 13
3,369 4,059 3,740
The Pukekohe Town Centre upgrade is expected to be completed early 2011.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 37
MOVING AROUND FRANKLIN
While traditionally roading has been a major stand alone activity, a range of activities relate to transport.
TRANSPORTATION
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 38
TRANSPORTATION
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES Economically strong community Easy to get around Safe, healthy and active community Cultural, social, vibrant, inclusive community Well managed growth for quality living environment Educated and enabled community
The Transportation Activity is structured to provide for an integrated transport network rather than a road network. This means recognition is given to passenger transport, walking and cycling as integral parts of the long term transport requirements for the District.
Functions and statistics of this activity area include: • Asset management • 1,624kms of road • Valued at over $600 million excluding land value • 1389 kms sealed, 235 kms unsealed • 209 bridges, 2656 streetlights, 204.3kms kms footpaths, 4389 culverts, 12 car parks • Network administration • Planning for the future • Contract management • Road safety management • Passenger transport planning • Implementation of the walking and cycling strategy.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
% residents satisfaction with footpaths in the district. Target is > 78% (Communitrak Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved – 82% 2009-81% N/A 2008-78% Explanation: Significantly above national average. Annual Measure
% residents satisfaction with roads in the district. Target is > 65% (Communitrak Survey) Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - 75%. 2009-68% N/A 2008 65% Explanation: A significant increase in level of satisfaction. Annual measure
Percentage of travel on smooth sealed roads. Target is > 90%. Year result to 30 October 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - 96% of travel on smooth roads (June 2009 – N/A 2010 report) Achieved 2008 - Explanation: Survey was conducted in March 2010. Achieved Annual Measure (no new results to report for October)
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 39
Number of reported injury crashes where road factors were a contributing factor. (5-year moving average – excluding State Highways). Target is less than 20. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved – 29 (to 31 Dec 2009) 2009-29 N/A 2008-28.8 Explanation: A very high number in 2006 (36), followed by 2007-27.8 Annual Measure another high record in 2007 (38), has largely contributed to this high average. Other years were 2005-21, 2006-36, 2007-38, 2008-26, and 2009- 29.
Number of crash cluster sites undergoing remedial measures each year (Target for 2009/10 is 4). Year result to 30 October 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved - Three cluster sites had significant New N/A work in 2009/10. Measure Explanation: Sites addressed in 2009/10 were Annual Measure Belgium/Golding/East St intersection; Harris/John St intersection (both had round-a-bouts installed) and a section of Onewhero - Tuakau Bridge Road that had a length of guardrail installed.
Percentage increase in the no. of children walking to school following the implementation of a school travel plan. Target for 2009/10 is10%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Unknown New N/A Measure Explanation: This survey is carried out in term 4. Results will Annual Measure not be available for 2010 until late November 2010.
Percentage of secondary and intermediate students cycling to school. Target for 2009/10 is 3%. Year result to 30 October 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved New N/A Measure Explanation: The “Manual Cycle Monitoring in the Auckland Annual Measure Region – Franklin District” report shows 1% of secondary and intermediate students cycling to school in the survey conducted in March 2010. (no new results report for October)
Usage of Pukekohe Park n ride facility (e.g. parked cars) - baseline measure to be set. Year result to 30 October 2010 History 1 Jul - 31 Oct 2010 Result: Under development. New N/A Measure Explanation: The survey includes vehicles parked on Station Annual Measure Road, Carlton Road and Birch Road. The highest number surveyed to date was 163 (March 2010) and the lowest was 95 (March 09). Previous highest count was 127 (Feb 09). Latest count was 136 (Sept 2010).
Provision of a well maintained transport network for all present and future road users Length of sealed roads undergoing pavement renewals each year. Target is 21 Kms. Year result to 30 October 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved -15.528km of sealed road renewed New N/A in 2009/10 Measure Explanation: The length of road renewal continues to run below Annual Measure the target due to budget constraints. (no new results report for October)
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 40
Average roughness of sealed roads in network (NAASRA). Target for 2009/10 and 2010/11 is <100 thereafter <105. Year result to 30 October 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - Average roughness of sealed roads 93 2009 – N/A NAASRA (as reported June 2010) 91NASSRA Explanation: This has slightly increased from 91 reported last Annual Measure year. This is a minor increase, and is still below the target. Minor increase can occur if measures are taken before programmed work is completed by the maintenance contractor, and do not always indicate a decline in service. A rolling average over a number of years should be analysed to see if in fact the roughness is increasing. (no new results report for October)
Length of sealed roads undergoing resurfacing each year. Target is 134 km. Year result to 30 October 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved - 132km of road resurfaced in New N/A 2009/10. Measure Explanation: An increase in allocated budget to resurfacing has Annual Measure allowed us to come close to achieving the annual target.
Length of footpath undergoing resurfacing or replacement each year. Target is >3.5 km. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: 1/6/2009 – 30/6/2010 – 3.2km –New N/A Measure Explanation: The target length of 3.5km was not achieved in the Annual measure twelve months to 30/6/2010, though this was nearly achieved. Some additional works were carried out on vehicle crossing upgrades and surface grinding from this budget, which is not included in this measure.
Length of metal roads undergoing seal extension each year. Target for 2009/10 and 2010/11 is 3.5 km, thereafter 3 km. Year result to 30 October 2010 History 1 Jul - 31 Oct 2010 Result: Achieved -10.3km of unsealed road were sealed in –New N/A 2009/10. This is broken down with 1.4km district Measure wide and 8.9km in Onewhero (using the targeted rate). Explanation: A significant amount of work was carried out in Annual Measure Onewhero using the targeted rate, and making use of very competitive construction costs. (no new results report for October)
Provision of a safe transport network for all road users. Number of road safety education projects or initiatives undertaken each year. Target is 4. Year result to 30 October 2010 History 1 Jul - 31 Oct 2010 Result: Achieved -10 carried out in 2009/10. –New N/A Measure Explanation: Annual inventory assessment was undertaken in Annual Measure June 2010. (no new results report for October)
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 41
Number of new school travel plans undergoing development. Target is 2. Year result to 30 October 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - 2 new schools joined the programme in New N/A 2009/10. Measure Explanation: School travel plans current underway at Valley Annual Measure School and Harrisville School. Pukekohe Hill School and Patumahoe School formally joined the programme in 2009/10. (no new results report for October)
COST OF SERVICES STATEMENT
Activity TRANSPORTATION 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE Administration, Depreciation, Interest 15,548 15,600 10,527 Network Management 1,666 1,484 1,209 Road, Bridge & Footpath Maintenance 7,506 7,556 5,413 Safety Maintenance 2,604 2,866 1,969
TOTAL EXPENDITURE 27,324 27,506 19,118
EXPENDITURE Direct Costs 12,839 12,876 9,225 Overheads & Internal Charges 1,116 1,136 604 Depreciation 11,160 11,384 7,917 Internal Interest 2,209 2,110 1,372
TOTAL EXPENDITURE 27,324 27,506 19,118
REVENUE Fees & Charges 673 789 614 Grants and Subsidies 13,668 14,697 10,808 Targeted Rate 0 0 278 District Wide Rate 14,991 14,965 9,867 Development & Financial Contributions 2,667 2,736 1,181 Vested Assets 3,425 1,061 3,301 TOTAL REVENUE 35,424 34,248 26,049
NET COST OF SERVICE (8,100) (6,742) (6,931)
TRANSFERS TO / (FROM) RESERVES Subdivision Contributions Transferred 2,667 2,736 1,181 Asset Vested in Council 3,425 1,061 3,301 Debt Repayments 622 621 377 Other Transfers to/(from reserves) 2,221 2,321 2,051 NET RESERVE TRANSFERS 8,935 6,739 6,910
(SURPLUS) / DEFICIT AFTER TRANSFERS 835 (3) (21)
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 42
Capital Works Programme
16 Months to 16 Months to 2009 31 October 2010 31 October 2010 Actual Capital Works $000 $000 $000 Actual Budget
Transportation 18,821 21,515 15,709
Significant Capital expenditure projects are - Actual Budget Actual
Pukekohe East/Belgium Road Intersection 524 512 0 Project Management 388 310 350 Pavement Rehabilitation 3,289 3,605 2,559 Resealing Programme 4,767 4,411 4,096 Professional Services 498 462 361 Harris/John/Edindurgh Street Reconstruction 317 350 0 School Travel Plan Infrastructure 102 100 0 Tuakau Bridge Structural Work 691 320 0 Stadium Drive Intersection Improvement 124 0 0 Minor Safety Projects 1,011 1,127 1,296 Seal Widening Programme 400 1,563 767 Hamilton Bridge 419 377 0 Yates Bridge 257 108 0 Manukau Road Intersection Improvement 799 530 0 Design Crosbie Rd to Nelson St 106 0 0 Seal Extension (District Wide) 212 220 177 Seal Extension (Onewhero) 1,438 1,469 365 Kerb & Channel Upgrading Programme 172 200 289 Subdivision Improvements 153 300 0 Unsealed Road Improvements 181 200 253 Rural Pedestrian Facilities 186 124 0 Drainage Replacements 342 364 310 Bridge Replacement 232 200 0 Pavement Smoothing 548 2,564 1,413 Footpath Renewals 358 467 374 Other capital projects 1,307 1,632 3,099 18,821 21,515 15,709
A reduction in the subsidy available from the New Zealand Transport Agency resulted in a reduction in the pavement rehabilitation, pavement smoothing and seal widening programmes.
Significant asset additions & replacements for the 16 months to 31 October 2010 include:
Seal Widening & Seal Extension $2,500,000 Assets vested in Council (subdivisions) $3,400,000 Pukekohe East/Belgium Road Intersection $1,200,000 Pavement Rehabilitation & Pavement Smoothing $11,800,000
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 43
PROTECTING THE FRANKLIN ENVIRONMENT
The Activities grouped together under this heading relate to our environment in the widest sense and range from regulatory functions like: dog control and managing building permits and inspections to provision of civil defence and rural fire force functions.
EMERGENCY MANAGEMENT REGULATORY SOLID WASTE STORMWATER LAND DRAINAGE WASTEWATER WATER SUPPLY
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 44
EMERGENCY MANAGEMENT
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Safe, healthy and active community
This part of our operation covers the provision of Civil Defence, Emergency Management and Rural Fire functions for our community. The Civil Defence Emergency Management portion involves planning and training so that Franklin is prepared to cope with an emergency in the District and is linked with both the regional and national CDEM networks. The Rural Fire component supports Rural Fire parties based in Kaiaua, Onewhero, Hunua, Waiau Pa, and Awhitu. Each force has a station and fire fighting appliances and equipment is manned by trained volunteers who are supported by a Principal Rural Fire Officer who is employed by the Council.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
The District has the capability to respond to rural fire events.
Percentage of rural fire fighters who meet national standards (National Rural Fire Safety Authority). Target is 95% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: 95% meet national standards. Annual Measure
All four rural fire forces adequately equipped. Target is a yes from Group Manager Community Facilities. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. New N/A Measure Explanation: Focus is on ensuring that all fire forces remain Annual Measure adequately equipped through maintenance and renewal. (Note Waiau Pa Rural Fire Force was transferred to New Zealand Fire Service in July 2009).
Response time for vegetation fires is within half hour of call out. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: This is the “every callout” target. To date this has Annual Measure been met.
Provision of early warning systems, signage, and community education to improve emergency preparedness.
Fully staffed and operational Emergency Management Service Centre with all positions under the Coordinated Incident Management (CIM) model filled and training undertaken. Target is 75% for 2009/10 thereafter 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Achieved Measure Explanation: EM centre is now fully staffed and trained with August Training leads having attended the CIMS 4 course. session conducted.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 45
Tsunami early warning system in place and tested in Kaiaua and Port Waikato. Target is to be established by end of 2009/10 Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: No early warning system will be installed until New N/A 2010/11. Measure Explanation: Work on warning systems is being undertaken Annual Measure nationally and it is expected to provide information on the type of system suitable for these sites. Both areas will be outside Auckland Council area.
Public are regularly provided with updated information on location of emergency assembly points and what to do in an emergency event via Council bulletins and website. Target is yes assessment from Group Manager Community Facilities. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. New Achieved Measure Explanation: Website regularly updated and articles appear in Articles in regular each edition of bulletin. bulletin.
Residents’ agreement they have enough information to understand how they can help themselves in an emergency. Target is 75% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Measured. New N/A measure Explanation: This measure was not added to the annual Annual Measure Communitrak survey due the reorganisation of local government in Auckland.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 46
COST OF SERVICES STATEMENT
Activity EMERGENCY MANAGEMENT 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE Civil Defence 152 221 126 Rural Fire - FDC 289 312 227
TOTAL EXPENDITURE 441 533 353
EXPENDITURE Direct Costs 416 493 337 Overheads & Internal Charges 25 40 16
TOTAL EXPENDITURE 441 533 353
REVENUE Fees and Charges 60 48 51 Grants and Subsidies 5 0 4 Targeted Rate 27 27 20 General Rate & UAGC 458 458 319 TOTAL REVENUE 550 533 394
NET COST OF SERVICE (109) 0 (41)
TRANSFERS TO / (FROM) RESERVES Other Transfers to/(from reserves) 69 0 34 NET RESERVE TRANSFERS 69 0 34
(SURPLUS) / DEFICIT AFTER TRANSFERS (40) 0 (7)
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 47
REGULATORY
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Economically strong community Easy to get around Safe, healthy and active community Special character, healthy, natural environment Well managed growth for quality living environment Educated and enabled community
Building Services The function is largely driven by legislation in the form of the Building Act 2004 (the Act) and includes issuing Project Information Memoranda (PIM), managing the Building Consent process from issuing consents through the inspection process to completion, and enforcing the requirements of the act and the Building Regulations 1992. Other functions are: issuing code compliance schedules, auditing building warrants of fitness, inspecting dangerous and unsanitary buildings, inspecting unauthorised building work, inspecting swimming pool fencing and giving building control advice to the public.
Planning Control This part of the activity is primarily involved with the processing of Resource Consent applications; this includes both land use and subdivision consent applications. Applications are made under the terms and conditions of the Franklin District Plan and are considered under the terms of the plan and the Resource Management Act 1991 (the Act). Members of this team also provide planning advice to the public, officer support to the Regulatory Committee and dealing with appeals to the Environment Court made under the Act.
Animal Control The Dog Control Act 1996 with amendments and the Council’s bylaws regarding dogs and stock are the drivers for this function with the following specific activities a major part of the work: • Dog registration • Attending to dog complaints • Education of dog owners • Attending to wandering livestock • Operating dog and livestock pounds.
Enforcement and Monitoring This function takes care of the Council’s enforcement and monitoring responsibilities under a wide variety of pieces of legislation including: • Improve, promote and protect public health under the Health Act 1956 • Licensing and inspection of food premises under the Health Regulations 1966 • Licensing and monitoring of premises under the Sale of Liquor Act 1989 • Enforcement for the locations and signage of brothels under the Prostitution Reform Act 2003 • Monitoring Resource Consents • Enforcement of breaches of the Act, Franklin District Plan and Franklin District Council Bylaws • Enforcement of hazardous substances legislation under the Hazardous Substances and New Organisms Act 1996 • Enforcement of the number and location of gaming machines under the Gaming Act 2003 • Verification of new and existing land hazards.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 48
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Building Consent Authority accreditation and registration status maintained and reviewed bi-annually. Target is a yes. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. New Achieved Measure Explanation: IANZ accreditation continues to 30/10/2010. IANZ accreditation continues to 30/10/2010.
Percentage of Project Information Memoranda applications processed within 20 working days. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: 99.9% 2009 – Achieved (to 30/09/10) 99.9% Explanation: All but one of the 928 applications were processed All (100%) of the 114 within 20 working days. Average processing time applications were was 2.82 days. processed in 20 working days. Average processing time was 2.72 days.
Percentage of building consent applications processed within 20 working days. Target is 100% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - 100% 2009 – Achieved (to 30/09/10) 98.8% Explanation: All of the 1,404 applications were processed within All (100%) of the 339 20 working days. Average processing time was applications were 4.39 days. processed in 20 working days. Average processing time was 3.53 days.
Percentage of Code Compliance Certification applications processed within 20 working days. Target is100% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved - 99.62% 2009 – Achieved 98.5% (to 91.4% 30/09/10) Explanation: Out of a total of 1,618 CCC applications, 6 were All but six of the 399 not processed in 20 days. That was due to applications were applicants failing to provide required information processed within 20 until or after due date. Average processing time working days. Average was 5.72 days. processing time was 6.11 days.
Number of complaints about District Plan or resource consents as a percentage of the population. Baseline to be set 2009/10. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: 148 complaints received = 0.23% New N/A Measure Explanation: This is the figure that should be treated as the Annual Measure baseline. 148/64,200 estimated population June 2009.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 49
Public satisfaction with control of dogs. Target > 70% (Communitrak Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved – 85% 2009 – 75% N/A 2008 – 77% Explanation: This is a significant improvement on the previous Annual Measure year.
Provision of quality regulatory services in accordance with relevant building, resource management, liquor, and public health statutory requirements of relevant legislation.
Number of resource consents monitored monthly. Target is 40. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 519 monitored year to date. Average 2009 – Achieved -167 to end per month is 42. Achieved of September 2008 Explanation: Compliance is generally very high (90+%); non- 91+% compliance compliance dealt with via graduated response enforcement model.
Number of conservation lots monitored annually. Target is 100. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved: 178. 2009 – Achieved – 30 to end Achieved of September Explanation: Generally compliance is high, however some 2008 - 85% compliance education and graduated compliance response is Achieved required.
Percentage of non notified resource consents, which do not require a hearing, processed within 20 working days. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved – 91% processed within 20 working 2009 – Not Not Achieved -91% days. achieved until end of September. 2008 – Not (93% of non-notified land use consents; and 84% achieved of non-notified subdivision consents). Explanation: Measure not achieved, with 285 out of 312 Measure not achieved, consents being processed within 20 working days. with 113 out of 124 These timeframes are still reflective of an increase consents being in the number of consents that were lodged in late processed within 20 November and in December 2009 (26 subdivision working days. applications lodged in December), and the flow on These timeframes are effect of dealing with these applications. These reflective of a busy timeframes are an improvement to the September- quarter that has seen December 2009 quarter (88% processed in 20 a high number of working days). It should however be noted that consents lodged, and the average processing time for land use consents an equally high is 18 working days, and for subdivision consents, number completed. 21 days.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 50
Percentage of notified resource consents, to Council decision stage processed within 70 working days. Target is 70% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved - 67% processed within 70 working 2009 – Not Achieved - 50% to days. subdivision the end of September. consents Explanation: The lack of compliance with the 70 working day achieved. One consent performance measure for subdivision consents is Land use processed in time, a due to the complexity of those consents that were consents Not further notified consent completed in February and March 2010. As noted achieved was a complex one in the previous quarter, a number of section 92 and was processed in requests for further information were required for 104 working days. each application throughout the various steps of the process. This included the request for further information following the close of submissions, and the time to release decisions following the hearing for each application.
In addition a number of older applications (some 3- 4 years) are now coming off hold with no opportunity to catch up in terms of statutory timeframes.
In summary, in the year to date, 8 out of 12 applications (67%) were processed within the 70 working day performance measure.
Support the health and safety of local citizens by increasing the safety of where they live, work and play.
Percentage of known dogs in the District registered. Target is 95%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved – 99.8 % 2009 – Achieved Achieved Explanation: 11223 dogs registered. 2008 – Remains at 99.8% Achieved
All complaints related to aggressive dog behaviour are responded to within 30 minutes. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – Achieved Achieved Explanation: 214 calls for service in this category, and all 2008 - 78 responded to within the timeframes. Achieved
Provision of 20 hours parking enforcement per week in CBD areas. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Achieved Measure Explanation: 1060 hours provided. 322
Percentage of regulatory complaints responded to within 2 working days. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Achieved Measure Explanation: 361 complaints all responded to within time 100 frames. Complaints relate to by law breaches, littering, noise control, offensive smell, oil/hazardous substance spills and parking
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 51
Percentage of “at risk” food premises inspected twice annually. Target is 100% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Achieved Measure Explanation: 24 at risk premises, all inspected twice this year. 24
Percentage of “at risk” liquor premises inspected at least twice annually. Target is 100% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Achieved Measure Explanation: 1 at risk premises visited 14 times. Premises 1 ordered to be closed by the Liquor Licensing Authority 01.01.2010 for 3 months.
