RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION 1 - PAGE 2
TABLE OF CONTENTS
COUNCIL DIRECTORY ...... 4 STATEMENT OF COMPLIANCE ...... 5 WHAT IS AN ANNUAL REPORT...... 6 COUNCIL ORGANISATIONAL STRUCTURE ...... 7 RUAPEHU DISTRICT MAP ...... 8 MAYOR AND COUNCILLORS ...... 9 COMMUNITY BOARDS ...... 10 MESSAGE FROM THE MAYOR AND CHIEF EXECUTIVE ...... 11 AUDITOR’S REPORT ...... 15 COUNCIL ACTIVITIES ...... 20 RUAPEHU’S OUTCOMES ...... 21 OUTCOMES ...... 22 RUAPEHU’S STRATEGIC ACTIVITY GROUPS ...... 23 COMMUNITY SUPPORT ...... 24 LEADERSHIP ...... 35 REGULATION ...... 41 COMMUNITY FACILITIES ...... 49 LAND TRANSPORT ...... 61 STORMWATER AND FLOOD PROTECTION ...... 71 WASTEWATER...... 78 WATER SUPPLY ...... 87 WASTE MANAGEMENT AND MINIMISATION ...... 98
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION 1 - PAGE 3
COUNCIL DIRECTORY
Postal Address: Private Bag 1001, Taumarunui 3946 Website: www.ruapehudc.govt.nz Email: [email protected]
Locations: 59-63 Huia Street, Taumarunui Phone 07 895 8188 Fax 07 895 3256 37 Ayr Street, Ohakune Phone 06 385 8364 Fax 06 385 8628 Cr Duncan/Seddon Streets, Raetihi Phone 06 385 4447 Fax 06 385 4014
Bankers: Bank of New Zealand 101 Hakiaha Street, Taumarunui
Auditors: Audit New Zealand on behalf of the Auditor General 280 Queen Street, Auckland
Solicitors: Le Pine & Co PO Box 140, Taupo
Major Contractors: Alf Downs Streetlighting Ltd Datacom Group Ltd Downer EDI Works Ltd Emmetts Civil Construction Ltd Envirowaste GHD J&J Walters Ltd Jilesen Contractors Ltd Lexel Systems Ltd Mulch & Mow Ltd Roadmarking Services Ltd Veolia Water Services (ANZ) Pty Ltd Visit Ruapehu
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION 1 - PAGE 4
STATEMENT OF COMPLIANCE
Council completed and adopted its 30 June 2018 Annual Report by 31 October 2018, as required by section 98(3) of the Local Government Act 2002.
The Council and Management of the Ruapehu District Council confirm that all statutory requirements in relation to the Annual Report, as outlined in the Local Government Act 2002, have been complied with.
Dated this 24th day of October 2018.
Don Cameron JP Clive Manley MAYOR CHIEF EXECUTIVE
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WHAT IS AN ANNUAL REPORT
The local authority is required to produce a plan showing how it will achieve the purpose of Local Government that is to meet the current and future needs of the community. The local authority demonstrates its contribution towards this purpose in the setting of Strategic Goals (SGs) and in the development of a Long Term Plan (LTP).
The LTP describes what a local authority aims to achieve over a minimum period of ten years. The LTP must be produced once every three years, with an Exceptions Annual Plan (EAP) for the years in between. The EAP provides the budget for the coming year and explains any changes from the LTP. The first year of the LTP is the EAP for that year.
The Annual Report is used to monitor the local authority’s progress against the SGs and work programmes identified in the 2015-25 LTP and against budgets contained within the 2017/18 EAP.
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COUNCIL ORGANISATIONAL STRUCTURE
Residents of the Ruapehu District
Community Boards Council Audit & Risk Ward Committee
Taumarunui/Ohura National Park Mayor Committee Waimarino-Waiouru Don Cameron JP
Deputy Mayor Marion Gillard JP (Passed away 13/08/2018)
Members Graeme Cosford JP Cynthia Dowsett Adie Doyle Ben Goddard QSM Vivienne Hoeta Karen Ngatai David “Rabbit” Nottage Kim Wheeler Jacques Windell Murray Wilson JP
Executive Office Human Resources Chief Executive Corporate Communications Clive Manley Information Technology Business Analyst
Group Manager Customer Financial Controller Group Manager Community Environmental Manager Land Transport/ Economic Services Services Development Manager Pauline Welch Alan Young Margaret Hawthorne Anne-Marie Westcott Warren Furner
• Customer Services • Financial & Management • Community Property • Water, Wastewater & • Land Transport • District Libraries Reporting • Environmental Health & Stormwater Services • Economic Development • Policy/Planning • Annual & Long Term Liquor • DoC Whakapapa • RTO (Visit Ruapehu) • Business Analysis Planning • Recreation & Community • i-SITEs • Rating Facilities • Treasury • Resource Management • Services Asset Managers • Civil Defence & Emergency • Financial Analysis & Management Decision Support Advice • Solid Waste • Building • Compliance • Information Management
RUAPEHU DISTRICT MAP
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MAYOR AND COUNCILLORS
Don Cameron JP Murray Wilson JP Mayor National Park Ward
135 Matapuna Road, RD 6 13 McKenzie Street RAETIHI 4696 NATIONAL PARK 3948
Phone 06 385 3033 Phone 07 892 2774
Marion Gillard JP Jacques Windell Deputy Mayor/ Taumarunui Ward Ohura Ward (Passed away 13/08/18) 27 Ngatai Street
TAUMARUNUI 3920 336B River Road, RD 1 TAUMARUNUI 3991 Phone 07 895 8828
Phone 07 893 8575
Adie Doyle Ben Goddard QSM Taumarunui Ward Waimarino-Waiouru Ward
168 Golf Road PO Box 8 TAUMARUNUI 3920 OHAKUNE 3660
Phone 07 895 6766 Phone 06 385 8324
Kim Wheeler Cynthia Dowsett Taumarunui Ward Waimarino-Waiouru Ward
4 Taringamotu Road 36 Shannon Street TAUMARUNUI 3920 OHAKUNE 4625
Phone 07 896 7736 Phone 06 385 8086 Fax 06 385 8980
Graeme Cosford JP David “Rabbit” Nottage Taumarunui Ward Waimarino-Waiouru Ward
42 Reu Street 32 Southridge Drive TAUMARUNUI 3920 OHAKUNE 4625
Phone 07 895 7572 Phone 021 111 6514 Fax 07 895 7572
Karen Ngatai Vivienne Hoeta Taumarunui Ward Waimarino-Waiouru Ward
446 Echolands Road, RD 4 34 George Street TAUMARUNUI 3994 RAETIHI 4632
Phone 07 896 6658 Phone 06 385 4551
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 9
COMMUNITY BOARDS
National Park Community Board Waimarino-Waiouru Community Board
National Park Ward Councillor Murray Wilson is Waimarino-Waiouru Ward Councillors Vivenne Hoeta Council’s appointed representative on the Board. and David “Rabbit” Nottage are Council’s appointed Mayor Don Cameron is an ex-officio member. representatives on the Board. Mayor Don Cameron has speaking rights.
Jenni Pendleton John (Luigi) Hotter (Chair) (Chair)
13 MacKenzie Street 99 Ruapehu Road NATIONAL PARK 3948 OHAKUNE 4625
Phone 07 892 2774 Phone 06 385 8193
Simon O’Neill Alan Whale (Deputy Chair) (Deputy Chair)
3803 State Highway 4, RD 1 125 Ruapehu Road RAURIMU 3989 OHAKUNE 4625
Phone 07 892 2633 Phone 06 385 9139
John Chapman Missy (Raewyn) Biddle
132 Raetihi Ohakune Road 17A Balance Street RD 3 RAETIHI 4632 RAETIHI 4573 Phone 022 132 6960 Phone 06 385 4946
Peta Pehi Winston Oliver
Pehi Road 29 Makino Road, RD 6 NATIONAL PARK 3989 RAETIHI 4696
Phone 07 892 2898 Phone 06 385 4443
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MESSAGE FROM THE MAYOR AND CHIEF EXECUTIVE
Council is pleased to present its Annual Report for the 2017/18 financial year.
2017/18 was a year of notable milestones for Council as we maintained our focus on the development of safe, prosperous rural communities that are able to capitalise on our agriculture, business and tourism sectors while sustaining our beautiful environment.
Financially Council has managed its finances well showing a net surplus of $4.4m against a budget of $2.9m. External debt was held at $25.8m, which was the same figure as at the end of the last financial year.
We have also joined the Local Government Funding Agency (LGFA) with effect from July 2018, which will give Council the opportunity to access varied borrowing instruments and achieve lower debt servicing rates.
While the 2017/18 Annual Report provides a summary of Council operations and activities over one financial year it should be seen in context of Council’s bigger, longer term vision of increasing jobs, incomes and opportunities for Ruapehu communities.
The year before (2016/17) Ruapehu communities backed Council to start reprioritising some spending to support implementation of our inaugural Economic Development Strategy and to take advantage of opportunities identified in the Regional Growth Action Plan under Accelerate25.
Council has continued to lead the development of regional tourism opportunities under Accelerate25 while supporting local farmers who have been leading discussions around the issues facing the future of the agriculture sector in Ruapehu.
2017/18 saw Council focused on maintaining the momentum of Ruapehu’s revitalisation journey and successfully delivering on our economic and community development objectives for the period.
Significantly 2017/18 was also a Long Term Plan (LTP) year for the ten year 2018-28 period as well as updating and renewing our Economic Development Strategy.
Council considers the consultation and adoption of the 2018-28 LTP as one of the notable milestones as Ruapehu ratepayers and communities of interest were asked to consider what was the most exciting, ambitious, and yet challenging ten year strategic planning document Council has produced yet.
Especially rewarding to Council was that so many people from across a wide cross-section of Ruapehu communities chose to actively engage with us and voice their opinions on priorities, spending and other issues for taking Ruapehu forward.
Supporting the engagement process was the introduction of new community Chat Spaces where Elected Members supported by key Council staff held a series of informal ‘drop-in’ centers around the district.
Chat Spaces which allowed people to drop-by at their convenience and discuss any Council or Ruapehu issue were extremely well received and helped Council engage with people who would otherwise not have their say.
Engagement with iwi was also another notable success of 2017/18 and the LTP consultation.
Over 2017/18 Council increased its commitment to developing and maintaining the strength of our iwi relationships with an organisational commitment to ensuring our elected members and officers have a good understanding of how Maori view things.
This included regular meetings between the Mayor, Chief Executive, key Council staff and iwi, assisting with the Treaty Settlement process, the funding of a fulltime Iwi Liaison Officer, supporting iwi business initiatives such as Ruapehu Recruitment and Te Pae Tata Ruapehu Community Learning and Tech Hub (Ngati Rangi), and continued work in technical and consenting areas such as the Wai Group.
Significant issues in the LTP included proposals to move to district wide rating for all people using Council water services, whether funding should be provided for township revitalisation, and how we should keep solid waste services sustainable with the imminent closure of the district landfill.
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All of these issues were significantly progressed by Council over the 2017/18 year, which has seen district wide water rating adopted, major township revitalisation projects get underway in Taumarunui and drafting of a Waste Management and Minimisation Plan.
Operationally over 2017/18 Council performed extremely well with a number of notable highlights in terms of day- to-day business.
Both the i-SITE network and Visit Ruapehu continued to make outstanding contributions towards Council’s economic and community development objectives.
Key tourism measures such as the Commercial Accommodation Monitor (CAM) data and the Monthly Regional Tourism Estimates (MRTE) spending data are showing strong year on year increases.
While the i-SITE network and Visit Ruapehu are delivering strong returns for Ruapehu and local operators they are also making a significant contribution to regional tourism development and NZ Inc. with data showing that the total increase in regional visitor spending for the year ending July 2018 increased by $21m or 11% from $191m to $212m.
Support and contribution to regional initiatives and NZ inc. are cornerstones of Council’s development strategy as we work with regional partners, government, iwi and others to stimulate the growth of jobs, incomes and opportunities.
As a rural Council with a small ratepayer base with large demands on our infrastructure we need government funding if we are to meet growing community aspirations and legislated compliance requirements notably in water.
Council’s approach of backing ourselves and working to support NZ inc. growth aspirations has been very successful.
Over 2017/18 this saw Council successfully progress over $3m in government co-funded infrastructure and strategic planning projects including public toilets, park and ride facilities, new water treatment plants, feasibility and destination planning studies.
Council’s work has also been central in helping to unlock $10m in funding from the Provincial Growth Fund for a gondola at Whakapapa on Mt Ruapehu and supported other initiatives including KiwiRail long distance passenger services on the main trunk line, Forgotten World Adventures proposed heritage rail cycle trail, and other regional transport initiatives.
Another significant operational highlight has been Council’s on-going progress toward being recognised as more customer and business friendly.
Achieving any of the outcomes or objectives that we have touched upon is not possible without the support and engagement of our communities.
Ruapehu residents, ratepayers and other stakeholders can have every confidence their Council is performing well and in many areas is “punching above its weight” on their behalf.
As we start on the first year of 2018-28 LTP Council believes we are well placed to implement its objectives being better connected and engaged with our communities than we have ever been.
Keeping Ruapehu on its current path to growth and prosperity however will take a continued commitment of ideas, energy and passion from the people who will benefit the most, our local people.
We would encourage you to continue to assist Council on this journey by staying engaged with us as we work to help Ruapehu communities live better lives, now and into the future.
Don Cameron - MAYOR Clive Manley - CHIEF EXECUTIVE
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How We Performed Financially
Operational Result Our operational result for the 2017/18 Financial Year shows a net surplus of $4.360m against a budget of $2.895m.
Capital Works Programme We have completed a capital works programme in the last 12 months totalling $14.4m.
Activity Description $million Community Support Various minor works under $100k 0.1 Recreation & Community Facilities Various minor works 1.1 Land Transport Renewals of various sorts 7.9 Wastewater Various minor works 0.5 Water Supply Renewals of various sorts 4.0 Overheads Computer Equipment, Software and 0.7 Furniture Solid Waste Various minor works under $100k - Stormwater Various minor works 0.1
Total 14.4
Debt Council debt was unchanged during the 2017/18 Financial Year (nil for 2016/17).
Key Financial Indicators – Comparative Table
($million)
Budget 2018 2017 2016 2015 2014
Income 36.7 39.9 35.7 36.9 31.6 31.8 Less Expenditure 33.8 35.5 33.5 34.1 29.9 32.1 Surplus/(Deficit) 2.9 4.4 2.2 2.8 1.8 (0.3)
Weighted Average Interest Rates
2018 2017 2016 2015 2014 Short Term < 1 yr. 4.11% 4.50% 5.22% 5.43% 5.72% Long Term > 1 yr. 4.48% 4.80% 4.95% 5.36% 5.45%
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Key Treasury Management Indicators The table indicates the performance of Council’s Treasury Management against the Liability Management Policy limits on borrowing and interest rate exposures. Three of the four categories are compliant but Council has exceeded policy limits on loans due for repayment in the next 12 months. However, this was done in anticipation of retiring debt held with the bank and taking advantage of better interest rates offered by Local Government Funding Agency (LGFA) in the 2018/19 financial year. Policy limits under the 2015-2025 LTP were revised in the 2018-2028 LTP in accordance with the new treasury management policy, which was approved by Council in February 2018, which will give Council greater flexibility with its borrowing options. It should be noted that Council’s external debt has not moved over the last two years.
Acceptable 2018 2017 2016 2015 2014
Range Actual Actual Actual Actual Interest Expense/Operating Revenue 3 to 12% 2.9% 3.6% 3.7% 4.8% 5.4% Total Liabilities /Total Assets <12% 8.2% 8.0% 8.1% 8.5% 8.7% Net Debt /Operating Revenue 1 to 1.5 0.65 0.79 0.79 0.85 0.99 Interest Rate Exposure <12 months 10% to 40% 55.43% 39.92% 21.3% 33.6% 21.2% 12 months - 2 years 10% to 40% 29.07% 15.51% 22.5% 20.5% 28.3% 2 - 4 years 20% to 50% 0% 29.07% 40.7% 32.8% 39.9% Over 4 years 10% to 20% 15.50% 15.5% 15.5% 13.1% 10.6%
Key Performance Indicators Council records a variety of key performance indicators (KPIs) to report non-financial performance. Individual KPIs are reported in each activity area and can be found on the following pages.
2018 Achieved Not Achieved Not Assessed
Community Support 5 2 1 Leadership 3 1 - Regulation 10 2 1 Recreation and Community Facilities 7 4 - Land Transport 2 5 - Stormwater 8 - - Wastewater 8 - - Water 5 4 - Waste Management and Minimisation 7 3 - Total 55 21 2
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AUDITOR’S REPORT
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SECTION ONE
COUNCIL ACTIVITIES
RUAPEHU’S OUTCOMES
The purpose of Local Government, as set out in section 10 of the Local Government Act 2002 (LGA) is to:
(a) Enable democratic local decision-making and action by, and on behalf of, communities.
(b) Meet the current and future needs of communities for good-quality local infrastructure, local public services and performance of regulatory functions in a way that is most cost-effective for households and businesses.
The role of Council is to lead and represent the community and to meet the needs of people now and in the future, by providing public and regulatory services. As well, Council is obliged, under the LGA, to listen to its communities and encourage community engagement in decision-making.
This is a broad mandate. To define its role further, Council sets out Outcomes. These Outcomes explain, at a high level, what Council wants to achieve. This, in turn, influences the activities, projects or issues that Council is involved in.
By identifying Outcomes, the community has an opportunity to influence Council direction and to indicate priorities for the District.
All Council activities should contribute to meeting the Outcomes and purpose of Local Government in some way.
Provision of regulatory services is well defined under legislation like the Building Act, Health Act, Sale and Supply of Alcohol Act, Dog Control Act and Resource Management Act.
Provision of local core infrastructure includes Water, Wastewater, Stormwater, Waste Management and Minimisation and local roading networks.
Other public services provided include provision of Parks and Reserves, Cemeteries, Public Halls, Libraries, Swimming Pools and Social Housing.
The LGA recognises that different organisations, individuals and Council must work together to achieve Outcomes.
This Annual Report provides information to the community on what Council has done to promote the achievement of the Outcomes.
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OUTCOMES
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RUAPEHU’S STRATEGIC ACTIVITY GROUPS
Council targets its activities to achieve Outcomes. There are nine groups of activity that Council reports against. These are grouped under two key areas – community services and facilities and assets.
Activities
Community Services Facilities and Assets
Community Support Community Facilities
Community Development (Grants, Agency) Cemeteries
Economic Development Community Buildings
Emergency Management Community Halls
Library Services Parks and Reserves
Regional Tourism Organisation Public Toilets
Visitor Information Centres Social Housing
Swimming Pools
Leadership Land Transport
(Roading) Council
Community Boards Stormwater and
Strategic Development Flood Protection
Regulation Wastewater (Sewerage) Building Services
Compliance and Dog Control Water Supply Environmental Health
Liquor Licensing Waste Management &
Resource Management Minimisation
The section provides information on what Council did, and how much it cost, for each group of activities. The information is provided in the following format for each Activity:
1 What services and activities are included in the Group. 2 Why Council does these things and the contribution to Outcomes. 3 What Council achieved (KPIs). 4 What Council spent on major capital projects against planned expenditure. 5 Highlights of the year. 6 Funding summary including the operational result and rates allocated to fund the activity. This is compared to the forecast budgets for the 2017/18 and the 2016/17 Financial Years as set out in the Long Term Plan 2015-25 and the Exceptions Annual Plan 2017/18.
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COMMUNITY SUPPORT
Introduction Community Support includes the functions of Community Development (Grants, Youth Development and Agency Services), Economic Development, Emergency Management (Civil Defence), Library Services, Regional Tourism Organisation and Visitor Information Centres. Each function is outlined in more detail below.
Council recognises the importance of partnerships in efficiently promoting the Outcomes related to Community Support and concentrates on these particularly in relation to the Community Development and Economic Development functions.
Community Development – Grants Council provides direct funding to specific community groups each year. Council also provides contestable funding for community halls as per to Council’s Community Grants Policy. More information in relation to grants is available on Council’s website, www.ruapehudc.govt.nz.
Community Development – Agency Services Council provides agency services such as New Zealand Post, NZ Transport Agency (NZTA) and Registrar General of Births, Deaths and Marriages to the Waimarino area. This agency function ensures the community continues to have access to these services. It is a self-funded activity delivered by Council staff as part of its wider duties.
Community Development – Youth Development Council actively supports youth development through facilitation and administration, co-ordination and providing in-kind support for the Ruapehu Youth Council (RYC). The RYC is made up of two groups of youth ambassadors; the Taumarunui-Ohura Youth Ambassadors (TOYA) and the Waimarino–Waiouru Youth Ambassadors (WWYA). The RYC is active in promoting opportunities for youth, building capability and leadership skills and organising and steering local initiatives. A Youth Liaison Officer facilitates the RYC and acts as a liaison point for youth initiatives within Ruapehu Communities.
Economic Development The aim of this function is to help realise the potential that Ruapehu District has to offer that: . capitalises on the agricultural, business and tourism sectors while maintaining the beautiful rural environment, and . provides better and more varied employment opportunities for our communities.
Council’s role in economic development is twofold. It ensures its own house is in order by adopting processes and policies that are user and business friendly and by ensuring infrastructure is sound. Council also has a role in influencing, facilitating and co-ordinating activities by working with the community, iwi, business, developers and providers and advocating for changes that are consistent with the aim of this function.
Council has developed the ‘Growing Ruapehu 2015-2025’ strategy to direct its efforts. The purpose of this Strategy is to help Ruapehu communities focus on what actions can be taken through until 2025 to encourage economic development. It identifies key priorities and the role of Council in targeting these priorities. This includes the actions required to manage the competing pressures and issues in our different economic sectors, e.g. effect of tourism on infrastructure demands. In addition, Council has been actively working on projects to assist business and economic development in a practical way. These include: . the development of resources to assist business development, . the development of business friendly information, . involvement in regional development, . facilitating sector cooperation, and . promoting local and international investment in the District.
Council retains a budget to enable it to invest in worthy projects as they arise and has established a number of partnerships. In addition, Council works closely with business associations throughout the District, with the aim of facilitating and supporting economic development.
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During the year, Council has revised its Economic Development Plan for the planning period 2018-2028 and has directly focused its efforts to support leadership, courage and skills of individuals who make businesses and communities successful. Central government has a fundamental leadership role to play in many of these dimensions. The new Labour-led coalition government has provided clear signals about its intention to play a stronger role in regional economic development.
The refreshed Strategy focuses on five areas for investment:
. Visitor sector growth including i-SITE services, the work of Visit Ruapehu, the design and implementation of a new sector development business model, destination rebranding and the implementation of the other actions identified in the 2016 Ruapehu Regional Visitor Development Plan.
. Infrastructure and broadband enhancements, including resolving cellular black-spot concerns and building the digital capability of individuals.
. Town centre refresh initiatives.
. Business and enterprise support, including attracting and encouraging existing and new business enterprise to locate in the District and leveraging Government support to achieve this goal.
. Skills and talent development.
With the actions falling under these headings in mind, collectively the Ruapehu community, iwi, the Government and the district’s businesses will be well positioned to stimulate and support sustainable economic and social development in Ruapehu in the period extending to 2028 and beyond.
Emergency Management – Civil Defence Council is an active member of the Manawatu-Wanganui Civil Defence Emergency Management (CDEM) Group, as required by the CDEM Act 2002. The Group comprises all local authorities in the Region. The Group maintains a Plan that considers all phases of emergency: reduction, readiness, response and recovery. A business plan is also managed by the Group, with each of the member councils contributing to achieving the goals of the Group. The Group has adopted a philosophy of centralised co-ordination and local delivery and works closely with emergency services, welfare agencies and other strategic partners for effective and comprehensive emergency management.
Library Service Libraries are situated in Taumarunui, Ohakune and Raetihi. Council also supports the community libraries in Ohura and Waiouru with grants each year.
Regional Tourism Organisation (RTO) and Visitor Information Centres (branded i-SITEs) The RTO and i-SITEs are tasked with stimulating growth in the tourism sector, as well as having local community support functions. The District is positioned as Our Greater Outdoors with National and World Heritage Parks, rivers, snow sports and a growing network of walking and cycling trails.
The RTO (Visit Ruapehu) supports the delivery of domestic marketing to key regions including Auckland, Wellington, Waikato, Bay of Plenty and Manawatu/Whanganui. The Organisation also attracts international visitors through destination marketing under the umbrella of Tourism New Zealand and is a member of Regional Tourism New Zealand, Tourism Industry Aotearoa, Tourism Export Council and Explore Central North Island Group.
Its primary role is to market and promote Ruapehu’s unique features and activities to potential domestic and international visitors.
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Aim of Community Support and Contribution to Outcomes The Community Support activity aims to provide a safe environment for residents and visitors, support economic and youth development, provide modern library services to facilitate learning and enjoyment, and stimulate growth in the tourism sector by attracting more visitors and providing an efficient visitor information service.
The Community Support activity targets the following Outcomes:
. Excellent standards of safety and welfare are promoted and respected.
. Traditions, values and history of all ethnic groups are respected.
. Preparation, planning and timely responses protect people and property from natural hazards.
. Economic diversity and core economic strengths are encouraged in partnership with others.
. Activities, facilities and opportunities for youth are provided and supported.
. Excellence and achievement in sport, arts/cultural pursuits, community service and business are supported through provision of community facilities such as libraries, pools, halls and parks and reserves.
. Events and festivals are encouraged and supported.
. The promotion of our District includes our natural rivers, bush and mountains, as well as the built heritage, agriculture and railways.
The sections “What We Achieved” and “Highlights for the Year” show how this area has performed this financial year.
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What We Achieved
Key Performance 2016/17 2017/18 2017/18 Level of Service Commentary Indicators Actual Target Actual Emergency Management Goal: Provide a safe environment for residents and visitors. Council will provide Percentage of staff 95% 70% 98% Achieved. Civil Defence and who are adequately Emergency trained in the Co- Management for the ordinated Incident District. Management Systems (CIMS).
The number of 22 >20 20 Achieved. public education presentations given each year to schools, staff and community groups throughout the District.
As the Rural Fire 100% 100% N/A Not measured as Authority for the Rural Fire activities District, respond to were transferred to all rural vegetation new entity Fire and fires within one hour Emergency NZ on at all times. the 01/07/2017.
Library Service Goal: Provide a modern and consistent environment for learning and enjoyment.
Provide a library Percentage of users 68% 75% 87% Achieved. service that meets who are satisfied the needs of the with the service community. provided.
Increase the number +6.64% +1% on prior -6.7% Not Achieved. of active library (7,656) year. (1,404) members. (7,251)
RTO and i-SITEs Goal: Provide an efficient visitor information service. i-SITEs are open 40 Tourist numbers +5% +2% +3.9% Achieved. hours minimum per increase. (23,061 (19,288 Refer Commercial week. increase). increase) Accommodation Monitor. Door numbers Taumarunui +1% Taumarunui Not Achieved (visitors) at i-SITEs. -7.67% -7.45% Increase in revenue +9.6%
Ohakune Ohakune Achieved. -7.37% +37%
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Capital Projects
Carry EAP Actual Project Description Forward 2017/18 2017/18 Notes Budget $000 $000 $000 E-Books for all Libraries - 5 2 Renewal Library Books - Taumarunui - 23 36 Renewal Library Books - Ohakune - 14 13 Renewal Library Books - Raetihi - 13 4 Renewal Total - 55 55
Work In Progress
Opening Closing Project Description WIP WIP Notes $000 $000 Civil Defence Base and Training School - 70 Growth Town Revitalisation – Community Support - 1 Growth Total - 71
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Highlights for the Year
Grants Direct grants totalling $32,958 were allocated to the Waiouru Library, Ohura Library, various Community Halls (for maintenance activities), Neighbourhood Watch, and the Raetihi Information Centre. Grants also supported the Christmas parades, which are held in Taumarunui and Raetihi.
Economic Development A key highlight for this year has been the delivery of the Immediate Priorities identified in the Manawatū Whanganui Economic Action Plan for tourism. The plan identified Ruapehu District as the natural lead for this work under the brand Accelerate25 which is the name for the Economic Action Plan implementation programme. Visit Ruapehu RTO and Ruapehu District Council has collaborated with Ministry of Business Innovation and Employment, Horizons Regional Council and Whanganui District Council to begin implementation of the Ruapehu Regional Visitor Development Plan. The plan was endorsed by the Accelerate25 lead team in August 2018 and the Council supported by Visit Ruapehu again partnered with Ministry of Business Innovation and Employment official and delivered an Implementation Plan and supporting business case for a new destination management model. This report was delivered on 30 June 2018 and is under consideration of Ministry of Business Innovation and Employment officials.
The Ruapehu District Council has worked successfully to drive the Business Friendly Policy across the district and within the Council. There is consistent focus on working to the Regional Growth Strategy, Accelerate 25 enablers, specifically the Skills and Talent, Transport and Growing Business enablers. The Business Development and Relationship Manager role continues to work to build relationships across the district, link opportunities and facilitate outcomes.
The Council continues to work alongside Chorus and Crown Fibre Holdings to prepare for Broadband enhancement and Mobile Black Spot investments beginning in 2019. This is essentially a significant civil work programme delivering door to door fibre across the community.
Visit Ruapehu RTO Destination Marketing - Visit Ruapehu (VR) delivered its committed, annual business plan as presented to Council in August 2017. Progress against the business plan has been reported regularly to industry in the form of industry updates.
Key Performance Indicators - The business plan contains Key Performance Indicators (KPIs) and outcomes that align to deliver against Visit Ruapehu’s longer-term strategy document. In addition, Visit Ruapehu has exceeded its annual funding agreement KPIs of 2% growth in Regional Tourism Estimates by achieving 11% growth to year-end June 2018.
Travel Trade Development - The focus continues to be on increasing the visibility of Ruapehu in key offshore markets of Australia and the USA predominantly.
The RTO joined a Central North Island focused sales mission to the USA and achieved double the presence in USA brochures resulting in an increase in available Ruapehu product for US agents to purchase.
Visit Ruapehu travelled to Australia jointly training with Destination Great Lake Taupo and RAL driven by involvement in joint venture consumer marketing campaigns with Tourism New Zealand Winter Touring, Tour the North and for the first time in a decade Ruapehu was included in the Tourism New Zealand Australian ‘Ski NZ campaign’.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 29
VR once again attended Tourism New Zealand market insights in Sydney, the RTNZ Inbound Operator day in Auckland, and onshore training events for SEA and Australian agents. Ruapehu had a strong presence at the Explore Central North Island trade show in Auckland and TRENZ in Dunedin in May.
The RTO was successful in attracting a strong contingent of travel agent famils to the region during FY18 including Tourism New Zealand Australian megafam, German front-liners famil, large inbound (AOT) European top seller famil, 3x key wholesalers visiting post TRENZ , Ski specific Australian famils and more.
Tourism New Zealand - relationships continue to result in increased international trade and media coverage in addition to another planned Tourism New Zealand funded photo shoot in the region for FY19.
Digital & Content Development – The visitruapehu.com website remains fit for purpose with an ongoing development plan and technical performance review required for FY19. Year on year July – June has seen an increase of 77.68% in sessions to 166,670, 44% increase in page views to 462,508 and an increase of 18% in bounce rate to 52% following increased spend in driving eyes to the website. Focus for FY19 is on maintaining the increased numbers but lowering the bounce rate.
