FINANCIAL INFORMATION Statement of Prospective Financial Information

FINANCIAL INFORMATION Statement of prospective financial Information ...... 1 Funding of operating expenditure...... 1 Funding impact statement ...... 10 Statement of Accounting Polices...... 26

STATEMENT OF PROSPECTIVE FINANCIAL INFORMATION

The financial information contained within this Long Term Plan is prospective financial information which complies with the Financial Reporting Standard 42 (FRS42). FRS42 sets the principles and specifies minimum disclosures for the preparation and presentation of general purpose prospective financial information. The purpose of this financial information is to enable the public to participate in the decision making process as to the services that Waipā District Council (Council) will provide over the financial years 2021-31, and as an accountability mechanism for the community. The financial information may not be appropriate for purposes other than those described.

In relation to the FRS42, the financial years 2021/22 to 2030/31 are considered to be ‘forecast years’ and based on future events, which are expected to occur. The actual results achieved for the financial years 2021-31 are likely to vary from the information presented and may vary depending upon the circumstances that arise during the period.

The forecast financial information has been prepared in accordance with Council’s current policies which comply with the New Zealand International Financial Reporting Standards.

Council is responsible for the prospective financial statements, including the appropriateness of the underlying assumptions and all other required disclosures.

The Annual Plan budget for 2020/21 and/ or the Forecast values for the 2020/21 have been included in the forecasted statements, as presented in the 4 month report to 31 October 2020. The forecasted 2020/21 year, while based on the actual transactions occurring during the 2020/21 year, is still only a forecast as the financial year 2020/21 had not been completed by the time the forecast financial information was prepared.

The prospective statements in the Long Term Plan were adopted by Waipa District Council on XX 2021 and takes effect from 1 July 2021.

The Long Term Plan is formally reviewed and updated every three years.

FUNDING OF OPERATING EXPENDITURE

Section 100 of the Local Government Act 2002 requires councils to fund operating expenditure from operating revenue. The reasons for not fully funding selected operating expenses are detailed below:

Infrastructural assets

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 The value of assets written off as a result of the renewal of infrastructural assets is not funded in the current or future years. The following group of activities are affected:

Table 1: Infrastructural assets

Group of Activities 2021/31 ($000) Transportation $1,022 Stormwater $215 Water Treatment and Supply $512 Wastewater Treatment and Disposal $410

These estimates were based on trends relating to asset write-offs over the preceding three years.

Community services and facilities and support services

Council does not fund depreciation on buildings and improvements where future renewals would be from community sources or through raising new debt. This type of facility is primarily community occupied, has a life in excess of 50 years and renewal would only occur if future generations so decided. The amount of depreciation not funded in 2021/22 is $858,273. We do not fully fund depreciation on computer software and hardware as Council is moving towards cloud-based software and leasing of hardware not funded in 2021/22 is $700,000.

Forestry

Council has an investment in forestry and we generate income from logging sales and expenditure to maintain and manage the forest. The income and expenditure do not necessarily match each year, with some years having higher sales than other years. To ensure that there is no-flow on impact to ratepayers this activity will be managed through a reserve account which over a number of years should show a surplus.

Housing for the elderly

Council has an investment in residential housing and we generate income from rent and expenditure to maintain and manage the properties. The income and expenditure do not necessarily match each year and to ensure that there is no flow-on impact to ratepayers this activity is managed through a reserve account to ensure that any rents collected are used for the benefit of the property.

Operating surplus

Council’s operating surplus is the result of income funding asset development, and various non-cash items such as revaluation gains, being included in the Statement of Comprehensive Revenue and Expense in line with accounting requirements. Council only sets rates and fees and charges income to the levels needed to meet its operating costs.

Any operating surpluses generally come from non-cash items; we budget for a general funds cash breakeven position. The Statement of Comprehensive Revenue and Expense also includes significant infrastructural revaluations which are non-cash items.

Table 2: Prospective statement of comprehensive revenue and expense

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Annual Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 OPERATING INCOME

Rates 68,263 72,788 77,584 81,709 84,590 88,543 92,539 96,615 100,064 104,927 109,325 Fees & Charges 14,720 13,150 13,376 13,843 14,303 14,766 15,138 15,871 16,573 17,049 17,530 Reserve contributions 522 1,415 1,485 1,823 1,997 1,910 1,799 1,182 1,202 1,169 1,144 Development contributions 12,072 17,172 21,565 24,062 28,886 28,142 27,832 24,144 24,076 23,547 22,749 Gain on revaluation of investment properties & forestry 447 447 450 450 450 450 450 450 450 450 450 Vested assets 15,176 26,515 12,126 12,464 12,824 13,203 13,587 14,012 14,470 14,953 15,412 Discovered assets ------Dividends 20 20 20 20 20 20 20 20 20 20 20 Finance income 271 15 15 15 50 50 50 50 50 50 50 Subsidies and Grants 11,327 15,304 20,782 15,790 13,666 14,500 10,139 11,787 10,853 10,395 10,888 Other revenue 1,563 2,182 1,341 458 461 462 458 459 463 471 468 Gain on swap derivative ------Total Operating Income 124,381 149,008 148,744 150,634 157,247 162,046 162,012 164,590 168,221 173,031 178,036

OPERATING EXPENDITURE Employee benefit expenses 27,023 28,738 29,027 29,964 30,816 31,675 33,394 34,269 34,887 35,748 36,616 Depreciation & amortisation 25,461 27,329 29,119 30,877 31,449 30,512 30,340 30,637 30,729 31,949 31,722 Other expenses 43,465 39,814 43,059 44,883 47,018 47,528 51,578 51,502 52,242 53,877 57,819 Finance costs 1,870 2,602 3,383 3,732 3,398 3,561 3,514 4,096 4,539 4,701 4,368 Loss on revaluation ------Loss on swap derivative ------

Total Operating Expenditure 97,819 98,483 104,588 109,456 112,681 113,276 118,826 120,504 122,397 126,275 130,525

OPERATING SURPLUS 26,562 50,525 44,156 41,178 44,566 48,770 43,186 44,086 45,824 46,756 47,511

Other Comprehensive Income recognised directly in Equity

Property Plant and Equipment Revaluation gains/(losses) taken to equity 20,819 9,053 81,080 29,945 62,227 67,452 72,797 56,045 114,998 82,294 100,731 Intangible Revaluation gains/(losses) taken to equity ------Investment Revaluation gains/(losses) taken to equity ------Cash flow hedges 206 - 1,292 ------Total Other Comprehensive Income for the year 21,025 9,053 82,372 29,945 62,227 67,452 72,797 56,045 114,998 82,294 100,731

Total Comprehensive Income for the year 47,587 59,578 126,528 71,123 106,793 116,222 115,983 100,131 160,822 129,050 148,242

Table 3: Targeted water rates

2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Annual Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Targeted Water Rates 11,210 11,546 12,321 13,021 13,790 14,620 15,487 16,462 17,538 18,693 19,856

Table 4: Depreciation and amortisation

Governance 7 7 5 4 3 3 2 0 - - - Environmental Services 6 9 13 30 30 29 29 28 28 28 27 Community Facilities 3,382 4,543 4,828 5,059 5,277 4,340 4,696 4,941 5,156 5,112 5,157 Transportation 10,976 10,957 11,297 11,617 11,498 11,273 11,085 10,757 10,448 10,313 10,237 Stormwater 1,683 1,959 2,430 2,625 2,779 2,895 2,934 3,005 3,036 3,140 3,176 Wastewater 3,709 3,425 3,512 3,606 3,675 3,709 3,711 4,167 4,206 4,751 4,965 Water 4,375 4,486 4,500 4,711 4,890 4,961 5,099 5,302 5,369 5,522 5,545 Support Services 1,322 1,945 2,535 3,225 3,296 3,301 2,784 2,437 2,486 3,084 2,616

25,461 27,329 29,119 30,877 31,449 30,512 30,340 30,637 30,729 31,949 31,722

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Table 5: Prospective statement in changes in equity

Balance at 1 July 1,782,731 1,815,728 1,875,306 2,001,834 2,072,957 2,179,752 2,295,975 2,411,957 2,512,087 2,672,908 2,801,957

Total comprehensive income previously reported 47,587 59,578 126,528 71,123 106,795 116,223 115,982 100,130 160,821 129,049 148,242

1,830,318 1,875,306 2,001,834 2,072,957 2,179,752 2,295,975 2,411,957 2,512,087 2,672,908 2,801,957 2,950,199

Table 6: Prospective statement of financial position

2020/21 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Annual Plan Forecast Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 ASSETS Current Assets Cash and cash equivalents 2,801 2,336 1,114 1,634 1,547 1,364 2,236 1,587 2,610 2,633 3,643 6,437 Trade and other receivables 5,295 5,932 2,294 1,958 1,958 1,958 2,173 2,404 2,457 3,048 3,341 7,009 Investment in CCO's 240 ------Non current assets held for sale 85 85 ------Total Current Assets 8,421 8,353 3,408 3,592 3,505 3,322 4,409 3,991 5,067 5,681 6,984 13,446 Non Current Assets Trade and other receivables - 14 14 14 14 14 14 14 14 14 14 14 Property plant and equipment 1,998,368 1,973,862 2,080,558 2,229,378 2,311,962 2,416,665 2,523,744 2,672,420 2,778,652 2,938,320 3,044,747 3,154,771 Intangible Assets 2,465 2,711 4,173 4,704 5,881 4,735 3,387 2,807 2,727 2,882 2,820 2,711 Forestry Assets 2,977 2,559 2,597 2,637 2,677 2,717 2,757 2,797 2,837 2,877 2,917 2,957 Investments in CCO's 14,980 18,786 18,786 18,786 18,786 18,786 18,786 18,786 18,786 18,786 18,786 18,786 Investment Properties 16,611 16,027 16,436 16,846 17,256 17,666 18,076 18,486 18,896 19,306 19,716 20,126

Total Non Current Assets 2,035,401 2,013,959 2,122,564 2,272,365 2,356,576 2,460,583 2,566,764 2,715,310 2,821,912 2,982,185 3,089,000 3,199,365 Total Assets 2,043,822 2,022,312 2,125,972 2,275,957 2,360,081 2,463,905 2,571,173 2,719,301 2,826,979 2,987,866 3,095,984 3,212,811

LIABILITIES Current Liabilities Trade and other payables 24,107 9,399 7,528 7,528 7,528 7,557 7,601 7,647 7,696 7,761 7,829 7,916 Provisions 412 652 1,944 652 652 652 652 652 652 652 652 652 Employee benefit liabilities 1,547 1,844 1,844 1,844 1,844 1,844 1,844 1,844 1,844 1,844 1,844 1,844 Borrowings 55,000 57,400 15,000 15,000 62,000 71,000 116,400 84,000 62,000 27,000 148,500 91,500 Deferred Revenue ------Derivative financial instruments ------Total Current Liabilities 81,066 69,295 26,316 25,024 72,024 81,053 126,497 94,143 72,192 37,257 158,825 101,912 Non Current Liabilities Trade and other payables - 15,298 250 ------Derivative financial instruments - 1,292 ------Provisions 1,937 699 699 699 699 699 699 699 699 699 699 699 Borrowings 130,500 120,000 223,400 248,400 214,400 202,400 148,000 212,500 242,000 277,000 134,500 160,000 Total Non Current Liabilities 132,437 137,289 224,349 249,099 215,099 203,099 148,699 213,199 242,699 277,699 135,199 160,699 Total Liabilities 213,503 206,584 250,665 274,123 287,123 284,152 275,196 307,342 314,891 314,956 294,024 262,611