COST OF SERVICES STATEMENT
Activity REGULATORY 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE Planning Control 3,010 2,792 2,543 Enforcement & Monitoring 1,682 1,924 1,204 Animal Control 900 1,011 732 Building Services 3,375 3,357 2,366
TOTAL EXPENDITURE 8,967 9,084 6,845
EXPENDITURE Direct Costs 6,271 6,523 5,198 Overheads & Internal Charges 2,579 2,445 1,555 Depreciation 28 27 24 Internal Interest 89 89 68
TOTAL EXPENDITURE 8,967 9,084 6,845
REVENUE Fees and Charges 5,331 6,157 4,102 General Rate & UAGC 2,953 2,953 2,383
TOTAL REVENUE 8,284 9,110 6,485
NET COST OF SERVICE 683 (26) 360
TRANSFERS TO / (FROM) RESERVES Debt Repayments 25 26 17 Other Transfers to/(from reserves) 106 0 75 NET RESERVE TRANSFERS 131 26 92
(SURPLUS) / DEFICIT AFTER TRANSFERS 814 0 452
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 52
SOLID WASTE
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Economically strong community Safe, healthy and active community Special character, healthy, natural environment Well managed growth for quality living environment
In very simple terms this is the part of our operations where we manage the District’s rubbish. This involves household refuse bag collections in a large part of the District, a household wheelie bin collection in Tuakau, the operation of refuse transfer stations in Pukekohe and Waiuku, the management of 14 closed landfill sites (old rubbish tips) throughout the District, organising recycling depots, providing education programmes about recycling to schools, cleaning up after illegal dumping, organising hazardous waste collections and dealing with graffiti.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Satisfaction of residents with Council's refuse collection and recycling service. Target is 72% (Communitrak Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – 63% N/A 2008 – 70% Explanation: 74% Very/Fairly Satisfied: April 2010 Communitrak Annual Measure Survey. Highest percentage in 10 years.
The number of missed bags in council’s bag refuse collection is no more than 200 per year. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – On Target Achieved Explanation: 174 2008 12 Achieved
Percentage of illegally dumped refuse reports responded to within one working day. Target is 80%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved 2009 – Not Achieved Achieved Explanation: 79%. 2008 – Not achieved
Remaining reports of illegally dumped refuse are resolved within one month. Target 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Always Measure Explanation: 100%. 100%
Number of annual inorganic collections at drop-off points across the district. Target is 13. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – Not Achieved 100% achieved Explanation: We no longer do one at Ararimu, but Karaka had 2008 – Not The inorganic collections 2. 100% achieved that were planned for Nov & Dec 2010, have been brought forward and all will be completed by 18 October 2010.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 53
All remediated closed land fills comply with consent conditions. Target is equals yes. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Yes. New Yes Measure
Progress the remediation of the District’s closed landfills Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not measured New N/A Measure
COST OF SERVICES STATEMENT
Activity SOLID WASTE 16 Months to 31 October 2010 Year Ended $000 30 June 2009
Actual Budget Actual EXPENDITURE Solid Waste Collections 1,893 1,869 1,341 Refuse Transfer Station 200 178 161 Illegal Refuse & Graffiti Removal 98 215 173 Aftercare/Closed Landfills 143 192 99 Inorganic Collection & Recycling 960 984 628 Administration & Education 300 309 44
TOTAL EXPENDITURE 3,594 3,747 2,446
EXPENDITURE Direct Costs 3,169 3,305 2,228 Overheads & Internal Charges 307 315 136 Depreciation 22 20 9 Internal Interest 96 107 73
TOTAL EXPENDITURE 3,594 3,747 2,446
REVENUE Fees and Charges 1,678 1,529 885 Targeted Rate 1,479 1,412 895 General Rate & UAGC 1,036 1,036 836
TOTAL REVENUE 4,193 3,977 2,616
NET COST OF SERVICE (599) (230) (170)
TRANSFERS TO / (FROM) RESERVES Debt Repayments 41 41 27 Other Transfers to/(from reserves) 315 189 (40) NET RESERVE TRANSFERS 356 230 (13)
(SURPLUS) / DEFICIT AFTER TRANSFERS (243) 0 (183)
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 54
Capital Works Programme
16 Months to 16 Months to 2009 31 October 2010 31 October 2010 Actual Capital Works $000 $000 $000 Actual Budget
Solid Waste 5 198 20
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 55
STORMWATER
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Economically strong community Safe, healthy and active community Special character, healthy, natural environment Well managed growth for quality living environment
This part of our operation takes responsibility for managing stormwater runoff to protect the property, health and safety of Franklin District’s residents. This involves collecting, transporting, treating (where necessary) and disposing of runoff and includes the management of streams, watercourses, overland flow paths, ponds and a series of piped public stormwater networks. In all, there are about 184 kilometres of pipe work, with a depreciated replacement cost of $114 million dollars.
The District is made up of five major catchments with stormwater discharged into both the Auckland and Waikato regions. Stormwater from Franklin District reaches the Tasman Sea and the Manukau Harbour on the west coast and Hauraki Gulf on the east coast.
Stormwater systems are located mainly in the settled areas of Pukekohe, Tuakau, Waiuku, Clarks Beach, Waiau Beach, Glenbrook Beach, Patumahoe, Pokeno and Port Waikato. These consist of piped systems, stormwater retention ponds and developed overland flow paths.
In recent years there has been a requirement from both Waikato and Auckland Regional Councils for the Council to develop Integrated Catchment Management Plans (ICMP) for all stormwater catchments. This is accompanied by an increased requirement for the quality of stormwater discharge to the natural waterways to be improved.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Percentage of residents who are satisfied with Council’s management of stormwater with respect to property and environmental protection. Target is 80%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Measured. New N/A measure Explanation: This measure was not added to the annual Annual Measure Communitrak survey due the reorganisation of local government in Auckland.
Provision of responsive stormwater services to protect natural and built environments.
Percentage of complaints related to surface flooding in the residential and business zoned land across the District are responded to: Zone 1 - within 2 hours. Target is 80%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 100%. 2008 – 100% Achieved Explanation: 8 Service Requests received. All responses were 2008 - 2 Request from 1 Jul – in time. Achieved 30 Sept
Percentage of complaints related to surface flooding in the residential and business zoned land across the District are responded to: Zone 2 - within 4 hours. Target is 80% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 100%. 2009 – 100% Achieved Explanation: 1 Service Requests received. Response was in 2008 - No request from 1 Jul time. Achieved – 30 Sept
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 56
Percentage of complaints related to surface flooding in the residential and business zoned land across the District are responded to: Zone 3 - within 6 hours. Target is 80%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 100%. 2009 – 100% Achieved Explanation: 0 Service Requests received. 2008 - No request from 1 Jul Achieved – 30 Sept
Percentage of the remaining 20% of complaints related to surface flooding in the residential and business zoned land across the District are responded to within 24 Hours. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Achieved Measure Explanation: No complaints outside target response time. No request from 1 Jul – 30 Sept
Percentage compliance of stormwater reticulation in new developments with subdivisional standards for design storm events. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. New Achieved Measure Explanation: No known substandard stormwater subdivisions.
Percentage compliance with consented catchment conditions relating to contamination and erosion of streams. Target is 95% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. New Achieved. Measure Explanation: No abatement or non compliance notices received No routine inspections from ARC or EW. carried out by ARC or EW in the quarter
Protection of urbanised areas by provision of reticulated stormwater services
Increase the amount of residential and business zoned serviced land by reticulated stormwater. Target to be set in 2009/10. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not measured N/A Explanation: Due to FDC becoming part of the new Auckland N/A City no targets were set.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 57
STORMWATER COST OF SERVICES STATEMENT
Activity STORMWATER 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE Collection 5,553 4,861 3,137 Treatment 1,568 2,232 1,390
TOTAL EXPENDITURE 7,121 7,093 4,527
EXPENDITURE Direct Costs 2,661 2,541 1,613 Overheads & Internal Charges 835 501 484 Depreciation 2,055 1,836 1,327 Internal Interest 1,570 2,215 1,103
TOTAL EXPENDITURE 7,121 7,093 4,527
REVENUE Fees and Charges 369 351 326
Grants and Subsidies 329 275 467 Targeted Rate 3,717 3,676 2,281 General Rate & UAGC 2,325 2,325 2,090 Development & Financial Contributions 1,742 1,491 1,177 Vested Assets 7,648 1,784 3,664
TOTAL REVENUE 16,130 9,902 10,005
NET COST OF SERVICE (9,009) (2,809) (5,478)
TRANSFERS TO / (FROM) RESERVES Subdivision Contributions Transferred 1,646 1,491 1,177 Asset Vested in Council 7,648 1,784 3,664 Debt Repayments 449 429 282 Other Transfers to/(from reserves) (633) (902) 467 NET RESERVE TRANSFERS 9,110 2,802 5,590
(SURPLUS) / DEFICIT AFTER TRANSFERS 101 (7) 112
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 58
Capital Works Programme
16 Months to 16 Months to 2009 31 October 2010 31 October 2010 Actual Capital Works $000 $000 $000 Actual Budget
Stormwater 4,260 7,371 4,820
Significant Capital expenditure projects are - Actual Budget Actual
Waiuku ICMP 184 137 119 Pukekohe North CMP 145 78 0 Bombay ICMP 223 85 0 Open Channel works Pukekohe South 1,004 1,470 0 East Street Reticulation Upgrade 391 125 0 Town Centre Upgrade - River Lane 956 760 639 Minor Extensions & Infill (FDC Instigated) 101 268 206 Programmed Renewals 203 100 274 Pukekohe West - Belmont Purchase 158 150 0 District Wide - M.O.U Management 140 500 0 Whangapouri Stream Works 292 361 0 Nelson Street Reticulation Upgrade 0 1,300 0 Pukekohe Floodway 3 Erosion Protection 9 500 0 Other capital projects 454 1,537 3,582 4,260 7,371 4,820
Access issues have delayed the start of the Floodway 3 Protection project. The Open Channel works in Pukekohe South and the Nelson Street Reticulation projects have been combined. These projects started after 31 October 2010. The remainder of unspent budget has been carried forward.
Significant asset additions & replacements for the 16 months to 31 October 2010 include:
Lion Pond Litter Trap $1,600,000 Waiuku Town Centre Stormwater Improvements $1,597,000 Pukekohe Structure Plan Works $1,145,000 Queen Street Pukekohe _ Overland Flow Works $791,000 Pokeno Catchment Management Plan Works $652,000 Assets vested in Council (subdivisions) $7,600,000
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 59
LAND DRAINAGE
LAND DRAINAGE COST OF SERVICES STATEMENT
Activity LAND DRAINAGE 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE Land Drainage 341 197 682
TOTAL EXPENDITURE 341 197 682
EXPENDITURE Direct Costs 321 195 462 Overheads & Internal Charges 0 0 44 Depreciation 20 2 176
TOTAL EXPENDITURE 341 197 682
REVENUE Fees and Charges 1 0 186 Targeted Rate 127 145 134
TOTAL REVENUE 128 145 320
NET COST OF SERVICE 213 52 362
TRANSFERS TO / (FROM) RESERVES Other Transfers to /(from) reserves (213) (52) (362) NET RESERVE TRANSFERS (213) (52) (362)
(SURPLUS) / DEFICIT AFTER TRANSFERS 00 0
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 60
WASTEWATER
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Economically strong community Safe, healthy and active community Special character, healthy, natural environment Well managed growth for quality living environment
This activity has the responsibility for providing wastewater disposal and treatment services to serviced communities throughout the district. Currently there are 10 separate communities which are serviced by six sewer systems and four treatment plants. There are 253 kilometres of reticulated pipe and there are 12,396 properties connected to the system. The value of the infrastructure is $112.4 million.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Level of customer satisfaction with Franklin's wastewater systems > 95% (Communitrak Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 -99% N/A 2008 -98% Explanation: 98 % Annual Measure
Protection of harbours and streams so that people and wildlife have a healthy, unspoiled environment to enjoy
Percentage compliance of treated wastewater discharge with the resource consents: Pukekohe. Target for 2009/10 is 60% thereafter 100%. Year result to 30 September 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved at this stage. 2009 – Not Not achieved to 31 achieved Sept 2010 Explanation: 49%. Poor levels of compliance for Suspended 2008 – Not 86% excessive flows, solids, biological oxygen demand, and faecal achieved compliance on most coliforms. Results from new plant coming through other parameters, 2 as from June. ammonia results & 1 faecal result above limit
Waiuku. Target is 80% until 2017 then 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – Not Achieved to 31 Sept achieved 2010 Explanation: 81% - results mainly comply. Poor compliance for 2008 – Not 85% excessive flows, Non Filterable Residue (NFR). achieved compliance on most other parameters, 2 NFR results & 1 ammonia result above limit
Clarks Beach. Target is 80% until 2015 then 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved. 2009 – Not Not achieved to 31 achieved Sept 2010 Explanation: 72% Poor compliance this quarter for Dissolved 2008 – Not 63% excessive flows, oxygen and NFR. achieved Failures on DO , NFR & CBOD
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 61
Kingseat. Target is 80% until 2011/12 then 100% Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved. 2009 – Not Not achieved to 31 achieved Sept 2010 Explanation: 71% -. Poor compliance for Non Filterable Residue 2008 – Not 62% excessive flows, (NFR). Also high faecal coliform counts due to achieved Failures on NFR & faults in UV system. faecals
Trade Waste
Percentage compliance of trade waste discharges with trade waste agreements. Target for 2009/10 is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved New Not monitored Measure Explanation: Of the 6 main trade waste discharges monitored Monitoring of specific there have been 32 non-compliances in the 4th trade waste quarter. 23 of these have been for daily breaches discharges have now in flow from one company. This makes a total of ceased and disposal 120 non-compliances for the year (87 above the charges will be based flow consent limit from the one company). The on previous annual non-compliances have not caused detrimental trend. effects other than placing potential increased loading above treatment capacity. Note: It would be very difficult to ensure that each individual trade waste discharge is compliant, but effective monitoring of them is occurring and charging regimes are in place.
Provision of quality wastewater services and timely responses to customer complaints
Number of wastewater overflows per year in wet weather. Target <15. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved 2009 – Not Achieved achieved Explanation: 20 to date - 11 wet weather overflows in June 2008 - 2 wet weather 2010. Achieved overflows
Number of wastewater overflows per year in dry weather. Target <50. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved 2009 – Not Achieved th achieved Explanation: 63 overflows for year, 13 in the 4 quarter. 2008 – Not 4 dry weather achieved overflows
Percentage of complaints about wastewater overflows responded to within one hour. Target is 90%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – Achieved Achieved Explanation: 99% - 82 out of 83 overflows responded to within 2008 - All overflows the hour. Achieved responded to with in the hour
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 62
Percentage of complaints about wastewater overflows responded to within two hours. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – Achieved Achieved Explanation: 100% - All overflows responded to within 2 hours. 2008 - All overflows Achieved responded to with in the hour
Deliver sufficient capacity in the wastewater networks and treatment plants to cater for growth and to minimise risks to public health.
Deliver the new Pukekohe wastewater treatment plant on time and on budget. Target for completion is June 2010. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: Commissioning completed on 30 June and within Budget. Discharge quality reported to be well within consent requirements.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 63
COST OF SERVICES STATEMENT
Activity WASTEWATER 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE Wastewater 7,804 8,357 4,595
TOTAL EXPENDITURE 7,804 8,357 4,595
EXPENDITURE Direct Costs 2,765 3,007 1,586 Overheads & Internal Charges 870 888 590 Depreciation 2,611 3,026 1,776 External interest 0 0 0 Internal Interest 1,558 1,436 643
TOTAL EXPENDITURE 7,804 8,357 4,595
REVENUE Fees and Charges 725 540 508 Targeted Rate 7,400 7,326 5,257 Development & Financial Contributions 1,977 1,474 972 Vested Assets 1,941 892 1,326
TOTAL REVENUE 12,043 10,232 8,063
NET COST OF SERVICE (4,239) (1,875) (3,468)
TRANSFERS TO / (FROM) RESERVES Subdivision Contributions Transferred 1,977 1,474 972 Asset Vested in Council 1,941 892 1,326 Debt Repayments 590 590 806 Other Transfers to/(from reserves) (269) (1,081) 364 NET RESERVE TRANSFERS 4,239 1,875 3,468
(SURPLUS) / DEFICIT AFTER TRANSFERS 00 0
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 64
Capital Works Programme
16 Months to 16 Months to 31 October 2010 31 October 2010 2009 Capital Works $000 $000 Actual $000 Actual Budget
Wastewater 12,067 11,588 10,706
Significant Capital expenditure projects are - Actual Budget Actual
Upgrade Pukekohe Treatment Plant 10,285 9,883 9,055 FDC - Minor Projects 309 220 519 Maintenance Contract (renewals) 230 208 179 Pukekohe Franklin Rd Pump Station 433 450 0 Southern Interceptor Project 397 67 0 Waiuku WWTP Upgrade 228 240 0 Other capital projects 185 520 953 12,067 11,588 10,706
The over expenditure in this budget is due to work on the Southern Interceptor Project being started earlier than 2012/13 as indicated in the Franklin District Long Term Community Plan 2009-2019.
Significant asset additions & replacements for the 16 months to 31 October 2010 include:
Pukekohe/Tuakau Wastewater Treatment Plant $21,000,000 Assets vested in Council (subdivisions) $1,900,000
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 65
WATER SUPPLY
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Economically strong community Safe, healthy and active community Special character, healthy, natural environment Well managed growth for quality living environment
This activity has the responsibility for providing safe drinkable water to homes and businesses in 13 different areas throughout the district. There is also the additional responsibility to ensure that water for fire fighting is available in the serviced areas. To do this, 13 separate treatment plants are managed and maintained, 360 kilometres of pipe is maintained, 13,391 metered connections are read and the users sent an account. The replacement cost of infrastructure as at 2008 was $93.9 million.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
% of the estimated resident population who receive their water from community water supplies which meet current national health standards. Target is 60%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Unknown New measure. N/A Explanation: This measure has not been developed due to Annual Measure impending Auckland governance changes.
Percentage users satisfaction with piped water supply. Target is 75%. (Communitrak Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 -79% N/A 2008 -75% Explanation: 77% - similar to 2009 results. Annual Measure
Provision of potable water that meets the requirements of the health (water) Amendment Act. The grading is a measure of risk of contamination not an indication of quality of water. Capital letters refer to grading for treatment and source/ lower case refers to the reticulation grading. See LTCCP 2009 - 19 for more detailed explanation.
Meet the Ministry of Health Water Standards for: Pukekohe - Kitchener Zone. Target 2009/10 is B/c. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved. Treatment grade B not achieved 2009 – Not Not achieved this year. achieved 2008 – Not Explanation: The new UV system has been operating well but achieved No Change there is an issue with compliance monitoring assurance. Monitoring instruments often are not providing consistent results for compliance. Age testing results to prove security of bores has been completed with good results obtained (as expected). Reapplication for an improved grade now with Watercare.
Pukekohe – Anzac zone. Target for 2009/10 is B/b. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved. Treatment grade B not achieved 2009 – Not Not achieved this year. achieved 2008 – Not Explanation: Same as for Kitchener zone above. achieved No Change
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 66
Pukekohe – Hilltop. Target for 2009/10 is B/b. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved. Treatment grade B not achieved 2009 – Not Not achieved this year. achieved 2008 – Not Explanation: Same as for Kitchener zone above. achieved No Change
Waiuku. Target for 2009/10 is B/b Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved 2009 – Not Not achieved achieved Explanation: Age testing results to prove security of bores has 2008 – Not No Change been completed with good results obtained (as achieved expected). Reapplication for an improved grade now with Watercare.
