SWDC-Long-Term-Plan.Pdf

Councillors from left to right back row: Jeff Gash, Terry Magill, Marin Glucina, Bill Machen, Herman Van Rooijen, Tua Numanga. Left to right front row: Thomas Lee, Jenny Shattock (Deputy Mayor), Neil Sinclair (Mayor), Adrienne Bell, Anne Edmeades

•Council's aspiration for how Council would like to see the Vision community in 30 years Outcomes •Council's 10 year goals to help achieve the vision Strategies •What Council will do to achieve the outcomes Policies •Sets boundaries for what Council can and cannot do

•Gives Council the ability to undertake enforcement, where Bylaws necessary Procedure •Tells staff how things are done

•Describes what tasks individual staff members are required Job descriptions to do to achieve the vision

Consultation Question 1: Do you agree with the direction proposed in Council's nine outcomes and eight strategies?

Consultation Question 2: Should Council play a more proactive role in this field in water allocation, land use and water quality issues in order to protect existing jobs in the South Waikato? Consultation Question 3: If you answered 'yes' to the above question, what role should Council play?

Consultation Question 4: Should Council remain involved in the areas of economic development? (eg Information centres, Waikato River Trails, community events and trade training) Consultation Question 5: Should Council remain involved in the areas of community development? (eg community events, grants, youth, capacity building)

The total cost of providing our infrastructure (roading and three waters) 100,000,000 90,000,000 80,000,000 70,000,000 60,000,000

$ 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 -

Maintenance Capital

The cost of providing stormwater 7,000,000

6,000,000

5,000,000

4,000,000 $ 3,000,000

2,000,000

1,000,000

Maintenance Capital

The cost of providing water supply 12,000,000

10,000,000

8,000,000

$ 6,000,000

4,000,000

2,000,000

Maintenance Capital

The cost of providing roading 40,000,000

35,000,000

30,000,000

25,000,000

$ 20,000,000

15,000,000

10,000,000

5,000,000

Maintenance Capital

Total '3 Waters' Asset Replacement Funding 25

5 $ (millions) 0

-5

-10

-15

Stormwater Asset Replacement Funding 14.00 12.00 10.00 8.00 6.00 $ (millions) 4.00 2.00 0.00 2016-2020 2021-2025 2026-2030 2031-2035 2036-2040 2041-2045 Year

Water Asset Replacement Funding

2$ (millions)

-1

-2 Year

Wastewater Asset Replacement Funding 10.00

8.00

6.00

4.00 $ (millions) 2.00

0.00 2016-2020 2021-2025 2026-2030 2031-2035 2036-2040 2041-2045 -2.00 Year

Maximum Rates Increases 6

2 Rate Increase Increase Rate (%)

0 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25

LGCI 2%

Total amount of rates collected 2015-25 35,000,000

30,000,000

25,000,000

20,000,000 ($) 15,000,000

10,000,000

5,000,000

Consultation Question 6: What is your preferred location for a skatepark in Tokoroa: Logan Street or Tokoroa Memorial Sportsground?

Consultation Question 7: What is your preferred option for the future of Strathmore Park?

Draft Long Term Plan 2015-25 Concept Plans

5. CONCEPT PLANS Ngā Mahere o te Āpōpō’ Between 2006 and 2008, Council prepared and adopted concept plans for the settlements of Tokoroa, Tīrau and Arapuni. In 2010 Pride in Putāruru (PIP) adopted a plan for Putāruru called 'Vibrant Putāruru': A strategy for the future' that was formally recognised by Council as the concept plan for Putāruru. This document is now considered by PIP to be out of date and because of this there is currently no concept plan in place for Putāruru. These documents have not been updated since they were adopted and many of the actions identified in the concept plans have either been completed, or will not be completed because of changes in circumstances. The Long Term Plan provides an opportunity to update our concept plans by incorporating them formally into the Long Term Plan process and document. The advantage to this is that it allows the concept plans to link to our outcomes and strategies in the Council Strategy and it also means that the future actions recommended to the concept plans have money and resourcing allocated to them.

5.1. Status of the existing concept plans Each concept plan had principles and an action plan which described what activities were going to be undertaken and what agency (or agencies) were going to be responsible for undertaking the actions. The tables below present the actions, whether they have been done and if not, why not.

5.1.1. Tokoroa

Principles: . Celebrating diversity (cultural well-being) . Attractive, thriving town (urban beautification) . A prosperous community (economic development) . Keeping it green (environmental enhancement) . Healthy, happy and safe (social well-being)

Action Plan Leader Status High Priority Consider options for redesigning Leith Place to make it Council Council has allocated $1.5 more appealing to visitors and residents million for the upgrade of Leith Place/CBD and has commissioned Bossley and Associates and Visitor Solutions to work with Council and the community to describe what the future of Leith Place should look like. Increased promotion of adopt-a-street initiatives and CBD Council (lead only), $20,000 has been put into beautification, including tidy-up of derelict and run-down residents and the budget to support the commercial buildings businesses tidy-up of derelict buildings. Complete and implement the Transport Corridor (SH1) Council and NZTA The traffic flow on and off Strategy to attract increased numbers of travellers into State Highway 1 is a Tokoroa’s CBD component of the Leith Place/CBD development project. Construct and establish the South Waikato Events Centre Council, Sports and Completed as the key facility for community recreation events in Leisure Board Tokoroa and surrounding areas Establish a prominent ‘What’s On In Tokoroa’ sign for the Council, mainstreet Completed benefit of visitors and residents organisation, service clubs, Sports and Leisure Board

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 43 of 200 Draft Long Term Plan 2015-25 Concept Plans

Action Plan Leader Status Future Talking Poles events and development of Talking Talking Poles Trust This is ongoing. However Poles Trail from 1 July 2015, the Talking Poles will be managed in-house by Council, with support from the Talking Poles Trust.. Work together as a community to fulfil the aspirations of Raukawa Trust This is not a Council led hapū and whānau (eg, Raukawa Reo Strategy) Board, schools, wider initiative, however Council community continues to work with Raukawa to achieve the aspirations of hapū and whānau. Economic development projects (eg, Dairy Push, trades Council, South Ongoing. Significant impact training, tourism and investment promotion) Waikato Economic is expected to be achieved Development Trust, from the formation of the industry SWIF and South Waikato Development Trusts in the area of economic development. Develop walkways and cycleways, particularly along Council Funding has been provided streams and close to bush areas (eg, following Whakauru to the Waikato River Trails Stream) Trust for cycleway/walkway development and maintenance. The $5 miliion economic and community development funding was partially used for the upgrade of the Te Waihou Walkway and the Cougar Park mountain bike trails. $376,000 is still available in the Riverside Access Reserve to fund future walk/cycle way access. Reduce the amount of litter around town entranceways, Council and Council has a litter parks and reserves Contractors collection contract and a staff member is partially employed to support this cause. Maintain and further develop anti-graffiti initiatives Council and South The Graffiti removal Waikato Safer contractor engaged Community Council appears to be having very positive outcomes. Replant CBD gardens Council This would be part of the Leith Place/CBD upgrade project Implement Tokoroa Airport Strategic Plan Council The future direction of the airfield is addressed in this Long Term Plan.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 44 of 200 Draft Long Term Plan 2015-25 Concept Plans

Action Plan Leader Status Improve student engagement and achievement Schools, Money from the $5 million communities, Ministry economic and community of Education, Youth development fund was Council, Waiariki, used for the development Raukawa Trust of a welding course at the Board, Te Wananga Trade Training Centre and O Aotearoa for the purchase of vans for the Tokoroa High School Services Academy so that more students could be exposed to this programme. Youth sector trials have been implemented with success. Medium Priority Ensure local organisations that address community safety Police, Council, South Council has provided are sufficiently supported to address domestic violence, Waikato Safer funding to the South youth offending and other concerns Community Council, Waikato Safer Community local communities Council to ensure that they can meet their goals and objectives. One of the initiatives that Council has provided support is for the purchase of CCTV cameras which will be installed in the Tokoroa CBD in 2015-16. Investigate the potential to establish a South Waikato Council, South This has not been Community Foundation, to encourage local giving for Waikato Economic completed because of local purposes Development Trust changes in priorities. CBD market days, competitions, awards, events and Tokoroa mainstreet The Tokoroa Business street entertainment organisation and Association has recently retailers been established. Implement South Waikato Local Action Plan for Climate Council, industry and Three actions have been Protection other stakeholders implemented each year by Council. Urban tree beautification programme Council Ongoing. Council actively maintains our urban trees to ensure that they are healthy, safe and look nice. Investigate options for a more co-ordinated approach and Council Council facilitates a incentives toward community environmental initiatives number of environmental (eg, ‘Adopt-a-Gully’) initiatives, such as EnviroSchools. Develop and enhance Lake Moana nui Council Dam repairs, silt removal and silt trap projects have been completed as well as plantings and lake beautification. Friends of the Lake group established. Maintain and develop Youth Council and implement other Council, Raukawa Completed - Council has aspects of the South Waikato Youth Strategy Trust Board, schools, the Youth Advisory Board. others Investigate establishment of an Events Manager role for Council Council is currently the District considering this. Pacific Arts Tourism Initiative Local Pacific Islands This is not a Council-led stakeholders initiative.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 45 of 200 Draft Long Term Plan 2015-25 Concept Plans 5.1.2. Putāruru As outlined previously, there is currently no Concept Plan in place for Putāruru.

5.1.3. Tīrau

Principles: . Thriving retail village . Beautiful and unique . Planning for the future . Excellent services, facilities and infrastructure . Leisure for life . Friendly, engaged community

TCB = Tīrau Community Board TBA = Tīrau Business Association

Action Plan Leader Status High Priority Infrastructure planning Council Completed - Council prepares Asset Management Plans regularly. Voluntary Design Guide - non‑binding document for new TCB/TBA TCB/TBA initiative. businesses about how to achieve the Tirau “look and feel” Review off-street parking signage Council Investigating traffic flow and parking as part of this Long Term Plan process. Develop a Visitor Survey as input to Tīrau Marketing Plan TBA/Council Has not been completed. Complete the new access road to Tīrau Dairy Factory Council Completed. Reserve Management Plan for Tīrau Domain Council Completed although will be renewed in near future. Toilet block at Aniwaniwa Reserve and general upgrade Council Council has decided that including access and signage developing Aniwaniwa Reserve is not a priority at this stage because of the cost. Negotiate development of new walkways: Council/TCB The $ 5miliion economic Walkway linking Church Street to Hillcrest Street and community Walkway and lookout above Bexhill Terrace Walkway and development funding was lookout – Fairview Street partially used for the development of a walkway Reservoir Walkways along Oraka Stream from the township to the Other walkways, including rural walkways Tirau Domain. Medium Priority Investigate additional off-street parking, and better Council Investigating traffic flow lighting for the Station Road carpark and parking as part of Long Term Plan. Negotiate with specific land owners around potential TCB/Council Completed. location of a Village Green Negotiate with businesses regarding potential toilets for Council Did not proceed. Toilets in the public at Top of the Hill the Information Centre complex developed.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 46 of 200 Draft Long Term Plan 2015-25 Concept Plans

Action Plan Leader Status Enhance existing walkway through Matamata County Council Through the $5 million Reserve economic and community development fund, Council has granted funding to TCB to construct a walkway from Tīrau to the Tīrau Domain. Youth employment initiatives TCB TCB initiative. Low priority Enhance Prospect Reserve for residents and visitors Council Ongoing maintenance ensures that the Prospect Reserve looks attractive. Promote cultural awareness (e.g. ethnic events) TCB TCB initiative.

5.1.4. Arapuni

Principles: . A pristine environment with abundant native flora and fauna, little pollution or waste, and attention to recycling . Providing for visitors including access, open space, seating and public conveniences . Maintaining and recognising historic buildings and sits, parks, reserves and walkways . Encouraging local food, arts and crafts . A village that is an outstanding example of community involvement and commitment . A village that provides employment opportunities for its residents. MRP = Mighty River Power ARA = Arapuni Residents Association WRTT = Waikato River Trails Trust

Action Leader Status Visitor Café, visitor information, public toilets, and visitor Private Investor Has not eventuated. transport Visitor Parking Council Completed - carparking has been constructed outside the Swing Bridge. Billboards Council/ARA Completed Streetscape Plan and landscaping of entranceways MRP/Council/ARA Council has been working on initiatives that will help slow traffic travelling through Arapuni. Visitor marketing – Signage, tourism maps and brochures Council/ARA Council has developed signage and brochures. Feature Map for the village ARA/Council Completed Arapuni Website Council/ARA There is a section on Arapuni on Counci's website. Tourism cluster development Council The District Plan now provides for some tourism activities in Arapuni. Waikato River Trails development WRTT Completed. Ongoing maintenance and marketing is done by WRTT.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 47 of 200 Draft Long Term Plan 2015-25 Concept Plans

Action Leader Status Graffiti busting ARA/Council Ongoing Upgrade Jones’ Landing boat ramp Council Completed Aniwaniwa Reserve public access and signage Council Council has since decided not to develop Aniwaniwa Reserve. Aniwaniwa Reserve landscaping Council Council has since decided not to develop Aniwaniwa Reserve. Rural Reserves Management Plan Council This was completed in 2010 and will be reviewed and updated during 2015- 16 Apply for Slow Town accreditation ARA/Council Have not progressed. Arapuni Village Market ARA/Council Have not progressed. Better linkages with Pride in Putaruru (PIP) and Putaruru ARA/PIP ARA/PIP initiative Visitor Information Centre Rubbish bins Council Ongoing. District Plan review Council Completed Sewerage upgrade to connect Café and toilets and Council The majority residents residents south of Coates Road south of Coates Road did not want to contribute towards a sewerage system. Traffic safety measures Council/ARA Council is implementing a number of traffic safety measures over 2015-16. Extend kerbside refuse collection south of Coates Road Council Completed. Trial of kerbside refuse and recycling service Council Completed. Coates Road intersection Council Completed Tidy up existing recycling depot ARA Removed. Increase water pressure in the village Council Completed. Investigate sewage treatment capacity Council Capacity is adequate for existing properties. Arapuni Road deviation to correct dangerous “S” bend Council Completed Rural road construction and maintenance Council Ongoing. Tidy up walkways, parks and playgrounds Council Ongoing. Address issues important to youth, including youth Ongoing Council has established the development programmes and recreational facilities Youth Leadership and Advisory Board. Preserve and maintain Village Green, including Reserve Under investigation Reserve Management Plan Management Plan was completed in 2010 and will be reviewed in 2015-16 financial year. Community events calendar ARA/Council Council helps to promote some community events through mediums such as Facebook and In Touch newsletter.

5.2. What are our plans going forward? To update and incorporate the concept plans into the Long Term Plan so that we have one strategic document that identifies what our priorities and plans are for each community. We have also decided to do a 'concept plan' covering our rural area.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 48 of 200 Draft Long Term Plan 2015-25 Concept Plans 5.2.1. Tokoroa The major capital projects planned for Tokoroa over the next ten years are shown below.

Project Year/s Cost 1 Sealing the Sport and Events Centre carpark with hotmix 2015-16 $160,000 2 Replacing the goalposts at Tokoroa Memorial Sportsgrounds 2015-17 $69,000 3 The upgrade or relocation of Logan Street Skatepark 2017-22 $346,000 4 Expansion of the Tokoroa Cemetery 2022-23 $105,000 5 Plant replacements for the South Waikato Indoor Pools 2015-18 $1.3 million 6 Plant and equipment replacements for the Tokoroa Wastewater Treatment 2015-25 $1.63 million Plant 7 New digester for the Tokoroa Wastewater Treatment Plant 2016-18 $2 million 8 Installation of a new sewer main in the southern commercial area of Tokoroa 2016-17 $62,000 9 Installation of a new monitoring and system at the Tokoroa Wastewater 2015-16 $200,000 Treatment Plant 10 Install a sludge thickener at the Tokoroa Wastewater Treatment Plant to 2015-16 $170,000 improve the nutrient removal process 11 Upgrades and replacements to the Tokoroa Water Treatment Plant 2015-25 $283,000 12 Ongoing replacements to the water reticulation network in Tokoroa 2015-25 $3.8 million

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 49 of 200 Draft Long Term Plan 2015-25 Concept Plans

Project Year/s Cost 13 Maintenance at the Sport and Events Centre (such as interior painting) 2018-25 $116,000 14 Maintenance to the Tokoroa Stormwater network 2015-25 $112,000 15 Improvements to the Tokoroa Stormwater network to improve the quality of 2015-25 $54,000 the stormwater being discharged to our waterways

In addition to this, Council also has the following planned for Tokoroa: . The redevelopment of Leith Place. This redevelopment will focus on how we can make it easier and more attractive for people travelling through Tokoroa (especially those who are travelling from the south) to stop in Tokoroa and spend money. Council has set aside $1.5 million for the redevelopment of Leith Place which includes $500,000 for the construction of a new information centre and new public toilets.

5.2.2. Putāruru The major capital projects planned for Putāruru over the next ten years are shown below.

Project Year/s Cost 1 Replacement of the goalposts and fencing at 2018-22 $60,000 Glenshea Park 2 Resurfacing the Glenshea Parks tennis and 2016-20 $265,000 netball courts 3 Refurbishment of Bent Street Skatepark 2016-20 $169,000 4 Plant upgrades to the Putāruru Pool 2015-25 $160,326 5 Upgrades to the WDFF Rooms (including 2015-20 $24,225 painting and a new stove)

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 50 of 200 Draft Long Term Plan 2015-25 Concept Plans

Project Year/s Cost 6 Upgrades to the Plaza Theatre (including new 2015-24 $72,000 carpet and painting) 7 Capital maintenance at the Putāruru Transfer 2015-25 $57,0000 Station 8 Upgrade of the weighbridge at the Putāruru 2017-18 $51,000 Transfer Station 9 Upgrades to the Putāruru Wastewater Treatment 2015-25 $424,000 Plant 10 New centrifuge for the Putāruru Wastewater 2018-19 $400,000 Treatment Plant 11 Replacements and upgrades to the Putāruru 2015-25 $175,000 stormwater network 12 Replacement of the Overdale Street Playground 2017-19 $50,000 13 Replacements and maintenance to the Putāruru 2015-25 $529,000 Water Treatment Plant and reticulation network 14 Refurbishment of the Water Park 2016-22 $43,000

In addition to this, Council also has the following planned for Putāruru: . Council would like to work with Pride in Putāruru (PIP) to develop a comprehensive vision for Putāruru, with actions and funding feeding into the Long Term Plan. It is possible that this work could result in an upgrade of Council owned features, landscaping and signage and the development of a marketing and concept plan for Putāruru. Initial work has been undertaken facilitated by Visitor Solutions, to identify strengths and opportunities for Putāruru. Further work will be carried out with PIP and key aspects are likely to include: . A planned approach to ensure that maximum benefit is gained from activities undertaken, with resources and timeframes appropriately allocated. . A two tiered approach, focusing firstly on improvement opportunities for locals primarily as a service town, secondly on the domestic market. . Identification of two distinct areas in Putaruru: the local service centre (focused around Princes Street) and the visitor precinct (focused on SH1), with associated design and development opportunities. . Building on the water theme in a cohesive and sophisticated manner to ensure that it attracts people to stop and explore and provides tangible benefits to Putāruru. Council would also like to hear what your thoughts on the 'Beautification of Putāruru' . What do you think could be done to encourage more cars to turn off the State highway and shop in Putaruru? . How do you see the future of the Putāruru CBD? . What suggestions do you have to make the Putāruru CBD a better place?

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 51 of 200 Draft Long Term Plan 2015-25 Concept Plans 5.2.3. Tīrau The major capital projects planned for Tīrau over the next ten years are shown below.

1 Plant replacements at the Tīrau Pool 2019-25 $24,000 2 Upgrades to the Tīrau Hall (including interior painting) 2015-18 $30,000 3 Strengthening of the Oraka Bridge on Okoroire Road 2017-19 $700,000 4 Maintenance and renewals to the Tīrau Wastewater Treatment Plant 2015-25 $787,000 5 Renewing the resource consent for the Tīrau Wastewater Treatment Plant 2022-24 $90,000 6 Ongoing replacements to the Tīrau stormwater network 2015-25 $53,000 7 Improvements to the Tīrau Water Treatment Plant 2015-25 $249,000 8 Improvements to the Tīrau Water Treatment Network 2015-25 $450,000

In addition to this, Council also has the following planned for Tīrau: . The construction of the Tīrau Walkway from the Tīrau Township to the Tīrau Domain. . Investigating the future of Tīrau Domain This will form part of the review of the Reserve Management Plan for the Tīrau Domain, which will begin in 2015.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 52 of 200 Draft Long Term Plan 2015-25 Concept Plans 5.2.4. Arapuni The major capital projects planned for Arapuni over the next ten years are shown on the next page.

Project Year/s Cost 1 Upgrades to the Arapuni Hall (including interior and exterior painting) 2015-22 $26,000 2 Renewing the resource consent for the Arapuni Wastewater Treatment Plant 2018-20 $86,000 3 Upgrading the Arapuni Wastewater Treatment Plant 2017-20 $496,000 4 Maintenance to the Arapuni stormwater network 2015-25 $43,000 6 Repairing cracks in the Arapuni Reservoir 2018-19 $40,000 7 Replacement of the Arapuni Bore 2018-19 $160,000 8 Plant and equipment upgrades to the Arapuni Water Treatment Plant 2015-25 $147,000 9 Replacements and repairs to the Arapuni Water reticulation network 2015-25 $314,000

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 53 of 200 Draft Long Term Plan 2015-25 Concept Plans 5.2.5. Rural Areas

The major capital projects planned for the rural community over the next ten years are shown below.

Project Year/s Cost 1 Upgrade the water supply at Whakamaru Reserve 2015-16 $14,000 2 Upgrade to the water supply at Dunhan Point Reserve 2016-17 $14,000 3 Replacement of bridges in Jim Barnett Reserve 2018-19 $13,000 4 Upgrades to the Upper Atiamuri Hall (including painting and new vinyl) 2015-19 $14,000 5 Upgrades to the Puketurua Hall (including painting the roof and exterior) 2018-22 $16,000 6 Upgrades to the Waotu Hall (including resurfacing the floor) 2015-19 $17,000 7 Upgrades to the Tapapa Hall (including floor and wall resurfacing) 2015-20 $23,000

In addition to this, Council also has the following planned for the rural community: . Investigate whether Council should play a more proactive role in the fields of land use/water quality/water allocation in order to protect existing jobs in the South Waikato . Contribute $50,000 towards a research project that is being undertaken by a number of parties (including Fonterra and Dairy NZ) looking at addressing the water allocation issues of our district.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 54 of 200 Draft Long Term Plan 2015-25 Water Supply

9. WATER SUPPLY Ngā wai whakawhiwhi

9.1. What we do . Supply potable (drinkable) water to the urban areas of Tokoroa, Putāruru, Tīrau, Arapuni . Supply potable water to the rural communities of Athol and Lichfield.

9.2. Why we do water supply A reliable supply of clean drinking water is essential for the health of our residents. In our urban areas, Council provides a water treatment and reticulation service because economies of scale make it more efficient than each household or business providing their own water supply. In most cases it is more cost efficient for rural residents to provide their own water supply. A stable supply of water is essential in supporting our existing businesses and encouraging new businesses to our district. The water supply activity contributes primarily to the following Council outcomes and strategies.

Outcome Strategy

Well managed infrastructure: Our infrastructure is Efficient and effective operations strategy: financially and operationally sustainable; it contributes positively to our district environment; and it is cost Provide sound total asset management planning. effective for household and businesses, now and in the future.

Sustainable Council operations: We have regard to Efficient and effective operations strategy: sustainability while operating in a cost effective manner. Sustainability is embedded in all of Council’s operations.

9.3. Our plans The upcoming projects that Council has planned for the next ten years are:

Major cost/project Year/s Cost Type of work eg renewal Replacements to the Tokoroa water reticulation network 2015-25 $4.331 Renewal million Replacements to the Tīrau water reticulation network 2015-24 $450,000 Renewal Replacements to the Putāruru water reticulation network 2015-25 $394,000 Renewal Replacements to the Arapuni water reticulation network 2015-25 $314,000 Renewal Plant replacements at the Tokoroa Water Treatment Plant 2015-25 $216,000 Renewal Replacement of the Arapuni Bore 2018-19 $160,000 Renewal Plant and equipment replacements at the Putāruru Water 2015-25 $149,000 Renewal Treatment Plant

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 75 of 200 Draft Long Term Plan 2015-25 Water Supply

Major cost/project Year/s Cost Type of work eg renewal Plant and equipment replacements at the Arapuni Water 2018-25 $147,000 Renewal Treatment Plant Capital maintenance to the Tīrau water reticulation network 2015-25 $140,000 Renewal Capital maintenance to the Tokoroa water reticulation 2015-25 $138,000 Renewal network Capital maintenance to the Putāruru water reticulation 2015-25 $136,000 Renewal network Plant replacements at the Putāruru Water Treatment Plant 2015-24 $109,000 Renewal

9.4. What can you expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans.

9.4.1. Drinking water treatment and distribution

Level of service Council operates and maintains four urban and two rural water supplies. This includes 10 reservoirs, 10 bore water pumps and 228 km of pipes. We ensure that residents who are serviced by Council's water supply have high-quality water available at all times for drinking and to meet other household and business needs. Council is responsible for looking after the network and making sure all statutory requirements and environmental standards are met.

How we measure our performance . Target: at least 97% of tests for E-coli (bacteria compliance) carried out on treated reticulated water will indicate a level of E-Coli in the reticulated Council systems of less than one per 100ml. . Target: all unsecure water sources will have their water treated as prescribed in part 5 of the drinking- water standards to treat protozoa. . Target: the water loss from Council's reticulation network will be no more than 20%. . Target: the median response times for call-outs in response to a fault or interruption to the water reticulation system does not exceed one hour of notice. . Target: the total number of complaints received by Council about water supply issues (including clarity, taste, odour, water pressure/flow and continuity of supply) does not exceed one complaint per 1000 connections to Council's water supply system.

9.5. How is water supply funded?

Rates • 74%

Reserves • 16%

User Charges • 10%

Note: the figures above may not add up to 100% as not all funding sources are listed here. Please refer to the 'Financials' section of this chapter.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 76 of 200 Draft Long Term Plan 2015-25 Water Supply 9.6. Significant negative effects The water supply activity has the potential to generate negative effects.

Negative Impacts What does Council do to help minimise the negative impacts? If treatment systems fail Water is regularly tested for microorganisms, chemical imbalances or then it may cause illness contamination to ensure that it meets Council and the New Zealand Drinking Water Standards. The taking of water may Council is required to obtain resource consents from the Waikato Regional result in adverse effects on Council for the water that takes for its water supplies. The Waikato Regional aquifers and/or surface Council imposes conditions on the resource consents which include: limits on water the amount of water that Council can take and the requirement for Council to undertake regular monitoring. Some users may waste High users of water (such as some industrial users) are charged for the water volume of water that they take which is an incentive to reduce unnecessary use. When water use across the district's water supply networks is higher than normal, Council introduces water restrictions.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 77 of 200 Draft Long Term Plan 2015-25 Water Supply

9.7. Financials Funding Impact Statement - Water supply Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties ------Targeted Rates 2,192 2,098 2,060 2,084 2,225 2,260 2,279 2,375 2,368 2,420 2,537 Other Revenue: Subsidies & grants for operating purposes ------Fees, charges & targeted rates for w ater supply 291 288 290 298 306 315 324 335 346 358 372 Internal charges & overheads recovered 69 - - 2 4 7 9 12 15 19 23 Local authorities fuel tax, fines, infringement fees, and other receipts ------

TOTAL OPERATING FUNDING (A) 2,552 2,386 2,350 2,384 2,535 2,582 2,612 2,722 2,729 2,797 2,932

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 692 1,258 1,250 1,283 1,319 1,374 1,399 1,444 1,492 1,545 1,622 Finance Costs ------Internal charges & overheads applied 958 344 344 325 337 338 329 331 322 316 306 Other operating funding applications ------

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 1,650 1,602 1,594 1,608 1,656 1,712 1,728 1,775 1,814 1,861 1,928

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 902 784 756 776 879 870 884 947 915 936 1,004

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure ------Development & financial contributions ------Increase (decrease) in debt ------Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) ------

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand ------to improve the level of services ------to replace existing assets 420 457 461 483 813 616 668 676 769 893 866 Increase (decrease) in reserves (420) (457) (461) (483) (813) (616) (668) (676) (769) (893) (866) Increase (decrease) in investments 902 784 756 776 879 870 884 947 915 936 1,004

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 902 784 756 776 879 870 884 947 915 936 1,004

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (902) (784) (756) (776) (879) (870) (884) (947) (915) (936) (1,004) FUNDING BALANCE ((A-B)+(C-D)) ------South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 78 of 200 Draft Long Term Plan 2015-25 Water Supply

Total 420 457 461 483 813 616 668 676 769 893 866 6,702

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 79 of 200 Draft Long Term Plan 2015-25 Stormwater

10. STORMWATER Waiwātea

10.1. What we do . Manage stormwater from the roading network. . Manage stormwater from land (ie ensure that we have appropriate systems to deal with stormwater generated from existing activities happening on the land). . Ensure that there are appropriate systems in place to deal with stormwater generated from future developments.

10.2. Why we do stormwater When appropriate systems to deal with stormwater do not exist it can cause hazards such as flooding of homes, businesses and damage to the roading network. Stormwater contributes primarily to the following Council outcomes and strategies.

Outcomes Strategies Well managed infrastructure: Our infrastructure is Efficient and effective operations strategy: financially and operationally sustainable; it contributes Provide sound total asset management planning. positively to our district environment; and it is cost effective for household and businesses, now and in the future. Sustainable Council operations: We have regard to Efficient and effective operations strategy: sustainability while operating in a cost effective Sustainability is embedded in all of Council’s manner. operations.

10.3. Our plans The upcoming projects that Council has planned for the next ten years are:

Major cost/project Year Cost Type of work eg renewal Ongoing improvements to the stormwater network in Tokoroa 2015-25 $136,000 Renewal Ongoing improvements to the stormwater network in 2015-25 $118,000 Renewal Putāruru

10.4. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 80 of 200 Draft Long Term Plan 2015-25 Stormwater 10.4.1. Stormwater

Levels of service . Council effectively manages stormwater and maintains116 km of pipes that make up the stormwater networks so that there are no flooding events. . The network complies with all statutory requirements and that public health and safety risks are minimised. This work includes maintaining the network and monitoring stormwater for contaminants to ensure harmful contaminants do not enter waterways. . Residents who experience flooding can expect to have the flooding issues investigated by Council in a timely manner. . The stormwater network is reliable.

How we will measure our performance . Target: Council will have no flood events in a year. A flood event is defined as an occasion where buildings that are compliant with the Building Code and are serviced by Council's reticulated stormwater system, experience flooding. . Target: no buildings that comply with the Building Code will be flooded. . Target: there will be no more than two 'Formal Enforcement Actions' from the consenting authority in regard to Council's compliance with resource consent conditions. . Target: the median response time for call-outs to attend a flooding event does not exceed four hours. . Target: the total number of complaints received by Council about the stormwater system does not exceed more than one complaint per 1000 connections to Council's stormwater system.

10.5. How is stormwater funded?

Rates • 93%

Reserves • 7%

User Charges • 0%

Note: the figures above may not add up to 100% as not all funding sources are listed here. Please refer to the 'Financials' section of this chapter.

10.6. Significant negative effects There is the potential for the community to experience potential negative effects which are generated by stormwater.

Negative Impacts What does Council do to help minimise the negative impacts? The stormwater network Council is required to obtain resource consents for its stormwater networks isn't maintained properly from the Waikato Regional Council. The resource consents have conditions which results in system imposed. failure Regular maintenance and inspections are undertaken.

10.7. Financials Please see the following pages for the financial information.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 81 of 200 Draft Long Term Plan 2015-25 Stormwater

Funding Impact Statement - Stormwater Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties ------Targeted Rates 483 555 608 629 703 704 704 727 721 714 750 Other Revenue: Subsidies & grants for operating purposes ------Fees, charges & targeted rates for w ater supply ------Internal charges & overheads recovered 144 - - 1 1 2 2 3 4 5 6 Local authorities fuel tax, fines, infringement fees, and other receipts ------

TOTAL OPERATING FUNDING (A) 627 555 608 630 704 706 706 730 725 719 756

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 171 161 184 167 171 193 182 188 212 201 208 Finance Costs ------Internal charges & overheads applied 40 85 86 83 89 92 93 98 100 103 106 Other operating funding applications ------

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 211 246 270 250 260 285 275 286 312 304 314

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 416 309 338 380 444 421 431 444 413 415 442

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure ------Development & financial contributions 1 ------Increase (decrease) in debt ------Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) 1 ------

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand ------to improve the level of services - 10 20 10 15 16 18 12 24 19 14 - to replace existing assets 34 33 24 29 29 30 25 37 34 34 34 Increase (decrease) in reserves (34) (43) (44) (39) (44) (46) (43) (49) (58) (53) (48) Increase (decrease) in investments 417 309 338 380 444 421 431 444 413 415 442

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 417 309 338 380 444 421 431 444 413 415 442

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (416) (309) (338) (380) (444) (421) (431) (444) (413) (415) (442) FUNDING BALANCE ((A-B)+(C-D)) ------

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 82 of 200 Draft Long Term Plan 2015-25 Stormwater

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 83 of 200 Draft Long Term Plan 2015-25 Wastewater

11. WASTEWATER Waipara

11.1. What we do . Operate wastewater networks in Tokoroa, Putāruru, Tīrau and Arapuni . Collect wastewater from homes and businesses via sewerage pipes and send it to the treatment plants, either by gravity or pumping . Treat wastewater to a high quality, then discharge it to water or landfill . Provide facilities for businesses who generate a high amount of waste (known as trade waste).

11.2. Why we do wastewater Because of the high volume of wastewater that is generated in urban areas it can be unsafe to human health and the environment if effluent is disposed of via septic tank systems. Council operates a wastewater network, which means that households, businesses and community facilities such as schools can dispose of their wastewater in a manner that is safe for both human health and the environment. Wastewater contributes primarily to the following Council outcomes and strategies.

11.3. Our plans The upcoming projects that Council has planned for the next ten years are:

Major cost/project Year Cost Type of work eg renewal Replacing plant and equipment at the Tokoroa Wastewater 2015-25 $2.422 Renewal Treatment Plant million Purchase of a new digestor at the Tokoroa Wastewater 2017-18 $1.962 Level of Treatment Plant million service Replacing plant and equipment at the Tīrau Wastewater 2015-25 $787,000 Renewal Treatment Plant Replacing plant and equipment at the Putāruru Wastewater 2015-25 $529,000 Renewal Treatment Plant

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 84 of 200 Draft Long Term Plan 2015-25 Wastewater

Major cost/project Year Cost Type of work eg renewal Upgrades to the Arapuni Wastewater Treatment Plant 2016-20 $496,000 Level of service Upgrades to the Putāruru Wastewater Treatment Plant 2018-19 $424,000 Level of service Renewal of the Arapuni Wastewater Treatment Plant resource 2018-20 $86,000 Renewal consent

11.4. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans.

11.4.1. Wastewater collection and treatment

Levels of Service . Council maintains about 167km of sewer pipes and 18 pumping stations that make up the district’s wastewater network. Each year the wastewater network carries about 55,430 cubic metres of sewage effluent to the Council’s treatment plants, ensuring that sewage is treated and disposed of to comply with environmental standards. . Residents can expect timely responses to interruptions to the wastewater reticulation system. . Residents can expect a reticulated wastewater treatment system that is reliable and does not fail unnecessarily. . Council will operate its wastewater treatment systems in an environmentally responsible manner and ensure that it complies with the conditions of the resource consents it holds with the Waikato Regional Council.

How we will measure our performance . Target: the total number of dry weather overflows from the sewerage system shall not exceed 3 per 1,000 sewerage connections to the sewerage system. A dry weather overflow is when a blockage causes wastewater in the reticulated system to spill. . Target: the median response times for call-outs in response to a fault or interruption to Council's wastewater reticulation system does not exceed one hour of notice. . Target: the median time to clear blockages or faults to Council's wastewater reticulation network will not exceed 24 hours from notification. . Target: the total number of complaints received by Council about wastewater issues (including sewage odour, sewerage system faults, sewerage system blockages and response times to issues with its sewerage system) does not exceed more than one complaint per 1000 connections. . Target: there will be no "Formal Enforcement Actions" from the consenting authority in regard to Council's compliance with resource consent conditions.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 85 of 200 Draft Long Term Plan 2015-25 Wastewater 11.5. How is wastewater funded?