EQUITY Retained Earnings 570,075 558,223 604,552 639,425 667,308 696,113 730,082 777,912 806,592 833,843 855,201 867,387 Other reserves 1,260,243 1,257,505 1,270,755 1,362,409 1,405,650 1,483,640 1,565,895 1,634,047 1,705,496 1,839,067 1,946,759 2,082,813 Total Equity 1,830,318 1,815,728 1,875,307 2,001,834 2,072,958 2,179,753 2,295,977 2,411,959 2,512,088 2,672,910 2,801,960 2,950,200

1. Council will reduce debt when it is able to, instead of holding large cash balances

Table 7: Council investment in CCOs

Waikato Regional Council 14,976 16,960 16,960 16,960 16,960 16,960 16,960 16,960 16,960 16,960 16,960 16,960 NZ Local Government Funding Agency Ltd 100 740 740 740 740 740 740 740 740 740 740 740 Civic Financial Services Ltd 131 973 973 973 973 973 973 973 973 973 973 973 Waikato Local Authority Shared Services Ltd 13 113 113 113 113 113 113 113 113 113 113 113

15,220 18,786 18,786 18,786 18,786 18,786 18,786 18,786 18,786 18,786 18,786 18,786

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Table 8: Prospective statement of cash flow

2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Forecast Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Note $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Cash Flows from Operating Activities Receipts from rates revenue 68,263 72,788 77,584 81,709 84,579 88,505 92,501 96,588 100,038 104,900 109,325 Interest received 271 15 15 15 50 50 50 50 50 50 50 Dividends received 20 20 20 20 20 20 20 20 20 20 20 Receipts from other revenue 52,216 32,897 51,386 55,743 58,779 57,286 54,729 51,064 51,402 51,921 48,606 Payments to suppliers and employees (66,894) (70,443) (72,065) (74,848) (77,803) (79,157) (84,926) (85,724) (87,062) (89,557) (94,349) Interest Paid (1,870) (2,602) (3,383) (3,732) (3,398) (3,561) (3,514) (4,096) (4,539) (4,701) (4,368) Goods and services tax (net) 20 (20) ------Net Cash Flow from Operating Activities 52,006 32,695 53,537 58,907 62,227 63,143 58,860 57,902 59,909 62,633 59,284 Cash Flows from Investing Activities Proceeds from sale of property, plant and equipment - 4,916 7,247 234 545 2,317 443 2,353 1,200 444 503 Proceeds from sale of investment property 1,275 85 ------Purchase of intangible assets (1,419) (1,462) (969) (1,906) (156) - (34) - (171) (36) - Purchase of property, plant and equipment (170,013) (98,456) (84,295) (70,323) (59,799) (55,588) (92,018) (66,732) (60,914) (41,031) (25,494) Purchase & Development of investment property ------Investment in Associates ------Net Cash Flow from Investing Activities (170,157) (94,917) (78,017) (71,995) (59,410) (53,271) (91,609) (64,379) (59,885) (40,623) (24,991) Cash Flows from Financing Activities Proceeds from borrowings 120,000 61,000 25,000 13,000 - - 32,100 7,500 - - - Repayment of borrowings - - - - (3,000) (9,000) - - - (21,000) (31,500) Net Cash Flow from Financing Activities 120,000 61,000 25,000 13,000 (3,000) (9,000) 32,100 7,500 - (21,000) (31,500)

Net (decrease)/increase in cash and cash equivalents 1,849 (1,222) 520 (88) (183) 872 (649) 1,023 24 1,010 2,793 Cash and cash equivalents at the beginning of the year 487 2,336 1,114 1,634 1,547 1,364 2,236 1,587 2,610 2,633 3,643 Cash & cash equivalents at the end of the year 2,336 1,114 1,634 1,547 1,364 2,236 1,587 2,610 2,633 3,643 6,437

Table 9: Statement of borrowing

2020/21 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 AP Forecast Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Movements in Borrowings Opening Balance 65,500 53,500 177,400 238,400 263,400 276,400 273,400 264,400 296,500 304,000 304,000 283,000

Net Loans Raised/(Repaid) 120,000 123,900 61,000 25,000 13,000 (3,000) (9,000) 32,100 7,500 - (21,000) (31,500)

Closing Balance 185,500 177,400 238,400 263,400 276,400 273,400 264,400 296,500 304,000 304,000 283,000 251,500

Current Portion of External Debt 55,000 57,400 15,000 15,000 62,000 71,000 116,400 84,000 62,000 27,000 148,500 91,500 Term Portion of External Debt 130,500 120,000 223,400 248,400 214,400 202,400 148,000 212,500 242,000 277,000 134,500 160,000

Closing Balance 185,500 177,400 238,400 263,400 276,400 273,400 264,400 296,500 304,000 304,000 283,000 251,500

The above represents the level of external borrowing but this could fluctuate depending on future use of reserves.

Table 10: Capital expenditure programme

Forecast 2021/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2020/21 AP Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Governance ------Planning and Regulatory 14 - 150 616 ------Community Services and Facilities 21,908 22,367 14,355 18,782 12,349 11,260 13,269 18,326 9,893 4,018 2,602 3,109 Transportation 45,062 51,206 39,837 39,343 21,967 27,108 27,390 24,241 17,652 16,681 16,787 16,705 Stormwater 23,933 35,871 44,790 15,001 21,582 11,451 4,909 4,763 4,772 4,934 5,255 5,740 Water Treatment and Supply 30,076 30,718 9,820 14,414 18,959 16,472 15,074 20,006 13,589 10,187 11,543 11,893 Wastewater Treatment and Disposal 36,512 42,670 16,535 7,527 8,915 7,338 7,140 38,579 35,903 39,124 20,812 4,169 Support Services 4,459 3,776 3,321 4,046 3,153 2,238 3,167 1,886 1,567 2,770 1,181 1,452 TOTAL CAPITAL EXPENDITURE 161,964 186,608 128,808 99,729 86,925 75,867 70,949 107,801 83,376 77,714 58,180 43,068

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Note: Refer to the group of activity section in this Long Term Plan which outlines the individual projects in detail.

Table 11: Council reserve funds, movements and balances

2020/21 2020/21 2021-31 2021-31 2030/31 Transfer Transfer to From Closing Budget Forecast Reserve Reserve Balance $000 $000 $000 $000 $000 Council created reserves consist of: Property Reserves Asset Sales Cambridge - - - - - Asset Sales Te Awamutu - 7 4,987 ( 886) 4,109 Asset Sales General 611 631 7,672 ( 542) 7,761 Endowment Land Cambridge - 2,780 100 - 2,879 Endowment Land Pirongia 19 12 0 - 13 Endowment Land Te Awamutu 119 123 4 - 128 Endowment Land Waipa District 13 14 0 - 14 Forestry Reserve - - - - - Pensioner Housing Reserve - 2,727 5,413 ( 4,859) 3,281 Reserve Contributions & Development Contributions District Wide Stormwater 1,553 131 76,263 ( 73,226) 3,169 District Wide Waste Water - 1,957 74,663 ( 62,897) 13,722 District Wide Water Treatment and Supply - 2,604 36,838 ( 26,755) 12,686 District Wide Roading 990 1,131 85,750 ( 77,405) 9,476 District Wide Reserve Developments 496 725 6,979 ( 2,688) 5,016 District Wide Land Purchase - 441 19,136 ( 16,477) 3,100 Karapiro Reserve Development - - 640 ( 274) 366 Te Awamutu Library/Museum 82 87 0 ( 87) 0 Special Funds Cemetery Paterangi 4 5 0 - 5 Project Funding Reserve 3,314 5,847 42,174 ( 18,095) 29,926 General Insurance Reserve 589 554 20 - 574 Infrastructure Insurance Reserve 570 571 20 - 591 Te Awamutu 110kv Compensation Reserve 338 339 12 - 351 Pavement Levies 70 92 3 - 95 Road Asset Technical Accord (RATA) 188 124 0 ( 124) 0 Waste Minimisation 348 354 0 ( 354) 0 Separate Balances Roading Reserve 2,597 2,621 349,999 ( 349,998) 2,622 Stormwater Reserve 308 429 88,900 ( 78,771) 10,559 Water Supply Reserve 1,819 1,606 231,904 ( 221,442) 12,068 Waste Water Reserve 3,549 1,348 172,567 ( 171,892) 2,024 Depreciation Reserve - Long Term Assets 2,673 2,881 27,828 ( 4,186) 26,523 Depreciation Reserve - Medium Term Assets 927 1,830 51,797 ( 28,524) 25,103 Asset Revaluation Reserves Asset revaluation reserves consist of: Operational assets Land 214,752 225,787 56,686 - 282,473 Buildings 26,483 32,851 15,594 - 48,445 Intangible 378 524 - - 524 Investments 11,597 13,288 4,497 - 17,785 Infrastructural Assets Sewerage System 72,428 72,062 80,442 - 152,504 Water System 71,954 71,284 70,380 - 141,664 Drainage network 74,769 74,678 69,372 - 144,050 Roading network 766,705 735,059 384,148 - 1,119,207 Total 1,260,243 1,257,505 1,964,791 ( 1,139,482) 2,082,813

Council reserves

The tables below set out the purpose of the reserves held by Council and the related activities for these reserves.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Table 12: Council reserves – Property

Reserve Purpose Activity Asset sales: Cambridge Proceeds from Cambridge asset sales held in reserve to fund future Property services asset purchases Asset sales: Te Awamutu Proceeds from Te Awamutu asset sales held in reserve to fund future Property services asset purchases Asset sales: General Proceeds from district-wide asset sales held in reserve to fund future Property services asset purchases Endowment land: Proceeds from sale of Cambridge endowment land held in reserve for Property services Cambridge endowment purposes Endowment land: Pirongia Proceeds from sale of Pirongia endowment land held in reserve for Property services endowment purposes Endowment land: Te Proceeds from sale of Te Awamutu endowment land held in reserve Property services Awamutu for endowment purposes Endowment land: Waipā Proceeds from sale of district-wide endowment land held in reserve Property services district for endowment purposes Forestry reserve Proceeds from forestry harvesting to fund future forestry activities Forestry Residential housing Proceeds from residential housing rental revenue to fund the Housing for the Elderly reserve operating and capital expenditure of that activity and Own Your Own Housing

Table 13: Council reserves – Reserve contributions and development contributions

Reserve Purpose Activity District-wide stormwater Proceeds from development contributions to fund growth- Stormwater related expenditure District-wide wastewater Proceeds from development contributions to fund growth- Wastewater treatment & related expenditure disposal District-wide water treatment & Proceeds from development contributions to fund growth- Water treatment & supply supply related expenditure District-wide roading Proceeds from development contributions to fund growth- Transportation related expenditure District-wide reserve Proceeds from development contributions to fund growth- Parks & reserves developments related expenditure District-wide land purchase Proceeds from development contributions to fund growth- Parks & reserves related expenditure Karāpiro Reserve development Proceeds from development contributions to fund growth- Parks & Reserves related expenditure for Karāpiro Reserve and Cambridge Pool Te Awamutu library / museum Proceeds from development contributions to fund growth- District libraries/museums related expenditure for Te Awamutu library / museum

Table 14: Council reserves – Special funds

Reserve Purpose Activity Cemetery: Paterangi Proceeds held in reserve to fund future capital works Cemeteries