Tuakau. Target for 2009/10 is D/b. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: On track 2009 – Not On track achieved Explanation: Age testing results to prove security of bores has 2008 – Not Bores have now been completed with good results obtained (as achieved gained secure status expected). Reapplication for an improved grade from ARPHS. now up to Waikato.
Bombay. Target for 2009/10 is C/c. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved. 2009 – Not Not achieved achieved Explanation: UV not yet installed and would need a full year of 2008 – Not No Change compliance before regrading. achieved
Buckland. Target for 2009/10 is D/c Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: On track 2009 – Not On track achieved Explanation: Age testing results to prove security of bores has 2008 – Not No Change been completed with good results obtained (as achieved expected). Reapplication for an improved grade now with Watercare.
Clarks and Waiau Beach. Target for 2009/10 is C/c. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved 2009 – Not Not achieved achieved Explanation: Age testing results to prove security of bores has 2008 – Not No Change been completed with good results obtained (as achieved expected). Also at Waiau Beach a stock fence needs to be shifted further away from the bore.
Glenbrook Beach. Target for 2009/10 is E/d. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: On track 2009 – Not On track achieved Explanation: Installing bore cover but not seeking secure bore 2008 – Not Now installing iron and status and marginal dosing of chlorine due to high achieved manganese treatment iron and manganese levels in source water. removal.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 67
Patumahoe. Target for 2009/10 is C/c. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved 2009 – Not Not achieved achieved Explanation: Have had some contamination events but have 2008 – Not No Change second new reservoir. Age testing results to prove achieved security of bores has been completed with good results obtained (as expected). Reapplication for an improved grade now with Watercare.
Pokeno. Target for 2009/10 is C/c. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: On track 2009 – Not On track achieved Explanation: New UV treatment system installed but still having 2008 – Not Bore have now gained some operational and monitoring problems. achieved secure status from Require one year of full compliance before ARPHS. applying for revised grade. Age testing results to prove security of bores has been completed with good results obtained (as expected). Reapplication for an improved grade now up to Waikato.
Puni. Target for 2009/10 is D/c. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: On track (Self assessed – as not officially graded). 2009 – Not Not Achieved achieved Explanation: Not intending to provide 5 metre stock fence 2008 – Not Bore experienced protection or other works for bore security at this achieved recent positive e-coli stage. results and now abandoned.
Port Waikato. Target for 2009/10 is E/a Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Unlikely to be achieved (Self assessed – as not 2009 – Not On track officially graded). achieved 2008 – Not Explanation: Still has “boiled water” notice in place and recent achieved Upgrade Works in contamination results due to treatment faults may progress. affect obtaining reticulation grade of a. Further treatment upgrades in progress with improvements to treatment process and installing UV.
Onewhero. Target for 2009/10 is E/a. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved. (Self assessed – as not graded). 2009 – Not Not achieved achieved Explanation: Replaced UV treatment system as had positive e- 2008 – Not No Change coli results. achieved
Percentage of systems for which we have a Public Health Risk Management Plan (PHRMP). Target is 100%. (Note that since the LTCCP 2009-19 was published, legislation has been relaxed extending the time frame for compliance.) Target is unachievable. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved. New N/A Measure Explanation: Due to the changes to the legislation no progress on PHRMP’s was made. (Bombay and Pukekohe are in completed form). Watercare and Waikato will now further develop the PHRMP requirements for all schemes.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 68
Percentage of systems which meet the requirements of the Public Health Risk Management Plan. Target for 2009/10 is 100%. (Note that since the LTCCP 2009-19 was published, legislation has been relaxed extending the time frame for compliance.) Target is unachievable. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved. New N/A Measure Explanation: Implementation of certain actions in the two PHRMP’s will be advanced but the previously identified timeframes are not likely to be satisfied due to the relaxing in the requirements of the legislation. Now with Watercare and Waikato.
Provide an adequate volume of water to consumers to meet their needs
Percentage of time reservoirs are least 50% full. Target is 96%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. New Achieved. Measure Explanation: 99 .5% to end of the 4th quarter (Note: Reservoirs 98.1% out of service for maintenance and repairs are not included in these figures).
Encourage water demand management by all consumers so that the activity is sustainable.
5% reduction in the level of consumption per person within 10 years from 2008 baseline of 221 litres per person per day (LPD). Target is a decrease in LPD. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: achieved New N/A Measure Explanation: 201 LPD (total consumption 2,840,000m3 by Annual Measure estimated 38,679 people).
Reduction in unaccounted water loss (2008 baseline of 23% loss). Target is to reduce to a 20 % loss Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: Losses are 21% which is a good improvement Annual Measure indicating benefits from mains and meter replacement programme.
Provision of quality customer service and timely response to complaints. Percentage of complaints responded to on water quality within 1 hour. Target is > 95%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. 2009 - Achieved. Achieved Explanation: 98% - 780 out of 792 calls responded to within 1 2008 - 99% - 158 out of 159 hr. Achieved calls responded to within 1 hr.
Number of supply interruptions per year. Target is less than 100. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 - N/A Achieved Explanation: 72 unscheduled interruptions for the year. 2008 - Annual Measure Achieved
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 69
Reduction in the 5 yearly averages for unscheduled supply interruptions. Target for 2009/10 is less than 100 there after continued reductions. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: Previous 5 year average is 94. Annual Measure
COST OF SERVICES STATEMENT
Activity WATER SUPPLY 16 Months to 31 October 2010 Year Ended $000 30 June 2009
Actual Budget Actual EXPENDITURE Water Supply 7,256 7,245 5,238
TOTAL EXPENDITURE 7,256 7,245 5,238
EXPENDITURE Direct Costs 2,783 2,721 1,916 Overheads & Internal Charges 1,174 1,172 967 Depreciation 2,461 2,564 1,747 Internal Interest 838 788 608
TOTAL EXPENDITURE 7,256 7,245 5,238
REVENUE Fees and Charges 608 718 313 Targeted Rate 5,581 7,430 5,221 Development & Financial Contributions 683 529 352 Vested Assets 964 587 519 TOTAL REVENUE 7,836 9,264 6,405
NET COST OF SERVICE (580) (2,019) (1,167)
TRANSFERS TO / (FROM) RESERVES Subdivision Contributions Transferred 683 529 352 Asset Vested in Council 964 587 519 Debt Repayments 617 617 209 Other Transfers to/(from reserves) (1,684) 286 87 NET RESERVE TRANSFERS 580 2,019 1,167
(SURPLUS) / DEFICIT AFTER TRANSFERS 00 0
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 70
Capital Works Programme
16 Months to 16 Months to 2009 31 October 2010 31 October 2010 Actual Capital Works $000 $000 $000 Actual Budget
Water Supply 3,839 4,647 2,428
Significant Capital expenditure projects are - Actual Budget Actual
New Bore Construction - Waiuku 199 300 0 New Meter Connections 279 400 131 Main Extensions (Development Related) 137 347 132 Water Quality Improvements 754 0 0 FDC Mtce Contract Renewals 406 387 415 Minor Projects & Investigations 473 1,004 301 Watermains Renewal 1,083 1,200 754 Water Meter Replacement 374 400 0 Other capital projects 134 609 695 3,839 4,647 2,428
Funding was brought forward from 2008/09 for work on Water Quality Improvement in Waiuku.
Significant asset additions & replacements for the 16 months to 31 October 2010 include:
Watermain Renewals $1,474,000 New Meter Connections $278,000 Water Meter Renewals $374,000 Other Renewals $341,000 Minor Projects $343,000 Assets vested in Council (subdivisions) $964,000
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 71
LIVING AND PLAYING IN FRANKLIN
All of these activities provide in some way for the social and cultural life of the community and range from our contribution to the Auckland War Memorial Museum to providing and maintaining public toilets.
ARTS CULTURE AND HERITAGE COMMUNTIY FACILITIES COMMUNITY SERVICES OPEN SPACES AND AMENITIES
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 72
ARTS CULTURE AND HERITAGE
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Cultural, social, vibrant, inclusive community Well managed growth for quality living environment Educated and enabled community
This activity covers the following range of local and regional initiatives: • Funding for the Auckland War Memorial Museum and MOTAT, as required by legislation. • Funding for Auckland amenities, as required by legislation. • Provision of library, arts and cultural activities and services via a strategic partnership with Franklin Arts Culture and Library Trust. • Management of the Creative New Zealand Funding Scheme through the Franklin Arts Culture and Library Trust. • Provision of grants and donations to community groups and individuals who meet Council’s funding criteria. • Operation of a Shared Responsibility Loan Scheme, where a pool of funds is loaned to community groups (on an interest free basis) to develop community assets. • Support for heritage strategy through Council activities where appropriate.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Community satisfaction with the library service. Target is 80% (Communitrak Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved – 82% 2009 -75% N/A 2008 -81% Explanation: Annual Measure
Funding the provision of: appropriate library services, and wide ranging, accessible arts, culture and heritage services.
User satisfaction with arts, culture and library services provided by Franklin Arts, Culture and Library Trust. Target is 80% (FACLT Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved – 95% (FACLT survey 2010) New Measure N/A Explanation: The Trust has reverted to two separate trusts. Annual Measure
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 73
Support for the community to access funding for art, culture or heritage activities by way of a grant, shared responsibility loan, or Creative New Zealand funding.
All grants, donations and shared responsibility loans are administered in accordance with Council Policy. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – N/A Achieved Explanation: 2008 - Annual measure Achieved
Deliver actions from Franklin’s heritage strategy.
Heritage strategy implementation priorities identified by 2010. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Achieved Measure Explanation: The Project is complete. It received a very positive Heritage week response from the community. 143 items have launched 23 Sep 2010 been identified to date.
Provide support to Auckland amenities as required by legislation.
Funding is provided as per legislation. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: Funding requirements meet and Auckland Annual Measure governance legislation complied with
Internal Measures not in LTCCP.
Franklin Arts, Culture and Library Trust meets its reporting requirements to Council. Target is a positive assessment from Communications manager. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: All reporting is done through Communications Annual Measure Manager, and a Council member sits on the trust board.
Franklin Arts Culture and Library Trust are passed by its auditor. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: In progress New N/A Measure Explanation: Audit for 2008/9 was achieved. The Audit for Annual Measure 2009/10 is in progress, and results will not be known until after 31 Oct 2010.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 74
COST OF SERVICES STATEMENT
Activity ARTS, CULTURE & HERITAGE 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE Auckland War Memorial Museum 989 1,263 757 Museum of Transport & Technology 592 510 288 Arts, Culture and Libraries 2,978 2,648 1,934 Auckland Regional Services Trust 340 340 0 Other Community Partnerships 121 115 93
TOTAL EXPENDITURE 5,020 4,876 3,072
EXPENDITURE Direct Costs 4,879 4,816 3,033 Overheads & Internal Charges 62 60 39 Depreciation 77 0 0 Internal Interest 2 0 0
TOTAL EXPENDITURE 5,020 4,876 3,072
REVENUE Fees and Charges 63 0 0 Grants and Subsidies 81 45 0 Targeted Rate 476 465 0 General Rates 3,759 3,761 3,032
TOTAL REVENUE 4,379 4,271 3,032
NET COST OF SERVICE 641 605 40
TRANSFERS TO / (FROM) RESERVES Other Transfers to/(from) reserves (280) 0 0 NET RESERVE TRANSFERS (280) 0 0
(SURPLUS) / DEFICIT AFTER TRANSFERS 361 605 40
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 75
COMMUNITY FACILITIES
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Economically strong community Easy to get around Safe, healthy and active community Cultural, social, vibrant, inclusive community Special character, healthy, natural environment Well managed growth for quality living environment Educated and enabled community
These activities include community centres (halls), recreation and aquatic facilities. This activity undertakes all the work streams required to manage and maintain the community facilities assets. An administrative and advisory role is provided to rural hall committees.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Residents rating of proximity to recreational facilities. Target is > 62%. (EW survey) Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved New N/A Measure Explanation: 54% (Covers only those Franklin residents within Annual measure the new Waikato District).
Residents rating of availability of recreational facilities and opportunities. Target is > 64%. (EW survey) Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved New N/A Measure Explanation: 53% (Covers only those Franklin residents within Annual Measure the new Waikato District).
User satisfaction with swimming pools and recreation facilities and services. Target is > 80%. (Council survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved in part. New N/A Measure Franklin Sport Swim & Fitness (FSSF) 81% Public swimming pools 73% Explanation: FSSF (indoor pool and indoor recreation facilities) Annual Measure achieved 81% overall user satisfaction. This came from the national Yardstick leisure check user survey, conducted by SIL research. Nationally, FSSF received the highest number of completed surveys (relatively), which gives a high level of confidence.
The confidence level in the CLM/Council user survey of the outdoor pools is low. However, the Communitrak survey of users satisfaction with public swimming pools gave a 73% overall satisfaction.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 76
User satisfaction with community centre (urban halls) facilities and services. Target is > 90%. (Council survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 97 % New N/A Measure Explanation: Survey sent out to all users, which received a 36 Annual Measure % return rate. Of the 97% satisfaction, 32% were very satisfied and 68% were satisfied.
Provision of Community facilities that are safe for users and visitors
Significant hazards are isolated and eliminated in less than 2 hours. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Achieved Measure Explanation: All hazards reported that were considered a high See comments to 30 priority were eliminated, isolated or mitigated June within 2 hours. All other hazards were responded to within time frame, although action may have been later.
Percentage of buildings with current Buildings Warrant of Fitness. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New Achieved Measure Explanation: 100%. The annual round of building warrants of See comments to 30 fitness renewals take place between May and June September 2010. All issues from the previous year have been resolved and all buildings have a current warrant.
Number of failed microbiology tests per annum (water quality in pools). Target is <3. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: 0 failed. The indoor pool and all outdoor pools Annual Measure have a monthly water quality test completed by Food and Health Environmental. All have met NZS 5826:2000 standard.
Encourage participation in leisure and recreational activities through ensuring facilities are accessible, well designed and offer a range of opportunities.
Percentage of aquatic and recreation facilities which have had accessibility audits undertaken within the previous 3 years. Target for 2009/10 is 50%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. New N/A Measure Explanation: Audits undertaken at Jubilee outdoor swimming Annual Measure pool and Franklin Sport Swim & Fitness.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 77
Range of programmes at aquatic and recreation facilities cater for agreed target markets, e.g. green prescription participants, community service card holders. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. New N/A Measure Explanation: CLM are currently providing: Annual Measure - Over 50’s exercise classes, weekly - Out of school care programme, daily Mon – Fri and holidays - Swim lessons for senior citizens, weekly - Green prescription programme, twice weekly - Special needs recreation, twice weekly - Weight loss challenge, 8 week blocks Stroke rehabilitation, weekly.
Cost effective and efficient management and utilisation of facilities.
Community Centre (urban halls and Franklin: The Centre) utilisation rates. Target is >30%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: • Pukekohe Town Hall 36 % (Achieved) New N/A Measure • Franklin: the Centre 32% (Achieved) • Tuakau Town Hall 14 % ( Not achieved) • Waiuku Town Hall 3.9 % ( Not achieved Explanation: Waiuku Town Hall utlisation was affected by the Annual Measure fact that a management decision was made on 31 March 2010 that the hall could not be used until various fire safety provisions of the building Code were complied with.
Average total aquatic and recreation facility visits per head of population. Target is 5. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved – 6.14 New N/A Measure Explanation: Total annual visits at Franklin Sport Swim & Annual Measure Fitness were 373,766 and for the outdoor pools it was 32,764, which equals 406,530 total attendance. Divided by population of 66,247 = 6.14.
Facilities are maintained in a manner that ensures continuous delivery of services.
Facilities have an assessed condition grade of 3 or better. Target is 95%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved - 94% - as per 2009/2010 New N/A independent aquatic recreation facilities asset Measure management survey. Explanation: Planned renewal works were undertaken during Measured every 3 November 2009, with further works programmed years for 2010. This work will improve the result.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 78
Number of unplanned closures of facilities longer than 1 day. Target is 0 Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not achieved New Remains not achieved Measure Explanation: A management decision was made on 31 March See comments to 30 2010 that the Waiuku Town Hall could not be used June (i.e. closed) until various fire safety provisions of the building Code were complied with. On 27 May Council confirmed this decision by resolving that the required work not be undertaken until Council considers the future of the hall at its August meeting. Therefore, the hall was closed from 1 April to 30 June. The target was achieved for all the other facilities.
Provision of Facilities based on what is considered reasonable and affordable to the community.
Subsidy per head of population for aquatic and recreation centres. Target for 2009/10 is < $12.50. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved - $14.34 2009 – N/A Achieved Explanation: Total annual actual expenditure, inc depreciation, 2008 - Annual Measure is $949,866, which divided by 66,247 population Achieved equals $14.34. However, this compares favourably with the $1,011,652 total expenditure adopted in the Annual Plan, which equates to $15.27.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 79
COST OF SERVICES STATEMENT
Activity COMMUNITY FACILITES 16 Months to 31 October 2010 Year Ended $000 30 June 2009
Actual Budget Actual EXPENDITURE Community Centres 1,055 1,047 718 Recreation Centre & Pools 1,333 1,347 689 Franklin: The Centre 654 569 569 Other Community Facility Projects 86 76 90
TOTAL EXPENDITURE 3,128 3,039 2,066
EXPENDITURE Direct Costs 1,784 1,610 1,206 Overheads & Internal Charges 119 192 85 Depreciation 1,103 1,165 572 Internal Interest 122 72 203
TOTAL EXPENDITURE 3,128 3,039 2,066
REVENUE Fees and Charges 383 313 322 Targeted Rate 747 701 621 General Rate & UAGC 1,299 1,299 989 Development & Financial Contributions 716 625 347 TOTAL REVENUE 3,145 2,938 2,279
NET COST OF SERVICE (17) 101 (213)
TRANSFERS TO / (FROM) RESERVES Subdivision Contributions Transferred 716 625 347 Asset Vested in Council 0 0 0 Debt Repayments 51 51 63 Other Transfers to/(from reserves) (757) (775) 33 NET RESERVE TRANSFERS 10 (99) 443
(SURPLUS) / DEFICIT AFTER TRANSFERS (7) 2 230
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 80
Capital Works Programme 16 Months to 16 Months to 2009 31 October 2010 31 October 2010 Actual Capital Works $000 $000 $000 Actual Budget
Community Facilities 788 1,247 705
Significant Capital expenditure projects are - Actual Budget Actual
Pukekohe Pool Renewals 158 126 159 Centennial Pool Heating 134 136 63
Waiuku Town Hall Renewals 99 150 40 Tuakau Town Hall Renewals 63 54 22 Tuakau Domain Hall Roof Renewals 83 75 0
Other capital projects 251 706 421
788 1,247 705
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 81
COMMUNITY SERVICES
PENSIONER HOUSING CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Safe, healthy and active community Cultural, social, vibrant, inclusive community Well managed growth for quality living environment Educated and enabled community The pensioner housing activity provides 111 pensioner housing units located in seven village settings in Waiuku, Tuakau and Pukekohe. The units are of varying ages, built between 1963 and 1989, and are generally in an average or better condition. Most of the units are single bedroom, but also include six bedsit units.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Occupancy of Pensioner Houses. Target is > 95%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 -96% Achieved - 99% 2008 -96% Explanation: 99%. As at 30 June, 110 of 111 pensioner units Annual Measure are occupied. The 1 remaining vacant unit has a tenancy signed up commencing 17 July.
Provision and maintenance of housing stock for pensioners in the District.
