Key Dates You Should Know Submission Period: 21 March to 23 April 2014

Key dates you should know Submission period: 21 March to 23 April 2014

Hearing of Submissions: 28 and 29 May 2014

2 Summary of the 2013/14 Draft Annual Plan

Mayors Message

Introduction On behalf of the Councillors and staff of the Hauraki District Council, I am pleased to introduce the Draft 2014/15 Annual Plan which details the activities, services and programmes planned for year three of the Council’s 2012-22 Hauraki Long Term Plan (HLTP).

The purpose of the Draft 2014/15 Annual Plan is to inform you of any proposed changes to the programmes and services for the 2014/15 year that are different from those adopted for the 2014/15 year in the 2012-22 Hauraki Long Term Plan.

Council Elections In the October 2013 Council elections two new Councillors were elected to represent the District; Pam Keall and Don Swales. I welcome them onto the Council team and look forward to working with them over the coming term. John Tregidga, JP, MNZM Mayor Hauraki District The role of the Mayor was recently amended and extended in the Local Government Act, 2002. The Mayor’s role is now defined as providing leadership to: “Communities need to  The other members of the Council.  The people in the District. get involved and find out what’s happening The Mayor also now appoints the Deputy Mayor, develops the committee structure and appoints the chairpersons of those district-wide and in their committees. Following the 2013 elections I have made some changes local areas. This is your to the Council’s committee structure; for further information on the new structure see the full Draft Annual Plan. opportunity to speak up about the things that Progress on Key Capital Works I am very pleased to report that major progress has been made with a affect you”. number of key projects for the District over the last year; in particular:

 The new Waihi Library and Service Centre has been completed and the opening was held on 21 March 2014.

 The Kerepehi water treatment plant upgrade has been completed and is fully operational. Contents  Council is currently commissioning the Quarry raw water storage facility in Steen Road which provides raw water storage for the 2014/15 Fees and Charges 4 Waitakaruru water treatment plant for the summer supply of water. Proposed Schedule of  Detailed design work has been completed for the Paeroa and Amendments 4 Waihi water treatment plant upgrades; these are programmed for completion January 2015. Key Community Issues 5  The resource consents for the use of the Ohinemuri River as an Key projects in your alternative water supply source for the Waihi water supply have community 9 been granted. Focus on the Paeroa Ward 9  The completion of the Waihi to Waikino section of the Hauraki Rail Trail. Focus on the Plains Ward 10 Focus on the Waihi Ward 11 Tetley’s Quarry District-wide projects in The Council has, for more than 40 years, operated a commercial 2014/15 12 quarry at Steen Road, Waitakaruru which has supplied the District with metal for roading and other projects. Due to the current economic Prospective Financial conditions the quarry has become less competitive to operate and the Statements 14 Council has decided to cease quarrying on the site for now. However, The consultation process 16 there are significant reserves of good quality rock remaining available for quarrying at some time in the future, should this again become a viable activity. As a result the decision to close and rehabilitate the quarry will be considered in the future. The existing quarry pit has now been utilised as part of the Plains Water Supply for raw water storage to provide backup to the Plains supply; particularly over the drier summer months.

Local Government Act – Changes for Local Rates Government This Plan shows a total rate increase (excluding water) The Local Government Act 2002 Amendment Act 2012 for the 2014/15 year of 3.56%. (The HLTP 2014/15 and the proposed Local Government Act 2002 Bill forecast increase was 4.51%). Water charges are (No.3) have been introduced, and they propose to programmed to rise by 3.2% for the 2014/15 year (the introduce a number of new requirements on councils. HLTP 2014/15 forecast increase for water was 6.0%). Some amendments that will have implications in the This outcome is the result of a significant amount of work 2014/15 year include the need to: develop a 30 year undertaken to keep rating levels as low as possible given Infrastructure Strategy; review the Assessment of that: Water and Sanitary Services; develop a Significance  In arriving at the rating figure the Council has tried to and Engagement Policy; review the Development strike a balance between the costs (particularly Contributions Policy, meet the new requirements for interest charges) for developing new infrastructure financial reporting; and meet the new consultation and (particularly water) and the ability for the works to be publishing requirements for the upcoming 2015-25 sustainably funded into the future. Hauraki Long Term Plan.  The Council has also tried to ensure the services it provides are meeting the service level needs of the Economic Development community in an affordable, prudent and sustainable As consulted on in the 2013/14 Annual Plan the Council manner. has taken a much more proactive approach to developing economic development opportunities. We For comparison with the debt and rate caps for 2014/15 have revised our Economic Development Strategy after contained in Council’s Financial Strategy please see the consultation with the community and have identified five report on the Financial Strategy on page 5 of this priority areas where we will be taking action in order to document. assist with economic development in the District. The public consultation process Within this Plan the Council is consulting on the The Council would like to hear your feedback on the Draft possible development of stage two of the Hauraki Rail 2014/15 Annual Plan. Submissions to the Draft Plan close Trail; the section from Kaiaua to Kopu. The total at 4.30pm on Wednesday, 23 April 2014 and the estimated cost of stage two is $4m. The Hauraki and submission process is detailed on page 16 of this Thames-Coromandel District Councils have committed Summary. $1m each, dependant on the Hauraki Rail Trail Trust raising the remaining $2m from external agencies. A full copy of the Draft 2014/15 Annual Plan is available at the Council’s service centres and libraries in Paeroa, Although not being consulted on at this stage, the Ngatea and Waihi. The document is also available on the Council is currently investigating and assessing a Council’s website www.hauraki-dc.govt.nz proposal to develop a “Food Hub” approach on the industrial land available at Kerepehi. This would include Final Thoughts the possible development of a wastewater treatment system to cater for food processing and manufacturing In preparing this Plan the Council has kept the level of its industries that would add value to some of the District’s services, activities and programmes under constant primary production. This matter may involve an review to ensure its programmed expenditure is amendment to the 2012-22 Hauraki Long Term Plan. necessary, well controlled and sustainable. Council would Council will be consulting separately on this matter if it like to thank you for taking the time to read this summary wishes to proceed with it. of our Draft Annual Plan and assisting in its development through the consultation process. We look forward to Fees and Charges working with you in the coming year.

