VALUES VISION, The Vision for our District and the Mission for our organisation are underpinned by Whangarei District Council’s commitment to the fundamental core values MISSION of: • Communication AND VALUES • Customer first • Innovation and excellence VISION • Valuing employees and partnerships To be a vibrant, attractive and thriving District by developing sustainable lifestyles based around our • Visionary leadership. unique environment; the envy of New Zealand and recognised worldwide. WARIU Nga tirohanga mo to tatou rohe, me nga aronga mo to TIROHANGA tatou roopu whakariterite, na te roopu tautoko kaupapa. Ka kitea to ihi, te ataahuatanga kia anga mua tonu nga Te Kaunihera a rohe o Whangarei. Kia noho here ki nga mahi i roto i to tatou rohe. Kia pumau tonu te ahurei o te pu taketake whai wariu taiao. Ka ahua pūhaehae te titiro mai o te ao whanui ki Aotearoa • Whakawhitiwhitinga korero • Te kai tono i te tuatahi MISSION • Whakatakoto kaupapa hou, whakahirahira Creating the ultimate living environment. • Wāriūtanga o nga kaimahi i roto i te haerenga tahitan- ARONGA ga, pera i nga tikanga o te Tiriti o Waitangi Auaha mutunga kore o te ao tūroa • Tirohanga kaiārahi (nga tirohanga whakamua kaiārahi CONTENTS Mayor’s Message ...... 4 al e nment undin en . . . . 121 What is a Long Term Plan? ...... 5 Capital Projects ...... 122 Council Structure – Political ...... 6 PART FOUR 140 Mayor and Councillors ...... 7 FORECAST FINANCIAL STATEMENTS AND Council Structure – Organisational ...... 8 INFORMATION 140 Our Strategic Direction ...... 9 Forecast Financial Statements ...... 141 PART ONE 11 i nifi ant e a tin um ti n ...... 150 THE RIGHT DEBATE 11 Accounting Policies ...... 155 Our Community Outcomes ...... 12 Reserve Funds ...... 172 What we discussed with you...... 12 Funding Impact Statement ...... 173 Changes made as a result of Consultation...... 15 Price Level Adjusters ...... 181
PART TWO 19 PART FIVE 183 STRATEGIES 19 POLICIES AND PLANS 183 Financial Strategy ...... 20 Revenue and Financing Policy ...... 184 Infrastructure Strategy ...... 42 i nifi an e and n a ement li ...... 188
PART THREE 69 PART SIX 193 COUNCIL ACTIVITIES 69 AUDIT REPORT 193 Introduction...... 71 Independant Auditor’s Report ...... 194 1. Transportation ...... 74 PART SEVEN 195 2. Water ...... 78 GENERAL INFORMATION 195 3. Solid Waste ...... 82 Abbreviations and Acronyms ...... 196 4. Wastewater ...... 86 Glossary...... 197 5. Stormwater ...... 90 Index...... 199 6. Flood Protection & Control Works ...... 94 7. Community Facilities & Services ...... 98 8. Economic Growth...... 106 9. Planning & Regulatory Services...... 110 Support Services...... 116 Council Subsidiaries...... 120 MAYOR’S MESSAGE
t i m lea u e t int du e an a ei i t i t un il n e m lan i e ald a an e of focus for our District over the next 10 years. In the coming decade we aim to consolidate recent gains. This means investing in existing assets and working within the income the District generates. In order to do this, we have had to increase our income and limit debt-funded projects of the type completed in recent years. That said, we still need to move our District forward and invest enough for it to grow and prosper, while continuing to work within our means and focus on maintaining current assets. This has been no easy balancing act. u t e i nifi ant de t a n t an ti n t i un il and u mi i n n t i lan ed it i n t an ti n u community, either. However we do need to ensure our current assets are robust and in good shape for a secure future. Putting off their upkeep is not an option. We also need to balance our budget, with our operational expenditure matching our in me e mu t ntinue t find e fi ien ie and a e t and l el it our partners and contractors to ensure we are getting value for our ratepayer’s money. So, how do we live within our means and advance at the same time? We still need to move our District forward and invest A growing District requires growing infrastructure – roads, waste networks, water supply – and new infrastructure must be maintained. Newcomers and enough for it to grow and e i tin e ident all enefit ut n t in me ee e need t e ma t prosper, while continuing to about this by funding growth through a mixture of development contributions work within our means and from those investing in new developments, and through general rates from the ate a e al enefit m t e a et focus on maintaining current d e e me m e e fi ient and till d t e ind u t e mmunit assets. expects? This is the crux of the matter. If we are to continue to provide the levels of service expected in this day and age, we need to earn enough to do so. Basing any increase in our income solely on the Local Government Cost Index will not work. Service levels would slide backwards year-by-year, reducing Whangarei’s attractiveness and the lifestyle we cherish. Through the LTP process we have seen how hard it is to balance the ideas and opinions of the 14 councillors, the 1,024 submitters and also those residents we a en t ea d m u final de i i n ill lea e me e le and di a int t e although we have noticed a community-wide resolve to support necessary choices for the good of all. me di fi ult de i i n a e ad t e made e t ea e idential ate ill in ea e at an average of 9% followed by an average of 4.8% in following years This approach allows us to maintain assets, accommodate growth, maintain levels of service and provide a sustainable path forward. Even with this increase, our residential rates remain among the lowest, per capita, in the country. The rates increase for the commercial sector has impacted on some commercial property owners more than others. We have listened to your feedback and, as a result, will conduct a comprehensive review of our rating policies ahead of next year’s Annual Plan. I encourage those who are disappointed the projects or initiatives they supported have not been included in the Plan, or been addressed to their satisfaction, to keep trying. Projects that are dreams today often come over the horizon slowly, and persistence does enable support to grow. Time also disposes of ideas that don’t have long-term or broad support. I thank those who have contributed, commented on and participated in guiding our LTP decision making. We are endeavouring to do the best we can for the majority of residents, and appreciate your support.
HER WORSHIP THE MAYOR SHERYL MAI
4 WHAT IS A LONG TERM PLAN?
A major event in the past couple of years These include: communities and providing the usual has been the introduction of changes to regulatory functions, such as building • taking a sustainable development t e al e nment t and resource consents, animal control, approach One of those changes is that instead and liquor licensing. It also outlines how of issuing a full draft Long Term Plan • carrying out business in a clear, Council plans to fund it all. a a a i n ultati n e transparent and accountable manner This LTP therefore: were required to publish a ‘consultation • e atin in an e fi ient and e e ti e document’ that explained the key • describes our Community Outcomes manner, using sound business elements of the Plan, the major issues practice • identifie t e e de i i n made and the choices for our ratepayers and Council as a result of the consultation residents. Now that consultation has • considering community views by process been completed we are publishing our offering clear information and the final t e ull opportunity to present views • highlights projects planned over the next 10 years The LGA requires every council to • idin tunitie i t produce an LTP once every three years. contribute to decision-making. • provides an overview of each activity The legislation’s intention is to allow Council carries out and the levels of The LTP informs the community on Council to look and plan ahead over a service that will be delivered longer period rather than thinking only in how Council plans to align its activities the three-year terms of elected members. with what our District needs. Council’s • provides a basis for Council to be In carrying out its business, Council is Strategic Direction and Financial and accountable to the community Infrastructure Strategies set the priorities required to do a number of things. • outlines how much Council business for building, maintaining and renewing will cost, and how it will be funded. assets, while continuing to support our
THE PLANNING CYCLE
The work of Council is informed Annual Plan: This must be produced in Council’s activities are primarily managed by several ongoing processes. Key each of the two years that an LTP is not through activity or asset management components of this for Council are the produced. The Annual Plan highlights any lan t e e a in a ti it Whangarei District Growth Strategy – changes or variances from the LTP for d ument i a ed n detailed u taina le utu e u taina le the coming year. technical and engineering requirements utu e t t ate t e and the LTP budget, provide the key Annual Report: This must be produced Community Outcomes, Council’s inputs to the activities described in the each year and reports on Council’s Strategic Direction and the Financial LT P. e in ludin finan ial e man e and Infrastructure Strategies. These against budget, and lets the community are explained in more detail on pages know whether Council did what it said it 9-10 of this Plan. would. As well as the LTP, Council is also required to produce Annual Reports and produce and consult on Annual Plans.
5 COUNCIL STRUCTURE – POLITICAL
MAYOR HWM S L Mai
DEPUTY MAYOR COUNCILLORS S L Morgan
INFRASTRUCTURE PLANNING COMMITTEE FINANCE COMMITTEE DEPUTY MAYOR COMMITTEE Chair Cr G C Innes Chair Cr S J Deeming S L Morgan Chair G M Martin plus all Councillors plus all Councillors plus all Councillors
NON-STANDING COMMITTEES SUBCOMMITTEES OF THE DISTRICT LICENSING COMMITTEE PLANNING COMMITTEE Chair Cr J D T Williamson EXEMPTIONS AND OBJECTIONS SUBCOMMITTEE AIRPORT NOISE MANAGEMENT CONSULTATIVE Chair Cr G C Innes COMMITTEE COMMUNITY FUNDING SUBCOMMITTEE ai nde endent i a e Chair Cr S J Deeming AUDIT AND RISK COMMITTEE Chair Deputy Mayor S L Morgan MĀORI LIAISON CIVIC HONOURS COMMITTEE Chair Cr C B Christie TE KĀREAREA STRATEGIC PARTNERSHIP FORUM ai ai and ita i ene e uin a CEO REVIEW COMMITTEE Chair HWM S L Mai 20/20 INNER CITY REVITALISATION COMMITTEE Chair Cr P R Halse
6 MAYOR AND COUNCILLORS
MAYOR SHERYL MAI COUNCILLOR SUE GLEN All communications to Her Worship Okara Ward the Mayor’s personal assistant Carina De Graaf Home Phone 09 436 2181 Phone 09 430 4200 Mobile Phone 027 292 8420 Email [email protected] Email [email protected]
COUNCILLOR PHIL HALSE DEPUTY MAYOR SHARON MORGAN Bream Bay Ward Mangakahia – Maungatapere Ward Home Phone 09 430 2251 Mobile Phone 027 443 4679 Mobile Phone 027 303 5671 Email [email protected] Email [email protected]
COUNCILLOR STUART BELL COUNCILLOR CHERRY HERMON Okara Ward Okara Ward Mobile Phone 021 625 115 Home Phone 09 437 1197 Email [email protected] Email [email protected]
COUNCILLOR SUSY BRETHERTON COUNCILLOR GREG INNES Hikurangi – Coastal Ward Whangarei Heads Ward Mobile Phone 021 414 465 Mobile Phone 027 495 3382 Email [email protected] Email [email protected]
COUNCILLOR CRICHTON CHRISTIE COUNCILLOR GREG MARTIN Denby Ward Hikurangi – Coastal Ward Home Phone 09 430 2848 Home Phone 09 433 5629 Mobile Phone 027 392 2289 Mobile Phone 027 283 6147 Email [email protected] Email [email protected]
COUNCILLOR BRIAN MCLACHLAN COUNCILLOR TRICIA CUTFORTH Okara Ward Denby Ward Home Phone 09 436 3660 Mobile Phone 027 287 0366 Mobile Phone 021 201 4111 Email [email protected] Email [email protected]
COUNCILLOR SHELLEY DEEMING COUNCILLOR JOHN WILLIAMSON Bream Bay Ward Denby Ward Home Phone 09 432 3779 Home Phone 09 434 7245 Mobile Phone 027 275 7330 Mobile Phone 021 217 4132 Email [email protected] Email [email protected]
7 COUNCIL STRUCTURE – ORGANISATIONAL
CHIEF EXECUTIVE CE’S OFFICE Rob Forlong Human Resources
GROUP MANAGER GROUP MANAGER DISTRICT LIVING POSITIVE GROWTH Paul Dell Jude Thompson
DISTRICT LIVING POSITIVE GROWTH Building Compliance Economic Development Community Services Māori Relationships Policy and Monitoring Property Regulatory Services Venues & Events Resource Consents District Promotions & Tourism
GROUP MANAGER GROUP MANAGER INFRASTRUCTURE & SUPPORT SERVICES SERVICES Alan Adcock Simon Weston
INFRASTRUCTURE & SERVICES SUPPORT SERVICES Infrastructure Projects & Support Customer Services Libraries Financial Services Parks & Recreation Governance Transportation Information Services Waste & Drainage Water
8 OUR STRATEGIC DIRECTION
Council’s role is to support our community’s quality of life – both now and in the future. This means that we not only have to identi at u mmunit need ut al dem n t ate at e d ulfill t e need Our role is very broad, so it is important that Council is clear on what its priorities are, so we can make decisions on where best to place our effort and expenditure. When developing its strategic direction for this LTP, Council reviewed and reflected on previous work, current plans, community input and consultation, and legislation to determine the best way to move our District forward and to achieve our Community Outcomes. Much work has already been done, or is under way, to provide and plan for our District, and there are a number of key programmes of work that support Council’s direction. The key strategy that currently informs our forward planning work is the Sustainable Futures 30/50 Growth Strategy. This Growth Strategy was adopted in 2010 following a substantial community consultation exercise. The Sustainable Futures 30/50 Growth Strategy established a blueprint for future growth which allows the District to maintain the eatu e i ma e it an att a ti e la e t li e la and in e t e t ate al identified un il t e de el ment the District which will contribute most environmentally, socially, culturally and economically to a population expected to increase by 1% per year to 2045. This work forms much of the platform on which this 2015-2025 LTP is built. Once our strategy is realised, our District will be a sustainable community; one which provides the amenities and economic environment to attract people to work, live, play and invest here.
FINANCIAL STRATEGY
un il inan ial t ate i a ed n ulfillin t e u e l al e nment i i t “meet the current and future needs of communities for good-quality local infrastructure, local public services and performance of regulatory functions in a way that is most cost-effective for households and businesses”. This Strategy outlines what Council believes to be appropriate levels of borrowing, rates and potential expenditure, while also considering the affordability and adequacy of funding. Refer to the Financial Strategy on page 20.
INFRASTRUCTURE STRATEGY
un il n a t u tu e t ate i i u ted detailed et ana ement lan u e n t e i nifi ant issues facing our infrastructure. Although some areas of the community may be concerned about important issues from their e e ti e t e e i ue ma n t e deemed i nifi ant t t e mmunit a a le and ma n t e e ifi all e e ed t in this Strategy. i t ate n ide t e fi e ma a et u un il net in a t u tu e in m lian e it e ti n a t e al e nment t e e a e ate u l e e a e and t e t eatment and di al e a e t m ate drainage, flood protection and control works, and the provision of roads and footpaths. Despite no requirement by the LGA to do un il a ele ted t n ide a and e eati n a et and lid a te a et al n it t e fi e mandat a ti itie it t e ati nale t at t e e t a ti itie n ume i nifi ant e u e and nt i ute t n l t mmunit ut me Refer to the Infrastructure Strategy on page 42.
9
Further developing relationships with tangata whenua is a priority for Council at both the governance and operational levels. While some progress has been made, more work is necessary in the area of meeting agreed priorities. e ea ea u t ate i a tne i um it i med in i made u a u e e entati e t e ma a u groupings from within the District. Together, these representatives advocate for hapu of Whangarei. They meet in their own forum named Te Huinga to discuss common issues that can be bought to the joint Council – a u e ea ea um e ei t mandated a u e e entati e a e ita i ene ati ine and ai e a a din atu a a e e e a i i eta a a a a u an a u u i e a e ati au e e i a an a e aia i i ati a ai a i un e a a au i a d e e d ati a u n a e and aile a i ai ia an a a ia e e a e al mandated alte nate a u e e entati e a ti i ate in e uin a and attend e ea ea in t e a en e their main representative. The purpose for the partnership is to achieve the agreed vision, to build the relationship between Council and Whangarei Hapu incrementally, and to develop more robust partnership arrangements over time through learning conversations. The strategic intent t e e ea ea t ate i um i a ti ulated t u t e ll in i i n mi i n and in i le Te Pae Tawhiti/Vision He whenua Rangatira – Whangarei, a District of prosperity, well-being and empowered communities. Te Kaupapa/Mission Ka tutuki te Kawanatanga a-rohe, ka puawai hoki te kotahitanga me ona tini kaupapa – Local Government that works through effective partnerships and provides practical solutions. Nga Tikanga/Principles • He kitenga mutunga kore, mahi tahi, mahi pono – Strategic partnership working collaboratively and in good faith. • Kia maia – Providing leadership through courage. • Te Manawatopu – Of one heart and mind. We are stronger working together. • Anga Mua – Progressive and proactive. • Me Korero tika, tau noa nga take – Open and frank mutually agreed outcomes. In order to progress the issues and opportunities in a more timely manner, a ‘spearhead’ alliance between Council, Te Huinga and Northland Regional Council has been established.
10 PART ONE THE RIGHT DEBATE OUR WHAT WE COMMUNITY DISCUSSED OUTCOMES WITH YOU
e t in an a ei i t i t un il d e i uided fi e Council’s 2015-2025 LTP sets the direction for the Community Outcomes – a set of aspirations or goals that future of this District. It outlines what we plan to spend our community says are most important to them. Different your money on and how it will affect the services we activities contribute to different Community Outcomes, provide and the rates you pay. sometimes directly and sometimes indirectly. The way in To develop this Plan we discussed a range of issues which each activity contributes is indicated in Part Three of that impact daily on Council and our District’s this document. residents, and asked for your opinion on them through our Consultation Document. EASY AND SAFE TO MOVE AROUND The key issues were: There is a range of private and public transport options including walkways and cycleways. Our • maintaining our assets travel times are predictable and our transport • maintaining levels of service net i ell mana ed a e and e fi ient • managing the impacts of growth A GROWING, RESILIENT ECONOMY • what does this mean for your rates? We have more successful businesses and more jobs. Skilled people are attracted to our District to The Consultation Document outlined the dilemma work, live, play, visit and invest. facing Council. Our economy is vibrant and education and career We weren’t bringing in enough money to cover all opportunities match the region’s needs. the costs of running the District and maintaining our assets at the level of service expected by our CLEAN, HEALTHY AND VALUED ENVIRONMENT community. So, how were we to increase our funding, As our District grows, our natural and created and who should pay? environment is protected, maintained and In recent years we have used debt and property sales enhanced to reflect our Sense of Place, mauri and to bring in extra income above rates; to continue to do identity. this would not be sustainable. Our harbour, foreshore and waterways are clean and e all m t e le in u i t i t a e ati fied healthy. with the levels of service we provide. Not everyone VIBRANT AND HEALTHY COMMUNITIES is happy with everything, and there is always room for improvement, but for the majority of people the Our communities are safe, we have a strong services we deliver are meeting their needs. sense of identity and belonging. We value and enhance our culture by working together to make a So we had to decide – would we keep doing what we difference. have been doing and lift rates to allow that, or would we keep rates low and reduce the levels of service we Our District is full of life, activities and opportunities. Young provide as a result, or would we look at an ‘in between’ people feel they belong, our leaders are nurtured and option involving smaller rates increases with some mmunitie and i a i t in a in t e di e ti n reductions in the range or quality of services. ‘our place’. Our preferred option was to introduce a step-change WELL MANAGED GROWTH in ate a e t e al e nment t nde The city centre provides a strong heart for our in t e fi t ea ll ed m e m de t in ea e District; it is vibrant and attractive supporting the above LGCI in following years. This would increase our District’s growth. We have a variety of connected income to a level that would fund the work we have public spaces that enhance how we live. been doing and cover the increased costs of that work. In our District existing settlements are consolidated and we ensure that new residential areas are sustainable. Our infrastructure is aligned to our growth and there is variety both in type, and location of housing.
12 WHAT ARE THE MAJOR ISSUES FACING COUNCIL? This Plan limits our Most of our day-to-day work involves service and meeting the demands of the debt, balances our looking after the basics – maintaining District’s ongoing growth. ad m in t field lle tin budget each year and The key issues facing Council over the rubbish, treating wastewater and 10 years of this Plan are in the following gives us a strong base supplying fresh water, processing sections: from which to move consents and licences, managing commercial and community property, • maintaining our assets forward. and distributing community grants. • maintaining levels of service This Plan allows us to continue to do • managing the impacts of growth this in a sustainable way: taking care of our assets, maintaining current levels of • what does this mean for your rates?
MAINTAINING OUR ASSETS
Council’s infrastructure has to last a long foundations, pumps and a maze of pipes Costs don’t end when a new project is time and it’s our job to plan, fund and carrying drinking water, sewage and completed. New assets cost money maintain it. When putting together this stormwater to the right places. Some of to run each year, and to maintain and 10-year Plan we considered the main these assets are more than 100 years old upgrade as time goes on. Council’s issues that may arise over the next 30 and are past their use-by date. assets must be maintained to a high level years. This long-term approach ensures t at en u e t e a e fit u e We all want to get the longest possible that our assets can continue to operate as long as possible and are capable of useful life out of our assets. Nothing a e ui ed and ill a e u fi ient delivering the level of service required. we have built in the past – or build now capacity to accommodate growth as – will last forever without attention and In the past, rates increases that were time goes by. commitment. We want to do this properly, limited to inflation allowed us to maintain Amenities such as libraries, sports i mean e a e a in i nifi ant most of the things we already had, but facilities and bridges are very visible, costs. they didn’t allow for growth or for the and with the amount of new facilities operating and maintenance costs of new In previous terms, we have borrowed to built lately, it’s easy to think everything is assets. bring very positive improvements to our in good order. However, our asset base District. Now our focus is on keeping In this Plan we will be consolidating and is a bit like an iceberg – the bulk of our e e t in ne u t at and fi in focusing our spending on renewing and investment is buried underground in road and maintaining anything that has maintaining our assets to ensure they suffered during the rush towards new continue to cater for the current and projects. future needs of our community.
In this Plan we will be consolidating and focusing our spending on renewing and maintaining our assets to ensure they continue to cater for the current and future needs of our community.
13 MAINTAINING LEVELS OF SERVICE
We use the term ‘level of service’ to those amenities that enhance our ‘sense The level of service of everything we refer to a combination of the quality of of place’. Service levels range from the build and do depends entirely on how infrastructure we provide, the standard num e time a t field i m n t much can be funded. If there isn’t enough to which it is kept and the services these the frequency with which rubbish bins are money available to maintain the standard assets and our staff and contractors emptied, to the number of potholes in the of our assets, then levels of service will provide to the community. road, the availability of water pressure, decline over time. and the tidiness of public gardens. Levels People in our District expect our core This Plan allows us to maintain our levels of service also include how smoothly in a t u tu e ad a te ate et of service and keep our District moving processes like applications, consents and to be provided at a good level of service forward. inspections run. along with parks, recreation facilities and
MANAGING THE IMPACTS OF GROWTH
Our District is growing. For each of the We recover part of the cost of this growth Contributions will cover some of this next 10 years we expect around 1% by collecting development contributions cost, with the remainder of funding growth. That’s an additional 800 people from those who undertake development milli n t me m ate and each year driving on the roads, watering projects. This ensures that those creating subsidies. As we manage our future gardens, generating waste, using walking the need for additional infrastructure pay growth, we must juggle our resources t a and t ail la in n t field a fair share of its costs, and that existing carefully to make sure that new projects and taking part in community events. ratepayers do not fund an unfair share. provide for that growth and that the right Some of our core infrastructure will need people pay for that growth – today’s Across the 10 years of the Plan, to be enlarged to accommodate this ratepayers, developers and tomorrow’s we expect to proceed with around growth. For example, ensuring enough ratepayers. $67 million of growth projects. Forecast connections to reticulated systems for income of $22 million from Development water and waste.
WHAT DOES THIS MEAN FOR YOUR RATES?
To enable Council to continue to This ‘step-change’ in rates also This will mean an manage the above issues at the level our helps us to prevent debt levels community expects, we need to increase from increasing beyond today’s overall increase of our income. Having considered all levels by the end of the Plan. about 9% for the majority options available to us, we have decided Feedback from across the of ratepayers in the first that we will increase rates beyond community was that people want inflation throughout this Plan. year of this Plan to return us to take care of our assets, to us to a sustainable and Council will be making a ‘step change’ keep levels of service as they are in rates next year by increasing rates by now or, in some cases, to improve prudent financial in lati n e e ted t e a und levels of service, and provide position. plus 5%, as well as implementing a $50 funding to other community groups or increase in the Uniform Annual General e ifi e t in t ei mmunit a e While many do not want this level of From year two onwards we will increase increase in rates, keeping up with t tal ene al ate in ludin t e renewals, maintenance and growth by an average of 4.8%. while maintaining levels of service requires investment that can only be Water rates will only increase by the level made by increasing our income. of inflation each year, as this will provide enough revenue to fund all planned The community was very clear they activity in this area. a eed e uld n t i nifi antl increase our debt, so a rates rise is the The refuse management rate will best way to ensure the long term future increase by inflation plus 5% in year one, of our District. but after that, increases will be limited to inflation.
