Adopted 31 October 2011 2010/2011 Annual Annual Report
Buller District, administered by the Buller District Council is an administrative region in the West Coast Region of New Zealand. It covers from Karamea in the north to Punakaiki in the south, Westport in the west and Reefton and Inangahua Junction in the east. Its land area is 7,953.12 km².
The Buller District shone in the 2010 annual regional performance indicators report by Business and Economic Research Ltd (BERL), gaining a fi fth placing of all the 72 territorial authorities in New Zealand.
Growth in employment over the last fi ve years has increased by 5.9%. Buller was rated at 7.2% GDP growth
The seat of the Buller District Council is in Westport, where 45% of the district’s population lives.
Found in the northern region of the South Island of New Zealand, this beautifully scenic district is a unique area that is a stunning combination of inland forests, wild coastline and friendly kiwi towns. Online Version: To save on both cost and environmental impact, this report has been created with online viewing in mind.
Only a limited number of the printed version have been produced. contents
Overview contents 9 Message from Mayor and Chief Executive 13 Contact details 15 Mayor and Councillors 17 Inangahua Community Board 19 Statement of compliance & responsibility 21 Governance Council controlled trading organisations 97 Westport Airport 23 Community outcomes 98 Buller Holdings Limited 29 Financial highlights 99 WestReef Services Limited 33 Consultation with Maori 100 Westport Harbour Limited 102 Buller Recreation Limited Our work in detail 104 Buller Health Trust 37 Democracy 105 Tourism West Coast 43 Community services 53 Environmental services Financial statements 57 Emergency management 108 Statement of Comprehensive Income 61 Amenities & reserves 110 Statement of Financial Position 65 Roading & urban development 112 Statement in Movements in Equity 69 Water supplies 114 Statement of Cashfl ows 75 Solid waste 116 Notes to the fi nancial accounts 79 Wastewater 83 Stormwater 167 Accounting policies 87 Support services 181 Audit Report 91 In-house professional services 93 Westport harbour
Buller District Council | 2010-2011 Annual Report
Overview Overview Overview
Buller District Council | 2010-2011 Annual Report
mayor & chief executives message
Council indicated in the 2010/2011 Annual Plan that there were a number of signifi cant projects for 2010/2011 year. This year has been an extremely busy year and we are pleased to be able to provide you with an update on the progress on the Council priorities and projects.
What did we achieve? Rural Drinking Water Setting the Game Plan Standard upgrades The new Council of 2010 set the direction for the next three years in November 2010 by identifying the Westport Water Upgrade top priorities moving forward. The fi rst priority was a long term solution for Westport Water. The current system no longer meets the latest The focus in the planning is on long term solutions for Drinking Water Standards issued by Central Government so the benefi t of our district. The priorities focus on the a long term solution needs to be implemented. long term ensuring that the services, infrastructure and facilities provided are indeed “Fit for the A Water Group was created to ensure the solution decided Future”. on can last for 50-100 years. In August 2010, initial upgrades to the Westport Water Treatment Plant were completed improving the quality of the fi ltration provided.
An investigation into the long term solution for the Reefton Water Supply Upgrade Westport Water Supply is in progress. From the research The upgrade to the Reefton water supply is being completed so far Council has narrowed the options down undertaken in two stages. to three. These include an upgrade of the existing supply, and two variations for a supply from the Buller River. The fi rst part is to line the reservoir and construct a roof over the existing water reservoir. The second Council will consider a report that details the options part involves the construction of a water treatment during the November 2011 Council meeting at which there plant adjacent the Strand and will ensure that water will be suffi cient information to determine the best option delivered to the residents of Reefton complies with for the Westport water supply for the next 50 to 100 years. Drinking Water Standards of New Zealand.
Depending on the decision of Council and fi nal design and mayor & chief executives message executives chief & mayor construction will then proceed. kick off!! kick The fi rst stage has been completed and a contract is in place for stage two of the upgrade.
Buller District Council • Annual Report year ending 30 June 2011 9 Buller Landfi ll Council initiated the long term project Two public meetings have been held with The King George playground in Reefton and of upgrading Derby Street. The blocks the community and a proposal regarding the Victoria Square playground in Westport Currently all of the residual waste from between Salisbury and Bright Streets were the health care facilities is currently out had safety matting laid to replace the bark. Buller is being trucked to Nelson, as undertaken in this fi nancial year with the for consultation. Council representatives council has a short term contract with replacement of underground services and will continue to work closely with the Nelson City Council. Victoria Square also received new reconstruction of the remainder of the West Coast District Health Board (WCDHB) equipment. Crampton Road playground street to occur over a period of time. and Ministry of Health (MoH) to ensure in Reefton had a safety surface upgrade This is the most cost effi cient option for It is planned to upgrade the street two there is no loss of services to residents and some new equipment replaced disposing of residual waste at present, blocks per year to spread the costs to the in Buller. the equipment already removed. although Council has now purchased ratepayer. land to use as a landfi ll site at Caroline Terrace. These structural upgrades are Buller District Plan being funded from Reserve Fund Westport Harbour Limited The District Plan Review is an ongoing contributions held by Council. A Waste Minimisation and Solid Waste Land and buildings were sold with the project looking at the effi ciency and working group has been established . They remainder of the harbour assets being effectiveness of the Buller District Plan. are working with Manager Operations to Council also contributed $35,000 towards leased to Westport Harbour Limited. On review the best long term options for the Carters Beach playground upgrade. 01 September 2010 Westport Harbour Buller relating to waste disposal and The Buller District Council has proposed Limited also took over the management minimisation. changes to some of the rules around of the Harbour operation from Holcim. residential activities in the District’s Chief Executive Resigns Residential, Scenically Sensitive Residential and Commercial Zones. The Council’s Chief Executive, Gary Sale of Leasehold Land Resource Planning Murphy, resigned to take up a position as In June 2010 Council passed a resolution General Manager at Lismore City Council, The planning department had a busy year These proposed changes were part of a approving a 20% discount off the market northern New South Wales, Australia. with some complex resource consents in wider review of the Buller District Plan, value of its Endowment Leasehold the mining sector, including high profi le the document which sets out the rules and property as an incentive to encourage applications from Buller Coal Holdings requirements for land use and subdivision We wish Gary well in his future leaseholders to freehold this type of application (at Denniston) and changes to in the District. endeavours and thank him for the property from Council. the Globe Hill / Oceana Gold consent in dedication and commitment he Reefton. displayed towards the Buller District. As at 30 June there were 29 completed freeholding transaction with $1.79m Playground Updates The department has been heavily engaged being paid to Council, with a further Buller District Council has invested in progressing the resolution of appeals 25 property transactions at Council’s $261,000 towards upgrading several through the Environment Court. solicitors awaiting processing and playgrounds around Buller. settlement. Work began with the removal of old Integrated Family equipment in the playground on the Health Centre mayor & chief executives message executives chief & mayor Roading corner of Derby and Fonblanque Streets. Council representatives and stakeholders The playground equipment was taken out Major repairs of Tidal Creek Bridge were from Public Health Organisation and to be replaced with modern equipment undertaken. This included the renewal of District Health Board have met to discuss that meets the NZ Playground Safety the deck, subdeck and the installation of various health issues and to consider the Standards. This playground has new safety a new guardrail. community requirements for an integrated matting laid down with bark covering the family health centre. rest. A Roplay Ball, a climbing themed piece of equipment, was installed in November. 10 Buller District Council • Annual Report year ending 30 June 2011 Financial Summary Council ended the year with a net defi cit of $3.1m versus a budgeted surplus of $7.6m. The loss on the fi xed interest derivative contracts and loss on the sale of the leasehold Actual operating revenue was budgeted to be $22.8m but $21.4m was achieved. properties accounted for a further $402,000 unbudgeted expenditure. The loss on the sale of the leasehold land is attributable to the discount offered by Council as The upgrade of the Reefton Water Upgrade was in progress and the Waimangaroa an incentive to encourage freeholding. The investment in Buller Holdings Limited upgrade was deferred to 2011/2012. Council is awaiting the approval of the Punakaiki was written down by $1.4m. Water Supply upgrade by Ministry of Health and Environment (MOH). This resulted in income totalling $1.2m not being claimed for Drinking Water Subsidy from the MOH. Council has prepared the budget and assumption that a revaluation would occur. A revaluation wil be undertaken in 2011/2012. The Cultural Hub Project was put on hold pending the application for funding from the Lottery Environment and Heritage Fund Committee. Budgeted external contributions Capital Expenditure totalling $5.5m was undertaken. of $750,000 have not materialised as fundraising has not yet commenced. Lower Major projects undertaken included: contributions were also received for the remaining V2010 Projects in Inangahua, Seddon and Streetscape. • Roading including the upgrade ($1.8m) of Tidal Creek Actual operating expenditure was budgeted to be $19.7m but $24.5m was incurred. bridge and Derby Street reconstruction Employee benefi t exceeded budget by $286,000 due to salary adjustments in support Renewals to water supplies totalled $539,000 and increases in services, higher salaries than predicted for the NBS Theatre and unbudgeted Harbour • levels of service totalled $568,000. The standard of water fi ltration salaries. The overrun is also partially attributable to the overrun in other expenses in Westport was improved, and the project to meet the latest ($1.6m). This was due to: Drinking Water Standards in Reefton was in progress at year end. • Playground upgrades ($261,000) Unbudgeted grant expenditure towards V2010 projects that could not be • Council property upgrades ($735,000) within Amenities and Reserves capitalised by the Council $217,000 (Inangahua $71,000; Seddon $146,000) • Upgrades of the Reefton and Westport weighbridges and constructuion Unbudgeted Domain Board expenses ($285,000). This expenditure is hugely • of a recycling shed at the Westport Transfer Station ($390,000) • variable and cannot be budgeted for. It is largely offset by Domain Board income. Work in progress totalling for 2010/2011 ($873,000) for • the Cultural Hub was carried forward to 2011/2012 • Increased leak detection and repairs to Westport Water Supply ($215,000), increased power costs in Westport and Reefton water supply ($35,000). • Stormwater upgrades ($222,000) • Repairs and maintenance at the Transfer Station exceeded budgets, as envisaged budget effi ciencies did not eventuate ($159,000). • Upgrades to Westport and Reefton sewerage ($132,000) Higher repairs and maintenance costs were associated with the Westport • Sewage ($118,000). Higher costs associated with the operation of the Theatre ($124,000). This • was the fi rst representative year of operation and expenditure levels were So what’s the score …. higher than envisaged in the budget. This year was a year of substantial change and progress on many fronts with Unbudgeted harbour expenditure totalling $235,000. However this has been Council and staff starting to identify, prioritise and begin resolving the long message executives chief & mayor • offset by unbudgeted harbour income. The harbour income and expenditure outstanding challenges facing the Buller district resulting in higher than planned was unbudgeted as Council had anticipated that the management of the expendtiure and repairs and maintenance on water, sewage and refuse. Harbour operations would have been transferred to Westport Harbour Ltd. Higher power costs associated with the operation of the Solid Energy Centre Council remains committed to fi nding affordable long term solutions for the • ($207,000). This was offset by a contribution from Buller Recreation of ratepayer in relation to the Westport water supply and refuse. $117,000 (refl ected under Fees and Sundry). Depreciation was $997,000 higher than budgeted. • Buller District Council • Annual Report year ending 30 June 2011 11
contact details
Brougham House Reefton Service Centre Sue Thomson-Casey Memorial Library 4-6 Brougham Street 66 Broadway 87-89 Palmerston Street PO Box 21 PO Box 75 Westport 7825 Westport 7866 Reefton 7851 Phone [03] 788 8030 Phone [03] 788 9111 Phone [03] 732 8821 Fax [03] 788 8147 Fax [03] 788 8041 Fax [03] 732 8822 details contact Freephone [0800] 807 239 Freephone [0800] 808 821 www.bullerdc.govt.nz\library Email [email protected] The main library for the Buller District is located in Westport, with library facili es also available at the Ree on Service Centre
Buller District Council • Annual Report year ending 30 June 2011 13 mayor & councillors
Mayor and Councillors mayor & councillors & mayor of the Buller District
Elected 2011
left from front: Councillor’s David Barnes, Graeme Neylon, Graham Howard, Jim Halsall and Dave Hawes
centre: His Worship the Mayor, Pat McManus
right from front: Councillor’s Fred Ratahi, Margaret Montgomery, Rosalie Sampson, Peter Campbell and John Hill
Buller District Council • Annual Report year ending 30 June 2011 15 Pat McManus (Mayor - Buller District) First Elected: 2000 Phone: [03] 789 7899 | [03] 789 7013 (private) | [027] 208 7583 (mobile) Email: [email protected]
David Barnes (Westport Ward) Peter Campbell (Westport Ward) First Elected: 2007 First Elected: 2007 Phone: [03] 789 6494 (private) | [021] 159 1593 (mobile) | Phone: [03] 789 7824 (business) | [03] 789 6421 (private) | [027] 434 8157 (mobile) | Email: [email protected] Email: [email protected]
Jim Halsall (Westport Ward) John Hill (Westport Ward) First Elected: 2007 First Elected: 2010 Phone: [03] 789 7546 (private) Phone: [03] 789 6415 (private) | [021] 199 7155 (mobile) |
Email: [email protected] Email: [email protected] mayor & councillors & mayor
Graham Howard (Westport Ward) Margaret Montgomery (Westport Ward) First Elected: 2010 First Elected: 2004 Phone: [03] 789 8787 (private) | [027] 534 3129 (mobile) | Phone: [03] 789 7043 (business/private) | [027] 433 6016 (mobile) | Email: [email protected]
Fred Ratahi (Seddon Ward) Rosalie Sampson (Seddon Ward) First Elected: 1998 First Elected: 1989 Phone: [03] 782 8119 (private) | Phone: [03] 782 6745 (private) | [027] 356 7388 (mobile) | Email: [email protected]
Dave Hawes (Inangahua Ward) Graeme Neylon (Inangahua Ward) First Elected: 2007 First Elected: 1992 Phone: [03] 732 8423 (private) | Phone: [03] 732 8382 (private) | [027] 431 4659 (mobile) | Email: [email protected] Email: [email protected]
16 Buller District Council • Annual Report year ending 30 June 2011 inangahua community board
Jenette Hawes (Chairperson) Helen Bollinger First Elected: 2004 First Elected: 2008 Phone: [03] 732 8423 (private) Phone: [03] 732 8123 (private) Email: [email protected] Email: [email protected]
Barrie Fowler Megan McCarthy First Elected: 2008 First Elected: 2007 Phone: [03] 732 8488 (private) Phone: [03] 732 7006 (private)
Email: [email protected] Email: [email protected] inangahua community board community inangahua
Buller District Council • Annual Report year ending 30 June 2011 17
statement of compliance & responsibility
Compliance The Council and Management of the Buller District Council confi rm that all the statutory requirements in relation to the Annual Report have been complied with.
Responsibility The Council and Management of the Buller District Council accept responsibility for the preparation of the Annual Financial Statements and the judgements used in them. The Financial Statements are unable to be amended following issue.
The Council and Management of the Buller District Council accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of fi nancial reporting.
In the opinion of the Council and Management of the Buller District Council, the Annual Financial Statements for the year ended 30 June 2011 fairly refl ect the fi nancial position and operations of the Buller District Council and Group.
Pat McManus Angela Oosthuizen Mayor Acting Chief Executive
31 October 2011 31 October 2011 statement of compliance & responsibiity & compliance of statement
Buller District Council • Annual Report year ending 30 June 2011 19
governance
Council complies with the laws of New Zealand and adheres to good business practice by relying on the processes and systems which constitute the fabric of the organisation. Stakeholders rely on these processes to obtain information on Council operations and to obtain assurance that Council is working in the best interest of the community. This section identifi es the parameters within which the business of Council is run.
Division Audit A key to the effi cient running of the Council is the clear division between the role The Local Government Act 2002 requires the Council to prepare fi nancial of Council and that of management. The Council concentrates on setting policy statements that fairly refl ect the organisation’s fi nancial position, performance
and strategy, then reviews progress. Management is concerned with implementing and cashfl ows. In addition, the Council is required to report on the achievement of governance the policies and strategies. non-fi nancial objectives, set three yearly as part of the Long Term Plan process.
While many of the Council’s functions have been delegated, the overall responsibility Section 15 of the Public Audit Act 2001 requires the Auditor-General to for achieving the vision and goals of the district ultimately rests with the Council. audit both fi nancial and non-fi nancial statements. Audit New Zealand is The Council discharges this responsbility by maintaining effective systems of contracted to perform the audit on behalf of the Auditor-General. internal control. Internal control includes the policies, systems and procedures established to provide measurable assurance that specifi c objectives of the Council will be achieved. Internal audit The Council has an internal audit function which is responsible for monitoring the Council’s systems of internal control and the quality and reliability of fi nancial Training elected representatives information reported to the Council. The Council liaises closely with the external After each election the Council holds training sessions for all Councillors to auditors who review the internal control systems to support their audit opinion. review their responsibilities as elected members. These sessions include meeting procedures and an overview of the legislative parameters within which local authorities operate. Monitoring council controlled organisations The Council has interests in other organisations, these include Buller Holdings Limited, Westport Harbour Limited, WestReef Services Limited, Buller Recreation Legislative compliance Limited and Westport Airport Authority. These organisations are required to Being a regulatory body, the Council administers various regulations and laws. produce a Statement of Intent developed in consultation with Council. As such, it is vital the Council also complies with all relevant legislation. Other interests of Council include Buller Health Trust where the Mayor and Chief Executive are Trustees, Tourism West Coast where Council appoints two board members, Buller Art and Recreation Trust (BART) where one Councillor is a Trustee and Denniston Heritage Charitable Trust where two Trustees are appointed by Council.
Buller District Council • Annual Report year ending 30 June 2011 21 community outcomes
The Local Government Act 2002 has prompted changes in the way which Council plans for the future of the district. It also provides greater scope for communities to make their own choices about what Council does and the way in which it does these things.
The legislation requires Council to undertake a process, at least every six years to identify community outcomes.
These outcomes are determined by the community, rather than by Council. However, they do provide Council with clear direction in planning by forming the basis for the
Long Term Plan. community outcomes community In 2005 Council facilitated a full community outcomes consultation for the Buller district. Council staff reviewed the feedback received during the consultation process and an overview report “Mapping A Future For Buller” was produced. After publishing the results and providing an opportunity for comment, Council was satisfi ed that we had refl ected what was important to the community.
The following six high level outcomes were identifi ed:
Buller District Council • Annual Report year ending 30 June 2011 23 Community We will know we are succeeding when we: How will progress be measured : Outcome: Health • Provide essential services to residents and businesses to support • Food premises inspections a healthy environment • Sewerage disposal services • Promote opportunities for community access to health information and participation • Waste management • Advocate for local community • Water supply • Establish an environment of support and assistance to health • Healthy homes providers • Support alcohol and drug education initiatives • Support for community health initiatives • Sports and recreation facilities • Cemetery management • Buller Health Trust • Actively support recruitment of medical professionals • Health information provided in libraries • Work closely with West Coast District Health Board • Work with Department of Conservation to improve participation and
community outcomes community enjoyment Education • Provide a supportive environment for education providers • Library services • Recognise and support education excellence and opportunity in • Grant activities the district • Relationships with education providers • Advocate for local community • Support for literacy programmes • Support the implementation of employment and training initiatives that offer improved employment, skill and income • Education programmes opportunities • Youth worker networks • Promote friendly Local Government • Road education safety • Celebrate community and individual achievements • Provision for pool facilities and sports grounds • Scholastic awards to local students • Support for learning and education initiatives and competitions • Support for school programmes and curriculum • Internet access at libraries • Advocate for support of training initiatives
24 Buller District Council • Annual Report year ending 30 June 2011 Community We will know we are succeeding when we: How will progress be measured : Outcome: Safety • Provide and develop safe public places • Animal control activities • Assist in reducing crime and accident levels • Liquor licensing and bans • Promote friendly Local Government and provide opportunity for • Enforcement and monitoring involvement • Elderly housing • Provide opportunity for the community to work in partnership with Council • By-laws • Welcome residents, businesses and visitors • Civil defence, rural fire and emergency management • Celebrate community and individual achievements • Road and traffic safety/user safety • Recognise and support those with special needs and requirements • Hazard identification/lifelines • Community awards (host responsibility) • Townwatch and security cameras • Safety initiatives and projects • Street lighting, road cleaning and vegetation control • Consultation policies and practices • Support for community projects/groups • Communication policies and practices • Disabled access, building control/priority paths
Environment • Develop policies and implement practices that enhance our • District Plan
environmental sustainability and natural diversity • Resource consent process community outcomes community • Recognise and preserve the essential elements of the district’s • Monitoring and enforcement landscape that contribute to Buller’s unique natural identity • Waste management • Ensure that planning processes enable effective public consultation over an appropriate balance between the natural • Harbour management and built environment • District promotion • Develop practices that help to improve cleanliness and • Relationship with Department of Conservation sustainability of the district’s infrastructure • Road upgrade improvements • Access central Government funds to support infrastructure • Wastewater/sewerage projects development and improvement • Parks and reserves maintenance • Maintenance and development of walkways • Support/implement community projects, ie, beach clean-ups • Relationship with key industries • Town planning/urban design
Buller District Council • Annual Report year ending 30 June 2011 25 Community We will know we are succeeding How will progress be measured : Outcome: when we: Economy • Improve communication between Council and the business • District promotion community • Support of Business Association and Buller Promotions Association • Continue to develop and advocate for district-wide infrastructure that supports business and tourism growth • Building consent liaison with businesses/developers • Access central Government funds and programmes that can • Road improvements to support industry support development of infrastructure, tourism, employment, business and training • Relationships with key industries • Assist in strengthening links between schools, training • Film and business friendly strategies opportunities and the business community • Street enhancements and urban design • Develop a regulatory framework that supports sustainable economic growth without compromising the environment • Purchasing policy • District Plan reviews • Mayors Taskforce for Jobs • Transport infrastructure: airport/harbour/roading • Support to health and education providers Identity • Support and encourage community groups and organisations • Libraries and theatres providing events within the region • Sports facilities and community halls PIC to insert
community outcomes community • Provide a range of arts, cultural, recreation and social facilities throughout the district • Community grants • Encourage and support other organisations in providing arts, • Facilitate Creative New Zealand grants cultural, recreational and social facilities throughout the district • Support to cultural organisations such as museums Provision of appropriate infrastructure to support a vibrant • community • Ongoing support of events Facilitate community grants process to assist in the provision of • Provision for public toilets/facilities • events and services that support a vibrant community • Maintenance of parks and reserves • Road and signage • Urban design • Visitor information • Camping ground • Replacement of pools/sports venue • New or upgraded theatre facilities
26 Buller District Council • Annual Report year ending 30 June 2011 As required by Section 92 of the Local Government Act, we have fi nalised monitoring documents on the community outcomes, together with the Regional Council and other local District Council’s on the West Coast. It was agreed that this would be jointly done to expedite the process and to achieve cost and effi ciency synergies.
To-date indicators across all outcomes have been agreed and draft monitoring reports have been fi nalised. The District Council’s and Regional Council have met quarterly to achieve agreement on the community outcome indicators and have chosen indicators based on consultation with Statistics New Zealand and the Department of Internal Affairs. It is important also that the indicators chosen are both meaningful to the community and data to measure progress is readily available. It was agreed that the Regional Council would take a lead role in consolidating the draft monitoring reports. Monitoring reports were
fi nalised during June 2009 and were made publicly available.
community outcomes community (Cape Fear - Cape Foulwind, Westport) Foulwind, Cape - Fear (Cape
Buller District Council • Annual Report year ending 30 June 2011 27
fi nancial highlights Annual Report This summary provides an overview of the information contained in the Annual Report for 2010/2011 fi nancial year. We have prepared it to help you understand how we performed against our plans for that particular year and includes details of any signifi cant variances in operational and capital expenditure. It is considered important to provide the Finance and Audit Committee with an update on the Annual Report prior to the release of the report because the fi nancial performance is concerning.
Statement of Financial Performance Vested Assets Council ended the year with a defi cit of $3.1m versus a budgeted surplus of $7.6m. Assets vested in Council totalled $40,000 and were much lower than budgeted yielding an unfavourable variance of $310,000.
Operating Revenue
Actual operating revenue was budgeted to be $22.8m but $21.4m was achieved. Fees and Sundry nancial Highlights nancial
The increase is attributed to unbudgeted harbour fi income of $720,000. Council had anticipated that the Financial Assistance fi nancial management of the Harbour operation would have been transferred to Westport Harbour Limited in Council budgeted to receive $5.7m for Financial Assistance but only $3.9m was received. A 2010. This was fi nalised on 01 September 2011. signifi cant portion of the shortfall is due to the Reefton Drinking Water Standard (DWS) project running into the 2011/2012 fi nancial year resulting in a delay in claiming the Drinking Water Subsidy. In addition, the Drinking Water Standard Upgrades for Waimangaroa and Punakaiki were deferred to 2011/2012. Council is still awaiting approval of the Punakaiki Water Supply Upgrade Revaluations of Investment Land by the Ministry of Health. The net effect of this resulted in $1.2m not being received for Drinking The revaluation of investment property was lower than budgeted Water Subsidy. The Cultural Hub Project was put on hold pending the application for funding ($345,000). This is mainly due to market conditions resulting from the Lottery Environment and Heritage Committee. This resulted in a shortfall of external in property valuations being lower than expectations. contributions of $0.75m.
Summary of Changes in Operating Revenue Investment and other Income The reduction in income is mainly attributable to the Interest on investments and dividends from the Holding company totalling $1.6m was received shortfall in Drinking Water subsidies ($1.1m), the shortfall versus a budget of $872,000. This is due to a distribution being budgeted under Other Income, in external contributions budgeted towards the Cultural whereas dividends totalling $980,000 were received and are classifi ed as Investment Income. Hub development, and the lower external contributions towards Vision 2010 projects. In addition the reduction in vested assets accounted for a further $0.3m.
Buller District Council • Annual Report year ending 30 June 2011 29 Operating Expenditure Other Expenses Actual operating expenditure was budgeted to be Budget was exceeded by $1.6m. This was due to: $19.7m but $24.5m was incurred. • Unbudgeted grant expenditure towards V2010 projects that could not be capitalised by the Council $217,000 (Inangahua: $71,000; Seddon: $146,000) Employee Benefi t Expense • Unbudgeted Domain Board expenses ($285,000) – this expenditure is hugely Higher than budgeted salary costs across the management, support services and variable and cannot be budgeted for. It is largely offset by Domain board Theatre team accounted for over expenditure totalling $162,000. Unbudgeted income. Harbour salary expenses accounted for $124,000. • Increased leak detection and repairs to Westport Water Supply ($215,000), increased power costs in Westport and Reefton Water Supply ($35,000). Depreciation • Higher repairs and maintenance costs were associated with the Westport Depreciation was $997,000 higher than budgeted. Depreciation in Roading exceeded Sewerage ($118,000). budget by $0.4m as the Annual Plan depreciation for pavement surface was based • Higher costs associated with the operation of the theatre ($121,000). This on a prior revaluation amount. Depreciation was $100,000 higher in Amenities and was the fi rst representative year of operation and expenditure levels were Reserves due to property upgrades. Unbudgeted Harbour depreciation accounted higher than envisaged in the budget. for the remainder ($462,000). • Unbudgeted harbour expenditure totalling $235,000. However this has been offset by unbudgeted harbour income.
nancial Highlights nancial Finance Costs • Higher power costs associated with the operation of the Solid Energy
fi The fi nance costs were lower than budget due to fi nancing of projects through Centre ($207,000). This was offset by a contribution from Buller Recreation internal loans. In addition, drinking water standards upgrades and cultural hub of $117,000 (refl ected under Fees and Sundry). development were deferred to 2011/2012 resulting in lower fi nance costs. The loss on the fi xed interest derivative contracts ($208,000) and loss on the sale of the leasehold properties ($194,000) accounted for further unbudgeted expenditure. The loss on the sale of the leasehold land is attributable to the discount offered by Council as an incentive to encourage freeholding but was outweighed by the cash generated from the sales ($1.8m). The investment in Buller Holdings Limited was written down by $1.4m.
Revaluation Reserve The Annual Plan was prepared on the assumption that a revaluation would be carried out every year. This is not the approach that will be taken yielding a variance of $4.3m.
30 Buller District Council • Annual Report year ending 30 June 2011 Statement of Position Capital Expenditure • Disposals of leasehold land at a 20% discount to encourage freehold has Capital Expenditure totalling $5.5m was undertaken. Major projects resulted in disposals of investment land totalling $3.3m. As at 30 June 2011 undertaken included: there were a total of 23 leasehold properties with a sale value of $1,500,000 lodged at Council’s solicitors pending completion of sale. • Roading including the upgrade of Tidal creek bridge and Derby Street • On 1 September 2010 Council sold land and buildings to Westport Harbour reconstruction ($1.7m) Limited and in consideration Buller Holdings Limited issued 1,118,000 shares to Council with a par value of $1.00. Subsequent to balance date, in August 2011, Buller Holdings issued $300,000 ordinary shares at $1.00 each in order to make the second and fi nal payment for land and buildings purchased from • Water upgrades across Westport, Reefton and rural areas ($1.1m) Buller District Council prior to 30 June 2011. • Debt levels were lower than envisaged at $23.4m. This is due to the deferral of the Drinking Water Standard Upgrade Projects resulting in lower capital • Playground upgrades ($261,000) expenditure than planned. The balance of investments is $10.3m and Council is operating well within our Treasury Management ratios: • Infrastructure assets totalled $257.185m (2010: $258.040m). • Council property upgrades ($735,000)
Policy Actual Compliance Highlights nancial • Upgrades of the Reefton and Westport weighbridges and construction fi Maximum of a recycling shed at the Westport Transfer Station ($390,000) Specifi c Borrowing Limits Interest Expenses against total revenue 15% 6.85% √ Interest Expenses against total rates 20% 13.77% √ • Work in progress totalling $873,000 for the Cultural Hub was carried forward to 2011/2012 Debt to total income ratio 2.5 1.09 √ Liquid ratio 1:1 1.3: 1 √ Total Debt per property $5,500 $3,181 √ • Stormwater upgrades ($123,000)
• Upgrades to Westport and Reefton Sewerage ($184,000)
Buller District Council • Annual Report year ending 30 June 2011 31
(Kohaihai River swi River (Kohaihai ngbridge, ngbridge, Heaphy Track, Karamea) Track, Heaphy consultation with maori
Opportunity for Maori to Contribute to the Decision Making Processes of the Local Authority
The Buller District Council continues to participate in local kaitiaki ropu meetings with local Iwi and the Department of Conservation as appropriate. Iwi have indicated that additional liaison groups, such as an Iwi Liaison sub-committee would pose resource issues for them at this time.
The public forum available before all Council meetings have been utilised over the past year by local Maori to raise concerns or issues with Council.
Both the Papatipu Runanga - Ngati Waewae and local community groups working with Maori are included on Council’s stakeholder database and are included in information dissemination such as Council newsletters and consultation documents.
Ngati Waewae was included in stakeholder group discussions prior to consultation within the district on community outcomes.
Ngati Waewae was also consulted regarding the siting of
Council’s proposed landfi ll development project. consultation with maori with consultation
With their support, Council endeavoured to purchase the archaeological historic site at Carters Beach. Council looks forward to working with Ngati Waewae and the Department of Conservation on plans for the effective management of this important heritage area.