In preparing the Draft 2014/15 Annual Plan the Council has reviewed its schedule of Fees and Charges. The Council welcomes feedback on these proposed charges, which are outlined in the full Draft Plan.

JP Tregidga, JP, MNZM Mayor

4 Summary of the 2013/14 Draft Annual Plan

2014/15 Fees and Charges Proposed Schedule of Amendments

The following provides an overview of the amendments contained in the Fees and Charges Proposed Schedule of Amendments. For details regarding the changes proposed to fees and charges for the 2014/15 year, including rationale for the proposed changes, please see the full Draft 2014/15 Annual Plan document available online at www.hauraki- dc.govt.nz.

The amendments being consulted on are in the areas of Corporate Services, Community Services, Regulatory Services and Solid Waste Services. The main changes proposed for the 2014/15 year are:

 Corporate Services has introduced a new fee for the delivery of electronic information on USB.  The District Libraries have increased overdue fees to encourage prompt returns, standardised some charges, and increased other fees to cover costs.  District Libraries have also introduced new fees for lost/damaged resources, refunds for lost items returned, debt collection charges, and discarded items for sale.  Changes within building and regulatory services reflect actual costs or reallocation of costs.  A range of liquor licensing fees have been introduced as legislatively required by the new Sale and Supply of Liquor Act 2012.  The Solid Waste Services fees have been increased by the consumer price index (CPI), as per the solid waste contract. The refuse bag charge has also increased from $2.10 to $2.20.

The consultation period for the Fees and Charges Proposed Schedule of Amendments is in line with the Draft Annual Plan, so if you would like to provide feedback on the proposed fees and charges for 2014/15 or anything in the Draft Annual Plan, make your submission to Council either in writing or online by 4.30pm, 23 April 2014.

Key Community Issues

Key Changes to the Local Government Act, 2002

In December 2013 the Select Committee considered the Local Government Act 2002 Amendment Bill 2013, the second phase of the local government reform. The Government received submissions on the proposed Bill until February 2014, and the Select Committee is currently considering those submissions.

Many significant changes have occurred to the Local Government Act since the reforms commenced in 2011 particularly to the purpose and functions of local government. Phase one of the reform concentrated on:  a new purpose of local government;  financial prudence requirements;  changes to council governance arrangements, including new mayoral powers, and a menu of assistance and intervention options for the Minister of Local Government; and  changes to the process for reorganising local government.

The 2012 amendments significantly changed the purpose of local government. The new sections 3(d) and 10(b) now read:

“....provides for local authorities to play a broad role in meeting the current and future needs of their 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”.

A new section 10(2) now defines good-quality and reads:

“In this Act, good-quality, in relation to local infrastructure, local public services, and performance of regulatory functions means infrastructure, services, and performance that are –  efficient; and  effective; and  appropriate to present and anticipated future circumstances.”

The latest proposed changes to the Act introduce further themes of efficiency, prudence, accountability, flexibility and collaboration. For further information on the changes to the Local Government Act amendments see the Key Community Issues section of the full Draft 2014/15 Annual Plan available online at www.hauraki-dc.govt.nz.

Financial Strategy

The Council adopted a Financial Strategy as part of its 2012-22 Hauraki Long Term Plan which demonstrates how Council will:  Provide for growth.  Ensure that the levels of rates and borrowings are financially sustainable and are kept within preset limits.  Be accountable for maintaining assets that are owned on behalf of the community.  Fund network infrastructure and maintain levels of service.  Obtain preset returns on financial investments and equity securities, and  Give securities on borrowing.