Rates • 80%

Reserves • 19%

User Charges • 0%

Note: the figures above may not add up to 100% as not all funding sources are listed here. Please refer to the 'Financials' section of this chapter.

11.6. Significant negative effects There is the potential for the community to experience negative effects which are generated by the wastewater activity.

Negative Impacts What does Council do to help minimise the negative impacts? Blockages, leakages and Council is required to undertake monitoring to ensure that harm is not being overflows cause harm to our caused to our environment. Waikato Regional Council audits the monitoring environment. that we do. The wastewater systems are routinely inspected and Council conducts ongoing maintenance to ensure that the network is of an appropriate standard.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 86 of 200 Draft Long Term Plan 2015-25 Wastewater

11.7. Financials

Funding Impact Statement - Wastewater Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties ------Targeted Rates 2,784 2,835 2,937 3,078 3,293 3,378 3,457 3,569 3,532 3,605 3,762 Other Revenue: Subsidies & grants for operating purposes ------Fees, charges & targeted rates for w ater supply 6 6 6 6 6 6 6 6 7 7 7 Internal charges & overheads recovered 377 - 2 9 17 27 37 49 61 76 93 Local authorities fuel tax, fines, infringement fees, and other receipts ------

TOTAL OPERATING FUNDING (A) 3,167 2,841 2,945 3,093 3,316 3,411 3,500 3,624 3,600 3,688 3,862

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 1,629 1,590 1,599 1,642 1,687 1,754 1,790 1,847 1,909 1,977 2,083 Finance Costs 41 90 90 91 92 92 93 93 93 93 92 Internal charges & overheads applied 359 443 441 411 419 411 391 383 360 339 310 Other operating funding applications 63 ------

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 2,092 2,123 2,130 2,144 2,198 2,257 2,274 2,323 2,362 2,409 2,485

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 1,075 718 815 949 1,118 1,154 1,226 1,301 1,238 1,279 1,377

TOTAL SOURCES OF CAPITAL FUNDING (C) ------

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand ------to improve the level of services - - 53 2,169 424 236 ------to replace existing assets 457 687 563 336 295 178 195 349 321 682 219 Increase (decrease) in reserves (457) (687) (616) (2,505) (719) (414) (195) (349) (321) (682) (219) Increase (decrease) in investments 1,075 718 815 949 1,118 1,154 1,226 1,301 1,238 1,279 1,377

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 1,075 718 815 949 1,118 1,154 1,226 1,301 1,238 1,279 1,377

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (1,075) (718) (815) (949) (1,118) (1,154) (1,226) (1,301) (1,238) (1,279) (1,377) FUNDING BALANCE ((A-B)+(C-D)) ------

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 87 of 200 Draft Long Term Plan 2015-25 Wastewater

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 88 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy

15. REVENUE AND FINANCING POLICY Tikanga Pūtea Whakawhiwhi me te Pūtea Tuku

Revenue and Financing Policy

Responsibility Deputy Chief Executive First adopted 10 July 2003 (265/03) Historic revision dates 31 January 2006 (026/06 – 028/06), 10 July 2006 (347/06); 2009 (137/09); 28 June 2012 (236/12) Next review date 2018 Review frequency Three yearly, at the time of preparation of LTP, or more frequently if required Approval authority Council Consultation required Special Consultative Procedure Record number 318777 Associated documents The Long Term Plan, Annual Plan and financial policies

15.1. Policy Objectives To provide funding mechanisms for the South Waikato District Council.

15.2. Principles In performing its role, a local authority must act in accordance with the following principles: 1. A local authority should:  Conduct its business in an open, transparent and democratically accountable manner  Give effect to its identified priorities and desired outcomes in an efficient and effective manner. 2. A local authority should make itself aware of, and should have regard to, the views of all of its communities 3. When making a decision, a local authority should take account of:  The diversity of the community and the community’s interests, within its district or region  The interests of future as well as current communities 4. A local authority should provide opportunities for Māori to contribute to its decision-making processes. 5. A local authority should collaborate and co-operate with other local authorities and bodies as it considers appropriate to promote or achieve its priorities and desired outcomes, and make efficient use of resources 6. A local authority should undertake any commercial transactions in accordance with sound business practices 7. A local authority should ensure prudent stewardship and the efficient and effective use of its resources in the interests of its district or region 8. In taking a sustainable development approach, a local authority should take into account:  The social, economic and cultural wellbeing of people and communities  The need to maintain and enhance the quality of the environment  The reasonably foreseeable needs of future generations.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 108 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.3. Definitions Exacerbator: a person or event who contributes to the deterioration of a situation or to a cost that would not have eventuated had it not been for their actions. Excludability: when a person is prevented from consuming or using the service. Fees and Charges: fees charged to the community for use of specific services and facilities provided by Council. Financial Year: Council’s financial year runs from 1 July to 30 June the following year. Infrastructural Assets: essential services such as water, stormwater, sewerage and roading. They also include associated assets such as pump stations, treatment plants, street lights and bridges. Inter-generational equity (principle): many expenditure items have long service lives, eg infrastructural assets, community facilities. Current ratepayers should not be expected to fund the benefits future ratepayers will receive, so there is some degree of spreading the cost, eg loan raising and the use of Depreciation Reserves. Local Government Act 2002: the key piece of legislation that defines the regulations and responsibilities for all local authorities, including the South Waikato District Council. Uniform Annual General Charge (UAGC): a rate that is set under section 15 of the Local Government (Rating) Act 2002. The rate is assessed on every separately rateable property and the charge does not vary with the value of the property.

15.4. Background

15.4.1. Financial Management A local authority must manage its revenues, expenses, assets, liabilities, investments and general financial dealings prudently and in a manner that promotes the current and future interests of the community. A local authority must make adequate and effective provision in its Long Term Plan and in its Annual Plan (where applicable) to meet the expenditure needs of the local authority identified in those plans. The funding needs of the local authority must be met from those sources that the local authority determines to be appropriate, following consideration of: 1. In relation to each activity to be funded: . The community outcomes to which the activity primarily contributes. . The distribution of benefits between the community as a whole, any identifiable part of the community, and individuals . The period in or over which those benefits are expected to occur . The cost and benefits, including consequences for transparency and accountability, of funding the activity distinctly from other activities. 2. The overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental and cultural wellbeing of the community.

15.5. Revenue and Financing Policy A policy adopted under Section 102(4)(a) of the Local Government Act 2002 must state the local authority’s policies in respect of the funding of operating expenses and capital expenses from the sources listed below: . General Rates, including: choice of valuation system, differential rating and (Uniform Annual General Charge (UAGC) . Targeted rates . Fees and charges . Interest and dividends from investments . Borrowing . Proceeds from asset sales . Development contributions . Financial contributions under the Resource Management Act 1991

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 109 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy . Grants and subsidies . Any other source.

15.5.1. The sources referred to in Section 4.2.1 above are as follows: The Revenue and Financing Policy must also show how the local authority has, in relation to the sources of funding identified in the policy, complied with Section 101(3) of the Local Government Act 2002.

15.6. Policy Statement

15.6.1. Rating Section

Objectives The objectives are: . To ensure that the adopted rating system spreads the cost of rates as fairly and equitably as practical and provides sufficient revenue to cover operating and capital expenditure not covered by other sources of revenue. . To ensure that rating policy complies with the relevant legislation.

15.6.2. Relationship to Revenue and Financing Policy In developing the Revenue and Financing Policy, Council made an assessment of the public good and private benefit generated by each service provided. Arising from this assessment, Council identified the portion of cost for each service to be funded from rates revenue.

15.6.3. Considerations In selecting a rate for each service funded wholly or partially by rates revenue, Council considered and sought to reflect the following principles: . Council activities - incorporating the principles of community outcome, patterns of benefits in public goods/general equity, the beneficiary pays principle, inter-generational equity and the exacerbator paying for negative effects they cause. . Funding sources for each activity – ensuring that, in addition to a community outcome, there is fairness and equity, significant adjustment difficulties are balanced and comply with Council policy and are in the best interests of ratepayers and residents. . Funding system for Council – the aggregation of funding for each activity is modified to take community wellbeing into account.

15.6.4. Rating System The legislation provides for different ways in which to levy a general rate. However, there is no legislation that directs Council to favour one method over another. The key is to select a method that is effective, efficient and transparent for the district in allocating the cost of the general rate. The options available are: . The Annual Value System requires valuations based on the rental value of property to be updated annually. This method is not considered suitable for a mixed rural/urban district. It is generally more applicable to a major city council. . The Land Value System is used by a number of local authorities. The cost of rates is based on the value of land without taking into account the value of any improvements. Urban ratepayers expect to pay similar rates to their neighbours and, as such, land value rating might be seen to be more fair and equitable than the capital value system as the rate is based only on land value, not the improvements on this land. The contra argument to this approach is that the activities funded from the general rate are principally public goods and, as such, Council is levying a tax, not pricing services. Land value rating penalises owners of vacant urban property, or properties with modest improvements, and tends to shift the cost of the rates burden from urban property owners to rural landowners with much higher property values.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 110 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy . The Capital Value System is easy to understand in that the total value placed on each property (land and improvements) should approximate a market value. As with the land value system, there are points for and against this system. There is the perception that the capital value system moves the rates burden from rural to urban property owners and, in addition, that it penalises commercial development, whether urban or rural.

15.6.5. Summary on rating system Anomalies will always be present, whether the choice is the Land or the Capital Value System. However, in Council’s view the Capital Value System (the system in current use) suits a mixed urban/rural district with a significant range of land values better than the land value system. Ratepayers understand it easily. The Local Government (Rating) Act 2002 provides for different ways in which to set rates on property. However, the Act does not direct Council to favour one method over another. Council has determined that: . There will be one rating system for all properties within the district; and . Capital Value rating will be used as the basis for rating.

15.6.6. Uniform Annual General Charge / Additional Unit Rate Section 21 of the Local Government (Rating) Act 2002 restricts the revenue raised in any one year from the Uniform Annual General Charge and certain targeted rates on a uniform basis (excluding water and sewerage charges) to 30% of the total rates revenue of Council. The Uniform Annual General Charges and/or the Additional Unit Rate will be used as a rating mechanism across the full range of Council activities for which it is determined that a generally based rate is appropriate. Council will levy the Uniform Annual General Charge on each separate rating unit and an Additional Unit Rate on each separately used or inhabited part of a rating unit beyond the first. By rating using these mechanisms Council is cognisant of the section 21 limit and will ensure that the rates that are set are within the requirements of that section.

15.6.7. Targeted Rates These can be levied as a rate in the dollar of capital value or land value of every separate rateable property within the district, or in only a part of the district (where the function, work or service will benefit only a part of the district). Council has tended to use targeted rates for services where there is a high level of public good and/or where it is difficult to identify benefiting individuals within the district. Council will use targeted rates when it is appropriate to collect revenue from one or more groups of ratepayers who receive a specific localised benefit. The services to be funded by a targeted rate include: On a Capital Value Basis: . Stormwater services . Putāruru business promotion. On a Uniform Basis: . Additional unit rate (as described above) . Hall rates (within each hall rating area) . Community support - Pride in Putāruru (PIP) . Refuse collection . Tīrau Community Board (Ward) . Community support – Tokoroa promotion . Sewage disposal . Water supply (including Athol) . District recycling.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 111 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.6.8. Differential Rates Council is able to introduce differential rating using classifications relating to the following factors: . Land use . Zoning . Property size . Property location . All such matters provided for in Schedule 2 of the Local Government (Rating) Act 2002. Before considering the mechanics of differential rating, it is necessary to consider what reasons Council might have for introducing it and what purpose it might serve. Differential rating can be applied in a number of ways. It has been used to shift the incidence of rates away from residential properties and onto commercial and industrial properties. The reasons advanced in support of this are that: . Businesses will be registered for GST and therefore the cost to the business of rates is the GST exclusive value, whereas residential ratepayers have to absorb the GST inclusive cost of rates . For businesses, rates are a tax-deductible expense and therefore some part of the rate cost is met through reduced tax on business profits. In considering these arguments, the following factors need to be taken into account: . There may be some practical difficulty in identifying the properties used for commercial and industrial purposes. Within the district there will be a number of properties used both for commercial/industrial and residential purposes – notably farming properties – but also the properties of tradespeople operating from home. Into which category do they fall? . Before a business can deduct the expense from its taxable income it must make a profit. The businesses within the district generally have to compete with businesses from outside the district and adding to their costs is likely to make them less competitive, to the detriment of the district as a whole. Hence, the use of a differential rate weighted against industrial and commercial properties is not recommended. Differentials have been employed by Councils to alleviate the consequence of major changes as between different categories of property upon revaluation. Similarly, differentials may establish proportions of rating revenue to be raised from categories of property irrespective of changes to valuations. While such differentials may ease, but by no means eliminate the fluctuations in rates that occur upon property revaluations, such provision also assumes that the starting point was fair and reasonable and will remain so over time. Over time the risk is that differentials so employed may set anomalies in place as easily as remedy them. A further use of differential rating is to try and define classes of property that consume a greater or lesser proportion of Council services and to use differentials to adjust rates accordingly. Theoretically this is an attractive proposition, but its implementation has a number of practical and conceptual difficulties. These include: . To what extent is it reasonable to differentiate between properties for rating purposes? Ultimately all businesses and residents in the district are to some extent mutually dependent upon each other. Elaborate differentials allocating the cost of services from one section of the community to another ignore this inter-dependence. . In many cases, the issue is not one of how much of any service a particular property or class of properties uses, but what is the cost of having or not having the service available for use. . If this approach is considered, it also has to be determined how fine a level of distinction is to be drawn. Ultimately each property and/or its occupants use different levels of Council services, but it is not possible to identify that and set rates accordingly. . If this system is to be applied, some objective method of measuring the level of service consumed by the various classes of property needs to be developed, eg, water meters. Otherwise the differentials applied are easily subject to arbitrary adjustment. At the same time any measurement method used would have to be administratively simple or the cost of administering the scheme would become excessive.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 112 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy Council is open to considering ratepayers’ submissions on differential rating where they can substantiate that the rate burden without a differential would be so anomalous as to be unreasonable, taking into account the dual nature of rates as both tax and service charge. However, Council has been able to operate a rating system that appears to meet the requirements of the revenue and financing principles outlined previously, without resorting to differential rating, and is of the view that that situation has not materially changed. For this reason, Council will not set rates differentially.

15.6.9. Early Payment Sections 54 and 55 of the Local Government (Rating) Act 2002 empowers Councils to accept early payment of rates. Council no longer has a policy of applying early payment discounts to ratepayers. The increase in interest received did not cover the cost of the discount provided by Council. Furthermore Council believes that the early payment discount favoured those ratepayers who could pay all their annual rates at once and unfairly disadvantaged ratepayers who were not in a financial position to do this.

15.6.10. Penalty Policy Council will charge penalties for unpaid rates in accordance with Sections 57 and 58 of the Local Government Rating Act 2002. Our penalty policy and the dates on which penalties are to be applied are provided in the Funding Impact Statement which is included in every Long Term Plan and Annual Plan.

15.7. Other Sources of Funding

15.7.1. Fees and Charges Fees and charges are generally used to the extent permitted by legislation to recover the private benefits associated with Council services, where it is administratively efficient to do so.

15.7.2. Financial Contributions Council will seek financial contributions under the provisions of the Resource Management Act. Policy on this matter is set out in the District Plan and in our Financial Contributions Policy provided elsewhere in this 10 Year Plan.

15.7.3. Subsidies and Grants Where available, subsidies and grants will be sought to the maximum level permitted, consistent with Council’s ability to meet any local share requirement.

15.7.4. Loan Finance Loan finance is used for projects where there is a funding shortfall and potentially where there are inter- generational equity issues involved. Refer to the Liability Management Policy.

15.7.5. Investment Income and Capital Council may resolve, as part of its Annual Plan or Long Term Plan, to make distributions annually from investment income and/or capital to reduce the cost of rates and charges. Refer to the Investment Policy.

15.7.6. Investment Income Reserves Income received from reserve investments is applied in accordance with the purpose of the reserve.

15.7.7. Council Created and Restricted Reserves These are savings retained for specific projects, purchase of capital items, or where legislation restricts the use of the funds to a defined purpose(s).

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 113 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.7.8. Miscellaneous Income Miscellaneous income received is used for the general purposes of Council that are not funded from special rates and charges.

15.7.9. Utilising Cash Surpluses Cash surpluses derived from targeted rates, fees and charges may, at Council’s discretion, be used to offset the cost of future years’ expenditure. These are managed through targeted rate reserves.

15.7.10. Capital Expenditure Capital expenditure is funded from reserve funds set aside for this purpose, loan finance, investment income, and in rare cases rates revenue. The specific source of funding for capital projects is determined within each year’s adopted financial forecast.

15.8. Summary of Revenue and Financing Decisions as from 1 July 2015 General rating Targeted User mechanisms Rates Fees (General % Rate/UAGC/ Additional Dwelling Rate) % Animal Control 40 60 Building Consents and Inspections 50 50 Business and CBD Promotion – Tokoroa and Putāruru 100 Cemeteries 40 60 Community Advocacy, Grants and Support (including 100 Visitor Centres) Community Governance (Tīrau Community Board) 100 Community Halls 95 5 District Governance 100 District Promotion 100 District Recreation 100 Economic Development 100 Emergency Management (civil defence and rural fire) 100 Libraries 90 10 Parks and Reserves (including Sportsgrounds) 95 5 Pensioner Housing 100 Property Management 90 10 Public Toilets 95 5 Regulatory services (other than Animal Control and 80 20 Building) Resource Management (consent processing) 65 35 Resource Management (policy and monitoring, including 100 environmental protection and monitoring) Roading (general roading activities) 100 (after subsidies) Roading (CBD upgrade loan) 100 South Waikato Performing Arts Centre (The Plaza), and 100 (after hireage Tīrau Hall income) South Waikato Sport and Events Centre 80 20 Stormwater 100

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 114 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy

General rating Targeted User mechanisms Rates Fees (General % Rate/UAGC/ Additional Dwelling Rate) % Swimming Pools 80 20 Talking Poles 100 Te Waihou Walkway* 100 Tokoroa Airfield 40 60 Tokoroa Council of Social Services** 80 20 Waste - Landfills and Refuse Disposal 30 70 Waste – Litter Collection 100 Waste - Refuse Collection 55 45 Waste - Recycling 100 Wastewater (Sewerage) 100 Water Supply 100***

UAGC = Uniform Annual General Charge. User charges are inclusive of general fees, administration fees, rentals, fines and license fees. Council by adopting the percentages in the table above is happy with a +/- 5% banding being applied. * Included in Parks and reserves activity ** Included in Community advocacy, grants and support activity *** Targeted rates includes water-by-meter charges as relevant

15.9. Animal Control

15.9.1. Overview The purpose of this service is to ensure that animals, predominantly dogs, do not become a nuisance to the community.

15.9.2. Reasons for involvement in the activity Council is legally required to undertake this activity under the Dog Control Act 1996. The community identified the need for animal control including both dogs and straying animals.

15.9.3. Method of service delivery This service is provided in-house. This is an area of key community interest. Contracting out this type of work may not meet customers’ expectations and Council believes it can and does deliver a cost-efficient quality service. Monitoring and regulatory roles are a core competency of Council.

15.9.4. Principal indicators Strong public good indicators. Non-excludability and non-rivalry exist, but are not total. The other indicators include market failure, merit goods and exacerbator pays.

15.9.5. Funding decisions Community outcome: . A quality regulatory service

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 115 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.9.6. Distribution of benefits

The Owner Council recognises its statutory requirement to maintain a register of dogs and that dog ownership is a private choice. The cost of registration is a private cost. The benefits are in the knowledge that if a dog is lost, once found; it can be identified and the owner can be notified. If the dog misbehaves it can be identified and dealt with accordingly and there is a register of the owners who have responsibilities in owning a dog.

The Community The whole community benefits through dog control and registration, local and national education and stock control, and, more especially, through public safety and nuisance avoidance.

Offenders This group includes dog owners with both registered and unregistered dogs and stock owners. The cost of investigating complaints, impounding dogs and stock and prosecution of offenders is, wherever possible, an exacerbator’s cost.

15.9.7. Capital expenditure - period of benefits This activity is focused on the current community. There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.9.8. Action/inaction by others The level of responsibility of dog and stock owner’s impacts on the cost of this activity and the level of complaints received for this activity.

15.9.9. Costs and benefits of separating this activity This activity is distinct from any other Council activity. Council has appropriate systems in place to allocate costs to this activity.

15.9.10. Funding conclusion Council noted that much of the work of the animal control service related to dog ownership and that dog ownership was an individual’s choice. This choice (an option value) conveyed a private benefit. For this reason Council considered that dog owners should, in addition to registration fees, contribute to the cost of both dog and stock public safety and nuisance avoidance. Offenders should, through a scale of fees, contribute towards the cost of investigations, impounding and prosecution. Council considers that a combination of fees, charges and fines is the most efficient, effective and transparent way to fund the private benefit and exacerbator allocations. Council has also determined that each rating unit should make a contribution towards the cost of the service in recognition of the public good element. Legislation requires Council to provide the animal control function and public safety is paramount. General rating mechanisms 40% User fees 60%

15.10. Building Consents and Inspections

15.10.1. Overview The purpose of this service is to: . Ensure that buildings are safe and sanitary, to protect property owners and residents and to maintain standards . Maintain Building Consent Authority accreditation.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 116 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.10.2. Reasons for involvement in the activity The Council is legally required to undertake activities specified in various Acts, including: . Building Act 2004 . Fencing of Swimming Pools Act 1987.

15.10.3. Method of service delivery This service is provided in-house. This is an area of key community interest. Contracting out this type of work may not meet customers’ expectations and Council believes it can and does deliver a cost-efficient quality service. Monitoring and regulatory roles are a core competency of Council.

15.10.4. Principal indicators Strong public good indicators. Non-excludability and non-rivalry exist, but are not total. The other indicators include market failure, merit goods and exacerbator pays.

15.10.5. Funding decisions

Community outcomes: . Grow our economy . A quality regulatory service . Efficient Council operations.

15.10.6. Distribution of benefits Where services provide independent certification that adequate standards have been met in the construction of a building, the benefits of the service are predominantly received from the holder of the consent. Another important part of consent work is providing information and advice to the public about the requirements of relevant legislation.

15.10.7. Capital expenditure - period of benefits This activity is about service delivery to current ratepayers and residents. There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.10.8. Action/inaction by others Stakeholders must maintain high standards for the activity objectives to be achieved. The impact of this not occurring will result in increased costs for the activity.

15.10.9. Costs and benefits of separating this activity The extent and regulatory nature of this activity makes it appropriate to make this a separate activity. Council has appropriate systems in place to separately allocate costs to this activity.

15.10.10. Overall impact on current and future wellbeing This activity is primarily geared towards economic and social needs of current communities.

15.10.11. Funding conclusions Council considered that the most efficient, effective and transparent method of funding the private benefit (the applicant allocation) is a cost recovery basis using a range of fees and charges designed to generate approximately 50% of the revenue required to operate the service. The public good element is to be funded from rates revenue.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 117 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.10.12. The funding is: General rating mechanisms 50% User fees 50%

15.11. Business and CBD Promotion – Tokoroa and Putāruru

15.11.1. Overview Business Promotion is involvement in the commercial areas of the urban communities. Council recognises that the buoyancy of the district’s towns is dependent on the central business areas. Its focus is to provide assistance to the business communities through contracts. The town centre businesses of Putāruru and Tokoroa, through their business promotion organisations, along with community organisations in Arapuni, Tīrau and Atiamuri, manage retail and other promotional programmes in their respective areas of interest. The scope of activity undertaken benefits not only the immediate business area, but also the wider community. Council collects funds to finance the activities of the business promotion organisations through the rating system, both through a ward targeted rate and a targeted rate on the businesses involved. This complies with the Local Government (Rating) Act 2002. Support from business people for the collection of the targeted rate requires the approval of a strong majority of the ratepayers within the rateable areas concerned.

15.11.2. Reasons for involvement in the activity During previous Long Term and Annual Plan processes, the community clearly identified economic development and promotion of the district as the first priority for Council spending outside its core activities. The key objective is to attract new businesses to the district to increase employment and to slow the rate of population decline. This will increase the wealth of the district for the benefit of the whole community. The CBD businesses, in recognition of the value they receive from the service providers, pay both the targeted rates in recognition of the direct benefits they receive.

15.11.3. Method of service delivery The service is provided by contractors.

15.11.4. Principal indicators Excludability and rivalry exist, but are not strong, as indicated in the allocation between private benefit and public good.

15.11.5. Funding decisions

Community outcomes: . Grow our economy . Improved external image . Community pride.

15.11.6. Distribution of benefits Council considered that the benefits from this service were both direct to the business people in the Putāruru and Tokoroa Central Business Districts, and of wider benefit to residents in the ward and visitors to the area, with no benefit to Tīrau.

15.11.7. Capital expenditure - period of benefits The benefit is for current communities, specifically the business organisations in the commercial areas of Putāruru and Tokoroa. There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 118 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.11.8. Action/inaction by others Actions by business organisations in the commercial area will impact on the cost of this activity.

15.11.9. Costs and benefits of separating this activity This activity has a clear focus on growing the local economy. The level of interest necessitates separate disclosure of the costs to the community. The nature of this activity indicates that it should be accounted for separately. There is an appropriate structure in place for the allocation of costs to this activity.

15.11.10. Overall impact on current and future wellbeing This activity is primarily geared towards economic, social and cultural needs of current communities.

15.11.11. Funding conclusion Council noted that both business promotion organisations for Putāruru and Tokoroa assist Council with community advocacy, liaison and the promotion of the district. For this reason, Council considered that the most effective, efficient and transparent method to fund this service is rates revenue.

15.11.12. The funding is:

Putāruru: . Pride in Putaruru – 100% Ward based Targeted Rate on a uniform basis . Mainstreet Putaruru - 100% Targeted Rate $ of Capital Value within defined business promotion area.

Tokoroa . Targeted (Ward) Rate on a uniform basis in CBD defined area.

15.12. Cemeteries

15.12.1. Overview The purpose of this service is to ensure that appropriate burial facilities are readily accessible to all. The Council maintains cemeteries in Putāruru, Tīrau and Tokoroa. The service consists of: . Burial and placement service . Cemetery maintenance . Interment and placement record management.

15.12.2. Reasons for involvement in the activity Council is required under the Burials and Cremations Act 1964 to establish and maintain cemeteries where sufficient provision is not otherwise made.

15.12.3. Method of service delivery Because of the specialist nature of a cemetery and because it is generally not viewed as having commercial viability, private provision of this service has not occurred. Council therefore owns the cemeteries within the district. Delivery of service is contracted out as competitive markets for this work exist and it offers best value for money for Council. Administration and planning is undertaken by Council staff as there are synergies with other public servicing functions, coupled with a public expectation for Council to directly control and manage this activity.

15.12.4. Principal indicators Strong public good indicators. Non-excludability and non-rivalry are the main features of this service. The other indicators include market failure, merit goods, existence values and option values.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 119 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.12.5. Funding decisions

Community outcomes: . Well managed infrastructure . Quality services and facilities . Sustainable Council operations.

15.12.6. Capital expenditure - period of benefits There is little capital development work required for cemeteries. Funding is from current mechanisms. There are no significant intergenerational equity considerations.

15.12.7. Distribution of benefits The service primarily provides a private benefit for the family and friends of the deceased who may live within or outside the district. Most funeral costs are met by the estate or family of the deceased and represent a private benefit. The cost of establishing and maintaining grounds, which are in the nature of a reserve and open to the general public, provides a public service. Small cemeteries require a disproportionate level of maintenance in relation to the revenue generated. Records of interment have a clear relationship to the history of the community and are public information.

15.12.8. Action/inaction by others The number of plots required impacts on the level of service provided.

15.12.9. Costs and benefits of separating this activity The nature of this activity indicates that it should be accounted for separately. Council has a structure that can allocate costs to this activity.

15.12.10. Overall impact on the current and future wellbeing This activity is geared to meeting needs of current and future communities.

15.12.11. Funding conclusion Council considered that the most effective, efficient and transparent method for funding the private benefit (the recovery of cost of burial services) should continue to be user charges. However, revenue is directly related to the number of interments and, therefore, support from the public purse needs to be flexible. As the cost of maintaining cemetery grounds generates public benefit, this part of the service is to be funded from rates revenue.

15.12.12. The funding for this service is: General rating mechanisms 40% User fees 60%

15.13. Community Advocacy, Grants and Support (including Visitor Centres)

15.13.1. Overview Facilitation and advocacy are key leadership roles for Council. They are provided in accordance with the democratic process. The key issues are facilitating and promoting events, programmes and information based on community wellbeing.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 120 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.13.2. Reasons for involvement in the activity

Community advocacy and liaison With Central Government increasingly stepping away from the provision of social services, the community has given Council a clear message that it has a role as an advocate to retain these services in the district. Recent work in this area includes advocacy over the retention of health services, and co-sponsorship and support for a number of community organisations.

Grants and community support The grants and community support programme is designed to inject funds into areas where, for a small investment, a great deal of community benefit can be obtained. This also includes co-ordination and facilitation support where there is no other alternative.

Visitor Centres Council has a key role in providing information about the district to visitors and residents. One way that Council does this is through providing Visitor Centres.

15.13.3. Method of service delivery

Community Advocacy and Liaison This service is delivered directly by Council as it has a high level of inter-dependence with Council’s governance function.

Grants and community support Grants are disbursed to community groups. Co-ordination and facilitation activities are delivered through a combination of in-house and contract-for-service where the work area is not a core competency of Council.

Visitor Centres Specific elements of service delivery such as tourism and visitor information services are delivered under contract.

15.13.4. Principal indicators Excludability and rivalry exist but are not total. The other indicators include market failure, merit goods, option and prestige values.

15.13.5. Funding decisions

Community outcomes: . Improved external image . Quality services and facilities . Community pride.

15.13.6. Distribution of benefits The beneficiaries of this activity are those who receive the grant and other support. Council considered that this service, closely related to the Governance function, was primarily engaged in providing a public benefit for the community and district as a whole. Council did recognise that in providing this service the flow-on effect could generate private benefits. However, the public benefit was dominant and came first.

15.13.7. Capital expenditure - period of benefits There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 121 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.13.8. Action/inaction by others The impact of others should be minimal.

15.13.9. Costs and benefits of separating this activity As this is a key leadership role for Council, it is appropriate that the results and associated costs are separately disclosed. Council has an appropriate structure in place to allocate costs to this activity.

15.13.10. Overall impact on the current and future wellbeing This activity is primarily geared towards economic, social and cultural needs of current communities.

15.13.11. Funding conclusion Council considered that the most effective, efficient and transparent method for funding this public good service was general rating mechanisms.

15.13.12. The funding is: General rating mechanisms 100%

15.14. Community Governance (Tīrau Community Board)

15.14.1. Overview Community Boards and Advisory Committees are part of the Council’s consultation process. Members provide a ’grass roots’ advisory service concerning many issues relating to their community. Community Governance is shaped at a ward level. This currently only applies to the Tīrau Ward.

15.14.2. Reasons for involvement in the activity The role of a Community Board is to: . Represent and act as an advocate for the interests of the community . Consider and report on any matter referred to it by the territorial local authority and any issues of interest to the Community Board . Make an annual submission to the territorial local authority on expenditure in the local authority . Maintain an overview of services provided by the territorial authority within the community . Communicate with community organisations and special interest groups in the community . Undertake any other responsibilities delegated by the local authority.

15.14.3. Method of service delivery Governance and advisory services are delivered by elected Board Members. Support for these functions is delivered by in-house services. This is regarded as a core competency by Council. The district has one elected Community Board. It represents and provides an advisory service to Council on behalf of the ratepayers and residents in the Tīrau Ward. Residents of either the Tokoroa or Putāruru Wards may apply, within guidelines approved by statute, to be represented by either an elected Community Board or a Council- appointed Advisory Committee. Funding for any future Community Board or Advisory Committee would be on the same basis as the existing Community Board.

15.14.4. Principal indicators This is a non-excludable, non-rival, public service providing a public good.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 122 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.14.5. Funding decisions

Community outcomes: . Cultural leadership.

15.14.6. Distribution of benefits Council decided that expenditure on this service was for the public good, but benefits are restricted to the ratepayers and residents within each ward served by the respective Boards. Council considered that all members of the community should have access to elected members.

15.14.7. Capital expenditure - period of benefits There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.14.8. Costs and benefits of separating this activity This activity is distinct from other activities because it is the basis for local government – appropriate representation in decision-making. The level of public interest within this community necessitates the separate disclosure. Council has appropriate systems in place to allocate costs to this activity.

15.14.9. Overall impact on the current and future wellbeing This activity is primarily geared towards economic, social, cultural and environmental needs of current communities.

15.14.10. Funding conclusion The most appropriate funding source is a targeted ward rate. Council considered that the most appropriate, effective, efficient and transparent method of Governance and promoting community wellbeing was to charge for this service through a targeted ward rate.

15.14.11. The funding is: Targeted Rate on a uniform basis (on each separate rating unit within the Tīrau Ward) 100%

15.15. Community Halls

15.15.1. Overview The purpose of this service is to provide public gathering and meeting places at appropriate community focal points throughout the district. The South Waikato community halls are located at Arapuni, Puketurua, Tapapa, Upper Atiamuri and Waotu. The Lichfield Hall was destroyed by fire on 16 June 2000, and has been re-established in association with the Lichfield School Hall. The Okoroire Hall was demolished in 2011 and this hall district merged with Tapapa. Council receives a grant from Rotorua District Council towards the upkeep of the Upper Atiamuri Hall, and pays a contribution towards the upkeep of the Piarere Hall in the Matamata-Piako District. The Arapuni Hall is owned by the Crown and leased to Council at a peppercorn rental.

15.15.2. Reasons for involvement in the activity The rural halls have been an important gathering place for rural communities over decades. They continue to be maintained and administered by Council, but the management of halls is the responsibility of the hall committees. Halls continue to be an integral part of the smaller communities in the district. A number of halls have been built in recent years by other groups, some of which are available for use by the community.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 123 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.15.3. Method of service delivery These facilities cannot generate sufficient income to meet their costs. While the hall management is the responsibility of the respective communities of interest, ownership is in Council’s hands. The significant public good associated with these facilities justifies ongoing community funding for the retention of halls.

15.15.4. Principal indicators Excludability and Rivalry exist, but are not strong. The other indicators include external influences, market failure, merit goods, option, existence, bequest and prestige values and, to a minor extent, exacerbator pays.

15.15.5. Funding Decisions

Community outcomes: . Quality services and facilities . Community pride.

15.15.6. Distribution of benefits The hall users are the direct beneficiaries of community halls. Users include education groups, recreation groups, sports groups, social groups and people hiring halls for other activities, including private functions. Community benefit is based on the wellbeing of members of the community who may wish to have such a facility available for social functions. Those people who live within a hall area have greater option values than those who live at a greater distance from a hall. In some instances the community hall is also a Memorial Hall or displays a memorial board honouring the memory of service personnel from that area. In many cases the community hall is a significant social focal point for the local community. On a district-wide basis, halls provide options for the community at large.

15.15.7. Capital expenditure - period of benefits Council’s involvement in halls is largely historical. There is no planned replacement programme. Inter- generational equity has been considered, but Council has resolved to fund projects as they arise.

15.15.8. Action/inaction by others Direct users can have an impact on the standard and quality of facilities.

15.15.9. Costs and benefits of separating this activity The level of interest in this activity warrants separate disclosure. Council has an appropriate structure in place to allocate the costs to this activity.

15.15.10. Funding conclusion Council took into account the importance of community halls as the social focal point for communities (particularly rural). It also took into account its responsibility to act in the interests of its ratepayers, residents and community usage of the facility. Council considered that the most efficient, effective and transparent way to raise the cost of the public good (district and community allocation) element was a targeted rate on a uniform basis on each separate rating unit within a hall rating area. The funds raised for each hall should be used to meet the annual operating cost and make provision for covering the cost of planned major maintenance and capital expenditure in the years ahead. Council considered that the private benefit should be recovered from rental income and that each community hall committee should be responsible for setting the range of rentals applicable to its hall.