Ruapehu Regional Visitor Development Plan - VR has continued to lead, on behalf of Council, the development of the Ruapehu Regional Visitor Development Plan (RRVDP) and business model projects. The strength of the RRVDP and proposed business model is demonstrated in Ruapehu Alpine Lifts Ltd successful application to the new Provincial Growth Fund for a $10m Government investment in Ruapehu’s first Gondola.
Ruapehu Commercial Accommodation Monitor – The result for the year ended June 2018 compared with the previous year achieved respectable growth. Guest nights rose 3.9% to 484,795 with international guest nights falling 0.3% to 175,325 and domestic guest nights rising 6.4% to 309,470. The average length of stay rose from 1.68 nights to 1.75 nights; the overall occupancy rate rose from 32.1% to 33.9%. Of particular interest is the June 2018 result against June 2017 where Guest nights rose 11.8% on top of the 22.9% last year. This result reflects the impacts of new snow making investment enabling reliable opening of Whakapapa Ski Area on the first weekend in June each year, along with the return of Mardi Gras to Ohakune.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 30 i-SITEs Ruapehu i-SITE hosted the 2017 i-SITE National Conference and successfully raised the profile of the district and supported local business with an increase in revenue.
A three-year agreement was signed with the Department of Conservation and Ruapehu District Council to work in partnership with the i-SITE at the Department of Conservation Visitor Centre at Whakapapa Village.
An i-SITE opened in November 2017 at The National Army Museum in Waiouru in a new extension to the building, which will leverage from visitors and also increase visitors attending the museum, which is currently seeing around 150,000 Mayor Don Cameron speaking at the 2017 i-SITE annually. National Conference.
The Ruapehu i-SITEs were invited to take part in an inaugural meeting between the Department of Conservation and the Visitor Information Network to work more closely together to achieve shared goals within the Ruapehu District.
Agency Services Council has three staffed offices within the District. All offices provide general Council services plus additional services to individual offices. Raetihi office for example also provides NZTA and NZ Post agency services, while Ohakune office provides marriage licences. Taumarunui office deals with the majority of Council related enquiries.
Customer Services Council’s Customer Services function is an integral part and face of the overall customer experience at Council. In order to achieve good outcomes for customer experience the Customer Service Team liaise with all departments to upskill on relevant information in order to assist customers, resolve issues or to provide responses quickly and efficiently in a professional but friendly approach.
In 2017/18 Council offices dealt with 41,295 inwards phone calls and 7,430 requests for service. These figures include after-hours service requests. Council also issued 17,358 receipts at the front counters. There were 219 Development Contribution assessments processed. This highlights an increase in phone calls and request for services over 2016/17 and yet a decrease in front counter transactions.
Civil Defence and Emergency Management Work began on the new Civil Defence volunteers headquarters in Taumarunui. This building will be used by volunteers for coordination and training.
In March 2018 Civil Defence was called out to evacuate 120 guests from Blue Duck Lodge, Whakahoro following a storm that dumped nearly 220mm of rain in 24 hours. This affected 19 farms around the area. Recovery work with Rural Support Trust, Federated Farmers and Horizons is ongoing.
A tornado hit the National Park Village in April 2018. Homes were destroyed and a welfare centre was setup at the National Park School. Volunteers from Ruapehu and Taupo Civil Defence assisted in the clean-up.
Evacuations from Blue Duck Lodge, Whakahoro arrive in Civil Defence Response Team volunteers assist a resident National Park Village. with covering a roof following the tornado in National Park Village.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 31
Youth Development Ruapehu Youth Council is made up of two groups of youth aged 12-24 who represent the Youth of the Ruapehu District. These two groups each meet once per month facilitated by Council’s Youth Liaison Officer. Representatives actively promote opportunities for youth, build capability and leadership skills and organise and steer local initiatives. Youth Ambassadors submit on local and national issues and represent the Ruapehu District at national events such as the Festival for the Future and New Zealand Youth Council Conferences.
The Youth had a busy end of year in 2017, with the development and execution of a survey, working with community groups on projects in Raetihi (the bus shelter) and attending an Emergency Service expo in October.
A new group of youth were sworn in, during February 2018, with nine in the Ohura/Taumarunui group and 12 in the Waimarino/Waiouru group. The focus for the 2018 year is on learning the art of governance, learning roles of the secretariat, planning for township revitalisation, engaging with Council on consultation issues and attending Council and Community Board meetings.
The youth engaged with the Long Term Plan process, writing and presenting submissions to Council. The Waimarino-Waiouru Youth Ambassadors (WWYA) held a successful workshop on revitalising the old bus stop in Raetihi and its surrounding area. They are currently working with an urban designer, other community groups and iwi in order to finalise the draft to bring to the Community Board and Council in September.
Both groups are moving towards being eco – champions in support of the Zero Waste Challenge to reduce, reuse, recycle and compost to maximise the life of our landfill. Youth have listened to presentations by Zero Waste team and Emily Jasmine, RDC’s Waste Minimisation Project Officer.
The Ruapehu Youth Council were nominated for a New Zealand Youth Award 2018; although the group were unsuccessful, they were formally recognised for their achievements and nomination with a Certificate of Acknowledgement from Hon Peeni Henare, Minister of Youth.
Ruapehu Youth Councils Certificate of Acknowledgement Ruapehu Youth Council presenting a submission to from Peeni Henare, Minister of Youth. Council.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 32
Libraries There has been a steady rise in the use of our eBook services over the last few years, with an increase of almost 30% in usage over the last 12 months compared to the previous year.
Taumarunui Library staff have now merged the fiction genre sections, which has now enabled browsers to discover authors writing over mixed genres e.g. the Romance fiction fans are now finding their favourite authors also amongst Historical and General fiction books. The Mystery/Thriller section remains separate, due to layout difficulties.
Library staff are visiting National Park School two or three times a term with a selection of books from the junior section for the school pupils to choose from and borrow. Many of these pupils are avid readers and visit the library during the holidays, but are unable to make the trip into town with their families during term time. Library staff assist the children in their choice of books and personalise visits by asking children what sort of books they would enjoy reading and what their interests are. The visits are proving to be extremely popular with an increasing amount of students signing up as members and being issued borrower cards with each visit. More than half the school children have now joined the library and borrow two to three books with each school visit. Feedback from school staff has been positive with indications that previously reluctant readers are becoming enthusiastic over the books brought out to them.
Fiona Thomas - District Co-ordinating Librarian visiting Ohura School children.
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Funding Impact Statement
Ruapehu District Council for the year ending 30 June 2018 Community Support Activity
LTP LTP Actual 2017 2018 2018 $000 $000 $000 Sources of operating funding General rates, uniform annual general charges, rates penalties 1,221 1,267 1,230 Targeted rates 277 284 694 Subsidies and grants for operating purposes - - - Fees and charges 534 547 1,577 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, and other receipts - - - Total operating funding (A) 2,032 2,098 3,501
Applications of operating funding Payments to staff and suppliers 1,279 1,310 2,703 Finance costs 5 9 - Internal charges and overheads applied 741 773 706 Other operating funding applications - - - Total application of operating funding (B) 2,025 2,092 3,409 Surplus/(deficit) of operating funding (A-B) 7 6 92
Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt 54 65 71 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 54 65 71
Application of capital funding Capital expenditure: - To meet additional demand - - 71 - To improve the level of service 2 15 2 - To replace existing assets 59 56 53 Increase/(decrease) in reserves - - 37 Increase/(decrease) of investments - - - Total applications of capital funding (D) 61 71 163 Surplus/(deficit) of capital funding (C-D) (7) (6) (92) Funding balance ((A-B)+(C-D)) - - -
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 34
LEADERSHIP
Introduction The Leadership activity provides for: Council’s governance at a District and local level, Council’s advocacy on issues that impact on the Outcomes, A Strategic Development function that provides a framework and planning for the community’s strategic direction, and Administration of elections.
This activity provides plans and policies guiding strategic direction and strategic financial decisions and also prepares and consults on these, including the LTP, EAP, outcomes monitoring and other documents as necessary.
Aim of Leadership and Contribution to Outcomes The aim of Leadership is to maintain a well-balanced and functional organisation, which is responsive to local economic conditions and changes and to maintaining and improving community engagement. The Leadership activity targets the following Outcomes: . Council advocates strongly for the provision of, and access to, affordable and effective health, welfare, law enforcement and education services.
. Council is proactive, transparent, accountable and takes an active, consultative approach to finding solutions.
The Leadership activity also has an impact on all of the other Outcomes as it is the decision-making part of Council.
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What We Achieved
Key Performance 2016/17 2017/18 2017/18 Level of Service Commentary Indicators Actual Target Actual Leadership Goal: To facilitate effective consultation processes to seek community input into decision-making and advocacy on key issues. Consultation Percentage of 73.5% 80% 61.7% Not Achieved. material will be respondents who While there was significant pre made publicly are satisfied or consultation and formal available from all very satisfied with consultation carried out for the Council offices and consultations. LTP and other issues, it seems on its website. this needs improving. No specific issues were identified that would have predicted a fall in satisfaction in consultation material. A real effort was made to ensure that the message was delivered by a variety of means, and experiences.
Council meets Number of 7 >6 6 Achieved. regularly with iwi. meetings with Ruapehu District Māori Council per year.
Council provides Number of Public 37 >40 41 Achieved. public access to Forums per year. the community through Community Boards and Council meetings.
Residents are Percentage of 80% 60% 65.3% Achieved. satisfied with the respondents who While the target was achieved, Leadership of are satisfied with there were no specific issues Council. Council’s identified that would have leadership. predicted a fall in satisfaction in Leadership.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 36
Highlights for the Year
Governance (Mayor and Council) During 2017/18, the following number of meetings were held:
Name of Meeting Number of Meetings
Council ordinary meetings 17 Waimarino-Waiouru Community Board 11 Ruapehu District Maori Council 6 National Park Community Board 8 Taumarunui/Ohura Ward Committee 6 Audit and Risk Committee 3 Total 51
Strategic Development The Long Term Plan 2018-28 (LTP) was developed and adopted after a series of workshops held with Councillors on the big issues that Council took out to the public for consultation. Those issues were:
. Increasing road and bridge budgets funded by FAR increase.
. Introducing district wide rating for drinking water and wastewater.
. Options for managing our solid waste.
. Township Revitalisation – to continue with current planning or reduce the budgeted dollar amount.
. Targeted holiday rental rate.
. Removing the Regional Tourism Organisation (RTO) rate and instead establishing an Economic Development (ED) targeted rate (60%) and an Economic Development Commercial targeted rate (40%), which funds both RTO and ED.
. Establishing a community trust to drive fundraising and provide long-term management of the Ohakune Mountain Road cycle trail.
. What to do with the Taumarunui Memorial Hall.
. Future options for the Raetihi Service Centre.
. How to deal with Taumarunui swimming pool leaks.
. Raetihi cemetery running out of burial space.
We had a lot of pre consultation with the community by way of Chat Spaces. 33 Chat Spaces were hosted by staff and Elected Members between 22 August and 29 November 2017, which were attended by approximately 200 people. These Chat Spaces were held in Taumarunui, Ohakune, Raetihi, National Park, Owhango and Ohura.
A Chat Space session being held in Ohakune. A Chat Space session being held in Taumarunui.
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Consultation during the official LTP submission period of 16 March until 18 April 2018 involved four chat spaces in Taumarunui, Ohakune, Ongarue and Waiouru and five community meetings held in Raetihi, Taumarunui, Ohura, National Park and Ohakune. We also held eight hui with local iwi to connect with the Māori community and sent an LTP A4 summary flyer to all ratepayers.
Facebook, radio and newspaper advertising also played a large part in the engagement with the community over the consultation period. A total of 45 Facebook posts were made to promote the LTP along with a two page spread in each of the three local newspapers every week of the consultation period and advertising on four local radio stations.
The LTP consultation subjects generated a lot of interest from the community and we had a good level of engagement resulting in 203 written submissions. Hearings were held in Taumarunui on 1 May 2018 and in Ohakune and Raetihi on 2 May 2018. Across the district, there was strong support for the majority of Council’s preferred options with more consultation with the public needed on a few items such as the Taumarunui Memorial Hall, Raetihi Cemetery and the Raetihi Service Centre. No decision was made on how to manage our Solid Waste as the consultation for the Waste Management and Minimisation Plan is still in process. Public feedback was taken into account and the Long Term Plan 2018-28 was adopted on the 27 June 2018.
The following Policies were reviewed (or developed) and adopted during 2017/18:
. Maori Freehold Land Rates Remission Policy. . Pride of Place Fund Policy. . Graffiti Strategy. . Asset Management Policy. . Land Transport Policy. . Local Alcohol Policy. . Dog Control Policy. . Freedom Camping Policy. . Easter Sunday Shop Trading Policy. . Social Policy. . Development Contributions Policy. . Rates Remission Policy. . Rates Postponement Policy. . Discounts for Early Payment of Rates Policy. . Revenue and Financing Policy. . Treasury Policy
Significant projects that were completed: . The Ruapehu Bylaw. . LTP 2018-28.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 38
Ruapehu District Maori Council Forum Council continued its commitment to build and strengthen its relationship with Tangata Whenua through the Ruapehu District Māori Council (RDMC) forums with a total of six meetings being held over the 2017/18 year.
Ultimately, the RDMC forums allow for the capacity of nine Iwi representatives to attend regular meetings to enhance the learning of Council’s day-to-day activities and to encourage participation in its decision making processes in order to meet its statutory obligations to Māori.
The forums provided opportunity for Members to fulfil their obligations as identified in their Memorandum of Understanding formalised in 2013 and their Strategic Development Plan established in 2016.
At their forums, Members received and discussed matters relevant to the following organisations:
. Te Puni Kokiri and Ministry of Social Development (Local services provided in the Ruapehu District).
. Te Awanui a Rua Charitable Trust (Marae Based Community Education Training).
. Horizons Regional Council (Proposal to amend official gazetted name).
. Taumarunui Youth Ambassadors (Ruapehu Youth Council Top Hat Revitalisation Project).
. The Elections Electoral Commission (2018 Māori Electoral Option).
. Office of Treaty Settlements (Support for Maniapoto Iwi proposal to rename the King Country section of the North Island Main Trunk railway line as “Te Ara a Tūrongo”).
. Ngā Kaumatua O Te Mauri Atawhai (Minutes from meetings).
Other matters that Members received and discussed at their forum included the following reports presented by Council staff:
. The options to establish Māori Wards.
. Compliance and non-compliance with the supply of traditional food i.e. hangi, from a Marae premise to cultural gatherings compared with the supply of traditional food specifically for fundraising.
. Updates on the progress of Council’s Long Term Plan 2018-28.
. Updates on the progress of Council’s Policies and the Ruapehu Bylaw.
. The resource consent application required by Ruapehu District Council (Council) for maintenance and renewal of Council’s infrastructure on land within the flood control and drainage scheme in the Taumarunui Township.
As a result, of the forums Members ratified the name ‘Te Kaunihera-ā-Rohe o Ruapehu’ as the official Te Reo Māori translation for the Ruapehu District Council. Ensuring the correct and appropriate translation was significant for Council and this achievement was a milestone for both Council and RDMC Members.
RDMC has also played a part in supporting Council and local elders in welcoming and celebrating new citizens residing within the district in becoming citizens of Aotearoa New Zealand. Pōwhiri (Māori welcoming ceremony) is a significant aspect of the citizenship ceremonies as this enables the new citizens to be welcomed by the Tangata Whenua.
Other forms of engagement with Tangata Whenua Council continued to maintain relationships by engaging with Iwi/Hapū outside of the RDMC forums. This included meeting with local kaumatua and attending Ngā Kaumatua O Te Mauri Atawhai Hui held on a monthly basis.
Council continued to support Iwi in their Treaty settlements and attended two Deed of Settlement signing ceremonies and the signing of an Agreement of Principle ceremony.
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Funding Impact Statement
Ruapehu District Council for the year ending 30 June 2018 Leadership Activity
LTP LTP Actual 2017 2018 2018 $000 $000 $000 Sources of operating funding General rates, uniform annual general charges, 1,440 1,463 1,506 rates penalties Targeted rates - - - Subsidies and grants for operating purposes - - - Fees and charges 26 (10) - Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, - - - and other receipts Total operating funding (A) 1,466 1,453 1,506
Applications of operating funding Payments to staff and suppliers 544 492 525 Finance costs - - - Internal charges and overheads applied 915 954 888 Other operating funding applications - - - Total application of operating funding (B) 1,459 1,446 1,413 Surplus/(deficit) of operating funding (A-B) 7 7 93
Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt (7) (7) - Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) (7) (7) -
Application of capital funding Capital expenditure: - To meet additional demand - - - - To improve the level of service - - - - To replace existing assets - - - Increase/(decrease) in reserves - - 93 Increase/(decrease) of investments - - - Total applications of capital funding (D) - - 93 Surplus/(deficit) of capital funding (C-D) (7) (7) (93) Funding balance ((A-B)+(C-D)) - - -
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 40
REGULATION
Introduction The Regulation activity works towards the goal of effectively and efficiently providing a safe and sustainable environment through the administration and enforcement of Central Government legislation, including its responsibilities for the sustainable management and use of natural resources under the Resource Management Act 1991 (RMA) and District Bylaws.
Building Services The Building Services Team issues building consents and inspects all building works and relocated buildings to ensure they meet the Building Act 2004 and Building Code requirements. Council is an accredited Building Consent Authority.
Compliance The Compliance Team’s role is to ensure compliance with Council bylaws and legislation. The work covered is varied and includes Animal Control, Parking, Noise Control and Bylaws. Compliance Officers ensure that the amenities of the District are able to be enjoyed by all.
Resource Management Resource Management involves both the issuing of resource consents and monitoring of conditions of these consents in line with relevant legislation and the District Plan.
Environmental Health and Liquor Licensing The Environmental Health and Liquor Licensing functions promote, protect and improve the health of residents and visitors to the Ruapehu District. The activities are very high profile largely due to the overall implications on the community, members of the public, businesses and visitors coming into the District.
Council enforces provisions of: . Health Act 1956 . Sale and Supply of Alcohol Act 2012 . Resource Management Act 1991 . Local Government Act 2002 . Food Act 2014 and a variety of Public Health regulations and Council bylaws.
Council ensures that members of the community and the public feel confident about their health and safety and they are not troubled by nuisances. This is achieved by:
. Registering, inspecting and licensing businesses such as food premises, liquor outlets, camping grounds and hairdressing salons.
. Investigating, resolving and monitoring nuisances and health-related complaints.
. Investigating infectious diseases notified by the Medical Officer of Health, food poisonings and food-borne illnesses and taking action to eliminate health risks or future recurrence.
. Monitoring and enforcing relevant public health legislation and local Bylaws.
. Reviewing resource and building consents for compliance with environmental health standards in both domestic and commercial situations.
. Providing advice and information to the community regarding their rights, obligations and responsibilities under the relevant legislation and on general public health matters.
. Undertaking noise monitoring to ensure that members of the community are protected from unreasonable and excessive exposure to unwanted noise.
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Aim of Regulation and Contribution to Outcomes As the level of service is already high, it is the aim of the Regulation activity to maintain that high level of service in the short term. Changes in rules and regulations, either decided by Central Government or changes in local government bylaws may impact long term level of service.
This activity targets the following Outcomes:
. Quality regulation, regulatory services and infrastructure support healthy communities.
. That the impact of waste on our environment is minimised.
. Excellent standards of safety and welfare are promoted and respected.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 42
What We Achieved
Key 2016/17 2017/18 2017/18 Level of Service Performance Commentary Actual Target Actual Indicators
Building Services, Compliance and Inspections Goal: Provide a safe environment for residents and visitors. Council will effectively Building 100% 90% 100% Achieved. process all proposed consents 340 Building Consents applications. processed were processed within the within 20 time-frames. working days.
Urgent LIMs 100% 100% 100% Achieved. processed in Only four urgent LIM applications five working were accepted. days (Note 1).
Non-urgent 97.52% 95% 96.70% Achieved. LIMs processed The year was the busiest since 2005 in ten working with 227 applications. days.
Urgent request Not 100% Not This KPI has been proven to be for service calls assessed assessed immeasurable due to interpretation responded to of what constitutes urgency across within 8 working the regulatory activities. It is no hours. longer a performance measure for the LTP 2018-2028.
% of all 87% 75% 84% Achieved. registered dogs that are microchipped (Note 2).
Respond to dog 100% 100% 100% Achieved. attacks within two hours.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 43
Key 2016/17 2017/18 2017/18 Level of Service Performance Commentary Actual Target Actual Indicators
Environmental Health and liquor Licensing Goal: Provide a healthy environment for residents and visitors. Council will undertake Health-related 95% 95% 90% Not Achieved. ongoing monitoring of food hygiene Delays in contacting the customer conditions to ensure complaints are cause delays in response times. compliance. responded to within 24 hours and actioned within five days.
Percentage of 93% 90% 93% Achieved. food premises The requirements in the new complying with legislation has caused some requirements at compliance issues. second inspection.
Ensure alcohol Percentage of 95% 90% 91% Achieved. licensing complies alcohol licences with statutory and that comply with licensing provisions. statutory and licence conditions on first inspection.
Ensure noise Percentage of 99% 95% 91% Not Achieved. complaints are noise There has been an increased need responded to complaints to undertake monitoring using the effectively, promptly resolved at first noise meter to confirm the noise and efficiently. contact. nuisance is excessive.
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Key 2016/17 2017/18 2017/18 Level of Service Performance Commentary Actual Target Actual Indicators
Resource Management Goal: Provide a sustainable environment for residents and visitors. Resource consents Land Use 100% 100% 100% Achieved. are processed within consents 36 Land Use consents have been the legal timeframes. processed processed within the legal timeframe within the legal of 20 working days and 8 processed timeframes. within the legal timeframe of 10 working days.
Subdivision 100% 100% 100% Achieved. consents 26 Subdivision consents have been processed processed within the legal timeframe within the legal of 20 working days. timeframes.
The public is informed % of pre- >29% >10% 57% Achieved. about Resource application 53 pre-applications were received Management meetings to and 30 pre-application meeting were processes and other number of held resulting in a 56% achievement. issues related to applications maintaining a received. sustainable environment.
Notes: Note 1: LIM = Land Information Memorandum. Note 2: Microchipping is a legal requirement. There are exemptions, e.g. based on the age of the dog. A target of 100% compliance is not appropriate.
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Highlights for the Year
Compliance The discounted fee of $25.00, that was to be introduced to all pet owners for providing Council with a digital photo of their pet dog, was removed as it proved difficult to achieve due to the poor response from owners. Owners can still provide a digital photo if they wish Council to hold this under their dog ownership.
A Memorandum of Understanding between Horizons Regional Council and Ruapehu District Council was created. This assists the local public in providing them with a better response to calls to attend and investigate any potential toxic smoke calls and litter in and around Horizon Regional Council’s waterways and rivers. Horizons Regional Council’s goal was to improve the service provided to the public with calls of this nature, than they have provided to the public previously.
Ruapehu District Council continues to provide an excellent re-homing program for unclaimed and surrendered dogs with Animal Rescue NZ (ARAN). Council has formed a very positive working relationship with ARAN over the past 12 years and most recently created a Memorandum of Understanding to form better communication between Council and the hard working volunteers of ARAN. Over the year 42 dogs that were suitable were rehomed through ARAN. The re-homing component of the impounded dogs is a positive approach to provide good natured dogs to people trying to find their new family member and companion.
Building Control Unit Building consent application numbers have been high, reflecting the growth in the economy. There have been some significant building projects within the District in the past year. The building team processed 340 Building Consents and completed 1,001 Site Inspections. We also issued 288 Code Compliance Certificates and completed 197 Customer Requests for Service. During the same time, we had Audits from MBIE and IANZ.
All Building Control Officers have passed the Diploma in Building Level 5. New house being constructed in Ohakune Resource Consents 59 consents have been processed (1 July 2017 - 29 June 2018) in the 2017/18 year. The statutory timeframe under the RMA is 20 working days to process and the average was 14 days. The Ruapehu Alpine Lifts Resource Consent gondola proposal was Publicly Notified and processed within the 130-day timeframe, at day 66 inclusive of three additional days for acceptance of late submissions.
786 Requests for Service have been received and completed.
A retrospective resource consent was granted to Horopito Motors to operate a vehicle wrecking and storage industrial facility in the rural zone of Horopito.
Eight Deemed Permitted Boundary Activity Applications were processed under the new Section 87BA of the Resource Management Act 1991. These applications are exempt from the full Resource Consent process. They have a 10-day maximum timeframe to process under the RMA. All were processed with an average of four days.
Aerial photo of Horopito Motors (1982)
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Environmental Health and Liquor Licensing Liquor licensing is still experiencing similar issues even with the majority of premises having already renewed their licenses under the Sale and Supply of Alcohol Act 2012. There has been an increase in the number of applicants for new licenced premises who are struggling to come to grips with the requirements. The team continue to work closely with businesses in order to ensure that the information provided is accurate and acceptable to the District Licensing Committee for all types of liquor licence applications.
The District Licensing Committee has conducted eight hearings, slightly less than the 10 held in the previous year. There has been a decline over the last two years showing that licensees and holders of manager’s certificates are coming to grips with the more stringent requirements which the licensees must now demonstrate when filing a new or renewal application.
Health has experienced increased workload since the commencement of the Food Act 2014. We are now in the final year of the three-year transitional period with all food premises. This resulted in an increased demand for resources and education around the new systems that requires all people who have food within their business to hold a registration under either a Food Control Plan or National programme in order to comply with the new Act. The implementation of Food Grading for all food businesses registered with Council, although requiring extra commitment of time for the team, will increase the commitment of the food businesses to deliver safe and suitable food it will enable diners to make an informed decision about where they eat.
There has been an increased need to undertake inspections for health nuisance complaints regarding insanitary conditions and noise disturbances over the last year. These have often been undertaken jointly with the Compliance Team.
Council has continued to support community groups to understand how the changes in Food Act 2014 affect them. The ability for community groups, sports teams and schools to operate under an exemption for up to 20 fundraising events in a year, with the fees waived for almost all those who fit within this category.
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Funding Impact Statement
Ruapehu District Council for the year ending 30 June 2018 Regulation Activity
LTP LTP Actual 2017 2018 2018 $000 $000 $000 Sources of operating funding General rates, uniform annual general charges, 876 848 857 rates penalties Targeted rates - - - Subsidies and grants for operating purposes - - - Fees and charges 841 862 966 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, - - 34 and other receipts Total operating funding (A) 1,717 1,710 1,857
Applications of operating funding Payments to staff and suppliers 455 394 342 Finance costs - - - Internal charges and overheads applied 1,262 1,316 1,225 Other operating funding applications - - - Total application of operating funding (B) 1,717 1,710 1,567 Surplus/(deficit) of operating funding (A-B) - - 290
Sources of capital funding Subsidies and grants for capital expenditure - - - Development and 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 service - - - - To replace existing assets - - - Increase/(decrease) in reserves - - 290 Increase/(decrease) of investments - - - Total applications of capital funding (D) - - 290 Surplus/(deficit) of capital funding (C-D) - - (290) Funding balance ((A-B)+(C-D)) - - -
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 48
COMMUNITY FACILITIES
Introduction The Community Facilities activity includes Cemeteries, Community Halls, Community Buildings and Property, Parks and Reserves, Public Toilets, Social Housing and Swimming Pools.
The purpose of the Recreation and Community Facilities function is to provide efficient services, facilities and an environment that attracts people to the area and encourages good health and education for all residents.
The purpose of the Community Property function is to act as a steward for property that is of social, cultural or environmental benefit to the community and to maintain these properties to a high standard. The portfolio of property includes Council administration buildings and libraries, social housing rental units, some small forestry plantations, parks, reserves, playgrounds, walkways, swimming pools, community halls, public toilets and cemeteries.
Cemeteries The objective of the Cemeteries service is to provide administration, record, enquiry and burial services for the burial of deceased persons at Council owned cemeteries within the district. Council owns and maintains cemeteries in Manunui, Matiere, Ohakune, Ohura, Owhango, Raetihi, Rangataua, Raurimu and Taumarunui. Council also owns the closed cemetery at Tatu (not maintained).
Community Halls The purpose of the Community Halls activity is to provide and maintain suitable and appropriate public halls throughout the district for social, recreational, cultural or educational purposes. There are 15 halls that are managed by, or that have been vested in Council. These range from large facilities such as the Taumarunui Memorial Hall, to smaller local community-managed halls, such as the Rangataua Hall. The Taumarunui Memorial Hall has been assessed as earthquake-prone. Consultation will be undertaken with the community during the 2018-28 Long Term Plan process on the future of the hall. Most rural community halls are wooden single story buildings that would allow safe evacuation in the event of an earthquake.
Community Buildings and Property Community buildings and property include the Council administration buildings, libraries, Taumarunui Aerodrome, Ohakune Railway Station, Taumarunui ex-saleyards and a number of other miscellaneous properties, such as the ex-library building in Ohakune. The most significant of all Council property assets are the Council administration and service centre buildings (which also incorporate the library services) in Taumarunui and Ohakune.
Parks and Reserves The purpose of Parks and Reserves assets is to:
. Provide space for people to pursue active and passive recreational activities for their social, spiritual, mental and physical wellbeing. . Provide the landscape setting for towns. . Ensure the protection and maintenance of history (ecological and human) and character of the area. . Ensure the environments essential to the existence of plant and animal species are maintained. . Protect public access to significant landscape features and recreation areas.
Areas covered by the Parks and Reserves activity include:
. Parks and Reserves. . Playgrounds. . Camping Grounds – Taumarunui, Raetihi and Ohakune Holiday Parks. . Walkways. . Miscellaneous structures, e.g. the Taumarunui Grandstand.
Public Toilets The provision of public toilet facilities for residents and visitors is considered an important activity for Council, particularly in relation to public health and safety.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 49
Social Housing Council owns 81 individual social housing units constructed on six separate sites:
. The Raetihi complex consists of six units constructed in 1977, with a further six units added in 1980 and four units completed in 1985.
. The Ohakune complex contains eight units constructed circa 1976.
. The 20 units in Taupo Road (Rangimarie Flats), Taumarunui, comprise 10 initial units constructed in 1975. Six units were added in 1981 and a further four in 1988.
. The 25 Taumarunui Street units (Rochfort Flats), Taumarunui, were erected in two stages in 1967 and 1970.
. The eight Taumarunui Street units (Cherry Grove Flats), Taumarunui, were erected in two stages in 1982 and 1983.
. The four Miriama Street units (Miriama Flats), Taumarunui, were erected in 1982.
Swimming Pools Council maintains and operates three public swimming pools situated in the main population centres of Taumarunui, Ohakune and Raetihi. The purpose of this activity is to provide and encourage the use of swimming pools efficiently and effectively within the district as a safe and affordable leisure activity. The three swimming pool complexes owned by Council are considered significant assets. These assets are now at or beyond their estimated life span. There is no indication that the pool structures cannot continue to be maintained and used for at least another decade.
Aim of Community Facilities and Contribution to Outcomes Overall, it is the aim of the Community Facilities activity to maintain current levels of service, with a few improvements by upgrading and renewing facilities.
For the 2017/18 financial year this has been achieved, through a renewal programme and some upgrades of facilities.