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Reserve Purpose Activity Project funding reserve Funding for specific projects to be completed in the following All activities year General insurance reserve Provision to pay call-ups and to fund increase in deductibles All activities of claims as well as to help to pay future premium increases Infrastructure insurance reserve Provision to help cover the insurance deductible if a major Stormwater/ wastewater event happens in the Waipā district treatment and disposal/ water treatment & supply Te Awamutu 100kv Proceeds from the granting of easement rights for the Waipā Properties compensation reserve Networks 110kv line, held in reserve for appropriate future utilisation with due regard to the source of these funds Pavement levies Levies collected from land use consents for future pavement Transportation rehabilitation Regional Asset Technical Accord Funds held in reserve for future works Transportation (RATA) Waste Minimisation Funds held in reserve for future works Recycling

Table 15: Council reserves – Separate balances

Reserve Purpose Activity Roading reserve Funds held in reserve for capital works expenditure Transportation Stormwater reserve Funds held in reserve for capital works expenditure Stormwater Water supply reserve Funds held in reserve for capital works expenditure Water treatment & supply Wastewater reserve Funds held in reserve for operating and capital works Wastewater treatment & expenditure disposal Depreciation reserve long term Funds held in reserve for capital works expenditure Community services & assets facilities Depreciation reserve medium Funds held in reserve for capital works expenditure Community services & term assets facilities

Table 16: Council reserves – Asset revaluation

Reserve Purpose Activity Operational Land Non-cash reserve to record appreciation values arising from Community services & asset revaluations facilities Buildings Non-cash reserve to record appreciation values arising from Community services & asset revaluations facilities Infrastructural assets Sewerage system Non-cash reserve to record appreciation values arising from Wastewater treatment & asset revaluations disposal Water system Non-cash reserve to record appreciation values arising from Water treatment & supply asset revaluations Drainage network Non-cash reserve to record appreciation values arising from Stormwater asset revaluations

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Reserve Purpose Activity Roading network Non-cash reserve to record appreciation values arising from Transportation asset revaluations

2021 budget and 2021 forecast

The table below shows the 2020/21 Annual Plan budget compared to the 2020/21 Forecast as at 31 October 2020. The 2020/21 forecast column represents the ‘best current information’ starting point for year one of the Long Term Plan and reflects updated budget information as at 31 October 2020.

Table 17: 2018 budget and 2018 forecast

2020/21 2020/21 Budget Forecast $000's $000's Statement of Comprehensive Income Operating Income 124,381 125,685 Operating Expenditure 97,819 98,114 Operating Surplus 26,562 27,571

Statement of Movements in Equity Public Equity at the start of the year 1,782,731 1,767,132 Net surplus/(deficit) for the year 26,562 27,571 Property, Plant and Equipment Revaluation gains (losses) taken to equity 20,819 20,819 Cashflow hedges 206 206 Total Recognised Income and Expenses 47,587 48,596 Total Equity at End of The Year 1,830,318 1,815,728

Statement of Financial Position as at year end Current Assets 8,421 8,993 Non-Current Assets 2,035,400 2,013,319 Total Assets 2,043,821 2,022,312

Current Liabilities 81,066 69,295 Non-Current Liabilities 132,437 137,289 Total Liabilities 213,503 206,584 Equity and Net Assets 1,830,318 1,815,728

Statement of Cashflows Net from Operating Activities 52,006 52,006 Net from Investing Activities (170,157) (170,157) Net from Financing Activities 120,000 120,000 Net Increase/(Decrease) in Cash and Cash Equivalents 1,849 1,849 Cash and Cash Equivalents at the beginning of the year 952 487 Cash and Cash Equivalents at the end of the year 2,801 2,336

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 FUNDING IMPACT STATEMENT

The funding impact statement has been prepared in accordance with Schedule 10 of the Local Government Act 2002, as well as sections 13 to 19 of the Local Government (Rating) Act 2002 and sets out: . The revenue and financing mechanisms used. . An indicative level or amount of funding for each mechanism. . A summary of the total rates requirement. . The application of funding methods to Council activities.

This statement should be read in conjunction with our Revenue & Financing Policy that sets out our policies in respect of each source of funding for operating and capital expenses. We have reviewed the Revenue and Financing Policy as part of preparing this Long-Term Plan and in doing so have taken into consideration: . The community outcomes to which each activity primarily contributes. . The distribution of benefits between the community as a whole, any identifiable part of the community, and individuals. . The period in or over which those benefits are expected to occur. . The extent to which the actions or inaction of particular individuals or a group contribute to the need to undertake the activity. . The costs and benefits, including consequences for transparency and accountability, of funding the activity distinctly from other activities. . The overall impact of any allocation of liability for revenue needs on the community.

The Consolidated Funding Statement includes petrol tax, funds from asset sales, rates penalties and rates remissions which are not directly attributable to a specific activity.

Table 18: Consolidated statement of cost of service

REVENUE Governance 54 54 111 57 58 119 60 62 128 65 67 Planning and Regulatory 5,552 5,473 5,731 6,073 6,281 6,538 6,687 7,130 7,308 7,639 7,819 Community Services and Facilities 8,750 12,495 14,643 10,686 8,848 8,571 4,988 7,161 5,829 5,974 6,172 Transportation 11,834 10,081 11,796 10,715 10,333 10,642 11,066 10,612 10,819 11,167 11,650 Stormwater 7 4 4 4 4 6 6 9 11 19 25 Wastewater Treatment and Disposal 845 1,149 1,190 1,221 1,257 1,295 1,331 1,377 1,426 1,479 1,537 Water Treatment and Supply 11,517 12,096 12,891 13,606 14,393 15,245 16,126 17,131 18,231 19,419 20,604 Support Services* 15,564 15,264 15,891 17,382 17,907 19,157 18,888 18,817 19,254 19,772 20,040 GROSS REVENUE 54,123 56,616 62,257 59,744 59,081 61,573 59,152 62,299 63,006 65,534 67,914 Less Internal Charges 15,477 15,161 15,785 17,274 17,796 19,044 18,772 18,698 19,133 19,648 19,913 NET REVENUE 38,646 41,455 46,472 42,470 41,285 42,529 40,380 43,601 43,873 45,886 48,001

OPERATING EXPENDITURE Governance 9,815 8,635 8,899 9,932 9,153 9,955 10,013 9,929 9,932 10,197 10,555 Planning and Regulatory 9,098 9,514 9,991 10,532 11,028 11,346 11,631 11,634 11,955 12,654 12,520 Community Services and Facilities 28,405 27,746 29,162 29,424 31,728 30,531 35,226 35,024 34,965 35,700 36,516 Transportation 22,368 23,295 23,747 24,587 25,057 25,290 25,204 25,313 25,458 25,723 26,166 Stormwater 4,379 4,527 5,119 5,575 6,014 6,261 6,227 6,393 6,545 6,969 7,295 Wastewater Treatment and Disposal 11,124 11,148 12,050 12,458 12,979 13,356 13,365 14,488 15,141 16,905 20,235 Water Treatment and Supply 13,113 12,671 13,414 13,960 14,592 15,389 15,877 16,702 17,361 18,020 18,598 Support Services 15,595 16,229 17,270 19,289 19,794 20,295 20,196 20,274 20,914 21,796 21,796 GROSS EXPENDITURE 113,897 113,765 119,652 125,757 130,345 132,423 137,739 139,757 142,271 147,964 153,681 Less Internal Charges 15,477 15,161 15,785 17,274 17,796 19,044 18,772 18,698 19,133 19,648 19,913 Less rates charged to Council properties 1,126 1,126 1,155 1,182 1,209 1,237 1,265 1,294 1,324 1,354 1,386 NET EXPENDITURE 97,294 97,478 102,712 107,301 111,340 112,142 117,702 119,765 121,814 126,962 132,382

NET COST OF SERVICE - OPERATING (58,648) (56,023) (56,240) (64,831) (70,055) (69,613) (77,322) (76,164) (77,941) (81,076) (84,381)

CAPITAL EXPENDITURE AND DEBT REPAYMENT Capital Expenditure (excluding Vested) 171,432 117,091 87,603 74,462 63,043 57,746 94,212 69,364 63,243 43,228 27,654 Vested Assets 15,176 11,717 12,126 12,463 12,824 13,203 13,589 14,012 14,471 14,952 15,414 Debt Repayment - - - - 3,000 9,000 - - 21,000 31,500 TOTAL CAPITAL EXPENDITURE AND DEBT REPAYMENT 186,608 128,808 99,729 86,925 78,867 79,949 107,801 83,376 77,714 79,180 74,568

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Table 19: Consolidated funding impact statement

NET COST OF SERVICE - OPERATING (58,648) (56,023) (56,240) (64,831) (70,055) (69,613) (77,322) (76,164) (77,941) (81,076) (84,381)

The funding impact statement is prepared in compliance with the requirements of clause 15, Part 1, Schedule 10 of the Local Government Act 2002. Unlike the Statement of Comprehensive Revenue and Expense, the funding impact statement is intended to show in a transparent manner, how all sources of funding received by us are applied. It does not include “non-cash” that is classified as income on the Statement of Comprehensive Revenue and Expense (as required by GAAP) such as assets that are vested to us through the subdivision process, or unrealised gains on assets. The Statement of Comprehensive Revenue and Expense also requires “non-cash” expenses such as depreciation, amortisation, and unrealised losses of assets to be reflected, whereas these are excluded from the funding impact statement. The reconciliation below identifies the differences between these two statements.

Table 20: Reconciliation between the funding impact statement and statement of comprehensive revenue and expense

Total prospective revenue and expense wholly 47,587 59,578 126,528 71,123 106,793 116,222 115,983 100,131 160,822 129,050 148,242 attributable to District Council Surplus (deficit) of operating funding per prospective 18,394 21,283 22,245 23,449 25,195 27,276 26,058 30,351 32,436 35,256 35,859 whole of Council funding impact statement Difference 29,193 38,295 104,283 47,674 81,598 88,946 89,925 69,780 128,386 93,794 112,384 The difference is due to: Capital income 20,397 30,125 39,862 37,882 40,587 40,462 35,545 32,494 31,305 30,147 29,616 Vested assets 15,176 26,515 12,126 12,464 12,824 13,203 13,587 14,012 14,470 14,953 15,412 Revaluation of assets 21,472 9,500 82,822 30,395 62,677 67,902 73,247 56,495 115,448 82,744 101,181 Gain (loss) on sale/disposal of assets (2,391) (516) (1,408) (2,190) (3,041) (2,109) (2,114) (2,584) (2,108) (2,101) (2,103) Depreciation and amortisation (25,461) (27,329) (29,119) (30,877) (31,449) (30,512) (30,340) (30,637) (30,729) (31,949) (31,722) Total explained difference 29,193 38,295 104,283 47,674 81,598 88,946 89,925 69,780 128,386 93,794 112,384

Rates Information

Rateable property numbers as required by legislation:

Table 21: Rateable property numbers

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Year 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Rateable Properties 22,522 23,088 23,751 24,477 25,326 26,170 26,993 27,731 28,464 29,172

Rates requirement figures quoted in the section below are GST inclusive (with GST at the prevailing rate).

District-wide funding

The funding of district-wide activities will be from a combination of general rates, uniform annual general charge (UAGC) and targeted area rates. This combination of general rates, UAGC and targeted area rates is referred to as ‘district-wide funding’. Activities funded from district-wide funding include governance, animal control, building, environmental health, resource management, development engineering, parks and reserves, Mighty River Domain, libraries, Cambridge Pool, Te Awamutu Events Centre, museums, heritage, cemeteries, public toilets, property, rural halls, town halls, community buildings, emergency management, litter bins, recycling, roading, stormwater, water supply and sewerage.

Definition of a separately used or inhabited part of a rating unit (SUIP).