14 CHANGES MADE AS A RESULT OF CONSULTATION
Throughout the consultation process, Capital Grant for the Hihiaua Sport Northland $20,000 for this purpose 1,024 submissions were received from Cultural Centre subject to a funding agreement between members of the public, organisations, Council and Sport Northland. groups and businesses. The Hihiaua Cultural Centre Trust requested support from Council in the CitySafe, Summersafe and CCTV During the process to develop the form of a grant to assist them in the un il ea fi med t ta t at Council has been advised that the lanned fi t ta e n t u ti n t e an an e needed t fit it in t e Ministry of Justice will no longer Hihiaua Cultural Centre. finan ial a amete utlined in t e be funding initiatives like City Safe Consultation Document. Accordingly, Council believes that this development and Summer Safe. Council received recommendations in the deliberations ill e i nifi ant enefit t t e submissions about these initiatives, report tabled by staff incorporated this community as an educational and particularly relating to the CBD and approach and, as a result, the overall cultural hub, and has therefore allocated believes that the work being done in this finan ial im a t t e an e made a capital grant of $500,000 in year one of area is needed in our District. Council has is neutral in terms of debt levels and the Plan subject to a funding agreement t e e e all ated u fi ient undin t expenditure when compared with option between Council and the Trust. continue this work. one as outlined in the Consultation Footbridge over Limeburners Document. Capital Grant for the Kamo Sports Charitable Trust Creek For a number of submissions, Council’s decision was not to make any changes A submission from the Kamo Sports Submitters asked Council to consider to the LTP. However, in these instances, Charitable Trust requested a grant of u lementin t e enefit t e atea the submission will often help to inform $250,000 to help with funding a new Loop Walkway by providing a safe future decision making and may lead to building for Kamo Tennis and Cricket. extension over Limeburners Creek for action in later years, or be incorporated Council’s decision was to provide a cyclists and pedestrians. Council agreed into normal operations. Although grant of $100,000 subject to a funding to allocate funding of $300,000 in year six actions of this nature do not require a agreement between Council and the Trust of the LTP. change to the LTP, they should still be and on the proviso that fully accessible Kamo Plan Change infrastructure seen as important contributions to the public toilets be included as part of the democratic process. In some cases, development. A District Plan Change for Kamo has Council’s resolution was to direct staff recently been completed and, as a result, t it t e u mitte n t e Capital Grant for the Quarry submitters have raised the need for issue raised and subsequently report Gardens Visitor Centre infrastructure improvements in the area. a t un il n t e findin Council has therefore budgeted $250,000 The Quarry Gardens Trust submission future decision-making purposes. In in year six and $250,000 in year seven for requested an additional grant of $159,000 some instances further narrative has roading infrastructure changes. and agreement to a loan of $100,000 been included below to reflect Council’s to help them cover cost escalations in commitment to work alongside the Ngunguru cycleway the development of their new visitor submitter. centre. Councillors felt that there would A number of submitters requested that The key changes that have led to e enefit in ntinuin t u t t e funding be made available to pursue m difi ati n t e ud et t e initiative and therefore agreed to grant further development of the Ngunguru as a result of submissions are set out an additi nal in t e fi t ea cycleway. Council acknowledges the below. the LTP subject to a funding agreement community’s efforts to establish the between Council and the Trust. Council cycleway to this point and therefore e fi u e e e ed t in t i e ti n will enter into discussions with the Trust agreed to allocate $60,000 funding in have been inflated in budgets to maintain regarding the loan. year two of the LTP. current buying power. Capital Grant for Sport Northland Old Harbour Board building Annual Operating Fund requests and the Aquatic Centre A binding Referendum was held on use of A number of community organisations the Old Harbour Board building with the asked either to be granted an annual Sport Northland requested a capital grant to assist in developing a second community choosing the Hundertwasser operating grant or for their current grant ai au i t ent e to be extended. Council already allocates accessible hydrotherapy changing room at the Aquatic Centre. The need for a project. Council will be meeting with substantial funds through the Community the Prosper Northland Trust to discuss Funding Sub-Committee. As a result of second changing room is necessary to accommodate the large number of users future planning for their project. The deliberations, Council has included an building will continue to be owned by additional contestable operating grant of the hydrotherapy facilities. Council has therefore made a decision to grant Council and the HWMAC will be operated fund of $50,000 in each year of the LTP. by the Whangarei Art Museum Trust.
15 Funds were allocated in the Consultation To accommodate some of the requests u fi ient ud et t e ai u al a Document for the most expensive of made by submitters, Council agreed to and cycleway to year one of the Plan to the three options which is the HWMAC. reduce this budget to $10 million. cover the shortfall of funding raised by e e und a e n een nfi med the community to complete stage one of with $1.4 million in year three and $1.5 Village planning the Waipu walkway. Council has made million in year four for the development of In the last LTP, Council established a decision to bring forward $105,000 of the building. a Village Planning programme. This allocated funding to year one of the LTP to enable the group to proceed with the Public toilets planning is well advanced for the Parua Bay, Otangarei and Hikurangi construction of stage one of the walkway. A number of submitters requested communities. Council sees this Whangarei Falls – Otuihau reinstatement of the public toilet programme as critical to ensuring programme which had been excluded engagement with individual communities Work is about to commence at from the Consultation Document. and has therefore allocated a further Whangarei Falls to extend the parking Councillors agree that this item should $155,000 in year six of the LTP to area. A number of submitters asked be funded and have therefore allocated supplement funds already allocated to that further funding be made available in ea t e fi t t ee ea this programme. to extend the current visitor facilities. of the LTP to build public toilets. Council decided that, since this is one Waipu Great Barn of the District’s key visitor attractions, a Sense of Place The development of the Great Barn further $100,000 in year two of the LTP A substantial number of submissions at Waipu has been progressing well, would be budgeted for improvements at were received on the topic of Sense and Council has previously agreed to Whangarei Falls. of Place, predominantly requesting provide additional funding to assist the Whangaruru Coastal Community eautifi ati n e itali ati n and i na e community to complete it. This funding Council continues to place importance was to be subject to the availability of and Sports Association on Sense of Place initiatives and has surpluses at the end of the 2014-15 The Association has submitted to Council allocated a further $20,000 per year finan ial ea t e e a n u lu for several years requesting assistance to t e u e eautifi ati n un il nfi med u t t i e t develop the Oakura Recreation Ground. revitalisation and signage. Council will by allocating $100,000 in the form of a This proposal is well advanced, with a engage with the Bank Street revitalisation capital grant in year one of the LTP. further $112,000 budgeted in 2016-17. group. Waipu Walkway and Cycleway Council has decided to bring this funding forward to year one of the LTP. Theatre/expo/conference centre Group In the Consultation Document, Council A petition of 450 signatures and 32 proposed a $12 million investment in a individual submissions were received new theatre, expo and conference centre. requesting that Council brings forward GENERAL ISSUES NOTED BY COUNCIL Commercial rates into one centrally located building to better parking area. The biggest issue at provide a better service to customers, the park is drainage, so before any other The rates increase for the commercial reduce rent paid and improve productivity improvements are undertaken this would sector has impacted on some and e fi ien eliminatin du li ati n need to be resolved at a substantial cost. commercial property owners more than of functions needed to operate three No funds have been allocated in the LTP others, particularly those with recently buildings. Included in this Plan is $10 for improvements to this facility. Council identified e a atel u ed in a ited million towards expansion of the current has directed staff to identify alternative parts resulting in increased rates administration facility at Forum North, funding options. charges in accordance with Council’s which will generate future savings rating policies. We have listened to your averaging over $1 million per year. It Footpaths feedback and, as a result, will conduct would increase our total debt to $171 A number of requests for new footpaths a comprehensive review of our rating million, although this would be repaid were received through the consultation policies ahead of next year’s Annual Plan. through cost savings in around 12 years. process. Requests for new footpath Community halls The additional debt and costs savings facilities are included in an ongoing are included in this Plan. If investigations Footpath Programme and priorities are Council committed to review funding to find t at um t i n t uita le determined by safety and need. The LTP community halls through its Community development then alternative options will has allocated $100,000 in year three Funding strategic review. be investigated at that time. of the LTP for the purpose of making progress on the programme. Any new Council premises Dog park footpath requests are to be added to the Most of our administration is carried out Frequent users of the dog park on programme for future consideration by m t ee e a ate fi e um t Dave Culham Drive requested facility Council. t e nl ne e n alt n la a and improvements such as paths, lighting, Indoor bowls the Civic Arcade. For some time we have elte d aina e a field been looking at options to bring most of landscaping and water troughs. They also A large number of submissions were our civic and administration functions asked for wheelchair accessibility and a received in support of an indoor sports
16 stadium to facilitate indoor bowls and Sportsfields and renewals for coastal and harbour other sports. Council has directed staff to protection across the District. Council consider this issue in the development of A large number of submissions received will continue to liaise with the Northland the proposed Recreation Strategy. from various sporting codes support e i nal un il n n entin renewals budgets for sporting facilities, issues. Langs Beach access in general, and believe that more needs to be done to ensure the resilience of Poroti Springs In response to a petition from the Langs e i tin field t u u in and a e Beach community to provide a concrete and introducing flood lighting. Council The Northland Regional Council is access ramp from the road to the beach agrees, and renewal programmes for responsible for the management and that accommodates all pedestrians, t field ill maintain a t n u consenting of waterways and aquifers, wheelchairs and prams, Council staff will n n e i n t and field e e t i and has granted consents for Poroti engage further with the community to is possible. Springs, Council will continue to engage investigate suitable options. with the local community on issues of Springfield Community Swim concern. Onerahi foreshore Club Matakohe Limestone Island The community group, Onerahi Foreshore Forsure, would like to collaborate with e in field mmunit im lu Parks & Recreation staff will continue Council on any future enhancements to pool needs to be repainted, Council to engage with the Friends of Matakohe the foreshore along Beach Road. Staff has allocated a grant of $5,000 for this ime t ne land t find a t el have been directed to work with the purpose. them meet their goals. community to discuss matters relevant Support for rugby and hockey to Onerahi, either through the Village Youth Planning process or direct discussion. Council supported the Northland Rugby The Whangarei Youth Space Trust Union in its endeavours to amalgamate Parua Bay School road crossing believes they will need a larger facility the Marist and Old Boys clubs and within the next one or two years, Council Submitters asked Council to provide safe establish suitable facilities. Council also will continue to engage with them on crossings and a student drop-off zone acknowledges that there is likely to be a areas of concern. for the safety of children at Parua Bay need for additional hockey facilities in the School. Staff will continue to engage with future and staff will engage with Hockey 116A Bank Street the Parua Bay community and school Northland for further discussions. Council will engage with Company of on these issues to determine workable Giants to look at their proposal for the solutions. Tutukaka Trailer Carpark A number of submitters at Tutukaka use of 116A Bank Street in more depth. Riverside Drive believe that the provision of a trailer Rural transfer stations e i ue t a fi n e ti n at ea carpark is urgently required to free up times remains a concern for Council. the village green and the area in front of The hours of the transfer stations will be Staff have been directed to investigate marina shops. To date, Council has been reviewed when the results of the current current issues in the vicinity of Riverside unsuccessful in procuring suitable land in t ial edu ti n in u al t an e tati n Drive and Dave Culham Drive. order to provide this facility. Council has u a e a aila le directed staff to investigate whether a Ruakaka Cemetery land swap can be achieved. Tertiary education hub NorthTec would like Council to identify Council has directed staff to engage with Whau Valley Parklands the communities in the Ruakaka area and land suitable for a tertiary education hub Bream Bay ward councillors to review Drainage issues in the Whau Valley and student accommodation. Council will cemetery requirements prior to the next Parklands were brought to Council’s continue to explore this with the tertiary LT P. attention through submissions, and as sector. a result, Council has directed staff to Ruakaka Recreation Centre investigate what needs to be done to resolve these issues. Where possible, A large number of submitters support these will be addressed through existing the development of a multi-events operational budgets. centre on land administered by the Ruakaka Recreation Centre but owned Integrated Harbour Management by Council. In order to enable the Centre to progress feasibility studies and The Northland District Health Board will funding applications, a letter of support be contacted regarding their request to from Council as the landowner will be join the Integrated Harbour Management provided. Group. Seal extensions Fair Trade A number of submissions were received Council staff are investigating the Fair requesting the sealing of metal roads. Trade concept and will be bringing a Council continues to work with the NZTA report to Council in the near future. to encourage the provision of subsidy for seal extensions and, if subsidies become Coastal and harbour protection available, Council will review the seal The level of funding in the Plan allows extensions’ programme. Council to attend to major repairs
17 POLICY AND PLANNING ISSUES NOTED BY COUNCIL
Genetically modified organisms Together with other Northland and as a result of global warming and other Auckland councils on the Intercouncil influences means that we need to think e t i eneti all m dified Working Party on GMO Risk Evaluation about how we are going to plan for and ani m ame u t u ut and Management Options, Council has manage the projected impacts of climate the consultation period, and as a result committed to investigating possible change in our District. un il i e t nfi m it n in local and/or regional management of Council considers the effects of a commitment to policy work in this area. GMO land uses under the Resource changing climate on our communities Management Act. Any further costs in Over the years Council has adopted and has incorporated climate change into relation to appeals will be reported back a precautionary approach to the existing frameworks, plans and decision- to Council prior to proceeding. management of biotechnology in general making procedures. Once the Proposed and to GMO land uses in particular. Climate change Regional Policy Statement is operative It will continue to investigate ways of Council must give effect to it through our maintaining the District’s environment Any change in climate trends that can District Plan. free of GMOs until outstanding issues be seen and tracked is considered to be such as liability, economic costs and climate change. Globally, the climate is The Infrastructure Strategy on page 42 enefit en i nmental i and ultu al changing and it will continue to change further discusses planning for the effects effects are resolved. over this century. A change in our climate of climate change.
OTHER CHANGES
The Consultation Document and its supporting material were based on the best information available at the time. Other changes have been incorporated int t e final a a e ult additi nal or updated information that became available after the adoption of the Consultation Document. For the most part, these changes relate to a range of operational issues that have had minimal im a t n t e e all finan ial iti n
18 PART TWO STRATEGIES FINANCIAL STRATEGY
This Financial Strategy aims to: • a ie e a alan ed ud et in e e ea e e e enue e eed e enditu e in ludin de e iati n • int du e a te an e in m t ate in t e fi t ea it in ea e a e in lati n t e ea te • limit e all ate e enue e ludin ate t a ma imum t tal e enue • have net debt no higher than 150% of total revenue • have net debt peaking at $171 million and then reducing to $146 million by 2025 • maintainin net inte e t t at le t an ate e enue a at une • a e a net de t e a ita le el el at une • ide u fi ient a u lu e t und t e lanned a ital e enditu e amme it ut elian e n a et ale a a t m t e a a ale al ead in e Over the next 10 years this allows for: • a capital works programme of $574 million • a ital e enditu e u ed n e net in a t u tu e adin ate a te t m ate and l d te ti n • operational revenues of $1.577 billion • operational spending of $1.440 billion.
BUILDING A SUSTAINABLE FINANCIAL STRATEGY
This Financial Strategy is based on our community requires – both now and increases as much as possible. However, ulfillin ne t e e u e into the future. We have examined the we note that development of a new local government, which is to “meet the state of our network infrastructure and airport, should it proceed, would require current and future needs of communities community assets, the levels of service i nifi ant de t undin in t e utu e i for good-quality local infrastructure, that our community expects us to deliver project is discussed on page 33. local public services and performance and the funding required to achieve this. Over the last four years our capital works of regulatory functions in a way that is This, in turn, has led to an examination programme has been partially funded most cost-effective for households and of the funding allocation between through sales of commercial property. businesses”. ate a e e ifi u e e i e Apart from the $10.5 million sale of the and debt. This Strategy, together with the uildin a u taina le finan ial lat m Okara site, which is nearing completion, Infrastructure Strategy, sets out these is one of the primary objectives of there is no provision for further asset issues and our funding model. this Strategy. Council has reflected sales in this strategy. on the challenges in funding our work We also compared the way we fund The 2012 LTP included a number of years programme over the past decade. While activities with that of other similar where expenditure exceeds income, i.e. e a e ed it i nifi ant ulati n councils around New Zealand. We the budget is ‘unbalanced’. This Strategy growth, upgraded many infrastructure came to the conclusion that our overall has taken a different approach, with the a et u a ad id e and rating levels were very low compared fundamental premise that an operating a te ate t eatment lant t im e with our peers and that they needed to surplus will be produced in every year i.e. e i e le el uilt i nifi ant mmunit be increased if we were to achieve our the budget is balanced and depreciation a et li e li a ie and t a ilitie service delivery targets. We were very is fully funded. dealt with damage from storm events conscious of striking a balance between as well as day to day operations, these keeping our rates as low as possible i i a u taina le finan ial t ate have all come at a cost. Much of the and providing the range and quality of By the end of the 10-year planning funding for infrastructure projects has services and asset maintenance that our period we will have an income base that come from increased debt or the sale of community expects. We also took into allows us to provide the services that our assets, rather than from cash surpluses account the affordability of rates, given community expects, without leaving a or reserves. the demographics of our District. large backlog of asset maintenance and renewal for later generations to deal with. We have reflected on the community’s We considered the way that we have While it does mean rates rises beyond need and u u ent finan ial iti n used debt and asset sales to fund our the level of inflation, we believe they are in order to make decisions on what work programme. In the last few years necessary to provide the range of quality Council believes are appropriate ways to we have stabilised our debt at around services our community demands. fund the delivery of all the services that $160 million, and wish to limit future debt
20 FINANCIAL CHALLENGES WE FACE
In developing an LTP it is necessary to The graph below shows the trends in de e iati n i e a alan ed ud et it e ta li a finan ial en el e it in de t e enue and ate i ide any cash surpluses beyond that funding which to operate, including identifying t e ma it u e enue e t e la t capital works. Where more funding appropriate levels of debt, rates, capital 10 years, together with projections for the is needed, that generally comes from and operating expenditure, development next 10-year planning period. either increased debt or assets sales. contributions and fees and charges. A This situation can arise where there is In simplistic terms, the revenue Council number of factors, which are expected i nifi ant ulati n t in ea ed receives each year from rates and to impact on our business and its levels of service, or where operating other revenue sources should cover finan e e t e e i d e e revenue or rates are too low. all operating expenditure including considered.
Debt/net debt, rates and revenue
$200 million
$100 million
$0 2004-05 2009-10 2014-15 2019-20 2024-25
Debt Rates Revenue Net Debt
Notes: Data for 2014-15 onwards is projected. Revenue from 2004-05 to 2007-08 includes a number of non-cash items.
Until the end of the 2014-15 year, Council managed its debt from a gross debt perspective. From the 2015-16 year, measurement will be from a net debt perspective.
During the period from 2004 to 2012 wastewater treatment plants to improve Investment in capital projects continued t e e a a i nifi ant in ea e in de t le el e i e e al a t e fi t from 2012 to 2015, but rather than use which grew from around $40 million development of large new community debt, additional funding was provided to $160 million. This was largely assets for many years, with the mainly through the sale of property due to a major capital expenditure completion of the library, aquatic centre, assets. Sale proceeds were accumulated in growth related projects, a catch- events centre and athletics/gymnastics in the Property Reinvestment Reserve up in infrastructure renewals, as well facilities. milli n a at une and t en a a i nifi ant in e tment in u used internally to fund capital works.
21 Funding our work un il e ati n a e m le and di e e e ide a ide an e e i e me i a e deli e ed a e t a e e uildin in e ti n it t e ein deli e ed t u u e u net in a t u tu e e ad and e a e t eatment e match the cost of providing these services with an appropriate funding source, as summarised in the table below. Full details are shown in the Revenue and Financing Policy on page 184.
PRIMARY FUNDING SOURCES
MAJOR COST DRIVERS INFLUENCES GENERAL RATES TARGETED RATES FEES AND CHARGES GOVERNMENT SUBSIDIES INCREASED DEBT ASSET SALES DEVELOPMENT CONTRIBUTIONS
Age and condition of assets ASSET MANAGEMENT Renewal programme ••••• Storm events, ground conditions
Service delivery targets SERVICE PROVISION Legislation changes e.g. Building Act •••• Government Subsidy availability
Population Growth INCREASED SERVICE Changes in community expectations e.g. Cycleways DEMAND ••••• Changes in land use
Community expectation e.g. Sewage spills CHANGES IN SERVICE LEVELS OR NEW Government legislation e.g. Water standards SERVICES ••• Other service providers withdrawing
Debt levels DEBT SERVICING Changes in interest rates • New debt-funded projects
Inflation PRICE CHANGES Contracts – escalation causes • Tenders – market driven
In establishing this Financial Strategy, Council has to consider levels of funding required from each of these sources to fund it amme ile t e e a e me n t aint a und t e a me und a e ent e am le de el ment nt i uti n an nl e u ed t und t e t ti n me in a t u tu e e t t e e i till n ide a le le i ilit in how Council raises its money.
22 Inter-generational equity debt increases. This has meant that for The resulting Asset and Activity the last decade or so, there has been an Management Plans upon which this Plan The concept of achieving fairness increasing weighting of funding by future is based have generally been prepared between ratepayers over time is called ratepayers, rather than today’s. with a capital expenditure programme ‘inter-generational equity’. that is intended to maintain current Council has now decided that it is levels of service throughout the 10-year Council has a responsibility to consider preferable to return to a situation where timeline of the Plan. This ‘hold and the interests of the community now as there is adequate revenue each year to maintain’ strategy will be managed by well as in the future. As a result, we try fully fund both operating and capital ee in e fi ien ie e e undin i to ensure that, as far as possible, today’s expenditure without relying on debt applied across operations, maintenance, ratepayers only pay for services they are increases or asset sales. To achieve renewal and capital upgrades. We will li el t n ume and n t enefit this, rates will increase at a level above also review operational practices to that will be received by new ratepayers in in lati n t e ne t ea ee t e identi e fi ien ie t at an e ained the future. There are two aspects to this. ‘Rates’ section on page 24 for more from altering intervention levels or detail Firstly, we need to make sure that response times without adversely today’s ratepayers are paying their fair impacting on service level delivery. share of the ‘wear and tear’ on assets Maintaining levels of service that are used to provide services they Council has operated a Financial Strategy There are no instances where current LTP receive. While things like roads and water since the development of the 2009 level of service targets have reduced from pipelines have useful lives that can span Long Term Council Community Plan. the last LTP. decades, they deteriorate a little every This Strategy introduced rigour to the year. In any given period some will need process for developing Asset and Activity to be replaced and we have renewal Management Plans, working within programmes for every asset type. We an e all finan ial en el e t en u e estimate degradation of our assets alignment of capital expenditure with and associated renewal costs through levels of service, while keeping rate rises depreciation in our accounts each year, to the level of inflation. and it is good practice to raise enough funding through rates to cover this every Council has considered additional year. demand based on predicted growth in the development of Asset Management However, because many of our assets Plans, after giving regard to the have long lives, they will provide Sustainable Futures 30/50 Growth enefit t utu e ate a e a ell Strategy. Capital expenditure in this When we build new assets we need to 10-year Plan incorporates our ability consider how much of the expenditure to meet targeted levels of service required should be funded through whilst allowing for capacity required u ent ate a e ia ate and for anticipated growth. For the 2015 how much should be funded through LTP we have also completed a 30-year future ratepayers by borrowing now Infrastructure Strategy that provides a and repaying debt later when future blueprint for delivery of services through ratepayers become consumers. our network infrastructure. Council has always, and will continue e ite t e i nifi ant le el ud eted to, consider inter-generational equity expenditure over the next 10 years, when assessing who should pay in a upkeep of assets is still not at the bid to ensure fairness between current timum le el a identified in t e et and future ratepayers. It will achieve Management Plans. The effect of this inter-generational equity by balancing could potentially lead to deterioration in the mix of funding from rates and debt, assets, meaning targeted levels of service as well as other income sources such as are not attained and/or require additional development contributions. costs in future which are not included within the 10-year life of this Plan. In general terms, rates, fees and charges This could potentially result in future are paid by today’s ratepayers, while ratepayers paying costs that should debt funding is left to future ratepayers arguably be met by today’s ratepayers. t finan e and ultimatel e a u ent The alternative would be to increase rates ratepayers are also servicing and and other revenue even further, or to repaying the debt for assets built by increase debt over the next 10 years. previous generations. The appropriate level of service has been e inan ial t ate in t e la t carefully considered by Council in each LTP limited rates rises to inflation and activity area taking into consideration capped the overall percentage of rates effects of each decision. There have income to 65% of overall revenue. At the inevitably been tensions or conflicts same time, the budget was ‘unbalanced’ between the desired level of service and in a number of years and capital the level that can be provided within e enditu e a finan ed in a t t u t e finan ial a amete utlined in t i asset sales. In previous years, a large Strategy. portion of funding was provided through
23 Rates FUNDING Like most councils, rates are our main source of funding. While we try to maximise the subsidies available from Central Government Throughout the 10 years of this Financial and a e a u e a li t u n um ti n and u e Strategy, Council will rely on funding from a e man e i e t e ul u i unded a variety of sources, with rates being the rates. largest portion The diagram below illustrates how Council’s residential rates compare to those of similar councils across New Zealand. This Funding sources analysis, which was compiled independently by the NZ Taxpayers Union and Fairfax Media, compares the average costs for rates 41% General Rates ene al and ta eted and ele ant u e a e u a mete ed ate and e u e lle ti n e idential ate a e in 2012-13. This table shows their results for a sample of district and city councils with a population greater than 30,000, to allow 19% Targeted Rates relevant comparisons to be made. Average residential rates
$1000 $2000 $3000 NZTA Subsidies 12% Whangarei
Christchurch
Napier 11% User Charges Dunedin
Hamilton
Hastings 10% Water New Plymouth
Palmerston North
2% Commercial Rent Upper Hutt City National Average
Rotorua 3% Other Wanganui Taupo
Wellington Development Kapiti Coast 2% Contributions Tauranga
Gisborne t e et l ta fine and in in ement inte e t received, subsidies other than NZTA, vested assets, Whakatane gains on sale of property. Manawatu
A key activity within the development of Nelson t i t ate a nfi min le el at which revenues need to be set based on Auckland the following principles. Where possible: Tasman • e enue a e u fi ient t e Far North expenses Western Bay of Plenty
• asset renewals and replacements are $1000 $2000 $3000 affordable within the available funding envelope Source: Taxpayer Union/Fairfax Media Survey of Average Residential Rates – 2014 • funding allows for major capital projects the community wants It is evident that our rates are much lower than other councils • current service level targets are that face similar issues. While we recognise that our District is achieved slightly less affluent than the average, we consider that rates • the needs of current and future increases beyond inflation are affordable for our community and ratepayers have been taken into are required if we are to meet our service level targets and keep account our asset maintenance programmes up to date. • we have balanced our budget each We have also considered introducing cost-cutting measures year t a id t e need i nifi ant ate i e e e e e e • rates increases are affordable. unable to identify areas where we could make meaningful savings it ut i nifi ant edu ti n in e i e le el
24 GENERAL RATES e e a e t element t ene al ate a ni m nnual ene al a e i i a fi ed d lla am unt t at all atin units are levied, and a ‘rate in the dollar’ amount, which is based on the value of each rateable unit. Council currently uses land value to allocate the rate in the dollar portion. After considering whether it was appropriate to continue with this approach or move to a Capital Value system, it was decided to continue with the land value approach because the transition is a complex and challenging process, with potential for considerable fluctuations in individual rates demands unless transition arrangements are introduced. Council plans to conduct a comprehensive review of its rating policies ahead of next year’s Annual Plan. TARGETED RATES There are several types of targeted rates, including those: • levied across all ratepayers, e.g. refuse management • only charged to ratepayers connected to reticulated networks e.g. water, wastewater • charged for users of a particular service e.g. Hikurangi Swamp Flood Protection Scheme • funding a particular service or facility that has been requested e.g. a new boat ramp or seawall. e e a ta eted ate i lle ted t e und an nl e u ed t at e ifi u e and t e le el ate le ied i et t match predicted expenditure over time. In any given year there are likely to be differences between revenue and expenditure, so t e a ti it an e in u lu defi it e am le t e e a een i nifi ant in e tment in a te ate t eatment a ilitie in e ent ea t at e ui ed de t undin t at a ti it i u entl in defi it ile t e ite ituati n e i t ate e e there is a surplus, a reserve fund is established and this is shown in the Annual Report each year. INCREASES TO RATES n t e ea t i lan un il intend t in ea e ate e ludin ate e nd t e le el in lati n it t e in ea e in t e fi t ea eate t an t e in late ea a n in t e ta le el e all ate e enue ill al in ea e a u District’s population grows.