The Recreation and Community Facilities function targets a number of Outcomes by providing recreation and community facilities that meet the needs of the community, retain the beauty and aesthetic values of the area and provide leisure opportunities for residents and tourists. The Community Property function aims to provide stewardship for property that is of benefit to the community and ensures this property is managed in a sustainable and responsible manner.
The following are the main Outcomes targeted:
. Excellent standards of safety and welfare are promoted and respected.
. That the traditions, values and history of all ethnic groups are respected.
. That activities, facilities and opportunities for youth are provided and supported.
. That excellence and achievement in sport, arts/cultural pursuits, community service and business is supported through provision of community facilities such as libraries, pools, halls and parks and reserves.
. That Council plans for and works with the community to ensure that our environment is accessible, clean and safe and that our water, soil and air meet acceptable standards.
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What We Achieved
Key 2016/17 2017/18 2017/18 Level of Service Performance Commentary Actual Target Actual Indicators
Recreation and Community Facilities Goal: Parks, reserves and community facilities are accessible, attractive, and meet the needs and expectations of residents, visitors and youth wherever and whenever possible. Goal: Urban streetscapes, parks, playgrounds and public toilets are clean and residents and visitors feel that they are safe places to be in. Council will maintain Council-Owned 100% 100% 100% Achieved. and provide access to Swimming Complied, as per EDMS playgrounds, public Pools documents 687463 & 691877. green space, Achieve NZ amenities, libraries and Water Pool community halls. standards for all Pools (water quality certificates are achieved).
Cemeteries 11 <3/annum 9 Not Achieved. Number of customer complaints on the maintenance of the district cemeteries.
Community 100% 100% 100% Achieved. Halls BWOF in place and trial Council emergency evacuation managed halls completed as required. have the required building compliance and emergency procedures in place (Compliance Programme and trial Emergency Evacuations).
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 51
Key 2016/17 2017/18 2017/18 Performance Level of Service Actual Target Actual Commentary Indicators
Recreation and Community Facilities Goal: Parks, reserves and community facilities are accessible, attractive, and meet the needs and expectations of residents, visitors and youth wherever and whenever possible.
Goal: Urban streetscapes, parks, playgrounds and public toilets are clean and residents and visitors feel that they are safe places to be in.
Amenities and facilities Playgrounds 100% 98% 100% Achieved. are provided that meet Compliance with All playgrounds comply and no the needs and safety of NZ standards as outstanding maintenance the community. measured by requirements. annual engineer safety audit.
Parks and 81% 85% 75.1% Not Achieved. Reserves 77.1% feel safe, 73.1% are Users feel safe satisfied with quantity. 75.1% and are satisfied average. with the quantity of green space and facilities available.
Public Toilets 73% 95% 92% Not Achieved. Emergency 13 out of 14 Emergency Requests for requests were responded to Service within 24 hours. Property team responded to has worked harder this year to within 24 hours. ensure that timely information is being received back from the contractors on completion timeframes and closing RFS calls sooner.
Public Toilets 69% 95% 83% Not Achieved. Urgent Requests 31 out of 37 Urgent requests for Service were responded to within 48 responded to hours. Property team has within 48 hours. worked harder this year to ensure that timely information is being received back from the contractors on completion timeframes and closing RFS calls sooner.
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Key Performance 2016/17 2017/18 2017/18 Level of Service Commentary Indicators Actual Target Actual
Community Property Goal: To act as a steward for property that is of social, cultural or environmental benefit to the community. Goal: Council-owned buildings are structurally sound and safe and Council occupants and tenants in administration buildings and social housing feel safe.
Libraries, public Buildings 100% 100% 100% Achieved. meeting venues, Council public All BWOF in Place. Administration buildings Buildings and the (including Ohakune Railway administration, Station will be library and i- retained and well SITES) have the maintained. required building compliance in place. (All BWOFs renewed before expiry date, annually).
Library 71% 75% 87% Achieved. Library users are Very satisfied 28.57%, satisfied or highly Satisfied 58.57, Unsatisfied satisfied with 12.86% public library Methodology changed, where buildings. the N/A responses were disregarded (as not being ‘Users’) resulted in a more accurate result of satisfaction.
Community Property Goal: Council owned buildings are structurally sound and safe and Council occupants and tenants in administration buildings and social housing feel safe.
Housing units are Social Housing 97% 95% 97% Achieved. maintained to a Percentage of satisfactory standard residents who and provide a safe feel safe in their environment for homes. tenants. Social Housing 100% 75% 90% Achieved. Percentage of 27 out of 30 residents are residents who are satisfied or very satisfied with satisfied or very overall level of Social Housing. satisfied with the LOS.
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Capital Projects
Carry EAP Actual Project Description Forward 2017/18 2017/18 Notes Budget $000 $000 $000 Cherry Grove development - 10 22 LOS. Community Housing upgrades - - - 70% Renewal, 30% LOS. District wide playground equipment 51 - 61 Renewal. District wide toilets - 475 551 Growth. Depot carpark reseal - - 47 Renewal. Fencing problem reserves north 3 10 16 Renewal. Fencing problem reserves south 3 10 4 Renewal. Furniture and fittings over $500 - 21 8 Renewal. Islington Street renewals - 80 10 Renewal. Matiere cemetery fence - 9 8 Renewal. Matiere cemetery water tank - 2 - LOS. Ohakune Admin Building 35 - 7 Renewal. Ohakune admin civil defence 8 - - LOS. generator Ohakune flats facia and spouting 10 - - Renewal. renewal Ohakune i-SITE shade sails - 5 - LOS. Ohakune Railway Station repiling 37 - - Renewal. On hold, awaiting advice from Historic Places Trust and final decision on design. Ohakune Service Centre 66 - 80 60% Growth, 40% Renewal. Ohakune walkway - 21 27 LOS. Ohura cemetery water tank - 5 4 Renewal. Ohura Hall rewiring - - 15 Renewal. Owhango domain developments - 16 3 LOS. Raetihi cemetery fence 10 10 9 Renewal. Raetihi campground ablution block 100 - - Renewal. Concept designs have been delayed. Raetihi campground switchboard 10 - - Renewal. Raetihi chlorine tanks - - 8 LOS. Replace air conditioning unit - 16 - Renewal. Rubberfall areas renewal 20 - 7 Renewal. Social Housing heat pump installs - 45 52 LOS. Social Housing minor capital works - 16 18 Renewal. Social Housing security doors - 5 13 LOS. Taumarunui CBD vision concept - 26 - LOS. Taumarunui domain drain realignment - 21 - LOS. Taumarunui grandstand refurbishment 40 - - Renewal. Taumarunui stainless steel rubbish 4 21 10 Renewal. bins Taumarunui swimming pool cracked - 11 - Renewal. pathways Taumarunui town revitalisation - 500 - Growth. Taumarunui walkway 14 21 101 LOS. Te Peka lookout stormwater relocate - 5 3 Renewal. Total 411 1,361 1,084
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 54
Work in Progress
Opening Closing Project Description WIP WIP Notes $000 $000 Fencing problems south - 2 Renewal. Cherry Grove development 15 LOS. Complete. District wide toilets - 1 Growth. Ohakune Admin Building 7 Renewal. Ohura hall upgrades - 25 Renewal. Raetihi camp ground ablution block - 10 Renewal. Rangimarie Flat 2 repairs and 1 1 Renewal. reconfiguration Repile Ohakune Railway Station 4 6 Renewal. Taumarunui Domain facilities upgrade - 3 LOS. Taumarunui Grandstand - 7 Renewal. Town revitalisation – community facilities - 238 Growth. Total 27 293
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 55
Highlights for the Year
Cemeteries . A new fence was extended along the front of the Raetihi Cemetery.
. New berms were installed at the Ohakune Cemetery.
. A new hand-washing basin was installed at the Manunui Cemetery.
. The extension of the Manunui Cemetery was completed with new berms and fencing.
. New decorative fencing was installed at Matiere Cemetery.
. A shelter and water tank were installed at the Ohura Cemetery.
New hand basin at Manunui Manunui Cemetery extension. Raetihi Cemetery fence. Cemetery.
Community Buildings and Property . A major exterior clean of the Taumarunui Huia Street administration building and surrounding pathways and carpark was undertaken for the first time since the construction of the building.
. The right hand side garden of the Raetihi Service Centre was removed and a bike rack and new seat were installed.
. The extension of the Ohakune Service Centre staff facilities was completed.
. The Ohakune i-SITE gardens were revamped.
. The windows of the Ohakune i-SITE were tinted to provide protection of the sun.
. An Asbestos Management Plan and register was developed.
. The Taumarunui Railway Station toilets and showers were upgraded.
. The Taumarunui Huia Street depot carpark was sealed.
Ohakune i-SITE gardens. Ohakune Service Centre alterations.
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Social Housing . Flat redecorations and carpeting as required.
. Heat pumps and insulation installed at the Council owned Waimarino Rest Home (Raetihi).
. Painting of the Waimarino Rest Home (Raetihi) commenced.
. Replaced hot water cylinders in Flat 19, Rangimarie Flats and Flat 1 Miriama Street Flats, Taumarunui.
. The demolition of a pensioner flat at Cherry Grove Court in Taumarunui after it was destroyed by fire. The demolition of a Cherry Grove Court flat, Taumarunui.
Parks and Reserves . Landscaping at Taumarunui Northern Entrance was completed, including access to the Ongarue River landing.
. The accessible walkway extended from Ongarue River bridge to BMX track, Taumarunui.
. Two drinking fountains were installed in Raetihi (Seddon Street and Pitt Street Reserve).
. Mangawhero Walking Track (Ohakune) was reformed and surface metalled.
. Picnic tables installed in Waiouru.
. Northern and Southern tree programme work was completed.
. Taumarunui Grandstand upgrade programme of works completed.
. New stainless steel bins installed on Hakiaha Street, Taumarunui on the corners of Marae Street and in front of Big Mama’s Café (Hakiaha Street).
. Turf was laid at the Taumarunui ex-library site following demolition of the Library.
. The sign at the entrance to Cherry Grove, Taumarunui was renewed and on reinstatement was raised by 500mm to allow for access of kayaks and jet boats.
. Raetihi Promotions, assisted by Council, extended the accessible section of the Makotuku River Walkway.
. New Cherry Tree planting and knee breaker fencing installed at Cherry Grove, Taumarunui.
. New climbing net installed at the Taumarunui Domain playground, train demolished.
. Renewal of spouting, installation of lighting and new exterior power point, and ceiling lining in men’s toilet was completed at the Owhango Domain Pavillion.
. Stormwater drainage improved at the Te Peka Reserve look out, Taumarunui.
. Ohakune ‘Carrot’ Park development continued.
Accessible Walkway, Taumarunui. Ex-Library Site, Taumarunui.
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Taumarunui’s Northern Entrance. Taumarunui Northern Entrance Taumarunui Domain Playground. Landscaping.
Taumarunui Grandstand. Makotuku Walkway, Raetihi.
New drinking fountain, Seddon Street, Raetihi. Ohakune ‘Carrot’ Park, Ohakune.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 58
Community Halls . Ohura Memorial Hall toilets, supper room and kitchen received an upgrade.
. Manunui Memorial Hall foyer, dining room and kitchen were painted.
Public Toilets New Public Toilets were installed at: Ohakune (Carrot Park), Tangiwai Reserve, Ameku Road (Raetihi), Owhango and Ohura.
Owhango Public Toilet. Tangiwai Public Toilet.
Swimming Pools . Taumarunui Swimming Pool leak was remediated and was opened in January 2018 after engagement with the community.
. District Swimming Pool new contract was let after a Section 17A review, and the new contractors smoothly took over the operation of the pools.
. The steps to the diving board in Raetihi were replaced.
. A new chlorine tank was installed at the Ohakune pool.
Raetihi diving board new steps. .
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 59
Funding Impact Statement
Ruapehu District Council for the year ending 30 June 2018 Community Facilities Activity
LTP LTP Actual 2017 2018 2018 $000 $000 $000 Sources of operating funding General rates, uniform annual general charges, 2,506 2,643 2,802 rates penalties Targeted rates - - - Subsidies and grants for operating purposes 4 4 - Fees and charges 416 427 544 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, - - - and other receipts Total operating funding (A) 2,926 3,074 3,346
Applications of operating funding Payments to staff and suppliers 1,901 1,984 2,123 Finance costs 52 80 11 Internal charges and overheads applied 843 879 830 Other operating funding applications - - - Total application of operating funding (B) 2,796 2,943 2,964 Surplus/(deficit) of operating funding (A-B) 130 131 382
Sources of capital funding Subsidies and grants for capital expenditure - - 367
Development and financial contributions - - - Increase/(decrease) in debt 548 357 614 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 548 357 981
Application of capital funding Capital expenditure: - To meet additional demand - - 769 - To improve the level of service 311 153 239 - To replace existing assets 223 101 301 Increase/(decrease) in reserves 144 234 54 Increase/(decrease) of investments - - - Total applications of capital funding (D) 678 488 1,363 Surplus/(deficit) of capital funding (C-D) (130) (131) (382) Funding balance ((A-B)+(C-D)) - - -
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 60
LAND TRANSPORT
Introduction The Land Transport activity involves the maintenance and development of public roads, kerbs and channels, bridges, street lighting, footpaths and street furniture for the District, with the exception of the State Highways, which are managed by the NZ Transport Agency (NZTA).
Council maintains its roads under contract to a standard that provides safe and comfortable driving within the limitations of available funding.
The District land transport network consists of: . 488 km of sealed roads, . 851km of unsealed road, . 342 bridges and large culverts, . 69km of footpaths and . 1,445 streetlights.
Ohakune ‘Carrot’ Park construction. Aim of Land Transport and Contribution to Outcomes The aim of the Land Transport activity is to provide reliable, cost effective all-weather transport corridors for the district and to maintain levels of service at the current standard.
Land transport contributes to the following Outcomes by providing core services and managing the roading network to keep pace with development, as well as ensuring that roads and footpaths are safe, reliable and well maintained. The relevant Outcomes are:
. Council is proactive, transparent, accountable and takes an active, consultative approach to finding solutions.
. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and roading) endeavours to keep pace with changing demand.
. Excellent standards of safety and welfare are promoted and respected.
. Regulatory services and reliable infrastructure help the economy prosper and support a range of quality retail, entertainment, educational, healthcare, businesses and services.
. Our transportation network is reliable, safe and endeavours to meet the needs of users.
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What We Achieved
Key Performance 2016/17 2017/18 2017/18 Level of Service Indicators Commentary Actual Target Actual (Note 1)
Land Transport Goal: District roads provide continuous all weather travel that is safe and accessible. Goal: Managing the network with a strong focus on safety to avoid or mitigate significant hazards.
The safety of the The change from +2 fatal and Target for Three Achieved. land transport the previous serious reducing fewer network is financial year in the injuries over the number serious 2017/18 results – Two acceptable to users. number of fatalities previous of serious injuries serious injuries and no and serious injuries year total injuries and fatalities. on the local road and fatalities network, fatalities = than 2016/17 results – Five expressed as a less than previous serious injuries and no number. or equal to year. fatalities. 1 (less than previous year).
Roads are managed The average 83% Target 85% Not Achieved. to an acceptable quality of ride on a level of level and the road sealed local road smooth Smooth travel exposure is network is available network, measured travel calculated by RAMM from when required. by smooth travel exposure traffic and roughness inputs. exposure. ≥87%. The 2% increase from
2016/17 indicates that the network is improving from seal renewal works
completed during the year.
The percentage of 7.0% 7.5% 6.4% Not Achieved. the sealed local 37km out road network that 34.4km out 31.7km out Increases in the bitumen cost of 485km. is resurfaced. of 493km of 494km index has meant that some reseal lengths had to be deferred to 2018/19.
Maintain the Q1 – 3.7 <5.5 Q1 – 4.8 Not Achieved. sealed roads to a defects/km standard that Q2 – 4.6 / quarter. Q2 – 3.6 Surface water channels, * allows <5.5 Q3 – 4.6 Q3 – 5.2 detritus, vegetation and defects/km/quarter. culvert marker pegs missing Q4 – 5.1 Q4 – 6.9 or leaning were issues in Q4.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 62
Key Performance Level of Service 2016/17 2017/18 2017/18 Commentary Indicators Actual Target Actual
Land Transport Goal: District roads provide continuous all weather travel that is safe and accessible. Goal: Managing the network with a strong focus on safety to avoid or mitigate significant hazards. Maintain the Q1 – 4.1 <5.5 Q1 – 5.9 Not Achieved. unsealed roads to defects/km a standard that Q2 – 4.7 / quarter. Q2 – 5.6 Surface water channels, * detritus, vegetation and allows <5.5 Q3 – 5.1 Q3 – 5.3 defects/km/quarter. culvert marker pegs missing Q4 – 5.3 Q4 – 7.9 or leaning were the main issues during the year.
The percentage of 97.7% in 75% of 98.5% in Achieved. footpaths that fall average or network to average or within the level of better be in better 1.4km of footpaths were service for the condition. average condition. renewed or repaired in surface condition condition 2017/18. of footpaths as per 1.3 % in or greater 0.7% in
the AMP (Note 2). poor and not poor condition. more than condition. 10% of network in poor condition.
The percentage of 90% 95% 93% Not Achieved. customer service requests relating to 1,261 calls completed by roads and target date out of 1,354 calls received. footpaths to which
Council responds 1,125 calls were received in within the time total in 2016/17. frame specified in the LTP (Note 4).
* The road measures are managed to an acceptable level, and the network available when required. These measures are reported by the service provider (GHD) as part of their contracted responsibilities. The accuracy of the reported results have not been verified by Council.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 63
Notes: The Request for Service targets are:
Subtype Category Schedule by Complete by 1 Bridge Routine 2 days 15 days 2 Building relocation road inspections Routine 1 day 5 days 3 Contract / Engineer required Routine 1 day 5 days 4 Corrugations Routine 2 days 15 days 5 Culvert Urgent 4 hours 3 days 5 Culvert Routine 2 days 15 days 6 Flooding Urgent 4 hours 3 days 7 Footpath Issues Routine 2 days 15 days 8 Kerb or Channel Issues Routine 2 days 15 days 9 Litter Routine 2 days 15 days 10 Mowing / Vegetation Control Routine 2 days 60 days 11 Potholes Routine 1 day 15 days 12 Rapid Number plates Routine 1 day 10 days 13 Roading Team to Investigate Routine 1 day 5 days 14 Signs / Sight rails / markings Urgent 1 day 3 days 14 Signs / Sight rails / markings Routine 2 days 15 days 15 Slips Emergency 30 minutes 2 days 16 Streetlights Urgent 4 hours 2 days 16 Streetlights Routine 4 days 30 days 17 Surface - Frost / Grit / Oil / Accident Urgent 1 day 5 days 18 Trees - Fallen or standing Urgent 1 day 5 days 18 Trees - Fallen or standing Routine 2 days 15 days 19 Underslip Emergency 30 minutes 2 days 20 Water channel issues (rural) Urgent 1 day 3 days 21 Water channel issues (rural) Routine 2 days 15 days
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 64
Major Capital Projects
Carried EAP Actual Forward 2017/18 2017/18 Project Description Budget Notes $000 $000 $000 B152 Waitewhenua Rail Overbridge - - 617 15% LOS, 85% Renewals. Renewal (Waitewhenua Road)
B292 Mangateitei Rail Overbridge 397 - - 15% LOS, 85% Renewals. Renewal (Mangateitei Road)
B404 Ruapehu Rail Overbridge - 800 - 15% LOS, 85% Renewals. Renewal
Bus shelter Renewals 29 11 40 Change from Renewals to LOS as expenditure was three new shelters. Drainage Renewals - 502 366 15% LOS, 85% Renewals.
Facility Roads Capital 21 22 43 15% LOS, 85% Renewals.
Footpath Renewals 57 187 244 Renewals.
Footpath Safety Improvements - 29 29 LOS.
Kerb and Channel Development - 44 66 LOS.
Level Crossing – Active Warning Sign - 25 - 85% LOS, 15% Renewals. Onematua Road
Minor Improvements 121 1,208 1,333 80% LOS, 20% Renewals.
Misc. Minor Capital Projects - 189 - 60% LOS. 40% Renewals.
Motorist Service and Tourist Info Signs 70 30 - Change from 50% LOS, 50% Renewals to 100% LOS as they are all new signs. Ohakune Carrot Park and Intersection - 150 - 100% LOS.
Ohakune Mountain Road Capacity 417 - - 60% LOS, 40% Renewals. Improvement
Pavement Rehabilitation - 2,441 2,154 15% LOS, 85% Renewals.
Seal Extensions 12 - 104 Growth.
Sealed Road Surfacing - 1,176 1,341 Renewals.
Street Flags District - 17 15 Renewals.
Structures Components Replace - 748 480 15% LOS, 85% Renewals. Traffic Services Renewals - 369 227 Renewals.
Transport Park and Ride Project - 350 - 100% LOS.
Under Verandah Lighting Renewals - 4 4 Renewals.
Unsealed Road Metalling - 1,033 870 Renewals.
Total 1,124 9,335 7,933
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Note that the figures of some projects are not specifically detailed in the LTP or EAP in a certain year but are planned to be performed over the ten-year period of the LTP.
Capital Projects Carried Forward Sometimes a capital project that was budgeted for is not undertaken or it is started but not completed, in the financial year for which it was budgeted. If the project is one that Council believes should be completed, it may decide to carry forward the unspent budget to the following financial year.
Carried forward capital projects in this Activity are:
Work in Progress
Opening Closing Project Description WIP WIP Notes $000 $000 B152 Waitewhena Rail Overbridge Renewal 481 - Completed in 2017/18. (Waitewhena Road)
B292 Mangateitei Rail Overbridge Renewal 21 108 Work in Progress. Started June (Mangateitei Road) 2016. To be completed in 2018/19.
Motorist Service and Tourist Info Signs - 29 To be used for Mangapurua interpretation signage, Heritage Trail work, complete town Welcome Sign project, carry out 8-Mile sign project for Councillors.
Transport Park and Ride Project - 19 Started planning 2017/18. Construction to be completed in 2018/19.
Ohakune Carrot Carpark and Intersection - 412 Footbridge still to be constructed in 2018/19.
Total 502 568
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 66
Highlights for the Year
Contract Renewals Aggregate supply unit price negotiations are undertaken annually and in effect create new supply values annually.
Contract 1730 Professional Services for Land Transport achieved a one year extension.
Contract 1721 Pavement Rehabilitation, Contract 1722 Reseals and Contract 1723 Bridges completed their first year of extension.
Unsubsidised Construction The Conway Street Footpath Safety Improvement from Goldfinch Street to Miro Street, Ohakune was completed in April 2018. Footpath renewal work occurred in Waiouru on Ngauruhoe and Rangipo Streets, in Raetihi on Shannon Street, Manunui on Rimu and Miro Streets and Taumarunui had Taupo Road, Taitua Street, Marae Street, Huia Street and Miriama Street sections replaced with concrete. A total of 1,404m of footpath has been constructed, repaired or renewed.
The Ohakune Carrot carpark project was officially opened on 25 May 2018. The roadway was upgraded to 170m long and chip sealed, 235m of footpath, 690m kerb and channel constructed with the carpark area asphalted. Seven new streetlights and three uplights for the carrot installed with upgraded water and sewer for the new Exeloo toilet block and three paved crossings for access.
Subsidised Construction Heavy Maintenance and Improvements – Three River Valley meetings were attended during the year and various types of work requests were discussed from plant pests to bridge replacements. Minor Improvement works at 49 main sites were completed District wide during the year to match available budgets and 37 other improvements such as sight rails, culvert extensions and rock wall scour protection undertaken
Flood Damage - Torrential rain on 7/8 March 2018 caused an estimated $1,045,000 damage to 63 roads from Taumarunui to Whakahoro over 49 major sites. These works came on top of works carried over from the Tasman Tempest on 12 March 2017 where 47 sites over 21 roads accompanied Cyclone Debbie on 4-6 April 2017 that affected 51 roads. The 2016/17 sites were carried forward for reinstatement during 2017/18 (77) with 11 to be monitored.
Lacys Suspension Bridge (closed for one month) and Tawata Road 11.74km.
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Renewals . Reseals – The 2017/18 work programme is mainly completed by J&J Walters Ltd, achieving a total resurfacing length of 31.65km, 6.4% of the sealed network.
. Drainage – Culverts throughout the District are installed, replaced and extended on an as required basis and within most major work activities. 81 culverts, ranging in size from 225mm to 1600 mm, with lengths from 5.0m to 20.0m totalling 884m, have been installed.
. Metalling – A total of 50,583 tonne of aggregate (30,234 m³) was applied to the unsealed Ruapehu road network with a further 42,783 tonne supplied for the sealed pavement renewals.
. Kerb & Channel – The construction of kerb and channel is usually undertaken in conjunction with the reseals and pavement rehabilitation activities. This year, 188m of K&C on the Ohakune Mountain Road was replaced with 900m of new kerb, 690m at the Ohakune Carrot Carpark, Ohakune with a further 100m on Conway Street Ohakune, 40m on Ngauruhoe Street and 135m on State Highway 1 Waiouru opposite the Museum.
Pavement Rehabilitation . Council seeks to achieve 7.0km of pavement rehabilitation per season to meet the target lengths in the Land Transport Asset Management Plan. The programme this year included 560m of seal extension within Owhango village.
. The programme slipped early in the season and in November additional resources were brought in to assist with 1.8km of pavement rehabilitation on Ohura Road and 0.75km length at Ongarue Waimiha Road deferred to 2018/19.
The below table provides the list of sites for 2017/18.
Pavement Rehabilitation Sites 2017/18 Road Name RP Location (km) Length (m) Status Omatane Road, Owhango – Sealing 0.12 - 0.44 320 Sealed 20/09/17 Onge Street, Owhango – Sealing 0.00 – 0.24 240 Sealed 20/09/17 Whangaehu Valley Road 1.69 - 2.49 800 Sealed 7/11/17 Ongarue Waimiha Road 17.56 - 18.045 485 Construction started 12/6/18 Ongarue Waimiha Road 13.094 – 13.850 756 Deferred to 18/19 Ongarue Waimiha Road 2.86 – 3.615 755 Sealed 24/1/18 Ohura Road 32.16 – 33.01 850 Sealed 4/5/18 and 31/5/18 Ohura Road 33.70 – 34.60 900 Sealed half on 27/4/18 Ohakune Mountain Road 2.84 – 5.096 2,256 Sealed top section 1/6/18 and bottom section 5/7/18 Total 7,362
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 68
Bridges . In the context of the 30-year infrastructure plan, the total forecast replacement expenditure on bridges is $22m. Ninety bridges are due for replacement by 2044 with estimated replacement cost (2013 dollars) of $15m. The estimated component replacement forecast (where only part of a bridge is replaced, such as decks, beams, rails) is $7m.
. Ruapehu District Council has been progressively renewing its bridge assets utilising structural component replacements. Deck, component and handrail replacement was undertaken on several bridges in the 2017/18 FY year and completed by 30 June. Emmett’s undertook structural component replacement and repairs on five structures (Poro-o-Tarao, Hoihenga Suspension Matahiwi Suspension, Haitana’s Suspension and Raetihi Pipiriki Road Papa culvert roof).
. The 2017/18 year saw another unplanned repair – this time on Crotons Road Bridge due to increased flood damage undermining bridge abutments. Contractors were able to install a temporary bridge to full Class 1 status until the bridge is renewed in 2018/19. Reactive bridge renewal is likely to increase as forest harvest and climate change effects become more known.
New bridge beams and deck at Poro O Tarao Road, Waimiha.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 69
Funding Impact Statement
Ruapehu District Council for the year ending 30 June 2018 Land Transport Activity
LTP LTP Actual 2017 2018 2018 $000 $000 $000 Sources of operating funding General rates, uniform annual general 7,266 7,423 2,299 charges, rates penalties Targeted rates 71 72 5,227 Subsidies and grants for operating purposes 4,983 5,163 5,294 Fees and charges 97 100 144 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement 150 152 155 fees, and other receipts Total operating funding (A) 12,567 12,910 13,119
Applications of operating funding Payments to staff and suppliers 7,399 7,562 7,810 Finance costs 635 654 416 Internal charges and overheads applied 2,372 2,472 2,426 Other operating funding applications - - - Total application of operating funding (B) 10,406 10,688 10,652 Surplus/(deficit) of operating funding (A-B) 2,161 2,222 2,467
Sources of capital funding Subsidies and grants for capital expenditure 4,929 5,611 4,959 Development and financial contributions 51 52 84 Increase/(decrease) in debt 782 1,028 646 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 5,762 6,691 5,689
Application of capital funding Capital expenditure: - To meet additional demand - - 104 - To improve the level of service 1,873 1,917 2,037 - To replace existing assets 6,050 6,996 5,345 Increase/(decrease) in reserves - - 670 Increase/(decrease) of investments - - - Total applications of capital funding (D) 7,923 8,913 8,156 Surplus/(deficit) of capital funding (C-D) (2,161) (2,222) (2,467) Funding balance ((A-B)+(C-D)) - - -
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 70
STORMWATER AND FLOOD PROTECTION
Introduction Stormwater is rainwater that runs over the ground on its way to a natural watercourse. When rain falls on buildings, car parks, roads, driveways and gardens but does not soak into the ground, it will follow a natural flow path downhill until it reaches a watercourse or is collected by a pipe system.
Where there is development, runoff from properties and roads flows into stormwater systems. The greater the level of development in a catchment, the greater the level of impermeable surfaces (e.g. roofs, driveways and paths) and the greater conversion of rainfall into runoff. If this runoff is not managed, it will cause flooding. Generally, stormwater is directed into channels on roadways or into drains, then into streams and rivers.
Aim of Stormwater Activity and Contribution to Outcomes The Stormwater activity aims to mitigate problems of flooding in urban areas that pose hazards to people, roads and the urban economy. Under the Local Government Act, Council is required to assess water and other sanitary services available to the community, including stormwater drainage.
Council’s stormwater network includes 50km of piped drains and approximately 31km of open drains and 32 natural watercourses within the urban boundary.
The Stormwater activity targets the following Outcomes by providing core services, working towards providing a cleaner and safer environment and by allowing opportunities for community involvement in planning:
. Core infrastructure (water, wastewater, waste management and minimisation, power and roading) keep pace with changing demand.
. That Council plans for and works with the community to ensure that our environment is accessible, clean and safe and that our water, soil and air meet acceptable standards.
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What We Achieved
Key Performance 2016/17 2017/18 2017/18 Level of Service Indicators Commentary Actual Target Actual (Note 1) Stormwater Goal: To provide and maintain an appropriate level of infrastructure. Capacity/degree of The number of - ≤3 - Achieved. protection. flooding events that occur in a territorial authority district (Note 3).
For each event, N/A ≤3 - Achieved. number of habitable There were no flooding floors affected (Note events during 2017/18. 4) (per 1,000 properties connected (Note 2) to system).
Environmental Compliance with N/A ≤2 - Achieved. impacts are resource consents There are no resource managed and for discharges from consents for resource consents the stormwater Stormwater in the complied with. system as measured townships. by the number of abatement notices.
Compliance with N/A ≤1 - Achieved. resource consents There are no resource for discharges from consents for the stormwater Stormwater in the system as measured townships. by the number of infringement notices received.
Compliance with N/A ≤1 - Achieved. resource consents There are no resource for discharges from consents for the stormwater Stormwater in the system as measured townships. by the number of enforcement orders received.
