Matters Relating to the Electronic Presentation of the Audited Financial Statements, Performance Information and the Other Requirements
This audit report relates to the financial statements, performance information and the other requirements of Taupo District Council and group for the year ended 30 June 2010 included on Taupo District Council and group’s website. The Taupo District Council and group’s Council is responsible for the maintenance and integrity of Taupo District Council and group’s website. We have not been engaged to report on the integrity of Taupo District Council and group’s website. We accept no responsibility for any changes that may have occurred to the financial statements, performance information and the other requirements since they were initially presented on the website.
The audit report refers only to the financial statements, performance information and the other requirements named above. It does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements, performance information and the other requirements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements, performance information and the other requirements as well as the related audit report dated 28 September 2010 to confirm the information included in the audited summary annual presented on this website.
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Taupo District Council Annual Report 2009/10 Directory
HEAD OFFICE BANKER AND FUNDING 72 Lake Terrace Bank of New Zealand – Taupo Private Bag 2005 (transactional/funding) TAUPO 3352 ANZ Bank – Hamilton (funding) NEW ZEALAND
Telephone: [07] 376 0899 Freephone: 0800 ASK TDC 0800 275 832 Fax: [07] 378 0118 AUDITOR Audit New Zealand on behalf of The Auditor General
SERVICE DELIVERY CENTRES Turangi Town Centre PO Box 34 TURANGI 3353 Telephone: [07] 386 7017 INSURANCE BROKER Fax: [07] 386 8449 Aon New Zealand Limited
Mangakino Town Centre PO Box 9 MANGAKINO 3445 Telephone: [07] 882 8700 Fax: [07] 882 8330
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 1 Table of Contents
OVERVIEW
Mayor’s Report 6 Chief Executive Officer’s Report 7 How your rates were spent 4 Taupō District 11 Governance Report 13 Community Outcomes – State of the District 15 Strategic Directions 17 Opportunities for Māori Contribution to Decision Making Process 18 Statement of Compliance 20 Report of the Auditor General 21 Purpose of the Annual Report 23
SERVICE PERFORMANCE
WORKING TOGETHER 28
Leadership, Governance and Advocacy 29 Community Engagement 33 Planning For the Future 36
GROWTH AND ECONOMIC DEVELOPMENT 38
Economic Development 39 Liveable Places 42 Taupō District Investments 46 Destination Marketing and Management 50 Events 53
STRONG, SAFE AND HEALTHY COMMUNITIES 56
Community Facilities 57 Venues 61 Heritage, Culture and Public Art 65 Parks and Reserves 69 Emergency Management 73 Regulatory Services 76 Transportation 81 Water Supply 87
2 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 SUSTAINABLE ENVIRONMENT 92
Lakes and Rivers 93 Solid Waste 96 Stormwater 100 Wastewater 103
FINANCIAL PERFORMANCE 109
Finances at a Glance 110 Statement of Comprehensive Income 111 Statement of Changes in Equity for the Year Ended 30 June 2010 112 Statement of Financial Position as at 30 June 2010 113 Statement of Cashflows for the Year Ended 30 June 2010 114 Statement of Accounting Policies 116 Notes to the Financial Statements 126 Council Controlled Organisations 165 The TEL Investment Fund 176
ELECTED MEMBERS AND STAFFING 177
Council members 178 Turangi/Tongariro Community Board Members 179 Council Management 180 Council Staff 181
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 3 Here’s how your rates were spent ON AVERAGE IT COST EACH RATEPAYER $1,938 TO OPERATE THESE SERVICES
TAUPO AIRPORT AUTHORITY PLANNING FOR $6 THE FUTURE $30
REGULATORY PARKS & RESERVES SERVICES $146 LEADERSHIP, $95 GOVERNANCE & ADVOCACY $173
SOLID WASTE $94
COMMUNITY ENGAGEMENT $36
ROADING $243
STORMWATER $59
4 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 DESTINATION MARKETING & MANAGEMENT $73 LAKES & RIVERS $57
WATER SUPPLY COMMUNITY $181 FACILITIES $129
HERITAGE, CULTURE LIVEABLE PLACES & PUBLIC ART $56 $28 EVENTS $12
ECONOMIC DEVELOPMENT $10
EMERGENCY MANAGEMENT $25
WASTE WATER VENUES $311 $174
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 5 Mayor’s Report
Council’s job is to listen to the diverse needs of our community and respond to them with visions, decisions and actions which reflect those requirements. This report is about that process. Whether it is through the installation of CCTV cameras to improve safety in our public areas, or planning for the future needs of water supply throughout the district, our actions should reflect community demand. In May 2010, our district received the prestigious “International Safe Community” accreditation from the World Health Organisation. This award comes as a result of combined effort from Council and many organisations within our community. It recognises our district as a safe place to live, work and play — and acknowledges our community’s ongoing commitment to strengthening this.
We received an enormous amount of feedback and input from the wider community on the Taupō Urban Commercial and Industrial Structure Plan. The purpose of the draft plan was to formulate a way forward in creating a vibrant and appealing heart for Taupō. Principles of the structure plan were developed based on findings from community workshops and were based on refreshing Taupō’s town centre and identity. The Council received approximately 440 submissions, many of which were expanded on during hearings in May. Other projects aimed at keeping Taupō’s CBD alive and buzzing have also proved effective and successful — these include the addition of 110 new in-berm car parking spaces, plus the installation of Metereye — an innovative new electronic monitoring system to ensure free parking can be enjoyed by all.
We were fortunate to be selected as hosts for the South African, Irish and Welsh teams during Rugby World Cup 2011 which will reach a global audience of an estimated four billion people. The Taupō2011 Committee was formed in April — consisting of representatives from Council, the rugby sector and various stakeholder groups — to ensure our region is showcased to the highest possible level during the six-week tournament. The committee is collaborating with a working group of Council officers to make sure our district is ready for this rare and exciting opportunity.
Our population of 32,500 continuously proves they are passionate and diverse — and, perhaps most interestingly — many have come from elsewhere to make our district their home. I believe this conscious decision reflects the quality of life on offer here in our District. Whether people come for our world renowned “outdoor playground” or for the strong community support that may not exist in larger centres, our residents and ratepayers all seem extremely proud and happy of their choice. This report records Council spending and activities to meet the evolving needs of our communities, which reflect our positive and progressive district.
Mayor Rick Cooper Taupō District
6 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Chief Executive Officer’s Report
In the year to June 2010, New Zealand as a whole and Taupō District continued to experience the side-effects of a global economic slowdown that has continued for more than two years now. For many people and the businesses of the district, these have been challenging times.
Council too has had to adapt to the ongoing challenges of lower growth, and our response is reflected in this Annual Report. The annual planning process sets a budget to fund Council’s activities each year, and I am pleased that, despite the difficult environment, we have been able to deliver our promised levels of service within the approved financial budget. Although some revenue streams were not as substantial as forecast (for example, the recession has hit property development and construction especially hard which had a flow-on effect for development contributions), our treasury management largely overcame the downside of lower growth over the past year. We will need to continue to be mindful of our expenditure into the future.
Because the recession has been global, it has also had an impact on our tourism and visitor numbers, both domestically and internationally. As the Ministry of Tourism no longer collects vital information on international spending, we cannot report on which areas have been most affected. We do know, however, that revenue from our i-Sites is down, due to the combined effects of the recession and the increasing use of internet bookings for activities. In order to adapt to changing visitor industry needs, last year we developed a new approach to visitor marketing within the District, proposing that Destination Lake Taupō become a stand-alone business, and we expect to see this bear fruit in the current year. Already the new visitor branding has been launched with great excitement, particularly from our local visitor industry players.
Council activities to encourage economic development within the District have been subject to extensive scrutiny and debate over the past year as the ETA nears completion, and we complete the planning foundations for the next stages of development within our major townships.
The early completion of the ETA has meant we’ve had to borrow some money sooner than we had planned. The upside of early completion is that this summer, for the first time ever, heavy trucks won’t lumber through our beautiful town, and residents and holidaymakers won’t have long queues at Control Gates Bridge. After much dialogue with us, the New Zealand Transport Authority (NZTA) decided to fund construction of a connector road between Crown Road and SH5, which was a particularly important milestone for businesses in the Crown Road area. The ETA, including the rebuild of the roundabouts in order to future proof this road of national significance, has been achieved ahead of schedule and within the original budget.
The Commercial and Industrial Structure Plan, which has generated a lot of debate, has begun to address the post-ETA implications for the Taupō township: what new opportunities for enjoying the town’s amenities does the ETA enable? Aside from the more controversial issue of whether to put a new Council building and community facility on the Tongariro Domain, largely submissions supported the idea of refreshing and revitalising Taupō’s urban, commercial and industrial centres. The plan is not yet finalised, but whatever Council adopts, we can be confident that it will reflect our continued commitment to stronger economic development.
As the events capital of New Zealand, the district continues to attract international events such as Ironman despite competing bids from other, much larger centres. No Council can build an events industry on its own — in our district, it has taken the collective pride, passion and commitment of the whole community.
Last year Council adopted a strategy for managing our venues to further open up the entire District to events. Vibrant and diverse communities of people who love where they live, and who participate in a broad range of events (whether international or local) are attractive to holiday-makers and other visitors. In this way we connect our economic and community development goals, so that the District can thrive and prosper.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 7 Having been awarded host city status for three of the world’s most recognized international teams — South Africa, Ireland, Wales — for Rugby World Cup 2011, we have begun our preparations, and these too will draw on the commitment and passion of many residents and ratepayers.
Council works collaboratively with a wide range of stakeholders, including all the people who participate in Our Neighbourhood events, including CAFE for Youth Health. We also work with three iwi in our district, Ngati Tuwharetoa, Ngati Raukawa and Te Arawa, especially as plans have been developed for the new Waikato River Authority which will act as guardians of the Waikato River.
Given Lake Taupō’s cultural, environmental and geographic importance, we have continued to protect the Lake, especially from nitrogen flows that damage its delicate ecological balance — nobody wants a lake prone to algal blooms in the height of summer. The Lake Taupō Protection Trust, which we co-fund, purchased four farms in Tihoi and is selling them with a restriction on nitrogen flows, which will make them more suitable for forestry than farming. Through the actions of the Trust, farms can now profit from converting to forestry by selling their carbon offsets to businesses such as energy generators.
We have adopted the Lake Taupō Erosion and Flood Strategy with Environment Waikato to monitor and mitigate erosion and flood risks. With lake and river levels affected not only by the weather, but also by hydro-energy demands, we need to ensure we protect the future of the waterways and the land around them where we live, holiday, work and play.
Council ensures that the water it supplies is safe to drink by treating it in accordance with NZ Drinking Water Standards. Council has adopted a water supply strategy that outlines how we will develop, improve and maintain the district’s water supply schemes over the next three decades. In implementing the strategy, we will deliver better quality, safe and affordable drinking and household water that complies with legislation imposing new, stricter, water quality standards without putting an unacceptable burden on ratepayers. We have also developed a water demand management plan, which includes public education. That way, everyone can learn about the financial and environmental consequences water use — as the signs say, there’s no point watering the footpath when you water the garden. We’re also working to reduce losses from the system with an upgraded network reticulation maintenance programme.
The first stage in upgrading the Taupō wastewater treatment plant and the Ashwood septage facility were major works this year. These projects ensure that wastewater is moved efficiently away from homes and commercial and industrial premises and that it is disposed of in environmentally acceptable ways. The plant in Motutahae Street was built in 1972, and struggled to cope with peak summer demand. The Ashwood plant screens waste from domestic septic tanks and restaurant grease traps before it is piped to the Taupō plant, which also means we don’t have to accept waste from septic tanks at the Broadlands Road landfill — which extends its life too.
We wanted to make more progress with managing and minimising solid waste, but this has been held up while the Ministry for the Environment develops national targets and guidelines.
Council has continued to develop the district’s community facilities — libraries, swimming pools, parks, public toilets, and much more. The 2009 Residents Satisfaction Survey showed that the people who use our community facilities have very high levels of satisfaction, and we are working to keep it that way. We have a strong development programme for our parks and reserves, addressing everything from irrigation at Owen Delany Park to the children’s playground equipment we installed at parks in Motuoapa, Pukawa and Omori.
In April we were awarded Safe Communities Accreditation from the World Health Organisation. Road safety is an area we are continuing to address because of the district’s high road crash rate. We hope that the opening of the ETA will reduce accidents, injuries and deaths by separating through traffic from local traffic. Council also uses road engineering and traffic enforcement to improve road safety. Around our schools, we are especially keen to see traffic slowed, so that our children are safe coming and going to school. Our community road safety programme includes education on factors contributing to crashes and injury such as seat belts, speed, alcohol, keeping left and intersections.
8 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 The recent large earthquake and the many aftershocks in Canterbury have highlighted the need for every one of us to consider our emergency preparations. Our warmest thoughts and best wishes go out to everyone in that region who has been affected. It is clear that the resilience of individuals, families and households is partly determined by their emergency preparedness: food, shelter and hygiene are real challenges when the water supply and wastewater systems are broken, and there’s no electricity either. The region’s infrastructure has been massively disrupted, and the cost of fixing it is still unknown. While we can be grateful that it was not our District that suffered, each of us should be mindful of what we can do now, so we can survive a major earth-shaking event in good health and good heart. We also need to be sure that, into the future, the significant demands and set-up costs of the newly-created Auckland supercity and the Canterbury re-build do not overshadow the constant need for central government to pay for its share of the costs that legislative requirements impose on all local authorities.
As part of its long term planning Council has established four strategic directions: growth and economic development, a sustainable environment, strong safe and healthy communities, and a commitment to working together with all our residents, partners and stakeholders. This annual report shows that we are making very good progress towards ensuring that we nurture and sustain our environment, that our communities are stronger and safer, and that we actively seek to collaborate with all the people who have a role to play in developing our district. While the economic downturn has slowed growth, careful management and the impact of spending on major infrastructure (especially the ETA and some of the big energy projects) mean that our District has survived in much better shape than it would have otherwise.
As a large enterprise with around 350 full-time equivalent staff, we must continue to examine the performance and culture of our organisation. “The Way We Work” is a long-term programme began in 2007, that encourages every person, team, and department employed by Council to build a community of trust by being the best we can. We are now seeing tangible results, and we have a number of notable achievements and awards for our work. These range from a national award recognising our collaborative planning practices with the historic (and national first) joint management agreement with Ngati Tuwharetoa, to the inaugural New Zealand Water Safety Awareness Award won by AC Baths’ aquatic programmes team. I would like to express my sincere gratitude to our staff for their part in making the past year a success. You can read more about our achievements on the next page.
Rob Williams Chief Executive, Taupō District Council
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 9 Achievements and Awards for operations, staff and the organisation Customer service and information • Connect rates newsletter, winner ‘Best Council Newsletter’, Local Government Communication Forum. • Taupō District Council website www.Taupō.govt.nz (Adopt-a-Dog campaign), winner ‘Best New Feature’, ALGIM Web Awards. • More than two-thirds of Taupō district residents and ratepayers say they receive good value from Council, National Research Bureau three-yearly survey.
Stakeholder relations • Joint Management Agreement with Ngati Tuwharetoa, Nancy Northcroft Supreme Planning Award, New Zealand Planning Institute. • Joint Management Agreement with Ngati Tuwharetoa, winner Crown/Maori Partnerships, Institute of Public Administration New Zealand. • Community engagement (LTCCP consultation), third place Grass Roots Engagement, NZ Local Government Communication Forum.
Strong, safe and healthy communities • AC Baths, Qualmark Enviro-bronze award, Qualmark New Zealand Ltd. • AC Baths, ‘Best Supporting Organisation’ regional and national winner, The OSCAR Foundation. • AC Baths, ‘Youth Award’ regional winner Catherine Hayter, The OSCAR Foundation. • AC Baths Aquatic Programmes Team, New Zealand Water Safety Awareness award, NZ Water Safety. • Swim for Life, winner ‘What does Taupō need?’ grant, Contact Energy. • Great Lake Centre, four-star rating in the venue category, Qualmark. • Taupō Superloo, one of only four public toilets in New Zealand to receive a five-star rating — and also celebrates its four millionth visitor, NZ Herald National Competition.
Staff • Records Management, Trish Hall awarded ‘Records Manager of the Year’, ALGIM. • Records Management, Keith Stuart awarded ‘Archivist of the Year’, ALGIM. • Manager of Event Marketing Warwick Hall, invited to serve on the Global Roundtable Council, International Festival and Events Association. • Great Lake Centre Manager Jo Lynskey, winner of The Edge Scholarship, Event Venues Association.
10 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Taupo District
The current Taupo District Council area was established on 1 December 1989. Located in the Central North Island of New Zealand, the District includes the large catchment area of Lake Taupo, the hydroelectric dams on the Tongariro and upper Waikato rivers, and substantial geothermal resources.
The District contains expansive areas of exotic pine forests and farmlands — the predominant land uses - and includes native forests and parts of Tongariro National Park, the Kaimanawa Range, Pureora Forest Park and the Central Plateau mountains.
Taupo, Turangi and Mangakino are the three main urban areas in the District. There are many lakeside settlements around the shores of Lake Taupo and the Waikato River.
Did you know? The District land area is 635,400 ha, with about 1,720 ha residential, 187,861 ha farming and 189,000 ha The planted in forests. usually resident population is 32,400. In April 2010 theree properties. were 22,052 rateabl
Taupo District has an average of 116 wet days, 1,965 sunshine hours and 69 days with ground frost in a year.
Lake Taupo covers 600km2. It’s New Zealand’s largest lake, and the Waikato River that flows from it is New Zealand’s longest river.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 11 Our Organisation at a Glance
Taupo District Council has a mayor, 10 councillors and more than 350 full-time equivalent staff.
We have $1.291 billion in assets, including land, infrastructure and buildings.
Taupo District Council provides… • Taupo Airport (in conjunction with the Crown) • 762 km of road, 281 Km of footpaths, 3 675 strtet lights, 24 bridges, 31 km of culverts, 38 km of cycleways and 97,000m2 of parking. • 570 km of pipes and 35 pump stations to reticulate drinking water • 350 km of wastewater pipes, 101 pump stations and 12 wastewater treatment plants • 2059 km of pipes for stormwater. • Ten sports grounds, 62 parks, nearly 300 reserves, 3 cemeteries and 20,000m2 landscaped gardens, as well as playgrounds, recreational paths, park furniture, landscaping and public toilets. • Three swimming pools, three recreation centres, the Great Lake Centre, the Taupo Museum and three libraries. • 57 pensioner accommodation units and 12 community halls.
Council also provides services including emergency management, economic development, events and destination management, and statutory and regulatory functions including issuing 1062 building consents and 234 resource consents in 2009/10.
12 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Governance Report
Taupo District Council’s Role Council provides an essential governance role for the Taupo District. It has overall responsibility and accountability for the direction and control of the District’s activities. This responsibility includes: • formulating the District’s strategic direction • managing principal risks facing the District • administering various regulations and legislation • ensuring the integrity of management control systems • safeguarding the public interest • ensuring effective succession of elected members • reporting to ratepayers.
Council Operations Elected councillors appoint a chief executive to manage the operations of Council under the provisions of s42 of the Local Government Act 2002. The chief executive then appoints managers to manage Council’s activities.
Council Committees/Community Boards Council has several standing committees, sub-committees and a community board to monitor and assist with the effective discharging of its responsibilities. These include:
• District Regulatory and Hearings Committee • Taupo/Kaingaroa-Mangakino/Pouakani (TKMP) Committee • Turangi/Tongariro (TT) Community Board.
The TKMP Committee (incorporating the Taupo/Kaingaroa and Mangakino/Pouakani wards) and the Turangi/Tongariro Community Board and the areas they represent are consistent with Council’s policy of having two rating areas for general rates. Generally, rating revenue from each area will be spent within that area. The Turangi/Tongariro Community Board, in addition to its function of being politically responsible for representing its community has advisory responsibilities.
Although not a constituted ‘community’, the Taupo/Kaingaroa–Mangakino/Pouakani Committee has a role and delegated authority similar to the Turangi/Tongariro Community Board, dealing with most matters pertaining to its ward areas.
Council also has special committees for things like the airport, emergency management, and the Rugby World Cup 2011, as well as joint committees for Lake Taupo Protection and Waikato Civil Defence Emergency Management.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 13 Council Committee Structure Community Board Turangi/Tongariro Committee Waikato Civil Waikato Management Sub Management Defence Emergency Defence Trust Waikato Civil Waikato Sub Committee Management Group Management Defence Emergency Lake Taupo Protection Taupo Lake Joint Committees Committee Committee Committee Committee Emergency Management Code of Conduct Host Co-Ordination Host Rugby World Cup 2011 Cup World Rugby Taupo Airport Authority Airport Authority Taupo Taupo District Council Special Committees Sub Committee Sub Victoria Development Victoria Development Committee Sub Committee Sub Owen Delany Park Park Delany Owen Taupo/Kaingaroa- Sub Committees Hearings Committee Hearings Mangakino/Pouakani Mangakino/Pouakani District Regulatory & Regulatory District Sub Committee Standing Committees Mangakino/Pouakani Mangakino/Pouakani
14 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Community Outcomes – State Of The District
The Taupo District Council promotes the environmental, social, economic and cultural well-being of residents and ratepayers, using a set of Community Outcomes, clustered under five themes: Lakes, Rivers, Landscapes — places we are proud of • Healthy People, Healthy Communities • Safe and Secure • Thriving and Prosperous • Vibrant and Diverse
Council developed its State of the District Report 2010 drawing on more than 100 measures of community well-being under these headings. Some highlights and major findings are given below.
Lakes, Rivers, Landscapes — places we are proud of In its 2009 progress report, the 2020 Taupo-nui-ā-Tia Joint Management Group assessed that good progress is being made towards: • clear water and high quality inflowing water • diverse plants and animals in lakes and rivers • foreshore reserves and recreational opportunities • safe swimming • wilderness areas, outstanding scenery and geological features
Healthy People, Healthy Communities Socioeconomic position is a major determinant of health. There are pockets of privilege in the Taupo urban area and immediate surrounds where deprivation is low and socioeconomic status is high. However, there are significant disparities between living standards in these areas, and living standards in areas of high deprivation.
On many measures, the district population does not have good health, and these affect Maori to a much greater extent than the rest of the population: Maori within the district have 10 years less life expectancy than the average life expectancy for all others (and 7 years less compared to total district life expectancy).
Poor air quality contributes to respiratory illness and asthma, with consequent social and economic impacts. Woodburners are the main cause of poor air quality in the Taupo district, and 50-60% of households are estimated to use woodburners for home heating. Environment Waikato monitors Taupo and Turangi urban areas for air quality in line with national standards. From 2001 to 2008, air quality in Taupo urban area improved by 22%. However, Environment Waikato estimates that Taupo needs a 38% further improvement in overall air quality to meet the national environmental standard by 1 September 2013.
Safe and Secure In April 2010 the Taupo district received Safe Communities Accreditation from the World Health Organisation (WHO), which was a goal of the Taupo Safe District strategy. The strategy is based on principles of collective action, collaboration, coordination and proactive responsiveness, because the whole district has a role to play in injury prevention and safety promotion.
The road traffic crash rate in the district has declined since 2007, but is still one third higher than the national average. Council will monitor whether the East Taupo Arterial leads to a reduction in the crash rate, by separating heavy trucks from sightseers, and moving through traffic away from the Taupo township.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 15 Thriving and Prosperous Over the past two years, the district has been less affected by the recession than many other areas, partly because of infrastructure spending on three major projects. However, the recession has had a substantial impact on housing investment, both locally and nationally. Consents for new residential dwellings fell 47% from 2007 to 2009 in the district (47% nationally).
The district has developed its reputation as the “Events Capital of New Zealand”, with several major international events being hosted here, such as Ironman, the Lake Taupo Cycle Challenge, and Oxfam Trailwalker. An economic impact report on the 2009 Lake Taupo Cycle Challenge found that the event brought 27,400 visitors to the district. The report estimated that the event also led to $4.64 million flowing into the local economy1.
Vibrant and Diverse The district is increasingly embracing its rich Maori cultural heritage, strengthening connections between the district’s earliest settlers and more recent arrivals. The Ngatoroirangi Toa Matarau Gateway at the Taupo War Memorial was unveiled in late 2009, featuring a waharoa carved with a symbolic and spiritual story about the arrival of geothermal energy to the Taupo region. The site was selected by Ngāti Tūwharetoa because of its special associations for the whole community.
The Tūwharetoa Schools Kapa Haka Festival in September 2009 attracted almost 2000 performers and 5500 spectators, including Paramount Chief Sir Tumu Te Heuheu. The festival celebrated Maori performing arts for schools and early childhood providers within the Ngati Tūwharetoa boundaries. The festival provided a platform for the entire community, both Maori and non-Maori, to participate in traditional Maori performing arts.
From 2006 to 2009, library visitor numbers rose by 7% and museum visitors increased 9% from 2007 to 2009. More than 30% of residents and ratepayers have used these facilities, reporting very high levels of satisfaction.
1 New Zealand Tourism Research Institute (2010) AUT. www.nztri.org. The report, prepared for www.eventscapital.co.nz, presents the findings from the 2009 Lake Taupo Cycle Challenge participant and business surveys.
16 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Strategic Directions
Council response to the Community Outcomes The LTCCP 2009-19 set out Council’s plans for the next ten years, including activities that were planned to respond to the community’s desired outcomes. The activities were grouped into four strategic directions to help Council play its part in achieving them. The strategic directions were developed using a wide range of information, including feedback from community consultation about what is important. These directions highlight the connections between what the district’s communities want and how Council planned to help meet those outcomes.
The strategic directions and groups of activities within them are:
Strategic Direction Working Together
Activities Leadership, Governance and Advocacy Community Engagement Planning for the Future
Strategic Direction Strategic Direction Strategic Direction Growth and Economic Strong, Safe and Healthy Sustainable Environment Development Communities Activities Activities Activities Lakes and Rivers Economic Development Community Facilities Solid Waste Liveable Places Venues Stormwater Taupo District Investments Heritage Culture and Public Art Wastewater Destination Marketing and Parks and Reserves Management Emergency Management Events Regulatory Services Transportation Water Supply
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 17 Opportunities for Māori contribution to decision making process
Council has an extensive range of processes to provide opportunities for Māori to contribute to decision making.
Relationships Council’s senior management and the Secretary of the Tūwharetoa Māori Trust Board meet regularly to exchange information and to seek advice from one another, in line with a 2005 Management Protocol. Council also has a Memorandum of Understanding with the Raukawa Māori Trust Board that enables them to meet and exchange information and views.
The Tūwharetoa Māori Trust Board developed an Iwi Management Plan in 2003 and this document continues to be used by Council staff, including for the development of structure plans. Tangata whenua have been involved in developing the Taupō Commercial and Industrial Structure Plan, and development of the Turangi and Lakeshore Settlements Structure plan has includes iwi and hapū engagement.
The strategic relationships team supports management to engage the district’s communities, and they work closely with the three local Iwi: Ngāti Tūwharetoa, Ngāti Tahu (Te Arawa) and Ngāti Raukawa on many issues including destination marketing, Rugby World Cup 2011 preparations and economic development.
The team also has regular engagement with hapū on Resource Management Act matters. For example, a joint pilot project with the Rauhoto Land Rights Committee continues to protect sites identified within their ancestral lands. Protection processes across the district will continue to be developed with Iwi and hapū.
Joint decision-making Council’s Joint Management Agreement with Tūwharetoa Māori Trust Board in 2008 granted Ngāti Tūwharetoa decision-making powers in resource consent decisions to further fulfil their traditional kaitiakitanga role. This was the first time a local government body had formally shared environmental resource decision-making powers with an iwi. The agreement has received national acclaim, including the New Zealand Planning Institute’s Nancy Northcroft Planning Excellence Award and more recently the IPANZ Gen-I Public Sector excellence award. Council continues to refine its processes for implementing the agreement. Treaty settlements for the Waikato river require all adjoining local authorities to formulate joint management agreements with local river iwi. It is expected that these functions be added to the existing agreement with Ngāti Tūwharetoa.
Treaty of Waitangi settlements Council monitors Treaty settlements to ensure that its policies meet the demands of settlement legislation. Central North Island forests, Rangitaiki River and the Waikato river are currently under negotiation.
Waikato river settlements have progressively developed the concept of protection for the river. Taupō District Council like the local river iwi (Tūwharetoa, Te Arawa, Raukawa) believes that this is vital, and is committed to protecting the health and wellbeing of the Waikato river for future generations. Council has made submissions on a number of settlement Bills addressing settlement from the rock of Tia to Karapiro, settlement beyond Karapiro, and the vision and strategy document prepared by the Waikato River Guardian’s Establishment Committee. Council supports cleaning up the river but wants to ensure that costs associated with settlements do not fall on Taupō district ratepayers.
18 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Cultural advice The Ngāti Tūwharetoa Gallery Governance Group provides considerable assistance to Council to ensure that the gallery and exhibitions are culturally appropriate for the District. This process has also helped to educate museum staff on cultural matters.
Māori Land Rating Council’s Māori Land Rating Officer provides information and education on Māori land rating issues and ensures that Council’s rates remission policy is applied where relevant.
Staff Training Staff have attended a number of sessions this year to assist them in their engagement of Iwi and hapū groupings throughout the District. The courses range from the Treaty of Waitangi, marae protocol and Iwi and district history and run annually. Through Council’s Equal Employment Opportunities policy, Māori language courses are also made available to staff.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 19 Statement of Compliance
The Council and management of Taupo District Council confirm that all the statutory requirements of Part 6 of the Local Government Act 2002 have been complied with.
The Council and management of Taupo District Council accept responsibility for the preparation of the annual financial statements and the judgements used in them.
The Council and management of Taupo District Council accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting.
In the opinion of the Council and management of Taupo District Council, the annual financial statements for the year ended 30 June 2010 fairly reflect the financial position and operations of Taupo District Council.
R Cooper MAYOR 28 September 2010
R T Williams CHIEF EXECUTIVE OFFICER 28 September 2010
A J Menhennet GROUP MANAGER — FINANCE AND CORPORATE SERVICES 28 September 2010
20 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Report of the Auditor General
Audit Report To the readers of Taupo District Council and group’s financial statements and service performance information for the year ended 30 June 2010
The Auditor-General is the auditor of Taupo District Council (the District Council) and group. The Auditor-General has appointed me, B H Halford, using the staff and resources of Audit New Zealand, to carry out the audit on her behalf. The audit covers the financial statements, the service performance information, that comprises the groups of activity statements and contextual information included in the Chief Executive’s report, and the District Council’s compliance with the other requirements of Schedule 10 of the Local Government Act 2002 that are included in the annual report of the District Council and group for the year ended 30 June 2010.
Unqualified opinion In our opinion: • The financial statements of the District Council and group on pages 111 to 163: ◦ comply with generally accepted accounting practice in New Zealand; and ◦ fairly reflect: • the District Council and group’s financial position as at 30 June 2010; and • the results of operations and cash flows for the year ended on that date. • The service performance information of the District Council on pages 7 to 9 and 24 to 107: ◦ complies with generally accepted accounting practice in New Zealand; and ◦ fairly reflects the District Council’s levels of service performance for the year ended 30 June 2010, including: • the levels of service provision as measured against the intended levels of service provision adopted in the long-term council community plan; and • the reasons for any significant variances between the actual service provision and the expected service provision. • The District Council and group have complied with the other requirements of Schedule 10 of the Local Government Act 2002 that are applicable to the annual report, and that are included in the District Council and group’s financial statements and service performance information.
The audit was completed on 28 September 2010, and is the date at which our opinion is expressed.
The basis of our opinion is explained below. In addition, we outline the responsibilities of the 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, the service performance information and the 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 service performance information and the other requirements. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 21 The audit involved performing procedures to test the information presented in the financial statements, the service performance information and the other requirements. We assessed the results of those procedures in forming our opinion.
Audit procedures generally include:
• determining whether the significant management and system 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 service provision data; • reviewing significant estimates and judgements made by the Council; • confirming year-end balances; • determining whether accounting policies are appropriate and consistently applied; • determining the appropriateness of the reported service performance information within the 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, the service performance information and the other requirements.
We evaluated the overall adequacy of the presentation of information in the financial statements, the service performance information and the other requirements. We obtained all the information and explanations we required to support our opinion above.
Responsibilities of the Council and the Auditor The Council is responsible for preparing financial statements and service performance information in accordance with generally accepted accounting practice in New Zealand. The financial statements must fairly reflect the financial position of the District Council and group as at 30 June 2010. They must also fairly reflect the results of operations and cash flows for the year ended on that date. The service performance information must fairly reflect the District Council’s levels of service provision for the year ended 30 June 2010.
The Council is also responsible for meeting the other requirements of Schedule 10 of the Local Government Act 2002 and including that information in the annual report. The Council’s responsibilities arise from section 98 and Schedule 10 of the Local Government Act 2002. We are responsible for expressing an independent opinion on the financial statements, the service 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.
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 and in carrying out the audit of long-term council community plan, we have no relationship with or interests in the District Council or any of its subsidiaries.
B H Halford Audit New Zealand On behalf of the Auditor-General Tauranga, New Zealand
22 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Purpose of the Annual Report
The Annual Report focuses on service and financial elements of Council performance for twenty activities, clustered under four strategic themes. It is required under the Local Government Act 2002, and compares the Council’s actual operational and financial performance for the year against the Annual Plan.
Council reports on performance at service delivery, and on financial performance.
Service performance reporting focuses on the groups of activities which Council delivers. Activities are grouped into strategic themes. Information details what each activity involves and how it is designed to contribute to Community Outcomes. This is followed by more detailed information on the targets and actual achievements, both financial and non-financial.
Financial performance reporting includes the income statement, the balance sheet and associated accounting policies and notes. Information must be prepared in compliance with approved accounting standards. It also includes the cost of service statements for each strategic theme, which show the expenditure on each activity, the revenue directly attributable to those activities, and the mechanisms for funding any net cost and capital expenditure.
For 2009/10, the Annual Plan was given as the first year of the 2009-19 Long-Term Council Community Plan (LTCCP). It set the annual budget and specific performance targets for the year.
The Long-Term Council Community Plan is a key planning document, prepared three-yearly and setting the agenda with a ten-year focus. It contains and refers to many of Council’s other planning documents and policies. Council is accountable for the direction, actions and budgets set in the Long-Term Council Community Plan.