Buller District Council • Annual Report year ending 30 June 2011 33
Our work in detail Our work in detail Our work in
Buller District Council | 2010-2011 Annual Report (Clocktower Chambers, Palmerston Street, Westport) democracy
What do we do? How the Council performed Council is an elected body that provides a governance structure for effective leadership, advocacy and accountable stewardship of the Buller 2050 Council’s assets and resources. The purpose of the Buller 2050 project is to develop a 50 year strategic plan over the next two years for the Buller district that outlines a future ideal state and The Council is made up of the Mayor, 10 elected Councillors and the Inangahua the action plans for achieving that future. Extractive industries such as timber, Community Board. They are supported by a Chief Executive and Council staff. cement, coal and gold have a fi nite life and relying on them to provide economic Under the Local Government Act 2002, our statutory roles are: growth in the next 50 years is not sensible. This coupled with other challenges,
such as the uncertain effects of climate change and global fi nancial crisis in 2009, democracy prompted a need to develop a strategy and action plan for economic development • To enable democratic local decision making and action by and on behalf of in the future. It is recognised that developing new industries or opportunities the people of the Buller district is not something that can be done overnight and requires careful planning. • To promote the social, economic, environmental and cultural wellbeing of the Buller district, in the present and in the future In March 2010 Buller District Council endorsed the project Buller 2050: Envisioning our Future which is about planning now for what Buller might look like in the year 2050. The Council develops strategies and policies which set the direction for the future of the Buller District Council by including the democratic and decision making processes of Council such as informing the public, generating feedback and involving people in the decision making process. What will our community look like and who will live here - what will they do? Workshops were held in Karamea, Westport, Reefton and Punakaiki in 2010 to give people an opportunity to have their say. Key stakeholders Why do we do it? have been identifi ed for inclusion in future discussions. Council wish to ensure that the community is satisfi ed that the Buller District Identifying new opportunities, encouraging entrepreneurs to consider those Council is effectively governed and managed. The Council’s purpose is to enable opportunities, developing those opportunities and ensuring they are sustainable democratic decision making at a local level by and on behalf of our communities, all takes time, perhaps anything from 5 to 20 years. If the framework for this plan to promote the social, economic, environmental and cultural wellbeing of our is put in place by the end of 2011, this will complement the District Plan review communities now and into the future to meet legal requirements and statutory process and allow the major action plans to be included in the 2012 LTCCP. deadlines.
Contributes to what community outcome? Engagement with Maori During the 2010/2011 fi nancial year there was one formal meeting held with Democracy supports all the community outcomes as it provides the governance Ngati Waewae to discuss a cultural assessment for the proposed landfi ll site. and the opportunity for civic engagement.
Buller District Council • Annual Report year ending 30 June 2011 37 Elections Elections were held on 09 October 2010. Two Council priorities new Councillors were elected - John Hill and The new Council of 2010 have set the direction for the next three Graham Howard - for the Westport Ward. years by identifying the top priorities moving forward as they began their term as the Council of the Buller district. The focus in this Councillor inductions were held on 20 and 21 planning is on long term solutions for the benefi t of our district.
democracy October 2010, with the fi rst Council meeting held on 27 October 2010. First on the list is a long term solution for Westport water. The current system is no longer able to meet the latest drinking water standards issued by central Government so a long term solution needs to be implemented. A Water Group has been created to ensure that decisions can be made promptly and carefully to ensure that the solution decided on can last for 50-100 years.
Second on the list is a long term answer to the Buller landfi ll. Currently all of the residual waste from Buller is being trucked to Nelson, as Council has a short term contract with Nelson City Council. At present this is the most cost effective option for disposing of residual waste, although Council has now purchased land to use as a landfi ll site at Caroline Terrace and is in the process of applying for resource consents and a designation. A Waste Minimisation and Solid Waste working group has been established to work with the Manager Operations to review the best long term options for Buller relating to waste disposal and minimisation.
Council wants to work closely with the West Coast District Health Board (WCDHB) and Ministry of Health (MoH) to ensure integrated family health centres are established with no loss of services to residents in Buller.
Other priorities include a complete review of the Buller District Plan; Review of the Rating system; the development of revenue streams so that Council relies less on rates; establish Westport fl ood mitigation measures; treated water supplies for Northern Buller; action plans for Buller 2050; and develop plans to retain existing businesses, attract new businesses and grow our economy.
Mokihinui River) Mokihinui Other areas identifi ed that also need to be worked on consist of working with the O’Conor Home (Old Age Care), WCDHB and all other parties to ensure that aged care and dementia facilities are retained; ensure better coordination
of social services; debt reduction and develop more shared services. (Whitebaiting, (Whitebaiting,
38 Buller District Council • Annual Report year ending 30 June 2011 Key performance indicators What we did What we measured Target Actual To provide a governance All meetings notified as per legislative requirements (Local Government 100% All meetings notified as required structure and to develop Official Meetings Act “LGOIMA”) and Standing Orders. (2010: no change) strategic direction for the - Minimum notification period of five days but this notification period future of the Buller district must not exceed 14 days. - If meeting after the 21st day of the month minimum notification is five days but notification period not to exceed 10 days. % of agendas and reports available from Council two clear working days 100% 100% prior to each meeting (2010: no change)
% attendance of Council members at various Committee and Working 90% 94% at Council Meetings democracy Group meetings (2010: 92% at Council Meetings)
% of Council meetings that are run according to statutory requirements 90 - 100% All Council meetings are run according to range statutory requirements. Nil breaches of legislation noted. (2010: no change) To engage and educate % Residents who are satisfied with the way Council involves people in 75% Survey was undertaken in November 2010. members of the community in decision making satisfaction matters of importance in our 400 Buller residents shared their opinion district The leading priorities that were identified by residents as actionable of Council and its performance. Council include water supplies, sewerage, waste management and stormwater contracted Research First, a Christchurch- drainage. based company, to conduct a residents opinion phone-based survey in November 2010. The full survey is available online via Council’s website www.bullerdc.govt.nz. As a result of the survey Council formalised a list of priorities at the November 2010 meeting which includes a ‘long term view’ of the Westport Water Supply upgrade and long term solution for Buller refuse. Number of meetings held with Maori Two formal One meeting was held to discuss a cultural meetings per assessment for the proposed landfill site. annum (2010: Nil meetings held) % of consultations undertaken in compliance with legislation through 90 - 100% Consultations were undertaken and all evaluation of consultation procedure range legislative requirements were met (100%). (2010: no change) Co-ordination of annual Adoption of Long Term Council Plan and Annual Plan within statutory Meet required Met required statutory deadlines for adoption budgeting and financial timeframes with an unqualified opinion on Long Term Plan statutory of required reports. planning processes and deadlines (2010: no change) preparation of Long Term for adoption Council Community Plan and of required Annual Plan reports Provide timely and accurate Adoption of Annual Report Meet required Met required statutory deadlines for adoption financial information to statutory of required reports Management and Council to deadlines (2010: no change) enable effective monitoring for adoption and reporting of financial of required performance reports
Buller District Council • Annual Report year ending 30 June 2011 39 Full Council meeting attendance
Date Number of Attendees Councillor not in Attendance July 2010 10 Neylon August 2010 10 Campbell September 2010 10 Neylon October 2010 10 Hawes November 2010 11 nil
democracy December 2010 10 Howard January 2011 10 Montgomery February 2011 11 nil March 2011 11 nil April 2011 10 Campbell May 2011 11 nil June 2011 10 Hill
Summary 12 Meetings Held Average % of Attendance 94%
Inangahua Community Board attendance
Date Number of Attendees Member not in Attendance July 2010 5 Neylon September 2010 4 McCarthy and Neylon November 2010 5 Neylon February 2011 6 nil April 2011 4 Fowler and Hawes May 2011 5 Neylon
40 Buller District Council • Annual Report year ending 30 June 2011 Explanation of signifi cant operating variances democracy Fees and Sundry: LLowerower thanthan budgetedbudgeted externalexternal contributionscontributions 2010/2011 2010/2011 2009/2010 wwereere receivedreceived byby InangahuaInangahua CommunityCommunity BoardBoard towardstowards ReeftonReefton GymGym Actual Budget Actual (($10,000).$10,000). DEMOCRACY $(000) $(000) $(000) Other Expenses: AAnn unbudgetedunbudgeted grantgrant waswas mademade towardstowards thethe CChristchurchhristchurch EarthquakeEarthquake appealappeal ($10,000).($10,000). A customer/residentscustomer/residents surveysurvey OPERATING REVENUE wwasas carriedcarried outout ($16,000).($16,000). ThisThis hadhad beenbeen budgetedbudgeted forfor inin 2009/20102009/2010 Fees and Sundry 31 40 3 bbutut thethe surveysurvey hadhad notnot beenbeen carriedcarried out.out. ExpensesExpenses werewere incuredincured forfor llegalegal aandnd ttaxax adviceadvice relatingrelating toto thethe HoldingHolding CCompanyompany (($67,000).$67,000). Financial Assistance 13 0 6 TOTAL Revenue $44 $40 $9
Signifi cant capital expenditure OPERATING EXPENDITURE Employee Benefit Expenses 218 216 210 No capital expenditure undertaken Depreciation and Amortisation 0 0 0 Finance Costs 0 0 0 Other Expenses 627 551 484 Explanation of signifi cant capital TOTAL Expenditure $845 $767 $694 expenditure variances No capital expenditure undertaken NET Cost/(Surplus) of Services $801 $727 $685
CAPITAL EXPENDITURE $0 $0 $0
Buller District Council • Annual Report year ending 30 June 2011 41 Hub, Westport)
ral
- proposed Cultu
(conceptual drawing community services What do we do?
Community Grants & Funding The Council provides funding directly to community organisations, as well as managing the distribution of various government funding for the arts, sporting and safety initiatives.
District Promotion & Development, Development of a Cultural Hub Tourism Support & Events Council consulted with the Community on a proposal to establish a Cultural Hub consisting of an I-Site and Museum in 2005. We introduced a District Promotion and Development Targeted Rate in the 2009/2010 fi nancial year based on a tiered fl at rate in conjunction with a capital charge, targeting tourism operators who advertise and all commercial/industrial The first stage of this project (I-Site and Museum relocation) was included in ratepayers. the 2006 Long Term Plan.
The Promotion and Development Co-ordinator meets regularly with industry There were plans to revitalise the town centre through the creation of a Cultural stakeholders and governing bodies to secure ongoing support and direction of the Hub, linking these two services and the new Performing Arts Centre. Council Collective Tourism Project. This entails actioning of the Buller Marketing Plan. proposed to increase the allocated budget from $1.5m (as previously indicated) services community to $3m over three years in the 2009-2012 Long Term Plan. This includes ongoing development of the Buller Tourism website which incorporates Karamea, Westport, Punakaiki and Reefton to promote the Buller An application has been made to the Lottery Environment and Heritage district as a place to work, live and play. Committee for funding and Council is expecting notifi cation regarding this application in November 2011. Initiation of district wide initiatives aimed a collaboration of operators to further promote and market the district. Westport)
,
(photo collage, Solid Energy Centre Buller District Council • Annual Report year ending 30 June 2011 43 Recreation & Cultural Facilities & Services Why do we do it? The NBS Theatre provides the Buller district with live theatre and shows, performing arts and fi lm. The venue is also able to hold conferences of A community is enhanced through the provision of services that deliver to varying sizes, workshops and festivals - both dramatic and fi lm. the cultural and recreational needs of residents.
Public Libraries and Community Libraries are provided within the district These services are vital to the quality of life of residents and provide the infrastructure delivering access to many forms of information and resources to help that enables the building of social, cultural and sporting associations within the support life long learning, literacy and recreational reading. community. The community also has a vital role to play in contributing to the district’s success by being informed about and involved in decisions and projects. Significant importance is placed on the delivery of cultural, environmental and industrial heritage to the district. The Council is leading projects to develop cultural facilities for the district. Contributes to what community outcome?
Community Engagement Community Outcomes How the Council Contributes Council provides community newsletters, media releases, specialist working groups and consultation programmes to inform Health By providing facilities that allow people to play sport and achieve their fitness and recreational goals. and involve residents in Council activities and decisions. Providing grants, facilities and spaces that assist in developing the community cohesion that supports mental and social well being.
community services community Education Assisting in the development of lifelong learning and literacy through the Library network. Providing performance space for use in artistic and cultural performance. Working with educational institutions on collaborative projects. Safety Supporting the work of social organisations that deliver services to those in need. Economy Providing high quality community facilities to attract people to live and work in the Buller district. Provide opportunities and funding that assist with tourism development and district promotion. Identity Using consultation opportunities to make decisions about the future of the Buller district that reflect the unique attitudes and needs of Buller district residents.
Westport Supporting the promotion of the Buller district through developing opportunities to tell the stories of the social, cultural and industrial heritage.
NBS Theatre,
44 Buller District Council • Annual Report year ending 30 June 2011 How council performed? Libraries and Aotearoa People’s Network Service delivery improvement and engagement with customers and community continue to Grants be focus activities for excellent Library services: Council contributed over $40,000 in community grants. The groups that • Increased facility usage, collection growth and demand for better seating were received the funding provide accountability statements to Council. key factors for a refurbishment project at Westport library resulting in extension and re-organisation of Non-Fiction, Reference and Audio-visual collection as well as new display of periodicals. NBS Theatre • Freed-up space was used for additional tabled seating where visitors can study In 2011 the NBS Theatre has had numerous shows. Some of the highlights in and read comfortably. Children and Young Adults sections also were improved with the auditorium have been comedians Ben Hurley and Mike King, the Royal NZ more front display shelving and attractive seating. Ballet, NZ Army Band. Clubs NZ held their AGM and conference over three • Each Buller district resident visited (the library) statistically the library more than days (400 members) and a Brass Band Regional contest. Other show genres nine times with a total of 88,396 visitors at Westport and Reefton libraries. have included comedy, dance, live theatre and musical. • Usage of free internet access with Aotearoa Peoples Network Kaharoa is refl ecting strong community demand for accessing online and digital information. The In 2011 Buller Electricity sponsored naming rights for the two cinemas. Public libraries had 19,654 PC users and 4,860 Wifi users at Westport library nominations were held and the Bill Moffi tt Cinema and Fred S Gregory screen room were named in an opening ceremony. • The library website was re-vamped as part of BDC website overhaul and is continually updated with library news and events added. Library users stay informed through a subscription service for a bi-monthly library newsletter. The Fred Gregory screen room can be hired for birthday parties, utilising the IT equipment for playing playstation or watching a fi lm of choice. This room • Library events with writers and song-writers like Jenny Pattrick, Vanda Symon and has also been used for meetings and small conferences with presentations Rachel Darwick were cultural highlights and allowed the community to meet and services community being electronically delivered to the audience. There is potential for revenue interact with well known artists. growth in this area. • Literacy activities encourage positive literacy developments for all ages. During New Zealand Book Month and Library Week workshops were held to discover The NBS Theatre is versatile in that all three areas (auditorium, Bill Moffi tt and practice library orientation and services with students. Adult Learners Week Cinema and Fred S Gregory screen room) can be used simultaneously. opened with a night presenting all local Adult Learning Services as a one stop shop. Holiday reading programmes were fully booked and helped retain literacy skills of children when not at school. This use of the facility provides a further opportunity for growth in the forthcoming year. • More co-operation with the educational sector and pre-school educators was successfully initiated and resulted in a workshop for young writers for Buller High School Students and a total of 44 group visits to the libraries. Ongoing The cinema area of the building is open seven days allowing the public collaboration with ICT West Coast helped facilitate ICT training courses for seniors fl exibility in their viewing times. Films open the same time at the NBS Theatre and students. as they open in the rest of New Zealand. Midnight screenings of blockbuster fi lms have also been introduced. The theatre has also got on board with • Regular displays and exhibitions of cultural and historical subject were arranged groups, clubs and offering fundraiser screenings of fi lms. This is proving to be to support community group activities like Genealogy and History Group, New increasingly popular and supports the community in fundraising efforts. Coasters, Counselling Services like Homebuilders and a wide range of local non- profi t organisations. The Theatre website www.nbstheatre.co.nz has been developed and is • Digital preservation of historically important library records continued. Archive attracting overseas acts. records were updated and historic newspaper holdings added. • Library staff provided input and expertise for development and progress of two The introduction of fresh popcorn and chocolate bombs has proved to be a nationwide high-profi led library projects Aotearoa People’s Network and Kotui popular return for the patrons. Shared Library Management systems.
2011 has been a year of growth for the NBS Theatre. Buller District Council • Annual Report year ending 30 June 2011 45 District Promotion and Tourism The main focus of the Promotions and Development offi ce this past year has been the Collective Tourism Promotion Project, which is a fi ve- year project to build all the components needed to promote the Buller district as a recognised visitor destination, building on the fact that Buller can offer the best of many things the West Coast is famous for.
Achievements to date include a comprehensive strategy and marketing plan, a district tourism brand, new tourism website, photo library, district signage, development of a Buller Touring Guide and distribution plan.
The offi ce has also developed an inventory of local mining ancillary businesses for prospecting mining companies, assisted Department of Conservation with the Denniston Experience, worked with other development agencies such as Buller Holdings Limited, Development West Coast and Tourism West Coast as appropriate.
A Promotions and Development Committee has been established to ensure local
stakeholder input into the operational and strategic direction of the offi ce. community services community
Communications A new look Council website which is ready to offer information and services to all was developed.
Demand for communication and information to be obtained over the internet has steadily increased in recent years, especially with access to high speed internet being available to growing numbers of residents in rural areas of Buller. With this in mind the Buller District Council allocated funds in the 2010/2011 annual budget to get the Council website refreshed and updated, so that better information can be provided.
46 Buller District Council • Annual Report year ending 30 June 2011 Solid Energy Centre (managed by Buller Recreation Ltd)
The Solid Energy Centre has now completed its second year of operation, which has again had its frustrations with regards to building related issues. However, these are now mostly behind us which puts us in a strong position for the future. Some signifi cant progress was made in reducing the energy costs to the business over the last 12 months, but there is still some work to do to ensure the heating system can function in all weather conditions. An Asset Management Plan has been completed, and systems put in place to ensure that maintenance work is carried out when required.
Some changes have been made to how people are employed in the business during the last year, with the fi tness instructors joining the staff team instead of being contractors. The staff structure has also changed with a reduction in team leaders, and an increase in customer service staff.
Usage of the centre has remained steady in comparison with
last year, with slight reductions in income in certain areas of the community services community business. Swimming numbers have increased this winter, which suggests that swimmers are becoming accustomed to having a year round pool available to them. The centre continues to attract a reasonable number of meetings and events. There is potential for growth in this area.
The Buller High School has become an ongoing user of the facility, with their pool being closed during the year. They are using the aquatic centre for all their water sports requirements, and the stadium for many of their PE classes.
The 2011 year has been primarily focused on ensuring that the systems and building at the Solid Energy Centre are as effi cient as possible, with a focus on reducing costs wherever we can and ensuring that the asset is well maintained.
(Solid Energy Centre, Westport)
Buller District Council • Annual Report year ending 30 June 2011 47 Key performance indicators Objective Measures Target Actual To contribute Community Grants and Funding: to community development Distribution of national 90 - 100% range 100% Achieved (2010: 100%) through funding in accordance Over $40,000 distributed in contestable funding from Creative New liaison, with policies Zealand, SPARC and Ministry of Justice (2010: $34,000 distributed) funding and Council Grants 90 - 100% range 100% (2010: 100%) support distributed and to vital monitored in accordance community with our policies organisations To support the District Promotion, Tourism Support and Events: development and Key Performance 90 - 100% range KPI’s have been set per organisation by Council and agreed by the sustainability Indicators (KPI’s) agreed KPI’s monitored and achieved relative parties. Quarterly reports are provided to the Community for district with all identified grant Services Officer. tourism recipients and monitored Monitor achievement Monitor increase / decrease in guest nights for Buller Tourism West Coast report a decrease in guest nights of 5.1% for of strategic tourism the year ended June 2011 (commercial accommodation monitor) objectives (2010: 1.5%) . The South Island experienced a decline in guest nights of 9% which can mainly be attributed to the Canterbury earthquakes, global
recession and high exchange rates (2010: national increase of 7%) community services community Monthly reports from Visitor Strategy Officer Consultation has been undertaken with the Governance Group on specific projects. Where required presentations and reports to Council have been provided to discuss and progress projects (2010: no change) Completion of Cultural Completion of project Detailed design completed but further work on the project has Hub Project been suspended until clarity regarding external fundraising has been obtained. Visitor satisfaction Establish Memorandum of Understanding and/or level A Governance model has been agreed upon by Council outlining the of service agreements with I-Site and Museum once proposed structure of the new I-Site and Coaltown. construction completed and businesses are operational. Establishment of Memorandum of Understanding delayed due to Cultural Hub project being suspended.
48 Buller District Council • Annual Report year ending 30 June 2011 Objective Measures Target Actual To provide Community Services and Facilities: services and facilities Quality of sport and Establishment of Memorandum of Understanding and agreed Service level agreement finalised between Buller District Council that meet recreation service levels of service for operation and management of the Solid and Buller Recreation Limited. Statements of Intent are submitted information, provision via the Solid Energy Centre (including all aquatic and dry-sport provision) and approved by Council. Quarterly reports are submitted to learning, Energy Centre and the Reefton pool (providing seasonal aquatic services). Council. recreational Agreed levels of service are likely to include attendance, Monitoring of these done in the half yearly reports submitted by and cultural satisfaction, maintenance of ACC Pool Safe quality Buller Holdings to Council. needs Management accreditation for the Solid Energy Centre (which includes independent quality assessment of pool Performance to the targets in the Statement of Intent reports as management and operation to industry standards) and reflected on page 102. working towards ACC Pool Safe Quality Management accreditation for the Reefton Pool as the Reefton pool will be managed by the Solid Energy Centre, the measures relative to the Reefton Pool will be included in the Memorandum of Understanding for the Solid Energy Centre. Measures will be agreed and refined once the Memorandum of Understanding has been developed. Number of performing Number of cinema screenings per week - 21 45 per week (2010: KPI’s not yet set for NBS Theatre) arts events, exhibitions (dependent on film titles and time of the year) and shows per year Occupancy of cinema - 35% per month 21.30% occupancy per month
The occupancy is lower than expected due to a variety of external factors which are beyond the control of the Theatre Manager - the services community Rialto cinema shows received low attendance Number of shows/performances - 30 days per year 37 days per year Occupancy per show - 50% 25.39% occupancy per show. Occupancy is lower than planned due (full Theatre not always required for smaller shows) to factors which are beyond the control of the Theatre Manager 90.00% occupancy for local shows Room hire - 4.0 hours per week 4.2 hours per week Satisfaction with Library 80 - 95% range 88.7% according to independent residents survey (Research First) services for the Buller District Council (2010: 95%) Libraries achieved highest rated satisfaction and a mean score of 4.35 on a five-point scale for Council services. Residents opinions reflected a well-accepted service facility but expressed desire to expand in terms of updated and diversified collections and extended opening hours. Number of active Maintain or increase Active Members 3,145 - increased by 8% (2010: 2,913) members of libraries Number of items Issues maintained or increased 77,769 items borrowed increased by 3.6% (Target 72,000) (2010: borrowed 75,097). Number of physical Increase annually until we are meeting the LIANZA standard 2,796 items added (2010: 2,605). LIANZA standards would require items added to the a minimum holding of 35,957 items. Library collection per year Current items held total 31,082 (92%)
Buller District Council • Annual Report year ending 30 June 2011 49 Explanation of signifi cant operating variances Targetted Rates: Area maintenance targetted rate ($41,000) was incorrectly classifi ed in the budget under Higher than budgeted power costs for the Solid Energy Centre Community Services. This rate is refl ected under Roading. A reduction in the Promotion and Development targetted ($207,000) were offset by the unbudgeted contribution of rate accounted for a variance of $26,000. $117,000.
Fees and Sundry: The increase in fees and sundry has been infl ated with an unbudgeted power contribution from Buller Recreation which is used to offset power costs paid by Council ($117,000) for the Solid Energy Centre. Signifi cant capital expenditure During the fi nancial year $284,000 has been spent on the Cultural Hub Project to fi nalise the purchase of land Financial Assistance: An application for funding for the Cultural Hub project has been made to the Lotteries and buildings, and to formulate the design documents Commission: Environment and Heritage Fund. Council will only be advised of the outcome of this application in so that detailed estimates could be compiled. November 2011. Limited fundraising was undertaken for Vision 2010 projects in Seddon, Inangahua and for Westport Streetscape ($893,000). The total expenditure to-date of $873,000 has been carried forward to 2011/2012 as work in progress. Depreciation and Amoritisation: This is higher due to depreciation associated with the fi tout of the NBS Performing Arts Centre ($61,000) being higher than envisaged. Unbudgeted capital expenditure on Domain Boards totalled $46,000. Finance Costs: Lower than budgeted fi nance costs are attributable to lower interest rates ($96,000). Lower interest costs were also incurred on the Vision 2010 projects ($41,000) in Inangahua, Seddon and Urban Streetscape, due to
the delay in completion of Vision 2010 projects. Other capital expenditure included the following: community services community No interest has been incurred on the Cultural Hub project, resulting in a saving of $48,000. • Promotion and Development initiatives ($38,000) • Refurbishment of the library ($16,000) and library Other Expenses: Unbudgeted grant expenditure of $217,000 was provided for Vision 2010 projects towards the books ($39,000, Westport; $16,000, Reefton) refurbishment of community projects that were not able to be capitalised by the Buller District Council (Inangahua Projects: $71,000 and Seddon Projects $146,000). • Replacement of the boiler for the Reefton pool ($50,000) and painting of the Reefton pool ($18,000) This fi nancial year was the fi rst representative year of operation for the NBS Theatre and expenditure levels were • Theatre upgrades ($12,000) higher than predicted ($124,000). • Reefton gym equipment and community centre fi t-out ($71,000)
Explanation of signifi cant capital expenditure variances Further work on the Cultural Hub has been suspended until clarity has been obtained on the external contributions and fundraising. This resulted in under expenditure to the 2010/2011 budget of $1.0 million.
There is work in progress of $873,000 and the remainder of the budget has been carried forward to 2011/2012. (the Naval vessel “Hawea” at the Westport Harbour) 50 Buller District Council • Annual Report year ending 30 June 2011 2010/2011 2010/2011 2009/2010 COMMUNITY SERVICES Actual Budget Actual $(000) $(000) $(000)
OPERATING REVENUE Targeted Rates 227 294 225 Fees and Sundry 524 401 335 Financial Assistance 712 1,605 2,161 Internal Recoveries 5 21 (0)
TOTAL Revenue $1,468 $2,321 $2,721 community services community OPERATING EXPENDITURE Employee Benefit Expenses 640 630 535 Depreciation and Amortisation 189 107 121 Finance Costs 1,147 1,332 933 Other Expenses 2,561 2,199 2,106 $4,537 $4,268 $3,695 Less: Internal Interest (24) TOTAL Expenditure $4,513 $4,268 $3,695
NET Cost/(Surplus) of Services $3,045 $1,947 $974
Capital Expenditure - Renewals 602 127 165 Capital Expenditure - Increases in Levels of 0 1,639 2,603 Service
TOTAL CAPITAL EXPENDITURE $602 $1,766 $2,768
Buller District Council • Annual Report year ending 30 June 2011 51 puppies)
cers Issac Taylor and Tracy Judd with two abandoned Tracy and Taylor cers Issac
Offi
(BDC Animal Control environmental services What do we do?
Plans, Policies and Guidance Documents The Council provides a range of tools to guide the public in complying with rules, regulations and best practices. These range from regulatory tools such as the District Plan and Bylaws through to guidance tools such as policies and brochures.
Compliance Management How do we contribute to strategic Council manages the licensing and inspection of food and liquor premises, inspects activities carried out under consents and manages the impact of nuisances through goals & community outcomes? investigation, remediation and the use of regulatory tools where necessary. Community Outcomes How the Council Contributes Health Through the administration of legislative Provision of Consents frameworks we ensure that appropriate standards Council provides consents for activities to be carried out in accordance with of food safety and responsible provision of liquor occurs within licensed premises. regulatory requirements such as building, land use and subdivision consents. Addressing adverse effects of animals and social Council also issues Land and Project Information Memoranda (LIM’s and PIM’s) and behaviour when they occur. ensures that appropriate certifi cation is achieved for buildings in use by way of Safety Building services ensure the ongoing safety of Code Compliance Certifi cates and Building Warrants of Fitness. structures within the district. Investigation and management of non-compliance with regulations and district rules where these
have the potential to create hazard or danger to environmentalservices the public. Why do we do it? Environment Applying the provisions of the District Plan and the Resource Management Act to minimise The Council plays a vital role in ensuring standards are met that result adverse effects of land use and subdivision of in a high quality of life for residents and visitors in our district. land. Working with other agencies to ensure regional plans and national policies are upheld in resource This is achieved by administration of statutory regulations for building, resource use for the sustainable management of our environment. management, licensing of premises and the keeping of dogs and livestock. The outcome of effective delivery of Environmental Services is a district where resource Economy Consideration of economic and productive use of utilisation and standards of living are appropriate for the community long term resources in planning decisions for the long term protection of the value to our community. needs. Working with licensed operators to maintain high standards of service delivery and host responsibility. Identity Ensuring the District Plan and Policies of Council are developed to protect those unique aspects of Buller lifestyles.
Buller District Council • Annual Report year ending 30 June 2011 53 How the Council performed
Liquor Licensing District Plan Review 171 liquor licences / Managers Certifi cate applications have been processed. The District Plan Review is an ongoing project looking at the effi ciency and effectiveness of the Buller District Plan (BDP). The Buller District Licensing Agency Liquor Policy is to be reviewed and publicly adopted after the second reading of the proposed Liquor Reform Act. It aims to ensure that the BDP remains relevant and meets the needs of our community in relation to the use of natural and physical resources, as well The Liquor Licensing Inspector took a positive lead in attempting to educate the as meeting our responsibilities under the Resource Management Act 1991 community and licence holders of their obligations under the Sale of Liquor Act. (RMA). Under the RMA, Council must review every provision of the BDP at least once every 10 years and initiate a ‘plan change process’ in relation to each, whether or not Council proposes to amend the provision. This process Freedom Camping Bylaw provides an opportunity for the community to have input into the BDP. A Freedom Camping Bylaw was adopted and came into force on 02 May 2011. Council made its decision on the fi rst set of BDP changes to come out of the review, Plan Changes 115-121, on 28 July 2011. Council’s Hearings Committee Under the bylaw, Freedom Camping is allowed in Buller for self contained vehicles made its decision on the second set of BDP changes to come out of the review, certifi ed against NZS5465:2001 for up to three days per calendar month in any single Plan Changes 122-132, on 28 July 2011. It is anticipated that the BDP will be location, provided you do not camp: reprinted in late 2011 to incorporate Council’s decisions on these changes.
• within 500m of a registered Campground The Buller district has changed signifi cantly since the BDP became operative • at any of the prohibited areas in 2000. We are using the opportunity of the District Plan Review to update the BDP to take into account where the district is now and how
• at any area where No Camping Signs are displayed the community would like to see it develop over the next 10 years. environmentalservices
Building Resource Management The Buller District Council is currently accredited to operate as a Building The Planning department has had a busy year with some complex Consent Authority. Two-yearly statutory audits by International Accreditation resource consents in the mining sector, with high profi le consents New Zealand (IANZ) is due in 2011. such as the Buller Coal Holdings application at Denniston and changes to the Globe Hill/Oceana Gold consent in Reefton. An internal audit of all building processes has been carried out over the past 12 months. These audit fi ndings have resulted in streamlining of many of the existing processes which will create smaller, more streamlined and user friendly documents for use by staff. The Planning department has also been heavily involved in progressing Previous assessments by IANZ have shown that Council is a leading Building Consent the resolution of appeals made in relation to the HDL and Solid Authority (BCA) with regard to policies and procedures, and the way it operates. Energy hydro power schemes and the Meridian/Mokihinui hydro power scheme through the Environment Court appeal process.
