Water Supply

What is the Water Supply activity and why is the Council involved?

The Water Supply activity provides domestic, commercial, industrial and agricultural water to the Hauraki communities. Water supply is a core service of Council; a sound water supply is a prerequisite to good public health and safety.

The Council owns and operates eight water supply networks that serve the main urban communities of , and ; the smaller communities of Karangahake, , , , and ; and the rural areas of the , Kaimanawa (rural area servicing / area), and Ohinemuri (Paeroa rural). There are currently projects to decommission the four smallest treatment plants and serve their areas from the nearest major water treatment plant within the District.

Water is essential for people and animals. The Council provides sufficient quantities of treated water for public health, amenities, to reduce the risk of water borne diseases and provides adequate water supply for livestock farming. The Council undertakes this activity to meet the community expectation that safe water will be provided, as well as to meet statutory obligations.

The water supply service is paid for through user charges and targeted rates.

How does the Council provide the Water Supply activity?

The water supply assets are grouped in networks which serve defined areas of the District. The Council provides the infrastructure for the delivery of water and manages and monitors the maintenance, renewal, replacement and expansion programmes.

The Council is involved in all facets of water supply within the District. Water sources for the various supply networks are established and consented. Water treatment plants are owned and operated to process the water to the standards required by the Ministry of Health. Pipe networks are managed and maintained to deliver water to consumers. The Council provides a rural supply to the Hauraki Plains and Ohinemuri areas, where groundwater quality is poor and surface water is insufficient to support the rural communities and farming activities.

The Council’s capital works programme aims to ensure that water supplies are in a position to meet demand which arises as a result of growth and other factors, as well as to meet the legislatively required Drinking Water Standards.

Legislation requires the Council to identify where treated water supplies are required, and to either provide the supplies directly or maintain an overview of supplies which may be provided by others.

Hauraki District Council provides water supply for fire fighting purposes in the towns of: Ngatea, Kerepehi, Turua, Paeroa, Waikino and Waihi.

Water source The Council has Regional Council resource consents to collect water from nine rivers and streams to supply its water networks. The water treatment plants, raw water sources and consented volumes are:

 Paeroa - Waitawheta River (7,000 m³/day)  Kerepehi- (15,000 m³/day)  Huirau Road, Turua – Apakura Stream (3,500 m3/day)  Waitakaruru - Waitakaruru River (6,000 m³/day)  Kaimanawa – Paiakarahi Stream (1000 m³/day) (scheduled for replacement of supply prior to 2018)  Mackaytown – Paraparakauri Stream (100 m³/day) (scheduled for decommissioning prior to 2016)  Karangahake - Groundwater Spring, located on Karangahake Mountain (100 m³/day) (scheduled for decommissioning prior to 2016)  Waikino – Mangakara Stream (250 m³/day) (scheduled for decommissioning prior to 2016)  Waihi - Walmsley Stream (3,500 m³/day) (a new raw water take from the is due to be commissioned in 2015).

Water treatment At the time of preparing this Plan, water was treated in nine water treatment plants and piped to eight individual water supply networks throughout the Hauraki District. The Mackaytown, Karangahake and Waikino existing small treatment plants will be decommissioned early in the term of this Hauraki Long Term Plan, and will be served from Paeroa and Waihi respectively. The Apakura Stream raw water resource consent will expire on 30 June 2015 and the Huirau Road small treatment plant will be decommissioned after this date. All of the Plains water will then be supplied from the Kerepehi and Waitakaruru treatment plants.

Water storage and distribution The nine water treatment plants in the Hauraki District supply treated water to 7,080 properties. Approximately 580 kilometres of pipelines transport water to connections across the network. More than 8,300 consumer water meters are installed across all the water supply systems.

The quality of water supplied varies throughout the District depending on the water source, scheme design and level of treatment.

The Hauraki District is unusual for a smaller rural authority in that nearly 80% of the water treated by the Council is consumed by the rural community for agriculture. On farms, the Council water supply provides drinking water to stock and is used within dairy sheds. Farm households also typically source their water from the public water supply. Farmers are not permitted to use the public water supply for irrigation purposes. The Plains water supply system covers an area of 33,000 hectares, and in addition to agricultural use in the rural Plains area, it supplies the townships of Ngatea, Waitakaruru, Kerepehi, Turua. The pipe system is pressurised by pumping from stations at Kerepehi and Waitakaruru.