YEAR ONE – 2015-16 YEARS TWO-10 – 2016-25
ANNUAL ADDITIONAL ALLOWANCE ANNUAL ADDITIONAL ALLOWANCE INFLATION INCREASE FOR GROWTH INFLATION INCREASE FOR GROWTH
GENERAL RATES
Rate in the dollar LGCI 5% 1% LGCI 2% 1%
e atin nit - $50 1% LGCI 2% 1%
TARGETED RATES
Wastewater LGCI 5% 0.8% LGCI 2% 0.8%
Refuse Management LGCI 5% 1% LGCI - 1%
Flood Protection - 8% - - 8% -
Water Rates LGCI - 0.6% LGCI - 0.6%
We have also allowed for growth in Rates revenue of 1% for most rating categories due to projected population increases. The e ted num e atea le e tie it in t e i t i t at t e end ea e edin finan ial ea i n in t e ta le el Projected rating base information 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 24-25 40,675 41,081 41,492 41,907 42,326 42,750 43,177 43,609 44,045 44,485 44,485
Annual Growth factors shown above will be used for each year’s rates strike regardless of actual growth to allow some certainty in finan ial lannin en t e ne t i e a ed in a tual ulati n t ill e e ie ed a ain t t e e e ti n and any necessary adjustments made. The reasons for different increases for each rating type are: General rates Rate in the dollar e e in ea e a e et at t e le el t at ill ide u fi ient undin t e lanned e enditu e amme t e ul un il a ti itie n ea e t t e atin t e nl a m t e e am unt i t e e a e e ifi ea n a n ted el UAGC Review of the Revenue and Financing Policy indicated that the increase to the UAGC in year one of $50 brought it to an appropriate level that reflected funding requirements of activities that are to be funded by all ratepayers equally.
25 Targeted rates Wastewater This increase matches that of the rate in the dollar. However, the growth factor is reduced from 1% to 0.8% as some growth will be outside the reticulated area. Refuse management An increase in year one will bring revenue for this activity in line with expected expenditure with ongoing growth and inflation adjustments. Flood protection In line with consultation for the 2012 LTP with the public and those affected, Council has maintained targeted rate increases for the Hikurangi Swamp Scheme at 8% for each year of the Plan to fund additional expenditure required to maintain effectiveness of the Scheme. Water The Water Reserve had a surplus of $8.9 million as at 30 June 2014.These funds, together with increases limited to inflation and growth, will provide adequate funding for the expenditure programme in this LTP. The growth factor is reduced from 1% to 0.6% as some growth will be outside the reticulated area. ALLOCATION OF RATES n un il int du ed a fi ed e t all ati n met d l e e a e dete mined e enta e ene al ate a shared between the three rating categories. The current splits are: e idential in ludin li e t le and multi unit e tie Commercial properties 28.5% Rural properties 9.5% After reviewing the Revenue and Financing policy as part of the preparation of this strategy, Council has decided to leave these sector allocation percentages unchanged. However, Council will carry out a full review of its rating approach in the 2015-16 year.
26 SAMPLE OF PROPERTIES SHOWING RATES FOR 2015-2016 2014-15 2015-16 Randomly selected sample of properties from each category
RESIDENTIAL PROPERTY IN URBAN AREA WITH A LAND VALUE OF $90,000 General rate – 281.24 296.92 Uniform Annual General Charge 356.00 406.00 e e a e an a e e e nne ted 596.00 639.00 District-wide refuse management 155.00 166.00 Total 1,388.24 1,507.92 RESIDENTIAL PROPERTY IN URBAN AREA WITH A LAND VALUE OF $195,000 General rate – 609.36 643.33 Uniform Annual General Charge 356.00 406.00 e e a e an a e e e nne ted 596.00 639.00 District-wide refuse management 155.00 166.00 Total 1,716.36 1,854.33 LIFESTYLE PROPERTY WITH A LAND VALUE OF $320,000 General rate – 999.97 1055.71 Uniform Annual General Charge 356.00 406.00 District-wide refuse management 155.00 166.00 Total 1,510.97 1,627.71 LIFESTYLE PROPERTY WITH A LAND VALUE OF $1,750,000 General rate – u t 2,146.82 2266.48 m t 1,073.41 1133.27 e 293.74 310.12 Uniform Annual General Charge 356.00 406.00 District-wide refuse management 155.00 166.00 Total 4,024.97 4,281.87 RURAL PROPERTY WITH A LAND VALUE OF $750,000 General rate – 1,944.48 2001.83 Uniform Annual General Charge 356.00 406.00 District-wide refuse management 155.00 166.00 Total 2,455.48 2,573.83 RURAL PROPERTY WITH A LAND VALUE OF $2,200,000 General rate – 5,703.72 5872.02 Uniform Annual General Charge 356.00 406.00 District-wide refuse management 155.00 166.00 Total 6,214.72 6,444.02 COMMERCIAL PROPERTY WITH A LAND VALUE OF $510,000 General rate – 7,902.36 8770.32 Uniform Annual General Charge 356.00 406.00 District-wide refuse management 155.00 166.00 Sewerage charge – fi e an 1,940.00 2080.00 Total 10,353.36 11,422.32 INDUSTRIAL PROPERTY WITH A LAND VALUE OF $2,475,000 General rate – 38,349.68 42561.83 Uniform Annual General Charge 356.00 406.00 District-wide refuse management 155.00 166.00 Sewerage charge – fi e an 1,940.00 2080.00 Total 40,800.68 45,213.83
**Please note – Northland Regional Council rates are not included. Please refer to their LTP for the impact of their rates on your property.
27 Debt, interest and internal funding DEBT Council’s debt grew by $120 million in the period from 2004 to 2012, but since then it has leveled off to the current amount of around $160 million. This Strategy sees net debt peak at $171 million before reducing to $146 million by 2025, unless physical n t u ti n a ne ai t mmen e ea lie t an e e ted ee a e The graph below compares net debt to revenue and shows an improving trend over the 10 years of the Plan, with revenue mat in de t in t e fi t time in e Debt /net debt as a % of revenue
150%
75%
0%
2004-05 2009-10 2014-15 2019-20 2024-25 Debt ratio Net debt ratio
Until the end of the 2014-15 year, Council managed its debt from a gross debt perspective. From the 2015-16 year, measurement will be from a net debt perspective. FINANCE COSTS Council minimises its cost of debt through active treasury management, using interest rate swaps to protect against underlying inte e t ate ma in in ea e e t matu itie a e ead e t t and l n te m a ell a a mi tu e fi ed and variable interest rates. n de t minimi e finan in t un il i a a e ldin mem e t e al e nment undin en i means Council is able to borrow at better rates than are available through direct lending from trading banks. n a un il ad it edit atin e nfi med tanda d and e e i ed t e edit ate utl m ‘stable’ to ‘positive’ due to stronger budgetary flexibility, which indicates a one third chance of a credit rate increase within the next t ea i i li el t u t e edu e finan in t in a d The LTP assumes an interest rate averaging 5.65% across the 10 years, after taking all factors outlined above into account.
Interest as a % of revenue
12%
6%
0% 2004-05 2009-10 2014-15 2019-20 2024-25
INTERNAL FUNDING As part of its treasury management, Council seeks to minimise its overall interest costs by using funds held in reserve as ‘internal borrowing,’ i.e. rather than keeping funds on deposit while borrowing all the money needed to fund capital works, reserve funds are used in the short term, noting that they need to be repaid in future as they are needed. Council intends to continue this approach into the future. e la e t e e e und i t e e t ein e tment e e e i a eated t u t e ale un il inte e t in leasehold land to incumbent lessees since 2010. While there are no plans to sell more leasehold land in this LTP, if any sales were to take place, funds would be added to this reserve. In the meantime, available funds are used to fund other Council activities, until required for new commercial property purchases.
28 t t i int un il a n t identified ud eted an e t u a e in t e ne t ea e e it i e ni ed t at t e e i a i ilit t at in e tment tunitie ma a i e m time t time e e t e e i an identified t ate i enefit and or the predicted return from a potential commercial property investment is greater than the cost of capital, consideration may be given to funding a purchase, thereby reducing the PRR balance. Any such purchases are likely to be debt-funded and dealt with via a Council resolution or future Annual Plan/ LTP process as appropriate. Property Reinvestment Reserve
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 TOTAL 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Opening 26,258 26,783 27,319 27,865 28,422 28,991 29,571 30,162 30,765 31,381 26,258 balance
Dividend 525 536 546 557 568 580 591 603 615 628 5,750
Closing 26,783 27,319 27,865 28,422 28,991 29,571 30,162 30,765 31,381 32,008 32,008 balance
t e i nifi ant e e e und in lude mmunit e el ment und milli n a at une and a et e e e t at a e eated en ta eted ate a a ti ula a ti it a e a umulated e e i nifi ant a ital e enditu e e e a a balance of $8.9 million in the water reserve as at 30 June 2014. This will be eliminated over the life of the LTP as water projects are completed. At the outset of this LTP Internal Funding will total around $40 million which is expected to increase to around $44 million by 2025. ti nal inte e t a e ill e made t ea a ti it t ei a e und ed m e e e it inte nal finan e t disclosed in Activity Funding Impact Statements in the line item ‘Applications of operating funding – finan e t e e ultin internal interest revenue is disclosed within Activity Funding Impact Statements line item ‘Sources of operating funding – local aut itie uel ta fine in in ement ee and t e e ei t ll inte nal inte e t i eliminated in t e e ti e undin Impact Statement for Whangarei District Council. Fees and charges un il ill in ea e m t ee and a e annuall t ali n it t e al e nment t nde in lati n ate i ranges from 2.24% to 3.53% across the 10 years of the Plan. In some areas, Council will seek to recover actual costs, e.g., food inspections and liquor licensing, which will result in increases beyond inflation. Council’s fees and charges are reviewed on an annual basis. NZTA subsidies u idie m ent al e nment ia e ealand an t en ide a i nifi ant u e undin u transportation activities. In 2015-16 we expect to receive subsidies of $21.1 million, representing 54% of the gross cost of both operating and capital expenditure on a wide range of approved items. At the time of completion of this Plan NZTA had not nfi med t e u idie a lied un il Development Contributions Council’s practice is to fund most of the growth component of capital expenditure through Development Contributions, with the emainde unded t u ate e t e a t e ea t e e n mi e e i n a l ed t i nifi antl un il a taken a conservative approach to forecasting revenues in this area. Across the 10 years of this Plan, we expect to proceed with around $67 million of growth projects. Forecast income of $22 million from Development Contributions will cover some of this cost, with the remainder of funding to come from rates and subsidies.
Development Contributions
$8 million
$4 million
$0 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
29 EXPENDITURE
Operational activities Total annual expenditure is forecast to increase from $124 million to $164 million over the 10 years of the Plan, while total annual revenue is expected to increase from $132 million to $189 million over the same period. This will provide an operating surplus in every year of the Plan. Council’s approach to forecasting operational expenditure is a balancing act. Local government costs are rising faster than general consumer goods, and as a result, Council must rise to the challenge of meeting levels of service while at the same time l in e fi ien ie in de t ntain e enditu e e al need t all e e t ulati n t and e atin t associated with new assets in preparing our budgets. Reviewing our supply chain so that we can purchase at best prices provides one of the best opportunities for limiting costs. ntinu u im ement u e e in man a e ill e ult in le t ut al in e t u e a aila le und d in m e it le un il n tantl e ie it e atin t it e ula e ie item u a an a e inte e t ate and preferred supplier arrangements. The tables below show the split of total forecast operating costs for each activity and expenditure type for the planning period.
Breakdown by activity $000 % OF TOTAL
NETWORK
Transportation 339,280 23.6%
Water 146,037 10.1%
Solid Waste 70,703 4.9%
Wastewater 138,620 9.6%
Stormwater 44,582 3.1%
Flood Protection & Control Works 11,653 0.8%
Total 750,876 52.2%
OTHER
Community Facilities 241,959 16.8%
Economic Growth 29,163 2.0%
Planning & Regulatory 98,276 6.8%
Support Services 320,180 22.1%
Total 689,578 47.8%
Total Activity Expenditure 1,440,454 100%
Breakdown by expenditure type $000 % OF TOTAL
Asset operating expenditure 58,759 4.1%
Operating expenditure 335,819 23.3%
Professional fees 50,609 3.5%
Repairs and maintenance 170,280 11.8%
Depreciation 460,133 32.0%
Finance costs 88,758 6.2%
Personnel costs 276,096 19.1%
Total 1,440,454 100%
30 Capital expenditure Total annual spend on capital projects ranges from $45 million to $71 million. Included in the 2015-2016 year is $13.4 million of carry forwards from 2014-2015. Expenditure is funded by a combination of operating surplus, rates collected for depreciation, development contributions and government subsidies. Council is expected to receive NZTA subsidies for roading expenditure of up to 54% for year one, and 53% for year two onwards, although some projects may be fully subsidised. The graph below illustrates planned capital expenditure over the 10 years of the Plan of $574 million. 65% of total expenditure is for the renewal of existing assets, with 23% for improving levels of service and the balance of 12% providing for growth.
Capital expenditure
$80 million
$4 million
$0 2015-16 2017-18 2019-20 2021-22 2023-24 Growth Service Renewal
Just under two thirds of expenditure is for the renewal of existing assets and upgrades to extend their useful life. Each year a depreciation amount is estimated. This represents the portion of an asset’s useful life that has been used up through ‘wear and tear’ in that year by current ratepayers. Depreciation is calculated for all assets, and each year’s renewal programme only affects a portion of assets, although all of them are replaced over time. The graph below shows the relationship between these two amounts over the life of the Plan.
Renewals to depreciation 120%
60%
0% 2015-16 2017-18 2019-20 2021-22 2023-24
Trend Renewals/Depreciation
This shows the average ratio of renewals to depreciation to be 82%. While renewal expenditure should roughly match depreciation expense in the long term, this is seen as a prudent approach that will not compromise service levels in the foreseeable future or lea e a i nifi ant a l a et e la ement utu e ene ati n i i ue i e l ed in m e de t in t e n a t u tu e Strategy.
31 Capital Expenditure by activity type is allocated as shown in the table below.
$000 % OF TOTAL
NETWORK INFRASTRUCTURE
Transportation 222.3 38.8%
Water 86.2 15.0%
Solid Waste 1.1 0.2%
Wastewater 126.8 22.1%
Stormwater 17.5 3.1%
Flood Protection 0.7 0.1%
Total 454.6 79.3%
OTHER
Community Facilities 89.0 15.5%
Economic Growth 0.4 0.1%
Planning & Regulatory 1.1 0.2%
Support Services 28.4 5.0%
Total 118.9 20.7%
Total Capital Expenditure 573.6 100%
Note: Solid Waste expenditure relates solely to transfer stations, which are the only solid waste assets directly owned by Council. The bulk of our refuse management e ati n in ludin t e landfill and e t a ilit a e deli e ed it u int entu e a tne t u t e t land e i nal andfill As the above table shows, over the life of the Plan, 79% of capital expenditure is focused on network infrastructure, reflecting Council’s recognition that we still have to invest considerable amounts in our core assets to meet the service levels our community expects. e e mmunit a ilitie li e at am la und al in t a t eat e a e a iti al m nent a alan ed and sustainable community, and form an important part of our aspirations to enhance our District in terms of Sense of Place and improved economic social, health and education statistics. While some consider these projects as ‘nice to have’, Council views them just as important as core infrastructure in achieving our overall outcomes, while recognising that expenditure on them needs to be kept in balance. MAJOR CAPITAL PROJECTS Whau Valley Water Treatment Plant allowed for the plant to be extended, if Road. The intersections at each end needed, in decades to come. A new site of this stretch will be upgraded and a t ea un il in e ti ated t e would remove this industrial activity from ne t a fi i nal ill e in talled and pros and cons of upgrading the 60-year- the residential environment, and could the intersection at Nixon Street and old freshwater treatment plant on the be achieved with less disturbance to en in t n enue in am corner of Whau Valley Road and Fairway residents than rebuilding on the existing ad ill e t ai tened i n t eet Drive, or building a new plant in a less site. ill e idened t met e n t e populated area closer to the face of the n t e n ide t all t e e t a lane dam. A new site will be sought and and t at i i t e final e t in a $18.7 million, including a $1 million carry The existing plant has adapted well to 20-year road improvement programme forward from 2014-15, is allocated in water quality improvements required started in 1996, when the Whangarei t u t ea ne t over the past six decades, and it now 20/20 Central Area Concept Report and t ee t uild a ne ate t eatment processes much more water than it did e ealed t at u t t e t a fi in plant. when it was new. But it is now getting the central business district at the time old, the building does not meet new Mill/Nixon/Kensington was there only to travel from one side earthquake standards, it is surrounded of the District to the other. Projects that Council has allocated $5.6 million in by residential development and large uld l e t e e i ue m t e fi ientl 2015-16, including a $1 million carry lume t a fi a it e e da a e e t en identified e an t forward from 2014-15 to complete new plant is built on a new site, it would Plan was developed and, following public planned works to ease congestion and meet 100% of seismic requirements, consultation, the Plan was adopted in safety at the intersections of Nixon while only 67% of the standards would 1996. We have been checking off those Street and Mill Road, and Nixon Street be met if the old plant’s building was projects over the years since. and Kamo Road, which are both subject upgraded. A new plant would last 40-50 t t a fi ueue and a ident i ea t i e a l n a u ade t project will see Nixon Street become t e e i tin lant and a e uld e four lanes between Mill Road and Kamo
32 Dust suppression and sealing primary projects will be to control odour New airport from the largest wastewater treatment Dust suppression on unsealed roads Investigations are underway for potential plant in the District, at Kioreroa Road. In continues to be a topic of some development of a new airport, as the the past, two odour-prone businesses discussion, and as a result we are u ent l ati n ne a i i e e ted were located on Kioreroa Road which seeking Government assistance to seal to have inadequate runway length for was relatively distant from the city and sections of road on a number of unsealed commercial airline fleets within 10-15 ended halfway along the valley beside logging routes across the District. The years. A total of $2.5 million has been Limeburner’s Creek. Now Kioreroa Road decision from NZTA is not expected until in luded in t e fi t u ea t e lan is a major thoroughfare, connecting the July 2015 at the earliest, so $30,000 of to fund initial investigation, site selection Lower Hatea River Crossing with State dust suppression work was funded out and consenting phases. of Roading’s operating budget over the Highway One. Industrial development has summer of 2014-15. boomed along the route and residential Land purchase and site development development has moved closer. As t a e di fi ult t e timate at t i Council has applied to NZTA for a 100% a result, odours from the plant have ta e ut a e e tain t e i nifi ant subsidy to seal the full length of the the potential to affect more people. – potentially as much as $40 million. currently unsealed sections of Wright Investment over the next 10 years will Because of this uncertainty no funding Road and McCardle Road over three contain and treat odours emitted from for this has been included in this years. It is likely to cost $4.5 million to the plant. At the same time, a number of LTP. However, should the new airport seal the 9km road. We are requesting projects will reduce the chances of spills development proceed, Council’s intention this funding from NZTA’s Regional and contamination by wastewater as would be to fund this through additional e el ment und e t it moves towards the plant though the debt. road upgrading. City’s sewer network. e au e t e i nifi an e t i In case we don’t receive this funding, Support Services project, a decision to proceed beyond e a e al a lied a fi e ea the consenting stage to physical Most of Council’s administration is programme to seal strips in front of development would trigger an LTP a ied ut m t ee e a ate fi e houses on metal roads that carry a lot Amendment and further public um t t e nl fi e uildin e ea e i le t a fi e a e a ed n ultati n e e i in u fi ient n alt n la a and t e i i ade NZTA to subsidise 54% of the costs of the ead m in t e imit n e t ee a e For some time we have been looking at project, and we have included the 46% t i undin and t e e uld e options to bring the operations in these that we would contribute in this Plan. reviewed as part of that process. three buildings under one roof. In the Hikurangi sewerage min finan ial ea e ta t in The sewer system in Hikurangi is so towards housing most of our civic and low-lying that in heavy rain, floodwater administration functions in one centrally pooling above ground can flow into gully located building, a move that would t a and l l in man le in l im e du ti it and e fi ien and water within the ground can seep reduce rent paid, provide a better service into the system through cracks in the to customers and eliminate duplication i e infilt ati n i l d t e e e of functions established to operate three and it, in turn, over-flows onto the buildings. It is estimated the project surrounding land, contaminating flood would cost $10 million, and that it would water on streets, paddocks and back generate future operational savings yards. averaging over $1 million per year. This is the only project that would increase our Lining cracked concrete pipes with t tal de t ut t i fi e uildin de t ill i in ill edu e infilt ati n and be repaid through cost savings in around redesigning and replacing parts of the 12 years, thereafter providing ongoing system will reduce inflow. We have cost savings. allowed $400,000 for the engineering plans and preparatory work to repair The funding included in the Plan assumes the system in 2015-16, $3.4 million in expansion of the current building at 2016-17, $2.2 million in 2019-20, and Forum North. However, other options $1.9 million in 2020-21. would be investigated, including staying in the current sites or leasing space in Wastewater treatment plant odour and a new development in the CBD, which resource consent and city improvements may mean a slight increase in costs, but Work in wastewater management would not require us to increase our debt. over the past decade has focused on improving the health of the harbour and wider environment, and sustaining that improvement. Over the next 10 years focus will shift towards anticipating and meeting rising environmental standards, community expectations, accommodating population growth and taking advantage of improvements to technology. One of the
33 ASSETS
un il ld a an e fi ed a et the 2011 asset re-valuation, Council insurance programme and, as a result valued as at 30 June 2014 at $1.6 billion. reviewed sums insured for each asset of this, Council’s insurance schedules t tal illi n t e e class to ensure adequate cover was in were again subject to a full review. This comprise our core network assets place. This review found that Council had process is similar to that undertaken such as transportation, water systems, over 90% asset value cover for assets following the 2011 revaluation, and wastewater, stormwater and flood eligible for Local Authority Protection involved an assessment to determine protection infrastructure. amme and e a et whether costs of asset replacement value cover for assets commercially across Council should be met by Asset Management Plans have been insured. As a result of this review, Council commercial insurers, LAPP and NZTA, or prepared for infrastructure assets, allocated uninsured assets to LAPP, self insurance. Following this review, the setting out required maintenance and commercial insurers or ‘self insurance’. in u an e edule a finali ed it renewal expenditure to ensure they are Options for cover of uninsured assets ad u tment ein n tified t e e ti e appropriately managed and maintained were taken through the 2012 insurance insurers. to provide our targeted levels of service. renewal process. Council intends to maintain these assets Direct equity investments in Council in accordance with these plans. Council Each year since, Council has undertaken Controlled Organisations/Council also holds a number of operational and a full assessment of insurance to Controlled Trading Organisations and investment assets including property determine whether there is adequate t e a e ldin in t e m land in atin land uildin und cover and where necessary additional uildin ai t a et and a t lea e and land eld de el ment cover has been taken. At the time of make up the remainder of Council’s and small forestry blocks. t e ene al une assets. These investments are reviewed approximately 2% of assets were on a regular basis to ensure that they are Council’s assets are insured with allocated to self insurance with the still appropriate for Council to retain. a number of providers, with the remainder being allocated to commercial exception of roading assets which Over the period of this Plan, the value of insurers, LAPP or NZTA. are predominantly covered through assets is expected to rise considerably as emergency reinstatement funding from 2014 was also a revaluation year. capital works projects will establish new NZTA and the small number of asset Revaluation data was not available until a et i nifi ant alue and e i tin classes that are self-insured. Following after the placement of the 2014-15 assets are revalued every three years.