The Financial Strategy also contains a Council set debt cap and two rates caps (General Rates and Water rates) for the ten years of the 2012-22Hauraki Long Term Plan.

Debt Cap The Council set a variety of debt parameters around total debt limits and interest cost limits which indirectly determines debt limits. The measure that determined the Total Borrowing Cap for most years of the 2012–22 Hauraki Long Term Plan (HLTP) was the cap of 175% of total revenue applied because the Council became a member of the Local Government Funding Agency (LGFA).

6 Summary of the 2013/14 Draft Annual Plan

The Council was successful in receiving Ministry of Health subsidies for a series of water upgrade projects and, provided all subsidy requirements are met, will receive a total of $4.9 million in subsidies. As a consequence of this during the 2013/14 and 2014/15 Annual Plan processes Council has adjusted the water capital expenditure programme by bringing some water upgrade projects forward to ensure that it is able to complete the upgrades that have subsidy approved prior to the subsidy deadlines.

 Debt cap as per HLTP for 2014/15 - $53.6 million  Debt forecast per HLTP for 2014/15 - $41.2 million (78% of cap)  Revised debt cap for 2014/15 per Draft Annual Plan - $59.4 million  Debt forecast for 2014/15 per Draft Annual Plan - $40.9 million

Rates Caps The Council decided to create two rates caps. All rates, other than water rates, are covered by one rates cap. Due to the extensive water capital program forecast, and the impact that will have on interest costs and increased depreciation, it was considered appropriate to ring fence the water activity and have a separate rates cap for this. The need for a separate water rates cap will be reviewed as part of the development of the 2015-25 Hauraki Long Term Plan.

The rates caps are all based on the Local Government Cost Index (LGCI) plus a margin of 1.5%. The LGCI is an index that is based on a basket of goods and services that are specific to local government activities. This is reassessed each year.

Revised Rates Caps for 2014/15 All rates excluding Water Water 2012-22 HLTP Forecast for 2014/15 4.67% 7.17% Reassessed cap for 2014/15 based on revised 4.00% 6.5% LGC Index Forecast rates increase for 2014/15 3.56% 3.2%

The Financial Strategy can be found on the Council’s website www.hauraki-dc.govt.nz in Volume Two of the 2012-22 Hauraki Long Term Plan.

Water Capital Programme

In the 2012-22 Hauraki Long Term Plan, $28.3 million was allocated for the funding of water supply capital projects; with the Council continuing its policy to upgrade all wastewater and water supply services. The purpose of this policy stance is to ensure that these systems are fully consented in accordance with the Resource Management Act, 1991 and that they comply with all consent and legislative requirements such as the New Zealand Drinking Water Standards, and also have the capacity to cope with potential future growth. The wastewater upgrades have been completed and the Council is now working towards completion of the water supply upgrades.

As outlined in the 2012-22 HLTP some water supply capital projects were brought forward or delayed as a result of Council’s applications to the Ministry of Health for subsidies, resource consent applications and resourcing availability. Since the adoption of the 2012-22 HLTP the Council secured $4.9m of subsidy funding for some eligible small community water supplies and rescheduling of water capital projects has occurred as necessary. Subsidy funding was secured for the following projects:

Subsidy Project: ($000) Connection of Karangahake/Mackaytown to the Paeroa supply (2014/15). 800 The upgrade of the Paeroa treatment plant (2014/15). 1,300 Establish a supplementary water source for Waihi (2014/15). 1,400 Upgrade the Waihi treatment plant (2014/15). 500 Connect Waikino to the Waihi treated water supply (2014/15). 900

The Council resolved as part of the 2012-22 Long Term Plan process that future items of major capital expenditure would be reviewed by Council prior to final planning and commencement of each project.

Design and consenting processes have progressed during the 2013/14 year resulting in a revision and update of the water capital works programme and estimates for the 2014/15 year. The revised water capital works schedule for the major water projects is as follows:  Upgrade of the Paeroa water treatment plant to comply with drinking water standards and to supply a larger area - $4.05m plus possible risk items of $1m (was scheduled for 2012/13 to 2014/15 in the HLTP).  Waihi treatment plant upgrade - $3.76m plus possible risk items of $0.73m (was scheduled for 2012/13 and 2013/14 in the HLTP).  Completion of the treatment plant upgrade at Waitakaruru - $0.88m (was scheduled for 2012/13 in the HTLP).  Waihi alternative water source - $2.74m (was scheduled for 2012/13 and 2013/14 in the HLTP).  Connect the current Waikino supply to the Waihi treatment plant - $1.22m (was scheduled for 2015/16 in the HTLP).  Connection of Karangahake and Mackaytown supplies to Paeroa supply (or other identified option) - $1.18m (was scheduled for 2016/17 in the HTLP).