A copy of the 2009–19 LTCCP (which includes the Annual Plan for 2009/10) can be obtained from Council. All of our policies, plans and reports can be viewed online at www.taupo.govt.nz.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 23 Service Performance Reporting
This section of the report has Council’s statements of service performance for each activity including: • What we do • What we planned and delivered • What else we did • What we planned, but did not complete • How we know we’re on track • What it cost
Surveys Council uses a range of surveys to monitor performance Satisfaction Survey Once every three years, Council contracts NRB to conduct a telephone survey of 300 residents, and 100 non-resident ratepayers on their perceptions, and interpretations of Council services and Council representation. In 2009 the survey addressed satisfaction with Council services, information and communication, civil defence, personal safety, waste minimization, Lake Taupo protection, Council’s long-term direction, and performance of elected members Community Outcomes Every three years, Taupo District joins a syndicate of Waikato-based councils in a telephone survey of Waikato Community Outcomes. The survey was conducted in June/July 2010, and results will be available in late 2010. The survey examined quality of life, health, safety, employment opportunities, participation in sport and active leisure, Council decision-making, pride in the District, and respect for the cultures of people who live here. Other surveys Council conducts one-off online surveys as part of its customer service evaluation. Destination Lake Taupo conducted a face-to-face survey with visitors in April 2010.
24 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Achievement Definitions
Achieved All aspects of the performance target were achieved, including time, cost, quality and location, as relevant.
Substantially The activity identified in the performance target was carried out, but achieved there were minor slippages in time and/or costs. These slippages were slightly higher than budgeted, but no more than 5%.
Achieved in Part The planned activity was carried out, but the time components of the performance target were not met and/or expenditure was more than 5% over budget.
On track The measure has a target set outside the reporting period, or covering multiple reporting periods. As a result, no conclusive assessment of actual achievement can be made, but the activity is tracking appropriately at present.
Not achieved The activity was not significantly progressed or the work undertaken did not meet the requirements of the target.
Not formally Performance could not be conclusively reported on (for example, the measured necessary systems were not in place to measure performance or the data collected was not statistically reliable).
Not applicable Due to events beyond the Council’s control, the activity was no longer relevant and the work was not carried out.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 25 SERVICE PERFORMANCE
Working Together 28 Growth and Economic Development 38 Strong, Safe and Healthy Communities 56 Sustainable Environment 92 WORKING TOGETHER
What we do
We want to understand the needs of our communities, and make decisions that benefit them. To do this, we build relationships and networks with communities and provide opportunities for communities to engage with us.
Advocacy, relationship building and connecting with the youth of our community are part of this work. We are also working to be the best we can with our staff and systems, and to deliver the services we plan.
We engage with central and regional government agencies for the benefit and wellbeing of our communities giving, voice to the needs and concerns of our District both regionally and nationally. Council advocates on a wide range of issues including land, water and air quality, healthy communities and regional tourism.
Council will continue to develop our international relationships for the District’s benefit.
Council activities that help achieve the goals were:
• Leadership, Governance and Advocacy • Community Engagement • Planning for the Future
Sister City China Tour
28 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Leadership, Governance And Advocacy
What we do
Council leadership and governance operates through a range of committees, subcommittees, ward committees and the Turangi Tongariro Community Board, which set Council’s direction and monitor progress to achieve the District’s goals. They build relationships for the benefit of the District, and consult with and advocate on behalf of its communities.
Facilities and organisational systems to support the delivery of Council services and activities are included here, because Council needs to ensure their development and maintenance in order to meet its commitments. WORKING TOGETHER Council’s international relationships are with three sister cities: Hakone (Japan), Noumea (New Caledonia), and Suzhou (China). Council also has friendship city status with Xian (China). The Turangi Tongariro Community Board has a sister city relationship with the Japanese village Kitashiobara.
KEY ACTIONS, PROJECTS AND SERVICES
What we planned and delivered • Maximised shared services opportunities, working with a group of local authorities via BOPLASS (Bay of Plenty Local Authority Shared Services) • Funded the activities of the International Relations Committee, which hosted visitors from our Rugby World Cup teams as they prepare for RWC 2011.
What we planned, but did not complete • Developing Future Leaders — Investigate establishment of youth councils in Turangi and Mangakino. Council sought funding three times for this initiative, and we now have funding for leadership training for young people in the District. This funding will enable Council to establish an effective process for consulting with young people. • Implement IT projects to improve systems and processes While good progress was made, some organisational development IT projects slipped due to their complexity.
Leadership, Governance and Advocacy activity enhances community well-being
Social and Economic The provision of governance and organisational systems supports effective and accountable delivery of services. Council advocacy activities strengthen trust with residents and ratepayers, and relationships with international representatives.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 29 How we’ll know we’re on track
Short term
What we want to know Measure Target Result
There is satisfaction Percentage of 75% Not applicable with the decision- community that The Waikato Community Outcomes Perceptions making process understand how Survey was conducted in June/July 2010 and Council makes will be reported in October 2010. decisions 75%
Confidence that Council’s decisions are best for the District
Significant decisions Significant decisions Achieve Achieved are made in comply with the Significant decisions complied with the accordance with the requirements of the requirements of the Local Government Act requirements of the Local Government 2002. Local Government Act Act 2002 (refer to 2002 Council’s policy on Significance)
Information is available Process all requests Achieve Substantially Achieved to the community so for official information 97% of requests for official information were that they are able within 20 working processed within 20 working days. to participate in the days of receipt of the decision-making request Two requests were not responded to in time: a process new escalations function in the Service Request System should prevent this from happening in future.
Management systems Organisational Achieve Achieved in Part and processes are development action 84% of the action plan targets were met. The reliable plan targets are met organisational development action plan had four work streams with 70 projects.
Long term
What we want to know Measure Target Result
The community Percentage of 75% Not applicable feels involved in the community who feel The Waikato Community Outcomes Perceptions development and they have enough say Survey was conducted in June/July 2010 and future of the District in what Council does will be reported in October 2010.
30 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Leadership, Governance and Advocacy – Financial Results
Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Other Income 1 - - WORKING TOGETHER 1 0 0 Operating Expenditure
Operating Expenditure 4,229 4,359 4,319
Depreciation and amortisation 15 15 17 4,244 4,374 4,336
Net Cost (surplus) of operations 4,243 4,374 4,336
Funded By:
General Rates 4,277 4,374 3,173
General Funds (34) - 1,163
Total Funding Applied 4,243 4,374 4,336
Capital and Reserve Funding Capital Expenditure
Renewals 347 462 4
Increase in Level of Service 436 448 340
Total Capital Expenditure 783 910 344
Funded by:
Loans Raised 503 488 182
Transfers (to)/from Reserves 280 422 152
General Funds - - 10
Total Funding Applied 783 910 344
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 31 Capital Expenditure
Activity/ Project Reason for Project YTD Budget Variance Notes Scheme Acquisition Status Actual $000 $000 (refer key) $000
District Support Building, plant and Renewals A 336 452 (116) 1 Services equipment renewals Support Computer network Level of S 447 458 (11) 2 Services development, office Service/ equipment and Renewals security
Total Leadership, Governance and Advocacy 783 910 (127)
Key A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget 1. Level of renewal required lower than budgeted 2. WIP, minor slippage due to timings
32 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Community Engagement
What we do
Community engagement is about working with communities and other groups to address issues affecting the well-being of people in our District. Council needs working relationships with a wide range of communities and central and local government agencies to help understand and address the needs of our District. Community engagement can lead to the mobilisation of resources (both within Council and from other organisations), and can lead to changes to policies, programmes and practices.
KEY ACTIONS, PROJECTS AND SERVICES WORKING TOGETHER What we planned and delivered
• Achieved World Health Organisation Safe Communities Accreditation • Implemented Community Engagement Strategy, to strengthen the depth and breadth of our engagements with residents, communities and other stakeholders • Adopted a Community Grants Policy to guide the distribution of grants in three areas: sports, arts and culture, and welfare. Council made grants totalling more than $320,000. • Organised a series of ‘Our Neighbourhood’ barbecues and other community events to help people build stronger relationships within their neighbourhoods and to strengthen social cohesion • Participated in Healthy Homes steering group which promotes insulation and energy-efficient heating for homes in the District.
“One of the Best” Taupo district was awarded “International Safe District” status in May 2010. Six accredited examiners from the World Health Organisation (WHO) visited Taupo in April to judge the district’s application to become an “International Safe District”. They said that the districts application was one of the best they had seen.
Community Engagement activities contribute to community well-being
Social Council’s commitment to the ‘Our Neighbourhood’ project has engaged communities and residents’ associations, strengthening their social connectedness and cohesion. Council’s Community Engagement Strategy empowers the community to be involved in decision making.
Social cohesion is strengthened by collaborative partnerships; the provision of community grants; participation in healthy homes and air quality projects; advocacy; and a commitment to the principles of WHO Safe Communities Accreditation.
Economic Strong, healthy and safe communities are more likely to thrive economically and are attractive to both visitors and investors.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 33 How we’ll know we’re on track
Short term
What we want to know Measure Target Result
We are working Results of partnership Positive Achieved effectively with groups progress reports results By engaging people, participating in and organisations to achieved by partnerships and generally being accessible, we identify and address partnerships have created a platform where Taupō District issues neighbourhoods and those that interact with them have an opportunity to raise any issues.
Having been made aware, the established connection with our community partners provides a forum for resolving issues as they are identified.
As issues are Number of new At least Achieved identified, partnerships partnerships one new New partnerships continue to be fostered are developed where developed within the partnership following on from the ‘Our Neighbourhood’ appropriate scope of community developed project. A new partnership that has been development when new developed is with CAFÉ for Youth Health. issues are identified
Long term
What we want to know Measure Target Result
Members of the Resident and 60% Not achieved community have the ratepayer satisfaction 55% of resident and non-resident ratepayers ability to contact with opportunities to were satisfied with the way Council involves Council and express have a say the public in the decisions it makes. their views
International ‘Safe District’ award ceremony May 2010
34 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Community Engagement – Financial Results
Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Targeted Rates 41 41 - WORKING TOGETHER
Other Income 116 31 164 157 72 164
Operating Expenditure Operating Expenditure 1,113 942 1,588
Depreciation and amortisation 36 4 1 1,149 946 1,589
Net Cost (surplus) of operations 992 874 1,425
Funded By: General Rates 855 874 1,251
General Funds 137 - 174
Total Funding Applied 992 874 1,425
Capital and Reserve Funding Capital Expenditure Increase in Level of Service - - 11
Total Capital Expenditure - - 11
Funded by: Transfers (to)/from Reserves - - 11
Total Funding Applied - - 11
‘Our Neighbourhood’ event held in Turangi
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 35 PLANNING FOR THE FUTURE
What we do
Council has strong planning, monitoring, and reporting roles to make sure that the District is equipped to meet the future. Council prepares the Long-Term Council Community Plan and any subsequent amendments, annual plans and annual reports. Council also has an important role in identifying the Community Outcomes that meet community and statutory requirements. In order to have access to information for planning, monitoring, and reporting on progress, Council develops, implements and oversees a range of information collection and other data-gathering activities.
KEY ACTIONS, PROJECTS AND SERVICES
What we planned and delivered
• Prepared 2008/09 Annual Report • Prepared 2010/11 Annual Plan • Prepared 2009/10 Corporate Business Plan • Prepared State of the District Report, 2010
What we planned, but did not complete
• Review of the Community Outcomes Council resolved to delay this review until amendments to the Local Government Act clarified the status of community outcomes.
The Planning for the Future activity affects community well-being
Social Well-informed and involved communities are empowered across all of Economic the well-beings Environmental Cultural
36 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 How we’ll know we’re on track
What we want to know Measure Target Result
Plans and policies Unqualified audit Achieve Achieved are prepared in report for LTCCP and The LTCCP 2009-19 received an unqualified accordance with the LTCCP amendments audit report. No amendments have been made. Local Government Act 2002 (and subsequent amendments)
Plans and policies Significant decisions Achieve Achieved WORKING TOGETHER are prepared in comply with the Significant decisions complied with the accordance with the requirements of the requirements of the Local Government Act Local Government Act Local Government 2002. 2002 (and subsequent Act 2002 (refer to amendments) Council’s policy on Significance).
The community is Percentage of the 75% Not Achieved well informed about community that 66% of the community felt informed about Council’s plans and feel informed about Council’s activities and plans, including 82% progress Council’s activities and of non-resident ratepayers, 61% of residents. plans for the future Maori (43%) and people aged 18-39 (50%) were less likely to feel informed.
Planning for the Future – Financial Results
Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income - - -
Operating Expenditure Operating Expenditure 818 756 952
818 756 952
Net Cost (surplus) of operations 818 756 952
Funded By:
General Rates 739 756 662
General Funds 79 - 290
Total Funding Applied 818 756 952
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 37 GROWTH AND ECONOMIC DEVELOPMENT
What we do
Developing a robust and diverse economy is one of the most important long term areas of focus for Council, for the well-being of our communities. A flourishing District needs a broad anger of business and employment opportunities, skilled and educated people, and openness to innovation.
The traditional economic anchors for the District are forestry, farming and tourism and these will continue to be important. Building relationships and connections across the different industries (for example forestry, energy and tourism) may offer synergies that enable the District to offer a richer range of opportunities for all of these sectors.
We are working to strengthen the District’s position through our investment in economic development, including funding for Enterprise Lake Taupo (ELT), destination marketing and management, attracting events to the district, and the work we do helping to developing our communities.
Council activities that helped achieve our goals were: • Economic Development • Liveable Places • Taupo District Investments • Destination Marketing and Management • Events
38 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Economic Development
What we do
Growing the size and scope of economic activity within the District is essential to maintaining the long-term health and wealth of our communities, and essential Council services.
Council funds an economic development partner, Enterprise Lake Taupo (ELT), which focuses on well-maintained infrastructure, investment in the District and working with others to attract people with skills that the District needs. Enterprise Lake Taupo provides advice to potential investors and implements projects to support the District economy. It also advocates for District services with other organisations, to support the District’s economic goals.
Council continues to work with partners such as Ngati Tuwharetoa, the Chamber of Commerce, and the Lake Taupo Development Company to co-ordinate services effectively.
KEY ACTIONS, PROJECTS AND SERVICES
What we planned and delivered • Implemented Council actions in the Economic Development Action Plan • Supported the Affordable Housing Trust • Supported the operations of Enterprise Lake Taupo • Disestablished the Taupo District Economic Development Advisory Board • Identified a location for an ice arena and provided a lease agreement to the Alpine Sports Trust. DEVELOPMENT What else we did GROWTH AND ECONOMIC Investigated the purchase and development of economic and tourism information that was focused on economic activity in the District. This is a collaborative project with ELT, Destination Lake Taupo (DLT), and Town Centre Taupo. Reports will begin in 2010/11.
Economic Development activity supports community well-being
Economic Collaboration among ELT, DLT, Town Centre Taupo, and Council supports economic development. Promotion of the District and capability building contribute to economic resilience.
Social A thriving community contributes to social outcomes.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 39 How we’ll know we’re on track
What we want to know Measure Target Result
Services set in Completion of Achieve Achieved in part economic development economic development Council contracts Enterprise Lake Taupo (ELT) contracts are being projects to oversee and implement the Economic delivered Development Action Plan and deliver economic development services for the District. Further work is required to promote the District. Enterprise Lake Taupo has a new business development manager starting in October 2010.
This activity is Economic indicators Positive Not achieved indirectly having a such as business changes Measures of economic activity that improved positive effect on the confidence, were: economy unemployment rates, Unemployment — the rate was 2.8%, business numbers and which was much lower than the national average income unemployment rate (6.6%). Visitor numbers — visitor numbers rose 0.7% on the previous year.
Measures that declined included: Employment — total employment in the District fell 1.8% in the year to March 2010. New dwellings — the number of new dwellings approved during the year was down 14.6% on the previous March year, and the combined value was down 20%. This information comes from ELT’s reports on economic activity. Council is working with ELT to develop a new District-specific programme of economic information.
40 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Economic Development – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Targeted Rates 50 49 46
50 49 46
Operating Expenditure
Operating Expenditure 190 245 155
Depreciation and amortisation 60 60 - 250 305 155
Net Cost (surplus) of operations 200 256 109
Funded By: DEVELOPMENT General Rates 192 196 91
Depreciation not Funded - 60 - GROWTH AND ECONOMIC
General Funds 8 - (22)
Opening Balance - - 40
Total Funding Applied 200 256 109
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 41 Liveable Places
What we do
Council manages how land is used and where subdivision takes place, primarily through the District Plan. The District Plan provides direction on which activities are acceptable, while protecting the community and environment against adverse effects.
Unmanaged growth has the potential to undermine the sustainability of a community. Council has a key role to play managing urban growth, particularly in planning, using Taupo District 2050 (TD2050), the District-wide growth management strategy, as a blueprint.
Central government and regional councils also develop policies and rules that govern how land and resources are used. Their policies and rules can impact on how our communities grow and function, so it is important that Council advocates for the District’s communities with these organisations. KEY ACTIONS, PROJECTS AND SERVICES What we planned and delivered
• Initiated the Turangi and Southern Lakeshore Settlements Structure Plan • Continued appeal resolution for Plan Change 23 (Mapara Valley) • Continued appeal resolution for the Natural and Landscape Values Plan • Continued drafting the Biodiversity Strategy (known as the Natural Heritage Strategy), in order to protect the District’s very particular ecology
What we planned, but did not complete
• Implementation of the District Plan monitoring process (ongoing until 2017) A new consent monitoring system is enabling the collection of information to monitor how the rules in the plan are being applied, and any resulting environmental changes. • Processing of Turangi Structure Plan including appeal resolution This project is dependent on a private developer and is no longer happening. Instead, Council has begun to develop a structure plan for Turangi and the south-eastern and south-western settlements (Turangi and Lakeshore Settlements Structure Plan). • Review of the TD2050 implementation plan Council has resolved to delay the review of Taupo District 2050 until the results from the 2011 Census are available. Census information will provide the basis for reviewing the population estimates in the original strategy. • Completion of the Taupo Urban Commercial and Industrial Structure Plan The draft structure plan was notified and submissions closed on 26 February 2010. Hearings have been held and deliberations and decisions have been made (in July 2010). Further work will be required to update and complete the structure plan as a result of these decisions. • District Plan change (notification and processing) for Taupo Urban Commercial and Industrial Structure Plan There will be a delay in the initiation of the plan change until Council has adopted the structure plan. This work will commence immediately following decisions on the structure plan. • Processing of Whareroa Structure Plan Change (dependent on private developer) The applicant continues to work with Council staff to develop a private plan change for the area to the north of Whareroa. • Consultation on and notification of the Lake Taupo Erosion and Flood Plan Change Council adopted the Lake Taupo Erosion and Flood Strategy in December 2009. Further development of the subsequent plan change has been delayed as a result of the delay in adoption of the strategy.
42 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 • Potential notification and adopting of Hazards Plan Change (dependent on review undertaken prior to June 2009) Development of the plan change has been delayed due to the extra time taken to adopt the Lake Taupo Erosion and Flood Strategy. This work will be progressed during the 2010/11 year. • Design guidelines for development in the rural environment Work has commenced on this project, which is due for completion in 2010 /11.
The Liveable Places activity contributes to community well-being
Environmental Adverse effects on the environment are mitigated while urban and infrastructure planning incorporate the needs of the community.
Economic Ensuring protection of the natural and landscape values that visitors and residents value will ensure the District’s economic drawcards are sustained. DEVELOPMENT GROWTH AND ECONOMIC
Boat Harbour and Taupo’s town centre
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 43 How we’ll know we’re on track
Short term
What we want to know Measure Target Result
District Plan changes All identified plan Achieve Achieved are developed in changes consulted, All plan changes are on track to be processed accordance with the notified and heard in within statutory time frames. This includes plan provisions of the accordance with best changes 24 and 25 (Natural and Landscape Resource Management practice and within Values), which were heard in November, and Act 1991 statutory time frames the notification of Plan Change 26 (Code of Practice) and Plan Change 27 (minor amendments) in December 2009.
Structure plans All Council-developed Achieve Achieved developed by Council structure plans involve The Taupo Urban Commercial and Industrial meet the consultation consultation during Structure Plan has been developed in and decision-making their development and accordance with the requirements of the Local requirements of the in accordance with the Government Act 2002. Local Government Act special consultative 2002 procedure Consultation was undertaken with the community and interest groups during the development of the structure plan. This included regular meetings of a strategic partners’ forum, public open days, information in the local media and targeted meetings with interested groups and individuals. The draft structure plan was then notified in accordance with the special consultative procedure.
Council undertook preliminary consultation on the Turangi and Southern Lakeshore Settlements Structure Plan.
Council is advocating Submissions are Achieve Achieved on behalf of prepared where Submissions have been prepared on the the community environmental following policies: with respect to policy developed by Bay of Plenty Regional Policy Statement environmentally- other government Waikato Regional Policy Statement focused national organisations has a National Policy Statement on Forestry. and regional policy significant impact on development the Taupo District.
Long term
What we want to know Measure Target Result
The community Percentage of 75% Not applicable feels involved in the community who feel The Waikato Community Outcomes Perceptions development and they have enough say Survey was conducted in June/July 2010 and future of the District in what Council does will be reported in October 2010.
44 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Liveable Places – Financial Results
Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Other Income 6 2 9 6 2 9
Operating Expenditure
Operating Expenditure 1,337 1,415 864
Depreciation and amortisation 1 3 1
1,338 1,418 865
Net Cost (surplus) of operations 1,332 1,416 856
DEVELOPMENT Funded By: GROWTH AND ECONOMIC General Rates 1,384 1,416 726
General Funds (52) - 130
Total Funding Applied 1,332 1,416 856
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 45 Taupo District Investments
What we do
Council generates income from its assets through development, sales and leases. That income stream helps to keep rates affordable, and also helps to pay for District development, such as the East Taupo Arterial. The goal is to maximise returns from:
• urban land development (190ha)
• TEL Fund
• general reserve funds
• forestry (1058ha)
• property.
KEY ACTIONS, PROJECTS AND SERVICES What we planned and delivered
• Set development and investment strategies for each class of assets, and managed them to deliver the required level of income for year
• Managed TEL fund and general reserve funds
• Planned start of Broadlands Road Service Centre beside East Taupo Arterial
• Managed forestry investments
What else we did
• East Urban Lands rebranding to ‘Tauhara Ridge’
What we planned, but did not complete
• Housing development on Stage 2 Victoria Development took longer than planned. Sales to proceed in 2010/11.
• Completion of resource consent for Lot 60 residential development Resource consent has not been lodged. Timing of Lot 60 development is on hold to concentrate on Victoria Development and for market recovery.
• Residential subdivision consent for Stage 2 Botanical Heights This project is in preparation and will be completed in 2010/11.
• Construct Mahoe Street industrial development This project has been deferred to 2010/11 due to changing economic conditions.
The Taupo District investments activity had a significant impact on the economic well-being of the community.
Council’s treasury management took advantage of financial opportunities to off-set costs. For example, the TEL Fund benefits residents in the Taupo Kaingaroa Mangakino Pouakani wards by using growth to offset other costs.
46 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 How we’ll know we’re on track
What we want to know Measure Target Result
We are developing Investment Strategy Achieve Achieved sustainable revenue reviewed every three Reviewed as part of the LTCCP 2009 sources other than years rates
Targets set within Achieve Achieved the strategy. (The Investment Strategy is located in the Treasury Management Policy, Volume 2 of the LTCCP 2009-19, page 15) DEVELOPMENT GROWTH AND ECONOMIC
Council owned forestry at Tirohanga
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 47 Taupo District Investments – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Property Sales (7) 625 979
Vested Assets - - 2,137
Other Income 8,423 7,851 7,946
8,416 8,476 11,062
Operating Expenditure
Operating Expenditure 7,646 735 3,019
Depreciation and amortisation 223 165 189
Finance costs 1,003 654 138
8,872 1,554 3,346
Net Cost (surplus) of operations 456 (6,922) (7,716)
Funded By: General Rates (5,580) (5,707) (3,848)
Transfers to Reserves 1,587 (1,215) (8,801)
General Funds 4,449 - 7,070
Recognition of Vested Assets - - (2,137)
Total Funding Applied 456 (6,922) (7,716)
Capital and Reserve Funding Capital Expenditure
Renewals 215 264 299
Increase in Level of Service 1,476 2,389 149
Total Capital Expenditure 1,691 2,653 448
Funded by:
Loans Raised 1,575 2,476 35
Transfers (to)/from Reserves 116 177 413
Total Funding Applied 1,691 2,653 448
48 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Capital Expenditure
Activity/ Scheme Project Reason for Project YTD Budget Variance Notes Acquisition Status Actual $000 $000 (refer $000 key)
Forestry Afforestation Renewals A 21 44 (23) 1
Mangakino Service Delivery Level of M 1 30 (29) 2 Centre & Library Service
Property Management Council property Renewals S 194 220 (26) 3 renewals
Urban Land Taupo Urban Land Managing X 1,475 2,359 (884) 4 Development developments Growth
Total Taupo District Investments 1,691 2,653 (962)
Key A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project DEVELOPMENT will no longer be carried out
Variances between Actual and Annual Plan Budget GROWTH AND ECONOMIC
1. Level of renewal required lower than budgeted 2. Costs for detailed design work and consent documentation reduced as work was carried out inhouse. Balance carried forward to 1011 for construction phase 3. WIP, minor slippage due to timings 4. Minor WIP, due to timings. Development expenditure in first half of year on plan. Expenditure in second half minimal with Council deciding to cease role as a developer
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 49 Destination Marketing and Management
What we do
Tourism marketing of Taupo District promotes the area as a visitor destination to consumers and to the travel industry, both domestically and overseas.
Destination Lake Taupo (DLT) is the regional tourism organisation and is responsible for: • implementing the digital strategy • marketing domestic tourism • marketing international tourism • destination management • operating i-sites in Taupo and Turangi • marketing conventions and incentives • implementing the sustainable tourism charter
KEY ACTIONS, PROJECTS, AND SERVICES
What we planned and delivered
• Domestic and international tourism marketing and destination management, including market research, and brand/identity development • Development of a digital strategy • Operating i-SITES in Taupo and Turangi • Convention and incentive marketing
What else we did
• Completed a new visitor complaints process • Reviewed the District’s information centres • Reviewed the Convention and Incentive Bureau – with proposed changes • Renewed video and image marketing tools • Initiated a larger and more comprehensive domestic marketing campaign
What we planned, but did not complete
• Development of a sustainable tourism charter • A review of critical success factors in August 2009 revealed other priorities to achieve Destination Lake Taupo’s primary goals, including the need to develop a new governance structure, and rebrand the District.
Destination marketing and management activity contributes to community well-being
Economic Increased tourism and visitor spend contributes significantly to the creation of jobs, development of public and private infrastructure, commercial investment and economic sustainability.
Social Having the community maintain a sense of place and cohesion while showcasing itself to the world is an important aspect of the District’s attractiveness as a visitor destination.
50 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 How we’ll know we’re on track
What we want to know Measure Target Result
The private sector Percentage of 50% Achieved is contributing to marketing campaigns 50% of campaign funding came from the marketing campaigns to be funded from private sector. private sector contributions
There is an increase in Domestic visitor nights Increase by Not achieved tourism increase each year 0.8% per Year-end domestic guest night figures were annum down by 3.0% for the year ending April 2010, mainly due to the recession.
Revenue from Percentage increase in 5% Achieved advertising sales is revenue annually from Advertising sales revenue grew by 6% (winter increasing advertising sales campaign, visitor guide and a new Convention Bureau flyer in Australia).
Revenue from Percentage 5% Not Formally Measured visitors is increasing increase in revenue Following changes in reporting from the per visitor from Ministry of Tourism, Council is exploring the activity operators, option of collecting data from Paymark. accommodation and tourism support
services DEVELOPMENT
Quality destination Percentage of 70% Not Achieved
marketing and respondents to annual 50% of respondents were satisfied with the GROWTH AND ECONOMIC management visitor stakeholder performance of Destination Lake Taupo. survey are satisfied with the performance of Destination Lake Taupo.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 51 Destination Marketing and Management – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income Targeted Rates 928 912 864 Other Income 699 731 762 1,627 1,643 1,626
Operating Expenditure Operating Expenditure 2,324 2,448 2,406 Depreciation and amortisation 60 54 62 Finance costs 25 35 39 2,409 2,537 2,507
Net Cost (surplus) of operations 782 894 881
Funded By: General Rates 874 894 671 Transfers to Reserves - - (4) General Funds (96) - 199 Opening Balance 4 - 15 Total Funding Applied 782 894 881
Capital and Reserve Funding Capital Expenditure Renewals 10 16 65 Increase in Level of Service - 2 - Total Capital Expenditure 10 18 65
Funded by: Transfers (to)/from Reserves 10 18 65 Total Funding Applied 10 18 65
Capital Expenditure
Activity/ Scheme Project Reason for Project YTD Budget Variance Notes Acquisition Status Actual $000 $000 (refer key) $000
Visitor Centres Building, plant Renewals S 10 18 (8) 1 and equipment renewals
Key A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget 1. WIP, minor slippage due to timings
52 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Events
What we do
Council plays a key role in facilitating events. Our reputation as the Events Capital of New Zealand is getting stronger and this has opened up further opportunities to increase market share.
Having hosted major annual sporting events, the focus is turning to international and world events with an arts/culture and festival flavour. These events are often suited to filling the shoulder season. Riverside Park amphitheatre is proving to be an excellent venue for vibrant summer events.
KEY ACTIONS, PROJECTS, AND SERVICES What we planned and delivered
Event facilitation and marketing which included:
• co-ordination of local event organisers to encourage best practice, including sharing and storage of event-related equipment and signage at entrances to Taupo township
• financially assisted media visits to boost exposure of existing eyk events
• provided financial and management support to encourage the establishment of new events
• engaged in co-operative advertising with existing event organisers to boost participation at existing events
• proactively sought to increase international participation and exposure to both new and existing events DEVELOPMENT
• protected and enhanced the Lake Taupo District’s strong reputation for hosting high quality events. GROWTH AND ECONOMIC
The events activity supports community well-being
Economic Events in the District increase economic activity and attract visitors.
Social Events create a vibrant atmosphere in the District and enhance the community’s sense of pride.
Jamis Bicycles Day Night Thriller
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 53 How we’ll know we’re on track
What we want to know Measure Target Result
Major events continue Number of major At least Achieved to be held in Taupo events are retained in 20 major More than sixteen major events took place in District which Taupo District events Taupo including: contribute to the are held Mizuno Half Marathon, Jamis Bicycles Day Night economic and cultural annually, Thriller, Wattyl Lake Taupo Cycle Challenge, wellbeing of the including Pearl Izumi Half Ironman, 7 concerts, rodeo, District three in horse races, Body Art Festival, King of the Turangi and Ring, New Zealand Long Course Swimming three in Championships, Mizuno Off-road Half Marathon, Mangakino Brooks Off-road Half Marathon, Crank Mountain Biking Festival, Fur and Feathers and Wild Food Show (part of Sika Show).
Three events were held in Mangakino: Kiwiburn, which has re-signed for a further three years; MIA (missing in action) Wake Skate (wake boarding); Lakeland Powerboats
Three events were associated with Turangi: Trans- Taupo Paddle;‘Thunder Cats’ racing (surf lifesaving Inflatable Rescue Boats);100km Jet Ski Race
Taupo retains national All events receive Achieve Achieved and international positive media Taupo events received positive media reputations as a coverage locally and coverage. No incidents occurred to detract successful events nationally from our reputation. This has been enhanced destination by our event manager’s appointment to the International Festivals and Events Association (IFEA).
One of the many concerts at Riverside Park
54 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Events – Financial results
Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Targeted Rates 203 199 189
Other Income 122 - 45
325 199 234
Operating Expenditure
Operating Expenditure 485 284 290
Depreciation and amortisation 25 13 14
Finance costs - 9 -
510 306 304
DEVELOPMENT Net Cost (surplus) of operations 185 107 70
GROWTH AND ECONOMIC Funded By:
General Rates 105 107 8
General Funds 80 - 62
Total Funding Applied 185 107 70
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 55 STRONG, SAFE AND HEALTHY COMMUNITIES
What we do
Effective and efficient infrastructure and services such as roads, recreation facilities and water supplies are essential to Council’s role in building strong communities. Infrastructure and services must meet identified needs and be provided at levels that are acceptable to the community.
Strong communities help themselves and Council has a role in supporting community initiatives, encouraging creativity and honouring community heritage. Council also has a role in monitoring and enforcing agreed rules and policies to ensure that community values and individual rights are respected.
Council activities that helped achieve our goals were:
• Community Facilities
• Venues
• Heritage, Culture and Public Art
• Parks and Reserves
• Emergency Management
• Regulatory Services
• Transportation
• Water Supply
East Taupo Arterial opening celebrations — Public Open Day
56 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Community Facilities
What we do
Council provided services and facilities to meet community needs, including:
• Taupo, Turangi and Mangakino public libraries
• A mobile library that lends books and other items
• Rental accommodation for the elderly
• Community halls for local use
• Public cemeteries and associated burial and cemetery maintenance services
• Free and paid-entry public conveniences.
KEY ACTIONS, PROJECTS, AND SERVICES
What we planned and delivered
• Upgraded Huka Lawn area of Taupo Cemetery
• Developed plans for the future of the Senior Citizens’ Hall in Turangi
• Maintained our extensive range of community facilities to satisfy the residents and visitors who use them.
What we planned but did not complete
• Implement a District-wide library management system This work has been deferred until 2010/11 in order to link with the Public Library Shared System Project, Kōtu.
The Community Facilities activity impacts on community well-being
Social Access to community facilities such as libraries and community halls enables participation in community life and enhances social cohesion.
Economic Community facilities attract residents and visitors to the District, resulting in economic benefits including a skilled workforce. COMMUNITIES STRONG, SAFE AND HEALTHY
Turangi Senior Citizens Hall
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 57 How we’ll know we’re on track
What we want to know Measure Target Result
Community halls are Percentage of 75% Not achieved maintained for year- community satisfaction 34% of the community were satisfied with round use with community halls community halls, and 78% of people who used community halls were satisfied.
Inspections of halls Repairs Achieved (undertaken every six undertaken Council conducts monthly inspections. Building months) as required warrants of fitness carried out by 1 November by each year. Repairs undertaken as they arise. inspection
Housing for the elderly Percentage of 95% Achieved is well utilised occupancy of occupancy 96% occupancy of pensioner housing was pensioner housing achieved.
Housing for the elderly Compliance with Achieve Achieved is provided to an the Property Quality acceptable quality Standards
Customers are Customers are 80% Achieved satisfied with the satisfied with library 97% of customers were satisfied with library library book and non- services services. book collections
The range and quality Number of items Increase by Not achieved of books and materials checked out 5% per year 2.7% decrease in number of items checked within the library out. collections meet most demands However, Taupo Library recorded a 9.11% increase in foot traffic and a 38.35% increase in the number of hours the public spent on the internet.
Mangakino Library recorded a 9% increase in foot traffic and a 21% increase in the number of people using the public computers.
Library membership Increase by Not achieved per head of usually 2% per year The library has culled inactive memberships resident population (unused for more than 5 years), which has resulted in a net decline in library members. Total membership is 24,910 or 74% of the population.