Assets by Activity
Community Facilities & Support Services 4% Services 5% Flood Protection & Control Works 1%
Stormwater 12%
Transportation 52%
Wastewater 14%
Solid Waste 0%
Water 12%
34 MANAGING OUR GROWTH
Our District is growing and we expect it The implications of growth for each of the events have been catalysts for major to continue to grow by an estimated 1% main asset classes are discussed below: upgrades in the past. per annum over the next 10 years. The population of the District is projected to Transportation Stormwater disposal increase from 83,700 today to around Recent Council efforts have resulted Historically, demand on our stormwater 112,000 in 2045. in a programme of major projects network increased as there was little This represents an average annual t im e t a fi l and a et in or no obligation on the development increase of around 800 people per order to address future pressures on community to mitigate the effects year, and a total increase in population our roading network. These projects of increased runoff. The effect of of about 8,100 over the next decade, included the Lower Hatea River Crossing, growth through property development increasing total dwellings by around linking Port Road to Riverside Drive, the is managed through regulatory additi nal d ellin e Spedding Road extension the Porowini mechanisms, principally Environmental year. Growth patterns also predict around Avenue over-bridge and link to Port Engineering Standards, which require 50 additional unoccupied dwellings Road and the Mill Road/Nixon Street/ new stormwater infrastructure and lida me e ea n me a t Kamo Road intersection upgrades developments to address climate of the District growth has the potential to which is currently underway. The New change, runoff and stormwater quality be substantial, particularly in the Marsden ealand an t en a issues. Many of the assets arising Point/Ruakaka area and along the coast. also been working through a series of from development will be vested to This expected growth in our population major State Highway upgrades in order Council with a corresponding increase requires considerable investment in to address maintenance and growth in operational expenditure required to infrastructure, services and community a t n ea ed t a fi l ill al maintain those assets as they age. facilities at substantial cost to Council, create demand for improved urban Continued work programmes are the business sector and the community intersections, such as Porowini Avenue. supporting renewal, maintenance and in general. growth of the stormwater network as Water supply required. While this growth is desirable and is to be encouraged it will continue to put Approximately 80% of our population Solid Waste pressure on our core infrastructure and accesses Council’s water supply community facilities in the medium and infrastructure, with the remainder Generation of solid waste is closely long term. Our transportation and roading accessing water from springs, bores, linked to growth and industrial and network, water and wastewater services streams or rainwater. The District has commercial development. However, and parks and recreational facilities need four water supply areas – Whangarei, despite population growth, over the last to carry enough capacity to provide for Bream Bay, Maungakaramea and several years there has been a reduction predicted growth, with the anticipation Mangapai. in t e t tal a te t nna e t t e landfill Council plans to continue this reduction of what has to happen and when it is Increasing population and industrial through its Waste Minimisation Strategy. needed ein a i nifi ant allen e growth is placing pressure on our Council. District’s stored water supply, which These reductions, coupled with past To manage projected growth sustainably, means our ability to respond to a one-in- investment in solid waste facilities and in 2010 Council adopted a long-term sub- 50-year drought scenario is becoming services, ensure that capacity for future regional Growth Strategy titled Whangarei strained. Annual water consumption is growth already exists, thus minimal District Growth Strategy – Sustainable expected to increase from 7 million to capital investment is required in this area Futures 30/50. This Strategy determines around 8.2 million cubic metres annually to respond to growth. existing and potential land use patterns by 2055 due to population growth. Parks & Recreation and requirements. This allows us to In response to this situation the Plan manage the impact of growth and assess includes projects to increase the Our District has an extensive network and plan for infrastructural requirements availability of water and reduce the t field e e e a a tal for our District over a 30-50 year time amount of lost water from system breaks structures and walkways along frame. and leaks. with a number of partially Council- Because development and settlement funded community-based sporting patterns have effects on both the timing Wastewater disposal and recreational facilities. We expect demand on these facilities to increase and costing of core infrastructure, the Major pressure is evident on the as our population grows, particularly Infrastructure Strategy builds on this wastewater system as a result of it t field nei u d and work to provide more detailed planning growth in the District. The recently urban parks, and amenities to enhance of our network infrastructure needs. Our completed wastewater treatment plant the ‘sense of place’ for individual Activity and Asset Management Plans and reticulation at Ruakaka South was communities. Council’s contribution to have also been developed with regard to partially driven by capacity constraints as economic growth for the District includes the 30/50 Strategy, which encourages a result of growth. The pressure, however, increasing the number of events being growth where it has been considered extends throughout our District in terms held in Whangarei, with sporting events desirable and where infrastructure is of growth in areas such as Tutukaka, being included. capable of meeting increased demand Oakura and the City catchments. and seeks to discourage it in other areas. Overloading of the sewerage reticulation An allowance for growth in general rates system during peak wet weather of 1% p.a. has been made in this Plan. conditions and overflows during extreme
35 MINIMISING RISK
In preparing this Plan Council had to make some assumptions about what will happen in the future, but this will always bring with it a le el i e a e identified u ma a ea i t at uld im a t u a ilit t deli e n u inan ial t ate • Our District is susceptible to extreme weather events which requires funding for unplanned repair works. The main impacts are felt in our roading network, but there is often damage to other infrastructure such as pipelines, walking tracks and coastal structures. While we design and build our infrastructure assets to have resilience to these storm events, we are often faced with unplanned repairs. Council has considered the establishment of a reserve fund to cover storm damage, but has chosen not to do so at this time. Instead, funds are generally sourced from postponement of other projects as needs dictate. No provision has been made for catastrophic events such as tsunami, as this would be so disruptive that a business continuity lan a ed n t e u ent e atin m del uld e im a ti al and t e inte enti n u a ent al e nment u t would be required. • We know that population growth and development will continue, but we cannot accurately quantify exactly when, where or to what extent it will occur. Our Asset Management Plans, and Infrastructure and Financial Strategies are all based on historical trends and future growth forecasts to give us the best prediction of our District’s needs into the future. While a number of projects that support growth are included in our LTP, we will review actual growth patterns and infrastructure needs each year and adjust the programme accordingly. • d e e l al e n mi nditi n an al a e a ne ati e im a t n un il finan ial e u e a ell a t e our ratepayers and residents. The last six years have been particularly challenging, as Council has balanced issues of rates a da ilit a ain t t e de i e t ntinue endin n in a t u tu e e t i ide a i nifi ant in ut t t e l al e n m t u em l ment and finan ial timulu • Conversely, buoyant global economic conditions can lead to higher interest rates. Given the level of Council’s external debt, every 1% increase in interest rates represents about 2.4% of general rates. However, we manage our exposure to interest movement through a hedging programme that gives us a high degree of insulation from global or national events i.e. we have effectively capped our interest rates for many years into the future at current rates of less than 6%. We also take a conservative approach to our debt levels, meaning that we have considerable capacity to raise debt to deal with abnormal events and emergencies. While there is no intention to increase debt beyond the levels shown elsewhere in this Strategy, it is important to note that we have access to more funding in the unlikely event that it is needed.
LIMITS AND POLICIES Limit on rates Council does not have a particularly diverse income stream, with the main sources being rates, fees and charges, development nt i uti n and e nment u idie e t an tati n e e i limited e t add ne e enue u e it ut allocating funds to new investments, so the reliance on rates as a revenue source will remain relatively high. ile un il ill ntinue it a a all atin ate a a undin ti n a ed n au e and enefit m it a ti itie it ill al endea u t limit ate e ludin ate lle ted ea ea t a ma imum t tal un il e enue with the long term average below this limit. This limit will be reconsidered as part of every Annual Plan and LTP to ensure that it remains a practical target given Council’s finan ial iti n and ade e n mi nditi n at t at time
Limit on rates (excluding water) as a % of revenue
80%
40%
0% 15/16 17/18 19/20 21/22 23/24 Ratio Limit
t e u e t i limit ate a e defined a all e enue de i ed m ene al ate and ta eted ate ut e ludin ate ate i a e e e ti el a consumption charge and are therefore out of Council’s direct control.
36 Limit on rate increases As noted in the Rates section above, Council intends to apply increases above inflation to all rating types apart from water. The increase will vary by rating type and from year to year, with the largest increases in 2015-16. The inflation factor used is the Local Government Cost Index, with predicted annual inflation amounts ranging from 2.24% to 3.53%, with the largest increases in the later years of the Plan. Rating revenue will also increase through natural growth in the rating base i.e. as our population grows. An allowance of 1% per annum is made for rates levied on all ratepayers, and 0.8% for wastewater, and 0.6% water as some growth will be outside the reticulated area. e limit n ate in ea e ill e et at di e ent le el t e li e t e lan n t e fi t ea it ill e lu m a ed to subsequent years of LGCI plus 4.5%.
Limit on rates increases (excluding water) 12%
6%
0% 15/16 17/18 19/20 21/22 23/24 Increase Limit
The target set for reporting purposes will be reset in each year’s Annual Plan based on the latest LGCI predictions. From time to time there may be extraordinary events that mean Council may have to go outside these limits. For instance, there may be a need to fund the cleanup after a catastrophic event. However, these situations are considered to be unlikely and have not been provided for in this Plan. Limits on borrowing As noted above, Council is planning a decrease in external net debt to $146 million by the end of the LTP in 2025. e ma imum e te nal net de t e ui ement in t i lan i milli n e ea t e li limit el i a e ie ed a conservative by Standard and Poors, support net debt of over $184 million. While Council has no intention of increasing debt to these levels, this represents the upper limit of borrowing under these limits and provides a buffer in the event of an emergency or natural disaster. When viewing its external debt situation, Council looks at external net debt which is the net of total external debt le an li uid finan ial a et and in e tment t at un il ma a e ut in la e a a t it t ea u mana ement at an given time. There are two limits on borrowing: external net debt less than 150% of revenue, and external net debt per capita less than $2,150. Details on how Council’s debt is managed are set out in the Treasury and Risk Management Policy which is available on request. Council also utilises internal funding which is not subject to the above limits.
Net debt as a % of revenue Net debt per capita 200% $3,000
100% $1,500
0% $0 15/16 17/18 19/20 21/22 23/24 15/16 17/18 19/20 21/22 23/24 Ratio Limit Debt/Capita Limit
Securities for borrowing Council currently secures its external borrowing and interest rate risk management instruments against the total of rates revenue via a registered Debenture Trust Deed. It is intended to continue with this practice, which provides ample security cover for predicted levels of borrowing. FINANCIAL INVESTMENTS AND EQUITY SECURITIES Council uses any surplus cash to reduce debt, or invest in short term investments which are included as cash. Council can also hold investments in its subsidiaries. Council does not hold equity securities in public companies except for small holdings in Civic Assurance Limited and New Zealand Local Government Funding Agency Limited which provide insurance services and lending to participating local authorities respectively.
37 COUNCIL ORGANISATIONS
un il u entl deli e a a iet e i e t u un il ani ati n e e it n ide t i i a m e e e ti e e fi ient and finan iall ia le ti n m a ed t t e mean deli e e e a e fi e un il nt lled ani ati n • Whangarei Waste Ltd • Springs Flat Contractors Ltd • Whangarei Art Museum Trust • Northland Event Centre Trust • Whangarei District Airport. There is also one Council Controlled Trading Organisation: • t land e i nal andfill imited a tne i un il al a a mall a e ldin in t e al e nment undin en i i ned un il and t e Crown. un il d e n t intend t ma e an i nifi ant an e t t e u ent undin a an ement t e e t u ut t e 2015-2025 LTP. MONITORING AND REVIEWING THE STRATEGY
a t u ine a u ual e n tantl an t e finan ial en i nment and u n e man e t m nit • u taina ilit u finan ial e man e and iti n • emerging risks • whether the Strategy is being implemented • trends in the community’s ability to pay. The Strategy will be reviewed tri-annually as part of the LTP process. Consideration will also be given to the impacts of any i nifi ant an e in l al nati nal l al e n mi nditi n du in ea ea nnual lan e SUPPORTING DOCUMENTATION AVAILABLE
The policies listed below have been developed in conjunction with this LTP, and are available upon request: • e enue and inan in li a e • Treasury and Risk Management Policy • Development Contributions Policy.
38 LONG TERM PLAN DISCLOSURE STATEMENT FOR PERIOD COMMENCING 1 JULY 2015
What is the purpose of this statement? e u e t i tatement i t di l e un il lanned finan ial e man e in elati n t a i u en ma t ena le t e a e ment et e un il i udentl mana in it e enue e en e a et lia ilitie and ene al finan ial dealings. un il i e ui ed t in lude t i tatement in it n e m lan in a dan e it t e al e nment inan ial e tin and uden e e ulati n t e e ulati n e e t t e e ulati n le i lati n t n m e in mati n in ludin definiti n me t e te m u ed in t i tatement Rates affordability benchmarks Council meets the rates affordability benchmark if: • it lanned ate in me e ual i le t an ea uantified limit n ate and • it lanned ate in ea e e ual a e le t an ea uantified limit n ate in ea e
RATES (INCOME) AFFORDABILITY 80% The following graph compares Council’s 70% lanned ate it a uantified limit n 60% rates contained in the Financial Strategy 50% included in this Long Term Plan. The 40% uantified limit i t at ate in me 30% e ludin ate ill n t e eed total revenue. 20% 10%
0% 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Quantified limit n ate in me Proposed rates income Proposed rates income Rates income (excluding water) / Total revenue (%) Total / water) (excluding income Rates (at or within limit) (exceeds limit)
RATES (INCREASES) AFFORDABILITY The following graph compares Council’s 12% lanned ate in ea e it a uantified 10% limit on rates increases contained in the finan ial t ate in luded in t i n 8% e m lan e uantified limit i t at t e rates increase should not exceed LGCI 6% plus 7.5% in year one, and LGCI plus 4.5% 4% in years two to 10. (%) Rates increase 2%
0% 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Quantified limit n ate in ea e Proposed rates increase Proposed rates increase (at or within limit) (exceeds limit)
39 Debt affordability benchmarks un il meet t e de t a da ilit en ma i it lanned in i it in ea uantified limit n in EXTERNAL NET DEBT The following graph compares Council’s 160% lanned de t it a uantified limit n 140%
borrowing contained in the Financial 120% Strategy included in this Long Term Plan. 100% e uantified limit i t at net de t e n higher than 150% of total revenue. 80% 60%
40%
20% External debt / total revenue (%) External debt / total revenue
0% 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Quantified limit n de t Proposed external net debt Proposed external net debt (at or within limit) (exceeds limit)
NET INTEREST TO RATES REVENUE The following graph compares Council’s 30% lanned inte e t n de t it a uantified 25% limit on borrowing contained in the Financial Strategy included in this Long 20% e m lan e uantified limit i t at planned net interest should not exceed 15%
25% of total rates revenue. 10%
5% Net Interest / rates revenue (%) / rates revenue Net Interest
0% 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Quantified limit Proposed interest to revenue Proposed interest to revenue (at or within limit) (exceeds limit)
EXTERNAL NET DEBT PER CAPITA The following graph compares Council’s $2,500 lanned de t it a uantified limit n borrowing contained in the Financial $2,000 Strategy included in this Long Term Plan. e uantified limit i t at e te nal net $1,500 debt per capita be less than $2,150. $1,000 Debt per capita ($) $500
0% 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Quantified limit Proposed external net debt per Proposed external net debt per capita (at or within limit) capita (exceeds limit)
40 Balanced budget benchmark 120% 112% The following graph displays Council’s 106% 108% 108% 110% 103% 101% 100% 101% 103% lanned e enue e ludin de el ment 100% 93% nt i uti n finan ial nt i uti n vested assets, gains on derivative 80% finan ial in t ument and e aluati n e t lant and e ui ment a a 60% proportion of planned operating expenses 40% e ludin l e n de i ati e finan ial instruments and revaluations of property, 20%
lant and e ui ment (%) opearting expenditure Revenue/ 0% 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Council meets the balanced budget Quantified limit Benchmark met Benchmark not met benchmark if its planned revenue equals or is greater than its planned operating expenses. Essential services benchmark
160% The following graph displays Council’s 143% 134% planned capital expenditure on network 140% 129% 123% 117% services as a proportion of expected 120% 110% 112% 112% 114% depreciation on those same network 99% 100% 92% services. 80% Council meets the essential services 60% benchmark if its planned capital expenditure on network services equals 40% or is greater than expected depreciation 20% on network services. Capital expenditure/depreciation(%) 0% 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Quantified limit Benchmark met Benchmark not met
Debt servicing benchmark The following graph displays Council’s 16.0% planned borrowing costs as a proportion 14.0%
lanned e enue e ludin 12.0% de el ment nt i uti n finan ial 10.0% contributions, vested assets, gains on 7.5% de i ati e finan ial in t ument and 8.0% 6.6% 6.9% 6.8% 6.7% 6.3% 6.0% 5.6% 5.2% revaluations of property, plant, or 6.0% 4.9% 4.5% e ui ment e au e tati ti e 4.0% Zealand projects Council’s population
Borrowing cost/revenue (%) cost/revenue Borrowing 2.0% will grow more slowly than the national 0% population is projected to grow, it meets 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 the debt servicing benchmark if its Quantified limit Benchmark met Benchmark not met planned borrowing costs equal or are less than 15% of its planned revenue.
41 INFRASTRUCTURE STRATEGY SUMMARY
General Water seven pump stations, and 20 pumps with related electrical and control equipment. Council operates its services in perpetuity The District’s water supply system The depreciated replacement cost of and therefore needs to strategically processes 9,500 million litres of raw the scheme’s assets is $22.2 million. Of consider the optimal way to manage, water annually from nine sources at t e eme um fi e a e een maintain and renew assets to achieve seven treatment plants. Potable water replaced in the last 10 years and the and maintain service levels. is distributed to approximately 25,000 remainder are more than 40 years old. metered customers via 730 kilometres of Asset growth occurs for Council as a While the pumps have relatively low run trunk mains, distribution mains and rider result of decisions to build asset related u a t e nl e ate in t m mains. The depreciated replacement cost a ital e t u a a id e a many of the older pumps and supporting of the water network is $196.3 million. t eatment lant t u a e tin electrical infrastructure will potentially These assets are generally in serviceable assets paid for by developers but vested need to be renewed or replaced in condition and are operating within their to Council to maintain and renew across the next 30 years. Periodic top-up of design capacity and expected life. Overall the useful life of the asset. With new t an ea t a e u entl asset condition is categorised as good, assets comes a need for more funding to underway and this work should see levels and on average the water assets are maintain and operate them, or to simply returned to an ‘as per design’ condition. halfway through their expected lives stretch each dollar as far as possible based on current revaluations. Roading and Footpaths to achieve what can be achieved within available funding, and defer any work that Stormwater Council’s transport infrastructure network can be delayed. This results in a backlog comprises 1,078km of sealed pavement, of renewals that eventually needs to be There are 11 major Whangarei City 703km of unsealed pavement, 1,775km addressed in order to maintain service stormwater catchments and a further ealed u a e in ludin id e levels and prevent asset failure. The 17 smaller settlements with stormwater u a e and id e and ma following is a summary of Council’s networks comprising a combination culverts. These assets have a depreciated assets and key points for asset condition. i ed tem i e man le replacement cost of $770.2 million and Refer to Council’s Asset Management um en annel d ain t eatment represent Council’s largest activity value. lan a m lete e ie devices and rivers/streams. The assets This network is located throughout the ea a ti it and e enditu e a aila le have a depreciated replacement cost District and includes all Council-formed n e ue t of $184.4 million. The main stormwater roads, associated assets, and parking network is predominantly concrete and footpaths on State Highways. The Wastewater pipes and is relatively young in asset network excludes private roads and paper terms, therefore routine operations and Council provides wastewater services roads. maintenance have been held static within for the collection, treatment and disposal the current budgets. However a new At present there is some deterioration from approximately 26,000 connections. monitoring programme is underway to in pavement condition due in part to This asset base has a depreciated more accurately assess the condition of deferred renewal works, and although replacement cost of $220.7 million. The these assets. current patching and resealing reticulation network includes 582km maintenance addresses the surface of mains, 141 pump stations and nine Flood Protection and Control issues it is acknowledged that it does not treatment plants. The wastewater system Works build strength back into the pavements. servicing Whangarei City is the largest, There is a backlog in both pavement with 84% of all serviced properties A flood management protection scheme renewals and surfacing. The condition connected to this network. The main a fi t im lemented in t e am of some footpaths, streetlights and gravity network in Whangarei has been area near Hikurangi in the early 1900s. A t a fi i nal a e l l dete i atin ll constructed in various stages since 1910 more substantial system of flood control bridges and culverts are in relatively good and original pipe materials still remain was constructed in the early 1970s for condition. in some locations. Assets are at various the purpose of controlling flood waters states of condition from very poor to that regularly flood farmland within the Solid Waste good. Pump stations and rising mains are Hikurangi Valley. This scheme has greatly Council, in conjunction with its private of variable condition and this is greatly improved the agricultural potential of sector partners, provides solid waste dependent on age with some stations land within the swamp area and offered e u e lle ti n and di al e i e upwards of 60 years old. n ide a le e n mi enefit t t e throughout the District, including refuse region. and recycling collection, litter control, The scheme comprises 68km of stop transfer stations, and the Puwera banks and spillways, 17 spillway sensors,
42 andfill un il ned a et a e but this work has not been allocated in Overall the asset conditions are average a depreciated replacement cost of the 2015-25 LTP period. to good. Sport and recreation facilities $1.2 million. Major assets such as the a e enefitin m e ent u ade and u e a landfill and e t a e elati el Parks and Recreation new technologies in turf management. ne it a e an in m fi e t Council currently administers 20,720 Playgrounds are in good condition, years and capacity in excess of 40 years. hectares of land as open space. however many of these are of a similar The gatehouse structures to satellite This includes forest remnants and age and condition and careful planning of collection points were temporary in 2005. regenerating bush, wetlands and renewals is needed. Trails and linkages The intent was to install permanent mangrove estuaries, coastal areas and are in good condition, although timber structures over time but this has not esplanade reserves, city parks and street structures are monitored for deterioration been done and these are now showing gardens, cemeteries, former quarries as these are reaching the end of their signs of wear and many have a tired and landfill a ea e e ed ate useful lives. Coastal structures are in visual appearance. The access to Uretiti supply, waste treatment and other public good condition as a programme has been transfer station, the largest and busiest utilitie t field la und and in place for some time to maintain and rural transfer station, is a serviceable pine forests. Excluding the land the Parks repair them. A large majority of assets in metal road and ideally would be sealed and Recreation assets have a depreciated poor condition are low value items such replacement cost of $26.2 million. as furniture, fences, lights and pavers.