Compliance with N/A - - Achieved. resource consents There are no resource for discharges from consents for the stormwater Stormwater in the system as measured townships by the number of convictions.
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Key Performance 2016/17 2017/18 2017/18 Level of Service Indicators Commentary Actual Target Actual (Note 1) Stormwater Goal: To provide and maintain an appropriate level of infrastructure.
Responsiveness of Median response N/A 2 hours 1 Achieved. service. time to attend a flooding event (Note 4).
The number of 4.5 ≤15 10.5 Achieved. complaints (Note 5) received about the performance of the stormwater system (per 1,000 properties connected (Note 2) to system).
Notes:
Note 1: There are now mandatory Non‐Financial Performance Measures against which all Stormwater infrastructure in New Zealand are measured. This is the third year these KPIs have been measured.
Note 2: The number of connections is calculated from the number of customers charged in their rates for use of Council Stormwater services (calculated at 5,331 as at 1 July 2017).
Note 3: A flooding event means an overflow of stormwater from a Council stormwater system that enters a habitable floor.
Note 4: A habitable floor refers to a floor of a building (including a basement) but does not include ancillary structures such as stand-alone garden sheds or garages.
Note 5: There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 73
Capital Projects
Carried EAP Actual Project Description Forward Notes 2017/18 2017/18 Budget $000 $000 $000 District wide projects - 46 - 20% Growth, 75% LOS & 5% Renewal. National Park: - open channel drain reformation - 5 - Renewal. - mains replacement - 5 - Renewal. Ohakune: - channel B flood control - 97 18 LOS. - mains rehabilitation / 58 - 15 Renewal. replacement - open channel drain reformation - 11 - Renewal. Ohura: - open channel drain reformation 5 7 - Renewal. Owhango: - main replacement - 7 - Renewal. - open channel drain reformation 7 3 30 Renewal. Raetihi: - open channel drain reformation - 8 - Renewal. - stormwater replacement - 5 - Renewal. Rangataua: - open channel drain reformation - 3 - Renewal. Raurimu: - asset data - 1 - - open channel drain reformation - 3 24 Renewal. Taumarunui: - condition assessment - 8 - LOS - main replacement 100 57 - Renewal. - open channel drain reformation - 11 - Renewal. - Turaki & Maata Streets flood 100 - - LOS control Waiouru: - main replacement - 7 - Renewal Total 270 284 87
Work in Progress
Opening Closing Project Description WIP WIP Notes $000 $000 National Park drain reformation 2 - Renewal. Completed. Ohakune Miro Street drain flood control 12 - LOS. Completed. Ohakune condition assessment 5 10 LOS. Ongoing. Ohakune channel B – flood control 6 - LOS. Completed. Ohakune main replacement - 8 Renewal. Ongoing Ohura flood warning system 18 18 Renewal. Ongoing. Pungapunga stream stopbanks - 15 Renewal. Ongoing. Raurimu open channel drain reformation 23 - Renewal. Completed. Taumarunui drain reformation 9 1 Renewal. Ongoing. Taumarunui survey networks – CCTV 47 47 LOS. Ongoing. Taumarunui stopbank infrastructure LOS. Ongoing. 14 17 resource consent Total 136 116
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 74
Highlights for the Year
The stormwater system has, in general, operated well over the year following major rain events with no effect on habitable floors across communities. There have been a number of incidents where water has surrounded houses and run through some garages in storm events which has resulted in a greater number of Requests for Service over this year due to a wet winter.
Council has been gathering data to set out the next phase of stormwater works and align with Regional Council scheme works in Taumarunui and proposed works in Ohakune. Council undertook Closed Circuit Television works to prioritise the next section of stormwater pipe replacement. In addition, Cheal were commissioned to provide a review of the stormwater system, both public and private, around the main centre in Ohakune, which will contribute to the understanding of the collection system.
Following major rain events across the district, culvert and drain clearing has been carried out in Taumarunui, Ohakune and Raetihi, which has reduce surface flooding in some areas. Alongside this, jet rodding of tree roots from a number of lines which have reduced capacity of pipes was carried out, as well as a variety of small stormwater replacement across the township including Arawa Street, Ohakune.
Council has lodged an infrastructure consent with Horizons Regional Council for works within the stopbank area, which meets compliance regulations and allows works to commence next summer on the Tuku Street drain. This year stormwater issues in Taupo Road, Taumarunui were alleviated by removing an undersized culvert in the saleyards area of Wackrow Street.
In Raurimu, a joint effort with Council and a number of landowners to clear their private drains was undertaken. This has removed the ponding and overland flow paths occurring during rainfall events, which were resulting in the inundation of the septic disposal fields within the community. These works have reduced health hazards and provide capital improvements within the village.
Owhango village has a new stormwater main and culvert installed in Okioi Street to compliment the roading improvement programme in this area.
The Raetihi Promotions Group, Horizons Regional Council and Ruapehu District Council have been working jointly along the Makotuku River to clear willows from the riverbank. This work was to meet a number of objectives, including increasing the capacity of the river bed, allowing for restoration planting and engagement with the river space within the township.
Reformation works to help with community engagement has also been undertaken in Ohakune
Clearing of drain and blocked Stormwater pipe.
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The Nga Wai Ora O Te Whangaehu Catchment Working Party was established by Ruapehu District Council with a Terms of Reference for the 20 nominated representatives who utilise the resources of the catchment to develop and implement an integrated catchment action plan to:
(a) Preserve natural heritage for future generations. (b) Enhance biodiversity. (c) Protect and restore fresh water habitat. (d) Enable prosperity. (e) Tackle plant and animal pests. (f) Enhance recreational opportunities. (g) Ensure safe drinking water. (h) Minimise flood risk. (i) Improve and share knowledge.
The Whangaehu Catchment group was formed from a Wai group discussion around what others were doing which influenced the awa. Representatives include Ngāti Haua, Ngāti Rangi, Uenuku, Nga Wairiki - Ngāti Apa, Horticulture NZ, Fish and Game, Department of Conservation, Ohakune Vegetable Growers, Horizons Regional Council, Federated Farmers, Winstone Pulp and Paper, Ernslaw One, Genesis Energy, Beef & Lamb NZ, New Zealand Defence Force, Whanganui District Council, Rangatikei District Council, Atihau-Whanganui Incorporated. The group have sought funding from the Ministry of the Environment Freshwater Improvement Fund for ecological improvements. Horizons Regional Council lead the application from the various parties and has secured funding to spend approximately $1m in the catchment over the next three years. Ruapehu District Council have facilitated the group and supported the application, with Mayor Don Cameron sitting on the Governance Board.
Willow removal on Makotuku River.
Discussing clearing of rubbish for Stormwater control replanting in Ohakune with RDC Councillor Rabbit Nottage.
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Funding Impact Statement
Ruapehu District Council for the year ending 30 June 2018 Stormwater Activity
LTP LTP Actual 2017 2017 2018 $000 $000 $000 Sources of operating funding General rates, uniform annual general 412 421 409 charges, rates penalties Targeted rates 412 421 430 Subsidies and grants for operating purposes - - - Fees and charges 4 4 4 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement - - - fees, and other receipts Total operating funding (A) 828 846 843
Applications of operating funding Payments to staff and suppliers 319 315 270 Finance costs 44 51 25 Internal charges and overheads applied 119 124 115 Other operating funding applications - - - Total application of operating funding (B) 482 490 410 Surplus/(deficit) of operating funding (A-B) 346 356 433
Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - 26 Increase/(decrease) in debt 173 150 (25) Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 173 150 1
Application of capital funding Capital expenditure: - To meet additional demand 44 24 - - To improve the level of service 163 167 9 - To replace existing assets 114 162 24 Increase/(decrease) in reserves 198 153 401 Increase/(decrease) of investments - - - Total applications of capital funding (D) 519 506 434 Surplus/(deficit) of capital funding (C-D) (346) (356) (433) Funding balance ((A-B)+(C-D)) - - -
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WASTEWATER
Introduction The purpose of the Wastewater activity is to collect and dispose of wastewater in an effective and environmentally friendly manner. Effective and efficient wastewater collection and disposal is essential to protect the environment and to maintain public health. It is an essential service for public good.
In order to ensure the successful disposal of wastewater in an environmentally sustainable manner and to promote and protect public health, Council provides treatment plants at Taumarunui, National Park Village, Ohakune, Pipiriki, Raetihi and Rangataua. In addition, Council co-operates with the NZ Defence Force authorities in Waiouru to provide wastewater services for the town.
Aim of Wastewater Activity and Contribution to Outcomes Council is committed to treating wastewater in such a way as to improve, promote and protect public health and the environment. Council aims to ensure that this activity is provided in the most cost-effective and efficient manner in accordance with the agreed Asset Management Plan.
Council’s wastewater assets consist of six wastewater treatment plants, 107km of pipes, 18 pump stations, 1,418 manholes and 4,674 rateable service connections.
The wastewater activity targets the following Outcomes by providing core services, working towards providing a cleaner and safer environment and by allowing opportunities for community involvement in planning:
. That the impact of waste on the environment is minimised.
. Quality regulation, regulatory services and infrastructure support healthy communities.
. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and roading) endeavours to keep pace with changing demand.
. Regulatory services and reliable infrastructure help the economy prosper and support a range of quality retail, entertainment, educational, healthcare, businesses and services that Council plans for and works with the community to ensure that our environment is accessible, clean and safe and that our water, soil and air meet acceptable, affordable standards.
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What We Achieved
Key Performance 2016/17 2017/18 2017/18 Level of Service Indicators Commentary Actual Target Actual (Note 1) Wastewater Goal: To provide and maintain an appropriate level of infrastructure. Environmental Number of dry weather 1.1 <7 2.2 Achieved. sustainability. wastewater overflows from system, expressed per 1,000 connections (Note 3) to that system.
Compliance with - ≤2 - Achieved. resource consents for discharges from the wastewater system as measured by number of abatement notices.
Compliance with - ≤1 - Achieved. resource consents for discharges from the wastewater system as measured by number of infringement notices received.
Compliance with - ≤1 - Achieved. resource consents for discharges from the wastewater system as measured by number of enforcement orders received.
Compliance with - - - Achieved. resource consents for discharges from the wastewater system as measured by number of convictions.
Responsiveness to Median time (Note 2) 0.56 hours 2 hours 0.6 Achieved. infrastructure to attend to (Note 5). issues. wastewater overflows resulting from a blockage or other fault.
Median time (Note 2) 4.0 hours 6 hours 3.9 Achieved. to resolve sewage (Note 5). overflows resulting from a blockage or other fault.
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Key Performance 2016/17 2017/18 2017/18 Level of Service Indicators Commentary Actual Target Actual (Note 1) Wastewater Goal: To provide and maintain an appropriate level of infrastructure. Public safety Total number of <25 Achieved. continuity of complaints (Note 4) wastewater received about any of collection system. the following (expressed by 1,000 connections (Note 3) to the territorial authority’s wastewater system):
(a) Wastewater (a) 0.7 (a) 0.6 odour.
(b) Wastewater (b) 0.7 (b) 2.1 system faults.
(c) Wastewater (c) 5.2 (c) 5.3 system blockages. (d) 0 (d) The territorial (d) 0.0 authority’s response to issues with its wastewater system.
Notes:
Note 1: There are now mandatory Non‐Financial Performance Measures against which all wastewater infrastructure in New Zealand are measured. This is the third year these KPIs have been measured.
Note 2: The times shown for “attendance” and “resolution” are reported by the service provider, Veolia as part of their contracted responsibilities. This includes travel time. The accuracy of these has not been verified by Council.
Note 3: The number of connections is calculated from the number of customers charged in their rates for use of Council wastewater services (calculated at 4,674 as at 1 July 2017).
Note 4: There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence.
Note 5: The median time presented is based on calls that have been raised directly with Council and not Council’s contractor Veolia.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 80
Capital Projects
Carried EAP Actual Project Description Forward Notes 2017/18 2017/18 Budget $000 $000 $000 District wide: Critical spares 36 20 - LOS. National Park: - Above ground asset renewals - 3 - Renewal. - I & I reduction/main refurbishment - 10 - Renewal. - WWTP wave band repair 20 - - Renewal. - WWTP upgrade 584 20 - 75% LOS, 25% Growth. Ohakune: - Above ground asset renewals - 23 - Renewal. - I & I reduction - 26 - Renewal. - Main refurbishment - 80 - Renewal. - Snowmass Drive WWPS upgrade - - 18 LOS. - WWTP resource consent 83 118 24 LOS. Pipiriki: - Treatment facilities renewals - 4 4 Renewal. Raetihi: - Above ground asset renewals - 6 - Renewal. - Aerator upgrades - - 13 90% LOS, 10% Growth. - Highway WWPS asset renewal - 9 9 Renewal. - Main relining - stage 2 58 92 37 Renewal. - WWTP upgrade - - 10 LOS. Rangataua: - Facilities plant upgrade 18 - 10 LOS. - WWPS asset renewal - - 4 LOS. - WWTP asset renewal - - 4 Renewal. Taumarunui: - Above ground asset renewal - 30 49 Renewal. - Bullians Ave WWPS Health & Safety - 20 13 Renewal. - Hikumutu resource consent 40 - - LOS. - Huia St WWPS asset renewal - 6 2 Renewal. - Main refurbishment - 100 103 Renewal. - Sunshine Rd WWPS asset renewal - 15 48 Renewal. - Tubby Woods WWPS asset renewal - - 6 LOS. - Tuku St WWPS asset renewal 6 5 6 Renewal. - Network condition assessment - - 61 LOS. - WWTP asset renewal - 54 31 Renewal. Waiouru: - Andrews Drive WWPS - 3 3 Renewal. - Asset information - 12 - LOS. - Network renewals - - 18 Renewal. - Ruanui Street WWPS asset renewal - 14 38 Renewal. Total 845 670 511
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Work in Progress
Opening Closing Project Description WIP WIP Notes $000 $000 District Wide: - SCADA upgrade - 3 Ongoing. LOS. - Strategic design works - 3 Ongoing LOS. National Park: - Headworks & treatment resource 15 25 Ongoing. LOS. consent - Resource consents 121 129 Ongoing. LOS. - WWTP upgrade preliminary work 21 21 Ongoing. LOS. Ohakune: - Headworks & treatment resource 8 17 Ongoing. LOS. consent - I&I reduction - 6 Ongoing. Renewal. - Resource consents 127 134 Ongoing. LOS. - WWTP – renewals 15 7 Ongoing. Renewal. Raetihi: - Resource consent 88 98 Lodged with Horizons RC. LOS. - Sludge line installation 24 - Complete. LOS. - Wastewater relining – stage 2 27 27 Ongoing. Renewal. - WWTP – upgrade 10 - Complete. LOS. Rangataua: - Resource Consent 40 44 Lodged with Horizons RC. LOS. - WWTP modification and upgrade 10 - Complete. LOS. Taumarunui: - Bullians Ave WWPS Health & Safety - 1 Ongoing. Renewal. - CCTV inspections 46 - Complete. LOS. - Hikumutu WWTP asset renewal 42 19 Ongoing. Renewal. - Hikumutu sewerage resource consent 72 75 Lodged with Horizons RC. LOS. - Huia St WWPS asset renewal - 1 Ongoing. Renewal. - Sunshine Rd WWPS switchboard 11 - Complete. Renewal. replacement - Tuku Street WWPS asset renewal 6 - Complete. Renewal. - Tubby Woods WWPS asset renewal 2 - Complete. Renewal. - Victory Bridge WWPS asset renewal - 56 Ongoing. Renewal. - Wastewater mains 103 - Complete. Renewal. Waiouru: - Andrews Drive WWPS: Asset renewal 38 - Complete. Renewal. Total 826 666
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Highlights for the Year
Wastewater pump station improvements are continuing as the sites reach the end of their life. Increased ventilation and rails were installed to reduce the Health and Safety risk by removing the confined space classification off the pump stations, and working at heights risk.
Wastewater Pump Station switch board replacements have been installed at Sunshine Road, Taumarunui, Ruanui Street Pump Station, Waiouru and Andrews Drive, Waiouru Military Camp. Along with general asset renewals such as pumps, reflux valves within the facilities.
Safety rails were installed at the Tubby Woods, Huia Street and Matai Large Wastewater Pump Stations (Taumarunui) as part of the Health and Safety upgrade to reduce the risk of working at heights at these sites.
New Ultra Violet Index sensors have been installed at the Hikumutu Wastewater Treatment Plant (Taumarunui) to improve UV disinfection of effluent.
Backflow prevention devices were installed across the district in all Council owned Wastewater Treatment Plants and Wastewater Pumping Stations.
The number three aerator at the Ohakune Wastewater Treatment Plant was reinstalled following repair with four aerators now working onsite.
Rangataua Wastewater Treatment Plant has had an upgrade to the solar panel onsite to improve the flow meter reading and SCADA reliability as part of the resource consent monitoring.
Backflow prevention device
Refurbishment work on the Taumarunui Wastewater network was completed with the relining of the existing Wastewater pipes:
. Hospital Hill, 150mm Conc, 175 metres. . Taupo Road, 150mm AC, 59 metres. . Rangaroa Road, 150mm AC, 40 metres.
Relining of Hospital Hill, Taumarunui.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 83
The Pipiriki irrigation field had large trees removed following storm damage from last year.
Resource Consents renewals for Rangataua, Raetihi, Ohakune and National Park Wastewater Treatment Plants were lodged so the old consents remain active until the new consents have been completed. Discussions with both Horizons Regional Council and Iwi have continued with a variety of reasons consents have been placed on hold as more information is being gathered. Ruapehu District Council, with support from Nga Wai Ora O Te Whangaehu Working Party group sought funding for wastewater treatment plant and land disposal improvement to the Ministry of Environment Freshwater Improvement Fund but were unsuccessful. A funding application was also made to the Ministry of Business Innovation and Employment for Tourism Infrastructure Funding for Raetihi and Ohakune townships. The bid was partially successful with funding provided for the feasibility and design of a land passage disposal system being successful.
Wai Group exploring land passage options for wastewater treatment systems.
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The status of Resource Consents for water plants is as follows:
Town Expiry Date Notes
Taumarunui 1 March 2003 Under application with Horizons Regional Council (HRC) for review of conditions. Note 1.
National Park 17 November 2015 Application lodged with HRC 17 August 2015. This consent sits with HRC for decisions around the notification of the consent. Note 1.
Raetihi 17 November 2015 Application lodged with HRC 17 August 2015. RDC has requested that this consent be put on hold to allow for an outcome of a request to the Government Tourism Infrastructure Fund to be notified. A successful application for funding will potentially affect the upgrades undertaken at the Raetihi Wastewater Plant. Note 1.
Ohakune 17 November 2015 Application lodged with HRC 17 August 2015. RDC has requested that this consent be put on hold to allow for an outcome of a request to the Government Tourism Infrastructure Fund to be notified. A successful application for funding will potentially affect the upgrades undertaken at the Ohakune Wastewater Plant. Note 1.
Pipiriki 1 July 2035 Current.
Waiouru* Unknown Current (NZ Army).
Rangataua December 2005 Application lodged with HRC 30 June 2014. RDC is in the process of responding to an s92 request for further information from HRC. Note 1.
*Wastewater disposal for Waiouru Township is procured from the New Zealand Defence Force.
Notes: Note 1: The Wastewater Plant continues to operate under the existing consent until the new consent is granted.
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Funding Impact Statement
Ruapehu District Council for the year ending 30 June 2018 Wastewater Activity
LTP LTP Actual 2017 2018 2017 $000 $000 $000 Sources of operating funding General rates, uniform annual general (32) (30) (55) charges, rates penalties Targeted rates 2,379 2,583 2,367 Subsidies and grants for operating purposes - - - Fees and charges 80 84 77 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement - - - fees, and other receipts Total operating funding (A) 2,427 2,637 2,389
Applications of operating funding Payments to staff and suppliers 1,025 1,141 798 Finance costs 255 300 119 Internal charges and overheads applied 407 424 394 Other operating funding applications - - - Total application of operating funding (B) 1,687 1,865 1,311 Surplus/(deficit) of operating funding (A-B) 740 772 1,078
Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions 31 32 22 Increase/(decrease) in debt 1,045 854 164 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 1,076 886 186
Application of capital funding Capital expenditure: - To meet additional demand 1 7 1 - To improve the level of service 1,238 1,083 273 - To replace existing assets 167 867 6 Increase/(decrease) in reserves 410 (299) 984 Increase/(decrease) of investments - - - Total applications of capital funding (D) 1,816 1,658 1,264 Surplus/(deficit) of capital funding (C-D) (740) (772) (1,078) Funding balance ((A-B)+(C-D)) - - -
The wastewater users of National Park are currently repaying the general ratepayer for an historical subsidy by the District. This shows as increased Targeted Rates and negative General Rates in this Funding Impact Statement.
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WATER SUPPLY
Introduction The purpose of the Water Supply activity is to supply safe drinking water to the communities of the district. Water supply is essential to run households, maintain public health and sustain Economic Development. Council is committed to providing a water supply service that meets the needs of the community.
Council’s 2017 valuation report the water supply service consists of 6 treatment plants, 16 reservoirs, 203kms of pipelines and approximately 4,246 (5,425 rateable) service connections and four pump stations .
Aim of Water Supply Activity and Contribution to Outcomes Water supply is one of the essential services Council supplies to the community. Council has legal obligations to supply water. Council is required under the LGA to assess the need and provision of water services, including water supply (Sections 124 to 126), to retain its water supplies (Section 130) and has a duty under Section 23 of the Health Act 1956 to improve, promote and protect Public Health. Water supplies can be closed or transferred with the agreement of local communities.
The Water Supply activity targets the following Outcomes, by providing core services, working towards providing a cleaner and safer environment and by allowing opportunities for community involvement in planning.
. Quality regulation, regulatory services and infrastructure support healthy communities.
. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and roading) endeavours to keep pace with changing demand.
. Regulatory services and reliable infrastructure help the economy prosper and support a range of quality retail, entertainment, educational, healthcare, businesses and services.
. That Council plans for and works with the community to ensure that our environment is accessible, clean and safe and that our water, soil and air meet acceptable, affordable standards. Excellent standards of safety and welfare are promoted and respected.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 87
What We Achieved
Key Performance 2017/18 Level of Service Indicators 2016/17 2017/18 Actual Commentary Target (Note 1) Actual
Water Supply Goal - To provide and maintain an appropriate level of infrastructure to the communities defined to be supplied potable water by Council. Quality of Drinking Extent to which Ohura =Y Ohura =Y Ohura = Y Achieved. Water - continuity of drinking water Source: Drinking Taumarunui =Y Taumarunui =Y Taumarunui =Y potable water supply supplies comply Water Online, to applicable with Part 4 Owhango =Y Owhango =Y Owhango = Y Ministry of Health. community areas. (bacteria National Park National Park National Park = compliance =Y =Y Y criteria) of the Drinking Water Raetihi =N Raetihi =Y Raetihi = Y Standards (DWS). Ohakune =Y Ohakune =Y Ohakune = Y
Extent to which Ohura =N Ohura =N Ohura = N Not Achieved. drinking water Source: Drinking Taumarunui =N Taumarunui =N Taumarunui = N supplies comply Water Online, with Part 5 Owhango =N Owhango =N Owhango = N Ministry of Health. (protozoal National Park National Park National Park = compliance =N =N N criteria) of the DWS (Note 9). Raetihi =N Raetihi =N Raetihi = N Ohakune =N Ohakune =N Ohakune = N
Responsiveness. Percentage of real 53% <25% all 33.25% Not Achieved. water loss from supplies There is an ongoing the networked replacement reticulation system programme in the (Note 8). Ruapehu District, which will continue with improvements in the reduction of water loss from the RDC’s networks. An important factor in capturing water loss in the district is the significant number of unknown/unauthoris ed connections. Council programme of capturing water flows across the network through statistical meters is increasing the understanding of water movement and increasing our focus on high use areas.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 88
Key Performance 2017/18 Level of Service Indicators 2016/17 2017/18 Actual Commentary Target (Note 1) Actual
Water Supply Goal - To provide and maintain an appropriate level of infrastructure to the communities defined to be supplied potable water by Council. Median time 0.6 2 hours 2.9 Not Achieved. (Note 2, Note 5) to attend to an urgent (Note 6) callout (i.e. loss of water supply).
Median time 2.1 6 hours 3.1 Achieved. (Note 2) to resolve an urgent (Note 6) callout (i.e. loss of water supply).
Median time 1.4 36 hours 1.5 Achieved. (Note 2, Note 5) to attend non-urgent (Note 7) callouts (i.e. no loss of water supply).
Median time 4.3 72 hours 5 Achieved. (Note 2) to resolve non-urgent (Note 7) callouts (i.e. no loss of water supply). Public safety Total number of <25 Achieved. pressures and flow. complaints (Note 4) Continuity of received, District supply and wide, about: response times – total complaints (a) Drinking water (a) 0.8 (a) 1.8 this year 10.3 and clarity. last year only one
complaint in June (b) Odour. (b) 0.6 (b) 0.9 from the public.
(c) Taste. (c) 1.1 (c) 3.3
(d) Pressure and (d) 7.4 (d) 11.6
flow.
(e) Continuity of (e ) 1.1 (e ) 10.3 supply and response times expressed per 1,000 connections (Note 3) to the networked reticulation systems.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 89
Key Performance 2017/18 Level of Service Indicators 2016/17 2017/18 Actual Commentary Target (Note 1) Actual
Water Supply Goal - To provide and maintain an appropriate level of infrastructure to the communities defined to be supplied potable water by Council. The normal Normal 500 Normal demand Not Achieved. demand for demand (using (using Usually See Note 11. drinking water Usually Resident The Ruapehu (litres/day/person). Resident Population) = District has a large Population) = 680 number of visitors 665. which results in the Peak demand Peak demand appearance of high (using Peak (using Peak volumes of water Population) = Population) = being used by an apparently small 283. 275 Usually Resident Population (URP). The significance of the visitor numbers on the apparent water usage is demonstrated by the much lower normal demand for drinking water using Peak population figures.
Notes:
Note 1: Mandatory Non‐Financial Performance Measures, against which all water infrastructure in New Zealand are measured, were introduced by the Department of Internal Affairs in 2014.
Note 2: The times shown for “attendance” and “resolution” are reported by the service provider, Veolia as part of their contracted responsibilities. This includes travel time. The accuracy of these have not been verified by Council, however, audits and GPS checks are conducted upon job completion.
Note 3: The number of connections is calculated from the number of customers charged in their rates for use of Council water services (calculated at 5,425 in July 2017).
Note 4: There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence.
Note 5: The median time presented is based on calls that have been raised directly with Council and not Council’s contractor Veolia.
Note 6: An urgent call-out is one that leads to a complete loss of supply of drinking water due to a fault or unplanned interruption.
Note 7: A non-urgent call-out is one where there is still a supply of drinking water.
Note 8: Real water loss refers to volumes lost through leaks, bursts or overflows on mains, service reservoirs and services connections, up to the point of the customer meter.
Note 9: The current upgrade of the Raetihi Water Treatment Plant will provide more treatment to ensure any potential contaminants of the supply are removed.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 90
Note 10: Recent upgrades to the National Park and Taumarunui Water Treatment Plants has improved the treatment of water and the ability of the Plants to achieve compliance with Drinking Water Standards New Zealand (DWSNZ). In 2017/18, however, the Plants have struggled to meet criteria at times of increased turbidity in the raw water supply. This typically occurs following heavy rainfall when dirt and debris are washed into the rivers.
Options to resolve the non-compliance of the National Park and Taumarunui Water Treatment Plants with the protozoa criteria for DWSNZ will be investigated in 2018/19.
Note 11: Much of the water in the Ruapehu District is attributed to supply of stock and farm or commercial use, making it difficult to accurately determine that being used solely for human consumption. Although Council has installed further water meters throughout the district in 2017/18 to better inform areas of high water usage, without metering of every property information to determine accurately the normal demand for drinking water remains limited.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 91
Capital Projects
Carried EAP Actual Forward Project Description 2017/18 2017/18 Notes Budget $000 $000 $000 District wide: Critical spares - 5 - LOS. National Park: - Above ground asset renewals - 7 - LOS. - Reservoir inlet chamber 8 - - LOS. - Reservoir liner replacement - - 53 Renewal. - valve & hydrant replacements - 2 - Renewal. - Water meters 27 - - LOS. - WTP resource consent - 10 - LOS. Ohakune: - Asset renewals (replacement and - - 14 Renewal. refurbishment) - Network extensions - 28 - Growth. - Replacement of failed valves and - 6 - Renewal. Hydrants (reactive renewals) - Water mains renewals (includes - 85 118 90% Renewal, 10% Growth. associated valve, hydrant, etc). - Water meters 143 18 - 80% LOS, 10% Growth, 10% Renewal. - WTP: above ground asset renewal - 9 - Renewal. - WTP: Filtration 289 92 617 Renewal. Ohura: - Above ground asset renewal - 5 - Renewal. - Water main replacement - 30 14 Renewal. - WTP asset renewals - 5 - Renewal. - WTP chemical storage 92 39 108 Renewal. Owhango: - Fire supply upgrade 3 - - LOS. - Replacement of failed valves and - 4 - Renewal. Hydrants (reactive renewals) - Water main renewals (includes - 4 - Renewal. associated valve, hydrant, etc). - WTP reservoir asset renewal - 11 - Renewal. - WTP back-up generator - 3 18 LOS. Raetihi: - Fire supply upgrade - 43 - LOS. - Intake resource consent - - 35 91% LOS, 9% Growth. - Sludge & waterline - - 100 LOS. - Valve & hydrant replacements - 5 19 Renewal. - Water main replacement - - 17 Renewal. - WTP & reservoir asset renewal 2,052 265 2,398 LOS. Complete. Taumarunui: - Above ground asset renewals - 10 - Renewal. - Backflow prevention - 4 - LOS. - Manunui reservoir asset renewal - 3 - Renewal. - Matapuna health & safety - 16 22 LOS. - Matapuna intake asset renewals - 10 - Renewal. - Matapuna intake resource consent - - - LOS. - Matapuna water filters - - - LOS. - Matapuna WTP critical spares 18 - - LOS. - Rangaroa reservoir renewal - 3 - Renewal. - Sunshine Rd reservoir renewal - 19 - LOS. - Valve & hydrant replacements 19 11 11 Renewal. - Water main replacement 58 100 - Renewal. - Water meters - 100 - LOS. - WPS switchboard replacements 17 - 66 LOS. - WTP upgrade - - 371 Renewal. Waiouru: - Valve and hydrant replacements - 4 - Renewal. Total 2,726 956 3,981 RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 92
Work in Progress
Opening Closing Project Description WIP WIP Notes $000 $000 District wide: Critical spares 57 - LOS. Completed. National Park: - Resource consent 2 - LOS. Consent lodged with Horizons R.C. - Water meters - 14 LOS. Ongoing. Ohakune: - Offsite SCADA backup - 1 LOS. Ongoing. - Valve & hydrant replacements 9 - Renewal. Completed. - Water main replacement 118 Renewal. Completed. - Water meters 15 28 Renewal 80%, LOS 10%, Growth 10% - WTP resource consent - 1 LOS. Required work for consent. Ohura: - WTP chemical storage - 7 Renewal. Ongoing. - WTP health and safety - 3 LOS. Ongoing. Owhango: - Fire supply upgrade - 1 LOS. Ongoing. - Intake resource consent 39 40 LOS. Required work for consent. Raetihi: - Intake resource consent 24 - LOS. Complete. - Radio network repeater - 10 LOS. Ongoing. - Valve & hydrant replacements 15 - Renewal. Completed. - Water main replacement 19 - Renewal. Completed. - WTP CCTV installation - 2 LOS. Ongoing. - WTP sludge & waterline 75 - LOS. Completed. - WTP & reservoir: Asset renewal 66 - Renewal. Completed. Taumarunui: - Above ground asset renewals 3 - Renewal. - Hospital hill booster pump renewal - 3 Renewal. Completed. - Intake resource consent 80 115 LOS. Consent lodged with Horizons R.C. - Matapuna offsite SCADA backup - 1 LOS. Ongoing. - Matapuna WTP upgrade 2 - LOS. Completed. - Manunui booster WPS 3 - LOS. Completed. - Manunui reservoir asset renewal - 2 Renewal. Ongoing. - PHR&P with cap funding 319 - Renewal. Completed. - Valve & hydrant replacements 3 - Renewal. Completed. - Water main replacement 13 10 Renewal. Ongoing. - Water meters 37 37 LOS. Ongoing. - Water modelling 7 - LOS. Completed. - WPS switchboard replacements 47 41 Renewal. Ongoing. Total 953 316
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 93
Highlights for the Year
The major highlights for the year was the completion of works to upgrade the Raetihi Water Treatment Plant. This increased the stages of water filtration and processing from three to nine stages. The overall cost of the project was over $2.5m, including a grant of around $1.5m under a funding programme from Ministry of Health (MOH) to help small, low social economic communities to improve their drinking water quality and safety.