For more information on the Council’s planned water supply service upgrades please see the Water Supply activity within the full Draft 2014/15 Annual Plan.

Economic Development

As detailed through the 2012-22 Hauraki Long Term Plan, the Council is continuing to make further improvements to infrastructure and to services to help develop a stronger and more robust local economy.

To date these initiatives have included:  The employment of an additional resource in the Economic Development team to assist the Council to take a more proactive approach towards generating and responding to economic development opportunities. The cost of this resource has been met from revised economic development budgets.  A full review of its Economic Development Strategy and the action plan associated with this. This is available on the Council’s website www.hauraki-dc.govt.nz.  An economic development website, “Business Hauraki”, which can be accessed via the Council’s website www.hauraki-dc.govt.nz.  The significant upgrade programme for Council’s water supplies.

The Council is also currently considering the range of activities and services undertaken as part of its economic development activity (this can be found in the Community Growth activity on page 89 of the full Draft Annual Plan) to clarify which programmes and services are focussed on economic development matters and those which are more appropriately placed in activities that reflect social well-being.

Possible Future Amendment to the 2012-22 Hauraki Long Term Plan

The Council is currently considering the possible development of a “Food Hub” on its available industrial land at Kerepehi. The Council believes that the improving economy and the “Food Hub” concept could result in significant opportunities for the sale of this industrial land; particularly to food processing and manufacturing industries based on the agricultural and pastoral industries that are the backbone of the District. The proposal to develop a “Food Hub” has received support from industry and business sectors.

The Council is currently considering options relating to the provision of a suitable wastewater treatment system for these “wet” industries and possible funding options for these. The wastewater treatment facilities can be provided by the businesses themselves but the cost and difficulty of doing so may be a disincentive for establishing at the proposed “Food Hub”. Facilitating the construction of these facilities would place the Council in a better position to take advantage of economic development opportunities around the “Food Hub” concept.

If the Council decides to develop a “Food Hub” proposal that involves the development of additional wastewater treatment facilities it will require an amendment to the 2012-22 Hauraki Long Term Plan. Any such proposal will be subject to a formal consultative process; this would include the development of a formal Statement of Proposal, the opportunity for public input and submissions, and public hearings on those submissions received.

If a proposal is proceeded with, it will be consulted on separately with advertising in the Hauraki Herald and on Council’s website www.hauraki-dc.govt.nz and copies of the Statement of Proposal will be available in Council offices and libraries in Ngatea, Paeroa, and Waihi.

8 Summary of the 2013/14 Draft Annual Plan

Hauraki Rail Trail Development – Kaiaua to Kopu

The Hauraki Rail Trail is a major project that the Council has been working on, in conjunction with Matamata-Piako and Thames-Coromandel District Councils and the Department of Conservation (DoC) which has seen an 82km cycle trail developed and completed from Thames to Paeroa, Paeroa to Waihi and Paeroa to Te Aroha.

Stage Two - Kaiaua to Kopu Trail During the hearing of submissions to the Draft 2012-22 Hauraki Long Term Plan the Council granted $50,000 from the District Community Projects Assistance Fund to the Hauraki Rail Trail Trust to allow for investigations and route selection for stage two of the Hauraki Rail Trail from Kaiaua to Kopu. A further amount of $50,000 was subsequently approved by the Council in December 2013. Thames-Coromandel District Council also matched this investment. Initial work has commenced on route selection and design for this section with consultation being initiated in November 2013.

In December 2013, the Council considered a report on the development of the next stage of the Hauraki Rail Trail; the Kopu to Kaiaua leg. This second stage is a critical part of the overall Rail Trail development as it will then make it a multi- day ride, and in this regard, will maximise the economic benefits that it will give this region. The estimated cost for this section of the Trail is $4m. Hauraki and Thames-Coromandel District Councils have committed $1m each, dependant on the Hauraki Rail Trail Trust raising the remaining $2m from external agencies. The $1m funding has been included in this Draft 2014/15 Annual Plan for feedback from the community. Thames-Coromandel District Council has done the same in its Draft Annual Plan.

Muggeridge Flood Pump Funding

Pouarua-Maukoro Drainage Scheme area- Muggeridge Flood Pumps As part of the continuing development of the Pouarua-Maukoro drainage scheme preparatory works for the construction of the inlet canal will commence in 2015/16 and the proposed Muggeridge flood pumps are programmed to be installed and commissioned in 2016/17. While this is a Waikato Regional Council project discussions are occurring between the Councils and the Western Plains Drainage District Committee on how the local share of the capital costs of the project will be funded.