INTRODUCTION AND PURPOSE
Whangarei District Council is a territorial to put pressure on infrastructure in the options for managing each issue, the local authority with a growing population medium and long term. Transportation most likely course of action and the cost of 84,400 and stewardship of core and roading network, water, wastewater implications of the most likely scenarios. infrastructure assets with a replacement and stormwater services and parks Note that this Strategy does not contain alue illi n e i t i t and recreational facilities need to carry detailed information. Detailed information has a network of approximately 1,078km enough capacity to provide for predicted can be found in the relevant AMP. of sealed and 703km of unsealed roads, growth. This Strategy forms part of the LTP a water distribution network spanning Because development and settlement and is supported by detailed AMPs and 730km, a sewerage reticulation network patterns have effects on both the timing the 2015 Financial Strategy. It focuses of 582km, a stormwater network of and costing of core infrastructure, this n t e i nifi ant i ue lt u 482km, and a flood protection scheme Strategy and the supporting AMPs some areas of the community may be of 68km of stop banks and seven pump have been developed with regard to concerned about important issues from stations. Reserves and sports parks total the Sustainable Futures 30/50 Growth their perspective, these issues may not 738 and 20,720ha of land as open space. Strategy which was adopted by Council e deemed i nifi ant t t e mmunit Solid waste facilities comprise eight rural in 2010. a a le and ma n t e e ifi all transfer stations and 563 litter bins. referred to in this document. The intention of this Strategy is to Indications are that growth will continue identi at a i le el e e i nifi ant This Infrastructure Strategy will be in the District at an annual rate of infrastructure issues that Council is reviewed on a triennial basis as part of approximately 1%. While this growth is likely to encounter over the next 30 the LTP process. desirable and encouraged, it will continue years may occur, to determine the
INFRASTRUCTURE INCLUDED IN THIS STRATEGY
i t ate n ide t e fi e ma at greater risk from natural disasters asset groups of Council’s network and would require Council to provide infrastructure in compliance with section immediate replacement and/or repair in a t e al e nment the event of a natural disaster as part of a t e e a e ate u l recovery process. sewerage and the treatment and disposal Despite no requirement by the LGA to do of sewage, stormwater drainage, flood so, Council has elected to consider Parks protection and control works, and the and Recreation assets and Solid Waste provision of roads and footpaths. a et al n it t e fi e mandat e e fi e e a et u e ui ed activities with the rationale that these two t e nt i ute i nifi antl t a d a ti itie n ume i nifi ant e u e the daily public health and safety of the and contribute strongly to community District’s residents. They depend on outcomes. effective asset management planning for their operation, including renewal, replacement and delivery of expected levels of service. These assets are also
43 CONSIDERATIONS
The following considerations have been • maintenance or improvement of public and constructing additional asset u ed t identi i nifi ant in a t u tu e health and environmental outcomes, resilience, relocation strategies, and issues that are likely to arise over the next and any likely mitigation of adverse insurance 30 years: effects on those outcomes • replacement of assets as part of an • determining when increases or • providing for resilience of overall replacement strategy. decreases in levels of service for infrastructure assets by identifying any activity might be required or and managing risk relating to appropriate natural hazards, designing for
SIGNIFICANCE AND ENGAGEMENT POLICY
un il i nifi an e and n a ement CRITERIA/THRESHOLDS MEASURE li a e ad ted in em e 2014, guides the determination of i nifi an e it e a d t i ue proposals, decisions and any other Impact on Council’s direction Major and long-term matter assessed by Council in terms of its likely impact on, and the likely Change in Council’s current level of service Major and long-term consequences for the District and Level of public impact and/or interest Major and District-wide, or Major for an its community. This includes Council identified mmunit inte e t decisions relating to infrastructure assets. m a t n un il a a ilit n n t Major and long-term
Where this Infrastructure Strategy et finan ial t e enue im lementati n Net Capital Expenditure >10% of Total Rates in menti n i nifi an e e e en e i e ludin an finan ial im a t al ead in luded year commenced, and/or being made to the provisions of the 2014 in Long Term and Annual Plans Net operating Expenditure >2.5% of Total Rates in year commenced i nifi an e and n a ement li n umma a de i i n i i nifi ant if two or more of the criteria/threshold measures are triggered. LEVELS OF SERVICE
The LTP and Infrastructure Strategy are A – Levels of Service, starting on page decision. There have inevitably been based on commitments made in previous il t all in a a it e ui ed tensions or conflicts between the desired years, feedback from the community for anticipated growth. This Strategy is levels of service and the level which during other Long Term and Annual expected to continue for the period of the an e ided it in t e finan ial Plan consultations, and data gathered 30-year Infrastructure Strategy. parameters outlined in the Financial during research into the historical, Strategy. e ite t e i nifi ant le el ud eted existing and future needs and wants of expenditure over the next 10 years, The resulting AMPs have generally been the community. Council has prepared its the upkeep of assets is still not at the prepared with a capital expenditure LTP and Infrastructure Strategy taking timum le el a identified in t e programme that is intended to maintain these factors into account. By the end for the initial 10 years. The effect of this current levels of service. This ‘hold and t e fi t ea t e n a t u tu e could potentially lead to deterioration maintain’ strategy will be managed by t ate i e t e e i d e ed in assets, meaning targeted levels of ee in e fi ien ie e e undin i t e it aim t e meetin it service are not attained and/or require applied across operations, maintenance, community’s expectations regarding additional costs in the future which are renewal and capital upgrades. Council levels of service with well maintained not included within the 10-year life of the will also review operational practices and assets, providing a balance of core and LTP. This could potentially result in future an e fi ien t at an e ained m community initiatives, that continue to ratepayers paying costs that should altering intervention levels or response enhance the District. arguably be met by today’s ratepayers. times without adversely impacting Council has considered additional The alternative would be to increase rates on service level delivery will also be demand based on predicted growth in and other revenue even further, or to considered. the development of AMPs, after giving increase debt over the next 10 years. There are no instances where current regard to the Sustainable Futures 30/50 The appropriate levels of service level of service targets have reduced. Growth Strategy. Capital expenditure in have been carefully considered by the LTP incorporates its ability to meet Council in each activity area taking ta eted le el e i e e e endi into consideration the effects of each
44 FINANCIAL STRATEGY
un il inan ial t ate i a ed n ulfillin ne t e e u e l al e nment i i t “meet the current and future needs of communities for good-quality local infrastructure, local public services and performance of regulatory functions in a way that is most cost-effective for households and businesses”. e inan ial t ate u e n t e e i d i e ea ne t i aim t • a ie e a alan ed ud et in e e ea e e e enue e eed e enditu e in ludin de e iati n • int du e a te an e in m t ate in t e fi t ea it in ea e a e in lati n t e ea te • limit e all ate e enue e ludin ate t a ma imum t tal e enue • have net debt no higher than 150% of total revenue • have net debt peaking at $171 million and then reducing to $146 million by 2025 • maintainin inte e t t at le t an ate e enue a at une • a e net de t e a ita le el el at une • ide u fi ient a u lu e t und t e lanned a ital e enditu e amme it ut elian e n a et ale a a t m t e a a ale al ead in e This allows for: • a 10-year capital works programme of $574 million • a ital e enditu e u ed n e net in a t u tu e adin ate a te t m ate and l d te ti n • operational revenues of $1.577 billion • operational spending of $1.440 billion.
FUNDING STRATEGY
un il a identified t at it need t all ate m e m ne t maintainin and ene in it a et ut ant t maintain u ent le el e i e a all un il a ti itie i mean un il a t in ea e it e enue and find me t a in t at don’t compromise service delivery in other areas. Council is constantly looking at cost saving opportunities and has addressed a ea ine fi ien in it e ati n and e e it i nifi ant a in made in ea lie ea al ead in luded in it ud et Council will continue this process throughout the 10 years of the LTP. In putting together the LTP, Council has reached the conclusion that rates increases are necessary because its current position is not sustainable if it is to maintain current levels of service and look after its assets properly.
45 30-YEAR FINANCIAL OVERVIEW
Council’s average annual investment Infrastructure capital investment for 2015-2045 by asset driver in capital expenditure for infrastructure $120 assets over the next 30 years is expected million to be $80.9 million. The graph to the right outlines this planned expenditure by asset driver. Capital investment by asset can be found in Council’s Funding m a t tatement ee un il ti itie $60 million e ti n ta tin n a e and a aila le n e ue t
$0 2017-18 2020-21 2023-24 2026-27 2029-30 2032-33 2035-36 2038-39 2041-42 2044-45 Growth Levels of Service Renewal
Council’s average annual operating Infrastructure operational expenditure 2015-2045 expenditure for infrastructure assets $160 over the next 30 years is expected to be million $113.9 million. The graph to the right outlines this expenditure by asset group.
$80 million
$0 2017-18 2020-21 2023-24 2026-27 2029-2030 2032-33 2035-36 2038-39 2041-42 2044-45 Water Wastewater Stormwater Flood Protection Transportation Solid Waste Parks & Recreation
Most likely scenario Capital and operational infrastructure expenditure over 30 years
The following graph outlines Council’s $400 most likely capital and operating million expenditure combined for 30 years. Council’s infrastructure operations are complex and diverse, providing a wide $200 range of services. The cost of providing million these services is supported through a variety of appropriate funding sources. These are outlined in Council’s Financial t ate a e and detailed in $0 t e e enue and inan in li a e 2017-18 2020-21 2023-24 2026-27 2029-2030 2032-33 2035-36 2038-39 2041-42 2044-45 Total Capital Expenditure Total Operational Expemditure
46 SIGNIFICANT CAPITAL EXPENDITURE DECISIONS AND CONSIDERATIONS
Timelines, drivers and funding options There are three primary drivers influencing Council’s decisions to plan for future projects. These are: • the need to increase expenditure to replace ageing reticulation assets • the obligation to increase performance of assets due to consent expiration and other level of service drivers • the requirement to expand the capacity of existing infrastructure to meet the needs of a growing community. Council’s planned infrastructure investments are considered to be relatively conservative over the next 30 years, with no i nifi ant a ital e enditu e de i i n u entl made t i time e i d un il a n t identified an in a t u tu e e t uali in a i nifi ant u in t e t e ld mea u e in t e i nifi an e and n a ement li a e e e un il eel it i udent t in lude t e ne au alle ate eatment lant in t i la ifi ati n and e ti n t e t ate i e t i deemed t e i im tan e t t e mmunit and although expenditure is split into several smaller elements, the total of these come close to qualifying as a project meeting the net e enditu e e ate t e ld a e t e i nifi an e and n a ement li e an a ei it a te ate eatment lant ene al d e n t uali a i nifi ant ut t e e i a mall i t at resource consent conditions and public interest may change by year 2021 when the current consent expires. This has the tential t e ult in i nifi ant e enditu e at t at time n e uentl a le el un e taint u und t e utu e n ent nditi n and t ei tential finan ial im a t The following table indicates the one water project Council currently considers prudent to include in this section of the Strategy.
YEAR SIGNIFICANT/MAJOR PROJECTS
1 2015-16 Whau Valley Water Treatment Plant
2 2016-17
3 2017-18
4 2018-19
5 2019-20
6 2020-21
7 2021-22
8 2022-23
9 2023-24
10 2024-25
11-30 2025-46 un il u entl a n in a t u tu e e t deemed ma i nifi ant ammed ea 2045
dina il un il uld a t t e ima d i e lit it i nifi ant e t in t i e ti n e e a t e au alle ate eatment lant i t e nl e t n ide ed l e t i nifi ant and it ima d i e i a et ene al un il n ide a a t u e lu u in t i t ate uld in a t u tu e e t i nifi an e e n ide ed in utu e t ate ie due t unforeseen factors at that time, they will be shown in a graph split by growth, renewal and level of service. etail t a iated it t e la e ut n t ma i nifi ant e t an e und in un il undin m a t tatement ee un il ti itie e ti n ta tin n a e e undin ti n elatin t i nifi ant ma e t e enditu e n ide ed in t i e ti n a e utlined in t e ll in ta le
PROJECT YEARS OF DEVELOPMENT LOW COST OPTION MOST LIKELY SCENARIO HIGH COST OPTION
Whau Valley Water 2015-18 $18.2 million $18.7 million $19.2 million Treatment Plant
47 Assumptions, principle options and decisions The principle options considered, and the assumptions relating to these options, are summarised in this section. The associated t a e utlined in t e mat i e enditu e n ide ati n ta le el
WHAU VALLEY WATER TREATMENT PLANT
THE OPTIONS THE PRINCIPAL ALTERNATIVES
Do nothing The Whau Valley Water Treatment Plant was e t e m e e en i e t e ate constructed in 1953 and is in need of a major treatment plants. This will cause restrictions in upgrade due to the age and condition of a the summer months when the capacity of those number of its critical component assets. plants is limited.
Upgrade the existing plant Structural investigations of the existing plant Build a new plant on a new site or demolish determined that extensive works would be building and rebuild on the same site. Acquire required to meet the Earthquake Strengthening more land adjacent to the current plant to cater requirements under the Building Act. Even for the constrained site issues. then at best it can only be brought up to 67% compliance. Chlorine gas separation proves t e a allen e and in u fi ient m t manoeuvre large delivery vehicles. The capacity of this plant cannot be extended any further on the current site.
Build a new plant on a new site Other issues at the current plant are chemical Investigate alternative new sites to optimise storage and delivery in a residential zone. The construction costs, overcome issues at building of a new plant on a new site is deemed current site and provide for long term capacity a more sustainable long term option. increases.
THE MOST LIKELY SCENARIO
That Council will construct a new Whau Valley Water Treatment Plant on a new site and then demolish the current plant.
CRITICAL ASSETS
Council is a member of the Northland Lifelines Group whose role is to help lifeline utilities to co-ordinate recovery and restore their services as quickly as possible following a disaster. These services generally include: • iti al mmunit ite i a e im tant t u li ealt and a et ital am ulan e de t and eme en e n e li e fi e eme en mana ement • critical lifelines sites – including water services, power, gas, telecommunications and transportation networks. un il a et ite identified a iti al ite e e a e
SECTOR SITE STREET ADDRESS
Transport Road to Whangarei Heads N/A
Road to Marsden Point N/A
Bank Street N/A
Kamo Road N/A
Tarewa Road N/A
Port Road N/A
Road to Whangarei Airport – Riverside Drive/ N/A Onerahi/Church Sttreet
Water Supply Ruakaka Water Treatment Plant Port Marsden Highway
Tauroa Street Pump Station Tauroa Street
Whau Valley Water Treatment Plant Corner of Whau Valley Road and Fairway Drive
Kamo Pump Station Corner Fairway Drive/ Whau Valley Road
Ruddells Water Treatment Plant Cemetery Road
Poroti Water Treatment Plant Mangakahia Road
48 SECTOR SITE STREET ADDRESS
Water Supply continued Ahuroa Water Treatment Plant End of Ahuroa Road
Whau Valley Dam Upper Whau Valley Road
Wilsons Dam Prescott Road
Flygers Road Pump Station Flygers Road
Maunu Springs Newton Road
Wastewater Whangarei Wastewater Treatment Plant 79 Kioreroa Road
Onerahi Pump Station Corner Beach Road and Whangarei Heads Road
Okara Park Pump Station Port Road entrance, Okara Park
Robert Street Pump Station Carruth Street, NRC Depot
Hatea Road Pump Station Far end Whareora bridge
Waverly Street Pump Station Onerahi
Otaika Pump Station Kioreroa Road – Outside Wastewater Treatment Plant
Kioreroa Road Pump Station Kioreroa Road railway crossing
Pressure Main Robert Street Pump Station to Whangarei Wastewater Treatment Plant
Pressure Main Okara Park Pump Station to Whangarei Wastewater Treatment Plant
The supply of potable water is a critical service. The two major water supply areas, Whangarei and Bream Bay, have considerable resilience as both are serviced from multiple sources and treatment plants in various locations. In the event of a major failure at a treatment plant or contamination of a source, alternative means of supply are available. The treatment plants and critical pump stations have emergency power generators. Over 95% of customers are fed from reservoirs with at least two days of storage. The two smaller water supply areas, Mangapai and Maungakaramea, can be easily supplied by tankers from town if required.
KEY INFRASTRUCTURE ISSUES
WATER
ISSUE AND IMPLICATIONS MOST LIKELY SCENARIO
Water treatment plants, in particular the Whau Valley plant, require Council has elected to replace the city’s main treatment plant at Whau continuous upgrading and ongoing expenditure in an effort to ensure alle and a identified alte nati e ite it in t e i init t e u ent continuous production and maintain water quality standards. dam water source. A new water source from the Wairua River has also been approved and new treatment plant upgrades at Poroti are scheduled to commence to support the current and new system in time of water shortage.
Many critical pumps and drives are past their expected lives and are now Where possible this is done as part of a plant upgrade or planned minor due for either replacement or refurbishment. project. Electrical and control assets are generally replaced on failure. Further condition assessments are planned as part of business as usual.
The Ruddells raw water line is partially blocked and unable to operate Remedial repairs will be undertaken on an ‘as need be’ basis until at full capacity, thus limiting raw water delivery. In addition, ground allocated renewal funding in years 2017-18, is applied to replace this m ement au e e uent lea a e i mu t e e tified asset.
A large number of alkathene and the remaining galvanised steel rider A condition assessment and a renewal strategy are recommended for mains are operating past their predicted life and are in poor condition, these critical assets. It is recognised that repairs for these items can with leakage and breakage rates that directly contribute to higher than e di fi ult and tl amme l e ate e u e a een de i a le una unted ate fi u e and maintenan e t u implemented in some areas while still maintaining the required level of t e di t i uti n main a e a e t ement and a e nea in t e end service. This serves to lessen strain on ageing pipes and reduce leakage of their predicted life. There is evidence of leakage and failures starting to until replacement can be implemented. occur on AC and PVC mains. Many of the cast iron trunk mains are now 100 years old.
49 WATER
ISSUE AND IMPLICATIONS MOST LIKELY SCENARIO
The World Health Organisation states that destruction of water born There is uncertainty around if and when this is likely to occur. Council has microbial pathogens in drinking water through the use of disinfectants included some funding to comply with potential changes to drinking water is essential for the protection of public health. However, they also standards. It is acknowledged that increased levels of water purity may acknowledge that there is by-product toxicity introduced through the require additional investment by Council which may be shared at some disinfection process. It is likely that more stringent forms of disinfection level with the community through targeted rates. However, at this time the and monitoring of introduced toxicity will be a future requirement of extent of any potential investment for this purpose remains unknown. drinking water treatment, incurring increased expenditure for Council.
Water fluoridation has been signaled in many areas of the country and has Council has no plans to fluoridate water at this time. Should the been a topic of debate. Should this become a Government requirement, community require it, and depending on the level of associated capital increased funding will be needed for its implementation. Opposition may investment, the community may be required to share in this cost. It is continue, and there is a risk this will cause delayed implementation and uncertain if government subsidisation will be available for this action. consequential costs. Regardless, this would be sought to offset costs.
WASTEWATER
ISSUE AND IMPLICATIONS MOST LIKELY SCENARIO
Based on current levels of forecast growth and Council’s 10-year Growth will provide some level of funding through development in a t u tu e in eam a t e ai u and ua a a a ea nt i uti n ut un il n ide t at t i ma e in u fi ient t und and Whangarei Heads, will have limited capacity by year 11 of the required growth demand upgrades. To expand these assets, Council Infrastructure Strategy. Investment in growth will be needed in Bream Bay will need to fund this work through debt, community alliance funding t en u e a in mmunit i e i ed ailu e t in e t u fi ientl or targeted rates, or a combination of all or any of these mechanisms. will impact on development. Limiting connections to the wastewater reticulation system is another option being considered.
Currently, no new wastewater systems are proposed in the 30-year To build additional assets in these areas Council will fund this work lan aun ata e e aun a a amea ata u i i nifi ant through debt, targeted rates, deferring other projects – or a combination of development occurs in these communities, the provision of new assets all or any of these mechanisms. will need to be reviewed.
e e i tential i nifi ant le el e i e in e tment in t e Depending on the outcome of this process, a large capital investment may Whangarei City treatment plant when the City’s consent is renewed in be needed to improve treatment levels. It is expected that this will come year 2021. This may affect treated effluent discharge standards, requiring from borrowing and ultimately targeted rates. Council to upgrade the treatment plant and possibly acquire more land.
STORMWATER
ISSUE AND IMPLICATIONS MOST LIKELY SCENARIO
Extreme storm events have the potential to require greater capital Council does not currently hold reserve funds to cover increased expenditure depending on the extent of damage. e enditu e a ital and e atin a i in m t m dama e and e t eme t m e ent a e t e tential t i nifi antl im a t n t e finan e t e ea in i t e e ent u and t e ll in ea depending on the extent of damage. Lack of funding provision for emergency works may result in reduced renewals as renewal funding gets diverted to fund flood damage repairs. For now this approach will continue, with Council reviewing how it manages flood damage in the future.
ROADING AND FOOTPATHS
ISSUE AND IMPLICATIONS MOST LIKELY SCENARIO
e t t a fi au e me dama e t a ement and n ume a und e e t t a fi and a ement e la ement le ill e add e ed 20% of our pavement maintenance budget to maintain approximately 5% the increase in pavement renewals funding. This is expected to improve of our network. In struggling to maintain pavement renewals, deteriorating the condition of our pavements. However, there may be a lag in the effect pavement condition will be reflected in increased pavement maintenance of this work which may see levels of service drop in the short term. t e e e eal e ai a e in ea ed m an a e a e e ea t milli n e ea in i ea i ituati n uld improve over the next 10 years with re-investment in pavement renewals.
Flooding has caused damage in past years and has been funded by a undin i i n eme en milli n e ea n slowing down renewal programmes or deferring maintenance projects. a e a e ma e ult in edu ed ene al a ene al undin et di e ted Lack of funding for emergency works is a risk to the renewals programme to fund flood damage repairs. For now this approach will continue, with as funding may need to be diverted to fund flood damage repairs. This Council reviewing how it manages flood damage in the future. approach will continue, with Council reviewing how it manages flood damage in the future
There is a risk that NZTA may change its subsidy funding policy in the Due to the high level of ambiguity in predicting what other funding sources future which could impact on Council’s ability to adhere to its current may or may not do in the future, Council considers it appropriate to review roading strategy. If subsidised funding becomes reduced or unavailable, alternative options if and when this occurs. Council would have to implement a reduced programme of works.
50 FLOOD PROTECTION AND CONTROL WORKS
ISSUE AND IMPLICATIONS MOST LIKELY SCENARIO
With respect to debt, the flood control scheme will be in credit by the Council considers it prudent to keep rates at a higher level once back in end t e ea lan n t e a i t at um e la ement a e credit and fund capital works through a depreciation fund rather than deferred beyond year 10 of the LTP. If this does not occur, Council will need borrowing. These rates will need to be considered in light of affordability to allocate additional funding to the scheme or risk increased flooding in issues in farming on the scheme. the area, which will greatly affect the local agricultural economy.
The level of service the current scheme provides will be affected by Funding sources for the Hikurangi Swamp flood protection and control changing weather patterns as the scheme is designed to protect pasture works are predominantly from targeted rates. The Hikurangi Swamp in elati el mall t m ate e ent in ea etu n la e Major Scheme Rating District contributes approximately 89% percent cyclonic events are more regular, the investment in the scheme becomes of the total targeted rates, and the Hikurangi Swamp Drainage Rating less economic. District contributes the remaining 11% percent. Some minor additional revenue is provided from land rentals. Council will continue to monitor the finan ial en i nmental and e n mi im a t in ea ed l d e ent and through a consultative process will evaluate how best to provide additional asset investment at such times as it is required.
SOLID WASTE
ISSUE AND IMPLICATIONS MOST LIKELY SCENARIO
Solid waste assets require a renewal and maintenance programme. If Council considers that its solid waste assets are generally in good to assets are not maintained or renewed their condition will deteriorate e ellent nditi n it a la e u lu a a it ea t e e e requiring greater overall spending and a decrease in performance related has chosen not to allocate any capital expenditure funding to its solid to public satisfaction. There is a shortfall of funding for solid waste major a te a et it in t e fi t ea t e t ate uld in e tment maintenance and renewal programmes in years one through 10, which be required for major maintenance or renewal, Council will attempt to fund may negatively influence levels of service and growth related projects. this through a combination of user charges and level of service funding.
PARKS AND RECREATION
ISSUE AND IMPLICATIONS MOST LIKELY SCENARIO
Trends and user expectations influence the demand for assets and Council will address these issues in consultation with the community as service levels are budgeted for at the time these expectations are they arise, with funding options considered at that time and within future understood and planned for. Sports turf quality is an area which demands LTP programmes. increasingly better quality, and some soils in Whangarei do not enable us to provide this level of service. The key issues are for growth communities and Council’s ability to provide adequate land for recreation and neighbourhood parks.
ASSUMPTIONS AND CAPITAL EXPENDITURE DRIVERS
When should infrastructure be replaced? Asset renewal or replacement expenditure is major work that does not increase the asset’s design capacity but restores, rehabilitates, replaces or renews it to its original capacity. This includes reconstruction or rehabilitation works involving minor improvements and renewal and/or renovation of existing assets, restoring them to a new or fresh condition consistent with the original asset. It is generally accepted that it costs more to maintain an asset as it reaches the end of its economic life. In some cases, assets may be replaced prior to reaching the end of their economic lives due to capacity or performance issues. e e e ted u e ul li e un il a et a e detailed in un il tatement untin li ie e e endi n a e In making these projections, Council has assumed that the current state of engineering technology remains unchanged. In reality, e e utu e te n l i al ad an ement ma ena le un il t l e t e t e la in a et t i nifi antl e tend useful lives. Going forward, best practice asset management will incorporate these opportunities to ensure assets are managed a iatel and e fi ientl
51 Renewals All assets need to be replaced at the end of their useful lives, and every year we select part of our total asset base to renew, based on its condition. This takes up most of our capital expenditure. However, we also keep track of the ‘wear and tear’ of all assets, by allowing for annual depreciation of our entire asset base. Ideally, the amount we spend renewing some of our assets should roughly match the annual depreciation of all of our assets. This makes sure that we have adequate funding to renew all assets over the long term. However, as the graph below shows there is a growing gap between the two for the next 10 years or so, with the average ratio of renewal expenditure to depreciation around 87% per year. The cumulative renewal spend catches up to depreciation again in later years. While we could close this gap by increasing debt or raising rates, we don’t believe this is necessary as our planned approach is prudent because it won’t compromise service levels in the years where renewals won’t match depreciation, and nor is it li el t lead t a i nifi ant a l a et e la ement This approach does rely on the availability of funding for the renewal program in later years, but as long as future Councils keep rates in line with inflation after the next 10 years, our growing population should provide adequate income growth to fund the renewal programme required. If that doesn’t happen there could be reductions in service levels in later years, but there will be plenty of time to reassess the situation before then.