54 Buller District Council • Annual Report year ending 30 June 2011 Key performance indicators
How we do it What we measured Target Actual To maintain quality Carry out investigations into non-compliance Simple investigations to be carried out within Achieved 161 simple investigations within 10 of life through and nuisance / activities in acceptable 10 working days days 96% (2010: 142 investigations with 100% ensuring compliance timeframes More complex investigations to be undertaken within timeframe) with building within 40 working days and development regulations 5 remain under investigation, awaiting court action (2010: nil)
21 complex investigations undertaken within 40 days 13.04% (2010: nil) Building inspections carried out within 24 hours Achievement of this level of services in the 90- Achieved 100% (2010: 100%) for urban and 48 hours for rural areas 100% range 1,327 inspections have been recorded. Building inspections are scheduled and carried out in accordance with bookings made Building consents and LIM’s issued within Target 100% 465 Building Consents issued 98.5% (2010: statutory timeframes 10 working days for LIM’s 99%) completed within the statutory 20 and 20 working days for Building Consents working day timeframe Buller contributed to the response teams that assisted with the Christchurch earthquakes in both September 2010 and February 2011. Building inspectors spent a week on a rotational basis. This impacted on service
delivery environmentalservices 217 LIM’s issued 98% completed within the 10 working day timeframe, with an average of 4 days processing time (2010: 208 issued with 99% completed within timeframe) Audit compliance schedules 10% sample No sampling undertaken. Not currently a requirement under the Building Act
Meet earthquake policy objectives Category A and B buildings assessed and noticed This policy was revised and a new policy served by 30 June 2010. approved by Council 16 December 2009. Category C and D buildings assessed and notices Buildings will be identified when a consent served by 30 June 2011 application is received, change of use occurs or complaint received Given the recent earthquakes in Christchurch, Council expects that Department of Building and Housing will impose stricter standards Process non-notified resource consents within Target 100% 100% achieved within statutory timeframes 20 days (2010: 83%) Ensure quality assurance requirements for Completed by 31 December 2009 Accreditation granted. Audit to be building consent authorities are met as required Continued compliance with accreditation undertaken in 2011/2012 financial year by Regulation 17 of Building Consent Authorities requirements Regulation 2006
Buller District Council • Annual Report year ending 30 June 2011 55 How we do it What we measured Target Actual
To maintain quality Inspect all food premises Target 100% 100%, 90 food premises inspected (2010: of life through 100%, 97 premises) ensuring the health and safety of No significant findings. licenced activities These premises met the standards set by the Food Hygiene Regulations 1974.
To maintain Investigate all animal related complaints Target 100% 100% 499 complaints investigated (2010: 100%, quality of life 653 complaints investigated) through ensuring the effects of dogs This is measured by the use of the service and livestock are request system and all complaints are loaded minimised through this system.
Continued education for animal owners is required.
To address non- Respond to 90% of all noise complaints within 30 Target 90% Achieved 95% - 340 complaints received with compliance or minutes 323 being responded to within 30 minutes nuisance activities (2010: 95%, 285 complaints received, 272 in ways that uphold responded within 30 minutes) the community outcomes
Maintain quality Plan changes processes initiated per calendar Initiate at least one ‘plan change process’ Plan changes 115-121 initiated in the 2010 of life in Buller year as part of the District Plan Review. per calendar year as part of the District Plan calendar year. environmentalservices and ensure that review. future planning Each process can involve consideration of a Plan changes 122-132 initiated in the 2011 rules reflect number of provisions of the Buller District Plan. calendar year. community needs and legislative requirements
56 Buller District Council • Annual Report year ending 30 June 2011 emergency management What do we do? How the council performed
Civil Defence Preparedness: Civil Defence: The Council recruits and trains volunteers to ensure that in the event of a disaster a work Council upgraded the Civil Defence operational room and we continue force can be maintained to deliver services to residents in need. The Council works with to focus on being prepared and ready in the event of a disaster. regional and Government representatives to develop plans and processes. Council continues to work with a range of agencies to ensure that normal support for local communities continues in Rural Fire Control: the event of an emergency. This includes recruiting and Council participates in the West Coast Rural Fire Committee to manage the fi re district. This training volunteers to ensure that in the event of a disaster a involves issuing of fi re permits, training and maintenance of volunteer fi re forces and the workforce can be maintained to deliver services to residents maintenance of a comprehensive fi re plan. in need. Council also works with Regional and Government representatives to develop plans and processes. New volunteers are continually being recruited and new training programmes are being developed with NZQA. Earthquakes and fl ood related events still remain as the risks most likely to occur here on the West Coast. These are the areas where we will continue to assess and improve our readiness and response. The Seddonville Fire Station is to be relocated to higher ground, as equipment was damaged With assistance from the Ministry of Civil Defence we now have after the fl ood in December 2010. advanced satellite communications incorporating phone and internet capabilities. Readnet is the Council’s preferred emergency Community Outcomes How the Council Contributes management system and as such is made available at no charge to all businesses and organisations throughout the district. We have Health Emergency management is a key function in ensuring that injury to people is minimised in the event of natural and will continue to promote this system throughout the region. disasters. With the earthquakes that struck Canterbury in February,
Safety The safety of people and their property is the paramount the West Coast Council’s formed a co-ordinated response management emergency concern of emergency management plans and processes. team. Buller District Council staff were provided on a roster basis as required to provide assistance.
A post Christchurch earthquake meeting with key stakeholders was held to ensure readiness in the event of a natural disaster
Rural Fire: The Council retains its strong position with the West Coast Rural Fire Committee.
This involves the issuing of fi re permits, training and maintenance of volunteer fi re forces and maintenance of a comprehensive fi re plan.
Buller District Council • Annual Report year ending 30 June 2011 57 Key performance indicators
How we do it What we measured Target Actual
To establish an Maintain three teams of trained 30 trained volunteers (3 teams) Achieved Karamea, Westport and Reefton teams in place. effective level of volunteers 160 volunteers and staff trained in various roles (2010: 60 preparedness for Civil volunteers) Defence disasters Run exercises to test effectiveness On-going regional exercises scheduled and completed Develop Civil Defence, Information On-going review of the Emergency Operations Review completed. Improved emergency power, additional Communication Technology and Centre phone line and internet connection has been installed. Recovery Plans The Community Response Plan has been updated and Buller Civil Defence plans have been reviewed and aligned with the group plan. Review all plans against There is an on-going review of all plans against best best practice practice A meeting with key stakeholders was held in June 2011. A Memorandum of Understanding (MOU) is in place with Buller Electricity Ltd to ensure access to their generator in the event of an emergency To respond to and Annually review fire plan On-going review of fire plan Continual review of fire plan. control wildfires to protect property and Maintain trained Regular personnel and equipment audits carried New appliance purchase for Charleston Rural Fire Authority conservation values. volunteers, fire engines and out by Zone Controllers equipment Maintain restricted fire season and Provision of on-going training to all Rural On-going training to all rural firefighters and ensuring
fire education Firefighters equipment met compliance requirements. emergency management emergency
New Charleston Rural Fire Engine (left)
From left Charleston Fire Chief (Anthony Nelson), Chair of NZ Fire Service Commission (Dame Margaret Bazley), Buller District Mayor (Pat McManus) and Principal Rural Fire Offi cer, West Coast Rural Fire Authority (Mark Boere)
58 Buller District Council • Annual Report year ending 30 June 2011 explanation of signifi cant operating variances No signifi cant variances noted. signifi cant capital expenditure 2010/2011 2010/2011 2009/2010 In May 2011 a new fi re truck was also purchased for the Actual Budget Actual Charleston Rural Fire force. The total cost to Council for ENVIRONMENTAL SERVICES this appliance is $52,000 with the truck having a predicted $(000) $(000) $(000) life of 25 years. A subsidy was received from the National Rural Fire Authority. OPERATING REVENUE Fees and Sundry 1,009 1,095 1,090 Financial Assistance 81 3 107 explanation of signifi cant Internal Recoveries 8 15 32 capital expenditure variances TOTAL Revenue $1,098 $1,113 $1,229 A new fi re appliance purchased at a total cost of $157,000. Total cost to Council was $52,000 with a subsidy received OPERATING EXPENDITURE from the National Rural Fire Association of $105,000. Employee Benefit Expenses 930 891 829 Depreciation and Amortisation 36 14 8
The purchase of the Fire Truck was brought forward environmentalservices from 2011/2012 to replace the 1979 Dodge which had Finance Costs 12 11 9 become uneconomic and expensive to maintain. Other Expenses 1,076 1,117 1,206 2,054 2,033 2,052 Less: Internal Interest (12) - (9) TOTAL Expenditure $2,042 $2,033 $2,043
NET Cost/(Surplus) of Services $944 $920 $814
Capital Expenditure - Renewals 0 0 0 Capital Expenditure - Increases in Levels of 157 0 159 Service
TOTAL CAPITAL EXPENDITURE $157 $0 $159
Buller District Council • Annual Report year ending 30 June 2011 59 Victoria Square, Westport) Victoria
(Band Rotunda, (Band Rotunda, amenities & reserves What do we do? How the council performed The Council provides and maintains active and passive recreational facilities in Council’s active and passive recreation areas were available to be the Buller District to meet community and environmental needs. These include used by ratepayers and sporting clubs throughout the year. There parks, reserves and sports facilities. As well as areas directly managed by Council were no days in which the facilities were closed for any purpose. a further 15 areas are administered by Council’s Reserves Committee. In 2010/2011 the Buller District Council invested $261,000 funds Public toilet facilities are provided by Council at Westport, Reefton and Waimangaroa. towards upgrading several playgrounds around Buller. Equipment Council assists in the provision of toilet facilities in Karamea, Granity, Carters will be upgraded to modern equipment that meets New Zealand Beach, Inangahua Junction, Springs Junction and Ikamatua. Playground Safety Standards. New safety matting was laid down in the Fonblanque Street and Victoria Square playgrounds in Westport, and at the King George playground in Reefton. These structural upgrades have been funded from the Reserves Contributions. Why do we do it The provision and maintenance of parks and reserves create a pleasant environment The Carters Beach Domain Board undertook extensive in which to live, work and play, which is an important part of the Vision for the fundraising and started the upgrade of the Carters district. The provision of public toilet facilities assists with promoting the health Beach playground in the 2011/2012 year. and well being of the district and environment. Jointly funding facilities with other agencies allows the public access to facilities at an acceptable cost. Work was completed on the exterior cleaning of the iconic Clock Tower Building in Westport. The building was cleaned and a protective coat was applied as part of the critical maintenance the building needs.
How we contribute to strategic goals & Reefton pensioner fl ats in Don Street and reserves & amenities on Broadway were refurbished. community outcomes This activity supports the following community outcomes: A deposit was paid for land for the Westport Cemetary, under a registered compensation certifi cate. The fi nalising of this land purchase will be undertaken in the 2011/2012 fi nancial year, Community Outcomes How the Council Contributes and capital costs have been carried forward to 2011/2012. Safety By ensuring our parks and reserves are healthy and safe. Critical maintenance was carried out at the Reefton Service Centre, Health By providing areas for people to engage in healthy WestReef Depot, at Victoria Square and at the Brougham Street activities. building. Environment By offering opportunities for people to contribute to projects that improve our district’s environment. Education By providing the opportunity to learn through social interaction and recreation. Economy By contributing to the district’s image and attracting businesses, skills and tourism. Identity By organising community events and providing people with opportunity to interact with different communities and by creating a unique image of the district.
Buller District Council • Annual Report year ending 30 June 2011 61 Key performance indicators How we do it What we measured Target Actual To provide parks and reserves Customer satisfaction with appearance of parks and 80% No complaints were received concerning the maintenance of that meets community and with range of recreation opportunities available in parks operation of any of the facilities. environmental needs % checks on contractors standard of maintenance on 95% Checks were undertaken on the maintenance contractor any active recreation area defects were notified to the contractor who then remediated (2010: 100%) % of households that have used or visited parks, 80% No survey undertaken reserves or gardens in the last 12 months
Weekly safety and maintenance inspections of 100% 100% (2010: 100%) playground equipment The contractor completed weekly safety checks on all play ground equipment. Survey to determine if sports fields meet the agreed 90% Currently the only sports field being used is Victoria standard as notified to Council by sporting codes Square which is used by Buller Rugby Union. This met their requirements. PGG Wrightsons have been engaged to provide advice on the annual turf management programme. % of occupancy of Elderly Persons Housing 90% From income records flats were vacant for 24 weeks (2010: 19 weeks) There is potential for the flats to be occupied for 2,288 weeks per annum. Therefore the occupancy rate was 98.8%
(2010: 99%) amenities & reserves & amenities % customer satisfaction on provision of elderly housing 80% A questionaire was sent to the occupiers of all 44 units. 34 or 75% were returned. Of those returned 91% were satisfied with their units (2010: 33 returned, 92% satisfied) Providing and managing cemeteries to provide for Continue to do the Cemeteries have been maintained and are available for community health same purpose. To have sufficient plots available in all wards to meet Verify cemetery Surveys show that cemeteries in Karamea, Mokihinui, current and future demands records to verify Westport and Reefton have capacity for the next five years. that availability is keeping up with demand
62 Buller District Council • Annual Report year ending 30 June 2011 Explanation of signifi cant Explanation of signifi cant capital operating variances expenditure variances No significant capital variances noted.
• Fees and Sundry: Additional fees and sundry income were attributable to unbudgeted Domain Board revenue of $425,000.
Grants totalling $8,000 were received by Carters Beach, Little Wanganui 2010/2011 2010/2011 2009/2010 and Ngakawau-Hector Domain Boards. AMENITIES & RESERVES Actual Budget Actual • Depreciation and Amortisation: Depreciation in reserves, housing for the elderly and other property increased more than budget due to $(000) $(000) $(000) property upgrades ($100,000). • Other Expenses: The increase in other expenses is mainly attributable OPERATING REVENUE to unbudgeted Domain Board expenses ($285,000). Council did not Fees and Sundry 1,243 870 1,149 approve the takeover of Les Warren Park and this resulted in savings on repairs, maintenance and outwork ($57,000). Minor overexpenditure Financial Assistance 0 0 112 on a variety of other expenses accounted for the remainder Internal Recoveries 290 290 282 TOTAL Revenue $1,533 $1,160 $1,543
Signifi cant capital expenditure OPERATING EXPENDITURE amenities & reserves & amenities Employee Benefit Expenses 6 0 6 • Upgrading of playgrounds within the Buller district was undertaken Depreciation and Amortisation 388 283 320 ($261,000); Finance Costs 56 44 37 • Painting of Don Street and exterior of the Reefton pensioner fl ats Other Expenses 2,042 1,799 1,902 ($44,000); 2,492 2,126 2,265 • The land purchase for the Westport and Karamea cemetary has been carried forward to the 2011/2012 year ($245,000); Less: Internal Interest (50) - (31) TOTAL Expenditure $2,442 $2,126 $2,234 • Upgrades to gardens within the Buller district ($34,000); • Unbudgeted replacement of Rotunda fl oor in Victoria Square ($11,000). Replacement of the fl oor was a safety issue; NET Cost/(Surplus) of Services $909 $966 $691 • Upgrades to public toilets ($35,000); • Re-tiling the shower bases at the Punakaiki Camping Ground and Capital Expenditure - Renewals 667 663 215 installation of powerpoints for 14 Campervans ($71,000); Capital Expenditure - Increases in 376 411 253 • Alterations to the Victoria Square grandstand and painting of the Levels of Service Victoria Square grandstand ($37,000); • Cleaning the exterior of the Clocktower Building ($77,000); and TOTAL CAPITAL EXPENDITURE $1,043 $1,074 $468 • Painting and upgrades to the Sue Thomson-Casey Memorial Library ($18,000).
Buller District Council • Annual Report year ending 30 June 2011 63
roading & urban development What we do? How we contribute to strategic goals Council provides the management of the district’s and community outcomes roading network so that people can have safe, easy This activity supports the following community outcomes. and comfortable access to homes and businesses. Community Outcomes How the Council Contributes This activity includes the professional and technical work Safety: By providing a safe roading system. involved in providing for the ongoing management of the district’s roading network. It provides for the operating, Economy: By providing everyone easy access to roading network and to minimise maintenance, renewal and improvements programmes. the viability of remote communities could be compromised. This includes the day to day operation and maintenance of footpaths and road pavement reconstruction/upgrades, Environment By helping reduce energy consumption in our community. traffi c signs, street lighting, bridge maintenance, urban design and various road safety activities. Council provides Education By providing education programmes. support for the continued operation of the Westport Taxi Service. How the council performed Council’s programme of maintenance and capital works were undertaken and completed to budget. There were some variances in the categories that together make up the maintenance and capital programmes. Why we do it? The work undertaken is needs based, and this will vary depending on road use and weather conditions.
Public ownership of the road corridor ensures Council continued to use in house professional services for contract administration and the design and property access and freedom of travel through the supervision of the majority of road construction and maintenance contracts. Consultant engineers were area for all citizens and supports the sustainability engaged for those projects where specialist knowledge or a degree of impartiality was required. of the community. Regular inspections of the roading network were undertaken by both Council staff and the maintenance contractor and from these inspections road maintenance Roads, footpaths and streetlights are provided for the safe programmes were developed to keep the network maintained and safe. travel of motor vehicles, bicycles and pedestrians. Major repairs of the Tidal Creek Bridge was completed. These repairs included the renewal
Management of the roading network provides vital economic of the deck and subdeck of the bridge and the installation of a new guardrail. development urban & roading links for the district. Council set a long term project for the upgrading of Derby Street from one end to the other, including Council supports the continued operation of the Westport Taxi replacing the underground services and reconstruction of the road. It is planned to upgrade the Service to ensure provision of transport for the disadvantaged street two blocks per annum to spread the costs over a period of time for the ratepayer. The and to provide an alternative to drink driving as a road safety renewals undertaken this fi nancial year included water main renewals, new water connections and measure. an upgrade of stormwater disposal - covering the blocks between Salisbury and Gladstone Streets.
Urban Design is undertaken to provide a more pleasant Upgrading of footpaths continue (1.7km of footpaths were refurbished). environment for our communities by use of plantings, street treatment and decorative measures.
Buller District Council • Annual Report year ending 30 June 2011 65 Key performance indicators How we do it What we measured Target Actual Provide a safe road Public Safety network Annual Road Safety Audit. Continue to audit 10% of the Road safety audit undertaken in urban Reefton and Westport. network. Work covered 57.25km which is 10% of the network (2010: 64.7km, 11%) The audit recommended that a number of the signs required replacement to improve the reflectivity. The audit also highlighted some areas where trees or plantings were obstructing the clear visability of signs. The replacement of these signs has been completed. Reducing trend in the number of fatal Reducing trend of fatal accidents Based on the crash analysis report produced by the New Zealand and injury accidents and accident and those causing injury. Transport Agency for the Buller district for 2010 show a downward contributing behaviour as measured by trend in minor accidents. statistics published by NZTA. Serious accidents show a slight increase compared with the previous year, but a downward trend over the last five years. Fatal accidents have remained fairly static at 2 per annum (2010: 1 fatality) Accident reports provided to Council are analysed to determine if any road factors contributed to the accidents. If there are road conditions or geometry that could have contributed to the accident then these are investigated for remedial work. Provide a System Usability comfortable road network Maintain current road roughness levels Average sealed road NASSRA Road roughness survey was not undertaken in 2010/2011 because of roughness less than 120, unsealed gear malfunction. Survey was completed in July/August 2011. roughness less than 200 Sealed road roughness 88.3 which meets the target of less than 120 (2010: no change) The roughness of a good sealed road is 70 NASSRA and for an unsealed road 170 NASSRA.
roading & urban development urban & roading Unsealed roughness not measured as this measurement is considered by the industry to not be of value. The roughness of an unsealed road changes constantly.
66 Buller District Council • Annual Report year ending 30 June 2011 How we do it What we measured Target Actual Provide useable Footpaths footpaths Undertake condition rating of footpaths. Underake rating of footpaths every Footpaths were rated according to condition on a scale of 1 to 5. two years. From these ratings the forward programme of remedial work for footpaths is determined. Rating undertaken in April 2011.` Design all new footpaths for New footpaths designed for Maintenance programme for footpaths are based on rating. 1.7km accessibility. wheelchair and pram usage. of footpaths were refurbished by reseal or slurry seals. This represents 2% of the footpath length. New footpath constructed in Wakefield Street Westport and the Strand Reefton were designed for wheelchair and pram use. Minimise the effects System Disruption of road works To attend to all slips and obstructions 80% compliance with the contracted The contractor responded to notification of all slips from call in a timely manner and undertake road response times centre logs within the response times required. works in accordance with national safety standards Road works checked against national Compliance checks were undertaken randomly at construction sites standards during site inspections to check compliance with the NZ Code of Practice for Temporary Traffic Management – Local Road Supplement Provide roads Environmental Impact with the minimum environmental To comply with resource consent No resource consents required for road maintenance or construction impact conditions 100% compliance during the financial year
Encourage higher Encourage higher usage of walking and Undertake survey to determine The baseline survey was to be undertaken in conjunction with usage of walking and cycling baseline the New Zealand Transport Agency and other West Coast Local cycling Authorities. The change to the Government Policy Statement and availability of
external funding resulted in the survey not being done. roading & urban development urban & roading
Buller District Council • Annual Report year ending 30 June 2011 67 Explanation of signifi cant operating variances • Depreciation in roading exceeded budget by $0.4m as the Annual Plan depreciation for pavement surface was based on a prior revaluation amount.
2010/2011 2010/2011 2009/2010 Signifi cant capital expenditure ROADING & URBAN Actual Budget Actual • Upgrade of Derby Street between Salisbury and Gladstone Streets in DEVELOPMENT $(000) $(000) $(000) Westport ($326,000). • Cyclical reseal contract ($416,000) OPERATING REVENUE • Drainage renewal ($120,000) Targeted Rates 39 41 38 Financial Assistance 2,914 2,895 2,878 • Replacement of the deck and installation of guardrail at Tidal Creek Bridge ($187,000) Petrol Tax 173 155 170 • Traffi c pavement marking and signs: Fees & Sundry 28 58 388 - local roads ($125,000) TOTAL Revenue $3,154 $3,149 $3,474 - special purpose roads ($54,000)
• Minor safety improvements ($231,000) OPERATING EXPENDITURE
• Footpath upgrades ($161,000) Employee Benefit Expenses 38 32 30 Depreciation and Amortisation 2,605 2,191 2,239 Finance Costs 0 0 1 Explanation of signifi cant capital Other Expenses 3,239 3,228 3,043 5,882 5,451 5,313 expenditure variances Less: Internal Interest 0 0 (1) • TThehe repairsrepairs requiredrequired forfor TTidalidal CCreekreek BBridgeridge wwereere mmoreore eextensivextensive thanthan TOTAL Expenditure $5,882 $5,451 $5,312 roading & urban development urban & roading ooriginallyriginally planned.planned. ThisThis becamebecame evidentevident whenwhen furtherfurther investigationsinvestigations wwereere undertakenundertaken inin determiningdetermining thethe scopescope ofof worksworks andand specifispecifi cations.cations. TThehe extraextra amountamount ofof remediationremediation requiredrequired resultedresulted inin a higherhigher thanthan NET Cost/(Surplus) of Services $2,728 $2,302 $1,838 eestimatedstimated cost.cost. TThehe overexpenditureoverexpenditure ofof TidalTidal CreekCreek BridgeBridge totalledtotalled $$87,000.87,000. Capital Expenditure - Renewals 1,741 1,776 2,298 • LLowerower thanthan budgetbudget expenditureexpenditure onon unsealedunsealed roadroad metalling,metalling, associatedassociated Capital Expenditure - Increases in Levels 0 216 0 iimprovementsmprovements andand sealedsealed roadroad surfacingsurfacing totalledtotalled $$255,000.255,000. HigherHigher of Service eexpenditurexpenditure onon unsealedunsealed roadroad metallingmetalling andand sealedsealed roadroad surfacingsurfacing hadhad ooccurredccurred iinn 22009/2010.009/2010. TOTAL CAPITAL EXPENDITURE $1,741 $1,992 $2,298
68 Buller District Council • Annual Report year ending 30 June 2011 water supplies What we do? How we contribute to strategic Council provides the management of the water supply to support the health and wellbeing of the community. Council is currently responsible for water supply goals & community outcomes services for a number of townships in the district including Little Wanganui, This activity supports the following community outcomes. Ngakawau-Hector, Waimangaroa, Westport, Cape Foulwind, Reefton, South Granity, Mokihinui, Inangahua Junction and Punakaiki. The Westport and Punakaiki supplies are potable with the remaining supplies not providing treated water. Water Community Outcomes How the Council Contributes conservation programmes are used to ensure the long term availability and quality Health: By providing a reticulated water supply to of the town water supply. support a healthy community
By providing water for sanitary services. Safety: By maintaining suffi cient water for fi re
Why we do it? fi ghting purposes. water supplies water Council intends to retain ownership of the water supply schemes for the following Environment: By conserving water and encouraging others reasons: to do the same. Education: By providing water conservation education. Community Health – water is a necessity of life Economy: By meeting commercial water needs and Community Safety – the provision of fi re fi ghting capabilities meeting community needs at affordable costs and equal access to water. Community – the provision of reticulated water enables industrial Development and residential development Core Business – considered to be a core function of Local Government Exclusivity – the ability to exclude or disconnect properties from a water supply has economic and public health implications. Public ownership can prevent the water supply being controlled in an exclusive manner Monopoly Supply – the majority of properties have limited supply options Community Opinion – the general public does not favour the privatisation of water supply services Legislation – Section 130-135 of the Local Government Act 2002, places restrictions on the ability to divest or lose control over water supplies For these reasons the objective of retaining ownership of the water supplies is to keep Council in a position whereby it can exercise some control over the supply of water to communities within the district. The goal of ownership is to use that control wisely and in the best interests of the affected communities.
Buller District Council • Annual Report year ending 30 June 2011 69 None of the supplies complied with the Drinking Water Standards of New How the council performed Zealand 2005 (revised 2008) due to protozoa requirements. The Council has a Extensive work was carried out on the Westport Water Treatment Plant. choice as to the Drinking Water Standards that it wishes to be measured against until Council is required to meet the provisions of the Health Amendment New sand fi lters were installed into the fi lter tanks and the new backwash pump Act 2009. This Act requires Council to upgrade water supplies in the district and associated equipment have been installed and tested. progressively depending on the population served by the supplies.
The treatment water reservoir cleaning has been completed. Filter beds were also A reliable supply was provided in all areas with water restrictions being disinfected. imposed for Reefton, Waimangaroa and Ngakawau/Hector during the period. No total shutdowns of water supplies occurred and all planned shutdowns were advertised at least 24 hours prior to the event. Council approved two tenders that will allow for plans of upgrading the Reefton Water Supply to meet Ministry of Health Drinking Water Standards at the Council meeting on 27 April 2011. The Inangahua Junction water supply had a ‘no water’ situation for 17 hours because of a pump station problem. The Ministry of Health contributed 90% of the cost of this project, with funding water supplies water from the Drinking Water Assistance Programme and will cover $670,000 of the full project costs which are estimated to be $745,000. The upgrade to the supply is Long Term Solution for Westport Water occurring in two parts. The fi rst part is to line the reservoir and construct a roof Council clearly identifi ed this as its highest priority. The provision of consistent, over the existing water reservoir in Reefton. safe, potable water is a fundamental service for any local authority. The current supply has been in place since 1903. The treatment plant constructed The second part of the upgrade is to the treatment process and is currently in in 1985 is no longer able to meet the latest drinking water standards. Council progress. A water treatment plant will be constructed adjacent The Strand and will is committed to determine a long term solution that will meet the needs of the ensure that water delivered to the residents of Reefton complies with the Drinking Westport community for the next 50-100 years. Water Standards of New Zealand 2005 (revisited 2008). Water is fi ltered down to less than fi ve microns via a multimedia fi lter, and then further fi ltered to one micron A water sub-committee has been formed and will take a view of what is through cartridge fi lters. Final disinfection will then be completed by exposing the required for the next 50-100 years for the Westport Water Supply. The water to ultraviolet light to disinfect the water. Provision for chlorination is also to sub-committee will take into account future capacity for the next 50-100 be installed as a back up which can be used if there is a breakdown. years of growth, risks, condition and maintenance requirements of the tunnels, races and fl ues, trunk mains and reticulation in Carters Beach and This upgrade includes capping the existing well head to secure the water supply Westport, and other options to consider before upgrading is undertaken. against surface infi ltration and the provision of a back-up generator which is being undertaken outside of this tender process. It is anticipated that a report detailing the options and recommending a way forward will be presented to Council at the Novemer 2011 Council meeting.
70 Buller District Council • Annual Report year ending 30 June 2011 Key performance indicators How we do it What we measured Target Actual Provide an No potential for illness due to No confirmed E coli contamination. A total of 10 e-coli tests were recorded showing contamination. One at Punakaiki, one at adequate unwholesome water Westport and eight at Reefton (2010: seven tests). quality of water In total there were 169 individual samples taken from Westport, Carters Beach, Reefton Water Quality: and Punakaiki water supplies. E-coli or faecal coliforms come from the gut of warm blooded animals (possums, deer, goats and birds) (2010: 7 tests).
For the one transgression for the Westport supply and one transgression for the Punakaiki supply, all consecutive day tests (3) were clear of contamination. The remaining 8 transgressions for the Reefton supply resulted in Council initiating a permanent ‘boil water’ notice to consumers. This will remain in place until the Water Treatment Plant is completed in early 2012. Seven water supplies will comply with Drinking The Council programme in the Long Term Plan allows for all seven water supplies to be Water Standards 2005 (revised 2008). upgraded to meet the Drinking Water Standards in accordance with the Health Act. This will however only be achievable if Council receives financial assistance.
The Waimangaroa, Punakaiki and Reefton water supplies have funding approved and are programmed for 2011/2012. supplies water Provide an To be able to fill a ten litre bucket No more than ten recorded failures per annum No request for pressure tests (2010: one property did not meet the minimum flow) adequate three times within a minute. throughout the district quantity of water All fire hydrants to be operational. Waimangaroa and Granity Fire Brigades check All hydrants were operational Waimangaroa and Ngakawau/Hector supply Water Quantity - Westport Level of service 100% and Reefton Supplies Provide a To provide water into the system Water supplied 99% of the time. Water was supplied for 99.8% of the time (mains only) (2010: 99.7%) reliable supply virtually all of the time. of quality water Measurement of the availability to individual laterals not currently measured. To minimise disruption caused by Water unplanned shutdowns. There were six occasions when water was provided on low pressure because of repairs Reliability being undertaken on the 354mm trunk main. To permit gardens to be maintained in a healthy state all year. No more than three shutdowns per kilometre 0.95 leaks per km (2010: 0.75 leaks per km) One shutdown on Carters Beach supply (Westport Zone 2) for 30 minutes. Response to failures within two hours. All As service requests are received, Council assess the priority of the request and advises unplanned shutdowns less than four hours. the contractor accordingly. Contractors responded to these priorities 90% of the time (85%) No more than five days of water restrictions per 12 days of restrictions for Reefton (high usage pumps at capacity) year. 7 days of restrictions for Ngakawau/Hector (high usage low flows from creek)
8 days of restrictions for Waimangaroa (storm damage at intake)
17 hours of ‘no water’ at Inangahua Junction (problem at pump station and main highways closed with storm damage) Provide Environmental Impact water with the minimum To comply with resource consent 100% compliance 100% compliance (2010: 100%) environmental conditions as assessed by Regional impact Council consents Buller District Council • Annual Report year ending 30 June 2011 71 Explanation of signifi cant operating variances Reefton Water Supply • Financial Assistance: As the upgrades to meet the 2008 Drinking Water Reefton water is not at present treated. The upgrade to the supply Standards are still in progress, the claim against expenditure incurred for was tendered in two parts. The fi rst part was to line the reservoir Reefton has not occurred. The Ministry of Health is to contribute 90% of and construct a roof over the existing water reservoir in Reefton. the cost of the Project. This funding will come from the Drinking Water Assistance Programme and will cover $670,000 of the full project cost of $745,000. The upgrade to the Waimangaroa water supply was deferred to The second part involves the construction of a water treatment plant adjacent 2011/2012 and Council is awaiting approval of the upgrade to the Punakaiki to The Strand and will ensure that water is delivered to the residents of water supply. Total subsidy not yet claimed totals $1.2m. Reefton complies with the Drinking Water Standards of New Zealand. Water is to be fi ltered down to less than fi ve microns via a multimedia fi lter and then further fi ltered to one micron through cartridge fi lters. Final disinfection will then be completed by exposing the water to ultraviolet light, which • Other Expenses: Leak detection and repairs to an aging infrastructure inactivates any bugs left in the water. Provision for chlorination is also to resulted in an increase in the number of leaks identifi ed and repaired. be installed as a back up which can be used if there is a breakdown. This resulted in an overrun on repairs, maintenance and outwork totalling
water supplies water $215,000. As work in the tunnels took longer to complete than envisaged, The Reefton upgrade is still in progress and the budget will be carried forward additional power costs were incurred in Westport ($25,000). Reefton power to 2011/2012 fi nancial year. Work in progress to date totalled $271,000. costs were higher than budget ($10,000). Insurance costs exceeded budget by $16,000. Minor overexpenditure accounted for the remainder. Minor capital works were carried out on the Reefton water supply totalling $46,000.