Satisfaction of residents that Council provides a highly responsive and reliable service. Target is 90%. (Council survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved 2009 -74% N/A 2008 -87% Explanation: 87%. Result within an acceptable margin of error Annual Measure with 83 respondents to this question.
Satisfaction of residents that Council reacts in an acceptable timeframe to their requests. Target is 90%. (Council survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved 2009 -67% N/A 2008 -78% Explanation: 80%. An improvement of 13% from 2009. Annual Measure
Houses have an assessed condition of grade 3 or better. Target is 95%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 96%. New N/A Measure Explanation: As assessed 2009/2010 Pensioner Housing Asset Annual Measure Management Plan.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 82
SAFER COMMUNITIES CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Safe, healthy and active community Cultural, social, vibrant, inclusive community Well managed growth for quality living environment Educated and enabled community
The Franklin Safer Community Coalition (FSCC) assists with coordinating resources and services across a wide range of internal and external partners and stakeholders, with the aim of ensuring that Franklin people feel safe and are safe at home, work and play. Particular focus is given to • the incidence of graffiti offending; • the use and abuse of alcohol in public arena; • enabling ‘community patrols’ and ‘neighbourhood support’ groups; and assisting partners in the area of road safety.
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
Safer Community Strategy completed. Target for 2009/10 is adoption of strategy by December 2009. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. New N/A Measure Explanation: Safer Community Action Plan under the Social Accomplished. Wellbeing Strategy was adopted at the December 2009 Strategy and Policy Committee meeting.
Safer Community Strategy Implemented. Targets as set in strategy to be achieved. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Partially achieved New Not achieved Measure Explanation: All actions under the Safety and Graffiti aspects of Work on the alcohol the Social Wellbeing Policy are in the accords has halted implementation stage. due to Auckland Actions relating to Alcohol Harm Reduction are yet Governance change. to be addressed.
Work in partnership with NZ Police and other agencies to reduce crime and encourage community safety.
Contractual requirements of Ministry of Justice funded projects met (e.g. Graffiti, CPTED) Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: The new proposals accepted by MOJ are in the Annual Measure implementation stage. MOJ at FSCC meeting expressed approval of work completed so far. Final report sent to MOJ July 2010.
Increase volunteer numbers in Community Patrols. Target is >20 Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: Police continue to work closely with Community Annual Measure Patrols. Pukekohe and Waiuku numbers remain stable. Tuakau numbers continue to increase.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 83
Increase Neighbourhood Support Group numbers through education and awareness. Target is >90. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved New N/A Measure Explanation: Community interest in establishing Neighbourhood Annual Measure support groups has increased. Database is updated and current number is over 90 groups, with strong support from Waiuku residents. Police activity in the area has stimulated the increase in numbers.
COST OF SERVICES STATEMENT
Activity COMMUNITY SERVICES 16 Months to 31 October 2010 Year Ended $000 30 June 2009 Actual Budget Actual EXPENDITURE Pensioner Housing 803 753 488 Safer Communities 352 158 114
TOTAL EXPENDITURE 1,155 911 602
EXPENDITURE Direct Costs 719 467 382 Overheads & Internal Charges 115 111 82 Depreciation 307 304 129 External interest 11 14 9 Internal Interest 3 15 0
TOTAL EXPENDITURE 1,155 911 602
REVENUE Fees and Charges 815 790 548 Grants and Subsidies 7 71 0 General Rates 52 52 20
TOTAL REVENUE 874 913 568
NET COST OF SERVICE 281 (2) 34
TRANSFERS TO / (FROM) RESERVES Debt Repayments 29 41 0 Other Transfers to/(from reserves) (236) (50) (34) NET RESERVE TRANSFERS (207) (9) (34)
(SURPLUS) / DEFICIT AFTER TRANSFERS 75 (11) 0
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 84
Capital Works Programme
16 Months to 16 Months to 2009 31 October 2010 31 October 2010 Actual Capital Works $000 $000 $000 Actual Budget
Community Services 110 103 425
Significant Capital expenditure projects are - Actual Budget Actual
Pensioner Housing Renewals 69 103 80 Pensioner Housing New Works 41 0 345
110 103 425
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 85
OPEN SPACES AND AMENITIES
CONTRIBUTES TO THE FOLLOWING COMMUNITY OUTCOMES
Safe, healthy and active community Cultural, social, vibrant, inclusive community Well managed growth for quality living environment Educated and enabled community
This activity has the responsibility for the operation and development of the Council’s parks, reserves, sports grounds and public toilets. The Council is responsible for approximately 900 hectares of parks, reserves, and open space. Facilities under management include:
- 159 Parks, reserves and gardens - 18 Sports grounds - 36 Playgrounds - 56 Public Toilets - 58 Walkways - 157 road amenity gardens - 9 War Memorials
HOW DID WE DO IN ACHIEVING OUR INTENDED LEVELS OF SERVICE
User satisfaction with sports grounds and playgrounds. Target is 90% (Community Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. 2009 -86% N/A 2008 -89% Explanation: 94% Annual Measure
User satisfaction with parks and reserves. Target is 90% (Community Survey). Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved. 2009 -91% N/A 2008 -90% Explanation: 92%
Plan for current and future generation to continue to have access to quality public open spaces that is of appropriate quality and location.
Hectares of sports park provided per 1000 population. Target is 1.7ha. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – N/A 2.34 2008 – N/A Explanation: Currently 2.34ha (tot 155.32ha – 2010 population Annual Measure estimate = 66,247).
Hectares of neighbourhood parks provided per 1000 population, Target is 0.6ha. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – N/A Achieved 2008 – N/A Explanation: Currently 0.92ha (2010 population estimate). Annual Measure
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 86
Number of playgrounds provided per 1000 children (0-14 yrs) in the population. Target is 2.2 playgrounds. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 –2.4 2.24 2008 -2.5 Explanation: Currently 2.24 (2010 population estimate). Annual Measure
Provide Open Spaces and parks that enable the community and visitors to Franklin to participate in a variety of leisure and recreation opportunities safely
Percentage of playgrounds that comply with safety standards. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – Achieved Achieved Explanation: Weekly checks/monthly audit/quarterly review. 2008 - Annual Measure Achieved
Percentage of reported hazards that are responded to in less than 2 hours. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – Achieved Achieved Explanation: No reported hazards. 2008 - Annual Measure Achieved
Percentage of public toilets available for use 365 days per year. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Not Achieved 2009 – Achieved Achieved Explanation: Planned closure for maintenance – 4 days 2008 - Annual Measure (Seddon Park). Achieved
Provision of management of cemeteries that meet the burial needs of the District.
Sexton is available 7 days per week. Target is 100%. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result: Achieved 2009 – Achieved Achieved Explanation: Services are contracted to provide 7 days per 2008 - Annual Measure week availability. Achieved
Sufficient spare capacity in cemeteries to accommodate growth in demand. Target is >10yrs. Year result to 30 June 2010 History 1 Jul - 31 Oct 2010 Result Achieved 2009 – Achieved Achieved Explanation: All cemeteries have an assessed capacity of 14 2008 - Annual Measure years or greater. Achieved
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 87
COST OF SERVICES STATEMENT
Year Ended Activity OPEN SPACE & AMENITIES 16 Months to 31 October 2010 30 June 2009 $000 $000 Actual Budget Actual EXPENDITURE Parks & Reserves 5,015 4,435 3,091 Public Toilets 978 960 661 Cemeteries 188 372 133 Sports Grounds & Domains 486 513 228
TOTAL EXPENDITURE 6,667 6,280 4,113
EXPENDITURE Direct Costs 5,459 5,061 3,493 Overheads & Internal Charges 358 335 268 Depreciation 523 351 254 Internal Interest 327 533 98
TOTAL EXPENDITURE 6,667 6,280 4,113
REVENUE Fees & Charges 484 499 292 Grants and Subsidies 6 0 3 General Rate & UAGC 5,908 5,908 3,580 Development & Financial Contributions 1,161 1,193 499
TOTAL REVENUE 7,559 7,600 4,374
NET COST OF SERVICE (892) (1,320) (261)
TRANSFERS TO / (FROM) RESERVES Subdivision Contributions Transferred 1,140 1,193 499 Debt Repayments 152 153 15 Other Transfers to/(from reserves) (56) 12 (19) NET RESERVE TRANSFERS 1,236 1,358 495
(SURPLUS) / DEFICIT AFTER TRANSFERS 344 38 234
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 88
Capital Works Programme
16 Months to 2009 16 Months to 31 October 2010 Actual Capital Works 31 October 2010 $000 $000 $000 Actual Budget
Open Spaces and Amenities 3,834 3,727 2,799
Significant Capital expenditure projects are - Actual Budget Actual
Pukekohe West Reserve Development/Acquisition 2,053 600 0 Franklin Recreation Hub 128 650 0 Lighting Grower Stadium 300 170 1,406 Northern Ward (Karaka) 224 244 70 Public Toilet Development 162 160 83 Waiuku Recreation Reserve 147 491 24 Other capital projects 820 1,412 1,216
3,834 3,727 2,799
Some projects planned for the 2009/10 year have been deferred until after the reorganisation of the Auckland council's. One exception is land purchased in October, from budget brought forward from the second part of the 2010/11 year for reserve development in the Pukekohe West area.
Significant asset additions & replacements for the 16 months to 31 October 2010 include:
Public Toilet Development $245,000 Reserve Development – Landscaping $128,000 Pukekohe Stadium Lights $1,705,000 Land Purchase – Pukekohe West $1,843,000
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 89
SUPPORT AND MISCELLANEOUS
Year Ended 30 Activity FUNDS MANAGEMENT & 16 Months to 31 October 2010 June 2009 $000 ORGANISATION SUPPORT $000 Actual Budget Actual EXPENDITURE Communications 467 457 337 Corporate Property 2,831 2,237 1,419 Corporate Support 8,862 9,563 6,685
Funds Management 10,691 7,970 6,903
Disposal of Assets 19,705 0 0
TOTAL EXPENDITURE 42,556 20,227 15,344
REVENUE Fees and Charges 1,441 1,863 1,605 Rate Penalty 1,423 880 795 External Interest 332 13 91 Targeted Rate 0 210 0 General Rate & UAGC (957) (1,069) (209) Internal Interest 8,097 8,199 4,988 Internal Recoveries 10,869 10,390 8,924
Library Assets Vested in Council 1,369 0 0 Asset Vested in Council - Teaching Pool 305 0 0
TOTAL REVENUE 22,879 20,486 16,194
NET COST OF SERVICE 19,677 (259) (850)
TRANSFERS TO / (FROM) RESERVES Asset Vested in Council 305 0 0 Debt Repayments 459 169 267 Other Transfers to/(from reserves) (21,321) (119) 691 NET RESERVE TRANSFERS (20,557) 50 958
(SURPLUS) / DEFICIT AFTER TRANSFERS (880) (209) 108
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 90
Capital Works programme
16 Months to 16 Months to 2009 31 October 2010 31 October 2010 Actual Capital Works $000 $000 $000 Actual Budget
Property Management 411 780 448
Significant Capital expenditure projects are - Actual Budget Actual
Manukau Rd Office Deferred Works (renewals) 147 191 153 Library Security System 134 170 0 Other capital projects 130 419 295
411 780 448
No vehicles being purchased in the 16 months leading to the reorganisation of Auckland councils is the main reason for the under spend in this budget. The budget for vehicle purchases was $325,000.
16 Months to 16 Months to 2009 31 October 2010 31 October 2010 Actual Capital Works $000 $000 $000 Actual Budget
Information Systems 247 653 242
Only essential work was undertaken in this activity pending the reorganisation of Auckland council's.
Significant asset additions & replacements for the 16 months to 31 October 2010 include:
Property Management Minor Property Renewals $202,000 Teaching Pool (Aquatic Centre) $297,000 Manukau Road Office Renewals $284,000
Information Management Systems Upgrades $74,000 Hardware Upgrades $90,000
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 91
NOTES AND STATEMENTS SUPPORTING THE FINANCIAL RESULTS
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 92
NOTES TO THE FINANCIAL STATEMENTS
GENERAL INFORMATION The Franklin District Council (FDC) is a territorial authority governed by the Local Government Act 2002.
Franklin District Council had a funding agreement with the Franklin Arts Cultural and Library Trust and was the settlor of the Trust and was able to appoint one trustee to the Trust. It was a council organisation in terms of the Local Government Act 2002. On 30 June 2010 the Trust was wound up and the library function brought back as an ‘in-house’ business unit. A new Trust was formed to carry out the arts, culture and heritage functions. The Franklin District Council has no influence on the activities of the new Trust.
The Council’s operations are grouped into the following activities:
Leading the Franklin District which includes Representation, Strategic Planning and Policy Growing the Franklin Economy which includes Economic Development and Town Centre Management Moving around Franklin which includes Land Transportation Protecting the Franklin Environment which includes Building, Regulatory, Emergency Management, Land Drainage, Solid Waste Management, Stormwater, Wastewater and Water Supply Living and Playing in Franklin which includes Art and Culture, Community Partnerships, Community Facilities, Open Spaces and Amenities.
The Council is a public-benefit entity as defined under New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”). The Council’s primary objective is to provide services and facilities for the community as a social benefit rather than to make a financial return.
The financial statements of Franklin District Council are for the 16 months to 31 October 2010, comparatives are for the year to 30 June 2009. The financial statements were authorised for issue by the Auckland Council on 24 February 2011.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
Note: Group financial statements are not required for the 16 months to 31 October 2010 as the Franklin District Art Culture and Library Trust, the only entity included in the Franklin District Councils consolidation, was disestablished on 30 June 2010. The library function was brought ‘in-house’ and the arts and culture functions are now performed by an independent trust.
(a) Basis of preparation
Statement of compliance The financial statements of the Council and Group have been prepared in accordance with the requirements of the Local Government Act 2002: Part 6, Section 98 and Part 3 of Schedule 10, which includes the requirement to comply with New Zealand generally, accepted accounting practice (“NZ GAAP").
These financial statements have been prepared in accordance with NZ GAAP. They comply with NZ IFRS, and other applicable Financial Reporting Standards, as appropriate for public benefit entities.
The Local Government (Tamaki Makaurau Reorganisation) Act 2009 that was enacted on 23 May 2009 dissolved Franklin District Council on 31 October 2010. The functions, duties and powers of Franklin District Council became the functions, duties and powers of the Auckland Council – the single unitary
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 93
authority responsible for governing the Auckland region, Waikato District Council or Hauraki District Council from 1 November 2010. Franklin District Council’s assets, rights, liabilities, contracts, entitlements and engagements are vested in the Auckland Council group, Waikato District Council or Hauraki District Council at that date. The dissolution of Franklin District Council requires the financial statements to be prepared on a dissolution basis, not the normal going-concern basis. All the services Franklin District Council delivered continue to be delivered by the Auckland Council group, Waikato District Council or Hauraki District Council. Because the operations, assets and liabilities of Franklin District Council have been transferred to the Auckland Council group, Waikato District Council or Hauraki District Council, no adjustments have been made in the financial statements resulting from the adoption of the dissolution basis of preparation, nor have there been any changes to the carrying values of the assets.
Comparative information The Local Government (Tamaki Makaurau Reorganisation) Act 2009 requires Auckland Council to complete a report and financial statements of Franklin District Council for the 16 month period to 31 October 2010. The period is expressed in the financial statements as 2009/2010. Actual and budget financial information for 2009/2010 covers the 16 month period. Comparative information for the preceding financial period, 2008/2009, covers 12 months. The two periods are therefore not directly comparable.
Changes in Accounting Policies The financial statements for the 16 months ended 31 October have been prepared on a dissolution basis as were the prior year statements. All previous financial statements were prepared on a going concern basis. However, as noted above, no adjustments have been made to the carrying values.
Measurement base The financial statements have been prepared on an historical cost basis, modified by the revaluation of infrastructure assets and certain classes of property, plant and equipment.
Functional and presentation currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the Council is New Zealand dollars.
Accounting Standards and Interpretations
The Council has adopted the following revision to accounting standards during the financial period, which has had only a presentational or disclosure effect:
NZ IAS 1 Presentation of Financial Statements (revised 2007) replaces NZ IAS 1 Presentation of Financial Statements (Issued 2004). The revised standard requires information in financial statements to be aggregated on the basis of shared characteristics and introduces a statement of comprehensive income. The statement of comprehensive income will enable readers to analyse changes in equity resulting from non-owner changes separately from transactions with owners. The Council has decided to prepare a single statement of comprehensive income for the 16 months ended 31 October 2010 under the revised standard. Financial statement information for the year ended 30 June 2009 has been restated accordingly. Items of other comprehensive income were previously recognised directly in the statement in changes in equity.
NOTE: There are a number of standards approved that are not effective yet but will not apply to the Council as it has been dissolved at balance date.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 94
ACCOUNTING POLICIES
(b) Consolidation
The Franklin District Council has no controlling interest in any associate, subsidiary or joint venture at 31 October 2010. The comparatives for the year to 30 June 2009 are consolidated and include the Franklin District Council and its in-substance subsidiary – Franklin District Art Culture and Library Trust.
(c) Foreign currency translation
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities are recognised in the profit or loss.
(d) Property, plant and equipment
Property, plant and equipment consist of: Operational assets These include land, buildings, improvements, library books, plant and equipment, office & computer equipment, furniture & fittings, transfer stations and motor vehicles.
Restricted assets Restricted assets are parks, reserves and public buildings owned by the Council which provide a benefit or service to the community and cannot be disposed of because of legal or other restrictions.
Infrastructural assets Infrastructure assets are the fixed utility systems owned by the Council. Each asset class includes all items that are required for the network to function, for example, sewer reticulation includes reticulation piping and sewer pump stations and roading includes the carriageway, streetlights, traffic signals etc.
Initial recognition Property, plant and equipment are initially shown at cost or at fair value in the case where an asset is acquired at no cost, or for a nominal cost. Cost includes any costs that are directly attributable to the acquisition of the items.
Land under Roads Land under Roads was valued based on fair value of adjacent land determined by G Morrow of Opus International Consultants Limited, effective 30 June 2005.
Infrastructure Assets The following assets are shown at fair value based on annual valuations carried out by external independent valuers (or Council staff with the valuation methodology and calculations independently audited by a registered valuer), less subsequent depreciation. Any accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Revalued assets are carried at a value not materially different from fair value.
Roading Infrastructure Assets (Roads) were valued by Gregg Morrow of Opus International Consultants Limited, independent registered engineers, as at 31 October 2010. The valuation was based on depreciated replacement cost. The valuation methodology is consistent with NZ IAS16 (Property Plant & Equipment) and with New Zealand Local Authority Asset Management Practice, New Zealand Infrastructure Asset Management Manual and Valuations/Depreciation guidelines.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 95
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Water Supply, Wastewater, and Stormwater Infrastructure Assets were valued by Franklin District Council staff based on depreciated replacement cost methodology as at 30 June 2010. The valuation methodology and calculations were audited by Wilson Penman, Registered Valuer of ValNet Ltd. The valuation methodology is consistent with the guidelines NZ IAS16, Valuation standard VS3 and NAMS “NZ Infrastructure Asset Valuation and Depreciation Guidelines”.
Restricted Assets Land and Buildings (Restricted) Fixed Assets were valued by Kerry Stewart of Darroch Valuations Limited, independent registered valuers, as at 30 June 2010. The valuation was based on depreciated replacement cost. The valuation methodology is consistent with NZ IAS16 (Property Plant & Equipment) and with New Zealand Local Authority Asset Management Practice, New Zealand Infrastructure Asset Management Manual and Valuations/Depreciation guidelines.
Accounting for revaluations Franklin District Council accounts for revaluations of property, plant and equipment on a class of assets basis.
Increases in the carrying amounts arising on revaluation of an asset are credited to the revaluation reserve for that class of asset. To the extent that the revaluation reverses a decrease previously recognised in the profit or loss, the increase is first recognised in the profit or loss. Decreases that reverse previous increases of the same asset class are first charged against revaluation reserves which is part of comprehensive income and accumulated as a separate component of equity to the extent of the remaining reserve attributable to the class; all other decreases are charged to the profit or loss.