Cumulative forecast asset renewal expenditure to depreciation 2015-2045
$2 million
$1 million
$0 2017-18 2020-21 2023-24 2026-27 2029-30 2032-33 2035-36 2038-39 2041-42 2044-45 Depreciation Renewals
WATER RENEWALS Water assets are generally in a good serviceable condition and are operating within their design capacity and expected life. Renewals occur as either planned replacement or through maintenance, or repair. Council considers that the expected water asset lives from current revaluation are correct, that an asset is in service from its installation date and that its expected life and condition deteriorates linearly from that time. It is assumed that ground conditions have only a minor effect on the life of reticulated watermain assets. Levels of service are being maintained with only 7% of assets past their expected lives or in backlog, which is considered normal. Some water-related buildings will require periodic maintenance and large civil structures will need rehabilitation to remain in service until the end of their expected lives. Pumps and equipment assets that are on standby or in stores may exceed their expected lives. The management strategy for non-critical reticulation assets renewal is planned for a few years after expected end of life of the asset or when failures start to occur. Management of critical equipment and reticulation assets is addressed through a combination of preventative maintenance, condition assessment and planned renewal programmes. Non-critical equipment assets are managed by a ‘run to failure’ strategy at which time these assets are replaced as necessary. The quality of the water supplied is integral in maintaining public health. The water supply complies with the New Zealand in in ate tanda d and u li ealt i ana ement lan ate a et lan a e du ed un il ate Services and approved by Ministry of Health Drinking Water assessors. The standards and plans include procedures for dealing with non-compliant water and any public health issues. Resource consent conditions apply to all water takes and discharges from treatment plants. Through monitoring and compliance with these consents adverse effects on the environment are minimised and dams and water catchments are enhanced and protected. Water Demand Management Plans and Water Supply Bylaws are in place to minimise wastage of water and protect Council’s supplies.
52 Water renewal expenditure for years 2015-2045
$20 million
$10 million
$0 2017-18 2020-21 2023-24 2026-27 2029-30 2032-33 2035-36 2038-39 2041-42 2044-45 Depreciation Renewals Depreciation Renewals
WASTEWATER RENEWALS Old buried pipe networks contribute to the majority of poor condition wastewater assets. These include the Hikurangi sewer network, old asbestos cement sewer mains, and some PVC pressure lines in Waipu. It is predicted that these will require replacement within 10 years. The District’s wastewater mechanical assets are generally in a reasonable condition. The strategy for maintaining the District’s wastewater assets is to defer capital works projects until as late as possible by the close monitoring of assets and application of a diligent preventative maintenance and renewals programme. u entl t e a te ate a ti it de t le el i de ea in and ta eted ate a e li el t e u fi ient at edi ted in ea e t meet expenditure for renewals, level of service maintenance and operations in the 30-year plan. Public health protection is currently met through maintaining a sewage overflow mitigation programme. Managing ageing assets and meeting higher customer expectations will require more funding than currently budgeted to ensure that wastewater services ade uatel te t u li ealt and miti ate en i nmental a m n u fi ient e ati nal e enditu e and la undin a et ene al a e identified a t e i e t i t ide ati a t u li ealt and en i nmental ut me
Wastewater renewal expenditure for years 2015-2045
$20 million
$10 million
$0 2017-18 2020-21 2023-24 2026-27 2029-30 2032-33 2035-36 2038-39 2041-42 2044-45 Depreciation Renewals Depreciation Renewals
STORMWATER RENEWALS There are 11 major Whangarei City stormwater catchments and a further 17 smaller settlements with stormwater networks m i in a m inati n i ed tem i e man le um en annel d ain t eatment de i e and i e streams. Unlike wastewater and water assets, stormwater assets are employed intermittently, when it rains. Thus deterioration is more related to environmental causes over a long period of time than through constant use. Stormwater asset lives therefore tend to be long in comparison with other asset groups and therefore very little renewal driven by structural condition deterioration has been observed. There has been little service line or storm channel renewals forecast for the next 30 years and main line renewals only planned in years 2015-45. ene al file t m ate a et a e al ulated n an a e a i it e la ement undin ene all all ated at end asset life. This, however, is determined by the asset capacity to function rather than predictive modelling. It is recognised that this is a simplistic approach and Council is in the process of developing a predictive model for reticulated networks that takes into account factors such as condition, capacity and maintenance work orders to better allocate renewal funding against the piped assets.
53 Design approaches are employed to reduce peak flow storm runoff and provide stormwater quality treatment. This includes roadside swales, attenuation tanks and planted ponding areas to store and attenuate the peak flow of a storm. These techniques help mitigate the environmental impacts of stormwater discharges. The District Plan and WDC Environmental Engineering Standards 2010 recognise and encourage these engineering techniques as a means of mitigating peak flows and degradation of receiving water quality. Increased demand for treatment of stormwater may arise in the future due to increased national and regional legislative n t aint e ati nal n i nmental tanda d an e in n ent nditi n u n ene al
Stormwater renewal expenditure for years 2015-2045
$16 million
$8 million
$0 2017-18 2020-21 2023-24 2026-27 2029-30 2032-33 2035-36 2038-39 2041-42 2044-45 Depreciation Renewals Depreciation Renewals
FLOOD PROTECTION AND CONTROL WORKS RENEWALS The flood protection and control works in the Hikurangi area are functioning adequately and earthworks have recently been completed to raise stop bank levels. Some concrete structures are showing signs of structural wear and will be costly to repair. It is proposed that these be maintained rather than replaced. Council considers that there will be more environmental challenges in operating the flood scheme in the future. The viability of farming the flood plains is dependent on the scheme operating effectively. The more expensive it is to operate, or the lower the level of service it provides, makes farming in this flood prone area challenging for some farmers. Assumptions are that the current asset life related to the flood control system is consistent with industry averages. This asset life is maximised through deferring capital works until as late as possible and by increased maintenance expenditure. A diligent monitoring programme ensures that the Scheme operates within consent compliance limits. By operating the Scheme in accordance with its consent limits and facilitating discussion groups to allow integration of community environmental drivers within the operation of the Scheme, Council maintains public health and environmental outcomes while mitigating adverse effects on the assets and the environment. The current focus for the Hikurangi Swamp Scheme is to undertake refurbishment of the existing Pleuger pumps rather than replace them, and as a result it is hoped that the Scheme will return to positive equity with regard to debt earlier than originally forecast in prior years. The level of service the flood control scheme provides will be affected by changing weather patterns as the Scheme is designed to te t a tu e in elati el mall e ent in ea etu n la e l ni e ent e me m e e ula t e in e tment in t e Scheme becomes less economic.
Flood Protection renewal expenditure for years 2015-2045
$1.2 million
$600,000
$0 2017-18 2020-21 2023-24 2026-27 2029-30 2032-33 2035-36 2038-39 2041-42 2044-45 Depreciation Renewals Depreciation Renewals
54 TRANSPORTATION RENEWALS A step change in pavement renewal funding is expected to result in sustainable renewal costs going forward as depicted in the graph below. However, there is a risk that NZTA will reduce its level of co-funding if Council maintenance and renewal funding is not maintained at appropriate levels. NZTA subsidies for roading expenditure provides up to 54% of each project. Council funding for roading renewals will be increased over the life of the Strategy. However, there is a possibility that funding le el maintenan e t e i t i t ad i in u fi ient t etain t e u ent le el e i e and ill e ult in ea ti e maintenance being undertaken. Flood damage work has in the past been funded by slowing down renewal programmes or deferring maintenance projects. Lack identified undin eme en i a i t t i ene al amme a undin ma need t e di e ted t und l d damage repairs. This can have further downstream impacts by delaying key projects and deferring necessary renewals which results in increased maintenance costs to hold the asset position. n un ealed ad t e ealt and en i nmental enefit ealin u e nta e n ea e i le ute ma e edu ed an i nifi ant edu ti n in t i amme and t e ealt enefit en u a in al in and lin ma e edu ed t e deferral of the Kamo and Tikipunga cycleway routes.
Transportation renewal expenditure for years 2015-2045
$40 million
$8 million
$0 2017-18 2020-21 2023-24 2026-27 2029-30 2032-33 2035-36 2038-39 2041-42 2044-45 Depreciation Renewals Depreciation Renewals
SOLID WASTE RENEWALS Most solid waste assets are in a relatively new condition. However, the sealed pavements and access roads to some transfer stations are ageing and will eventually need to be resurfaced. The impact of not funding planned maintenance and renewal programmes risks a higher whole of life asset cost and reduced levels of service. Much of Council’s solid waste assets have a 30-year plus life capacity. However, assets such as the transfer station networks and litter bins are on a cyclical renewal programme. Priorities for the solid waste replacement programme are assessed in terms of frequency of asset failure, ability to meet service level standards and the risk of environmental damage. Due to deferred renewal undin a e le ted in t e a el i e le el ea ti e maintenan e ma till e in u ed it in t e fi t ea The useful life of transfer station depreciation varies with individual components, from between 20 and 50 years. Asset lives can be maintained or extended provided that the repair or replacement of damaged or failed components is carried out according to good practice. This includes fence replacement, barrier repair and pavement re-sealing. Lack of due asset maintenance will result in reduced asset life. It is likely that in the short term asset condition will deteriorate but it is expected that future LTP planning cycles will recognise these needs at the appropriate time. There is some risk to public health if maintenance is not up to a reasonable standard. Safety barriers will need to be maintained and trips and falls need to be avoided where there are potholes. Dust nuisance at the Uretiti transfer station will be ongoing in dry conditions until the access road is sealed. Where applicable, resource consent conditions are monitored and complied with.
55 Solid Waste renewal expenditure for years 2015-2045
$600,000
$300,000
$0 2017-18 2020-21 2023-24 2026-27 2029-30 2032-33 2035-36 2038-39 2041-42 2044-45 Depreciation Renewals Depreciation Renewals
PARKS AND RESERVES RENEWALS Overall asset conditions are average to good. Sport and recreation facilities have recently been upgraded and playgrounds are in good condition. However, many of these are of a similar age and careful planning of renewals is required. It is envisaged that it an initial in ea e in ene al e enditu e in t e fi t ea u led it u tained le el e i e and t e enditu e across the 30-year period, Council’s renewal investment for parks over the following 20 years will average as depicted in the graph below. Renewal of aged and poor condition assets will be carried out in such a way to ensure service level expectations are met to the highest possible standard within the resources provided. The most likely scenario is that demand will be met on existing assets rather than provision of new assets. Operational funding of tree maintenance may be inadequate to meet desired maintenance programmes. i i n land in a ea t ill a e i nifi ant im a t n finan e a u in land in t e utu e t meet need in an already developed environment requires increased levels of funding. Additionally the growth component is lesser and therefore a higher percentage of the land price is paid by Council versus development contributions, which could, if provided for, fund 100% of land requirements. The lifecycle of assets is in line with industry best practice, occasionally altered to reflect local conditions, such as exposed coastlines or erosive conditions. Consistent quality management and inspection regimes are in place through contracts in all areas. Regular auditing of assets is done by experienced staff who will continue to monitor levels of use and wear on assets. Health and safety investigations are conducted monthly and environmental standards are inherent within this work under the Reserves Act as and when applicable.
Parks & Reserves renewal expenditure for years 2015-2045
$10 million
$5 million
$0 2017-18 2020-21 2023-24 2026-27 2029-30 2032-33 2035-36 2038-39 2041-42 2044-45 Depreciation Renewals Depreciation Renewals
56 Responding to growth (or decline) in demand un il t del ad ted in t e ide an anal i i le t ena i t medium and l n term for the household and business sectors, based predominantly on Statistics New Zealand projections. This information assists Council with asset management, strategic planning and the funding of growth projects. The Growth Model is an evolving representation of the District and is continuously updated as new information is received. Analysis has determined that the geographical locations in the District with the highest projected population increase over the e i d a e e e ted t e in de t a den int ua a a ai u a a e i i and i i un a e t e a ea t e i t i t t at a e e e ted t in ea e t e lea t in ulati n e t e e i d a e in de lea t t am e t e te n ill in lat and ne a i In establishing a medium growth forecast, the mean of high and low projections for estimated building consent numbers was considered. The medium growth projection for the Whangarei District is expected to average 0.95% per annum for the period 2015 to 2045. The Sustainable Futures 30/50 Growth Strategy is the key strategy that informs our forward planning work. Adopted in 2010, it outlines a long-term, integrated framework and spatial plan which supports sustainable development of the District over the next 50 years. AMPs are developed taking into account the growth framework provided by the Strategy and associated implementation plan. In terms of demand for infrastructure, the main determinant of demand for core infrastructure services is the growth in the number of households and businesses. The implications of growth on core infrastructure are as follows:
YEAR ESTIMATED RESIDENT INCREASE % INCREASE PER ANNUM POPULATION
2014 84,400
2018 87,590 3,190 0.9%
2023 91,790 4,200 1.0%
2028 96,050 4,260 0.9%
2033 100,500 4,450 0.9%
2038 105,160 4,660 0.9%
2043 110,030 4,870 0.9%
2048 115,130 5,100 0.9%
WATER Approximately 80% of our population accesses the water supply infrastructure, with the remainder accessing water from springs, bores, streams or rainwater. The District has four water supply areas – Whangarei, Bream Bay, Maungakaramea and Mangapai. It is expected that annual water consumption will increase from 7 million to around 8.2 million cubic metres annually by 2055. Upgrades to the Whau Valley dam and Poroti water source, and approval for a new water source from the Wairua River are considered adequate to meet this growth demand as well as provide contingency supply in times of drought. WASTEWATER a ed n u ent le el e a t t in a t u tu e in eam a ai u ua a a and an ea ai u e and Whangarei Heads, will have limited spare capacity by year 11 of this Infrastructure Strategy. Investment in growth will be needed in eam a t en u e a in mmunit i e i ed ailu e t in e t u fi ientl ill a e an im a t n de el ment STORMWATER There may be some long-term increase in demand for stormwater reticulation arising from growth. However, impact is anticipated to be minimal as Council requires peak flows from post development runoff to be no greater than those of pre- development runoff. Consequently, no increase in infrastructure capacity is required. Growth-related development impact is also managed through regulatory mechanisms, principally the Environmental Engineering Standards, which now require new stormwater infrastructure and developments to address climate change, property runoff and stormwater quality issues. Full details of the engineering requirements, including hydrology and assumptions, are given in Council’s Environmental Engineering Standards. FLOOD PROTECTION AND CONTROL Council has adopted the risk management of flood control relating to growth requirements put forward by NAMS until a corporate mana ement li ame i e ati nali ed i i defined a “the systematic application of management policies, procedures and practices to the tasks of identifying, evaluating, treating and monitoring those risks that could prevent a local authority from achieving its strategic or operational objectives or from complying with its legal obligations”. The purpose of this process is to manage risk in a way that allows key business objectives and strategic goals to be consistently achieved.
57 ROADS AND FOOTPATHS adin t demand i u ted t u lannin me ani m t at en u e t e i i n u fi ient and a iate t an t net e i tin and utu e t mmunitie un il a made i nifi ant in e tment in ma adin e t e t e a t ea in e n e t utu e t e n t u ti n t e e atau e id e e a u i e in and a e ul am i e m lete t e ut e n end t e an a ei t ne a i ute edu in n e ti n on the single river crossing on Riverside Drive. The Mill/Nixon/Kamo Road project has commenced, this being the last of the major capacity projects required in and around Whangarei District roads to manage congestion. State Highway 1 four laning a ntinued it inte e ti n u ade aunu ent al e and el n e e e a e all i nifi ant projects to meet growth demand and capacity requirements. However, population growth will still require capacity upgrades on Walton Street, Riverside Drive and in the Ruakaka area between years 10 and 30. SOLID WASTE The generation of solid waste is closely linked to growth and industrial and commercial development. However, despite ulati n t e t e a t e e al ea t e e a een a tead edu ti n in t e t tal a te t nna e in t landfill These reductions, coupled with past investment in solid waste facilities and services, sees a future capacity in excess of 40 years. Therefore minimal capital investment is required in this area to respond to growth. PARKS AND RESERVES u i t i t a an e ten i e net t field e e e a a tal t u tu e and al a al n it a num e partially Council-funded, community-based sporting facilities. We expect demand on these facilities to increase as our population t i ea n de el ment an u an a a e nd en in t n a i lanned in ea When should Council invest in improving the existing service? The key reasons Council would need to improve existing infrastructure services are: • responding to increasing environmental expectations • responding to increasing legislative requirements • managing the effects of climate change • increasing resilience of infrastructure relating to natural hazards. ENVIRONMENTAL EXPECTATIONS Infrastructure has a high potential to negatively affect the environment and, in consideration of this, resource consents and subsequent compliance monitoring is sought for asset activities. However, consent requirements may, in certain cases, have the potential to attract unforeseen infrastructure expenditure as consent conditions change over time. For example, Council’s wastewater activities operate under 10 resource consents. A schedule of the resource consents associated with the wastewater activity is maintained by Council and provision is made for the renewal of these consents as required. Monitoring of resource consents is undertaken by Wastewater Services as the consent holder and other consent administrators such as Northland Regional Council. However, should the requirements for wastewater discharge change to involve larger areas of land or greater levels of treatment under future consent conditions, Council would be required to accommodate these requirements through the purchase or lease of additional land and/or treatment investment. It is acknowledged that there is a level of uncertainty surrounding future consent conditions for all asset activities and that there is an em died finan ial i in t i un e taint LEGISLATIVE CHANGES mendment t le i lati n tanda d e uildin t in in ate tanda d a e t e tential t e ui e un il t u ade it in a t u tu e i ma e a finan ial i t un il in t e utu e i i n i made a e t e e i tin requirements/standards at this time. However, should future amendments to legislation or standards require upgrades to its infrastructure, Council would incur additional costs and this may result in deferral of already planned works. CLIMATE CHANGE The Ministry for the Environment has issued information relating to the effects of climate change in “Preparing for Climate Change – A guide for local government in New Zealand” t i edi ted t at t land ill e e ien e an annual a e a e increase in temperature of 0.9 degrees by 2040. The average annual rainfall for the Whangarei region is expected to decrease at ea e e fi u e a e a ed n a en ma un il e ni e t at t e e i a le el un e taint u undin t e tential e e t limate an e and t e finan ial im a t t i i li el t a e e e un il i n ide in i nifi ant utu e in e tment in in a t u tu e a i a e ment and t enefit anal i i m leted it limate an e implications taken into account. Allowances for climate change are accommodated in asset design to offset the risk of additional future investment and to maximise asset lifecycle under changing conditions. For example, the effects of global warming and asset risks due to rising sea levels are included in the wastewater network model.
58 INFRASTRUCTURE RESILIENCE There is an increasing demand for the roading network to be resilient by reducing the incidences of roads being closed due to land instability or flooding. This type of demand can be controlled by carrying out preventative maintenance activities such as slip repairs. No provision is made beyond the industry design standard to resist potential earthquake damage at this time. However, should future design standards provide for increases in earthquake resilience, Council would incur additional costs which could result in already planned works being deferred to accommodate it. Council considers that the rebuild of the Whau Valley Water Treatment Plant at a nearby location, at a cost of $17.6 million, is a better long-term solution than upgrades to the existing plant. In the last LTP Council planned $7 million of upgrades to comply with earthquake strengthening requirements and constraint issues at the current site. In planning for the new plant, Council has considered existing asset risk and future asset resilience. Wastewater assets are monitored, in relation to their environmental risk and especially with plant and backup equipment. Funding has been allocated for limited plant upgrades to resist earthquake damage. However, as with all asset-related activities Council d e n t a e a e ifi li n ea t ua e dama e nt l and undin uld a i nifi ant e ent a en
SIGNIFICANT VARIATIONS IN SANITARY ASSESSMENTS AND WASTE MINIMISATION
e ent an e t t e al e nment t n e ui e un il t identi in t e an i nifi ant a iati n et een the proposals in that Plan and Council’s assessment of water and sanitary services and its Waste Management and Minimisation Plan. e ll in ta le et ut t e ele ant a e ment and lan and n te an i nifi ant a iati n it e a d t t e 2025 LTP.
ASSESSMENT/PLAN LAST REVIEW ITEM VARIATION
Water supply 2006 Extension of the public water At this time there does not appear supply to Ngunguru/Tutukaka, to be community support or Matapouri, Oakura, Oceans Beach, demand for public water provision Pataua North and Pataua South. in these areas. These items have therefore not been planned for the 2015-2025 LTP period. This variation is not considered to be i nifi ant
Wastewater 2006 No variations.
Stormwater 2006 No variations.
Cemeteries 2012 To develop a new cemetery facility Public demand is increasing for a in the Bream Bay area. cemetery in this area. Council is investigating options for location and development. Funding has not been allocated to this project in the 2015-2025 LTP. This variation is n t n ide ed t e i nifi ant
Crematoria 2012 No variations.
Waste management 2012 No variations.
59 APPENDIX A – LEVELS OF SERVICE
Water Levels of service serve as the vital link between strategic direction, core values, consultation, and the functional delivery, and guide how assets should be managed. Two level of service statements were developed for water: • Council will provide safe drinking water with adequate pressures to the residents of the District connected to the water supply system • the water supply system is managed in a sustainable way and in times of emergency there is adequate water supply available.
al e nment andat e man e ea u e Council will provide safe drinking water with adequate pressure to the residents of the District connected to the water supply system.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Whangarei District’s water quality will comply with the Ministry of Health’s Drinking 100% 100% 100% 100% 100% Water Standard for New Zealand requirements for bacterial monitoring.
e e tent t i t e l al aut it d in in ate u l m lie it New Fully Fully Fully Fully a a t t e d in in ate tanda d a te ia m lian e ite ia and MPM complies complies complies complies a t t e d in in ate tanda d t al m lian e ite ia
Residents’ satisfaction with the water supply. ≥95% ≥95% ≥95% ≥95% ≥95%
The total number of complaints received by the LA about any of the following: New ≤17 ≤17 ≤17 ≤17 a drinking water clarity MPM drinking water taste drinking water odour d drinking water pressure or flow e continuity of supply; and the LA’s response to any of these issues expressed per 1000 connections to the LA’s networked reticulation system
e num e ate main ea di t i uti n and ide e m i e e ≤35 ≤30 ≤30 ≤30 ≤30 ea ill n t in ea e e nd t e ta et fi u e et
Where the local authority attends a callout in response to a fault or unplanned New interruption to its networked reticulation system, the following median response MPM times measured:
a attendan e u ent all ut m t e time t e e ei ed n tifi ati n t t e ≤1 hr ≤1 hr ≤1 hr ≤1 hr time service personnel reach the site
e luti n u ent all ut m t e time t e e ei ed n tifi ati n t t e ≤4 hrs ≤4 hrs ≤4 hrs ≤4 hrs time t at e i e e nnel nfi m e luti n t e ault inte u ti n
attendance for non-urgent callouts: from the time that the LA receives ≤12 hrs ≤12 hrs ≤12 hrs ≤12 hrs n tifi ati n t t e time t at e i e e nnel ea t e ite and
d e luti n n n u ent all ut m t e time t at t e e ei e n tifi ati n ≤24 hrs ≤24 hrs ≤24 hrs ≤24 hrs t t e time t at e i e e nnel nfi m e luti n t e ault inte u ti n
Water supply is managed in a sustainable manner, and in times of emergency there is adequate water supply available.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
The amount of raw water available as a percentage of predicted demand during ≥79% ≥83% ≥81% ≥79% ≥79% drought conditions. The percentage of real water loss from the local authority’s networked reticulation New MPM ≤25% ≤25% ≤25% ≤25% tem in ludin a de i ti n t e met d l u ed t al ulate t i The average consumption of drinking water per day per resident within the territorial New MPM ≤500 litres ≤500 litres ≤500 litres ≤500 litres authority district.
60 Wastewater and Stormwater CORE VALUE/SERVICE STATEMENT -RELIABILITY/ACCESSIBILITY Under the chosen service option, breaks and blocks are effectively dealt with. Provision for growth is managed to ensure there is t e a a it t meet demand and un eti ulated mmunitie a e identified and i en u t t nne t t t e net et m del a e de el ed and a ea at i ailu e identified CORE VALUE/SERVICE STATEMENT -SUSTAINABLE/ENVIRONMENTAL Under the chosen service option, the network will be managed to minimise the impact on the surrounding environment through monitoring of untreated discharges and implementation of mitigative measures. Design of new works and renewals are to make an allowance for climate change. CORE VALUE/SERVICE STATEMENT – AFFORDABILITY/COST Stakeholders are given options for affordability in service level delivery and understand the consequences/impacts of those options. Under the chosen service option, a whole-of-life approach is to be applied to project planning and a coordinated a a a un il t ide e fi ien in u ement n t u ti n maintenan e t e a te ate a et CORE VALUE/SERVICE STATEMENT – SAFETY/HEALTH Under the chosen service option, respond in a timely and well managed way to any contamination, identify and monitor locations of wet weather overflows and develop a strategy to investigate the separation of cross connections. Ensure, through education and maintenance, the safety of both operators and the public. CORE VALUE/SERVICE STATEMENT – QUALITY/QUANTITY Under the chosen service option, the network will operate within the bounds of the engineering standards, consents and construction/maintenance standards to ensure infrastructure standards and deliverables are met.