Water for the Plains is taken from four separate sources and treated at three treatment plants (including Kaimanawa). The scheme was originally designed to provide each farm with 225 litres per hectare per day into consumers’ on-site storage over a 24 hour period. This design approach was aimed at affordability. The current system is sized on the basis of 450 litres per hectare per day. An ‘on-demand’ supply of this scale would require pipes, pumps and treatment plants significantly larger than those currently in use.

If there is significant intensification of dairy farming on the Plains, additional water sources and treatment capacity are likely to be required; however current indications from the industry are that this is very unlikely.

Outside of the public water supply systems, approximately 6,100 people on 4,060 properties in the District obtain their water supply from their own rainwater tanks, private bores, or a small number of minor piped networks at various schools and industries that serve more than a single premise.

Legally, the Council is required to act:

 when potential health risks from water supplies (whether private or public) are identified  to ensure that all inhabited buildings have safe and adequate water supplies  to ensure that fire hydrants are installed in gazetted urban fire districts.

The Council must monitor and maintain the ongoing sufficiency, effectiveness and efficiency of the water supply systems.

Key legislative drivers and guidelines

 Local Government Act, 2002 and the Local Government Act, 1974  Health Act, 1956  Health (Drinking Water) Amendment Act, 2007  Drinking Water Standards New Zealand, 2005 (revised in 2008)  Resource Management Act, 1991, and amendments  National Policy Statement for Freshwater Management

Relevant Policies, Plans and Strategies

 Water Supply Asset Management Plan  Water Supply Strategies  Engineering Manual  Development Contributions Policy  Hauraki District Plan  Operative Regional Policy Statement, Proposed Regional Policy Statement and Regional Plan  Hauraki District Council Consolidated Bylaw  Assessment of Water and Sanitary Services  Asset Management Planning Policy  Infrastructure Strategy

Demand Management

The population of the Hauraki District is projected to remain virtually static over the life of the Hauraki Long Term Plan. However, the makeup of the Hauraki population is likely to change as the population ages, resulting in smaller household sizes. In relation to water supply, studies indicate that larger households use water more efficiently per person, as tasks such as dishwashing and clothes washing require a similar minimum volume of water irrespective of the number of people living in the dwelling.

Provision of stock and process water to dairy farms is a major demand factor, significantly affected by animal stocking rates. Dairy farms in the Hauraki District already operate amongst the higher stocking rates in New Zealand; however significant stocking rate increases beyond the capacity of the water asset are not anticipated during the term of this Plan. Demand may arise, however, from areas outside of those currently served as water quality standards within the industry increase. Whilst small additional areas can be fed from the current network, significant increases would require network upgrades.

Potential changes in demand for water supplied for agricultural purposes may arise due to the effects of climate change. As farmers experience longer dry periods and droughts, their milking seasons will shorten, which may result in lower demand for water for stock.

The water supply level of service to the rural area of the Plains, as agreed with users of the Plains supply, is currently to deliver the daily requirement of water over any given 24 hour period. Many properties connected to this supply have on-site water storage to ensure continuous water availability to households and stock.

The Council is actively promoting the District as a potential location to set up business. Industrial users, depending on the nature of the industry, can be very large water users. For example, a water intensive industry could consume 1,000 cubic metres of water per day, which would represent roughly half the average daily consumption of the Paeroa water supply network. This is an area of risk due to the unknown demand that could be placed on the Council’s water supply network. The costs of increasing capacity to meet additional demands could, however, be passed on to any incoming or expanding industry.

The Council’s water supply capital works programme for 2015-25 continues to work towards meeting legislative requirements and standards for water quality, security of supply and additional capacity issues.

What are the significant negative effects on the local community?

 The cost of compliance with Central Government imposed New Zealand Drinking Water Standards can result in increased costs to water users as the Council upgrades its water treatment plants.  The public water supply draws water from the rivers and streams within the District. This reduces the flow in the streams and is perceived to have negative environmental effects on this finite resource. This needs to be carefully managed by the Council.  The easy availability of and access to clean water that is safe to drink, for members of the community connected to the public water supply, can lead to wasteful use. There is a need to manage public expectations and encourage respect for this resource.  There are potential conflicts between the use of water and community expectations. Many believe they have a right to water, and that water should be free of charge. The cost of supplying treated water needs to be communicated to the community in order to promote understanding and knowledge.  As water infrastructure is expected to have a life of between 50-150 years, the costs of supplying water to communities can span more than one generation of ratepayers. If not responsibly managed and apportioned, one generation could benefit at the expense of another.