Asset Additions Additions between valuations are recorded at cost, except for vested assets. Assets are vested in the Council as part of the subdivision process. Reserve land is valued at the latest certified valuation as provided by the Council’s nominated valuation service provider. Vested infrastructure assets are valued based on the actual quantities of infrastructure components vested and the current “in the ground” cost of providing identical services. The fair value of vested assets is recognised as income in the statement of comprehensive income.
Only assets with a life of over one year and value of over $2,000 are capitalised. Capital expenditure during the period on uncompleted projects is classified as Capital Work in Progress and recorded at cost. Subsequent expenditure on an asset which restores or increases the service potential of the asset beyond the current economic benefit of that asset is capitalised.
Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are recognised in the profit or loss. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to retained earnings.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 96
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Depreciation Land is not depreciated. Depreciation on assets measured at historical cost is provided on a straight-line basis at rates that will write off the cost of the assets to their estimated residual values over their useful lives.
The useful lives of major classes of assets have been estimated as follows:
Land Not Depreciated Buildings 40 to 80 years Straight Line Land Improvements 15 to 50 years Straight Line Motor Vehicles 4 years Straight Line Information Systems (Hardware) 3 to 5 years Straight Line Library Collections-Books 10 years Straight Line Library Collections-Microfilm 50 years Straight Line Furniture & Fittings 5 to 10 years Straight Line
Infrastructure assets are depreciated on a straight-line basis. The useful lives are as follows:
Water Reticulation Pipes (1) 40-80 years Valves, Hydrants 60 years Pump Stations 15 to 20 years Reservoirs & Tanks 15 to 80 years
Wastewater Reticulation Pump Stations 25 years Reticulation (1) 50 to 80 years Treatment Plant 5 to 50 years
Roads Land & Formation Not depreciated Pavement (sealed) (2) 30 to 50 years Pavement (unsealed) (2) 30 years Surfacing (2) 8 to 12 years Footpaths 100 years Kerb & Channel 60 years Drainage 60 years Bridges & Culverts 65 to 100 years
Stormwater Systems Pipes 80 years Manholes, Cesspits 50 to 80 years Flood Control Systems 25 to 100 years
Notes: (1) Life depends on material type of pipe; (2) Life depends on road type and traffic volumes.
Capital work in progress Capital works in progress are not depreciated. The total cost of a project is transferred to the relevant asset class on its completion and then depreciated.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 97
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(e) Intangible assets
Computer software Computer software licences are capitalised based on the costs incurred to acquire and bring to use software. Costs are amortised using the straight-line method over their estimated useful lives (three to five periods). Costs associated with maintaining computer software programmes are recognised as an expense when incurred. Costs directly associated with the development of identifiable and unique software products are recognised when the following criteria are met: • It is technically feasible to complete the software product so that it will be available for use; • Management intends to complete the software product and use or sell it; • There is an ability to use or sell the software product; • It can be demonstrated how the software product will generate probable future economic benefits; • Adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and • The expenditure attributable to the software product during its development can be reliably measured. Computer software development costs recognised as assets are amortised using the straight-line method over their estimated useful lives (3 to 5 years). Staff training costs are recognised as an expense when incurred.
Impairment of non-financial assets Intangible assets that have an indefinite useful life, or not yet available for use, are not subject to amortisation and are tested annually for impairment. Assets that have a finite useful life are reviewed for indicators of impairment at each balance date. When there is an indicator of impairment the asset’s recoverable amount is estimated. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.
Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits or service potential. The value in use for cash-generating assets and cash generating units is the present value of expected future cash flows.
If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets the impairment loss is recognised against the revaluation reserve for that class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the profit or loss. For assets not carried at a revalued amount, the total impairment loss is recognised in the profit or loss.
The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent that an impairment loss for that class of asset was previously recognised in the profit or loss, a reversal of the impairment loss is also recognised in the profit or loss.
For assets not carried at a revalued amount (other than goodwill) the reversal of an impairment loss is recognised in the profit or loss.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 98
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(f) Investments and other financial assets
Financial assets The classification depends on the nature and purpose for which the financial assets were acquired. The Council determines the classification of its financial assets at initial recognition.
Financial assets are initially measured at fair value plus transaction costs unless they are carried at fair value through profit and loss in which case the transaction costs are recognised in the profit or loss.
Purchases and sales of financial assets are recognised at trade-date, the date on which the Council commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Council has transferred substantially all the risks and rewards of ownership.
The Group classifies its financial assets in the following categories:
a) Financial assets at fair value through profit or loss are assets held for trading and those designated at fair value through profit or loss at inception. Assets in this category are classified as current assets if they are held for trading or expected to be realised within 12 months of balance date, currently the Council does not have any financial assets of this class.
After initial recognition they are measured at their fair value. Gains or losses on re-measurement are recognised in the profit or loss.
b) Loans and Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition they are measured at amortised cost using the effective interest rate method less any impairment. Gains and losses when the asset is impaired or derecognised are recognised in the profit or loss. They are classified as “Trade and Other Receivables” and “Other Financial Assets” in the statement of financial position. Community Loans fall into this category. c) Held to maturity investments are assets with fixed or determinable payments and fixed maturities that the Council has the positive intention and ability to hold to maturity. After initial recognition they are measured at amortised cost using the effective interest rate method. Gains and losses when the asset is impaired or derecognised are recognised in the profit or loss; currently the Council does not have any financial assets of this class d) Available for sale financial assets are those that are stated at fair value and are not classified in any other category. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the balance date. These may be investments the Council intends to hold long term but may be realised before maturity and shareholdings that the Council holds for strategic purposes
On derecognition the cumulative gain or loss previously recognised in equity is recognised in the profit or loss.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 99
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Impairment of financial assets Financial assets are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For all other financial assets objective evidence of impairment could include:
• significant financial difficulty of the issuer or counterparty; or • default or delinquency in interest or principal payments; or • it becoming probable that the borrower will enter bankruptcy or financial re-organisation.
For certain categories of financial assets, such as trade receivables, assets that are assessed not to be impaired individually are subsequently assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Council’s past experience of collecting payments, an increase in the number of delayed payments, as well as observable changes in national or local economic conditions that correlate with default on receivables.
For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through an allowance account.
When a trade receivable is considered uncollectible, it is written off against profit or loss. Subsequent recoveries of amounts previously written off are credited against profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. In respect of ‘available for sale’ equity instruments, impairment losses previously recognised through profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income and accumulated as a separate component of equity in the available for sale revaluation reserve.
The carrying amount of the Council’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.
Any impairment losses are recognised in the profit or loss.
(g) Financial instruments and Hedging
The Council is party to financial instruments as part of its normal operations. These include bank accounts, investments, debtors, creditors and loans. All instruments are recognised in the statement of financial position and all revenues and expenses are recognised in the statement of comprehensive income. The Council has a negligible credit risk in respect of its investments, by having a policy of only investing within the limitations of the Trustee Act in well established banks, government stock and with other local authorities. Because outstanding rates are deemed to be a charge on the land, the Council's exposure to risk is minimal. The Council's shareholding and guarantees are shown in the case of investments at the lower of cost or estimated market value, and in the case of guarantees at the maximum amount guaranteed. Derivative financial instruments and hedging are allowable in the Council’s Revenue and Funding Policy.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 100
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Cash Flow Hedge The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income and accumulated as a separate component of equity in the cash flow hedge reserve and the ineffective portion of the gain or loss on the hedging instrument is recognised in the statement of comprehensive income as part of “gains” or “other expenses”.
If a hedge of a forecast transaction subsequently results in the recognition of a financial asset or a financial liability, the associated gains or losses that were recognised in the cash flow hedge reserve will be reclassified into profit or loss in the same period or periods during which the asset acquired or liability assumed affects profit or loss. However, if the Council expects that all or a portion of a loss recognised in the cash flow hedge reserve will not be recovered in one or more future periods, it will reclassify into profit or loss the amount that is not expected to be recovered
When a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, or a forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair value hedge accounting is applied, then the associated gains and losses that were recognised in the cash flow hedge reserve equity will be included in the initial cost or carrying amount of the asset or liability.
(h) Inventories Inventories held for consumption in the provision of services that are not supplied on a commercial basis are measured at the lower of cost and current replacement cost.
(i) Trade and other receivables
Trade and other receivables are stated at their amortised cost less any provision for impairment. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.
Loans, including loans to community organisations made by the Council at nil, or below market interest rates are initially recognised at the present value of their expected cash flows, discounted at current market rate of return for similar investments. They are subsequently measured at amortised cost using the effective interest method. The difference between the face value and present value of expected future cash flows of the loan is recognised in the profit or loss as a grant.
A provision for impairment of receivables is established when there is objective evidence that the Council will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset’s carrying value amount and the present value of estimated future cash flows, discounted using the effective interest method. Franklin District Council has a provision for doubtful debts (see Note 5).
(j) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.
(k) Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. They are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade and other payables are initially measured at fair value and subsequently measured at amortised cost, using the effective interest method.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 101
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(l) Borrowings All borrowing costs are recognised as an expense in the period in which they are incurred.
Facility fees Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. In other cases the fee is capitalised as a pre payment for liquidity services and amortised over the period of the facility to which it relates.
(m) Goods and Services Tax (GST) All items in the financial statements are stated exclusive of GST, except for debtors and other receivables and creditors and other payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the Inland Revenue Department is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST.
(n) Employee benefits Short term benefits, including wages and salaries accrued at balance date, annual leave earned but not taken, retiring and long service leave entitlements expected to be settled in the next twelve months are measured at nominal values based on the rate expected to apply at the time of settlement.
Franklin District Council has an ‘open health leave’ policy. Permanent employees are paid health leave at their normal rate of pay for the duration of their recovery, subject to the provision of a medical certificate if the leave is for three or more consecutive days and the reason for the health leave is genuine. The Council recognises sick leave in the profit or loss as and when it is taken.
Long term benefits, including retiring and long service leave entitlements that are payable beyond 12 months have been calculated on the basis on: The likelihood of entitlement accruing to staff based on years of service, years to entitlement and the likelihood that staff will reach the point of entitlement and contractual entitlements information; and The present value of estimated future cash flows: A discount rate of 7.25% and an inflation factor of 2.5% were used. The discount rate is based on the weighted average of Government interest rates for stock with terms to maturity similar to those of the relevant liabilities. The inflation factor is based on the expected long term increase in remuneration for employees.
(o) Budget Figures The budget figures are those approved by the Council at its meeting to adopt the Franklin District Council Community Plan 2009-2019 in June 2009 and the Annual Plan 2010-2011 in June 2010. The budget figures have been prepared in compliance with NZ IFRS and are in line with the accounting policies adopted by the Council for the preparation of the financial statements.
(p) Third Party Transfer Payment Agencies The Council collects monies for many organisations. Where collections are processed through the Council’s books, any monies held are shown as accounts payable in the statement of financial position. Amounts collected on behalf of third parties are not recognised as revenue, but commissions earned from acting as agent are recognized as revenue.
(q) Cost of Services Statements The Cost of Services Statements report the net cost of services for the significant activities of the Council. They are represented by all costs of providing the service less all revenue that can be allocated to those activities.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 102
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(r) Overhead Allocation Direct Costs are those costs directly attributable to a significant activity. Indirect costs are charged to significant activities based on related activity/usage and cost drivers. The costs of organisational support services (i.e. Customer Services Team, Executive and Finance, etc) have been allocated to each significant activity on the basis of appropriate cost drivers such as square footage, numbers of employees, actual usage etc.
(s) Grant Expenditure Non discretionary grants are those grants that are awarded if the grant application meets the specified criteria and are recognised as expenditure when an application that meets the specified criteria for the grant has been received.
Discretionary grants are those grants where the Council has no obligation to award on receipt of a grant application and are recognised as expenditure when a successful applicant has been notified of the Council’s decision.
(t) Provisions The Council recognises a provision for future expenditure of uncertain amount or timing when: the Council has a present obligation (legal or constructive) as a result of a past events; it is probable that expenditures will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in “finance costs”.
Provision has been made for future environmental obligations in respect of closed landfills and other assets. This has been made in accordance with NZ IAS 37 “Provisions, Contingent Liabilities and Contingent Assets. Note 11(b) discloses an analysis of the exposure of the Council in relation to the estimates and uncertainties surrounding the landfill aftercare provision.
The provision for weathertightness claims is extended to include legal claims lodged with the Weathertightness Homes Resolution Service but not yet advised to Franklin District Council and claims expected to be lodged in the future with the Council or the Weathertightness Homes resolution Service.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 103
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(u) Revenue recognition Revenue is measured at the fair value of consideration received.
(i) Rates revenue Rates are set annually by a resolution from Council and relate to a financial period. All ratepayers are invoiced within the financial period to which the rates have been set. Rates revenue is recognised when receivable. (ii) Development contributions The recognition of revenue point for financial or development contributions is at the later point of when the Council is ready to provide the service for which the contribution has been levied, or the event that will give rise to a requirement for a financial or development contribution under the legislation. (iii) Other revenue •Water billing revenue is recognised on an accrual basis. Unbilled usage, as a result of unread meters at period end, is accrued on an average usage basis. •Traffic and parking infringements are recognised when issued. •Revenue derived from licences and permits is recognised on application. •The Council receives grants from Land Transport New Zealand, which subsidises part of the Council’s costs in maintaining the local roading infrastructure. The subsidies are recognised as revenue upon entitlement as conditions pertaining to eligible expenditure have been fulfilled. •Revenue from rendering of services is recognised by reference to the stage of completion of the transaction at balance date, based on the actual service provided as a percentage of the total services to be provided •Where revenue is derived by acting as an agent for another party, the revenue that is recognised is the commission or fee on the transaction. •Interest income is recognised using the effective interest method. •Dividends are recognised when the right to receive payment has been established. •Vested assets and charitable assets – when received.
(v) Leases An operating lease is a lease that does not transfer substantially all risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight line basis over the term of the lease.
(w) Equity Equity is the community’s interest in the Council and is measured as the difference between total assets and total liabilities. Public equity is classified into a number of reserves to enable clearer identification of the specified uses the Council makes of its accumulated surpluses. The components of equity are:
• Ratepayer Equity • General Rate Reserve • Special Funds • Operating and Separate Reserves • Capital Reserves • Asset Revaluation Reserves
Reserves represent components of equity assigned for a particular use. Special Funds are subject to specific conditions and may not be revised by the Council without reference to the courts or a third party.
Ratepayer Equity and Operating and Separate Reserves are established by Council resolutions and transfers to and from these reserves may be made at the discretion of the Council. Capital Reserves are funded by proceeds from the sale of property and revenue received from funded depreciation.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 104
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Statement of Cash Flows Cash: represents cash balances on hand, held in bank accounts or overdrafts and call deposits which the Council invests as part of its day to day cash management.
Operating Activities: includes cash received from all income sources and paid to all suppliers of goods and services and other activities that are not investing activities or financing activities. Agency collections and payments are included as they flow through the Council’s main bank account.
Investing Activities: relate to the acquisition and disposal of non-current assets.
Financing Activities: represent activities that change the equity and debt capital structure of the Council.
Changes in accounting policies The financial statements for the 16 months to 31 October 2010 have been prepared on a dissolution basis. All previous financial statements were prepared on a going concern basis. There has been no impact on the financial statements
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
In preparing these financial statements the Council has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates, judgements and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are:
Landfill Aftercare Provision Provision has been made for future environmental obligations in respect of closed landfills and other assets. This has been made in accordance with NZ IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”. Note 11(b) discloses an analysis of the exposure of the Council in relation to the estimates and uncertainties surrounding the landfill aftercare provision.
Infrastructural Assets There are a number of assumptions and estimates used when performing depreciated replacement cost valuations over infrastructure assets. These include:
The physical deterioration and condition of the assets, for example, the Council could be carrying an asset at an amount that does not reflect its actual condition. This is particularly so for those assets which are not visible (underground stormwater, wastewater and water pipes). The risk is minimised by the Council performing a combination of physical inspections and condition modelling assessments. Estimating any obsolescence or surplus capacity of an asset. Estimates are made determining the remaining useful life over which an asset will be depreciated. These estimates can be impacted by local conditions, e.g. weather patterns and traffic growth. If the useful lives do not reflect the actual consumption of the benefits of the asset, then the Council could over or under estimate the annual depreciation charges recognised as an expense in the profit or loss. To minimise the risk infrastructure asset useful lives have been determined with reference to the NZ Infrastructural Asset Valuation and Depreciation Guidelines published by the National Asset Management Steering Group and have been adjusted for local conditions based on past experience. Asset inspections, deterioration and condition modelling are also carried out regularly as part of the Council’s asset management planning activities. This gives further assurance over useful life estimates.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 105
NOTES TO THE FINANCIAL STATEMENTS
Note 1 - Revenue
Year Ended TARGETED RATES 16 Months to 31 October 2010 30 June 2009 $000 $000 Actual Budget Actual Representation 177 176 159 Economic Development 879 865 609 Town Centre Management 2,155 2,160 1,326 Transport 0 0 278 Emergency Management 27 27 20 Land Drainage 127 146 134 Solid Waste 1,479 1,412 895 Stormwater Drainage 3,717 3,676 2,281 Water Supply 5,581 7,430 5,221 Wastewater 7,400 7,326 5,257 Art Culture & Heritage 476 465 0 Community Facilities 747 702 601 22,765 24,385 16,781
DISTRICT WIDE RATES 16 Months to 31 October 2010 Year Ended $000 30 June 2009
Actual Budget Actual Representation 4,769 4,769 3,633 Strategic Planning & Policy 4,012 4,011 2,618 Economic Development 506 506 400 Town Centre Management 573 573 287 Transport 14,991 14,964 9,867 Emergency Management 458 458 319 Regulatory 2,953 2,953 2,383 Solid Waste 1,036 1,036 836 Stormwater Drainage 2,325 2,325 2,090 Art Culture & Heritage 3,759 3,761 3,092 Community Facilities 1,299 1,299 989 Community Services 52 52 20 Open Space Amenities 5,908 5,908 3,580 Miscellaneous (957) (1,069) (209) 41,684 41,546 29,905
TOTAL RATES 64,449 65,931 46,686
In accordance with Local Government (Rating) Act 2002 certain properties cannot be rated for general rates. This includes schools, places of religious worship, public gardens and reserves. These non-rateable properties, where applicable, may be subject to targeted rates in respect of sewerage, water, refuse, and sanitation. Non-rateable land does not constitute a remission under the Council's rate remission policy.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 106
Note 1 Revenue (continued)
Rates remissions Rates revenue is shown net of rates remissions. The Council has established a rate remissions policy under the Local Government (Rating) Act 2002. It allows the Council to remit rates in the following circumstances: (See Note 21)
Year Ended REVENUE FROM ACTIVITIES 16 Months to 31 October 2010 30 June 2009 $000 $000 Actual Budget Actual Representation 23 70 3 Strategic Planning & Policy 139 15 454 Town Centre Management 1 0 0 Transport 673 789 614 Emergency Management 60 48 51 Land Drainage 1 0 186 Regulatory 5,331 6,157 4,102 Solid Waste 1,678 1,529 885 Stormwater Drainage 369 351 326 Wastewater 725 540 508 Water Supply 608 718 313 Art Culture & Heritage 63 0 0 Community Facilities 383 313 322 Community Services 815 790 548 Open Space Amenities 484 499 292 Miscellaneous 22,162 21,346 16,403 33,515 33,165 25,007 GRANTS & SUBSIDIES Strategic Planning & Policy 11 0 0 Transport 13,668 14,697 10,808 Emergency Management 5 0 4 Stormwater Drainage 329 275 467 Art Culture & Heritage 80 45 36 Community Services 7 71 61 Open Space Amenities 6 0 3 14,106 15,088 11,379
DEVELOPMENT CONTRIBUTIONS Transport 2,667 2,736 1,181 Stormwater Drainage 1,742 1,491 1,177 Wastewater 1,976 1,475 972 Water Supply 683 529 352 Community Facilities 716 625 347 Open Space Amenities 1,161 1,193 499 8,945 8,049 4,528
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 107
Note 1 Revenue (continued)
Year Ended 16 Months to 31 October 2010 30 June 2009 $000 $000 Actual Budget Actual
ASSETS VESTED IN COUNCIL Transport 3,425 1,061 3,301 Stormwater Drainage 7,649 1,784 3,664 Wastewater 1,940 892 1,326 Water Supply 964 587 519 Art Culture & Heritage 8 0 0 Community Facilities 1,666 0 0 15,652 4,324 8,810
TOTAL REVENUE 136,667 126,557 96,410
less Internal Charges 18,656 18,338 12,991 118,011 108,219 83,419
Note 2a – Revenue Summary
Council Group 31 October 2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 Grants and Subsidies 14,106 11,379 11,111 Interest * 167 91 109 Other Fees and Charges 14,692 11,925 12,065 Revenue From Activities 28,965 23,395 23,285
Targeted Rates 22,765 16,781 16,781
District Wide Rates 41,684 29,905 29,905
Vested Assets 15,652 8,810 8,838 Subdivision Contributions 8,945 4,528 4,528 Profit on Disposal of Assets 0 0 0 Other Revenue 24,597 13,338 13,366
Total Revenue 118,011 83,419 83,337 * The daily average interest rates ranged between 2.50% and 4.28% (2.5% and 8.0% in 2009).