Wastewater levels of service
al e nment andat e man e ea u e Council will collect, treat and dispose of wastewater through a reliable wastewater network which is managed to ensure blockages, breaks or spillages are kept to a minimum.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
m lian e it e it ial ut it e u e n ent di a e m it New 0 0 0 0 sewerage system measured by the number of: MPM a abatement notices infringement notices enforcement orders, and d convictions.
The number of dry weather sewerage overflows from the TA’s sewerage system, New ≤1.35 ≤1.35 ≤1.35 ≤1.35 expressed per 1000 sewerage connections to that sewerage system. MPM
Residents’ satisfaction with sewerage reticulation, treatment and disposal 70% 70% 70% 70% 70% services.
The total number of complaints received by the TA about any of the following: New ≤20 ≤20 ≤20 ≤20 a sewage odour MPM sewerage system faults sewerage system blockages; and d the TA’s response to issues with its sewerage system expressed per 1000 connections to the TA’s sewerage system.
Where the TA attends to sewerage overflows resulting from a blockage or other New fault in the TA’s sewerage system, the following median response times measured: MPM
a attendan e time m t e time t at t e e ei e n tifi ati n t t e time t at New ≤1 hr ≤1 hr ≤1 hr ≤1 hr service personnel reach the site; and MPM
e luti n time m t e time t at t e e ei e n tifi ati n t t e time t at New ≤7 hrs ≤7 hrs ≤7 hrs ≤7 hrs e i e e nnel nfi m e luti n t e l a e t e ault MPM
Council will provide well maintained and accessible public toilets in high use areas.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Residents satisfaction with public toilets. ≥75% ≥75% ≥75% ≥75% ≥75%
61 Stormwater Levels of Service al e nment andat e man e ea u e Council will provide a stormwater network that minimises flood risks and environmental impacts.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Compliance with the TA’s resource consents for discharge from its stormwater New 0 0 0 0 system, measured by the number of: MPM a abatement notices infringement notices enforcement orders; and d convictions e received by the TA in relation to those resource consents
Residents’ satisfaction with stormwater drainage service. ≥70% ≥70% ≥70% ≥70% ≥70%
The number of complaints received by a TA about the performance of its New ≤400 ≤400 ≤400 ≤400 stormwater system, expressed per 1000 properties connected to the TA’s MPM stormwater system.
a The number of flooding events that occur in a territorial authority district New 0 0 0 0 For each flooding event, the number of habitable floors affected. Expressed per MPM 1000 properties connected to the TA’s stormwater system.
The median response time to attend a flooding event, measured from the time that New ≤1 hr ≤1 hr ≤1 hr ≤1 hr t e e ei e n tifi ati n t t e time t at e i e e nnel ea t e ite MPM
Flood Protection and Control Works levels of service al e nment andat e man e ea u e Council will provide a reliable and sustainable flood protection scheme which is managed to mitigate flooding within the Hikurangi Swamp Scheme area to an acceptable level.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
The major flood protection and control works that are maintained, repaired and New Yes Yes Yes Yes ene ed t t e e tanda d defined in t e l al aut it ele ant lannin MPM d ument u a it et ana ement lan annual amme
The number of infringement or abatement notices issued by Northland Regional 0 0 0 0 0 Council in relation to the scheme consent.
62 Roading and Footpaths levels of service al e nment andat e man e ea u e The District’s roading network will be maintained in a satisfactory condition and in accordance with national safety and engineering standards.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Percentage of road accidents with contributing roading factors. ≤9% ≤9% ≤9% ≤9% ≤9%
e an e m t e e i u finan ial ea in t e num e atalitie and e i u New 0 0 0 0 injury crashes on local road network, expressed as a number. MPM
Residents’ satisfaction with the roading network. ≥60% ≥61% ≥61% ≥61% ≥61%
The average quality of ride on a sealed local road network, measured by smooth New ≥87% ≥87% ≥87% ≥87% travel exposure. MPM
The percentage of the sealed local road network that is resurfaced. New ≥ 8% ≥ 8% ≥ 8% ≥ 8% MPM
The percentage of the sealed local road network that is rehabilitated. New ≥1.2% ≥1.2% ≥1.2% ≥1.2%
The average quality of ride on the unsealed local road network, measure by the % New ≥70% ≥72% ≥75% ≥75% of road as smooth travel
The percentage of customer service requests relating to roads and footpaths to New ≥95% ≥95% ≥95% ≥95% i t e te it ial aut it e nd it in t e time ame e ified in t e MPM
We will support alternative transport methods.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
The percentage of footpaths within a territorial authority district that fall within New ≥80% in ≥80% in ≥80% in ≥80% in the level of service or service standard for the condition of footpaths that is set MPM fair or fair or fair or fair or ut in t e te it ial aut it ele ant d ument u a it nnual lan et better better better better ana ement lan annual am condition condition condition condition
Residents satisfaction with footpaths in urban areas. ≥74% ≥74% ≥74% ≥74% ≥74%
en t m al in and lin dedi ated net uilt ea ea 3.0km 1.8km 1km 1km 1km
Residents’ satisfaction with street lighting in urban areas. ≥82% ≥82% ≥82% ≥82% ≥82%
Travel times in and around the network will be predictable and disruptions to the network will be well managed and communicated.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Residents’ satisfaction with the way the District is managing its morning and ≥55% ≥70% ≥70% ≥70% ≥70% e enin t a fi l
63 Solid Waste levels of service Council will provide kerbside refuse and recycling collection services to all properties in the District and transfer stations will be operated throughout the District.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Residents’ satisfaction with solid waste collection and recycling services and ≥85% ≥85% ≥85% ≥85% ≥85% transfer stations.
Council will foster waste minimisation by supporting recycling and waste reduction practices so that a continued reduction in refuse sent to landfill occurs.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
nna e e u e m it in un il unda ie ent t landfill ill edu e m New ≤2% ≤2% ≤2% ≤2% the previous year.
Tonnage collected from Council recycling will increase from the previous year. New ≥2% ≥2% ≥2% ≥2%
Council will provide and empty public rubbish bins and undertake litter control throughout public places in the District.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Residents’ satisfaction with litter control. ≥75% ≥75% ≥75% ≥75% ≥75%
Parks and Recreation Council will provide and maintain outdoor sporting facilities to support and promote active recreation of the community through participation in both organised and informal sporting activities.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Sports parks will be provided to meet the community’s needs.* ≥166 hrs ≥177 hrs ≥175 hrs ≥177 hrs ≥181 hrs
Council will provide and maintain a range of reserves, including built facilities, to meet the recreational and leisure needs of the community as well as protecting and enhancing the natural environment for its intrinsic value.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Average satisfaction rating of sports codes with sports parks. ≥80% ≥80% ≥82% ≥82% ≥84%
Residents’ satisfaction with neighbourhood, civic space, cultural heritage, public ≥80% ≥80% ≥82% ≥82% ≥86% gardens, and recreational and ecological linkages parks.
Council will convert or upgrade identified existing open spaces to provide a wider range of high quality recreational and leisure opportunities within the District for our community and visitors.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Hectares of open space land transformed.** 0.37ha 1.2 ha 0.5 ha 0.5 ha 0.5 ha
e ident e e ti n t at un il i ma in u fi ient in e tment in de el in a New ≥70% ≥70% ≥70% ≥70% strong sense of place for the District and its communities.
Council will provide and maintain cemeteries and a crematorium in a satisfactory manner.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
Residents’ satisfaction with cemeteries. ≥90% ≥90% ≥90% ≥90% ≥90%
* This measure is expressed as the number of hours available at sports parks per 1000 members of the District population during the winter season.
** This measure relates to tracks constructed on, or connecting, reserve land in addition to any walk and cycleway tracks funded by the transportation activity.
64 APPENDIX B – USEFUL LIVES
From Council’s Statement of Accounting Policy: Property, plant and equipment consists of Depreciation is provided on all property, rates which will allocate the cost or value operational assets, restricted assets and plant and equipment. The exceptions are t e a et le an e idual alue e infrastructure assets. Property, plant and t e a et it undefined u e ul li e its useful life. The estimated useful lives, equipment items are shown at historical which are not depreciated. Depreciation in years, of the major classes of property, cost or valuation less accumulated is calculated on a straight line basis or plant and equipment are as follows: depreciation and impairment losses. diminishing value where appropriate, at
INFRASTRUCTURAL ASSETS YEARS DEPRECIATION RATE
Land under roads ndefinite
ROADING
Bridges 50 2%
Carriageways 5-40 2.5%-40%
Culverts 50-99 1%-2%
Footpaths 10-25 4%-10%
Kerbs and channels 25 4%
Street and road signs 10 10%
WATER
Pipes 40-116 0.9%-2.5%
Tanks 43-200 0.5%-1%
Valves 10-89 1.1%-10%
Treatment plant 30-80 1.25%-33%
LIQUID WASTE
Pipes 40-130 0.8%-2.5%
Manholes 50-93 1%-2%
STORMWATER
Manholes 50-80 1.25%-2%
Pipes 40-112 1%-2.5%
DRAINAGE NETWORK
Pipes 50-80 1.25%-2%
Parks and reserves – walkways and sports parks 10 10%
Plant and machinery 14 7.4%
Infrastructure assets’ residual values and useful lives are reviewed on a three yearly revaluation cycle and adjusted if appropriate.
65 APPENDIX C – KEY ASSUMPTIONS
Key assumptions have been made in to match Council’s increased budget for Revenue: this Strategy has been definin t e ea n a t u tu e maintaining and renewing its assets. prepared based on the preferred option Strategy as follows: Shortfalls in funding assistance from the of increasing total rates beyond inflation NZTA will likely result in reduced levels of every year for the next 10 years. Any Growth projections: growth will service reduction in funding will likely result in occur generally in line with Council’s assets being run down and/or much less projections. This reflects Council’s Levels of service: it has been assumed being spent on community initiatives assumptions about demand for services t at t e e ill e n i nifi ant an e and recreational facilities, with a i.e. that population growth increases to the current levels of service. Some corresponding drop in levels of service. demand for services for its infrastructure communities may wish to maintain a assets, and Council’s assumptions higher level of service than this. If there Asset Lives: it is assumed that on regarding growth in revenue. The farther is widespread agreement for this Council average the asset lives in Appendix out the projection, the higher degree of could introduce targeted rates in selected B – Useful Lives will be achieved. The uncertainty there is areas condition of the assets will be monitored to assess their respective remaining lives New Zealand Transport Agency Legislation: this Strategy has been against the predicted asset lives. funding: Council receives funding prepared in line with current legislation assistance from the New Zealand and tanda d n i nifi ant an e in The above mentioned risks will be an t en adin legislation may result in a change in level managed through periodic monitoring in and footpaths. It is assumed that the of service, or require additional funding. line with the LTP review process. NZTA funding assistance will increase
APPENDIX D – HISTORIC SPEND Transportation $30 million
$15 million
$0 Growth Level of Service Renewals Total 2013-14 2012-13
Water $1.6 million
$800,000
$0 Growth Level of Service Renewals Total 2013-14 2012-13
66 Solid Waste
$800,000
$400,000
$0 Growth Level of Service Renewals Total 2013-14 2012-13 Wastewater $16 million
$8 million
$0 Growth Level of Service Renewals Total 2013-14 2012-13
Stormwater $2 million
$1 million
$0 Growth Level of Service Renewals Total 2013-14 2012-13 Flood Protection & Control Works
$600,000
$300,000
$0 Growth Level of Service Renewals Total 2013-14 2012-13
Community Facilities & Services (including Parks & Recreation) $8 million
$4 million
$0 Growth Level of Service Renewals Total 2013-14 2012-13
67
PART THREE COUNCIL ACTIVITIES
INTRODUCTION
Council’s work is grouped into nine key activities in this LTP:
The information provided about each of ACTIVITY GROUP OF ACTIVITIES ACTIVITY NUMBER the nine activities includes:
1 • what we do Transportation Transportation • why we do it
2 • how it relates to the Community Water Water Outcomes • the money we have budgeted for the 3 Solid Waste Solid Waste activity in the next year • le el e i e at un il ill 4 Wastewater Wastewater ide and t at e tent • performance measures and targets for 5 u ill e a le t tell Stormwater Stormwater whether we have done what we said e uld d 6 Flood Protection & Control Hikurangi Swamp Works The performance measures and targets will be used to report Council’s 7 Community Facilities & Services achievements back to the community in Parks & Recreation Annual Reports for 2015, 2016 and 2017.
Libraries SERVICE Community Property DELIVERY Community Services In 2010, the Local Government Act was amended to require all councils to report Venues & Events against mandatory and highly-prescribed n n finan ial e man e mea u e 8 relating to roading and footpaths, waste Economic Growth Economic Growth and drainage and water activities. Going forward, we will evaluate these alongside 9 Planning & Regulatory Services our normal level of service targets. Policy & Monitoring This Plan details 30 levels of service with 61 associated performance measures Resource Consents and targets. 18 of these measures are mandatory.
Building Compliance Results for 19 of our performance measures are obtained through surveying t e ene al mmunit e ifi all Regulatory Services targeted individuals, such as library users to gauge their satisfaction with library services. Support Services The remaining measures are Some information is also included about the support services provided to the rest of quantitative in nature and provide a Council – enabling services such as information technology, human resources and baseline for the community to gauge finan ial mana ement e t t e e a ti itie a e a ti ned e t e nine Council’s performance. Examples i nifi ant a ti it a ea include the quality of drinking water or the percentage of building consents processed within statutory timeframes.
71 PROSPECTIVE FUNDING IMPACT STATEMENT FOR WHANGAREI DISTRICT COUNCIL
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 43,187 47,593 50,885 53,753 57,118 60,469 64,110 68,062 72,363 77,062 82,201 General rates, uniform annual general charges, rates penalties
Targeted rates 34,154 36,357 37,873 38,978 40,704 42,569 44,549 46,732 49,097 51,670 54,472 Targeted rates
Subsidies and grants for operating purposes 5,576 6,312 6,410 6,763 7,042 7,113 7,248 7,471 7,708 7,962 8,242 Subsidies and grants for operating purposes
Fees and charges 17,283 18,319 19,407 20,072 20,512 20,999 21,663 22,192 22,782 23,469 24,076 Fees and charges
Interest and dividends from investments 493 313 311 308 305 303 300 297 297 297 297 Interest and dividends from investments
al aut itie uel ta fine in in ement ee and t e 3,472 4,072 3,366 3,678 3,423 3,454 3,489 4,825 3,517 3,560 3,607 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 104,165 112,966 118,252 123,552 129,104 134,907 141,359 149,579 155,764 164,020 172,895 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 72,178 77,691 80,674 83,230 84,080 86,366 88,192 93,191 96,033 99,243 102,862 Payments to staff and suppliers
Finance Costs 8,579 8,395 9,001 9,185 9,326 9,251 9,161 8,922 8,734 8,521 8,261 Finance Costs
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 80,757 86,086 89,675 92,415 93,406 95,617 97,353 102,113 104,767 107,764 111,123 Total Applications of Operating Funding
u lu efi it e atin undin 23,408 26,880 28,577 31,137 35,698 39,290 44,006 47,466 50,997 56,256 61,772 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure 9,785 14,777 12,737 11,354 9,400 11,448 11,668 10,592 12,515 11,108 11,090 Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n 2,550 2,120 2,139 2,159 2,178 2,199 2,219 2,240 2,262 2,283 2,304 e el ment and finan ial nt i uti n
n ea e de ea e in de t 12,840 2,540 9,047 n ea e de ea e in de t
Gross proceeds from sale of assets - - 10,500 ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 25,175 16,506 27,916 22,560 10,414 12,491 9,536 9,694 11,281 9,020 8,742 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand 17,141 10,671 2,112 2,572 2,740 6,380 8,846 5,523 15,218 9,233 3,704 to meet additional demand
to improve levels of service 14,884 19,290 11,151 11,710 10,045 16,372 7,939 9,395 12,503 12,238 22,083 to improve levels of service
to replace existing assets 17,962 28,635 43,092 38,615 32,116 28,809 36,521 42,855 34,338 44,048 44,829 to replace existing assets
n ea e de ea e in e e e 138 800 1,211 220 236 219 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 48,583 43,386 56,493 53,697 46,112 51,781 53,542 57,160 62,278 65,276 70,514 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
72 PROSPECTIVE FUNDING IMPACT STATEMENT FOR WHANGAREI DISTRICT COUNCIL
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 43,187 47,593 50,885 53,753 57,118 60,469 64,110 68,062 72,363 77,062 82,201 General rates, uniform annual general charges, rates penalties
Targeted rates 34,154 36,357 37,873 38,978 40,704 42,569 44,549 46,732 49,097 51,670 54,472 Targeted rates
Subsidies and grants for operating purposes 5,576 6,312 6,410 6,763 7,042 7,113 7,248 7,471 7,708 7,962 8,242 Subsidies and grants for operating purposes
Fees and charges 17,283 18,319 19,407 20,072 20,512 20,999 21,663 22,192 22,782 23,469 24,076 Fees and charges
Interest and dividends from investments 493 313 311 308 305 303 300 297 297 297 297 Interest and dividends from investments
al aut itie uel ta fine in in ement ee and t e 3,472 4,072 3,366 3,678 3,423 3,454 3,489 4,825 3,517 3,560 3,607 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 104,165 112,966 118,252 123,552 129,104 134,907 141,359 149,579 155,764 164,020 172,895 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 72,178 77,691 80,674 83,230 84,080 86,366 88,192 93,191 96,033 99,243 102,862 Payments to staff and suppliers
Finance Costs 8,579 8,395 9,001 9,185 9,326 9,251 9,161 8,922 8,734 8,521 8,261 Finance Costs
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 80,757 86,086 89,675 92,415 93,406 95,617 97,353 102,113 104,767 107,764 111,123 Total Applications of Operating Funding
u lu efi it e atin undin 23,408 26,880 28,577 31,137 35,698 39,290 44,006 47,466 50,997 56,256 61,772 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure 9,785 14,777 12,737 11,354 9,400 11,448 11,668 10,592 12,515 11,108 11,090 Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n 2,550 2,120 2,139 2,159 2,178 2,199 2,219 2,240 2,262 2,283 2,304 e el ment and finan ial nt i uti n
n ea e de ea e in de t 12,840 2,540 9,047 n ea e de ea e in de t
Gross proceeds from sale of assets - - 10,500 ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 25,175 16,506 27,916 22,560 10,414 12,491 9,536 9,694 11,281 9,020 8,742 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand 17,141 10,671 2,112 2,572 2,740 6,380 8,846 5,523 15,218 9,233 3,704 to meet additional demand to improve levels of service 14,884 19,290 11,151 11,710 10,045 16,372 7,939 9,395 12,503 12,238 22,083 to improve levels of service to replace existing assets 17,962 28,635 43,092 38,615 32,116 28,809 36,521 42,855 34,338 44,048 44,829 to replace existing assets
n ea e de ea e in e e e 138 800 1,211 220 236 219 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 48,583 43,386 56,493 53,697 46,112 51,781 53,542 57,160 62,278 65,276 70,514 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
73 1. TRANSPORTATION
WHAT WE DO AND WHY
Transport is all about getting people and things around the place. Motor vehicles, public transport, freight vehicles, cyclists and pedestrians, residents and visitors and people travelling through all use the transport network that Council provides. t i ne t e m t im tant un ti n e ide t i ital t t e e e ti ene and e fi ien t e i t i t t enefit business and personal users and has a major influence on the overall shape of the community. Our roading network: • allows people and things to be moved from place to place • provides access to properties • caters for pedestrians and cyclists • provides parking space • enables community and commercial events and activities. Providing an integrated, safe, responsive, and sustainable land transport system is a fundamental requirement of every district council under the Local Government Act 2002. We are the road-controlling authority for the District and we are responsible for lannin eatin e atin maintainin and e a ilitatin all ad e e t tate i a in t e an a ei i t i t in a finan iall e n i le manne Potential negative effects Transportation activities contribute to a number of negative environmental effects including, but not limited to, water quality, air quality, noise and safety related issues. In order to mitigate these effects our Roading Department’s activities are undertaken in accordance with environmental standards and, where appropriate, resource consent conditions to ensure that negative impacts on the environment are avoided, remedied or appropriately mitigated.
CONTRIBUTION TO COMMUNITY OUTCOMES
EASY AND SAFE TO MOVE AROUND Transportation provides a roading and footpath network for both commercial and residential purposes. Roads are built and maintained with focus on the safety of the road user. GROWING RESILIENT ECONOMY e ima t an t net ad i t e e u t t e i t i t e n mi a ti itie i in lude mme ial use, private use to get to and from local businesses and domestic and international visitors. WELL MANAGED GROWTH t i u ted t u a iate lannin me ani m t en u e t e i i n u fi ient and a iate transport networks for the existing and growth communities. High Contribution Medium Contribution
74 LEVELS OF SERVICE
al e nment andat e man e ea u e
1.1 The District’s roading network will be maintained in a satisfactory condition and in accordance with national safety and engineering standards.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
1.1.1 Percentage of road accidents with contributing roading factors. ≤9% ≤9% ≤9% ≤9% ≤9%
1.1.2 e an e m t e e i u finan ial ea in t e num e atalitie and New 0 0 0 0 serious injury crashes on local road network, expressed as a number. MPM
1.1.3 Residents’ satisfaction with the roading network. ≥60% ≥61% ≥61% ≥61% ≥61%
1.1.4 The average quality of ride on a sealed local road network, measured by New ≥87% ≥87% ≥87% ≥87% smooth travel exposure. MPM
1.1.5 The percentage of the sealed local road network that is resurfaced. New ≥ 8% ≥ 8% ≥ 8% ≥ 8% MPM
1.1.6 The percentage of the sealed local road network that is rehabilitated. New ≥1.2% ≥1.2% ≥1.2% ≥1.2%
1.1.7 The average quality of ride on the unsealed local road network, measure by New ≥70% ≥72% ≥75% ≥75% the % of road as smooth travel
1.1.8 The percentage of customer service requests relating to roads and New ≥95% ≥95% ≥95% ≥95% footpaths to which the territorial authority responds within the time frame MPM e ified in t e
1.2 We will support alternative transport methods.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
1.2.1 The percentage of footpaths within a territorial authority district that fall New ≥80% in ≥80% in ≥80% in ≥80% in within the level of service or service standard for the condition of footpaths MPM fair or fair or fair or fair or t at i et ut in t e te it ial aut it ele ant d ument u a it better better better better nnual lan et ana ement lan annual am condition condition condition condition
1.2.2 Residents satisfaction with footpaths in urban areas. ≥74% ≥74% ≥74% ≥74% ≥74%
1.2.3 en t m al in and lin dedi ated net uilt ea ea 3.0km 1.8km 1km 1km 1km
1.2.4 Residents’ satisfaction with street lighting in urban areas. ≥82% ≥82% ≥82% ≥82% ≥82%
1.3 Travel times in and around the network will be predictable and disruptions to the network will be well managed and communicated.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
1.3.1 Residents’ satisfaction with the way the District is managing its morning ≥55% ≥70% ≥70% ≥70% ≥70% and e enin t a fi l
Changes to levels of service i nifi ant in e tment in adin in a t u tu e e t e a t e e al ea a ena led un il t e eed e man e ta et elatin t ati a ti n it t a fi l and t e adin net in ene al n li t t i ta et and a e een revised upwards. Recent changes to the LGA require all councils to report on a number of mandatory performance measures. In the Transportation category this includes reporting the percentage of the sealed local road network that is resurfaced. Council’s view is that the surface of a road is often dependent upon the condition of its underlying structure. As a result performance measure 1.1.6 which measures the percentage of the sealed network that is rehabilitated in order to produce a more cohesive performance picture has been added. The length of walking and cycling network built each year depends upon planned capital works. The target for 1.2.3 has therefore been aligned with the Transportation capital works programme. Recent changes to the LGA require all Councils to report on a number of mandatory performance measures. In reviewing the levels of service we took into account our current targets and reviewed them along with the mandatory measures to ensure a robust set of targets against which to measure our performance. Where a mandatory measure was similar to an existing one we removed the old one, while ensuring that this would not represent any drop in overall performance in this area.