Signifi cant capital expenditure Rural Drinking Water Scheme upgrades totalling $16,000 were carried out to Little In August 2010 initial upgrades to the Westport Water Treatment Plant was completed. Wanganui, Ngakawau, Hector, Waimangaroa A major upgrade of the two fi lter tanks was undertaken. This involved draining the and Cape Foulwind water supplies. two fi lter tanks of all sand and gravel fi lter material. New sand was installed into the new fi lter tanks, a new backwash pump and associated equipment were installed. The fi lter beds were disinfected. The end result of all the upgrades is that Westport water is now fi ltered to a higher standard. The total cost of these upgrades totalled Explanation of $115,000. signifi cant capital In addition $92,000 was incurred in investigation of the long term solution for the Westport Water Supply. This involved a review of the current water supply, expenditure variances undertaking leak detection. Investigation work is currently being undertaken to • The upgrades to meet Drinking Water determine the detailed costings for the various options. A report will be submitted Standards for Westport and Reefton to Council in November 2011 detailing the various options and costs. are in progress and the budget will be carried forward to 2011/2012 fi nancial Trunk main renewals and minor capital works were also carried out totalling year. $391,000, • The upgrades planned for Waimangaroa Work in progress for upgrading the Water water supply totalled $87,000. and Punakaiki have not commenced ($653,000 - Waimangaroa; $300,000 - Punakaiki).
72 Buller District Council • Annual Report year ending 30 June 2011 2010/2011 2010/2011 2009/2010 WATER SUPPLIES Actual Budget Actual $(000) $(000) $(000)
OPERATING REVENUE Targeted Rates 1,353 1,359 1,267 Fees and Sundry 215 215 218
Financial Assistance 0 1,174 0 water supplies water TOTAL Revenue $1,568 $2,748 $1,485
OPERATING EXPENDITURE Employee Benefit Expenses 0 0 0 Depreciation and Amortisation 525 578 538 Finance Costs 153 142 131 Other Expenses 1,173 815 1,054 1,851 1,535 1,723 Less: Internal Interest (126) 0 (130) TOTAL Expenditure $1,725 $1,535 $1,593
NET Cost/(Surplus) of Services $157 $(1,213) $108
Capital Expenditure - Renewals 539 534 345 Capital Expenditure - Increases in Levels 568 3,134 465 of Service
TOTAL CAPITAL EXPENDITURE $1,107 $3,668 $810
Buller District Council • Annual Report year ending 30 June 2011 73 Water supplies
Estimated Water Current Standard Target Standard Upgrade Required Cost Supply ($000’s) Westport Ungraded Satisfactory, low level of risk for source, treatment and Existing treatment with $4,730 distribution the addition of ultra violet (Bb) disinfection Punakaiki Unsatisfactory, high level of risk at source, treatment Marginally satisfactory, moderate level of risk for source, Covered storage, fi ltration and $230 and distribution treatment. Satisfactory, low level of risk for distribution disinfection Awaiting approval of application by MOH (Ed) (Cc) Reefton Unsatisfactory level of risk for source and treatment. Marginally satisfactory, moderate level of risk for source, Cover reservoir and $745
Unacceptable level of risk for distribution treatment and distribution disinfection water supplies water (Ee) (Cc) Waimangaroa Upgraded Marginally satisfactory, moderate level of risk for source, Covered storage, fi ltration and $245 treatment and distribution disinfection Upgrade in 2011/2012 (Cc) Ngakawau/ Upgraded Marginally satisfactory, moderate level of risk for source, Covered storage, fi ltration and $260 Hector treatment. Satisfactory, low level of risk for distribution disinfection Upgrade in 2011/2012 (Cc) Inangahua Upgraded Marginally satisfactory, moderate level of risk for source, Disinfection and fi ltration $74 Junction treatment and distribution Upgrade deferred to 2012/2013 (Cc) Mokihinui Upgraded Marginally satisfactory, moderate level of risk for source, Covered storage, fi ltration and $180 treatment and distribution disinfection Upgrade deferred to 2012/2013 (Cc) Little Upgraded Marginally satisfactory, moderate level of risk for source, Covered storage, fi ltration and $70 Wanganui treatment and distribution disinfection Upgrade deferred to 2012/2013 (Cc) South Granity Upgraded Marginally satisfactory, moderate level of risk for source, Covered storage, fi ltration and Cost to be treatment and distribution disinfection determined Upgrade deferred to 2012/2013 (Cc)
Compliance with these Drinking Water Standards will only be achievable if Council receives the budgeted fi nancial assistance.
74 Buller District Council • Annual Report year ending 30 June 2011 solid waste What do we do? How we contribute to strategic The Council encourages waste reduction, refuse and recycling, to support the goals & community outcomes health of the community and environment and to encourage the sustainable This activity supports the following community outcomes: use of our natural resources. Council manages contracts for the collection of solid waste. It also operates landfi lls/resource recovery parks at Karamea, Reefton, Maruia and Westport. Council closed the Westport landfi ll as indicated Community Outcomes How the Council Contributes in previous Long Term Community Plan and established a refuse collection and Health: By the collection and disposal of refuse recycling collection system for transporting of refuse. Safety: By collecting and disposing of refuse in a safe, efficient and sustainable manner that maintains district natural and aesthetic values waste solid The solid waste disposal minimises risk of waste Why do we do it? being inappropriately or dangerously disposed of Environment: By providing safe collection and disposal of refuse Solid waste management is necessary for the health and quality of life for by encouraging waste minimisation the community. It supports local development and assists in maintaining a Education: Provide programmes to schools and the community quality environment. Council promotes recycling and waste reduction to on waste care and reduction better support these goals. The Council provides programmes to encourage Economy: By meeting commercial needs for dealing with reusing and recycling and to motivate behaviour change. The Council provides waste kerbside recycling, greenwaste, composting and recycling drop off facilities at refuse stations, and Council wishes to promote recycling and waste reduction to better support these goals.
How the Council performed • All of the Council operating and closed landfi lls were monitored during the year and a report was prepared for the West Coast Regional Council on the results of this monitoring. • Refuse and recycling was collected weekly from all properties within the collection area. • Residual refuse was transferred to the Nelson tip for disposal. Council carted 3,079 tonnes of refuse to Nelson which is less than the 5,000 tonnes forecasted when the service started. • Construction of a shed which is used to store recyclables was completed at the Westport Transfer Station.
Buller District Council • Annual Report year ending 30 June 2011 75 Key performance indicators What we did What we measured Target Actual
To encourage waste minimisation and Monitoring of Council’s solid Continue to monitor and provide All sites monitored and reports provided to West recycling to support the health of the waste facilities reports to West Coast Regional Coast Regional Council in accordance with resource community and the environment and Council consents to encourage sustainable use of our natural resources Results to date do not require any remedial work To provide a safe and environmentally sound solid waste collection, treatment and disposal service Total amount of waste (tonnes) Reduce by 5% per annum Reduction over last 12 months less than 1%
sent to landfill per year solid waste solid
Publication of information and Four articles Five articles were distributed (2010: five articles) articles for community members
Provide programmes to schools Every school in the district The programme to schools was previously undertaken on waste care, refuse and by the Waste Minimisation Pfficer whose position recycling was funded through the Ministry for the Environment and the other West Coast Councils. This position was disestablished at the end of 2009. Council now contributes to the Enviroschools Programme who delivers to schools that are prepared to take part in the programme. This programme was also stopped, however it is due to recommence in 2011/2012. Council staff carried out two school visits and held a public forum at Karamea.
76 Buller District Council • Annual Report year ending 30 June 2011 Explanation of signifi cant operating variances • Fees and Sundry: Landfi ll income was less than estimated due to lower quantity of refuse disposed at the transfer stations in Westport, Reefton and Karamea ($114,000). Residents in Karamea have taken an increased interest in recycling, which has reduced the amount 2010/2011 2010/2011 2009/2010
landfi lled. SOLID WASTE Actual Budget Actual solid waste solid • Other Expenses: Repairs and maintenance for the operation transfer $(000) $(000) $(000) station exceeded budget ($159,000). Planned savings/effi ciencies assumed in the Annual Plan did not meet eventuate. OPERATING REVENUE The estimate was insuffi cient to allow for the transfer station to Targeted Rates 642 635 614 remain open for the required time. The cost of running the transfer Fees and Sundry 600 713 532 station has reduced signifi cantly from 2008/2009. Financial Assistance 0 0 6 TOTAL Revenue $1,242 $1,348 $1,152 Signifi cant capital expenditure OPERATING EXPENDITURE • A shed was built at the Westport Transfer Station to house recyclables Employee Benefit Expenses 0 0 0 ($245,000) Depreciation and Amortisation 79 90 77 • Installation of new weighbridges in Reefton and Westport ($195,000) Finance Costs 155 191 330 Other Expenses 1,799 1,639 1,883 Explanation of signifi cant capital $2,033 $1,920 $2,290 Less: Internal Interest (72) 0 (52) expenditure variances TOTAL Expenditure $1,961 $1,920 $2,238 • No further re-development on the landfi ll has occurred. Council is now in the process of applying for a designation over the site. Capital NET Cost/(Surplus) of Services $719 $572 $1,086 for 2010/2011 will be carried forward until such time as Council have made a decision regarding whether the construction of a landfi ll is cost justifi ed ($317,000). Capital Expenditure - Renewals 390 5 618 • The installation of the weighbridges in Reefton and Westport were Capital Expenditure - Increases in Levels 03170 unbudgeted but costs will be recovered via the Waste Minimisation of Service Levy over a period of time. TOTAL CAPITAL EXPENDITURE $390 $322 $618
Buller District Council • Annual Report year ending 30 June 2011 77
wastewater What do we do How we contribute to strategic Council provides these activities to support the health and wellbeing of the community and goals and community outcomes the environment. Currently Council provides for the continuous collection and transportation of the wastewater from residential and commercial properties of the township of Westport, This activity supports the following community outcomes. Little Wanganui and Reefton through underground piping infrastructure and treatment facilities. The rest of the district is serviced by on site disposal system that property owners are responsible for the maintenance of. Council is investigating areas where septic tank Community Outcomes How the Council contributes systems can be upgraded, whether by including these into the reticulated system or assisting with subsidy applications for communities to upgrade areas of concern to mitigate potential Safety By providing a sanitary wastewater collection environmental risks. and treatment service Environment By protecting the environment through the wastewater wastewater treatment Health: By providing a sanitary wastewater collection Why do we do it and treatment service Council intends to retain ownership of the sewer systems for the following reasons: Education By providing water conservation programmes
Economy By meeting commercial wastewater needs and Public Benefi t: The service is deemed to provide a public benefi t. meeting community needs at affordable costs
Core Business: The provision of wastewater services is considered to be a core function. Exclusivity: The ability to exclude or disconnect properties from How the council performed the sewer reticulation had economic and public health Monitoring and reporting of the wastewater treatment plants has implications. Public ownership can prevent the sewer been undertaken in accordance with the resource consents. system from being controlled in an exclusive manner. Monopoly Supply: The majority of properties have limited disposal The composting of biosolids from the wastewater treatment plant options. at Westport and green waste has continued with preliminary Community Opinion: Generally the public do not favour the privatisation of testing of the compost meeting health requirements. wastewater services. Stormwater that is disposed of in combination with wastewater For these reasons the objective of retaining ownership of the wastewater system is to use has resulted in some areas of Westport’s wastewater system not that control wisely and in the best interests of the affected communities. working effi ciently because of overload. This has resulted in residents being unable to use toilet facilities for periods when the system is overloaded. Council has requested modelling of the wastewater system to programme separation and also to provide solutions.
Confi rmation of the modelling is still in progress by the Consultant and capital expenditure is to be carried forward to 2011/2012.
Buller District Council • Annual Report year ending 30 June 2011 79 Key performance indicators What we did What we measured Target Actual Public Safety: Provide safe facilities for No accidents, injuries or public contact with Supplying reticulated sewer systems that No accidents recorded (2010: one injury at both the community and the SEWAGE support public health and operator safety. waste water treatment plant. operators Number of public health issues attributed to Maintain zero reports No reports (2010: nil) the wastewater system No intrusions or injuries Maintain zero reports No intrusions and no injuries arising from intrusions (2010: nil) System Capacity:
wastewater Provide adequate capacity Maintain capacity of existing combined No more than ten overflows throughout the 11 of the 16 sewerage overflows occurred on systems district. the Carters Beach rising main between Carters Beach and Westport (2010: 9 overflows). Design all new systems to nationally acceptable standards. These are unavoidable due to inferior pipe being installed in 1995. As the number of these vary year to year, it is a better option to repair a section of pipe, rather than replace 4km of rising main. No new systems constructed. System Reliability: Provide a reliable sewer system To accept sewage from properties virtually No more than one blockage per kilometre of Council has 54 km of sewerage mains and for all of the time pipeline the 2010/2011 year we had 21 blockages which equals 0.39 blockages per kilometer of pipe. This is less than the target level indicated (2010: 13 blockages, per 0.17km of pipeline). All blockages cleared within four hours Blockages were cleared in accordance with response times recorded on service requests. No more than 40 blockages in laterals Within the Westport/Carters Beach, Reefton and Little Wanganui Subdivision sewerage schemes there are over 3,000 property connections (laterals). Over all three sewerage schemes there were a total of 39 lateral blockages that required clearing. This is one less than the targeted level. (2010: 29 lateral blockages)
80 Buller District Council • Annual Report year ending 30 June 2011 What we did What we measured Target Actual Environmental Impact: Provide sewer To comply with 100% Reefton Waste Water Treatment Plant (WWTP): collection and disposal resource consent compliance with the minimum conditions Reefton WWTP consent requires scheduled monitoring 9 times per annum for a variety of analytes at various environmental impact locations. The Ponds are monitored for Dissolved Oxygen levels, odours, and a variety of potential visual anomalies. The effluent in the ponds discharge channel is monitored for various analytes including Biological Oxygen demand, Faecal Coliforms, Ecoli, and Total Suspended Solids. Receiving water quality is also undertaken downstream at the confluence of Cemetery Creek and the Inangahua River. Analytes include Visual clarity of the water, Biological Oxygen demand, Suspended Solids, Unionised Ammonia, Dissolved Oxygen, pH, Water Temperature, Faecal Coliforms, and Ecoli.
Additionally annual monitoring of the sediments in the discharge channel is required on an annual basis. Analytes for this include Arsenic, Cadmium, Chromium, Copper, Mercury, Nickel, Lead, Zinc, and Poly Aromatic Hydrocarbons wastewater Analytes that were in breach of the consent conditions were: • This happened last year as well, and appears to have no effect on the efficiency of the process. The cloudiness spontaneously corrected itself. • While not part of the consent effluent discharges were tested for the same heavy metals. This is in conjunction with the presence of metals detected in sediments upstream of the plant discharge tends to indicate that the source of the contaminants is not the waste water plant but is from another source located upstream of the plant. • One Ecoli and Faecal Coliform result at the Inangahua River confluence with cemetery creek breached the terms of the consent. The effluent quality leaving the treatment plant was tested at the same time as the Inangahua river tests. The excellent results of this discharge testing tended to indicate that additional contamination could be being added to the Cemetery Creek watercourse, by another source other than the treatment plant, at some point along the 600m length between the treatment plant and the Inangahua river
Conveyance Pump Stations: Large parts of Westports sewer network also double as its stormwater network. This leads to large quantities of rainwater entering the sewer system. Prior to the 2006 upgarde of Westports sewerage system this was not an issue. However the sewerage treatment upgrade required the construction of sewerage pumping stations at the sewer / stormwater outfalls, in order to transport the sewerage to the Alma road treatment plant. It was deemed to be uneconomic and impractical to size the pump stations and the treatment plant to treat this huge volume of additional stormwater. This was recognised in the Westport Waste Water Treatment Plant consent which allows for storm water induced overflows to occur at the 3 outfall sewer pump stations located at Pakington, Rintoul and Roebuck St outfalls. Stormwater induced overflows are monitored by testing the receiving water quality downstream of the pump station concerned, and recording the dates times and durations of these events. As well as monitoring water quality at two recreational (Marr’s and Shingle) beach locations downstream Breaches of this condition were noted as: • Pakington Street - 3 rain overflow transgressions for Ecoli / FC / Enterro • Roebuck Street - 6 rain overflow transgressions for Ecoli / FC / Enterro • Rintoul Street - 3 rain overflow transgressions for Ecoli / FC It is noted that as the pump stations are located prior to the treatment plant, that council can only monitor the upstream and downstream contaminant levels, and cannot alter the concentration or dilution or duration of the sewerage overflows to the river during these rain overflow events. Buller District Council • Annual Report year ending 30 June 2011 81 What we did What we measured Target Actual Environmental Impact: Provide sewer To comply with 100% Westport Waste Water Treatment Plant (WWTP): collection and disposal resource consent compliance with the minimum conditions The Westport Waste Water Treatment Plant consent requires monitoring of receiving waters in the Buller environmental impact river 9 times per annum. Analytes include Visual clarity of the water, Biological Oxygen demand, Suspended Solids, Unionised Ammonia, Dissolved Oxygen, pH, Water Temperature, Faecal Coliforms, and Ecoli. As well as observing whether any scums, discoloration or odours are present. The consent also requires monitoring of the effluent quality at the point where it leaves the treatment plant, 9 times per annum. Analytes for this include Biologival oxygen demand, Faecal coliforms, E.coli, Suspended solids, conductivity, effluent volume, Once per year the sediments in the Buller river are tested for levels of various contaminants, These analytes include Aluminium, Arsenic, Cadmium, Chromium, Copper, Mercury, Nickel, Lead, Zinc, Cyanide Phenol, and Total Hydrocarbons. wastewater Breaches of the consent were recorded as follows: • One smell complaint was received. This complaint was investigated but could not be substantiated. • Six discharge transgressions for Ecoli/Faecal Coliforms. Three of these transgressions were associated with an issue with a high sludge blanket in the clarifier, which spilled through to the UV. The sludge blanket incident resulted in a West Coast Regional Council written warning. All of the breaches were reported at the time to the West Coast Regional Council.
No complaints Zero One unsubstantiated smell complaint received (2010: no complaints received) regarding objectionable odour from the treatment plants
82 Buller District Council • Annual Report year ending 30 June 2011 stormwater What do we do? Stormwater management systems are an integrated set of procedures and physical assets designed to manage the surface runoff from urbanised catchments.
Council manages open drain stormwater systems in Hector, Ngakawau, Seddonville, Granity, Waimangaroa, Westport, Carters Beach and Reefton. In addition there is a piped stormwater system in Westport.
Sections of the Westport piped sewer system and all of the Reefton piped sewer stormwater system also convey stormwater.
In Punakaiki, the only public stormwater drain is maintained by NZTA as part of their roading network. In other townships, such as Mokihinui or Little Wanganui, there are no formal stormwater systems at all - stormwater simply soaks to ground How we contribute to strategic naturally. goals & community outcomes The most signifi cant outcome supported by the provision of stormwater systems is a healthy community. Uncontrolled stormwater runoff can be Why do we do it? destructive and represent an immediate risk to life. Over the longer term, Council provides stormwater systems to manage surface water runoff from stagnating pools of water can become a breeding ground for disease. urbanised catchments in a way that achieves a balance between the level of protection and the cost to the community. Council intends to retain ownership of Two other service outcomes supported by the stormwater systems are the stormwater systems. This continued ownership is justifi ed on the following prosperous and sustainable communities, through the minimisation grounds: of stormwater damage and the protection of the environment.
• Public Benefi t - the service is deemed to provide a public benefi t, through the protection of property How did we perform • Health and Safety - the provision of stormwater systems reduces the risk of Stormwater that is disposed of in the wastewater pipes have resulted in areas death or injury resulting from fl ooding or private property of Westport where wastewater systems could not be used during rainfall • Core Business - the provision of stormwater systems is considered to be a events. Modelling of the wastewater system will determine areas of the town core function of Local Government where additional stormwater separation will be required. During this year there have been more overfl ows compared with previous years. No residentIal • Exclusivity - the ability to exclude or disconnect properties from a stormwater collection system has economic and public health implications. houses were inundated. The overfl ows are because pipes are at full capacity Public ownership can prevent the stormwater system being controlled in an exclusive manner Reconstruction of Derby Street involving upgrades of the stormwater disposal began in March 2011. This upgrade is a long term project and Council has planned to • Monopoly Supply - the majority of properties have limited options upgrade underground services and reconstruct the road two blocks per annum to ensure that the costs are spread out over a period of time for the ratepayers.
Buller District Council • Annual Report year ending 30 June 2011 83 Key performance indicators
What we did What we measured Target Actual
Provide adequate Maintain capacity of existing systems Number of deficient designs found. One new main constructed designed for a stormwater capacity and have all new systems designed with 1 in ten year event (2010: one new main) a minimum 1 in 10 year event without ponding, and a 1 in 50 year event without inundation of dwellings No more than five houses inundated by No houses inundated with stormwater
stormwater flooding per annum (2010: nil) stormwater
Provide a reliable Maintain the stormwater system in a state 90% compliance with response times as 16 service requests of which 15 were stormwater system of readiness by identifying no more than stated in the service request completed on time 20 faults per annum during quarterly inspections 100% of service requests completed within response times (2010: 100%)
Regular inspections of stormwater system were undertaken. These will pick up loose or stuck manhole lids, buildup of silt and if floodgates are blocked by silt or debris repairs are undertaken to remediate.
Minimise disruption caused by obstructions Number of deficient designs found. There were eight blockages to the stormwater system that resulted in main clearance (2010: nine blockages)
These blockages did not result in any significant flooding.
Provide a stormwater system Compliance with Resource Consents 100% compliance. Currently no resource consents for with minimal environmental stormwater due to existing use. impact Stormwater system was in place prior to the Resource Management Act
84 Buller District Council • Annual Report year ending 30 June 2011 Explanation of signifi cant operating variances Other Expenses: Higher maintenance and outwork costs associated with the Westport Sewerage ($118,000) Ultra violet lights were replaced during the year, amounting to $33,000 due to bulb failure ahead of expectation. 2010/2011 2010/2011 2009/2010 WASTEWATER & STORMWATER Actual Budget Actual $(000) $(000) $(000) Signifi cant capital expenditure • Finalisation of Orowaiti project costs ($76,000) OPERATING REVENUE • Critical spares for the Wastewater Treatment Plant Targeted Rates 1,807 1,849 1,607 ($29,000) Fees and Sundry 11 53 673 • Upgrades to pump stations within Westport ($59,000) Financial Assistance 00 0 • Additional manholes and minor capital for Reefton ($20,000) TOTAL Income $1,818 $1,902 $2,280 • Derby Street upgrades of stormwater disposal and drainage control at The Stand ($113,000) OPERATING EXPENDITURE Employee Benefit Expenses 0 0 0 Explanation of signifi cant Depreciation and Amortisation 750 753 699 Finance Costs 418 407 363 capital expenditure variances Other Expenses 1,339 1,210 1,196 stormwater & wastewater • The sewer main modelling has been designed, and is to be 2,507 2,370 2,258 verifi ed with Council staff. The sewer modelling and the Less: Internal Interest (418) 0 (333) separation has not yet been tendered and this capital is to be carried forward to 2011/2012 ($116,000). TOTAL Expenditure $2,089 $2,370 $1,925
NET Cost/(Surplus) of Services $271 $468 $(355)
Capital Expenditure - Renewals 355 310 1,146 Capital Expenditure - Increases in Levels 0 116 77 of Service
TOTAL CAPITAL EXPENDITURE $355 $426 $1,223
Buller District Council • Annual Report year ending 30 June 2011 85 Blow Holes, Punakaiki, Buller support services What do we do? The goal of Corporate Services is to be effi cient, service orientated and accountable to Council and includes the following functions:
• Corporate planning • Financial and accounting operations - monitoring and fi nancial reporting • Rating operations • Customer Service Centres in Westport and Reefton • Human Resources management • Information Technology management • General administration
• Health and safety compliance & legal counsel support services support • Monitoring and compliance of all Council Controlled Organisations • Guidance and monitoring of Holding Company performance
Why do we do it? Contributes to what community outcome The activity is intrinsic to the support and functioning of all Council’s activities and Support Services covers all the community outcomes as it provides the service provision. administrative and operational capacity to achieve them
Buller District Council • Annual Report year ending 30 June 2011 87 How the Council performed
Westport Harbour Limited: Finalisation of the transfer of assets to Westport Harbour Limited. This resulted in land and buildings totalling $1.4 million being sold to Westport Harbour Limited. The remainder of the land, buildings, plant and vessels were leased by Westport Harbour Incentive for Payment of Rates: Limited. The rates incentive programme aimed to encourage ratepayers to pay their rates on time by monthly direct debit, and was initiated to achieve both: Westport Harbour Limited took over the Harbour Management from Holcim on 01 September 2010. • a smoothing of Council’s cash infl ow from rates payment; and • an increase in processing effi ciency Corporate Services Function: During the 2010/2011 rating year Council received an additional Finalised restructure of the Corporate Services function. This changed reporting lines, $124,000 in rate payments by direct debit compared to the previous rescoped the IT role and resulted in the creation of a new position focusing on debt year, with minimal publicity and cost. Within this total the recovery. increase in the pace of uptake of monthly direct debit payments support services support was signifi cant compared to the preceeding two years.
Leasehold Land: This scheme was continued in the 2011/2012 fi nancial year until 31 January In June 2010 Council passed a resolution approving 20% discount off the market value of 2012. The discount will then reduce to 15% until the end of June 2012. its Endowment Leasehold Property as an incentive to encourage leaseholders to freehold this type of property from Council. This offer expired 30 June 2011. Investigation into a Shared IT System: At this date there have been 29 completed freeholding transactions with $1.79 million Buller district has participated in a project with Grey and of funds being paid to Council. In addition there are 25 property transactions currently Westland District Council’s and the West Coast Regional Council at Council’s solicitors awaiting processing and settlement, with a value totalling $1.63m. to investigate the feasibility of a Shared IT System. As at the There are also an additional 12 properties that indicated that they wished to freehold end of June 2011 the following milestones were achieved: before the cut-off date, and Council is currently waiting for valuations to be carried out on these properties. • RFP process was followed to select a preferred application vendor. The incentive has been a success with a 48% uptake on an estimate of $4.2m in funds • It was established that a shared IT system was technically feasible. being realised. Extending the scheme may yield a smaller number of properties able to be freeholded. A full business case with a confi rmed technical architecture will be presented to the CEO’s for ratifi cation in October 2011. This scheme was continued in the 2011/2012 fi nancial year until 31 January 2012. The discount will then reduce to 15% until the end of June 2012. Health and Safety On-going development of Health and Safety Procedures
88 Buller District Council • Annual Report year ending 30 June 2011 Key performance indicators
What we did What we measured Target Actual Prioritise and manage operating Net operating results and net Operate within overall budgets Within overall budgets with exceptions have been noted and expenditure and capital capital results within overall explanations provided. expenditure budget. Council deficit of $647,000 (2010: $2.0 million surplus) Net Capital Expenditure $5.5 million (2010: $8.9 million) Maintenace of rating Statutory compliance Continue to provide updated rating Continued availability of rating information to all members of inforamtion database in and availability of rating information available to public at the public compliance with Local Rating information to public in Westport and Reefton Offices and on Act 2002. Westport and Reefton. website. Maintenance of Council’s Availability of financial and 99% availability with no extended 99% availability with no extended downtime on all critical information systems including operational systems including downtime on all critical applications. applications (2010: 99%) GIS and financial and regulatory GIS systems to support systems. provision of Council services for effective decision making.
Customer Services provides Customer information The number of business transactions Transactions currently being recorded in the Service Request services support the first point of contact for services are available to carried out at Customer Services. system. Westport Customer Services handles on average $5,494 customers. all customers. The activity transactions per month (2010: 5,760), Reefton Service Centre employs highly trained and handles on average $5,838 transactions a month (2010: 6,000) This services includes a skilled staff who have local website (www.bullerdc.govt. and Council knowledge and Number of complaints received. Complaints are handled via each departmental manager. nz), telephone service and can provide clear, consistent face to face contact through and accurate information. Customer satisfaction survey - Survey has not been carried out. the Customer Services desk in internal and extenal 30% rating. Westport. External customers provide feedback via a suggestion box in Customer Services All feedback received has been extremely positive - a survey will be conducted in the 2011/2012 year. Complaints relating to staff / Council services are dealt with by the Management Team Monitor turnaround time to resolve Service request system has been implemented to log all requests queries by internal departments. and monitor the deadlines for completion. Overdue service requests are escalated to the Team Leaders for resolution To reduce the incidence of work Health and Safety Achieve and maintain ACC Secondary accreditation achieved. related accidents and to ensure accreditation - measure savings that Council complied with achieved via rebates on ACC levies. Health and Safety legislation. 100% compliance with Council Health Currently not achieved but working toward 100% compliance and Safety policies and procedures. Work has been undertaken on improving the principal contractor relationship health and safety procedures and processes Monitoring of contractors safety and Setting up systems to ensure that all contracts and contractors compliance procedures to ensure comply with legislative requirements. compliance with Council policies and statutory requirements.
Buller District Council • Annual Report year ending 30 June 2011 89 Explanation of signifi cant operating variances Employee benefi ts: Higher than budgeted employee benefi ts ($89,000) were incurred. This is due to higher than anticipated salary adjustments. 2010/2011 2010/2011 2009/2010 SUPPORT SERVICES Actual Budget Actual $(000) $(000) $(000) Signifi cant capital expenditure • Aerial photography for the GIS system ($38,000) OPERATING REVENUE
• Website upgrade ($17,000) Fees and Sundry 2 0 17 support services support • Upgrade of the GIS server and system ($10,000) Internal Recoveries 3,487 3,306 3,436 • Hardware infrastructure ($43,000) TOTAL Revenue $3,489 $3,306 $3,453 • Investigation into shared IT Services ($31,000)
OPERATING EXPENDITURE Employee Benefit Expenses 1,643 1,554 1,512 Depreciation and Amortisation 104 126 132 Explanation of signifi cant Finance Costs 205 145 261 capital expenditure variances Other Expenses 1,537 1,481 1,546 TOTAL Expenditure $3,489 $3,306 $3,451 • No signifi cant variances noted.
NET Cost/(Surplus) of Services $0 $0 $(2)
Capital Expenditure - Renewals 142 168 99 Capital Expenditure - Increases in Levels 0 0 0 of Service
TOTAL CAPITAL EXPENDITURE $142 $168 $99
90 Buller District Council • Annual Report year ending 30 June 2011 in-house professional services What we do? The Professional Services unit provides engineering services to support the maintenance and development of Council infrastructure.
This includes the preparation of contracts for roading, water, wastewater, solid waste and property. They monitor the performance of contractors and issue instructions for work found necessary as a result of requests for service and comments from ratepayers. How we contribute to strategic goals & community outcomes Why we do it? This activity supports the following community outcomes: The maintenance of an in-house professional services unit allows Council to access engineering services on a cost effective basis. In-house expertise assists the Community Outcomes How the Council contributes effi cient management of Council roading and other infrastructure assets. Safety • By monitoring the conditions of Council assets and issuing requests for maintenance in time. Environment • By monitoring landfi lls.
Economy • By requesting necessary maintenance in time.
How the Council performed The professional services business unit provided monthly updates to Council on contracts under their jurisdiction in a timely manner.