The burial Burial and cremation Achieve Achieved administration service plots are available in is available and Taupo, Mangakino and cemetery maintenance Turangi is carried out Complaints received Complaints Achieved about the appearance responded of the cemeteries to within two working days
Our public Percentage of 75% Not achieved conveniences are clean community satisfied 64% of the community were satisfied with the and accessible with accessibility and public conveniences, and 78% of people who cleanliness of public used public conveniences were satisfied. conveniences
58 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Community Facilities - Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Other Income 492 561 526
492 561 526
Operating Expenditure
Operating Expenditure 2,528 2,578 2,774
Depreciation and amortisation 937 911 894
Finance costs 189 352 252
3,654 3,841 3,920
Net Cost (surplus) of operations 3,162 3,280 3,394
Funded By: General Rates 3,207 3,280 2,608
General Funds (45) - 786
Total Funding Applied 3,162 3,280 3,394
Capital and Reserve Funding Capital Expenditure
Renewals 617 717 464
Increase in Level of Service 47 66 6
Total Capital Expenditure 664 783 470 COMMUNITIES
Funded by:
Loans Raised 348 416 - STRONG, SAFE AND HEALTHY
Transfers (to)/from Reserves 316 367 470
Total Funding Applied 664 783 470
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 59 Capital Expenditure
Activity/Scheme Project Reason for Project YTD Budget Variance Notes Acquisition Status Actual $000 $000 (refer key) $000
Pensioner Housing Renewals Renewals A 124 107 17 1
Libraries Taupo, Turangi and Renewals A 366 387 (21) 2 Mangakino new books and renewals
Public Conveniences Building and Plant Renewals X 53 183 (130) 3 renewals
Cemeteries Huka Lawn upgrade Level of X - 10 (10) 4 Service/ Renewals
Community Halls Renewals Renewals A 121 96 25 1
Total Community Facilities 664 783 (119)
Key A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget
1. Level of renewal required higher than budgeted 2. Completed under budget 3. WIP, resource consent and design issue delays 4. Saving, on revision works not required in 2009/10
Library website launch at Taupo Library
60 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Venues
What we do
Council venues offer our community many programmes and activities for enjoyment, fitness, and health. We encourage participation and continually strive to develop a wide range of choices, both in response to requests from the community, and by joining central government initiatives to engage the community in healthy activities. This year Council implemented its Venues Strategy in order to provide a seamless range of services to customers.
Council venues include:
• AC Baths
• Taupo Events Centre
• Great Lake Centre
• sportsgrounds
• Genesis Energy Turangi Aquatic Centre
• Mangakino Pool and Gym
KEY ACTIONS, PROJECTS, AND SERVICES
What we planned and delivered • Adopted and began to implement a venues strategy that supports a stronger customer focus, an strengthens the District’s ability to develop and provide a range of events, for residents, and for visitors.
• Reclaimed Learn To Swim business and operated in-house at the AC Baths
• Installed UV filtration system for the Learn to Swim pool at the AC Baths
What else we did • Rugby World Cup 2011 preparations. Taupo District has been awarded three international teams (South Africa, Ireland, and Wales) to host in 2011.
What we planned, but did not complete • Design of the AC Baths refurbishment The project has begun and will continue through 2010–2012.
• Feasibility study for McLaren Park and Turangi Park COMMUNITIES Work has been deferred until the Turangi and Southern Lakeshore Settlements Structure Plan is complete. STRONG, SAFE AND HEALTHY The Venues activity contributes to community well-being Social Providing a range of recreation venues promotes healthy lifestyle choices and participation.
Economic Seamless management across our venues helps the District to attract a wide range of events.
Cultural Staff at Council venues have improved their understanding of cultural diversity, which strengthens the quality of the services they offer. The Great Lake Centre offers residents, ratepayers, and visitors a wide range of activities to enjoy.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 61 How we’ll know we’re on track
What we want to know Measure Target Result Our venues are open Number of days open 364 days/ Substantially Achieved and accessible to the year, AC Baths Achieved community to use and excluding TEC Achieved enjoy the GLC Substantially achieved Mangakino Pool closed for electrical Pool which maintenance (1 day) is open on GETAC Substantially Achieved a seasonal Pool closed for 11 days basis (maintenance), and 1 day (could not meet health and safety staffing levels). Our venues are safe Building warrant of Achieve Achieved and clean fitness All venues’ warrants of fitness were issued on 1 November 2009. Our venues are safe Number of complaints Complaints Achieved in part and clean received about the are Seven out of eight complaints were responded to cleanliness of venues responded within 24 hours. to within 24 hours Our venues are safe Pool Safe accreditation Achieve Achieved in part and clean (for the AC Baths AC Baths Achieved and Genesis Energy Reassessment passed March Turangi Aquatic 2010 Centre) GETAC On track Accreditation takes 2 years to achieve, and began in 2009. Council’s pools will be To meet Achieved managed using NZS 95% of all 99% of guideline standards were met. 5826 guidelines guideline standards The District has a Qualmark assessment. Retain Achieved venue with a national This includes minimum Great Lake Centre retained its four star rating in rating (Great Lake cleanliness, overall of four star October 2009. Centre) appearance, service, rating hospitality and general business practices
Council provides good Percentage of 75% Not Achieved quality venues and a community satisfied 67% of the community were satisfied with the AC range of services with the venues and Baths, and 89% of users were satisfied. the services offered 68% of the community were satisfied with Taupo Events Centre, and 92% of users were satisfied. 74% of the community were satisfied with the Great Lake Centre, and 94% of users were satisfied. 20% of the community were satisfied with GETAC, and 74% of users were satisfied. 9% of the community were satisfied with Mangakino Pool, and 86% of users were satisfied. Good quality, Percentage of 75% Not achieved accessible community 65% of the community were satisfied with sportsgrounds are satisfied with their sportsgrounds, and 90% of users were satisfied. available year round sportsgrounds in the District for a Annual review and Achieve Achieved variety of activities implementation of Annual review was carried out, and we are recommendations from currently installing irrigation and implementing the New Zealand Turf other recommendations from the New Zealand Institute Turf Institute.
62 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Venues – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income Other Income 2,485 2,328 2,029 2,485 2,328 2,029 Operating Expenditure Operating Expenditure 5,400 4,894 5,023 Depreciation and amortisation 1,436 1,196 1,458 Finance costs 458 646 585 7,294 6,736 7,066
Net Cost (surplus) of operations 4,809 4,408 5,037
Funded By: General Rates 4,310 4,408 3,750 Transfers to Reserves (68) - (4) General Funds 567 - 1,291 Total Funding Applied 4,809 4,408 5,037
Capital and Reserve Funding Capital Expenditure Renewals 839 1,012 628 Increase in Level of Service 871 1,183 294 Total Capital Expenditure 1,710 2,195 922
Funded by: Loans Raised 1,216 1,587 177 Transfers (to)/from Reserves 494 608 702 General Funds - - 43
Total Funding Applied 1,710 2,195 922 COMMUNITIES STRONG, SAFE AND HEALTHY
Swim for Life Programme — newly qualified Swim Instructors from the Turangi community
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 63 Capital Expenditure
Activity/Scheme Project Reason for Project YTD Budget Variance Notes Acquisition Status Actual $000 $000 (refer $000 key)
AC Baths Refurbishment, Level of X 572 787 (215) 1 building and Service equipment renewals Taupo Events Centre Building and Renewals M 200 400 (200) 2 equipment renewals Turangi Genesis Building renewals Renewals A 13 16 (3) Energy Aquatic Centre
Owen Delany Park Irrigation Level of A 163 117 46 3 Service Owen Delany Park Redevelopment and Level of A 203 205 (2) improvements Service Owen Delany Park Building and Plant Renewals X 244 277 (33) 4 renewals Hickling Park Redevelopment Level of A 14 12 2 Service Crown Park Redevelopment Level of A 43 40 3 Service Sports grounds TK/MP Bore renewal and Renewals A 31 20 11 5 vehicle replacement Sports grounds TT Renewals and reseals Renewals A 21 20 1 Gymnasium TT Building renewals Renewals X 2 24 (22) 6 Great Lake Centre Building renewals, Level of M 178 250 (72) 2 additions and vehicle Service/ replacement Renewals Mangakino Sports Hall Building and Renewals A 26 27 (1) 7 & pool equipment renewals
Total Venues 1,710 2,195 (485)
Key A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget
1. WIP, concept design and architect appointment underway 2. Council approved the Venues Strategy in November 2009 resulting in changes to the management of Taupo Venues facilities. Implementation of the Strategy commenced in the first part of 2010 with completion due 30 June 2010. Various capital projects were put on hold during this implementation period and reviewed to ensure there was an alignment with the new strategy. 3. Scope of works increased due to entire control system upgrade 4. WIP, due for completion September 2010 5. Level of renewal required higher than budgeted 6. Building renewal saving, not required in 2009/10 7. Level of building renewal higher than budgeted. WIP, gym equipment ordered awaiting delivery
64 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Heritage, Culture and Public Art
What we do
Council’s arts and cultural services reflect our communities and make the District an exciting place. Council provides:
• Museum and art gallery
• Art co-ordination
• Public spaces for artistic endeavours such as Art in the Park.
We are working with other organisations such as Active Arts, Turangi Artworks and the Taupo Sculpture Trust to strengthen the District’s identity, character and energy through the use of public art in public places.
KEY ACTIONS, PROJECTS, AND SERVICES
What we planned and delivered
• Continued improvements to the museum and art gallery’s Tuwharetoa Gallery
• Catalogued and removed artefacts from museum store cupboard. We re-housed them to best practice standards at Council archives
• Completed library sculpture project – Cloak of Tia sculpture installed
What else we did • Made significant progress with cataloguing museum artefacts, including scanning the museum photo collection
What we planned, but did not complete • Review Lake Taupo District Cultural Development Strategy The strategy is still current, but may be reviewed following adoption of the final Commercial and Industrial Structure Plan and related plans.
The Heritage, Culture and Public Art activity supports community well-being
Social and Cultural The District’s community demonstrates a sense of place and evident pride in its local heritage, cultural background and art. COMMUNITIES
Economic Attractions such as the Ora Garden add vibrancy to the District and act as
further incentives for visitors to choose the District as a holiday destination. STRONG, SAFE AND HEALTHY
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 65 How we’ll know we’re on track
What we want to know Measure Target Result
We have a Percentage of 70% Achieved museum which customers who are 93% of customers were satisfied with the offers educational satisfied with the Taupo Museum. and recreational museum and its opportunities for all services
Council and its Number of exhibitions, No fewer Achieved partners are fostering performances, other than ten 32 separate creative events were held artistic expression, art, creative events exhibitions, including 11 exhibitions, 7 mini exhibitions, music, dancing, public undertaken by Council performances, 10 lectures, and 3 workshops. A wide range performances and and its partners each and creative of other functions were also held at the exhibitions year events. museum.
The Ora Garden is a Retain garden of Achieve Achieved garden of national national significance The Ora Garden achieved its garden of significance status through an national significance status on 1 July 2008. annual evaluation This assessment is carried out every three years by the New Zealand Gardens Trust. The garden is due to be reassessed in 2010/11.
Cloak of Tia
66 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Heritage, Culture and Public Art – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Other Income 67 87 108
67 87 108
Operating Expenditure
Operating Expenditure 677 701 697
Depreciation and amortisation 78 71 69
Finance costs 17 29 22 772 801 788
Net Cost (surplus) of operations 705 714 680
Funded By:
General Rates 698 714 455
General Funds 7 - 225
Total Funding Applied 705 714 680
Capital and Reserve Funding Capital Expenditure
Renewals 37 34 27
Increase in Level of Service 108 136 59
Total Capital Expenditure 145 170 86
COMMUNITIES Funded by:
Loans Raised 72 100 42 STRONG, SAFE AND HEALTHY
Transfers (to)/from Reserves 73 70 25
General Funds - - 19
Total Funding Applied 145 170 86
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 67 Capital Expenditure
Activity/ Project Reason for Project YTD Budget Variance Notes Scheme Acquisition Status (refer Actual $000 $000 key) $000
Museum Public Art Level of A 72 100 (28) 1 Service/ Renewals
Museum Building and Renewals A 73 70 3 2 equipment renewals
Total Heritage, Culture and Public Art 145 170 (25)
Key A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget
1. Scope of artwork changed, full budget not required 2. Level of renewal required higher than budgeted
Taupo Museum, Tuwharetoa Gallery
68 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Parks and Reserves
What we do
Parks and reserves protect and enhance the natural environment, and offers leisure and recreation opportunities for residents and visitors. We have more than 900 hectares of Council parks and open spaces in the District, including sportsfields, tracks, car parks, reserves and streetscapes.
Our scenic reserves protect and preserve those areas in perpetuity because of their beauty, for the benefit of the public. Our reserve management plans (in line with the Reserves Act 1977) guide the use of reserves and include conservation efforts. Council’s amenity planting adds character to our built areas and complements the natural environment.
KEY ACTIONS, PROJECTS, AND SERVICES
What we planned and delivered
• Implemented Tapuaeharuru Bay Lakeshore Reserve Management Plan (year 1 of 3-year project)
• Developed lakeshore reserves in Taupo
• Continued the redevelopment of Tongariro Domain (year 3 of 4-year project)
• Reviewed Owen Delany Park Reserve Management Plan, which has has now been included in the Sportsground Management Plan.
• Developed Taupo Sportsground Management Plan
• Constructed a boat trailer park and additional car park at Whangaroa Reserve
• Improved paving at Kinloch Reserve lakefront
• Carried out landscape development of Mangakino reserves
• Constructed a walkway from Whakamaru Village to junction shops
• Installed play equipment at Motuoapa Park
• Developed and provided play equipment for Omori, Pukawa and Kuratau parks
• Constructed security fence at Taupo BMX track (Crown Park)
What we planned, but did not complete
• Review of Mangakino and Whakamaru Reserve Management Plans Staff have reprioritised the management plan reviews and have scheduled them for 2011/12.
• Review of Motutere Reserve Management Plan A preliminary review showed that this plan was still current, and no further work was COMMUNITIES necessary.
• Redevelopment of Turangi Airpark (if land is acquired) The Crown declined to sell the necessary land, so the activity cannot proceed. STRONG, SAFE AND HEALTHY
• Development of a Reserves Strategy Development of the strategy is well under way and completion is scheduled for 2010/11.
The Parks and Reserves activity supports community well-being
Environmental Gully reserves provide stormwater filtration, which improves water run-off to the lake.
Social Open spaces provide a means to participate in physical activity and recreation. Personal and community health benefits are associated with the use of open space.
Economic Parks and reserves are important recreation attractions for residents and visitors to the District.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 69 How we’ll know we’re on track Short term
What we want to know Measure Target Result
Well-maintained, Percentage of 75% Achieved attractive parks and community who are 87% of the community were satisfied with reserves all year round satisfied with the parks and reserves, and 91% of users were quality of parks and satisfied. reserves
Number of complaints 100% of Achieved in part received about service 94% of service requests were acknowledged Council’s parks and requests are within five working days. We are improving reserves acknowledged reporting functions in the service request within five system. working days
Taupo District gardens Percentage of 75% Achieved enhance reserves and community who are 93% of the community were satisfied with town centres satisfied with the Council-maintained gardens. gardens
Retain regional garden Achieved Achieved of significance status The evaluation for the regional garden of (for Tongariro South significance status for Tongariro South Domain Domain gardens) gardens was conducted in January 2010. through an annual evaluation
Our playgrounds in Percentage of Council 75% Achieved parks and reserves are playgrounds that meet All 140 pieces of playground equipment in safe and enjoyed by national standards the Taupo area were inspected in accordance the community with the New Zealand Standard. Repairs were carried out immediately or the equipment was closed if necessary.
Percentage of the 85% Not achieved community who are 67% of the community were satisfied with satisfied with Council Council playgrounds and 82% of users were playgrounds. satisfied.
Long term
What we want to know Measure Target Result
Our community has Hectares of land 10ha/1000 Achieved sufficient open space people An area of 13.4 ha per 1000 people is provided to the community for parks and reserves.
70 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Parks and Reserves – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Targeted Rates - - -
Development/Financial Contributions 374 1,378 497
Other Income 361 264 275
735 1,642 772
Operating Expenditure
Operating Expenditure 3,418 3,029 3,221
Depreciation and amortisation 832 585 754
Finance costs 193 366 210
4,443 3,980 4,185
Net Cost (surplus) of operations 3,708 2,338 3,413
Funded By:
General Rates 3,608 3,690 2,397
Depreciation not Funded 60 - -
Transfers to Reserves (406) (1,352) (497)
General Funds 446 - 1,513
Total Funding Applied 3,708 2,338 3,413
Capital and Reserve Funding
Capital Expenditure COMMUNITIES
Renewals 949 1,336 316
Growth 474 1,110 424 STRONG, SAFE AND HEALTHY Increase in Level of Service 231 265 568
Total Capital Expenditure 1,654 2,711 1,308
Funded by:
Loans Raised 1,164 1,670 356
Transfers (to)/from Reserves 454 1,041 665
Development Contributions - - 189
Subsidies 36 - -
General Funds - - 98
Total Funding Applied 1,654 2,711 1,308
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 71 Capital Expenditure
Activity/Scheme Project Reason for Project YTD Budget Variance Notes Acquisition Status Actual $000 $000 (refer $000 key)
Parks & Reserves TK/MP Lakefront Level of S 324 357 (33) 1 development Service/ Renewals Parks & Reserves TK/MP Tongariro Domain Level of A 303 290 13 2 redevelopment Service/ Renewals Parks & Reserves TK/MP Renewals and Level of M 756 1,050 (294) 3 improvements Service/ Renewals Parks & Reserves TK/MP Development Managing X - 560 (560) 4 Contributions Growth Growth projects Parks & Reserves TT Renewals and Level of X 271 454 (183) 5 improvements Service/ Renewals
Total Parks and Reserves 1,654 2,711 (1,057)
Key A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget 1. WIP, minor slippage due to timings. Due to be completed under budget 2. Level of renewal required higher than budgeted 3. WIP, slippage due to timings. Works due for completion September 2010 4. Suitable land/project not yet identified 5. WIP, minor slippage due to delayed delivery/installation
New playground equipment at the Tongariro South Domain
72 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Emergency Management
What we do
Council is responsible for emergency management and rural fire services in the District, and maintenance of a volunteer response unit for general search and rescue support. We develop, implement and monitor District-wide emergency management plans and promote community preparedness for emergencies. Council has legislative obligations to mitigate hazards, to liaise and assist in response to emergencies, disasters, and incidents that threaten life, and to assist in restoring the quality of life after such incidents. This involves the maintenance of an Emergency Operating Centre (EOC) and ensuring civil defence capability from these headquarters.
Council is also responsible for issuing fire permits and associated fire call management.ural R fire services were delivered by volunteers at Omori (under a formal agreement) and Taupo, and by resident volunteers at the lakeside settlements.
KEY ACTIONS, PROJECTS, AND SERVICES Ongoing actions
• Ongoing annual Co-ordinated Incident Management System; Urban Search and Rescue; ORIGEN (a software package); and Emergency Operation Centre training programmes • Waihi Hipaua Monitoring Programme in conjunction with Environment Waikato • Waihi Hipaua Thermal Imaging Project in conjunction with Environment Waikato • Participation in one regional/national exercise • Emergency management plans reviewed and updated as required • Rural Fire Plan adopted, rural fire parties operational and agreement with New Zealand Fire Service was reviewed and maintained.
What we planned and delivered
• Maintained Emergency Operation Centre Headquarters for Southern Emergency Operating Area.
What we planned, but did not complete
• Review of Hazard plans Hazard plans are reviewed in conjunction with the Waikato Civil Defence Emergency Management Group 2 GP Plan, which has been deferred for completion in 2010/11. • Urban Search and Rescue accreditation
The national criteria and accreditation systems are changing and Council plans to meet the new COMMUNITIES accreditation criteria in 2010/11.
The Emergency Management activity supports community well-being STRONG, SAFE AND HEALTHY
Social and Economic A community that is well prepared for emergency events is more resilient and will return to social and economic activities more quickly.
State of Emergency October 2009 — Napier Taupo Highway
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 73 States of Emergency
A State of Emergency was declared at Waihi on 26 June 2009 after a major land slide, and was not lifted until 2 July 2009 when GNS Science reported that there were no significant new signs of cracking or movement in the Hipaua thermal area above Waihi village.
The Minister of Civil Defence, John Carter said, “I am very proud of the Civil Defence team and the way they handled the situation”.
Another State of Emergency was declared on 5 October 2009 on the Napier Taupo Highway due to heavy snow. More than 80 people were rescued and ferried to the Rangitaiki Tavern, where they were bussed to a welfare centre in Taupo, and a further 300 passengers were transported back to Napier.
Big thanks to everyone involved including emergency services, the New Zealand Army, Opus, the Taupo 4-Wheel Drive Club and three marae around Taupo who looked after the stranded travellers.
How we’ll know we’re on track
What we want to know Measure Target Result
Community feels that Percentage of 80% Not Achieved they are well educated community that feels 59% of the community felt well educated and and prepared for well educated and prepared for potential emergencies. potential emergencies prepared for potential emergencies
Council staff are At least two Achieve Achieved prepared and trained headquarters Exercise Liam (a storm exercise) was carried for emergencies exercises run per out in August. year, and weekly communications A ‘State of Emergency’ was declared on two checks conducted occasions - the first at Waihi 26/6/09–2/7/09 due to landslide and the second on 5 October 2009 on the Napier Taupo Highway due to heavy snow.
Weekly communications checks were conducted.
Urban Search and Accreditation of USAR Achieve Not applicable Rescue (USAR) meets team maintained Accreditation with USAR is now under Fire national requirements Service control and the national criteria and accreditation systems are changing. Council will provide a response team in future, and planning is in place to meet accreditation in 2010/11.
Rural communities and Rural Fire Plan Achieve Achieved property are safe in adopted annually Rural Fire Plan adopted October 2009. the event of a rural fire
Rural fire volunteers Rural fire parties meet Achieve Achieved are trained and National Rural Fire Council was audited by the National Rural qualified for responding Authority (NRFA) unit Fire Authority in November 2008 and met the to rural fire standards standards.
74 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Emergency Management – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income Other Income 154 14 50 154 14 50
Operating Expenditure Operating Expenditure 693 625 534 Depreciation and amortisation 39 19 33 Finance costs - 2 - 732 646 567
Net Cost (surplus) of operations 578 632 517
Funded By:
General Rates 618 632 406 Transfers to Reserves - - (18) General Funds (40) - 129 Total Funding Applied 578 632 517
Capital and Reserve Funding Capital Expenditure Renewals - 14 18 Increase in Level of Service - 5 - Total Capital Expenditure - 19 18
Funded by: Transfers (to)/from Reserves - 19 18 Total Funding Applied - 19 18 COMMUNITIES Capital Expenditure
Activity/ Project Reason for Project YTD Budget Variance Notes
Scheme Acquisition Status Actual $000 $000 STRONG, SAFE AND HEALTHY (refer key) $000
Emergency Vehicle Renewals X - 19 (19) 1 Management replacement and RT equipment
Key A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget 1. Renewal saving, not required in 2009/10
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 75 Regulatory Services
What we do
Council implements laws and regulations from central government such as the Resource Management Act 1991, and Council by-laws. Council undertakes these activities to ensure that people living in or visiting the Taupo District feel safe and are able to enjoy what the District has to offer.
Our activities include: • animal control and impounding • building consent authority and building control • environmental health licensing and compliance monitoring • parking control • resource, land use and subdivision consenting and compliance.
KEY ACTIONS, PROJECTS, AND SERVICES
Ongoing actions
• Processing of resource consent applications • Processing of building consent applications • Registration of dogs • Review of by-laws • Monitoring of resource consents • Responding to complaints • Parking control • Processing of liquor licensing applications • Inspecting licensed premises (liquor) • Processing health licenses • Inspecting food premises and auditing food safety plans
What we planned and delivered
• Obtained accreditation for environmental health officers from New Zealand Food Safety Authority • Underwent international accreditation NZ reassessment • Achieved Stage II Building Consent Authority accreditation • Implemented Metereye vehicle detection system within the CBD • Constructed new Dog Pound and assisted with relocation of SPCA Taupo
What we planned, but did not complete
• New Food Safety requirements and upgrade of office systems to comply with ISO 17020 (quality assurance for authorities performing inspection) These projects have been delayed because Parliament has not passed proposed legislation
The Regulatory Services activity affects community well-being
Social Regulatory services help to ensure the safety and good health of the community.
Economic Regulatory services support long-term economic well-being.
Environmental Processing resource consent applications in accordance with the requirements of the Resource Management Act 1991 provides certainty to the community while protecting the environment for future generations.
76 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 How we’ll know we’re on track
What we want to know Measure Target Result
Resource consents All resource consents Achieve Substantially achieved are processed in processed within 99% of resource consents (232 of 234) were accordance with the statutory time frames processed within statutory time frames. Resource Management Act 1991
Known dogs are Percentage of known 95% Achieved registered dogs registered 98% of known dogs were registered (5996 of 6143).
Adequate parking is Parking patrols Achieve Achieved available in the Taupo undertaken Mon- CBD Sat, excluding public holidays
Conditions of land use Monitoring and Achieve Achieved. consents are complied enforcement of land 501 inspections were carried out. 163 were with use consent conditions compliant. 286 consents will also be subject to future monitoring. Four abatement notices were issued and ten warnings were given.
Food premises are Percentage of 90% Achieved registered and safe registered premises 93% of registered premises were relicensed relicensed within two within two months of beginning of the licensing months of beginning of year. each licensing year
Number of complaints Respond to Achieved in part received about food complaints Of 38 complaints received, 35 (92%) were premises within 24 responded to within 24 hours. Two of the other hours three complaints were received on a Friday afternoon and were not responded to until Monday.
Council performs the BCA accreditation Achieve Achieved functions of a Building maintained Consent Authority (BCA) Building consents 100% Achieved are processed within 100% of building consents were processed statutory time frames within statutory time frames (1060 of 1062). COMMUNITIES STRONG, SAFE AND HEALTHY
Meter Eye vehicle detection system installed in Taupo’s central business district
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 77 What we want to know Measure Target Result
District rules are Percentage of An initial response Achieved complied with complaints responded to at least 98% 100% of complaints were responded to (this includes all to within 24 hours of complaints within 24 hours. regulatory complaints (excluding noise - e.g. animal control, complaints) within building complaints, 24 hours environmental health nuisances, noise Statutory time frames Noise complaints Achieved complaints, any are met regarding are responded to 100% of noise complaints were infrastructure related enforcement immediately during responded to immediately during complaints, by-laws) working hours. working hours. Outside of working Achieved hours noise All noise complaints that were received complaints are after hours were responded to as soon responded to as as possible in accordance with the soon as possible in contract. accordance with the contract.
Prosecutions Achieved and enforcement No prosecutions were carried undertaken as out. Enforcement action has been required. undertaken as required. No overdue prosecutions lost through statute of limitations time frames.
New Dog Pound and SPCA building
78 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Regulatory Services – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Development/Financial Contributions (450) - 450
Other Income 2,105 2,820 2,430
1,655 2,820 2,880
Operating Expenditure
Operating Expenditure 4,879 5,140 6,083
Depreciation and amortisation 87 72 55
Finance costs 43 18 6
5,009 5,230 6,144
Net Cost (surplus) of operations 3,354 2,410 3,264
Funded By:
General Rates 2,356 2,410 2,719
Transfers to Reserves 450 - (450)
General Funds 548 - 995
Total Funding Applied 3,354 2,410 3,264
Capital and Reserve Funding Capital Expenditure
Renewals 85 97 60
Increase in Level of Service 368 400 - COMMUNITIES
Total Capital Expenditure 453 497 60
STRONG, SAFE AND HEALTHY Funded by:
Loans Raised 368 400 -
Transfers (to)/from Reserves 85 97 60
Total Funding Applied 453 497 60
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 79 Capital Expenditure
Activity/ Scheme Project Reason for Project YTD Budget Variance Notes Acquisition Status Actual $000 $000 (refer $000 key)
Regulatory Services Building, plant Renewals A 85 97 (12) 1 and equipment renewals
Parking Control Metereye Parking Level of S 368 400 (32) 2 Meter System Service
Total Regulatory Services 453 497 (44)
Key
A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget
1. Completed under budget 2. WIP, minor slippage due to timings. Due to be completed under budget
Environmental Health monitoring
80 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Transportation
What we do
Council provides an effective, efficient, sustainable and safe network of roads, footpaths and walkways to enable people to move around easily, which is essential for the economic and social well-being of the community. Increasingly Council encourages walking and cycling and the use of public transport, footpaths and cycle-ways. The District’s land transport assets include:
• 753 km of road
• 272 km of footpaths
• 24 bridges and 31 km of culverts
• 38 km of cycleways
• 97,000 m2 of parking
Council promotes road safety through education, enforcement and engineering endeavours. Our community road safety programme includes education on key factors contributing to crashes such as seat belts, speed, alcohol, keeping left and intersections. Council works collaboratively with the Police to determine areas for targeting enforcement. The transportation asset is maintained to provide optimal signage, lighting and surfacing to provide safe roads.
Construction of the East Taupo Arterial (ETA) is ahead of schedule and will be completed by October 2010. Because of this, Council had to pay its share of money sooner than expected. As a result, Council borrowed more during 2009/10 for construction but will spend less in 2010/11. Once the ETA is opened, Council must maintain the road for one year, in line with standard construction maintenance periods. During that year, the NZ Transport Agency (NZTA) will continue to be responsible for the maintenance of the existing State Highway 1 (SH1). Council will work with NZTA to ensure the existing SH1 is up to standard when it becomes a Council-owned road in 2011.
KEY ACTIONS, PROJECTS, AND SERVICES
What we planned and delivered
• Constructed the East Taupo Arterial and shared path beside the ETA
• Developed bus infrastructure, including bus shelters
• Replaced Tuwharetoa Street footpath (completed in 2008/09) because icy paths in winter were a slip hazard for pedestrians
• Advocated for investigations for two additional stock effluent dumping sites (one in Taupo and one in Turangi) COMMUNITIES
• Regional Land Transport Programme STRONG, SAFE AND HEALTHY What we planned, but did not complete
• Improvements to the Tauhara/Spa Rd intersection The design phase will be completed in 2010/11. This project was scheduled to be carried out over two years. Construction was planned to commence this year but only the design funding has been approved by NZTA.
• Waikato River Pedestrian/Cycleway Bridge (Nukuhau to Riverside Park) Council did not get an NZTA subsidy for the bridge, which delayed commencement. A contract was let for preliminary design work, but Council has decided to defer further work until 2011/12.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 81 • Rural seal extension The budget allocation ($600,000) only enabled Council to seal 4.4 kilometres. Now that Council has sealed all the roads that had comparatively cheaper seal costs, the remaining portions of unsealed road will be more expensive per kilometre.
• Construct State Highway 5 (SH5) footpath stage 1 (Lake Terrace to Kiddle Drive) A contract for the construction of this work was awarded in late May 2010. Project construction was delayed due to weather. This was due to be completed in August 2010.
Transportation activity improves community well-being
Social When a variety of transport routes allow people to move around easily, the opportunity to choose the mode of transport taken (such as walking, cycling) contributes to health outcomes.
Economic By re-routing heavy traffic off the lake front (via the ETA) and increasing amenity values, more visitors are likely to visit the Taupo township.
Environmental Reducing carbon emissions, by increasing use of public transport, walking, and cycling, has a positive impact on the environment.
Taupo’s Biggest Buckle Up — Road Safety campaign at Taupop Primary School
82 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 How we’ll know we’re on track Short term
What we want to know Measure Target Result
Use of public transport Number of bus Increasing Achieved. in Taupo town is passengers Bus passengers increased from 835 in July increasing 2009 to 3167 in June 2010.
Council roads, are safe Number of crashes on Decreasing On track to use Council-owned roads number of There were 137 injury and non-injury crashes crashes in 2009/10, which was a 25% reduction on 2008/09 (181 crashes).
That the road network New Zealand Achieve Achieved is maintained to an Transport Agency appropriate standard audit of Council’s for the level of use road maintenance programme to confirm an acceptable level of maintenance and to identify priorities for future maintenance
The community is Community 75% Achieved satisfied with roading, satisfaction with 89% of community were satisfied with footpaths and roading, footpaths and roading, 76% of community were satisfied cycleways cycleways with footpaths, and 49% of community were satisfied with cycleways. 72% of users of cycleways were satisfied.
Long term
What we want to know Measure Target Result
Council and its Reduction of crash 7% Not achieved partners are working numbers (serious and reduction Crash numbers for serious and fatal: together with the fatal) by 7% from the from 2007 2006/07: 13 community to increase 2007 result over the 2009/10: 13 (April to June still to be confirmed road safety 2009-19 period in by NZTA). conjunction with our road safety partners COMMUNITIES Rural roads sealed 50km of rural road 5km per Not achieved sealed by 2019 annum The total new rural road sealed was 4.4km, which used the rural road seal budget. Te Toke STRONG, SAFE AND HEALTHY Road (3.1km) and 80% of Te Hoi Rd (1.3km) were sealed.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 83 Transportation – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Targeted Rates 166 165 166
Development/Financial Contributions 229 402 487
Vested Assets - 2,500 -
Other Income 52,634 29,478 30,095 53,029 32,545 30,748
Operating Expenditure
Operating Expenditure 6,947 5,555 6,450
Depreciation and amortisation 4,818 4,795 4,744
Finance costs 1,878 3,209 1,322 13,643 13,559 12,516
Net Cost (surplus) of operations (39,386) (18,986) (18,232)
Funded By: General Rates 5,855 5,988 6,325
Depreciation not Funded 1,787 1,787 -
Transfers to Reserves (47,916) (24,261) (27,731)
General Funds 888 - 3,174
Recognition of Vested Assets - (2,500) -
Total Funding Applied (39,386) (18,986) (18,232)
Capital and Reserve Funding Capital Expenditure Renewals 1,882 1,926 1,635
Growth - ETA 61,884 33,000 34,436
Increase in Level of Service 1,157 2,374 1,919
Total Capital Expenditure 64,923 37,300 37,990
Funded by: Loans Raised 13,603 8,884 8,916
Transfers (to)/from Reserves 2,266 2,068 2,847
NZTA subsidies (from reserves) 49,138 26,348 25,670
General Funds (84) - 557
Total Funding Applied 64,923 37,300 37,990
84 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Capital Expenditure
Activity/ Project Reason for Project YTD Budget Variance Notes Scheme Acquisition Status Actual $000 $000 (refer $000 key)
Business Unit Survey equipment Renewals X - 5 (5) 1 and equipment renewal Roading TK/MP Footpath replacement Renewals M 29 125 (96) 2 - Tuwharetoa Street Roading TK/MP Intersection Level of Service X - 13 (13) 3 improvements and realignment Roading TK/MP Mangakino Street Level of Service A 15 13 2 upgrade Roading TK/MP Nukuhau/Riverside Level of Service M 48 274 (226) 4 Park pedestrian bridge Roading TK/MP Tauhara/Spa Road Level of Service M 5 575 (570) 5 intersection Roading TK/MP Shared path beside Managing Growth/ M 680 1,036 (356) 6 ETA/Footpaths, Renewals reseals and renewals Roading TK/MP Seal extension/ Managing Growth/ A 2,030 1,994 36 7 Pavement reseals and Renewals renewals Roading TK/MP East Taupo Arterial Bypass - reduce A 61,884 33,000 28,884 8 (ETA) heavy vehicle traffic in CBD Roading TK/MP Bus infrastructure Level of Service A 24 30 (6) Roading TT Footpaths and Renewals A 122 147 (25) 9 renewals Roading TT Minor safety works Level of Service X - 5 (5) 10 Roading TT Pavement reseals and Renewals A 86 83 3 renewals
Total Transportation 64,923 37,300 27,623 COMMUNITIES
Key STRONG, SAFE AND HEALTHY A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget 1. Renewal saving, not required in 2009/10 2. Budget not required for Tuwharetoa St, funds transferred to SH5 footpath with balance carried forward to 2010/11 enabling works completion 3. Saving, no projects identified for 2009/10 4. Investigation work delayed due to subsidy approved delay by NZTA. Balance carried forward to enable investigation works completion in 2010/11
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 85 5. NZTA approved subsidy for scheme assessment in 2009/10. Application made to NZTA for subsidy for construction in 2010/11. Balance carried forward to meet cost of construction project in 2010/11 6. NZTA funding for footpaths not approved, TDC share of budget transferred to fund SH5 footpath. Balance carried forward to enable works completion in 2010/11 7. Additional earthworks required for seal extension on Tihoi Mill Road 8. Work progress ahead of schedule, adjusted funding approved by NZTA 9. NZTA funding approval for footpaths was reduced 10. Saving, no projects identified for 2009/10
ETA completion ahead of schedule
Construction of the East Taupo Arterial progressed exceptionally well, with more than 1 million cubic metres of soil shifted during the 2009/2010 construction season. This gave the construction contractor, Fulton Hogan, a sound base for constructing the bridge features at Broadlands Rd and Centennial Drive, building extensive gully culverting through the southern section, and constructing the cycling and walking track all the way from south of the Waikato River Bridge down to the airport.