15.15.11. Each hall to be funded in the range: Targeted Rate on a uniform basis on each separate rating unit (within hall rating area) 95% User Rental Income 5%

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 124 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.16. District Governance

15.16.1. Overview The democratic process ensures ultimate oversight of the affairs of Council. It must ensure that procedures meet all statutory requirements and provide opportunities for participation by residents, stakeholders and community groups within the district. In terms of the Local Government Act 2002, Council must demonstrate that it is providing opportunities for Māori to contribute to Council decision-making processes. A key responsibility is to ensure that information on Council’s policies, plans and strategies are made available and that meaningful consultation occurs. Council has identified advocacy in respect of issues facing the district, as an important role.

15.16.2. Reasons for involvement in the activity Council is a creature of statute and provided for under: . The Local Government Act 2002 . The Local Government Official Information and Meetings Act 1987 . The Local Electoral Act 2001.

15.16.3. Method of service delivery Governance services are delivered by an elected Mayor and Councillors. Support for these functions is delivered by in-house services. This is a core competency of Council. The community is represented by a district Mayor, elected at large, and ten Councillors, who are elected on a Ward basis. The cost of this function includes both the direct cost of Members undertaking their statutory roles and the cost of support services. There are three elements of Governance under the Act. They are: . Representing the community . Setting policy . Monitoring and review.

15.16.4. Principal indicators This is a non-excludable, non-rival public service providing a public good.

15.16.5. Funding decisions

Community outcomes: . All of the outcomes are applicable.

15.16.6. Distribution of benefits Council recognises that district Governance is a pure public good. Individual residents and ratepayers cannot be excluded from receiving the benefit and there are no rival providers for this activity. The principal purpose is to represent the interests of all residents and ratepayers. Council, its Committees and the office of the Mayor benefit the district in that members are elected to provide a governance service including representation, policy setting, monitoring and review.

15.16.7. Capital expenditure - period of benefits There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.16.8. Action/inaction by others Action or inaction by others does not impact on the need to undertake this activity.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 125 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.16.9. Costs and benefits of separating this activity This activity is distinct from other activities because it is the basis of local government – appropriate representation in decision making. Council has appropriate systems in place to allocate costs to this activity.

15.16.10. Overall impact on the current and future wellbeing This activity is primarily geared towards economic, social and cultural needs of current communities.

15.16.11. Funding conclusion The most appropriate funding source was general rating mechanisms. Council considered that the most appropriate, effective, efficient and transparent method of Governance and promoting community wellbeing was to charge for this service through general rating mechanisms.

15.16.12. The funding is: General rating mechanisms 100%

15.17. District Promotion

15.17.1. Overview The overall aim of this activity is to improve the awareness and positive perceptions of the district, to attract investment, increase employment opportunities, and broaden the industrial and commercial rating base.

15.17.2. Reasons for involvement in the activity The community has, through a number of community processes, identified promotion and economic development of the district as important priorities for Council spending outside its core activities. District promotion is a critical factor to ensure the economic success of the district and residents and ratepayers expect Council to play a lead role in this.

15.17.3. Method of service delivery Council sees the co-ordination, public relations, facilitation and planning roles as its core competency with a high level of inter-dependence with other Council facilities. It therefore delivers this work with its own resources.

15.17.4. Principal indicators Excludability and Rivalry exist, but are not total. The other indicators include external influences, market failure, merit goods, options, existence, bequest and prestige values and exacerbator pays.

15.17.5. Funding decisions

Community outcomes: . Grow our economy . Improved external image . Community pride.

15.17.6. Distribution of benefits Council considered that the promotion of the district, encompassing economic development and public relations, conveyed positive public benefits. This service is crucial to the continuing prosperity of the district. Council recognised that the service primarily provides public benefits but there are private benefit spin offs.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 126 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.17.7. Capital expenditure - period of benefits The benefits are for current and future communities. However, there is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.17.8. Action/inaction by others The involvement of the community can impact on the success or otherwise of this activity.

15.17.9. Costs and benefits of separating this activity The benefit received from this activity is not always tangible. For this reason, it is important that Council keeps track of its contribution to this activity, which is distinct from other activities. Council has an appropriate structure in place to allocate costs to this activity.

15.17.10. Overall impact on the current and future wellbeing This activity is primarily geared towards economic needs of the community.

15.17.11. Funding conclusion Council considered that the most appropriate effective, efficient and transparent method of funding the public good allocation was general rating revenue.

15.17.12. The funding is: General rating mechanisms 100%

15.18. District Recreation

15.18.1. Overview Council provides for the co-ordination and facilitation of sporting and recreational opportunities within schools and the community at large. This is an important aspect in the promotion of sport and recreation as part of a healthy lifestyle.

15.18.2. Reasons for involvement in the activity The community has given Council a clear message though Annual Plan processes that it has a role in the promotion of community wellbeing.

15.18.3. Method of service delivery This service is delivered under contract to Council. Council is not properly resourced to adequately support the function, as it requires a high level of out of district networking and resource access.

15.18.4. Principal indicators There are significant non-excludable and non-rival indicators for this service. The other indicators include market failure. The leaning towards public wellbeing is very strong.

15.18.5. Funding Decisions

Community outcomes: . Community pride.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 127 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.18.6. Distribution of benefits There is significant public support and approval for this service. The indicators are those of public wellness in that the service is aimed at the promotion of community wellbeing participation, health and fitness. There is a high public benefit element.

15.18.7. Capital expenditure - period of benefits This activity is primarily about benefiting current communities. There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.18.8. Action/inaction by others The involvement of the community in this activity can impact on the success or otherwise of this activity.

15.18.9. Costs and benefits of separating this activity Council’s role in promotion of community wellbeing, as indicated by the community, makes it necessary to separate this activity. Council has a structure in place to allocate costs to this activity.

15.18.10. Overall impact on the current and future wellbeing This activity is primarily geared towards the social needs of current communities.

15.18.11. Funding conclusion Council considered that the most effective, efficient and transparent method available for funding this public good service was general rating revenue.

15.18.12. The funding is: General rating mechanisms 100%

15.19. Economic Development

15.19.1. Overview The key aims of this service are to increase employment opportunities, attract investment and broaden the industrial and commercial rating base.

15.19.2. Reasons for involvement in the activity The community has previously identified economic development and promotion of the district as important priorities for Council spending outside its core activities. The key objective is to retain and attract new businesses to the district to increase employment and to prevent population decline. Economic development is a critical factor to ensure the economic success of the district, residents and ratepayers expect Council to play a lead role in this.

15.19.3. Method of service delivery Council retains in-house service delivery for policy, advice and management of the activity.

15.19.4. Principal indicators Excludability and rivalry exist, but are not total. The other indicators include external influences, market failure, merit goods, options, existence and exacerbator pays.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 128 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.19.5. Funding decisions

Community outcomes: . Grow our economy . Improve external image.

15.19.6. Distribution of benefits Council considered that the promotion of the district, encompassing economic development and public relations, conveyed positive public benefits. This service is crucial to the continuing prosperity of the district. Council recognised that the service primarily provides public benefits but there are private benefit spin offs.

15.19.7. Capital expenditure - period of benefits The benefits are for current and future communities. However, there is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.19.8. Action/inaction by others The involvement of the community can impact on the success or otherwise of this activity.

15.19.9. Costs and benefits of separating this activity The benefit received from this activity is not always tangible. For this reason, it is important that Council keeps track of its contribution to this activity, which is distinct from other activities. Council has an appropriate structure in place to allocate costs to this activity.

15.19.10. Overall impact on the current and future wellbeing This activity is primarily geared towards economic needs of the community.

15.19.11. Funding conclusion Council considered that the most appropriate effective, efficient and transparent method of funding the public good allocation was general rating revenue.

15.19.12. The funding is: General rating mechanisms 100%

15.20. Emergency Management (Civil Defence and Rural Fire)

15.20.1. Overview The principal aim of this activity is to be prepared for natural hazards and emergencies. The service includes Civil Defence and a Rural Fire service.

15.20.2. Reasons for involvement in the activity The Council is required to prepare and implement a Civil Defence Plan across the district under the Civil Defence Emergency Management Act 2002. The Council is also a Rural Fire Authority under the Forest and Rural Fires Act 1977. In addition to responsibility in the case of rural fires, Council is also responsible for the issue of fire permits during high risk periods and to ensure compliance with legislation.

15.20.3. Method of service delivery Both Civil Defence and Rural Fire have a strong planning and coordination function. There is a regulatory component in the issue of fire permits. These functions are core competencies of Council and delivered by Council. Actual rural fire control is delivered under agreement both by the Fire Services Commission and

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 129 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy private contractor. The South Waikato District Council Rural Fire Authority will be transitioning into the Pumicelands Enlarged Rural Fire District.

15.20.4. Principal indicators Strong public good indicators. Rural Fire has some private benefit element. Non-excludability and non-rivalry are the principal but not exclusive features of Emergency Management. The other indicators include market failure, merit goods, existence values, option values and exacerbator pays.

15.20.5. Funding decisions

Community outcomes: . A quality regulatory service.

15.20.6. Distribution of benefits

Civil Defence The operation of the Civil Defence service involves maintaining a state of readiness so that the district is equipped to cope, should a civil emergency occur. Civil Defence is considered to have a high district and community benefit as the function is for the safety and wellbeing of all who live in the South Waikato. The allocation of public good and wellbeing was assessed as 100%.

Rural Fire This service has a high degree of public benefit in that it is associated with the protection of personal property and life. The benefit accrues primarily to both public and private property owners. All costs incurred in providing this service are deemed to be for the public good. The allocation of public good was assessed as 100%. It was noted that where there is an identified offender (being the fire starter rather than the beneficiary, if not the same person), they will be pursued to contribute to the cost of the fire-fighting service provided.

15.20.7. Capital expenditure - period of benefits This activity is about being prepared to respond in an emergency. There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.20.8. Action/inaction by others There is minimal impact from others through natural disasters, although fires may result from human intervention.

15.20.9. Costs and benefits of separating this activity Given the high community benefit it is appropriate that the activity is separately disclosed. The nature of this activity indicates that it should be accounted for separately. Council has appropriate systems in place to allocate costs to this activity.

15.20.10. Overall impact on the current and future wellbeing This activity is primarily geared towards environmental and community wellbeing needs of current communities.

15.20.11. Funding conclusion Council noted that it did not intend to make charges for this service other than rural fire exacerbator fees. However, as exacerbator funding cannot be determined in advance, no percentage recognition of this source of revenue is to be included in this policy. Council considered that the most effective, efficient and transparent method for funding these services was general rating revenues.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 130 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.20.12. The funding is: Civil Defence - General rating mechanisms 100% Rural Fire - General rating mechanisms 100%

15.21. Libraries

15.21.1. Overview Council provides a wide range of professional library services to meet the diverse recreational, educational, reading and information needs of the community. These services include but are not limited to large-print collections, Māori, Pacific Island and other ethnic collections, an audio visual collection, internet, inter-library loan services and a toy library There is also a significant trend for libraries being used as community spaces. A core principle of public libraries is providing equal opportunity access to the whole community.

15.21.2. Reasons for involvement in the activity There are no other potential providers of a total district public library service.

15.21.3. Method of service delivery Historically, libraries were community organisations, taken over by local authorities due to public demand. Library services are provided directly by Council because of the high level of public good involved and little opportunity for commercialising the library operations. A facilities management contract is not considered tenable at this time because of the absence of a competitive market.

15.21.4. Principal indicators Excludability and Rivalry exist, but are not total. The other indicators include externalities, market failure, merit goods, option, existence, bequest and prestige values and exacerbator pays.

15.21.5. Funding decisions

Community outcomes: . Quality services and facilities . Community pride . Cultural leadership . Efficient Council operations.

Distribution of Benefits Council considers that a professional library service provides a mix of community, district and private benefits. The direct beneficiaries of a library service are borrowers, information seekers, community based groups, pre- school and school groups and users of services provided by the district libraries. Council recognised that, in addition to private benefits, the library provides an educational service, considerable facilities for children, a service for people where English is a second language, and a place for the unemployed and the elderly. There is also a growing demand from community groups to use the libraries as a space to gather, increase awareness and share resources with the wider public. Additionally, schools and pre-school organisations such as kindergartens and Kohanga groups are using library resources to support their teaching and informational needs. Individually, customers are using the library for recreational and educational reading and there is a growing demand for using the public internet computers for research, professional development, social networking and making use of escalating online activities such as banking, job applications and email. While there is minimal usage by commercial ratepayers, there are socioeconomic benefits for businesses in having modern infrastructure and services for their staff, both in terms of recruitment and retention.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 131 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.21.6. Capital expenditure - period of benefits Council utilises depreciation and loan funding as a source of funding, recognising that a relevant and accessible collection, and facilities that are fit for purpose are the keys to providing a library service for future generations. There are both current and future benefits.

15.21.7. Action/inaction by others Charges are levied to reflect misuse of library books and materials.

15.21.8. Costs and benefits of separating this activity The Library activity is distinct from other core activities. With no alternative providers, it is considered appropriate to separate this activity. Council has an appropriate structure in place to allocate costs to this activity.

15.21.9. Overall Impact on the current and future wellbeing This activity is primarily geared towards the social and cultural needs of current communities.

15.21.10. Funding conclusion Council’s ideal allocation of cost to accommodate social concerns and equitable access to encourage, not discourage, use of the library is a mix of direct user charges and rates revenue. Council considered that the most effective, efficient and transparent method available within the limitations of statute for funding the community wellbeing generated by providing a library service was user fees and general rating revenue.

15.21.11. The funding is: General rating mechanisms 90% User Fees 10%

15.22. Parks and Reserves (including Sportsgrounds)

15.22.1. Overview Council owns and/or manages approximately 240 hectares of parks, sportsgrounds, esplanades and gardens. The service includes enhancing the appearance of urban areas with street trees, flower beds and other soft landscaping. The principal objective is to enhance and promote the physical and mental wellbeing of the district’s residents and visitors alike, through the provision of open spaces and facilities for active and passive recreation. The Tokoroa Memorial Sportsground including (David Foote Park) is managed by the South Waikato District Council staff.

15.22.2. Reasons for involvement in the activity Parks and reserves are vested in Council under the Reserves Act 1977. The Resource Management Act 1991 also provides a framework within which Councils can acquire land for reserves. The South Waikato District Council makes provision for reserves along streams (esplanade reserves) to be established in some cases when subdivision is undertaken. Surplus reserve land is, where possible, is either sold or leased. Where the right of access to parks and reserves is limited because it is either fenced or has dedicated facilities located on the land, Council charges a contribution for ground maintenance.

15.22.3. Historical precedent Council has been in the business of providing facilities for the community for many years.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 132 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.22.4. Community wellbeing Council has adopted a role as being the significant provider of recreational facilities/services that provide community wellbeing. Sport supports the general health and welfare of the community. Most amateur clubs would be incapable of surviving if full costs of provision of sportsgrounds were to be recovered from them. The 'goodness' and 'wellness' of the community is dependent on the individuals of the community feeling good about them. Recreational activities and facilities raise the confidence and esteem of individuals and therefore facilitate the increased self-esteem of a community.

15.22.5. Community expectation The community has developed an expectation that Council will provide gardens, parks, playgrounds, reserves and other facilities. Once Council provides a service, it is expected to continue.

15.22.6. Economic good Recreational facilities contribute to the economy through commercial operations, tourism, visitors attracted for specific events, support to retailers and fundraising. Council’s continued contribution will bring economic benefit to the district. A community that has attractive facilities becomes a more attractive place in which to invest, live and work.

15.22.7. Visual importance and beautification Council provides recreational facilities to contribute to the visual beauty, prestige and civic pride of the district. Visually pleasing surroundings have an uplifting effect on the people within the community. The amenity value is important.

15.22.8. Method of service delivery Council retains in-house service delivery for policy, advice and management of the function. Most service delivery associated with parks, reserves and sportsgrounds is supplied under contract. As noted, ownership of the reserves is vested in Council. Given the statutory framework for these land parcels, sale and leaseback is not a practical option. Notwithstanding this, Council will seek to consolidate its reserves in order to minimise operational cost and maximise recreational and leisure opportunities for the South Waikato community. Reserve land not currently required for that purpose is, wherever possible, leased out, or the designation uplifted and the land sold.

15.22.9. Principal indicators Excludability and rivalry exist, but are not total. The other indicators include externalities, market failure, merit goods, option, existence, bequest and prestige values and exacerbator pays.

15.22.10. Funding decisions: sportsgrounds

Community outcomes: . Quality services and facilities . Community pride.

Distribution of benefits Sports grounds provide benefits to the community at large and to individuals. They are a major contributor to community wellbeing. However, it is difficult to identify users other than sports clubs/teams and other groups who have entered into a formal arrangement or lease with Council.

Capital Expenditure - period of benefits Capital development will benefit future generations. Funding should be from depreciation reserves and loan funding.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 133 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy Action/inaction by others Misuse of the facilities will impact on the costs of providing these services. The Tokoroa Memorial Sportsground is managed under a contract with the South Waikato Sports and Leisure Board. The operation of this contract will impact on the cost of providing these services.

Costs and benefits of this activity The activity collectively represents a substantial cost and provides a key component of the infrastructure. There is no logical grouping into which the activity could be added. Council has an appropriate structure in place to allocate costs to this activity.

Overall Impact on the current and future wellbeing The socio-economic status of the district affects the financial viability of sports clubs. There is a direct link between the social wellbeing of the community and active leisure activities. This activity is primarily geared towards social and cultural needs of current and future communities.

Funding Conclusion The encouragement of sport and recreation within the district and the improvement of its image are important objectives, which Council has recognised in setting its user charges. The funding source is rates revenue and user charges. Council considered that the most effective, efficient and transparent method available for funding the sports grounds was general rating mechanisms and a small amount of admission fees and user charges.

The funding is: General rating mechanisms 95% Admission Fees and other User Charges 5%

15.22.11. Funding decisions: parks and reserves

Community outcomes: . Quality services and facilities . Community pride.

Distribution of Benefits Council noted that the provision of passive reserves, including parks, gardens and esplanades, enhanced the district’s image and how visitors and residents feel about it. As Council provides free access to parks and reserves, it is impossible to either identify or exclude people from these facilities. Similar to sportsgrounds, the benefit includes the encouragement of health and fitness, enhancement of community amenities and contributes to public pride and general wellbeing.

Capital expenditure - period of benefits Capital development will benefit future generations. Funding should be from current mechanisms and loan funding.

Action/inaction by others Developers may impact on the level of service provided. However, there is minimal development to speak of.

Costs and benefits of separating this activity The collection of parks and reserves represent a substantial cost of Council’s activities and a key component of environmental infrastructure. There is no other logical grouping for this activity and, therefore, it is appropriate to separate this activity.

Overall impact on the current and future wellbeing This activity is primarily geared towards environmental, social and cultural needs of current and future communities. There is a direct link between the social wellbeing of the community and active leisure, recreational activities.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 134 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy Funding conclusion The encouragement of sport and recreation within the district and the improvement of its image, are important objectives, which Council has recognised in setting its user charges. The funding source is rates revenue and minimal user charges. Council considered that the most effective, efficient and transparent method available for funding the public good allocation was general rating mechanisms.

The funding is: General rating mechanisms 95% Admission Fees and other User Charges 5%

15.23. Pensioner Housing

15.23.1. Overview Council is involved in the provision of housing for the elderly and low income earners because the market has not met this demand. Council’s pensioner flats are located in Putāruru, Tīrau and Tokoroa. Rent is set to recover the cost of operation.

15.23.2. Reasons for involvement in the activity There are an increasing number of retired people in the district. We provide a large number of pensioner housing units and there is good demand for this service as indicated by the high level of occupancy. A 1997 feasibility study undertaken by the Tokoroa Council of Social Services shows that a growing number of people would like to have the option of remaining in the district when they retire. At present there is a lack of alternative low-cost pensioner housing provided by other organisations. Council considers that it has a moral responsibility to provide this type of housing.

15.23.3. Method of service delivery The management of the service is undertaken in-house with maintenance work largely undertaken by external contractors.

15.23.4. Principal indicators Once a flat is let, the service is excludable and rivalry exists. The other indicators include market failure, merit goods, option, existence and prestige values, and exacerbator pays.

15.23.5. Funding decisions

Community outcome: . Well managed infrastructure . Community pride.

15.23.6. Distribution of benefits Pensioner housing has a high degree of private benefit. The direct beneficiaries are the occupants and their family and friends. Other residents of the South Waikato receive an indirect benefit through the knowledge that the community has provided low-cost housing for the elderly, housing that they themselves may require in the years ahead.

15.23.7. Capital expenditure - period of benefits Council believes that it has a social responsibility to continue to provide this service. Council involvement is being maintained and no significant capital development is proposed in the foreseeable future. The focus is on ensuring that the housing units are maintained to a good standard. There are no significant inter-generational equity considerations for this activity.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 135 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.23.8. Action/inaction by others Actions of tenants may impact on the cost of providing these facilities if misuse occurs.

15.23.9. Costs and benefits of separating this activity The Local Government Act 2002 defines pensioner housing as a strategic asset. For this reason Council has elected to treat pensioner housing as a separate activity. Council has an appropriate structure in place to allocate cost to this activity.

15.23.10. Overall impact on the current and future wellbeing This activity is primarily geared towards social and cultural needs of current communities.

15.23.11. Funding conclusion Council decided that it does not seek a return on its investment in housing stock, but it does believe that the cost of operations and on-going maintenance should be fully funded from rental income. Council believes that the most appropriate, effective, efficient and transparent method of funding this service is rental income.

15.23.12. The funding is: Rental Income 100%

15.24. Property Management

15.24.1. Overview This activity involves the management of a wide range of Council owned property. A number of these properties were operational assets of the boroughs and county that merged to form the South Waikato District. Some of the properties are held to carry out Council’s principal activities and others will ultimately be sold. Upon its formation in 1989, Council inherited substantial areas of land, some of which have improvements by way of buildings. This portfolio has been progressively reduced as Council has disposed of assets not seen as important to its current operation, of no strategic importance for the future, or having contractual encumbrances. Council directly manages this portfolio which is now relatively small and endeavours to achieve market rentals, where appropriate. This activity includes the management of: . Rental property (excluding day-to-day operations of pensioner housing). . Leased land . Historic sites . Council depots . Vacant sections . Numerous miscellaneous properties . Minor reserves. Further sales of land and buildings will reduce this property portfolio.

15.24.2. Reasons for involvement in the activity Council has inherited this property and needs to manage it. In some cases there will be an on-going operational need to retain property into the longer term, in other cases it will be disposed of.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 136 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.24.3. Method of service delivery The piecemeal nature of the portfolio means that it is not an attractive parcel of work to contract out. Given Council’s desire to further sell off some of these assets, direct management using in-house services is considered the most appropriate means of service delivery.

15.24.4. Principal indicators Mixed excludability, non-excludability and rivalry. Non-rivalry is the principal feature of this service. The other indicators include market failure, merit goods, existence values, option values and exacerbator pays.

15.24.5. Funding decisions

Community outcome: . Quality services and facilities.

15.24.6. Distribution of benefits It was considered that private use of Council property conveyed private benefits. However, some of the properties in this group are held for the public good and their strategic importance.

15.24.7. Capital expenditure - period of benefits There are no significant inter-generational equity issues with this activity.

15.24.8. Action/inaction by others Tenants and lessees have the ability to impact on the quality and standard of the facilities.

15.24.9. Costs and benefits of separating this activity Council's direct management of these properties necessitates separate division of this activity. The nature of this activity indicates that it should be accounted for separately. Council has appropriate systems in place to allocate costs to this activity

15.24.10. Overall impact on the current and future wellbeing This activity is primarily geared towards the economic needs of current communities.

15.24.11. Funding conclusion Council noted that there were no issues of fairness and equity which would alter the allocation of cost. This activity is, wherever possible, supported by rental income. In some cases encumbrances on the properties or market rentals limit income, resulting in a shortfall between income and expenditure. There will always be a need for rating support. The value of the support required from rates varies from year to year as properties are sold, and varies from property to property according to individual circumstances.

15.24.12. The funding for this service is: General rating mechanisms 90% User fees from rents 10%

15.25. Public Toilets

15.25.1. Overview Council provides conventional public toilet facilities throughout the district in town centres, along the major travelling routes and in recreational locations. In some cases these facilities complement those provided by the retail sector.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 137 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.25.2. Reasons for involvement in the activity Historically, Councils have provided public toilets. The provision of toilets assists in maintaining a high standard of public hygiene while, at the same time, providing for personal convenience. Public toilets have been built and acquired and are maintained in strategic locations in the district by Council. The maintenance of quality toilets along the main travelling routes can assist in the district’s efforts to encourage people to stop and spend money in the district. While toilets are provided by some businesses for their customers, eg hotels and service stations; they are not generally available for use by the public at large. Council provides funding to the Information Centre in Tīrau to assist in providing public toilet facilities.

15.25.3. Method of service delivery Public toilets are specialist facilities that have no other alternative use. Therefore, Council ownership is considered most appropriate. Capital construction, significant maintenance and cleaning operations are all contracted out as this provides best value for money to ratepayers.

15.25.4. Principal indicators Strong public good indicators. Non-excludability and non-rivalry are the principal features of this service. The other indicators include market failure, merit goods, existence values and option values.

15.25.5. Funding decisions

Community outcomes: . Improved external image . Quality services and facilities.

15.25.6. Distribution of benefits There are considerable public benefits relating to maintaining public health and eliminating nuisance issues and attracting visitors. Council’s public toilets are located in retail areas, alongside the State Highways, or in public reserves. Public toilets on the main highway are for the use of both local residents and the travelling public, whereas those toilets away from the main highway are for the benefit of local residents and other people visiting the area, rather than in-transit travellers. Private good can be indirectly attributed to business ratepayers in recognition of retail trade. Facilities for the travelling public meet the criteria of public good. The balance of the service is a private benefit.

15.25.7. Capital expenditure - period of benefits There is a degree of inter-generational equity considerations for this activity as a major programme of investment occurs to upgrade existing and build new toilets.

15.25.8. Action/inaction by others Users have the ability to impact on the quality and standard of the facilities.

15.25.9. Costs and benefits of separating this activity The special nature of public toilets and no other logical grouping necessitates separate disclosure of this activity. Council has an appropriate structure in place to allocate costs to this activity.

15.25.10. Overall impact on the current and future wellbeing This activity is geared towards environmental, social and cultural needs of current communities. Some minor economic benefits arise with provision of toilets to complement tourist facilities.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 138 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.25.11. Funding conclusion While the toilets remain free of charge, it is impossible to either identify or exclude people from using this service during “open hours”. Currently there is no means of charging for the private good that businesses may get from travellers stopping to use public toilets. Council considered that the most effective, efficient and transparent method of funding the service was general rating revenue but has not excluded developing new user pays toilets in the future.

15.25.12. The funding is: General rating mechanisms 95% User Fees 5%

15.26. Regulatory Services (Health, Liquor, Noise and Parking)

15.26.1. Overview The purpose of this service is to: . Provide health and licensing services . Provide general protection to public health and safety.

15.26.2. Reasons for involvement in the activity The Council is legally required to undertake activities specified in various Acts, including: . Food Act 1981 . Health Act 1956 . Local Government Act 1974 and 2002 . Sale and Supply of Alcohol Act 2012 . Resource Management Act 1991.

15.26.3. Method of service delivery Council provides day-to-day services in-house. This is considered a core competency of Council. The benefits of in-house service delivery are: . The knowledge and research that is undertaken for this activity by employees of Council is retained and is easily passed on to other staff. Most of the knowledge is then contained in Council’s records and systems. There is also a greater propensity for knowledge of things local. . It is likely to be more economic and efficient to have in-house provision for much of this service. . Improved integration between policy, licensing and monitoring by having the overview of the three sub- functions linked by in-house employees. The networking between local government officers, government agencies and elected members produces a strong synergy that would be lost if this function was provided externally.

15.26.4. Principal indicators Strong public good indicators. Non-excludability and non-rivalry exist, but are not total. The other indicators include market failure, merit goods and exacerbator pays.

15.26.5. Funding decisions

Community outcomes: . Grow our economy . A quality regulatory service . Efficient Council operations.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 139 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.26.6. Distribution of benefits

Licenses and inspection Where services provide independent certification that adequate standards have been met in the operation of an activity, eg hairdressers, food premises, liquor outlets, the benefits of the service are predominantly received from the holder of the certificate or licence. There are also a small number of services from which it is not appropriate to levy a fee such as the investigation of infectious diseases. Council has a statutory responsibility to undertake this function and could not withhold the service from anyone unable to pay. Another important part of regulatory inspection work is providing information and advice to the developer as well as the general public about potential effects and/or relevant legislative requirements.

Enforcement There is a greater element of public good in the enforcement area. At present, most enforcement work is undertaken in response to a complaint from the public about an activity. Where possible, the costs of enforcement work are recovered from the exacerbator. For example, charges are imposed when stereos are confiscated by noise control.

15.26.7. Capital Expenditure - period of benefits This activity is about service delivery to current ratepayers and residents. There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.26.8. Action/inaction by others Stakeholders must maintain high standards for the activity objectives to be achieved. The impact of this not occurring will result in increased costs for the activity.

15.26.9. Costs and benefits of separating this activity The regulatory nature of the relevant Acts makes it appropriate to combine the various requirements of these Acts together into a separate activity. Council has appropriate systems in place to separately allocate costs to this activity.

15.26.10. Overall impact on the current and future wellbeing This activity is primarily geared towards the social needs of current communities.

15.26.11. Funding conclusions It is sometimes difficult to recover costs in the enforcement area, in particular when complaints are received. Income from the exacerbator is unpredictable and not significant. Legislative limitations on fees, eg liquor licensing, also places a restriction on Council’s ability to recover user charges. Council will to the extent possible fund the private benefit on a cost recovery basis using a range of fees and charges designed to generate approximately 20% of revenue required to operate the service. The public good element is to be funded from general rating revenues.

15.26.12. The funding is: General rating mechanisms 80% User Fees and Charges 20%

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 140 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.27. Resource Management (Planning)

15.27.1. Overview The purpose of this service is to: . Promote the sustainable management of the district’s natural and physical resources . Process resource consents and provide environmental services in accordance with the Resource Management Act 1991.

15.27.2. Reasons for involvement in the activity The Council is legally required to undertake activities specified in various Acts, including: . Local Government Act 1974 and 2002 . Resource Management Act 1991.

15.27.3. Method of service delivery Council provides day-to-day services in-house and uses consultants to provide the specialist advice required for some policy and monitoring activities. This is considered a core competency of Council. The benefits of in- house service delivery are: . The knowledge and research that is undertaken for this activity by employees of Council is retained and is easily passed on to other staff. Most of the knowledge is then contained in Council’s records and systems. There is also a greater propensity for knowledge of things local, particularly awareness of environmental issues that arise from time to time and a knowledge of community values and understanding of the importance placed on particular environmental issues. . It is likely to be more economic and efficient to have in-house provision for much of this service. . Improved integration between policy, consents and monitoring by having the overview of the three sub- functions linked by in-house employees. The process and procedures required for many consent activities are more efficiently performed by in-house staff through inter-departmental activity co- operation. The networking between local government officers, government agencies and elected members produces a strong synergy that would be lost if this function was provided externally.

15.27.4. Principal indicators Strong public good indicators. Non-excludability and non-rivalry exist, but are not total. The other indicators include market failure, merit goods and exacerbator pays.

15.27.5. Funding decisions

Community outcomes: . Grow our economy . Improved external image . A quality regulatory service . Efficient Council operations.

15.27.6. Distribution of benefits

Consents and inspection Where services provide resource consents to individuals or developers, the benefits of the service are predominantly received from the holder of the consent. The consent holder is granted permission to undertake an activity provided they meet certain standards. There are also benefits to the users of the service for which a certificate or consent has been granted. Another important part of consent work is providing information and advice to the public about the requirements of relevant legislation.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 141 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy Enforcement There is a greater element of public good in the enforcement area. At present, most enforcement work is undertaken in response to a complaint from the public about an activity. Where possible, the costs of enforcement work are recovered from the exacerbator. There is also a monitoring fee on all resource consents to help cover the costs of inspection. Where people are not meeting the conditions of the consent, further action may be taken and costs recovered.

Policy The main purpose is to prepare plans which set standards or guidelines for the sustainable management of the environment and benefits for the community as a whole. The District Plan sets the standards to ensure the resources in the district will be available for future generations. It is appropriate that the community as a whole meets the costs of planning.

15.27.7. Funding of capital projects This activity is about service delivery to current ratepayers and residents. There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.27.8. Action/inaction by others Stakeholders must maintain high standards for the activity objectives to be achieved. The impact of this not occurring will result in increased costs for the activity.

15.27.9. Costs and benefits of separating this activity The nature of this activity makes it appropriate to separate it from other activities that Council carries out. Council has appropriate systems in place to separately allocate costs to this activity.

15.27.10. Overall impact on the current and future wellbeing This activity is primarily geared towards environmental and social needs of current communities.

15.27.11. Funding conclusions Council considered that, with the exception of policy and monitoring work, the most efficient, effective and transparent method of funding the private benefit (the applicant allocation) is a cost recovery basis using a range of fees and charges designed to generate approximately 35% of revenue required to operate the service. The public good element of consenting work, and the policy and monitoring work, is to be funded from general rating revenue.

15.27.12. The funding is:

Resource management (Consent processing) General rating mechanisms 65% User Fees and Charges 35%

Resource management (Policy and monitoring, including environmental protection and monitoring) General rating mechanisms 100%

15.28. Roading

15.28.1. Overview The purpose of this function is to effectively and efficiently manage a safe district roading network. Unlike most rural areas of New Zealand, almost all the rural roads in the district are sealed.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 142 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.28.2. Reasons for involvement in the activity There is an on-going need for re-strengthening, widening and improving road shape, particularly on rural roads, due to increased traffic volumes, vehicle size and loads carried, along with increased road speed. Council continues to investigate all options available for working in co-operation with other local authorities to provide effective and efficient carriageway maintenance services. Council has taken a proactive role in the reduction of stock truck effluent spillages onto roads by establishing disposal sites. In addition, Council is actively identifying further sites for future development. Facilities for discharging wastes from camper vans have been provided in Tokoroa and Tīrau.

15.28.3. Method of service delivery

Ownership There are no statutory provisions enabling the sale of the district roading network and therefore alternatives to Council ownership of the assets were not considered any further.

15.28.4. Asset planning and management Council currently provides the asset management sub-function for roading with in-house professional staff through a business unit structure. In order to provide a critical mass of work to attract and retain staff and provide a full work programme, it is necessary to provide roading professional services in-house. These decisions have been made in accordance with New Zealand Transport Agency rules and have been subject to independent audit. As a small local authority, engineering staff are required to specialise in a number of engineering disciplines. Council requires a core engineering staff for this purpose. Roading is an integral part of this work.

15.28.5. Physical works The 1995 amendment to the Transit New Zealand Act required Councils, over a period of three years, to subject their Transfund NZ subsidised roading maintenance programmes to the market through a contestable tendering process. At that time, Council undertook a full review to comply with this requirement. Capital projects, which in the main are restricted to rehabilitation works, rural seal extension and urban kerb and channel with footpaths, are all designed by in-house engineers and constructed by private sector contractors using competitive tendering procedures as required by the NZTA. Much of the rural roading was first sealed in the 1950’s. Increased traffic volumes, vehicle size and loads carried, along with increased road speed and normal road deterioration, have resulted in the on-going need for re-strengthening, widening and improved road shape. A high proportion of the annual roading programme attracts a significant government subsidy. Unsubsidised expenditure is associated with the provision and maintenance of carparks, footpaths, berms and miscellaneous road management issues. The subsidy is provided from the NZTA and is sourced from road user charges, petrol excise tax and registration fees which can be viewed as user charges. Central Government sets the charges and allocates the funds. A portion of the funds raised from motorists is made available to provide and maintain local roads. State highways are fully owned, funded and maintained by Central Government agencies. The cost of upgrading the central business districts of Putāruru, Tīrau and Tokoroa was financed by a combination of proceeds from the sale of Council assets, investment income, a separate annual uniform property charge and long-term debt. The CBD loan of $2 million, part funded deferred repairs and maintenance and the cost of upgrading work to a standard that exceeded that in place before the CBD project commenced.