The key issues regarding this project are:  What area will be rated for the costs of undertaking and maintaining these works. The larger the area, the lesser the rate for the land owners, however finding the most appropriate land area to rate is a topic for debate. There is a case that can be developed that the project will benefit a wider area than those property owners within the pumped catchment but these conversations need to occur between the councils and the land owners who may be affected either directly by potential flooding or by the rates.  What the rating levels will be. This is dependent on the land area rated, as discussed above, and the length of time that the rates will be levied for to cover the capital cost of the works. While there are some options for rating over a longer period of time to reduce the amount of rate per year, interest costs and other implications must be taken in consideration.

Key projects in your community

Focus on the Paeroa Ward

What is planned in 2014/15? What is coming up beyond 2014/15? As proposed in the 2012-22 Hauraki Long Term Plan,  Renew the Paeroa Pool heating, filtration and a number of projects are planned for the Paeroa pump in 2018/19. Ward for the 2014/15 year. These include:  Replace the Paeroa pool seating in 2018/19.  Reseal the Primrose Hill car park areas in  New Paeroa Library –$1,285,000 2015/16.  Replace the Paeroa Domain public toilets -  Upgrade Centennial Park/Brennan Field for rugby $150,000 league facilities in 2017/18.  Pukerimu Cemetery ashes garden - $6,000.  Extend the Paeroa cemetery in 2018/19.  Railway Reserve – Play equipment – Safety  Reseal the War Memorial Hall floors in 2021/22. under surface replacement - $10,000  Paeroa Pool – Renew some heating, filtration Note: The full list of capital works for the 2014/15 year and pump components- $15,000 can be found on page 129 of the full Draft 2014/15  Paeroa footpaths replacements and other works Annual Plan. - $90,000

What’s proposed to change? The following provides an overview of the amended projects proposed to change in 2014/15 in addition to the unchanged projects listed above:

 The new Paeroa Library funding for 2014/15 has decreased from $1,385m to $1,285m due to $100,000 being used in 2013/14 to undertake design and consenting for the new building.  Unbudgeted funding of $15,000 has been proposed for allocation to upgrade to the Paeroa Scout Hall car park and provide disabled access to the building.  The funding for the replacement of the Railway Reserve playground under surface was $21,000 in the HLTP, has been reduced to $10,000 for 2014/15.  Funding for the repainting of the Paeroa swimming pool is proposed to be deferred from the 2014/15 year (as stated in the HLTP) as repainting is not necessary in the 2014/15 year.  Unbudgeted funding is required for new Paeroa Domain public toilets due to the toilets being vandalised in 2013/14 ($150,000 in 2014/15).  Due to the increased number of ashes burials recently in the Pukerimu Cemetery an ashes garden is proposed for in 2014/15 ($6,000).  The resealing of the Puke Road boat ramp car park and roading areas has been carried over from 2013/14 to 2014/15 ($83,000 in 2014/15).

10 Summary of the 2013/14 Draft Annual Plan

Focus on the Plains Ward

What is planned in 2014/15? What is coming up beyond 2014/15? As proposed in the 2012-22 Hauraki Long Term Plan,  Repaint the Ngatea pool in 2015/16. a number of projects are planned for the Paeroa  Resurface the Hugh Hayward Domain Ward for the 2014/15 year. These include: grandstand car parking area in 2017/18.  Replace the existing boat ramp toilet in Kaiaua  Hot Springs Canal stopbank reconstruction - with three unisex toilets in 2015/16. $53,000.  Renew the Orchard Road toilets in 2014/15  Ngatea main street garden renewals - (previously 2012/13). Progressive replacement of the raised brick beds and planted displays within -$27,000. Note: The full list of capital works for the 2014/15 year  Turua Jetty – Protection and repair of pontoons can be found on page 129 of the full Draft 2014/15 - $8,000. Annual Plan.  Orchard Road toilets - renewal of internal fittings - $10,000.  Plains footpath replacements and other works - $60,000.  Memorial Hall – general maintenance and exterior painting - $10,000.

What’s proposed to change? The following provides an overview of the amended projects proposed to change in 2014/15 in addition to the unchanged projects listed above:

 It is proposed the Waitakaruru Domain Committee receive a $5,000 grant in 2014/15 towards the cost of mowing the sports fields.  It is proposed the Ngatea town entrance beautification project be deferred and be considered as part of the 2015-25 Hauraki Long Term Plan.  It is proposed the funding for the repainting of the Ngatea swimming pool has been deferred from the 2014/15 year (as stated in the HLTP) as repainting is not necessary in the 2014/15 year.  The renewal of some components of the Orchard Road toilets (Plains) was deferred from 2012/13 as re-assessment identified that the works would not be required until 2014/15.