Early completion of the Contact Energy infrastructure crossing points meant that the Te Huka geothermal power station on Centennial Drive could be commissioned within a timeframe that was acceptable to Contact Energy.
Construction of the Crown Rd deviation has also been brought forward.
Completing the ETA will reduce traffic bottlenecks at Broadlands Rd and Centennial Drive,
Council is funding 25% of the ETA cost, and has had to borrow this money earlier than planned because construction has been ahead of schedule.
East Taupo Arterial opening celebrations — Public Open Day
86 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Water Supply
What we do
Council is responsible for the safe and effective treatment, storage and distribution of water for residential, commercial and industrial properties within the main urban centres of Taupo, Turangi and Mangakino as well as other smaller surrounding communities. Council also plans for future demand for potable water for new residential subdivisions.
Council ensures that the water it supplies is safe to drink by treating it in accordance with NZ Drinking Water Standards. Our goal is to safeguard the community and provide treated water in order to maintain public health. Currently the Taupo water supply does not comply with the new drinking water standards because the main intake source is Lake Taupo, which is an unprotected catchment. The new Lake Terrace water treatment plant will ensure that drinking water in Taupo township meets the relevants standards. Council has begun to install continuous monitoring equipment at all the water abstraction sites, to ensure it meets the water quality monitoring requirements of the national drinking water standards.
Environment Waikato (EW) allocates water for domestic and municipal use through resource consents. We developed a Water Demand Management Plan to support all future water-take resource consent applications. To reduce peak water demand in urban areas, Council has a programme of plant and network renewals (to reduce losses from the system) as well as monitoring and public education. On one occasion last year Council restricted the use of water sprinklers in gardens.
Council continues to work with the New Zealand Fire Service to provide adequate water supplies for firefighting in communities where Council already provides a network drinking water supply.
KEY ACTIONS, PROJECTS AND SERVICES
What we planned and delivered
• Adopted the Water Supply Strategy
What else we did
• Completed the Water Demand Management Plan
What we planned, but did not complete
• Upgraded water treatment and reticulation pumping for Taupo by 2012 COMMUNITIES The original programme proved over-optimistic, given the geotechnical environment and stakeholder concerns. Council has a revised programme with completion extended to 2014, which is still consistent with relevant compliance time frames. STRONG, SAFE AND HEALTHY Water supply affects community well-being
Social Clean water is essential for public health.
Environment Reducing negative impacts on the lakes and rivers that supply water to the District.
Cultural Protecting the mauri of Lake Taupo and other sources of water for the District is fundamental to the cultural well-being of Maori within the District.
Economic Investment in the infrastructure required to treat water supports residential and commercial growth.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 87 How we’ll know we’re on track Short term
What we want to know Measure Target Result
We comply with our Compliance with Achieve Achieved resource consent resource consent conditions conditions
No abatement notices Achieve Achieved or enforcement proceedings are made
Our customers have a Response times Achieve Not Achieved. continuous supply of to reported water Eleven (11) incidents of unplanned water water outages (unplanned) outages were experienced in urban supplies to be no greater than: (exceeded the response time measure). Urban supplies: 1 hour to arrive on site, plus Eight (8) incidents of unplanned water 3 hours to complete outages were experienced in various rural repairs. supplies (exceeded the response time Rural supplies: 2 measure). hours to arrive on site, 3 hours to complete repairs.
Our customers are Percentage of 80% Achieved satisfied with the water customers who are 88% of customers were satisfied with the supply service satisfied with the water supply. water supply
To provide adequate To provide water Achieve Achieved water flow and flows/pressure in The residual pressure for urban areas for fire pressure for urban fire compliance with the fighting was above 10 metres. water supply New Zealand Fire Service Firefighting Water Supplies Code of Practice SNZ PAS 4509:2008 in Urban Areas (residual pressure of at least 10 metres)
88 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Long term
What we want to know Measure Target Result
There is a reduction in Average peak demand Average Not achieved average peak demand consumption per peak demand Consumption was 1.48 m3 per HEU and the in urban areas household equivalent consumption trend suggests we are unlikely to meet the unit (HEU) per day per LTCCP target. A revised target of 1.65 m3 per household HEU per day is proposed, which is consistent equivalent with Council’s Water Demand Management unit (HEU) Plan. per day
The Council drinking Compliance with Achieve On Track water system is safe, drinking water Implementation of Public Health Risk reliable and clean standards DWSNZ Management Plan was reviewed by drinking 2005 by: water assessor for Lake Terrace Scheme and the outcome was satisfactory. 2014/15 – Taupo New telemetry equipment that will enable 2015/16 – Kinloch, continuous monitoring of water supplies will Mangakino and Turangi be functioning early in 2010/11.
2016/17 – Motuoapa and Omori
2017/18 – Tirohanga
2018/19 – Atiamuri, Hatepe, River Road, Waihaha, Whakamaru and Whareroa COMMUNITIES STRONG, SAFE AND HEALTHY
Water abstraction site Lake Taupo
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 89 Water Supply – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Targeted Rates 4,483 4,519 4,311
Development/Financial Contributions 160 249 465
Vested Assets - 500 -
Other Income 35 44 17 4,678 5,312 4,793
Operating Expenditure
Operating Expenditure 4,003 2,760 2,849
Depreciation and amortisation 1,775 1,283 1,243
Finance costs 362 534 436
6,140 4,577 4,528
Net Cost (surplus) of operations 1,462 (735) (265)
Funded By:
Transfers to Reserves - (235) (465)
General Funds 1,462 - 200
Recognition of Vested Assets - (500) -
Total Funding Applied 1,462 (735) (265)
Capital and Reserve Funding Capital Expenditure
Renewals 2,316 1,833 1,623
Growth 903 1,000 376
Increase in Level of Service 16 25 -
Total Capital Expenditure 3,235 2,858 1,999
Funded by:
Loans Raised 2,774 2,303 233
Transfers (to)/from Reserves 461 555 1,394
General Funds - - 372
Total Funding Applied 3,235 2,858 1,999
90 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Capital Expenditure
Activity/Scheme Project Reason for Project YTD Budget Variance Notes Acquisition Status Actual $000 $000 (refer $000 key)
All Schemes Renewals Renewals A 1,295 450 845 1
Water Supply Vehicle Renewals A 72 80 (8) replacement
Taupo Water treatment Drinking Water M 1,868 2,328 (460) 2 upgrade Standards 2005/ Level of Service
Total Water Supply 3,235 2,858 377
Key
A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget
1. Acacia Bay Rising Main required urgently to ensure adequate chlorine contact time and water turnover. Level of renewal required higher than budgeted. 2. WIP, slippage due to timings COMMUNITIES STRONG, SAFE AND HEALTHY
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 91 SUSTAINABLE ENVIRONMENT
What we do
Council activities reflect our responsibility to look after the environment for those who come after us.
We provide basic infrastructure services like wastewater, stormwater and solid waste disposal, and these services and the way they are delivered are vital to the long term sustainability of our environment.
We know how much the community values Lake Taupo and the rivers, streams and wetlands of the Lake Taupo catchment. Over recent years, a lot of work has gone into helping to protect the water quality of the lake. This work will remain a high priority for Council to ensure we don‘t lose the gains we have made so far.
However, Council is not alone in managing these issues. Environment Waikato, government agencies such as the Department of Conservation and the Ministry for the Environment, Ngati Tuwharetoa and all our communities have a responsibility to care for the environment in our District. By working together we can develop better, integrated solutions.
Council activities that helped achieve our goals were:
• Lakes and Rivers
• Solid Waste
• Stormwater
• Wastewater
Mt Tihia
92 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Lakes and Rivers
What we do
The management of lakes and river systems within the Taupo District for catchment use and flooding impacts has been a priority for Council for some years. We are working in partnership with central government, Environment Waikato and Ngati Tuwharetoa to protect the lake.
The 2020 Taupo-Nui-a-Tia Action Plan sets out specific actions to be undertaken by key agencies with responsibility for the lake, including Taupo District Council, Environment Waikato, Department of Internal Affairs, Tuwharetoa Maori Trust Board, Department of Conservation (DOC) and the Lakes and Waterways Action Group. Actions for the Taupo District Council cover a range of areas including stormwater, wastewater and recreation.
Council roles on the Protecting Lake Taupo project include:
• membership of the Lake Taupo Protection Project Joint Committee which oversees the Lake Taupo Protection Trust
• provision of technical support to the trust as required
• advocating for the Taupo community on matters relating to lake water quality
• fostering integrated planning for lake water quality amongst all agencies.
Council takes specific actions on activities such as flood and erosion investigations and control work. Ongoing research will be undertaken and additional actions will be determined from the Lake Taupo Erosion and Flood Strategy. This flood and erosion control is in addition to Council’s more traditional ‘works-related’ activities such as stormwater control and wastewater disposal.
KEY ACTIONS, PROJECTS, AND SERVICES
What we planned and delivered
• Adopted the Lake Taupo Erosion and Flood Strategy (in conjunction with Environment Waikato and central government).
Lakes and rivers impact on community well-being
Cultural Protecting the mauri of the lake, rivers and streams is fundamental to the cultural well-being of Maori within the District.
Environmental Council’s membership of the Lake Taupo Protection Project Joint Committee confirms the commitment to protect the quality and health of Lake Taupo through reduced nitrogen inputs.
Economic Actions that protect and enhance the quality of lakes and rivers, important assets for this District, contribute to economic sustainability.
Social Clean lakes and rivers are important for a wide range of recreation and social activities within the District. SUSTAINABLE ENVIRONMENT
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 93 How we’ll know we’re on track Short term
What we want to know Measure Target Result
The community is Percentage of 70% Not achieved satisfied with how community satisfied 50% of the community were satisfied with erosion of public land with Council’s Council’s management of erosion on public land around the shore of management of around Lake Taupo. Nine percent were not very Lake Taupo is managed erosion on public land satisfied. A significant percentage, 41%, were around Lake Taupo unable to comment. Of those who held a view, 85% were satisfied.
The values identified Implementation of Achieve On track for Lake Taupo in the actions assigned to 92% of Council’s 45 actions in the plan were 2020 Taupo-Nui-a-Tia Council in the 2020 achieved, achieved in part, or are ongoing. Action Plan are being Taupo-Nui-a-Tia Action protected Plan For the 8% of actions that have yet to be achieved, Council is waiting for other organisations to take precedent action, or we have prior work to complete.
Monitoring of Achieve Achieved key indicators, Council has updated the State of the District annually, triennially Report. as appropriate (as assigned to Council in the action plan).
Long term
What we want to know Measure Target Result
There is a reduction in Concentrations of Achieve On track nitrogen from Council domestic wastewater, Environment Waikato undertakes near-shore wastewater systems nitrogen or pathogens water quality monitoring every two years at in shallow near- shore selected sites. In 2009/10 measures showed waters of Lake Taupo no increase in nitrogen and pathogen levels. in the vicinity of wastewater treatment Nitrogen discharge levels from Council- and disposal systems operated wastewater treatment plants decreased in 2009/10 by 11% from the benchmark.
Council and its The manageable Achieve On track partners are working nitrogen load to Lake A current reduction of 60 tonnes of together with the Taupo from pastoral nitrogen has already been achieved, which community to reduce land-use activities and is approximately 40% of the Lake Taupo the manageable wastewater reduced Protection Trust’s target. nitrogen load to Lake by 20% by 2080 Taupo
94 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Lake Taupo Protection Trust
Council, Environment Waikato and the Ministry of the Environment have created the Lake Taupo Protection Trust to focus on reducing nitrogen flows into the lake. Already the flow has been reduced by 60 tonnes, which is about 40% of the Trust’s target.
The Trust has been allocated a public fund of $81.5 million until 2018, with about $6 million to spend each year. One of the main things the Trust does is to buy cattle and dairy farms and then sell them with nitrogen restrictions - so they are more attractive to forestry. In 2009/10 the Trust bought four farms Tihoi and is selling them with a restriction of 5 kg nitrogen per hectare. (Variation 5 to the Waikato Regional Plan, sets up the legal basis for allocating nitrogen to farms in the catchment.)
A particular achievement for this year has been agreement to purchase carbon offsets within the Lake Taupo catchment, which emasn that landowners can now set up private agreements to sell carbon offsets from converting pastoral land to forestry to businesses such as energy generators.
The Taupo District Council Satisfaction Survey which was carried out in April/May 2009 found that 85% of residents and non-resident ratepayers were aware that there is concern regarding deteriorating water quality due to excess nitrogen flowing into Lake Taupo.
Lakes & Rivers – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Targeted Rates 1,395 1,400 1,382
Other Income 108 130 134
1,503 1,530 1,516
Operating Expenditure
Operating Expenditure 1,173 1,140 1,290
Depreciation and amortisation 1 3 3
Finance costs 4 6 6
1,178 1,149 1,299
Net Cost (surplus) of operations (325) (381) (217)
Funded By:
General Rates 22 23 6
Transfers to Reserves (364) (404) (347)
General Funds 17 - 124
Total Funding Applied (325) (381) (217) SUSTAINABLE ENVIRONMENT
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 95 Solid Waste
What we do
Council provides a sustainable, safe, and cost-effective solid waste system for the handling of refuse and recyclables. Council is focused on reducing the amount of waste being disposed of to landfill and so provides recycling and reuse opportunities at the five transfer stations in the District as well as at the final disposal point for refuse, the Broadlands oadR Landfill.
Kerbside refuse and recycling collection is provided in the District’s urban areas. Refuse collection is a user pays service and recycling is funded through rates, offering the community an economic incentive to use the recycling service. Litter is collected from street tidy bins on a regular basis and street recycling bins are provided to enable further reduction of waste to landfill.
Council is focussed on minimising the environmental effects of operating a landfill. Green waste is shredded at all facilities to reduce the amount of greenhouse gases and a gas flare will be installed at the landfill to burn off gas as it is generated. Environmental monitoring is undertaken at the Broadlands Road Landfill and at three closed landfills in the District to determine effects from the sites and enable them to be managed appropriately.
KEY ACTIONS, PROJECTS, AND SERVICES
What we planned and delivered
• Installed covered containment for reusable materials at Mangakino, Kinloch and Whareroa refuse transfer station sites
What we planned, but did not complete
• Review of Waste 2010 - the Way Forward (Waste Minimisation Plan) subject to the production of targets and guidelines from the Ministry for the Environment. We compiled a waste assessment but cannot make further progrss until central government releases its updated New Zealand Waste Strategy, which will include guidance for local authorities on waste reduction targets.
Solid Waste activity impacts on community well-being
Social and cultural Community pride is enhanced by clean streets and safe streetscapes.
Environmental Council has adopted best practice at its landfills, reflecting the community’s desire to reduce its environmental impact.
96 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 How we’ll know we’re on track Short term
What we want to know Measure Target Result
Council is protecting Relevant resource Achieve Achieved the environment by consents are current managing solid waste and are not breached in a safe, sustainable manner
The community is The community is 75% Achieved satisfied with refuse satisfied with recycling 78% of the community were satisfied with and recycling services and refuse services recycling and 83% of users were satisfied. 77% provided in the urban of the community were satisfied with landfills area and transfer stations and 91% of users were satisfied.
Our urban areas are Number of complaints Complaints Substantially Achieved free of litter of litter/overflowing are 95% achieved 294 of 310 complaints were rubbish bins responded responded to within 12 hours. to within 12 hours
Long term
What we want to know Measure Target Result
There are maximum Percentage reducing 40% less Not Achieved opportunities to of solid waste to waste than Council has reduced waste to landfill by 32% reduce, reuse and landfill 1999/2000 since 1999/2000. recycle solid waste volumes SUSTAINABLE ENVIRONMENT
Turangi Transfer Station — new recycling facility
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 97 Solid Waste – Financial Results Cost of Service Statements
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Targeted Rates 1,608 1,601 1,533
Other Income 2,240 1,995 1,830
3,848 3,596 3,363
Operating Expenditure
Operating Expenditure 3,781 3,704 3,423
Depreciation and amortisation 348 266 98
Finance costs 175 257 267
4,304 4,227 3,788
Net Cost (surplus) of operations 456 631 425
Funded By:
General Rates 726 743 490
Transfers to Reserves - (112) -
General Funds (270) - (65)
Total Funding Applied 456 631 425
Capital and Reserve Funding Capital Expenditure
Renewals 50 103 36
Increase in Level of Service 80 78 72
Total Capital Expenditure 130 181 108
Funded by:
Loans Raised 16 65 0
Transfers (to)/from Reserves 114 116 108
Total Funding Applied 130 181 108
98 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Capital Expenditure
Activity/Scheme Project Reason for Project YTD Budget Variance Notes Acquisition Status Actual $000 $000 (refer $000 key)
Broadlands Rd Landfill - new stages Level of Service/ A 6 6 - and renewals Renewals
Solid Waste Disposal Transfer Station and Level of Service S 124 175 (51) 1 equipment
Total Solid Waste 130 181 (51)
Key
A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget
1. WIP, equipment ordered awaiting delivery. Due for completion July 2010, will be completed under budget. SUSTAINABLE ENVIRONMENT
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 99 Stormwater
What we do
Having completed its Stormwater Strategy, Council has been looking more closely at the way our communities are designed and developed, to ensure that stormwater is managed using an integrated catchment management approach.
Council’s stormwater system manages surface water run-off from the District’s urban catchments, containing it in piped networks, soak holes, cesspits, detention ponds and natural conveyances such as gullies and reserves, and discharging to ground or through outfalls into receiving water bodies.
Council uses low-impact design principles to develop and manage public and private stormwater systems. Through land-use planning, development standards and land management practices, Council endeavours to protect and maintain the quality of our receiving waters.
KEY ACTIONS, PROJECTS, AND SERVICES
What we planned and delivered
• Developed a stormwater strategy to address future needs
• Carried out facilities and gully planting programme - stormwater mitigation
• Upgraded Omori stormwater system
What else we did
EnviroPods
Council installed 100 EnviroPods into stormwater collection pits under road grates to capture rubbish and leaves, improving stormwater quality and stopping pollutants from going into our lakes and rivers.
The EnviroPods were installed in the central business districts of Turangi and Taupo, and along Lake Terrace. Improving stormwater quality is a focus of Council’s Stormwater Management Plan and our comprehensive stormwater consents.
What we planned, but did not complete
• Taupo industrial area ancillary works - stage 1a Works in the industrial area are on hold until the feasibility of disposal options has been determined.
The stormwater activity affects community well-being
Environmental Managing water run-off and protecting the receiving waters decreases the likelihood of contaminants entering into the natural environment.
Economic and Social The community is less likely to experience severe disruption to both social and economic activity in the event of a significant storm when stormwater flooding risk is reduced and run-off is managed.
Cultural Reducing the impact of stormwater inflow into the lake and protecting the mauri of the lake, rivers and streams is fundamental to the cultural well- being of Maori in the District.
100 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 How we’ll know we’re on track
What we want to know Measure Target Result
The community Percentage of the 80% Not achieved is satisfied that community satisfied 74% of the community were satisfied stormwater is that stormwater with stormwater and land drainage adequately managed in is adequately network in protecting properties urban areas managed in urban from floods, and 78% of users were areas satisfied.
People and property are Residential buildings Decreasing Achieved protected from flood (habitable parts of No recorded incidents. damage residential dwellings only) are flooded during the year from stormwater originating from the public domain such as parks, road reserves
Stormwater discharges Compliance with Achieve Achieved are compliant with resource consent Environment Waikato provides a resource conditions conditions compliance report two to three months after the reporting period. No abatement notices or breaches have occurred during the period and therefore it is anticipated that Environment Waikato will confirm compliance by November 2010.
No abatement Achieve Achieved notices or No notices issued. enforcement proceedings are made SUSTAINABLE ENVIRONMENT
Chad Street gulley planting
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 101 Stormwater – Financial Results Cost of Service Statement 2010 2010 2009 Actual Budget Actual $000 $000 $000 Operating Income Vested Assets - 400 - Other Income 1 - - 1 400 -
Operating Expenditure Operating Expenditure 795 851 665 Depreciation and amortisation 783 563 599 Finance costs 38 86 43 1,616 1,500 1,307
Net Cost (surplus) of operations 1,615 1,100 1,307
Funded By: General Rates 1,467 1,500 1,136 General Funds 148 - 171 Recognition of Vested Assets - (400) - Total Funding Applied 1,615 1,100 1,307
Capital and Reserve Funding Capital Expenditure Growth - - 100 Increase in Level of Service 226 209 280
Total Capital Expenditure 226 209 380
Funded by: Loans Raised 226 209 114 Transfers (to)/from Reserves - - 280 General Funds - - (14)
Total Funding Applied 226 209 380
Capital Expenditure
Activity/ Project Reason for Project YTD Budget Variance Notes Scheme Acquisition Status Actual $000 $000 (refer $000 key)
Stormwater Stormwater upgrades and Level of S 226 209 17 2 improvements Service
Key A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget 1. WIP, minor slippage due to timings. Level of improvements required higher than budgeted.
102 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Wastewater
What we do
Council collects, treats and disposes of wastewater from residential, commercial and industrial properties (within designated areas) to safeguard the environment and provide public health protection. Council’s long-term plan includes a progressive upgrade of the wastewater reticulation network in Taupo to meet increased demand from growth.
Council has responsibilities under Variation 5 to Environment Waikato’s Regional Plan which includes a target of 20% reduction of nitrogen inputs to Lake Taupo from urban sources. Council has achieved a 25% (average) reduction by upgrading treatment plants.
KEY ACTIONS, PROJECTS, AND SERVICES
What we planned and did
• Reviewed options and costs for providing community wastewater treatment facilities for the lakeshore settlements
• Upgraded Taupo Wastewater Treatment Plant – stage 1
• Upgraded Kinloch Wastewater Treatment Plant
• Upgraded Kohatu Parade sewer
• Extended Matuku Street to Richmond Avenue sewer
• Investigated options for biosolids processing and disposal
• Investigated options with Environment Waikato to achieve nitrogen reductions in lakeshore settlements
What else we did
• Ashwood Septage Reception Facility Council constructed this facility to enable dispersion of the septic tank waste and waste- activated sludge from Council’s wastewater treatment plant. Septic tank waste to this facility also allows Council to stop septic tank-delivered waste from being disposed of at the Broadlands Road Landfill.
• Tremaine Avenue Wastewater Connections Council is progressively getting properties with septic tanks in the Tremaine Avenue area connected to the wastewater system.
What we planned, but did not complete
• Upgrades to the Control Gates Bridge siphon This project was deferred as it is not required until the Acacia Bay Wastewater Treatment Plant is decommissioned.
• Extension of main trunk sewer and rising main to Wharewaka East This work was not required because development has slowed. Funds were reallocated to alternative projects such as Ashwood Park Septage Facility.
• Investigation of options for the upgrade of the Omori/Kuratau/Pukawa wastewater treatment and disposal system This project was not needed because expected growth did not occur. SUSTAINABLE ENVIRONMENT
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 103 The wastewater activity contributes to community well-being
Environmental Council, as one partner in a wider project, is reducing the threat of nitrogen on the water quality of Lake Taupo through its upgrade of wastewater treatment - achieving a 28% reduction in nitrogen output from urban sources. Council is responsible for ensuring that the environmental health of receiving waters is not reduced by discharge from their wastewater treatment plants.
Social An improved wastewater service provides the community with healthy water, which also supports the health of the lake for tourism, recreation and water supply.
Cultural The cultural well-being of Maori in the District is enhanced when the impact of wastewater inputs into the lake is reduced and the mauri of the lake, rivers and streams is protected.
Ashwood Septage Reception facility
104 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 How we’ll know we’re on track Short term
What we want to know Measure Target Result
Our wastewater Compliance Achieve Achieved in part system is compliant with resource 344 of 367 (94%) of consent conditions were complied with its resource consent with. consent conditions conditions Non-compliance was in Turangi, Waitahanui and Kinloch where nitrogen discharge exceeded the resource consents for these plants. Turangi: Excess nitrogen was discharged during a maintenance operation to replace the membrane (filter). Waitahanui and Kinloch: Ammonia probes have been added to the treatment process to improve compliance with consent conditions. Other events of non-compliance were due to late reporting from the monitoring programme. No abatement Achieve Not achieved notices or Environment Waikato issued an abatement notice in enforcement August 2009 for the biosolid storage at Ashwood Park proceedings are as the site was without consent. The biosolids are now made stored at View Road and have consent. Following a sewerage overflow to stormwater gullies in Mangakino in September 2008, Council agreed to enter a restorative justice process with the Mangakino community. The mediation took place in July 2010 with positive outcomes for the community. Our wastewater Number of No overflows Not Achieved system is working wastewater 44 wastewater overflows occurred in total. overflows Overflows to water: Taupo reticulation overflow - 1 incident Taupo wastewater treatment overflow – 1 incident Overflows to land: Taupo and Kinloch – 24 incidents Turangi – 9 incidents Mangakino - 9 incidents We respond to and fix With 1-hour Achieve Achieved any service request in emergency 115 urgent callouts were received, and all were the District within a response and at responded to within 24 hours. reasonable time frame least 24-hour fault response to all service requests The community is Percentage of 85% Achieved satisfied with the satisfaction with 89% of users of the wastewater service were satisfied. wastewater service wastewater service
Long term
What we want to know Measure Target Result
The volume of Annual volume Decreasing On track wastewater per divided by household equivalent number of unit (HEU) is reduced household equivalent units SUSTAINABLE ENVIRONMENT
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 105 Wastewater – Financial Results Cost of Service Statement
2010 2010 2009 Actual Budget Actual $000 $000 $000
Operating Income
Targeted Rates 7,695 7,676 6,701
Development/Financial Contributions 353 1,103 1,148
Vested Assets - 1,000 -
Other Income 1,108 837 410 9,156 10,616 8,259
Operating Expenditure
Operating Expenditure 5,720 4,653 3,764
Depreciation and amortisation 3,890 2,499 2,757
Finance costs 1,931 3,378 1,996
11,541 10,530 8,517
Net Cost (surplus) of operations 2,385 (86) 258
Funded By:
General Rates - - 1,459
Transfers to Reserves (353) 914 (1,177)
General Funds 2,738 - (24)
Recognition of Vested Assets - (1,000) -
Total Funding Applied 2,385 (86) 258
Capital and Reserve Funding Capital Expenditure Renewals 856 768 989
Growth 4,348 4,604 12,307
Increase in Level of Service 2,838 418 1,699
Total Capital Expenditure 8,042 5,790 14,995
Funded by:
Loans Raised 7,255 5,576 12,438
Transfers (to)/from Reserves 805 214 1,002
General Funds (18) - 1,555
Total Funding Applied 8,042 5,790 14,995
106 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Capital Expenditure
Activity/ Scheme Project Reason for Project YTD Budget Variance Notes Acquisition Status Actual $000 $000 (refer $000 key)
Taupo Wastewater treatment Growth A 3,878 2,089 1,789 1 plant upgrade
Taupo Ashwood Septage Level of A 1,505 - 1,505 2 Service
Taupo Other District wide Level of A 1,333 - 1,333 3 Wastewater projects Service
Taupo Main trunk sewer Growth X 455 1,854 (1,399) 4 extension
Biosolids Processing and Level of X - 260 (260) 5 disposal Service/ Growth
Control Gates Bridge Siphon upgrade Growth M - 199 (199) 6
Kohatu Parade Sewer upgrade Level of X - 306 (306) 5 Service
Omori/Kurutau/Pukawa Treatment and disposal Growth X 14 314 (300) 7 system
District Vehicle replacement Renewals A 36 30 6
District Renewals all schemes Renewals A 821 738 83 8
Total Wastewater 8,042 5,790 2,252
Key
A Achieved S Slippage M Deliberate move into future years X Not achieved – major slippage (project will not be complete by 31 August 2010) or project will no longer be carried out
Variances between Actual and Annual Plan Budget
1. Required higher level of enabling works in advance of contract being let 2010/11 2. Required due to increased environmental standards 3. Programme brought forward from 2011/12 year 4. Investigations and design for future trunk upgrades 5. Budget not required - project completed in the 2008/09 year 6. Deferred, awaiting decision on Acacia Bay Wastewater & river crossing 7. Not required in 09/10 year due to timeline review 8. Level of renewal required higher than budgeted SUSTAINABLE ENVIRONMENT
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 107 FINANCIAL PERFORMANCE
Finances at a glance 110 Statement of Comprehensive Income 111 Statement of Changes in Equity 112 Statement of Financial Position 113 Statement of Cashflows 114 Statement of Accounting Policies 116 Notes to the Financial Statements 126 Council Controlled Organisations 165 The TEL Investment Fund 176 Finances at a glance
How did Council pay for all of the things we did this year? Capital Subsidies 31.9%
Development/Financial Contributions 0.8%
Operating Subsidies 1.6% Loans 26.9%
Fees and Charges 6.6%
Interest and Dividends 3.7% Sale of Fixed Assets 0.2% Rates 28.4%
Revenue & Assets/Equity by Year ($millions)
1,400 120
1,200 100
1,000 80 800 60
600 Revenue
Assets /Assets Equity 40 400
200 20
- - 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10
Group Assets Group Equity Group Revenue
110 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Statement of Comprehensive Income For the Year Ended 30 June 2010
Council Council Council Group Group Actual Estimate Actual Actual Actual 2010 2010 2009 2010 2009 Notes $000 $000 $000 $000 $000 Income Rates revenue 2 42,479 43,057 39,967 42,479 39,967
Other revenue from significant activities 1,3 62,634 43,312 41,908 63,006 42,310
Finance Income 3 5,608 6,699 5,959 5,619 5,964 FINANCIAL PERFORMANCE Other revenue 3 925 4,400 2,356 925 2,356
Other gains/(losses) 3 1,691 719 1,818 1,691 1,818
Total operating revenue 113,337 98,187 92,008 113,720 92,415
Expenditure Employee benefit expenses 1,4 19,461 19,224 19,196 19,601 19,336
Depreciation and Amortisation 1,4 16,248 12,575 13,833 16,493 14,075
Finance costs 1,4 6,505 9,582 5,570 6,505 5,581
Other expenses 1,4 36,505 27,589 29,375 36,870 29,644
Total operating expenditure 78,719 68,970 67,974 79,469 68,636
Operating surplus (deficit) before taxation 34,618 29,217 24,034 34,251 23,779
Share of associate surplus/(deficit) 30 (1,118) - (1,859) (1,118) (1,859)
Net surplus (deficit) before taxation 33,500 29,217 22,175 33,133 21,920
Tax (expense) / credit 5 - - - 85 76 Net surplus (deficit) after taxation 33,500 29,217 22,175 33,218 21,996
Net surplus (deficit) after taxation is attributable to: Taupo District Council 6 33,500 29,217 22,175 33,359 22,086
Non-controlling interest 6 - - - (141) (90)
Net surplus (deficit) after taxation 33,500 29,217 22,175 33,218 21,996
Other comprehensive income Property, plant & equipment revaluations (55,775) 53,935 47,863 (55,580) 47,863
Financial assets at fair value through other 2 - 33 2 33 comprehensive income
Plus tax on equity items - - - 44 -
Cash flow hedges - - (237) - (237)
Total Other Comprehensive Income (55,773) 53,935 47,659 (55,534) 47,659
Total Comprehensive Income (22,273) 83,152 69,834 (22,316) 69,655
Explanation of major variances against budget are provided in note 29.
The accompanying accounting policies and notes form part of these financial statements.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 111 Statement of Changes in Equity For the Year Ended 30 June 2010
Council Council Council Group Group Actual Estimate Actual Actual Actual 2010 2010 2009 2010 2009 Notes $000 $000 $000 $000 $000
Equity at start of the year 1,152,370 1,108,198 1,082,536 1,158,788 1,089,133
Capital introduced 6 - - - 86 -
Property, plant and equipment
Revaluations gains/(losses) 6 (55,775) 53,935 47,863 (55,580) 47,863 through equity
Financial assets at fair value
through equity
Revaluation gains/(losses) 6 2 - 33 2 33 through equity
Cash flow hedges taken to equity 6 - - (237) - (237)
Tax on equity items 6 - - - 44 -
Net income (expense) recognised (55,773) 53,935 47,659 (55,448) 47,659 directly in equity
Surplus(deficit) for the year 33,500 29,217 22,175 33,218 21,996
Total recognised income and (22,273) 83,152 69,834 (22,230) 69,655 expenses for the year
Total recognised income and expenses are attributable to:
Taupo District Council (22,273) 83,152 69,834 (22,194) 69,745
Non-controlling interest 6 - - - (36) (90)
Total recognised income and (22,273) 83,152 69,834 (22,230) 69,655 expenses for the year
Equity at end of the year 1,130,097 1,191,350 1,152,370 1,136,558 1,158,788
The accompanying accounting policies and notes form part of these financial statements.