15.28.6. Principal indicators Strong public good indicators. Non-excludability and non-rivalry exist but are not total. The other indicators include market failure and merit goods. The exacerbator pays element is covered by fuel taxes received through NZTA subsidies.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 143 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.28.7. Funding decisions

Community outcomes: . Grow our economy . Well managed infrastructure . Sustainable Council operations . Efficient Council operations.

15.28.8. Distribution of benefits Central Government collects user charges from the motorist via petrol excise tax, road user charges and registration fees. The balance of the cost is raised from local ratepayers. Council contends that this should be treated as a public good element as it has no authority to levy user charges. The local public good element is predominantly about providing access and opportunity for use. However, further benefits accrue from providing access for pedestrians and cyclists, utility passageways and road safety issues. Council considered the issues and, on both an economic and public wellbeing basis, determined that the allocation of the ratepayer contribution was considered to be 100% public good.

15.28.9. Capital expenditure - period of benefits Roading is a long-term asset. Council has identified long-term benefits of developing new roads and funds this through depreciation reserves, loans and NZTA subsidies.

15.28.10. Action/inaction by others Heavy vehicle and high volume users impact on the quality of the roading network. This exacerbator situation is covered to a certain extent by the NZTA subsidy being partly sourced from road user charges and excise tax which are weighted towards heavier and higher users.

15.28.11. Costs and benefits of separating this activity The size and nature of this activity is unique to Council. The practical management of this activity is such that it operates as one activity. Council has an appropriate structure in place to allocate costs to this activity.

15.28.12. Overall impact on the current and future wellbeing This activity is primarily geared towards economic, social and cultural needs of current communities.

15.28.13. Funding conclusion Council considered that the most effective, efficient and transparent method available for funding the public good service was general rating mechanisms, after gaining as much revenue as possible from Central Government subsidies.

15.28.14. The funding for the net cost of this activity, after the receipt of subsidies, is:

Roading (General roading activities) General rating mechanisms 100%

Roading (CBD Upgrade loan) General rating mechanisms 100%

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 144 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.29. South Waikato Performing Arts Centre (The Plaza) and Tīrau Hall

15.29.1. Overview Council owns the South Waikato Performing Arts Centre (The Plaza) in Putāruru. There is no other facility like this in the South Waikato, with its 520 seating capacity, nine bar fly tower and spacious stage areas. Council owns the Tīrau Hall. While primarily serving the needs of the Tīrau community it is used to host events attracting use from the wider district and in some cases out of district visitors.

15.29.2. Reasons for involvement in the activity Council provides these facilities as they encourage visitors to our district and they also promote arts and culture

15.29.3. Method of service delivery The Plaza is managed in-house by Council staff. The operations of the Tīrau Hall are managed by a local hall committee.

15.29.4. Principal indicators Excludability is the strongest indicator. Rivalry, merit goods and prestige value also exist and, to a minor extent, exacerbator pays.

15.29.5. Decisions Community outcomes: . Improved external image . Quality services and facilities . Community pride . Cultural leadership

15.29.6. Distribution of benefits The South Waikato Performing Arts Centre represents a portion of Council’s contribution to the cultural and leisure infrastructure of the district. The most direct beneficiaries are the regular users and those who attend or will attend events held in these venues. The community benefits from having multiple cultural/leisure opportunities to enjoy and the district’s reputation is enhanced by the provision of a broad spectrum of cultural/leisure choices. The Tīrau Hall provides a community facility able to be used for social and cultural purposes. Again, while the most direct beneficiaries are the regular users and those who will attend meetings and events held in the hall, the wider community benefits from having a facility such as this.

15.29.7. Capital expenditure - period of benefits The theatre and hall will benefit the community and users, currently and in the future. Council proposes to fund significant development through built-up reserves, depreciation reserves and loan funding.

15.29.8. Action/inaction by others Misuse by users can impact on the quality of these facilities.

15.29.9. Costs and benefits of separating this activity It is necessary to keep these facilities separate from other activities to clearly identify the cost to the community. Council has established a structure which caters for easy allocation of costs to these activities.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 145 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.29.10. Impact on the current and future wellbeing These activities are primarily geared towards the economic, social and cultural needs of current communities.

15.29.11. Funding conclusion Council has considered its allocation of district and community benefit in relation to these two facilities and the South Waikato Sport and Events Centre to the other community cultural/leisure facilities provided throughout the district. Council has determined that these three facilities will be funded from general rating mechanisms across the wider district. This will mean that one key facility will be funded district-wide in each of the three major urban areas. The other halls, located in rural areas, will not be funded district-wide – see the separate funding policy for these. Council considers that the most efficient and transparent method available for funding the public good allocation of the South Waikato Performing Arts Centre and the Tīrau Hall is general rating mechanisms. There will be some hireage revenue generated from these facilities however the net costs after recognition of that revenue will be met by rates.

15.29.12. The funding is: General rating mechanisms (after recognition of hireage income) 100%

15.30. South Waikato Sport and Events Centre

15.30.1. Overview The South Waikato Sport and Events Centre was opened in 2012. The Centre is comprised of a 1,600m2 arena, large enough to accommodate two international sized netball courts, a 560m2 flat floor space designed for gymnastics and sports such as karate and a two room function centre. The facility is used for a wide range of sporting, meeting and community purposes.

15.30.2. Reasons for involvement in the activity The key reasons for constructing the South Waikato Sport and Events Centre are: . Consolidation of venues to provide fewer venues of better quality, centrally located with co-ordinated management and catering for a wide range of activities and services . Cost-efficiencies to the community through consolidated recreation support in fewer, better quality facilities . Creation of a platform on which to build future high quality events from excellent facilities and management . Development of a facility to anchor community pride . To provide a high quality facility to support working people and retain population in Tokoroa by building needed social infrastructure.

15.30.3. Method of service delivery The South Waikato Sport and Events Centre is managed by the Leisure Services Board, which is a sub- Committee of Council delegated wide powers to overview the management of the centre. The Leisure Services Board includes representatives of user groups and members of the district with a particular knowledge and passion for sports and events.

15.30.4. Principal indicators Excludability is the strongest indicator. Rivalry, merit goods and prestige value also exist and, to a minor extent, exacerbator pays.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 146 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.30.5. Funding decisions

Community outcomes: . Improved external image . Quality services and facilities . Community pride . Cultural leadership.

15.30.6. Distribution of benefits The most direct beneficiaries are the regular users and those who will play sport or attend events held in the centre. The community benefits from having contemporary facility to enjoy and the district’s reputation is enhanced by having the facility.

15.30.7. Capital expenditure - period of benefits The South Waikato Sport and Events Centre, will benefit the community and users, currently and in the future. Council proposes to fund significant development through built-up reserves, depreciation reserves and loan funding.

15.30.8. Action/inaction by others Misuse by users can impact on the quality of these facilities.

15.30.9. Costs and benefits of separating this activity It is necessary to keep these facilities separate from other activities to clearly identify the cost to the community. Council has established a structure which caters for easy allocation of costs to these activities.

15.30.10. Overall impact on the current and future wellbeing These activities are primarily geared towards the economic, social and cultural needs of current communities.

15.30.11. Funding conclusion Council has considered its allocation of district and community benefit in relation to these three facilities and to the other community cultural/leisure facilities provided throughout the district. Council has determined that these three facilities (Plaza, Tīrau Hall and SWSEC) will be funded from general rating mechanisms across the wider district. This will mean that one key facility will be funded district-wide in each of the three major urban areas. Council considers that the most efficient and transparent method available for funding the public good allocation of the South Waikato Sport and Events Centre is general rating mechanisms. Fees collected from using the SWSEC will be used to generate as much revenue as possible. However, it is considered that pricing is sensitive. Prices that are considered by users as being too high could have an adverse effect on usage and, in particular, for people in the lower socio-economic areas of the community. Council considered that in the interests of fairness and equity the proportion of user benefit should not exceed 20%. Council considered that the public good element (both district-wide and local community) should be funded from general rating revenue. This was felt to be an appropriate, effective, efficient and transparent way of funding the public good. Council considered that admission fees were the most appropriate, efficient, effective and transparent method of funding the private benefit.

15.30.12. The funding is: General rating mechanisms 80% Fees and Charges 20%

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 147 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.31. Stormwater

15.31.1. Overview The purpose of this service is to manage public stormwater disposal systems. Rates harmonisation schemes have been set in place for urban areas for water, stormwater and sewerage.

15.31.2. Reasons for involvement in the activity Historically, Council has provided these services. It is a core function of a Council.

15.31.3. Method of service delivery Management, supervision and policy advice is provided directly by Council. This is considered a core competency of Council. Any works design is carried out by Council’s professional staff who are favoured for works design because of their experience and local knowledge, enabling them to produce cost effective solutions. The main urban areas of the district are serviced by a network of stormwater pipes which collect stormwater run-off and dispose of it into natural waterways. Most of the pipelines are of reinforced concrete, with a life expectancy of up to 100 years. The primary purpose is to minimise damage from flooding throughout the district. Council maintains other rural drainage schemes as part of the roading network. Service standards are defined within adopted Asset Management Plans.

15.31.4. Principal indicators Strong public good indicators. Non-excludability and non-rivalry in the serviced areas is the main feature of this service. The other indicators include market failure, merit goods and options and existence values.

15.31.5. Funding Decisions

Community outcomes: . Well managed infrastructure . Sustainable Council operations

15.31.6. Distribution of benefits

Urban stormwater Council is of the view that publicly owned stormwater control services provide both community and district benefits. The community (including private) benefit is high as it reduces the risk of flooding and associated problems, including disruption to transport, property damage and risk to personal safety. Stormwater services provide similar benefits to the district, albeit on a smaller scale. These benefits include maintaining high standards of public health, keeping roadways clear of flood water and minimising inconvenience for the public at large. This is particularly important because of the close settlement within urban areas. Stormwater services on a private property that are for the benefit of that property or are to mitigate the effects of stormwater runoff from that property on downstream properties are the responsibility of the property owner. Council may construct public stormwater services on private property with the consent of the property owner and may require the property owner to contribute to the cost of construction and maintenance where there are benefits accruing to that property, recognising an element of exacerbator pays.

15.31.7. Period of benefit There are inter-generational equity considerations especially within the urban environment related to public safety. Capital work will be funded by depreciation reserves and loan.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 148 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.31.8. Action/inaction by others Users of the scheme can impact on this activity.

15.31.9. Costs and benefits of separating this activity Stormwater is an activity closely monitored by the community. Given the high community benefit, Council considers it appropriate to separate this activity. Council has appropriate systems in place to allocate costs to this activity.

15.31.10. Overall impact on the current and future wellbeing This activity is primarily geared towards environmental, social and cultural needs of current and future communities.

15.31.11. Funding conclusion Council considered that the most effective, efficient and transparent method for funding urban stormwater services is to charge a targeted rate in the dollar of rateable value within each urban stormwater drainage area. The choice of a capital value targeted rate in part recognises that larger properties have the potential to discharge more water into the stormwater system.

15.31.12. The funding is: Urban stormwater - Targeted rate 100%

15.32. Swimming Pools

15.32.1. Overview Council owns and operates the district’s indoor heated pool complex (South Waikato Indoor Pools) in Tokoroa and, during summer months, outdoor pools in Putāruru and Tīrau. These facilities provide a range of aquatic recreational opportunities that cater for the needs of all ages – from young children and their parents, youth, swimming clubs and school groups to retired people and individuals wanting exercise.

15.32.2. Reasons for involvement in the activity Public swimming pools are traditionally provided by local government. Feasibility studies undertaken prior to the construction of the South Waikato Heated Indoor Pools established the need for a new pool at Tokoroa based on recreational trends, a demographic profile of the district, the identification of potential user groups and the catchment area.

15.32.3. Public wellbeing Council has adopted a role of being the significant provider of recreational facilities/services to assist in generating public wellbeing in the community. The facility/services supports the general health and welfare of the community. There is a strong public good component for this work and no commercial provision of this service.

15.32.4. Community expectation The community has developed an expectation that Council will provide certain facilities. Once Council provides a service, it is expected to continue.

15.32.5. Economic good Recreational facilities contribute to the economy through commercial operations, tourism, visitors attracted for specific events, support to retailers and fundraising. Council’s continued contribution will bring economic benefit to the district. A community that has attractive community facilities becomes a more attractive place in which to invest, live and work.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 149 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.32.6. Community self-esteem The ’goodness’ and ’wellness’ of the community is dependent on the individuals of the community feeling good about themselves. Recreational activities and facilities raise the confidence and esteem of individuals and therefore facilitate the increased self-esteem of a community.

15.32.7. Visual importance and beautification Council provides recreation facilities to contribute to the visual beauty, prestige and civic pride of the district. Visually pleasing surroundings have an uplifting effect on the people within the community. The amenity value is important.

15.32.8. Method of service delivery Swimming pools are purpose-built facilities. A private investor in such a facility would require both a return on capital and have to pay tax on profits. Because they are purpose-built facilities with no alternative use, returns sought on investment through leases is high. Council has therefore funded and provided these facilities. In a few areas, the private sector is now contracted to manage swimming pool complexes. No opportunities currently exist to do this in the South Waikato and it is doubtful that this service would be contracted out in Tīrau and Putāruru, where the swimming pools operate for only a few months of the year. Council has a major investment in swimming pools. The South Waikato Indoor Pools, a heated indoor aquatic centre located in Tokoroa, is open extended hours for 363 days a year and offers a comprehensive programme of aquatic activities for all age groups. The other pools are located in Putāruru and Tīrau. They are outdoor, unheated and are open for public use during the summer months. Patronage of all pools is predominantly children and youth. However, an increasing number of adults are participating in the programmes being offered.

15.32.9. Principal indicators Excludability and Rivalry exist, but are not total. The other indicators include externalities, market failure, merit goods, option, existence, bequest and prestige values and exacerbator pays.

15.32.10. Funding decisions

Community outcomes: . Improved external image . Quality services and facilities . Community pride . Sustainable Council operations

15.32.11. Distribution of benefits The pools represent a major portion of Council’s contribution to the district leisure infrastructure. The benefits provided are multiple. The most direct beneficiaries are pool users. They include individuals, both children and adults, senior adults, clubs and schools. These groups are identifiable and therefore excludable. Community benefit is based on option values in that residents have an additional leisure activity choice. Quality leisure facilities enhance the reputation of the district (district image) and assist in promoting the South Waikato as a place in which to invest, live and work.

15.32.12. Capital expenditure - period of benefits The South Waikato Indoor Pools complex is primarily for current and future users of the facility. Any significant capital developments and renewals will be funded from the depreciation reserves or loan.

15.32.13. Action/inaction by others Swimmers impact on the cost of this activity and, to a lesser extent, the swimming club, schools and user groups.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 150 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.32.14. Costs and benefits of separating this activity There is sufficient interest to separate out this activity. It is considered necessary to keep these facilities separate from other facilities to clearly demonstrate the benefits and costs to the community. There is no alternative grouping into which this activity could be added. There is an appropriate structure in place for the allocation of costs to this activity.

15.32.15. Overall impact on the current and future wellbeing This activity is primarily geared towards environmental, economic, social and cultural needs of current and future communities.

15.32.16. Funding conclusions Ticket sales will be used to generate as much revenue as possible. However, it is considered that pricing is sensitive. An increase in prices could have an adverse effect on pools usage and, in particular, for people in the lower socio-economic areas of the community. Council considered that in the interests of fairness and equity the proportion of user benefit should not exceed 20%. Council considered that the public good element (both district wide and local community) should be funded from general rating revenue. This was felt to be an appropriate, effective, efficient and transparent way of funding the public good. Council considered that admission fees (ticket sales) were the most appropriate, efficient, effective and transparent method of funding the private benefit.

15.32.17. The funding is: General rating mechanisms 80% Admission Fees 20%

15.33. Talking Poles and Waikato River Trails

15.33.1. Overview Council puts funding into these activities as cultural and recreational activities for the enjoyment of local residents and as an attraction for out of district visitors. Council’s role is involvement as a major funder in recognition of the significance of these projects to the community.

15.33.2. Reasons for involvement in the activity These projects are significant in their amenity value to local residents and in their attraction for out of district visitors. Council uses both of these projects in district promotion materials. District promotion is a critical factor to ensure the economic success of the district and residents and ratepayers expect Council to play a lead role in this.

15.33.3. Method of service delivery From July 2015, the Talking Poles will be managed in-house by Council. The Waikato River Trails is managed by an external trust, because of the Trust's ability to leverage external funding.

15.33.4. Principal indicators Strong public good indicators. Non-excludability and non-Rivalry are the principal features of this service.

15.33.5. Funding decisions

Community outcomes: . Improved external image . Community pride . Cultural leadership.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 151 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.33.6. Distribution of benefits Council considered that support of these projects conveyed positive public benefits. They are important for both district promotion purposes, and for the on-going recreational and arts and cultural enjoyment of residents. It is recognised that these projects primarily provide public benefits.

15.33.7. Capital expenditure - period of benefits The benefits are for current and future communities. However, there is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.33.8. Action/inaction by others The involvement of the community can impact on the success or otherwise of this activity.

15.33.9. Costs and benefits of separating this activity The benefit received from this activity is not always tangible. For this reason, it is important that Council keeps track of its contribution to these activities, which are distinct from other activities. Council has an appropriate structure in place to allocate costs to this activity.

15.33.10. Overall impact on the current and future wellbeing These activities are geared towards both the economic needs of the community, and on-going social and cultural wellbeing.

15.33.11. Funding conclusion Council considered that the most appropriate effective, efficient and transparent method of funding the public good allocation was general rating revenue.

15.33.12. The funding is: General rating mechanisms 100%

15.34. Tokoroa Airfield

15.34.1. Overview Council manages the Tokoroa Airfield. As well as being used for various aviation purposes there are other activities that take place in and around the airfield facilities that generate revenue, for example rental of hangar sites, use of the runway for driver training and drag car and go-cart racing, etc.

15.34.2. Reasons for involvement in the activity Council’s involvement in the airfield is long-standing with the land on which it is built being Council reserve land. Because of the nature and ownership of the land Council will be the long term owner and operator of the facilities.

15.34.3. Method of service delivery Direct management using in-house services is considered the most appropriate means of service delivery.

15.34.4. Principal indicators Generally there is excludability and rivalry.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 152 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.34.5. Funding decisions

Community outcomes: . Improved external image . Quality services and facilities . Community pride.

15.34.6. Distribution of benefits It was considered that private use of Council property conveyed private benefits. However, there is public good in maintaining a local airport.

15.34.7. Capital expenditure - period of benefits There are inter-generational equity issues with this activity. Capital spending is funded from reserves and loan.

15.34.8. Action/inaction by others Users, tenants and lessees have the ability to impact on the quality and standard of the facilities.

15.34.9. Costs and benefits of separating this activity. The nature of this activity indicates that it should be accounted for separately. Council has appropriate systems in place to allocate costs to this activity

15.34.10. Overall impact on the current and future wellbeing This activity is primarily geared towards social and economic needs of current communities.

15.34.11. Funding conclusion Council noted that there were no issues of fairness and equity which would alter the allocation of cost. This activity is, wherever possible, supported by rental income however rates funding is also justified due to the public good element.

15.34.12. The funding for this service is: General rating mechanisms 40% User fees 60%

15.35. Tokoroa Council of Social Services

15.35.1. Overview Council has a role in supporting non-profit groups working in our community. One way of doing this is in providing them with facilities that they can use to conduct their business at low or no cost

15.35.2. Reasons for involvement in the activity Community wellbeing is greatly enhanced by the work that various non-profit groups do in our communities. With Central Government increasingly stepping away from the provision of social services, the need has become even greater. Council has a leadership role in the community and encouraging and partnering with these groups clearly fits into that role.

15.35.3. Method of service delivery Council leases and maintains the building for lease and use by various groups.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 153 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.35.4. Principal indicators Excludability and rivalry exist but are not total. The other indicators include: market failure, merit goods, option and prestige values.

15.35.5. Funding Decisions

Community Outcomes: . Community pride . Cultural leadership.

15.35.6. Distribution of benefits The beneficiaries of this activity are to those who use the Tokoroa Council of Social Services. Council considered that this service, closely related to the community support and grants function, was primarily engaged in providing a public benefit for the community and district as a whole. Council did recognise that in providing this service the flow-on effect could generate private benefits. However, the public benefit was dominant and came first.

15.35.7. Capital expenditure - period of benefits There are no inter-generational equity considerations. There is minimal or no capital expenditure and no significant inter-generational equity considerations for this activity.

15.35.8. Inaction by others The impact of others should be minimal.

15.35.9. Costs and benefits of separating this activity It is appropriate that the results and associated costs are separately disclosed. Council has an appropriate structure in place to allocate costs to this activity.

15.35.10. Overall impact on the current and future wellbeing This activity is primarily geared towards the social and cultural needs of current communities.

15.35.11. Funding conclusion Council considered that the most effective, efficient and transparent method for funding this public good service was general rating mechanisms. Private benefit is recognised in a funding allocation from user fee rentals.

15.35.12. The funding is: General rating mechanisms 80% User fees 20%

15.36. Waste - Landfills and Refuse Disposal

15.36.1. Overview

Landfill operations Council now has only one operational landfill site, located just outside Tokoroa which services the district. The closed landfills in Putāruru and Tīrau are subject to aftercare. A transfer station with greenwaste mulching is located in Putāruru serving the northern part of the district. All sites are managed in accordance with Council’s Solid Waste Site Management Plans.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 154 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy Hazardous waste disposal Council provides basic facilities for the acceptance of normal domestic hazardous waste at the Putāruru and Tokoroa sites. Putāruru has facilities for waste oil, batteries, needles, and fluorescent tubes. Tokoroa has facilities for normal household chemicals, paint, waste oil, batteries, needles, and fluorescent tubes. Commercial, industrial and agricultural wastes are not accepted.

15.36.2. Reasons for involvement in the activity Council has historically been involved in the provision of landfill operations and refuse disposal for public health and safety reasons. The Local Government Act 2002 empowers Councils to be involved in these activities. There are no other publicly available landfills available in the district and Council retains an advantage while it has a landfill inside the district. Council has a significant investment in retaining a landfill site represented by the volume of landfill available under its Resource Consent.

15.36.3. Method of service delivery Council views its landfill and transfer stations as important community assets and will retain ownership for the foreseeable future. The landfill is managed under facilities operations contract by an independent contractor. In addition, Council promotes environmental policies such as recycling and green waste mulching.

15.36.4. Principal Indicators Non-excludability and non-rivalry exist. The other indicators include externalities, market failure, merit goods and options and existence values.

15.36.5. Funding Decisions

Community outcomes: . Well managed infrastructure . Sustainable Council operations.

15.36.6. Distribution of benefits The disposal of solid waste conveys significant private benefits to ratepayers and residents, however the operation of environmentally sound landfill and transfer station sites also assists in maintaining local public health standards. It also reduces the incidence and impact of illegal dumping of solid waste, and the consequent reduction of district aesthetic values. A high standard of landfill site management also assists in reducing environmental damage at the local and national level. Appropriate disposal methods and aftercare (including monitoring of closed landfill sites) assists in reducing the possibility of future environmental damage. These matters are public good benefits. Users of landfill sites are the direct and largest group of beneficiaries of this service. On the basis of the exacerbator pays, Council considered that the largest portion of economic benefit accrued to this group.

15.36.7. Capital expenditure - period of benefits There are inter-generational equity considerations with this activity. The landfills will require monitoring after closure. Capital spending will be met from reserves and loans, and Government grants when they are approved.

15.36.8. Action/inaction by others Users of landfill sites impact on this service. The level of recycling also impacts on this activity.

15.36.9. Costs and benefits of separating this activity Council has decided to separate this activity due to its nature (disposal) being different from collection and recycling. Council has an appropriate system in place to separately allocate the costs to this activity.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 155 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.36.10. Overall impact on the current and future wellbeing This activity is primarily geared towards economic and environmental needs of current and future communities.

15.36.11. Funding conclusion Council will retain a 70% private benefit, 30% public good split.

15.36.12. The funding is: General rating mechanisms 30% User Fees and Charges 70%

15.37. Waste – Litter Collection

15.37.1. Overview The service ensures that there are adequate litter collection arrangements in public places and that litter bins are properly maintained and emptied. This includes general litter collection from kerb and channels, some road berms and water tables. There has been increasing expenditure to deal with 'illegal dumping' and cars illegally abandoned on roadsides.

15.37.2. Reasons for involvement in the activity Historically, Council has provided these services. Much of the on-going work is contracted out on a competitive tendering basis. Council is involved in the provision of utility services for public health and safety reasons. The Local Government Act 2002 empowers Councils to be involved in these activities. In the litter control area, the Litter Act 1979 empowers Councils to appoint Litter Control Officers and undertake litter control.

15.37.3. Method of service delivery Litter collection is undertaken entirely by external contract. This has been determined as being the most cost effective form of service delivery.

15.37.4. Principal indicators Strong public good indicators, non-excludability and non-rivalry are the main features of this service.

15.37.5. Funding decisions Community outcomes: . Improved external image . Quality services and facilities . Sustainable Council operations.

15.37.6. Distribution of benefits While the service provides significant private benefits, particularly to property owners in the central business districts, there are huge public benefits in ensuring that litter is not left on the streets, roadsides and public places. There is also a requirement to maintain public health standards in the interests of the community at large.

15.37.7. Capital expenditure - period of benefits There are no inter-generational equity considerations with this activity. The benefits are for the current communities.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 156 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.37.8. Action/inaction by others Exacerbators of litter will impact on the cost of this activity.

15.37.9. Costs and benefits of separating this activity Council considered that removing litter from public places and improving the image of the district is an essential service and therefore it is necessary to separate this activity. Council has an appropriate system in place to allocate costs to this activity.

15.37.10. Overall impact on the current and future wellbeing This activity is primarily geared towards environmental and social needs of current communities.

15.37.11. Funding conclusions Council considered that the most appropriate, effective, efficient and transparent method for providing funding for this activity is through general rating mechanisms.

15.37.12. The funding for the recovery of costs incurred to collect litter is: General rating mechanisms 100%

15.38. Waste - Refuse Collection

15.38.1. Overview Council provides a weekly kerbside refuse and fortnightly kerbside recyclable collection service for defined areas (mostly urban) in Arapuni, Putāruru, Tīrau and Tokoroa.

Reasons for involvement in the activity Historically, Council has provided this service. Much of the on-going work is contracted out on a competitive tendering basis. Council is involved in the provision of refuse collection services for public health and safety reasons and the promotion of waste minimisation. The Local Government Act 2002 empowers Councils to be involved in these activities.

15.38.3. Method of service delivery Refuse collection and the collection of recyclable items is undertaken by external contractors. This has been determined as providing best value for money for the community. The service is provided for urban residential and commercial properties. Rural property owners make their own arrangements for refuse collection and disposal.

15.38.4. Principal indicators Strong private good indicators. Excludability and rivalry in the collection areas are the main features of this service.

15.38.5. Funding decisions Council considered that this service provided a small, but important, element of district and community benefit. Benefits include: . Maintaining public health standards, vermin control and the community image . Promotion of waste minimisation initiatives.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 157 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.38.6. The direct beneficiaries of this service are the properties in the collection area. Community outcomes: . Quality services and facilities . Sustainable Council operations.

15.38.7. Distribution of benefits Individual property owners' benefit from the collection of rubbish but there is also a public benefit in relation to protection of public health, as required by the Health Act 1956. The collection activity is primarily private.

15.38.8. Capital expenditure - period of benefits There are no capital works. The benefits are immediate, with no inter-generational equity.

15.38.9. Action/inaction by others The urban properties within the collection area will impact on the cost of this service. However, there are very different demands on the service depending on factors such as the number of people residing in a home, the level of waste generated, the use or non-use of commercial refuse collection alternatives, the use of composting initiatives within the property, the level of recycling, etc.

15.38.10. Costs and benefits of separating this activity Council has decided to separate this activity due to its nature (collection) being different from the ultimate landfill disposal management. Council has an appropriate system in place to separately allocate the costs to this activity.

15.38.11. Overall impact on the current and future wellbeing This activity is primarily geared towards the environmental needs of current communities.

15.38.12. Funding conclusion In the previous 10 year plan Council proposed that due to the very different demands of residents on this service, and to encourage recycling and other waste management initiatives, that the refuse collection service should be funded on a user pays basis. This proposal attracted significant interest during the special consultative procedure. After considering the submissions Council resolved to not make any changes to the current system at this time, reverting the 10 year plan back to the status quo of ratepayer funded refuse bag distribution. The review of the Waste Management and Minimisation Plan has indicated a change to user pays refuse bags which will include their disposal costs, and for the collection cost to be covered by a rate.

15.38.13. The funding is: Targeted rate on a uniform basis 55% User Charges 45%

15.39. Waste – Recycling

Overview Council provides a fortnightly kerbside recyclable collection service for defined areas (mostly urban) in Arapuni, Putāruru, Tīrau and Tokoroa. There are also recycling bins located at several sites including Waotu, Okoroire, Tīrau, Tokoroa, Tokoroa landfill and the Putāruru transfer station which are cleared regularly by a contractor.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 158 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy Reasons for involvement in the activity Historically, Council has provided this service, for much the same reasons as it has also provided a weekly refuse collection service. The collection work has been contracted out on a negotiated tendering basis with the South Waikato Achievement Trust. Council is involved in the provision of the service for public health and safety reasons and for the promotion of waste minimisation. The Local Government Act 2002 empowers Councils to be involved in these activities.

Method of service delivery The review of Waste Management and Minimisation Plan would see the collection service undertaken by external contractors and the recyclables delivered to and processed by the South Waikato Achievement Trust. The Council has invested in custom built building to accommodate the recyclables processing. The kerbside collection service is largely provided for urban residential and commercial properties. Some rural property owners are able to use this service but others use the rural service that is mentioned above.

Principal indicators Strong private good indicators. Excludability and rivalry in the collection areas are the main features of this service.

Funding decisions Council considered that this service provided an increasingly important element of district and community benefit. Benefits include: . Maintaining public health standards, vermin control and the community image . Promotion of waste minimisation initiatives. The direct beneficiaries of this service are the properties in the kerbside collection areas but all residents benefit from the service to some degree. Community outcomes: . Quality services and facilities . Community pride . Sustainable Council operations.

Distribution of benefits Individual property owners' benefit from the collection of recyclable waste materials but there is also a public benefit in relation to protection of public health, as required by the Health Act 1956. The collection activity is primarily private.

Capital expenditure - period of benefits There would be capital expenditure if Council provides a building for the recyclables activity which would introduce some inter-generational equity considerations for this activity.

Action/inaction by others The number of properties within the collection area will impact on the cost of this service. However, there are very different demands on the service depending on factors such as the number of people residing in a home, the level of waste generated, the use or non-use of commercial refuse collection alternatives, the use of composting initiatives within the property, the level of recycling, etc.

Costs and benefits of separating this activity Council has decided to separate this activity due to its nature (recycling) being different from refuse collection and landfill disposal management. Council has an appropriate system in place to separately allocate costs to this activity.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 159 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy Overall impact on the current and future wellbeing This activity is primarily geared towards the environmental needs of current communities.

15.39.11. Funding conclusion Council has considered that the most practical means of funding this activity is through targeted rate mechanisms. This will assist in encouraging people to recycle rather than dispose to landfill.

15.39.12. The funding is: Uniform rate across the district mechanisms 100%

15.40. Wastewater (Sewerage)

Overview Council owns and operates four urban reticulated sewage collection and treatment systems. Rates harmonisation schemes have been set in place for urban areas for water, stormwater and sewerage.

Reasons for involvement in the activity Historically, Council has provided these services. Council is involved in the provision of utility services for public health, environmental and safety reasons. The Local Government Act 2002 empowers Councils to be involved in these activities. Much of the on-going major maintenance and capital work is contracted out on a competitive tendering basis.

Method of service delivery The assets and facilities associated with this service are all owned by Council with much of the reticulation network located on Council land, including reserves. Council believes that, because of the monopoly nature of the service and a high risk of failure, it should retain ownership of the sewerage assets. Capital works are all contracted out to external providers. Facilities operation is provided by Watermark, a Council Business Unit. This has proved to be a cost effective option, given the absence of alternative providers in smaller rural communities.

Principal indicators Strong public good indicators. Non-excludability and non-rivalry in the serviced areas are the main feature of this service.

Funding decisions

Community outcomes: . Well managed infrastructure . Sustainable Council operations . Efficient Council operations.

Distribution of benefits Council decided that the direct beneficiaries of a sewage collection and treatment service are the users of that service. This applies whether the user is a club, charitable organisation, commercial or industrial enterprise, or a private residence. In addition, a benefit accrues whether the property is connected to the system or could be connected to the system. While the service provides predominantly private benefits, the community at large benefits from the elimination of public health risks arising from open sewers and inadequate septic tank facilities. Environmentally sound treatment services reduce the adverse impact on receiving waterways. This improves the environment downstream from the treatment plants and benefits property owners in the adjacent rural areas within and beyond the district boundaries.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 160 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.40.7. Capital expenditure - period of benefits This activity has inter-generational equity considerations. Depreciation funding or loans are used for capital renewal work.

15.40.8. Action/inaction by others Users of the sewerage schemes impact on the provision of this service. The size of the network capacity relative to current population minimise the impact that growth in the near future may have on provision of this service.

15.40.9. Costs and benefits of separating this activity The empowerment by the Local Government Act 2002 and the safety requirements necessitate separate disclosure of the activity. Council has an appropriate structure in place to allocate costs to this activity.

15.40.10. Overall impact on the current and future wellbeing This activity is primarily geared towards economic, environmental, social and cultural needs of current and future communities.

15.40.11. Funding conclusion Of all the funding tools available, Council considered that the most efficient, effective and transparent method available was a targeted rate on a uniform basis on each serviced rating unit. Properties connected to the service pay the full charge and those that have the service available but do not use it pay a portion of that charge. Multiple charges (ie pan charges) are levied on non-residential properties. A scale of pan charges has been established to reflect the cost of sewage collection and the cost of sewage treatment. These charges are used as a proxy for a user charge as direct charging is administratively both impractical and inefficient. A targeted rate on a uniform basis acts as a proxy for the private benefit and also for the public good element.

15.40.12. The funding is: A 100% targeted rate on a uniform basis on separately used or inhabited parts of rating units. A scale of charges is applied to non-residential properties. Availability is charged at 50%.

15.41. Water Supply

15.41.1. Overview The Council operates and maintains four urban and two rural water supplies. The sources of water supply are artesian springs and deep bores. The Athol supply obtains bulk water from Carter Holt Harvey Limited, Kinleith. Rates harmonisation schemes have been set in place for urban areas for water, stormwater and sewerage.

15.41.2. Reasons for involvement in the activity Historically, Council has provided these services. Council is involved in the provision of utility services for public health and safety including testing and/or water treatment. The Local Government Act 2002 empowers Councils to be involved in these activities.

15.41.3. Method of service delivery The assets and facilities associated with this service are all owned by Council with much of the reticulation network located on Council land, including reserves. Council believes that, because of the monopoly nature of the service, and the high risk of failure, it should retain ownership of the water supply assets. Capital and major maintenance works are all contracted out to external providers. Facilities management and day-to-day operations work is provided by Council’s Watermark Business Unit. This has proven to be a cost effective option given the absence of alternative providers in smaller rural communities. There is a public expectation that Council will provide this service.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 161 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.41.4. Principal indicators Strong public good indicators. Non-excludability and non-rivalry in the serviced areas are the main feature of this service. Other indicators include market failure, merit goods, option and existence values and exacerbator pays.

15.41.5. Funding decisions

Community outcomes: . Well managed infrastructure . Sustainable Council operations . Efficient Council operations.

15.41.6. Distribution of benefits Council considered that with the major exceptions of community health and safety, firefighting, street cleaning, public toilets, parks, reserves and swimming pools; the benefits accruing from this service were primarily private and that this decision applied to both commercial and domestic customers connected to the supply.

15.41.7. Capital expenditure - period of benefits The greater requirements of newly enhanced national drinking water standards will necessitate the need for significant capital development. There is an intergenerational equity component for this activity. Depreciation funds, targeted water rate reserves, loans and where possible, government funding are appropriate funding sources for capital work.