Focus on the Waihi Ward

What is planned in 2014/15? What is coming up beyond 2014/15? As proposed in the 2012-22 Hauraki Long Term Plan,  Renew components of the Waihi Events Centre a number of projects are planned for the Paeroa in 2016/17. Ward for the 2014/15 year. These include:  Renew components of the Victoria Park playground in 2016/17.  Repaint the Waihi swimming pool - $18,000.  Renew the Whiritoa playground in 2018/19.  Waihi Street streetscape – Street furniture and  Replace the Morgan Park public toilets in lighting renewals - $16,000 2015/16.  Gilmour Park – walkway renewals and repairs -  Renew the Gilmour Reserve public toilets in $22,000. 2015/16.  Waikino swing bridge car park - $88,000  Waihi footpath replacements - $4,000 Note: The full list of capital works for the 2014/15 year  Memorial Hall – general maintenance and can be found on page 129 of the full Draft 2014/15 exterior painting - $23,000. Annual Plan.  Victoria Street toilet – Internal painting and surface repairs - $30,000.

What’s proposed to change? The following provides an overview of the amended projects proposed to change in 2014/15 in addition to the unchanged projects listed above:  The Waihi Events Centre floor resealing was completed in 2013/14 (was scheduled for 2014/15).  The re-levelling of the Morgan Park netball courts does not need to occur in 2014/15 as stated in the HLTP as the courts are not in need of the work at this time.  The development of a Waikino swing bridge car park was scheduled for 2013/14 in the HLTP however has been deferred to 2014/15 and is dependent on the results of a traffic study by Council and New Zealand Transport Agency.  Unbudgeted funding is required for the Victoria Street public toilets in Waihi due to vandalism ($30,000 in 2014/15).

12 Summary of the 2013/14 Draft Annual Plan

District-wide projects in 2014/15

District-wide Funded Projects in 2014/15 What is coming up beyond 2014/15?  Provide additional treated water storage for the  Area-wide pavement rehabilitation - To Plains water supply in 2015/16. substitute pavement where it is more economic  Connect the Kaimanawa supply to the Plains than repairing minor defects - $691,000. water supply in 2016/17.  Waitakaruru treated water storage – Provision  Wastewater mains renewals in Kerepehi, Ngatea, of additional treated water storage in the Plains Paeroa, Turua and Waihi to occur in 2014/15 and reticulation - $1,321,000. between 2015-22.  Wastewater mains renewals – Water main  Upgrade the Paeroa stormwater Criterion pump renewals are programmed for Kerepehi, Paeroa in 2016/17. and Waihi - $466,000.  Sewer pump renewals – Replacement of end of Note: The full list of capital works for the 2014/15 year life sewer pumps as required - $89,000. can be found on page 129 of the full Draft 2014/15  Coppicing (pruning) at Whiritoa (Wastewater) Annual Plan. – Coppicing (pruning) at Whiritoa to improve nutrient uptake in the forest irrigation block - $108,000.  Miscellaneous upgrades (Stormwater) - $180,000.  Water mains renewals - $593,000.

What’s proposed to change at the District level?

The following provides an overview of the amended projects proposed to change in addition to the unchanged projects listed above:

Proposed 2014/15 2014/15 Project Reason LTP budget Budget ($000’s)

To provide for the expected level of damage to the roading network resulting from extraordinary events, the Council is Funding for emergency proposing to increase its share of the funding allocated in 26 155 roading work the 2014/15 year to cover emergency repair costs by $129,000 as the amount of $26,000 previously budgeted was insufficient. The budget for minor improvements is proposed to increase Minor improvements to $604,000 (previously $392,000 in the HLTP) as the 392 604 (Roading) budget now includes bridge renewals funding in compliance with NZTA funding requirements. The budget for resurfacing is proposed to reduce to $750,000 (previously $1.04m in the HLTP) in accordance Resurfacing (Roading) 1.04m 750 with Council’s strategy to maximise the seal life by extending the period between reseals, where possible, without compromising the asset. Upgrade the water treatment plant to comply with New (was 12/13 to Zealand Drinking Water Standards and to be able to treat Paeroa water treatment 14/15 in 2,889 sufficient water to supply the Ohinemuri, Karangahake and plant upgrade HLTP) Mackaytown areas (rescheduled to comply with Ministry of Health subsidy conditions).