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 108
Note 2b – Expenses Summary
Council Group 31 October 2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 Employee Benefits * Salaries & Wages 14,923 9,898 11,149 Increase (Decrease) in employee benefits 134 (68) (68) Total Employee Benefits 15,057 9,830 11,081
Depreciation & Amortisation - Transportation 11,160 7,917 7,917 - Water Supply 2,461 1,747 1,747 - Wastewater 2,612 1,776 1,776 - Stormwater Drainage 2,055 1,327 1,327 - Parks and Reserves 523 254 254 - Town Centre Redevelopment 254 114 114 - Information Systems 598 537 537 - Property Management 470 218 218 - Other 1,360 675 957 Total Depreciation & Amortisation 21,493 14,565 14,847 Interest Expense on Term Liabilities 8,068 4,773 4,773 Audit Fee 192 180 182 Change in Provision for Doubtful Debts (42) (8) (9) Bad Debts Written Off 8 0 0 Loss on Disposal of Assets 18,964 10 110 Donations 9 14 15 Lease Costs 26 134 151 Contractors & Professional Services 30,505 23,310 23,351 Other Operating Expenses 22,362 11,985 10,327 Total Other Expenses 72,024 35,625 34,127
Total Expenditure 116,642 64,793 64,828
Operating Surplus 1,369 18,626 18,509
* Employee Benefits include redundancies of $768,019 arising from the dissolution of the Franklin District Council paid in accordance with the Local Government (Auckland Transitional Provisions) Act 2010.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 109
Note 3 – Equity
Council Group 31 October2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 Balance at 1 July 2009 1,149,099 1,094,207 1,095,740 Transfers from Special Funds (13,514) (11,799) (11,799) Transfers to Special Funds 8,905 4,518 4,518 Transfers from General Rate Reserve (2,925) (35) (35) Transfers from Operating & Separate Reserves (2,148) (1,050) (1,050) Transfers to Operating & Separate Reserves 33 1,738 (1,738) Transfers from Capital Reserves (20,766) (16,624) (16,624) Transfers to Capital Reserves 24,463 15,513 15,513 Transfers from Ratepayer Equity 7,321 25,963 25,846 Transfers from General Rate Reserve 0 2 2 Net Operating Surplus 1,369 18,626 18,509 Transfers to Asset Revaluation Reserves 73,545 36,266 36,266 Balance at 31 October 2010 1,224,013 1,149,099 1,150,515 Council Group 31 October2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 General Rate Reserve Balance at 1 July 762 795 795 Transfer from retained earnings (2,925) (35) (35) Transfers to retained earnings 0 2 2 Balance at 31 October 2010 (2,163) 762 762
Special Funds Balance at 1 July (27,504) (20,223) (20,223) Transfer to retained earnings (13,514) (11,799) (11,799) Transfers from retained earnings 8,905 4,518 4,518 Balance at 31 October 2010 (32,113) (27,504) (27,504)
Operating & Separate Balance at 1 July 4,558 3,870 3,870 Transfer to retained earnings (2,148) (1,050) (1,050) Transfers from retained earnings 33 1,738 (1,738) Balance at 31 October 2010 2,443 4,558 4,558
Capital Reserves Balance at 1 July 24,863 25,574 25,574 Transfer to retained earnings (20,766) (16,624) (16,624) Transfers from retained earnings 24,463 15,513 15,513 Balance at 31 October 2010 28,560 24,863 24,863
Ratepayer Equity Balance at 1 July 384,608 358,645 360,178 Transfer from retained earnings 7,321 25,963 25,846 Balance at 31 October 2010 391,929 384,608 386,024
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 110
Council Group 31 October2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 Asset Revaluation Reserves Balance at 1 July 761,812 725,546 725,546 Revaluation 73,545 36,266 36,266 Balance at 31 October 2010 835,357 761,812 761,812
Council Group 31 October2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 Asset Revaluation Reserves consist of: Roading Network 397,640 401,919 401,919 Land Under Roads 236,648 236,648 236,648 Wastewater 35,428 35,229 35,229 Water Supply 34,060 34,801 34,801 Stormwater 44,299 46,118 46,118 Land Drainage 754 754 754 Other Revaluation Reserves 86,528 6,343 6,343 Asset Revaluation Reserve 835,357 761,812 761,812
Reserves represent components of equity assigned for a particular use.
Special Funds are subject to specific conditions and may not be revised by the Council without reference to the courts or a third party.
Ratepayer Equity and Operating and Separate Reserves are established by Council resolutions and transfers to and from these reserves may be made at the discretion of the Council.
Capital Reserves are funded by proceeds from the sale of property and revenue received from funded depreciation.
Asset Revaluation Reserves arise on the revaluation of certain types of property plant and equipment that are measured at fair value. Note 4 – Cash & Cash Equivalents
Council Group
31 October2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 Cash at Bank 117 185 259 Cash and Cash Equivalents 181 3,624 3,634 Bank Overdraft (4,000) (14,000) (14,000) (3,702) (10,191) (10,107)
The carrying value of short term deposits with maturity dates of three months or less approximates their fair value. Refer to Note 2(a) for weighted average effective interest rate for cash and cash equivalents. The Council’s bank overdraft is unsecured. The maximum amount that can be drawn against the overdraft facility is $4,000,000 (2009 $14,000,000). There are no restrictions on the use of this facility.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 111
Note 5 – Trade and Other Receivables
Council Group
31 October2010 30 June 2009 30 June 2009
Actual Actual Actual $000 $000 $000 Rates Receivables (Property and Water) 2,628 4,271 4,271 Other Receivables 3,688 2,134 2,162 Land Transport NZ Subsidy 881 949 949 Accrued Income 240 387 387 7,437 7,741 7,769 Less Provision for Doubtful Debts 77 35 54 7,360 7,706 7,715 The carrying value of trade and other receivables approximates their fair value. There is no concentration of credit risk with respect to receivables outside the group, as the group has a large number of customers. The Council does not provide for any impairment on rates receivable as it has various powers under the Local Government (Rating) Act 2002 to recover any outstanding debts. Ratepayers can apply for payment plan options in special circumstances. These powers allow the Council to commence legal proceedings to recover any rates that remain unpaid four months after the due date for payment. If payment has not been made within three months of the court’s judgment, then Council can apply to the Registrar of the High Court to have judgment enforced by sale or lease of the rating unit. At each period end, all overdue receivables, except for rates receivables, are assessed for impairment and appropriate provisions applied. The impairment provision has been calculated based on expected losses for the Council's pool of debtors. Expected losses have been determined based on analysis of the Council's losses in previous periods, and review of specific debtors.
Note 6 – Inventories
Council Group
31 October2010 30 June 2009 30 June 2009
Actual Actual Actual $000 $000 $000 Pipes 15 15 16 15 15 16
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 112
Note 7 – Other Financial Assets
Council Group
31 October2010 30 June 2009 30 June 2009
Actual Actual Actual $000 $000 $000 (a) Current Portion Recreation & Community Loans 287 311 311 Total Current Portion 287 311 311
(b) Non Current Portion Shares in Companies (Note 7c) 62 62 62 Rural Housing Loans 0 0 0 Recreation & Community Loans 795 840 836 Total Non Current Portion 857 902 898
The fair value of recreation and community loans is $1,082,000 (2009 $1,151,000). Fair value has been determined using cash flows discounted at a rate based on the loan recipients financial risk factors of 7.25% (2009 7.25%). The face value of community loans is $1,331,000 (2009 $1,477,000).
Council Council
31 October2010 31 October2010 30 June 2009 30 June 2009
(c) Shares in Companies Book Value Fair Value Book Value Fair Value Local Government Insurance Co. Ltd** (61,767 ordinary shares or 1.0% (1.0% 2009) of the issued capital) 62 192 62 186
** An estimate based on Council's share of the net assets
(d) Interest Rate and Maturities Structure - Cash and Cash Equivalents The weighted average effective interest rates on cash and cash equivalents and the associated maturities are as follows:
Average Maturity Periods Effective < 6 months 6-12 months 1-2 years >2 years Total Council - 2010 Interest Rate $000 $000 $000 $000 $000 Cash and Cash Equivalents 3.39%298000298
Council - 2009 Cash and Cash Equivalents 2.50%3,8090003,809
Group - 2009 Cash and Cash Equivalents 2.50% 3,8930003,893
Average Effective Interest Rate 2010 2009 2008 2007 2006 2005 %%%%%% Cash and Cash Equivalents 3.39% 2.50 8.25 8.00 7.49 7.02
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 113
Note 8 – Property Plant & Equipment 31 October 2010
Fixed Assets – 31 October 2010
1 July 2009 Current Year 31 October 2010 Profit Cost Accumulated Carrying Revaluation Cost Accumulated Carrying Additions Disposals Depreciation (Loss) on Revaluation Depreciation Amount Surplus Revaluation Depreciation Amount Disposal Restricted Assets* $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land 24,040 0 24,040 1,731 76,197 101,968 0 101,968 Land Improvements 5,753 261 5,492 5,234 (377) 409 0 (3,699) 6,911 293 6,618 Buildings 27,506 0 27,506 338 (1,054) 1,508 0 3,791 30,581 454 30,127 Total Restricted Assets 57,299 261 57,038 7,303 (1,431) 1,917 0 76,289 139,460 747 138,713 Other Assets Land 10,058 0 10,058 00 003,47213,530 0 13,530 Land Improvements 15 1 14 00 10 0 15 2 13 Buildings 10,263 40 10,223 0 (782) 124 (741) (249) 9,232 123 9,109 Furniture & Fittings 1,468 1,169 299 201 (830) 98 0 0 838 437 401 Information System Hardware 1,637 1,244 393 70 (237) 183 0 0 1,471 1,191 280 Vehicles (Cost) 771 508 263 0 (267) 138 (63) 0 504 442 62 Library Furniture & Fittings 0 0 0 222 0 8 0 0 222 8 214 Library Book Collection 0 0 0 1,340 0 69 0 0 1,340 69 1,271 Capital Work in Progress 9,549 0 9,549 (2,015) 0 0 0 0 7,534 0 7,534 Total Other Assets 33,761 2,962 30,799 (182) (2,116) 621 (804) 3,223 34,686 2,272 32,414
Total Restricted and Other Assets 91,060 3,223 87,837 7,121 (3,547) 2,538 (804) 79,512 174,146 3,019 171,127
Infrastructure Assets - 31 October 2010
1 July 2009 Current Year 31 October 2010 Profit Cost Accumulated Carrying Revaluation Cost Accumulated Carrying Additions Disposals Depreciation (Loss) on Revaluation Depreciation Amount Surplus Revaluation Depreciation Amount Disposal Valuation $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Roading 606,524 939 605,585 22,667 (11,018) 11,357 0 (4,227) 613,946 1,278 612,668 Water Supply 65,617 0 65,617 4,257 (1,985) 2,461 0 (741) 67,148 475 66,673 Wastewater 81,341 0 81,341 24,809 (1,853) 2,611 0 233 104,530 758 103,772 Stormwater 104,719 0 104,719 16,325 (1,523) 2,089 0 (1,820) 117,701 566 117,135 Land Drainage 21,387 359 21,028 0 (19,252) 19 (18,901) 232 2,367 28 2,339 Solid Waste 529 4 525 00 30372901 7 894 Cost Land Under Roads 236,648 0 236,648 2,093 0 0 0 0 238,741 0 238,741 Capital Work in Progress 26,259 0 26,259 (14,779) 0 0 0 0 11,480 0 11,480 Total Infrastructure Assets 1,143,024 1,302 1,141,722 55,373 (35,632) 18,541 (18,901) (5,951) 1,156,814 3,112 1,153,702
Total Property Plant & Equipment - Council 1,234,084 4,525 1,229,559 62,494 (39,179) 21,079 (19,705) 73,561 1,330,960 6,131 1,324,829
* Restricted assets are parks, reserves and public buildings owned by the council which provide benefit to the community and cannot be disposed of because of legal or other restrictions. Included in the carrying value for land and buildings are properties which attract rental income and have been purchased for strategic purposes. The carrying value of the rental properties as at 31 October 2010 is $10,645,365 (2009 $11,877,600) and depreciation for the 16 months to 31 October was $62,635 (2009 $38,000).
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 114
Note 9 – Property Plant & Equipment 30 June 2009
Fixed Assets – 30 June 2009
1 July 2008 Current Year 30 June 2009 Profit Cost/ Ac c um ula t ed Carrying Revaluation Cost Accumulated Carrying Additions Disposals Depreciation (Loss) on Revaluation Depreciation Amount Surplus Revaluation Depreciation Amount Disposal Restricted Assets* $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land 20,068 0 20,068 0 0 0 0 3,972 24,040 0 24,040 Land Improvements 6,881 988 5,893 449 (921) 194 0 (656) 5,753 261 5,492 Buildings 16,486 5,035 11,451 1,219 (5,370) 335 0 15,171 27,506 0 27,506 Total Restricted Assets 43,435 6,023 37,412 1,668 (6,291) 529 0 18,487 57,299 261 57,038 Other Assets Land 8,596 0 8,596 6,538 0 0 0 (5,076) 10,058 0 10,058 Land Improvements 578 57 521 0 (68) 12 0 (495) 15 1 14 Buildings 21,034 3,750 17,284 409 (4,267) 557 0 (6,913) 10,263 40 10,223 Furniture & Fittings 2,000 1,321 679 0 (276) 124 0 (256) 1,468 1,169 299 Information System Hardware 1,516 1,084 432 121 0 160 0 0 1,637 1,244 393 Vehicles (Cost) 823 442 381 32 (84) 140 (10) 0 771 508 263 Capital Work in Progress 3,830 0 3,830 5,719 0 0 0 0 9,549 0 9,549 Total Other Assets 38,377 6,654 31,723 12,819 (4,695) 993 (10) (12,740) 33,761 2,962 30,799
Total Restricted and Other Assets 81,812 12,677 69,135 14,487 (10,986) 1,522 (10) 5,747 91,060 3,223 87,837
Infrastructure Assets – 30 June 2009
1 July 2008 Current Year 30 June 2009 Profit Cost/ Ac c um ula t ed Carrying Revaluation Cost Accumulated Carrying Additions Disposals Depreciation (Loss) on Revaluation Depreciation Amount Surplus Revaluation Depreciation Amount Disposal Valuation $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Roading 581,598 798 580,800 19,932 (7,874) 8,015 0 12,868 606,524 939 605,585 Water Supply 62,920 0 62,920 2,087 (1,747) 1,747 0 2,357 65,617 0 65,617 Wastewater 71,216 0 71,216 2,275 (1,776) 1,776 0 9,626 81,341 0 81,341 Stormwater 93,032 0 93,032 7,385 (1,327) 1,327 0 5,629 104,719 0 104,719 Land Drainage 21,387 183 21,204 0 0 176 0 0 21,387 359 21,028 Cost Land Under Roads 236,648 0 236,648 00 00 0236,648 0 236,648 Solid Waste 524 2 522 50 20 0529 4 525 Capital Work in Progress 21,661 0 21,661 4,598 0 0 0 0 26,259 0 26,259 1,088,986 983 1,088,003 36,282 (12,724) 13,043 0 30,480 1,143,024 1,302 1,141,722
Total Property Plant & Equipment - Council 1,170,798 13,660 1,157,138 50,769 (23,710) 14,565 (10) 36,227 1,234,084 4,525 1,229,559
Property, Plant & Equipment (Group) - 30 June 2009
1 July 2008 Current Year 30 June 2009 Profit Cost/ Ac c um ula t ed Carrying Revaluation Cost Accumulated Carrying Additions Disposals Depreciation (Loss) on Revaluation Depreciation Amount Surplus Revaluation Depreciation Amount Disposal Restricted and Other Assets $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land 28,664 0 28,664 6,538 0 0 0 (1,104) 34,098 0 34,098 Land Improvements 7,459 1,045 6,414 449 (989) 206 0 (1,151) 5,768 262 5,506 Buildings 37,520 8,785 28,735 1,628 (9,637) 891 0 8,258 37,769 39 37,730 Furniture & Fittings 2,534 1,526 1,008 15 (276) 186 0 (256) 2,017 1,436 581 Information System Hardware 1,516 1,084 432 121 0 160 0 0 1,637 1,244 393 Vehicles (Cost) 823 442 381 32 (84) 140 (10) 0 771 488 283 Library Books 2,289 982 1,307 298 (161) 221 (100) 0 2,426 1,142 1,284 Capital Work in Progress 3,830 0 3,830 5,719 0 0 0 0 9,549 0 9,549 84,635 13,864 70,771 14,800 (11,147) 1,804 (110) 5,747 94,035 4,611 89,424
Infrastructure Assets 1,088,986 983 1,088,003 36,282 (12,724) 13,043 0 30,480 1,143,024 1,302 1,141,722
Total Property Plant & Equipment - Group 1,173,621 14,847 1,158,774 51,082 (23,871) 14,847 (110) 36,227 1,237,059 5,913 1,231,146
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 115
Note 10 – Intangible Assets 31 October 2010
1 July 2009 Current Year 31 October 2010
Accumulated Carrying Annual Profit (Loss) Revaluation Accumulated Carrying Cost Additions Disposals Cost Amortisation Amount Amortisation on Disposal Surplus Amortisation Amount
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Intangible Assets - Council Computer Software 3,767 2,485 1,282 87 (1,903) 414 0 0 1,952 996 955 3,767 2,485 1,282 87 (1,903) 414 0 0 1,952 996 955
Intangible Assets 30 June 2009
1 July 2008 Current Year 30 June 2009
Accumulated Carrying Annual Profit (Loss) Revaluation Accumulated Carrying Cost Additions Disposals Cost Amortisation Amount Amortisation on Disposal Surplus Amortisation Amount
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Intangible Assets - Council Computer Software 3,647 2,108 1,538 120 0 376 0 0 3,767 2,485 1,282 3,647 2,108 1,538 120 0 376 0 0 3,767 2,485 1,282
1 July 2008 Current Year 30 June 2009
Accumulated Carrying Annual Profit (Loss) Revaluation Accumulated Carrying Cost Additions Disposals Cost Amortisation Amount Amortisation on Disposal Surplus Amortisation Amount
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Intangible Assets - Group Computer Software 3,652 2,109 1,543 120 0 377 0 0 3,772 2,486 1,286 3,652 2,109 1,543 120 0 377 0 0 3,772 2,486 1,286
Note 11 – Trade and Other Payables Council Group 31 October 2010 30 June 2009 30 June 2009
Actual Actual Actual $000 $000 $000 Trade Payables 0 4,209 4,335 Deposits and Bonds 599 663 663 Accrued Expenses 2,009 7,091 7,091 Income In Advance 3,275 1,680 1,680 Interest Accrual 1,226 871 871 Funds Held For Other Parties 64 138 138 7,173 14,652 14,778
Trade and other payables are normally settled on 30-day terms; therefore the carrying value of trade and other payables approximates their fair value.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 116
Note 11 (b) Provision for Closed Landfill Aftercare Costs The Council has responsibility to provide ongoing maintenance and monitoring of closed landfills under the condition of their resource consents. The Council does not operate any landfills. The major sites are Parker Lane, Elbow and Kaiaua. There are post-closure responsibilities which include: treatment and monitoring of leachate ground water and surface monitoring gas monitoring and recovery implementation of remedial measures such as needed for cover and control systems ongoing site maintenance for drainage systems final cover and vegetation.