112 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Statement of Financial Position as at 30 June 2010
Council Council Council Group Group Actual Estimate Actual Actual Actual 2010 2010 2009 2010 2009 Notes $000 $000 $000 $000 $000 Equity Accumulated Funds 6 875,658 870,059 836,213 877,519 838,215 Council Created Reserves 6 95,481 98,870 100,971 95,481 100,971 Restricted Reserves 6 - 232 - - - Revaluation Reserves 6 158,958 222,189 215,186 160,641 216,649 Non-controlling interest 6 - - - 2,917 2,953 FINANCIAL PERFORMANCE Total Equity 1,130,097 1,191,350 1,152,370 1,136,558 1,158,788
Current Assets Cash and Cash Equivalents 7 27,119 16,891 7,930 27,158 8,013 Other Financial Assets 10 5,437 18,422 25,712 5,662 25,823 Derivative Financial Instruments 20 - - - - - Trade and Other Receivables 8 10,523 6,395 8,061 10,544 8,089 Inventories 9 457 480 550 457 550 Non-Current Assets Held for Sale 11 26,883 4,514 116 26,883 116 Total Current Assets 70,419 46,702 42,369 70,704 42,591
Non-Current Assets Other Financial Assets 10 55,688 44,730 57,819 52,827 54,958 Derivative Financial Instruments 20 456 - - 456 - Intangible Assets 14 892 924 908 902 921 Investment Properties 15 2,645 - 2,883 2,645 3,110 Investments in Associates 30 2,261 - 3,379 2,261 3,379 Biological Assets - Forestry 13 4,947 5,595 4,130 4,947 4,130 Property, Plant and Equipment 12 1,154,161 1,247,868 1,165,228 1,164,042 1,175,122 Total Non-Current Assets 1,221,050 1,299,117 1,234,347 1,228,080 1,241,620 Total Assets 1,291,469 1,345,819 1,276,716 1,298,784 1,284,211
Current Liabilities Trade and Other Payables 16 13,891 9,888 14,348 13,921 14,474 Employee Benefit Liabilities 17 3,053 2,282 3,010 3,075 3,030 Derivative Financial Instruments 20 - - 470 - 470 Borrowings 19 40,320 8,895 1,924 40,320 1,924 Total Current Liabilities 57,264 21,065 19,752 57,316 19,898
Non-Current Liabilities Provisions 18 41 35 38 41 38 Derivative Financial Instruments 20 6,355 - 1,223 6,355 1,223 Borrowings 19 97,314 132,959 102,964 97,314 102,964 Deferred Tax Liabilities 5 - - - 802 931 Employee Benefit Liabilities 17 398 410 369 398 369 Total Non-Current Liabilities 104,108 133,404 104,594 104,910 105,525
Total Liabilities 161,372 154,469 124,346 162,226 125,423 Total Net Assets 1,130,097 1,191,350 1,152,370 1,136,558 1,158,788
The accompanying accounting policies and notes form part of these financial statements. The financial statements are authorised for issue by Council on 28 September 2010.
Rob Williams CHIEF EXECUTIVE OFFICER Rick Cooper MAYOR TAUPO DISTRICT COUNCIL TAUPO DISTRICT COUNCIL
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 113 Statement of Cashflows For the Year Ended 30 June 2010
Council Council Council Group Group Actual Estimate Actual Actual Actual 2010 2010 2009 2010 2009 $000 $000 $000 $000 $000
Cash flows from operating activities Cash was provided from :
Rates 42,336 43,385 39,756 42,336 39,756
Subsidies 2,399 2,229 1,843 2,399 1,843
Interest income 5,465 6,699 6,425 5,473 6,430
Dividends received 8 - 13 8 13
Fees, charges and other income 9,397 11,895 11,651 9,720 11,301
Net GST received 448 - - 445 -
Cash inflows from operating activities 60,053 64,208 59,688 60,381 59,343
Cash was applied to :
Payments to suppliers and employees 46,087 47,339 45,761 46,457 45,221
Interest on public debt 6,176 9,582 5,569 6,176 5,580
Net GST paid - - 677 - 668
Cash outflows from operating activities 52,263 56,921 52,007 52,633 51,469
Net cash inflow (outflow) from 7,790 7,287 7,681 7,748 7,874 operating activities (note 21)
Cash Flows from investing activities
Cash was provided from :
Proceeds from sale of property, plant and 255 1,275 1,694 314 1,694 equipment
Development/Financial Contributions 1,141 3,132 2,997 1,141 2,997
Capital Subsidies 47,518 26,348 24,031 47,518 24,031
Net decrease in investments 22,085 - - 21,971 -
Cash inflows from investing activities 70,999 30,755 28,722 70,944 28,722
Cash was applied to :
Purchase and development of property, 92,144 56,294 61,717 92,177 63,615 plant and equipment
Purchase of intangible assets 216 - 229 216 242
Net increase in investments - 646 17,223 - 16,107
Cash outflows from investing activities 92,360 56,940 79,169 92,393 79,964
Net cash inflow (outflow) from (21,361) (26,185) (50,447) (21,449) (51,242) investing activities
114 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Council Council Council Group Group Actual Estimate Actual Actual Actual 2010 2010 2009 2010 2009 $000 $000 $000 $000 $000
Cash Flows from financing activities Cash was provided from :
Loans raised 40,019 24,174 37,949 40,019 37,949
Capital Injection - - - 86 957 FINANCIAL PERFORMANCE
Net increase in finance lease liability - - 183 - 183
Cash inflows from financing activities 40,019 24,174 38,132 40,105 39,089
Cash was applied to:
Repayment of loans 7,159 5,276 4,327 7,159 4,635
Net repayment of finance lease liability 100 - - 100 -
Cash outflows from financing activities 7,259 5,276 4,327 7,259 4,635
Net cash inflow (outflow) from 32,760 18,898 33,805 32,846 34,454 financing activities
Net increase (decrease) in cash held 19,189 - (8,961) 19,145 (8,914)
Add cash at start of year 7,930 16,891 16,891 8,013 16,927
Cash at end of period 27,119 16,891 7,930 27,158 8,013
Consisting of:
Cash and bank 355 100 125 357 126
Call deposits 16,728 - 1,905 16,765 1,987
Short term deposits (less than 3 months) 10,036 16,791 5,900 10,036 5,900
Cash at end of period 27,119 16,891 7,930 27,158 8,013
Notes: The net GST item in the operating activity cashflows reflects the net GST paid or received with the Inland Revenue Department. The GST item is disclosed on a net basis as the gross amounts do not provide meaningful information for financial reporting purposes.
The net investment item in the investment activity cashflows reflects the net investment activity with banks and corporates. The investment item is disclosed on a net basis as the gross amounts do not provide meaningful information for financial reporting purposes.
The accompanying accounting policies and notes form part of these financial statements.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 115 Statement of Accounting Policies For the Year Ended 30 June 2010
1. Reporting Entity in financial statements to be aggregated on the basis of shared characteristics and introduces a Taupo District Council is a Local Authority governed statement of comprehensive income. The statement by the Local Government Act 2002. The financial of comprehensive income will enable readers to statements of Taupo District Council and Group have analyse changes in equity resulting from non-owner been prepared in accordance with the provisions of changes separately from transactions with owners. section 98(1) of the Local Government Act 2002. The Council and group has decided to prepare a single statement of comprehensive income for the year The Council’s financial statements include Council ended the 30 June 2010 under the revised standard. and the Lake Taupo Protection Trust as an equity Financial information for the year ended the 30 June accounted associate. 2009 has been restated accordingly. Items of other comprehensive income presented in the statement of The group reporting entity consists of the Taupo comprehensive income were previously recognized District Council, and its subsidiaries, Taupo Airport directly in the statement of changes in equity. Authority, Data Capture Systems Limited and Destination Lake Taupo Limited. Council has two Amendments to NZ IFRS 7 Financial Instruments: other Council Controlled Entities being the Lake Disclosures. The amendments introduce a three level Taupo Tourism Advisory Board and the Taupo District fair value disclosure hierarchy that distinguishes fair Economic Development Board. These are advisory value measurements by the significance of valuation boards and there are no financial results or assets or inputs used. A maturity analysis of financial assets liabilities to consolidate. is also required to be prepared if this information is necessary to enable users of the financial statements The primary objective of Taupo District Council to evaluate the nature and extent of liquidity risk. and group is to provide goods or services to the The transitional provisions of the amendment do not community for social benefit rather than for making require disclosure of comparative information in the a financial return. Accordingly the Council has first year of application. The Council and group has designated itself and the group as a public benefit elected to disclose comparative information. entity for the purposes of financial reporting. Standards and interpretations issued and The financial statements of Taupo District Council not yet adopted are for the year ended 30 June 2010. The financial statements were authorised for issue by Council on 28 Standards, interpretations, and amendments issued September 2010. but not yet effective that have not been early adopted, and which are relevant to Taupo District Council include: 2. Statement of Compliance and Basis of Preparation NZ IAS 24 Related Party Disclosures (Revised 2009) replaces NZ IAS 24 Related Party Disclosures (Issued These financial statements have been prepared in 2004) and is required to be applied, at the latest, in accordance with New Zealand generally accepted preparing the 30 June 2012 financial statements. The accounting practices. They comply with NZ IFRS, and revised standard simplifies the definition of a related other applicable Financial Reporting Standards, as party, clarifying its intended meaning and eliminating appropriate for public benefit entities. inconsistencies from the definition. The Council and group has elected to adopt this standard for the year The financial statements are prepared using the ending 30 June 2011. historical cost basis, except for assets and liabilities, which are recorded at fair value. These are detailed in NZ IAS 23 Borrowing Costs (revised 2007) replaces the specific policies below. NZ IAS 23 Borrowing Costs (issued 2004) and is The accounting policies set out below have been effective for reporting periods beginning on or after applied consistently to all periods presented in these 1 January 2009. The revised standard requires all financial statements. borrowing costs to be capitalised if they are directly attributable to the acquisition, construction or Changes in accounting policies production of a qualifying asset. In October 2008, There have been no changes in accounting policies mandatory adoption of NZ IAS 23 (revised 2007) during the financial year. by public sector entities was deferred pending the completion of the Financial Reporting Standards The Council and group has adopted the following Board’s research project into the application of NZ revisions to accounting standards during the financial IAS 23 (revised 2007) by public benefit entities. year, which have had only a presentation or disclosure Taupo District Council has elected not to adopt the effect: revised NZ IAS 23 for the year ended 30 June 2010. Accordingly, all borrowing costs were recognized as an NZ IAS 1 Presentation of Financial Statements expense in the period in which they were incurred. (revised 2007) replaces NZ IAS 1 Presentation of Financial Statements (issued 2004) and is effective NZ IFRS 9 Financial Instruments will eventually for reporting periods beginning on or after 1 January replace NZ IAS 39 Financial Instruments: Recognition 2009. The revised standard requires information and Measurement. NZ IAS 39 is being replaced
116 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 through the following 3 main phases: Phase 1 as an associate, as Council has significant influence Classification and Measurement, Phase 2 Impairment over it without it being either a subsidiary of any Methodology, and Phase 3 Hedge Accounting. Phase organisation, nor an interest in a joint venture. 1 on the classification and measurement of financial Council has equal significant influence with two other assets has been completed and has been published in settlors, Environment Waikato and the Crown. As the new financial instrument standard NZ IFRS 9. NZ a result Council accounts for an equity interest of IFRS 9 uses a single approach to determine whether 33.3%. The carrying amount of Council’s interest a financial asset is measured at amortised cost or fair is increased or decreased each year to recognise value, replacing the many different rules in NZ IAS Council’s share of the surplus or deficit of the Trust in 39. The approach in NZ IFRS 9 is based on how an keeping with this 33.3% interest. Council’s share of entity manages its financial instruments (its business the surplus or deficit of the associate is recognised in model) and the contractual cash flow characteristics the Statement of Comprehensive Income. of financial assets. The new standard also requires a single impairment method to be used, replacing the 3.3 Foreign Currency Transactions many different impairment methods I NZ IAS 39. The functional and presentation currency is New The new standard is required to be adopted for he Zealand dollars. Transactions in foreign currencies are year ended 30 June 2014. Taupo District Council has translated at the foreign exchange rate ruling on the not yet assessed the effect of the new standard and day of the transaction. expects it will not be early adopted. Foreign currency monetary assets and liabilities at 3. Accounting Policies the balance date are translated to NZ dollars at the rate ruling at that date. Foreign exchange differences The following accounting policies which materially arising on translation are recognised in the Statement affect the measurement of results and financial of Comprehensive Income, except when deferred in position have been applied: equity as qualifying cash flow hedges and qualifying
net investment hedges. At 30 June 2009 no assets or ACCOUNTING POLICIES 3.1 Basis of Consolidation liabilities were held in foreign currency. Subsidiaries include special purpose entities and are those over which Taupo District Council and group has 3.4 Derivative Financial Instruments the power to govern financial and operating policies, Taupo District Council and group uses derivative generally arising from a shareholding of at least half of financial instruments to hedge its exposure to the voting rights. Potential exercisable or convertible interest rate and foreign exchange risks arising from voting rights are considered when assessing whether operational, financing and investment activities. In Taupo District Council and group controls another accordance with the treasury policies of the respective entity. group entities, Taupo District Council and group do not hold or issue derivative financial instruments for Subsidiaries are fully consolidated from the date on trading purposes. which control is transferred to Taupo District Council and group, and de-consolidated from the date control Derivatives are initially recognised at fair value on ceases. the date a derivative contract is entered into and are subsequently measured at fair value at each balance The purchase method of accounting is used to account date. Gains or losses in fair value and those resulting for the acquisition of subsidiaries. from re-measuring are recognised in the Statement of Financial Performance. Inter-company transactions, balances and unrealised gains on transactions are eliminated. Unrealised losses The fair value of interest rate swaps is the estimated are also eliminated, unless the transaction provides amount that the group would receive or pay to evidence of the impairment of the asset transferred. terminate the swap at the balance sheet date, taking Accounting policies of subsidiaries have been changed into account current interest rates and the current where necessary, to ensure consistency with the creditworthiness of the swap counterparties. The fair policies adopted by Taupo District Council and group. value of forward exchange contracts is their quoted market price at the balance sheet date, being the The following entities are treated as subsidiaries in present value of the quoted forward price. Council’s consolidated financial statements: Taupo Airport Authority (50% owned but in substance 3.5 GST Council exercises control) Data Capture Systems Limited (100% owned) The financial statements have been prepared exclusive Destination Lake Taupo Limited (100% owned) of GST with the exception of receivables and payables that have been shown inclusive of GST. Where GST is not recoverable as an input tax it is recognised as part 3.2 Accounting for Associates of the related asset or expense. Taupo District Council accounts for an investment in an associate in the parent and group financial statements using the equity method. The associate is the Lake Taupo Protection Trust. The Trust is treated
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 117 3.6 Revenue consideration the fair value of the asset received is Rates revenue is recognised when invoiced. recognised as revenue. Assets vested in Taupo District Council are recognised as revenue when control over Water billing revenue is recognised on an accrual the asset is obtained.General rates are not allocated to basis. Unbilled sales, as a result of unread meters at significant activities and are included as general rate year end, are accrued on an average usage basis. revenue in the Statement of Comprehensive Income.
Government grants, including non-monetary grants No revenue is recognised if there are significant at fair value, shall not be recognised by Taupo District uncertainties regarding recovery of the consideration Council and group until there is reasonable assurance due, associated costs or the possible return of goods. that: (a) the entity will comply with the conditions 3.7 Expenses accounting to them; and Leases (b) the grants will be received. Leases in which substantially all of the risks and rewards of ownership transfer to the lessee are Government grants, other than grants related to classified as finance leases. At inception, finance assets, shall be recognised as income over the periods leases are recognized as assets and liabilities on the necessary to match them with the related costs which balance sheet at the lower of the fair value of the they are intended to compensate, on a systematic leased property and the present value of the minimum basis. lease payments. Any additional direct costs of the lessee are added to the amount recognized as an NZ Transport Agency roading subsidies are recognised asset. Subsequently, assets leased under a finance as revenue upon entitlement, which is when conditions lease are depreciated as if the assets are owned. pertaining to eligible expenditure have been fulfilled. Operating lease payments Other grants and bequests, and assets vested in the Payments made under operating leases are recognised Council – with or without conditions – are recognised in the Statement of Comprehensive Income on a as revenue when control over the assets is obtained. straight-line basis over the term of the lease. Lease Grants and bequests are recognised at their fair value incentives received are recognised in the Statement of where there is a reasonable assurance that the grant Comprehensive Income as an integral part of the total or bequest will be received and that Council as the lease expense. recipient will comply with all attached conditions. Finance lease payments Revenue from the sale of goods is recognised in Minimum lease payments are apportioned between the the Statement of Comprehensive Income when the finance charge and the reduction of the outstanding significant risks and rewards of ownership have been liability. The finance charge is allocated to each period transferred to the buyer. during the lease term, so as to produce a constant periodic rate of interest on the remaining balance of Revenue from any services rendered (except as the liability. described above) is recognised in the Statement of Comprehensive Income in proportion to the stage of Financing costs completion of the transaction at the balance sheet Net financing costs comprise interest payable on date. The stage of completion is assessed by reference borrowings calculated using the effective interest to surveys of work performed. rate method, foreign exchange losses, and losses on hedging instruments that are recognised in the Rental income from investment property is recognised Statement of Comprehensive Income (see Hedging in the Statement of Comprehensive Income on a policy). straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part The interest expense component of finance lease of the total rental income. payments is recognised in the Statement of Comprehensive Income using the effective interest Development contributions and financial contributions rate method. are recognised as revenue when Council invoices the customer. 3.8 Equity Dividend income shall be recognised when the Equity is the community’s interest in the Council shareholder’s right to receive payment is established. as measured by the value of total assets less total liabilities. Public Equity is disaggregated and Interest income is recognised in the Statement of classified into a number of reserves to enable clearer Comprehensive Income as it accrues, using the identification of the specified uses Council makes of its effective interest method. Interest income is not accumulated surpluses. The public equity of Council is allocated to significant activities and is included as made up of the following components: other income in the Statement of Comprehensive Income. Accumulated Funds Council Created Reserves Where a physical asset is acquired for nil or nominal Restricted Reserves Revaluation Reserves
118 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 3.9 Reserves in the Statement of Comprehensive Income. Reserves are a component of Public Equity and represent a particular use to which parts of equity (c) Held-to-maturity investments have been assigned. Reserves may be legally Held-to-maturity investments are non-derivative restricted or created by the Council. financial assets with fixed or determinable payments and fixed maturities, that management has the Council Created Reserves are reserves established by positive intention and ability to hold to maturity. After Council decision. The Council may alter them without initial recognition they are measured at amortised reference to any third party or the Courts. Transfers cost using the effective interest method. Gains and to and from these reserves are at the discretion of the losses when the asset is impaired or derecognised Council. are recognised in the Statement of Comprehensive Income. Restricted Reserves are those reserves subject to specific conditions accepted as binding by the Council, (d) Available-for-sale financial assets and which Council may not revise without reference Available-for-sale financial assets are non-derivatives to a third party. Transfers from these reserves may that are either designated in this category, or not be made only for certain specified purposes or when classified in any of the other categories. certain specified conditions are met. The classification depends on the purpose for Asset Revaluation Reserves arise from certain asset which the investments were acquired. Management classes being revalued, with these classes including determines the classification of its investments at land, buildings, infrastructural assets, restricted initial recognition, and re-evaluates this designation assets and investments. The treatment of revaluation at every reporting date. After initial recognition these movements is detailed in item 3.15.1 of the policies. investments are measured at their fair value. Gains and losses are recognised directly in equity except for impairment losses, which are recognised in the 3.10 Cash and Cash Equivalents
Statement of Comprehensive Income. In the event ACCOUNTING POLICIES Cash and cash equivalents comprise cash balances of impairment, any cumulative losses previously and call deposits, and other short-term highly liquid recognised in equity will be removed from equity investments with maturities of three months or and recognised in the Statement of Comprehensive less. Bank overdrafts that are repayable on demand Income even though the asset has not been and form an integral part of Taupo District Council derecognised. On derecognition the cumulative gain and group’s cash management, are included as a or loss previously recognised in equity is recognised in component of cash and cash equivalents for the the Statement of Comprehensive Income. purpose of the statement of cash flows, and in current liabilities on the balance sheet. Council investment in subsidiaries For the purposes of the Council’s financial statements, 3.11 Financial Assets Taupo District Council’s equity investments in Taupo District Council and group classify its its subsidiary companies are stated at cost, less investments in the following categories: impairment losses (see impairment policy).
(a) Financial assets or financial liabilities at fair value Investments in debt and equity securities through profit or loss Financial instruments held for trading are classified as This category has two sub-categories: financial assets financial assets at fair value through profit and loss held for trading, and those designated at fair value and are stated at fair value, with any resultant gain through profit or loss at inception. A financial asset or loss recognised in the Statement of Comprehensive is classified in this category if acquired principally Income. Council’s managed equity investments fall for the purpose of selling in the short term, or if into this category. Fair value is determined as current so designated by management. Derivatives are market value based on the 30 June closing sale price also categorised as held for trading unless they are recorded in the relevant stock exchange. The value designated as hedges. Assets in this category are of the foreign-listed managed equities is converted classified as current assets if they are either held to New Zealand dollars at the 30 June closing rate of for trading or are expected to be realised within exchange. 12 months of the balance sheet date. After initial recognition they are measured at their fair values. Council’s shareholding in King Country Energy Limited Gains or losses on re-measurement are is classified as available for sale. This investment is recognised in the Statement of Comprehensive stated at fair value with the resultant gain or loss Income. recognised through equity. Fair value is determined at current market value based on the 30 June closing (b) Loans and receivables stock exchange sale price. Loans and receivables are non-derivative financial assets with fixed or determinable payments, which Where Taupo District Council and group has the are not quoted in an active market. After initial positive intent and ability to hold Government bonds recognition they are measured at amortised cost using to maturity, they are classified as held-to-maturity the effective interest method. Gains and losses when investments, measured at initial recognition at fair the asset is impaired or derecognised are recognised value, and subsequently carried at amortised cost less impairment losses (see accounting policy).
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 119 3.12 Trade and Other Receivables from other liabilities in the balance sheet. Trade and other receivables are initially measured at fair value and subsequently valued at their amortised 3.15 Property, plant and equipment cost using the effective interest method, less Property, plant and equipment consist of: impairment losses (see accounting policy 3.19). • Operational assets – These include land, buildings, improvements, library books, plant and equipment, A provision for impairment of receivables is and motor vehicles. established when there is objective evidence that Council will not be able to collect all amounts due • Restricted assets – Restricted assets are parks and according to the original terms of receivables. The reserves owned by the Council, which provide a amount of the provision is the difference between benefit or service to the community and cannot be the carrying amount and the present value of the disposed of because of legal or other restrictions. estimated recovery of the debt. • Infrastructure assets – Infrastructure assets are the fixed utility systems owned by the Council. Each 3.13 Inventories asset type includes all items that are required for the network to function, for example, wastewater Inventories are stated at the lower of cost and net reticulation includes reticulation piping and pump realisable value. Net realisable value is the estimated stations. selling price in the ordinary course of business, less the estimated costs of completion and selling • Heritage assets and works of art. expenses. 3.15.1 Valuation Methodologies Inventories (such as spare parts and other items) Operational land and restricted land were initially held for distribution or consumption in the provision of valued at fair value as determined from market based services that are not supplied on a commercial basis, evidence by independent valuer Quotable Value New are measured at cost, adjusted when applicable, for Zealand at 30 June 2005, which was considered any loss of service potential. deemed cost. These were revalued to fair value on the same basis by independent valuer, Quotable Value The cost of inventories is based on the first-in, first- New Zealand at 30 June 2010. out principle, and includes expenditure incurred in acquiring the inventories and bringing them to their Operational buildings were initially valued at fair existing location and condition. value as determined from market based evidence by independent valuer Quotable Value New Zealand 3.14 Non-current assets (or disposal at 1 July 2005, which was considered deemed cost. groups) held for sale These were revalued to fair value on the same basis Non-current assets (or disposal groups) are classified by independent valuer, Quotable Value New Zealand at as held for sale and stated at the lower of their 30 June 2010. carrying amount and fair value less costs to sell if their carrying amount will be recovered principally Infrastructure roading assets (except for land under through a sale transaction rather than through roads) were valued at depreciated replacement cost continuing use. as determined from market based evidence by Council Asset Managers and reviewed by Opus International An impairment loss is recognised for any initial or Consultants Limited at 30 June 2005. These were subsequent write down of the asset (or disposal revalued at depreciated replacement cost on the group) to fair value less costs to sell. A gain is same basis by Council Asset Managers and reviewed recognised for any subsequent increases in fair value by Opus International Consultants Limited at 30 June less costs to sell of an asset (or disposal group), 2008. This valuation is considered deemed cost. but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously Infrastructure water, wastewater and stormwater recognised by the date of the sale of the non-current (excluding buildings associated with these asset (or disposal group) is recognised at the date of networks) were valued at depreciated replacement de-recognition. cost determined from market based evidence by independent valuer, Beca Valuations Limited at 30 Non-current assets (including those that are part of June 2005. These were revalued at depreciated a disposal group) are not depreciated or amortised replacement cost by independent valuer, AECOM New while they are classified as held for sale. Interest Zealand Limited, at 30 June 2009. This valuation is and other expenses attributable to the liabilities of a considered deemed cost. disposal group classified as held for sale continue to be recognised. Infrastructure solid waste is valued at cost less accumulated depreciation. Any accumulated Non-current assets classified as held for sale and the depreciation at the date of revaluation is eliminated assets of a disposal group classified as held for sale, against the gross carrying amount of the asset, and are presented separately from the other assets in the net amount is restated to the revalued amount the balance sheet. The liabilities of a disposal group of the asset. Valuations are performed with sufficient classified as held for sale are presented separately regularity to ensure revalued assets are carried at a
120 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 value that is not materially different from fair value. and land have been vested in Council as part of the sub-divisional consent process. The vested land Land under roads was initially valued as determined reserve has been initially recognised at the most from market based evidence by independent valuer recent appropriately certified Government valuation. Quotable Value New Zealand at 30 June 2005 which Vested infrastructural assets are valued based on the was considered deemed cost. This asset class actual quantities of infrastructure components vested, was revalued to fair value on the same basis by and the current “in the ground” cost of providing independent valuer, Quotable Value New Zealand at identical services. 30 June 2010. 3.15.3 Depreciation Urban land was valued at 45% of the surrounding Land is not depreciated. Depreciation on other assets land’s market value. Rural land was valued based is calculated using either the straight line or the on the surrounding land’s market value. Land under diminishing value method to allocate their cost or roads is not depreciated. revalued amounts, net of their residual values, over their estimated useful lives. The Airport Infrastructure was valued at depreciated replacement cost by independent valuer Beca The useful lives and associated depreciation rates Valuations Limited at 30 June 2002. These were of assets to be depreciated have been estimated as revalued at depreciated replacement cost by follows: independent valuer, Beca Valuations Ltd effective 30 June 2008. This valuation is considered deemed cost. Operational assets: Heritage assets and park furniture were included Land Nil Nil for the first time at 1 July 2005. Under NZ IFRS this valuation has been deemed cost, and will no longer be Buildings 40-75 yrs 1.3%-2.5%SL valued. Heritage assets are not depreciated. Site Value 13 yrs 7.69% SL Structure 20-80 yrs 1.3% -5% SL ACCOUNTING POLICIES All other property, plant and equipment are stated Roof 20-40 yrs 2.5%-5% SL at historical cost less depreciation. Historical cost Services 20-45 yrs 2.5%-5% SL includes expenditure that is directly attributable to Internal fit 15-35 yrs 2.9%-6.7% SL the acquisition of the items. Cost may also include out transfers from equity of any gains/losses on qualifying cash flow hedges of foreign currency purchases of Plant 20-30 yrs 3.3% - 5% SL property, plant and equipment. Machinery 2-20 yrs 10-25%DV (old rate), 5%-50%SL Subsequent costs are included in the asset’s carrying (new rate) amount or recognised as a separate asset, as Computer 4 yrs 25%SL appropriate, only when it is probable that future Equipment economic benefits associated with the item will flow to Office 4-10 yrs 10-20%DV (old the Group and the cost of the item can be measured Equipment rate), 13.33%- reliably. All other repairs and maintenance are 25%SL (new rate) charged to the Statement of Comprehensive Income Furniture & 2 -10 yrs 10%-20%DV (old during the financial period in which they are incurred. Fittings rate),10-50%SL (new rate) Increases in the carrying amounts arising on revaluation of an asset class are credited to Park Furniture 2-25 yrs 4%- 50% SL revaluation reserves in shareholders’ equity. Vehicles 4 -10yrs 10-20%DV (old To the extent that the increase reverses a rate), 10-25%SL decrease previously recognised in the Statement (new rate) of Comprehensive Income, the increase is first Library Books 6.5 yrs 15.5%SL recognised in the Statement of Comprehensive Income. Decreases that reverse previous increases Infrastructural assets: of the same asset class are first charged against Roads revaluation reserves directly in equity to the extent top surface 3 -20 yrs 5%-33%SL of the remaining reserve attributable to the class; pavement 45 - 60 yrs 1.7%-2%SL all other decreases are charged to the Statement of formation not depreciated Comprehensive Income. culverts 55-80 yrs 1.3%-1.8%SL Borrowing costs are not capitalised as part of the cost footpaths 50 - 80 yrs 1.3%-2%SL of an asset. They are recognised as an expense in the kerbs 60 yrs 1.7%SL period in which they are incurred. signs 15 yrs 6.7%SL street lights 25 - 60 yrs 1.7%-4%SL 3.15.2 Additions Bridges 90-100 yrs 1%-1.1%SL Additions between valuations are shown at cost, Lnd under not depreciated except vested assets. Certain infrastructural assets roads
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 121 Software Water Reticulation Acquired computer software licenses are capitalised pipes 45 - 80 yrs 1.25%-2.2%SL on the basis of the costs incurred to acquire and bring valves, 40 yrs 2.5%SL to use the specific software. These are valued at cost, hydrants and are amortised over the expected useful life of the pump 10 - 60 yrs 1.7%-10%SL license. stations The useful lives and associated amortisation rates tanks 25 - 80 yrs 1.3%-4%SL of assets to be amortised have been estimated as Sewerage Reticulation follows: pipes 15 – 80 yrs 1.3%-6.7%SL Software 4 years 25% manholes 80 yrs 1.3%SL Costs associated with maintaining computer software treatment 5 – 80 yrs 1.3%-20%SL are recognised as an expense when incurred. plant 3.17 Biological assets and agricultural Stormwater Systems produce pipes 70 - 100 yrs 1%-1.4%SL A biological asset is a living animal or plant. Biological manholes, 75 - 100 yrs 1%-1.3%SL assets that are the subject of agricultural activity (i.e., cesspits the management of the biological transformation of flood control 50 - 100 yrs 1%-2%SL biological assets for sale, into agricultural produce, systems or into additional biological assets) are stated at fair Restricted Assets: value less estimated point-of-sale costs, determined on the basis of an annual revaluation, with any Land Nil resultant gain or loss recognised in the Statement of Other 0 - 40 yrs 0-2.5%SL Comprehensive Income. Point-of-sale costs include all costs that would be necessary to sell the assets, The assets’ residual values and useful lives are excluding costs necessary to get the assets to market. reviewed, and adjusted if appropriate, at each balance sheet date. All other biological assets are measured at the lower of cost and net realisable value. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s Agricultural produce is the harvested product of the carrying amount is greater than its estimated entity’s biological assets. Agricultural produce is recoverable amount. measured at fair value less estimated point-of-sale costs at the point of harvest. Assets under construction Assets under construction are not depreciated. The Forest assets total cost of a project is transferred to the relevant Forest assets are predominantly standing trees which asset class on its completion and then depreciated. are managed on a sustainable yield basis. These The current carrying amount of items under are shown in the balance sheet at fair value less construction is separately disclosed. estimated point of sale costs at harvest. The costs to establish and maintain the forest assets are included 3.15.4 Disposal in the Statement of Comprehensive Income, together Gains and losses on disposal are determined by with the change in fair value for each accounting comparing proceeds with carrying amount. These are period. included in the Statement of Comprehensive Income. When revalued assets are sold, the amounts included The valuation of Taupo District Council and groups in other reserves in respect of those assets are forests is based on discounted cash flow models where transferred to retained earnings. the fair value is calculated using cash flows from continued operations; that are, based on sustainable forest management plans taking into account growth 3.16 Intangible Assets potential. The yearly harvest from tree forecast tree Development expenditure growth is multiplied by expected wood prices and the Costs related to producing the accounting billing costs associated with forest management, harvesting system for Data Capture Systems Ltd. Development and distribution are then deducted to derive annual costs are capitalised where future benefits are cash flows. expected to exceed those costs, otherwise such costs are recognised in the Statement of Comprehensive The fair value of the forest assets is measured as Income in the period in which they are incurred. the present value of cash flows from one growth Unamortised costs are reviewed at each balance date cycle based on the productive forest land, taking into to determine the amount (if any) that is no longer consideration environmental, operational and market recoverable, and any amount so identified is written restrictions. Forest assets are valued separately from off. As the company has made the decision to cease the underlying freehold land. trading, all development expenditure has been fully impaired.
122 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 3.18 Investment property Comprehensive Income. Properties leased to third parties under operating leases are classified as investment property unless the For assets not carried at a revalued amount (other property is held to meet service delivery objectives, than goodwill) the reversal of an impairment loss rather than to earn rentals or for capital appreciation. is recognised in the Statement of Comprehensive Income. Council has one investment property held within the TEL fund and the Airport has investment property 3.20 Financial Liabilities which is consolidated into the group financial Financial liabilities (creditors, loans, bonds and statements. Investment property is measured deposits) are initially recognised at fair value. These initially at its cost, including transaction costs. After are subsequently recognised at amortised cost. initial recognition, Council measures all investment property at fair value as determined annually by an 3.21 Employee Entitlements independent valuer. The valuation of Council’s investment property Provision is made in respect of Taupo District Council was performed by Veitch Morrison Valuers Ltd, an and group’s liability for annual leave, sick leave, long independent valuer, based on open market evidence. service leave, and gratuities.
Gains or losses arising from a change in the fair The retiring gratuity liability is assessed on an value of investment property are recognised in the actuarial basis using current rates of pay taking into Statement of Comprehensive Income. account years of service, years to entitlement and the likelihood staff will reach the point of entitlement. These estimated amounts are discounted to their 3.19 Impairment present value. The carrying amounts of Taupo District Council and group’s assets, other than investment property (see Long-service leave for which there is already actual Investments policy), inventories (see Inventories entitlement is accrued at actual entitlement using ACCOUNTING POLICIES policy) and deferred tax assets (see Income Tax current rates of pay. In addition, there is an actuarial policy), are reviewed at each balance sheet date assessment of value for which entitlement has not to determine whether there is any indication of yet been reached. This assessment uses current rates impairment. of pay taking into account years of service, years to entitlement and the likelihood staff will reach the An impairment loss is recognised for the amount point of entitlement. These estimated amounts are by which the asset’s carrying amount exceeds its discounted to their present value. recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and Liabilities for annual leave are accrued on an actual value in use. entitlement basis, using current rates of pay.