Proposed 2014/15 2014/15 Project Reason LTP budget Budget ($000’s) Works required to comply with Drinking Water Standards (was 12/13 & Waihi treatment plant and to be able to treat sufficient water to supply the Waikino 13/14 in 2,824 upgrade area (rescheduled to comply with Ministry of Health subsidy HLTP) conditions). Upgrade automation, addition of Ultraviolet disinfection and Waitakaruru treatment (was 12/13 in 300 other supporting works are required to meet New Zealand upgrade HLTP) Drinking Water Standards. Develop and connect a new supplementary water take from (was 12/13 & Waihi alternative water the Ohinemuri River for the Waihi supply during low flow 13/14 in 2,683 source periods (e.g. during summer) (rescheduled to comply with HLTP) Ministry of Health subsidy conditions). Connect Waikino water supply to the Waihi township (was 15/16 in Connect Waikino to Waihi 1,115 (rescheduled to comply with Ministry of Health subsidy HLTP) conditions). Connect Karangahake Construct a treated water line and storage reservoir (was 16/17 in and Mackaytown to 1,101 (rescheduled to comply with Ministry of Health subsidy HLTP) Paeroa supply conditions). Council has been progressively upgrading its telemetry system (remote monitoring and control), replacing the Upgrade telemetry 0 139 ageing and obsolete system. This is a project which was system (Water Supply) included in the 2009-19 LTCCP and has been carried over for completion. Upgrade wastewater Upgrading all controllers to an automated linked system and 0 150 pump station controllers replacement of end of life roadside cabinets. Wastewater line – Provision for pumping wastewater from Karangahake to 0 580 Karangahake to Paeroa Paeroa treatment plant. A flood protection rate is proposed to be applied in 2014/15 to part of the Taramaire Drainage area to fund the operation and maintenance of the assets which provide a flood Taramaire Drainage 0 0 protection service to the lower lying land. The Hauraki District Council acquired this land drainage area from the former Franklin District and it had not been charging those relevant property owners land drainage rates. The reconstruction of the foreshore stopbanks from Karito to Hot Springs, Karito to Indian floodgate, Hot Springs to Reconstruction of the Boundary and Waitakaruru that was scheduled for 2014/15 145 0 foreshore stopbanks in the HTLP, has been deferred due to a recent survey which showed a slower rate of settlement than was originally predicted. The funding for the reconstruction of the Hot Springs Canal Hot Springs Canal tributary stopbank has been reduced to $53,000 due to the 106 53 tributary stopbank use of material excavated from the adjacent canal ($106,000 had been allocated in the HLTP). The Council will be working with Waikato Regional Council during 2014/15 on an approach to stream flood protection Kaiaua coast stormwater 0 0 and catchment management in the Kaiaua coast area (Stormwater). The funding allocated to Pensioner Housing in 2014/15 is proposed to increase to $80,000 (previously $42,000 in the Pensioner Housing 42 80 HLTP) due to the need for additional roof renewals and internal upgrades than was anticipated.

14 Summary of the 2013/14 Draft Annual Plan

Prospective Financial Statements

Ann. Plan LTP Forecast 2014 2015 2015 $000 $000 $000 COMPREHENSIVE INCOME General Rates 10,638 11,391 11,422 Targeted Rates (excl. Water Rates) 8,307 8,948 8,300 Targeted Rates for Water Supplies 5,248 5,685 5,417 Other income 11,244 7,880 9,648

Total Income 35,437 33,904 34,787

Employee Benefit Expenses 10,236 10,236 9,850 Depreciation and Amortisation 7,558 8,497 9,385 Finance Costs 1,619 2,516 1,826 Other expenditure 12,140 12,436 11,896

Total Expenditure 31,553 33,685 32,957

Income Tax Expense 0 0 0

Share of Joint Venture Surplus/(Deficit) 0 0 0

Net Surplus/(Deficit) From Operations 3,884 219 1,830

Property, Plant & Equipment Revaluation Increment 25,001 30,196 0

Total Comprehensive Income 28,885 30,415 1,830

MOVEMENTS IN EQUITY Equity at beginning of year 533,870 546,983 532,040

Total recognised income & expense 28,885 30,415 1,830

Equity at end of year 562,755 577,398 533,870

FINANCIAL POSITION Current Assets 8,889 8,546 9,429 Non-Current Assets 589,760 616,932 572,373

Total Assets 598,649 625,478 581,802

Current Liabilities 7,842 5,428 6,580 Non-Current Liabilities 34,135 42,652 41,352

Total Liabilities 41,977 48,080 47,932

Net Assets 556,672 577,398 533,870

Retained Earnings 416,949 410,565 411,525 Other reserves 5,574 5,359 4,520 Asset revaluation reserve 134,149 161,474 117,825

Total Equity 556,672 577,398 533,870

CASHFLOWS Net cash from operating activities 11,762 9,020 11,195 Net cash from/(to) investing activities (17,905) (8,935) (21,382) Net cash from/(to) financing activities 6,220 (351) 10,200

Net increase/(decrease) in cash equivalents 77 (266) 13

Cash Balance at beginning of year 196 196 500

Cash Balance at end of year 273 (70) 513

Financial Information

Where does money come from and where does it go? In these graphs (below) Council shows different source of income and in which areas of Council they are spent. In the first graph, Forecast Revenue, shows the various sources of income that the Council has. The second graph, Activity Expenditure, shows the proportion that Council spends on each activity.

For further information on what is contained within these groups, see the full Draft Annual Plan.