Collaborative Projects Education campaigns The Council currently works with -Piako and Thames-Coromandel District Councils and the Waikato Regional Council on water conservation initiatives. The councils operate a community education venture to raise the level of awareness of the impacts of water use on the environment and on infrastructural services. The Smart Water Use campaign is an example which is advertised each summer through newspapers, websites and radio advertising.

The Council provides funding to both the Enviroschools and Zero Waste education programmes in the District’s primary schools. These programmes address sustainable use of water.

Consultative Committee Water and Waste The Council has a Standing Committee in place called the Consultative Committee Water and Waste. This Committee was established to enable special interest groups to be informed of and contribute to important water and waste issues. This advisory Committee provides recommendations to the Council, made in conjunction with a number of participating community and stakeholder groups such as Federated Farmers, local iwi and the Forest and Bird Society.

Levels of Service and how the Council will measure them

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) The Council provides water supply services at agreed levels of service. Measure: Annual 2014: 63% of 2015-25: Equal to or Customers are satisfied with the customer customers greater than 60% of cost of water supplied by the satisfaction satisfied customers satisfied Council. survey Water services meet regulatory requirements. Number of No abatement 2015-25: Measure: abatement notices and No abatement or The water supply service is notices and enforcement enforcement operated in compliance with enforcement notices received notices received. regulatory requirements. notices received (2013/14) Good quality water is supplied to consumers. Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) Measure: Annual 2014: 80% of 2015-25: Equal to or Customers are satisfied with the customer customers greater than 80% of water quality from Hauraki District satisfaction satisfied customers satisfied Council networks. survey

Water is safe to drink.

Measure: The NZ New measure  Kerepehi 2014/15 Water treatment plants will comply Drinking Water  Waitakaruru with the New Zealand Drinking Standards 2008 2015/16 Water Standards (NZDWS) 2008.  Waihi 2015/16  Paeroa 2015/16

Protection is provided to the community and the environment.

Measure: Mapping done 95.3% 2015-25: Equal to or Fire hydrants are provided to via GIS compliance (GIS greater than 95% urban fire districts within a 135 software analysis compliance metre radius of the closest completed 2012) property boundary. A reliable water supply is provided.

Measure: Service request 1 customer per 2015-25: <5 customers Number of customers whose database 1000 per 1000 connections water supply is interrupted more connections than twice in a 12 month period due to unplanned loss of supply incidents.

Timely response to customer requests.

Measure: Service request  Emergency: 2015-25: Customer requests are responded database no incidents  Emergency call- to within target timeframes:  Urgent: outs: 100%  Emergency call outs: resolved 78%  Urgent customer <1 hour  Priority: requests: 80%  Urgent customer requests: 74%  Priority customer response <1 hour  Routine: requests: 80%  Priority customer requests: 61%  Routine customer assess <4 hours requests: 85%  Routine customer requests: call back <3 working days

Mandatory Performance Measures (2015-25)

The following table includes the Government’s mandatory performance measures that all councils are legislatively required to measure annually and report on in their Annual Reports.

Measure: The extent to which the local authority’s drinking water supply complies with: a) part 4 of the drinking water standards (bacteria compliance criteria), and b) part 5 of the drinking water standards (protozoal compliance criteria). Method of measurement: Extract from National Water Information New Zealand (WINZ) database  Kerepehi – plant upgrade completed, bacteria and protozoal compliance met  Waitakaruru – pre treatment plant upgrade, non compliance with NZDWS 2008  Paeroa – pre treatment plant upgrade, non-compliance with NZDWS 2008  Waihi – treatment plant upgrade underway but not complete, non-compliance with NZDWS 2008 Baseline:  Kaimanawa – non compliance with NZDWS 2008  All other supplies – non compliance with NZDWS 2008 Note: All supplies have generally been compliant with the Drinking Water Standards for NZ (DWS) 2000, however most plants do not have sufficient protozoa measures to comply with the current standard. Target:  Kerepehi – full compliance  Waitakaruru – full compliance from July 2016, prior to that, full compliance with DWS 2000  Paeroa – full compliance from July 2015, prior to that, full compliance with DWS 2000  Waihi – full compliance from July 2015, prior to that, full compliance with DWS 2000  Kaimanawa – Rural Agricultural Standard applies and has not yet been produced by the Ministry of Health. As an interim measure, target is compliance with DWS 2000  All other supplies – compliance with DWS 2000 until decommissioned. Measure: The percentage of real water loss from the local authority’s networked reticulation system (including a description of the methodology used to calculate this). Method of measurement:  Calculation methodology = Volume of water sold (sourced from water meter invoicing system, from rates department) versus volume of treated water produced by the water treatment plants (sourced from water treatment plant treated water supply meter(s)).  Hauraki Plains – 32%  Paeroa – 37%  Waihi – 13% Baseline:  Kaimanawa – 31%  Karangahake – 35%  Mackaytown – 16%  Waikino – 68% Target: The percentage of unbilled water versus the volume of treated water produced is less than 30%. Measure: Where the local authority attends a call out in response to a fault or unplanned interruption to its networked reticulation system, the following median response times measured: a) attendance for urgent call-outs: from the time that the local authority receives notification to the time that service personnel reach the site, and b) resolution of urgent call-outs: from the time that the local authority receives notification to the time that service personnel confirm resolution of the fault or interruption. c) attendance for non-urgent call-outs: from the time that the local authority receives notification to the time that service personnel reach the site, and d) resolution of non-urgent call-outs: from the time that the local authority receives notification to the time that service personnel confirm resolution of the fault or interruption. Method of measurement: The Customer Service Request Database will be used to determine the time that the customer service request / complaint was logged.