A separately used or inhabited part of a rating unit exists where there is use or ability to use a part or parts of the rating unit as an independent residence; or in the case of a rating unit used for commercial or industrial business, where there is use or ability to use a part or parts of the rating unit for independent trading operations. This is on the basis that where a rating unit is configured for the purpose of separate inhabitation or use, even if it is not currently occupied, this constitutes a separate use of the rating unit by the owner.

General rate

A general rate is set under Section 13 of the Local Government (Rating) Act 2002 based on the capital value of each rating unit in the district and with no differential. The rate for 2021/22 is 0.1305 cents in the dollar on the capital value of each rating unit.

The general rate will fund 62.4 per cent of the district-wide funding.

Amount to be raised: $29,686,336 inclusive of GST.

Uniform annual general charge (UAGC)

A uniform annual general charge is set under Section 15 of the Local Government (Rating) Act 2002 at $730.00 inclusive of GST per separately used or inhabited part of a rating unit.

The UAGC will fund a portion of the district-wide funding.

Amount to be raised: $17,913,470 inclusive of GST.

Targeted rates

Targeted rates are set under sections 16 and 19 of the Local Government (Rating) Act 2002 for the activities listed below. The Council will not invite lump sum contributions in respect of any of these targeted rates.

Targeted area rates

A targeted area rate is set on each rating unit in the district. The targeted rate will be a fixed amount per rating unit. This rate will be set on a differential basis based on location, being the areas of Te Awamutu, Kakepuku, Cambridge, Maungatautari and Pirongia. The rates for the 2021/22 year are shown in the following table:

Table 22: Targeted area rates

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Area $ Rate (GST inclusive) $ Raising Cambridge 284.41 2,552,465 Kakepuku 187.91 228,123 Maungatautari 242.06 348,813 Pirongia 167.18 527,272 Te Awamutu 247.45 1,691,043

The targeted area rate will fund a portion of the district-wide funding and fund the public community/group benefit element of activities.

The activities funded from the targeted area rate include community boards, community grants, libraries, Cambridge Pool, Te Awamutu Events Centre, District Museum, Cambridge Town Hall (Cambridge area only) community properties (Cambridge and Te Awamutu areas), passenger transport, Cambridge Refuse Centre grant, and National Cycling Centre of Excellence.

Amount to be raised: $5,347,716 inclusive of GST.

Cambridge community sports hall

A targeted rate is set to fund the loan charges for the grant made for the development of the sports hall located at the Cambridge High School.

The targeted rate is a fixed amount per rating unit. A rate of $10.61 inclusive of GST is set for each rating unit in the Cambridge and Maungatautari areas.

Amount to be raised: $109,772 inclusive of GST.

Urban town halls

A targeted rate is set to fund the maintenance costs for the Pirongia Memorial Hall and the Kihikihi Town Hall and part of the maintenance costs of the Cambridge Town Hall.

The targeted rate is a fixed amount per rating unit. A rate of $6.08 inclusive of GST is set for each rating unit in the Cambridge and Te Awamutu areas and in the Pirongia Township being roll number 4605.

Amount to be raised: $99,116 inclusive of GST.

Capital works

A targeted rate is set to fund capital costs in connection with improvements and extensions to footpaths, kerbing and channelling of roads and street lighting.

The capital works rate is based on the capital value of each rating unit in the district. The capital works rate is set on a differential basis based on location, with the categories being the areas of Te Awamutu and Cambridge. The rates in cents per dollar of capital value are shown in the following table:

Table 23: Capital works targeted rate

Rate in cents per dollar Area (GST inclusive) $ Raising Cambridge 0.0006 44,183 Te Awamutu 0.0009 38,248

Amount to be raised: $82,431 inclusive of GST.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Stormwater

A targeted rate is set to fund the operating costs and loan charges for stormwater in urban and rural areas of the district. The stormwater rate is based on the capital value of each rating unit in the district. The stormwater rate is set on a differential basis based on location, the categories being urban and rural. Urban is defined as being the urban drainage areas of Cambridge, Te Awamutu, Kihikihi, Ōhaupō, Pirongia and Karāpiro, as shown on Drainage Maps on www.waipadc.govt.nz. Rural is defined as the remaining area of the district not defined as urban. The rates for 2021/22 in cents per dollar of capital value are shown in the following table:

Table 24: Stormwater targeted rates

Rate in cents per dollar (GST inclusive) $ Raising Urban 0.0393 3,945,942 Rural 0.0054 635,824

Amount to be raised: $4,581,766 inclusive of GST.

Sewerage charges

A targeted rate is set for sewerage disposal costs and loan charges for each rating unit in the areas of the Cambridge sewerage scheme and the Te Awamutu sewerage scheme.

The targeted rate is set on a differential basis based on the provision of service, the categories of service being connected and serviceable. Connected means any rating unit that is connected to the Cambridge or Te Awamutu sewerage scheme. Serviceable means any rating unit situated within 30 metres of a public sewerage drain in one of the above Council sewerage scheme areas to which it is capable of being effectively connected but which is not so connected. For connected rating units, the liability is an amount per rating unit, calculated based on the number of pans and urinals at the rating unit. The rates for the 2021/22 year are:

Table 25: Sewerage targeted rate $ Rate per pan or urinal (GST inclusive) $ Raising Connected (3 or less pans) 631.18 8,676,359 Connected (4 -10 pans) 536.51 626,629 Connected (11-15 pans) 441.83 197,498 Connected (16-20 pans) 385.02 99,335 Connected (21-35 pans) 347.15 178,088 Connected (36-45 pans) 302.98 25,450 Connected (46 or more pans) 284.03 321,234 $ Rate per rating unit (GST inclusive) $ Raising Serviceable 315.59 138,861

A rating unit used primarily as a residence for one household will be treated as having no more than one pan or urinal. Rating units that are neither connected to the scheme nor serviceable are not liable for this rate.

Amount to be raised: $10,263,454 inclusive of GST.

Water charges

A targeted rate is set to fund water supply costs and loan charges to non-metered rating units in the areas of the Cambridge water supply and the Te Awamutu water supply.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 The targeted rate is set on a differential basis based on the provision of service, the categories of service being connected and serviceable, and is a fixed amount per separately used or inhabited part of a rating unit. Connected means connected to Council water works in the Cambridge or Te Awamutu water supply areas, but excluding metered connections. Serviceable means within 100 metres of a supply pipe in either of the above water supply areas and capable of being effectively connected but not so connected. The rates for the 2021/22 year are:

Table 26: Non-metered water targeted rate

$ Rate per Suip (GST inclusive) $ Raising Serviceable 117.53 24,681 Rating units that have a metered supply and those that are neither connected to the scheme, nor serviceable are not liable for this rate.

Amount to be raised: $24,681 inclusive of GST.

a) A targeted rate is set for the supply of water to rating units with metered connections.

The targeted rate includes both an amount per separately used or inhabited part of a rating unit and a charge based on the cubic metres of water consumed and is set on a differential basis based on the provision of service, for all metered rating units other than rating units subject to a separate water supply contract. The differential categories of service are potable and raw water supply. The rates for the 2021/22 year are:

Table 27: Metered water targeted rate

$ Rate per SUIP Consumption (Incl GST) $ Rate (GST incl) Potable Water 136.85 1.6859 per m3 Raw Water 136.85 0.4215 per m3

Amount to be raised: $13,278,221 inclusive of GST.

a) A targeted rate is set to fund the Arohena rural water supply loan costs for Waipā ratepayers within the Arohena rural water supply area. This revenue is collected on behalf of Otorohanga District Council, who administers the Arohena rural water supply. The Arohena water rate is based on the capital value of each rating unit located within the Arohena rural water supply area. The rate for 2020/21 in cents per dollar of capital value is 0.0078 inclusive of GST.

Amount to be raised: $5,661 inclusive of GST.

Recycling charges

A targeted rate is set to fund the provision of a kerbside refuse recycling service to each household in the district.

The targeted rate is a fixed amount of $108.00 inclusive of GST per separately used or inhabited part of a rating unit.

Amount to be raised: $2,367,302 inclusive of GST.

Community Halls

Council has a number of community halls which have a targeted rate set for each hall. The targeted rates are to fund part of the costs of the relevant community hall.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 These rates are a fixed amount per separately used or inhabited part of a rating unit SUIP ( where for the purpose of Community Hall rates SUIP is defined to include only household units), and will be charged to every rating unit within the relevant community hall areas on which there is at least one residential household.

The plans showing the boundaries of the various community hall areas can be found at www.waipadc.govt.nz.

The following table shows the details for the various community hall targeted rates:

Table 28: Community hall targeted rates

$ Rate per Suip (GST inclusive) $ Raising Fencourt Hall 16.00 6,318 Hautapu Hall 20.40 9,691 Horahora Hall 26.95 3,692 Karapiro Hall 26.75 9,603 Koromatua Hall 20.40 5,875 Maungatautari Hall 37.25 6,481 Monavale 30.00 6,420 Ngahinapouri Hall 30.00 13,411 Ohaupo Hall 13.30 5,880 Parawera Hall 18.60 2,324 Paterangi Hall 28.55 5,568 Pukeatua Hall 21.30 4,047 Rangioawhia Hall 14.25 1,866 Rukuhia Hall 26.10 7,960 Te Miro Hall 27.90 5,050 Te Rore Hall 13.80 662 Whitehall Hall 30.00 2,941

Community Centres

Council has a number of community centres which have a targeted rate set for each community centre. The targeted rates are to fund part of the costs of the relevant community centre.

These rates are a fixed amount per separately used or inhabited part of a rating unit SUIP ( where for the purpose of Community Centre rates SUIP is defined to include only household units), and will be charged to every rating unit within the relevant community centre area on which there is at least one residential household.

The plans showing the boundaries of the various community centre areas can be found at www.waipadc.govt.nz

The following table shows the details for the various community centre targeted rates:

Table 29: Community centre targeted rates

$ Rate per Suip (GST inclusive) $ Raising Kaipaki 39.70 11,710 Ohaupo 38.80 35,271 Pirongia 17.35 16,989

Early payment of rates

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Sections 55 and 56 of the Local Government (Rating) Act 2002 empower councils to adopt policies in relation to the early payment of rates. Council accepts payment in full of all rates assessed in each year on or before the due date for the first instalment of the year. No discount will be given to any payment of rates received on this basis.

Rates payable by instalments

Rates are payable in four equal instalments with the due dates and penalty dates as set out in the table below:

Table 30: Rates payable by instalments

Instalment Due Date Penalty Added Instalment 1 23 August 2021 30 August 2021 Instalment 2 22 November 2021 29 November 2021 Instalment 3 21 February 2022 28 February 2022 Instalment 4 23 May 2022 30 May 2022

Invoices for the supply of water via metered connections are payable in four instalments. The location where the water is supplied within the district will determine the month of meter reading, invoice date, due date and the penalty date. The due dates and penalty dates are as per the following table.

Table 31: Rate payment due dates

Location Invoiced during month of: Due Date Penalty Added Te Awamutu / Pirongia July 31-Aug-21 7-Sep-21 October 30-Nov-21 7-Dec-21 January 2-Mar-22 9-Mar-22 April 31-May-22 7-Jun-22 Kihikihi July 31-Aug-21 7-Sep-21 October 30-Nov-21 7-Dec-21 January 2-Mar-22 9-Mar-22 April 31-May-22 7-Jun-22 Cambridge August 30-Sep-21 7-Oct-21 November 5-Jan-22 12-Jan-22 February 31-Mar-22 7-Apr-22 May 30-Jun-22 7-Jul-22 Pukerimu / Ohaupo September 1-Nov-21 8-Nov-21 December 31-Jan-22 7-Feb-22 March 2-May-22 9-May-22 June 1-Aug-22 8-Aug-22

Penalties on rates not paid by the due date

Section 58 of the Local Government (Rating) Act 2002 enables penalties to be imposed. A penalty of three per cent will be added to all instalments or part thereof remaining unpaid on the relevant date in the “Penalty Added” column of the tables above under the heading “Rates payable by instalment”.