Forecast Revenue Acitivity Expenditure Community Water Regulatory Development Rates 9% 5% 17% Community Services External Roading 16% subsidies Rates 24% 19% 55% Leadership 8%

Land Drainage & Flooding 3% Stormwater Fees & 3% Charges Solid Waste 9% 2% Water Wastewater 20% 10%

Rate Changes Water Rate Changes 5.0% 8.0% 4.5% 7.0% 4.0% 6.0% 3.5% 3.0% 5.0% 2.5% 4.0% 2.0% 3.0% 1.5% 2.0% 1.0% 0.5% 1.0% 0.0% 0.0% LTP Increase Forecast Increase LTP Increase Forecast Increase

Rates Forecast Rates Cap Water Rates Forecast Water Rates Cap

Total Debt 70

30 Millions 20

- LTP Debt Forecast Debt

Total Debt Forecast Debt Cap

16 Summary of the 2013/14 Draft Annual Plan

The consultation process

Submitting on the Plan Ways to send your submission to Council The Draft 2014/15 Annual Plan was advertised for Your submission needs to be returned to Hauraki public submissions on 21 March 2014. District Council by 4pm on 23 April 2014.

Submissions will close 4.30pm 23 April 2014. Online You can complete your form online at www.hauraki- Submissions can be made on any matter contained dc.govt.nz in the Draft 2014/15 Annual Plan. A submission By email could be about proposed capital works, projects, Email you submission to key community issues, or any of the activity related [email protected] functions of Council. Make sure that your written submission clearly states that it is a ‘submission the By post Draft 2014/15 Annual Plan, and: Hauraki District Council  Details your full name and contact details. PO Box 17  States whether you wish to speak to your Paeroa 3640 submission or not. By hand  Clearly indicates the issue or topic you support, Return your submission to any Hauraki District oppose, or wish to amend. Council service centre in Ngatea, Paeroa or Waihi By fax

Who you can speak to about the Plan 07 862 8607 All Elected Members are available to discuss proposals during the consultation period. Alternatively, if you would like to talk to staff please What happens next contact the Council and ask for a member of the When we’ve received your submission we will: Strategic Planning Team.  Log your submission, record your contact details, and send you a letter of acknowledgement.  Provide a copy of your submission to councillors What not to submit on  Summarise and analyse all submissions and Some topics fall outside the scope of the Annual provide the analysis to councillors for them to Plan, and therefore should not be part of a consider. submission to the Draft Annual Plan.  Holding hearings for those who want to speak to  If you would like to speak to someone regarding councillors about their submissions. There a service request, please phone the Council’s hearings will be held at the Paeroa Council Customer Service Team on 07 862 8609 or Chambers on 28 and 29 May 2014. 0800 734 834 (from within the District).

 If you would like to apply for funding of a The final plan will be adopted on 25 June 2014. We , please contact the Council’s social nature will send a letter to you advising the outcome of your Community Development Officer. submission.  If you have a concern related to the work of the Regional Council (for example, river control, soil, air and water conditions, biodiversity, sea defences, or Regional Council rates), please contact Waikato Regional Council on 0800 800 401 or visit their website at www.waikatoregion.govt.nz.

Additional consultation – Fees and Charges The Draft 2014/15 Annual Plan also includes an additional Statement of Proposal (SOP); the proposed amendments to the Council’s Schedule of Fees and Charges.

This additional SOP is open for public consultation during the same period as the Draft 2014/15 Annual Plan. These documents can also be obtained from Council offices and libraries.

Please detach this submission form from the summary and use to provide your feedback

OFFICE USE ONLY

Document No:……………..…………….. Submission to the File No: PPN-50-92-100 Draft 2014/15 Annual Plan

Note: Submissions close 4.30pm, 23 April 2014

NAME:

PHONE: (Daytime) ......

ADDRESS: ......

I/we would like to speak in support of my/our submission at the Hearing of (please tick below) Submissions scheduled for 28 and 29 May 2014 Yes  No  Privacy Act Note: Please be aware, when providing personal information, that all submissions are part of the public consultation process and as such may be reproduced and included in Council public documents, such as Council agendas and minutes. These documents are available to the public both in hardcopy and in electronic form (including on the Council’s website).

If you are an individual rather than an organisation, we will remove your personal contact details from the submission form if you tick the following box.  I do not give permission for my personal details to be released to persons under the Official Information Act 1962.

General submission:

General submission continued

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FreePost Authority Number 108960

Hauraki District Council F.A.O Strategic Planning P O Box 17 PAEROA 3640

RE: Draft 2014/15 Annual Plan

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Submissions must be received no later than 4.30pm, 23 April 2014

Please fold using the folding guides printed on the page, ensuring that the FreePost Authority number is on the outside when folded. Tape together and post or drop of your submission at any Council Service Centre in Paeroa, Ngatea or Waihi. Thank you for your interest.