Key performance indicators services professional in-house
What we did What we measured Target Actual To provide Provide monthly Prepare annual Have continued engineering reports on annual work programmes to do the same advice to Council work programmes, and monthly and administer monitor contract works progress reports contracts and prepare monthly contract progress reports
Buller District Council • Annual Report year ending 30 June 2011 91 Explanation of signifi cant operating variances No signifi cant operating variances noted.
2010/2011 2010/2011 2009/2010 IN-HOUSE PROFESSIONAL Actual Budget Actual SERVICES $(000) $(000) $(000) Explanation of signifi cant OPERATING REVENUE capital expenditure variances Fees and Charges 1 9 2 There were no signifi cant capital expenditure variances Internal Recoveries 604 620 529 noted. TOTAL Income $605 $629 $531
OPERATING EXPENDITURE Employee Benefit Expenses 398 383 366 Depreciation and Amortisation 8 7 8 Finance Costs 2 2 0 Other Expenses 157 161 154 $565 $553 $528
in-house professional services professional in-house Less: Internal Interest (2) TOTAL Expenditure $563 $553 $528
NET Cost/(Surplus) of Services $(42) $(76) $(3)
Capital Expenditure - Renewals 0 0 40 Capital Expenditure - Increases in Levels 0 0 0 of Service
CAPITAL EXPENDITURE $0 $0 $40
92 Buller District Council • Annual Report year ending 30 June 2011 westport harbour
The Council Harbour operation was established under the Westport Harbour Foreshore, Seabed, Riverbed and Waters Control Order 1988, which came into force on 1 July 1998. A grant of control was given to the Council which has since then amalgamated into the Buller District Council.
Buller Port Services Limited, a wholly owned subsidiary of Holcim Contributes to what community outcome? New Zealand Limited managed the harbour until 31 August 2010. This activity supports the outcomes of safety and economy. This Westport Harbour Limited took over the management contract from activity contributes to the community outcomes by: Holcim on 01 September 2010. On 01 September 2010 Council sold land and buildings to Westport Harbour Limited, and in consideration Providing fl ood protection to the town of Westport; and Buller Holdings issued 1,118,000 shares to Council with a par value of • $1.00. • Promoting and enhancing opportunities for economic development.
The harbour is a key strategic asset and provides transportation opportunities for bulk cargos such as coal, cement, gypsum and
timber. It also provides facilities for commercial and recreational What was achieved Westport harbour Westport fi shing. Harbour operations such as dredging and maintenance of the • Provided safe and effi cient port services. full and half-tide walls contribute to the effi cient fl ow of the Buller River during times of fl ood, providing a degree of protection to the town of Westport. How the council performed Westport Harbour Limited will provide land, facilities, plant for receiving, delivery, stockpiling and shipment of a wide range of • Net surplus for the year was $168,000. products and raw materials; the ownership of land and facilities necessary to maintain the company’s commercial assets; and the provision of facilities associated with the repair and servicing of vessels.
It has now been agreed that assets would no longer be transferred to Westport Harbour Limited, but leased via an operating Lease.
Buller District Council • Annual Report year ending 30 June 2011 93 Explanation of signifi cant operating variances Council did not budget for Westport Harbour.
2010/2011 2010/2011 2009/2010 WESTPORT HARBOUR Actual Budget Actual $(000) $(000) $(000) Signifi cant capital expenditure
Westport harbour Westport No capital expenditure was incurred. OPERATING REVENUE Fees and Sundry 720 0 2,395 TOTAL Revenue $720 $0 $2,395
OPERATING EXPENDITURE Explanation of signifi cant Employee Benefit Expenses 124 0 897 capital expenditure variances Depreciation and Amortisation 462 0 229 Finance Costs 67 0 0 No signifi cant capital variances noted. Other Expenses 235 0 1,362 TOTAL Expenditure $888 $0 $2,488
NET Cost/(Surplus) of Services $(167) $0 $93
Capital Expenditure - Renewals 000 Capital Expenditure - Increases in 0 0 53 Levels of Service
CAPITAL EXPENDITURE $0 $0 $53
94 Buller District Council • Annual Report year ending 30 June 2011 Council controlled trading organisations Council controlled trading organisation Council controlled trading organi
Buller District Council | 2010-2011 Annual Report
council controlled trading organisations Westport Airport
Westport Airport is a joint venture between the Crown and Buller District Council, with each holding a 50% interest. Management and control of Westport Airport is vested in the Buller District Council.
Objective: Non-fi nancial performance & targets: • To operate as close as possible to a commercial business in a cost effective and effi cient manner. A commitment to the environment • To maintain the Westport Airport assets. • To comply with the Resource Management Act and undertake its activities in an environmentally sound manner • To enter into any commercial undertakings that will complement the airport having regard to the interest of the community. operations. A commitment to service • To systematically improve the quality and effectiveness Nature & scope of activities: of services provided to customers. To operate airport facilities at Westport. This includes the provision, maintenance, upgrading and enhancement of services and facilities to accommodate the landing A commitment to the community of aircraft and the safe and effi cient facilitation of passengers and cargo, having regard to the regulatory requirements of the Civil Aviation Authority of New • To operate the airport with due regard to sound, Zealand. cultural and environmental issues arising from the community in which they are located. • A commitment to full ownership and independent air transport. • To seek full contribution or divestment. Performance targets & results: Actual Budget Description 2010/2011 2010/2011 Signifi cant capital expenditure No signifi cant capital expenditure noted. $000 $000 Operating Revenue 116 119 Operating Expenditure 223 192 Net Profit (Loss) (107) (73)
Capital Expenditure 9 10 council controlled trading organisations trading controlled council
Buller District Council • Annual Report year ending 30 June 2011 97 Buller Holdings Limited
The nature and scope of Buller Holdings Limited is to provide a holding company structure for the ownership of selected Council assets and investments. Buller Financial targets and results Holdings Limited provides a commercial focus in the governance and administration Description Actual Budget of these assets, enabling more effective management of Council’s commercial 2010/2011 2010/2011 activities therefore allowing for maximum returns on behalf of the ratepayers. Actual Actual
Group revenue 11,456 10,798 Objective Net surplus 487 285 Return on revenue 4.27% 2.63% To operate as a successful business and to be guided by the following principles: Interim Dividend (May 2011) 400 Not applicable • Financial performance; • Service; • Employee relations; and • Safety and environment.
Service performance Nature & scope of activities Target Actual The nature and scope of Buller Holdings Limited is to provide a holding company structure for the ownership of selected Council assets and investments. 3 meetings per year between 4 meetings held during the year Council and BHL Board CEO’s meet 6 times per year CEO’s have met 7 times during the period Formal monthly reporting to Quarterly reports to Council Council Compliance with charter and No breaches of charter known
protocols council controlled trading organisations trading controlled council
98 Buller District Council • Annual Report year ending 30 June 2011 WestReef Services Limited
WestReef Services Limited is 100% owned by Buller Holdings Limited. Nature & scope of activities The nature and scope of WestReef Services Limiteds activities are to predominantly provide contracting services for physical works in the Buller Region and the West Objective Coast of the South Island. Its activities include maintenance and construction services for: To operate as a successful business and to be guided by the following principles: • Roads and bridges; • Response for road and civil defence emergencies; • Financial performance; • Parks and reserves (including associated facilities); • Service; and • Utility services (water and sewerage reticulation); • Employee relations. • Rural fi re emergency response; • Vehicle workshop repairs; • Landfi ll sites; • Refuse collection and kerbside recycling; • Roadside vegetation control; and • Property maintenance. Performance targets & results Target Actual The Company will achieve a post tax operating profit of 10.0% on gross revenue (before any subvention • 20% achieved (2010: 12.8%) payment) Grow gross revenue by 10% • 22% growth achieved in the period (2010: no change) To renew its TQS1 certification as required • Achieved To seek customer feedback on service performance in 2010 calendar year • Client meeting and direct contact from public used to gauge customer satisfaction Monthly meeting with major client and Council staff to obtain feedback on specific contract performance • Achieved Support six activities involved with the social and environmental development in the community. • Supported 18 events and organisations in the period (2010: 15 events supported) Staff turnover to be less than 15% annually excluding retirement. • 23% achieved (2010: 9% achieved) Ensure succession plans are put in place for all senior management positions. • Plans are underway Weekly meetings held with staff, with minutes kept. • Achieved
Lost time incidents to be no more than 5% of total hours • 0.0% achieved (2010: 0.3% achieved) council controlled trading organisations trading controlled council
Buller District Council • Annual Report year ending 30 June 2011 99 Westport Harbour Limited Objective To operate as a successful business and to be guided by the following Since 01 September 2005 the operation of the Westport Harbour and the principles: management of the harbour assets have been carried out by Buller Port Services Limited, a wholly owned subsidiary of Holcim (New Zealand) Limited (“Holcim”) • Financial performance; pursuant to a Harbour Management Agreement between the Council and Holcim Service; dated 16 March 2006 (“the HMA”). • • Employee relations; and The term of the HMA expired on 31 August 2010 and with effect from the expiry of • Safety and environment. the HMA Westport Harbour Limited has operated the Harbour in accordance with agreed service levels.
On 01 September 2010 Council sold land and buildings to Westport Harbour Limited Nature & scope of activities and in consideration Buller Holdings Limited issued 1,118,000 shares to Council Westport Harbour Limited will be involved in providing land, facilities, plant and with a par value of $1.0. The remainder of the port assets were leased to Westport labour for receiving, delivery, stockpiling and shipment of a wide range of products Harbour Limited. and raw materials; the ownership of land and facilities necessary to maintain the company’s commercial assets; and the provision of facilities associated with the
repair and servicing of vessels council controlled trading organisations trading controlled council
100 Buller District Council • Annual Report year ending 30 June 2011 Key performance indicators What we did Target Actual Financial performance Pre-tax operating profit of at least 10% of gross revenue Pre-tax operating profit for the year of 5.4% Productivity To achieve a maximum total tonnage through the port consistent with 309,808mt of cement shipped during the year customers’ requirements and vagaries of the port Post tax result of 2% of BHL’s investment Post tax result of 15.4% of equity
Pursue opportunities for growth Project underway to develop coal handling facilities
Dredging Maintain bar depth greater than 2.8m at chart datum 4.3m high 2.6m low Maintain an average river depth in the main channel of 3.8m at chart Maintained as a matter of course datum Maintain cement berth depth to allow Milburn Carrier II to lie always Maintained as a matter of course afloat loaded at a draft of 5.6m to 6.0m To maintain practical depths in fishing vessel berths consistent with the Dredged as required from time-to-time to maintain depths size of working users so that they remain afloat at MLW tides Businesses Development Provide forums for discussion on port, conduct tours and make Co-operative project underway with Bathurst Resources Ltd for presentations to prospective and present customers coal shipping Holcim NZ Ltd services delivered in accordance with service agreement Outport dredging opportunities identified and secured for 2012 year 14 Palmerston Street - upgraded and leased for five years
Several investor groups have been hosted during the year
Visiting neighbour port, Nelson hosted HR Management Succession planning Key position succession plans in place Staff training target hours per employee of 0.5% of total hours (total 114 371.5 hours training undertaken in the 10 months to June 2011 hours) Safety Log all incidents and take appropriate action None in the period Promote a safety first / zero harm culture with nil lost time injuries (LTI) None in the period Conduct at least eight safety tours per month 69 safety tours conducted since September 2010 Environment No adverse effects on the environment All consent requirements met
Oil spill training and procedures in place council controlled trading organisations trading controlled council
Buller District Council • Annual Report year ending 30 June 2011 101 Buller Recreation Limited
Council incorporated a new Council Controlled Organisation, Buller Nature & scope of activities Recreation Limited, which is 100% owned by Buller Holdings Limited. The nature and scope of the company’s activities are to provide accessible sport, recreation and event services and facilities to residents and visitors to the Buller In the Council meeting held on 24 June 2009, Council agreed to transfer the Solid district of New Zealand. Energy Centre to Buller Recreation Limited, and Westport Harbour to Westport Harbour Limited effective 01 July 2009. Its activities will include provision of services for:
In the meeting of 23 September 2009 Council ratifi ed the purchase and sale documents for the sale of the assets to Buller Recreation Limited. The sale was • Recreational swimming and learn to swim programmes concluded and Council received 17,570 million shares in Buller Holdings Limited, • Aquatic sports events valued at $17.570 million, and transferred the assets to Buller Recreation Limited. • Indoor court sports competitions and events • Fitness centre programmes and classes
• Outdoor turf sports
Objective • Corporate, trade and social events To operate as a successful business and to be guided by the following The Directors will consider opportunities from time to time with regard to other principles: types of activities or expanding the reach of the Buller Recreation Limited for the • Financial performance; provision of services outside of the centre’s physical location. • Service; • Employee relations; and
• Safety and environment. council controlled trading organisations trading controlled council
102 Buller District Council • Annual Report year ending 30 June 2011 Key performance indicators What we did Target Actual Financial performance 1% of gross revenue Deficit position Productivity Revenue and expenditure in line with budget Revenue from services was 14% over budget Expenses were 5.3% over budget Fitness membership 320 members Average membership 304 Retention rate 35% Average retention 92% Aquatic centre usage 2,800 visits per month Average 4,402 per month 125 swimming students Average 134 swimming students Developing and training Leadership and management trainign for team leaders and General National conferences attended staff to meet customer Manager expectations Aquatic staff working through the nationally recognised aquatic Customer services training for Customer Services Officers certification Swimming instructors have completed additional qualifications and training to develop their teaching skills Safety Nil serious harm incidents Nil serious harm incidents 100% compliance with procedures Achieved Employee satisfaction Employee turnover, 15% per annum 32% turnover (1 full time, 6 part time staff) Develop structure and roles Review completed and structure now as intended Fortnightly staff meetings Fortnightly meetings are held with Team Leaders Customer satisfaction Customer feedback systems Implemented Asset management Prepare Asset Management Plan Implemented Complete maintenance and replacement in accordance with Asset Maintenance and replacement now undertaken
Management Plan council controlled trading organisations trading controlled council
Buller District Council • Annual Report year ending 30 June 2011 103 Buller Health Trust
The Buller Health Trust was established in 1997 for the preservation of public health and wellbeing in the Buller Performance targets & results District. Target Actual The Mayor and Chief Executive are appointed trustees of the Buller To support provision of appropriate medical services to Dental services were Health Trust. the Buller community. available 100% of the year (2010: 100%)
To operate on a breakeven basis Annual result was a $23,255 Objective surplus (2010: $5,454 loss) • To benefi t the community; • To be a good employer; and • To be environmentally and socially responsible.
Nature & scope of activities To be involved in establishing, maintaining, controlling, aiding or carrying on medical and dental clinics or any other body in accordance with the Trust Deed, with the objective on conserving public health and wellbeing in the community of the Buller
District. council controlled trading organisations trading controlled council
104 Buller District Council • Annual Report year ending 30 June 2011 Tourism West Coast
Tourism West Coast is the offi cial Regional Tourism Organisation for Performance targets & results the West Coast region. Target Actual The Board of Directors is made up of fi ve members. The Buller District Council The Chairperson of the Board and Chief Presentation completed to appoints one member, along with the one each from Westland District Council Executive of Tourism West Coast will Council during Annual Plan and Grey District Council. The Council also provides annual funding to Tourism address Council on an annual basis process. West Coast. The Annual Report is to be presented to No Annual Report provided Council within two months of adoption The other two members are appointed by Development West Coast and from the Tourism industry.
Objective • Enhance the West Coast’s basic promotional capabilities; • Co-ordinate the work of development and promotional agencies; • Secure long term funding; and • Provide advisory and support services for the local tourism industry.
Nature & scope of activities Tourism promotion at a regional level.
top of the council controlled trading organisations trading controlled council
Buller District Council • Annual Report year ending 30 June 2011 105
Financials Financials Financials
Buller District Council | 2010-2011 Annual Report Parent Group
2010/2011 2010/2011 2009/2010 2010/2011 2009/2010 Note Actual Budget Actual Actual Actual $000 $000 $000 $000 $000
OPERATING REVENUE General Rates 1 6,411 6,409 6,215 6,411 6,215 Targeted Rates 1 4,068 4,178 3,752 4,068 3,752 Rate Penalties 1 231 160 223 231 223 Financial Assistance 3,892 5,677 5,333 3,892 5,333 Investment Income 2 1,610 872 653 640 587 Other Income 2 167 993 3 167 3 Fees & Charges 4,443 3,643 6,965 8,228 7,986 Vested Assets 40 350 13 40 13 Profit on Sale of Assets 3840945020 Revaluations of Investment Land 12 141 486 468 141 468 Share in Profit of Associate 0 0 0 (8)44 TOTAL Operating Revenue 3 $21,387 $22,768 $24,570 $23,810 $24,644
OPERATING EXPENDITURE Employee Benefit Expense 4,003 3,717 4,390 8,157 7,527 Depreciation 5,199 4,202 4,424 6,222 5,344 Finance Costs 1,512 2,274 1,521 1,446 1,521 Other Expenses 11,443 9,536 11,702 9,866 8,840 Loss on Derivative Contracts 16 208 0 114 208 114 Impairment of Assets 12 1,400 0 90 0 0 Assets Written Off 572 0 46 572 97 Loss on Sale of Assets 0 0 0 127 0 Loss on Sale of Investment Property 194 0 325 194 325
TOTAL Operating Expenditure 4 $24,531 $19,729 $22,612 $26,792 $23,768 statement of comprehensive income comprehensive of statement
The accompanying notes form part of and are to be read in conjunction with these Financial Statements
108 Buller District Council • Annual Report year ending 30 June 2011 Parent Group
2010/2011 2010/2011 2009/2010 2010/2011 2009/2010 Note Actual Budget Actual Actual Actual $000 $000 $000 $000 $000
NET Surplus (Deficit) Before Taxation 5 (3,144) 3,039 1,958 (2,982) 876
Income Tax Expense 6 0 0 (75) 77 1,313
NET Surplus (Deficit) After Taxation (3,144) 3,039 2,033 (3,059) (437)
Comprehensive Income
Increase in Infrastructure Revaluation 130 4,525 6,943 130 7,102 Reserves
Gain/(Loss) on Investment Recognised in (8) (8) 0 Asset Revaluation Reserve
TOTAL Comprehensive Income (3,022) 7,564 8,976 (2,937) 6,665 statement of comprehensive income comprehensive of statement
The accompanying notes form part of and are to be read in conjunction with these Financial Statements
Buller District Council • Annual Report year ending 30 June 2011 109 Parent Group
2010/2011 2010/2011 2009/2010 2010/2011 2009/2010 Note Actual Budget Actual Actual Actual $000 $000 $000 $000 $000
CURRENT ASSETS Cash and Cash Equivalents 8 506 0 879 1,818 2,352 Trade and Other Receivables 9 4,259 3,842 3,377 4,334 3,448 Tax Receivable 0 102 0 0 238 Inventories 16 13 134 171 232 Other Current Assets 10 237 9 21 297 36 Short Term Investments 10,376 10,764 10,029 11,229 10,029 Assets Held for Sale 11 1,536 0 0 1,536 0
nancial position nancial TOTAL Current Assets $16,930 $14,730 $14,440 $19,385 $16,335
NON CURRENT ASSETS Trade and Other Receivables 9 0 0 654 0 654 Investments 12 20,509 23,626 20,158 199 214 Investment Property 12 12,003 16,174 15,328 12,003 15,328 Infrastructural Assets 13 257,185 276,534 258,040 256,891 258,040 Other Non Current Assets 13 18,707 21,622 19,297 36,644 36,434 Deferred Tax 6 0 0 0 0 153 Intangible Assets 14 85 0 53 819 751 TOTAL Non Current Assets $308,489 $337,956 $313,530 $306,556 $311,574
statement of fi of statement TOTAL Assets $325,419 $352,686 $327,970 $325,941 $327,909
The accompanying notes form part of and are to be read in conjunction with these Financial Statements
110 Buller District Council • Annual Report year ending 30 June 2011 Parent Group
2010/2011 2010/2011 2009/2010 2010/2011 2009/2010 Note Actual Budget Actual Actual Actual $000 $000 $000 $000 $000
CURRENT LIABILITIES Cash and Cash Equivalents 8 &17 216 481 0 216 0 Trade and Other Payables 15 3,702 4,661 4,426 4,052 4,378 Derivative Financial Instruments 16 0 47 21 0 21 Tax Payable 0 0 0 0 0 Employee Benefits 17 437 377 515 947 831 Provisions 19 51 0 227 51 227 Current Portion of Term Debt 18 0 1,333 22,274 0 22,274
TOTAL Current Liabilities $4,406 $6,899 $27,463 $5,266 $ 27,731 nancial position nancial
NON CURRENT LIABILITIES Derivative Financial Instruments 16 643 0 414 643 414 Provisions 19 1,593 1,142 1,360 1,593 1,360
Bond Deposits 82 82 82 82 82 ...... Employee Entitlements 17 161 109 119 314 287 PJ McManus Deferred Tax 6 0 0 0 1,324 1,403 (Mayor) Term Debt 18 23,024 23,968 0 23,024 0 TOTAL Non Current Liabilities $25,503 $25,301 $1,975 $26,980 $3,546
EQUITY
Accumulated Funds 20 171,948 184,474 174,806 169,974 172,747 fi of statement Reserves 21 1,941 1,195 2,227 1,941 2,227 ...... Asset Revaluation Reserve 22 121,621 134,817 121,499 121,780 121,658 TOTAL Equity $295,510 $320,486 $298,532 $293,695 $296,632 A Oosthuizen
(Acting Chief Executive) TOTAL LIABILITIES & EQUITY $325,419 $352,686 $327,970 $325,941 $327,909
The accompanying notes form part of and are to be read in conjunction with these Financial Statements
Buller District Council • Annual Report year ending 30 June 2011 111 Parent Group
2010/2011 2010/2011 2009/2010 2010/2011 2009/2010 Actual Budget Actual Actual Actual $000 $000 $000 $000 $000
Equity as at 1 July 298,532 312,922 289,556 296,632 289,967
Total Comprehensive Income (3,022) 7,564 8,976 (2,937) 6,665
Total Equity at End of Year $295,510 $320,486 $298,532 $ 293,695 $296,632
Components of Equity
Accumulated Funds 171,948 184,474 174,806 169,974 172,747 Reserves 1,941 1,195 2,227 1,941 2,227 Asset Revaluation Reserve 121,621 134,817 121,499 121,780 121,658
Total Equity at End of Year $295,510 $320,486 $298,532 $293,695 $296,632 statement of movements in equity in movements of statement
The accompanying notes form part of and are to be read in conjunction with these Financial Statements
112 Buller District Council • Annual Report year ending 30 June 2011 2010 / 2011 2010 / 2011
Buller District Council • Annual Report year ending 30 June 2011 113 Parent Group
2010/2011 2010/2011 2009/2010 2010/2011 2009/2010 Note Actual Budget Actual Actual Actual $000 $000 $000 $000 $000
ows CASHFLOWS FROM OPERATING ACTIVITIES Cash was provided from: Rates 10,764 10,747 10,030 10,764 10,029 Other Income 8,707 10,191 12,249 12,772 12,982 Interest Received 599 993 640 540 574 Tax Received 00 02380 Dividends Received 980 0 348 0 1 21,050 21,931 23,267 24,314 23,586 Cash was applied to: Payments to Suppliers and Employers 16,042 12,841 16,259 18,059 15,982 Interest Paid 1,334 1,819 1,521 1,334 1,521 Income Tax Paid 0 0 0 0 118 Net GST Movement 76 0 171 35 403 17,452 14,660 17,951 19,428 18,024
Net Cash From Operating Activities 7 3,598 7,271 5,316 4,486 5,562 statement of cashfl of statement
CASHFLOWS FROM INVESTING ACTIVITIES Cash was provided from: Disposal of Fixed Assets 2,779 0 17,944 1,750 349 Investment Realised 0 169 459 50 909 Transfer of Cash from Assets Held for Sale 0 0 427 0 0 2,779 169 18,830 1,800 1,258 Cash was applied to: Purchase of Fixed Assets 5,919 9,422 8,765 6,534 8,935 Purchase of Investments 1,703 285 17,567 1,158 0 Purchase of Intangibles 94 0 40 94 40 Transfer of Cash to Assets held for sale 00000 7,716 9,707 26,372 7,786 8,975
Net Cash From Investing Activities (4,937) (9,538) (7,542) (5,986) 7,717 The accompanying notes form part of and are to be read in conjunction with these Financial Statements 114 Buller District Council • Annual Report year ending 30 June 2011 Parent Group
2010/2011 2010/2011 2009/2010 2010/2011 2009/2010 Note Actual Budget Actual Actual Actual $000 $000 $000 $000 $000
CASHFLOWS FROM FINANCING ACTIVITIES ows Cash was provided from: Loans Raised 750 3,439 2,810 750 2,810
Cash was applied to: Repayment of loans 0 904 0 0 0
Net Cash From Financing Activities 750 2,535 2,810 750 2,810
NET INCREASE (DECREASE) IN CASH (589) 268 584 (750) 655
OPENING CASH AS AT 1 JULY 879 (749) 295 2,352 1697
CLOSING CASH AS AT 30 JUNE 290 (481) 879 1,602 2,352 statement of cashfl of statement
The accompanying notes form part of and are to be read in conjunction with these Financial Statements
Buller District Council • Annual Report year ending 30 June 2011 115 Notes to the Accounts Notes to the Accounts Notes to the
Buller District Council | 2010-2011 Annual Report notes to the fi nancial statements NOTE 1: Rates Revenue
Parent
Actual Actual 2010/2011 2009/2010 $000 $000
General Rates $6,411 $6,215
Targeted Rates Attributable to Activities Water 1,353 1,267 Refuse and Sanitation 2,449 2,222 Roading 39 38 Rates Remissions Rates revenue is shown net of rates remissions, BDC’s rates remission policy allows statements nancial Economic Development 227 225 BDC to remit rates on sporting, culture and other community organisations. Penalties 231 223 TOTAL Revenue from rates $10,710 $10,190 Parent
Actual Actual 2010/2011 2009/2010 $000 $000
TOTAL Rates Revenue 10,752 10,228
Rates Remissions notes to the fi the to notes Land used for sport 27 24 Land protected for historical or cultural 15 14 purposes TOTAL Remissions 42 38
Rates Revenue Net of Remissions 10,710 10,190
Buller District Council • Annual Report year ending 30 June 2011 117 NOTE 2: Investment Income
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Interest 1,335 1,209 1,345 1,143 Dividend Income 980101
2,315 1,210 1,345 1,144
Less: Internal Interest 705 557 705 557
TOTAL Investment Income $1,610 $653 $640 $587 nancial statements nancial
Parent Group
Actual Actual Actual Actual OTHER INCOME 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Investment Loan Discount Amortisation Revenue 2323 Sundry Income 165 0 165 0
TOTAL Other Income $167 $3 $167 $3 notes to the fi the to notes
118 Buller District Council • Annual Report year ending 30 June 2011 NOTE 3: Operating Revenue
Parent Group
2010/2011 2010/2011 2009/2010 2010/2011 2009/2010 REVENUE BY ACTIVITY Actual Budget Actual Actual Actual $000 $000 $000 $000 $000
Democracy 44 40 9 44 9 Community Services 1,468 2,321 2,721 1,468 2,721 Environmental Services 1,098 1,113 1,229 1,098 1,229 Amenities & Reserves 1,533 1,160 1,543 1,533 1,543 Roading & Urban Development 3,154 3,149 3,474 3,154 3,474 Solid Waste 1,242 1,348 1,152 1,242 1,152 Water Supplies 1,568 2,748 1,485 1,568 1,485 Wastewater and Stormwater 1,818 1,902 2,280 1,818 2,280 Harbour 720 0 2,395 720 2,395
Airport 58 57 56 58 56 nancial statements nancial In House Professional Services 605 629 531 605 531 Support Services 3,489 3,306 3,453 3,489 3,453 $16,797 $17,773 $20,328 $16,797 $20,328
PLUS: General Rates 6,411 6,409 6,215 6,411 6,215 Rates Penalties 231 185 223 231 223 Investment Income 1,610 610 653 640 587 Profit on Sale of Assets 3840945020 Vested Assets 40350134013 Sundry Income 167 5,543 3 167 3 Revaluations of Investment Land 141 404 468 141 468 fi the to notes Group Income 0003,7851,021 Share in Profit/(Loss) of Associate 0 0 0 (8) 44 $25,781 $31,274 $28,848 $28,204 $28,922
LESS: Internal Recoveries (4,394) (4,371) (4,278) (4,394) (4,278)
TOTAL Income $21,387 $26,903 $24,570 $23,810 $24,644
Buller District Council • Annual Report year ending 30 June 2011 119 NOTE 4: Operating Expenditure
Parent Group
2010/2011 2010/2011 2009/2010 2010/2011 2009/2010 EXPENDITURE BY ACTIVITY Actual Budget Actual Actual Actual $000 $000 $000 $000 $000
Democracy 845 767 694 845 694 Community Services 4,537 4,268 3,695 4,537 3,695 Environmental Services 2,054 2,033 2,052 2,054 2,052 Amenities & Reserves 2,492 2,126 2,265 2,492 2,265 Roading & Urban Development 5,882 5,450 5,313 5,882 5,313 Solid Waste 2,033 1,920 2,290 2,033 2,290 Water Supplies 1,851 1,535 1,723 1,851 1,723 Wastewater and Stormwater 2,507 2,370 2,258 2,507 2,258 Harbour 888 0 2,488 888 2,488
Airport 112 108 114 112 114 nancial statements nancial In House Professional Services 565 553 528 565 528 Support Services 3,489 3,306 3,451 3,489 3,451 27,255 24,436 26,871 27,255 26,871
PLUS: Group Expenses 0 0 0 2,133 1246 Assets Written Off 572 0 46 572 46 Loss on Derivative Contracts 208 0 114 208 114 Impairment of Assets 1,400 0 90 1,400 0 Loss on Sale of Assets 0001270
Loss on Sale of Investment Property 194 0 325 194 325 notes to the fi the to notes LESS: Internal Recoveries (4,394) (4,371) (4,278) (4,394) (4,278)
Internal Interest (704) (480) (556) (704) (556)
TOTAL Expenditure $24,531 $19,585 $22,612 $26,791 $23,768
120 Buller District Council • Annual Report year ending 30 June 2011 NOTE 5: Operating Surplus
Parent Group (i) Remuneration During the year to 30 June 2011, the total remuneration and value Actual Actual Actual Actual OPERATING SURPLUS WAS of non-fi nancial benefi ts received by or payable to the Mayor, other DETERMINED AFTER ACCOUNTING 2010/2011 2009/2010 2010/2011 2009/2010 Councillors and the Chief Executive of the Council were as follows: FOR: $000 $000 $000 $000 Actual Actual 2010/2011 2009/2010 Fees to principal auditor: $$ Audit fees for financial statement audit 96 92 187 159 Chief Executive: Additional Fees 10 10 10 10 Gary Murphy $180,905 $172,015 Grants and Donations Expense 594 426 594 426 Lease Income 180 0 0 0 Mayor: Lease Expense 157 151 243 234 Pat McManus $60,446 $56,501 Interest Expense 1,319 1,182 1,319 1,182
Movement in provision doubtful debts: Councillors:
Accounts Receivable $10 $94 $10 $4 Katherine Bainbridge (until 9/10/2010) 4,214 13,697 statements nancial David Barnes 14,899 14,139 Peter Campbell 14,038 13,697 Jim Halsall 14,028 13,697 Dave Hawes 14,034 13,697 John Hill (from 9/10/2010) 9,656 0 Graham Howard (from 9/10/2010) 9,656 0 Margaret Montgomery 16,025 15,834 Graeme Neylon 14,034 13,697 Fred Ratahi 14,028 13,697 Lynley Roberts (until 9/10/2010) 4,214 16,694
Rosalie Sampson 19,169 18,785 notes to the fi the to notes $208,441 $204,135
(ii) Severance Payments During the year to 30 June 2011 two severance payments of $36,087 and $14,028 totaling $50,112 were made (2010 $14,653).