An additional penalty of three per cent will be added to any rates assessed in any previous year that are still unpaid on 6 July 2021. The penalty will be added on 7 July 2021.

A further additional penalty of three per cent will be added to rates from the previous years that are still unpaid after 5 January 2022. The penalty will be added on 7 January 2022.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Rates breakdown indicator properties

Table 32: Rates breakdown indicator properties

Cents /$ Capital Value Rates of CV 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 General 0.1305 0.1347 0.1388 0.1370 0.1388 0.1433 0.1436 0.1450 0.1455 0.1416 Stormwater (Urban) 0.0393 0.0440 0.0467 0.0490 0.0490 0.0468 0.0463 0.0460 0.0477 0.0486 Stormwater (Rural) 0.0054 0.0056 0.0059 0.0060 0.0062 0.0061 0.0061 0.0062 0.0063 0.0064

Uniform Annual General Charge $ 730.00 751.00 772.00 757.00 771.00 780.00 784.00 787.00 788.00 766.00

Fixed Targeted Rates $ 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Sewerage 631.18 669.59 670.45 674.48 665.28 635.95 670.45 680.23 746.81 888.95 Targeted Areas 167 - 284 166 - 282 182 - 279 192 - 287 195 - 349 210 - 411 196 - 413 198 - 411 202 - 403 209 - 382 CB Community Sports Hall 10.61 10.33 10.01 9.77 9.44 9.08 8.55 8.35 8.20 7.84 Recycling 108.00 115.00 114.00 131.00 126.00 126.00 128.00 124.00 126.00 121.00

The indicator properties are shown INCLUSIVE of GST and do not include any metered water rates. The amount of metered water is not dependent on the value or size of a property, only on the quantity of water used by the owners or tenants.

Cambridge indicator properties

Table 33: Cambridge indicator properties

Cambridge Ward (Residential) 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $440,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 956 1,034 1,077 1,074 1,102 1,073 1,032 1,073 1,066 1,133 1,272 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 721 756 803 826 828 835 845 843 848 858 844 Total Rates 2,385 2,520 2,631 2,672 2,687 2,679 2,657 2,700 2,701 2,779 2,882 $ incr per week 2.59 2.13 0.79 0.29 -0.15 -0.42 0.83 0.01 1.49 2.00 Percentage Increase 5.6% 4.4% 1.6% 0.6% -0.3% -0.8% 1.6% 0.0% 2.9% 3.7% Cambridge Ward (Residential) 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $700,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 956 1,034 1,077 1,074 1,102 1,073 1,032 1,073 1,066 1,133 1,272 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,140 1,199 1,269 1,311 1,313 1,325 1,340 1,338 1,346 1,361 1,339 Total Rates 2,804 2,963 3,097 3,157 3,172 3,169 3,153 3,195 3,198 3,282 3,378 $ incr per week 3.06 2.58 1.14 0.30 -0.06 -0.31 0.82 0.06 1.60 1.85 Percentage Increase 5.7% 4.5% 1.9% 0.5% -0.1% -0.5% 1.3% 0.1% 2.6% 2.9% Cambridge Ward (Residential) 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $1,450,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 956 1,034 1,077 1,074 1,102 1,073 1,032 1,073 1,066 1,133 1,272 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 2,347 2,477 2,615 2,709 2,713 2,738 2,770 2,765 2,781 2,813 2,768 Total Rates 4,011 4,241 4,443 4,555 4,572 4,582 4,582 4,622 4,634 4,734 4,806 $ incr per week 4.41 3.87 2.15 0.34 0.18 0.01 0.77 0.22 1.92 1.40 Percentage Increase 5.7% 4.8% 2.5% 0.4% 0.2% 0.0% 0.9% 0.2% 2.1% 1.5%

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Rural Residential Cambridge 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $790,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 372 392 389 386 394 379 368 372 359 357 359 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,050 1,084 1,127 1,156 1,141 1,156 1,190 1,192 1,204 1,208 1,177 Total Rates 2,130 2,206 2,268 2,314 2,292 2,306 2,338 2,347 2,349 2,353 2,303 $ incr per week 1.46 1.18 0.90 -0.43 0.27 0.61 0.19 0.03 0.07 -0.97 Percentage Increase 3.6% 2.8% 2.1% -1.0% 0.6% 1.4% 0.4% 0.1% 0.2% -2.1% Rural Residential Cambridge 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $1,110,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 399 423 428 423 448 428 417 423 406 406 404 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,470 1,521 1,578 1,622 1,601 1,622 1,670 1,672 1,689 1,695 1,652 Total Rates 2,577 2,675 2,757 2,818 2,806 2,821 2,867 2,879 2,882 2,889 2,822 $ incr per week 1.88 1.59 1.17 -0.22 0.29 0.87 0.24 0.05 0.15 -1.30 Percentage Increase 3.8% 3.1% 2.2% -0.4% 0.5% 1.6% 0.4% 0.1% 0.3% -2.3% Rural Residential Cambridge 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $2,440,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 408 433 437 433 458 438 427 433 416 416 413 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 3,217 3,337 3,454 3,559 3,512 3,559 3,664 3,668 3,705 3,720 3,624 Total Rates 4,333 4,500 4,642 4,764 4,727 4,767 4,870 4,885 4,908 4,923 4,804 $ incr per week 3.21 2.74 2.34 -0.71 0.78 1.97 0.29 0.43 0.30 -2.30 Percentage Increase 3.9% 3.2% 2.6% -0.8% 0.9% 2.2% 0.3% 0.5% 0.3% -2.4%

Commercial / Industrial Cambridge 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $315,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 853 926 962 960 971 947 906 945 942 1,007 1,151 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 520 543 578 593 594 600 606 605 609 616 606 Total Rates 2,081 2,199 2,291 2,325 2,322 2,318 2,293 2,335 2,338 2,410 2,523 $ incr per week 2.26 1.78 0.64 -0.05 -0.09 -0.47 0.80 0.06 1.40 2.17 Percentage Increase 5.7% 4.2% 1.5% -0.1% -0.2% -1.1% 1.8% 0.1% 3.1% 4.7% Commercial / Industrial Cambridge 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $860,000 with 2 dwellings / units $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 1,431 1,557 1,632 1,630 1,646 1,612 1,542 1,616 1,622 1,753 2,040 UAGC 1,416 1,460 1,502 1,544 1,514 1,542 1,560 1,568 1,574 1,576 1,532 Capital Value Rates 1,398 1,472 1,556 1,609 1,612 1,626 1,645 1,643 1,652 1,671 1,644 Total Rates 4,245 4,489 4,690 4,783 4,771 4,781 4,748 4,826 4,848 5,000 5,216 $ incr per week 4.70 3.86 1.80 -0.23 0.18 -0.63 1.51 0.42 2.93 4.16 Percentage Increase 5.8% 4.5% 2.0% -0.2% 0.2% -0.7% 1.7% 0.5% 3.1% 4.3% Commercial / Industrial Cambridge 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $2,220,000 with 3 dwellings / units $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 2,009 2,189 2,301 2,300 2,320 2,277 2,178 2,286 2,302 2,500 2,929 UAGC 1,416 1,460 1,502 1,544 1,514 1,542 1,560 1,568 1,574 1,576 1,532 Capital Value Rates 3,587 3,789 3,996 4,144 4,151 4,189 4,237 4,231 4,255 4,304 4,235 Total Rates 7,012 7,438 7,799 7,989 7,985 8,008 7,976 8,085 8,131 8,380 8,696 $ incr per week 8.18 6.95 3.65 -0.07 0.45 -0.62 2.09 0.90 4.78 6.08 Percentage Increase 6.1% 4.9% 2.4% 0.0% 0.3% -0.4% 1.4% 0.6% 3.1% 3.8%

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Te Awamutu indicator properties

Table 34: Te Awamutu indicator properties

Te Awamutu Ward (Residential) 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $450,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 933 987 1,033 1,049 1,083 1,140 1,173 1,212 1,215 1,276 1,392 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 739 774 822 845 847 855 865 864 868 877 863 Total Rates 2,380 2,491 2,606 2,666 2,686 2,766 2,818 2,860 2,870 2,941 3,021 $ incr per week 2.14 2.21 1.15 0.39 1.54 1.00 0.80 0.19 1.36 1.54 Percentage Increase 4.7% 4.6% 2.3% 0.8% 3.0% 1.9% 1.5% 0.3% 2.5% 2.7% Te Awamutu Ward (Residential) 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $560,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 933 987 1,033 1,049 1,083 1,140 1,173 1,212 1,215 1,276 1,392 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 916 962 1,019 1,049 1,052 1,062 1,075 1,074 1,078 1,090 1,073 Total Rates 2,557 2,679 2,803 2,871 2,892 2,974 3,028 3,070 3,081 3,154 3,230 $ incr per week 2.34 2.40 1.30 0.40 1.57 1.05 0.80 0.21 1.40 1.47 Percentage Increase 4.8% 4.7% 2.4% 0.7% 2.8% 1.8% 1.4% 0.4% 2.4% 2.4% Te Awamutu Ward (Residential) 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $950,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 933 987 1,033 1,049 1,083 1,140 1,173 1,212 1,215 1,276 1,392 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,545 1,628 1,720 1,776 1,781 1,798 1,820 1,818 1,825 1,845 1,816 Total Rates 3,186 3,344 3,504 3,597 3,620 3,709 3,773 3,813 3,827 3,909 3,973 $ incr per week 3.05 3.07 1.80 0.44 1.71 1.22 0.78 0.27 1.56 1.24 Percentage Increase 5.0% 4.8% 2.7% 0.6% 2.5% 1.7% 1.1% 0.4% 2.1% 1.7%

Rural Residential Te Awamutu 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $620,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 355 355 364 379 408 475 537 541 535 529 503 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 829 854 889 908 898 910 937 939 946 950 925 Total Rates 1,892 1,940 2,003 2,059 2,063 2,156 2,255 2,264 2,268 2,266 2,194 $ incr per week 0.93 1.23 1.07 0.07 1.80 1.89 0.19 0.08 -0.04 -1.39 Percentage Increase 2.5% 3.3% 2.8% 0.2% 4.5% 4.6% 0.4% 0.2% -0.1% -3.2% Rural Residential Te Awamutu 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $1,070,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 355 355 364 379 408 475 537 541 535 529 503 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,421 1,470 1,524 1,563 1,545 1,566 1,613 1,616 1,629 1,634 1,593 Total Rates 2,484 2,555 2,639 2,714 2,710 2,812 2,930 2,942 2,951 2,951 2,861 $ incr per week 1.38 1.61 1.44 -0.08 1.97 2.27 0.22 0.18 0.00 -1.73 Percentage Increase 2.9% 3.3% 2.8% -0.1% 3.8% 4.2% 0.4% 0.3% 0.0% -3.0% Rural Residential Te Awamutu 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $1,770,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 458 463 479 493 539 601 663 669 659 655 624 UAGC 1,416 1,460 1,502 1,544 1,514 1,542 1,560 1,568 1,574 1,576 1,532 Capital Value Rates 2,342 2,427 2,513 2,582 2,551 2,587 2,665 2,670 2,691 2,700 2,631 Total Rates 4,216 4,351 4,493 4,618 4,604 4,730 4,888 4,907 4,924 4,931 4,786 $ incr per week 2.60 2.74 2.41 -0.27 2.41 3.04 0.37 0.32 0.13 -2.77 Percentage Increase 3.2% 3.3% 2.8% -0.3% 2.7% 3.3% 0.4% 0.3% 0.1% -2.9%