15.41.8. Action/inaction by others The users of the schemes impact on the provision of these services.

15.41.9. Costs and benefits of separating this activity The public expectation of Council’s provision of this service necessitates the separate disclosure of this activity. Council has appropriate systems in place to allocate costs to this activity.

15.41.10. Overall impact on the current and future wellbeing This activity is primarily geared towards environmental, social and cultural needs of current and future communities.

15.41.11. Funding conclusion Consideration has been given to the introduction of a domestic metered water supply. However, the high cost of installing and maintaining a metered service currently makes the proposal uneconomic.

15.41.12. The funding is: Targeted rate (including water meter charges) 100% Also: . That each serviced and separately used or inhabited portion of a property connected and using water, be charged a targeted rate on a uniform basis. The rate is to reflect the forecast cost of the service and the number of properties serviced . That properties for which the service is available, but not connected, pay a targeted rate equivalent to 50% of the rate for connected properties . Large commercial and high volume users of water are subject to both the uniform targeted rate and a metered water supply. This policy is also to apply to farm properties and lifestyle blocks connected to urban services.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 162 of 200 Draft Long Term Plan 2015-25 Revenue and Financing Policy 15.42. Relevant Delegations Any changes to this Policy require Council approval.

15.43. References and Relevant Legislation Local Government Act 2002. Local Government (Rating) Act 2002.

15.44. Annotations Res No Date Subject/Description

265/03 10/07/03 Policy adopted

235/04 24/06/06 Policy amended/confirmed as part of Long Term Council Community Plan process

291/05 23/06/05 Policy amended/confirmed as part of Annual Plan process

026/06 to 31/06/06 Refuse Collection, Economic Development and Governance activity 028/06

347/06 10/07/06 Policy amended/confirmed as part of Long Term Council Community Plan process

358/07 28/06/07 Policy amended/confirmed as amendment to LTCCP. Change to rate:fee ratio, Business Promotion Activity Funding and The Plaza Activity Funding. Defining Separately Used or Inhabited Parts of a Rating Unit

134/09 28/05/09 Policy amended/confirmed as part of Long Term Council Community Plan process

236/12 28/06/12 Policy amended/confirmed as part of Long Term Plan 2012-22 process

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 163 of 200 Draft Long Term Plan 2015-2025 How Much Does it Cost to Run the District? 4. HOW MUCH DOES IT COST TO RUN THE DISTRICT? Pēwhea nei te rahi o te pūtea manaaki i te rohe

4.1. Where will Council's funding come from in 2015-16?

Source Examples Subsidies and Council collects from government agencies like the New Zealand Transport Grants Agency for roading projects and maintenance. Fees and Council collects from things like pool entry, library charges, dog registrations, Charges building consent fees etc. Investment Council has investments that earn income. Income Other Income Council receives a small amount of other income from a number of sources, like rate penalties. Rates Council collects from you from your rates bill.

Note: the above excludes asset revaluations and vested asset incomes due to their non-cash nature.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 36 of 200 Draft Long Term Plan 2015-25 How Much Does it Cost to Run the District? 4.2. Where will Council spend its money in 2015-16?

Service Examples Business & Regulatory Animal control, building control, environmental health, liquor licensing, parking. Solid Waste & Recycling Landfills, refuse and recycling collections, planned maintenance, new recycling centre in Tokoroa. Wastewater Reticulation and treatment of sewage, improvements to wastewater treatment plants. Stormwater Monitoring and maintenance of existing networks. Water Supply Water treatment and supply, pipe replacement, planned maintenance of existing system, system upgrades, reticulation replacements, commercial water meter upgrade, compliance with Drinking-water Standards for New Zealand. Other Leisure Services Parks and reserves, sportsgrounds and playgrounds. Swimming Pools South Waikato Indoor Pools, seasonal pools at Putāruru and Tīrau, pool programmes like 'Woggles', 'Learn to Swim and 'Swim Academy'. Libraries Three district libraries, library programmes like 'Summer Reading' and 'Odyssey', internet access, toy library, puzzles, DVDs and magazines. Community and Events, community advocacy, grants, economic development and community Economic Development contracts. Community Facilities, Toilets, cemeteries, Talking Poles, Council buildings and urban beautification. Property & Amenities Roads Road resurfacing, road rehabilitation, signage renewal and replacement, lighting, street fixtures, road safety education, culverts and footpath renewal.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 37 of 200 Draft Long Term Plan 2015-2025 How Much Does it Cost to Run the District?

Service Examples Governance & Corporate Council meetings, elections, Tīrau Community Board, long term planning and managing Council business. Emergency Management Civil defence preparedness, fire permits and monitoring and community education. Planning District plan review, resource consents and ecological monitoring.

Note: the above figures include internal expenditure

4.3. What will my rates be spent on in 2015-16? Council has to walk the tightrope between what ratepayers can afford to pay for and what we believe our community would really like to get from Council. Unfortunately, someone has to pay for everything we do. In 2015-16, the rates will increase by an average of 1.3%. The graph below presents what a property in Tokoroa valued at $116,000 will pay per week for Council's services. A property with this value would pay $32.60 per week (inclusive of GST).

4.3.1. Example rates per week for each service of Council based on a residential property in Tokoroa valued at $116,000

Example rates per week $7.00

$6.00

$5.00

$4.00

$3.00 $ per week

$2.00

$1.00

$0.00

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 38 of 200 Draft Long Term Plan 2015-25 How Much Does it Cost to Run the District? 4.4. Rates Examples Below are some rates examples. There is also an on-line rates calculator on our website (www.southwaikato.govt.nz) where you can check the rates for your property. If you do not have access to the internet, please drop into our service centres in Tokoroa or Putāruru to use one of our kiosks. Please note that these examples are inclusive of GST. The tables include indicate a range of movements in rates between 2014-15 and the 2015-16. These range from a decrease in rates of 0.4% to an increase of 0.95% depending the type, location and value of the property.

4.4.1. Why don't rates increase by the same percentage for all properties? Rates are made up of general rates and targeted rates. . General rates: there are effectively two types of general rates which cover the cost of activities that can be used by anyone eg roads and pools. About 70% of general rates are charged to everyone on the basis of the capital value of their property. The remaining portion of general rates is charged in the form of a uniform annual general charge (UAGC) and additional unit rate which is a fixed amount per separate rating unit. . Targeted rates: such as water, waste collection and hall rates are charged only to the ratepayers that can use these services. It would be unfair to charge, for example rural properties, for the cost of urban water services. As you can see each property is charged different rates depending on the property type, location and value. This means that if the cost of one activity goes up or down by more than another activity the level of rates movement will change.

4.4.2. Why have rates movements in the examples below changed by less than the 1.3% increase in rates revenue discussed in Section 4.3? The amount of rates revenue Council proposed to collect has gone up by 1.3%. About 0.4% of this increase has resulted from a reforecasting on the amount of rates Council expects to collect from the Heat Swap scheme. The money received from the Heat Swap scheme is classified as a rate but is not (and should not be) shown in the rates examples below because it is a voluntary scheme that relates to only a small number of ratepayers. So if we exclude Heat Swap from the rates increase calculation then rates revenue has only increased by 0.9%. In addition to this the capital value of all the district's properties has increased by 1% since the last Annual Plan. This means that the amount of money needed from general rates (see above) is now spread across more capital value so nearly all properties will have to pay proportionally slightly less general rates. The ratepayers where property values have increased (generally because of a change in land use eg forestry to dairy land) will pay more.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 39 of 200 Draft Long Term Plan 2015-2025 How Much Does it Cost to Run the District? 4.4.3. Urban Examples (GST inclusive)

Tokoroa Tokoroa Putāruru Putāruru Tīrau Tīrau 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 RATING VALUATIONS 116,000 116,000 160,000 160,000 194,000 194,000 General Rate 319.70 317.84 440.96 438.40 534.66 531.56 Uniform Annual General 606.38 601.43 606.38 601.43 606.38 601.43 Charge Sewerage Disposal Rate 324.48 329.04 324.48 329.04 324.48 329.04 Urban Water Supply Rate 291.58 279.26 291.58 279.26 291.58 279.26 District Wide Recycling 36.37 51.80 36.37 51.80 36.37 51.80 Waste Collection Rate 50.57 47.73 50.57 47.73 50.57 47.73 Urban Stormwater Rate 54.40 62.29 75.04 85.92 90.99 104.18 Tokoroa Promotions Rate 3.41 5.65 Putaruru Promotions Rate 17.58 22.35 Tirau Ward Community 14.90 22.22 Board Rate Total rates 1,686.89 1,695.04 1,842.96 1,855.93 1,949.93 1,967.22 % Increase 0.48% 0.70% 0.89%

4.4.4. Rural examples (GST inclusive)

Tokoroa Tokoroa Putāruru Putāruru Tīrau Tīrau 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 RATING 2,885,000 2,885,000 2,885,000 2,885,000 2,885,00 2,885,000 VALUATIONS 0 General Rate 7,951.06 7,904.90 7,951.06 7,904.90 7,951.06 7,904.90 Uniform Annual 606.38 601.43 606.38 601.43 6.38 601.43 General Charge District Recycling 36.37 51.80 36.37 51.80 36.37 51.80 Rate Puketurua Hall Rate 42.40 46.92 Tapapa Hall Rate 24.17 28.34 Tokoroa Promotions 3.41 5.65 Rate Putaruru Promotions 17.58 22.35 Rate Tirau Ward 14.90 22.22 Community Board Rate Total rates 8,597.22 8,563.78 8,653.79 8,627.40 8,632.88 8,608.69 % Increase -0.39% -0.30% -0.28%

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 40 of 200 Draft Long Term Plan 2015-25 How Much Does it Cost to Run the District? 4.4.5. Lifestyle block examples (GST inclusive)

Tokoroa Tokoroa Putāruru 2014- Putāruru Tīrau Tīrau 2014-15 2015-16 15 2015-16 2014-15 2015-16 RATING 368,000 368,000 368,000 368,000 368,000 368,000 VALUATIONS General Rate 1,014.21 1,008.32 1,014.21 1,008.32 1,014.21 1,008.32 Uniform Annual 606.38 601.43 606.38 601.43 606.38 601.43 General Charge District Recycling 36.37 51.80 36.37 51.80 36.37 51.80 Rate Puketurua Hall 42.40 46.92 Rate Tapapa Hall Rate 24.17 28.34 Tokoroa 3.41 5.65 Promotions Rate Putaruru 17.58 22.35 Promotions Rate Tirau Ward 14.90 22.22 Community Board Rate Total rates 1,660.37 1,667.20 1,716.94 1,730.82 1,696.03 1,712.11 % Increase 0.41% 0.81% 0.95%

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 41 of 200 Draft Long Term Plan 2015-2025 How Much Does it Cost to Run the District?

4.5. Proposed rates table

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

General Rate 0.002756 0.00274 0.00278 0.00285 0.00288 0.00298 0.00304 0.00310 0.00318 0.00327 0.00334 0 8 2 8 3 5 3 2 7 UAGC 606.38 601.43 636.97 650.05 671.76 690.17 701.97 719.54 730.81 757.83 780.80 Additional Unit Rate 606.38 601.43 636.97 650.05 671.76 690.17 701.97 719.54 730.81 757.83 780.80 Putaruru Business 0.000679 0.00076 0.00077 0.00079 0.00081 0.00083 0.00086 0.00089 0.00091 0.00095 0.00098 Promotion Rate 9 2 5 5 7 5 1 9 4 7 Waste Collection Rate 50.57 47.73 49.50 51.10 52.97 54.27 54.84 55.89 55.96 57.97 59.78 District Recycling Rate 36.37 51.80 57.82 61.02 62.21 63.30 64.88 66.83 65.49 68.27 70.36 Non-residential Urban 324.48 329.04 340.88 357.28 382.25 392.16 401.26 414.30 409.84 418.25 436.74 Sewerage Disposal Rate Urban Stormwater Rate 0.000469 0.00053 0.00058 0.00060 0.00067 0.00067 0.00067 0.0007 0.00069 0.00068 0.00072 7 8 8 8 9 9 3 6 Urban Water Supply Rate 291.58 279.26 274.22 277.29 296.18 300.75 303.29 316.00 315.11 321.93 337.61 Piarere Hall Rate 24.28 21.85 21.97 22.56 23.19 23.86 24.59 25.38 26.24 27.16 28.17 Upper Atiamuri Hall Rate 92.40 116.75 123.80 130.99 138.62 152.66 176.00 186.90 188.92 195.93 207.42 Puketurua Hall Rate 42.40 46.92 45.88 48.54 56.40 60.37 83.94 85.61 91.38 95.74 97.72 Waotu Hall Rate 34.72 38.68 39.82 40.13 44.39 44.29 48.91 43.99 53.19 51.09 71.47 Lichfield Hall Rate 24.09 27.11 27.28 28.05 28.88 29.64 30.54 31.55 32.52 33.69 34.93 Arapuni Hall Rate 37.24 38.23 38.26 41.96 42.87 45.13 48.02 49.17 52.44 54.12 53.22 Tapapa Hall Rate 24.17 28.34 31.20 32.04 34.10 35.58 35.02 36.35 36.17 31.28 40.64 Tirau Ward Community 14.90 22.22 22.61 23.06 23.57 Board Rate 24.08 24.64 25.26 25.88 26.56 27.31 Tokoroa Promotions Rate 3.41 5.65 5.68 5.84 5.99 6.15 6.36 6.54 6.75 7.01 7.24 Putaruru Promotions Rate 17.58 22.35 24.67 25.36 26.03 26.76 27.62 28.47 29.39 30.46 31.54 Tokoroa Business 66.40 87.86 86.64 87.26 88.05 88.73 103.14 104.62 105.45 106.51 107.81 Promotion Rate (CCTV)

Note 1: Dollar per $100 of rateable value

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 42 of 200 Draft Long Term Plan 2015-25 Recreation and Facilities 7. RECREATION AND FACILITIES Wāhanga hākinakina me ngā whare

7.1. What we do . Manage over 240ha of parks, reserves, playgrounds and sportsgrounds . Maintain cycleways and walkways . Pensioner housing . Community halls . Libraries . Cemeteries . Public toilets . Public art such as the Talking Poles in Tokoroa and the Mosaic Murals in Putāruru . The Tokoroa Airfield . The South Waikato Sport and Events Centre . The South Waikato Indoor Pools in Tokoroa and outdoor pools in Putāruru and Tirau . The South Waikato Performing Arts Centre (The Plaza) During the development of the Long Term Plan Council looked at the future of the activities within recreation and facilities. The changes are: . The Tīrau Library will close and the Tīrau community will now be serviced by an outreach programme operating out of the other libraries in the district. Currently the Tīrau Library is only open for 19 hours a week and Council believes that the new service will make it easier for members of our Tīrau Community who are unable to visit the library during the current opening hours. . Council looked at the future of the Tokoroa Airfield and what the best option for this facility is. Council agreed to continue to make the facility available to non-aviation users and to reseal the runway in 2016-17 at a cost of $279,000. This cost will be loan-funded and spread over 50 years. . The Talking Poles is now being managed in-house by Council. The Leith Place development provides an opportunity to enhance the Talking Poles and make them a draw card into Leith Place. Council has been in discussion with the Talking Poles Trust and both parties have agreed that Council should manage the Talking Poles. The Talking Poles Trust will provide on-going support and advice to Council. . The Plaza will now be managed in-house by Council. Council will employ a marketing officer who will help Council achieve the outcomes in the Council Strategy. Council believes that The Plaza will be one of many tools available to the marketing officer to promote our district externally. This facility is considered to be a significant cultural facility in the Waikato Region.

7.2. Why we do recreation and facilities Council undertakes the recreation and facilities group of activities to ensure that our residents and visitors to our community have a wide range of options to meet their leisure and recreation needs. These facilities play an important role in fostering community pride in our district as they provide for both formal sporting and recreational groups to come together, or for friends and family to get together in an informal manner. Walkways and reserves play an important role in promoting our district to people who are not locals as they encourage out of resident people to experience the beauty of our district. The recreation and facilities group of activities contributes primarily to the following Council outcomes and strategies.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 61 of 200 Draft Long Term Plan 2015-25 Recreation and Facilities

Outcomes Strategies Improved external image: People outside our district District promotion strategy: are encouraged to live, work and develop businesses Use a full range of marketing tools in conjunction with here. other organisations, to encourage external people to visit and live and develop businesses in our district. Quality services and facilities: Council provides Services and facilities strategy: quality local public services and facilities which are Enhance access to and use of Council's services and cost effective to households and businesses, now and facilities. in the future. Community pride: Council provides services that Community Pride Strategy: make residents proud of our district, celebrating the Through improved communication, community artistic, sporting and cultural achievements of our activities, an enhanced physical environment focus on people and the diversity of our cultures. making our community proud and engaged.

7.3. Our plans The major projects that Council has planned for recreation and facilities over the next ten years are:

Major cost/project Year Cost Type of work Ongoing capital maintenance to our reserves 2015-25 $1.956 Renewal million Ongoing capital maintenance at the South Waikato Indoor 2015-25 $1.946 Renewal Pools million Purchase of new resources for our libraries 2015-25 $1.757 Renewal million Interior redecorations to our pensioner units 2015-25 $659,000 Renewal (no impact on rates) Upgrades to the Logan Street Skatepark (either at the current 2017-22 $346,000 Renewal Logan Street site, or at Tokoroa Memorial Sportsgrounds. Please see the submission form at the end of this document to have your say on your preferred location)

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Major cost/project Year Cost Type of work Improvements to Glenshea Park such as installing artificial 2015-21 $344,000 Renewal turf on the tennis/netball courts Capital maintenance at Tokoroa Memorial Sportsgrounds 2015-18 $320,000 Renewal (such as new goal posts) Resealing of the runway at the Tokoroa Airfield 2016-17 $279,000 Renewal Ongoing capital maintenance at the Putāruru Pools 2015-25 $212,000 Renewal Ongoing capital maintenance at the South Waikato Sport and 2018-24 $134,000 Renewal Events Centre Expansion of the Tokoroa Cemetery 2022-23 $126,000 Renewal Installation of new Talking Poles 2015-25 $126,000 Level of Service Kitchen replacements in our pensioner units 2015-25 $98,000 Renewal (no impact on rates) Remarking of the runway at the Tokoroa Airfield 2016-18 & $91,000 Renewal 2022-23 Ongoing capital maintenance at Strathmore Park 2017-22 $81,000 Renewal Ongoing capital maintenance at the Plaza Theatre 2015-24 $72,000 Renewal Replacements to driveways and parking areas at our 2015-25 $71,000 Renewal pensioner units. (no impact on rates)

7.4. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans.

7.4.1. Playgrounds and parks and reserves

Level of service Council owns and/or manages approximately 240 hectares of parks, sportsgrounds, esplanades and gardens. This service includes enhancing the appearance of urban streets with trees, flower beds and other landscaping. Council maintains the parks and reserves at a level that is acceptable to its users.

How will we measure our performance . Target: 100% of enquiries and service requests relating to playgrounds are responded to within three working days of notice. . Target: 100% of enquiries and service requests relating to parks and reserves are responded to within three working days of notice.

7.4.2. Public toilets

Level of service Council provides conventional public toilet facilities that are clean and well maintained throughout the district, in town centres, along the major travelling routes and in recreational locations.

How we will measure our performance . Target: 100% of enquiries and service requests relating to public toilets are responded to within three working days of notice.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 63 of 200 Draft Long Term Plan 2015-25 Recreation and Facilities 7.4.3. Cemeteries

Level of service To ensure that burial facilities located in Putāruru, Tīrau and Tokoroa are appropriate and readily accessible to all.

How we will measure our performance . Target: 100% of all enquiries, requests or complaints are responded to within three working days of notice.

7.4.4. Pensioner housing

Level of service Council's pensioner flats located in Putaruru, Tirau and Tokoroa are maintained at an average to good standard, with rentals set to recover the cost of operation.

How we will measure our performance . Target: the occupancy of Council's pensioner housing units is at least 95% on an annual basis.

7.4.5. Libraries

Level of service That Council provides libraries which are civic spaces that provide users with access to lifelong learning, social interaction and the ability to access educational and cultural organisations and material.

How we measure our performance . Target: that 10 or more groups make contact with the district libraries each month. Making contact with the library involves either the group visiting the library, or library staff visiting the group. . Target: that the library websites and Overdrive receive at least 8,110 visits annually. . Target: an average of at least 6.5 visits per resident per year to the South Waikato District Libraries will be achieved.

7.4.6. Pools

Level of service Council owns and operates the district's indoor heated pool complex (South Waikato Indoor Pools) in Tokoroa and, during the summer months, outdoor pools in Putāruru and Tīrau. These facilities provide a range of aquatic recreational opportunities that cater for the needs of a wide range of people - from young children and their parents, youth, swimming clubs and school groups to retired people and individuals wanting exercise.

How we measure our performance . Target: at least 90% of pool water tests comply with the relevant New Zealand standards of water quality. . Target: an average of at least four visits per resident per year to the South Waikato pool facilities will be achieved.

7.4.7. South Waikato Sport and Events Centre

Level of service Council owns and operates the Sport and Events Centre in Tokoroa. This facility provides indoor recreational opportunities for our residents and also caters for those holding meetings or functions.

South Waikato District Council - Draft Long Term Plan 2015-25 12 March 2015 Page 64 of 200 Draft Long Term Plan 2015-25 Recreation and Facilities How we measure our performance . Target: that the use of the arena at the South Waikato Sport and Events Centre will be at least 25%. Hours of operation will be 8.30am to 4.30pm, Monday to Friday. . Target: that the use of the function rooms at the South Waikato Sport and Events Centre will be at least 45%. Hours of operation will be 8.30am to 4.30pm, Monday to Friday.

7.5. How is recreation and facilities funded?

Rates • 71%

Reserves • 15%

User Charges • 14%

Note: the figures above may not add up to 100% as not all funding sources are listed here. Please refer to the 'Financials' section of this chapter.

7.6. Significant negative effects There is the potential for the community to experience negative effects which are generated by recreation and facilities activities.

Negative Impacts What does Council do to help minimise the negative impacts? Vandalism, litter and petty Graffiti and vandalism are removed and repaired as quickly as possible. crime may result in the The layout and design of the facilities are considered (especially aspects facilities looking untidy and such as rubbish bins and lighting) to ensure that the potential for crime and cause people to feel unsafe. littering are reduced. Council has adopted the Public Places Bylaw 2011 so that people carrying out anti-social behaviour in a public place can be removed and dealt with appropriately. Staff and the public may Regular inspections of buildings and playground equipment are conducted to experience accidents when make sure that they are safe. using the facilities. Respond quickly when members of the public advise that there is a safety concern at our facilities. Buildings are regularly inspected to ensure compliance with the Building Code.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 65 of 200 Draft Long Term Plan 2015-25 Recreation and Facilities

7.7. Financials

Funding Impact Statement - Facilities, property & amenities Annual Plan

For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 1,158 1,261 1,274 1,303 1,308 1,340 1,353 1,366 1,396 1,434 1,442 Targeted Rates 26 28 29 31 32 34 40 39 41 41 45 Other Revenue: Subsidies & grants for operating purposes ------Fees, charges & targeted rates for w ater supply 690 797 646 666 687 711 732 762 787 815 845 Internal charges & overheads recovered 138 ------Local authorities fuel tax, fines, infringement fees, and other receipts ------

TOTAL OPERATING FUNDING (A) 2,012 2,086 1,949 2,000 2,027 2,085 2,125 2,167 2,224 2,290 2,332

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 799 1,294 1,112 1,147 1,174 1,213 1,249 1,295 1,335 1,362 1,408 Finance Costs 148 278 288 292 289 286 282 277 275 273 266 Internal charges & overheads applied 670 385 394 406 414 426 442 455 468 485 495 Other operating funding applications 87 11 11 11 12 12 12 13 13 14 14

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 1,704 1,968 1,805 1,856 1,889 1,937 1,985 2,040 2,091 2,134 2,183

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 308 118 144 144 138 148 140 127 133 156 149

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure - 30 30 31 32 33 34 35 36 37 39 Development & financial contributions - 17 17 17 18 18 19 19 20 21 21 Increase (decrease) in debt 598 (6) - (16) (15) (16) (19) (19) 106 (21) (21) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) 598 41 47 32 35 35 34 35 162 37 39

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand 43 ------to improve the level of services 623 35 17 19 24 16 19 26 143 17 19 - to replace existing assets 113 149 423 119 131 125 148 133 129 131 120 Increase (decrease) in reserves (171) (190) (440) (154) (170) (157) (186) (178) (166) (169) (160) Increase (decrease) in investments 298 165 191 192 188 199 193 181 189 214 209

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 906 159 191 176 173 183 174 162 295 193 188

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (308) (118) (144) (144) (138) (148) (140) (127) (133) (156) (149) FUNDING BALANCE ((A-B)+(C-D)) ------

South Waikato District Council - Draft Long Term Plan 2015-25 12 March 2015 Page 66 of 200 Draft Long Term Plan 2015-25 Recreation and Facilities

Funding Impact Statement - Leisure services Annual Plan For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 4,230 4,234 4,329 4,413 4,540 4,704 4,849 5,007 5,172 5,321 5,463 Targeted Rates ------Other Revenue: Subsidies & grants for operating purposes 1 2 - 2 - 2 - 2 - 2 - Fees, charges & targeted rates for w ater supply 347 315 317 326 336 349 359 374 387 401 417 Internal charges & overheads recovered (47) 10 10 10 11 11 11 12 12 12 13 Local authorities fuel tax, fines, infringement fees, and other receipts ------

TOTAL OPERATING FUNDING (A) 4,531 4,561 4,656 4,751 4,887 5,066 5,219 5,395 5,571 5,736 5,893

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 2,525 2,592 2,616 2,680 2,752 2,832 2,913 2,993 3,082 3,182 3,292 Finance Costs 156 165 167 168 167 164 160 157 154 150 145 Internal charges & overheads applied 1,045 1,199 1,202 1,219 1,242 1,286 1,337 1,384 1,424 1,472 1,495 Other operating funding applications 139 37 37 38 39 40 41 42 44 45 47

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 3,865 3,993 4,022 4,105 4,200 4,322 4,451 4,576 4,704 4,849 4,979

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 666 568 634 646 687 744 768 819 867 887 914

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure - 2 2 2 2 2 2 2 2 2 3 Development & financial contributions 2 2 2 2 2 2 2 2 2 2 3 Increase (decrease) in debt 101 (9) 3 (5) (3) (6) (11) (12) (12) (13) (14) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) 103 (5) 7 (1) 1 (2) (7) (8) (8) (9) (8)

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand ------to improve the level of services 399 ------to replace existing assets 230 977 558 698 910 850 894 568 535 516 491 Increase (decrease) in reserves (528) (986) (555) (703) (913) (856) (905) (580) (547) (529) (505) Increase (decrease) in investments 668 572 638 650 691 748 772 823 871 891 920

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 769 563 641 645 688 742 761 811 859 878 906

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (666) (568) (634) (646) (687) (744) (768) (819) (867) (887) (914) FUNDING BALANCE ((A-B)+(C-D)) ------

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 67 of 200 Draft Long Term Plan 2015-25 Recreation and Facilities

Key Capital Projects Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Total $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's FACILITIES, PROPERTY & AMENITIES Toilets Leith Place Renewal 400 ------David Foote Park Level of Service 158 ------

Talking Poles Level of Service - 23 11 10 11 11 11 12 12 12 13 126

Cemeteries Domain Road Cemetery, Berm installation Level of Service 3 - 3 - 3 - 3 - - - 3 12 Domain Road Cemetery, new road developmentLevel of Service 43 ------Tirau Cemetery, Berm installation Level of Service - 3 - - 3 - - 3 - - 3 12 Tokoroa Cemetery access reseal part 2 Level of Service 6 ------Tokoroa Cemetery, Berm installation Level of Service 4 4 - 4 5 - 5 5 5 5 - 33 Tokoroa Cemetery, expansion of cemetery Level of Service ------126 - - 126 Other miscellaneous capex Renewal - - - - - 11 - - 3 - - 14

Halls & other Community facilities SW Sport and Events Centre Renewal - - - - 11 16 48 12 12 12 24 135 Halls - Puketurua Renewal 11 - - - 9 4 - 4 - - - 17 Halls - Tirau Renewal 15 13 7 10 ------30 Halls - Waotu Renewal 6 13 - - 5 ------18 Halls - Tapapa Renewal - 3 5 - 6 11 - - - - - 25 Halls - Arapuni Renewal - 6 - 5 - - - 15 - - - 26 Halls - Upper Atiamuri Renewal 10 8 - - 5 1 - - - - - 14 Halls - Lichfield Renewal - 2 ------2 Plaza Theatre Renewal - 2 19 11 4 - - - 7 28 - 71 WDFF Rooms Renewal 4 3 18 1 2 2 - - - - - 26

Pensioner Housing Security Doors Level of Service 40 ------Interior Redecoration incl floor coverings Renewal 58 58 62 61 62 65 66 68 70 74 74 660 Kitchen Replacements Renewal 8 8 9 8 9 10 10 10 11 11 12 98 Mobility Scooter Ramps/Parking/Charging Level of Service - 5 - 5 - 5 - 6 - - - 21 Re-roofing & Roof Repainting - District-wide Renewal 11 24 ------24 Underfloor and wall insulation Level of Service 2 - 3 - 3 ------6 Exterior Re-painting - District-wide Renewal 4 - 5 9 10 - 10 18 - - - 52 Driveway replacement and parking Renewal 7 7 8 9 7 - 14 - 14 - 11 70 Replacement boundary fences Renewal - 3 - 6 - 5 - 6 - 6 - 26

Tokoroa Airport Runway Resealing Renewal - - 279 ------279 Remarking of Runway Renewal - - 11 - - - - - 12 - - 23

Total 790 185 440 139 155 141 167 159 272 148 140 1,946

South Waikato District Council - Draft Long Term Plan 2015-25 12 March 2015 Page 68 of 200 Draft Long Term Plan 2015-25 Recreation and Facilities

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 69 of 200 Draft Long Term Plan 2015-25 The Accounting Policies

20. THE ACCOUNTING POLICIES Ngā Tikanga Kaute Pūtea

20.1. Reporting entity The South Waikato District Council (Council) is a territorial authority governed by the Local Government Act 2002 and is domiciled in New Zealand. The primary objective of Council is to provide services and social benefits to the community rather than making a financial return. Accordingly, Council has designated itself as a public benefit entity for the purposes of the New Zealand equivalents to International Financial Reporting Standards (NZ IFRS).

20.2. Basis of preparation

Statement of compliance The financial statements of the Council have been prepared in accordance with the requirements of the Local Government Act 2002, which include the requirement to comply with New Zealand Generally Accepted Accounting Practice (NZ GAAP). The financial statements have been prepared in accordance with NZ GAAP and they comply with NZ IFRS as appropriate for public benefit entities.

Measurement base The financial statements have been prepared on a historical cost basis, modified by the revaluations of land and buildings, certain infrastructural assets, and certain financial instruments (including derivative instruments).

Functional and presentation currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the Council is New Zealand dollars. The accounting policies set out below have been applied consistently for all periods presented in these financial statements.

Group financial statements The following entity is a subsidiary of the Council: the South Waikato Economic Development Trust (SWEDT). The Mayor, the Deputy Mayor and one other person are the only trustees. Council has no financial investment in SWEDT but funds some of SWEDT’s activities, and exercises control in its financial and operating activities. Council is required under the Local Government Act 2002 to prepare consolidated financial statements in relation to the group for each financial year. Consolidated financial statements of the group have not been prepared using the purchase method due to the small size of the subsidiary, which means that the parent and group amounts are not materially different. Information relating to the subsidiary of the Council is separately disclosed in Note 32.

Changes in accounting policies There have been no changes in accounting policies during the financial year.

Standards, amendments and interpretations issued that are not yet effective and have not been early adopted The Minister of Commerce has approved a new Accounting Standards Framework (incorporating a Tier Strategy) developed by the External Reporting Board (XRB). Under this Accounting Standards Framework, the Council is classified as a Tier 1 reporting entity and it will be required to apply full Public Benefit Entity Accounting Standards. The effective date for the new standards for public sector entities is for reporting periods beginning on or after 1 July 2014. Therefore, the Council will transition to the new standards in

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 177 of 200 Draft Long Term Plan 2015-25 The Accounting Policies preparing its 30 June 2015 financial statements. The Council has not assessed the implications of the new Accounting Standards Framework at this time. Due to the change in the Accounting Standards Framework for public benefit entities, it is expected that all new NZ IFRS and amendments to existing NZ IFRS will not be applicable to public benefit entities. Therefore, the XRB has effectively frozen the financial reporting requirements for public benefit entities up until the new Accounting Standard Framework is effective. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude public benefit entities from their scope.

20.3. Significant accounting policies

Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to Council and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods or services in the normal course of business, net of discounts and sales related taxes. The following specific recognition criteria must also be met before revenue is recognised. Rates are set annually by a resolution from Council and relate to a financial year. All ratepayers are invoiced within the financial year to which the rates have been set. Rates revenue is recognised when payable. Rates charged to Council properties are excluded from rates income in the profit or loss. Revenue from water rates by meter is recognised on an accrual basis. Unbilled usage, as a result of unread meters at year end, is accrued on an average usage basis.

Government grants Government grants are recognised when: . claimed, for work completed on previously approved programmes . eligibility has been established by the grantor. Council receives government grants from the New Zealand Transport Agency, which subsidises part of the costs of maintaining the local roading infrastructure. These subsidies are recognised upon entitlement, as conditions pertaining to eligible expenditure have been fulfilled.

Provision of services Revenue from the provision of services (fees and charges) are recognised as income when the obligation to pay, by reference to the stage of completion of the transaction at balance date, arises.

Interest and dividends Interest income is recognised as it accrues using the effective interest rate method. The effective interest rate is the rate that discounts estimated future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial instrument. Dividends are recognised as revenue when the right to receive payment have been established.

Vested assets Where a physical asset is acquired for nil or nominal consideration, the fair value of the asset received is recognised as income. Assets vested in the Council are recognised as income when control over the asset is obtained.

Financial contributions borrowing costs Financial contributions are recognised as revenue when the Council provides, or is able to provide, the services for which the contribution was charged. Otherwise, the financial contributions are recognised as liabilities until such time as the Council provides, or is able to provide, the service. The Council and group has elected to defer the adoption of NZIAS 23 Borrowing Costs (revised 2008) in accordance with its transitional provisions that are applicable to public entities. Consequently, all borrowing costs are recognised as an expense in the period in which they are incurred.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 178 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Grant expenditure Non-discretionary grants are those grants that are awarded if the grant application meets the specified criteria and are recognised as expenditure when an application that meets the specified criteria for the grant has been received. Discretionary grants are those grants where the Council has no obligation to award on receipt of the grant application and are recognised as expenditure when approved by the Council and the approval has been communicated to the applicant.

Cost allocation policy Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities based on cost drivers and related activity/usage information. Direct costs are those costs directly attributable to a specific activity. Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific significant activity.

Cost drivers for allocation of indirect costs The cost of internal services not directly charged to activities are allocated as support costs using appropriate cost drivers such as actual usage, staff numbers and floor area.

Non-current assets held for sale Non-current assets are classified as held for sale if the carrying amount will be recovered through a sale rather than continuing use. This condition is met only when the sale is highly probable and the asset is available for sale in its present condition. Council must be committed to the sale, and a completed sale is expected within one year from the date of classification. Non-current assets classified as held for sale are measured at the lower of the asset’s carrying amount and fair value less costs to sell. Any impairment losses for write-downs of non-current assets held for sale are recognised in profit or loss. Any increase in fair value, less costs to sell, are recognised in profit or loss up to the level of any impairment losses that have been previously recognised. Non–current assets held for sale are not depreciated or amortised while they are classified as held for sale.

Property, plant and equipment These are classified as:

Operational assets These are tangible assets and include land, buildings and improvements, motor vehicles, the South Waikato Indoor Pools and associated equipment, and the library collection.

Infrastructural assets These are fixed utility systems that provide a continuing service to the community and are not generally regarded as tradeable. They include: . all property, plant and equipment associated with water supply, sewerage, stormwater and waste disposal, including the land that they are located upon . all roads, service lanes, footpaths, street lights, carparks and associated street furniture . all public toilets and restrooms, public halls and the land they are situated on.