The long-term nature of the liability means there are inherent uncertainties in estimating costs that will be incurred and timing of those costs. The cash out flows for monitoring and meeting resource consents have been estimated in the Long Term Council Community Plan 2009-2019 taking into account known technology and using a discount rate of 7.25%. The total estimated liability for post closure costs is $649,000. Council 31 October 2010 30 June 2009 Actual Actual $000 $000 Movements in Provision Opening Balance 655 689 Amounts used (23) (63) Additional (Reduced) amounts provided (18) (18) Discounting Charges 35 47 Closing Balance 649 655
Current 75 225 Non Current 574 430 649 655
Note 11(c) Weathertightness
The provision for weathertightness building defects is based on an assessment of claims notified to Council and also includes legal claims lodged with the Weathertightness Homes Resolution Service but not yet advised to Franklin District Council and claims expected to be lodged in the future with the Council or the Weathertightness Homes Resolution Service
Council 31 October 2010 30 June 2009 Actual Actual $000 $000 Movements in Provision Opening Balance 10 60 Amounts used (10) (50) Additional (Reduced) amounts provided 893 0 Discounting Charges 0 0 Closing Balance 893 10
Current 893 10 Non Current 0 0 893 10
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 117
Note 11(d) Provision for Employee Entitlements
Council Group 31 October 2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 Annual Leave 863 877 996 Long Service Leave 119 143 143 Retirement Gratuities 275 293 293 Organisation Change Provisions 190 0 0 Total Employee Benefit Liabilities 1,447 1,313 1,432
Current 1,082 922 1,041 Non Current 365 391 391 1,447 1,313 1,432 Note 12 – Borrowings
Council Group 31 October 2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 Opening Borrowings 63,613 52,818 52,863 Loans raised during the year 39,030 17,324 17,324 102,643 70,142 70,187
Less: Loans repaid during the year (7,143) (6,529) (6,574) 95,500 63,613 63,613
Less: Current Portion of Borrowings (15,000) (7,028) (7,028) Closing Term Liabilities 80,500 56,585 56,585
(a) Repayment Terms Principal 31 October 2010 30 June 2009 $000 $000 Two Years 12,000 15,000 Three Years 22,000 12,037 Four Years 21,000 7,000 Five Years 24,000 21,000 Over Five Years 1,500 1,548 80,500 56,585 (b) Interest Rates Interest Rates payable range from 4.07% to 9.00%. (2009 4.81% to 9.00%) The weighted average interest rate over all term liabilities is 6.64%. (2009 7.39%). (c) Security Borrowings are secured by way of either targeted or general rates of the district. (d) Variation to Borrowing Management Policy The spread mix of fixed rate borrowings meets the range prescribed in the Liability Management Policy.
Franklin District Council’s secured debt of $95,500,000 (2009 $63,613,000) is a mixture of fixed and floating interest rates. $27,000,000 of the debt is at floating rates of interest. For the floating rate debt the interest rate is reset quarterly based on the 90 day BKBM plus 200bps.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 118
$67,000,000 (2009 $51,613,000) of the secured debt is at fixed interest rates. The debt is fully repaid on maturity, with the longest debt repaid by 2015. When loans meet their maturity dates they will be renegotiated with terms and conditions similar to the current arrangements.
The fair value of the total debt, discounted at 7.25% and an inflation factor of 2.5% is $81,338,000 (2009 - the fair value of the debt, discounted at 7.25% and an inflation factor of 2.5% is $53,743,000). Security The maximum that can be drawn down against the short term loan facilities is $14 million. There are no restrictions on the use of this facility.
The Council’s Loans are secured over either separate or general rates. The Council manages its borrowings in accordance with its funding and financial policies, which includes a Liability Management policy as adopted in the Council’s Long Term Council Community Plan 2009-2019.
Note 13 – Financial Instruments Financial Instrument Risks The Council has a series of policies to manage the risks associated with financial instruments. FDC is risk adverse and seeks to minimise exposure to treasury activities. Council has approved Liability Management and Investment policies. These policies do not allow any transactions of a speculative nature to be entered into.
Market Risk a) Fair Value Interest Rate Risk Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Borrowings and investments issued at fixed rates expose the Council to fair value interest rate risk. Council seeks to avoid the uncertainty of floating interest rates by maintaining a high portion of its borrowings at fixed rates. b) Cash flow Interest Rate Risk Cash flow interest risk is the risk that cash flows from a financial instrument will fluctuate because of changes in market interest rates. Borrowings and investments issued at variable interest rates expose the Council to cash flow interest rate risk.
In addition to borrowing at fixed rates the Council raises long-term borrowings at floating rates and swaps them into fixed term rates using interest rate swaps in order to manage cash flow interest rate risk. Such interest rate swaps have the economic effect of converting borrowings at floating rates that are generally lower than those available if the Council borrowed at fixed rates directly. Under interest rate swaps the Council agrees with other parties to exchange, at specified intervals, the difference between the fixed contract rates and floating rate interest amounts calculated by reference to agreed notional amounts. There have been no changes to market risk from the prior year.
Credit Risk Credit risk is the risk that a third party will default on its obligation to the Council, causing the Council to incur a loss. Financial instruments which potentially subject Council to credit risk consist of bank balances, accounts receivable and community loans. The Council monitors the credit quality of the financial institutions it invests with and is of the view there is no significant concentration of credit risk. There have been no changes to credit risk from the prior year.
Fair Values The fair values of financial assets and financial liabilities are determined as follows: • the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets is determined with reference to quoted market prices; • the fair value of other financial assets and financial liabilities (excluding derivative instruments) is determined in accordance with generally accepted pricing models based on discounted cash flow
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 119
analysis using prices from observable current market transactions and dealer quotes for similar instruments; • the fair value of derivative instruments is calculated using quoted prices. Where such prices are not available, use is made of discounted cash flow analysis using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives.
The carrying amounts of financial assets and financial liabilities approximate their fair values except for when fair values are disclosed in the relevant notes.
Currency Risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Council has no exposure to currency risk and there have been no changes to currency risk from the prior year.
Liquidity Risk Management of Liquidity Risk Liquidity risk is the risk that the Council will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. In meeting its liquidity requirements, the Council maintains a target level of investments that must mature within the next twelve months. The Council manages its borrowings in accordance with its funding and financial policies, which includes a Liability Management Policy. These policies have been adopted as part of Franklin District Council’s Long Term Council Community Plan. The Council has a maximum amount that can be drawn down against its committed cash advance facility overdraft facility of $4,000,000 (2009 $14,000,000). There have been no changes to the liquidity risk policy from the prior year.
Council Group 31 October2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 FINANCIAL ASSETS Loans and Receivables Cash and cash equivalents 298 3,809 3,893 Trade and other receivables 7,360 7,706 7,715 Other financial assets -recreation and community loans 1,082 1,151 1,147 Total loans & receivables 8,740 12,666 12,755 Shares at Cost -shares 62 62 62 FINANCIAL LIABILITIES Financial liabilities at amortised cost Creditors and other payables 3,898 12,982 13,108 Borrowings: - bank overdraft 4,000 14,000 14,000 -secured loans 95,500 63,613 63,613 Total financial liabilities at amortised cost 103,398 90,595 90,721 Fair value through profit or loss Interest Rate swaps 926 242 242
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 120
Contractual maturity analysis of financial liabilities
The table below analyses the Council’s financial liabilities into relevant maturity groupings based on the remaining period at balance date to the contractual maturity date. The amounts disclosed are undiscounted cash flows.
Carrying Contractual < 1 year 1-3 years 3-4 years >5 years Amount cash flows Council - 2010 $000 $000 $000 $000 $000 $000 Creditors and other payables 3,898 3,898 3,898 0 0 0 Bank Overdraft 4,000 4,000 4,000 0 0 0 Interest Rate Swaps 926 1,347 181 363 363 440 Secured Loans 95,500 113,807 21,067 42,199 49,042 1,500 104,324 123,052 29,146 42,562 49,404 1,940
Council - 2009 Creditors and other payables 12,982 12,982 12,982 0 0 0 Bank Overdraft 14,000 14,000 14,000 0 0 0 Interest Rate Swaps 242 367 46 92 92 137 Secured Loans 63,613 77,065 11,540 33,461 30,274 1,790 90,837 104,414 38,568 33,553 30,366 1,927
Group - 2009 Creditors and other payables 13,108 13,108 13,108 0 0 0 Bank Overdraft 14,000 14,000 14,000 0 0 0 Interest Rate Swaps 242 367 46 92 92 137 Secured Loans 63,613 77,069 11,544 33,461 30,274 1,790 90,963 104,544 38,698 33,553 30,366 1,927
Fair Value Hierarchy Disclosures For those instruments recognised at fair value in the statement of financial position, fair values are determined according to the following hierarchy: • Quoted market price (level 1) – Financial instruments with quoted prices for identical instruments in active markets. • Valuation technique using observable inputs (level 2) – Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in interactive markets and financial instruments valued added using models where all significant inputs are observable. • Valuation techniques with significant non-observable inputs (level 3) – Financial instruments valued using models where one or more significant inputs are not observable. The following table analyses the basis of the valuation of classes of financial instruments measured at fair value in the statement of financial position.
Valuation Technique Significant Non Quoted Market Observable Inputs Total Observable Inputs Price (Level 1) (Level 2) Council - 31 October 2010 (Level 3) Financial Liabilities $000 $000 $000 $000
Interest Rate Swaps 926 0 926 0
926 0 926 0
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 121
SENSITIVITY ANALYSIS
Council
31 October 2010 30 June 2009
$000 $000 -100bps +100bps -100bps +100bps
Profit Other Equity Profit Other Equity Profit Other Equity Profit Other Equity Interest Rate Risk Financial Assets Cash and Cash Equivalents 1 (2) 0 2 0 (38) 0 38 0
Financial Liabilities Borrowings Bank Overdraft 2 40 0 (40) 0 140 0 (140) 0 Term Loans 3 270 0 (270) 0 120 0 (120) 0 Total Sensitivity to Interest Rates 308 0 (308) 0 222 0 (222) 0
1. Cash and Cash Equivalents - Cash and cash equivalents include deposits at call totalling $297,565 (2009 $3,810,000) which are at floating rates. A movement in interest rates of plus or minus 1% has an effect on interest income of $2,975 (2009 $38,100). 2. Bank Overdraft - Bank overdrafts totalling $4,000,000 (2009 $14,000,000) are at floating interest rates. A movement in interest rate of plus or minus 1% has an effect on interest income of $40,000 (2009 $140,000). • $4,000,000 facility is based on the OCR plus 17bps 3. Secured Loans - Council has floating rate debt with a principle amount totalling $27,000,000 (2009 $12,000,000). A movement in interest rate plus or minus 1% has the effect on interest expense of $270,000 (2009 $120,000). A movement in market interest rates on a fixed debt does not have any impact because secured loans are accounted for at an amortised using the effective interest method.
DERIVATIVE FINANCIAL INSTRUMENTS
Council Group 31 October2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 Interest Rate Swaps - fair value 926 242 242 926 242 242
The notional principal amounts of the outstanding interest rate swap contract for the Council were $5,000,000, $5,000,000 and $5,000,000 (2009 $5,000,000). At 31 October 2010, the fixed interest rates of cash flow interest rate swap were 6.45%, 5.85% and 5.19% (2009 6.45%).
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 122
Note 14 – Remunerations of Chief Executive Officer
The Chief Executive Officer of the Franklin District Council received a salary of $352,725 (2009 $211,899) in terms of her contract for the 16 months to 31 October 2010, the Chief Executive also received the following additional benefits: 16 months to 12 months to 31 October 2010 30 June 2009 $000 $000 - Vehicle Use (Market Value incl FBT) $12,540 $14,011 - Non-taxable Phone Allowance $0 $0 - Kiwi Saver Employer Contributions $8,291 $2,643
For the 16 months ended 31 October, the total annual cost, including fringe benefit tax of $4,729 (2009 $5,427), ex gratia payment of $20,000 and severance of $177,068 to the Franklin District Council of the remuneration package received by the Chief Executive is calculated at $570,639 (2009 $228,552).
Note 15 – Remuneration of Elected Members
31/10/2010 30/06/2009
Council Total Total Mayor M Ball 120,576 87,173 B Crompton 43,213 30,986 J Hayman 46,899 33,552 S Jackson 50,394 34,064 MA Kay 72,082 50,039 D Lynch 56,145 41,108 JM Morris, JP 24,943 31,990 D Morrison 53,323 39,616 LM Petersen 47,250 32,594 M Ranchod 66,104 44,394 J Rennie 51,416 35,852 D Robertson 43,460 31,407 P Sands 53,680 35,402 729,485 528,177 Waiuku / Awhitu Community Board WJ Deed 21,709 16,644 J Naysmith 10,019 7,626 B Russell 10,610 8,415 J Wyatt 11,563 8,259 53,901 40,944 Onewhero / Tuakau Community Board A Anderson 10,515 8,112 A Clarke 20,961 15,752 B Fyfe 03,778 S Henderson 10,926 1,176 B Watson 10,008 7,506 52,410 36,324
Total 835,796 605,445
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 123
Note 16 – Cost of Redundancy
In accordance with Schedule 10, section 19 of the Local Government Act 2002 the Council is required to disclose the number of employees who received severance payments during the year and the amount of each payment made as defined by the legislation. For the 16 months ended 31 October 2010 the Council made payment to 18 employees totalling $768,019 (2009 $95,200), all arising from the Tamaki Makaurau Reorganisation. The value of each severance payment was $9,384, $6,645, $14,111, $177,068, $55,565, $38,148, $27,536, $30,100, $122,279, $3,084, $5,444, $8,856, $30,495, $21,839, $43,456, $23,829, $85,189 and $64,611.
Note 17 – Related Party Disclosures
31 October 2010 30 June 2009
$000 $000 (a) The Council's transactions with Franklin Art Culture & Library Trust to 30 June 2010 were as follows: Services 106 11 Council Grants 1,960 866 Accounts Receivable as at 31 October 0 4
(b) The Council's transactions with Councillors' and Community Board members for the 16 months to 31 October 2010 were as follows: M Kay (Councillor) 2 0 WJ Deed (Waiuku Awhitu Community Board) 5 2
Note 18 – Capital Commitments
31 October 2010 30 June 2010
Council had the following capital commitments, exclusive of 2010 2009 GST. $000 $000
Capital Commitments approved and Contracted out 6,439 10,506
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 124
Note 19 – Non Cancellable Contracts The Council has operating leases for photocopiers, some computers and the library phone system. The operating leases have varying non cancellable terms. The future aggregate minimum lease payments payable under non-cancellable operating leases are as follows.
Council Group
31 October 2010 30 June 2009 30 June 2009
Actual Actual Actual $000 $000 $000 Non-cancellable operating leases 2,267 416 1,716 2,267 416 1,716
1 Year 448 127 411 2-5 Years 1,184 289 555 5+ Years 635 0 750 2,267 416 1,716
Note 20 – Guarantees
31 Octo ber 2010 30 Ju ne 2009 Actual Actual $000 $000 Waiau Pa District Fire Service 0 5 Waiuku Golf and Squash Club 133 133
133 138 Financial Guarantees Franklin District Council is listed as a guarantor to a number of community organisation bank loans. Franklin District Council is obligated to make loan payments in the event the organisation defaults on a loan arrangement. The exercising of guarantees will be dependent on the financial stability of the community organisations which will vary over time. Note 21 – Rating Rates Remissions
16 Months to 12 Months to 31 October 2010 30 June 2010 $000 $000 Sporting, Recreation and Other Community Organisations 156,894 81,440 New Subdivision Policy 0 93,389 Natural Areas Policy 10,051 4,844 166,945 179,673
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 125
Note 22 – Reconciliation of Net Cash from Operating Activities to Operating Surplus
Council Group 31 October2010 30 June 2009 30 June 2009 Actual Actual Actual $000 $000 $000 Net Cash inflow/(outflow) from Operating Activities 31,779 30,196 30,516
Add(Less): Non Cash Items Depreciation & Amortisation (21,613) (14,575) (14,858) Vested Assets 15,651 8,810 8,838 Acquisition of Library Assets 1,369 0 0 Add(Less): Movements in Working Capital Accounts Receivable (322) (897) (915) Other Current Financial Assets (754) (313) (313) Inventory 0 (11) (10) Accounts Payable 7,323 (722) (691) Provisions (685) 34 34 Employee Benefits (256) 68 44 Add(Less): Items Classified as Investing Activities Gain/(Loss) on Disposal of Property Plant & Equipment (20,406) (10) (110) Movement in Community Loans (31) 12 12 Property Plant & Equipment related Accounts Payable (10,686) (3,966) (4,038)
Operating Surplus 1,369 18,626 18,509
Note 23 – Contingent Liabilities Community Leisure Management During 2009-10 Community Leisure Management Limited (CLM) built a teaching pool at the Recreation and Aquatic Centre at Pukekohe. Provision has been made in the management contract with respect to the building of the pool and CLM’s contribution and future. The contribution was to be capped at $250,000 unless agreed in writing by the Council. The full cost agreed by Council was $297,000. The extension to the management contract states:
“If the contract has been extended to 30 June 2015 in accordance with clause 1.4 of this deed and if the contractor was not successful in winning the tender in July 2015, Council agrees to pay the Contractor the value of the Contractor’s actual capital financial contribution to the Pool capped at $250,000 (excluding GST), less 1/144 per month for each month that has elapsed since the Pool was completed and became operational.” It is estimated that the Council’s liability in this matter is $254,000 at 31 October 2010.
Contaminated Land Franklin District Council may have potential liability to remediate council land it owns. This potential liability is dependant upon the degree of contamination from previous use of the land and its future use by Council.
Land contamination is currently recorded on the Council’s hazards register which includes closed landfills for which provision has been made for ongoing maintenance under the conditions of their resource consent as per Note 11(b). All other sites either have existing infrastructure upon them, or have works planned at which time results of contamination tests will enable an estimated cost to be determined.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 126
Note 24 – Capital Management The Council’s capital is its equity (or ratepayers’ funds), which comprise retained earnings and reserves. Equity is represented by net assets.
The Local Government Act 2002 (the Act) requires the Council to manage its revenues, expenses, assets, liabilities, investments and general financial dealings prudently and in a manner that promotes the current and future interests of the community. Ratepayer’s funds are largely managed as a by product of managing revenues, expenses, assets, liabilities, investments and general financial dealings.
The objective of managing these items is to achieve intergenerational equity, which is a principle promoted in the Act and applied by Council. Intergenerational equity requires today’s ratepayers to meet the costs of utilising the Council’s assets and not expecting them to meet the full cost of long term assets that will benefit ratepayers in future generations. Additionally the Council has in place asset management plans for the major classes of assets detailing renewal and maintenance programmes, to ensure ratepayers in the future generations are not required to meet costs of deferred renewals and maintenance.