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Commercial / Industrial Te Awamutu 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $365,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 830 879 918 935 952 1,014 1,047 1,084 1,091 1,150 1,271 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 602 629 669 686 688 695 703 702 705 713 701 Total Rates 2,140 2,238 2,338 2,393 2,396 2,480 2,530 2,570 2,583 2,650 2,738 $ incr per week 1.89 1.93 1.06 0.06 1.60 0.97 0.76 0.26 1.29 1.69 Percentage Increase 4.6% 4.5% 2.4% 0.1% 3.5% 2.0% 1.6% 0.5% 2.6% 3.3% Commercial / Industrial Te Awamutu 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $960,000 with 4 dwellings / units $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 1,408 1,510 1,588 1,606 1,626 1,680 1,683 1,754 1,771 1,896 2,159 UAGC 2,832 2,920 3,004 3,088 3,028 3,084 3,120 3,136 3,148 3,152 3,064 Capital Value Rates 1,561 1,645 1,737 1,795 1,799 1,817 1,839 1,837 1,844 1,864 1,835 Total Rates 5,801 6,075 6,329 6,488 6,453 6,580 6,642 6,727 6,764 6,913 7,058 $ incr per week 5.26 4.90 3.06 -0.67 2.44 1.18 1.64 0.71 2.86 2.80 Percentage Increase 4.7% 4.2% 2.5% -0.5% 2.0% 0.9% 1.3% 0.5% 2.2% 2.1% Commercial / Industrial Te Awamu$t2u,230,000 with 4 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 dwellings / units $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 2,708 2,930 3,094 3,114 3,144 3,176 3,114 3,263 3,302 3,577 4,160 UAGC 2,832 2,920 3,004 3,088 3,028 3,084 3,120 3,136 3,148 3,152 3,064 Capital Value Rates 3,610 3,813 4,018 4,161 4,172 4,212 4,263 4,259 4,276 4,323 4,254 Total Rates 9,150 9,663 10,117 10,363 10,343 10,472 10,497 10,657 10,726 11,052 11,478 $ incr per week 9.86 8.73 4.73 -0.37 2.48 0.48 3.08 1.33 6.26 8.19 Percentage Increase 5.6% 4.7% 2.4% -0.2% 1.2% 0.2% 1.5% 0.6% 3.0% 3.9%

Pirongia indicator properties

Table 35: Pirongia indicator properties

Pirongia Ward - Rural 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $670,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 309 301 307 322 349 347 362 351 348 354 356 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 876 911 940 969 958 972 1,001 1,003 1,013 1,017 992 Total Rates 1,893 1,942 1,998 2,064 2,065 2,090 2,143 2,138 2,148 2,159 2,114 $ incr per week 0.95 1.07 1.27 0.01 0.48 1.02 -0.10 0.20 0.21 -0.87 Percentage Increase 2.6% 2.9% 3.3% 0.0% 1.2% 2.5% -0.2% 0.5% 0.5% -2.1% Pirongia Ward - Rural 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $2,880,000 with 2 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 385 383 396 410 454 447 462 452 446 454 451 UAGC 1,416 1,460 1,502 1,544 1,514 1,542 1,560 1,568 1,574 1,576 1,532 Capital Value Rates 3,764 3,914 4,041 4,167 4,118 4,176 4,303 4,311 4,355 4,372 4,262 Total Rates 5,565 5,757 5,938 6,122 6,087 6,165 6,324 6,332 6,374 6,401 6,245 $ incr per week 3.68 3.48 3.53 -0.67 1.51 3.06 0.14 0.82 0.52 -3.00 Percentage Increase 3.4% 3.1% 3.1% -0.6% 1.3% 2.6% 0.1% 0.7% 0.4% -2.4% Pirongia Ward - Rural 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $6,280,000 with 2 dwellings $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 385 383 396 410 454 447 462 452 446 454 451 UAGC 1,416 1,460 1,502 1,544 1,514 1,542 1,560 1,568 1,574 1,576 1,532 Capital Value Rates 8,208 8,535 8,811 9,087 8,980 9,106 9,382 9,401 9,495 9,533 9,294 Total Rates 10,009 10,378 10,708 11,041 10,949 11,095 11,404 11,422 11,515 11,563 11,277 $ incr per week 7.08 6.36 6.40 -1.78 2.81 5.94 0.34 1.80 0.91 -5.49 Percentage Increase 3.7% 3.2% 3.1% -0.8% 1.3% 2.8% 0.2% 0.8% 0.4% -2.5%

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Pirongia Village 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $520,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 300 293 298 314 341 338 353 342 339 345 347 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 847 889 943 971 973 983 995 993 999 1,011 995 Total Rates 1,855 1,912 1,991 2,056 2,071 2,092 2,128 2,119 2,125 2,143 2,108 $ incr per week 1.09 1.54 1.25 0.28 0.41 0.68 -0.16 0.12 0.35 -0.68 Percentage Increase 3.1% 4.2% 3.3% 0.7% 1.0% 1.7% -0.4% 0.3% 0.9% -1.7% Pirongia Village 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $690,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 300 293 298 314 341 338 353 342 339 345 347 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,120 1,178 1,246 1,286 1,290 1,302 1,318 1,316 1,324 1,339 1,318 Total Rates 2,128 2,200 2,295 2,372 2,387 2,411 2,451 2,442 2,450 2,472 2,431 $ incr per week 1.40 1.83 1.47 0.30 0.47 0.76 -0.17 0.15 0.42 -0.78 Percentage Increase 3.4% 4.3% 3.3% 0.7% 1.0% 1.6% -0.4% 0.3% 0.9% -1.6% Pirongia Village 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $1,020,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 300 293 298 314 341 338 353 342 339 345 347 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,649 1,738 1,836 1,898 1,903 1,922 1,945 1,943 1,954 1,977 1,946 Total Rates 2,657 2,761 2,885 2,984 3,001 3,031 3,078 3,069 3,080 3,109 3,059 $ incr per week 2.00 2.39 1.90 0.33 0.58 0.90 -0.18 0.22 0.56 -0.97 Percentage Increase 3.9% 4.5% 3.4% 0.6% 1.0% 1.5% -0.3% 0.4% 0.9% -1.6%

Ōhaupō indicator properties

Table 36: Ōhaupō indicator properties

Ohaupo Village 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $620,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 335 327 333 348 375 373 388 377 374 380 382 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 810 843 870 897 887 899 926 928 937 941 918 Total Rates 1,853 1,900 1,954 2,018 2,019 2,043 2,094 2,089 2,098 2,109 2,066 $ incr per week 0.90 1.03 1.23 0.03 0.46 0.98 -0.10 0.19 0.20 -0.83 Percentage Increase 2.5% 2.8% 3.3% 0.1% 1.2% 2.5% -0.3% 0.5% 0.5% -2.1% Ohaupo Village 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $810,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 335 327 333 348 375 373 388 377 374 380 382 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,299 1,375 1,447 1,503 1,507 1,521 1,540 1,538 1,547 1,565 1,541 Total Rates 2,342 2,433 2,531 2,623 2,639 2,665 2,708 2,699 2,708 2,733 2,689 $ incr per week 1.75 1.89 1.77 0.31 0.51 0.81 -0.17 0.18 0.47 -0.85 Percentage Increase 3.9% 4.0% 3.6% 0.6% 1.0% 1.6% -0.3% 0.3% 0.9% -1.6% Ohaupo Village 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $935,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 335 327 333 348 375 373 388 377 374 380 382 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,500 1,588 1,671 1,734 1,739 1,756 1,777 1,776 1,786 1,806 1,778 Total Rates 2,543 2,645 2,755 2,855 2,872 2,900 2,945 2,936 2,947 2,974 2,926 $ incr per week 1.75 1.89 1.77 0.31 0.51 0.81 -0.17 0.18 0.47 -0.85 Percentage Increase 4.0% 4.1% 3.6% 0.6% 1.0% 1.6% -0.3% 0.4% 0.9% -1.6%

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Ngāhinapōuri indicator properties

Table 37: Ngāhinapōuri indicator properties

Ngahinapouri 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $510,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 312 305 311 326 353 351 366 354 352 358 360 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 667 693 716 738 729 740 762 763 771 774 755 Total Rates 1,687 1,728 1,777 1,836 1,840 1,862 1,908 1,902 1,910 1,920 1,881 $ incr per week 0.79 0.94 1.14 0.07 0.42 0.89 -0.11 0.15 0.19 -0.75 Percentage Increase 2.4% 2.8% 3.3% 0.2% 1.2% 2.5% -0.3% 0.4% 0.5% -2.0% Ngahinapouri 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $1,370,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 303 296 301 317 344 341 356 345 342 348 350 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,791 1,862 1,922 1,982 1,959 1,987 2,047 2,051 2,071 2,080 2,028 Total Rates 2,802 2,887 2,974 3,071 3,060 3,099 3,183 3,180 3,201 3,216 3,144 $ incr per week 1.65 1.67 1.87 -0.22 0.75 1.61 -0.06 0.40 0.29 -1.38 Percentage Increase 3.1% 3.0% 3.3% -0.4% 1.3% 2.7% -0.1% 0.7% 0.5% -2.2% Ngahinapouri 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $4,181,000 with 2 dwellings $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 445 443 456 470 514 507 522 512 506 514 511 UAGC 1,416 1,460 1,502 1,544 1,514 1,542 1,560 1,568 1,574 1,576 1,532 Capital Value Rates 5,465 5,682 5,866 6,050 5,979 6,062 6,246 6,259 6,322 6,347 6,188 Total Rates 7,326 7,585 7,824 8,064 8,007 8,112 8,328 8,339 8,401 8,436 8,231 $ incr per week 4.98 4.58 4.63 -1.10 2.01 4.16 0.22 1.19 0.67 -3.95 Percentage Increase 3.5% 3.1% 3.1% -0.7% 1.3% 2.7% 0.1% 0.7% 0.4% -2.4%

Kakepuku indicator properties

Table 38: Kakepuku indicator properties

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Kakepuku Ward 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $1,400,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 303 296 302 317 345 343 357 345 343 349 351 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,830 1,903 1,964 2,026 2,002 2,030 2,092 2,096 2,117 2,125 2,072 Total Rates 2,841 2,929 3,017 3,115 3,104 3,144 3,229 3,225 3,247 3,262 3,189 $ incr per week 1.69 1.71 1.88 -0.21 0.77 1.64 -0.08 0.42 0.28 -1.39 Percentage Increase 3.1% 3.0% 3.2% -0.3% 1.3% 2.7% -0.1% 0.7% 0.4% -2.2% Kakepuku Ward 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $5,000,000 with 3 dwellings $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 561 564 584 597 659 647 662 653 643 653 645 UAGC 2,124 2,190 2,253 2,316 2,271 2,313 2,340 2,352 2,361 2,364 2,298 Capital Value Rates 6,535 6,795 7,015 7,235 7,150 7,250 7,470 7,485 7,560 7,590 7,400 Total Rates 9,220 9,549 9,852 10,148 10,080 10,210 10,472 10,490 10,564 10,607 10,343 $ incr per week 6.33 5.83 5.70 -1.31 2.50 5.03 0.36 1.42 0.81 -5.06 Percentage Increase 3.6% 3.2% 3.0% -0.7% 1.3% 2.6% 0.2% 0.7% 0.4% -2.5% Kakepuku Ward 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $7,520,000 with 3 dwellings $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 509 512 532 545 607 595 609 601 591 601 593 UAGC 2,124 2,190 2,253 2,316 2,271 2,313 2,340 2,352 2,361 2,364 2,298 Capital Value Rates 9,829 10,220 10,551 10,881 10,754 10,904 11,235 11,257 11,370 11,415 11,130 Total Rates 12,462 12,922 13,336 13,743 13,632 13,812 14,184 14,211 14,323 14,380 14,021 $ incr per week 6.33 5.83 5.70 -1.31 2.50 5.03 0.36 1.42 0.81 -5.06 Percentage Increase 3.6% 3.2% 3.0% -0.7% 1.3% 2.6% 0.2% 0.7% 0.4% -2.5%