The field-staff job-sheets will be used to determine the time to site, and time to resolve. The job-sheets are also used to record the details about the repair work carried out.

The level of service reporting spreadsheet is used to collate the incoming data,and calculate and report on performance. Median time for staff to 20 minutes arrive on site Urgent call out Median time for staff to 60 minutes restore water supply Baseline: Median time for staff to 45 minutes arrive on site Non-urgent call out Median time for staff to 3 hours 25 minutes resolve fault Target: Median time for staff to Less than 1 hour, anywhere arrive on site within the district Urgent call out 99% or more of all water supply Median time for staff to faults are resolved within 8 restore water supply hours Median time for staff to Less than 4 hours, anywhere Non-urgent call out arrive on site within the district Median time for staff to 99% or more of all water supply resolve fault faults are resolved within 8 hours Measure: The total number of complaints received by the local authority about any of the following: a) drinking water clarity b) drinking water taste c) drinking water odour d) drinking water pressure or flow e) continuity of supply, and f) the local authority’s response to any of these issues expressed per 1000 connections to the local authority’s networked reticulation system. Method of measurement: The Customer Service Request Database will be used to determine the number of complaints received about the listed issues. Water quality issues: 12.5 per 1000 connections (clarity; taste; odour) Service quality issues: (poor response to a service request) Baseline: Water pressure / flow issues: 2.5 per 1000 connections (pressure; flow; continuity of supply) Total: 15 per 1000 connections Water quality issues: No more than 5 complaints per 1000 (clarity; taste; odour) connections Service quality issues: (poor response to a service request) Target: Water pressure / flow issues: No more than 5 complaints per 1000 (pressure; flow; continuity of supply) connections Total: No more than 10 complaints per 1000 connections Measure: The average consumption of drinking water per day per resident within the territorial authority district. Method of measurement: Census meshblocks have been used to calculate the population within the urban boundaries.

Water billing records for customers’ water meters are used to calculate the volume of water sold to each property in the District.

GIS analysis is used to identify which properties are located in an urban area, and thereby calculate the total volume of water sold to urban customers, and the urban population.

The final calculation is: the volume of water sold divided by the population. Urban water use 277 litres / person / day Baseline: Agricultural water use 247 litres / hectare / day Urban water use Less than 300 litres / person / day Target: Agricultural water use Less than 300 litres / hectare / day

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this proposed 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

Across the Council’s network activities, the customer can now expect the same level Timely response to of service for response times to emergency, urgent, priority and routine call outs and customer requests. service requests. This is a change in level of service wording (for the purposes of Levels of Service Changes in Levels of Service

clarity and transparency) for the activities of Roading, Water Supply, Stormwater, Land Drainage and Wastewater.

Drinking water compliance was assessed against the Drinking Water Standards for NZ 2000 exclusively in Hauraki District up to 1 July 2014. As the upgrade works proceed across the District, compliance monitoring will be carried out against the NZ Drinking Water Standards 2008. The newer Standards now include Protozoa barriers (Giardia and Cryptosproidium) as primary requirements. Water is safe to drink.

All of the Council’s water supplies have some barriers against Protozoa, however until the upgrades are completed, these barriers do not meet the new Standards. Upgrades are expected to be completed by 1 July 2015 for all water networks other than Kaimanawa, which is expected to comply from 2018.