A community event was held on 5 August 2018, providing the community and interested parties an opportunity for guided tours through the Water Treatment Plant. The tour was also “live-fed” through Ruapehu District Council’s Facebook page. In conjunction with this upgrade a new wastewater line and replacement water main was established from the plant to the town network on Ranfurly Terrace.
Raetihi Water Treatment Plant. November 2017.
Community Event – Open Day at Raetihi Water Treatment Plant, August 2018.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 94
The Ohakune Water Treatment Plant upgrade works to achieve compliance with Drinking Water Standards New Zealand 2008 was brought forward by Council. The Ohakune budgets were reprioritised and agreed by Council to allow works to be completed.
The works included assessing options to improve water compliance by analysing options such as using the old Ongarue Water Treatment Plant filters, refurbishing the DE filters and using chemical coagulation at the plant. Upgrade works included re-engineering a shipping container for chemical treatment plant to allow soda ash dosing, coagulation dosing, flocculation, refurbished DE filters, and a wastewater treatment solution for backwashed water, which was separated from the stormwater onsite. This option was chosen to achieve the deadline of 30 June 2018 and recognise that a future stage will be required to allow for growth of the township.
Ohakune chemical mixers Pipe works Sludge pit from backwash
National Park water reservoir liner renewal was brought forward one year and installed in March 2018 after a significant leak was observed and other programme works were deferred. Surrounding pipeworks and valves were also renewed to increase the robustness of the system. The Drinking Water Supply was not interrupted and the community conserved water during this period.
National Park reservoir new liner installation.
Owhango Water Treatment Plant has a history of power fluctuations and communication losses, therefore a back- up generator has been purchased solely for this plant.
Water safety plans renewal and general audits from the Drinking Water Assessor have been ongoing over this year. Part of the plans include backflow prevention device risk assessment and implementation. Council has installed backflow prevention devices on its high risk sites.
There is also an ongoing programme of installing both statistical meters and extra-ordinary user meters across townships to account for water use in our communities. These meters will assist to identify areas of high use and potential loss within the networks across the towns
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 95
Ohura Water Treatment Plant chemical treatment tanks were at the end of their useful life and were non-compliant with the hazardous substance regulations for the storage, transfer pipes and bunds. The upgrade resulted in four new self bunded tanks, SCADA remote monitoring and alarms for chemical levels in a re-engineered shipping container. This has resulted in a decreased health and safety risk to the operator and the surrounding environment from the hazardous chemicals. Completion of the Ohura chemical storage will trigger a secondary phase of installation of an emergency shower, an eyewash bath along with a generator switch onsite.
At the Taumarunui Water Treatment Plant, the final section of the clarifier ladder was installed this year. Certification of the Ultra-Violet units, pipeworks within the plant and intake has been completed with this upgrade. The Booster water pump and Sunshine pump station switchboards has been completed as part of the ongoing renewal programme.
The status of resource consents for water plants is as follows:
Town Expiry Date Notes
Current. Ohura 14 November 2021
New application lodged with Horizons Regional Council 20 March 2017. RDC is in the process of responding to an s92 Taumarunui 20 June 2017 request for further information from Horizons. Note 1.
New application lodged with Horizons Regional Council 18 Dec 2015. The application remains on hold to allow RDC to consider Owhango 20 March 2016 catchment water allocation in conjunction with the Taumarunui consent. Note 1.
Current. National Park 12 December 2026
New application lodged with Horizons Regional Council 30 Jan 2015. Reconsideration of terminology used in the One Plan by Raetihi 30 April 2015 Horizons has seen a revised application submitted to Horizons on 23 June 2017. Council awaits a response. Note 1.
Current. Ohakune 11 September 2025
Current. Waiouru * Not Applicable
*Water for Waiouru Township is procured from the New Zealand Defence Force.
Notes: Note 1: The Water Supply Scheme continues to operate under the existing consent until the new consent is granted.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 96
Funding Impact Statement
Ruapehu District Council for the year ending 30 June 2018 Water Supply Activity
LTP LTP Actual 2017 2018 2018 $000 $000 $000 Sources of operating funding General rates, uniform annual general (30) (31) (115) charges, rates penalties Targeted rates 3,245 3,276 3,722 Subsidies and grants for operating purposes - - - Fees and charges 350 362 18 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement - - - fees, and other receipts Total operating funding (A) 3,565 3,607 3,625
Applications of operating funding Payments to staff and suppliers 1,551 1,540 1,650 Finance costs 357 364 257 Internal charges and overheads applied 542 565 527 Other operating funding applications - - - Total application of operating funding (B) 2,450 2,469 2,434 Surplus/(deficit) of operating funding (A-B) 1,115 1,138 1,191
Sources of capital funding Subsidies and grants for capital expenditure - - 1,517 Development and financial contributions 31 32 17 Increase/(decrease) in debt 575 582 713 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 606 614 2,247
Application of capital funding Capital expenditure: - To meet additional demand 3 31 16 - To improve the level of service 726 801 2,043 - To replace existing assets 682 633 195 Increase/(decrease) in reserves 310 287 1,184 Increase/(decrease) of investments - - - Total applications of capital funding (D) 1,721 1,752 3,438 Surplus/(deficit) of capital funding (C-D) (1,115) (1,138) (1,191) Funding balance ((A-B)+(C-D)) - - -
Operating funding figures have been changed to reflect targeted rates for water correctly. The net amount has not changed.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 97
WASTE MANAGEMENT AND MINIMISATION
Introduction The Waste Management and Minimisation activity manages the collection, receipt and disposal of refuse and recycling in the District. People generate waste each day and the current trend of increasing waste associated with consumption creates an ongoing challenge in waste management and minimisation.
If solid waste is not managed in a suitable manner, it may pose a serious threat to public health. In addition, landfill waste can result in significant environmental effects, e.g. leachate can contaminate surrounding soil and water, while landfill gases (methane and carbon dioxide) contribute towards climate change. The disposal of waste to landfill has a significant cost associated with it. This cost is likely to increase with the closing of the District landfill in 2020. The national Emissions Trading Scheme (ETS) may also have an impact as prices in carbon markets change. To address these issues, Council is actively working to minimise the volume of waste produced, e.g. through the kerbside recycling programme and removing organics from the waste stream.
The assets for Waste Management and Minimisation activity include the District landfill in Taumarunui, seven transfer stations and seven decommissioned landfills.
Aim of Waste Management and Minimisation and Contribution to Outcomes The aim of Waste Management and Minimisation activity is to maintain the level of service to the community, whilst increasing the proportion of solid waste being collected within the District for recycling.
Level of Service (Percentage) 100 90 80 2005 70 2007 60 2010 50 40 2013 30 2016 20 2017 10 0 2018 Kerbside rubbish Kerbside recycling Transfer Station collection collection services
The Waste Management and Minimisation activity targets the following Outcomes by providing core facilities, opportunities for community involvement and participation and working towards improving the environment with the goal of waste minimisation.
. That the impact of waste on our environment is minimised.
. Excellent standards of safety and welfare are promoted and respected.
. Core infrastructure (water, wastewater, stormwater, waste management and minimisation and roading) endeavours to keep pace with changing demand.
. That Council plans for and works with the community to ensure that our environment is accessible, clean and safe and that our water, soil and air meet acceptable, affordable standards.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 98
What We Achieved
Key Performance 2016/17 2017/18 2017/18 Level of Service Commentary Indicators Actual Target Actual
Waste Management and Minimisation Goal: Towards waste minimisation and a sustainable environment. Goal: That the impact of waste on our environment is minimised. Goal: To provide and maintain an appropriate level of infrastructure and people are informed about, and participate in, waste minimisation. The community is The portion of -4.07% +0.5% -4.11% Not Achieved. provided with waste recycled National levels fallen. opportunities to increases by 0.5% Approximately 100 tonnes of recycle. each year. refuse received as a result of National Park Tornado also effects this figure.
Waste minimisation An annual waste - 1 - Not Achieved. is encouraged. audit is conducted Large scale audit to be to identify conducted before landfill opportunities to closure. increase recycling.
Recycling facilities 3 2 2 Achieved. are improved Pipiriki and Taumarunui. and/or expanded at two locations annually.
Waste Minimisation 2 2 2 Achieved. initiatives promoted Cloth Nappies, Plastic Free District wide. July.
Legislative Annual resource - <3 - Achieved. compliance is consent breaches. achieved.
Number of 3 >3 5 Achieved. multimedia communications to the public on the Waste Hierarchy.
Two industry 1 2 2 Achieved. stewardship Cloth Nappies, Plastic Free schemes promoted July. annually.
Waste education in Percentage of 75% 75% 100% Achieved. schools. schools visited A round of visits were carried annually that out by Zero Waste Education express a desire to gauge interest. All schools to participate in expressed some interest Zero Waste although time commitments Education have put some off. 11 of 22 programme. Schools had Zero Waste education run classes in the 2017/18 financial year.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 99
Key Performance 2016/17 2017/18 2017/18 Level of Service Commentary Indicators Actual Target Actual
Waste Management and Minimisation Goal: Towards waste minimisation and a sustainable environment. Goal: That the impact of waste on our environment is minimised. Goal: To provide and maintain an appropriate level of infrastructure and people are informed about, and participate in, waste minimisation. Community is Percentage of 76.46% 70% 61% Not Achieved. satisfied with the community overall level of satisfied with the service for Waste overall LOS. Management and Minimisation. Number of 42 <156 82 Achieved. requests for service that indicate poor service provision is less than 156 per year (approximately three per week).
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 100
Capital Projects
Carried EAP Actual Forward Project Description 2017/18 2017/18 Notes Budget $000 $000 $000 District signage - 3 - Renewal. Sign information. District container painting - 5 - Renewal. Taumarunui road improvement - 11 - Minor works as part of site development. Taumarunui site development - 11 - 50% growth, 50% LOS. Waimarino bins - 4 - 50% growth, 25% LOS, 25%, growth. Waimarino digger safety rails - 1 1 LOS. Health and Safety. Waimarino road development - 5 - Minor works as part of site development. Waimarino site development - 11 - 50% growth, 50% LOS. Total 0 51 1
Work in Progress
There are currently no Work in Progress jobs as at 30 June 2018.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 101
Highlights for the Year
Emily Jasmine has joined the Solid Waste team as a Waste Minimisation Educator and has been planning workshops to run including a series to be run throughout Plastic Free July:
Consultation on the Waste Minimisation Management plan was carried out. 36 submissions were received and common themes identified were the desire for a Zero Waste 2040 target, greater resource recovery, greater community involvment and the desire for more products to be recycled.
A large scale clean-up at Pipiriki Transfer Station took place with multiple uteloads of refuse removed and vegetation cleared. The local community have been approached about options to prevent abuse of the landfill, this might entail a gate with residents having a key or a local person supervising the site.
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Funding Impact Statement
Ruapehu District Council for the year ending 30 June 2018 Waste Management and Minimisation Activity
LTP LTP Actual 2017 2018 2018 $000 $000 $000 Sources of operating funding General rates, uniform annual general 416 428 311 charges, rates penalties Targeted rates 1,136 1,175 1,007 Subsidies and grants for operating purposes - - - Fees and charges 732 754 730 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement - - - fees, and other receipts Total operating funding (A) 2,284 2,357 2,048
Applications of operating funding Payments to staff and suppliers 1,569 1,616 1,421 Finance costs 48 47 23 Internal charges and overheads applied 534 556 518 Other operating funding applications - - - Total application of operating funding (B) 2,151 2,219 1,962 Surplus/(deficit) of operating funding (A-B) 133 138 86
Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt 22 35 (24) Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 22 35 (24)
Application of capital funding Capital expenditure: - To meet additional demand 29 48 - - To improve the level of service 33 29 1 - To replace existing assets 14 23 3 Increase/(decrease) in reserves 79 73 58 Increase/(decrease) of investments - - - Total applications of capital funding (D) 155 173 62 Surplus/(deficit) of capital funding (C-D) (133) (138) (86) Funding balance ((A-B)+(C-D)) - - -
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 PAGE 103
SECTION TWO
FINANCIAL INFORMATION
Section Two cover image: Meads Wall, Whakapapa Ski Area, Mt Ruapehu. TABLE OF CONTENTS – SECTION TWO
STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2018 ...... 5 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018 ...... 6 STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2018 ...... 7 CONSOLIDATED STATEMENT OF CASH FLOWS ...... 8 1. STATEMENT OF ACCOUNTING POLICIES ...... 9 2. RATES REVENUE ...... 23 3. FEES AND CHARGES ...... 24 4. SUBSIDIES AND GRANTS ...... 24 5. FINANCE INCOME AND FINANCE COSTS ...... 24 6. OTHER REVENUE ...... 25 7. GAINS...... 25 8. PERSONNEL COSTS ...... 25 9. OTHER EXPENSES ...... 26 10. LOSSES ...... 26 11. CASH AND CASH EQUIVALENTS ...... 26 12. DEBTORS AND OTHER RECEIVABLES ...... 27 13. INVENTORY ...... 29 14. INVESTMENT IN ASSOCIATES ...... 29 15. OTHER FINANCIAL ASSETS ...... 30 16. PROPERTY, PLANT AND EQUIPMENT ...... 31 17. INTANGIBLE ASSETS ...... 37 18. DEPRECIATION AND AMORTISATION EXPENSE BY GROUP OF ACTIVITY ...... 38 19. BIOLOGICAL ASSETS ...... 38 20. INVESTMENT PROPERTY ...... 38 21. CREDITORS AND OTHER PAYABLES ...... 40 22. BORROWINGS ...... 41 23. EMPLOYEE ENTITLEMENTS ...... 42 24. PROVISIONS ...... 42 25. EQUITY ...... 43 26. RECONCILIATION OF NET SURPLUS (DEFICIT) TO NET CASH FLOW FROM OPERATING ACTIVITIES ...... 47 27. COMMITMENTS AND OPERATING LEASES ...... 48 28. CONTINGENCIES ...... 49 29. RELATED PARTY TRANSACTIONS ...... 49 30. REMUNERATION...... 51 31. SEVERANCE PAYMENTS ...... 53 32. EVENTS AFTER THE BALANCE DUE DATE ...... 53 33. FINANCIAL INSTRUMENT RISKS ...... 54 34. CAPITAL MANAGEMENT ...... 58
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 3 35. COUNCIL CONTROLLED ORGANISATIONS ...... 59 36. EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET ...... 59 37. ASSETS HELD FOR SALE ...... 61 1. FUNDING IMPACT STATEMENT FOR RUAPEHU DISTRICT COUNCIL FOR YEAR ENDING 30 JUNE 2018 – ALL ACTIVITIES ...... 62 2. SUPPORT FUNDING IMPACT STATEMENT ...... 63 3. OVERALL FUNDING IMPACT STATEMENT RECONCILLIATION ...... 64 4. RATING BASE INFORMATION ...... 65 5. INSURANCE ...... 65 6. BENCHMARKS ...... 66
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 4
Part A – Consolidated Statements STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2018
Group and Parent For the year ended 30 June 2018
Council And Group Notes Actual EAP Actual 2018 2018 2017 $000 $000 $000 Revenue Rates 2 22,596 21,884 21,767 Fees and Charges 3 2,329 3,480 2,217 Development and Financial Contributions 149 73 61 Subsidies and Grants 4 12,137 10,989 9,668 Finance Revenue 5 31 65 28 Other Revenue 6 2,002 133 1,790 Gains 7 552 28 143 Total Revenue 39,796 36,652 35,674
Expenses Personnel Costs 8 5,213 4,998 5,071 Depreciation and Amortisation Expense 18 8,702 8,407 8,429 Finance Costs 5 1,164 1,646 1,299 Other Expenses 9 20,085 18,706 18,321 Losses 10 323 - 385 Total Expenses 35,487 33,757 33,505
Share of Associate's Surplus / (Deficit) 139 - 42 Net Surplus / (Deficit) 4,448 2,895 2,211
Other Comprehensive Revenue and Expense Gain/(Loss) on Property, Plant and Equipment 25 8,578 10,488 1,658 Revaluations Financial Assets at Fair Value Through 15 69 - 4 Comprehensive Revenue and Expense Total Other Comprehensive Revenue and Expense 8,647 10,488 1,662
Total Comprehensive Revenue and Expense 13,095 13,383 3,873
Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 5
Part A – Consolidated Statements CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018
Group and Parent As at June 2018
Council And Group Notes Actual EAP Actual 2018 2018 2017 $000 $000 $000 Assets Current Assets Cash and Cash Equivalents 11 2,252 (257) 1,795 Receivables 12 3,156 3,369 2,977 Prepayments and Accrued Income 1,182 790 1,138 Inventory 13 269 152 181 Assets held for sale 37 639 - 506 Total Current Assets 7,498 4,054 6,597 Non-Current Assets Investment in Associates - Investment in CCOs and other similar Entities 14 32 - 26 Other Financial Assets 15 165 117 110 Biological Assets 19 - 397 - Property, Plant and Equipment 16 395,214 404,646 381,496 Intangible Assets 17 335 512 362 Investment Property 20 2,830 2,381 2,434 Total Non-Current Assets 398,576 408,053 384,428 Total Assets 406,074 412,107 391,025 Liabilities Current Liabilities Creditors and Other Payables 21 5,699 3,489 3,729 Borrowings 22 14,300 5,800 10,300 Employee Entitlements 23 547 228 537 Income in Advance 906 825 886 Total Current Liabilities 21,452 10,342 15,452 Non-Current Liabilities Borrowings 22 11,500 27,967 15,500 Provisions 24 188 455 184 Creditors and other Payables 21 - - 50 Total Non-Current Liabilities 11,688 28,422 15,734 Total Liabilities 33,140 38,764 31,186 Net Assets 372,934 373,343 359,839 Equity Accumulated Funds 25 270,738 270,214 265,832 Other Reserves 25 102,196 103,129 94,007 Total Equity Attributable to the Council 372,934 373,343 359,839 Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 6
Part A – Consolidated Statements STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2018
Group and Parent For the year ended 30 June 2018
Council And Group Notes Actual EAP Actual 2018 2018 2017 $000 $000 $000 Balance at 1 July 359,839 359,960 355,966 Total Comprehensive Revenue and Expense for the 13,095 13,383 3,873 Year Balance at 30 June 25 372,934 373,343 359,839
Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.
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Part A – Consolidated Statements CONSOLIDATED STATEMENT OF CASH FLOWS
Group and Parent For the year ended 30 June 2018
Council And Group Notes Actual EAP Actual 2018 2018 2017 $000 $000 $000 Cash Flows from Operating Activities Cash was received from: Receipts from Rates Revenue 22,597 21,884 21,574 Receipts from Subsidies and Grants 12,323 10,989 9,821 Interest Received 31 28 28 Dividends Received - 65 - Other Revenue 3,955 3,556 4,266 Goods and Services Tax (Net) 57 - (103) 38,963 36,522 35,586 Cash was distributed to: Payments to Suppliers (19,581) (18,257) (17,398) Payments to Employees and Elected Members (5,556) (5,446) (5,298) Interest Paid (1,150) (1,646) (1,285) (26,287) (25,349) (23,981) Net Cash Flow from Operating Activities 26 12,676 11,173 11,605
Cash Flows from Investing Activities Cash was received from: Receipts from Sale of Property, Plant and 70 28 54 Equipment Receipts from Sale of Investments 13 - - 83 28 54 Cash was distributed to: Purchase of Property, Plant and Equipment (12,199) (14,206) (10,381) Purchase of Intangible Assets (103) - (125) Purchase of Investments - - - (12,302) (14,206) (10,506) Net Cash Flow from Investing Activities (12,219) (14,178) (10,452)
Cash Flows from Financing Activities Cash was received from: Proceeds from Borrowings 10,300 8,709 5,500 10,300 8,709 5,500 Cash was distributed to: Repayment of Borrowings (10,300) (5,800) (5,500) (10,300) (5,800) (5,500) Net Cash Flow from Financing Activities - 2,909 -
Net Increase/(Decrease) in Cash, Cash 457 (96) 1,153 Equivalents and Bank Overdrafts Cash, Cash Equivalents and Bank Overdrafts at 1,795 (161) 642 the beginning of the year Cash, Cash Equivalents and Bank Overdrafts at 11 2,252 (257) 1,795 the end of the year
Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.
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1. STATEMENT OF ACCOUNTING POLICIES
Reporting Entity Ruapehu District Council (the Council or RDC) is a territorial local authority established under the Local Government Act 2002 (LGA) and is domiciled and operates in New Zealand. The relevant legislation governing the Council’s operations includes the LGA and the Local Government (Rating) Act 2002.
The group consists of: . The ultimate parent, Ruapehu District Council. . RDC Holdings Ltd (100% owned subsidiary) which is non-trading. . Manawatu Wanganui LASS Ltd (14.29%) which is equity accounted (an associate). . Wanganui District Council’s Forestry Joint Committee (3.93%) which is equity accounted (an associate).
All subsidiaries and associated entities are established and domiciled in New Zealand.
The financial statements reflect the consolidated results for RDC and group. The only subsidiary of RDC (RDC Holdings Limited) is non-active and has no revenue, expenditure, assets or liabilities and there have been no transactions recorded in 2017/18 (Nil 2016/17) as Group and Parent accounts are materially the same. Only Group (consolidated) accounts have been prepared.
The Council and Group provide local infrastructure, local public services, and perform regulatory functions. The Council does not operate to make a financial return. The Council has designated itself and the group as public benefit entities (PBEs) for financial reporting purposes.
The financial statements of the Council and Group are for the year ended 30 June 2018. The financial statements were authorised for issue by Council on 24 October 2018. RDC Holdings Ltd has the same balance date as Council. The RDC Holdings Ltd CCO exemption expired on 11 November 2017 and a Council resolution will be passed in the 2018/19 financial year to renew the exemption for a further three years.
Basis of Preparation The financial statements have been prepared on the going concern basis. The accounting policies have been applied consistently throughout the period.
Statement of Compliance The financial statements of the Council and Group have been prepared in accordance with the requirements of the LGA which includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP).
These financial statements have been prepared in accordance with Tier 1 PBE accounting standards.
The PBE accounting standards that have been issued but are not yet effective are as follows;
Interests in Other Entities In January 2017, the XRB issued new standards for interests in other entities (PBE IPSAS 34 – 38). These new standards replace the existing standards for interest in other entities (PBE IPSAS 6 – 8). The new standards are effective for annual periods beginning on or after 1 January 2019, with early adoption permitted. The Council plans to apply the new standards in preparing the 30 June 2020 financial statements. The Council and group has not yet assessed the effects of these new standards.
Financial Instruments In January 2017, the XRB issued PBE IFRS 9 Financial Instruments. PBE 9 replaces PBE IPSAS 29 Financial Instruments: Recognition and Measurement. PBE IFRS 9 is effective for annual periods beginning on or after 1 January 2021, with early adoption permitted. The main changes under PBE IFRS 9 are:
. New financial asset classification requirements for determining whether an asset is measured at fair value or amortised cost.
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. A new impairment model for financial assets based on expected losses, which may result in the earlier recognition of impairment losses.
. Revised hedge accounting requirements to better reflect the management of risks.
The Council plans to apply this standard in preparing its 30 June 2022 financial statements.
Impairment of Revalued Assets (Amendments to PBE IPSASs 21 and 26) Applies for annual reporting periods beginning on or after 1 January 2018. This standard amends PBE IPSAS 21 Impairment of Non-Cash-Generating Assets and PBE IPSAS 26 Impairment of Cash-Generating Assets to bring assets measured at revalued amounts within the scope of the standards.
Amendments are also made to PBE IPSAS 17 Property, Plant and Equipment and PBE IPSAS 31 Intangible Assets as a result of the amendments to PBE IPSASs 21 and 26.
Previously there was some uncertainty about the requirements relating to the recognition of an impairment loss when an item of revalued property, plant and equipment was damaged or no longer available for use. The issue was whether the entire class of assets needed to be revalued when an impairment loss on damaged/unusable property, plant and equipment was recognised.
This standard removes the uncertainty by including revalued property, plant and equipment and revalued intangible assets in the scope of the impairment standards.
Service Performance Reporting (PBE FRS 48) This standard is mandatory for annual reporting periods beginning on or after 1 January 2021. There has been no PBE Standard dealing solely with service performance reporting. This Standard establishes new requirements for public benefit entities (PBEs) to select and present service performance information.
The Council and group has not yet assessed the effects of these new standards.
Presentation Currency and Rounding The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000).
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Summary of Significant Accounting Policies
Basis of Consolidation The consolidated financial statements are prepared by adding together like items of assets, liabilities, equity, revenue, and expenses of entities in the group on a line-by-line basis. All intragroup balances, transactions, revenue and expenses are eliminated on consolidation.
Subsidiaries The Council consolidates in the group financial statements all entities in which the Council has the capacity to control their financing and operating policies so as to obtain benefits from the activities of the subsidiary.
This power exists where the Council controls the majority voting power on the governing body or where policies have been irreversibly predetermined by Council, or where the determination of such policies is unable to materially affect the level of potential ownership benefits that arise from the activities of the subsidiary. The only subsidiary owned is RDC Holdings Ltd (100% owned).
Associate The Council’s associate investment is accounted for in the group financial statements using the equity method. An associate is an entity over which the Council has significant influence and that is neither a subsidiary nor an interest in a joint venture. The investment in an associate is initially recognised at cost and the carrying amount in the group financial statements is increased or decreased to recognise the group’s share of the surplus or deficit of the associate after the date of acquisition. Distributions received from an associate reduce the carrying amount of the investment in the group financial statements.
If the share of deficits of an associate equals or exceeds its interest in the associate, the group discontinues recognising its share of further deficits. After the group’s interest is reduced to zero, additional deficits are provided for, and a liability is recognised, only to the extent that the Council has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports surpluses, the group will resume recognising its share of those surpluses only after its share of the surpluses equals the share of deficits not recognised.
Where the group transacts with an associate, surpluses or deficits are eliminated to the extent of the group’s interest in the associate.
Dilution gains or losses arising from investments in associates are recognised in the surplus or deficit.
Associates of the Council are: . Manawatu Wanganui LASS Ltd (14.29%, owned with six other local authorities). This entity is an exempt Council Controlled Organisation.
. Wanganui District Councils’ Forestry Joint Committee (3.93%, owned with two other local authorities).
Revenue Revenue is measured at fair value of consideration received or receivable. Revenue may be derived from either exchange or non-exchange transactions
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Exchange Transactions Exchange transactions are transactions where RDC receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to another entity in exchange.
Revenue derived through the provision of services to third parties in a commercial manner is recognised in proportion to the stage of completion at balance date.
Revenue from asset management services is recognised when provided to the customer.
Interest revenue is recognised using the effective interest method. Interest revenue on an impaired financial asset is recognised using the original effective interest rate.
Dividends are recognised when the right to receive payment has been established. When dividends are declared from pre-acquisition surpluses, the dividend is deducted from the cost of the investment.
Non-Exchange Transactions Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, RDC either receives value from or gives value to another entity without directly giving or receiving approximately equal value in exchange or where the value given or received is not able to be accurately measured. This includes transactions for activities which are subsidised through rates.
An inflow of resources from a non-exchange transaction, whether this be an asset or revenue, is only recognised if a liability is not also recognised for that particular asset or revenue.
A liability is only recognised to the extent that the present obligations have not been satisfied. A liability in respect of a transferred asset is recognised only when the transferred asset is subject to a condition, such as a condition for the asset to be consumed as specified and / or that future economic benefits or service potential must be returned to the owner.
The specific accounting policies relating to significant revenue items follow.
Rates Revenue The following policies for rates have been applied: . General rates and targeted rates (excluding water-by-meter), are recognised at the start of the financial year to which the rates resolution relates. They are recognised at the amounts due. The Council considers that the effect of payment of rates by instalments is not sufficient to require discounting of rates receivables and subsequent recognition of interest revenue.
. Rates arising from late payment penalties are recognised as revenue when rates become overdue.
. Revenue from water-by-meter rates is recognised on an accrual basis based on usage. Unbilled usage, as a result of unread meters at year end, is accrued on an average usage basis.
. Rates remissions are recognised as a reduction of rates revenue when the Council has received an application that satisfies its rates remission policy.
Development and Financial Contributions Development and financial contributions are recognised as revenue when the Council provides, or is able to provide, the service for which the contribution was charged. Otherwise, development and financial contributions are recognised as liabilities until such time as the Council provides, or is able to provide, the service.
New Zealand Transport Agency Roading Subsidies The Council receives funding assistance from the New Zealand Transport Agency, which subsidises part of the costs of maintenance and capital expenditure on the local roading infrastructure. The subsidies are recognised as revenue upon entitlement, as conditions pertaining to eligible expenditure have been fulfilled.
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Other Grants Received Other grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when conditions of the grant are satisfied.
Building and Resource Consent Revenue Fees and charges for building and resource consent services are recognised on a percentage completion basis with reference to the recoverable costs incurred at balance date.
Landfill Fees Fees for disposing of waste at the Council’s landfill are recognised as waste is disposed by users.
Infringement Fees and Fines Infringement fees and fines mostly relate to traffic and parking infringements and are recognised when the infringement notice is issued. The fair value of this revenue is determined based on the probability of collecting fines, which is estimated by considering the collection history of fines.
Vested or Donated Physical Assets For assets received for no or nominal consideration, the asset is recognised at its fair value when the Council obtains control of the asset. The fair value of the asset is recognised as revenue, unless there is a use or return condition attached to the asset.
The fair value of vested or donated assets is usually determined by reference to the cost of constructing the asset. For assets received from property developments, the fair value is based on construction price information provided by the property developer.
For long-lived assets that must be used for a specific use (e.g. land must be used as a recreation reserve), the Council immediately recognises the fair value of the asset as revenue. A liability is recognised only if Council expects that it will need to return or pass the asset to another party.