Value in use is depreciated replacement cost for an Liabilities for accumulating short-term compensated asset where the future economic benefits or service absences (for example, sick leave) are measured as potential of the asset are not primarily dependent the amount of unused entitlement accumulated at on the assets ability to generate net cash inflows balance date that the Council anticipates employees and where the entity would, if deprived of the asset, will use in future periods in excess of the days that replace its remaining future economic benefits or they will be entitled to in each of those periods. service potential. The value in use for cash-generating assets is the present value of expected future cash 3.22 Provisions flows. A provision is recognised in the balance sheet If an asset’s carrying amount exceeds its recoverable when the group has a present legal or constructive amount the asset is impaired and the carrying obligation as a result of a past event, and it is amount is written down to the recoverable amount. probable that an outflow of economic benefits, the For revalued assets the impairment loss is recognised amount of which can be reliably estimated, will against the revaluation reserve for that class of be required to settle the obligation. If the effect is asset. Where that results in a debit balance in the material, provisions are determined by discounting revaluation reserve, the balance is recognised in the the expected future cash flows at a pre-tax rate that Statement of Comprehensive Income. reflects current market assessments of the time value of money and, where appropriate, the risks specific to For assets not carried at a revalued amount, the total the liability. impairment loss is recognised in the Statement of Comprehensive Income. Landfill post-closure costs The Council, as operator of the District landfill, has a The reversal of an impairment loss on a revalued legal obligation under the resource consent to provide asset is credited to the revaluation reserve. However, ongoing maintenance and monitoring services at the to the extent that an impairment loss for that class landfill site after closure. A provision for post-closure of asset was previously recognised in the Statement costs is recognised as a liability when the obligation of Comprehensive Income, a reversal of the for post-closure arises. impairment loss is also recognised in the Statement of
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 123 The provision is measured based on the present 3.26 Budget Figures value of future cash flows expected to be incurred, The budget figures are those approved by the taking into account future events including new legal Council at the beginning of the year after a period of requirements and known improvements in technology. consultation with the public, as part of the Long Term The provision includes all costs associated with landfill Council Community Plan / Annual Plan process. The post-closure. budget figures have been prepared in accordance with generally accepted accounting practice, and are Amounts provided for landfill post-closure are consistent with the accounting policies adopted by the capitalised to the landfill asset where they give rise to Council for the preparation of the financial statements. future economic benefits to be obtained. Components of the capitalised landfill asset are depreciated over 3.27 Third Party Transfer Payment their useful lives. Agencies The discount rate used is a pre-tax rate that reflects Taupo District Council and group collect monies for current market assessments of the time value of many organisations. Where collections are processed money and the risks specific to the Council. through Taupo District Council and group’s books, any monies held are shown as trade payables in 3.23 Interest-bearing Borrowings the Balance Sheet. Amounts collected on behalf of third parties are not recognised as revenue, Borrowings are initially recognised at their fair value. but commissions earned from acting as agent are After initial recognition, all borrowings are measured recognised in revenue. at amortised cost using the effective interest method. 3.28 Critical Accounting Estimates and 3.24 Income Tax Assumptions Income tax on the profit or loss for the year comprises In preparing these financial statements, Council has current and deferred tax. Income tax is recognised in made estimates and assumptions concerning the the Statement of Comprehensive Income except to future. These estimates and assumptions may differ the extent that it relates to items recognised directly from the subsequent actual results. Estimates and in equity, in which case it is recognised in equity. judgements are continually evaluated and are based on historical experience and other factors, including Current tax is the expected tax payable on the taxable expectations or future events that are believed to be income for the year, using tax rates enacted or reasonable under the circumstances. The estimates substantively enacted at the balance sheet date, and and assumptions that have a significant risk of causing any adjustment to tax payable in respect of previous a material adjustment to the carrying amounts of years. assets and liabilities within the next financial year are discussed below: Deferred tax is provided using the balance sheet liability method, providing for temporary differences Infrastructural Assets between the carrying amounts of assets and liabilities There are a number of assumptions and estimates for financial reporting purposes and the amounts used used when performing the depreciated replacement for taxation purposes. cost valuations over infrastructural assets. These include: A deferred tax asset is recognised only to the extent • The physical deterioration and condition of an that it is probable that future taxable profits will be asset, for example, the Council could be carrying available against which the asset can be utilised. an asset at an amount that does not reflect Deferred tax assets are reduced to the extent that it is its actual condition. This is particularly so for no longer probable that the related tax benefit will be those assets which are not visible, for example realised. stormwater, wastewater and water supply pipes that are underground. This risk is minimised by 3.25 Cost Allocation Council performing a combination of physical Taupo District Council has derived the net cost of inspections and condition modelling assessments of service for each significant activity of the Council underground assets; using the following cost allocation system: • Estimating any obsolescence or surplus capacity of an asset; and Direct costs (costs directly attributable to a significant • Estimates are made when determining the activity) are charged directly to significant activities. remaining useful lives over which the asset will be depreciated. These estimates can be impacted by Indirect costs (those costs which cannot be identified the local conditions, for example, weather patterns in an economically feasible manner, with a specific and traffic growth. If useful lives do not reflect the significant activity) are charged to significant activities actual consumption of the benefits of the asset, based on cost drivers and related activity/usage then Council could be over or under estimating information.
124 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 the annual depreciation charge recognised as an expense in the statement of financial performance. To minimise this risk, Council’s infrastructural 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 Council’s asset management planning activities, which provides Council with further assurance over its useful life estimates. Experienced independent valuers perform the Council’s infrastructural asset revaluations. Critical Judgements in Applying Council’s Accounting Policies Management has exercised the following critical judgements in applying the Council’s accounting policies for the period ended 30 June 2010. Classification of Property Council owns a number of properties, which are maintained primarily to provide housing to pensioners. Receipt of market-based rental from these properties
is incidental to holding these properties. These ACCOUNTING POLICIES properties are held for service delivery objectives as part of the Council’s social housing policy. These properties are accounted for as property, plant and equipment.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 125 Notes to the Financial Statements
1 Summary Cost of Actual Actual Actual Estimate Actual Actual Actual Services 2010 2010 2010 2010 2009 2009 2009 $000 $000 $000 $000 $000 $000 $000 Revenue Expenses Net Net Revenue Expenses Net
Strong Safe & Healthy 63,295 41,747 (21,548) (5,939) 41,906 39,714 (2,192) Communities
Sustainable Environment 14,508 18,639 4,131 1,264 13,138 14,911 1,773
Growth & Economic 10,424 13,319 2,895 (4,249) 12,977 7,177 (5,800) Development
Working Together 158 6,211 6,053 6,004 164 6,877 6,713
Activity revenues and 88,385 79,916 (8,469) (2,920) 68,185 68,679 494 expenses
Targeted rates included (16,570) - 16,570 (16,562) (15,192) 15,192 in note 2
Rates Penalties included (386) - 386 200 (428) 428 in Note 2
Other revenue & other (8,224) - 8,224 11,818 (10,133) 10,133 gains in Note 3
Internal transactions (571) (1,197) (626) (600) (524) (1,075) (551)
Total Council 62,634 78,719 16,085 (8,064) 41,908 67,604 25,696
Taupo Airport 372 750 378 (3) 402 662 260
Total Group 63,006 79,469 16,463 (8,067) 42,310 68,266 25,956
Internal transactions
Each significant activity is stated inclusive of internal costs and revenues, and includes targeted rates (refer note 2). In order to fairly reflect the total external operations of the Council in the statement of comprehensive income, these transactions are eliminated as shown above, except for the revenue from internal rates eliminated against general rates (refer note 2), the revenue from internal water rates eliminated against water supply (refer note 2)
126 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 2 Rates Revenue - Council only Actual Estimate Actual 2010 2010 2009 $000 $000 $000
General rates (excluding internal rates) 26,510 26,823 25,133
Less rates remissions (800) (528) (649)
General rates 25,710 26,295 24,484
Targeted rates attributable to activities:
Lake Protection 1,396 1,400 1,382
Water Supply 4,479 4,515 4,308
Sewage Disposal 7,695 7,676 6,701
Refuse Disposal 1,608 1,601 1,533
Marketing Development 1,055 1,037 952
Mainstreet Rate 166 165 166
Mainstreet Security Rate 41 41 35
Whakamaru Fire Protection 4 4 3
Taupo Town Centre 126 123 112
Total targeted rates 16,570 16,562 15,192
Rates Penalties 386 200 428
less internal water rates (187) 0 (137)
Total rates revenue 42,479 43,057 39,967 STATEMENTS
Rates remissions NOTES TO FINANCIAL
Under Council’s remissions policies, remissions are allowed for Lake Taupo lakebed and lakeshore reserve; community, sporting, and other organisations; non-income producing, unoccupied Maori freehold land in multiple ownership and in undeveloped state; and penalties in certain circumstances and at Council’s discretion. Rates Remissions were included in expenditure in the Annual Plan, however to show a true rates revenue they have been netted off income for both actual and plan.
Non-rateable properties
In accordance with the Local Government (Rating) Act 2002, certain properties cannot be rated for general rates. This includes schools, places of worship, public gardens and reserves. These non- rateable properties, where applicable, may be subject to targeted rates in respect of water supply, sewage disposal and refuse disposal.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 127 3 Revenue by nature Council Council Council Group Group Actual Estimate Actual Actual Actual 2010 2010 2009 2010 2009 $000 $000 $000 $000 $000
Revenue from significant activities
NZ Transport Agency - Roading subsidy 51,349 28,551 29,136 51,349 29,136
Other Government grants & subsidies 318 62 263 318 263
Grants/Donations 145 78 219 145 219
User Charges 7,543 8,000 6,262 7,785 42,310
Regulatory Income 1,831 2,811 2,210 1,831 2,210
Rental income from investment properties - - - 130 111
Infringements and fines 409 328 398 409 398
Petrol Tax 372 350 376 372 376
Development/Financial contributions 667 3,132 3,044 667 3,044
Revenue from significant activities 62,634 43,312 41,908 63,006 78,067
Other revenue Interest income 5,608 6,699 5,959 5,619 5,964
Dividend income 8 - 13 8 13
Vested assets - 4,400 2,137 - 2,137
First time recognition of assets 716 - 12 716 12
Other income 201 - 194 201 194
Other revenue 6,533 11,099 8,315 6,544 8,320
Other gains
Non-financial instruments
Changes in fair value of forestry assets 708 719 - 708 - (note 13)
Gains on disposal of property, plant and 29 - 1,005 29 1,005 equipment
Non-financial instruments gains 737 719 1,005 737 1,005
Financial instruments
Changes in value of term deposit - - 238 - 238 investments
Realised gain/(loss) on shares 150 - 575 150 575
Unrealised gain on derivatives not hedge 804 - - 804 813 accounted
Financial instruments gains 954 - 813 954
Other gains/(losses) 1,691 719 1,818 1,691 1,818
128 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Subdivisional Vested Assets
The Council has vested to it certain infrastructural assets and land as part of the subdivisional approval process. Council recognises the value of these vested assets as other income in its Statement of Comprehensive Income, with an equivalent increase in fixed assets.
Council Council Actual Actual The vested assets comprise: 2010 2009 $000 $000
Roads - 626
Wastewater - 538
Water - -
Stormwater - 973
Reserves - land - -
Other - -
Total vested assets - 2,137
Government Grants
There are no unfulfilled conditions or other contingencies attached to any recognised government grants. STATEMENTS NOTES TO FINANCIAL
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 129 4 Operating Expenditure Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Employee benefit expenses Salaries and wages 19,159 18,308 19,298 18,441 Increases/(decreases) in employee benefit liabilities 72 687 73 694 Severance payments (see below) 13 2 13 2 Contribution to superannuation schemes 217 199 217 199 Employee benefit expenses 19,461 19,196 19,601 19,336
Depreciation and Amortisation Depreciation (see note 12) 16,016 13,587 16,258 13,829 Amortisation (see note 14) 232 246 235 246 Depreciation and Amortisation 16,248 13,833 16,493 14,075
Finance costs Interest on borrowings 6,459 5,536 6,459 5,547 Finance charges on leased assets 46 34 46 34 Finance costs 6,505 5,570 6,505 5,581
Other expenses Audit fees Audit fees paid to Audit NZ for Council and Group entity 107 116 116 125 audits Audit fees paid to Audit NZ for audit of the LTCCP & - 83 - 83 amendments Councillor remuneration (note 24) 385 375 385 375 Community Board remuneration (note 24) 63 62 63 62 Directors fees - - 4 4 Loss on disposal of property, plant and equipment 1,991 965 1,991 965 Donations 226 261 226 261 Minimum lease payments under operating leases 259 323 263 329 Impairment of accounts receivable (note 8) 114 211 114 210 Changes in value of term deposit investments 19 (31) 19 (31) Loss on revaluation of buildings 979 - 979 - Changes in fair value of investment properties (note 15) 238 217 406 255 Changes in fair value of share investments 307 - 307 - Property, plant and equipment impairment (note 12) 587 - 587 - Changes in fair value of forestry assets (note 13) - 150 - 150 Unrealised loss on derivatives not hedge accounted 5,010 1,808 5,010 1,808 Other costs 26,220 24,835 26,400 25,048 Other expenses 36,505 29,375 36,870 29,644
Total Operating Expenses 78,719 67,974 79,469 68,636
Severance payments In 2009/10 there was a severance payment to one employee totalling $12,956 (2009 1 employee, $1,983).
130 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 5 Taxation Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Relationship between tax expense and accounting profit Operating surplus before taxation 33,500 22,175 33,133 21,920 Tax calculated @ 30% 10,050 6,653 9,940 6,576 Less tax effect of: Non taxable income (10,050) (6,653) (10,025) (6,652) Taxation expense/(credit) - - (85) (76)
Current tax expense Current year taxation - - - - Deferred taxation - - (85) (76) Taxation expense - - (85) (76)
Deferred Tax The tables below represent both Council and Group as there are no deferred tax entries for council.
Actual
Property, Non- plant & deductible Group 2010 equipment provisions Tax losses Total $000 $000 $000 $000
Opening balance 1,253 (5) (317) 931 STATEMENTS Charged to income (35) - (36) (71)
Change to tax rate (38) - 23 (15) NOTES TO FINANCIAL Charged to equity (43) - - (43) Closing balance 1,137 (5) (330) 802
Actual Property, Non- plant & deductible Group 2009 equipment provisions Tax losses Total $000 $000 $000 $000 Opening balance 1,282 (4) (271) 1,007 Charged to income (29) (1) (46) (76) Closing balance 1,253 (5) (317) 931
Council has not recognised a deferred tax asset of $7,537 in relation to tax losses of $26,918 (2009 $5,340). Data Capture Systems Limited, a subsidiary of Council, has unrecognised tax losses as at 30 June 2010 of $225,325 to carry forward (2009 $225,325). The tax effect of these losses is $67,598 (2009 $67,598). The carried forward losses originated from the activity of Taupo Information Centre Limited, that company later being renamed Data Capture Systems Limited.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 131 6 Equity Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Accumulated Funds Opening balance 836,213 807,378 838,215 809,469 Net Surplus/(Deficit) attributable to Council 33,500 22,175 33,359 22,086 869,713 829,553 871,574 831,555 Transfers from reserves: Council created reserves 71,655 50,018 71,655 50,018 From asset revaluation reserve on disposal of property, 455 61 455 61 plant and equipment Transfers to reserves: Restricted reserves - 232 - 232 Council created reserves (66,165) (43,651) (66,165) (43,651) Total Accumulated Funds 875,658 836,213 877,519 838,215
Council Created Reserves Opening balance 100,971 107,338 100,971 107,338 Transfer from accumulated funds 66,165 43,651 66,165 43,651 Transfer to accumulated funds (71,655) (50,018) (71,655) (50,018) Total Council Created Reserves 95,481 100,971 95,481 100,971
Council Created Reserves are made up as follows: Depreciation reserves 21,775 24,187 21,775 24,187 Development contributions 8,120 6,950 8,120 6,950 TEL Fund 52,849 53,409 52,849 53,409 Disaster recovery 1,663 1,593 1,663 1,593 Other special purpose 11,074 14,832 11,074 14,832 Total Council Created Reserves 95,481 100,971 95,481 100,971
Restricted Reserves Opening balance - 232 - 232 Transfer from (to) Accumulated Funds - (232) - (232) Total Restricted Reserves - - - - These restricted reserves are sinking funds put aside for the repayment of loans. A separate section on page 176 details the history of the TEL fund.
Revaluation Reserves Property, Plant and Equipment Opening balance 214,998 167,196 216,461 168,659 Change in asset value (55,775) 47,863 (55,580) 47,863 Transfer to retained earnings on disposal of property, plant (455) (61) (455) (61) and equipment Plus tax on equity items - - 44 - less non-controlling interest share in change in asset value - - (19) - Closing balance - Property, Plant and Equipment 158,768 214,998 160,451 216,461
132 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Property, Plant and Equipment Revaluation Reserves made up as follows:
Land under roads 51,091 71,432 51,091 71,432 Infrastructural buildings - 456 - 456 Reserves 10,739 25,087 10,739 25,087 Other restricted land 848 730 848 730 Operational Land 15,805 28,986 16,705 29,686 Operational buildings - 7,646 17 7,665 Roading 32,696 32,798 32,696 32,798 Water 22,927 23,056 22,927 23,056 Wastewater 11,642 11,787 11,642 11,787 Land Improvements - - 54 52 Stormwater 13,020 13,020 13,055 13,053 Runways - - 668 650 Fencing - - 8 8 Streetlighting - - 1 1 Closing balance - Property, Plant and Equipment 158,768 214,998 160,451 216,461
Fair value through other comprehensive income -
Investments in Shares Opening balance 188 155 188 155 Change in asset value 2 33 2 33 Closing balance - Investments in Shares 190 188 190 188
Cash Flow Hedge Reserves Opening balance - 237 - 237 Change in asset value - (237) - (237) Closing balance - Cashflow Hedge Reserves - - - -
Total Revaluation Reserves 158,958 215,186 160,641 216,649
Non-controlling Interest STATEMENTS Opening balance - - 2,953 3,043 Share of revaluation reserve change in asset value - - 19 - NOTES TO FINANCIAL Equity injection by Crown - - 86 - Share of surplus - - (141) (90) Total Non-controlling Interest - - 2,917 2,953
7 Cash and Cash Equivalents Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Cash at bank and in hand 355 125 357 126 Call deposits 16,728 1,905 16,765 1,987 Short term deposits of less than 3 months 10,036 5,900 10,036 5,900 Total cash and cash equivalents 27,119 7,930 27,158 8,013
The carrying value of short-term deposits with maturity dates of three months or less approximates their fair value. Refer to note 10 for weighted average effective interest rate for cash and cash equivalents.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 133 8 Trade and Other Receivables Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Rates Receivable 2,437 2,293 2,437 2,293 General Debtors 5,618 1,469 5,643 1,522 Related Party Receivables (Note 22) 17 44 1 13 Accruals 2,664 4,659 2,664 4,659 Prepayments 407 291 419 297 11,143 8,756 11,164 8,784 Less Provision for Impairment 620 695 620 695 Total Net Trade and Other Receivables 10,523 8,061 10,544 8,089
Made up of: Current 10,523 8,061 10,544 8,089 Non-current - - - - Total Net Trade and Other Receivables 10,523 8,061 10,544 8,089
Debtors and other receivables are non-interest bearing and receipt is normally on 30day terms, therefore the carrying value of debtors and other receivables approximates their fair value. Taupo District Council does not provide for any impairment on rates receivable, with the exception of multiple owned Maori Freehold Land, 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 circumstance. Where such repayment plans are in place, debts are discounted to their present value of future payments if the impact of discounting is material. These powers allow Taupo District Council to commence legal proceedings to recover any rates that remain unpaid 4 months after due date for payment. If payment has not been made within 3 months of the Court’s judgement, then Taupo District Council can apply to the Registrar of the High Court to have the judgement enforced by sale or lease of the rating unit. The carrying amount of receivables that would otherwise be impaired, whose terms have been renegotiated is $58,363 (2009 $22,880).
The status of receivables as at 30 June 2010 and 2009 are detailed below:
Actual 2010 Actual 2009
Gross Impairment Net Gross Impairment Net Council $000 $000 $000 $000 $000 $000
Not past due 5,571 - 5,571 516 - 516 Past Due 1-30 days 125 - 125 362 - 362 Past due 31-60 days 776 - 776 1,454 - 1,454 Past due >60 days 1,600 (620) 980 1,474 (695) 779 Total 8,072 (620) 7,452 3,806 (695) 3,111
Group Not past due 5,574 - 5,574 531 - 531 Past Due 1-30 days 129 - 129 364 - 364 Past due 31-60 days 776 - 776 1,454 - 1,454 Past due >60 days 1,602 (620) 982 1,479 (695) 784 Total 8,081 (620) 7,461 3,828 (695) 3,133
134 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 The impairment provision has been calculated based on expected losses for Taupo District Council’s pool of debtors. Expected losses have been determined based on a review of specific debtors as detailed below:
Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2008
Individual impairment 448 215 448 215 Collective impairment 172 480 172 480 Total provision for impairment 620 695 620 695
Individually impaired receivables have been determined to be impaired because of the significant financial difficulties being experienced by the debtor. An analysis if these individually impaired debtors are as follows:
Current - - - - Past Due 1-30 days - - - - Past due 31-60 days - - - - Past due >60 days 448 215 448 215 Total individual impairment 448 215 448 215
Movements in the provision for impairment of receivables are as follows:
Opening balance 695 657 695 658 Additional Provisions made during the year (25) 138 (25) 138 Receivables written off during the year (50) (100) (50) (101) Closing balance 620 695 620 695
Taupo District Council holds no collateral as security or other credit enhancements over receivables that are either past due or impaired. STATEMENTS 9 Inventories Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 NOTES TO FINANCIAL $000 $000 $000 $000
Held for distribution - water reticulation spare parts 77 103 77 103 - parks & reserves chemicals 7 18 7 18 - wastewater spare parts 69 67 69 67 - wastewater chemicals 19 19 19 19 - swimming pool chemicals 3 11 3 11 - other 37 15 37 15
Commercial inventories - held for use in the provision of services 245 317 245 317
Total Inventories 457 550 457 550
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 135 10 Other Financial Assets Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000 Current Held to maturity Local government and corporate bonds 998 2,002 998 2,002 Fair value through other comprehensive income Term deposits 4,439 23,710 4,664 23,821
Total Current Investments 5,437 25,712 5,662 25,823
Non-Current Held to maturity Local government and corporate bonds 49,237 50,292 49,237 50,292 Fair Value through the income statement Community Loan 91 88 91 88 Fair value through other comprehensive income Term deposits 1,200 4,299 1,200 4,299 Other shares in companies 2,299 279 2,299 279 Subsidiaries at Cost Data Capture Systems Ltd - - - - Taupo Airport Authority 2,861 2,861 - -
Total Non-Current Investments 55,688 57,819 52,827 54,958
Interest Rates Weighted Average Effective Interest Rates are: Short term deposits with maturities of less than 3 months 3.66% 3.75% 3.66% 3.74% Current Term deposits 6.25% 4.26% 6.16% 4.26% Non-current Term Deposits 7.50% 6.25% 7.50% 6.25% Local government and corporate bonds 8.44% 8.51% 8.44% 8.51%
Actual Actual Actual Actual Actual 2010 2010 2010 2010 2010 $000 $000 $000 $000 $000 <6 mths 6-12 mths 1-2 yrs 2-5 yrs >5 yrs
Maturities - Council
Term deposits 14,475 - - 1,200 - Local government and corporate bonds - 998 - 47,237 2,000
14,475 998 - 48,437 2,000
Maturities - Group Term deposits 14,700 - - 1,200 - Local government and corporate bonds - 998 - 47,237 2,000
14,700 998 - 48,437 2,000
136 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Actual Actual Actual Actual Actual 2009 2009 2009 2009 2009 $000 $000 $000 $000 $000 <6 mths 6-12 1-2 yrs 2-5 yrs >5 yrs mths Maturities - Council
Term deposits 29,610 - 4,299 - -
Local government and corporate bonds 2,002 - 997 36,295 13,000
31,612 - 5,296 36,295 13,000
Maturities - Group
Term deposits 29,721 - 4,299 - -
Local government and corporate bonds 2,002 - 997 36,295 13,000
31,723 - 5,296 36,295 13,000
Subsidiaries Taupo District Council has 50% ownership of the Taupo Airport Authority Joint Venture. The Crown is the owner of the other 50%. The Taupo Airport Authority balance date is 30 June. Taupo District Council has 100% ownership (150 shares) of the subsidiary Data Capture Systems Limited (2009 150 shares). Taupo District Council has 100% ownership (100 shares) of the subsidiary Destination Lake Taupo Limited (2009 100 shares).
Other Shares in Companies Council holds the following equity investments: NZ Local Government Insurance Corporation Ltd 83,971 shares at fair value of $3.05 (2009 $3.01) each. King Country Energy Limited 6,129 shares at fair value of $3.90 (2009 $4.11) each. Local Authority Shared Services Ltd 1 ordinary capital share (uncalled) of $1,000 (2009 $1000).
BOP Local Authority Shared Services Ltd 1 ordinary capital share of $1,000 (2009 $1000). STATEMENTS HSBC Holdings 45,000 shares at fair value of $13.37 each (TEL Fund).
Tesco 45,000 shares at fair value of $8.26 each (TEL Fund). NOTES TO FINANCIAL Aviva 100,000 shares at fair value of $6.83 each (TEL Fund). Marks & Spencers 50,000 shares at fair value of $7.24 each (TEL Fund).
11 Non-Current Assets Held for Sale Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Buildings 516 - 516 -
Land 26,367 116 26,367 116
Total Non-Current Assets Held for Sale 26,883 116 26,883 116
The non-current assets held for sale are large tracks of land formerly put aside for commercial land subdivision projects. Council resolved on 27 April 2010 to defer its role as a property developer and actively promote the sale of its non-committed land assets hence the significant increase in the amount of land that has been identified for this purpose. The land is only shown in this category if it has been approved by Council for sale, the land is being actively marketed, and it is expected to sell within the next financial year.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 137 12 Property, Plant and Cost or Accumulated Net Book Cost or Accumulated Net Book Equipment Valuation Depreciation Value Valuation Depreciation Value 2010 2010 2010 2009 2009 2009 $000 $000 $000 $000 $000 $000
Infrastructural Assets At Valuation Land under roads 288,303 - 288,303 308,440 - 308,440 Infrastructural Buildings 4,747 - 4,747 4,676 220 4,456 Roading network 280,255 9,184 271,071 280,834 406 280,428 Wastewater 89,870 2,010 87,860 90,380 - 90,380 Water 52,103 1,695 50,408 52,922 - 52,922 Stormwater 49,052 783 48,269 49,052 - 49,052 At Cost Roading network 9,797 317 9,480 6,368 4,373 1,995 Land under roads - - - 203 - 203 Infrastructural Buildings - - - 831 100 731 Wastewater 10,683 1,649 9,034 - - - Water 5,264 17 5,247 18 18 - Stormwater 1,086 8 1,078 8 8 - Solid Waste 3,191 2,090 1,101 2,358 1,827 531 Items under construction 108,623 - 108,623 51,443 - 51,443 Council Infrastructural 902,974 17,753 885,221 847,533 6,952 840,581 Assets
Restricted Assets At Valuation Reserves 145,608 - 145,608 160,208 - 160,208 Other 1,948 - 1,948 1,830 - 1,830 At Cost Reserves - - - 913 - 913 Council Restricted 147,556 - 147,556 162,951 - 162,951 Assets
Operational Assets At Valuation Land 48,052 - 48,052 61,883 - 61,883 Buildings 53,457 - 53,457 50,679 2,055 48,624 At Cost Land - - - 20,276 - 20,276 Buildings - - - 14,084 1,989 12,095 Machinery, vehicles and 9,762 5,735 4,027 9,455 5,598 3,857 plant Furniture, office equipment & recreational 19,227 6,938 12,289 15,220 5,943 9,277 fixtures Library books 3,988 3,173 815 3,677 2,972 705 Heritage assets 1,485 - 1,485 1,325 - 1,325 Computers and fitness 1,357 889 468 1,530 986 544 equipment (leased) Items under construction 791 - 791 3,110 - 3,110 Council Operational 138,119 16,735 121,384 181,239 19,543 161,696 Assets
Total Council 1,188,649 34,488 1,154,161 1,191,723 26,495 1,165,228
138 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Cost or Accumulated Net Book Cost or Accumulated Net Book Valuation Depreciation Value Valuation Depreciation Value 2010 2010 2010 2009 2009 2009
Taupo Airport
Airport Infrastructure 6,392 440 5,952 6,392 220 6,172 (at Valuation) Airport Infrastructure 9 1 8 8 - 8 (at Cost)
Land (at Valuation) 3,500 - 3,500 3,300 - 3,300
Buildings (at Valuation) 382 - 382 337 19 318
Buildings (at Cost) 4 - 4 67 4 63
Machinery, vehicles and 126 119 7 126 115 11 plant Furniture and office 75 47 28 77 55 22 equipment
Taupo Airport Assets 10,488 607 9,881 10,307 413 9,894
Total Group 1,199,137 35,095 1,164,042 1,202,030 26,908 1,175,122
Infrastructural assets — Council manages infrastructural assets in accordance with Asset Management Plans. These plans detail the level of service required, the current physical extent, condition and capacity of the network and the timing, extent and cost of work required to maintain and restore the network’s defined capacity in future years.
Restricted assets — Restricted assets cannot be disposed of because of legal or other restrictions.
Computers and fitness equipment — These assets are subject to finance leases.
Impairment — Asset values were written down by $587,000 in 2009/10 to provide for impairment. STATEMENTS NOTES TO FINANCIAL
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 139 Movements for Net Book Asset Depreciation Revaluation Net Book 2009/10 Value Reclassns Additions Disposals Expense Increment Value 1/7/2009 2010 2010 2010 2010 2010 30/6/2010 $000 $000 $000 $000 $000 $000 $000
Infrastructural Assets Roading network 282,423 (27) 3,470 (523) (4,792) - 280,551 Land under roads 308,643 - - - - (20,340) 288,303 Infrastructural buildings 5,187 - 663 (87) (184) (832) 4,747 Wastewater 90,380 - 10,683 (492) (3,677) - 96,894 Water 52,922 - 5,248 (798) (1,717) - 55,655 Stormwater 49,052 - 1,077 - (782) - 49,347 Solid Waste 531 - 833 - (263) - 1,101 Items under construction 51,443 - 57,180 - - - 108,623
Council Infrastructural 840,581 (27) 79,154 (1,900) (11,415) (21,172) 885,221 Assets
Restricted Assets Reserves 161,121 (2,550) 955 - - (13,918) 145,608 Other 1,830 - - - - 118 1,948 Items under construction ------Council Restricted 162,951 (2,550) 955 - - (13,800) 147,556 Assets
Operational Assets Land 82,159 (23,817) 3,320 - - (13,610) 48,052 Buildings 60,719 - 3,734 (590) (2,237) (8,169) 53,457 Machinery, vehicles and 3,857 - 1,155 (239) (746) - 4,027 plant Furniture, office equipment & recreational 9,277 27 4,231 (3) (1,243) - 12,289 fixtures Library books 705 - 311 - (201) - 815 Heritage assets 1,325 - 160 - - - 1,485 Computers and fitness 544 - 198 (100) (174) - 468 equipment (leased) Items under construction 3,110 - - (2,319) - - 791
Council Operational 161,696 (23,790) 13,109 (3,251) (4,601) (21,779) 121,384 Assets
Total Council 1,165,228 (26,367) 93,218 (5,151) (16,016) (56,751) 1,154,161
Taupo Airport Airport Infrastructure 6,180 - 1 - (221) - 5,960 Land 3,300 - - - - 200 3,500 Buildings 381 - 22 - (13) (4) 386 Machinery, vehicles and 11 - - - (4) - 7 plant Furniture and office 22 - 10 - (4) - 28 equipment Taupo Airport Assets 9,894 - 33 - (242) 196 9,881
Total Group 1,175,122 (26,367) 93,251 (5,151) (16,258) (56,555) 1,164,042
140 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Movements for Net Book Asset Depreciation Revaluation Net Book 2008/09 Value Reclassns Additions Disposals Expense Increment Value 1/7/2008 2009 2009 2009 2009 2009 30/06/2009 $000 $000 $000 $000 $000 $000 $000
Infrastructural Assets Roading network 281,477 28 6,129 (496) (4,715) - 282,423 Land under roads 308,643 - - - - - 308,643 Infrastructural buildings 4,606 23 717 - (159) - 5,187 Wastewater 52,647 (23) 17,482 (208) (2,574) 23,056 90,380 Water 41,414 - 923 (2) (1,200) 11,787 52,922 Stormwater 34,615 - 2,016 - (599) 13,020 49,052 Solid Waste 568 - - - (37) - 531 Items under construction 37,650 - 13,793 - - - 51,443
Council Infrastructural 761,620 28 41,060 (706) (9,284) 47,863 840,581 Assets
Restricted Assets Reserves 161,051 (28) 98 - 0 - 161,121 Other 1,830 - - - - - 1,830
Council Restricted 162,881 (28) 98 - - - 162,951 Assets
Operational Assets Land 62,661 152 20,587 (1,241) - 82,159 Buildings 55,941 - 6,978 (164) (2,036) - 60,719 Machinery, vehicles and 3,736 - 1,142 (261) (760) - 3,857 plant Furniture, office equipment & recreational 8,476 - 1,848 (9) (1,038) - 9,277 fixtures Library books 653 - 242 - (190) - 705 STATEMENTS Heritage assets 1,325 - - - - - 1,325 Computers and fitness 389 - 481 (47) (279) - 544 NOTES TO FINANCIAL equipment (leased) Items under construction 7,445 - - (4,335) - - 3,110
Council Operational 140,626 152 31,278 (6,057) (4,303) - 161,696 Assets
Total Council 1,065,127 152 72,436 (6,763) (13,587) 47,863 1,165,228
Taupo Airport Airport Infrastructure 6,392 - 8 - (220) - 6,180 Land 3,300 - - - - - 3,300 Buildings 390 - 4 - (13) - 381 Machinery, vehicles and 12 - 5 - (6) - 11 plant Furniture and office 19 - 6 - (3) - 22 equipment Taupo Airport Assets 10,113 - 23 - (242) - 9,894
Total Group 1,075,240 152 72,459 (6,763) (13,829) 47,863 1,175,122
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 141 13 Biological Assets - Forestry Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Opening Balance 4,130 4,157 4,130 4,157 Capitalisation of forestry costs 109 123 109 123 Gains/(losses) arising from changes in fair value 708 (150) 708 (150)
Biological assets at 30 June 4,947 4,130 4,947 4,130
The forest estate comprises a number of relatively small forests and two larger forests (Rangitaiki & Tirohanga) in the Taupo basin. The main species is radiata pine with an area of semi-mature Douglas fir present in Rangitaiki forest. The total net stocked area of the estate is estimated to be 1,060 hectares.