Possible future changes to Levels of Service

This Hauraki Long Term Plan proposes Levels of Service which reflect community needs and expectations for the service for the years 2015-25. Changing circumstances may in some cases impact on these service levels in unforeseen ways. The table below shows the possible future changes to Levels of Service.

Levels of Service Possible changes to Level of Service

Water services meet All supplies except Kaimanawa are expected to be improved to comply with NZDWS regulatory requirements. 2008 by 1 July 2015.

Future Directions Local Government Act reform The current capital programme and the programme proposed for the 2015-25 period will complete the Council’s long term strategy for water treatment and treated water storage.

No developments in the regulatory environment are foreseen during the period and beyond, that would significantly alter the way in which the Water Supply activity is carried out.

Emphasis will be placed on further developing the renewal strategy, particularly for the pipe network, in order to ensure that the level of service is maintained while at the same time obtaining the best value possible from the assets.

Programmed actions for 2015-25 Capital Works – District Wide Overview Over the 10 year period, the Council has planned $11.9million of capital expenditure for the Water Supply activity. Within that, the total renewals budget for the 10 year period is $7.3million – that is money to retain our current levels of service. $4.6million is associated with increasing the current levels of service, with the majority of this activity occurring in the first two years of the Plan in the Plains and Kaimanawa schemes.

The breakdown of the capital projects, by scheme, is detailed below.

In addition to the scheme-by-scheme projects, $2.6million has been allocated for ‘district-wide’ renewal works over the 10 year period comprising the following:

 pipeline renewals - $726,000 (renewal)  water meter renewals - $486,000 (renewal)  water treatment component renewals - $1.26million (renewal)  district wide bulk water - $160,000 (level of service capital).

Capital Works Schedule – by Scheme Paeroa A total of $905,000 is planned to be spent on the Paeroa scheme, comprising the following:

Type of Capital Project Year Total Cost Expenditure Paeroa resource consent renewal 2017/18 $129,000 Renewal Paeroa membrane renewals 2022/23 $726,000 Renewal Paeroa standby pump for Dell pumpstation 2016/17 $26,000 Level of Service Paeroa zone metering 2015/16 $45,000 Level of Service

Plains The Council is planning to spend $5.8million on capital works associated with the Plains water scheme.

There are two major projects in the 2015/16 year: water storage ($2.9million) and the Waitakaruru upgrade ($1million). In year 2021/22 there is $1.0million of expenditure planned for the renewal of the Kerepehi membranes.

$185,000 will be spent on zone metering over 2015/16-2017/18.

A full breakdown of the capital projects over $10,000 for the Plains scheme is as follows:

Type of Capital Project Year Total Cost Expenditure 2015/16 – Level of Service Plains reticulation zone metering $185,000 2017/18 Plains reticulation booster and transfer Level of Service 2016/17 $145,000 pumps Plains reticulation treated water storage 2015/16 $2.9million Level of Service Plains resource consents Waitakaruru 2017/18 $108,000 Renewal Plains resource consents Waitakaruru Level of Service 2015/16 $30,000 discharge Plains Waitakaruru upgrade to NZDWS Level of Service 2015/16 $1million 2008 2017/18, 20/21, Renewal Plains Waitakaruru dose pump renewals $62,000 23/24 2015/16 – Level of Service Plains Waitakaruru riparian planting $138,000 2021/22 Plains Waitakaruru chemical (PACL) Renewal 2016/17 $25,000 storage tank Plains Waitakaruru reticulation flowmeter 2022/23 $15,000 Renewal Plains Waitakaruru backwash variable Renewal 2022/23 $16,000 speed drive (VSD) Plains Waitakaruru State Highway 25 VSD 2022/23 $15,000 Renewal 2015/16, 17/18, Renewal 18/19, 20/21, Plains Kerepehi UV lamp renewals $112,000 21/22, 23/24, 24/25 Plains Kerepehi reticulation pump 1 VSD 2021/22 $15,000 Renewal Plains Kerepehi membrane renewals 2021/22 $1,035million Renewal

Kaimanawa $2.03million is planned to be spent on the Kaimanawa scheme. $2.0million of that is to enable connection of the Kaimanawa scheme to either the Plains or Paeroa schemes in 2015/16. The remaining $32,000 is for decommissioning the existing water treatment plant (in 2016/17). (Both projects are renewals).

Waihi $473,000 is planned to be spent on the Waihi scheme, comprising membrane renewals ($457,000 in 2022/23) and an outflow meter ($6,000 in 2023/24). (Both projects are renewals).

Waikino, Mackaytown, Karangahake, Ohinemuri For these three schemes, there are no significant capital works projects planned above the ‘district-wide’ programme.