Donated and Bequeathed Financial Assets Donated and bequeathed financial assets are recognised as revenue unless there are substantive use or return conditions. A liability is recorded if there are substantive use or return conditions and the liability released to revenue as the conditions are met (e.g. as the funds are spent for the nominated purpose).
Liabilities Income in Advance Income in Advance predominantly from rates and dog registrations paid in advance, these are non-exchange transactions.
Borrowing Costs In accordance with PBE IPSAS 5 Borrowing Costs, all borrowing costs are recognised as an expense in the period in which they are incurred.
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. The Council’s grants awarded have no substantive conditions attached.
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Leases Operating Leases An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset.
Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term.
Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term.
Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.
Receivables Receivables are recorded at their face value, less any provision for impairment.
Other Financial Assets Financial assets are initially recognised at fair value plus transaction costs unless they are carried at fair value through surplus or deficit in which case the transaction costs are recognised in the surplus or deficit.
Purchases and sales of financial assets are recognised on trade-date, the date on which the Council and group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Council and group has transferred substantially all the risks and rewards of ownership.
Financial assets are classified into the following categories for the purpose of measurement:
. fair value through surplus or deficit; . loans and receivables; . held-to-maturity investments; and . fair value through other comprehensive revenue and expense.
The classification of a financial asset depends on the purpose for which the instrument was acquired.
Financial Assets at Fair Value through Surplus or Deficit Financial assets at fair value through surplus or deficit include financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term or it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of short-term profit-taking.
Financial assets acquired principally for the purpose of selling in the short-term or part of a portfolio classified as held for trading are classified as a current asset.
After initial recognition, financial assets in this category are measured at their fair values with gains or losses on re-measurement recognised in the surplus or deficit.
Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets.
After initial recognition, they are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit.
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Held-To-Maturity Investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities and there is the positive intention and ability to hold to maturity. They are included in current assets, except for maturities greater than 12 months after balance date, which are included in non-current assets.
After initial recognition they are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit.
Fair Value through other Comprehensive Revenue and Expense Financial assets at fair value through other comprehensive revenue and expense are those that are designated into the category at initial recognition or are not classified in any of the other categories above. They are included in non-current assets unless Council intends to dispose of, or realise, the investment within 12 months of balance date. The Council and group includes in this category: . Investments that it intends to hold long-term but which may be realised before maturity; and . Shareholdings that it holds for strategic purposes.
These investments are measured at their fair value, with gains and losses recognised in other comprehensive revenue and expense, except for impairment losses, which are recognised in the surplus or deficit. On de- recognition, the cumulative gain or loss previously recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit.
Impairment of Financial Assets Financial assets are assessed for evidence of impairment at each balance date. Impairment losses are recognised in the surplus or deficit.
Loans and Receivables and Held-To-Maturity Investments Impairment is established when there is evidence that the Council and group will not be able to collect amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, receivership, or liquidation and default in payments are indicators that the asset is impaired. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. Overdue receivables that have been renegotiated are reclassified as current (that is, not past due). Impairment in term deposits, local authority stock, government bonds, and community loans, are recognised directly against the instrument’s carrying amount.
Financial Assets at Fair Value through other Comprehensive Revenue and Expense For equity investments, a significant or prolonged decline in the fair value of the investment below its cost is considered objective evidence of impairment. For debt investments, significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy and default in payments, are objective indicators that the asset is impaired.
If impairment evidence exists for investments at fair value through other comprehensive revenue and expense, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the surplus or deficit) recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit.
Equity instrument impairment losses recognised in the surplus or deficit are not reversed through the surplus or deficit.
If in a subsequent period the fair value of a debt instrument increases, and the increase can be objectively related to an event occurring after the impairment loss was recognised, the impairment loss is reversed in the surplus or deficit.
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Inventory Inventories held for distribution or consumption in the provision of services that are not supplied on a commercial basis are measured at cost (using the FIFO method), adjusted, when applicable, for any loss of service potential.
Inventories acquired through non-exchange transactions are measured at fair value at the date of acquisition.
Inventories held for use in the provision of goods and services on a commercial basis are valued at the lower of cost (using the FIFO method) and net realisable value. The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in the surplus or deficit in the period of the write-down.
Assets held for Sale Assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. Assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell.
Any impairment losses for write-downs of assets held for sale are recognised in the surplus or deficit.
Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have been previously recognised.
Assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale.
Property, Plant and Equipment Property, plant and equipment consist of:
Operational Assets – These include land, buildings, parks and reserves improvements, library books, plant vehicles, computer equipment and office equipment.
Restricted Assets – Restricted assets are mainly parks and reserves owned by RDC that provide a benefit or service to the community and cannot be disposed of because of legal or other restrictions.
Infrastructure Assets – Infrastructure assets are the fixed utility systems owned RDC. Each asset class includes all items that are required for the network to function. For example, sewer reticulation includes reticulation piping and sewer pump stations.
Land (operational and restricted) – Is measured at fair value, and buildings (operational and restricted) and infrastructural assets (except land under roads) are measured at fair value less accumulated depreciation. All other operational and restricted asset classes are measured at cost less accumulated depreciation and impairment losses.
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Revaluation Land and buildings (operational and restricted) and infrastructural assets (except land under roads) are revalued annually.
Revaluations of property, plant and equipment are accounted for on a class-of-asset basis.
The net revaluation results are credited or debited to other comprehensive revenue and expense and are accumulated to an asset revaluation reserve in equity for that class-of-asset. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive revenue and expense but is recognised in the surplus or deficit. Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed and then recognised in other comprehensive revenue and expense.
Additions The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Council and group and the cost of the item can be measured reliably.
Work in progress is recognised at cost less impairment and is not depreciated.
In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition.
Disposals Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are reported in the surplus or deficit. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to accumulated funds.
Subsequent Costs 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 the Council and the cost of the item can be measured reliably.
The costs of day-to-day servicing of property, plant and equipment are recognised in the surplus or deficit as they are incurred.
Depreciation Property, plant and equipment depreciation is provided on a straight line (SL) or diminishing value (DV) basis at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives.
Infrastructure asset depreciation rates are based on the remaining useful life for each individual asset component. These rates are on a straight line basis.
The revaluation approach, useful lives and associated depreciation rates of major classes of assets have been estimated as per the next page.
For depreciated assets the residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.
Any work undertaken on infrastructure assets to reinstate (termed “renewal”) or add to the service potential of the asset is capitalised.
The useful lives and associated depreciation rates of major classes of assets have been estimated as per the following table:
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Useful Lives and Depreciation Rates
Property, Plant and Measurement Estimated Life Depreciation Rate Equipment Basis (*1) Buildings (Excluding RAD 10 – 100 Years 1 - 20% SL Investment Property) Other Improvements CAD 10 – 100 Years 1 - 10% SL Computer Equipment CAD 2.5 Years 40% DV Office Equipment, CAD 5 Years 20% DV Furniture and Fittings Library Books CAD 10 Years 10% SL Plant and Vehicles CAD 3.33 – 10 Years 5 – 25% SL Measurement Roads and Footpaths Estimated Life Depreciation Rate Basis (*1) Top Surface (Seal) RAD 15 Years 6.67% SL Pavement (Base Course) RAD 100 Years 1% SL Culverts RAD 70 – 100 Years 1 – 1.43% SL Footpaths RAD 20 – 80 Years 1.25 – 5% SL Kerbs RAD 80 – 100 Years 1 – 1.25% SL Signs RAD 10 Years 10 – 11.1% SL Street Lights RAD 20 – 25 Years 4 – 5% SL Bridges RAD 70 – 100 Years 1 – 2.23% SL Measurement Water Supply Estimated Life Depreciation Rate Basis (*1) Pipes RAD 50 – 85 Years 1 – 2% SL Valves and Hydrants RAD 15 – 70 Years 1 – 6.67% SL Pump Stations RAD 10 – 60 Years 1.25 – 10% SL Tanks RAD 25 – 80 Years 1 – 6.67% SL Treatment Plants RAD 5 – 80 Years 1.25% – 20% SL Measurement Wastewater Estimated Life Depreciation Rate Basis (*1) Pipes RAD 50 – 85 Years 1 – 2% SL Manholes and Cesspits RAD 50 – 75 Years 1 – 2% SL Pump Stations RAD 10 – 60 Years 1.33 – 20% SL Treatment Plants RAD 10 – 200 Years 0.5 – 33.3% SL Measurement Stormwater Estimated Life Depreciation Rate Basis (*1) Pipes RAD 30 – 85 Years 1 – 13% SL Manholes and Cesspits RAD 75 Years 1 – 2% SL Measurement Solid Waste Estimated Life Depreciation Rate Basis (*1) Various RAD 20 – 70 Years 1.33 - 6% SL Measurement Other (Not Depreciated) Estimated Life Depreciation Rate Basis (*1) Land REV Formation Costs for COST Roading Stop Banks REV Work In Progress and COST Assets Under Construction
*1 CAD = Cost Less Accumulated Depreciation And Impairment Losses. RAD = Revaluation Less Subsequent Depreciation. REV = Revaluation (Not Depreciated). COST = Cost.
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Intangible Assets Software Acquisition and Development Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.
Costs that are directly associated with the development of software for internal use are recognised as an intangible asset. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. Staff training costs are recognised in the surplus or deficit when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with development and maintenance of the Council’s website are recognised as an expense when incurred.
Amortisation The carrying value 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 the surplus or deficit. The useful lives and amortisation rates have been estimated as follows:
Amortisation Amortisation Rates Intangibles Estimated Life Rate Computer Software 3 years 33.3% SL Pipiriki Wastewater Treatment Plant Resource Consent 22 years 5% SL
Impairment of Property, Plant and Equipment and Intangible Assets Intangible assets subsequently measured at cost that have an indefinite useful life, or are not yet available for use, are not subject to amortisation and are tested annually for impairment.
Property, plant and equipment and intangible assets subsequently measured at cost that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that 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.
If an asset’s carrying amount exceeds its recoverable amount, the asset is regarded as impaired and the carrying amount is written-down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss is recognised in the surplus or deficit.
Value in Use for Non-Cash-Generating Assets Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return. For non-cash generating assets, value in use is determined using an approach based on either a depreciated replacement cost approach, restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information.
Investment Property Properties leased to third parties under operating leases are classified as investment property unless the property is held to meet service delivery objectives, rather than to earn rentals or for capital appreciation.
Investment property is measured initially at its cost, including transaction costs.
After initial recognition, all investment property is measured at fair value at each reporting date. Gains or losses arising from a change in the fair value of investment property are recognised in the surplus or deficit.
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Payables Short-term creditors and other payables are recorded at their face value.
Borrowings Borrowings are initially recognised at their fair value plus transaction costs. After initial recognition, all borrowings are measured at amortised cost using the effective interest method.
Borrowings are classified as current liabilities unless the Council or group has an unconditional right to defer settlement of the liability for at least 12 months after balance date.
Employment Entitlements Short-Term Employee Entitlements Employee benefits expected to be settled within 12 months after the end of the period in which the employee renders the related service are measured based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date.
A liability and an expense are recognised for bonuses where the Council or group has a contractual obligation or where there is a past practice that has created a constructive obligation.
The Council expects all employee entitlements to be settled within 12 months of balance date.
Superannuation Schemes Defined Contribution Schemes Obligations for contributions to KiwiSaver are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit when incurred.
Provisions A provision is recognised for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that an outflow of future economic benefits 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 and is included in “finance costs”.
Equity Equity is the community’s interest in the Council and is measured as the difference between total assets and total liabilities.
Equity is disaggregated and classified into the following components: . Accumulated funds; . Restricted reserves; . Asset revaluation reserve; . Fair value through other comprehensive revenue and expense reserve.
Restricted Reserves Restricted reserves are a component of equity generally representing a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or created by the Council.
Restricted reserves include those subject to specific conditions accepted as binding by the Council and which may not be revised by the Council without reference to the Courts or a third party. Transfers from these reserves may be made only for certain specified purposes or when certain specified conditions are met.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 20 Part B – Notes to the Financial Statements for Council and Group
Also included in restricted reserves are reserves restricted by Council decision. The Council may alter them without reference to any third party or the Courts. Transfers to and from these reserves are at the discretion of the Council.
Asset Revaluation Reserve This reserve relates to the revaluation of property, plant and equipment to fair value.
Fair Value through Other Comprehensive Revenue and Expense Reserve This reserve comprises the cumulative net change in the fair value of assets classified as fair value through other comprehensive revenue and expense.
Goods and Services Tax All items in the financial statements are stated exclusive of GST, except for receivables and payables. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.
The net amount of GST recoverable from, or payable to, the IRD is included as part of receivables or payables in the statement of financial position.
The net GST paid to, or received from, the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST.
Budget Figures The budget figures are those approved by the Council for the year 2017/18 in its Exceptions Annual (EAP) and in its Long Term Plan 2015-25. The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted in preparing these financial statements.
Cost Allocation The cost of service for each significant activity of the Council has been derived using the cost allocation system outlined below:
. Direct costs are those costs directly attributable to a significant activity.
. Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific significant activity.
Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities using appropriate cost drivers such as staff numbers and size of budgets.
Critical Accounting Estimates and Assumptions In preparing these financial statements, estimates and assumptions have been made concerning the future.
These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
Infrastructural Assets - Note 16 provides information about the estimates and assumptions applied in determining the fair value of infrastructural assets.
Landfill Aftercare Provision - Note 24 provides information about the estimates and assumptions surrounding the landfill aftercare provision.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 21 Part B – Notes to the Financial Statements for Council and Group
Critical Judgements in Applying Accounting Policies Management has exercised the following critical judgements in applying accounting policies for the year ended 30 June 2018
Classification of Property The Council owns a number of properties held to provide housing to pensioners. The receipt of market-based rental from these properties is incidental to holding them. The properties are held for service delivery objectives as part of the Council’s social housing policy. The properties are therefore classified as property, plant and equipment rather than as investment property.
Parcels of land held for an undetermined future use that are classified as Investment Property may be re- classified in the future if the land use changes.
Taumarunui Airport and Ohakune Railway station are held for strategic reasons rather than for generation of revenue and are therefore classified as property, plant and equipment rather than as investment property.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 22 Part B – Notes to the Financial Statements for Council and Group
2. RATES REVENUE
Actual Actual 2018 2017 $000 $000 General Rates 8,958 8,931 Targeted Rates Attributable to Activities: Community Support 663 374 Land Transport 5,206 5,028 Stormwater 417 413 Wastewater 2,322 2,223 Water 3,232 3,138 Water Charges By Meter 357 278 Solid Waste 1,006 1,046 Rates Penalties 435 336 Total Rates Revenue 22,596 21,767
Of the total rates revenue, $264,207 (last year $259,418) is for rates paid to RDC by RDC on properties it owns or leases.
Council may have breached the Local Government (Rating) Act 2002 (Rating Act) by setting its wastewater (TUAC) differentially by the number of pans in a rating unit. There is doubt as to whether differentiating on the number of pans in a rating unit is legally authorised by the Rating Act. Council has set the rate in this way for a number of years and even though it has been consulted on, it has not been the subject of concern in the community. Notwithstanding, Council will look at whether it can set the rate in future years using matters explicitly provided in Schedule 2 to achieve a similar incidence. More generally, Council has also received comment from its auditors on the level of disclosure in its funding impact statement for the 2017/18 year, which forms an integral part of rates setting. This includes the fact that Council has not defined a separately used or inhabited part (SUIP) in the funding impact statement. These issues were a one-off in the 2017/18 year.
Rates Remissions Rates revenue is shown net of rates remissions. The Council rates remission policy allows rates to be remitted on land used for sport, land protected for historical or cultural purposes and contiguous and land-locked properties.
Actual Actual 2018 2017 $000 $000 Total Gross Rates Revenue 23,220 22,380 Rates Remissions: - Land used for Sport, Clubs and Societies 20 19 - Land protected for Historical or Cultural Purposes 45 42 - Contiguous and Land-Locked Properties 414 404 - Community Organisations 145 148 Total Remissions 624 613 Rates Revenue Net of Remissions 22,596 21,767
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 23 Part B – Notes to the Financial Statements for Council and Group
Non-Rateable Land Under the Local Government (Rating) Act 2002, certain properties can not be rated for general rates. These properties include schools, places of religious worship, public gardens and reserves. These non-rateable properties may be subject to targeted rates in respect of wastewater, water, refuse and sanitation. Non-rateable land does not constitute a remission under RDC's Rates Remission Policy.
3. FEES AND CHARGES
Actual Actual 2018 2017 $000 $000 User Charges 894 799 Regulatory Revenue 333 307 Rental Charges 372 360 Refuse Charges 730 751 Total Fees and Charges (Non-Exchange) 2,329 2,217
4. SUBSIDIES AND GRANTS
Actual Actual 2018 2017 $000 $000 New Zealand Transport Agency (NZTA) Roading Subsidies Operational Subsidies 5,114 4,985 Capital Subsidies 4,959 4,533 Streetlight Cost Recovery 180 101 Total NZTA Subsidies 10,253 9,619 Other Miscellaneous Subsidies 1,884 49 Total Subsidies and Grants (Non-Exchange) 12,137 9,668
5. FINANCE INCOME AND FINANCE COSTS
Actual Actual 2018 2017 $000 $000 Finance Income Interest Income 30 27 Dividend Income 1 1 Total Finance Income (Exchange) 31 28
Finance Costs Interest Expense - Interest on Bank Borrowings 1,160 1,299 - Interest on Bonds Issued - - - Discount unwind on Provisions 4 - Total Finance Costs 1,164 1,299 Net Finance Costs 1,133 1,271
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 24 Part B – Notes to the Financial Statements for Council and Group
6. OTHER REVENUE
Actual Actual 2018 2017 $000 $000 Non-Exchange Infringements and Fines 19 30 Petrol Tax 155 135 Vested Assets - - Other 1,355 1,204 Total Non-Exchange Revenue 1,529 1,369
Exchange Rental Revenue (from Investment Properties) 31 21 Other 442 400 Total Exchange Revenue 473 421
Total Other Revenue 2,002 1,790
7. GAINS
Actual Actual 2018 2017 $000 $000 Non-Financial Instruments Gain on Disposal of Assets 69 28 Fair Value Gain on Investment Property Valuation 395 115 Revaluation of PP&E through P&L 88 - Total Non-Financial Instrument Gains 552 143
8. PERSONNEL COSTS
Actual Actual 2018 2017 $000 $000 Salaries and Wages 5,074 4,838 Defined Contribution Plan Employer Contributions 129 116 Increase / (Decrease) in Employee Entitlements 10 117 Other Employee Benefits - - Total Personnel Costs 5,213 5,071
Employer contributions to defined contribution plans include contributions to KiwiSaver.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 25 Part B – Notes to the Financial Statements for Council and Group
9. OTHER EXPENSES
Actual Actual 2018 2017 $000 $000 Fees to Principal Auditor - Fees to Audit NZ for the Audit Of RDC's Financial Statements 147 145 - Fees to Audit NZ for the Audit of RDC’s LTP 100 - Total Fees to Principal Auditor 247 145
Roading Maintenance 6,223 6,073 All Other Maintenance 5,313 4,861 Consultants and Legal Fees 1,831 1,739 Rental Expenses 492 437 Operating Lease Expenditure 171 163 Impairment of Receivables (Note 12) 63 (21) Other Operating Expenses 5,745 4,924 Total Other Expenses 20,085 18,321
10. LOSSES
Actual Actual 2018 2017 $000 $000 Non-Financial Instruments Losses of Disposals of Assets 323 385 Total Losses 323 385
11. CASH AND CASH EQUIVALENTS
Actual Actual 2018 2017 $000 $000 Cash at Bank and On Hand 2,252 1,795 Total Cash and Cash Equivalents 2,252 1,795
The carrying value of cash at bank and term deposits with original maturities less than three months approximates their fair value.
The Council holds unspent funds, included in cash at bank of $6k (2017:$15k) that are subject to restrictions. These unspent funds were received from Horizons Regional Council for the benefit or the Raetihi Community.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 26 Part B – Notes to the Financial Statements for Council and Group
12. DEBTORS AND OTHER RECEIVABLES
Actual Actual 2018 2017 $000 $000 Non-Exchange Rates Receivables 2,426 2,388 Other Receivables 1,110 1,099 Infringement Receivables 6 40 3,542 3,527 Less Provision for Impairment (488) (591) 3,054 2,936 Exchange Other Receivables 102 41
Total Debtors and Other Receivables 3,156 2,977
Fair Value Debtors and other receivables are non-interest bearing and receipt is normally on 30 day terms. Therefore, the carrying value of debtors and other receivables approximates their fair value.
Impairment RDC provides for impairment on rates receivables although it has various powers under the Local Government (Rating) Act 2002 to recover any outstanding debts. These powers allow RDC to commence legal proceedings to recover any rates that remain unpaid four months after the due date for payment. If payment has not been made within three months of the Court's judgement, RDC can apply to the Registrar of the High Court to have the judgement enforced by sale or lease of the rating unit.
Ratepayers can apply for payment plan options in special circumstances. Where such repayment plans are in place, debts are discounted to their present value of future payments if the effect of discounting is material.
Gross 2018 Impairment Net 2018 Net 2017 Rates Receivables $000 $000 $000 $000 Not Past Due – Current Year 1,463 270 1,193 1,240 Past Due by 1 Year 365 68 297 315 Past Due by 2+ Years 599 110 489 445 Total 2,427 448 1,979 2,001
Other Receivables 2018 2017 Ageing Profile At Year End Gross Impairment Net Gross Impairment Net
Not Past Due 1-30 975 - 975 858 - 858 Past Due 1-60 Days 26 - 26 28 - 28 Past Due 60-120 Days 153 29 124 267 186 81 Past Due > 120 Days 65 12 53 26 18 8 Total 1,219 41 1,178 1,179 204 975
The impairment provision has been calculated based on a review of specific overdue receivables and a collective assessment. The collective impairment provision is based on an analysis of past collection history and debt write-offs.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 27 Part B – Notes to the Financial Statements for Council and Group
Actual Actual Impairment Profile 2018 2017 $000 $000 Individual Impairment 29 186 Collective Impairment 459 405 Total Provision For Impairment 488 591
Individually impaired receivables have been determined to be impaired because there is a dispute over a significant receivable.
Actual Actual Individually Impaired Receivable 2018 2017 $000 $000 Past Due 61 - 120 Days - - Past Due > 120 Days 29 186 Total Provision For Impairment 29 186
Actual Actual Collectively Impaired Receivable 2018 2017 $000 $000 Past Due 61 - 120 Days - - Past Due > 120 Days 459 405 Total Provision For Impairment 459 405
Actual Actual Impairment Source 2018 2017 $000 $000 Rates Debtors 447 387 Sundry Invoice Debtors 29 186 Infringement Debtors 12 18 Total Provision For Impairment 488 591
Actual Actual Movement In Impairment Provision 2018 2017 $000 $000 At 1 July 591 626 Provision Reclassification - - Total 591 626
Additional Provisions made during the year 62 5 Provisions Reversed during the year - (26) Receivables Written Off during the year (165) (14) At 30 June 488 591
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 28 Part B – Notes to the Financial Statements for Council and Group
13. INVENTORY
Actual Actual 2018 2017 $000 $000 Merchandise Visitor and Service Centres 79 69 Blue Recycling Bins 7 4 Critical Spares for Operations 183 108 Total Inventory at 30 June 269 181
No inventory is pledged as security for borrowings or payables.
14. INVESTMENT IN ASSOCIATES
Actual Actual 2018 2017 $000 $000 Investment In Associates - Investment In Manawatu-Wanganui LASS Ltd 32 26 - Investment In Wanganui District Councils’ Forestry Joint Committee - - 32 26 Manawatu Wanganui Lass Ltd Summarised financial information of associates presented on a gross
basis Assets 415 545 Liabilities 243 413 Revenues 1,145 1,260 Surplus/(Deficit) 41 5 RDC’s Share of Surplus/(Deficit) 6 1 RDC's Interest 14.29% 14.29%
All entities have a reporting date of 30 June. The actuals for 2018 are based on unaudited financial statements.
The share of surplus/deficit in the Statement of Comprehensive Revenue and Expenditure includes any movement in prior years results post publication of Council’s Annual Report, when the Associates final numbers became available. None of the Council’s associates have contingent liabilities.
An investor is deemed to have significant influence if it has 20% or more of the voting or potential voting power of the investee. In Ruapehu District Council’s case it holds less than 20% of the associates but is deemed to have significant influence by its representation on the Board.
Manawatu-Wanganui Local Authority Shared Services Limited (MW LASS Ltd) MW LASS Ltd was formed in October 2008 to provide an ‘umbrella vehicle’ for the councils of the Manawatu- Wanganui region to investigate, procure, develop and deliver shared services.
Such services will be initiated under the umbrella of MW LASS Ltd where a business case shows that they provide benefits to the council users by either improved levels of service, reduced costs, improved efficiency and/or increased value through innovation. Current feasibility studies being undertaken include GIS, Aerial photography and joint procurement.
MW LASS Ltd has been exempted according to section 7 of the Local Government Act 2002. It is therefore not a Council Controlled Organisation for the purposes of the Act.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 29 Part B – Notes to the Financial Statements for Council and Group
15. OTHER FINANCIAL ASSETS
Actual Actual 2018 2017 $000 $000 Current Portion Term Deposits With Maturities of 4 - 12 Months - - Total Current Portion - -
Non-Current Portion Other Investments: - King Country Energy (Unlisted Exchange) - 12 - Unlisted Shares in Civic Assurance 86 87 - Loan to Kakahi Water Board Supply Limited 12 10 - Emissions Trading Scheme ETS 67 1 Total Non-Current Portion 165 110 Total Other Financial Assets 165 110
RDC owns an 8.33% share in the Manawatu Wanganui Regional Disaster Relief Fund Trust. The Trust is not in operation and the value of the Trust is therefore nil. Should the Trust come into operation, RDC will not be in receipt of any funds from the Trust, unless the District is struck by a disaster.
In the event of the Trust being wound up, the surplus assets and funds, after payment of the Trust’s liabilities, including expenses of winding up, shall not be paid or distributed among the Trustees or the Local Authorities, but shall be paid and transferred to such person or body corporate, for the furtherance of charitable purposes within New Zealand, as the Trustees shall determine at the meeting, when the resolution for winding up is duly confirmed.
Fair Value The carrying amount of other financial assets approximates their fair value. More details are shown in note 33.
Other Investments The investments in Civic Assurance are valued according to RDC’s share of the net assets in their financial statements. Shares in King Country Energy were sold during the year after Council agreed to a buy offer from the company. The investment in Civic Assurance is held for strategic purposes, and RDC does not intend to dispose of the asset.
The loan to Kakahi Water Board Supply Limited is a loan for unpaid rates, that is a fixed term, with an option of early termination, should the timber on the land be felled before expiry of the loan. Council will either receive the outstanding loan amount, or an agreed portion of the timber revenue, whichever is higher.
The investment in ETS credits is an investment intended to be held until they are needed to satisfy carbon emissions obligations.
Impairment Due to a diluted share of ownership of Civic Assurance, there was an impairment of the investment of $14,623 in 2013. There was no additional impairments in 2017 or 2018.
None of the other financial assets are past due or impaired.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 30 Part B – Notes to the Financial Statements for Council and Group
16. PROPERTY, PLANT AND EQUIPMENT
Opening Cost/ Opening Accum Opening Carrying Current Year Current Year Current Year Revaluation Cost / Valuation Accum Depn & Carrying Amount As at 30 June 2018 Valuation Depn & Impairment Amount Additions Disposals Depreciation Surplus/ (Deficit) Impairment Charges Charges
Operational Assets Land 9,336 - 9,336 211 - - 756 10,303 - 10,303 Buildings 14,360 (813) 13,547 969 - (893) 1,969 16,486 (894) 15,592 Other Improvements 1,216 (281) 935 254 - (29) - 1,470 (310) 1,160 Library Books 1,161 (979) 182 55 - (119) - 1,216 (1,098) 118 Plant & Vehicles 1,078 (670) 408 275 (20) (196) - 1,079 (612) 467 Computer Equipment 786 (616) 170 34 - (78) - 820 (694) 126
Office Equipment 1,815 (1,429) 386 131 (1) (83) - 1,945 (1,512) 433
Total Operational Assets 29,752 (4,788) 24,964 1,929 (21) (1,398) 2,725 33,319 (5,120) 28,199 - Restricted Assets Land 200 - 200 - - - 17 217 - 217 Improvements 735 (55) 680 - - (55) 53 733 (55) 678 Total Restricted Assets 935 (55) 880 - - (55) 70 950 (55) 895
Infrastructural Assets Roading & Footpaths 237,402 (3,581) 233,821 6,837 - (3,777) 2,449 243,107 (3,777) 239,330 Bridges 44,689 (973) 43,716 1,096 - (1,000) 1,076 45,888 (1,000) 44,888 Land Under Roads 9,115 - 9,115 - - - - 9,115 - 9,115 Water Supply - Treatment Plants 3,493 (336) 3,157 3,411 (55) (389) 509 7,017 (384) 6,633 Water Supply - Reticulation 25,490 (777) 24,713 415 (127) (787) 812 25,809 (783) 25,026 Wastewater - Treatment Plants 8,906 (257) 8,649 56 - (252) 154 8,859 (252) 8,607 Wastewater - Network 15,891 (562) 15,329 455 (72) (556) 375 16,084 (553) 15,531 Stormwater 13,718 (342) 13,376 87 (61) (344) 408 13,809 (343) 13,466 Stopbanks 156 - 156 - - - - 156 - 156 Solid Waste 1,191 (15) 1,176 - - (15) 88 1,264 (15) 1,249 Total Infrastructural Assets 360,051 (6,843) 353,208 12,357 (315) (7,120) 5,871 371,108 (7,107) 364,001
Items Under Construction 2,444 - 2,444 (325) - - - 2,119 - 2,119 Total Property, Plant and Equipment 393,182 (11,686) 381,496 13,961 (336) (8,573) 8,666 407,496 (12,282) 395,214
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 31 Part B – Notes to the Financial Statements for Council and Group
Opening Cost/ Opening Accum Opening Carrying Current Year Current Year Current Year Revaluation Cost / Valuation Accum Depn & Carrying Amount As at 30 June 2017 Valuation Depn & Impairment Amount Additions Disposals Depreciation Surplus/ (Deficit) Impairment Charges Charges
Operational Assets Land 9,333 - 9,333 2 (14) - 15 9,336 - 9,336 Buildings 14,811 (1,069) 13,742 65 (163) (821) 724 14,360 (813) 13,547 Other Improvements 1,079 (256) 823 138 - (27) - 1,216 (281) 935 Library Books 1,101 (865) 236 59 - (113) - 1,161 (979) 182 Plant & Vehicles 1,168 (710) 458 163 (42) (171) - 1,078 (670) 408 Computer Equipment 675 (525) 150 120 (1) (99) - 786 (616) 170 Office Equipment 1,737 (1,345) 392 90 (6) (90) - 1,815 (1,429) 386 Total Operational Assets 29,904 (4,770) 25,134 637 (226) (1,321) 739 29,752 (4,788) 24,964
Restricted Assets Land 200 - 200 - - - - 200 - 200 Improvements 793 (58) 735 9 - (55) (9) 735 (55) 680 Total Restricted Assets 993 (58) 935 9 - (55) (9) 935 (55) 880
Infrastructural Assets Roading & Footpaths 243,133 (3,816) 239,317 6,698 - (3,581) (8,613) 237,402 (3,581) 233,821 Bridges 37,207 (800) 36,407 364 - (973) 7,918 44,689 (973) 43,716 Land Under Roads 9,115 - 9,115 - - - - 9,115 - 9,115 Water Supply - Treatment Plants 3,611 (332) 3,279 117 (51) (341) 153 3,493 (336) 3,157 Water Supply - Reticulation 25,895 (784) 25,111 248 (111) (781) 246 25,490 (777) 24,713 Wastewater - Treatment Plants 8,338 (229) 8,109 36 (16) (257) 777 8,906 (257) 8,649 Wastewater - Network 15,840 (548) 15,292 9 (2) (562) 592 15,891 (562) 15,329 Stormwater 14,288 (411) 13,877 - (3) (343) (155) 13,718 (342) 13,376 Stopbanks 156 - 156 - - - - 156 - 156 Solid Waste 1,210 (68) 1,142 41 - (15) 8 1,191 (15) 1,176 Total Infrastructural Assets 358,793 (6,988) 351,805 7,513 (183) (6,853) 926 360,051 (6,843) 353,208
Items Under Construction 1,128 - 1,128 1,316 - - - 2,444 - 2,444 Total Property, Plant and Equipment 390,818 (11,816) 379,002 9,475 (409) (8,229) 1,656 393,182 (11,686) 381,496
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 32 Part B – Notes to the Financial Statements for Council and Group
Core Infrastructure Asset Disclosures
2018 2017 Closing Book Most Recent Closing Book Most Recent Value Replacement Value Replacement Cost Estimate Cost Estimate For Revalued For Revalued Assets Assets
$000 $000 $000 $000 Roading 239,330 319,792 233,821 310,147 Bridges 44,888 94,005 43,716 91,485 Water Supply - Treatment Plants & Facilities 6,632 8,103 3,157 7,459 - Reticulation 25,026 55,485 24,713 54,176 Wastewater - Treatment Plants & Facilities 8,607 12,362 8,649 12,167 - Reticulation 15,531 36,458 15,329 36,105 Stormwater 13,466 26,997 13,376 26,291
Valuation A revaluation was performed on 1 July 2017 on the following classes of property, plant and equipment and the effects of this revaluation have been reflected in the 2017/18 financial statements: . Roads and bridges. . Infrastructural assets for Water, Wastewater and Stormwater. . Solid waste infrastructural assets. . Land and buildings.