Buller District Council • Annual Report year ending 30 June 2011 121 NOTE 6: Income Tax
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Components of Tax Expense
Current Tax Expenses 000(2) Adjustments to Current Tax in Prior Year 0000 Deferred Tax Expenses 0 (75) 77 1,315
Income Tax Expense $0 $(75) $77 $1,313
nancial statements nancial Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Relationship Between Tax and Accounting Profit
Surplus/(Deficit) Before Tax (3,144) 1,958 (2,982) 876 Tax @ 30% (943) 587 (895) 263 Non-Deductible Expenditure 00988337 Non-Taxable Income 811 (1,076) (21) (1,076) Change in Building Depreciation 0 0 0 2,112 notes to the fi the to notes Effect of tax rate change (2) 0 5 (112) Prior Year Adjustment 0 (20) 0 (21) Temporary Differences Not Recognised 8(55)0(679) Tax Losses Not Recognised 1264890489
Tax Expense $0 $(75) $77 $1,313
122 Buller District Council • Annual Report year ending 30 June 2011 Deferred tax assets/(liabilities) Property, Plant Financial Employee Other Tax Losses Total & equipment instruments entitlements provisions
Parent Balance at 1 July 2009 (297) 0 33 60 129 (75) Charged to Profit & Loss 297 (33) (60) (129) 75 Balance at 1 July 2010 000000
Charged to Profit & Loss 000000 Charged to Equity 000000 Balance at 1 July 2011 000000
Group Balance at 1 July 2009 (295) 0 149 80 129 63 Charged to Profit & Loss (1,768) 31 (55) 479 (1,313) Balance at 1 July 2010 (2,063) 0 180 25 608 (1,250) statements nancial
Charged to Profit & Loss (104) 0 7 (9) 32 (77) Charged to Equity 000000 Balance at 1 July 2011 2,167 0 187 16 640 (1,327)
Additional disclosures 2011: Council has an unrecognised deferred tax asset in relation to temporary timing differences of $289,025 (2010: $261,337) and tax losses of $2,167,059 (2010:
$1,747,105). This deferred tax asset has been recognised at the group level (2010 tax effect $566,000). notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 123 NOTE 7: Reconciliation of Net Surplus after Tax to Cashfl ows from Operating Acitivities
Parent Group 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Surplus/(deficit) after tax (3,144) 2,033 (3,059) (437) Add/(less) non-cash items: Depreciation Expense 5,199 4,424 6,222 5,344 Impairment 1,400 - - - Movement in Provisions 58 275 58 275 Movement in Deferred Taxation - (75) 128 1,314 Write down of Suspensory Loan 67 - - - Other Non Cash Items - - - - Vested Assets (40) (13) (40) (13) Loan Amortisation (2) (3) (2) (3) (Gains)/Losses in Fair Value of Investment Property (141) (468) (141) (468)
nancial statements nancial (Gains)/Losses on Derivative Financial Instruments 208 114 208 115 6,749 4,254 6,433 6,564 Add/(less) Items Classified as Investing Activities: (Gains)/Losses on Disposal of Investment Property and PPE (190) (670) 321 304 Assets Written Off 572 46 572 97 Movement in fixed asset accounts receivable 300 - - Movement in fixed asset prepayment 230 - - Transfer of Working Capital on Sale (460) (158) 0 Movement in Fixed Asset Accounts Payable 629 137 597 37 1,081 (645) 1,490 438 Add/(less) Movements in Working Capital Items: Trade and Other Receivables (228) (174) (232) (441)
notes to the fi the to notes Inventories 116 (121) 61 (34) Other Current Assets (216) (12) (261) (13) Trade and Other Payables (724) (118) (326) (123) Income Tax Receivable - - 238 (357) Employee Benefits (36) 99 142 (35) (1,088) (326) (378) (1,003)
Net cash inflow/(outflow) from operating activities $3,598 $5,316 $4,486 $5,662
124 Buller District Council • Annual Report year ending 30 June 2011 NOTE 8: Cash and Cash Equivalents
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Cash at bank and in hand 506 879 1,818 1,321
Short term deposits maturing three months or less from the date of acquisition 0 0 0 1,031
Total cash and cash equivalents $506 $879 $1,818 $2,352
The carrying value of short-term deposits with maturity dates of three months or less approximates their fair value. nancial statements nancial Cash and bank overdrafts include the following for the purposes of the cash fl ow statement: Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Cash at bank and in hand 506 879 1,818 1,321
Short term bank deposits maturing within three months 0 0 0 1,031 notes to the fi the to notes
Bank overdrafts (216) 0 (216) 0
$290 $879 $1,602 $2,352
Buller District Council • Annual Report year ending 30 June 2011 125 NOTE 9: Trade and Other Receiveables
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Trade Receivables $1,693 $1,958 $2,323 $2,195 Fair Value Trade and other receivables are non-interest bearing and Amounts Due from Controlled Entities (excluding GST) receipt is normally on 30 day terms. The carrying value of WestReef Ltd 67 67 0 0 trade, and other receivables (excluding loans to related parties and community loans) approximates their fair Buller Holdings Ltd 88 92 0 0 value. Buller Recreation Ltd 16 7 0 0 Buller Arts and Recreation Trust 000 0 Buller Health Trust 99 90 0 0 Impairment Westport Harbour Ltd 374 0 0 0 There is no concentration of credit risk with respect to receivables outside the group, as the group has a large
NZTA 638 617 638 617 number of customers. nancial statements nancial Interest Receivable 83 52 83 52 Dividend Receivable 003 0 Buller District Council does not provide for any impairment on rates receivables as it has various powers under the Local Rates Receivable 1,334 1,272 1,334 1,272 Government (Rating) Act 2002 to recover any outstanding debts. Ratepayers can apply for payment plan options in $4,393 $4,155 $4,378 $4,136 special circumstances. Where such payment plans are in place debts are discounted to the present value of future repayments. Less: provisions for Doubtful Debts (134) (124) (44) (34) These powers allow Council to commence legal proceedings $4,259 $4,031 $4,334 $4,102 to recover any rates that remain unpaid four months after the due date for payment. If payment has not been made Represented By; within 3 months of the Court’s judgement, then Council Current Portion 4,259 3,377 4,334 3,448 can apply to the Registrar of the High Court to have the
notes to the fi the to notes judgement enforced by sale of lease or the rating unit. Term Portion 0 654 0 654
126 Buller District Council • Annual Report year ending 30 June 2011 2010/2011 2009/2010
Gross Impairment Net Gross Impairment Net $000 $000 $000 $000 $000 $000
Council Not past due 2,843 0 2,843 2,648 90 2,558 Past due 1-60 days 358 0 358 322 0 322 Past due 61-120 days 113 0 113 31 1 30 Past due > 120 days 1,079 134 945 1,154 33 1,121 TOTAL $4,393 $134 $4,259 $4,155 $124 $4,031
Group statements nancial Not past due 2,748 0 2,748 2,516 0 2,516 Past due 1-60 days 425 0 425 424 0 424 Past due 61-120 days 126 0 126 42 1 41 Past due > 120 days 1,079 44 1,035 1,154 33 1,121 TOTAL $4,378 $44 $4,334 $4,641 $34 $4,102
The doubtful debt provision has been calculated based on expected losses for Council’s pool of debtors. Expected losses have been determined based on an analysis of Council’s losses in previous periods, and review of specifi c
debtors as detailed below: notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 127 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Individual Impairment 134 124 44 34 Collective Impairment 0000
Total Provision for $134 $124 $44 $34 Impairment Individually impaired receivables have been determined to be impaired because of the signifi cant fi nancial diffi culties being experienced by the debtor. An analysis of these individually impaired debtors are as follows.
Parent Group
2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Past Due 1-60 days 0900 0
nancial statements nancial Past due 61-120 days 0101 Past due > 120 days 134 33 44 33 Movement in the provision for impairment of receivables are as follows: Total Individual $134 $124 $44 $34 Parent Group Impairment 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
At 1 July 124 30 124 30 Additional provisions 44 124 44 34 made during the year Provisions reversed (34) (30) (124) (30) during the year
notes to the fi the to notes Receivables written- 0000 off during the period At 30 June $134 $124 $44 $34
Buller District Council holds no collateral as security or other credit enhancements over receivables that are either past due or impaired.
128 Buller District Council • Annual Report year ending 30 June 2011 NOTE 10: Other Current Assets
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $$$$
Work In Progress 3161 Prepayments 234 20 291 35
$237 $21 $297 $36
nancial statements nancial notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 129 NOTE 11: Non Current Assets held for sale
As at 30 June 2011 the assets held for sale, being surplus to requirements are listed below.
(2010:There are currently no assets held for sale as at 30 June 2010. The Solid Energy Centre was sold to Buller Holdings Limited
On 1 July 2010. The Harbour operation has not been sold and remains under Council control as at 30 June 2010.
Council is looking at other options for administering the Harbour operations including an operating lease arrangement.(See Note 28).
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Non-current assets held for sale are;
nancial statements nancial Investment Land 1,500 0 1,500 0 Westport Transfer Station Portable Weighbridge 36 0 36 0
Total Assets Held for Sale 1,536 0 1,536 0 notes to the fi the to notes
130 Buller District Council • Annual Report year ending 30 June 2011 NOTE 12: Investments
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Buller Holdings Ltd 17,288 17,570 0 0 Loans and Receivables 3,110 2,470 0 -0 Other Share Investments 31 38 32 38 Investment in Associate 008752 Bond Deposits 80 80 80 80 $20,509 $20,158 $199 $170
2011: On 1 September Council sold land to Westport Harbour Limited and in consideration Buller Holdings Limited issued 1,118,000 shares to Council with a par value of $1. The assets were sold at market value with the valuation carried out by Quotable Value New Zealand.
Buller District Council investment in Buller Holdings Limited was impaired by $1.4m during the year due to the written down in the value of Buller Holdings’ investment in statements nancial Buller Recreation Limited assets.
(2010:On 1 July 2009 Council sold the assets of the Solid Energy Centre to Buller Recreation Limited in consideration Buller Holdings Limited issued 17,570,000 shares to Council with a par value of $1. The assets were sold at market value with the valuation carried out by Coast Valuations Limited. The transaction had the following effect on Councils assets and liabilities on acquisition date:)
2010/2011 2009/2010 Section 63 of the Local Government Act states that a Local Authority must not lend money or provide any other fi nancial accommodation $000 $000 to a CCTO on terms and conditions more favourable to a CCTO than those that would apply if the Local Authority was borrowing the Investments acquired -shares issued by Buller Holdings Limited 1,118 17,570 money. Investments acquired -Advances and Loans
300 0 fi the to notes The District Council has lent money to Westport Harbour Limited 1,418 17,570 at an interest rate of 2% pa. This rate is considered to be more Consideration paid: favourable than the rate that the Distrit Council could have obtained Property Plant and Equipment transferred at cost 876 16,583 when borrowing money. This is a breach of Section 63 of the Local Government Act 2002. Gain on Sale recognised in Surplus 542 987 1,418 17,570 Council has agreed in principal with Westport Harbour Ltd that market based interest rates will be charged effective 01 July 2011.
Buller District Council • Annual Report year ending 30 June 2011 131 Investment Property Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Balance at 1 July 15,328 15,605 15,328 15,605
Transfers (1,500) 0 (1,500) 0 Post balance date we have identifi ed investment property of Disposals/Adjustments (1,966) (745) (1,966) (745) $276,000 which meets the defi nition of an asset held for sale, Fair value gains/(losses) on valuation 141 468 141 468 should this have been classifi ed as held for sale this would give rise to an impairment of $62,000.
Balance 30 June $12,003 $15,328 $12,003 $15,328 Buller District Council investment properties are valued annually at fair value efective 30 June. All investment properties were valued based on open market evidence in July 2011. The valuation was performed by Darroch Valuations, an independent valuer.
nancial statements nancial Darroch Valuations are an experienced valuer with extensive market knowledge in the types of investment properties owned Investment Property - Income and expenses by Council. The total value of investment property valued by Darroch Valuations as at 30 June 2011 was $12,003,000 (2010: $15,327,500). Parent Group As at 30 June 2011 there were a total of 23 leasehold properties with a sale value of $1,480,800 lodged at Council’s solicitors Actual Actual Actual Actual pending completion of sale . 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000 The fair value of loans to related parties is $3,607,281 (2010: $2,469,108). Fair value has been determined using cash fl ows discounted at a rate based on market interest rates including an Rental Income from Investment Property 126 119 126 119 additional risk to take into account the specifi c risks of each loan. Direct Expenses from Income Generating 0505The interest rate on the loan of $2,363,860 to Buller Holdings Ltd notes to the fi the to notes Investment Property is 3.72%. The interest rate on the loan of $200,000 to Westport Direct Expenses from Non-income 0000Harbour Ltd is 4.02%. Weighted average of low interest loans to Generating Investment Property community organisations is 4.6%
132 Buller District Council • Annual Report year ending 30 June 2011 NOTE 13: P roperty, Plant and Equipment - Council 2011
Infrastructure Cost/ Accumulated Carrying Current Current Year Transfer Accumulated Current Year Transfers/ Revaluation Cost/ Accumulated Carrying Assets Revaluation Depreciation Amount Year Disposals / (to)/from Depreciation Depreciation Others Gains Revaluation Depreciation Amount 01-07-10 01-07-10 Addition Impairment Assets on Disposals 30-06-11 30-06-11 30-06-11 Charges Held for Sale $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land under roads 19,246 0 19,246 0000000 19,246 0 19, 246 Sewerage 24,823 0 2 4,823 132 (29) 0 0 (563) 0 0 24,926 (5 63) 24,363 Stormwater 7, 4 28 0 7,428 223 (16) 0 0 (155) 0 0 7 ,635 (155) 7,48 0 Roads and bridges 185,51 7 0 185,517 1,569 (375) 0 0 (2,603) 0 0 18 6,711 (2,603) 184,108 Water supplies 17 ,459 0 17,459 749 (152) 0 0 (521) 0 0 18,056 (52 1) 17, 535 Airport runway 174 (63) 111 0 0 0 0 (8) 0 0 174 (71 ) 103 Landfills/Transfer Stns 1,461 (274) 1,187 392 0 (36) 0 (70) 48 0 1, 860 (339) 1,521 Wharves 1,873 (374) 1,499 0 0 0 0 (31) 144 0 2,103 (491) 1,612 Work in Progress 770 0 770 495 0 0 0 0 (48 )01,217 0 1,217
$258,751 $(711) $258,040 $3,560 $(572) $(36) $0 $(3,951) $144 $0 $261,928 $(4,743) $257,185 nancial statements nancial Other Fixed Cost/ Accumulated Carrying Current Current Year Transfer Accumulated Current Year Transfers/ Revaluation Cost/ Accumulated Carrying Assets Revaluation depreciation Amount year Disposals / (to)/from Depreciation Depreciation Others Gains Revaluation Depreciation Amount 01-07-10 01-07-10 Addition Impairment Assets on disposals 30-06-11 30-06-11 30-06-11 Charges Held for Sale $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land 4,238 0 4,238 0 (675) 0 0 0 0 0 3,563 0 3,563 Leasehold 000000000 0 0 00 improvements Buildings 14,272 (3 ,189) 11, 083 680 (367) 0 119 (405) (135) 0 14 ,423 (3,448 ) 10,975 Office equipment, 1,508 (1,251) 257 66 0 0 0 (65) 0 0 1,574 (1,316) 258 furniture & fittings Vehicles 383 (178) 205 157 0 0 0 (39) 0 0 540 (217) 323
Library books 539 (295) 244 55 0 0 0 (57) 0 0 594 (352) 242 notes to the fi the to notes Plant and equipment 2, 028 (1,308) 720 7 0 0 0 (135) 0 0 1,976 (1,384) 592 Other assets 2,084 (783) 1,301 226 0 0 0 (119) 0 0 2,310 (902) 1,408 Vessels 4,385 (3,741) 644 0 0 0 0 (366 )0 04,385 ( 4,107) 278 Work in progress 605 06054720 00 (9) 0 0 1,068 0 1,068 $30,042 $(10,745) $1 9,297 $1,663 $(1,042 ) $0 $119 $(1,186) $(144) $0 $30 ,433 $(11,726) $18,707
Total $ 288,793 $(11,456) $277,337 $5,223 $( 1,614) $(3 6) $119 $( 5,137) $0 $0 $292,361 (16,469) $275 ,892
Buller District Council • Annual Report year ending 30 June 2011 133 NOTE 13: P roperty, Plant and Equipment - Group 2011
Infrastructure Assets Cost/ Accumulated Carrying Current Current Year Transfer Accumulated Current Year Transfers/ Revaluation Cost/ Accumulated Carrying Revaluation Depreciation Amount Year Disposals / (to)/from Depreciation Depreciation Others Gains Revaluation Depreciation Amount 01-07-10 01-07-10 Addition Impairment Assets Held on Disposals 30-06-11 30-06-11 30-06-11 Charges for Sale $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land under roads 19,246 0 19,246 0 0 0 0 0 0 0 19,246 0 19,246 Sewerage 24,823 0 24,823 114 (29) 0 0 (563) 0 0 24,908 (563) 24,345 Stormwater 7,428 0 7,428 198 (16) 0 0 (155) 0 0 7,610 (155) 7,455 Roads and Brdiges 185,517 0 185,517 1,415 (375) 0 0 (2,603) 0 0 186,557 (2,603) 183,954 Water supplies 17,459 0 17,459 661 (152) 0 0 (521) 0 0 17,968 (521) 17,447 Airport runway 174 (63) 111 0 0 0 0 (8) 0 0 174 (71) 103 Landfills/Transfer Stations 1,461 (274) 1,187 382 0 (36) 0 (70) 48 0 1,850 (339) 1,511 Wharves 1,873 (374) 1,499 0 0 0 0 (31) 144 0 2,104 (491) 1,613 Work in Progress 770 0 770 495 0 0 0 0 (48) 0 1,217 0 1,217
$258,751 $(711) $258,040 $3,265 $(572) $(36) $0 $(3,951) $144 $0 $261,634 $(4,743) $256,891 nancial statements nancial Cost/ Accumulated Carrying Current Current Year Transfer Accumulated Current Year Transfers/ Revaluation Cost/ Accumulated Carrying Other Fixed Assets Revaluation Depreciation Amount Year Disposals / (to)/from Depreciation Depreciation Others Gains Revaluation Depreciation Amount 01-07-10 01-07-10 Addition Impairment Assets Held on Disposals 30-06-11 30-06-11 30-06-11 Charges for Sale $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land 4,547 0 4,547 0 0 0 0 0 0 0 4,547 0 4,547 Buildings 30,226 (3,867) 26,359 970 (93) 0 22 (1,024) (1,844) 0 29,196 (4,806) 24,390 Office Equipment, 1,918 (1,337) 581 97 (32) 0 28 (150) (2) 0 1,983 (1,461) 522 Furniture & Fittings Vehicles 3,267 (1,989) 1,278 876 (546) 0 491 (298) 0 0 3,597 (1,796) 1,801 Library Books 539 (295) 244 55 0 0 0 (57) 0 0 594 (352) 242 Plant and Equipment 2,853 (1,877) 976 90 (237) 0 237 (203) 273 0 2,932 (1,796) 1,136
Other Assets 2,001 (800) 1,201 260 0 0 0 (109) 1,310 0 3,620 (958) 2,662 notes to the fi the to notes Vessels 4,385 (3,741) 644 0 0 0 0 (366) 0 0 4,385 (4,107) 278 Leasehold Improvements 0000000000000 Work in Progress 604 0 604 472 0 0 0 0 (10) 0 1,066 0 1,066 $50,340 $(13,906) $36,434 $2,820 $(908) $0 $778 $(2,207) $(273) $0 $51,920 $(15,276) $36,644
Total $309,091 $(14,617) $294,474 $6,085 $(1,480) $(36) $778 $(6,158) $(129) $0 $313,554 $(20,019) $293,535
134 Buller District Council • Annual Report year ending 30 June 2011 NOTE 13: P roperty, Plant and Equipment - Council 2010
Infrastructure Cost/ Accumulated Carrying Current Current Year Transfer Accumulated Current Year Transfers/ Revaluation Cost/ Accumulated Carrying Assets Revaluation Depreciation Amount Year Disposals / (to)/from Depreciation Depreciation Others Gains Revaluation Depreciation Amount 01-07-09 01-07-09 Addition Impairment Assets on Disposals 30-06-10 30-06-10 30-06-10 Charges Held for Sale $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land under roads 19,246 0 19,246 0 0 0 0 0 0 0 19,246 0 19,246 Sewerage 24,547 (465) 24,082 831 0 0 0 (534) 0 444 24,823 0 24,823 Stormwater 7,096 (141) 6,955 111 0 0 0 (147) 0 509 7,428 0 7,428 Roads and Bridges 182,211 (2,212) 179,999 2,298 0 0 0 (2,237) 9 5,448 185,517 0 185 ,517 Water supplies 17,145 (504) 16,641 810 0 0 0 (534) 0 542 17,459 0 17,459 Airport runway 174 (55) 119 0 0 0 0 (8) 0 0 174 (63) 111 Landfills/Transfer Stns 1,028 (206) 822 140 0 0 0 (68) 293 0 1,461 (274) 1,187 Wharves 0 0 0 0 0 1,530 0 (31) 0 0 1,873 (374) 1,499 Work in Progress 598 0 598 474 0 0 0 0 (302) 0 770 0 770
$252,045 $(3,583) $248,462 $4,664 $0 $1,530 $0 $(3,559) $0 $6,943 $258,751 $(711) $258,040 nancial statements nancial
Other Fixed Cost/ Accumulated Carrying Current Current Year Transfer Accumulated Current Year Transfers/ Revaluation Cost/ Accumulated Carrying Assets Revaluation depreciation Amount year Disposals / (to)/from Depreciation Depreciation Others Gains Revaluation Depreciation Amount 01-07-10 01-07-10 Addition Impairment Assets on disposals 30-06-10 30-06-10 30-06-10 Charges Held for Sale $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land 3,351 0 3,351 0 0 887 0 0 0 0 4,238 0 4,238 Buildings 10,751 (2,987) 7,764 2,673 (277) 337 248 (342) 680 0 14,272 (3,189) 11,083 Office Equipment, 1,405 (1,161) 244 178 (19) 0 12 (102) (56) 0 1,5 08 (1,251) 257 Furniture & Fittings Vehicles 132 (129) 3 200 0 12 0 (10) 0 0 383 (178) 205 Library Books 488 (244) 244 51 0 0 0 (51) 0 0 539 (295) 244
Plant and Equipment 999 (729) 270 406 (9) 15 4 6 (112) 5 0 2,028 (1,308) 720 fi the to notes Other Assets 1,533 (699) 834 223 (10) 0 2 (86) 338 0 2,084 (783) 1,301 Vessels 4,333 (3,622) 711 52 0 0 0 (119) 0 0 4,385 (3,741) 644 Work in Progress 1,563 0 1,563 65 (0) (0) 0 0 (1,023) 0 605 0 605 24,555 (9,571) 14,984 3,848 (315) 1,390 268 (822) (56) 0 30,042 (10,745) 19,297
Total $276,600 $(13,154) $263,446 $8,512 $(315) $2,920 $268 $(4,381) $(56) $6,943 $288,793 $(11,456) $277,337
Buller District Council • Annual Report year ending 30 June 2011 135 NOTE 13: P roperty, Plant and Equipment - Group 2010
Infrastructure Cost/ Accumulated Carrying Current Current Year Transfer Accumulated Current Year Transfers/ Revaluation Cost/ Accumulated Carrying Assets Revaluation Depreciation Amount Year Disposals / (to)/from Depreciation Depreciation Others Gains Revaluation Depreciation Amount 01-07-09 01-07-09 Addition Impairment Assets on Disposals 30-06-10 30-06-10 30-06-10 Charges Held for Sale $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land under roads 19,246 0 19,246 0 0 0 0 0 0 0 19,246 0 19,246 Sewerage 24,547 (465) 24,082 803 0 0 0 (534) 0 472 24,823 0 24,823 Stormwater 7,096 (141) 6,955 107 0 0 0 (147) 0 513 7,428 0 7,428 Roads and Bridges 182,211 (2,212) 179,999 2,228 0 0 0 (2,237) 9 5,518 185,517 0 185,517 Water supplies 17,145 (504) 16,641 772 0 0 0 (534) 0 580 17,459 0 17,459 Airport runway 174 (55) 119 0 0 0 0 (8) 0 0 174 (63) 111 Landfills/Transfer 1,028 (206) 822 122 0 0 0 (68) 293 18 1,461 (274) 1,187 Stns Wharves 1,873 (343) 1,530 0 0 0 0 (31) 0 0 1,873 (374) 1,499 Work in Progress 598 0 59 8 474 0 0 0 0 (302) 0 770 0 770
$ 253,918 $ (3,926) $ 249,992 $ 4,506 $ 0 $ 0 $ 0 $ (3,559) $0 $7,101 $258,751 $(711) $258, 040 nancial statements nancial ` Other Fixed Cost/ Accumulated Carrying Current Current Year Transfer Accumulated Current Year Transfers/ Revaluation Cost/ Accumulated Carrying Assets Revaluation depreciation Amount year Disposals / (to)/from Depreciation Depreciation Others Gains Revaluation Depreciation Amount 01-07-09 01-07-09 Addition Impairment Assets on disposals 30-06-10 30-06-10 30-06-10 Charges Held for Sale $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Land 4,547 0 4,547 0 0 0 0 0 0 0 4,547 0 4,547 Buildings 24,523 (3,205) 21,318 2,959 (277) 0 248 (910) 3,021 0 30,226 (3,867) 26,359 Office Equipment, 1,910 (1,288) 622 204 (42) 0 34 (18 1) (56 ) 0 1,918 (1,337) 581 Furniture & Fittings Vehicles 2,886 (1,939) 947 570 (189) 0 188 (238) 0 0 3,267 (1,989) 1,278 Library Books 488 (244) 244 51 0 0 0 (51) 0 0 539 (295) 244 Plant and Equipment 2,418 (1,729) 689 439 (9) 0 6 (154) 5 0 2,853 (1,877) 976
notes to the fi the to notes Other Assets 3,895 (720) 3,175 170 (61) 0 2 (82) (2,003) 0 2,001 (800 ) 1,201 Vessels 4,333 (3,622 ) 711 52 0 0 0 (119) 0 0 4,385 (3,741) 644 Leasehold 93 (76) 17 0 (93) 0 82 (6) 0 0 0 0 0 Improvements Work in Progress 1,562 0 1,562 65 (0) 0 0 0 (1,023) 0 604 0 604 46,655 (12,82 3) 33,832 4,510 (671) 0 560 (1,741) (56) 0 50,340 (13,906) 36,434
Total $300,573 $(16,749) $283,824 $9,016 $(671) $0 $560 $(5,300) $(56) $7,101 $309,091 $(14,617) $294,474
136 Buller District Council • Annual Report year ending 30 June 2011 NOTE 14: Intangible Assets
Parent Group
Computer Total Goodwill Software Total Software & Licences Licences $000 $000 $000 $000 $000
Cost Balance at 1 July 2009 0 0 698 0 698 Transfers 154 154 0 0 154 Additions 40 40 0 0 40 Disposals 00000 Balance at 30 June 2010 194 194 698 0 892
Balance at 1 July 2010 194 194 698 0 892 Goodwill has been assessed for impairment during the year. Due to Transfers 00000the performance of the subsidiary Additions 94 94 30 10 134 during the period it was determined Disposals 00000that goodwill was not impaired.
Balance at 30 June 2011 288 288 728 10 1,026 statements nancial
Accumulated Amortisation and Impairment Balance at 1 July 2009 00000 Transfers 99 99 0 0 99 Amortisation charge 42 42 0 0 42 Disposals 00000 Balance at 30 June 2010 141 141 0 0 141
Balance at 1 July 2010 141 141 0 0 141 Transfers 00000 Amortisation charge 62 62 0 4 66
Disposals 00000 fi the to notes Balance at 30 June 2011 203 203 0 4 207
Carrying Amounts Balance at 30 June 2010 53 53 698 0 751
Balance at 30 June 2011 85 85 728 6 819
Buller District Council • Annual Report year ending 30 June 2011 137 NOTE 15: Trade and Other Payables
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Trade payables $1,758 $2,628 $2,801 $3,494
Amounts due to related parties: WestReef Ltd 50675800 Buller Arts & Recreation Trust 0000 Buller Health Trust 0000 Buller Holdings Ltd 0700 Buller Recreation Ltd 715400
Westport Harbour Ltd 0000 nancial statements nancial
Revenue Received in Advance 1,368 979 1,251 884
TOTAL Trade and Payables $3,702 $4,426 $4,052 $4,378
Trade and other payables are non-interest bearing and are normally settled on 30 day terms, therefore the carrying value of creditors and other payables
approximates their fair value. notes to the fi the to notes
138 Buller District Council • Annual Report year ending 30 June 2011 NOTE 16: Derivative Financial Instrument
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Current Liability Portion Interest Rate Swaps 021021
Total Current Liability Portion $0 $21 $0 $21
Non Current Liability Portion Interest Rate Swaps 643 414 643 414
Total Non Current Liability Portion $643 $414 $643 $414 nancial statements nancial
The notional principal amounts of the outstanding interest rate swap contracts at 30 June 2011 were $15,000,000 (2010: 15,830,860).
At 30 June 2011 the fi xed interest rates of interest rate swaps vary from 4.89% to 5.59% (2010: 5.18% to 6.99%).
The interest rate swaps have been included at fair value.
The termination date of the interest rate swap contracts of $15,000,000 at 30 June 2011 vary from 31 March 2013 to 31 March 2016 (2010: 30 September 2010
to 31 March 2015). notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 139 NOTE 17: Employment Benefi t Liabilities
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Accrued pay 132 119 132 119 Annual Leave & Long service leave 333 424 845 777 Retirement gratuities 133 91 284 222 Sick leave 0000 Total employee benefit liabilties $598 $ 634 $1,261 $ 1,118
Comprising: Current 437 515 947 831 Non-current 161 119 314 287
nancial statements nancial Total employee benefit liabilities $598 $634 $1,261 $1,118 notes to the fi the to notes
140 Buller District Council • Annual Report year ending 30 June 2011 NOTE 18: Borrowings
Parent Group
Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Current Fixed -rate debt Bank overdraft 216 0 216 0 Buller District Council’s secured debt of $15,000,000 (2010: Secured loans 0 22,274 0 22,274 $15,830,860) is issued at fi xed rates of interest by way of interest Total current borrowings $216 $22,274 $216 $22,274 rate swaps.
Non-current Floating-rate debt Secured loans 23,024 0 23,024 0 Buller District Council’s debt of $8,023,860 (2010: $6,443,000) Total non-current borrowings $23,024 $0 $23,024 $0 is at a fl oating interest rate. The interest is set quarterly at the 90-day bill rate + 0.11%.
Total Borrowings $23,240 $22,274 $23,240 $22,274 statements nancial The debt is due to be repaid in 2012, at which time the terms and conditions may be renegotiated.
Security The overdraft is secured by a general security agreement. The maximum amount that can be drawn down against the overdraft facility is $1,250,000 (2010: $1,250,000). There are no restrictions on the use of this facility.
Council’s loans are secured over either separate or general rates
of the district. notes to the fi the to notes Refi nancing Council manages its borrowings in accordance with its funding and fi nancial policies, which includes a Treasury policy. These policies have been adopted as part of Council’s Long-Term Council Community Plan 2009-2019.
Buller District Council • Annual Report year ending 30 June 2011 141 Maturity analysis and effective interest rates The following is a maturity analysis of Council’s borrowings
Overdraft Overdraft Secured 2010/2011 Council Group Loans Council and Group $000 $000 $000
Less than one year 216 216 0 Wweighted average effective interest rate 8.3% 8.3% 3.8% Later than one year but not more than five years 0 0 23,024 Weighted average effective interest rate 0% 0% 5.6% Later than five years 000 Weighted average effective interest rate 0% 0% 0%
$216 $216 $23,024 nancial statements nancial Overdraft Overdraft Secured Loans 2009/2010 Council Group Council and Group $000 $000 $000
Less than one year 0 0 22,274 weighted average effective interest rate 0% 0% 5.5% Later than one year but not more than five years 000 weighted average effective interest rate 0% 0% 0% Later than five years 000Fair value of non-current borrowings weighted average effecitve interest rate 0% 0% 0% The carrying amounts of borrowings are at market interest rates and approximate their fair values.