Restricted assets These assets cannot be disposed of because of legal or other restrictions and provide a benefit or service to the community. They include: . all property (excluding South Waikato Indoor Pools) associated with recreation, scenic, historic purposes, esplanade and local purpose reserves, including the reserve land . all cemeteries . all land contained within road reserves.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 179 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Measurement at recognition: all items of property, plant and equipment that qualify for recognition as assets are initially measured at cost. An item of property, plant and equipment is recognised as an asset only if it is probable that any future economic benefits or service potential associated with them will flow to Council and the cost of the item can be measured reliably. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition. Measurement after recognition: property, plant and equipment are shown at cost or revalued amount, less accumulated depreciation and impairment losses. Those asset classes that are revalued are generally valued on a three year rotational basis to ensure revalued assets are carried at a value that is not materially different from fair value. All revaluations are either performed by independent and qualified valuers or in-house and peer-reviewed by independent and qualified valuers. All other asset classes are carried at depreciated historical cost.

Operational assets

Heritage assets Valuation is at fair value as determined from market-based evidence. The most recent valuation performed by Webb Galleries was as at 30 June 2009.

Library collection Valuation is at cost less accumulated depreciation and any accumulated impairment losses.

Land and buildings Valuation is at fair value as determined from market-based evidence. The most recent valuation exercise for buildings was performed by Telfer Young, Registered Valuers and Property Consultants, Rotorua, effective as at 30 June 2012.

Motor vehicles, plant and equipment, furniture and fittings Valuation is at cost less accumulated depreciation and any accumulated impairment losses.

Infrastructural assets Land and buildings including land underneath roads were revalued effective 30 June 2012 by Telfer Young, Registered Valuers and Property Consultants, Rotorua, at current market value. The valuation methodology used for land underneath roads is the assessment of the value based upon an indicated value of the land adjoining the roads. Rural and urban roads have been separated and the average land value for adjoining land for each separate division applies. In some cases, a discount has been applied to the land value. Landfill cell development, pipes and pumps are valued at cost less accumulated depreciation and any impairment costs. Street furniture is valued at cost less accumulated depreciation and any impairment costs. Roads, footpaths, streetlights, large culverts and bridges were revalued effective 30 June 2014 by professionally qualified in-house staff, and peer reviewed by Opus International Consultants Limited, Auckland, at optimised depreciated replacement value. Each asset component was valued taking into account its remaining useful life. Sewage, stormwater disposal and water supply property, plant and equipment were revalued on 30 June 2013 by professionally qualified in-house staff, and peer reviewed by Opus International Consultants Limited, Auckland, at optimised depreciated replacement value. The underground reticulation pipework was also revalued on 30 June 2013 by professionally qualified in- house staff, and peer reviewed by Opus International Consultants Limited, Auckland, at optimised depreciated replacement value. Paper roads with a total length of 151.378km are recorded at land value. Costs incurred in obtaining any resource consents are capitalised as part of the asset to which they relate. If a resource consent application is declined then all capitalised costs are written off.

Restricted assets Restricted land and buildings are carried at fair value less accumulated depreciation. The most recent market- based valuation was performed by Telfer Young, Registered Valuers and Property Consultants, Rotorua, effective as at 30 June 2012.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 180 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Parks and reserves assets were revalued effective 30 June 2012 at depreciated replacement value. The revaluation was undertaken using a combination of in-house staff and an external consultant, Willy Coenradi, principal consultant of Wilcon Sylvan Parks and Landscape Management Ltd, Helensville. Both in-house staff and the external consultant have an extensive knowledge base and background in parks and reserves asset management. The external consultant reviewed the useful lives and replacement cost unit values on Council's fixed assets register. The replacement cost unit values were updated to current market values by using, either: . available current contract-supplier unit rates for equivalent asset types (giving the highest level of confidence) or . standard asset unit values for similar related assets (giving a medium level of confidence) or . the 2008 asset values/purchase cost adjusted for industry-specific inflation indices as provided by Business and Economic Research Ltd (BERL) (giving the lowest level of confidence). As part of the revaluation process, where assets that continue to be in commission are found to have a remaining life of nil (on Council's fixed assets register), an adjusted remaining useful life of 2.5% of the original base life has been made.

Accounting for revaluations Council accounts for revaluations on property, plant and equipment on a class of asset basis. The results of revaluing are recognised in other comprehensive income and accumulated as a separate component of equity in the asset revaluation reserve for that class of asset. Where this results in a debit balance in the asset revaluation reserve, this balance is expensed through profit or loss. Any subsequent increase on revaluation that off-sets a previous decrease in value recognised in profit or loss will be recognised first in profit or loss up to the amount previously expensed and then credited to other comprehensive income.

Depreciation Property, plant and equipment are depreciated on a straight-line basis at rates that reflect their estimated useful lives. Depreciation is charged to write off the cost or valuation of assets, other than land and properties under construction and road formation cost, over their estimated useful lives. The depreciation rates are applied at a component level and are dependent on the remaining useful life of each component. The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.

Operational and restricted assets Heritage assets Not depreciated Land Not depreciated Buildings 40 - 100 years Plant and equipment 5 - 30 years Swimming pools 40 - 100 years Motor vehicles 5 years Computer equipment and furniture 3 - 10 years Library equipment 5 - 10 years

Infrastructural assets

Roading Network Top surface - rural 1 - 18 years Top surface – urban 1 – 22 years Pavement – rural 40 - 70 years Pavement - urban 40 - 99 years

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 181 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Culverts 25 - 80 years Footpaths 10 - 80 years Kerbs 80 years Signs 6- 9 years Streetlights and poles 25 - 70 years Bridges 78 - 118 years Land (including land under roads) Not depreciated

Waste Landfills, pipes and pumps 7 - 100 years

Sewerage Systems Reticulated pipework 70 - 90 years Manholes 80 years Treatment plant 5 - 80 years

Stormwater Systems Reticulated pipework 50 - 90 years Manholes and cesspits 90 years Detention dams 60 years

Water Supply Reticulated pipework 55 - 95 years Valves and hydrants 80 years Pump stations Up to 100 years (dependent on componentry) Storage tanks 25 - 80 years Infrastructural buildings 40 - 100 years Street furniture 3 - 10 years

Impairment All assets, current and non-current, are tested annually for indicators of impairment or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Value in use is the depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the assets ability to generate net cash inflows and where an entity would, if deprived of the asset, replace its remaining future economic benefits or service potential. If an asset’s carrying amount exceeds its recoverable amount the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets the impairment loss is recognised in other comprehensive income. Where that results in a debit balance in other comprehensive income, the balance is recognised in profit or loss. For assets not carried at a revalued amount, the total impairment loss is recognised in profit or loss.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 182 of 200 Draft Long Term Plan 2015-25 The Accounting Policies The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent that an impairment loss for the class of asset was previously recognised in profit or loss, a reversal of the impairment loss is also recognised in profit or loss. For assets not carried at a revalued amount the reversal of an impairment loss is recognised in profit or loss.

Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in profit or loss. When revalued assets are sold, the amounts included in the asset revaluation reserves in respect of those assets are transferred to general equity.

Subsequent cost Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to Council and the cost can be measured reliably.

Assets under construction Capital works under construction are valued at cost. The total cost of the project is transferred to the relevant asset class on its completion and then depreciated.

Vested assets Certain infrastructure assets have been vested in Council and are recognised in profit or loss at fair value. These assets have been valued based on the actual quantities of infrastructure components vested and the current ‘in the ground’ cost of providing identical services. Vested assets include roads, the Talking Poles, pavement art, the Tokoroa town clock, the airport tower, Tokoroa Skateboard Park, and various culverts and water pipes. On initial recognition the fair value of vested assets is recognised in profit or loss. Subsequent to this vested assets are revalued together with other property, plant and equipment, and surpluses or deficits arising on revaluation are treated in the same way as other property, plant and equipment.

Rental property Rental property is included in property, plant and equipment in accordance with NZ IFRS, as the rental property is held to provide a social service rather than for rental income, capital appreciation or both.

Intangible assets

Computer software Acquired computer software is capitalised on the basis of the cost incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as expense when incurred.

Easements No value is attached to easements due to the difficulty in establishing their original cost or fair value.

Amortisation of intangible assets The carrying amount of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in profit or loss. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows: Computer software 3 - 7 years

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 183 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Financial instruments

Financial assets Investments are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned. Investments are initially measured at fair value plus transaction costs except for those financial assets classified as fair value through profit or loss which are initially measured at fair value. Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’, ‘held-to-maturity’ investments, ‘available-for-sale’ financial assets and ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Financial assets at fair value Financial assets in this category are either financial assets held for trading or financial assets designated as at fair value through profit or loss. A financial asset is classified as held for trading if: . it has been acquired principally for the purpose of selling in the near future or . it is a part of an identified portfolio of financial instruments that the Council manages together and has a recent actual pattern of short-term profit-taking or . it is a derivative that is not designated and effective as a hedging instrument. Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss includes any dividend or interest earned on the financial asset. Fair value is determined in the manner described in Note 13. These consist of forward foreign exchange contracts that are assets. Council uses these derivative financial instruments to hedge exposure to foreign exchange fluctuations. However, as permitted by NZ IAS 39, Council does not employ hedge accounting techniques in its accounting for derivative financial instruments. After initial measurement these assets are measured at fair value. Any gain or loss arising from a change in the fair value is recognised in profit or loss. Council does not currently hold any of these investments.

Financial assets at fair value through profit or loss These consist of forward foreign exchange contracts that are assets. Council uses these derivative financial instruments to hedge exposure to foreign exchange fluctuations. However, as permitted by NZ IAS 39, Council does not employ hedge accounting techniques in its accounting for derivative financial instruments. After initial measurement these assets are measured at fair value. Any gain or loss arising from a change in the fair value is recognised in profit or loss.

Held to maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that Council's management has the positive intention and ability to hold to maturity. These investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective interest basis. Currently Council does not hold any assets in this category.

Loans and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method less any impairment. Loans and receivables are classified as trade and other receivables in the balance sheet and include rates receivable, accrued income and New Zealand Transport Agency subsidies receivable.

Available for sale financial assets Available-for-sale financial assets are those non-derivative financial assets that are designated as available- for-sale or are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through profit or loss. Certain shares held by Council are classified as being available-for-sale and are stated at fair value. Fair value is determined in the manner described in Note 13. Gains and losses arising from changes in fair value are recognised directly in the investment revaluation reserve, until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in the Investment revaluation reserve is included in profit or loss for the period.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 184 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Dividends on available-for-sale equity instruments are recognised separately in profit or loss in the statement of comprehensive income when Council's right to receive payment is established. These include bonds and shares, the investment in Local Authority Shared Services Limited and Local Government Civic Assurance. If these assets are traded in an active market they are measured at their fair value using quoted market prices at the balance sheet date. The quoted market price used is the current bid price. If the financial assets are not traded in an active market, their fair value is determined using valuation techniques. Council uses a variety of valuation methods and makes assumptions based on market conditions existing at each balance date. Of the remaining financial assets, if quoted market prices of similar financial assets in the market are not available, other techniques such as discounted expected cash flows are utilized to determine their fair value, or otherwise cost is used.

Impairment of financial assets At each balance sheet date Council assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. Any impairment losses are recognised in the profit or loss. Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at the end of each reporting period. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For unlisted shares classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered to be objective evidence of impairment. For all other financial assets, including redeemable notes classified as available for sale and financial lease receivables, objective evidence of impairment could include: . Significant financial difficulty of the issuer or counterparty or . Default or delinquency in interest or principal payments. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. With the exception of available for sale equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

Financial liabilities Financial liabilities including debt instruments issued by Council are classified according to the substance of the contractual arrangements entered into. The accounting policies adopted for specific financial liabilities are as follows: Bank borrowings: Interest bearing bank loans are initially measured at fair value net of transaction costs, and are subsequently measured at amortised cost, using the effective interest rate method.

Debt instruments Council issues bonds from time to time to raise funds. These are initially measured at fair value net of transaction costs, and are subsequently measured at amortised cost, using the effective interest rate method.

Trade payables Trade payables are initially measured at fair value, and are subsequently measured at amortised cost.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 185 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Derivative financial instruments These are mainly forward foreign exchange contracts. These are initially measured at fair value on the contract date, and are re-measured to fair value at subsequent reporting dates. Any gain or loss is recognised in profit or loss immediately. Council activities expose it primarily to the financial risks of changes in foreign exchange rates and interest rates. Council uses derivative financial instruments (primarily foreign currency forward contracts) to mitigate its risks associated with foreign currency fluctuations which relate to certain firm commitments and forecasted transactions. The significant interest rate risk arises from bank loans. The use of financial derivatives is governed by Council’s policies as approved by Council resolution, and which provide written principles on the use of financial derivatives consistent with Council’s risk management strategy. Council does not use derivative financial instruments for speculative purposes.

Investments in Council controlled organisations Council has an interest (2.7%) in a Council Controlled Organisation (CCO), Local Authority Shared Services Limited. Council has no significant influence on operational or financial policies. As this investment is not traded on an active market and quoted market prices of similar financial assets are not available, the fair value cannot be measured reliably. The investment is therefore measured at cost.

Inventories Inventories held for distribution or consumption in the provision of services are measured at the lower of cost or current replacement cost. The cost to these inventories is assigned by using the weighted average cost formula. The write down from cost to current replacement cost is recognised in profit or loss.

Foreign currencies All foreign currency transactions during the financial year are brought to account using the exchange rate in effect at the date of the transaction. At each balance sheet date, monetary items denominated in foreign currencies are re-translated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are re-translated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the date of transaction. Exchange differences arising on the settlement of monetary items, and on the re-translation of monetary items, are included in profit or loss for the period. Exchange differences arising on the re-translation of non- monetary items carried at fair value are included in profit or loss for the period except for differences arising on the re-translation of non-monetary items in respect of which gains and losses are recognised directly in other comprehensive income. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in other comprehensive income.

Cash and cash equivalents Cash and cash equivalents comprise cash in hand, demand deposits, and other short-term highly liquid investments with original maturities of three month or less from the date of acquisition.

Goods and services tax (GST) All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to the Inland Revenue (IRD) is included as part of receivables or payables in the Balance Sheet. The net amount of GST paid or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flow. Commitments and contingencies are disclosed exclusive of GST.

Employee benefits

Short-term employee entitlements Employee benefits expected to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 186 of 200 Draft Long Term Plan 2015-25 The Accounting Policies These include salaries and wages accrued up to balance date, annual leave earned, but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave. A liability for sick leave is recognised to the extent that compensated absences in the coming year are expected to be greater than the sick leave entitlement earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that it will be used by staff to cover those future absences.

Long-term entitlements Entitlements that are payable beyond 12 months, such as long service leave and retiring leave have been calculated on actuarial basis using the service of professional actuaries. The actuarial calculations are based on an assumed salary increase of 3.5% ( 2013: 3.5%) per annum and a discount rates between 3.7% and 5.50% (2013: 2.71% - 6%) per annum. The discount rate is derived from the forward rates on NZ Government Bonds over recent periods. It’s also assumed that all employees will retire at the age of 65 and will resign in accordance with the withdrawal rate assumption taken from the Treasury Circular 1998/15. Any actuarial gain or loss resulting from re-measurement of these liabilities is recognised in profit or loss. Employees appointed to the staff prior to 31 December 1989 who retire from Council with not less than ten years continuous service are eligible for retirement leave. Employees appointed to the staff prior to 1 April 1992 are eligible for long service leave.

Presentation of employee entitlements Sick leave, annual leave, vested long service leave and non-vested long service leave, and retirement gratuities expected to be settled within 12 months of balance date, are classified as a current liability. All other employee entitlements are classified as a non-current liability.

Superannuation schemes Defined contribution scheme Obligations for contributions to defined contribution superannuation schemes are recognised as an expense in profit or loss.

Public equity Public equity is the community’s interest in the Council, as measured by the value of total assets less total liabilities. Public equity is disaggregated and classified into a number of reserves to enable clearer identification of the specific uses Council makes of its accumulated surpluses. The components of equity are: . general equity (retained earnings) . restricted reserves . Council-created reserves . property revaluation reserves . investment revaluation reserves. Reserves are a component of equity generally representing a particular use to which various parts of equity have been assigned.

General equity (retained earnings) General equity refers to reserves that do not fall into any of the four categories below.

Restricted reserves Restricted reserves are those reserves subject to specific conditions accepted as binding by the Council and which may not be revised by Council without reference to the Courts or a third party. Transfers from these reserves may be made only for certain specific purposes or if certain specified conditions are met. The reserves represent balances held from the collection of targeted rates and charges on activities that are funded from targeted rating or those same activities funding depreciation.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 187 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Council created reserves Council-created reserves are a part of the accumulated balance and are established at the will of Council. Council may alter them without reference to any third party or the Courts. Transfers to and from these reserves are at the discretion of Council.

Property revaluation reserves Revaluation reserves arise from certain asset classes being revalued.

Investment revaluation reserve The investment revaluation reserve contains cumulative unrealised gains and losses in investments classified as ‘available for sale’ in accordance with NZ IAS 39.

Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Finance leases

Council as lessee At the commencement of the lease term, Council recognises finance leases as assets and liabilities in the balance sheet at the lower of the fair value of the leased item or the present value of the minimum lease payments. The amount recognised as an asset is depreciated over its useful life. If there is no certainty as to whether Council will retain ownership at the end of the lease term, the asset is depreciated over the shorter of the lease term and its useful life. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income.

Council as lessor Amounts due from lessees under finance leases are recorded as receivables and are initially recognised at amounts equal to the present value of the minimum lease payments receivable plus the present value of any unguaranteed residual value expected to accrue at the end of the lease term. Finance lease income is allocated between interest revenue and reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

Operating leases

Council as lessee Operating lease payments are recognised as an expense on a straight line basis over the lease term.

Council as lessor Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.

Provisions Council recognises a provision for future expenditure of uncertain amount when there is a present obligation (legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation, using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 188 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Landfill post-closure provision Council, as operator of the Tokoroa and Putāruru landfills, has a legal obligation under its resource consent, to provide on-going maintenance and monitoring services at the landfill site after closure. A provision for closure and post-closure costs is recognised as a liability when the obligation for closure and post-closure expenses arises. A calculation of these future costs has been discounted and is measured based on the present value of future cash flows expected to be incurred, taking into account future events, including new legal requirements and known improvements in technology. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to Council. Amounts provided for landfill closure and post-closure are capitalised in the landfill asset where they give rise to future economic benefit to be obtained. Components of the capitalised landfill asset are depreciated over their useful lives.

Financial guarantee contracts A financial guarantee contract is a contract that requires Council to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due. Financial guarantee contracts are disclosed as contingent liabilities. The amount of these contingent liabilities is equal to the loan balances guaranteed.

Critical judgements and estimations The preparation of financial statements in conformance with NZ IFRS requires judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenditures. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revisions affect both current and future periods. Management has made the following judgments and estimations that have the most significant effect on the amounts recognised in the financial statements:

Property, plant and equipment As the Council is a Public Benefit Entity, property plant and equipment are valued at depreciated replacement cost that is based on an estimate of either fair value or current gross replacement costs of improvement less allowances for physical deterioration and optimisation for obsolescence and relevant surplus capacity. There are certain assets such as wastewater or stormwater related assets which may be affected by changes in the measurement of qualitative standards which could affect the results of future periods. The depreciation method used reflects the service potential of assets and is reviewed each year to ensure that there is no under maintenance of assets which could affect the results of future periods.

Classification of investments Council has designated all its bond investments as ‘available for sale’, rather than ‘held to maturity’, although they all have specific maturity dates. This was due to significant disposals within this class of financial asset before maturity in previous financial years. Therefore, unrealised gains and losses on these investments are recognised as a movement in other comprehensive income. The carrying amount of the available for sale financial assets is disclosed in the notes to the financial report.

Long service leave provisions Key assumptions concerning the future have been made in the actuarial calculation of long service leave and retiring leave. These are disclosed in the notes to the financial report.

Landfill closure and post-closure provision Assumptions about the future have been made in the calculation of the landfill closure and post closure cost provisions. These are disclosed in the notes to the financial report.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 189 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Changes to comparatives in financial statements Changes have been made to the Annual Plan 2014-15 comparative figures within some of the financial statements, so as to more accurately, and on a more consistent basis, compare the Annual Plan 2014-15 budget with the Long Term Plan 2016-25 estimates. The changes have affected the corporate & governance funding impact statement, whole of Council funding impact statement, and the prospective statement of comprehensive income. In all cases the changes are presentational only and have not affected budgeted rates income nor the budgeted net deficit in the Annual Plan 2014-15 year.

20.4. The Financial Statements

The information presented in the financial statements are presented on the next page onwards.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 190 of 200 Draft Long Term Plan 2015-25 The Accounting Policies

Prospective Statement of Comprehensive Income Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For the year ending 30 June 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's GENERAL REVENUE General rates 10,538 10,583 10,768 11,015 11,154 11,509 11,752 11,992 12,293 12,636 12,928 Uniform General Charge and additional dwelling rate 5,597 5,551 5,879 5,999 6,200 6,370 6,479 6,641 6,745 6,994 7,206 Rates penalties 350 300 302 310 318 328 338 349 360 373 387 Special reserves and working capital income 457 789 874 1,039 1,083 1,219 1,417 1,635 1,894 2,180 2,500 Subsidies and grants 158 150 151 155 159 164 169 174 180 186 193 Other operating revenue 4,436 4,780 4,942 5,026 5,208 5,495 5,645 5,917 6,203 6,318 6,388 Less elimination of interest on internal loans (106) (162) (170) (184) (184) (184) (184) (184) (184) (184) (184) Less elimination of rates on Council property (609) (537) (540) (555) (570) (587) (605) (624) (645) (668) (693) Less elimination of other internal revenue (3,545) (4,269) (4,293) (4,408) (4,530) (4,662) (4,805) (4,959) (5,126) (5,307) (5,504) TOTAL GENERAL REVENUE 17,276 17,185 17,913 18,397 18,838 19,652 20,206 20,941 21,720 22,528 23,221

REVENUE FROM SIGNIFICANT AND OTHER ACTIVITIES Rates and charges 6,334 6,619 6,832 7,081 7,553 7,706 7,840 8,107 8,058 8,120 8,478 Fees and charges 3,287 3,207 3,051 3,160 3,266 3,352 3,466 3,595 3,699 3,842 3,992 Subsidies and grants 2,593 3,225 3,099 3,251 3,742 3,497 3,715 3,901 4,061 4,256 4,491 Development and financial contributions 13 19 19 19 20 20 21 21 22 23 24 TOTAL REVENUE FROM SIGNIFICANT AND OTHER ACTIVITIES 12,227 13,070 13,001 13,511 14,581 14,575 15,042 15,624 15,840 16,241 16,985

TOTAL REVENUE 29,503 30,255 30,914 31,908 33,419 34,227 35,248 36,565 37,560 38,769 40,206

EXPENDITURE Interest expense 850 981 1,004 994 964 932 885 840 797 760 731 Depreciation 7,287 7,488 7,613 8,018 8,285 8,497 8,791 8,985 9,128 9,510 9,608 Operating expenditure on significant and other activities 25,730 26,633 25,770 26,230 26,891 27,835 28,537 29,432 30,430 31,364 32,255 Less elimination of interest on internal loans (106) (162) (170) (184) (184) (184) (184) (184) (184) (184) (184) Less elimination of rates on Council property (609) (537) (540) (555) (570) (587) (605) (624) (645) (668) (693) Less elimination of other internal expenditure (3,545) (4,269) (4,293) (4,408) (4,530) (4,662) (4,805) (4,959) (5,126) (5,307) (5,504) TOTAL EXPENDITURE 29,607 30,134 29,384 30,095 30,856 31,831 32,619 33,490 34,400 35,475 36,213

NET SURPLUS/ (DEFICIT) (104) 121 1,530 1,813 2,563 2,396 2,629 3,075 3,160 3,294 3,993

OTHER COMPREHENSIVE INCOME Increase in Asset Revaluation Reserves 9,032 4,692 14,134 2,938 5,013 15,098 2,992 5,227 15,837 3,029 5,243 TOTAL OTHER COMPREHENSIVE INCOME 9,032 4,692 14,134 2,938 5,013 15,098 2,992 5,227 15,837 3,029 5,243

TOTAL COMPREHENSIVE INCOME 8,928 4,813 15,664 4,751 7,576 17,494 5,621 8,302 18,997 6,323 9,236

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 191 of 200 Draft Long Term Plan 2015-25 The Accounting Policies

Prospective Statement of Changes in Equity Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For the year ending 30 June 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's

Equity at beginning of year 349,475 391,835 396,648 412,312 417,063 424,639 442,133 447,754 456,056 475,053 481,376 Net surplus/(deficit) for the year 8,928 4,813 15,664 4,751 7,576 17,494 5,621 8,302 18,997 6,323 9,236

Total recognised revenues and expenses for the period 8,928 4,813 15,664 4,751 7,576 17,494 5,621 8,302 18,997 6,323 9,236

Movements in equity for the year 8,928 4,813 15,664 4,751 7,576 17,494 5,621 8,302 18,997 6,323 9,236

Equity at beginning of Year 349,475 391,835 396,648 412,312 417,063 424,639 442,133 447,754 456,056 475,053 481,376 Total equity at end of year 358,403 396,648 412,312 417,063 424,639 442,133 447,754 456,056 475,053 481,376 490,612

Components of equity

Accumulated balances at beginning of year 147,963 152,057 153,441 153,175 154,791 155,906 155,286 154,631 154,145 152,927 151,848 Net Surplus (deficits) for the year (158) 121 1,530 1,813 2,563 2,396 2,629 3,075 3,160 3,294 3,993 Net other movements (676) 1,263 (1,796) (197) (1,448) (3,016) (3,284) (3,561) (4,378) (4,373) (5,435) Accumulated balances at end of year 147,129 153,441 153,175 154,791 155,906 155,286 154,631 154,145 152,927 151,848 150,406

Council created reserves at beginning of year 1,020 2,850 646 582 623 666 707 750 796 845 845 Movements for year (448) (2,204) (64) 41 43 41 43 46 49 0 (2) Council created reserves at end of year 572 646 582 623 666 707 750 796 845 845 843

Restricted reserves at beginning of year 8,714 11,875 12,816 14,676 14,832 16,237 19,212 22,453 25,968 30,297 34,670 Movements for year 1,179 941 1,860 156 1,405 2,975 3,241 3,515 4,329 4,373 5,437 Restricted reserves at end of year 9,893 12,816 14,676 14,832 16,237 19,212 22,453 25,968 30,297 34,670 40,107

Revaluation reserves at beginning of year 191,777 225,053 229,745 243,879 246,817 251,830 266,928 269,920 275,147 290,984 294,013 Revaluation surplus/(deficit) 9,032 4,692 14,134 2,938 5,013 15,098 2,992 5,227 15,837 3,029 5,243 Revaluation reserves at end of year 200,809 229,745 243,879 246,817 251,830 266,928 269,920 275,147 290,984 294,013 299,256

Total equity at end of year 358,403 396,648 412,312 417,063 424,639 442,133 447,754 456,056 475,053 481,376 490,612

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 192 of 200 Draft Long Term Plan 2015-25 The Accounting Policies

Prospective Statement of Cashflows Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For year ending 30 June 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's OPERATING ACTIVITIES

Rates 22,819 22,753 23,479 24,096 24,907 25,584 26,070 26,740 27,096 27,750 28,612 Subsidies and grants 2,751 3,375 3,250 3,406 3,901 3,661 3,884 4,075 4,241 4,442 4,685 Investment income received 34 32 35 42 43 49 57 65 76 87 100 Fees, charges and other revenue 3,301 3,137 3,110 3,161 3,316 3,544 3,651 3,883 4,089 4,149 4,151 Total cash provided from operating 28,905 29,297 29,874 30,705 32,167 32,838 33,662 34,763 35,502 36,428 37,548

Interest paid 850 981 1,004 994 964 932 885 840 797 760 731 Cash disbursed to suppliers and employees 21,602 18,394 20,208 21,107 22,868 25,219 26,600 26,977 28,750 29,651 30,925 Total cash applied 22,452 19,375 21,212 22,101 23,832 26,151 27,485 27,817 29,547 30,411 31,656 NET CASH FROM OPERATING ACTIVITIES 6,453 9,922 8,662 8,604 8,335 6,687 6,177 6,946 5,955 6,017 5,892

INVESTING ACTIVITIES

Proceeds from investments 702 757 839 997 1,040 1,170 1,360 1,570 1,818 2,092 2,400 Total cash provided from investing 702 757 839 997 1,040 1,170 1,360 1,570 1,818 2,092 2,400

Investments purchased/appropriations 827 1,000 1,018 85 91 100 (191) 121 35 (48) 173 Property, plant & equipment acquired 6,442 7,906 6,596 8,469 8,324 6,572 6,866 7,180 6,783 7,275 6,984 Total cash applied 7,269 8,906 7,614 8,554 8,415 6,672 6,675 7,301 6,818 7,227 7,157 NET CASH USED IN INVESTING ACTIVITIES (6,567) (8,149) (6,775) (7,557) (7,375) (5,502) (5,315) (5,731) (5,000) (5,135) (4,757)

FINANCING ACTIVITIES

Loans raised 1,033 241 149 108 274 137 90 70 186 62 64

Loans repaid 903 1,014 1,019 1,070 1,144 1,222 1,143 1,163 1,106 991 1,026

NET CASH FROM FINANCING ACTIVITIES 130 (773) (870) (962) (870) (1,085) (1,053) (1,093) (920) (929) (962)

NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS 16 1,000 1,017 85 90 100 (191) 122 35 (47) 173

Cash and cash equivalents at 1 July 1,259 323 1,323 2,340 2,425 2,515 2,615 2,424 2,546 2,581 2,534 CASH AND CASH EQUIVALENTS at end of year 1,275 1,323 2,340 2,425 2,515 2,615 2,424 2,546 2,581 2,534 2,707

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Prospective Statement of Financial Position Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP As at 30 June 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's ASSETS Current Assets Cash and bank 1,275 1,323 2,340 2,425 2,515 2,615 2,424 2,546 2,581 2,534 2,707 Current portion of investments 2,791 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Rates receivable 1,366 1,785 1,795 1,844 1,896 1,955 2,020 2,093 2,175 2,267 2,372 Metered water 40 41 41 42 44 45 46 48 50 52 54 Other debts receivable 709 641 646 664 683 704 728 753 783 817 854 Prepayments and accrued income 732 388 390 400 412 424 439 455 472 492 515 Inventories 177 204 205 210 216 223 230 239 248 259 271

Total Current Assets 7,090 6,382 7,417 7,585 7,766 7,966 7,887 8,134 8,309 8,421 8,773

Non Current Assets Property, plant, equipment - restricted 34,588 48,055 48,290 51,589 52,129 52,574 56,051 56,194 56,319 59,452 59,524 Property, plant, equipment - infrastructural 292,764 326,240 339,129 339,788 344,797 358,379 356,547 360,456 374,678 373,390 376,903 Property, plant, equipment - operational 35,670 23,920 23,769 23,373 23,041 22,364 21,961 21,515 20,867 20,042 19,295 Work in progress 902 2,060 2,060 2,060 2,060 2,060 2,060 2,060 2,060 2,060 2,060 Total property, plant & equipment 363,924 400,274 413,247 416,810 422,026 435,376 436,619 440,225 453,924 454,944 457,782 Non-current investments 6,895 7,356 8,152 8,348 9,796 12,813 16,396 19,957 24,435 29,008 34,444 Intangible assets - 2 2 2 2 2 2 2 2 2 2 Total Non Current Assets 370,819 407,632 421,401 425,160 431,824 448,191 453,017 460,184 478,361 483,954 492,228

TOTAL ASSETS 377,909 414,014 428,818 432,745 439,590 456,157 460,904 468,318 486,670 492,375 501,001

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 194 of 200 Draft Long Term Plan 2015-25 The Accounting Policies

Prospective Statement of Financial Position Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP As at 30 June (Continued) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's LIABILITIES Current Liabilities: Sundry creditors 1,833 2,126 2,137 2,195 2,258 2,328 2,405 2,493 2,590 2,700 2,824 Employee entitlements - current 1,376 1,152 1,159 1,190 1,224 1,262 1,304 1,351 1,404 1,464 1,531 Current portion of term liabilities 918 1,014 1,019 1,071 1,144 1,222 1,143 1,162 1,106 992 1,027 Provision for landfill closure 28 28 28 29 30 31 32 33 34 36 37 Trust accounts 155 146 147 151 155 160 165 171 178 185 194 Income in advance and accrued expenses 1,529 1,676 1,686 1,731 1,780 1,835 1,897 1,965 2,042 2,129 2,228 Total Current Liabilities 5,839 6,142 6,176 6,367 6,591 6,838 6,946 7,175 7,354 7,506 7,841

Non Current Liabilities Provision for landfill closure 822 718 696 685 661 638 616 594 617 643 673 Term liabilities 12,682 10,124 9,250 8,236 7,293 6,130 5,156 4,045 3,181 2,365 1,368 Employee benefit obligations 163 382 384 394 406 418 432 448 465 485 507 Total Non Current Liabilities 13,667 11,224 10,330 9,315 8,360 7,186 6,204 5,087 4,263 3,493 2,548

TOTAL LIABILITIES 19,506 17,366 16,506 15,682 14,951 14,024 13,150 12,262 11,617 10,999 10,389

NET ASSETS 358,403 396,648 412,312 417,063 424,639 442,133 447,754 456,056 475,053 481,376 490,612

PUBLIC EQUITY Accumulated balances 147,129 153,441 153,175 154,791 155,906 155,286 154,631 154,145 152,927 151,848 150,406 Council created reserves 572 646 582 623 666 707 750 796 845 845 843 Restricted reserves 9,893 12,816 14,676 14,832 16,237 19,212 22,453 25,968 30,297 34,670 40,107 Asset revaluation reserve 200,275 229,455 243,589 246,527 251,540 266,638 269,630 274,857 290,694 293,723 298,966 Investment revaluation reserve 534 290 290 290 290 290 290 290 290 290 290 TOTAL PUBLIC EQUITY 358,403 396,648 412,312 417,063 424,639 442,133 447,754 456,056 475,053 481,376 490,612

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Funding Impact Statement - whole of Council Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 16,820 16,435 16,949 17,323 17,672 18,204 18,563 18,977 19,393 19,995 20,517 Targeted Rates Stormw ater 483 555 608 629 703 704 704 727 721 714 750 Sew erage 2,784 2,835 2,937 3,078 3,293 3,378 3,457 3,569 3,532 3,605 3,762 Water Supply (excl w ater billing 2,192 2,098 2,060 2,084 2,225 2,260 2,279 2,375 2,368 2,420 2,537 Refuse Collection 353 333 345 356 369 378 382 389 390 404 416 Public and Community Halls 26 28 29 31 32 34 40 39 41 41 45 Tirau Community Board 12 17 18 18 18 19 19 20 20 21 21 Business Promotion Tokoroa Ward 26 29 29 30 31 32 33 34 35 36 37 Business Promotion Putaruru Ward 69 51 56 58 59 61 63 65 67 69 72 Tokokroa CBD 9 9 9 9 9 9 11 11 11 11 11 Putāruru CBD 29 34 34 35 36 37 38 39 40 42 43 Recycling 336 481 537 567 578 588 603 621 608 634 654 Heat Sw ap 55 148 170 188 200 208 216 223 230 131 134

Less Elimination of Internal Council Rates (609) (537) (540) (555) (570) (587) (605) (624) (645) (668) (693) Other Revenue Subsidies & grants for operating purposes 1,172 1,233 1,263 1,306 1,380 1,432 1,512 1,585 1,674 1,702 1,798 Fees, charges & targeted rates for w ater supply 3,176 3,351 3,311 3,388 3,500 3,637 3,713 3,852 4,012 4,027 3,983 Interest & dividends from investments 458 789 874 1,039 1,083 1,219 1,417 1,635 1,894 2,180 2,500

Local authorities fuel tax, fines, infringement fees, and other receipts 301 259 302 267 275 329 291 301 311 322 334

TOTAL OPERATING FUNDING (A) 27,692 28,148 28,991 29,851 30,893 31,942 32,736 33,838 34,702 35,686 36,921

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 23,180 25,656 25,820 26,497 27,120 27,993 28,747 29,592 30,595 31,539 32,425 Finance Costs 944 983 1,005 995 966 933 888 842 799 761 732