An annual revaluation was performed as at 1 July 2018 that will be reflected in the 2018/19 financial statements. This was reviewed for materiality and impairment. No material difference was noted between the current carrying value and their revalued amounts.
Land (Operational, Restricted and Infrastructural) Land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values. Adjustments have been made to the “unencumbered” land value where there is a designation against the land or the use of the land is restricted because of reserve or endowment status. These adjustments are intended to reflect the negative effect on the value of the land where an owner is unable to use the land more intensely. Land has been valued as if vacant and incorporates the influences of size, contour, quality, location, zoning, designation and current and potential usage. Improvements by any lessee have been excluded, but land development and fertility improvements have been included. In determining fair value, an open market “willing buyer, willing seller” scenario is assumed. This is effectively the price an informed purchaser would have to pay to acquire a similar property.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 33 Part B – Notes to the Financial Statements for Council and Group
Buildings (Operational and Restricted) Specialised buildings are valued at fair value using depreciated replacement cost because no reliable sales data are available for such buildings.
Depreciated replacement cost is determined using a number of significant assumptions:
. The replacement asset is based on the reproduction cost of the specific assets with adjustments where appropriate for obsolescence due to overdesign or surplus capacity.
. The replacement cost is derived from recent construction contracts of similar assets and Property Institute of New Zealand cost information.
. The remaining useful life of assets is defined by taking the economic life of the improvement and reducing this by the effective age of the components within each property.
. Straight line depreciation has been applied in determining the depreciated replacement cost value of the asset.
Non-specialised buildings (e.g., residential buildings) are valued at fair value using market-based evidence. Market rents and capitalisation rates were applied to reflect market value.
Infrastructural Asset Classes: Wastewater, Water, Drainage, Roads and Solid Waste Wastewater, water and drainage are valued using depreciated replacement cost methodology. Roading infrastructural assets are valued using the optimised depreciated replacement cost method. There are a number of estimates and assumptions exercised when valuing infrastructural assets using the optimised depreciated replacement cost method. These include:
. Estimating any obsolescence or surplus capacity of the asset.
. Estimating the replacement cost of the asset. The replacement cost is derived from recent construction contracts in the region for similar assets. In addition, indexed replacement costs are also used in the transport valuation (based on NZTA's March 2017 cost adjustment factors) and in three waters (indexed based on the cost fluctuation adjustment as per BSD3-15:2005)
. Estimates of the remaining useful life over which the asset will be depreciated. These estimates can be affected by the local conditions (e.g., weather patterns and traffic growth). If useful lives do not reflect the actual consumption of the benefits of the asset, then RDC could be over or under estimating the annual depreciation charge recognised as an expense in the Statement of Comprehensive Revenue. To minimise this risk, infrastructural asset useful lives have been determined with reference to the NZ Infrastructural Asset Valuation and Depreciation Guidelines published by the National Asset Management Steering Group and have been adjusted for local conditions based on past experience. Asset inspections, deterioration, and condition modelling are also carried out regularly as part of asset management planning activities, which provides further assurance over useful life estimates.
The most recent valuation for wastewater, water and stormwater drainage was performed by Minesh Patel of Veolia Water Australia and New Zealand who holds the qualification of Bachelor of Engineering (Chemical & Materials) (Hons). Minesh has been extensively involved in the provision of 3 Waters asset services for Veolia since September 2011 and has been involved in previous Ruapehu District Council asset valuations. The valuation had an effective date of 1 July 2017. The most recent valuation for roading was performed by Scott McIntyre (BBIM AITP) and reviewed by Stephen Fletcher (REA, MTransport) both of GHD Limited and the valuation had an effective date of 1 July 2017.
The most recent valuation for buildings, land and solid waste assets (valued by assessing the buildings on transfer station locations) was performed by Chelsea Mudge (BCom (VPM) MPINZ) and Robert Lust (BBS (VPM) MPINZ) of Quotable Value Ltd and the valuation had an effective date of 1 July 2017. Land under Roads Land under roads are carried at deemed cost.
Library Collections Library collections are valued at depreciated cost.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 34 Part B – Notes to the Financial Statements for Council and Group
Total Fair Value of Property, Plant and Equipment Valued by each Valuer ($000)
Actual Actual 2018 2017 $000 $000 QV Asset and Advisory 27,823 25,823 Veolia Water 67,483 67,223 GHD 281,063 275,029
A comparison of the carrying value of buildings valued using depreciated replacement cost and buildings valued using market-based evidence is as follows:
2018 2017
$000 $000 Operational buildings Depreciated replacement cost 12,439 11,687 Market-based evidence 3,459 3,102 Total carrying value of operational buildings 15,898 14,789
Restricted buildings Depreciated replacement cost 732 726 Market-based evidence - Total carrying value of restricted buildings 732 726
Impairment and Security for Liabilities There were no impairment or reversals recognised in the current year (2017: Nil).
None of RDC’s assets are pledged as security for liabilities in 2018 (2017: Nil).
Proceeds from Insurance Council received $22k from its insurers for vehicle damages (2017: $18k).
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 35 Part B – Notes to the Financial Statements for Council and Group
Work in Progress
Capital Works in Progress by class of asset is detailed below:
Actual Actual 2018 2017 $000 $000 Operational Assets Land - - Buildings 76 22 Other Improvements 286 5 Library Books - - Plant and Vehicles - - Computer Equipment 91 - Office Equipment - -
Infrastructural Assets Roading 460 502 Bridges 108 - Land Under Roads - - Water Supply 316 953 Wastewater 666 826 Stormwater 116 136 Stopbanks - - Solid Waste - -
Property Plant and Equipment Capital Works in Progress Total 2,119 2,444
Intangibles - -
Total Capital Works in Progress by Asset Class 2,119 2,444
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 36 Part B – Notes to the Financial Statements for Council and Group
17. INTANGIBLE ASSETS
The intangible assets owned by RDC include computer software and a resource consent.
Actual Actual 2018 2017 $000 $000 Carrying Amount at 1 July 362 437
Intangibles Cost Balance At 1 July 2,079 1,953 Additions 102 126 Disposals - - Balance At 30 June 2,181 2,079
Accumulated Amortisation Balance At 1 July (1,717) (1,516) Amortisation Charge (129) (201) Disposals - - Balance At 30 June (1,846) (1,717)
Carrying Amount at 30 June 335 362
Carrying Amount per Asset Class Software 215 236 Pipiriki Wastewater Resource Consent 120 126 Carrying Amount at 30 June 335 362
There are no restrictions over the title or security held on the intangible assets. There were no internally generated intangible assets (2017 Nil).
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 37 Part B – Notes to the Financial Statements for Council and Group
18. DEPRECIATION AND AMORTISATION EXPENSE BY GROUP OF ACTIVITY
Actual Actual Directly Attributable Depreciation and Amortisation Expense by Group 2018 2017 of Activity $000 $000 Community Support 6 23 Community Facilities 909 848 Land Transport 4,778 4,554 Leadership 6 7 Stormwater And Flood Protection 344 343 Wastewater 824 819 Water Supply 1,177 1,122 Waste Management And Minimisation 21 15 Total Directly Attributable Depreciation And Amortisation By Group Of 8,065 7,731 Activity Depreciation And Amortisation Not Directly Related To Group Of Activities 637 698 Total Depreciation and Amortisation Expense 8,702 8,429
19. BIOLOGICAL ASSETS
RDC owns 10.6 hectares of land able to be used for forestry. On 8.1 hectares the timber has been felled during the last five years and no new operations have commenced. On the remaining 2.5 hectares there are no operations. RDC has therefore decided not to value the forestry assets. The land that is available for forestry is currently included in the asset category lands. 20. INVESTMENT PROPERTY
Actual Actual 2018 2017 $000 $000 Land 2,364 1,985 Buildings 466 449 Balance at 30 June 2,830 2,434
Movement in investment property during the year was:
Actual Actual 2018 2017 $000 $000 Balance at 1 July 2,435 2,319 Reclassification to PPE - - Additions – Vested Assets - - Fair Value Gains/(Losses) on Valuation 395 115 Balance at 30 June 2,830 2,434
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 38 Part B – Notes to the Financial Statements for Council and Group
Investment properties are revalued annually effective at 30 June to fair value. The valuation was performed by Sarah Busuttin BBS (VPM) ANZIV MPINZ, of Quotable Value Ltd and the valuation had an effective date of 30 June 2018.
There are no restrictions on the realisability of investment property or the remittance of revenue or proceeds from disposal.
Valuation Investment Property Land Investment land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values. Adjustments have been made to the “unencumbered” land value where there is a designation against the land or the use of the land is restricted because of reserve or endowment status. These adjustments are intended to reflect the negative effect on the value of the land where an owner is unable to use the land more intensely. Land has been valued as if vacant and incorporates the influences of size, contour, quality, location, zoning, designation and current and potential usage. Improvements by any lessee have been excluded, but land development and fertility improvements have been included. In determining fair value an open market “willing buyer, willing seller” scenario has been assumed. This is effectively the price an informed purchaser would have to pay to acquire a similar property.
Investment Property Buildings Valuations give consideration to:
Sales comparison approach, comparing structures based on market-based net rates per square metre:
. Income approach, capitalising net income and discounted cash flow (based on assumptions including future rental revenue, anticipated maintenance costs, and appropriate discount rates);
. Depreciated replacement cost is used if the fair value method cannot be established using market data. Depreciated replacement cost looks at replacement costs of material less economic physical obsolescence and any over design.
Actual Actual Revenue and Expenditure on Investment Property 2018 2017 $000 $000 Rental Revenue 28 21 Expenditure on Property Generating Revenue (10) (12) Expenditure on Property Not Generating Revenue (5) (7)
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 39 Part B – Notes to the Financial Statements for Council and Group
21. CREDITORS AND OTHER PAYABLES
Actual Actual 2018 2017 $000 $000 Current Exchange Trade Payables 3,890 2,826 Accrued Expenses 1,438 676 Amounts Due To Customers For Contract Work 74 - 5,402 3,502 Non-Exchange Trade Payables 109 60 Accrued Expenses - - Other Financial Liabilities 138 116 Transitional GST Payable 50 51 297 227
Total Current Portion 5,699 3,729
Non-Current Non-Exchange Transitional GST Payable - 50
Total Creditors and Other Payables 5,699 3,779
Creditors and other payables are non-interest bearing and are normally settled on 30 day terms, therefore, the carrying value of the creditors and other payables approximates their fair value.
RDC has moved from a GST payable basis to invoice basis. A significant liability arose and IRD has agreed that the Council can pay this over an extended period.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 40 Part B – Notes to the Financial Statements for Council and Group
22. BORROWINGS
Carrying Amount Fair Value 2018 2017 2018 2017 $000 $000 $000 $000 Current Portion Secured Loans 14,300 10,300 13,736 9,856 Bank Overdraft - - - - Total Current Portion 14,300 10,300 13,736 9,856
Non-Current Portion Secured Loans (Fixed Interest) 11,500 15,500 10,078 13,225 Total Non-Current Portion 11,500 15,500 10,078 13,225
Total Borrowings 25,800 25,800 23,814 23,082
Actual Actual Weighted Average Interest Rate 2018 2017 Current 4.11% 4.50% Non-Current 4.48% 4.80% Overall 4.27% 4.68%
Secured Loans RDC’s secured loans of $25,800,000 are borrowed at fixed rates of interest from the major trading banks. Fixed rate debt rates are set at the time of rollover and include a margin for credit risk. Rates are fixed on terms in line with RDC’s Liability Management Policy, with staggered rollovers to mitigate interest rate risk.
Security An overdraft facility of $2,000,000 (drawn to $0) is secured by a charge over rates (2017: $2,000,000). There are no restrictions on the use of this facility.
Secured loans are secured over either separate or general rates of RDC.
Fair Values The fair values are based on cash flows discounted using weighted average interest rates based on borrowing costs ranging from 3.40% to 6.32% (2017: 3.57% to 6.32%).
Internal Borrowings RDC has no internal borrowings, defined as per clause 27 of schedule 10 in the Local Government Act 2002. The Council is keeping track of internal movement of funds but these do not qualify as internal borrowings under this provision.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 41 Part B – Notes to the Financial Statements for Council and Group
23. EMPLOYEE ENTITLEMENTS
Actual Actual 2018 2017 $000 $000 Annual Leave and Special Leave 307 313 Accrued Salaries 240 224
Total Employee Entitlements 547 537
24. PROVISIONS
Actual Actual 2018 2017 $000 $000 Non-Current Portion Landfill Aftercare Provision 188 184
Movement In Landfill Aftercare Provision Balance at 1 July 184 183 Additional Provisions Made 4 1 Amounts Used - - Unused Amount Reversed - - Discount Unwind (Note 5) - - Balance at 30 June 188 184
Landfill Aftercare Costs Upon formation of RDC from amalgamation of smaller councils, and the introduction of the Resource Management Act (1991), 13 landfills throughout the District were phased out. Closed landfills are capped and monitored according to resource consent requirements. The risks associated with this operation are not believed to be significant and the expense is budgeted for annually as part of the relevant activity.
RDC obtained resource consent in July 2001 to operate a landfill until October 2020. There is a responsibility under the resource consent to provide ongoing maintenance and monitoring of the landfill after the site is closed.
The landfill aftercare costs and provision referred to in this note relate to the one operational landfill in Taumarunui (which will be capped and monitored in the future).
The cash outflows for landfill post-closure costs are expected to occur through to 2055. The long-term nature of the liability means that there are inherent uncertainties in estimating costs that will be incurred. The provision has been estimated taking into account existing technology and known changes to legal requirements. The gross provision is $187,916 (2017: $183,712), and was set after obtaining an engineer’s valuation of what the provision needed to be at 30 June 2016. An inflation factor of 2.3% has been applied for 2018 (2017:2%).
Going forward the Taumarunui landfill and the future provision financial requirements will be decided by Council and the community and a full revision will be occurring during the 2019/20 financial year.
The management of the landfill will influence when some liabilities are recognised. The current landfill will operate in two stages. A liability relating to Stage Two will only be created when this stage is commissioned and when refuse begins to accumulate. Stage One has been completed successfully. Cell one of three cells in the closure design has now been capped. Stage Two closure planning is currently being undertaken, this will continue over the next three years with decisions made on whether to operate a clean fill on the site from 2020.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 42 Part B – Notes to the Financial Statements for Council and Group
25. EQUITY
Actual Actual 2018 2017 $000 $000 Ratepayers Equity Balance at 1 July 265,832 263,318 Transfers (to)/from Asset Revaluation Reserves on Disposal 161 218 Transfers from Restricted Reserves 297 85 Transfers to Restricted Reserves - - Transfers to Financial Assets at Fair Value through Other Comprehensive - - Revenue Reserve Surplus / (Losses) for the year 4,448 2,211 Balance at 30 June 270,738 265,832
Other Reserves Restricted Reserves Balance at 1 July 360 445 Transfers to Accumulated Funds (297) (85) Transfers from Accumulated Funds - - Balance at 30 June 63 360
Asset Revaluation Reserve Balance at 1 July 93,604 92,164 Net Revaluation Gains/(Losses) 8,578 1,658 Revaluation Adjustment - - Transfer to Ratepayers Equity on Disposal of Property (161) (218) Balance at 30 June 102,021 93,604
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 43 Part B – Notes to the Financial Statements for Council and Group
Actual Actual 2018 2017 $000 $000 Asset Revaluation Reserves For Each Asset Class Consist Of: Operational Assets - Land 5,813 5,041 - Buildings 7,443 5,422 Infrastructural Assets - Wastewater System 13,992 13,492 - Stormwater System 9,436 9,056 - Water Supply System 15,412 14,193 - Land Transport (Roading Network) 49,918 46,393 - Solid Waste 7 7 Balance as at 30 June 102,021 93,604
Fair Value Through Comprehensive Revenue and Expense Reserve Balance at 1 July 43 39 Transfer from ratepayers equity - - Net revaluation gains/(losses) 69 4 Balance at 30 June 112 43
Total Other Reserves 102,284 94,007 Total Equity 372,934 359,839
The fair value through comprehensive income reserve reflects the cumulative revaluations on other financial assets for which gains and losses are reflected through other comprehensive revenue and expense.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 44 Part B – Notes to the Financial Statements for Council and Group
Information about reserve funds held for a specific purpose is provided below:
Transfers Balance Transfers Balance Activities for which out of Reserve 1 Jul into Fund 30 Jun the Reserve Relates Fund $000 $000 $000 $000 2018 TBC Land Subdivision Reserve Community Facilities 73 - 73 - OBC Reserve Contributions Community Facilities 2 - 2 - Waimarino Reserves Community Facilities 6 - 6 - Property Disposition Reserves Community Facilities 150 - 150 - OBC Roading Contributions Land Transport 4 - 4 - ECNZ Stratford-Huntly Amenities Leadership 85 - 42 43 ECNZ Whanganui River Community Facilities 11 - 11 - Amenities Raetihi Water Supply Water Supply 15 - 9 6 Raetihi Lighting Community Facilities 5 - - 5 Ohakune Lighting Community Facilities 9 - - 9 Total restricted reserves 2018 360 - 297 63
2017 TBC Land Subdivision Reserve Community Facilities 73 - - 73 OBC Reserve Contributions Community Facilities 2 - - 2 Waimarino Reserves Community Facilities 6 - - 6 Property Disposition Reserves Community Facilities 150 - - 150 OBC Roading Contributions Land Transport 4 - - 4 ECNZ Stratford-Huntly Amenities Leadership 85 - - 85 ECNZ Whanganui River Community Facilities 11 - - 11 Amenities Raetihi Water Supply Water Supply 100 - 85 15 Raetihi Lighting Community Facilities 5 - - 5 Ohakune Lighting Community Facilities 9 - - 9 Total restricted reserves 2017 445 - 85 360
Restricted reserves are those reserves subject to specific conditions accepted as binding by Council and which Council may not revise without reference to the Courts or a third party. Transfer from these reserves may only be made for certain specific purposes or when specified conditions are met. Most of the restricted reserves were “inherited” during the amalgamation that created RDC.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 45 Part B – Notes to the Financial Statements for Council and Group
Purpose of Each Reserve Fund
TBC Land Subdivision Reserve The fund is to be used within the former Taumarunui Borough Council area, generally for the purpose of improving or developing any land held as public reserves and was created prior to the 1989 Local Government re-organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.
OBC Reserve Contributions The fund is to be used within the former Ohakune Borough Council area, generally for the purpose of improving or developing any land held as public reserves and was created prior to the 1989 Local Government re- organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.
Waimarino Reserves The fund is to be used within the former Waimarino District Council area, generally for the purpose of improving or developing any land held as public reserves and was created prior to the 1989 Local Government re- organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.
Property Disposition Reserves The Property Disposition Reserve was created following the sale of the Owhango Pensioner Flats in early 2000. This was a book entry, which showed what proceeds were available following that sale. The Property Disposition Reserve is held for the purposes of buying more property in the future, anywhere in the Ruapehu District.
OBC Roading Contributions This fund was established as a contingency to help fund emergency works that may occur in the former Ohakune Borough Council area and was created prior to the 1989 Local Government re-organisation which resulted in the amalgamation of the various Borough Councils in the Ruapehu area into the Ruapehu District Council.
ECNZ Stratford-Huntly Amenities The fund was created prior to 1989 and was established to provide “public” amenities being amenities owned or administered by the Crown or Council for recreational, cultural or social purposes.
ECNZ Whanganui River Amenities The fund was created prior to 1989 and was established for the purpose of maintaining or developing amenities in the Taumarunui urban area.
Raetihi Water Supply This fund resulted from a contribution by Ruapehu Alpine Lifts Ltd which is designated for Raetihi community projects. $85k was allocated to the Raetihi community for the instalment of water filters in their homes.
Raetihi Lighting In 2013 funds were allocated to the Raetihi community for community lighting. These remain unspent at 30 June 2018.
Ohakune Lighting In 2013, funds were allocated to the Ohakune community. In addition, funds were vested on the Council for use on this project. These remain unspent at 30 June 2018.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 46 Part B – Notes to the Financial Statements for Council and Group
26. RECONCILIATION OF NET SURPLUS (DEFICIT) TO NET CASH FLOW FROM OPERATING ACTIVITIES
Actual Actual 2018 2017 $000 $000 Net Surplus (Loss) 4,448 2,211
Add / (Less) Non-Cash Items Share of Associate's (Surplus) / Deficit (139) (42) Depreciation and Amortisation Expense 8,702 8,429 (Gains) / Losses on Impairment of Receivables 63 - (Gains) / Losses in Fair Value of Investment Property (483) (116) 12,591 10,482 Add / (Less) Items Classified As Investing Or Financing Activities (Gains) / Losses (Net) on Disposal of Property, Plant and Equipment 266 357 (Gains) / Losses on Financial Assets Taken Through Gains / Losses (49) 11 (Gains) / Losses on Disposal of Investments Classified as Fair Value through (13) - Other Comprehensive Income 204 368 Add / (Less) Movements In Working Capital Items (Inc) / Dec in Debtors and Other Receivables (178) (404) (Inc) / Dec in Prepayments and Accrued Income (45) 558 (Inc) / Dec in Inventory (87) (46) Inc / (Dec) in Creditors and Other Payables 228 579 Inc / (Dec) in Provisions 4 1 Inc / (Dec) in Other Employee Entitlements 10 117 Inc / (Dec) in GST Term Liability (51) (50) (119) 755
Net Cash Inflow / Outflow from Operating Activities 12,676 11,605
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 47 Part B – Notes to the Financial Statements for Council and Group
27. COMMITMENTS AND OPERATING LEASES
Actual Actual 2018 2017 $000 $000 Capital Commitments Roading 3,520 7,039 Bridges 464 928 Water 238 - Total Capital Commitments 4,222 7,967
Operating Commitments Not Later Than One Year 9,326 9,372 Later Than One Year And Not Later Than Five Years 6,166 11,534 Later Than Five Years - 3,409 Total Non-Cancellable Operating Commitments 15,493 24,315
Operating Leases As Lessee Not Later Than One Year 472 148 Later Than One Year And Not Later Than Five Years 238 423 Later Than Five Years 203 256 Total Non-Cancellable Operating Leases 913 827
Operating Leases As Lessor Not Later Than One Year 87 70 Later Than One Year And Not Later Than Five Years 227 211 Later Than Five Years 50 47 Total Non-Cancellable Operating Leases 364 328
Operating Commitments RDC has entered into a number of non-cancellable contracts for the delivery of services. Further details on these commitments are disclosed in Section One of this report.
Operating Leases RDC leases property, plant and equipment in the normal course of its business. The future aggregate minimum lease payments payable under non-cancellable operating leases are as shown above.
RDC leases an office building as the lessee, for which the lease expires in September 2031, with a right of renewal for a further 25 years. There is no option to purchase the asset at the end of the lease term. There are no other significant leases.
The total minimum future sublease payments expected to be received under non-cancellable subleases at balance date is $nil (2017: $nil).
There are no restrictions placed on the council by any of the leasing arrangements. No contingent rents have been recognised during the period.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 48 Part B – Notes to the Financial Statements for Council and Group
28. CONTINGENCIES
Contingent Liabilities
Actual Actual 2018 2017 $000 $000 Legal Proceedings 150 150
RDC is subject to one legal proceeding against it, alleging inadequate compensation for acquired land. The potential liability to RDC, if the claim is successful, is estimated to be $150,000. The outcome of the claim will not be known until legal proceedings progress further (as for 2017).
In April 2013, the Ministry of Education (MOE) initiated High Court proceedings against Carter Holt Harvey (CHH) and others alleging inherent defects in the shadowclad plywood cladding sheets manufactured and distributed by CHH. The MOE’s original claim against CHH was for 833 school buildings, 6 of which are located within the Ruapehu District. In 2016, CHH commenced proceedings against 48 Councils, including the Ruapehu District Council, alleging a breach of duty in the processing of building consents, undertaking building inspections and issuing Code Compliance Certificates. During the current year the Councils sought to strike out CHH’s claims against them. The High Court declined the strike out of the claim, but struck out proceedings in relation to 28 school buildings (0 in Ruapehu District) built outside the 10 year long stop contained within the Building Act 2004. Further, CHH applied for trial staging, with proceedings to commence in relation to 20 buildings. MOE opposed the application, seeking a trial on the determination of whether shadowclad is inherently defective. The High Court accepted the MOE proposal. CHH has appealed this decision. At present, there is still insufficient information to conclude on potential liability and claim quantum, if any.
29. RELATED PARTY TRANSACTIONS
Transactions with Key Management Personnel
2018 2017 Key Management Personnel Compensation FTE’s $000 FTE’s $000 Councillors Remuneration - 304 - 277 Full Time Equivalent Members 12 - 12 - Senior Management Team Including Chief Executive Salaries and other Short-Term Employee Benefits - 703 - 653 Post-Employment Benefits - - - - Other Long-Term Benefits - - - - Termination Benefits - - - - Full Time Equivalent Members 4 - 4 - Total Key Management Personnel Compensation 16 1,007 16 930
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 49 Part B – Notes to the Financial Statements for Council and Group
Due to the difficulty in determining the full-time equivalent for Councillors, the full-time equivalent figure is taken as the number of Councillors.
Key management personnel include the Mayor, Councillors, Chief Executive and the other three members of the senior management team.
During the year, Councillors and senior management, as part of a normal customer relationship, were involved in minor transactions with RDC (such as the payment of rates).
Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect the Council and group would have adopted in dealing with the party at arm’s length in the same circumstances.
Related party disclosures have also not been made for transactions with entities within the Council group (such as funding and financing flows), where the transactions are consistent with the normal operating relationships between the entities and are on normal terms and conditions for such group transactions.
Councillors are also involved in various non-profit organisations throughout the community, which receive funding from RDC. There has been no disclosure where the transactions are consistent with a client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect the Council and group would have adopted in dealing with the party at arm’s length in the same circumstances.
RDC Holdings Ltd (a 100% Council owned subsidiary) which is non-active and has no revenue, expenditure, assets or liabilities, and there have been no transactions recorded in the 2018 financial year. (2017: Nil).
Provisions/Impairments No impairments have been required for any receivables to related parties (2017: Nil).
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 50 Part B – Notes to the Financial Statements for Council and Group
30. REMUNERATION
Chief Executive The total Chief Executive remuneration was:
Chief Executive 2018 2017 Salary – C. Manley 262,491 238,831 Superannuation Contribution – C. Manley 7,516 6,522 Total Chief Executive Remuneration 270,007 245,353
Elected Representatives Remuneration paid to elected representatives:
Council 2018 2017 Cameron, Don (Mayor) 83,801 82,400 Cosford, Graeme 19,106 20,348 Dowsett, Cynthia 19,556 19,413 Doyle, Adie 19,039 13,416 Gillard, Marion (Deputy Mayor) 28,944 28,307 Goddard, Ben 19,481 19,244 Hoeta, Vivienne 19,181 13,781 Ngatai, Karen 19,256 21,224 Nottage, Rabbit 18,994 18,982 Wheeler, Kim 18,806 13,425 Wilson, Murray 18,731 13,162 Windell, Jacques 18,956 13,669 Total 303,851 277,371
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 51 Part B – Notes to the Financial Statements for Council and Group
Community Boards Remuneration paid to Community Board Members:
Community Boards 2018 2017 Biddle, Missy 4,190 1,498 Chapman, John 3,053 1,451 Hotter, John (Luigi) 8,380 6,523 Oliver, Winston 4,190 2,918 O’Neill, Simon 2,839 1,970 Pehi, Peta 2,828 1,263 Pendleton, Jenni 5,678 5,706 Whale, Allan 4,190 4,120 Total 35,348 25,449 Total Elected Representatives' Remuneration 339,199 302,820
Councillors (excluding the Mayor) attended the following meetings as part of their roles:
RDC Councillor Meeting Attendance Council Total Rep External
Cosford, Graeme 40 1 41 Dowsett, Cynthia 36 3 39 Doyle, Adie 42 12 54 Gillard, Marion 64 10 74 Goddard, Ben 32 3 35 Hoeta, Vivienne 22 2 24 Ngatai, Karen 42 2 44 Nottage, Rabbit 32 1 33 Wheeler, Kim 41 4 45 Wilson, Murray 38 1 39 Windell, Jacques 38 - 38 Total 427 39 466
RDC Rep External represents meetings where the Councillor is attending as the Council appointed representative.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 52 Part B – Notes to the Financial Statements for Council and Group
Council Employees
Total Annual Remuneration By Band 2017 Bands 2017 < $60,000 64 $60,000 - $79,999 13 $80,000 - $99,999 7 $100,000 - $139,999 5 $140,000 - $259,999 4 Total Employees 93
Total remuneration includes non-financial benefits provided to employees.
At balance date, the Council employed 56 (2017: 53) full-time employees, with the balance of staff representing 20.72 (2017: 25.81) full-time equivalent employees. A full-time employee is determined on the basis of a 40-hour working week.
Total Annual Remuneration By Band 2018 Bands 2018 < $60,000 61 $60,000 - $79,999 13 $80,000 - $99,999 6 $100,000 - $159,999 8 $160,000 - $279,999 1 Total Employees 89
31. SEVERANCE PAYMENTS
For the year ended 30 June 2018, RDC made one severance payment of $9,279 (2017: Nil).