Maungatautari indicator properties

Table 39: Maungatautari indicator properties

Maungatautari Ward 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $840,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 364 389 391 386 408 394 384 392 375 376 374 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 1,098 1,142 1,179 1,215 1,201 1,218 1,255 1,257 1,270 1,275 1,243 Total Rates 2,170 2,260 2,320 2,373 2,367 2,383 2,419 2,433 2,432 2,439 2,383 $ incr per week 1.74 1.15 1.02 -0.13 0.32 0.70 0.26 -0.02 0.13 -1.07 Percentage Increase 4.2% 2.7% 2.3% -0.3% 0.7% 1.5% 0.6% 0.0% 0.3% -2.3% Maungatautari Ward 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $2,305,000 with 1 dwelling $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 352 377 379 374 396 382 373 380 363 364 362 UAGC 708 730 751 772 757 771 780 784 787 788 766 Capital Value Rates 3,013 3,133 3,234 3,335 3,296 3,342 3,444 3,451 3,485 3,499 3,411 Total Rates 4,073 4,239 4,364 4,481 4,450 4,495 4,596 4,614 4,635 4,651 4,540 $ incr per week 3.20 2.39 2.26 -0.61 0.88 1.94 0.35 0.40 0.30 -2.14 Percentage Increase 4.1% 2.9% 2.7% -0.7% 1.0% 2.2% 0.4% 0.5% 0.3% -2.4% Maungatautari Ward 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 $6,200,000 with 2 dwellings $ $ $ $ $ $ $ $ $ $ $ Fixed Targeted Rates 590 625 641 634 690 666 657 668 643 648 636 UAGC 1,416 1,460 1,502 1,544 1,514 1,542 1,560 1,568 1,574 1,576 1,532 Capital Value Rates 8,103 8,426 8,699 8,971 8,866 8,990 9,263 9,281 9,374 9,412 9,176 Total Rates 10,109 10,510 10,841 11,149 11,070 11,198 11,479 11,517 11,592 11,636 11,344 $ incr per week 7.71 6.36 5.92 -1.51 2.46 5.41 0.73 1.43 0.85 -5.61 Percentage Increase 4.0% 3.1% 2.8% -0.7% 1.2% 2.5% 0.3% 0.6% 0.4% -2.5%

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 STATEMENT OF ACCOUNTING POLICES

Reporting entity

Waipa District Council is a territorial local authority established under the Local Government Act 2002 (LGA) and is domiciled and operates in New Zealand. The relevant legislation governing the Council’s operations includes the LGA and the Local Government (Rating) Act 2002.

The primary objective of Council is to provide goods or services for community or social benefit rather than making a financial return. Accordingly, Council has designated itself as public benefit entities (PBEs) for financial reporting purposes. The main purpose of these statements is to provide users with information about the core services that Council intends to provide ratepayers, the expected cost of those services and the consequent requirement for rate funding.

Basis of preparation

The financial statements have been prepared on the going concern basis, and the accounting policies have been applied consistently throughout the period.

The financial statements of the Council have been prepared in accordance with the requirements of the LGA and the Local Government (Financial Reporting and Prudence) Regulations 2014 (LG(FRP)R), which include the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP).

The financial statements have been prepared in accordance with Tier 1 PBE accounting standards.

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000). The functional currency of Council is New Zealand dollars.

Summary of significant accounting policies

Goods and services taxation (GST)

All items in the financial statements are stated exclusive of GST, except for receivables and payables which are stated on a GST inclusive basis.

The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from the IRD is classified as an operating cash flow in the statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

Income tax

The Council is tax exempt for income tax purposes.

Budget figures

The budget figures have been prepared in accordance with the New Zealand Generally Accepted Accounting Practices, using accounting policies that are consistent with those adopted by Council for the preparation of these financial statements.

Cost allocation

Council has derived the cost of service for each significant activity using the cost allocation system outlined below.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Direct costs are those costs directly attributable and charged to a significant activity. Indirect costs are those costs which cannot be identified in an economically feasible manner with a specific significant activity. Indirect costs are charged to significant activities using appropriate cost drivers such as computer equipment used, staff numbers and floor area.

Revenue

Revenue may be derived from either exchange or non-exchange transactions.

Exchange transactions

Exchange transactions are transactions where Council receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to another entity in exchange.

Specific accounting policies for major categories of exchange revenue transactions are listed below.

Interest and dividends

Interest income is recognised using the effective interest method.

Dividends are recognised when Council’s right to receive the payment is established.

Pensioner housing revenue

Rental revenue arising from tenancy agreements is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of revenue and expenditure due to its operating nature.

Other gains and losses

Other gains and losses include fair value gains and losses on financial instruments at fair value through surplus or deficit, unrealised fair value gains and losses on the revaluation of investment properties and realised gains and losses on the sale of Property, Plant and Equipment (PPE) held at cost.

Sales of goods

Revenue from the sale of goods is recognised when a product is sold to the customer.

Non-exchange transactions

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, Council either receives value from or gives value to another entity without directly giving or receiving approximately equal value in exchange, or where the value given or received is not able to be accurately measured.

An inflow of resources from a non-exchange transaction, whether this be an asset or revenue, is only recognised if a liability is not also recognised for that particular asset or revenue.

A liability is only recognised to the extent that the present obligations have not been satisfied. A liability in respect of a transferred asset is recognised only when the transferred asset is subject to a condition, such as a condition for the asset to be consumed as specified and/or that future economic benefits or service potential must be returned to the owner.

Specific accounting policies for major categories of non-exchange revenue transactions are listed below.

Rates revenue

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 The following policies for rates have been applied: . General rates, targeted rates (excluding water-by-meter) and uniform annual general charges are recognised at the start of the financial year to which the rates resolution relates. They are recognised at the amounts due. The Council considers that the effect of payment of rates by instalments is not sufficient to require discounting of rates receivables and subsequent recognition of interest revenue. . Rates arising from late payment penalties are recognised as revenue when rates become overdue. . Revenue from water-by-meter rates is recognised on an actual basis. Unbilled usage, as a result of unread meters at year end, is accrued on an average usage basis. . Rates remissions are recognised as a reduction in rates revenue when the Council has received an application that satisfies its Rates Remission Policy.

Development contributions

Development and financial contributions are recognised as revenue when Council provides, or is able to provide, the service for which the contribution was charged. Otherwise, development and financial contributions are recognised as liabilities until such time as Council provides, or is able to provide the service.

Waka Kotahi NZ Transport Agency roading subsidies

Council receives funding assistance from Waka Kotahi NZ Transport Agency, which subsidises part of the costs of maintenance and capital expenditure on the local roading infrastructure. The subsidies are recognised as revenue upon entitlement as conditions pertaining to eligible expenditure have been fulfilled.

Other grants received

Other grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when conditions of the grant are satisfied.

Direct charges

Rendering of services at a price that is not approximately equal to the value of the service provided by the Council or Group is considered a non-exchange transaction. This includes rendering of services where the price does not allow the Council to fully recover the cost of providing the service (such as resource consents, building consents, water connections, dog licencing, etc.), and where the shortfall is subsidised by income from other activities, such as rates. Generally there are no conditions attached to such revenue.

Revenue from such services is recognised when the Council or Group issues the invoice or bill for the service. Revenue is recognised at the amount of the invoice or bill, which is the fair value of the cash received or receivable for the service. Revenue is recognised by reference to the stage of completion of the service to the extent that the Council or Group has an obligation to refund the cash received from the service (or to the extent that the customer has the right to withhold payment from the Council or Group for the service) if the service is not completed.

Building and resource consent revenue

Fees and charges for building and resource consent services are recognised on a percentage completion basis with reference to the recoverable costs incurred at balance date.

Entrance fees

Entrance fees are fees charged to users of the Council’s local facilities, such as the pools. Revenue from entrance fees are recognised upon entry to such facilities.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Infringement fees and fines

Infringement fees and fines mostly relate to animal infringements and parking infringements and are recognised when the revenue is received. The fair value of this revenue is determined based on the probability of collecting fines, which is estimated by considering the collection history of fines over the preceding two-year period.

Vested or donated physical assets

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

The fair value of vested assets is usually determined by reference to the cost of constructing the asset. For assets received from property developments, the fair value is either based on construction price information provided by the property developer or values as per the last revaluation.

For long-lived assets that must be used for a specific purpose (e.g. land must be used as a recreation reserve), Council immediately recognises the fair value of the asset as revenue. A liability is only recognised if Council expects that it will need to return or pass the asset to another party.

Council is required by the New Zealand Local Government Funding Agency Limited (LGFA) Guarantee and Indemnity Deed to disclose in its financial statements (or notes) its annual rates income. That Deed defines annual rates income as an amount equal to the total revenue from any funding mechanism authorised by the Local Government (Rating) Act 2002 together with any revenue received by Council from other local authorities for services provided by that Council for which those other Local Authorities rate.

Personnel costs

Employer contributions to KiwiSaver are accounted for as defined contribution superannuation schemes and are expensed in the surplus or deficit as incurred.

Other expenses

Grant expenditure

Non-discretionary grants are those grants that are awarded if the grant application meets the specified criteria, and are recognised as expenditure when an application that meets the specified criteria for the grant has been received. Discretionary grants are those grants where Council has no obligation to award on receipt of the grant application and grants are recognised as expenditure on payment.

Operating leases

An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term.

Finance costs

In accordance with PBE IPSAS 5 Borrowing Costs, all borrowing costs are recognised as an expense in the period in which they are incurred.

Cash and cash equivalents

Cash and cash equivalents includes cash-in-hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Statement of Financial Position.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Trade and other receivables

Trade and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment.

Loans are initially recognised at the present value of their expected future cash flows, discounted at the current market rate of return of a similar asset/investment. They are subsequently measured at amortised cost using the effective interest method. The difference between the face value and present value of expected future cash flows of the loan is recognised in the Statement of Comprehensive Revenue and Expense as a grant.

A provision between the face value and present value of expected future cash flows of the loan is recognised in the Statement of Comprehensive Revenue and Expense as a grant.

A provision for impairment of receivables is established when there is objective evidence that Council will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the effective interest method.

Other financial assets

Council classifies its investments in the following categories: . Financial assets at fair value through surplus or deficit; . Loans and receivables; . Held-to-maturity investments; and . Financial assets at fair value through other comprehensive revenue and expense.

The classification depends on the reason behind acquiring the investment. Council decides how to classify its investments when they are acquired.

Purchases and sales of investments are recorded on the value date. Financial assets are no longer recognised when the right to receive cash flows from the financial assets has expired or has been transferred. The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active, Council establishes fair value through valuation techniques. At each year end Council assesses whether there is evidence that a financial asset or group of financial assets is impaired. Any impairment loss is recognised in the Statement of Comprehensive Revenue and Expense.