Other operating funding applications (Net of Rates on Council Property) 1,317 2,300 1,238 1,168 1,203 1,235 1,272 1,316 1,358 1,405 1,460

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 25,441 28,939 28,063 28,660 29,289 30,161 30,907 31,750 32,752 33,705 34,617

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 2,251 (791) 928 1,191 1,604 1,781 1,829 2,088 1,950 1,981 2,304

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure 1,535 1,993 1,836 1,945 2,362 2,064 2,203 2,316 2,386 2,552 2,693 Development & financial contributions 35 19 19 19 20 20 21 21 22 23 24 Increase (decrease) in debt 1,059 97 4 (44) (98) (30) (80) (81) 133 6 7 Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) 2,629 2,109 1,859 1,920 2,284 2,054 2,144 2,256 2,541 2,581 2,724

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand 443 ------to improve the level of services 1,230 609 766 2,790 1,104 905 694 751 868 763 825 - to replace existing assets 4,794 7,298 5,830 5,677 7,220 5,668 6,173 6,429 5,915 6,512 6,158 Increase (decrease) in reserves (3,909) (7,679) (6,486) (8,397) (8,290) (6,477) (6,824) (7,157) (6,648) (7,267) (6,975) Increase (decrease) in investments 2,322 1,090 2,677 3,041 3,854 3,739 3,930 4,321 4,356 4,554 5,020

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 4,880 1,318 2,787 3,111 3,888 3,835 3,973 4,344 4,491 4,562 5,028

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (2,251) 791 (928) (1,191) (1,604) (1,781) (1,829) (2,088) (1,950) (1,981) (2,304) FUNDING BALANCE ((A-B)+(C-D)) ------

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 196 of 200 Draft Long Term Plan 2015-25 The Accounting Policies

FORECAST RESERVE MOVEMENTS DURING 2015-2025 Balance at Forecast Forecast Balance30 June at 1 July 2015 deposits w ithdraw als 2025 $000's $000's $000's $000's Council Created Reserves Note National waste levy A 42 368 (563) (153) SWDC asset purchase B 60 54 - 114 South Waikato Economic Development Fund C 2,290 67 (2,357) - Pensioner Housing E (19) - - (19) State Highway 1 F 17 15 - 32 Riverside access G 376 332 - 708 Deferred Projects account H 18 16 - 34 Financial contributions - stormwater H 3 3 - 6 Financial contributions - wastewater H 5 4 - 9 Financial contributions - water H 5 4 - 9 Financial contributions - roading H 40 35 - 75 Financial contributions - reserves H 13 15 - 28

Total Council Created Reserves 2,850 913 (2,920) 843

Restricted Reserves Upper Atiamuri Hall I (5) 3 (13) (15) Puketurua Hall I 10 - (10) - Waotu Hall I 11 9 (17) 3 Lichfield Hall I - 1 - 1 Arapuni Hall I 25 14 (32) 7 Tirau Hall I (8) - - (8) Tapapa-Okoroire Hall I 42 22 (29) 35 Piarere Hall I 1 1 - 2 Refuse collection I (101) 136 - 35 District sewerage I (181) 245 (40) 24 District stormwater I (158) 177 (5) 14 District water supply I 229 42 (233) 38 Tirau Community Board I 4 3 - 7 Tokoroa promotions I 3 3 - 6 Pride in Putaruru I 18 16 - 34 District recycling I (145) 155 (31) (21)

Total Restricted Reserves (255) 827 (410) 162

Depreciation Reserves Arapuni Hall J 2 3 - 5 Waste disposal J 679 993 (758) 914 Sewerage J 3,721 15,138 (7,403) 11,456 Stormwater J 3,870 8,561 (466) 11,965 Water J 1,917 11,860 (6,680) 7,097 Pensioner housing J 184 1,084 (950) 318 Bridges J - 2,349 - 2,349 General rating activities K 1,756 17,263 (13,178) 5,841

Total Depreciation Reserves 12,129 57,251 (29,435) 39,945

ECM DocSetID: 320993 South Waikato District Council - Draft Long Term Plan 2015-25 ECM DocVersion: Page 197 of 200 Draft Long Term Plan 2015-25 The Accounting Policies Purpose of reserve

A. National waste levy: Manage the funds received from government relating to the national waste levy levied. B. SWDC asset purchase: Hold the proceeds from the sale of assets until they are applied to purchase other assets. C. South Waikato Economic Development Fund: Council expressed in its Long Term Plan 2006-2016 that Council would take a leadership decision to establish a South Waikato Development Fund of $4.5 million. The fund would support developments that the community considered are needed across the district. It was specifically established to develop facilities and amenities of strategic value to the district that would otherwise require financing through rate funding; enhance local employment opportunities and economic growth; and attract and retain residents by making the district a more desirable place to live. D. South Waikato Investment Fund: In 1998, following the sale of its interest in Power New Zealand, the Council received $20,433,523 (in 1999 dollars). This amount was invested to create the South Waikato Investment Fund to provide an on-going stream to assist funding community services and other specific projects. E. Pensioner housing: Manage the surpluses and deficits from the pensioner housing activity, when more or less rental is collected than is required to fund the annual expenditure of the pensioner houses. F. State Highway 1: A fund established to upgrade the road entries into Tokoroa off State Highway 1. G. Riverside access: Manage sale of proceeds from certain stopped roads. This is to be used for opening up areas to public access in the South Waikato district. H. Financial contributions: To manage financial contributions levied from the development of subdivisions until this funding is used for the development of related activities. I. Restricted (targeted rate) reserves: Targeted rate reserves are used to manage the surpluses and deficits of specific targeted activities such as water, storm water, sewerage and halls, that arise when more or less rates revenue is collected to fund the annual expenditure of that activity. This ensures that rates collected from a certain group of targeted rate payers can only be used for the benefit of that group. J. Depreciation restricted reserves: These accumulate funds from rates and are used for the future capital funding for the replacement of assets. Each major activity group e.g. water, roading, waste water, storm water, solid waste, has their own depreciation reserve so that the funds from each can be applied to the appropriate activity’s capital expenditure. K. Depreciation reserves – general rating activities: This reserve accumulates funded depreciation and is used to fund replacement capital expenditure for general rated activities.

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8. ECONOMIC AND COMMUNITY DEVELOPMENT Te hapori whakatupu me te pakihi

8.1. What we do . Facilitate economic development . Provide community grants . Support youth initiatives . Promote our central business districts . Organise community events to help foster community pride . Promote the district to those who live and work outside the South Waikato . Undertake joint ventures with government agencies . Support skills training and business development . Advocate for (and with) South Waikato communities . Support community groups and help with capacity building

8.2. Why we do economic and community development Community development is important because it helps build community cohesion by encouraging community pride and supporting our community groups. As identified in the Council Strategy, encouraging economic development is seen to be a very important role for Council so that we can create new jobs for our residents and help to slow the rate of population decline. Recent changes to the Local Government Act 2002 have meant that Council is now required to focus on delivering infrastructure such as roading and stormwater, unless the community gives Council the mandate to become involved in other areas. One of the important questions that we are asking you is whether you think Council should continue to carry out economic and community development activities. For more information please see Chapter 2. One of the key components of the Council Strategy is district promotion (promoting the qualities of our district so that people are encourage to live, work and develop businesses in the South Waikato.) Traditionally Council has done little in the field of district promotion. Council plans on employing a marketing officer who will focus on marketing the qualities of our district Economic and community development contribute primarily to the following Council outcomes and strategies:

Council Outcome Council Strategy

Grow our economy: Existing businesses thrive and Economic development strategies: new businesses start up in the district. Stimulate economic development by assisting existing and attracting new businesses while encouraging diversity. Encourage education and training to improve the employment opportunities of district's residents.

Improved external image: People outside our district District promotion strategy: are encouraged to live, work and develop businesses here. Use a full range of marketing tools in conjunction with other organisations, to encourage external people to visit and live and develop businesses in our district.

Community pride: Council provides services that Community Pride Strategies: make residents proud of our district, celebrating the artistic, sporting and cultural achievements of our Maintain and support our community’s art and culture, people and the diversity of our cultures. and support cultural displays and events. Through improved communication, community activities, an enhanced physical environment focus on making our community proud and engaged.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 70 of 200 Draft Long Term Plan 2015-25 Economic and Community Development

Council Outcome Council Strategy

Cultural leadership: We support and encourage Cultural leadership strategies: cultural leadership and capacity building. Build and maintain a strong working relationship with Māori at all levels of Council to encourage true partnership. Build and maintain a strong working relationship with all cultures present in our district.

8.3. Our plans The upcoming projects that Council has planned for the next ten years are:

Major cost/project Year Cost Type of work eg renewal Warm Homes Clean Air 2015-25 $150,000 per Renewal year Replacement of the Putāruru CCTV cameras 2015-16 $60,000 Renewal Replacement of the Tokoroa CCTV cameras 2020-21 $57,000 Renewal Replacement of the Putāruru CCTV cameras 2021-22 $70,000 Renewal

8.4. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 71 of 200 Draft Long Term Plan 2015-25 Economic and Community Development 8.4.1. Community Development

Level of service Council is involved in community development to facilitate social cohesiveness through mechanisms such as maintaining an up to date website of community organisations, holding community events and supporting the Tokoroa Trade Training Centre.

How we measure our performance . Target: that the details of at least 80% of groups registered on the Community Connect website are updated annually. . Target: that Council holds 12 or more events per annum, with no less than two key stakeholders supporting or partnering with Council to hold each event. . Target: that no less than a total of 30 students are enrolled annually in the Tokoroa Trade Training Centre engineering, automotive and welding programmes.

8.5. How is economic and community development funded?

Rates • 85%

Reservess • 15%

User Charges • 14%

Note: the figures above may not add up to 100% as not all funding sources are listed here. Please refer to the 'Financials' section of this chapter.

8.6. Significant negative effects The economic and community development activities can cause negative effects.

Negative Impacts What does Council do to help minimise the negative impacts? Economic development may The District Plan requires that activities that are going to adversely affect the have unintended adverse environment obtain a resource consent. When Council grants a resource effects on the environment consent it is able to impose conditions to ensure that any adverse effects are reduced to acceptable levels.

8.7. Financials The financial information is located on the next page.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 72 of 200 Draft Long Term Plan 2015-25 Economic and Community Development

Funding Impact Statement - Economic and community development Annual Plan For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 2,062 1,997 1,952 2,003 2,052 2,107 2,146 2,183 2,224 2,250 2,315 Targeted Rates 150 271 298 320 335 346 360 372 383 289 298 Other Revenue: Subsidies & grants for operating purposes ------Fees, charges & targeted rates for w ater supply 13 10 10 10 10 10 11 11 11 12 12 Internal charges & overheads recovered (115) 206 208 212 217 223 228 234 241 248 254 Local authorities fuel tax, fines, infringement fees, and other receipts ------

TOTAL OPERATING FUNDING (A) 2,110 2,484 2,468 2,545 2,614 2,686 2,745 2,800 2,859 2,799 2,879

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 2,214 777 725 722 686 704 723 743 765 789 814 Finance Costs 74 311 337 355 367 375 356 340 325 177 176 Internal charges & overheads applied 90 445 443 456 467 479 499 512 526 549 561 Other operating funding applications 2 1,155 1,051 1,079 1,109 1,141 1,176 1,214 1,255 1,299 1,347

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 2,380 2,688 2,556 2,612 2,629 2,699 2,754 2,809 2,871 2,814 2,898

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) (270) (204) (88) (67) (15) (13) (9) (9) (12) (15) (19)

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure ------Development & financial contributions ------Increase (decrease) in debt 290 227 117 100 50 62 86 66 56 58 60 Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) 290 227 117 100 50 62 86 66 56 58 60

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand ------to improve the level of services 10 ------to replace existing assets 25 75 16 15 16 27 84 99 29 31 31 Increase (decrease) in reserves (35) 152 101 85 34 35 2 (33) 27 27 29 Increase (decrease) in investments 20 (204) (88) (67) (15) (13) (9) (9) (12) (15) (19)

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 20 23 29 33 35 49 77 57 44 43 41

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) 270 204 88 67 15 13 9 9 12 15 19 FUNDING BALANCE ((A-B)+(C-D)) ------

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Key Capital Projects Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Total $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's ECONOMIC & COMMUNITY DEVELOPMENT District Branding - signs Renewal 35 15 16 15 16 16 16 17 17 18 18 164 LED Lighting Renewal - - - - - 11 11 12 12 13 13 72 Talking Pole installation Level of Service 10 ------Security Cameras Renewal 50 60 - - - - 57 70 - - - 187 Total 95 75 16 15 16 27 84 99 29 31 31 423

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 74 of 200 Draft Long Term Plan 2015-25 Solid Waste and Recycling

12. SOLID WASTE AND RECYCLING Hangarua me ngā mārō para

12.1. What we do . Operate a landfill near Tokoroa . Operate a transfer station near Putāruru . Provide recycling 'drop off' centres in Tīrau, Putāruru, Tokoroa, Waotu and Okoroire . Collect household rubbish and recycling from the kerb in our urban areas . Provides rubbish bins in our town centres and in public places . Pick up litter that has been dropped in our town centres . Issue infringement notices to those who dump rubbish in inappropriate places.

12.2. Why we do solid waste and recycling Council provides the kerbside rubbish and recycling collections to our urban areas so that our residents are able to dispose of their waste safely. The landfill and transfer station provide facilities where residents and business operators are able to dispose of larger pieces of waste such as demolition materials and green waste. Both nationally and regionally Council has been given clear direction that waste minimisation is a priority which is why recycling facilities are provided. Solid waste and recycling contribute primarily to the following Council outcomes and strategies.

12.3. Our plans The upcoming projects that Council has planned for the next ten years are:

Major cost/project Year/s Cost Type of work eg renewal Capping of the current cell at the landfill when it reaches the 2020-22 $383,000 Renewal end of its life Capital maintenance at the Tokoroa Landfill1 2015-25 $241,000 Renewal Construction of a transfer station at the Croad Place 2018-19 $212,000 Renewal Recycling Centre

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 89 of 200 Draft Long Term Plan 2015-25 Solid Waste and Recycling

Major cost/project Year/s Cost Type of work eg renewal New weighbridge at the Croad Place Recycling Centre 2018-19 $106,000 Renewal New tipping head at the Tokoroa Landfill 2018-19 $81,000 Renewal

12.4. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans.

12.4.1. Landfills

Level of service Council has only one operational landfill site, located just outside Tokoroa which services the district. The closed landfills in Putaruru and Tirau are subject to aftercare. A transfer station with greenwaste mulching is located in Putaruru serving the northern part of the district. There is also a recycling facility in Tokoroa which was constructed in order to encourage the volume of recycling in the district to increase. All sites are managed in accordance with Council's Solid Waste Site Management Plans.

How we will measure our performance . Target: the amount of waste that is recycled must not be less than 10% of the residual waste* sent to landfill. *Residual waste' is the gross tonnages over the weighbridge less cover material, sewage sludge, greenwaste and metal/timber fractions. . Target: there will be no 'Formal Enforcement Actions' from the consenting authority in regard to Council's compliance with resource consent conditions.

12.4.2. Household refuse and recycling collection

Level of service Council provides a weekly kerbside refuse and fortnightly kerbside recyclable collection service for defined areas (mostly urban) in Arapuni, Putaruru, Tirau and Tokoroa.

How we will measure our performance . Target: 100% of enquiries and service requests relating to refuse collection are responded to within three working days of notice. . Target: 100% of enquiries and service requests relating to recycling collection are responded to within three working days of notice.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 90 of 200 Draft Long Term Plan 2015-25 Solid Waste and Recycling 12.5. How is solid waste and recycling funded?

Rates • 56%

User Charges • 45%

Reserves • 0%

Note: the figures above may not add up to 100% as not all funding sources are listed here. Please refer to the 'Financials' section of this chapter.

12.6. Significant negative effects There is the potential for the solid waste and recycling group of activities to cause negative effects.

Negative Impacts What does Council do to help minimise the negative impacts? Inappropriate disposal of Landfill users are encouraged to separate chemicals, batteries and used oil waste results in adverse from waste so it can be treated appropriately. effects on the environment. The landfill is lined to collect leachate which is then pumped into the Tokoroa wastewater system. Discharges from the Tokoroa Landfill, Putāruru Transfer Station and the former Tīrau Landfill are monitored and the results are reported to the Waikato Regional Council. A reduction of total waste is encouraged through realistic charges and the promotion of recycling. Green waste is diverted from the landfill and is mulched so that it can be reused.

12.7. Financials Please see the following pages for the financial information.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 91 of 200 Draft Long Term Plan 2015-25 Solid Waste and Recycling

Funding Impact Statement - Solid waste & recycling Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 478 464 473 511 548 561 584 617 650 600 608 Targeted Rates 688 814 882 923 947 966 985 1,010 998 1,038 1,070 Other Revenue: Subsidies & grants for operating purposes - 53 53 55 56 52 54 56 57 10 10 Fees, charges & targeted rates for w ater supply 967 921 1,001 1,038 1,067 1,104 1,137 1,174 1,213 1,163 1,109 Internal charges & overheads recovered (84) ------Local authorities fuel tax, fines, infringement fees, and other receipts - 65 65 67 69 71 73 76 78 81 84

TOTAL OPERATING FUNDING (A) 2,049 2,317 2,474 2,594 2,687 2,754 2,833 2,933 2,996 2,892 2,881

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 1,683 1,729 1,827 1,909 1,962 2,016 2,078 2,151 2,234 2,159 2,142 Finance Costs 86 129 133 133 139 144 142 139 136 133 129 Internal charges & overheads applied 174 404 406 399 419 435 441 458 469 485 494 Other operating funding applications 73 ------

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 2,016 2,262 2,366 2,441 2,520 2,595 2,661 2,748 2,839 2,777 2,765

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 33 55 108 153 167 159 172 185 157 115 116

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure ------Development & financial contributions ------Increase (decrease) in debt - (11) (10) (11) (11) (12) (13) (14) (15) (16) (17) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) - (11) (10) (11) (11) (12) (13) (14) (15) (16) (17)

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand ------to improve the level of services - - 52 ------to replace existing assets 81 40 46 196 436 29 76 380 32 33 34 Increase (decrease) in reserves (54) (51) (108) (207) (447) (41) (89) (394) (47) (49) (51) Increase (decrease) in investments 6 55 108 153 167 159 172 185 157 115 116

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 33 44 98 142 156 147 159 171 142 99 99

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (33) (55) (108) (153) (167) (159) (172) (185) (157) (115) (116) FUNDING BALANCE ((A-B)+(C-D)) ------

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 92 of 200 Draft Long Term Plan 2015-25 Solid Waste and Recycling

Key Capital Projects Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Total $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOLID WASTE & RECYCLING Tokoroa: Capital Component of Maintenance-Tok Renewal 21 21 22 21 21 24 25 25 26 27 28 240 Landfill Capping Renewal ------34 349 - - - 383 New tipping head Renewal 50 - - - 81 ------81 Design report for resource consent renewal (30/10/20)Renewal - - - 52 ------52 Weighbridge: Midlife upgrade of structure Renewal - - - 56 ------56 Renewal of Kiosk Computer Renewal 4 - 4 - - - 5 - - - - 9 Refurbish kiosk Renewal - - - 11 ------11 Other minor projects Renewal - 3 7 - - - 6 - - - - 16 Putaruru: - Capital Component of Maintenance-Put Renewal 5 5 5 5 5 5 6 6 6 6 6 55 Weighbridge:mid life upgrade of strcture Renewal - - - 51 ------51 Other minor proHects Renewal - 11 8 - 10 ------29 Recycling: - Recycling Centre - chip sealing yard Level of Service - - 26 ------26 Recycling Centre - roof paint/roller door replace Level of Service - 26 ------26 Recycling Centre - new weighbridge Renewal - - - - 107 ------107 Recycling Centre - construct refuse station Renewal - - - - 212 ------212 Total 80 40 98 196 436 29 76 380 32 33 34 1,354

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 93 of 200 Draft Long Term Plan 2015-25 Governance and Corporate

14. GOVERNANCE AND CORPORATE Ratonga rangapū me tewana

14.1. What we do . Organise local government elections . Support the elected members . Ensure efficient Council and Tīrau Community Board meetings . Communicate effectively with our communities . Develop Long Term Plans, Annual Plans and Annual Reports . Manage Council's corporate business (which includes information systems, legal services, human resources, revenue, finance, communications and strategic planning).

14.2. Why we do governance and corporate The governance and corporate group of activities support all the other activities carried out by Council to ensure that they run smoothly by providing the necessary information systems and financial support. Governance and corporate plays an important role in ensuring that democracy is upheld in our district as it ensures that elections and decision-making processes are lawful. Communications play an important role in informing our community about Council's upcoming plans and allowing opportunities for our residents to have their say. Governance and corporate contribute primarily to the following Council outcomes and strategies.

Outcomes Strategies Grow our economy: Existing businesses thrive and Economic development strategies: new businesses start up in the district. Stimulate economic development by assisting existing and attracting new businesses while encouraging diversity. Encourage education and training to improve the employment opportunities of district's residents. Improved external image: People outside our district District promotion strategy: are encouraged to live, work and develop businesses Use a full range of marketing tools in conjunction with here. other organisations, to encourage external people to visit and live and develop businesses in our district. Community pride: Council provides services that Community Pride Strategy: make residents proud of our district, celebrating the Through improved communication, community artistic, sporting and cultural achievements of our activities, an enhanced physical environment focus on people and the diversity of our cultures. making our community proud and engaged. Cultural leadership: We support and encourage Cultural leadership strategies: cultural leadership and capacity building. Maintain and support our community’s art and culture, and support cultural displays and events. Build and maintain a strong strategic and operational relationship with Raukawa. Build and maintain a strong working relationship with Māori at all levels of Council. Build and maintain a strong working relationship with all cultures present in our district. Efficient Council operations: Council ensures that Efficient and effective operations strategies: our business practices are efficient and effective and Work together with our partners to achieve common achieved through successfully working with our goals. community. Embed a quality improvement philosophy into all operations of Council. Implement governance and management structures, systems and processes that improve our effectiveness and efficiency.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 102 of 200 Draft Long Term Plan 2015-25 Governance and Corporate

14.3. Our plans The upcoming projects that Council has planned for the next ten years are:

Major cost/project Year/s Cost Type of work eg renewal Upgrades to the computer information services 2015-25 $1.556 Renewal million Tokoroa Civic Hub (Leith Place Redevelopment) 2015-16 $1.5 Level of million* service *includes $1 million for the redevelopment, $400,000 for a new information centre and $100,000 for the replacement of the toilets. Please note that the toilets are also included in the 'recreational and facilities' financial information.

14.4. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans.

14.4.1. Elections

Level of service That local government elections are conducted in an error free manner.

How we will measure our performance . Target: Council will conduct error-free local government elections (the election process is defined in the Local Electoral Act 2001).

14.4.2. Finance

Level of service That Council collects only enough rates to meet it operational and capital replacement requirements.

How we will measure our performance . Target: to ensure that Council only collects enough rates to meet its funding requirements, the operating level of Council's average annual general fund will not be more than $500,000 in surplus or less than $500,000 in deficit.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 103 of 200 Draft Long Term Plan 2015-25 Governance and Corporate 14.4.3. Democratic support

Level of service The democratic process ensures ultimate oversight of the affairs of Council. It must ensure that procedures meet all statutory requirements and provide opportunities for participation by residents, stakeholders and community groups within the district.

How we will measure our performance . Target: that Council complies with all sections of the Local Government Act 2002 governing the functions of elected officials and consultation with our community on documents (including strategies, policies and bylaws).

14.4.4. Communications

Levels of service That parties requesting information from Council can expect to receive the information in a timely manner.

How we will measure our performance . Target: all official information requests are responded to within the statutory timeframe (20 or 40 working days). . Target: That 90% of media requests are responded to within ten working days.

14.4.5. Rates

Level of service That the amount of rates arrears owed to Council does not unfairly burden other ratepayers.

How we will measure our performance . Target: the total amount of rate arrears is less than 10% of the current year's total rates paid to Council.

14.4.6. Information Services

Level of service A wide variety of Council's services are now provided by Information Services eg online. Both ratepayers and staff can expect to access the information that they need easily, when they need it.

How we will measure our performance . Target: Council's information systems are available at least 99% of the time. System availability is defined as reliable access during business hours to supported applications. Availability is measured from offices over 24 hours, 365 days of the year, excluding planned and agreed maintenance downtime.

14.4.7. Strategic Policy

Level of service That the public can expect Annual Plans and Long Term Plans to meet statutory requirements so that they can access information about the Council business in a timely manner.

How we will measure our performance . Target: Annual Plans and Long Term Plans will be adopted in compliance with the requirements and deadlines of the Local Government Act 2002.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 104 of 200 Draft Long Term Plan 2015-25 Governance and Corporate 14.5. How is governance and corporate funded?

Rates • 90%

Reserves • 9%

User Charges • 1%

Note: the figures above may not add up to 100% as not all funding sources are listed here. Please refer to the 'Financials' section of this chapter.

14.6. Significance negative effects There is the potential for the community to experience negative effects which are generated by the governance and corporate group of activities.

Negative Impacts What does Council do to help minimise the negative impacts? Limited resources means Council carefully prioritises spending and budgets. that Council is unable to The community is consulted on significant policy and significant expenditures achieve all of the objectives to ensure that these changes are aligned with what the community are that the community would prepared to pay. like to see achieved.

14.7. Financials Please see the following pages for the financial information.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 105 of 200 Draft Long Term Plan 2015-25 Governance and Corporate

Funding Impact Statement - Governance and corporate For the year commencing 1 July Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 1,694 1,719 1,980 2,068 2,091 2,179 2,285 2,315 2,423 2,556 2,593 Targeted Rates 12 17 18 18 18 19 19 20 20 21 21 Other Revenue: Subsidies & grants for operating purposes ------Fees, charges & targeted rates for w ater supply 21 28 66 27 30 72 29 32 79 32 36 Internal charges & overheads recovered 5,712 4,468 4,362 4,505 4,523 4,645 4,885 4,940 5,042 5,275 5,238 Local authorities fuel tax, fines, infringement fees, and other receipts 34 - 42 - - 46 - - - - -

TOTAL OPERATING FUNDING (A) 7,473 6,232 6,468 6,618 6,662 6,961 7,218 7,307 7,564 7,884 7,888

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 4,095 4,344 4,445 4,579 4,608 4,769 4,926 4,978 5,166 5,360 5,431 Finance Costs 35 32 32 32 33 34 34 35 36 37 39 Internal charges & overheads applied 2,890 1,517 1,501 1,577 1,571 1,626 1,732 1,734 1,797 1,919 1,905 Other operating funding applications 32 1,095 137 38 41 40 41 45 44 45 50

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 7,052 6,988 6,115 6,226 6,253 6,469 6,733 6,792 7,043 7,361 7,425

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 421 (756) 353 392 409 492 485 515 521 523 463

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure ------Development & financial contributions ------Increase (decrease) in debt - (9) (9) (9) (10) (8) - - - - - Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) - (9) (9) (9) (10) (8) - - - - -

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand ------to improve the level of services 156 ------to replace existing assets 562 1,510 496 542 712 467 652 649 449 374 387 Increase (decrease) in reserves (723) (1,510) (496) (542) (712) (467) (652) (649) (449) (374) (387) Increase (decrease) in investments 426 (765) 344 383 399 484 485 515 521 523 463

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 421 (765) 344 383 399 484 485 515 521 523 463

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (421) 756 (353) (392) (409) (492) (485) (515) (521) (523) (463) FUNDING BALANCE ((A-B)+(C-D)) ------

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 106 of 200 Draft Long Term Plan 2015-25 Governance and Corporate

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 107 of 200 Draft Long Term Plan 2015-25 Transport and roading

6. TRANSPORT AND ROADING Waka me ngā huarahi

6.1. What we do . Maintain local roads (state highways are managed by the New Zealand Transport Agency) . Road safety education . Footpaths and mobility crossings . Road and cycleway resealing . Pavement rehabilitation (renewing the base of a road) . Seal extensions (sealing gravel roads) . Road signs and street lights . Drainage culverts and bridge maintenance . Safety improvements to the network (such as road realignments and improvements to intersections to improve visibility).

6.2. Why we do Transport and Roading An efficient and safe transport and roading network play an important role in the daily lives of our residents. It allows people to travel to work, school or play by car, bicycle, foot or mobility scooter and it also allows for the efficient, reliable and safe transportation of goods, which is important for our businesses. Transport and Roading contributes primarily to the following Council outcomes and strategies:

Outcomes Strategies Well managed infrastructure: our infrastructure is Efficient and effective operations strategy: financially and operationally sustainable; it contributes Provide sound total asset management. positively to our district environment, and is cost effective for households and businesses, now and in the future. Sustainable Council operations: We have regard to Efficient and effective operations strategy: sustainability while operating in a cost effective Sustainability is embedded in all of Council's manner. operations. Efficient Council operations: Council ensures that Efficient and effective operations strategies: our business practices are efficient and effective and Work together with our partners to achieve common achieved through successfully working with our goals. community. Embed a quality improvement philosophy into all operations of Council. Implement governance and management structures, systems and processes that improve our effectiveness and efficiency.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 55 of 200 Draft Long Term Plan 2015-25 Transport and roading 6.3. Our plans The upcoming projects that Council has planned for the next ten years are:

Major cost/project Year/s Cost Type of work eg renewal Chip seal 2015-25 $10.719 Renewal million Pavement rehabilitation (renewing the base of a road) 2015-25 $10.197 Renewal million Formation widening and rehabilitation (repairing narrow, 2015-25 $5.513 Growth damaged roads) million Minor improvements to our roading network to make our 2015-25 $3.871 Level of roads safer (eg road alignments, safety improvements) million service Improvements and rehabilitation works 2015-25 $1.910 Renewal million Replacing culverts and drains 2015-25 $1.843 Renewal million Replacing traffic signs 2015-25 $1.306 Renewal million Asphalt resurfacing in our central business districts 2015-25 $1.301 Renewal million Sealing gravel roads up to the last tanker entrance on the 2015-25 $1.118 Level of road million service Widening narrow roads 2015-25 $918,000 Level of service Bridge replacements 2015-19 $907,000 Renewal Kerb and channel replacements 2015-25 $846,000 Renewal Replacing streetlighting 2015-25 $526,000 Level of service Footpath repairs 2015-25 $517,000 Renewal Renewing level (railway) crossings 2015-16 $140,000 Renewal Christmas and feature lighting 2015-25 $113,000 Renewal

6.4. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans.

6.4.1. Road and cycleway resealing

Level of service Council maintains its sealed road surface as part of its renewal targets set by the Asset Management Plan.

How we will measure our performance: . Target: 8% by the area of the district's sealed road network is resurfaced annually.

6.4.2. Pavement (road) rehabilitation

Level of service That Council's roading network allows its users to travel efficiently to their desired destinations.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 56 of 200 Draft Long Term Plan 2015-25 Transport and roading How we will measure our performance: . Target: the smooth travel exposure shall be at least 70% of NZTA target for roughness.

6.4.3. General maintenance

Level of service That users of our roading network can expect their enquiries and service requests relating to the roading network to be responded to in a timely manner.

How we will measure our performance: . Target: that Council will respond to 100% of all service requests within ten working days of notice.

6.4.4. Road safety programme

Level of service That Council continues to provide a safer roading network.

How we will measure our performance . Target: there are no fatalities or serious injury crashes on the local road network that are directly contributable to road conditions.

6.4.5. Footpaths

Level of service That Council has a footpath network that allows its users to travel safely and easily to their desired destination.

How we will measure our performance . Target: an annual audit of the footpath network identifies that at least 90% of the footpath network has a displacement less than 20mm.

6.5. How is roading and transport funded?

Rates • 58%

Subsidies & • 41% grants

• 1% Reserves

Note: the figures above may not add up to 100% as not all funding sources are listed here. Please refer to the 'Financials' section of this chapter.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 57 of 200 Draft Long Term Plan 2015-25 Transport and roading 6.6. Significant negative effects There is the potential for the community to experience negative effects which are generated by the roading and transport group of activities.

Negative Impacts What does Council do to help minimise the negative impacts? Effects on the environment Ensure that Council applies for any resource consents that may be required. including emissions, run-off, Manage contracts to ensure that any effect on the environment is minimised. dust and noise Design stormwater infrastructure to ensure that effects of run-off are minimised. Council has a seal extension programme in place in order to reduce the length of unsealed roads in the district, which in turn reduces the dust nuisance experienced by some of our residents. Accidents may result in Operates a road safety programme and work closely with partners (including death or serious injury the Police, New Zealand Transport Agency and ACC) to raise awareness of road safety issues. Makes improvements to the roading network to improve safety eg realigning dangerous intersections. Speed restrictions are imposed to help ensure that motorists travel at speeds that are appropriate for the road.

6.7. Financials The financial information is located on the next page.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 58 of 200 Draft Long Term Plan 2015-25 Transport and roading

Funding Impact Statement - Transport and roading Annual Plan For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 4,668 4,715 4,827 4,909 4,951 5,092 5,051 5,224 5,262 5,527 5,743 Targeted rates (other than a targeted rate for w ater supply) ------Other Revenue: Subsidies & grants for operating purposes 2,559 1,179 1,211 1,250 1,325 1,379 1,459 1,528 1,618 1,692 1,790 Fees, charges & targeted rates for w ater supply - 41 41 53 42 49 64 48 60 77 (46) Internal charges & overheads recovered (105) - 1 4 8 12 17 23 29 36 43 Local authorities fuel tax, fines, infringement fees, and other receipts 114 150 151 155 159 164 169 174 180 186 193

TOTAL OPERATING FUNDING (A) 7,236 6,085 6,231 6,371 6,485 6,696 6,760 6,997 7,149 7,518 7,723

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 2,993 3,104 3,087 3,213 3,317 3,505 3,583 3,778 3,899 4,151 4,236 Finance Costs 198 272 272 269 263 255 250 248 245 241 236 Internal charges & overheads applied 568 714 710 713 699 683 685 663 638 632 595 Other operating funding applications 252 ------

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 4,011 4,090 4,069 4,195 4,279 4,443 4,518 4,689 4,782 5,024 5,067

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 3,225 1,995 2,162 2,176 2,206 2,253 2,242 2,308 2,367 2,494 2,656

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure 1,496 1,961 1,804 1,912 2,328 2,029 2,167 2,279 2,348 2,513 2,651 Development & financial contributions 10 ------Increase (decrease) in debt 30 - - - - 66 - - - - - Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) 1,537 1,961 1,804 1,912 2,328 2,095 2,167 2,279 2,348 2,513 2,651

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand 400 ------to improve the level of services 32 564 624 592 641 637 657 713 701 727 792 - to replace existing assets 2,858 3,339 3,239 3,214 3,862 3,340 3,431 3,536 3,617 3,818 3,976 Increase (decrease) in reserves (1,532) (3,903) (3,863) (3,806) (4,503) (3,911) (4,088) (4,249) (4,318) (4,545) (4,768) Increase (decrease) in investments 3,004 3,956 3,966 4,088 4,534 4,282 4,409 4,587 4,715 5,007 5,307

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 4,762 3,956 3,966 4,088 4,534 4,348 4,409 4,587 4,715 5,007 5,307

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (3,225) (1,995) (2,162) (2,176) (2,206) (2,253) (2,242) (2,308) (2,367) (2,494) (2,656) FUNDING BALANCE ((A-B)+(C-D)) ------

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 59 of 200 Draft Long Term Plan 2015-25 Transport and roading

Key Capital Projects Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Total $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's TRANSPORT & ROADING Minor Improvements Renewal 228 300 348 341 318 382 394 441 420 435 490 3,869 Bridge Replacement Renewal - 160 - 57 690 ------907 Formation Widening - Rehabilitation Renewal 400 480 508 496 520 535 551 581 588 609 645 5,513 Asphalt Surfacing/ Resurfacing in CBD areas Renewal 160 140 127 124 127 120 124 128 132 137 142 1,301 Associated Improvements (with rehab works) Renewal - 165 174 170 180 186 191 203 204 211 226 1,910 Drainage Renewals (Culverts and Kerbs) Renewal 149 160 169 165 175 180 186 192 198 205 213 1,843 Maintenance Chip Seal Renewal 940 930 1,003 950 1,008 1,048 1,080 1,115 1,153 1,194 1,238 10,719 Pavement Rehabilitation Renewal 860 890 951 951 956 982 1,013 1,069 1,081 1,119 1,185 10,197 Traffic services renewals: Signs Renewal 110 110 118 116 119 126 129 134 144 149 161 1,306 Traffic services renewals: Streetlighting Renewal 100 100 111 108 64 - 68 - - 75 - 526 Christmas/ Feature Lighting Renewal 25 10 11 10 11 11 11 12 12 12 13 113 Footpath Renewals Renewal 45 42 42 41 37 55 56 58 60 62 64 517 Kerb and Channel Renewals Renewal 80 80 84 83 74 76 68 70 96 99 116 846 Level Crossings Renewal - 140 ------140 Mobility Crossings Level of Service 6 6 6 6 6 7 7 7 7 7 8 67 Reseal Projects Level of Service 10 - 16 - 21 - - 23 - - 26 86 Seal Extensions Level of Service 70 90 106 104 106 109 113 116 120 125 129 1,118 Seal Widening. Renewal 20 100 84 81 85 88 90 93 96 99 103 919 SH 1 Over/Under Pedestrian Pass Investigation Level of Service 35 ------Tapapa Rd stock effluent Improvements Level of Service 20 ------Traffic Counters Renewal 3 - 5 3 6 7 7 7 7 7 8 57 Total Station Renewal - - - - - 66 - - - - - 66 Total 3,261 3,903 3,863 3,806 4,503 3,978 4,088 4,249 4,318 4,545 4,767 42,020

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 60 of 200 Draft Long Term Plan 2015-25 Regulatory

13. REGULATORY Te taiao

13.1. What we do . Planning guidance and compliance . Building guidance and compliance . Civil defence and rural fire . Animal control . Liquor licensing . Monitor food premises to ensure that they meet the appropriate health standards . Noise control . Parking enforcement . Business case management (a programme for businesses wishing to locate in or expand in our district to help navigate them through regulatory processes)

13.2. Why we do regulatory Central Government has given Council responsibilities in the above activities to make sure that our community is safe. The regulatory group of activities contribute primarily to the following Council outcomes and strategies.