32. EVENTS AFTER BALANCE DATE
There are no known events after balance date.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 53 Part B – Notes to the Financial Statements for Council and Group
33. FINANCIAL INSTRUMENT RISKS
Financial Instrument Categories
The accounting policies for financial instruments have been applied to the line items below:
Actual Actual 2018 2017 $000 $000 Financial Assets Cash And Cash Equivalents 2,252 1,795 Debtors And Other Receivables 2,856 2,678 Accrued Income 1,088 1,073 Total Loans And Receivables 6,196 5,546
Fair Value Through Other Comprehensive Revenue Other Financial Assets: - Listed Shares - - Unlisted Shares 86 99 - Other Investments 79 11 Total Fair Value Through Other Comprehensive Revenue 165 110
Financial Liabilities Financial Liabilities At Amortised Cost Creditors And Other Payables 5,649 3,678 Borrowings: - Overdraft - - Secured Loans 25,800 25,800 - Bonds (Fixed Interest) Total Financial Liabilities At Amortised Cost 31,449 29,478
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 54 Part B – Notes to the Financial Statements for Council and Group
Fair Value Hierarchy Disclosures The majority of RDC’s financial assets are valued using non-observable inputs. RDC has assessed the value of Council’s financial assets as not material and has therefore chosen not to present Fair Value Hierarchy Disclosures.
Valuation Techniques with Significant Non-Observable Inputs (Level 3) The table below provides reconciliation from the opening balance to the closing balance for the Level 3 Fair Value Measurements:
Actual Actual 2018 2017 $000 $000 Balance at 1 July 99 105 Gains and Losses Recognised in the Surplus or Deficit 14 (6) Gains and Losses Recognised in other Comprehensive Revenue 65 - Purchases - - Sales (13) - Transfers into Level 3 - - Transfers out of Level 3 - - Balance at 30 June 165 99
These investments include unlisted shares in Civic Assurance and King Country Energy ETS units (unlisted exchange) which were sold in 2018. Also included is a loan to the Kakahi Water Supply Board Limited. The increase in the value of the loan includes capitalisation of interest income and rates revenue.
Financial Instruments Risk RDC has a series of policies to manage the risks associated with financial instruments, is risk averse and seeks to minimise exposure from its treasury activities. Council has approved RDC’s established Liability Management and Investment Policies. These policies do not allow any speculative transactions.
Market Risk Price Risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices. RDC does not have any material exposure to price risk.
Fair Value Interest Rate Risk Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Borrowings and investments at fixed rates of interest expose RDC to fair value interest rate risk. RDC’s Liability Management Policy sets the minimum and maximum levels of fixed interest rate exposure to borrowings across various time intervals.
Cash Flow Interest Rate Risk Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates. Borrowings and investments issued at variable interest rates expose RDC to cash flow interest rate risk.
RDC’s policy is to raise long-term borrowings on fixed interest rates. There is no significant exposure to cash flow interest rate risk.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 55 Part B – Notes to the Financial Statements for Council and Group
Credit Risk Credit risk is the risk that a third party will default on its obligation to RDC, causing it to incur a loss. Financial instruments which potentially subject RDC to credit risk principally consist of bank balances, accounts receivable, investments and other guarantees.
Debtors and other receivables arise mainly from Council’s statutory functions. Therefore, there are no procedures in place to monitor or report the credit quality of debtors and other receivables with reference to internal or external credit ratings. Council has no significant concentrations of credit risk in relation to debtors and other receivables, as it has a large number of credit customers, mainly ratepayers. Council has powers under the Local Government (Rating) Act 2002 to recover outstanding debts from ratepayers.
RDC’s Investment Policy limits the amount of credit exposure on investment instruments to any one institution or organisation. There are also minimum credit rating limits in place. RDC holds no collateral or credit enhancements for financial instruments that give rise to credit risk. RDC’s maximum credit risk exposure for each class of financial instrument is as follows:
Actual Actual 2018 2017 $000 $000 Cash at Bank and Term Deposits 2,252 1,795 Debtors and Other Receivables 2,856 2,678 Accrued Income 1,088 1,073 Other Financial Assets (Investments) 165 110 Total Credit Risk 6,361 5,656
Credit Quality of Financial Assets The credit quality of financial assets, that are neither past due nor impaired, can be assessed by reference to Standard and Poor’s credit ratings, where such ratings are available.
AA- Unrated Total $000 $000 $000 2018 Cash at Bank and Term Deposits 2,252 2,252 Debtors and Other Receivables 2,856 2,856 Accrued Income 1,088 1,088 Other Financial Assets (Investments) 165 165 Total Credit Risk 2,252 4,109 6,361
2017 Cash at Bank and Term Deposits 1,795 - 1,795 Debtors and Other Receivables - 2,678 2,678 Accrued Income - 1,073 1,073 Other Financial Assets (Investments) - 110 110 Total Credit Risk 1,795 3,861 5,656
Other financial assets are mainly assets not able to be credit rated. The remaining assets are of insignificant value and are therefore not rated.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 56 Part B – Notes to the Financial Statements for Council and Group
Liquidity Risk Management of Liquidity Risk Liquidity risk is the risk that RDC will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. RDC aims to maintain flexibility in funding by keeping committed credit lines available.
RDC manages its borrowings in accordance with its funding and financial policies which include a Liability Management policy (adopted as part of RDC’s Long Term Plan).
RDC has a maximum amount that can be drawn down against its overdraft facility of $2m (2017: $2m).
Contractual Maturity Analysis of Financial Liabilities The following table analyses RDC’s financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. Future interest payments on floating rate debt are based on the relevant interest rate at balance date. The amounts disclosed are the contractual undiscounted cash flows and include interest payments.
Carrying Contractual Cash Flows Amount Total < 1 year 1-2 years 2-5 years 5+ years $000 $000 $000 $000 $000 $000 30 June 2018 Creditors and Other Payables 5,649 5,649 5,649 - - - Overdraft ------Secured Loans 25,800 27,400 14,997 7,901 4,502 - Bonds (Fixed Interest) ------Total 31,449 33,049 20,646 7,901 4,502 -
30 June 2017 Creditors and Other Payables 3,678 3,678 3,678 - - - Overdraft ------Secured Loans 25,800 28,441 11,353 4,686 8,264 4,138 Bonds (Fixed Interest) ------Total 29,478 32,119 15,031 4,686 8,264 4,138
Sensitivity Analysis The following table illustrates the potential profit and loss impact due to reasonable possible market movements, with all other variables held constant, based on RDC’s financial instrument exposures at balance date. There are no financial instruments held for which foreign exchange risk applies. As there is no interest rate to Council, as all interest rates are at a fixed interest rate as balance date (including prior year) no table is included.
2018 2017 Interest Rate Risk (Through Surplus) -50bp +100bp -50bp +100bp $000 $000 $000 $000 Financial Assets Cash and Cash Equivalents (1) 2 (1) 2
Financial Liabilities Cash and Cash Equivalents - - - - Term Loans - - - - Total Sensitivity (1) 2 (1) 2
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 57 Part B – Notes to the Financial Statements for Council and Group
Explanation of Interest Rate Risk Sensitivity The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured as a basis point (bp) movement. For example, a decrease in 50bp is equivalent to a decrease in interest rates of 0.5%.
As Council only secures borrowing through loans, there is no interest rate risk sensitivity on the financial liabilities.
34. CAPITAL MANAGEMENT
Council’s capital is its equity (or ratepayers’ funds) which comprise accumulated funds and reserves. Equity is represented by net assets.
The Local Government Act 2002 (the Act) requires RDC to manage its revenues, expenses, assets, liabilities, investments and general financial dealings prudently and in a manner that promotes the current and future interests of the community. Ratepayers’ funds are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments and general financial dealings.
Council complied with all externally imposed capital requirements to which it is subject.
The objective of managing these items is to achieve intergenerational equity. This is a principle promoted in the Act and applied by RDC. Intergenerational equity requires today’s ratepayers to meet the costs of utilising RDC’s assets and does not expect them to meet the full cost of long-term assets that will benefit ratepayers in future generations. Additionally, RDC has in place Asset Management Plans for major classes of assets detailing renewal and maintenance programmes, to ensure that ratepayers in future generations are not required to meet the costs of deferred renewals and maintenance. RDC is also focussing efforts on ensuring that it is being “smart” with how it maintains and upgrades assets to minimise the impact on ratepayers now and in the future.
The Act requires RDC to make adequate and effective provision in the Long Term Plan (LTP) and in its Annual Plan (where applicable) to meet the expenditure needs identified in these plans. The Act also sets out the factors that RDC is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding are set out in the funding and financial policies in RDC’s LTP.
RDC has the following Council created reserves:
. Reserves for different areas of benefit. . Trust and bequest reserves.
Reserves for different areas of benefit are used where there is a discrete set of rate or levy payers as distinct from payers of general rates. Any surplus or deficit relating to these separate areas of benefit is applied to the specific reserves.
Trust and bequest reserves are set up where funds that are restricted for a particular purpose have been donated to RDC. Interest is added to trust and bequest reserves where applicable and deductions are made where funds have been used for the purpose for which they were donated.
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35. COUNCIL CONTROLLED ORGANISATIONS
RDC Holdings Limited is a company created as a Local Authority Trading Enterprise (LATE) to comply with changes in tendering rules for contracting. The trading activities ceased with the sale of the LATE contracts Plant and Equipment to Works Construction in 1997. The company has been retained as an inactive company because, periodically, opportunities arise which may make it a useful entity. None of these prospective opportunities has materialised to date. RDC Holdings Ltd is intended to be an exempt CCO and has no performance targets. The resolution was passed at the Council Meeting of 11 November 2014.
The RDC Holdings Ltd CCO exemption expired on 11 November 2017 and a Council resolution will be passed in the 2018/19 financial year to renew the exemption for a further three years.
Note 14 also has details of Council’s Associates which are also exempt CCOs.
The Whanganui District Councils Forestry Joint Committee (a formal standing committee) consists of three participating Councils and has a tax free status. More information is included in Note 37.
36. EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET
Explanations for major variations from RDC’s EAP budget figures for 2017/18 are as follows:
Statement of Comprehensive Revenue and Expense
Revenue Rates are over budget by $712k. This is due to the reclassification of $357k of water by meter charges, which were previously being recorded and budgeted for in Fees and Charges. The recording of the water by meter charges revenue is now being recorded in Rates Revenue, however, the budget is still sitting under Fees and Charges. The other factor effecting the rates revenue being over budget are the unbudgeted rates penalties of $435k. Discounts given of $124k and write-offs which are unbudgeted have an offsetting effect on the rate penalties take. Fees and Charges are under budget by $1,151k. There was a change in the classification to the i-SITE revenue from Fees and Charges to Other Revenue. The actual revenue now goes to Other Revenue, but the forecast of $622k for the I-SITE revenue has been left in Fees and Charges leaving the budget overstated. Additionally, the EAP number includes $306k budget for water meter charges to users. This is however captured through Rates income in practice currently. This will change in LTP 2018-28. Finally, $138k worth of budget was not realized in relation to resource consenting process for the DOC 3 Waters management contract due to timing.
Receipts from Subsidies and Grants is above budget by $1,148k. The majority of this increase relates to the Central Government grant of $1,517k for the Raetihi Water Treatment plant completed during 2017/18 financial year. There was also additional Tourism Infrastructure Funding (TIF) of $364k related to a number of new toilet builds completed throughout the district. These increases were offset by an under spend in Land Transport renewal Capital works, resulting in less funding from NZTA subsidies than budgeted.
Other Revenue is over budget by $1,869k. Major influences include $1,036k of budget reclassification that sits in Fees and Charges, but should be reported against Other Revenue, and would reduce the variance by this amount. Revenue from Department of Conservation Three Waters Management Contract achieved better than budget by $354k,and unbudgeted funding from MBIE added Cycleway maintenance $112k, Regional Development $55k, Accelerate 25 $10k. I-Site commission revenue contributed $128k, and petrol tax received was up $23k. Miscellaneous other receipts include $26k RAL cost recovery for resource consent process, $14k Ministry of Social Development funding, Taumarunui grandstand funding $17k, KCE capital disbursements $16k, and Horizons cost recovery of records management $15k.
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Expenses Personnel Costs are over budget by $215k, which is driven ($87k) by additional staff required for the fast growing I-Site services, and includes a yearlong trial of the I-Site in Waiouru. Additionally, the EAP budget figure does not include cost of employee super ($113k) but salaries only.
Finance costs were under budget by $482k and this is due to lower than planned debt levels ($33.8M vs $25.8M), and market interest rates being below what was budgeted.
Losses are over budget by $323k. This is made up predominantly of $316k losses on disposals within 3 Waters (storm water $61k, Waste water $72k, Water $183k).
Statement of Financial Position Cash and Cash Equivalents are over budget by $2.5m due to a significant rise in accounts payable that has kept money in RDC bank because of timing issues with contractor payments. In addition, there has been a strong and effective rates collection effort in the 2017/18 financial year further increasing the bank balance.
Property, Plant and Equipment is under budget by $9,432k due to asset revaluation timing. The EAP budget figure of $404,646k includes asset revaluations as at 30th June, but RDC does not recognise this movement until 1st July – after Annual Report date. For comparison, revaluation on 2016/17 assets was for a total of $8,666k, and a similar amount is expected for the 2017/18 asset values, and would explain the majority of the reported variance.
Intangible assets is under budget by $177k, which was mainly due to IT projects not being completed by financial year-end and some projects not starting.
Overall borrowings of $25,800k remains unchanged from the prior financial year. However, there has been a large shift of $8,500k of borrowings into current liabilities compared to budget. This was a deliberate decision by management to take advantage of lower interest costs by transferring RDC borrowings from commercial banks to the Local Government Funding Agency (LGFA). This position is supported by changes to the Council’s Liability policy through the LTP process, and loan maturity profiles will be balanced out in the 2018/19 financial year. This change was not accounted for in the EAP.
The total budgeted debt level of $33,767k is similar to the forecast position found in the LTP 2015-25 – much of which has not been needed due to under delivery of Capital work programs over the last couple of years. This level is $7,967k above the actual debt level at report date, of which $2,909k relates to planned additions in the 2017/18 financial year. However, this amount was not needed due to mixture of Central Government grant funding offsetting the debt requirement, and the cash flowing of town revitalization and district toilet seed funding projects from operational reserves.
Employee Entitlements is over budget by $319k. The actual figure of $547k consists of $240k in payroll accruals paid out in July, the remaining $307k is the annual leave provision for 2017/18. The EAP budget of $228k has been calculated too low. This is evidenced by the comparative actual figure for the 2016/17 Financial Year being $537k.
Statement of Cash Flows Rates are over budget by $712k. This is due to the reclassification of $357k of water by meter charges, which were previously being recorded and budgeted for in Fees and Charges. The recording of the water by meter charges revenue is now being recorded in Rates Revenue, however, the budget is still sitting under Fees and Charges. The other factor effecting the rates revenue being over budget are the unbudgeted rates penalties of $435k. Discounts given of $124k and write-offs which are unbudgeted have an offsetting effect on the rate penalties take.
Receipts from Subsidies and Grants is above budget by $1,334k. The majority of this increase relates to the Central Government grant of $1,517k for the Raetihi Water Treatment Plant completed during 2017/18 financial year. There was additional Tourism Infrastructure Funding (TIF) of $364k related to a number of new toilet builds completed throughout the district. These increases were offset by an under spend in Land Transport renewal Capital works, resulting in $526k less funding from NZTA subsidies than budget.
Other Revenue is over budget by $399k. Major factors include $126k up in building consents, $76k increase in development contributions, cemetery income $46k, refuse charges $41k, rental charges $58k, and land use charges of $45k.
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Payments to suppliers were up $1,324k. $439k of this relates to increased activity by RDC in operation of DOC 3 Water assets at Whakapapa. All of this is offset by income, but does leave cost over budget levels. Additional cost come from roading maintenance costs up $497k and Civil Defence operations of $177k related to flooding (Blue Duck Station, Whakahoro) and National Park tornado events, of which a portion is to be claimed back from Central Government. Finally, there was an increase in costs related to the Long Term Plan (LTP) preparation of $193k.
Interest Paid was under budget by $496k and this is due to lower than planned debt levels ($33.8M vs $25.8M), and market interest rates being below what was budgeted.
Purchase of Property, Plant and Equipment is under budget by $2m. $1.8m of this relates to under delivery of capital works in the Land Transport activity, and particularly the renewals program. Waste Water also under delivered with $280k actual against a budget of $959k, and Storm water was down $286k with only $33k works delivered.
However, the completion of the Raetihi WTP diverted considerable contractor resources from other 3 Waters activities, and overspent water budget by $914k. This overspend was driven by Central Government timelines for completion of the project in order for RDC to capitalise on available grant funding.
Intangible Asset purchases of $103k were not budgeted.
Cash Flows from Financing Activities; budgeted borrowings of $2,909k were not required due to mixture of Central Government grant funding offsetting the debt requirement, and the cash flowing of town revitalization and district toilet seed funding projects from operational reserves.
37. ASSETS HELD FOR SALE
Actual Actual 2018 2017 $000 $000 Summarised financial information of associates presented on a gross basis Assets 16,138 13,260 Liabilities 407 384 Revenues 2,889 1,463 Surplus/(deficit) 2,732 1,088 RDC's share of surplus/(deficit) 107 43 RDC's Share of Total Comprehensive Revenue and Expense 112 (2) RDC's interest % 3.93% 3.93% Wanganui District Councils' Forestry Joint Committee is currently held as Current Assets held for sale 639 506
Council’s share in the joint venture is 3.93%. The partnership covers six forestry blocks totaling approximately 1,150 hectares in the Wanganui District. After publically calling for expressions of interest and capability, the Forestry Joint Committee appointed CBRE as agents to sell four of the six forest blocks. Forests put on the market were Tauwhare, McNabs, Te Ara to Waka and Sicelys. Four tenders were received and on 14 December 2016, the Joint Committee accepted the highest tender and entered into a sale and purchase agreement conditional on the approval of the Overseas Investment Office (OIO).
OIO approval was finally received in September 2018 for the sale of the four blocks mentioned above with settlement expected to occurring in the 2018/19 financial year. The Forestry Joint Committee then obtained independent valuations for the remaining two small forestry blocks called Nukumaru and Waitahinga. The decision was made by the Committee to sell these two which will occur when a buyer is found in 2018/19.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 61 Part C – Notes to the Financial Statements for Council and Group
Part C – Other Legislative Disclosures 1. FUNDING IMPACT STATEMENT FOR RUAPEHU DISTRICT COUNCIL FOR YEAR ENDING 30 JUNE 2018 – ALL ACTIVITIES
EAP Actual EAP Actual 2018 2018 2017 2017 $000 $000 $000 $000 Sources Of Operating Funding General Rates, Uniform Annual General Charges, 14,142 9,151 13,965 9,011 Rates Penalties Targeted Rates 7,742 13,445 7,283 12,754 Subsidies And Grants For Operating Purposes 5,146 5,294 5,049 5,136 Fees And Charges 3,479 4,156 3,653 3,858 Interest And Dividends From Investments 65 31 58 31 Local Authorities Fuel Tax, Fines, Infringement Fees, 133 189 130 150 And Other Receipts Total Operating Funding (A) 30,707 32,266 30,138 30,940
Applications Of Operating Funding Payments To Staff And Suppliers 23,704 25,251 23,305 23,437 Finance Costs 1,646 1,165 1,476 1,299 Other Operating Funding Applications - - - - Total Application Of Operating Funding (B) 25,350 26,416 24,781 24,736 Surplus/(Deficit) Of Operating Funding (A-B) 5,357 5,850 5,357 6,204
Sources Of Capital Funding Subsidies And Grants For Capital Expenditure 5,843 6,843 6,711 4,533 Development And Financial Contributions 73 149 110 60 Increase/(Decrease) In Debt 2,933 - 2,520 - Gross Proceeds From Sale Of Assets - 81 - 54 Lump Sum Contributions - - - - Other dedicated capital funding - - - - Total Sources Of Capital Funding (C) 8,849 7,073 9,341 4,647
Application Of Capital Funding Capital Expenditure: - To Meet Additional Demand 1,679 1,079 384 65 - To Improve The Level Of Service 2,876 4,676 5,701 2,246 - To Replace Existing Assets 9,651 6,546 8,612 8,198 Increase/(Decrease) In Reserves - 623 - 342 Increase/(Decrease) Of Investments - - - - Total Applications Of Capital Funding (D) 14,206 12,924 14,697 10,851 Surplus/(Deficit) Of Capital Funding (C-D) (5,357) (5,851) (5,356) (6,204) Funding Balance ((A-B)+(C-D)) - (1) 1 -
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 62 Part C – Notes to the Financial Statements for Council and Group
2. SUPPORT FUNDING IMPACT STATEMENT
LTP LTP Actual 2017 2018 2018 $000 $000 $000 Sources Of Operating Funding General Rates, Uniform Annual General Charges, Rates - - (93) Penalties Targeted Rates - - (2) Subsidies And Grants For Operating Purposes - - - Fees And Charges 1 1 96 Internal Charges And Overheads Recovered 9,210 9,598 8,345 Interest And Dividends From Investments 21 21 31 Total Operating Funding (A) 9,232 9,620 8,377
Applications Of Operating Funding Payments To Staff And Suppliers 7,237 7,501 7,609 Finance Costs 477 498 314 Internal Charges And Overheads Applied 737 768 715 Other Operating Funding Applications - - - Total Application Of Operating Funding (B) 8,451 8,767 8,638 Surplus/(Deficit) Of Operating Funding (A-B) 781 853 (261)
Sources Of Capital Funding Subsidies And Grants For Capital Expenditure - - - Development And Financial Contributions - - - Increase/(Decrease) In Debt (1,268) (682) (2,159) Gross Proceeds From Sale Of Assets - - 81 Lump Sum Contributions - - - Other dedicated capital funding - - - Total Sources Of Capital Funding (C) (1,268) (682) (2,078)
Application Of Capital Funding Capital Expenditure: - To Meet Additional Demand 175 138 118 - To Improve The Level Of Service 21 - 72 - To Replace Existing Assets 458 480 619 Increase/(Decrease) In Reserves (1,141) (447) (3,148) Increase/(Decrease) Of Investments - - - Total Applications Of Capital Funding (D) (487) 171 (2,339) Surplus/(Deficit) Of Capital Funding (C-D) (781) (853) 261 Funding Balance ((A-B)+(C-D)) - - -
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 63 Part C – Notes to the Financial Statements for Council and Group
3. OVERALL FUNDING IMPACT STATEMENT RECONCILLIATION
Reconciliation between the Group of Activities’ Funding Impact Statements, the Overall Council Funding Impact Statement and the Statement of Comprehensive Revenue and Expense against EAP budget.
Actual EAP Actual 2018 2018 2017 $000 $000 $000 Total operating and capital funding sources as shown in the 47,682 48,787 44,043 group of activities’ funding impact statements Less Corporate Services revenue unallocated - - Less internal charges and overheads recovered (8,345) (9,230) (8,456) Total operating and capital funding sources as shown in the 39,337 39,557 35,587 overall council funding impact statement
(Increase)/decrease in debt - (2,933) - Gross proceeds from sale of assets (81) 28 (54) Vested assets - - - Other gains 540 - 141 Total funding sources 39,796 36,652 35,674 Total revenue as shown in the statement of comprehensive 39,796 36,652 35,674 revenue
Application of total operating and capital funding as shown in the 47,685 48,047 44,045 group of activities’ funding impact statements Add corporate services costs - - - Less internal charges and overheads applied (8,345) (8,491) (8,456) Application of total operating and capital funding as shown 39,340 39,556 35,589 in the overall council funding impact statement Capital expenditure (12,302) (14,206) (10,510) (Increase)/decrease in reserves (623) - (344) (Increase)/decrease in investments - - - Less corporate services net gain in allocations - - - Depreciation and amortisation 8,702 8,407 8,429 Other losses 370 - 341 Total funding application 35,487 33,757 33,505 Total expenditure as shown in the statement of 35,487 33,757 33,505 comprehensive revenue
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4. RATING BASE INFORMATION
The 2017/18 rates were set based on the following information, as at 30 June 2017 and prior year comparatives.
Actual Actual 2018 2017 Number of Rating Units 9,850 9,806 Non-Rateable Units 931 923
Total Capital Value of Rating Units in the District 4,794,718,550 4,247,109,400 Total Land Value of Rating Units in the District 2,539,706,500 2,224,109,450
5. INSURANCE
As at 30 June Ruapehu District Council had the following insurance contracts in place:
2018 2017 Max Insured Value Max Insured Value $000 $000 $000 $000 Material Damage Replacement 80,273 80.273 73,375 73,375 Motor Vehicles Market 1,021 1,021 1,002 1,002 Infrastructural Assets Replacement 40,000 123,461 12,500 116,467
Council has no self-insurance fund set aside. Risk mitigation include the NZTA subsides and Councils ability to borrow to replace lost / damaged assets.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 65 Part C – Notes to the Financial Statements for Council and Group
6. BENCHMARKS
Annual Report Disclosure Statement for the Year Ending 30 June 2018
What is the purpose of this Statement The purpose of this statement is to disclose the Council’s financial performance in relation to various benchmarks to enable the assessment of whether the council is prudently managing its revenues, expenses, assets, liabilities, and general financial dealings.
Council is required to include this statement in its annual report in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement.
Rates Affordability Benchmark Council meets the rates affordability benchmark if: . Its actual rates income equals or is less than each quantified limit on rates; and . Its actual rates increase equals or is less than each quantified limit on rates increases.
Rates (Income) Affordability The following graph compares Council’s actual rates revenue with the quantified limit on rates. Council set a quantified limit on the rates income for which it plans to rate (whole of Council), included in the Financial Strategy within its Long Term Plan. This quantified limit is that the whole of Council rate income will not increase by more than the Local Government Cost Index (LGCI) plus 2%, year on year.
24,000
23,000
22,000
21,000
20,000
19,000 Rates Income ($'000)
18,000
17,000 2014 2015 2016 2017 2018
Year Quantified Limited on rates income Actual rates income (exceeds limit) Actual rates income (at or within limit)
The quantified limit for 2017/18 financial year was $22.8m. Council was within this benchmark with a gross rates take of $22.6m.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 66 Part C – Notes to the Financial Statements for Council and Group
Rates (Increases) Affordability The following graph compares Council’s actual rates increase with the quantified limit on rates increases included in the financial strategy included in the Council’s Long Term Plan. The quantified limit is the Local Government Cost index (LGCI) plus 2% for each of the next 10 years of the plan.
7.0%
6.0%
(%) 5.0%
4.0%
3.0%
2.0% Rates Increases 1.0%
0.0% 2014 2015 2016 2017 2018 Year
Quantified Limited on rates increases Actual rates increases (exceeds limit) Actual rates increases (at or within limit)
Council met this target with a 3.8% actual increase vs a limit of 4.53%.
Council has changed its limit for rate increases to reflect the LGCI in the first year of LTP 2015-25, because it is a better indicator of the costs actually faced by Council. This relates to costs of maintaining and improving infrastructure. Previously, Council’s costs have tended to rise at a greater rate than the CPI which is a measure of inflation for consumer goods rather than inflation for local government inputs.
Debt Affordability Benchmark The Council meets the debt affordability benchmark if its actual borrowings are within each quantified limit on borrowing.
The following graph compares the Council’s actual borrowing with a quantified limit on borrowing stated in the financial strategy included in the Council’s Long Term Plan. The quantified limit is that debt should be less than twice the annual rates bill.
50000 45000 40000 35000 30000 25000 20000
Dollars $000's 15000 10000 5000 0 2014 2015 2016 2017 2018 Year Quantified Limited on debt Actual Debt (at or within limit)
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 67 Part C – Notes to the Financial Statements for Council and Group
Debt Control Benchmark The following graph displays the Council’s actual net debt as a proportion of planned net debt. In this statement, Net Debt means financial liabilities less financial assets (excluding trade and other receivables.) The Council meets the debt control benchmark if its actual net debt equals or is less than its planned net debt.
100%
95%
90% 88% 88% budgeted net debt debt (%) net budgeted
\ 85% 82%
Actual Actual 80% 79% 77%
75% 2014 2015 2016 2017 2018 Year
Benchmark met Benchmark not met
Balanced Budget Benchmark The following graph displays the council’s revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant and equipment as a proportion of operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant and equipment). The Council meets this benchmark if its revenue equals or is greater than its operating expenses.
115% 112% 108% 110% 107% 106% 105% 99% 100%
95%
90% 2014 2015 2016 2017 2018 Revenue / operating expenditure (%) expenditure operating / Revenue Year
Benchmark met Benchmark not met
The balanced budget benchmark was not met in the 2013/14 year due to larger than expected depreciation charges as a result of the revaluation on the Council owned buildings. As this depreciation increase was unexpected, it had not been rated for.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 68 Part C – Notes to the Financial Statements for Council and Group
Operations Control Benchmark This graph displays the Council’s actual net cash flow from operations as a proportion of its planned net cash flow from operations. The Council meets the operations control benchmark if its actual net cash flow from operations equals or is greater than its planned net cash flow from operations.
120% 116% 113% 115% 111% 110%
105%
100% 99% 99%
95%
Operations (%) Operations 90% 2014 2015 2016 2017 2018 Year Actual /Budgeted Net Cash Flow from from Flow Cash Net /Budgeted Actual Benchmark met Benchmark not met
Council met this benchmark for the 2017/18 financial year with an operational cash flow that was $1.5m better than budget. Revenue was up $2.4m with key drivers being an increase in grant funding and rate receipts, while payments to suppliers were over budget by $1.3m due to additional asset builds related to grant funding. The impact of these costs was offset by lower than planned interest costs ($496k).
Essential Services Benchmark The following graph displays the Council’s capital expenditure on network services as a proportion of depreciation on network services. The Council meets this benchmark if its capital expenditure on network services equals or is greater than depreciation on network services.
160% 142% 141% 140% 134%
120% 115% 115%
100%
80%
60%
40%
20% Capital expenditure / depreciation (%) / depreciation expenditure Capital 0% 2014 2015 2016 2017 2018 Year
Benchmark met Benchmark not met
The increase for 2017/18 over benchmark levels is driven by Raetihi water plant upgrades, which cost over twice the annual depreciation expense for all water assets combined.
RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2017/18 SECTION TWO - PAGE 69 Part C – Notes to the Financial Statements for Council and Group
Debt Servicing Benchmark The following graph displays the Council’s borrowing costs as a proportion of revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant and equipment). Because Statistics New Zealand projects the Council’s population will grow more slowly than the national population growth rate, it meets the debt servicing benchmark if it’s borrowing costs equal or are less than 10% of its revenue.
12.0%
10.0%
8.0%
5.4% 6.0% 4.8% 3.7% 3.6% 4.0% 2.9%
2.0% Borrowing Costs / Revenue (%) / Revenue Costs Borrowing
0.0% 2014 2015 2016 2017 2018 Year Benchmark met Benchmark not met
The interest to operating revenue benchmark that is measured against is that finance costs not exceed 10% of operating revenue. Council’s finance costs over the last five years have been significantly below this benchmark. The last five years have had very low borrowing costs with interest rates having dropped significantly. The Weighted Average Cost of Capital for Council is 4.27%, which is low next to historical data.
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