$0 $0 $22,274 notes to the fi the to notes
142 Buller District Council • Annual Report year ending 30 June 2011 NOTE 19: Provisions
Landfi ll Contaminated Total Total Environmental Aftercare Site Environmental Environmental Provision Provision Remediation Provisions Provisions 2010/2011 2010/2011 2010/2011 2009/2010 $000 $000 $000 $000
Opening Balance $1,578 $9 $1,587 $1,311 Additional Provisions 00 00 Amounts Used (18) 0 (18) (16) Unused Provision Reversed (36) 0 (36) (54) The expected closure dates for Council’s Discounting Changes 111 0 111 347 landfi ll sites are as follows: Closing Balance $1,635 $9 $1,644 $1,587 Council and Group Westport - Closed 2008 but still to be capped Birchfi eld - Closed 2005 Landfi ll Aftercare Provision statements nancial Karamea - 2010 (Council has received a resource consent Council has responsibility under its resource consents to provide ongoing maintenance and monitoring of for an additional 30 years) its landfi lls after the sites are closed. Council’s closure and post closure responsibilities include: Ikamatua - Closed 2005 Charleston - 2010 Mawheraiti - Closed 2005 Closure responsibilities: Inangahua - 2010 - Lay cover and revegetation - Drainage control Reefton - Closed 2005 - Water quality monitoring Maruia - 2021
The cash outfl ows for landfi ll post-closure costs have been Post Closure responsibilities: estimated to occur for a period of 35 years from the closure of the - Ground and surface water quality monitoring site. The long term nature of the liability means that there are inherent uncertainties in estimating costs that will be incurred. - Landfi ll gas monitoring fi the to notes - Site maintenance The provision has been estimated taking into account existing - Mitigation of environmental effects identifi ed technology and is discounted using a discount rate of 5.04% based - Annual reporting in accordance with consent conditions on NZ Government Bond rates (2010: 5%).
Buller District Council • Annual Report year ending 30 June 2011 143 NOTE 20: Accumulated Funds
Parent Group
2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Opening Balance as at 1 July $174,806 $173,072 $172,747 $173,483
Net Surplus (Deficit) for the Period (3,144) 2,033 (3,059) (437) Transfer from Reserves 1,175 525 1,175 525 Transfer to Reserves (889) (824) (889) (824)
Balance at 30 June $171,948 $174,806 $169,974 $172,747
nancial statements nancial notes to the fi the to notes
144 Buller District Council • Annual Report year ending 30 June 2011 NOTE 21: Reserves
Parent Group
2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Balance as at 1 July $2,227 $1,928 $2,227 $1,928
Add: Transfer from Accumulated Funds 889 824 889 824
$3,116 $2,752 $3,116 $2,752
Less: Transfer to Accumulated Funds (1,175) (525) (1,175) (525)
Balance at 30 June $1,941 $2,227 $1,941 $2,227 statements nancial notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 145 NOTE 22: Asset Revaluation Reserves
Parent Group
2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Opening Balance as at 1 July $121,499 $114,556 $121,658 $114,556
Change in Asset Values through Comprehensive Income 122 6,943 122 7,102
Closing Balance as at 30 June $121,621 $121,499 $121,780 $121,658
Comprising: Library Books 258 258 258 258 Roads and Bridges 101,942 101,991 102,012 102,061
Sewerage 6,724 6,357 6,752 6,385 nancial statements nancial Stormwater 5,536 5,535 5,540 5,539 Water Supplies 7,146 7,335 7,184 7,373 Landfill 0 0 19 19 Investment Revaluation Reserve 15 23 15 23
Balance at 30 June $121,621 $121,499 $121,780 $121,658 notes to the fi the to notes
146 Buller District Council • Annual Report year ending 30 June 2011 NOTE 23: Related Party Transactions and Balances Buller District Council is the ultimate parent of the group and control four entities, being WestReef, Buller Holdings Limited, Westport Airport Authority, Buller Health Trust and Buller Arts and Recreational Trust and Buller Recreation Limited.
The following transaction were carried out with related parties: Actual Actual Actual Actual 2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
WestReef Ltd Westport Airport Authority Services provided by Council during the year 165 161 Services provided by Council during the year 39 36 Services provided to Council during the year 6,760 5,939 Services provided by Westreef during the year 13 16 Accounts payable to Council at 30 June 67 7 Rates, lease and interest charges paid to 1 15 Council during the year Accounts receivable from Council at 30 June 506 758 Current account balance owed (to) from 106 123 Sponsorship towards Vision 2010 60 60 Council at 30 June Accounts payable to WestReef at 30 June 1 2 Buller Recreation Contribution to Airport by Council 0 399 Service level fee paid by Council to Buller 738 581 Recreation Lease Payments made to Westport Harbour Ltd 3 0
during the year statements nancial Energy Subsidy paid by Council to Buller 157 281 Recreation Westport Harbour Limited Services provided to Council during the year 1 51 Lease and interest charges paid to Council 206 0 Services provided by Council during the year 19 19 during the year Grants provided by Council during the year 1 0 Loans owed to Council at 30 June 200 0 Accounts payable to Council at 30 June 16 6 Advances relating to purchase of business 717 0 Accounts receivable from Council at 30 June 71 54 Accounts payable to Council at 30 June 74 0 Loan by Council To Buller Recreation repaid on 0 86 Advances relating to purchase of business 300 0 30 June (current receivable)
Buller Holdings Limited Buller Health Trust Services provided to Council during the year 0 75 Services provided by Council during the year 0 0
Accounts payable to Council at 30 June 88 92 Interest paid to Council during the year 13 11 fi the to notes Accounts receivable from Council at 30 June 0 7 Loans owed to Council at 30 June 187 196 Loans owed to Council at 30 June 2,364 2,364 Accounts payable to Council at 30 June 9 0 Dividends paid to Council during the year 980 0 Interest Expenses paid to Council 88 92 Total Shares Issued to Council 18,688 17,570 Shares issued during the year 1,118 0
Buller District Council • Annual Report year ending 30 June 2011 147 Actual Actual 2010/2011 2009/2010 $000 $000
Buller Arts and Recreation Trust Funds paid to Council 105 439 Key Management and Members of Council Councillor Pat McManus is a Director/Owner of Rainbow Cake Kitchen. During the Denniston Heritage Trust period goods to the value of $2,459 were provided to Council (2010: $2,427). In Funds paid by Council 0 250 addition services to the value of $62 were provided by Gibbys Café (2010: $698)
Councillor Margaret Montgomery is an Owner of Westport Holiday Park. During the period goods and services to the value of $209 were provided to Council (2010: $nil) Debts between related parties that have been provisioned as doubtful debts or written down during the period include a $67,000 write down in the face value of Councillor Dave Hawes is an Owner of Pennyweight Nursery. During the period no advances made to Westport Harbour Limited (2010: A total of $101,000 in debts goods or services were provided to Council (2010: $4,282) were written off or forgiven during the period, including an impairment for an advance made to Buller Health Trust of $90,000). Councillor Peter Campbell is a Principal of Campbell And Associates. During the period goods and services to the value of $2,318 were provided to Council (2010: $nil). At
nancial statements nancial In addition there are administration services provided by Council to Buller Health a Group level goods and services to the value of $6,537 were provided to Council Trust during the year for no consideration. controlled entities (2010: $16,886).
Key management personnel compensation Actual Actual 2010/2011 2009/2010 $000 $000
Salaries and other short term employee benefits 761 721 Post Employment, Other Long Term Benefits and 00
share Based Payments notes to the fi the to notes $761 $721
Key management personnel include the Mayor, Councillor’s, Executive and other senior management personnel.
148 Buller District Council • Annual Report year ending 30 June 2011 NOTE 24: Statement of Financial Involvements in CCTOS and other Companies or Organisations
The Council has a significant interest in the following entities:
Entity Ownership Status Principal Activities Interest held by Council Westreef Services Limited Subsidiary CCTO Infrastructure Maintenance & 100% Construction Buller Holdings Limited Subsidiary CCTO Ownership of Selected Council 100% Assets and Investments Westport Harbour Limited Subsidiary CCTO Port Operations 100% Buller Recreation Limited Subsidiary CCTO Sports & Recreation Facilities 100% Buller Health Trust Controlled CCO Dental Services 100% Buller Arts & Recreation Trust Controlled Controlled Charitable Trust 100% Westport Airport Authority Joint Venture CCO Airport Operation 50%
Tourism West Coast (INC) Associate Exempted Incorporated Society 29% statements nancial as a CCO Denniston Heritage Trust Associate Trust Incorporated Society 29%
CCTO: Council Controlled Trading Organisation
CCO: Council Controlled Organisation
Council passed a resolution to exempt Tourism West Coast as a Council Controlled Organisation as is permitted
under the Local Government Act (2002). fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 149 The cost to each of the above enterprises for the fi nancial interest, fi nance or fi nancial assistance of Council is Tourism West Coast 2010/2011 2009/2010 $000 $000 Dividends Interest/ Total Total Grants Revenue 512 535 2010/2011 2010/2011 2010/2011 2009/2010 Profit/ (Loss) (27) 48 $000 $000 $000 $000 Total Assets 300 329 Westreef Services Limited 000 0Total Liabilities 33 35 Buller Recreation Limited 000 0Total Equity 267 294 Buller Holdings Limited 980 88 1,068 92 Westport Airport Limited 000399 Westport Harbour 022 0 Buller Health Trust 0131311 Buller Arts & Recreation Trust (Grant) 0105105439Westport Airport Authority Tourism West Coast (INC) 000 0Westport Airport Authority is proportionately consolidated on Denniston Heritage Charitable Trust 000250a line by line basis in the Parent Financial Statements. nancial statements nancial 980 208 1,188 1,191 In 2011 there were no contributions made by the joint venture The provision of fi nancial assistance by Buller District Council is by way of share capital in Westreef holders. (2010: There were equity contributions totalling Services Limited, Westport Harbour Limited and Buller Recreation Limited through Buller Holdings $798,806 by the joint venture holders.) Ltd and by way of a current account facility provided to the Westport Airport Authority. The current account facility is provided on normal commercial terms. The Council’s interest in Buller Health Buller District Council’s 50% share of its interest in the joint Trust is by way of loan. venture is detailed below.
2010/2011 2009/2010 $000 $000
Current Assets 98 Long Term Assets 2,815 2,868
notes to the fi the to notes Current Liabilities 47 Long Term Liabilities 00 Income 58 56 Expenses 112 102
150 Buller District Council • Annual Report year ending 30 June 2011 NOTE 25: Statement of Commitments, Contingent Liabilities and Contingent Assets
Parent Group • Westreef has made a commitment of $60,000 per year for fi ve years commencing 2009 to COMMITMENTS 2010/2011 2009/2010 2010/2011 2009/2010 Buller District Council for Vision 2010 in return $000 $000 $000 $000 for naming rights. The naming rights are contracted for a period of ten years expiring in 2018 . At balance date $60,000 is outstanding Capital Commitments Approved and Contracted $565 $125 $565 $125 on this commitment. (2010: $120,000)
Non-cancellable Operating Lease Commitments Motor Vehicles • Buller Health Trust has no commitments as at 30 June 2011 (2010: nil). Not later than a year 94 95 94 95 Later than one year but not later than five years 97 157 97 157
Later than five years 0000• Buller Holdings Ltd has no commitments as at
$191 $252 $191 $252 30 June 2011 (2010: nil). nancial statements nancial Office Equipment Not later than a year 14 14 14 14 • Buller Recreation Ltd has no commitments as at 30 June 2011 (2010: nil) Later than one year but not later than five years 0000 Later than five years 0000 $14 $14 $14 $14 • Westport Harbour Ltd leases land and buildings from Buller District Council. Operating lease revenue are as follows;
OPERATING LEASE REVENUE WITH $000 WESTPORT HARBOUR LIMITED
Less than a year 216 fi the to notes More than 1 year less than 2 216 More than 2 years less than 5 559 Greater than 5 years 3,690
Buller District Council • Annual Report year ending 30 June 2011 151 Other Contracts Contingent Liabilities The following contracts held by Westreef Services Limited with Council expired at 30 Contingent Liabilities for Council and the Group are as follows; June 2006. Council has a suspensory loan as at 30 June 2011 of $400,000 2010/2011 2009/2010 owing to Housing New Zealand. If Council decides not to proceed with planned pensioner housing upgrades then this amount is $000 $000 required to be paid back (2010: $400,000). Utility Services and Fire Fighting 667 994 Council was a member of Riskpool Insurance until 2007. Council is Parks, Reserves, and Cemetaries 74 9 78 4 liable for additional contributions to Riskpool for any underfunded Refuse Collection, Recycling and Landfill Operation 841 752 claims up until this date. $2,257 $2,530 Westreef had $64,000 in Performance Bonds outstanding with Westpac Trust as at 30 June 2011 (2010: $100,000). These contracts have a seven year right of renewal (except for Landfi ll Operation) subject to negotiation between the parties. It has been agreed that the existing Buller Health Trust has no contingent liabilities as at 30 June 2011 contracts be rolled over for a further year until further notice. (2010: nil).
Council’s Roading Network Maintenance Contract was tendered in August 2004 under Buller Holdings Limited has no contingent liabilities as at 30 June Transfund’s Competitive Pricing Procedures. The commitments under this contract are
nancial statements nancial 2011 (2010: nil). as follows. The contract’s fi rst period term expired on 30 June 2006 and the existing contract has been extended for subsequent renewable yearly terms since then. The Roading Network Maintenance Contract was updated as at 01 July 2010. Westport Harbour Ltd has no contingent liabilities as at 30 June 2011 (2010: nil).
Buller Arts & Recreation Trust and Tourism West Coast (INC) also have no contingent liabilities as at 30 June 2011 (2010: nil). 2010/2011 2009/2010 ROADING $000 $000 Council has one outstanding leaky home claim which council may be liable for and this amounts to approximately $80,000 (2010: Not later than one year $2,358 $2,261 $10,000).
notes to the fi the to notes Contingent Assets Buller District Council and Group has no contingent assets as at 30 June 2011. (2010: $431,000 Westport Sewerage contracts liquidated damages claims, $746,000 claims for increased wharfage charges at Westport Harbour from Holcim NZ Limited).
152 Buller District Council • Annual Report year ending 30 June 2011 NOTE 26: Capital Management
The Council’s capital is its equity (or ratepayers funds), which comprise retained earnings, reserves and asset revaluation reserves. Equity is represented by net assets.
The Local Government Act 2002 (the Act) requires Council to manage its revenues, expenses, assets, liabilities, investments, and general fi nancial dealings prudently and in a manner that promotes the current and future interests of the community. Ratepayer’s funds are largely managed as a by-product of managing revenues, expenses, assets, liabilties, investments, and general fi nancial dealings.
The objective of managing these items is to achieve intergenerational equity, which is a principle promoted in the Act and applied by the Council. Intergenerational equity requires today’s ratepayers to meet the costs of utilising the Council’s assets and not expecting them to meet the full cost of long term assets that will benefi t ratepayers in future generations. Additionally, the Council has in place asset managment plans for major classes of assets detailing renewal and maintenance programmes, to ensure ratepayers in future generations are not required to meet the costs of deferred renewals and maintenance.
The Act requires the Council to make adequate and effective provision in its Long Term Council Community Plan (LTCCP) and in its Annual Plan (where applicable) to meet the expenditure needs identifi ed in those plans. And the Act sets out the factors that Council is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding are set out in the Funding and Financial Policies in the Long Term Council Community Plan.
Buller District Council has the following Council created reserves: • Reserves for different areas of benefit;
• Self-insurance reserves; and nancial statements nancial • Trust and bequest reserves.
Reserves for different areas of benefi t are used where there is a discrete set of rate or levy payers as distinct from the general rate. Any surplus of defi cit relating to these separate areas of benefi t is applied to the specifi c reserves.
Self-insurance reserves are built up annually from general rates and are made available for specifi c unforseen events. The release of these funds generally can only be approved by Council.
Trust and bequest reserves are set up where Council has been donated funds that are restrcited for particular purposes. Interest is added to trust and bequest reserves
where applicable and deductions are made where funds have been used for the purpose they were donated. notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 153 NOTE 27: Financial Instruments
Parent Group
2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Financial Assets Loans and Receivables Cash and Cash Equivalents 506 879 1,818 2,352 Debtors and Other Receivables 4,259 4,031 4,334 4,102 Other Financial Assets: - Short Term Deposits 10,376 10,029 11,229 10,029 - Community Loans 0000 - Loans to Related Parties 3,110 2,470 0 0 Total Loans and Receivables 18,251 17,409 17,381 16,483
Fair Value Through Other Comprehensive Income
nancial statements nancial Other Financial Assets: - unlisted shares 31 38 32 38 Total Fair Value Through Other Comprehensive Income 31 38 32 38
Financial Liabilities Fair Value Through Surplus or Deficit - Held For Trading Derivative Financial Instrument Liabilities 643 435 643 435 Total Financial Liabilities At Fair Value Through Surplus or Deficit 643 435 643 435
Financial Liabilities At Amortised Cost Creditors And Other Payables 3,702 4,426 4,052 4,378 Borrowings:
notes to the fi the to notes - Bank Overdraft 216 0 216 0 - Secured Loans 23,024 22,274 23,024 22,274 Total Financial Liabilities At Amortised Cost 26,942 26,700 27,292 26,652
154 Buller District Council • Annual Report year ending 30 June 2011 Fair Value Heirarchy Disclosures For those instruments recognised at fair value in the statement of fi nancial position fair values are determined according to;
Valuation techniques using observable inputs (level 2) - Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and fi nancial instruments valued using models where all signifi cant inputs are observable.
Valuation techniques with signifi cant non-observable inputs (level 3) - Financial instruments valued using models where one or more signifi cant inputs are not observable.
Observable Signifi cant Total Observable Signifi cant Total Inputs Non- Inputs Non- obsevable obsevable Inputs Inputs $000 $000 $000 $000 $000 $000
Parent 2010/2011 Parent 2009/2010 Financial Assets Financial Assets
Unlisted Shares 03131Unlisted Shares 03838 nancial statements nancial Financial Liabilities Financial Liabilities Derivative Financial Instrument Liabilities 643 0 643 Derivative Financial Instrument Liabilities 435 0 435
Group 2010/2011 Group 2009/2010 Financial Assets Financial Assets Unlisted Shares 03232Unlisted Shares 03838
Financial Liabilities Financial Liabilities
Derivative Financial Instrument Liabilities 643 0 643 Derivative Financial Instrument Liabilities 435 0 435 notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 155 Financial Instrument Risks Fair Value Interest Rate Risk Buller District Council has a series of policies to manage the risks associated Fair value interest rate risk is the risk that the value of a fi nancial instrument will with fi nancial instruments. Council is risk averse and seeks to minimise fl uctuate due to changes in market interest rates. Borrowings issued at fi xed rates exposure from its treasury activities. Council has established Council Approved expose Council to fair value interest rate risk. Council’s Liability Management Liability Management and Investment Policies. These policies do not allow any Policy outlines the level of borrowing that is to be secured using fi xed rate transactions that are speculative in nature to be entered into. instruments. Fixed to fl oating interest rate swaps are entered into to hedge the fair value interest rate risk arising where Council has borrowed at fi xed rates. In addition, investments at fi xed interest rates expose Council to fair value interest rate risk. Market Risk Cashfl ow Interest Rate Risk Price Risk Cashfl ow interest rate risk that the cash fl ows from a fi nancial instrument will Price risk is the risk that the value of a fi nancial instrument will fl uctuate fl uctuate because of changes in market interest rates. Borrowings and investments as a result of changes in market prices. Council may be exposed to equity issued at variable interest rates expose Council to cash fl ow interest rate risk. securities price risk on its investments, which are classifi ed as fi nancial assets held at fair value through equity. This price risk on its investment portfolio in Council manages its cash fl ow interest rate risk on borrowings by using fl oating- accordance with the limits set out in Council’s Investment Policy. to-fi xed interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings at fl oating rates and swaps them into fi xed rates that are Council currently doesn’t hold listed equity instruments which are publicly generally lower than those available if Council borrowed at fi xed rates directly.
nancial statements nancial traded and included in the NZX50 equity index. Under the interest rate swaps, Council agrees with other parties to exchange, at specifi ed intervals, the difference between fi xed contract rates and fl oating rate interest amounts calculated by reference to the agreed notional principal Currency Risk amounts. Currency risk is the risk that the value of a fi nancial instrument will fl uctuate due to changes in foreign exchange rates. Council is not exposed to currency risk, as it does not enter into foreign currency transactions.
Interest Rate Risk The interest rates on Council’s investments are disclosed in Note 12 and on
Council’s borrowings in Note 18. notes to the fi the to notes
156 Buller District Council • Annual Report year ending 30 June 2011 Credit Risk Credit risk is the risk that a third party will default on its obligation to Council, causing Council to incur a loss. Council has no signifi cant concentrations of credit risk, 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.
Liquidity risk Liquidity risk is the risk that Council will encounter diffi culty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining suffi cient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Council aims to maintain fl exibility in funding by keeping committed credit lines available. Maximum Exposure to Credit Risk Buller District Council’s maximum exposure for each class of fi nancial instrument is as follows:
In meetings its liquidity requirements Council maintains statements nancial a target level of investments that must mature within the next 12 months. Council manages its borrowings Parent Group in accordance with its funding and fi nancial policies, which includes a Liability Management Policy. These 2010/2011 2009/2010 2010/2011 2009/2010 policies have been adopted as part of Council’s Long $000 $000 $000 $000 Term Council Community Plan.
Council has a maximum amount that can be drawn Cash at Bank and Term Deposits 10,882 10,908 13,047 12,381 against its overdraft facility of $1,250,000 (2010: Debtors and Other Receivables 4,259 4,031 4,434 4,102 $1,250,000). There are no restrictions on the use of this Community and Related Party Loans 3,110 2,470 0 0 facilty. Total Credit Risk 18,251 17,409 17,481 16,483 The maturity profi les of Council’s interest bearing
investments and borrowings are disclosed in Note 18. notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 157 Credit Quality of Financial Assets The credit quality of fi nancial assets that are neither past due nor impaired can be assessed by reference to Standard and Poors or Fitch credit ratings (if available) or to historical information about counterparty default rates:
Parent Group
2010/2011 2009/2010 2010/2011 2009/2010 $000 $000 $000 $000
Counterparties With Credit Ratings Cash at Bank and Term Deposits:
AA 7,414 7,440 9,579 8,913 BB 3,468 3,468 3,468 3,468
Total Cash at Bank and Term Deposits 10,882 10,908 13,047 12,381 nancial statements nancial Counterparties Without Credit Ratings Cash at Bank and Term Deposits:
Existing counterparty with no defaults in the past 0000
Total Cash at Bank and Term Deposits 0000
Community and Related Party Loans:
Existing counterparty with no defaults in the past 3,110 2,470 0 0
Total Community and Related Party Loans 3,110 2,470 0 0 notes to the fi the to notes
158 Buller District Council • Annual Report year ending 30 June 2011 Contractual Maturity Analysis of Financial Liabilities Carrying Contractual Less 1-2 2-5 More Amount Cash Flows than 1 Years Years Than 5 Year Years $000 $000 $000 $000 $000 $000
PARENT 2010/2011 Creditors and Other Payables 3,702 3,702 3,702 0 0 0 Net Settled Derivative Liabilities 643 643 0 162 481 0 Bank Overdraft 216 216 216 0 0 0 Secured Loans 23,024 24,130 8,326 15,804 0 0 Total 27,585 28,691 12,244 15,966 481 0
GROUP 2010/2011 Creditors and Other Payables 4,052 4,052 4,052 0 0 0 Net Settled Derivative Liabilities 643 643 0 162 481 0 Bank Overdraft 216 216 216 0 0 0 Secured Loans 23,024 24,130 8,326 15,804 0 0
Total 27.935 29,041 12,594 15,966 481 0 nancial statements nancial
PARENT 2009/2010
Creditors and Other Payables 4,426 4,426 4,426 0 0 0 Net Settled Derivative Liabilities 435 435 21 0 414 0 Bank Overdraft 000000 This table analyses Buller District Council’s Secured Loans 22,274 23,499 23,499 0 0 0 fi nancial liabilities into relevant maturity Total 27,135 28,360 27,946 0 414 0 groupings based on the remaining period at the balance date to the contractual maturity date. GROUP 2009/2010 Creditors and Other Payables 4,378 4,378 4,378 0 0 0 Future interest payments on fl oating rate debt
Net Settled Derivative Liabilities 435 435 21 0 414 0 is based on the fl oating rate on the instrument fi the to notes Bank Overdraft 000000at balance date. The amounts disclosed are the contractual undiscounted cash fl ows. Secured Loans 22,274 23,499 23,499 0 0 0 Total 27,087 28,312 27,898 0 414 0
Buller District Council • Annual Report year ending 30 June 2011 159 Contractual Maturity Analysis of Financial Assets Carrying Contractual Less 1-2 2-5 More Amount Cash Flows than 1 Years Years Than 5 Year Years $000 $000 $000 $000 $000 $000
Parent 2010/2011 Cash and Cash Equivalents 506 506 506 0 0 0 Debtors and Other Receivables 4,259 4,259 4,259 0 0 0 Other Financial Assets: - Short Term Deposits 10,376 10,671 10,671 0 0 0 - Loans to Related Parties 3,110 2,660 2,660 0 0 0 18,251 18,096 18,096 0 0 0
Parent 2009/2010 Cash and Cash Equivalents 879 879 879 0 0 0 Debtors and Other Receivables 4,031 4,031 3,377 654 0 0 Other Financial Assets:
- Short Term Deposits 10,029 10,738 10,738 0 0 0 nancial statements nancial - Loans to Related Parties 2,470 2,470 2,470 0 0 0 17,409 18,118 17,464 654 0 0
Group 2010/2011 Cash and Cash Equivalents 1,818 1,818 1,818 0 0 0 Debtors and Other Receivables 4,334 4,334 4,334 0 0 0 Other Financial Assets: - Short Term Deposits 11,229 11,229 11,229 0 0 0 - Loans to Related Parties 000000 17,381 17,381 17,381 0 0 0 This table analyses Buller District Council’s fi nancial assets into relevant maturity notes to the fi the to notes Group 2009/2010 groupings based on the remaining period at the balance date to the contractual Cash and Cash Equivalents 2,352 2,352 2,352 0 0 0 maturity date. The amounts disclosed are Debtors and Other Receivables 4,102 4,102 3,448 654 0 0 the contractual undiscounted cash fl ows. Other Financial Assets: - Short Term Deposits 10,029 10,029 10,029 0 0 0 - Loans to Related Parties 000000 16,483 16,483 15,829 654 0 0
160 Buller District Council • Annual Report year ending 30 June 2011 Financial Instrument Risks
Sensitivity Analysis The tables below illustrate the potential profi t and loss and equity (excluding retained earnings) impact for reasonably possible market movements, with all other variables held constant, based on Buller District Council’s fi nancial instrument exposures at the balance date.
2010/2011 2009/2010 $000 $000 Council Note -100bps +100bps -100bps +100bps Interest Rate Risk Profi tOther Profi tOther Profi tOther Profi tOther Equity Equity Equity Equity
Financial Assets Cash and Cash Equivalents 1 0 0 0 0 (4) 0 4 0 Other Financial Assets - Short Term Deposits 2 (104) 0 104 0 (100) 0 100 0
Financial Liabilities nancial statements nancial Cash and Cash Equivalents - Bank Overdraft 3 2 0 (2) 0 0 0 0 0 Derivatives - Held for Trading 4 (150) 0 150 (158) 0 158 Borrowings - Secured Loans 5 80 0 (80) 0 64 0 (64) 0
Total Sensitivity to Interest Rate Risk (172) 0 172 0 (198) 0 198 0 notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 161 Explanation of Sensitivity Analysis - Council
Financial Assets
1. Cash and Cash Equivalents Cash and cash equivalents of $506,000 (2010: $879,000) of which $506,000 (2010; $471,000) are held in non-interest bearing cheque deposit accounts. A movement in interest rates of plus or minus 1.0% has an effect on interest income of $0 (2010: $4,000.)
2. Other Financial Assets - Short Term Deposits Short Term Deposits consist of term deposits at fi nancial institutions and total $10,376,000 (2010: $10,029,000). A movement in interest rates of plus or minus 1.0% has an effect on investment income of $104,000 (2010: $100,000).
Financial Liabilities
3. Bank Overdraft Bank overdrafts totalling $216,000 (2010: $0) are at fl oating interest rate. A movement in interest rates of plus or minus 1.0% has an effect on interest expense of $2,000
(2010: $nil). nancial statements nancial
4. Derivatives - Held For Trading Derivative fi nancial instruments held for trading consist of interest rate swaps with a fair value totalling $643,000 (2010: $435,000). A movement in interest rates of plus or minus 1.0% has an effect on realised reciepts/(payments) on the derivatives during the period of $150,000 (2010: $158,000 ).
5. Borrowings - Secured Loans Council has fl oating rate debt with a principal amount totalling $8,024,000 (2010: $6,443,000). A movement in interest rates of plus or minus 1.0% has an effect on interest
expense of $80,000 (2010: $64,000). a movement in market interest rates on fi xed rate debt does not have any impact on interest expense. notes to the fi the to notes
162 Buller District Council • Annual Report year ending 30 June 2011 2010/2011 2009/2010 $000 $000 Group Note -100bps +100bps -100bps +100bps Interest Rate Risk Profi tOther Profi tOther Profi tOther Profi tOther Equity Equity Equity Equity
Financial Assets Cash and Cash Equivalents 1 (3) 0 3 0 (14) 0 14 0 Other Financial Assets - Short Term Deposits 2 (112) 0 112 0 (100) 0 100 0
Financial Liabilities Cash and Cash Equivalents - Bank Overdraft 32 0(2)00 00 0 Derivatives - Held for Trading 4 (150) 0 150 (158) 0 158 Borrowings - Secured Loans 5 80 0 (80) 0 64 0 (64) 0
Total Sensitivity to Interest Rate Risk (183) 0 183 0 (208) 0 208 0 statements nancial notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 163 Explanation of Sensitivity Analysis - Group
Financial Assets
1. Cash and Cash Equivalents Cash and cash equivalents of $1,818,000 (2010: $2,352,000) of which $1,515,000 (2010: $914,000) are held in non-interest bearing cheque deposit accounts. A movement in interest rates of plus or minus 1.0% has an effect on interest income of $3,000 (2010: $14,000).
2. Other Financial Assets - Short Term Deposits Short Term Deposits consist of term deposits at fi nancial institutions and total $11,229,000 (2010: $10,029,000). A movement in interest rates of plus or minus 1.0% has an effect on investment income of $112,000 (2010: $100,000).
Financial Liabilities
3. Bank Overdraft Bank overdrafts totalling $216,000 (2010: $nil) are at fl oating interest rate. A movement in interest rates of plus or minus 1.0% has an effect on interest expense of
$2,000. (2010: $nil). nancial statements nancial
4. Derivatives - Held For Trading Derivative fi nancial instruments held for trading consist of interest rate swaps with a fair value totalling $643,000 (2010: $435,000). A movement in interest rates of plus or minus 1.0% has an effect on realised reciepts/(payments) on the derivatives during the period of $150,000 (2010: $158,000 ).
5. Borrowings - Secured Loans The Group has fl oating rate debt with a principal amount totalling $8,024,000 (2010: $6,443,000). A movement in interest rates of plus or minus 1.0% has an effect on
interest expense of $80,000 (2010: $64,000). A movement in market interest rates on fi xed rate debt does not have any impact on interest expense. notes to the fi the to notes
164 Buller District Council • Annual Report year ending 30 June 2011 NOTE 28: Post Balance Date Events
Signifi cant events occurring after balance date that impact on the reported fi nancial information for the year ending 30 June 2011 for Buller District Council and the Group are as follows:
Subsequent to balance date, in August 2011, Buller Holdings issued $300,000 ordinary shares at $1 each in order to make the second and fi nal payment for land and buildings purchased from Buller District Council prior to 30 June 2011.