Financial assets at fair value through surplus or deficit

This category has two sub-categories: financial assets held for trading, and those designated at fair value through surplus or deficit. A financial asset falls in this category if acquired principally to sell in the short-term or if designated this way by Council. After initial recognition, they are measured at their fair values with gains or losses on re- measurement recognised in the surplus or deficit. These financial assets are classified as current assets if they are held for trading or expected to be realised within twelve months of the year end date.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments not quoted in an active market. They arise when Council provides money, goods or services directly to a debtor with no intention of selling the receivable asset. After initial recognition, they are measured at amortised cost using the effective interest method. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit. They are included in current assets, except for those with maturities greater than twelve months after the year end date, which are classified as non-current assets.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that Council has the intention and ability to hold to maturity. After initial recognition, they are measured at amortised cost using the effective interest method. Gains or losses when the asset is impaired or derecognised are recognised in the surplus or deficit.

Financial assets at fair value through other comprehensive revenue and expense

Financial assets at fair value through other comprehensive revenue and expense are those that are designated into the category at initial recognition or are not classified in any of the other categories above. They are included in non- current assets unless management intends to dispose of the share investment within 12 months of balance date or if the debt instrument is not expected to be realised within 12 months of balance date. The Council includes in this category: . investments that it intends to hold long-term but which may be realised before maturity; and . shareholdings that it holds for strategic purposes.

These investments are measured at their fair value, with gains and losses recognised in other comprehensive revenue and expense, except for impairment losses, which are recognised in the surplus or deficit. On de-recognition, the cumulative gain or loss previously recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit.

Assets held for sale

Assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction, not through continuing use. Assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

Any impairment losses for write-downs of non-current assets held for sale are recognised in the surplus or deficit.

Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have been previously recognised.

These assets are not depreciated or amortised.

Property, plant and equipment

Property, plant and equipment consists of: . Operational assets which include land, buildings, library books, plant, furniture and equipment, and motor vehicles. . Infrastructural assets which are the fixed utility systems. Each asset class includes all items that are required for the network to function, for example sewer reticulation includes reticulation piping and sewer pump stations.

Property, plant and equipment is shown at cost or valuation, less accumulated depreciation and impairment losses.

Additions

The cost of an item of property, plant and equipment is recognised as an asset if it is probable that future economic benefits or service potential associated with the item will flow to Council and the cost of the item can be measured reliably. Additions are generally recognised at cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value at the date of acquisition.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Disposals

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposal are included in the Statement of Comprehensive Revenue and Expense. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to retained earnings.

Subsequent costs

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

The costs of day-to-day servicing of property, plant, and equipment are recognised in the surplus or deficit as they are incurred.

Depreciation

Depreciation is provided on a straight-line basis on all property, plant and equipment other than land, at rates that will write-off the cost (or valuation) of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:

Table 40: Useful lives and associated depreciation rates of major classes of assets

Components Years Water Treatment Structures 25 – 80 Plant 10 – 100 Pipes 60 Water Reticulation Pipes 30 - 100 Fittings 10 – 30 Sewage Treatment Structures 25 – 100 Plant 10 – 100 Pipes 60 Sewerage Reticulation Pipes 50 – 100 Fittings 25 – 100 Manholes 80 Stormwater Structures 15 – 80 Pipes 50 – 100 Manholes 50 – 80

Formation/carriageway and shoulder Infinite Pavement structure 12 – 150 Pavement surface (seal) 6 - 65 Catchpits and culverts 50 - 75 Bridges 50 - 115 Kerb and channel 50 - 75 Lighting 20 - 35 Footpaths 15 – 70 Signs 10 – 35

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Components Years Railings 20 – 35 Islands 35 – infinite Traffic Signals 15-30

Buildings – not componentised 0 – 100 Building – structure 35 – 100 Building – fit-out 25 – 40 Building – services 30 - 45 Plant/motor vehicles 15 - 25 Furniture, fittings and equipment 5 - 75 Computer equipment 3 – 10 Intangibles 0 - 10 Library Books 7

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.

Revaluation

Those asset classes that are revalued are valued on a two-yearly cycle and Operational Land and Buildings are valued every three years. All other asset classes are carried at depreciated historical cost.

The carrying values of revalued assets are assessed annually to ensure that they do not differ materially from the assets’ fair values. If there is a material difference, then the off-cycle asset classes are revalued.

Revaluations of property, plant, and equipment are accounted for on a class-of-asset basis.

The net revaluation results are credited or debited to other comprehensive revenue and expense and are accumulated to an asset revaluation reserve in equity for that class-of-asset. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive revenue and expense but is recognised in the surplus or deficit.

Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive revenue and expense.

Operational land and buildings

At fair value as determined from market-based evidence where there is a market, or depreciated replacement cost for specialised assets, by an independent valuer.

Infrastructural assets

At fair value determined on a Depreciated Replacement Cost (DRC) basis by an independent valuer.

Land under roads and road reserves

Land under roads is no longer revalued.

Accounting for revaluations

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 Revaluations of property, plant and equipment are on a class of asset basis. The results of revaluing are credited or debited to an asset revaluation reserve for that class of asset. Where this results in a debit balance in the asset revaluation reserve, this balance is expensed in the Statement of Comprehensive Revenue and Expense. Any subsequent increase in revaluation that offsets a previous decrease in value recognised in the Statement of Comprehensive Revenue and Expense will be recognised first in the Statement of Comprehensive Revenue and Expense up to the amount previously expensed, and then credited to the revaluation reserve for that class of asset.

Impairment of property, plant and equipment and intangible assets

Assets that have a finite useful life are reviewed for indicators of and are tested annually for impairment at each balance date. When there is an indicator of impairment the asset’s recoverable amount is estimated. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets, the impairment loss is recognised against the revaluation reserve for that class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus or deficit.

For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit.

The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent that an impairment loss for that class of asset was previously recognised in the surplus or deficit, a reversal of the impairment loss is also recognised in the surplus or deficit.

For assets not carried at a revalued amount, the reversal of an impairment loss is recognised in the surplus or deficit.

Value in use for non-cash-generating assets

Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return.

For non-cash generating assets, value in use is determined using an approach based on either a depreciated replacement cost approach, restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information.

Value in use for cash-generating assets

Cash-generating assets are those assets that are held with the primary objective of generating a commercial return.

The value in use for cash-generating assets and cash-generating units is the present value of expected future cash flows.

Intangible assets

Software acquisition and development

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred. Staff training costs are recognised in the surplus or deficit when incurred. Costs associated with development and maintenance of the Council’s website are recognised as an expense when incurred.

Amortisation

The carrying value of an intangible asset with a finite life is amortised on a straight line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 amortisation charge for each period is recognised in the Statement of Comprehensive Revenue and Expense. The useful lives and associated amortisation rates of computer software have been estimated at 3-10 years (33% - 10%).

Impairment of intangible assets

Intangible assets that have an indefinite useful life, or not yet available for use, are not subject to amortisation and are tested annually for impairment. Assets that have a finite life are reviewed for indicators of impairment and tested annually for impairments each balance date.

Emissions trading scheme

Gains and losses on disposal are determined by comparing the disposal proceeds with the carrying amount of the New Zealand Units (NZU). Gains and losses on disposals are reported in the surplus or deficit. If, at the end of any financial year, there has been some deforestation (such as harvesting) that is yet to be replanted, a contingent liability will be disclosed until such time as replanting has occurred. After initial recognition, Emission Trading Scheme credits are measured at their fair values with gains or losses on re-measurement recognised in the surplus or deficit. NZUs are not amortised and have an indefinite life.

Forestry assets

Forestry assets are independently revalued annually at fair value less estimated point of sale costs. Fair value is determined based on the present value of expected net cash flows discounted at a current market determined pre- tax rate. This calculation is based on existing sustainable felling plans and assessments regarding growth, timber prices, felling costs and silvicultural costs and takes into consideration environmental, operational and market restrictions.

Gains or losses arising on initial recognition of forestry assets at fair value less estimated point of sale costs, and from a change in fair value less estimated point of sale costs, are recognised in the Statement of Comprehensive Revenue and Expense. The costs to maintain the forestry assets are included in the Statement of Comprehensive Revenue and Expense.

Investment property

Properties leased to third parties under operating leases are classified as investment property unless the property is held to meet service delivery objectives, rather than to earn rentals.

Initially, investment properties are measured at cost, including transaction costs. Subsequent to initial recognition investment properties are measured at fair value as determined annually by an independent valuer. Gains and losses on revaluation, acquisition and disposal are recognised in the Statement of Comprehensive Revenue and Expense.

Trade and other payables

Trade and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.

Provisions

Council recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation, using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in “finance costs”.

Employee benefit liabilities

Employee benefits expected to be settled within twelve months of balance date are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date, and sick leave. A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that it is anticipated it will be used by staff to cover those future absences.

Borrowings

Borrowings are initially recognised at their fair value. After initial recognition, all borrowings are measured at amortised cost using the effective interest method.

Derivative financial instruments

Council uses derivative financial instruments to hedge its exposure to interest rate risks arising from financing activities. In accordance with the Treasury Management Policy, Council does not hold or issue derivative financial instruments for trading purposes.

Derivative financial instruments are recognised initially at fair value. Subsequent to initial recognition, derivative financial instruments are stated at fair value. The gain or loss on re-measurement to fair value is recognised immediately in the Statement of Comprehensive Revenue and Expense. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged (refer to section below).

The fair value of interest rate swaps is the estimated amount that the Council would receive or pay to terminate the swap at the Statement of Financial Position date, taking into account current interest rates and the current credit worthiness of the swap counterparts.

Hedging

Derivatives are first recognised at fair value on the date a contract is entered into and are subsequently re-measured to their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. Council designates certain derivatives as either: (1) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge); or (2) hedges of highly probable forecast transactions (cash flow hedges).

At the inception of the transaction Council documents the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. Council documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.

Fair value hedge

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the Statement of Comprehensive Revenue and Expense, together with any changes in the fair value of the assets or liability that are attributable to the hedged risk.

Cash flow hedge

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021 The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in equity in the hedging reserve. The gain or loss relating to the ineffective portion is recognised immediately in the Statement of Comprehensive Revenue and Expense.

Amounts accumulated in equity are recycled in the Statement of Comprehensive Revenue and Expense in the periods when the hedged item will affect profit or loss (for instance when the forecast sale that is hedged takes place). However, when the forecast transaction that is hedged results in the recognition of the non-financial assets (for example inventory) or a non-financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the measurement of the initial cost of carrying amount of the asset or liability.

When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at the time remains in equity, and is recognised when the forecast transaction is ultimately recognised in the Statement of Comprehensive Revenue and Expense.

When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the Statement of Comprehensive Revenue and Expense.

Derivatives that do not qualify for hedge accounting

Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that do not qualify for hedge accounting are recognised immediately in the Statement of Comprehensive Revenue and Expense.

Equity

Equity is the community’s interest in Council and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into a number of reserves, the components are: . Retained earnings . Council created reserves . Revaluation Reserves . Cash flow hedge reserve

Council created reserves

Council created reserves are a component of equity representing a particular use to which various parts of equity have been assigned. Council may alter them without reference to any third party or the Courts. Transfers from these reserves may be made only for certain specified purposes or when certain specified conditions are met.

Revaluation reserves

This reserve relates to the revaluation of property, plant and equipment to fair value.

Cash flow hedge reserves

This reserve comprises the effective portion of the cumulative net change in the fair value of derivatives designated as cash flows hedges.

Document Set ID: 10533867 Version: 31, Version Date: 22/03/2021