13.3. Our plans The upcoming projects that Council has planned for the next ten years are:

Major cost/project Year Cost Type of work eg renewal Replacement of the emergency management canteen trailer 2017-18 $29,500 Renewal

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 94 of 200 Draft Long Term Plan 2015-25 Regulatory 13.4. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans.

13.4.1. Building control

Level of service To maintain Building Consent Authority accreditation and to ensure that building work that is completed is safe and complies with the requirements of the legislation.

How we will measure our performance . Target: at least 90% of building consents are processed within statutory timelines (20 working days). . Target: Council will retain accreditation as a building Consent Authority.

13.4.2. Environmental health

Level of service Provide health and licensing services and provide general protection to public health and safety.

How we will measure our performance . Target: 100% of premises registered under the Food Hygiene regulations are inspected annually. . Target: 100% of premises registered under the Food Act 2014 are audited annually.

13.4.3. Liquor licensing

Level of service Provide liquor licensing services and provide general protection to public health and safety.

How we will measure our performance . Target: 100% of on, off and club licenses are inspected annually.

13.4.4. Animal control

Level of service Ensure that animals, predominantly dogs, do not become a nuisance to the community.

How we will measure our performance . Target: greater than 90% of urgent requests are responded to within one hour on 24/7 basis.

13.4.5. Business case management

Level of service That potential business development projects that require involvement with one or more departments within Council's regulatory group are given the appropriate advice to make navigating through the regulatory processes easier, while still ensuring that legislated requirements are met.

How we will measure our performance . Target: 100% of all potential business development projects that require an integrated regulatory approach are contacted within three working days.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 95 of 200 Draft Long Term Plan 2015-25 Regulatory 13.4.6. Resource management

Level of service To promote the sustainable management of the district's natural and physical resources and process resource consents and provide environmental services in accordance with the Resource Management Act 1991.

How we will measure our performance . Target: at least 95% of non- notified consents are processed within statutory timelines (20 or 40 working days). . Target: not less than 80 hours per annum is spent on monitoring land uses eg resource consents, certificates of compliance and existing situations. . Target: reviews and Plan Changes to the District Plan are carried out in accordance with the statutory requirements in the Resource Management Act 1991 (RMA).

13.4.7. Civil defence and rural fire

Level of service Be prepared for natural hazards and emergencies.

How we will measure our performance . Target: more than three training sessions/exercises are attended within the Waikato Civil Defence Emergency Management Group. . Target: at least one South Waikato District Emergency Operations Centre or Managers exercise is held on an annual basis. . Target: to raise awareness of civil defence issues, Council will conduct than 20 visits to local organisations. . Target: maintain rural fire management arrangements to meet the requirements of the Forest and Rural Fires Act 1977 and Pumicelands Enlarged Rural Fire District. . Target: at least 90% of all rural fire and emergency calls are responded to within 15 minutes.

13.5. How is regulatory funded?

Rates • 67%

User Charges • 33%

Loans • 0%

Note: the figures above may not add up to 100% as not all funding sources are listed here. Please refer to the 'Financials' section of this chapter.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 96 of 200 Draft Long Term Plan 2015-25 Regulatory 13.6. Significant negative effects There is the potential for the regulatory group of activities to generate negative effects.

Negative Impacts What does Council do to help minimise the negative impacts? There is a perception that Council operates the Business Case Management programme which helps red tape and bureaucracy businesses navigate through any regulatory processes in order to minimise are holding up new delays. developments Costs of regulatory When developing the Revenue and Financing Policy Council decides how processes may cause much of each activity should be funded by general rates, targeted rates financial hardship for and/or user fees. For each of the activities in the regulatory group of households and businesses. activities, Council has agreed to an appropriate split between general rates and user fees to ensure than neither ratepayers nor users are unfairly burdened. If you would like to read the Revenue and Financing Policy, please see Chapter 16.

13.7. Financials Please see the following page for the financial information.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 97 of 200 Draft Long Term Plan 2015-25 Regulatory

Funding Impact Statement - Regulatory management Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 1,073 916 963 951 966 994 1,043 1,021 1,094 1,099 1,112 Targeted Rates ------Other Revenue: Subsidies & grants for operating purposes 2 ------Fees, charges & targeted rates for w ater supply 785 825 813 840 888 890 916 970 978 1,012 1,076 Internal charges & overheads recovered ------Local authorities fuel tax, fines, infringement fees, and other receipts - 44 44 45 47 48 49 51 53 55 57

TOTAL OPERATING FUNDING (A) 1,860 1,785 1,820 1,836 1,901 1,932 2,008 2,042 2,125 2,166 2,245

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 1,147 1,167 1,207 1,214 1,261 1,269 1,321 1,334 1,392 1,408 1,474 Finance Costs ------Internal charges & overheads applied 712 625 617 627 644 666 690 711 736 761 776 Other operating funding applications - 2 2 2 2 2 2 2 2 2 2

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 1,859 1,794 1,826 1,843 1,907 1,937 2,013 2,047 2,130 2,171 2,252

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 1 (9) (6) (7) (6) (5) (5) (5) (5) (5) (7)

TOTAL SOURCES OF CAPITAL FUNDING (C) ------

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand ------to improve the level of services ------to replace existing assets ------Increase (decrease) in reserves ------Increase (decrease) in investments 1 (9) (6) (7) (6) (5) (5) (5) (5) (5) (7)

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 1 (9) (6) (7) (6) (5) (5) (5) (5) (5) (7)

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (1) 9 6 7 6 5 5 5 5 5 7 FUNDING BALANCE ((A-B)+(C-D)) ------

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 98 of 200 Draft Long Term Plan 2015-25 Regulatory

Funding Impact Statement - Resource Management & Planning Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 1,113 814 837 849 889 891 907 890 810 836 859 Targeted Rates ------Other Revenue: Subsidies & grants for operating purposes 19 1 1 1 1 1 1 1 1 1 1 Fees, charges & targeted rates for w ater supply 78 109 110 113 116 119 123 127 131 136 141 Internal charges & overheads recovered (87) ------Local authorities fuel tax, fines, infringement fees, and other receipts ------

TOTAL OPERATING FUNDING (A) 1,123 924 948 963 1,006 1,011 1,031 1,018 942 973 1,001

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 719 524 552 560 595 592 603 610 627 647 668 Finance Costs 47 38 36 32 26 19 12 4 - - - Internal charges & overheads applied 272 269 265 270 278 286 295 305 314 325 333 Other operating funding applications 85 ------

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 1,123 831 853 862 899 897 910 919 941 972 1,001

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) - 93 95 101 107 114 121 99 1 1 -

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure ------Development & financial contributions ------Increase (decrease) in debt - (93) (95) (101) (107) (114) (121) (100) - - - Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) - (93) (95) (101) (107) (114) (121) (100) - - -

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand ------to improve the level of services ------to replace existing assets - 27 - 2 13 2 - 2 - - - Increase (decrease) in reserves ------Increase (decrease) in investments - (27) - (2) (13) (2) - (3) 1 1 -

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) ------(1) 1 1 -

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) - (93) (95) (101) (107) (114) (121) (99) (1) (1) - FUNDING BALANCE ((A-B)+(C-D)) ------

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 99 of 200 Draft Long Term Plan 2015-25 Regulatory

Funding Impact Statement - Emergency management Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP For the year commencing 1 July 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 345 315 314 316 327 336 345 354 362 372 382 Targeted Rates ------Other Revenue: Subsidies & grants for operating purposes 7 (2) (2) (2) (2) (2) (2) (2) (2) (3) (3) Fees, charges & targeted rates for w ater supply - 11 11 11 12 12 12 13 13 14 14 Internal charges & overheads recovered ------Local authorities fuel tax, fines, infringement fees, and other receipts ------

TOTAL OPERATING FUNDING (A) 352 324 323 325 337 346 355 365 373 383 393

APPLICATION OF OPERATING FUNDING

Payments of staff & suppliers 193 219 221 224 230 236 242 249 257 265 274 Finance Costs - 1 1 1 1 1 - - - - 1 Internal charges & overheads applied 143 89 89 91 93 96 99 102 105 109 111 Other operating funding applications ------

TOTAL APPLCIATIONS OF OPERATING FUNDING (B) 336 309 311 316 324 333 341 351 362 374 386

SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 16 15 12 9 13 13 14 14 11 9 7

SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure ------Development & financial contributions ------Increase (decrease) in debt - (2) (2) (2) (2) (2) (2) (2) (2) (2) (1) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------

TOTAL SOURCES OF CAPITAL FUNDING (C) - (2) (2) (2) (2) (2) (2) (2) (2) (2) (1)

APPLICATION OF CAPITAL FUNDING

Capital expenditure: - to meet additional demand ------to improve the level of services ------to replace existing assets 24 4 4 43 3 4 - - - - - Increase (decrease) in reserves (4) (4) (4) (43) (3) (4) - - - - - Increase (decrease) in investments (4) 13 10 7 11 11 12 12 9 7 6

TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 16 13 10 7 11 11 12 12 9 7 6

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (16) (15) (12) (9) (13) (13) (14) (14) (11) (9) (7) FUNDING BALANCE ((A-B)+(C-D)) ------

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 100 of 200 Draft Long Term Plan 2015-25 Regulatory

Key Capital Projects Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Total $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's REGULATORY Animal Control Renewal - 8 ------8 Inspection Services Renewal - 18 - 2 13 2 - 2 - - - 37 Emergency Management Renewal 24 4 4 43 3 4 - - - - - 58 Total 24 30 4 45 16 6 - 2 - - - 103

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 101 of 200 Draft Long Term Plan 2015-25 Funding impact statement

17. FUNDING IMPACT STATEMENT He Kōrero Rēti Please note that the Funding Impact Statement is presented for compliance with Local Government (Financial reporting) Regulations 2011. The information presented is not presented in compliance with New Zealand generally accepted accounting practice (GAAP) and does not include depreciation and other items of a non- cash nature.

17.1. The funding impact statement policy This is a summary of where money will come from, for the year commencing 1 July 2015. The following rates have been set by the South Waikato District Council under the Local Government (Rating) Act 2002, on rating units in the district, for the financial years commencing 1 July 2015 and ending on 30 June 2025 Note: All per unit rates are quoted inclusive of GST and rate revenue to be collected is GST exclusive. The rating system used for the general rate and some of the targeted rates is capital value, and the property valuations produced by Quotable Value effective 1 September 2012 are used for the 2015-16 rating year. It should be noted that a separately used or inhabited part of a rating unit means, any part of a rating unit that is or is able to be used or inhabited by the ratepayer or by any other person or body having a right to use or inhabit that part by virtue of a tenancy, lease, license or other agreement. Examples of an SUIP are: . a residential property contains two or more separately occupiable units, flats or houses, each of which is capable of separate habitation, or . a residential, lifestyle or rural property contains separately occupiable areas with a capability of a separate business operating in that area or areas, or . a commercial or otherwise non-residential property contains separate residential accommodation, or . commercial premises or office blocks contain separate shops, office areas, workshops, warehouses or other areas, each operated as a separate business, or with a capability of operating as a separate business in those premises. For the avoidance of doubt, a rating unit that has only one use (ie it does not have separate parts or is vacant land) is treated as being one separately used or inhabited part.

Limitation on uniform rates Section 21 of the Local Government (Rating) Act 2002 puts a legislative limit on the amount of rates that can be collected from certain uniformly charged rating mechanisms. In relation to the requirements of that section, the forecast rates for the 2015-16 year equate to 29%. The maximum limit is 30%.

17.1.1. General rate A general rate of $0.00274 cents in the dollar on the rateable capital value of every separate rating unit in the district. The rate is expected to produce $10,583,212 (excluding GST). (Pursuant to Section 13 of the Local Government (Rating) Act 2002)

17.1.2. Uniform annual general charge A uniform annual general charge of $601.43 on every separate rating unit in the district. The rate is expected to produce $4,918,925 (excluding GST). (Pursuant to Section 15 of the Local Government (Rating) Act 2002)

17.1.3. Additional unit rate A targeted rate on a uniform basis of $601.43 on each separately used or inhabited part of a rating unit beyond the first. The rate is expected to produce $631,764 (excluding GST).

17.1.4. Water supply charge A targeted rate on a uniform basis for each separately used or inhabited part of a rating unit located within any area shown on the plans described below for the ordinary supply of water.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 166 of 200 : Draft Long Term Plan 2015-25 Funding impact statement For properties located outside any area shown on the plans described below that are connected to a Council water supply via a water meter, a targeted rate on a uniform basis for each water meter at the same rate as serviced properties. This rate is expected to produce the amount shown for the maintenance and improvements to the water supply within the serviced area defined on the plan shown below. (Pursuant to Section 16 and Section 19 of the Local Government (Rating) Act 2002)

17.1.5. Serviced/serviceable properties

Serviced Area Each Serviced Part Each Serviceable Rate Expected to SWDC Plan of a Rating Unit Part of a Rating Produce $GST Excl $GST Incl Unit $GST Incl Arapuni 279.26 139.63 2,098,342 2592 Lichfield 2595 Putāruru 2589 Tīrau 2591 Tokoroa 2587 Athol 2594

Where water is used in excess of 200m3 per day this shall be charged at $1.12m3. Water used in excess of 320m3 per annum shall be charged at $1.02/m3 for Tīrau, Putāruru, Arapuni, Tokoroa and Athol. All these are inclusive of GST.

17.1.6. Sewerage disposal charge A targeted rate on a uniform basis on each water closet or urinal connected either directly or through a private drain, to a public wastewater drain, or available to be connected to a Council scheme, as shown below. Residential properties are to pay the targeted rate on a uniform basis on each separately used or inhabited part of a rating unit located within in area shown on the plans below, to a maximum of one charge on each separately used or inhabited part of the rating unit. In respect of the number of additional dwellings within a rating unit, the targeted rate is to be on a uniform basis at the same value as that charged for residential properties. All properties for which the service is available, but not connected, are to pay 50% of the targeted rate on a uniform basis on each separately used or inhabited part of the rating unit. Non-residential properties are to pay: In respect of the first five pans and/or urinals within the rating unit located within any area shown on the plans below – the targeted rate on a uniform basis per pan at the same rate as charged to residential properties. In respect of each pan and/or urinal within the rating unit in excess of five – a targeted rate on a uniform basis per pan at 80% of the value charged to residential properties. All properties for which the service is available, but not connected, are to pay 50% of the targeted rate on a uniform basis on each separately used or inhabited part of a rating unit within the serviced area. This rate is expected to produce the amount shown for the maintenance and improvements to the wastewater systems within the serviced area as defined on the plan stated. (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

Serviced Serviced Properties: Non-residential Each Serviceable Rate Expected SWDC Area Residential and per Serviced Properties Part of a Rating to Produce Plan pan up to max of 5 for per pan for more Unit $GST Incl $GST Excl Non-residential $GST than 5 pans $GST Incl Incl Arapuni 329.04 263.23 164.52 2,834,930 2593 Putāruru 2588 Tīrau 2590 Tokoroa 2586

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 167 of 200 Draft Long Term Plan 2015-25 Funding impact statement 17.1.7. Stormwater rate A targeted rate for stormwater disposal on the capital value of land on every separate rating unit in the areas declared urban drainage districts, as shown below. This rate is expected to produce the amount shown for the maintenance and development of the stormwater disposal systems within the serviced area as defined on the plan stated. (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

Serviced Area Cents in $ of Rateable Rate Expected to Produce SWDC Plan Capital Value (GST Incl) $GST Excl Arapuni 0.000537 555,486 321 Putāruru 319 Tīrau 320 Tokoroa 318

17.1.8. Waste collection charge A targeted rate for waste collection to be charged on a uniform basis at $47.73 for each separately used or inhabited part of a rating unit provided with a waste collection service. The rate is expected to produce $332,324 (excluding GST). (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

17.1.9. District recycling charge A targeted rate for district recycling to be charged on a uniform basis at $51.80 on each separately used or inhabited part of a rating unit in the district. The rate is expected to produce $481,251 (excluding GST). (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

17.1.10. Tokoroa CBD charge A targeted rate to be charged on a uniform basis at $87.86 for every separate rating unit within the Tokoroa Business area as defined on SWDC plan 123A. The rate is expected to produce $9,321 (excluding GST) for funding the purchase of security cameras which are to be located in the Tokoroa central business district. (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

17.1.11. Putāruru CBD charge A targeted rate of 0.000769 cents in the dollar of the capital value of land on every separate rating unit in the Putāruru Business Area as defined on SWDC plan 456A. The rate is expected to produce $33,809 (excluding GST) for the promotion of the Putāruru Business Area. (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

17.1.12. Tīrau Ward community board charge A targeted rate charged on a uniform basis at $22.22 on every separate rating unit within the Tīrau Ward as defined on SWDC plan 2014. The rate is expected to produce $17,294 (excluding GST) for the activity of the Tīrau Community Board. (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

17.1.13. Putāruru promotion charge A targeted rate charged on a uniform basis at $22.35 on every separate rating unit within the Putāruru Ward as defined on SWDC plan 2014. The rate is expected to produce $50,751 (excluding GST) for Putāruru promotion activities. (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 168 of 200 : Draft Long Term Plan 2015-25 Funding impact statement 17.1.14. Tokoroa promotion charge A targeted rate charged on a uniform basis at $5.65 on every separate rating unit within the Tokoroa ward as defined on SWDC plan 2014. The rate is expected to produce $28,994 (excluding GST) for Tokoroa promotion activities. (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

17.1.15. Hall charges A targeted rate on a uniform basis on every separate rating unit within the hall area as defined on the SWDC plan stated. The rates will be used for providing a hall in the respective area. (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

Hall Rating Area Uniform Annual Charge Rate Expected to SWDC Plan $GST Incl Produce $GST Excl Arapuni 38.23 5,319 2584 Lichfield 27.11 4,951 2584 Puketurua 46.92 4,406 2584 Piarere 21.85 950 2584 Tapapa-Okoroire 28.34 5,373 2584 Upper Atiamuri 116.75 2,944 2584 Waotu 38.68 4,507 2584

17.1.16. Hall rating Note that the Plaza and the Tīrau Hall are funded through General Rates and the Uniform Annual General Charge.

17.1.17. Heat Swap A targeted rate charged on a uniform basis at 13.865%, based on the extent of service provided. The rate is expected to produce $148,211 (excluding GST). (Pursuant to Section 16 of the Local Government (Rating) Act 2002)

17.1.18. Due dates for payment of rates

Instalment No Period Invoice Date Date for last day of payment (before penalties apply) 1 Jul – Sept 2015 1 August 2015 7 September 2015 2 Oct – Dec 2015 1 November 2015 7 December 2015 3 Jan – Mar 2016 1 February 2016 7 March 2016 4 Apr – June - 2016 1 May 2016 7 June 2016

17.1.19. Additional charges (penalties) An additional charge of 10% is to be added to all rates levied in respect of the 2015-16 financial year and which, although due, remain unpaid on the following dates: Instalment No 1 7 September 2015 Instalment No 2 7 December 2015 Instalment No 3 7 March 2016 Instalment No 4 7 June 2016 A further additional charge of 8% is to be added to all rates levied in any financial year prior to the 2015-2016 financial year and which remain unpaid on 7 December 2015.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 169 of 200 Draft Long Term Plan 2015-25 Funding impact statement A further additional charge of 8% is to be added to all rates levied in any financial year prior to the 2015-2016 financial year and which remain unpaid on 7 June 2016. (Pursuant to Sections 57 and 58 of the Local Government (Rating) Act 2002)

17.1.20. Payment of rates Rates shall be payable at any of the following locations: . Tokoroa Office, Torphin Crescent, Tokoroa, between the hours of 8.00am and 5.00pm, Monday to Friday . Putāruru Office, Overdale Street, Putāruru, between the hours of 8.00am and 5.00pm, Monday to Friday . Tīrau Information Centre (The Dog), Main Road, Tīrau, between the hours of 9.00am and 5.00pm, Monday to Friday. Payment may also be made electronically via: Direct credit via the ratepayer's bank Bill Payments system (we are pre-registered with all major banks), or by direct credit to Council's bank: BNZ 02 0464 0103382 00 (ensuring property valuation number is referenced), or By credit card (Visa or Mastercard) via Council's website (www.southwaikato.govt.nz).

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 170 of 200 : Draft Long Term Plan 2015-25 Significance and Engagement Policy

16. SIGNIFICANCE AND ENGAGEMENT POLICY Tikanga Tūhono ki te Hapori This is a summary of the Significance and Engagement Policy. To see the full policy and its attachments, please visit http://www.southwaikato.govt.nz/our-council/strategies-plans-policies- bylaws/policies/Pages/default.aspx.

16.1. Purpose and Scope To enable Council and its communities to identify the degree of significance attached to particular issues, proposals, assets, decisions and activities. To provide clarity about how and when communities can expect to be engaged in decisions made by Council. To inform Council from the beginning of a decision-making process about the extent, form and type of engagement required.

16.2. Definitions Community A group of people living in the same place or having a particular characteristic in common. Includes interested parties, affected people and key stakeholders Decisions Refers to all the decisions made by or on behalf of Council including those made by officers under delegation. (Management decisions made by officers under delegation during the implementation of council decisions will not be deemed to be significant). Engagement Is a term used to describe the process of seeking information from the community to inform and assist decision making. There is a continuum of community involvement. Significance As defined in Section 5 of the LGA2002 “in relation to any issue, proposal, decision, or other matter that concerns or is before a local authority, means the degree of importance of the issue, proposal, decision, or matter, as assessed by the local authority, in terms of its likely impact on, and likely consequences for,— (a) the district or region: (b) any persons who are likely to be particularly affected by, or interested in, the issue, proposal, decision, or matter: (c) the capacity of the local authority to perform its role, and the financial and other costs of doing so Significant Activity Is an activity (or group of activities) as listed below:

Any activity or group of activity where the total expenditure was in excess of 10% of the total annual Council expenditure. Total expenditure includes external interest expenditure, accounting depreciation and excluding interest on internal loans, rates on council property, other internal expenditure, losses and gains of asset sales and transfers on equity. Significant project or Any project or asset purchase where the total expenditure was in excess of 10% of asset purchase the total annual Council expenditure. Strategic asset As defined in Section 5 of the LGA2002 'in relation to the assets held by a local authority, means an asset or group of assets that the local authority needs to retain if the local authority is to maintain the local authority's capacity to achieve or promote any outcome that the local authority determines to be important to the current or future well-being of the community; and includes— (a) any asset or group of assets listed in accordance with section 76AA(3) by the local authority; and (b) any land or building owned by the local authority and required to maintain the local authority's capacity to provide affordable housing as part of its social policy; and (c) any equity securities held by the local authority in— (i) a port company within the meaning of the Port Companies Act 1988: (ii) an airport company within the meaning of the Airport Authorities Act 1966'

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 164 of 200 Draft Long Term Plan 2015-25 Significance and Engagement Policy 16.3. Policy . Engagement with the community is necessary to understand the views and preferences of people likely to be affected by or interested in a proposal or decision. . An assessment of the degree of significance of proposals and decisions, and the appropriate level of engagement, will therefore be considered in the early stages of a proposal before decision making occurs and, if necessary, reconsidered as a proposal develops. . The Council will take into account the following matters when assessing the degree of significance of proposals and decisions, and the appropriate level of engagement: there is a legal requirement to engage with the community; the level of financial consequences of the proposal or decision; whether the proposal or decision will affect a large portion of the community; the likely impact on present and future interests of the community; recognising Māori culture values and their relationship to land and water; whether the proposal affects the level of service of a significant activity, whether community interest is high; whether the likely consequences are controversial; and whether community views are already known, including the community’s preferences about the form of engagement . The form of engagement used in the past for similar proposals and decisions . If a proposal or decision is affected by a number of the above considerations, it is more likely to have a higher degree of significance. . In general, the more significant an issue, the greater the need for community engagement. . The Council will apply a consistent and transparent approach to engagement. . Council is required to undertake a special consultative procedure as set out in Section 83 of the Local Government Act 2002 , or to carry out consultation in accordance with or giving effect to Section 82 of the Local Government Act 2002 on certain matters (regardless of whether they are considered significant as part of this policy). . For all other issues requiring a decision, Council will determine the appropriate level of engagement on a case by case basis. . The Community Engagement Guide identifies the form of engagement Council may use to respond to some specific issues. It also provides examples of types of issues and how and when communities could expect to be engaged in the decision making process. . Joint Management Agreements, Memorandum of Understanding or any other similar high level agreements will be considered as a starting point when engaging with Māori. . When Council makes a decision that is significantly inconsistent with this policy, the steps identified in Section 80 of the Local Government Act 2002 will be undertaken.

12 March 2015 South Waikato District Council - Draft Long Term Plan 2015-25 Page 165 of 200 Draft Long Term Plan 2015-25 The Assumptions

19. THE ASSUMPTIONS Ngā whakaaroarotanga This chapter sets out the forecasting assumptions (both financial and non-financial) that Council has used to prepare the Long Term Plan. If these assumptions need to be adjusted in the future, they can be amended through the Annual Plan process.

19.1. Infrastructure related assumptions Assumption Implication Source Likelihood Impact on financials Nationally there will It may become more This is an ongoing Low over the Moderate. continue to be concerns difficult to obtain resource trend - when Council first three When around the quality of our consents in the future for has to apply to the years, high preparing the water ways which will result activities such as Regional Council to over the financials, in stricter environmental discharging wastewater renew resource longer term. consideration regulation both nationally or taking water for consents, generally needs to be and regionally. municipal supplies. In there are stricter given to when particular it is possible conditions imposed. resource that within the next 30 Complying with stricter consents need years, Council may have environmental to be renewed to consider alternative conditions usually and the likely options for disposing of comes at an increased cost of wastewater such as cost. complying with spray irrigation onto land the conditions or more intense imposed on purification of water the resource before discharge. consent. There may also be further restrictions on how much water Council can take for its municipal supplies. The Tokoroa Landfill is There will be changes to The Tokoroa Landfill is High Moderate. likely to close in 2022 and Council's revenue and expected to reach a Model change once it has closed, it is operating costs. point where it is not from landfill to likely that all solid waste economic to keep it trucking and generated in the district will open. When this point dumping out of be managed via a transfer in time is reached, district station and disposed of at Council will need to an out-of-district location. plan another method of managing solid waste and factor in these costs. The cost of energy is going This will have financial BERL High Moderate to increase. impacts on Council's operations, in particular this is likely to impact on the cost of roading and the provision of drinking and waste water. Our population is going to Council will need to Population projections High Moderate. Will continue to decrease and assess the services it released by Statistics influence what of those who remain in our currently provides and New Zealand and the capital district, the number of determine what services National Institute of expenditure is people aged 65 years or will need to be provided Demographic and required and older will continue to in the future to reflect a Economic Analysis when it is increase. decreasing and aging predict significant required. Also population. population decline for impacts on our district over the operating next 30 years. costs.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 172 of 200 Draft Long Term Plan 2015-25 The Assumptions

Assumption Implication Source Likelihood Impact on financials There will be no significant Climate change is likely Historically there has Low Council impact from climate change to result in higher been little impact on our already over the next 10 years. intensity flooding events. infrastructure from includes If our infrastructure flooding events. Overall $20,000 cannot withstand these our level of risk from annually in the events then it will be climate change is lower budget for any damaged. than other councils who drainage have urban settlements infrastructure that are close to that is waterways and the sea. damaged.

19.2. Economic and rating trends Assumption Implication Source Likelihood Impact on financials Subdivision and building There is unlikely to be a Historically, High Low development will continue material increase in the development pressure to be minimal and irregular. number of rateable has been relatively low properties or ratepayers. as shown by recent building and resource consent data. Population projections show that our population is predicted to decline. That the number of rating The number of rating Historically the increase Medium Low units in the district at the units will remain the in the number of rating end of each financial year same over the period of units has only been between the period 2014- the Long Term Plan. minor. It is expected 15 and 2024-25 will be that any new rating 10,675. units created as a result of subdivision will be offset by the amalgamation of rating units, particularly in the rural area. There are likely to be Changes to legislation Recently Government At the time of Moderate changes to legislation that could impose additional has made amendments adopting the will affect Council. costs on Council. to legislation such as LTP, Council the Building Act and is not aware has imposed new of any legislation such as the legislation Sale and Supply of changes Liquor Act 2012 which (other than have imposed new additional requirements responsibilities and for therefore cost onto earthquake- Council. prone buildings) that could result in an additional burden for ratepayers therefore low over the first three years and moderate thereafter.

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Assumption Implication Source Likelihood Impact on financials That Central Government This will place a Documents published Moderate Moderate will impose new significant cost on by the Ministry of requirements for owners of earthquake- Business, Innovation earthquake-prone prone buildings and will and Employment. buildings. also have cost implications for Council in terms of monitoring and enforcing.

19.3. Financial Assumption Implication Source Likelihood Impact on financials Inflation will be: This will impact on BERL High High 2015-16: 0% Council's operating costs 2016-17: 0.6% 2017-18: 2.7% 2018-19: 2.9% 2019-20: 3.1% 2020-21: 3.3% 2021-22: 3.6% 2022-23: 3.9% Interest on borrowing will If the cost of servicing Current government It is unlikely Moderate be: interest is significantly policy around inflation inflation or 2015-16: 5.5% different than what was is that it will stay within government 2016-17: 6% projected then this will a range of 1-3%. This policy will impose an additional will have an impact on drive interest 2017-25: 6.75% burden on ratepayers. interest rates. rates to be Government financial significantly policy around the higher than official cash rate is also current controlled and well interest managed. rates. Earning on investment This impacts how much BNZ Private Bank. High Low income will be: we earn on our 2015-16: 5.5% depreciation reserves. 2016-17: 6% 2017-25: 6.75% The South Waikato After 2015-16 rates in the Council's Long Term High Low Investment Fund subsidy South Waikato will no Plan (Amendment) will be $200,000 for the longer be subsidised. 2012-22. 2015-16 financial year and then will be nil after that. For the 2015-16 year the The higher the subsidy The New Zealand High High subsidy from the New received from the New Transport Agency Zealand Transport Agency Zealand Transport for subsidised roading Agency, the lower the activities will be 53%. This burden on ratepayers. subsidy will increase by an additional 1% each year, until 2024-25 when the subsidy will be 62%.

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Assumption Implication Source Likelihood Impact on financials Council will revalue its land Revaluation increments BERL - inflation Moderate Moderate and buildings and most could either differ in value classes of infrastructural from the estimates in this assets on a 3-yearly basis. model, or the timing could differ due to the fair value requirement of the accounting standards. Either of these situations will result in the Statement of Financial Position values differing from expectation and there will be flow-on impact on the levels of depreciation expense which are generally rates funded. Capital projects will be If capital projects are not Asset Management Low in the Low/Moderate completed when predicted completed when Plans early years, in the Asset Management predicted ie if they have moderate in Plans. to be brought forward later years. then there are significant financial implications. Where applicable, an This might change the The Asset High High averaged life estimate has level of depreciation / Replacement funding been used to calculate asset replacement rate model is being depreciation on a funding required. Of investigated as part of capitalised project. Where larger significance is the the LTP. the asset is large and can potential for Council to be broken down into its move to a forecasted sub-components, the asset asset replacement will most likely be funding model where we componentised with look to accumulate the specific estimates attached enough funds to fully to those sub-components. fund future asset replacements. Council will receive If Council receives more Historical averages. Moderate but Low $200,000 per annum worth than $200,000 worth of no direct of vested assets. vested assets in a year rates impact Historically these have then there will be other than predominately been private financial implications. the potential roads transferred to to need to Council ownership. fund the replacement of the asset in the future.

19.4. Other assumptions Assumption Implication Source Likelihood Impact on financials Council will continue to None Historical High Low have shares in Local Authority Shared Services (LASS) however there are unlikely to be significant further potential savings created through LASS. Council staff numbers will No additional operating Decisions previously High Low not grow. costs. made by Council.

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Assumption Implication Source Likelihood Impact on financials There will be no major If a major environmental Historical Low Low environmental or civil event does occur, then it defence events which has not been provided for could impact on the district in the budgets. and/or Council operations. There is no new major No need to increase Asset Management High chance Moderate capital expenditure asset rates and loans to Plans do not identify that this purchased or constructed accommodate this. the need for any new assumption eg no new Sport and major capital is not correct Events Centre. expenditure. over the next 30 years. During the period of the The South Waikato The Waikato Branch of Moderate Low - Council Long Term Plan, it is likely District may no longer the Property Council will continue to that an application to exist, and our residents have discussed their act financially reorganise Local may be governed by a intention to submit a prudent, Government in the Waikato larger Local Government reorganisation proposal regardless of Region will be made to the entity. to the Local any Local Government Government reorganisation Commission. Commissions. proposal.

South Waikato District Council - Draft Long Term Plan 2015-2025 12 March 2015 Page 176 of 200 Draft Long Term Plan 2015-25 Major Variances in Rates 18. MAJOR VARIANCES IN RATES He rēti kaitā kē Year 1 of the 2015-25 Long Term Plan (LTP) indicates an increase in rates of 2.4% over the previous year's rates. Council has been very conscious that a large rates increase would not be appropriate and has worked hard to keep this rates increase down. The most significant variances in rates from 2014-15 Annual Plan to the 2015-16 LTP budget are as follows: 1. Rates funding for asset replacement. In previous years increases in infrastructural asset values eg significant capital expenditure (such as the South Waikato Sport and Events Centre) have meant that there is a need to increase rates to cater for increased asset replacement funding. This has not been the case this year which has actually meant a reduction in the rates required for asset replacement. However there has been a need to start rating for the future replacement of bridges which has increased rates for the first time.

2. Removing SWIF rates subsidies. Over recent years the amount of funding from the South Waikato Investment Fund (SWIF) to subsidise rates has been reducing. The value in 2014-15 of $400,000 has dropped to $200,000 in 2015-16. The effect of the reduction in the subsidy is an increase in rates. This will drop to nil in 2016-17.

3. District Plan. Significant funding were required to be spent on the development of, and consultation on, the District Plan in the 2014-15. This expenditure is not required in 2015-16 so rates have reduced.

4. Salaries. There has been a reduction in Council staff numbers which has resulted in a reduction in rates.

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