(2010: On 26 August 2010 Westreef Services Limited acquired the business trading as Buller Suction Services Limited. Buller Suction Services Limited was previously a key sub-contractor used by the company on one of its contracts. The consideration paid for the purchase was $150,000.
The provisional fair value of the assets acquired was as follows;
Property Plant and Equipment 120,000 Goodwill 30,000 Total Consideration paid $150,000
Westreef did not acquire any contingent liabilities as part of the acquisition. nancial statements nancial At the time of issuing these fi nancial statements there is no indication of impairment of any tangible or intangible assets and the price paid remains the best indicator of value.
On 1 September 2010 Buller Holdings Ltd took over management of the Westport harbour from Buller Port Services Ltd. The ownership of Westport Harbour Limited was transferred to Buller Holdings Limited from Buller District Council on 8 September 2010.
On 22 September 2010 Council decided to enter into an agreement to lease the operational assets of the Harbour to Westport Harbour Limited) notes to the fi the to notes
Buller District Council • Annual Report year ending 30 June 2011 165
accounting policies
Reporting Entity The Buller District Council is a territorial local authority governed by the Local Government Act 2002.
The Buller District Council group consists of Buller District Council and its subsidiaries Buller Holdings Ltd, WestReef Services Ltd (owned by Buller Holdings Ltd), Buller Recreation Ltd and Westport Harbour Ltd (all 100% owned), subsidiaries in substance Buller Health Trust and Buller Arts and Recreation Trust (BART) and Westport Airport Authority (50% joint venture).
The primary objective of Buller District Council is to provide goods and services for the community or social benefi t, rather than making a fi nancial return. Accordingly, Buller District Council has designated itself and the group as a public benefi t entity for the purposes of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS).
The fi nancial statements of Buller District Council are for the year ended 30 June 2011. The fi nancial statements were authorised for issue by Council on 31 October 2011.
Basis of Preparation The fi nancial statements of Buller District Council have been prepared in NZ IAS 1 Presentation of Financial Statements (Revised 2007) replaces NZ IAS policies accounting accordance with the requirements of the Local Government Act 2002: Part 6, 1 Presentation of Financial Statements (Revised 2004). The revised standard Section 98 and Part 3 of schedule 10, which includes the requirement to comply requires information in fi nancial statements to be aggregated on the basis of shred with New Zealand Generally Accepted Accounting Practice (NZ GAAP). characteristics and introduces a statement of comprehensive income. The statement of comprehensive income will enable readers to analyse changes in equity resulting from non owner changes separately from transactions with owners. The Council and These fi nancial statements have been prepared in accordance with NZ GAAP. group has decided to prepare a single statement of comprehensive income for the They comply with NZ IFRS, and other applicable Financial Reporting Standards, year ended 30 June 2010 under the revised standard. Financial statement information as appropriate for public benefi t entities. The accounting policies set out for the year ended 30 June 2009 has been restated accordingly. Items of other below have been applied consistently to all periods presented in these fi nancial comprehensive income presented in the statement of comprehensive income were statements. previously recognised directly in the statement of changes in equity.
The fi nancial statements have been prepared on a historical cost basis, modifi ed Amendments to NZ IFRS 7 Financial Instruments: Disclosures. The amendments by the revaluation of certain infrastructural assets, investment property and introduce a three-level fair value disclosure hierarchy that distinguishes fair value fi nancial instruments. measurements by the signifi cance of valuation inputs used. A maturity analysis of fi nancial assets is also required to be prepared if this information is necessary to enable The fi nancial statements are presented in New Zealand dollars and all values are users of the fi nancial statements to evaluate the nature and extent of liquidity risk. rounded to the nearest thousand dollars ($1,000) unless stated. The functional The transitional provisions of the amendment do not require disclosure of comparative currency of Buller District Council is New Zealand dollars. information in the fi rst year of application. The Council and group has not elected to disclose comparative information. There have been no changes in accounting policies during the fi nancial year.
The Council and group has adopted the following revisions to accounting standards during the fi nancial year, which have only a presentational or disclosure effect:
Buller District Council • Annual Report year ending 30 June 2011 167 Subsidiaries Associates Subsidiaries are those entities where Buller District Council has the capacity to An associate is an entity over which Buller District control their fi nancing and operating policies so as to obtain benefi ts from the Council has signifi cant infl uence and that is neither a activities of the entity. This power exists where Buller District Council controls subsidiary nor an interest in a joint venture. the majority voting power of the governing body or where such policies have been irreversibly predetermined by Buller District Council. Buller District Council accounts for an investment in an associate using the equity method. The investment in an associate is initially The subsidiaries of Buller District Council are Buller Holdings Ltd, WestReef recognised at cost and the carrying amount is increased or decreased Services Limited, Westport Harbour Ltd, Buller Recreation Ltd Buller Health Trust to recognise the share of the surplus or defi cit of the associate. and Buller Arts and Recreation Trust (BART). The Council has two associates, Tourism West Coast and Denniston Buller District Council measures the cost of a business combination as the aggregate Heritage Trust. Council has exempted both entities as is permitted of the fair values at the date of exchange, of assets given, liabilities incurred or under the Local Government Act (2002) therefore no fi nancial results assumed, in exchange for control of the subsidiary plus any costs attributable to are provided for in these accounts for these organisations. the business combination.
Any excess of the cost of the business combination over Buller District Council’s interest in the net fair value of the identifi able assets, liabilities and contingent Joint Ventures liabilities, is recognised as goodwill. If Buller District Council’s interest in the A joint venture is a contractual arrangement whereby two or more
accounting policies accounting net fair value of the identifi able assets, liabilities and contingent liabilities exceeds the cost of the business combination, the difference will be recognised parties undertake an economic activity that is subject to joint control. immediately in the surplus or defi cit. Buller District Council has a 50/50 joint venture interest in The purchase method of consolidation has been used to prepare the consolidated the Westport Airport Authority with Ministry of Transport. fi nancial statements, which involves adding together like items of assets, liabilities, equity, income and expenses on a line by line basis. All signifi cant intragroup Buller District Council recognises in its fi nancial statements balances, transactions, income and expenses are eliminated on consolidation. the assets it controls, the liability and expenses it incurs, and the share of income that it earns from the joint venture. Buller District Council’s investment in its subsidiaries is carried at cost in the Buller District Council’s own “parent entity” fi nancial statements. Revenue Revenue is measured at the fair value of consideration received. Revenue from the rendering of services is recognised by the reference to the stage of completion of the transaction at balance date based on the actual service provided as a percentage of the total services to be provided.
168 Buller District Council • Annual Report year ending 30 June 2011 Rates Revenue. Income Tax Rates are set annually by a resolution from Council and relate to a fi nancial year. All Income tax expense in relation to the surplus or defi cit for ratepayers are invoiced within the fi nancial year to which the rates have been set. Rates the period comprises current tax and deferred tax. revenue is recognised when payable. Current tax is the amount of income tax payable based on the taxable profi t for the current year, plus any adjustments to income tax payable in respect of prior years. Current tax is calculated using rates Other Revenue that have been enacted or substantively enacted by balance date. Buller District Council receives Government Grants from the New Zealand Transport Authority, which subsidises part of Buller District Council’s costs in maintaining the Deferred tax is the amount of income tax payable or recoverable in local roading infrastructure. Grants are received from the Ministry of Health for eligible future periods in respect of temporary differences and unused tax sewerage schemes. The subsidies are recognised as revenue upon entitlement as conditions losses. Temporary differences are differences between the carrying pertaining to eligible expenditure are fulfi lled. amount of assets and liabilities in the fi nancial statements and the corresponding tax bases used in the computation of taxable profi t. Sales of goods are recognised when a product is sold to a customer. Sales are usually in cash. The recorded revenue is the gross amount of the sale. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are Where a physical asset is acquired for nil or nominal consideration, the fair value of recognised to the extent that it is probable that taxable the asset received is recognised as revenue. Assets vested in Buller District Council are profi ts will be available against which the deductible recognised as revenue when control over the asset is obtained. temporary differences or tax losses can be utilised. policies accounting
Rental income is recognised on a straight line basis. Deferred tax is not recognised if the temporary difference arises from the initial recognition of goodwill, or from the initial recognition of an asset and liability in a transaction that is not Interest income is recognised using the effective interest method. a business combination, and at the time of the transaction, affects neither accounting profi t nor taxable profi t. Dividends are recognised when the right to receive the payment has been established. Deferred tax is recognised on taxable temporary differences arising from investments in subsidiaries and associates, and interests Borrowing Costs in joint ventures, except where the Council can control the reversal of the temporary difference and it is probable that the Borrowing costs are recognised as an expense in the period in which they are incurred. temporary difference will not reverse in the foreseeable future.
Deferred tax is calculated at the tax rates that are Grant Expenditure expected to apply in the period when the liability is settled or the asset is realised, using tax rates that have been Non-discretionary grants are those grants that are awarded if the grant application meets enacted or substantively enacted by balance date. the specifi ed criteria and are recognised as expenditure at the time when such application has been received. Current tax and deferred tax is shown against the surplus or defi cit for the period, except when it relates to items charged or credited Discretionary grants are those grants that Buller District Council has no obligation to directly to equity, in which case the tax is dealt with in equity. award and are recognised as expenditure when a successful applicant has been notifi ed of the Buller District Council’s decision.
Buller District Council • Annual Report year ending 30 June 2011 169 Leases Trade and Other Receivables Trade and other receivables are initially measured at fair Finance Leases value and subsequently measured at amortised cost using A fi nance lease is a lease that transfers to the lessee substantially all the risks and rewards incidental the effective interest rate method, less any provision for to ownership of an asset, whether or not title is eventually transferred. impairment.
At the commencement of the lease term, Buller District Council recognises fi nance leases as assets Loans, including loans to community organisations made and liabilities in the Statement of Financial Position at the lower of the fair value of the leased item by Buller District Council at nil, or below market interest or the present value of the minimum lease payments. rates, are initially recognised at the present value of their expected future cash fl ows, discounted at the current The amount recognised as an asset is depreciated over its useful life. If there is no certainty as to market rate of return for a similar asset / investment. They whether Buller District Council will obtain ownership at the end of the lease term, the asset is fully are subsequently measured at amortised cost using the depreciated over the lease term or useful life, whichever is the shortest. effective interest method. The difference between the face value and the present value of the expected future cash fl ows of the loan is recognised in the surplus or defi cit. Operating leases A provision for impairment of receivables is established An operating lease is a lease that does not transfer substantially all the risks and rewards incidental when there is objective evidence that Buller District Council to ownership of the asset. Lease payments under an operating lease are recognised as an expense will not be able to collect all the amounts due according on a straight line basis over the lease term. to the original terms of receivables. The amount of the accounting policies accounting provision is the difference between the assets carrying amount and the present value of estimated future cash fl ows, discounted using the effective interest method. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held on call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts. Inventories Bank overdrafts are shown as current liabilities in the Statement of Financial Position. Inventories held for distribution or consumption in the provision of services that are not supplied on a commercial basis are measured at the lower of cost and current replacement cost.
Inventories held for use in the production of goods and services on a commercial basis are valued at the lower of cost and net realisable value. The cost of purchased inventory is determined using the FIFO method.
The write down from cost to current replacement cost or net realisable value is recognised in the surplus or defi cit.
170 Buller District Council • Annual Report year ending 30 June 2011 Non Current Assets Held for Sale Non current assets held for sale are classifi ed as held for sale if their asset. Financial assets are derecognised when the rights to receive cash fl ows from the carrying amount will be recovered principally through the sale transaction fi nancial assets have expired or have been transferred, Buller District Council having rather than through continuing use. Non current assets held for sale are transferred substantially all the risks and rewards of ownership. measured at the lower of their carrying amount and fair value less costs to sell. The fair value of fi nancial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used is the current bid price. Any impairment losses for writedowns of non current assets held for sale are recognised in the surplus or defi cit. The fair value of fi nancial instruments that are not traded in an active market is determined using valuation techniques. Buller District Council uses a variety of Any increases in fair value (less costs to sell) are recognised up to the methods and makes assumptions that are based on market conditions existing at level of any impairment losses that have previously been recognised. balance date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted Non current assets (including those that are part of a disposal group) are cash fl ows, are used to determine fair value for the remaining fi nancial instruments. not depreciated or amortised while they are classifi ed as held for sale.
Financial Assets at Fair Value through Profi t and Loss This category has two sub-categories:
Financial Assets accounting policies accounting Buller District Council classifi es its fi nancial assets into the following four Financial assets held for trading categories: • Those designated at fair value through • profi t or loss at inception. • Financial assets at fair value through profi t and loss; Held-to-maturity investments; A fi nancial asset is classifi ed in this category if acquired principally for the • purpose of selling in the short term or if so designated by management. • Loans and receivables; and Derivatives are also categorised as held for trading unless they are designated as Available for sale fi nancial assets • hedges. Assets in this category are classifi ed as current assets if they are either held for trading or are expected to be realised within 12 months of the balance sheet date. The classifi cation depends on the purpose for which the investments were acquired. Management determines the classifi cation of its investments After initial recognition they are measured at their fair values. Gains or at initial recognition and re-evaluates this designation at every reporting losses on remeasurement are recognised in the surplus or defi cit. date. Currently Buller District Council recognises derivative Financial assets and liabilities are initially measured at fair value plus fi nancial instruments in this category. transaction costs unless they are carried at fair value through profi t and loss in which case the transaction costs are recognised in the Statement of Financial Performance.
Purchases and sales of investments are recognised on trade date, the date on which Buller District Council commits to purchase or sell the
Buller District Council • Annual Report year ending 30 June 2011 171 Held to Maturity Investments Fair Value Through Other Comprehensive Income Held to maturity investments are assets with fi xed or determinable payments and Financial assets at fair value through other comprehensive income fi xed maturities that Buller District Council has the positive intention and ability are those that are designated into this category at initial recognition to hold to maturity. or are not classifi ed in any of the other categories above.
After initial recognition they are measured at amortised cost using the effective This category encompasses: interest method. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or defi cit. Investments that Buller District Council intends to hold • long-term but which may be realised before maturity Currently Buller District Council does not hold any fi nancial assets in this category. Shareholdings that Buller District Council holds for strategic • purposes. Buller District Council’s investments in its subsidiary and associate companies are not included in this category as they are held at cost whereas this category is to be measured at fair value Loans and Receivables These are non-derivative fi nancial assets with fi xed or determinable payments After initial recognition these investments are measured at their fair value. that are not quoted in an active market.
Gains and losses are recognised directly in other After initial recognition they are measured at amortised cost using the effective comprehensive income except for impairment losses, interest method. Gains and losses when the asset is impaired or derecognised which are recognised in the surplus or defi cit.
accounting policies accounting are recognised in the surplus or defi cit. Loans and receivables are classifi ed as “trade and receivables” and short and long term investments in the Statement of Financial Position. Investments in this category include shares in other companies.
Investments in this category include loans to subsidiaries and other companies and term deposits. Impairment of Financial Assets At each balance sheet date Buller District Council assesses whether there is any objective evidence that a fi nancial asset or group of fi nancial assets is impaired. Any impairment losses are recognised in the surplus or defi cit.
Any cumulative losses previously recognised in equity will be removed from equity and shown in the surplus or defi cit.
172 Buller District Council • Annual Report year ending 30 June 2011 Derivative Financial Instruments Buller District Council uses derivative fi nancial instruments to hedge exposure to Buller Health Trust Assets – These include plant and equipment and furniture and interest rate risks arising from fi nancing activities. In accordance with its treasury fi ttings. policy, Buller District Council does not hold or issue derivative fi nancial instruments for trading purposes. However derivatives that do not qualify for hedge accounting Property, plant and equipment is shown at cost or revaluation, less accumulated are accounted for as trading instruments. depreciation and impairment losses.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value at each balance Additions date. 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 benefi ts or service potential The gain or loss on re-measurement to fair value is recognised immediately in surplus associated with the item will fl ow to Buller District Council and the cost of the item or defi cit. However, where derivatives qualify for hedge accounting, recognition of can be reliably measured. any resultant gain or loss depends on the nature of the item being hedged. In most instances, an item of property, plant and equipment is recognised at its The fair value of interest rate swaps is the estimated amount that Council would cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised receive or pay to terminate the swap at the balance sheet date, taking into account at fair value as at the date of acquisition. current interest rates and the current creditworthiness of the swap counterparties. The fair value of forward contracts is their quoted market price at the balance
sheet date, being the present value of the quoted forward price. policies accounting Disposals Buller District Council has not adopted hedge accounting to account for its derivative Gains and losses on disposal are determined by comparing the proceeds with the fi nancial instruments. carrying amount of the asset. Gains and losses on disposal are included in the surplus or defi cit. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to accumulated funds. Property, Plant and Equipment Property, plant and equipment consist of: Subsequent Costs Costs incurred subsequent to initial acquisition are capitalised only when it is Council Assets – These include land, buildings, plant and machinery, motor vehicles, probable that future economic benefi ts or service potential associated with the offi ce equipment, library books and the Airport runway. item will fl ow to Buller District Council and the cost of the item can be measured reliably. Infrastructure Assets – These include roads, footpaths, traffi c facilities, street lights, bridges, culverts, water reticulation, storm water reticulation, sewerage reticulation and landfi ll. Depreciation Depreciation is provided on a straight line basis on all property, plant and equipment, Harbour Assets – These include land, buildings, wharves, plant and machinery, other than land, at rates that will write off the cost (or valuation) of the assets to offi ce equipment, motor vehicles and harbour vessels. their estimated residual values over their useful lives.
WestReef Assets – These include leasehold improvements, plant and equipment, The useful lives and associated depreciation rates of major classes of assets have offi ce equipment, offi ce furniture, fi ttings and computer equipment. been estimated as follows:
Buller District Council • Annual Report year ending 30 June 2011 173 Council Assets Depreciation Rate Useful Life Infrastructure Assets Depreciation Rate Useful Life (%) (Years) (%) (Years)
Roads Motor Vehicles 15% 7 - Formation Not Depreciated Office Equipment 10% to 50% 2 - 5 - Basecourse- unsealed roads Not Depreciated Plant and Machinery 3.33% to 15% 7 - 30 - Basecourse – sealed roads 1% to 2% 50 - 100 Buildings 1% to 10% 10 - 100 - Seal 4% to 12.5% 8 - 25 Library Books 10% 10 Footpaths Airport Runway - Basecourse Not Depreciated - Basecourse 1.3% 75 - Pavement 1.25% to 10% 10 - 80 - Seal 5% 20 Traffic facilities 5% to 10% 10 - 20 Street lights 3.33% 30 Bridges 2% to 6.67% 50 - 100 Culverts 1.11% to 1.25% 80 - 90
accounting policies accounting Water Reticulation - Drains Not depreciated - Kerb and Channelling 1.25% 80 - Pipes 1.10% to 4.10% 25 - 100 - Valves, hydrants 1.67% 60 - Intake structures 1.11% to 2% 50 - 90 - Reservoirs 1.25% 80 - Resource Consents 2.85% 35 - Pump stations 2% to 6.67% 15 - 50 - Treatment Equipment 2% to 6.67% 15 – 50 - Tunnels 0.7% to 4% 25 - 150
Stormwater Reticulation - Pipes 1% to 1.54% 65 - 100
Sewerage Reticulation - Pipe 1% to 1.42 70 - 100 - Treatment Plants 1.11% to 6.67% 15 - 90 - Pump Stations 1.11% to 6.67% 15 - 90 - Manholes 1.11% 90 174 Buller District Council • Annual Report year ending 30 June 2011 Harbour Assets Depreciation Rate Useful Life Revaluation (%) (Years) Those asset classes that are revalued are valued on a basis described below. All other asset classes are carried at Wharves 1.67% 60 depreciated historical cost. The carrying values of revalued Buildings 2.5% 40 items are reviewed at each balance date to ensure that those values are not materially different to fair value. Plant and Machinery 3.3% to 10% 10 - 30 Office Equipment 20% to 33.5% 3 - 5 Council Land - The Airport land was revalued to fair value Motor Vehicles 10% to 20% 5 - 10 as determined by market based evidence by an independent valuer. The most recent valuation was performed by Harbour Vessels 5% to 6.7% 15 - 20 Quotable Value with an effective date as at 30 June 2005. Council land is recognised at deemed cost.
WestReef Assets Depreciation Rate Useful Life Harbour Land - The Harbour land was revalued to fair (%) (Years) value as determined by market based evidence by an independent valuer. The most recent valuation was performed Leasehold Improvements 6.5% to 15% 6.7 - 15 by Quotable Value with an effective date as at 30 June Plant and Equipment 5.5% to 40% 2.5 – 18 2005. Harbour land is recognised at deemed cost. Vehicles 8% to 29% 3 - 12 Infrastructural Assets – The infrastructural assets are valued Office Equipment 8% to 40% 2.5 - 12.5 on a three yearly valuation cycle at fair value determined on a policies accounting Office Furniture and Fittings 8% to 24% 4 - 12.5 depreciated replacement cost basis by an independent valuer. At balance date Buller District Council assesses the carrying Computer Equipment 18% to 36% 3 - 5.5 values of its infrastructural assets to ensure that they do not differ materially from the assets fair value. The most recent valuation was performed by Aurecon and the valuation is effective Buller Health Trust Assets Depreciation Rate Useful Life as at 30 June 2010. All infrastructural asset classes carried at (%) (Years) valuation were valued. The total value of infrastructural assets valued by Aurecon on 30 June 2010 was $257,933,000. Plant and Equipment 7% to 50% 2 - 10 Furniture and Fittings 7% to 13.5% 7.4 - 14.3 Accounting for Revaluation Furniture and Fittings (Accom) 16.2% to 48% 2.1 - 6.2 Buller District Council accounts for revaluations of property, plant and equipment on a class of assets basis.
Capital work in progress is not depreciated. The total cost of the project The results of revaluing are credited or debited to an asset is transferred to Property Plant and Equipment on its completion and then revaluation reserve. Where this results in a debit balance in the depreciated. asset revaluation reserve, this balance is expensed in the surplus or defi cit. Any subsequent increase on revaluation that off-sets The residual value and useful life of an asset is reviewed and adjusted if a previous decrease in value recognised in the surplus or defi cit, applicable, at each fi nancial year end. will be recognised fi rst in the surplus or defi cit up to the amount previously expensed, and then credited to the revaluation reserve.
Buller District Council • Annual Report year ending 30 June 2011 175 Intangible Assets Impairment of Non Goodwill Financial Assets Goodwill is initially measured at its cost, being the excess of the cost of the acquisition over Buller Non-fi nancial assets that have an indefi nite District Council’s interest in the net fair value of the identifi able assets, liabilities and contingent useful life are not subject to amortisation liabilities. Goodwill on acquisition of subsidiaries is included in intangible assets by applying the and are tested annually for impairment. purchase method. Assets that have a fi nite useful life are reviewed Goodwill arising in business combinations is not amortised. Instead, goodwill is tested for for impairment whenever events or changes in impairment annually. After initial recognition, Buller District Council measures goodwill at cost circumstances indicate that the carrying amount less any accumulated impairment losses. An impairment loss recognised for goodwill will not be may not be recoverable. An impairment loss is reversed in any subsequent period. recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the assets Goodwill is allocated to cash generating units for the purpose of impairment testing. The allocation fair value less costs to sell and value in use. is made to those cash generating units or groups of cash generating units that are expected to benefi t from the business combination, in which the goodwill arose. Value in use is depreciated replacement cost for an asset where the future economic benefi ts or service potential of an asset are not primarily dependent on the assets ability to generate net cash infl ows and where accounting policies accounting Investment Property the entity would, if deprived of the asset, replace its Properties leased to third parties under operating leases are classifi ed as investment property unless remaining future economic benefi ts of service potential. the property is held to meet service delivery objectives, rather than to earn rentals or for capital appreciation. The value in use for cash generating assets is the present value of expected future cash fl ows. Investment property is measured initially at cost, including transaction costs. If an asset’s carrying amount exceeds its recoverable After initial recognition, Buller District Council measures all investment property at fair value as amount the asset is impaired and the carrying amount determined annually by an independent valuer. The most recent valuation of investment property is written down to the recoverable amount. For was carried out by Darroch Valuations with an effective date as at 30 June 2011. revalued assets the impairment loss is recognised against the revaluation reserve. Where that results Gains or losses arising from a change in the fair value of investment property are recognised in the in a debit balance in the revaluation reserve, the Surplus or Defi cit. balance is recognised in the surplus or defi cit.
For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or defi cit.
The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent that an impairment loss was previously recognised in the surplus or defi cit, a reversal of the impairment loss is also recognised in the surplus or defi cit.
176 Buller District Council • Annual Report year ending 30 June 2011 For assets not carried at a revalued amount (other than goodwill) the reversal of an impairment loss is recognised in the surplus or defi cit. Superannuation Schemes Defi ned Contributions Schemes Obligations for contributions to defi ned contribution Employee Entitlements superannuation schemes are recognised as an expense in the Statement of Financial Performance as incurred. Short Term Benefi ts Employee benefi ts that Buller District Council expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay. Provisions Buller District Council recognises a provision for future These include salaries and wages accrued up to balance date, annual leave earned to, but not expenditure of uncertain amount or timing when there yet taken at balance date, retiring and long service leave entitlements expected to be settled is a present obligation (either legal or constructive) as a within 12 months, and sick leave. result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable Buller District Council recognises a liability for sick leave to the extent that absences in the estimate can be made of the amount of the obligation. coming year are expected to be greater than the sick leave entitlements earned in the coming Provisions are not recognised for future operating losses. year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that Buller District Council anticipates it will be used by Provisions are measured at the present value of the
staff to cover future absences. policies accounting expenditures expected to be required to settle the obligation using a pre-tax discount rate that refl ects Buller District Council recognises a liability and expense for bonuses where contractually obliged current market assessments of the time value of or where there is a past practice that has created a constructive obligation. money and the risks specifi c to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense. Long Term Benefi ts Long Service Leave and Retirement Leave
Entitlement that are payable beyond 12 months, such as long service leave and retirement Borrowings gratuities, have been calculated on an actuarial basis. The calculations are based on: Borrowings are initially recognised at their fair value. After initial recognition, all borrowings are measured at amortised cost using the effective interest method. Likely future entitlements accruing to staff, based on years of service, years to • entitlement and the likelihood that staff will reach the point of entitlement : and The present value of the estimated future cash fl ows. A discount rate of 6%, and • a infl ation factor of 2% were used. The discount rate is based on the weighted average of Government interest rates for stock with terms to maturity similar to those of the relevant liabilities. The infl ation factor is based on the expected long term increase in remuneration for employees
Buller District Council • Annual Report year ending 30 June 2011 177 Equity Cost Allocation Equity is the communities interest in Buller District Council and is measured as the difference Buller District Council has derived the cost of service for each between total assets and total liabilities. Equity is disaggregated and classifi ed into a number signifi cant activity using the cost allocation system outlined below. of reserves. Direct costs are those costs directly attributable to a signifi cant The components of equity are: activity. Indirect costs are those costs, which cannot be identifi ed in an economically feasible manner, with a specifi c signifi cant activity.
• Retained earnings; Direct costs are charged directly to signifi cant activities. Indirect costs are charged to signifi cant Restricted reserves; and • activities using an appropriate cost driver. • Asset revaluation reserve. Critical Accounting Estimates Goods and Services Tax (GST) and Assumptions All items in the fi nancial statements are stated exclusive of GST, except for receivables and In preparing these fi nancial statements Buller District payables, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax Council has made estimates and assumptions concerning the
accounting policies accounting then it is recognised as part of the related asset or expense. future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgments are The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) continually evaluated and are based on historical experience is included as part of receivables or payables in the Statement of Financial Position. and other factors, including expectations or future events that are believed to be reasonable under the circumstances.
The net GST paid to, or received from the IRD, including the GST relating to investing and fi nancing activities, is classifi ed as an operating cash fl ow in the statement of cash fl ows. The estimates and assumptions that form a signifi cant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next fi nancial year are discussed below: Commitments and contingencies are disclosed exclusive of GST.
Budget Figures The budget fi gures are those approved by the Council at the beginning of the year in the Annual Plan. The budget fi gures have been prepared in accordance with NZ IFRS, using accounting policies that are consistent with those adopted by Buller District Council for the preparation of the fi nancial statements.
178 Buller District Council • Annual Report year ending 30 June 2011 Landfi ll Aftercare Provision Standards and Interpretations The Landfi ll Aftercare Provision Note discloses an analysis of the exposure of Buller District Council in relation to estimates and uncertainties surrounding the landfi ll aftercare provision. Not Yet Adopted Standards, amendments, and interpretations but not yet effective that have not been early adopted, and Infrastructural Assets which are relevant to the Council and group, are: There are a number of assumptions and estimates used when performing valuations over infrastructural assets which include: • NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments:
The physical deterioration and condition of an asset, eg Council could be carrying an asset Recognition and Measurement: NZ IAS 39 is being replaced • at an amount that does not refl ect its actual condition. This is particularly so for those through the following 3 main phases: Phase 1 Classifi cation assets which are not visible such as stormwater, wastewater and water supply pipes that and Measurement, Phase 2 Impairment Methodology, and are underground. The risk is minimised by Council performing a combination of physical Phase 3 Hedge Accounting. Phase 1 on the classifi cation and inspections and condition modelling assessments of underground assets; measurement of fi nancial assets has been completed and has • Estimating any obsolescence or surplus capacity of an asset; and been published in the new fi nancial instrument standard NZ IFRS 9. NZ IFRS9 uses a single approach to determine whether • Estimates are made when determining the remaining useful lives over which the asset will a fi nancial asset is measured at amortised cost or fair value, be depreciated. These estimates can be impacted by local conditions, eg weather patterns replacing the many different rules in NZ IAS 39. The approach and traffi c growth. If useful lives do not refl ect the actual consumption of the benefi ts in NZ IFRS 9 is based on how an entity manages its fi nancial of the asset, then Council could be over or under estimating the annual depreciation instruments (its business model) and the contractual cash fl ow policies accounting charge recognised as an expense in the surplus or defi cit. To minimize the risk, Council’s characteristics of the fi nancial assets. The new standard also infrastructural asset useful lives have been determined with reference to the NZ requires a single impairment method to be used, replacing the Infrastructure Asset Valuation and Depreciation Guidelines published by the National Asset many different impairment methods in NZ IAS 39. The new Management Steering Group, and have been adjusted for local conditions based on past standard is required to be adopted for the year ended 30 June experience. Asset inspections, deterioration and condition modeling are also carried out 2014. Buller District Council has not yet assessed the effect of regularly as part of Council’s Asset management planning activities, which gives Council the new standard and expects it will not be early adopted. further assurance over its useful life estimates. • FRS-44 New Zealand Additional Disclosures and Amendments Experienced independent valuers prepare Council’s infrastructural asset revaluations. The last to NZ IFRS to harmonise with IFRS and Australian Accounting valuation was prepared by Aurecon on 30 June 2010. Standards (Harmonisation Amendments) – These were issued in May 2011 with the purpose of harmonising Australia and New Zealand’s accounting standards with source IFRS and to eliminate many of the differences between the accounting standards in each jurisdiction. The amendments must fi rst be adopted for the year ended 30 June 2012. Buller District Council has not yet assessed the effects of FRS-44 and the Harmonisation Amendments.
Buller District Council • Annual Report year ending 30 June 2011 179
audit report audit report audit
Buller District Council • Annual Report year ending 30 June 2011 181 audit report audit
182 Buller District Council • Annual Report year ending 30 June 2011
2010 / 2011 2011 / 2010 www.bullerdc.govt.nz Online Version: save on both cost and environmental impact, this report has been To created with online viewing in mind. Only a limited number of the printed version have been produced. Adopted 31 October 2011