The Act requires the Council to make adequate and effective provision in its Long Term Council Community Plan (LTCCP) and in its annual plan to meet the expenditure needs identified in those plans. The Act sets out the factors that the Council is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding are set out in the funding and financial policies in the LTCCP.
Reserves for different areas of benefit are used where there is a discrete set of rate/levy payers as distinct from general rates. Any surplus or deficit relating to these separate areas of benefit is applied to the specific reserves.
There have been no changes in the Capital Management policies from the prior period.
Note 25 – Events after Balance Date
The Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Franklin District Council on 31 October 2010. The Reorganisation Act provides that: • The functions, duties, and powers of Franklin District Council became the functions, duties and powers of the Auckland Council, Waikato District Council or Hauraki District Council, which are responsible for governing the former Franklin District area from 1 November 2010. • Property belonging to Franklin District Council is vested in the Auckland Council and group, Waikato District Council or Hauraki District Council. • All money payable to or by Franklin District Council became payable to or by the Auckland Council and group, Waikato District Council or Hauraki District Council. All rights, liabilities, contracts, entitlements, and engagements of Franklin District Council became the rights, liabilities, contracts, entitlements, and engagements of the Auckland Council and group, Waikato District Council or Hauraki District Council.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 127
Note 26 - Transfer of Key Council Fixed Assets
The assets and liabilities of Franklin District Council (FDC) transferring on the 1 November 2010 are to be apportioned in accordance with the process contained in clause 69 of Schedule 3 of the Local Government Act 2002 as required by the final determination of the new Auckland Council boundaries by the Local Government Commission released 11 March 2010. The apportionment also includes any Auckland related vesting orders adopted by the Governor General prior to 1 November 2010 with particular reference to the Local Government (Tamaki Makaurau Reorganisation) Watercare Services Limited Vesting Order 2010
The following table represents the significant split of the key Council fixed assets which is still yet to be affirmed by the all receiving entities:
TRANSFER OF KEY COUNCIL ASSETS
MAJOR FDC ASSETS TRANSFERRED ESTIMATED RECEIVING ENTITIES FOR ASSETS VALUE $ millions Roading Infrastructure 524 Auckland Council (Auckland Transport) 301 Waikato District Council 26 Hauraki District Council Water & Wastewater Infrastructure 153 Watercare Services Ltd (incl. Tuakau Treatment Plant) 18 Waikato District Council Land & Buildings - Strategic & Restricted 141 Auckland Council 18 Waikato District Council 2 Hauraki District Council Stormwater Infrastructure 104 Auckland Council 12 Waikato District Council 1 Hauraki District Council
Other asset and liabilities will be allocated to the receiving entities in accordance with the agreed apportionment process with the Auckland share being allocated to Auckland Council and Council Controlled Organisation’s based on their specific activities.
At 1 November 2010 all of FDC’s external debt will be transferred to Auckland Council. A portion of the Auckland Council’s consolidated debt will be allocated to Watercare Services Limited, Auckland Council Investments Ltd, Regional Facilities Auckland, Auckland Water Development Agency Ltd, with Waikato and Hauraki District Council’s share of FDC’s liability being recovered by way of a separate settlement agreement.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 128
APPENDIX 1
COMMUNITY OUTCOMES
How do the Council’s activities relate to Community Outcomes? The linkage between Council activities and Community Outcomes is expressed under each activity heading.
Outcome 1: An Economically Strong Community
Indicator Result Total Number of Businesses in Franklin The number of businesses in the Franklin District has and Average Size decreased from 8,979 in 2008 to 8,901 in 2009, a decrease of 78, whilst the number of employees has decreased by 650 in Note - Average size is calculated using average the same period (from 19,210 to 18,560). The average size of number of employees each business has remained at approximately two employees
Source: Statistics New Zealand. Key Industry Sector Trends Employee numbers in the traditionally strong agriculture, forestry and fishing sectors have declined by 3.9% from 2005- 2009. For the same period, employee numbers in arts and recreation services, and public administration and safety, have shown an increase of 12.8% and 11% respectively. Manufacturing employees have declined by 1% for the period.
Source: Enterprise Franklin Development Trust (EFDT) Occupancy Rates/Guest Arrivals/Guest Guest nights in the District are showing a 20.6% decrease for Nights the year ending July 2010. The number of guest nights during 2010 are well below 2007/8 and 2008/9 levels. Guest arrivals are 20.5% down for the year ending July 2010, and occupancy rates are 6.2% down for the same period.
Source: Statistics New Zealand Accommodation Survey and Ministry of Tourism. Total new Construction – The number of new residential building consents was 255 in the Residential/Non-residential year ending March 2010, a 17% decrease from the previous year. There was a corresponding 22% decrease in floor area for residential consents (down 14,261m from March 2009). The value of non-residential building consents was $44m in March 2010, a 10% annual increase.
Source: EFDT. Proximity to Where you Work Satisfaction with proximity to where you work is one of the factors used in the determination of overall quality of life. When Note – only residents living in that area of surveyed, 59% of Franklin respondents were satisfied by how Franklin which will become part of Waikato DC close they live to their workplace. were surveyed Source: Waikato Regional Perception Study 2010 GDP (estimated) GDP in the Franklin District continues to grow, up from $1,671m in 2007 to $1,704m in 2008, representing a 1.93% increase. During the same period, GDP for both the Auckland Region and the whole of New Zealand increased by 3.2%.
Source: Berl Economics Ltd.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 129
Employed In March 2006, there were 44,500 employed people in the Franklin District. Since that time, the number employed has Note:- employed people are defined as shown an annual decline, decreasing to 32,800 employees in employees who have worked for one hour or March 2009. In March 2010, the figure increased to 34,500. more for pay or profit, in the context of an employee/employer relationship or self employment, worked without pay for one hour or more in work which contributed directly to the Source: Statistics New Zealand. operation of a farm, business or professional practice owned or operated by a relative, or had a job but were not at work due to:
• own illness or injury • personal or family responsibilities • bad weather or mechanical breakdown • direct involvement in an industrial dispute • leave or holiday. Jobless Rate In March 2006, there were 6% of jobless people in Franklin. This figure rose to 9% in March 2009, and has decreased to Note: joblessness is an alternative measure of 7.6% in March 2010. unemployment to the official unemployed. The Source: Statistics New Zealand. jobless are defined as the official unemployed plus those persons who were without employment: and were either available for work but not actively seeking work, 'discouraged' or ill when interviewed or were actively seeking work but not available for work.
Population with Low Income In 1986, 15.9% of European, and 26.4% of Maori residents of Franklin lived in households which earned less than 60% of the Note - This is the proportion of people living in national median. By 2006, these percentages were 12.1% and households with real gross income less than 20.7% respectively. 60% of the median household equivalised Also, in 1986, 37.1% of Franklin residents aged 65 and over national income benchmarked at 2001) lived in low income households. This improved to 33.9% in 2006.
Source: Statistics New Zealand Number of Migrants and their Skill Not measured. Levels Residents’ Satisfaction with Range of Not measured. Sporting, Cultural and Community Events in the District
Outcome 2 A District that is Easy to get Around
Indicators and Results – October 2010
Indicator Result Percentage of Residents Satisfied with In 2008, 65% of Franklin residents were very or fairly satisfied with Roads in the District roads in the district. This rose to 75% satisfaction in 2010.
This applies to local roads only – not state highways Source: Franklin District Council Communitrak Survey 2010 Percentage of Residents Satisfied with 78% of residents were very or fairly satisfied with councils provision Council’s Provision of Footpaths of footpaths in 2008. In 2010 this rose to 82%. Source: Franklin District Council Communitrak Survey 2010 Percentage of Franklin Residents In 2006, 3.6% of Franklin residents either walked or cycled to work. Walking or Cycling to Work Source: Statistics New Zealand. Levels of Service for Bus and Rail From Monday to Friday, there are 20 trains daily from Pukekohe to Services in the District Britomart stations and back. There are no trains on the weekend.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 130
This level of service has been available from June 2009. The level of service for buses in Franklin is shown in the table below. Source: maxx.co.nz Percentage of Franklin Residents using In 2006, 0.96% of Franklin residents used passenger transport to Passenger Transport to Travel to Work travel to work.
Source: Statistics New Zealand Number of Reported Injury Crashes In 2009 there were 170 injury crashes on Franklin roads, with 6 of Occurring on the Network. theses being fatal crashes. In contrast there were 176 injury crashes and 10 fatal crashes on Franklin roads in 2006. This data applies only to local roads – not state highways Note – these figures do not take into account the increase in road usage between 2006 and 2009. The indicator below does do this.
Source: New Zealand Transport Agency The Number of Fatal/Serious crashes In 2008 there were 8 fatal or serious crashes occurring on the road occurring on the Network per 100 network in Franklin District per 100million vehicle km travelled, million vehicle km Travelled compared to 8.9 in 2006
Note – Measuring crash data per X vehicle km travelled allows direct comparison with other years and also with other districts. Source: New Zealand Transport Agency Usage of Pukekohe Park n Ride Facility The graph below shows the number of cars parked outside over time. (ie usage of Pukekohe rail Pukekohe railway station over time. This has been used to service) demonstrate the increasing usage of the Pukekohe rail service.
Source: Franklin District Council Asset Support Officer Roading Residents agree it is Safe to Walk and In 2010, 91% of residents agreed it was safe to walk alone in the Cycle in the District district during the daytime, and 58% agreed it was safe to walk alone at night. Again in 2010, 74% of residents felt it was safe to cycle in the district during the day, and 20% thought it was safe to cycle in the district at night. Source: Franklin District Council Communitrak Survey 2010 Ease of Access to a Public Transport Not measured Facility Residents agreement that Public Not measured transport is Safe, Convenient and Affordable
No. of cars parked around Pukekohe railway station
180 160 140 120 100 no of cars parked around 80 Pukekohe railway station 60
No. of Cars of No. 40 20 0 26/02/2008 26/05/2008 26/08/2008 26/11/2008 26/02/2009 26/05/2009 26/08/2009 26/11/2009 26/02/2010 Date
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 131
Level of Bus Service to Franklin
Route Description Route No. No of Buses per day Days Running Port Waikato (& Tuakau) to 50 2 Thursday only Pukekohe, and back Pukekohe Loop 465 13 Mon to Fri Waiuku to Papakura 479 1 Mon to Fri Interchange, and back 2 Mon to Fri Tuakau to Pukekohe 476 2 extra Wed only Pukekohe to Papakura 475 and 476 19 Mon to Fri Interchange Pukekohe to Papakura 10 Sat 475 Interchange 5 Sun Papakura Interchange to 471, 472, 475, 19 Mon to Fri Pukekohe 477 Papakura Interchange to 471, 472, 475 10 Sat Pukekohe (471 & 472 only) 5 Sun
Outcome 3: A Safe Healthy Active Community
Indicators and Results - October 2010
Indicator Result Number of police per Capita over Time In 2006 there was one police officer per 914 Franklin residents, compared to 2008, where there was one police officer per 841 *The actual numbers of police on the ground in Franklin residents. Franklin do not represent the full policing services delivered into the area. In addition to the police on the ground, there are a number of District and Regional resources which deliver services into the area, including Highway Patrol (Pokeno), SCU (Scene of Crime Unit), Team Policing, Mobile Police Station, AMCOS (Drug, Organised Crime and other specialised criminal investigation squads). Source: New Zealand Police Reported Crime per Capita In 2006, 1 crime was reported per 12 Franklin residents. In 2008, there was 1 crime reported per 14 Franklin residents. Source: New Zealand Police Safety in your Community During the For Franklin District overall, 88% in 2009, and 91% in 2010 of Daytime residents felt it was safe to walk alone in the district during the daytime. Source: Franklin District Council Communitrak Survey 2010 Safety in your Community after Dark For Franklin District overall, only 24% in 2009, and 35% in 2010 of residents felt it was safe to walk alone in the district at night.
Source: Franklin District Council Communitrak Survey 2010 Public Satisfaction with Control of Dogs 75% of Franklin residents were very or fairly satisfied with control of dogs in 2009. This rose to 85% in 2010.
Source: Franklin District Council Communitrak Survey 2010 Number of Medical Practitioners per In 2008 there was one doctor per 1664 Franklin residents. In Capita 2009 there was one doctor per 1605 Franklin residents (ie MD’s) Source: Franklin District Council Agreement that Franklin Residents have Not measured Adequate and Accessible Health Services. Life Expectancy From data from 2002-2003, Franklin males will on average live
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 132
to age 77, and Franklin females to age 80.7 years.
Source: Ministry of Social Development Health status of population (eg. Incidence There are two graphs on the following page. One shows rates of of particular diseases) various cancers Franklin from 2000 to 2004. The other shows rate of campylobacteriosis in Franklin over the last year. Campylobacteriosis is one of the most prevalent food borne illnesses occurring in Franklin District Source: Counties Manukau District Health Board Availability of Recreational Availability of recreational facilities/opportunities is one of the Facilities/Opportunities in the District factors used in the determination of overall quality of life. When surveyed, 53% of Franklin respondents were satisfied with the (Note – only residents living in that area of availability of recreational facilities/opportunities in Franklin Franklin which will become part of Waikato DC District. were surveyed) Source: Waikato Regional Perception Study 2010 % Residents Agree that there are Not measured Adequate Activities for Youth in Local Areas % Residents Undertake Physical Activity Not measured Five or more Days a Week
Outcome 4: A Culturally and Socially Vibrant and Inclusive Community
Indicators and Results - October 2010
Indicator Result Percentage of Franklin Households with Telephone access has stayed fairly constant, with 91% of Telephone and Internet Access in the Franklin households having a telephone in the home in 1996, Home and 93% having a telephone in the home in 2006. Not surprisingly, perhaps, internet access has risen from 39% in 2001 to 64% in 2006.
Source: Statistics New Zealand Proportion of Maori Language Speakers in 26% of Maori residents in Franklin in 1996 were Maori language Franklin speakers, compared to 21% in 2006. In terms of the total Franklin population, 5% of Franklin’s population were Maori speakers in 1996, and 4% in 2006.
Source: Statistics New Zealand Language Retention for Non English as a This is the proportion of people who can speak the “first First Language language” (excluding English) of their ethnic group for ethnic groups (other than Maori) with an established resident population in New Zealand. For New Zealand born Franklin residents, the percentage who retained the first language (other than English) of their ethnic group was 30% in 2001 and 27% in 2006. For overseas born Franklin residents, these percentages were higher for obvious reasons – 78% retained their (non English) first language in both 2001 and 2006.
Source: Statistics New Zealand Number Attending Franklin’s Positive In 2006, 1000 people attended Franklin’s Positive Aging Expo. Aging Expo This had risen to 2000 people by 2009.
Source: Project Co-ordinator, Franklin Integration Project Satisfaction with Councils Public 66% of Franklin residents were very or fairly satisfied with the Consultation Programme Council’s public consultation programme, in 2008. This dropped to 61% very or fairly satisfied in 2010..
Source: Franklin District Council Communitrak Survey 2010 Percentage of Eligible Voters participating In 2007 35% of voters participated in the Franklin Local Body in Local Body Elections elections.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 133
Source: Franklin District Council Electoral Officer Degree of Household Crowding in Franklin The Canadian Crowding Index uses the following guidelines to District, by age group classify crowded housing:
This data shows the proportion of the population • There should be no more than two people per bedroom. living in crowded housing (ie requiring one or more • Parents or couples share a bedroom. additional bedrooms, as defined by the Canadian • Children under five years, either of same or opposite sex, Crowding Index) over time. may reasonably share a bedroom. • Children under 18 years of the same sex may reasonably share a bedroom. • A child aged five to 17 years should not share a bedroom with one under five of the opposite sex. • Single adults 18 years and over and any unpaired children require a separate bedroom.
In 1986, 2.8% of Franklin residents were living in crowded housing. This reduced to 2.3% in 2006. This reduction was most notable in the 15-24 age group. In 1986, 22.4% of residents in this age group were living in crowded housing, while in 2006 this percentage was 13.
Source: Source: Statistics New Zealand
Demographic profile of Resident Population Total Population Age Groupings In 2006, the median age of people in Franklin District was 36.4, compared to New Zealand as a whole which had a median age of 35.9. 10.5% of people were aged 65 years and over (compared with 12.3% in New Zealand overall), and 24.6% of people were aged under 15 years (compared with 21.5% for New Zealand overall) Maori Age Groupings The median age of Maori in 2006 in Franklin District was 21.4, compared with a median of 22.7 years for all Maori in New Zealand. 3.2% of Maori were aged 65 years and over in 2006 in Franklin and 38.9% were aged less than 15 years. In New Zealand as a whole in 2006, 4.1% of Maori were aged 65 and over and 35.4% were under 15 years. Ethnicity In the 2006 census the main ethnic groups in Franklin District (in descending order) were European, Maori, Asian and Pacific peoples. A further group of people identified themselves as “New Zealanders” only (ie 11.4% of the total respondents), so these people did not contribute to the order of the other ethnicities mentioned. Approximately 77% of Franklin residents stated they were born in New Zealand, with 7% being born in the United Kingdom and Ireland, 3% in Asia and 1.5% in Australia and the Pacific Islands respectively. Family Type Couples with children made up approximately 46% of all families in Franklin District in 2006, while couples with no children made up approximately 38% of all families. In New Zealand overall in 2006 couples with children made up 42% of all families, while couples without children made up approximately 40% of all families. 15% of families in Franklin District were one parent families in 2006, compared with approximately 18% for New Zealand overall.
Source: Statistics New Zealand Deprivation Index for the District Deprivation Index 2006 (NZDep2006) is an index of socioeconomic deprivation. NZDep2006 provides a deprivation
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 134
score for each mesh block in New Zealand. Mesh blocks are geographical units defined by Statistics New Zealand, containing a median of approximately 87 people in 2006. The NZDep2006 index of deprivation scale ranges from 1 to 10, where 1 represents the areas with the least deprived scores and 10 the areas with the most deprived scores. Attached is a map published by the Ministry of Health showing the Deprivation Index for the Counties Manukau area. The standard 1-10 scale, is condensed to 1-5 for ease of colour coding. As shown on the map, the areas of highest socioeconomic deprivation in Franklin are around Port Waikato, and parts of Te Kohanga, Tuakau and Pukekohe respectively.
Source: Counties Manukau District Health Board Residents Agreement that Disabled In 2009, 60% of Franklin residents agreed that disabled people People in Franklin are Valued and Catered in Franklin are valued and catered for. This improved to 66% in for 2010.
Source: Franklin District Council Communitrak Survey 2010 How Happy are you with your Quality of Overall quality of life was estimated by asking a series of survey Life questions on relevant topics such as availability and proximity to educational institutions, perceived degree of safety in the (Note – only residents living in that area of Franklin community, confidence in the, local council, pride in our district which will become Waikato DC were surveyed) and respect for Franklin’s different cultures. 87% of Franklin respondents reported that they were happy with their quality of life. Analysis of respondents’ comments shows those from the country are happier than those who live in town. Also, generally speaking, the older the respondent higher the level of satisfaction. Those who described their ethnicity as New Zealanders of Maori descent were more happy with their quality of life than any other ethnic group were.
Source: Waikato Regional Perception Study 2010. Satisfaction with Cultural Satisfaction with cultural facilities/opportunities is one of the Facilities/Opportunities factors which is used to rate the overall satisfaction with quality of life question. 42.6% of respondents said they were satisfied (Note – only residents living in that area of Franklin with cultural facilities/opportunities available in Franklin. which will become Waikato DC were surveyed)
Source: Waikato Regional Perception Study 2010. Residents Agreement that Youth in Not measured Franklin are Valued and Catered for Residents Agreement that Elderly Citizens Not measured in Franklin are Valued and Cared for % Residents who Agree they had Positive Not measured Contact with People in their Neighbourhood % of Residents who feel Positively Not measured Towards Increased Cultural Diversity.
FRANKLIN DISTRICT COUNCIL ANNUAL REPORT PAGE 135