The full list of capital works is in the “Capital Works Schedule” which forms part of the “Financial Statements”. This is available at www.hauraki-dc.govt.nz

What is the cost of operating the Water Supply activity?

Budget Forecast Forecast ForecastForecastForecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Treatment 1,383 1,260 1,308 1,327 1,382 1,441 1,506 1,577 1,654 1,738 1,830 Reticulation 562 540 560 582 606 632 660 691 725 762 803 Intakes and Headworks 422 527 359 389 442 389 409 426 452 472 500 Fixed Costs 166 201 206 211 217 223 230 237 245 253 262 Overheads 774 811 828 845 864 884 905 928 952 970 1,006 Pumpstations 25 24 25 36 37 39 41 42 44 47 49 Major Maintenance 98 74 311 174 139 161 320 174 237 116 502 Other 389 381 368 375 319 338 334 343 351 373 371 Depreciation/Assets written off 2,280 1,321 1,330 1,412 1,412 1,412 1,525 1,525 1,525 1,668 1,668 Interest 816 1,117 1,213 1,123 1,096 1,041 991 942 938 955 894 6,915 6,256 6,508 6,474 6,514 6,560 6,921 6,885 7,123 7,354 7,885

REVENUE Fees, Charges and Other Income 203 107 107 107 107 107 107 107 107 107 107 External Subsidies 3,200 1,753 3,173 ------Targeted Rates 6,013 6,134 6,256 6,381 6,509 6,639 6,772 6,907 7,046 7,186 7,330 General Rates 0 ------9,416 7,994 9,536 6,488 6,616 6,746 6,879 7,014 7,153 7,293 7,437

OPERATING SURPLUS/(DEFICIT) 2,501 1,738 3,028 14 102 186 (42) 129 30 (61) (448)

Funding Impact Statement for the Water Supply activity

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan Forecast Forecast ForecastForecast ForecastForecast Forecast Forecast Forecast Forecast $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties ------Targeted rates 6,013 6,134 6,256 6,381 6,509 6,639 6,772 6,907 7,046 7,186 7,330 Subsidies and grants for operating purposes ------Fees and charges ------Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts ------Total Operating Funding (A) 6,013 6,134 6,256 6,381 6,509 6,639 6,772 6,907 7,046 7,186 7,330

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 3,044 3,007 3,136 3,092 3,141 3,223 3,500 3,488 3,708 3,761 4,317 Finance Costs 816 1,117 1,213 1,123 1,096 1,041 991 942 938 955 894 Internal charges and overheads applied 775 811 828 845 864 884 905 928 952 970 1,006 Other operating funding applications ------Total Applications of Operating Funding (B) 4,635 4,935 5,177 5,060 5,101 5,148 5,396 5,358 5,598 5,686 6,217

SURPLUS (DEFICIT) OF OPERATING FUNDING (A -1,378 B) 1,199 1,079 1,321 1,408 1,491 1,376 1,549 1,448 1,500 1,113

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure 3,200 1,753 3,173 ------Development and financial contributions 96 ------Increase (decrease) in debt 7,719 1,526 (1,792) (768) (1,167) (1,246) (1,078) (203) 110 (1,116) (737) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) 11,015 3,279 1,381 (768) (1,167) (1,246) (1,078) (203) 110 (1,116) (737)

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand ------to improve the level of service 12,421 4,249 282 51 17 16 13 7 - - - - to replace existing assets 778 229 2,178 502 224 229 285 1,339 1,558 384 376 Increase (decrease) in reserves (806) ------Increase (decrease) of investments ------Total Applications of Capital Funding (D) 12,393 4,478 2,460 553 241 245 298 1,346 1,558 384 376

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) (1,378) (1,199) (1,079) (1,321) (1,408) (1,491) (1,376) (1,549) (1,448) (1,500) (1,113)

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) 2,501 1,738 3,029 16 103 186 (42) 131 30 (61) (448)

Depreciation/Assets written off 2,280 1,321 1,330 1,412 1,412 1,412 1,525 1,525 1,525 1,668 1,668 Subsidies and grants for capital expenditure (3,200) (1,753) (3,173) ------Development and financial contributions (96) ------Vested Asset Income (107) (107) (107) (107) (107) (107) (107) (107) (107) (107) (107) SURPLUS (DEFICIT) OF OPERATING FUNDING (A -1,378 B) 1,199 1,079 1,321 1,408 1,491 1,376 1,549 1,448 1,500 1,113