No harvesting has taken place this year (2009 Nil).
Independent valuers, Chandler Fraser Keating Limited have valued the forestry assets as at 30 June 2010. The following assumptions have been adopted in determining the fair value of forestry assets: — a pre tax discount rate of 11% has been used in discounting the present value of expected cashflows — notional land rental costs have been included for freehold land — forests have been valued on a going concern basis and includes the value of the existing crops on a single rotational basis — costs are current average costs. No allowance has been made for cost improvements in future operations. — log prices are based on a five year historical rolling average.
The increase in value has come about largely through forest growth and an improved assessment of long- term log prices. Long term log prices are assessed as the average prices prevailing over the past 30 quarters. During the past two years there have been periods of relatively high log prices, particularly in the export-log market, and these are starting to influence the 30-quater average.
Financial risk management strategies Council is exposed to financial risks arising from changes in timber prices. As Council is a long-term forestry investor and does not expect timber prices to decline significantly in the foreseeable future, it has not taken any measures to manage the risk of a decline in timber prices.
14 Intangible Assets Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Software Opening carrying amounts Cost 2,046 1,818 2,059 1,818 Less Accumulated Amortisation (1,138) (894) (1,138) (894) Opening carrying amounts 908 924 921 924
Movements Purchases 216 230 216 243 Amortisation (232) (246) (235) (246)
Closing carrying amounts - Intangible assets 892 908 902 921
142 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 15 Investment Properties Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Opening Balance 2,883 - 3,110 266 Additions from acquisitions - 3,100 - 3,100 Disposal of properties - - (227) - Fair value gains/(losses) on valuation (Note 3) (238) (217) (238) (256)
Investment Properties at 30 June 2,645 2,883 2,645 3,110
16 Trade and Other Payables Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Trade payables 10,869 10,319 10,885 10,330 Deposits/Bonds/Provisions 347 489 347 489 Accrued expenses 813 2,051 835 2,084 Interest payable 350 21 350 21 Income in Advance 1,442 1,430 1,468 1,512 Amounts due to related parties (Note 22) 41 4 7 4 Councillors’ fees payable 29 34 29 34
Total Trade and Other Payables 13,891 14,348 13,921 14,474
Accounts payable are non-interest bearing and are normally settled on 30-day terms, therefore the carrying values of accounts payables approximates their fair value.
17 Employee Benefit Liabilities Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 STATEMENTS $000 $000 $000 $000 NOTES TO FINANCIAL Accrued pay 508 438 510 439 Annual leave 2,317 2,360 2,337 2,379 Retirement gratuities & long service leave 576 527 576 527 Sick leave 50 54 50 54
Total Employee Benefit Liabilities 3,451 3,379 3,473 3,399
Made up of: Current 3,053 3,010 3,075 3,030 Non-current 398 369 398 369
Total Employee Benefit Liabilities 3,451 3,379 3,473 3,399
Opening Balance 3,379 2,692 3,399 2,704 Additional provisions made during the year 2,961 2,915 2,983 2,935 Amounts used during the year (2,867) (2,199) (2,887) (2,211) Discount unwinding (22) (29) (22) (29)
Balance 30 June 3,451 3,379 3,473 3,399
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 143 18 Provisions Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Council has made provision for landfill after-care liability.
Landfill liability 41 38 41 38
Opening balance 38 35 38 35
Additional provisions made during the year 3 3 3 3
Closing balance 41 38 41 38
Taupo District Council gained a resource consent in September 1998 to operate the Broadlands Road Landfill. The Council has responsibility under the resource consent to provide ongoing maintenance and monitoring of the landfill after the site is closed.
There are closure and post-closure responsibilities such as the following:
Closure responsibilities: Post-closure responsibilities:
Final application and vegetation Treatment and monitoring of leachate Drainage control features Ground water and surface monitoring Facilities for leachate collection and monitoring Gas monitoring and recovery Facilities for water quality monitoring Implementation of remedial measures such as Facilities for monitoring and recovery of gas needed for cover and control systems Ongoing site maintenance for drainage systems, final cover and vegetation
The management of the landfill will influence the timing of recognition of some liabilities, for example, the current landfill consists of a series of new cells being progressively opened as old ones are completed. Each of these require additional capital expenditure and the recalculation of the landfill aftercare provision.
Capacity of the Site
The estimated remaining capacity of the site as at 30 June 2010 is approximately 507,000 cubic metres (2009 534,000 cubic metres).
The estimated remaining life as at 30 June 2010 is 20 years (2009 21 years).
Estimates of the remaining capacity and life have been made by Council’s engineers based on historical volume information and early results from the new Solid Waste Management Strategy.
The cash outflows for landfill post-closure are expected to occur between 2030 and 2035. The long term nature of the liability means that there are inherent uncertainties in estimating costs that will be incurred. The provision has been estimated taking into account existing technology and is discounted using a discount rate of 7.75%.
144 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 19 Term Borrowing Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000 Borrowing liability Current Loans 40,040 1,638 40,040 1,638 Lease Liabilities 280 286 280 286 40,320 1,924 40,320 1,924
Non-current Loans 97,069 102,625 97,069 102,625 Lease Liabilities 245 339 245 339 97,314 102,964 97,314 102,964
Total Public Debt 137,634 104,888 137,634 104,888
The value of Council’s debt subject to fixed interest rates is $0 (2009 $1,607,871). Council’s floating rate debt is secured bank funding issued under committed loan facilities with both the ANZ & BNZ. The interest rates on the ANZ and the two year BNZ facility are repriced quarterly at the 90- day bank bill rate plus margin. The interest rate on the four year BNZ facility is repriced quarterly at BNZ’s 90-day committed cash advance facility rate plus margin. The $40 million facility with the ANZ matures in January 2012, the $80 million facility with the BNZ has two tranches of $40 million each, the first is a two year evergreen facility which expires in July 2010; the second is a four year evergreen facility. Council has entered into $181 million of interest rate swaps to provide fixed rate cover on the committed loan facility. Refer to note 20 for further details. Council manages its borrowing in accordance with its funding and financial policies, which includes a Treasury Management Policy. This policy has been adopted as part of the Council’s Long Term Council Community Plan 2009-2019. Security All of Council’s secured loans are secured under the terms of the Debenture Trust Deed between the Council and Trustees Executors, as Trustee. Security is by a charge over the Council’s ability to levy rates in favour of the Trustee. Pursuant to the Debenture Trust Deed Council has issued debenture and security stock certificates
totalling $200m at 30 June 2010 to secure the various debentures issued, bank loan facilities, guarantees STATEMENTS issued on behalf of Council and other general banking facilities.
Lease liabilities are effectively secured, as the rights to the leased asset revert to the lessor in the event of NOTES TO FINANCIAL default. Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000 Repayment terms Payable no later than one year 40,320 1,924 40,320 1,924 Later than one, not later than two years 40,229 40,278 40,229 40,278 Later than two, not later than five years 57,085 62,686 57,085 62,686 Later than five years - - - -
137,634 104,888 137,634 104,888
Council Council Group Group Interest rates Actual Actual Actual Actual Weighted average effective interest rates on borrowing’s 2010 2009 2010 2009 (both current & non current): Loans 5.63% 5.74% 5.63% 5.74% Lease Liabilities 14.62% 14.54% 14.62% 14.54%
Overall weighted average 5.70% 5.82% 5.70% 5.82%
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 145 Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Analysis of Finance Lease Liabilities
Payable no later than one year 316 326 316 326 Later than one, not later than two years 189 238 189 238 Later than two, not later than five years 84 150 84 150
589 714 589 714
Future Finance Charges (65) (89) (65) (89)
Recognised as a liability 524 625 524 625
Representing Lease Liabilities: Current 280 286 280 286 Non-current 244 339 244 339 524 625 524 625
20 Derivative Financial Instruments Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000 Current asset portion
Interest rate swaps - cash flow hedges - - - -
Total current portion - - - -
Non-current asset portion Interest rate swaps - cash flow hedges 456 - 456 -
Total non-current portion 456 - 456 -
Current liability portion Interest rate swaps - cash flow hedges - 470 - 470
Total current portion - 470 - 470
Non-current liability portion Interest rate swaps - cash flow hedges 6,355 1,223 6,355 1,223
Total non-current portion 6,355 1,223 6,355 1,223
The fair value of interest rate swaps have been determined by calculating the expected cash flows under the terms of the swaps and discounting these values to present value. The inputs into the valuation model are from independantly sourced (Bloomberg) market parameters such as interest rate yield curves. The interest rate swaps have been valued by Bancorp Treasury Services as at 30 June 2010.
The notional principal amounts of the outstanding interest rate swap contracts at 30 June 2010 were $181,000,000 (2009 $104,000,000).
At 30 June 2010, the fixed interest rates of cash flow hedge interest rate swaps vary from 4.20% to 7.55% (2009 4.20% to 6.74%).
146 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 21 Reconciliation of Net Surplus to Net Cash Council Council Group Group Inflow from Operating Activities Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000
Net surplus (deficit) 33,500 22,175 33,218 21,996
Add (less) Non Cash Items:
Depreciation & amortisation 16,248 13,807 16,493 14,049
Vested Assets (716) (2,149) (716) (2,149)
Impairment of property, plant & equipment 587 - 587 -
Unrealised (gains)/ losses in fair value of property, plant & equipment 979 - 979 -
Unrealised (gains)/ losses in fair value of biological assets (708) 150 (708) 150
Unrealised (gains)/ losses in fair value of term deposits 19 (269) 19 (269)
Unrealised (gains)/ losses in fair value of non-hedge accounted derivatives 4,206 1,809 4,206 1,809
Share of associate (surplus)/deficit 1,118 1,859 1,118 1,859
Unrealised (gains)/ losses in fair value of investment properties 238 217 238 255
Unrealised (Gain)/Loss on equities 307 - 307 -
22,278 15,424 22,523 15,704
Add (less) Movements in Working Capital:
(Increase) decrease in accounts receivable (2,462) (1,666) (2,456) (2,501)
(Increase) decrease in inventories 93 (70) 93 (70) STATEMENTS Increase (decrease) in accounts payable (382) 5,151 (476) 5,197 NOTES TO FINANCIAL (2,751) 3,415 (2,839) 2,626
Add (less) item classified as investing activity
Net (Gain) Loss on sale / write-offs 2,542 (40) 2,710 (40)
Capital Subsidies (47,518) (24,031) (47,518) (24,031)
Development/Financial Contributions (1,141) (2,997) (1,141) (2,997)
Non-operating movement in deferred tax - - (85) (76)
Decrease / (increase) in creditors for capital expenditure 944 (5,955) 944 (4,998)
Increase / (decrease) in debtors for capital revenue (64) (310) (64) (310)
(45,237) (33,333) (45,154) (32,452)
Per statement of cashflows 7,790 7,681 7,748 7,874
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 147 22 Related Party Transactions
Taupo District Council has a number of group and associated entities.
During 2009/10 the following related party transactions occurred:
Taupo Airport Authority (see Note 10 for details of the nature of the relationship) The Airport paid the Council administration and management fees of $12,500 (2009: $22,500). The Airport has accounts payable to Council as at 30 June 2010 of $16,105 (2009: $33,801). The Council has accounts payable to the Airport as at 30 June 2010 of $33,713 (2009: $0). The Council injected $0 of equity into the Airport to maintain it’s shareholding at 50% (2009 $1,264,815).
Data Capture Systems Limited (see Note 10 for details of the nature of the relationship) Data Capture Systems Limited is now dormant. It is administered by Taupo District Council and all costs associated with the administration are absorbed by Council.
BoP LASS Ltd (see Note 10 for details of the nature of the relationship) Council paid BoP LASS Ltd $9,636 (2009 $8,157.50) for contributions to various projects being undertaken by the organisation.
Local Authority Shared Services Ltd (see Note 10 for details of the nature of the relationship) Council paid LASS Ltd $2,023 (2009 $24,694) for contributions to various projects being undertaken by the organisation. LASS Ltd has accounts payable to Council as at 30/6/2010 of $763 (2009 $0).
Lake Taupo Protection Trust (see Note 30 for details of the nature of the relationship) Council paid the Lake Taupo Protection Trust $1,126,000 during the 2009/10 year, this amount fully meeting Council’s responsibilities for targeted rate contributions for the 2009/10 years under the agreed funding arrangements (2009 $1,126,000). Council received $221 from the Trust for expenses.
During the year Councillors and key management personnel, as part of a normal customer relationship, were involved in minor transactions with the Council (such as payment of rates, use of Council facilities, dog registration, purchase of rubbish stickers, etc).
Payments to Amount owing at Receipts from Amount owing at 30 Related Party 30 June by Council Related Party June to Council Taupo District Councillors 2010 2009 2010 2009 2010 2009 2010 2009 $ $ $ $ $ $ $ $
Mayor Rick Cooper Wings & Wheels (director) 14,573 16,823 2,230 1,470 - - - - Cooper Family Investments 178 - 200 - 5,757 1,740 - - Ltd (director) Councillor Welch Taupo Youth Arts Trust 700 7,185 - - 2,117 3,793 - 443 (committee member) Creative Taupo (Chairman) 21,500 22,000 ------Welch Farms Limited - - - - 2,860 - - - (Director) Councillor Uvhagen Acacia Bay residents 375 470 - - 147 110 - - Association (committee) Councillor Downard Senjo Securities (Director) 28,299 19,170 1,004 - - - - - M21 Meats (Director) 906 1,504 ------Councillor Gathergood Mangakino Area School BOT - 123 - - 1,512 5,264 - 3,640 (Chairperson to May 2010) Lakes DHB (committee 127 - - - 2,955 - - (20) member)
148 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Payments to Amount owing at Receipts from Amount owing at Related Party 30 June by Council Related Party 30 June to Council 2010 2009 2010 2009 2010 2009 2010 2009 $ $ $ $ $ $ $ $ Councillor Hickling Waipahihi Botanical Society 2,384 2,424 - - - 19 - - (board member) Turangi/Tongariro Community Board Members Mrs J Lockyer Southern Lake Taupo Health - 1,500 - - 5,808 6,000 - 6,000 Trust (trustee) Lockyer’s Retravision & 4,520 3,129 ------Furniture Ltd (owner) Tongariro Cabinetmakers & Joiners Ltd (owner to - 2,625 ------15/9/08) Mr T O’Brien Total Property Management 28,300 18,461 3,188 1,547 1,844 5,770 223 300 Ltd (owner)
Key Management Personnel CEO - Rob Williams Taupo-nui-a-tia College PTA - - - - 56 - - - (committee) Group Manager- Environmental Services - Gareth Green Key2knowledge (family - 1,800 ------member’s business) Taupo Safer Community Trust 195 1,000 -- 6,952 -- - (trustee) Pihanga Health (father 160 ------trustee) Tongaririo Whanau Support 761 ------Trust (father trustee) STATEMENTS Lake Taupo Housing Trust 6,000 ------(partner trustee) NOTES TO FINANCIAL Town Centre Taupo (partner 153,504 116,950 680 510 19,016 1,013 - - General Manager) Community Manager - Tina Jakes ---- 3,282 330 482 (56) Lake Taupo PHO (director) 262,482 215,164 7,302 3,527 52,306 24,039 705 10,307
The Southern Lake Taupo Health Trust also owes the Council $300,000 by way of mortgage.
There are close family members of key management personnel employed by Taupo District Council. The terms and conditions of those arrangements are no more favourable than Taupo District Council would have adopted if there were no relationship to key management personnel.
Actual Actual Key management personnel compensation 2010 2009 $000 $000
Salaries and other short term employee benefits 1,618 1,728 Other long term benefits 3 217
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 149 It should be noted that the definition of key management personnel for this disclosure includes the Mayor, Councillors, the Chief Executive, members of the Senior Leadership Group, the Area Manager Turangi, and the Community Manager. Details of remuneration paid to Councillors and Community Board members is provided in Note 24
23 Financial Instruments 23A Financial Instrument Categories
The accounting policies for financial instruments have been applied to the line items below:
Council Council Group Group Financial Assets 2010 2009 2010 2009 $000 $000 $000 $000
Fair value through surplus or deficit Held for trading Interest rate swaps - cash flow hedges 456 - 456 -
Loans and receivables Cash and cash equivalents 27,119 7,930 27,158 8,013 Debtors and other receivables 10,523 8,061 10,544 8,089 Other financial assets: - term deposits 5,639 28,009 5,864 28,120 - shares 2,019 - 2,019 -
Total loans and receivables 45,300 44,000 45,585 44,222
Held to maturity Other financial assets - local government and corporate bonds 50,235 52,294 50,235 52,294 - community loans 91 88 91 88
Total held-to-maturity 50,326 52,382 50,326 52,382
Fair value though other comprehensive income Other financial assets - unlisted shares 280 279 280 279
Total fair value through comprehensive income 280 279 280 279
Financial Liabilitites Fair value through surplus or deficit Held for trading Interest rate swaps - cash flow hedges 6,355 1,693 6,355 1,693
Financial liabilities at amortised cost Trade and other payables 13,891 14,348 13,920 14,474 Borrowings - secured loans 92,109 104,263 92,109 104,263 - debentures 45000 - 45000 -
Total financial liabilities and amortised cost 151,000 118,611 151,029 118,737
150 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 23B 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 inactive markets and financial instruments valued 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 Techniques
Significant Quoted non- market Observable observable Total price inputs inputs $000 $000 $000 $000 Council 2010 Financial assets - Interest rate swaps - cash flow hedges 456 - 456 - - Term investments 5,639 - 5,639 - - Shares - listed 2,019 - 2,019 - - Shares - unlisted 280 24 256 -
Financial liabilities - Interest rate swaps - cash flow hedges 6,355 - 6,355 -
Group 2010
Financial assets - Interest rate swaps - cash flow hedges 456 - 456 - - Term investments 5,864 - 5,864 - - Shares - listed 2,019 - 2,019 - - Shares - unlisted 280 24 256 - STATEMENTS Financial liabilities - Interest rate swaps - cash flow hedges 6,355 - 6,355 - NOTES TO FINANCIAL Council 2009 Financial assets - Interest rate swaps - cash flow hedges - - - - - Term investments 28,009 - 28,009 - - Shares - listed - - - - - Shares - unlisted 279 25 254 -
Financial liabilities - Interest rate swaps - cash flow hedges 1,693 - 1,693 -
Group 2009 Financial assets - Interest rate swaps - cash flow hedges - - - - - Term investments 28,120 - 28,120 - - Shares - listed - - - - - Shares - unlisted 280 24 256 -
Financial liabilities - Interest rate swaps - cash flow hedges 1,693 - 1,693 -
There were no transfers between the different levels of the fair value hierarchy.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 151 23C Financial Instrument Risks - Council only
Council is risk adverse and seeks to minimise risk exposure associated with financial instruments and treasury activity. Council has risk management policies and processes in place particularly with regard to risk exposures relating to interest rates and the concentration of credit risk.
Council has established a Treasury Management Policy specifying what transactions can be entered into. The policy does not allow any transactions that are speculative in nature.
Market Risk Price Risk Price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices. Council is exposed to price risk through its equity securities, which are classified as financial assets held at fair value through other comprehensive income. This price risk arises due to market movements in the value of listed securities. This price risk is managed by the diversification of Council’s investment portfolio and is managed by Council’s Investment Management Entity and external Fund Managers in accordance with Council’s Investment Policy. Currency Risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Taupo District Council has no significant exposure to currency risk.
Interest Rate Risk Note 10 provides information on investment interest rates and maturity profile. Note 19 provides information on term loan interest rates and maturity profile.
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. This could impact on the cost of borrowing or the return from an investment. Council’s Liability Management Policy sets minimum and maximum levels of fixed rate exposure for borrowings, across various time windows. Council’s Investment Policy provides for interest rate risk on investments to be managed by Council as part of its overall investment strategy.
Cash flow interest rate risk Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate due to changes in market interest rates. Borrowings and investments issued at variable interest rates expose Council to cash flow interest rate risk. Taupo District Council manages its cash flow interest rate risk on borrowings by using floating-to-fixed interest rate swaps. These interest rate swaps have the economic effect of converting floating rate borrowings into fixed rates that are generally lower than those available if Taupo District Council borrowed at fixed rates directly. Under the interest rate swaps, Taupo District Council agrees with other parties to exchange, at specified intervals, the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional principal amounts. Disclosure of the value of Council’s interest rate swap instruments is made in note 20.
Credit risk
Credit risk is the risk that a third party will default on its obligation to Council, causing the Council to incur a loss.
Financial instruments which potentially subject the Council to credit risk principally consist of bank balances, accounts receivable, all investments, and sports club and other guarantees.
Council’s Investment Policy limits the amount of credit exposure on investment instruments to any one institution or organisation. There are also minimum credit rating limits in place.
Sports club and other loan guarantees are minimal and subject to policy constraints. There are no significant concentrations of credit risk with accounts receivable balances as Council has a large number of credit customers, mainly ratepayers, and there are appropriate debt management practices in place. Council has significant powers under the Local Government (Rating) Act 2002 to recover outstanding amounts from ratepayers.
152 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Maximum exposure to credit risk Taupo District Council’s maximum credit exposure for each class of financial instrument is as follows:
Council Council Group Group 2010 2009 2010 2009 $000 $000 $000 $000
Cash at bank & term deposits 32,758 35,939 33,022 36,133 Debtors and other receivables 7,452 3,111 7,461 3,133 Community & related party loans 300 300 300 300 Local authority & government stock 3,500 3,500 3,500 3,500 Corporate stock 46,735 48,794 46,735 48,794 Derivative financial instrument assets - - - - Financial guarantees 12 12 12 12
Total credit risk 90,757 91,656 91,030 91,872
Credit quality of financial assets The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard & Poor’s credit ratings (if available) or to historical information about counterparty default rates:
Council Council Group Group 2010 2009 2010 2009 Counterparties with Credit Ratings $000 $000 $000 $000 Cash at bank & term deposits:
AA 32,758 35,939 33,022 36,133 AA- - - - - Total cash at bank & term deposits 32,758 35,939 33,022 36,133
Local authority & government stock: A+ 3,500 3,500 3,500 3,500 Total local authority & government stock: 3,500 3,500 3,500 3,500 STATEMENTS Corporate Stock AAA - - - - NOTES TO FINANCIAL AA 34,242 34,302 34,242 34,302 AA- - - - - A+ 4,992 6,992 4,992 6,992 A 7,501 7,500 7,501 7,500 Total corporate stock 46,735 48,794 46,735 48,794
Derivative financial instrument assets: AA - - - - Total derivative financial instrument assets: - - - -
Counterparties without credit ratings Community & related party loans: 91 88 91 88 Total community & related party loans 91 88 91 88
Debtors and other receivables mainly arise from Taupo District Council’s statutory functions, therefore there are no procedures in place to monitor or report the credit quality of debtors and other receivables with reference to internal or external credit ratings. Taupo District Council has no significant concentrations of credit risk in relation to debtors and other receivables, as it has a large number of credit customers, mainly ratepayers, and Taupo District Council has powers under the Local Government (Rating) Act 2002 to recover outstanding debts from ratepayers.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 153 Liquidity Risk Liquidity risk is the risk that Council will encounter difficulty in raising sufficient funds to meet financial commitments as they fall due.
Liquidity risk management ensures that there is sufficient cash available to meet obligations in an orderly manner as they fall due. As part of liquidity risk management Council, at 30 June 2010 had $28 million of un- drawn committed bank facilities. Councils’ Treasury Policy also requires spreading of debt maturities across financial periods to avoid concentration of risk.
Council also holds cash and cash equivalents to manage short-term liquidity risk.
Contractual maturity analysis of financial liabilities The table below analyses Taupo District Council’s financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. Future interest payments on floating rate debt and interest rate derivatives are based on the relevant interest rate at balance date. The amounts disclosed are the contractual undiscounted cash flows.
Carrying Contractual Amount Cash Flows < 1yr 1-2 years 2-5 years > 5 years $000 $000 $000 $000 $000 $000 Council 2010 Creditors and other payables 13,891 13,891 13,891 - - - Net settled derivative liabilities 6,355 8,804 2,265 2,184 3,801 554 Secured Loans 137,109 148,083 44,462 43,809 59,812 - Finance Leases 525 589 316 189 84 - Financial Guarantees 3 50 50 - - -
Total 157,883 171,417 60,984 46,182 63,697 554
Group 2010 Creditors and other payables 13,920 13,920 13,920 - - - Net settled derivative liabilities 6,355 8,804 2,265 2,184 3,801 554 Secured Loans 137,109 148,083 44,462 43,809 59,812 - Finance Leases 525 589 316 189 84 - Financial Guarantees 3 50 50 - - -
Total 157,912 171,446 61,013 46,182 63,697 554
Council 2009 Creditors and other payables 14,348 14,348 14,348 - - - Net settled derivative liabilities 1,693 10,926 2,449 2,023 5,144 1,310 Secured Loans 104,263 112,118 5,166 42,289 64,663 - Finance Leases 625 713 325 238 150 - Financial Guarantees 12 100 100 - - -
Total 120,941 138,205 22,388 44,550 69,957 1,310
Group 2009 Creditors and other payables 14,474 14,474 14,474 - - - Net settled derivative liabilities 1,693 10,926 2,449 2,023 5,144 1,310 Secured Loans 104,263 112,118 5,166 42,289 64,663 - Finance Leases 625 713 325 238 150 - Financial Guarantees 12 100 100 - - -
Total 121,067 138,331 22,514 44,550 69,957 1,310
154 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Contractual maturity analysis of financial assets The table below analyses Taupo District Council’s financial assets into relevant maturity groupings based on the remaining period at balance date to the contractual maturity date.
Carrying Contractual Amount Cash Flows < 1yr 1-2 years 2-5 years > 5 years $000 $000 $000 $000 $000 $000 Council 2010 Cash and cash equivalents 27,119 27,119 27,119 - - - Debtors and other receivables 7,452 7,452 7,452 - - - Net settled derivative assets 456 475 190 190 95 - Other financial assets: - term deposits 5,639 16,045 14,600 - 1,445 - - community loans 91 438 6 6 18 408 - local authority stock 3,500 4,725 245 245 4,235 - - bonds 46,735 30,047 5,037 3,971 18,799 2,240
Total 90,992 86,301 54,649 4,412 24,592 2,648
Group 2010 Cash and cash equivalents 27,158 27,158 27,158 - - - Debtors and other receivables 7,461 7,461 7,461 - - - Net settled derivative assets 456 475 190 190 95 - Other financial assets: - term deposits 5,864 16,270 14,825 - 1,445 - - community loans 91 438 6 6 18 408 - local authority stock 3,500 4,725 245 245 4,235 - - bonds 46,735 30,047 5,037 3,971 18,799 2,240
Total 91,265 86,574 54,922 4,412 24,592 2,648
Council 2009 Cash and cash equivalents 7,930 7,930 7,930 - - - STATEMENTS Debtors and other receivables 3,111 3,111 3,111 - - -
Net settled derivative assets ------NOTES TO FINANCIAL Other financial assets: - term deposits 28,009 34,339 29,839 4,500 - - - community loans 88 444 6 6 18 414 - local authority stock 3,500 4,970 245 245 735 3,745 - bonds 48,794 36,306 6,108 5,037 14,954 10,207
Total 91,432 87,100 47,239 9,788 15,707 14,366
Group 2009 Cash and cash equivalents 8,013 8,013 8,013 - - - Debtors and other receivables 3,133 3,133 3,133 - - - Net settled derivative assets ------Other financial assets: - term deposits 28,120 34,451 29,951 4,500 - - - community loans 88 444 6 6 18 414 - local authority stock 3,500 4,970 245 245 735 3,745 - bonds 48,794 36,306 6,108 5,037 14,954 10,207
Total 91,648 87,317 47,456 9,788 15,707 14,366
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 155 Sensitivity analysis
The tables below illustrate the potential profit and loss and equity (excluding retained earnings) impact for reasonable possible market movements, with all other variables held constant, based on Taupo District Council’s financial instrument exposures at balance date. These tables represent both the Council & Group positions as no analysis is required for subsidiaries.
2010 2009 Council & Group -100bps +100bps -25bps +25bps
Other Other Other Other Interest Rate Risk Profit equity Profit equity Profit equity Profit equity $000 $000 $000 $000 $000 $000 $000 $000 Financial assets Cash and cash ------equivalents (1) Other financial assets: - term deposits (2) 84 - (80) - 30 - (30) - - community loans (3) ------local authority stock ------(4) - bonds (4) ------Financial Liabilities Term Loans (5) ------Interest Rate ------Derivatives (5) Total sensitivity to 84 - (80) - 30 - (30) - interest rate risk
Foreign Exchange -5% +5% -5% +5% Risk Other Other Other Other Profit equity Profit equity Profit equity Profit equity $000 $000 $000 $000 $000 $000 $000 $000 Financial assets Other financial assets: - quoted share (96) - 106 - - - - - investments (6a) Total sensitivity to (96) - 106 - - - - - foreign exchange risk
Equity Price Risk Financial assets Other financial assets: - unlisted share - (1) - 1 - (1) - 1 investments (7) - quoted share (202) - 202 - - - - - investments (6b) Total sensitivity to (202) (1) 202 1 - (1) - 1 equity price risk
156 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Explanation of sensitivity analysis - Council & Group
1 - Cash and Cash Equivalents Cash and cash equivalents include deposits at call of $16,728,000 (2009 $1,987,000) which are at an interest rate close to the Official Cash Rate. As the likelihood of this rate moving on balance date is unlikely no sensitivity analysis has been applied.
2 - Term Deposits Term deposits have a fair value of $15,675,000(2009 $28,120,000). A movement of plus or minus 1% in the interest rate has an effect on the profit and loss of ($80,000)/$84,000 (2009 ($30,000)/$30,000).
3 - Community Loans Taupo District Council has lent the Southern Lakes Taupo Health Trust $300,000 for a period of 25 years at 2%pa, this loan was valued at fair value of $90,640 (2009 $88,127) at balance date. Changes in interest rates at balance date will not affect the valuation of this loan.
4 - Local Authority Stock and Bonds These financial assets are classified as held to maturity and are at fixed interest rates, therefore sensitivity analysis is not applicable.
5 - Term loans & Interest Rate Derivatives Taupo District Councils loan facilities and interest rate derivatives are at fixed rates and were repriced at balance date, a movement of plus or minus 1% in the interest rate has an immaterial effect on 1 day’s interest accrual.
6 - Quoted Share Investments a) Taupo District Council holds listed equity instruments in HSBC Holdings, Tesco Ltd, Marks & Spencers and Aviva, which are publicly traded and included in the FTSE equity index. If the share price moved plus or mins 5% the effect has an impact of $202,000/($202,000) in the fair value through profit. (2009 Nil) b) For these same shares if there was a movement of plus or minus 5% in the British pound the effect has an impact of ($96,000)/$106,000 in the fair value through profit. (2009 Nil.)
7 - Unlisted Share Investments Taupo District Council holds shares in King County Electricity which are publicly traded on the secondary NZ sharemarket. A movement of plus or minus 5% in the share price has an effect of $1000/($1000) (2009 +/- 5% $1000/($1000)) in the fair value through other comprehensive income. STATEMENTS
24 Remuneration - Council only NOTES TO FINANCIAL
Chief Executive Officer’s Remuneration The Chief Executive Officer of the Taupo District Council is appointed under Section 42 of the Local Government Act 2002. Actual Actual 2010 2009 Cost during the financial year: Total remuneration package 272,896 254,200 Vehicle (value of FBT) 7,564 7,931 280,460 262,131
For the period ending 30 June 2010, the total cost including fringe benefit tax to the Council of the remuneration package paid, or payable to, the current Chief Executive Officer is calculated at $280,460 (2009 262,131).
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 157 Mayor and Elected Members Remuneration
The following people held office as elected members of the Council’s governing body during the reporting period.
The aggregate monetary remuneration to the 16 councillor’s/community board members and the Mayor during the year totalled $448,374 (2009: 16 councillors/community board members and the Mayor $437,142) and is disaggregated and classified as follows:
Total Total Council/Community Board Member Meeting Actual Actual Salary Allowances 2010 2009
Cooper, Rick (Mayor) 77,530 - 77,530 75,555
Blyth, Doreen 20,362 8,550 28,912 28,191
Chrustowski, Bernhard 20,362 7,250 27,612 27,991
Downard, Mich’eal 20,362 7,550 27,912 26,691
Gathergood, Ailsa 20,362 9,050 29,412 25,791
Hickling, Barry 20,362 7,150 27,512 26,591
Keepa, Gary 20,362 4,850 25,212 24,391
McElwee, Christine 22,628 8,950 31,578 32,697
Ormsby, Donald 37,816 8,750 46,566 44,640
Uvhagen, Kathryn 25,180 10,250 35,430 34,897
Welch, Andrew 20,362 7,150 27,512 27,991
Campbell, Don 10,531 - 10,531 10,286
Lockyer, Janis 10,531 - 10,531 10,286
McCarthy, Susan 10,531 - 10,531 10,286
O’Brien, Terry 10,531 - 10,531 10,286
Smallman, Mary 10,531 - 10,531 10,286
Stewart, Margaret 10,531 - 10,531 10,286
Total Monetary Remuneration 368,874 79,500 448,374 437,142
The monetary remuneration detailed above (salary and meeting allowances) is determined by the Council resolution within limits set by the Local Government Elected Members Determination in accordance with the provisions of Clause 6 Schedule 7 of the Local Government Act 2002. FBT of $6,065 (2009 $6,360) was paid to the IRD by Council for a vehicle supplied to the Mayor, Rick Cooper.
158 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 25 Commitments Council Council Group Group Actual Actual Actual Actual Major contracts which Council was 2010 2009 2010 2009 committed to: $000 $000 $000 $000
Wastewater 780 1,912 780 1,912
Stormwater 53 543 53 543
Water Supply 350 1,663 350 1,663
District Roading 3,270 2,076 3,270 2,076
Refuse 3,936 5,738 3,936 5,738
District Electricity Supply 2,600 876 2,600 876
East Taupo Arterial 16,649 65,870 16,649 65,870
Dog Pound Construction - 835 - 835
Victoria St Subdivision Stage 2 - 526 - 526
Pier 87 - 226 - 226
Total Major Contracts 27,638 80,265 27,638 80,265
Non-cancellable operating leases as lessee: Taupo District Council leases property, plant and equipment in the normal course of its business. The future aggregate minimum lease payments to be collected under non-cancellable operating leases are as follows:
Payable no later than one year 253 270 257 274
Later than one, not later than two years 151 207 154 210
Later than two, not later than five years 48 129 48 129 STATEMENTS Total Commitments 28,090 80,871 28,097 80,878 NOTES TO FINANCIAL
26 Contingencies Amount Current level Year of of original of guarantee Loan Guarantees - Council only guarantee Term in years guarantee outstanding
The following Loan Guarantees have been given by Council:
Taupo Squash Rackets Club 2005 10 50,000 3,020
Totals for the year ended 30 June 2010 50,000 3,020
Totals for the year ended 30 June 2009 100,000 11,792
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 159 Other Contingencies
Taupo District Council Scientific advice has been received regarding the Hipaua Geothermal Landslide risk near Waihi at the southern end of Lake Taupo. In the event of a landslide any property damage and/or loss of life could potentially give rise to claim(s) against Council, currently unquantifiable (2009 Same contingency disclosure made).
A land subsidence issue has been identified in the Taupo urban area, with the potential for property damage and therefore raising liability issues. Taupo District Council does not believe it has any direct potential liability, specifically related to the causes of the subsidence. The issue of contingent liability however, currently unquantifiable, is under review (2009: Same contingency disclosure made).
Council controls and has brought to account certain reserve lands throughout the District which will return to Iwi ownership in the event that they are no longer required for reserve purposes. Council does not envisage that this situation will ever eventuate (2009 Same disclosure of this contingency).
Council may be subject to claims relating to weathertightness building defects. As at the date of this report the Weathertight Home Resolution Service (WHRS) is investigating 3 claims affecting 4 properties in the Taupo District. These may or may not result in formal claims against Council. No weathertightness claims have been lodged directly with Council. The quantum of these claims cannot be accurately calculated at present, although any liability under this claim will be met by our insurers, subject to our usual excess requirements (2009: Three WHRS claims plus one lodged directly).
All Councils with responsibilities under the Building Act have, to varying extents, been impacted by the leaky building issue. Unfortunately, as the issue has evolved, other parties to the claims have disappeared and Councils and Riskpool (our insurer) are often the only party responding to the claims. This has meant that judgements against Councils are increasing. Riskpool’s funds are exhibiting deficits and this means that calls will be made upon member councils to contribute to the fund. Council has received a call of $99,374 for the 2011 financial year and has been advised by Riskpool that a futher call on 1 July 2011 and possibly another on 1 July 2012 will also be made. The amount of these calls is undetermined at this time.
In addition to the weathertightness building defect claims, there are a further 8 unresolved potential legal claims against Council as at 30 June 2010 (2009: 6 claims). All seek compensation related to resource consents, property damage, contractual disputes, or other aspects of Council’s operations which the claimants believe have caused them loss. It is not possible for Council to quantify a maximum financial exposure for these claims. Council will vigorously defend all claims and expects its actual liability to be minimal, if indeed there is any liability at all.
A weathertightness issue has arisen at the AC Baths, however the costs likely to be incurred in rectifying the issue are undetermined at balance date, and therefore no provision has been made (2009 Same contingency disclosure made).
The potential for erosion and flooding risk has been identified through technical reports around the foreshore of Lake Taupo, with the potential for property damage and therefore raising liability issues. Taupo District Council does not believe it has any direct potential liability, specifically related to the causes of the erosion and flooding. The issue of contingent liability however, currently unquantifiable, is under review (2009 Same contingency disclosure made).
As at 30 June 2009 contractual dispute had arisen on the sale of a council property. The purchaser had lodged a caveat to protect their interest. Council took action in the High Court and the caveat was removed.
Group There are no contingent assets or liabilities relating to the subsidiary entities (2009: nil).
27 Events after balance date
There were no significant events after balance date that require reporting.
160 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 28 Capital management
The Council’s capital is its equity (or ratepayers’ funds), which comprise accumulated funds 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, general financial dealings prudently and in a manner that promotes the current and future interests of the community.
Ratepayers’ 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 the Council. Intergenerational equity requires today’s ratepayers to meet the costs of utilising the Council’s assets while 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 major classes of assets detailing renewal and maintenance programmes, to ensure ratepayers in future generations are not required to meet the 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 (where applicable) to meet the expenditure needs identified in those plans. And 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 Council’s LTCCP.
Taupo District Council has the following Council created reserves: Depreciation reserves Development contributions TEL Fund Disaster recovery Other special purpose
Depreciation reserves reflect the value of depreciation expense charged in the financial statements and funded from rates. These reserves are utilised to fund the replacement and renewal of the assets that are being depreciated.
Development contribution reserves reflect development contributions invoiced and received, but not yet spent
on growth-related asset purchases or construction. STATEMENTS
The TEL Fund was established in September 2005 when Taupo District Council sold its investments in Taupo NOTES TO FINANCIAL Electricity Limited and Taupo Generation Limited. The beneficial owners of the fund are the ratepayers in the Taupo/Kaiangaroa and Mangakino/Pouakani (TKMP) rating areas and the fund is utilised to reduce the rating requirement in these areas of the District.
The disaster recovery reserve is set aside to assist with readily available funds in the case of a significant natural disaster.
The other special purpose reserves are an accumulation of a number of other designated reserves, funded and held for a variety of purposes. Among the more significant balances are the strategic property reserve, land subdivision reserves, the forestry reserve, and the Turangi/Tongariro general purpose reserve.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 161 29 Explanation of major variances against budget
Explanations for major variations from the Council 2009/10 Annual Plan are as follows:
Statement of Comprehensive Income Council’s actual surplus of $33.5m is $4.3m greater than the $29.2m budgeted. The major variations are due to: — Revenue from activities being $19.3m higher than budgeted. The major factor in this is that the ETA is six months ahead of plan, therefore NZ Transport Agency Subsidy for costs relating to the East Taupo Arterial ($22.8m) is also ahead of plan. This gain is offset by a shortfall in regulatory income ($1m) and development contributions ($2.5m) due to market conditions. — Other revenue is down by $4.5m major factors are finance income down due to interest rates being lower than budgeted due to economic conditions ($1m), no vested assets ($4.4m) offset by first time recogntion of assets and other income ($0.9m). — Other gains and losses being $0.946m higher than budget due to realised gain on sale of shares ($0.15m) and unrealised gain on derivatives ($0.8m). — Partially offsetting these items of unbudgeted revenue is Council’s expenditure being $9.7m in excess of budget. Major factors in this are $5.0m of unbudgeted losses on the fair valuation of interest rate derivatives, a $3.7m increase in depreciation over budget due to increase in valuation infrastructual assets at 30/6/09, $1.9m loss on disposal of assets (mainly roading and infrastructure), revaluation loss on buildings exceeding the revaluation reserve $1m, and impairment of assets $0.6m, offset by $3.0m saving in interest costs due to current economic conditions. — An unbudgeted $1.1m recognition of the loss of Council’s associate - the Lake Taupo Protection Trust.
Statement of Movements in Equity The major variations are due to: — The opening equity position being $44m higher than anticipated in the budget, primarily due to infrastructural revaluations at 30 June 2009 and the higher than budget surplus in 2008/09. — The 30 June 2010 revaluations of land and buildings being $109.7m lower than anticipated in the Annual Plan. — The net surplus for the year being $4.3m higher than budgeted (see explanation under ‘Statement of Comprehensive Income’ heading above)
Statement of Financial Position The major variations are due to: — Total investments (including cash) $8m higherer than budgeted. — Trade and other receivables being $4m higher than budgeted. — Non-Current Assets Held for sale being $22.3m higher than budgeted with changes in the timing of Council’s subdivision programme impacting on this as well as a Council resolution to defer its role as a property developer and actively promote the sale of its non-committed land assets . — The recognition of an unbudgeted $2.2 million interest in the net assets of Council’s associate - the Lake Taupo Protection Trust. — Property, plant and equipment being $91.7m lower than budgeted, the result of 30 June 2010 revaluations ($109.7m) and impairment of assets ($0.6m) offset by corrections and revaluations at 30 June 09, and changes in Council’s capital spending programmes. — Trade and Other payables $4.0m higher than budgeted due to the ETA project. — Employee Benefits $0.8m higher than budgeted. — Derivative financial instruments being $5.9m higher than budgeted, due to the nature of this liability year end balances are not budgeted. With changes in interest rates over the year the value of the interest rate swaps that Council has entered into has decreased from last year. — Borrowings being $4.2m les than budgeted, the result of changes in Council’s capital expenditure programme. — Equity position varying as described under the heading of ‘Statement of Movements in Equity’ elsewhere in this note.
162 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 30 Investments in Associates
Taupo District Council has significant influence over the activities of the Lake Taupo Protection Trust, an entity created in February 2007.
As one of the three settlors of the Trust, together with Environment Waikato and the Ministry for the Environment, Taupo District Council has assessed its interest in the Trust at 33.3%.
Council Council Group Group Actual Actual Actual Actual 2010 2009 2010 2009 $000 $000 $000 $000 Movements in the carrying amount of investments in associates:
Opening Balance 3,379 5,238 3,379 5,238
Share of total recognised revenues and expenses (1,118) (1,859) (1,118) (1,859)
Value of investment 2,261 3,379 2,261 3,379
Summarised financial information of associates: $000 $000
Assets 11,105 10,463
Liabilities 4,322 325
Equity 6,783 10,138
Revenues 6,989 6,625
Expenses 10,343 12,202
Surplus/(deficit) (3,355) (5,577)
Taupo District Council’s interest 33.3% 33.3% STATEMENTS
The Lake Taupo Protection Trust is charged with developing a programme of work that will reduce the amount NOTES TO FINANCIAL of manageable nitrogen leaching into the lake by 20% over a 14 year period. It will encourage and assist land use change, purchase land or nitrogen in the Lake Taupo catchment, and fund research and other initiatives that will assist landowners to reduce the nitrogen impact of their activities on Lake Taupo. The Trust will be funded with $81.5 million over a 14 year period to achieve these purposes.
Council, together with the two other settlors contributes funding to the Trust, with Council’s share of this funding charged as operational expenditure in the Council accounts and recognised as revenue in the Trust’s accounts. Council expects no return on equity from the Trust other than the achievement of the set objective of nitrogen reduction.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 163 Official opening ceremony of the ETA — convoy of classic cars cruising the ETA for the first time, 8 October 2010
164 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 COUNCIL-CONTROLLED ORGANISATIONS
Taupo District Council has a controlling interest in two council-controlled organisations (CCOs).
These are: • Taupo Airport Authority • Lake Taupo Tourism Advisory Board.
Taupo District Council has an interest in three other council-controlled organisations. These are: • the Lake Taupo Protection Trust – the settlors of this trust are Taupo District Council, Environment Waikato and the Ministry for the Environment • Local Authority Shared Services Limited – Council has a shareholding interest in this company together with other local authorities in the Waikato Region • BoP LASS Ltd - Council has a shareholding interest in this company together with other local authorities in the Bay of Plenty Region.
Taupo District Council also has a controlling interest in two organisations exempted under section 7 of the Local Government Act 2002 from the definition of ‘council-controlled organisation’.
These are: • Data Capture Systems Limited • Destination Lake Taupo Limited.
This section of the Annual Report describes the performance of these entities in the 2009/10 year.
Taupo Airport Authority
Background Taupo District Council and the Crown, represented by the Ministry of Transport, own the Taupo Airport Authority (TAA) equally. The Taupo Airport Authority is a council-controlled organisation as defined by the Local Government Act 2002.
Taupo District Council, under agreement with the Crown, manages the Taupo Airport Authority. The governance of the airport operations is provided by a Committee of Council. The committee consists of Council and business representatives.
Auditors Audit New Zealand Bankers Bank of New Zealand Solicitors Le Pine & Co, Taupo
Significant Policies and Objectives The objective of the Taupo Airport Authority is to operate a successful business providing for the safe, appropriate and efficient air transport needs of the Taupo District.
The authority provided for the safe, appropriate and efficient air transport needs of the Taupo ORGANISATIONS
District during the year. In meeting this objective the authority operated at a loss. COUNCIL CONTROLLED
Nature and Scope of Activities The Taupo Airport Authority is to provide an airport infrastructure to meet the needs of the Taupo District, together with leasehold land for airport-related development. The nature and scope of the activities undertaken by the authority during the year were consistent with this intention.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 165 Performance
Performance Targets Results Achievement
The sealed runway will be open for air traffic 365 The sealed runway was open for air Achieved days of the year unless prevented by adverse traffic each day. weather or unexpected events.
The grass runway will be open for air traffic 365 The grass runway was open for air Achieved days of the year unless prevented by adverse traffic each day. weather or unexpected events, or when the sealed runway is in use.
The airport will be Part 139 Certified. Passed audit in November 2009. Achieved
The terminal building will be open at least half an The terminal building was open as Achieved hour before arrival times and half an hour after specified. flight departure.
A financial return on equity to be achieved Full year result is a before tax loss of Not achieved annually. $367K.
The TAA be self-funding in terms of its own Operating cash flow for the year ended Not achieved cashflow requirements as soon as possible. 30 June 2010 year is a $42K outflow. ($70K inflow if non-operating cash flows are included).
Financial performance for the year ended 30 June 2010 Actual Budget 2010 2010 $ $
Total revenue 396,116 601,000
Total expenditure (including tax expense) 678,186 598,444
Net surplus (deficit) after taxation (282,070) 2,556
166 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Lake Taupo Tourism Advisory Board
Background The Lake Taupo Tourism Advisory Board (the Board) provides advice on tourism in the district including advice on the marketing direction and operations of Destination Lake Taupo (DLT)12 and destination management.
The five members of the Board are appointed by Council3 after an interview process. These appointments are open to any person with the appropriate skills, experience and attributes. The Board may co-opt additional non-voting members at its discretion.
Auditors Audit New Zealand
Significant Policies and Objectives The Lake Taupo Tourism Advisory Board is a CCO for the purposes of the Local Government Act 2002. It is a not-for-profit organisation and the Board has no authority delegated to it by Council.
Nature and Scope of Activities The nature and scope of the activities to be undertaken comprises three key activity areas: • Promote the 10 Year Visitor Industry Strategic Plan on behalf of the industry encapsulating a long term vision and strategic pathway for the Lake Taupo District as a visitor destination • Identification of strategic issues for the tourism industry in the Lake Taupo District and development of strategies to address these issues • Provide advice and guidance on destination marketing and destination management including appropriateness of plans and efficient use of funding
The Board shall provide this advice and communicate with stakeholders in a timely and effective manner. ORGANISATIONS COUNCIL CONTROLLED
2 The Council division operating as Regional Tourism Organisation 3 Note that Council decided in June 2009 to alter the terms of reference of the Board reducing membership from ten to five and removing the ability of specific organisations to nominate members. The new board was appointed on 28 July 2009.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 167 Performance
Performance Targets Results Achievement
Advice provided within External delivery model presented Delivered on time. A Statement of required timeframes to Council in November 2009 to Proposal was developed based on develop the “Best Regional Tourism the Board’s Model and was publicly Organisation” in the country. consulted on alongside Council’s Draft Annual Plan. The Proposal was accepted in June 2010.
Provide comment and Advice provided by LTTAB in relation 3 Year Marketing Strategy adopted by direction on DLT’s draft to DLT’s 3 Year Marketing Strategy the Board and the Annual Business business plans and Annual Business Plan 2009/10 Plan.
Stakeholder groups, Regular communication to A Stakeholder survey was completed especially nominating stakeholders via newsletters in June 2010 to indicate the degree organisations, are kept (monthly), press releases, industry of satisfaction with communication. informed of LTTAB’s update functions, coffee mornings Across the 5 satisfaction questions, activities with the GM and many individual operators gave DLT the following communications and agency based average satisfaction results of: meetings. Very Satisfied 10.46% Satisfied 39.06% Neither satisfied or dissatisfied 26.66% Unsatisfied 15.72% Very unsatisfied 8.06%
Provide advice and guidance This performance target has been A review of Critical Success Factors in on the development of a included in the 2009/10 business August 2009 revealed other priorities Sustainable Tourism Charter plan. Funding from the Ministry for to achieve DLT’s primary goals, the Environment has ceased due to including the need to develop a new reporting requirements for 2008/09 governance structure and re-brand not being met. the district.
Encourage stakeholder Listed in the business plan under DLT is currently forming an industry groups to engage in destination management but not group to roll out sustainable sustainable practices actively pursued in the first six initiatives. The first meeting planned months due to other DLT priorities. for April was postponed until October 2010.
- Regularly engage with Ongoing meetings have been held DLT has made time to work with these other key organisations with a number of important tourism organisations, has added value to on issues affecting stakeholder organisations, as well their objectives and has been better tourism as appropriate as attendance at related functions. informed about related activities in Organisations include Enterprise the wider Districts and beyond. Lake Taupo, Towncentre Taupo, Events Centre, Taupo Venues, Chamber of Commerce, Department of Conservation, Ngati Tuwharetoa, Great New Zealand Touring Route, Central Park NZ, Regional Tourism Organisations of NZ, Tourism New Zealand, Ministry of Tourism including recent hosting of the Prime Minister, various event organisers, Bike Taupo. Meetings planned with the Lakes and Waterways Action Group Trust, Taupo Police, Mangakino Visitor Industry Focus Group, Turangi Tongariro Promotional Association, Turangi Tongariro Visitor Strategy Taskforce Group and the Advocates for the Tongariro River.
168 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Other Disclosures The Board is committed to making the following information available:
Information Comments
At least 5 months prior to the start of Provided as part of the annual plan process. The Board the financial year the Board shall deliver requested additional funding of $100k over and above LTCCP to the Council a report setting out its budgets for a domestic marketing campaign. Following public recommendations on the DLT annual consultation, Council provided the funding subject to it being budget, as reflected in the business plan for matched by the industry. (see page 25 of the Taupo District that year Council 2010/11 Annual Plan
Within 2 months after the end of the Formally delivered to Council at its March 2010 meeting, first half of each financial year, the Board shall deliver to Council a report on the organisation’s operations during that half year
Within 3 months after the end of each To be provided by the end of September 2010 financial year, the Board shall deliver to Council, and make available to the public, a report on the organisation’s operations during that year
Within 1 week after each Board meeting, Monthly reports were available on the previous website. the Board shall make available to the Currently in transition of transferring reports onto the new public the monthly report received from the site. These reports will continue to be displayed on the new General Manager of Destination Lake Taupo site from October 2010.
Within 2 weeks after each Board meeting, Minutes from monthly meetings were available on the the Board shall make available to the public previous website and are currently being uploaded to the new the minutes of the previous Board meeting website.
As the Board has no assets or liabilities and no financial activity, there is no financial performance to report. ORGANISATIONS COUNCIL CONTROLLED
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 169 The Lake Taupo Protection Trust
Background The Lake Taupo Protection Trust (LTPT) was formed and became operative at the time of establishment of the Lake Taupo Protection Project on 9 February 2007. The Trust will administer an $81.5 million fund over a 14-year period to protect Lake Taupo’s water quality.
Settlors of the trust are Taupo District Council, Environment Waikato and the Ministry for the Environment.
Auditors Audit New Zealand
Significant Policies and Objectives Over a 14-year period, beginning from the 9th February 2007, the trust will reduce the nitrogen flowing into Lake Taupo by at least 153 tonnes from within the Lake Taupo Catchment Area as defined by Environment Waikato.
Nature and Scope of Activities The Lake Taupo Protection Trust will encourage and assist land use change, purchase land or nitrogen in the Lake Taupo catchment, and fund research and other initiatives that will assist landowners to reduce the nitrogen impact of their activities on Lake Taupo.
The nature and scope of the trust’s activities during the year were consistent with these intentions.
170 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Performance
Actions Measures Performance against Target
Have completed a business Business Plan and agreement Business plan completed plan with a at least one in place by December 2009. which concluded with a carbon Tuwharetoa Incorporated and nitrogen agreement for Society the reduction of 22,000kgs of nitrogen from Puketapu.
Have in place a strategic Strategic partner agreement Agreement in place with partner to enable carbon in place by December 2009 Mighty River Power and now offsets to be purchased operational.
Operate the Trust to achieve a 35 tonnes of nitrogen reduced Agreements in place to reduce total of 35 tonnes of nitrogen by 30 June 2010 towards 67 tonnes. overall target of 153 tonnes.
Have in place an exit Exit strategy completed by 30 Nitrogen Purchase Policy strategy which achieves the June 2010. recommended to Board and overall aims of the Trust and approved and subsequently maximises financial returns endorsed by the Joint Committee.
Obtain an agreement with the Funding partners agree to the Completed. Meeting of funding partners to undertake review by December 2009. Ministers to visit Taupo to an earlier review of the Trust address ongoing funding Deed. and GST. Full project review scheduled for 2012.
Undertake public awareness of 75% customer awareness 77% achieved. the Trust operations measured result from the survey when through the Taupo District the results become available Council 2009 Residents in 2009. Survey.
Environment Waikato to Benchmarking of all farms Benchmarking 85% complete progress with benchmarking within the Lake Taupo and reduced budget is in of farms within the Lake Taupo catchment are completed on place to phase out this catchment in accordance or before 30 June 2010 as arrangement. Benchmarking with the agreements outlined agreed in the 2009/10 Service is now moving to smaller between the parties as per Level Agreement. farming operations the 2009/10 Service Level Agreement.
Actual Budget Financial performance for the year ended 30 June 2010 2010 2010 $ $ Total revenue 6,988,753 5,961,000 Total expenditure 10,343,405 1,715,400
Net surplus (deficit) (3,354,652) (4,245,600) ORGANISATIONS COUNCIL CONTROLLED Actual Budget Balance sheet as at 30 June 2010 2010 2010 $ $ Total assets 11,105,240 25,420,167 Total liabilities 4,322,164 359,810 Equity 6,783,076 25,060,357
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 171 Local Authority Shared Services Limited
Background Taupo District Council has a one-thirteenth ordinary shareholding in Local Authority Shared Services Limited (LASS).
Taupo District Council also holds service shares in the Waikato Regional Aerial Photography Services (21,652 shares), the Waikato Regional Transport Model Service (9,000 shares) and the Valuation Data Hosting Services (one share) activities of the company. These service shareholdings give no rights to a share in the distribution of surplus assets, nor do they provide voting rights.
Auditors Audit New Zealand
Significant Policies and Objectives The company has been set up to provide Waikato Region local authorities with a vehicle to develop shared services that demonstrate a benefit to the ratepayers and provide those services to local authorities.
Any further services that may be initiated under the umbrella of this company will be promulgated only if the business case shows that they provide benefit to the shareholders in terms of improved levels of service and/or reduced cost. Any such proposals will be presented to the Directors for approval prior to implementation.
Nature and Scope of Activities The principal nature and scope of the activity of LASS is to: • Provide shared services to all local authorities within the Waikato Region. • Sell processes and systems as set up under individual agreements to local authorities outside the Region. • Consider all opportunities to procure shared services that will benefit the community, either through enhanced services and/or reduced cost. • Give consideration to developing shared services that local authorities of the Region believe are of value. The objective is to provide the most effective access to Regional information that may be of value to the community, using modern technology and processes. • Obtain a financial return from commercial users of information collected by councils. • Explore all possible avenues to provide these services itself or contract them from other parties, each depending on a rigorous business case and risk assessment. • Provide opportunities for development of systems and processes that utilises intellectual property developed by councils and on selling data and services/systems to commercial users for a market based financial return.
172 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Performance
Performance Measure Actual Outcome
Positive cash flow will be maintained so that the equity Positive cash flow has been maintained, and a ratio is maintained at a minimum of 40%. positive Bank balance at the end of each month has allowed LASS accounts to be paid on time. No loan balance is held at Balance date. Equity ratio at 30 June 2010 is 98% The company will carry out an annual survey of A shareholder survey was forwarded to all 13 shareholders to assist the Directors in developing shareholders, with a total of 9 survey forms being improvements on behalf of the shareholders, and to completed and returned. The results show 100% receive a majority of shareholder approval on the satisfaction from the respondents with the LASS service provided structure, reporting and service operations. Several shareholders requested that the LASS directors be more proactive in pursuing possible further shared services. Expenditure shall not exceed that budgeted by more Total expenditure was under budget. All than 5% unless prior approval is obtained from the administration costs in LASS were below budget, with Directors. savings being made in external audit fees.
The Board will provide a written report on the business Six monthly reports were provided. operations and financial position of the LASS on a six monthly basis.
BoP LASS Limited
Background The councils that operate within the boundaries of the Bay of Plenty Region have formed a council-controlled organisation to investigate, develop and deliver shared back office services and communications where and when that can be done more effectively for any combinations of some or all of the councils. Taupo District Council now has a one-ninth ordinary shareholding in Bay of Plenty Local Authority Shared Services Limited (BoP LASS) with the addition of Gisborne District Council.
Auditors Audit New Zealand
Significant Policies and Objectives The company was set up to provide Bay of Plenty Region councils with an umbrella vehicle to investigate, procure, develop and deliver shared services.
Such services will be initiated under the umbrella of this company where a business case shows that they provide benefit to the (voluntary) council users by either improved levels of service, reduced costs, improved efficiency and/or increased value through innovation.
Nature and Scope of Activities The principle nature and scope of the activity of BoP LASS Ltd is to:
• enable the provision of shared services to any or all local authorities within the Bay of Plenty ORGANISATIONS
Region. BoP LASS Ltd may also sell ‘shared’ processes and systems as set up under individual COUNCIL CONTROLLED agreements to local authorities outside the Region; • pursue all opportunities to procure shared services that will benefit the community in the widest sense, through enhanced back office services and/or reduced costs for councils • explore all possible avenues to provide these services itself or contract them from outside parties, each depending on a rigorous business case and risk assessment.
BoP LASS Ltd will also act as a true regional vehicle to attract government and other funding, if or when it is made available.
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 173 Performance targets for 2009-2010
Outcomes Action Measure Result
Ensure the umbrella company Management Report target Target Met continues to operate effectively in reporting dates met both governance and management Accounting system terms –financial reports provided Maintain operational principles Policy statement 30 June 2010 Target Met regarding developing and reviewed annually. Policy reviewed for SOI approving shared services Business cases 30 June 2010 February. provided and approved for services prior to initiation Develop and sustain Management 30 June 2010 Target Met communication lines with each team meetings Directors advised shareholding council at appropriate with constituent meetings to be by levels, Councils. invitation meetings with Western bay and other council staff members. Develop and sustain Regular contacts 30 June 2010 Target Met. communication lines with shared resulting in shared Meeting with LASS service CCOs of neighbouring information reps April. Minutes regions. reported to board circulated to MWLASS. Investigate at least 5 shared Advisory groups 30 June 2010 Target Met services to identify saving and or established and Rates, GIS, Council benefits. feasibility studies Regional Network completed. Platform, Unimarket, Antivirus software etc. Achieve effective operation of at Service levels 3 services by Target Met least 3 shared services with each agreed and 30 June 2010 Council Regional service contributing appropriately implemented. Network Platform, to the costs of the umbrella Cost recovery /levy Office Max, Sophos vehicle. applied. antivris software Internal Audit. Operate within agreed budgets. Budget approved Budget Target Met annually. approved Budget approved. 1 July 2010 Write off for Broadband investigation additional. Maintain positive cash flow. Cash flow reports 30 June 2010 Met provided on time. Reports provided on No negative time. Annual cashflow cashflow arising positive apart from from BOPLASS Broadband issues. actions Survey customers of active shared Annual surveys 30 June 2010 Not achieved services at least annually to undertaken. Services not yet mature measure their satisfaction with enough. levels and quality of service.
174 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Outcomes Action Measure Result
Survey directors at least annually Annual surveys 30 June 2010 Not Met to gauge their satisfaction with prepared and Survey for year to 30th the: circulated to June circulated. directors. • Extent and quality of new 6 weekly Reports provided service investigation and Executive Officer reports business case development. report to directors. • Administration and Secretarial Annual surveys 30 June 2010 support /reporting. prepared and circulated to • Operations of advisory groups. directors. • Governance and Strategic role Annual review by of the board. directors. • Performance of the Executive Chairpersons report Officer of BOPLASS Ltd. to directors.
Data Capture Systems Limited
Background Taupo District Council is the 100 per cent owner of Data Capture Systems Limited (DCSL).
Data Capture Systems Limited was a council-controlled organisation (CCO) as defined by the Local Government Act 2002. In February 2006 the directors of Data Capture Systems Limited resolved that it would cease operations. In June 2006, resolutions were passed to wind down the company during the course of the 2006/07 year. The company is now exempt, under section 7 of the Local Government Act 2002, from definition as a council-controlled organisation.
Destination Lake Taupo Limited
Background Taupo District Council is the 100 per cent owner of Destination Lake Taupo Limited (DLTL). Destination Lake Taupo Limited is a non-trading company that is held only for name-protection purposes. It has no revenue or expenditure, assets or liabilities. Council has passed a resolution, under section 7 of the Local Government Act 2002, making Destination Lake Taupo Limited exempt
from definition as a council-controlled organisation. ORGANISATIONS COUNCIL CONTROLLED
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 175 The Taupo Electricity Limited (TEL) Investment Fund
On 5 September 1995, Taupo District Council sold its investments in Taupo Electricity Ltd (TEL) and Taupo Generation Ltd (TGL), providing a net investment fund of $61.3 million.
The policies regarding the use of the capital and investment income are included in the Treasury Management Policy. Amongst other requirements, the policies stipulate that the investment income earned on the inflation-proofed sale proceeds be available for distribution each year, with the distribution determined during the Long-Term Council Community Plan/Annual Plan process. Income available for distribution in 2009/2010 was $4.114 million (budget $4.377 million). Where the income received from the fund did not meet the amount required for distribution by the LTCCP/ Annual Plan, the balance was met by a fluctuation reserve. The fluctuation reserve was also utilised to meet any inflation-proofing that was not achieved through capital growth. With Council’s withdrawal from its managed equities investments in October 2006, the fluctuation reserve, which was in a significant negative balance at that time, was ‘washed out’ into the ‘losses on investments over time’ figure.
During 2002/03, Council resolved to use $10 million of the TEL Investment Fund capital to repay Taupo/Kaingaroa and Mangakino/Pouakani general rate debt. In addition to that amount, approximately $48 million has been generated by the fund (or met by the fluctuation reserve) during the years of the fund’s existence, and utilised for rates subsidy or to contribute to the funding of various capital projects which would otherwise have required rates funding.
The principal value of the fund at 30 June 2010 was $52,848,633 (2009 $53,408,612). The cumulative sale proceeds and the other significant items impacting the fund’s principal value over the course of its history are shown below:
$
Initial proceeds on sale, September 1995 61,273,557
Inflation-proofing (temporarily suspended at 1 July 2006) 14,867,291
Less: Establishment of fluctuation reserve (4,500,000)
Less: Repayment of public debt in 2002/03 year (10,000,000)
Fund value after capital adjustments $61,640,848
Cumulative capital losses on investments over time (8,792,215)
Value of TEL Investment Fund at 30 June 2010 $52,848,633
Comparative: Value of TEL Investment Fund at 30 June 2009 $53,408,612
176 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 ELECTED MEMBERS AND STAFFING Council Members At 30 June 2010
Taupo District Council is responsible and accountable to the ratepayers of the Taupo District.
His Worship the Mayor Deputy Mayor, Turangi-Tongariro Mr Rick Cooper, JP Ward, Chair of Regulatory and Hearings Committee, Chair of Turangi Ph: 07 377 0670 Tongariro Community Board Bus Ph: 07 378 7547 Mob Ph: 027 494 2362 Cr Don Ormsby, JP, QSM Email: [email protected] Ph: 07 386 8357 Mob Ph: 0274 761 289 Email: [email protected]
Taupo-Kaingaroa Ward, Chair Taupo-Kaingaroa Ward of Taupo-Kaingaroa Mangakino- Cr Doreen Blyth, JP Pouakani Committee Ph: 07 378 8774 Cr Kathryn Uvhagen, BSoc Mob Ph: 021 790 056 Sci Ph: 07 378 8515 Mob Ph: 027 494 4973 Fax: 07 377 4561 Email: [email protected]
Taupo-Kaingaroa Ward Taupo-Kaingaroa Ward Cr Bernhard Chrustowski Cr Mich’ael Downard Ph: 07 378 7559 Ph: 07 377 3417 Email: bernhard.chrustowski@ Bus Ph: 07 378 5881 xtra.co.nz Mob Ph: 021 781 593 Email: [email protected]
Taupo-Kaingaroa Ward, Mangakino-Pouakani Ward Cr Christine McElwee, BA. Cr Ailsa Gathergood, JP, BA, Dip. Tchg RGON Cert. Adult Tchg Ph: 07 378 8790 Ph: 07 882 8222 Mob Ph: 027 437 6223 Mob Ph: 027 441 8107 Fax: 07 378 8790 Fax: 07 882 8222 Email: [email protected] Email: [email protected]
Taupo-Kaingaroa Ward Turangi-Tongariro Ward Cr Barry Hickling Cr Gary Keepa Ph: 07 378 6818 Ph: 07 386 8301 Email: [email protected] Mob Ph: 027 224 5413 Fax: 07 386 8302 Email: [email protected]
Taupo-Kaingaroa Ward Cr Andrew Welch, JP, Dip.Agric., Dip. VFM, M.N.Z.I.A.S.,A.N.Z.I.V. Regd. Valuer Ph: 07 333 8063 Mob Ph: 027 297 1839 Fax: 07 333 8063 Email: [email protected]
178 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Turangi/Tongariro Community Board Members At 30 June 2010
Chairman Don Ormsby Gary Keepa Ph: 07 386 8357 Ph: 07 386 8301 Mob Ph: 0274 761 289 Mob Ph: 027 224 5413 Email: [email protected] Fax: 07 386 8302 Email: [email protected]
Terry O’Brien Mary Smallman Ph: 07 386 5189 Ph: 07 386 5079 Mob Ph: 027 242 8153 Email: [email protected] Email: [email protected]
Don Campbell Maggie Stewart Ph/Fax: 07 386 7409 Ph: 07 386 5519 Mob Ph: 0274 905 354 Email: [email protected]
Jan Lockyer Sue McCarthy Ph/Fax: 07 386 7317 Ph/Fax: 07 386 7681
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 179 Council Management
Council (elected members) appoints a Chief Executive to manage the operations of Council under the provisions of section 42 of the Local Government Act 2002. The Chief Executive officer appoints group managers to manage each of Council’s significant activities.
Rob T Williams Edward (Ted) J Anderson Chief Executive Officer Group Manager – Infrastructure & Parks BSc(Hons), CEng, MICE B Sc Civil Eng, MBS (1st class Hons)
Anne McLeod John W Campbell Deputy Chief Executive Area Manager Turangi/Tongariro B Soc Work, MS Sc, Dip PP NZCE, BE, MIPENZ, CP Eng
Alan J Menhennet Tina L Jakes Group Manager - Finance and Corporate Community Manager Mangakino Services JP BCA, CA
Gareth W Green Group Manager - Environmental Services BREP (Hons), PGradDip (Dispute Resolution), MNZPI, AAMINZ
180 TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 Council Staff
Staffing at 30 June 2010 (permanent full-time equivalents)
Division Staff Numbers
Community and Strategy 99.0
Finance and Corporate Services 74.0
Environmental Services 49.5 ELECTED MEMBERS AND STAFFING
Infrastructure and Parks 94.0
Turangi 29.0
Mangakino 11.0
TOTAL 356.5
Comparative at 30 June 2009 372.0
Library staff supporting ‘Loud Shirt Day’
AC Baths staff braving the ‘mid-winter swim’
TAUPO DISTRICT COUNCIL ANNUAL REPORT 2009/10 181