75 PROSPECTIVE FUNDING IMPACT STATEMENT: TRANSPORTATION
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 9,711 14,074 14,509 15,327 16,726 19,205 20,357 21,802 23,184 24,074 25,905 General rates, uniform annual general charges, rates penalties
Targeted rates 16 55 39 39 39 39 - - - - - Targeted rates
Subsidies and grants for operating purposes 5,410 6,254 6,351 6,703 6,980 7,050 7,182 7,404 7,639 7,890 8,167 Subsidies and grants for operating purposes
Fees and charges 1,732 1,789 1,791 1,799 1,802 1,805 1,809 1,813 1,817 1,822 1,826 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 2,439 2,426 2,471 2,520 2,571 2,625 2,685 2,749 2,818 2,894 2,974 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 19,308 24,598 25,161 26,388 28,118 30,724 32,033 33,768 35,458 36,680 38,872 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 13,112 14,341 15,014 15,847 16,465 16,700 17,197 17,739 18,319 18,946 19,624 Payments to staff and suppliers
Finance Costs 3,578 3,936 4,075 4,228 4,288 4,375 4,590 4,553 4,465 4,435 4,045 Finance Costs
Internal charges and overheads applied 1,236 1,177 1,292 1,347 1,291 1,302 1,303 1,303 1,320 1,361 1,387 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 17,926 19,454 20,381 21,422 22,044 22,377 23,090 23,595 24,104 24,742 25,055 Total Applications of Operating Funding
u lu efi it e atin undin 1,382 5,144 4,780 4,966 6,074 8,347 8,943 10,173 11,354 11,938 13,817 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure 9,784 14,777 12,737 11,354 9,400 11,448 11,668 10,592 12,515 11,108 11,090 Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n 1,084 815 822 830 837 845 853 861 869 878 886 e el ment and finan ial nt i uti n
n ea e de ea e in de t 7,370 643 5,518 1,454 348 1,439 171 376 295 n ea e de ea e in de t
Gross proceeds from sale of assets - - 5,250 ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 18,238 16,235 17,444 17,702 11,691 12,641 13,960 11,624 13,065 12,362 12,271 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand 7,499 8,130 1,938 2,499 2,691 3,683 4,422 4,104 6,666 3,824 3,226 to meet additional demand
to improve levels of service 4,132 6,977 5,198 4,434 531 3,046 2,843 976 800 366 - to improve levels of service
to replace existing assets 9,691 10,704 14,326 13,623 15,205 15,581 16,310 16,766 17,270 17,805 18,391 to replace existing assets
n ea e de ea e in e e e 762 2,112 2,305 4,471 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 19,620 21,379 22,224 22,668 17,765 20,988 22,903 21,797 24,419 24,300 26,088 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
76 PROSPECTIVE FUNDING IMPACT STATEMENT: TRANSPORTATION
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 9,711 14,074 14,509 15,327 16,726 19,205 20,357 21,802 23,184 24,074 25,905 General rates, uniform annual general charges, rates penalties
Targeted rates 16 55 39 39 39 39 - - - - - Targeted rates
Subsidies and grants for operating purposes 5,410 6,254 6,351 6,703 6,980 7,050 7,182 7,404 7,639 7,890 8,167 Subsidies and grants for operating purposes
Fees and charges 1,732 1,789 1,791 1,799 1,802 1,805 1,809 1,813 1,817 1,822 1,826 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 2,439 2,426 2,471 2,520 2,571 2,625 2,685 2,749 2,818 2,894 2,974 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 19,308 24,598 25,161 26,388 28,118 30,724 32,033 33,768 35,458 36,680 38,872 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 13,112 14,341 15,014 15,847 16,465 16,700 17,197 17,739 18,319 18,946 19,624 Payments to staff and suppliers
Finance Costs 3,578 3,936 4,075 4,228 4,288 4,375 4,590 4,553 4,465 4,435 4,045 Finance Costs
Internal charges and overheads applied 1,236 1,177 1,292 1,347 1,291 1,302 1,303 1,303 1,320 1,361 1,387 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 17,926 19,454 20,381 21,422 22,044 22,377 23,090 23,595 24,104 24,742 25,055 Total Applications of Operating Funding
u lu efi it e atin undin 1,382 5,144 4,780 4,966 6,074 8,347 8,943 10,173 11,354 11,938 13,817 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure 9,784 14,777 12,737 11,354 9,400 11,448 11,668 10,592 12,515 11,108 11,090 Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n 1,084 815 822 830 837 845 853 861 869 878 886 e el ment and finan ial nt i uti n
n ea e de ea e in de t 7,370 643 5,518 1,454 348 1,439 171 376 295 n ea e de ea e in de t
Gross proceeds from sale of assets - - 5,250 ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 18,238 16,235 17,444 17,702 11,691 12,641 13,960 11,624 13,065 12,362 12,271 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand 7,499 8,130 1,938 2,499 2,691 3,683 4,422 4,104 6,666 3,824 3,226 to meet additional demand to improve levels of service 4,132 6,977 5,198 4,434 531 3,046 2,843 976 800 366 - to improve levels of service to replace existing assets 9,691 10,704 14,326 13,623 15,205 15,581 16,310 16,766 17,270 17,805 18,391 to replace existing assets
n ea e de ea e in e e e 762 2,112 2,305 4,471 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 19,620 21,379 22,224 22,668 17,765 20,988 22,903 21,797 24,419 24,300 26,088 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
77 2. WATER
WHAT WE DO AND WHY
We provide fresh, clean, healthy water to about 80% of the people in the District. The water is delivered to Ministry of Health standards via a network of treatment plants, reservoirs, pump stations and pipelines. Our water supply provides water for households to drink and use and it also plays an important role in many industrial, commercial and some agricultural businesses. ate i al ided t fi t fi e it in t e ead u net en ate un l t e a e n t n t e net our treated water can be purchased and delivered by tanker. Potential negative effects Provision of safe drinking water to the community has some negative effects to the environment through the abstraction of water m i e e and dam e al need t e mind ul t e i ultu al i nifi an e i and t e ta in ate ma e of concern to local Iwi and Hapu. All Water Services activities are undertaken in compliance with relevant resource consent conditions which were granted taking cultural and environmental impacts into account. As a result these are appropriately mitigated, remedied or avoided. Council undertakes activities to protect and enhance our dam catchments.
CONTRIBUTION TO COMMUNITY OUTCOMES
A GROWING, RESILIENT ECONOMY The water activity provides water to the District, and therefore supports commercial, industrial and agricultural activities. The supply of water is managed and planned in such a way that it is able to continue supply in times of drought and emergencies. VIBRANT AND HEALTHY COMMUNITIES The provision of clean, potable water is fundamental to healthy communities. WELL MANAGED GROWTH t i u ted t u a iate lannin me ani m t en u e t e i i n u fi ient and a iate water supplies for the existing and growth communities. High Contribution Medium Contribution
LEVELS OF SERVICE
al e nment andat e man e ea u e
2.1 Council will provide safe drinking water with adequate pressure to the residents of the District connected to the water supply system.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
2.1.1 Whangarei District’s water quality will comply with the Ministry of Health’s 100% 100% 100% 100% 100% Drinking Water Standard for New Zealand requirements for bacterial monitoring.
78 PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
2.1.2 e e tent t i t e l al aut it d in in ate u l New Fully Fully Fully Fully m lie it a a t t e d in in ate tanda d a te ia MPM complies complies complies complies m lian e ite ia and a t t e d in in ate tanda d t al m lian e ite ia
2.1.3 Residents’ satisfaction with the water supply. ≥95% ≥95% ≥95% ≥95% ≥95%
2.1.4 The total number of complaints received by the LA about any of the New ≤17 ≤17 ≤17 ≤17 following: MPM a drinking water clarity drinking water taste drinking water odour d drinking water pressure or flow e continuity of supply; and the LA’s response to any of these issues expressed per 1000 connections to the LA’s networked reticulation system
2.1.5 e num e ate main ea di t i uti n and ide e m ≤35 ≤30 ≤30 ≤30 ≤30 i e e ea ill n t in ea e e nd t e ta et fi u e et
2.1.6 Where the local authority attends a callout in response to a fault or New unplanned interruption to its networked reticulation system, the following MPM median response times measured:
a attendan e u ent all ut m t e time t e e ei ed n tifi ati n ≤1 hr ≤1 hr ≤1 hr ≤1 hr to the time service personnel reach the site
e luti n u ent all ut m t e time t e e ei ed n tifi ati n ≤4 hrs ≤4 hrs ≤4 hrs ≤4 hrs t t e time t at e i e e nnel nfi m e luti n t e ault interruption
attendance for non-urgent callouts: from the time that the LA receives ≤12 hrs ≤12 hrs ≤12 hrs ≤12 hrs n tifi ati n t t e time t at e i e e nnel ea t e ite and
d resolution of non-urgent callouts: from the time that the LA receives ≤24 hrs ≤24 hrs ≤24 hrs ≤24 hrs n tifi ati n t t e time t at e i e e nnel nfi m e luti n t e fault or interruption.
2.2 Water supply is managed in a sustainable manner, and in times of emergency there is adequate water supply available.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
2.2.1 The amount of raw water available as a percentage of predicted demand ≥79% ≥83% ≥81% ≥79% ≥79% during drought conditions. 2.2.2 The percentage of real water loss from the local authority’s networked New MPM ≤25% ≤25% ≤25% ≤25% eti ulati n tem in ludin a de i ti n t e met d l u ed t al ulate t i 2.2.3 The average consumption of drinking water per day per resident within the New MPM ≤500 litres ≤500 litres ≤500 litres ≤500 litres territorial authority district.
Changes to levels of service Water losses and population growth have been lower than expected during the last several years. As a result Council has e eeded ta et l t ate and a a e ult li ted t e ta et ea ne t t ee t e t i anti i ated t at t e availability of water will drop slowly each year as population growth and connections to reticulation increase. To accommodate this, in 2023 Council plans to start establishing a new water source from the Wairua River. This will increase raw water availability but any noticeable change to performance for this measure will be outside of the life of this LTP. Recent changes to the LGA require all Councils to report on a number of mandatory performance measures. In reviewing the levels of service we took into account our current targets and reviewed them along with the mandatory measures to ensure a robust set of targets against which to measure our performance. Where a mandatory measure was similar to an existing one we removed the old one, while ensuring that this would not represent any drop in overall performance in this area.
79 PROSPECTIVE FUNDING IMPACT STATEMENT: WATER
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties ------General rates, uniform annual general charges, rates penalties
Targeted rates 12,699 13,060 13,461 13,884 14,331 14,814 15,334 15,895 16,500 17,157 17,869 Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 290 297 328 336 345 355 365 376 388 401 415 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 3 730 824 731 510 617 760 830 796 824 536 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 12,992 14,087 14,613 14,951 15,186 15,786 16,459 17,101 17,684 18,381 18,820 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 5,386 5,659 6,008 6,309 6,500 6,992 7,267 7,919 8,574 8,679 9,213 Payments to staff and suppliers
Finance Costs 67 ------388 Finance Costs
Internal charges and overheads applied 1,389 2,127 2,290 2,368 2,329 2,359 2,374 2,392 2,432 2,509 2,612 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 6,842 7,786 8,298 8,677 8,829 9,351 9,641 10,311 11,006 11,188 12,213 Total Applications of Operating Funding
u lu efi it e atin undin 6,150 6,301 6,315 6,274 6,357 6,435 6,816 6,790 6,678 7,193 6,607 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n 593 548 553 558 563 569 574 579 585 590 596 e el ment and finan ial nt i uti n
n ea e de ea e in de t ------662 n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 593 548 553 558 563 569 574 579 585 590 1,258 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand 75 200 - - - 923 2,006 - - 3,800 - to meet additional demand
to improve levels of service - - - - 2,162 78 - - - 922 7,160 to improve levels of service
to replace existing assets 3,412 6,090 8,530 10,759 2,881 3,482 4,163 7,971 6,794 8,167 10,065 to replace existing assets
n ea e de ea e in e e e 3,256 559 1,877 2,516 1,221 469 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 6,743 6,849 6,868 6,832 6,920 7,004 7,390 7,369 7,263 7,783 7,865 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
80 PROSPECTIVE FUNDING IMPACT STATEMENT: WATER
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties ------General rates, uniform annual general charges, rates penalties
Targeted rates 12,699 13,060 13,461 13,884 14,331 14,814 15,334 15,895 16,500 17,157 17,869 Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 290 297 328 336 345 355 365 376 388 401 415 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 3 730 824 731 510 617 760 830 796 824 536 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 12,992 14,087 14,613 14,951 15,186 15,786 16,459 17,101 17,684 18,381 18,820 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 5,386 5,659 6,008 6,309 6,500 6,992 7,267 7,919 8,574 8,679 9,213 Payments to staff and suppliers
Finance Costs 67 ------388 Finance Costs
Internal charges and overheads applied 1,389 2,127 2,290 2,368 2,329 2,359 2,374 2,392 2,432 2,509 2,612 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 6,842 7,786 8,298 8,677 8,829 9,351 9,641 10,311 11,006 11,188 12,213 Total Applications of Operating Funding
u lu efi it e atin undin 6,150 6,301 6,315 6,274 6,357 6,435 6,816 6,790 6,678 7,193 6,607 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n 593 548 553 558 563 569 574 579 585 590 596 e el ment and finan ial nt i uti n
n ea e de ea e in de t ------662 n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 593 548 553 558 563 569 574 579 585 590 1,258 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand 75 200 - - - 923 2,006 - - 3,800 - to meet additional demand to improve levels of service - - - - 2,162 78 - - - 922 7,160 to improve levels of service to replace existing assets 3,412 6,090 8,530 10,759 2,881 3,482 4,163 7,971 6,794 8,167 10,065 to replace existing assets
n ea e de ea e in e e e 3,256 559 1,877 2,516 1,221 469 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 6,743 6,849 6,868 6,832 6,920 7,004 7,390 7,369 7,263 7,783 7,865 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
81 3. SOLID WASTE
WHAT WE DO AND WHY
We provide the systems for collecting, processing, disposing of and recycling solid waste. Our aim is to do this in a way that over time will reduce the amount of waste we are required to process. This helps to maintain public health and safety, and the environment. Waste management is required to meet the requirements of several pieces of legislation, including the Waste Minimisation Act and t e al e nment t and it amendment e au e landfill ene ate met ane e a e al e ui ed t meet t e e ui ement t e e ealand mi i n adin eme a a t t e fi t t minimi e l al a min Potential negative effects The collection of rubbish can lead to some potential for odours and visual pollution of the environment. To mitigate this we review u u i lle ti n edule and e n a e ula a i t en u e u i lle ti n a ti itie e ate a e fi ientl a possible times. Increasing disposal costs could lead to illegal dumping and this is monitored and education and/or enforcement action is taken as needed. andfill a e ne ati e e e t n t e en i nment and l ed landfill an eate tentiall a a d u and ntaminated land mana e t i un il de el t l u e lan l ed landfill and e ate a ti e landfill in a dan e it resource consent conditions. Unstable land is managed through appropriate engineering standards.
CONTRIBUTION TO COMMUNITY OUTCOMES
CLEAN, HEALTHY AND VALUED ENVIRONMENT Reliable collection and cleaning minimises effects on the physical environment from pollution, and with recycling e i e e e a te t landfill i limited VIBRANT AND HEALTHY COMMUNITIES A clean environment contributes to District pride and the wellbeing of its residents and visitors. WELL MANAGED GROWTH t i u ted t u a iate lannin me ani m t en u e t e i i n u fi ient and a iate solid waste collection and disposal and recycling systems for the existing and growth communities. High Contribution Medium Contribution
82 LEVELS OF SERVICE
3.1 Council will provide kerbside refuse and recycling collection services to all properties in the District and transfer stations will be operated throughout the District.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
3.1.1 Residents’ satisfaction with solid waste collection and recycling services ≥85% ≥85% ≥85% ≥85% ≥85% and transfer stations.
3.2 Council will foster waste minimisation by supporting recycling and waste reduction practices so that a continued reduction in refuse sent to landfill occurs.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
3.2.1 nna e e u e m it in un il unda ie ent t landfill ill edu e New ≤2% ≤2% ≤2% ≤2% from the previous year.
3.2.2 Tonnage collected from Council recycling will increase from the previous New ≥2% ≥2% ≥2% ≥2% year.
3.3 Council will provide and empty public rubbish bins and undertake litter control throughout public places in the District.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
3.3.1 Residents’ satisfaction with litter control. ≥75% ≥75% ≥75% ≥75% ≥75%
Changes to levels of service un il a te inimi ati n t ate aim t edu e a te t landfill and in ea e e lin e ta et t e e mea u e a e een ad u ted t m e eali ti le el and e i e ntent and l ati n a e een la ified e am le all e lin i n mea u ed at e t an e ide nl and all a te t t e landfill m it in i t i t unda ie i mea u ed rather than what is collected only from the kerbside.
83 PROSPECTIVE FUNDING IMPACT STATEMENT: SOLID WASTE
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties ------General rates, uniform annual general charges, rates penalties
Targeted rates 5,645 5,881 6,256 6,478 6,714 6,967 7,241 7,536 7,854 8,199 8,573 Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 3,007 3,085 3,171 3,251 3,336 3,425 3,524 3,631 3,747 3,873 4,010 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 42 5 5 5 4 4 4 3 3 3 3 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 8,694 8,971 9,432 9,734 10,054 10,396 10,769 11,170 11,604 12,075 12,586 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 6,158 6,043 6,286 6,443 6,611 6,796 6,992 7,206 7,441 7,692 7,966 Payments to staff and suppliers
Finance Costs 799 678 615 470 340 180 - - - - - Finance Costs
Internal charges and overheads applied 276 283 310 323 310 313 314 314 318 328 341 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 7,233 7,004 7,211 7,236 7,261 7,289 7,306 7,520 7,759 8,020 8,307 Total Applications of Operating Funding
u lu efi it e atin undin 1,461 1,967 2,221 2,498 2,793 3,107 3,463 3,650 3,845 4,055 4,279 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand 765 ------to meet additional demand
to improve levels of service - 761 278 17 17 29 - - - - - to improve levels of service
to replace existing assets ------to replace existing assets
n ea e de ea e in e e e - - - - - - - n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 765 282 278 18 18 28 - - - - - Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
84 PROSPECTIVE FUNDING IMPACT STATEMENT: SOLID WASTE
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties ------General rates, uniform annual general charges, rates penalties
Targeted rates 5,645 5,881 6,256 6,478 6,714 6,967 7,241 7,536 7,854 8,199 8,573 Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 3,007 3,085 3,171 3,251 3,336 3,425 3,524 3,631 3,747 3,873 4,010 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 42 5 5 5 4 4 4 3 3 3 3 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 8,694 8,971 9,432 9,734 10,054 10,396 10,769 11,170 11,604 12,075 12,586 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 6,158 6,043 6,286 6,443 6,611 6,796 6,992 7,206 7,441 7,692 7,966 Payments to staff and suppliers
Finance Costs 799 678 615 470 340 180 - - - - - Finance Costs
Internal charges and overheads applied 276 283 310 323 310 313 314 314 318 328 341 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 7,233 7,004 7,211 7,236 7,261 7,289 7,306 7,520 7,759 8,020 8,307 Total Applications of Operating Funding
u lu efi it e atin undin 1,461 1,967 2,221 2,498 2,793 3,107 3,463 3,650 3,845 4,055 4,279 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand 765 ------to meet additional demand to improve levels of service - 761 278 17 17 29 - - - - - to improve levels of service to replace existing assets ------to replace existing assets
n ea e de ea e in e e e - - - - - - - n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 765 282 278 18 18 28 - - - - - Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
85 4. WASTEWATER
WHAT WE DO AND WHY
Wastewater management is all about keeping our District safe, healthy and clean. Collectively our population produces an enormous amount of wastewater every year. Our job is to develop and manage the systems to collect this wastewater, and treat and dispose of it in a way that meets a range of legal standards. This protects the health and wellbeing of our communities, and the environment. u a te ate net e e a e tem m i e nine a te ate tem and t eatment lant and e e wastewater from over 23,000 connections across the District. We also provide a network of 56 public toilets which contribute to the health of visitors and tourists as well as the local community. Potential negative effects The cost of providing wastewater services may be prohibitive to some parties, thus affecting economic growth. Our Development Contributions Policy aims to ensure that these costs are appropriately allocated between the existing community and the incoming growth community. Pollution of beaches and recreational areas, discharges of sewage and its contaminants to air, land and water affect the environment and public health and are unacceptable to our community. Council has developed its Wastewater capital works programme to address the effects of sewer spills and put in place processes u a t e e tified e ati n and maintenan e amme t e e e ti e mana ement t e a te ate tem We ensure compliance with resource consent conditions so that adverse effects to the environment are avoided, mitigated or remedied. Much of the Waste and Drainage Department’s work involves extensive consultation with the community, and cultural issues are taken into consideration during associated decision-making processes
CONTRIBUTION TO COMMUNITY OUTCOMES
CLEAN, HEALTHY AND VALUED ENVIRONMENT By treating wastewater to agreed standards, discharges from wastewater treatment plants have no detrimental environmental impact. VIBRANT AND HEALTHY COMMUNITIES Appropriate collection, treatment and disposal of sewage assists our community to be healthy by avoiding exposure to potential health risks. WELL MANAGED GROWTH t i u ted t u a iate lannin me ani m t en u e t e i i n u fi ient and a iate wastewater systems for current and future communities. High Contribution Medium Contribution
86 LEVELS OF SERVICE
al e nment andat e man e ea u e
4.1 Council will collect, treat and dispose of wastewater through a reliable wastewater network which is managed to ensure blockages, breaks or spillages are kept to a minimum.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
4.1.1 m lian e it e it ial ut it e u e n ent di a e New 0 0 0 0 from its sewerage system measured by the number of: MPM a abatement notices infringement notices enforcement orders, and d convictions.
4.1.2 The number of dry weather sewerage overflows from the TA’s sewerage New ≤1.35 ≤1.35 ≤1.35 ≤1.35 system, expressed per 1000 sewerage connections to that sewerage MPM system.
4.1.3 Residents’ satisfaction with sewerage reticulation, treatment and disposal 70% 70% 70% 70% 70% services.
4.1.4 The total number of complaints received by the TA about any of the New ≤20 ≤20 ≤20 ≤20 following: MPM a sewage odour sewerage system faults sewerage system blockages; and d the TA’s response to issues with its sewerage system expressed per 1000 connections to the TA’s sewerage system.
4.1.5 Where the TA attends to sewerage overflows resulting from a blockage or New other fault in the TA’s sewerage system, the following median response MPM times measured:
a attendan e time m t e time t at t e e ei e n tifi ati n t t e New ≤1 hr ≤1 hr ≤1 hr ≤1 hr time that service personnel reach the site; and MPM
e luti n time m t e time t at t e e ei e n tifi ati n t t e New ≤7 hrs ≤7 hrs ≤7 hrs ≤7 hrs time t at e i e e nnel nfi m e luti n t e l a e t e MPM fault.
4.2 Council will provide well maintained and accessible public toilets in high use areas.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
4.2.1 Residents satisfaction with public toilets. ≥75% ≥75% ≥75% ≥75% ≥75%
Changes to levels of service No level of service targets have changed for Wastewater since the 2014-15 Annual Plan. In reviewing the levels of service we took into account our current targets and reviewed them along with the mandatory measures to ensure a robust set of targets against which to measure our performance. Where a mandatory measure was similar to an existing one we removed the old one, while ensuring that this would not represent any drop in overall performance in this area.
87 PROSPECTIVE FUNDING IMPACT STATEMENT: WASTEWATER
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties ------General rates, uniform annual general charges, rates penalties
Targeted rates 14,926 15,979 16,815 17,180 18,122 19,142 20,248 21,448 22,752 24,175 25,729 Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 895 945 1,066 1,093 1,121 1,152 1,185 1,221 1,260 1,303 1,349 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 564 605 616 625 637 651 665 665 653 676 702 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 16,385 17,529 18,497 18,898 19,880 20,945 22,098 23,334 24,665 26,154 27,780 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 4,791 5,026 5,306 5,522 5,968 6,156 6,380 6,916 7,353 7,816 7,960 Payments to staff and suppliers
Finance Costs 1,775 1,828 1,901 1,406 1,269 1,412 1,341 1,171 1,348 1,460 1,534 Finance Costs
Internal charges and overheads applied 1,019 1,251 1,369 1,415 1,381 1,394 1,395 1,395 1,413 1,460 1,510 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 7,585 8,105 8,576 8,343 8,618 8,962 9,116 9,482 10,114 10,736 11,004 Total Applications of Operating Funding
u lu efi it e atin undin 8,800 9,424 9,921 10,555 11,262 11,983 12,982 13,852 14,551 15,418 16,776 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n 756 654 660 666 672 678 684 691 697 704 711 e el ment and finan ial nt i uti n
n ea e de ea e in de t 2,649 3,937 2,807 2,455 n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 3,327 4,634 3,511 3,166 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand 6,550 1,492 41 42 43 1,157 2,410 639 5,263 532 - to meet additional demand
to improve levels of service 1,360 2,989 349 315 1,459 9,176 2,086 4,203 9,212 5,067 10,499 to improve levels of service
to replace existing assets 157 3,222 9,577 2,319 6,975 5,036 7,390 7,268 4,793 13,575 9,652 to replace existing assets
n ea e de ea e in e e e - 146 277 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 8,067 5,420 9,899 2,821 8,754 15,310 11,826 11,757 19,185 18,929 19,942 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
88 PROSPECTIVE FUNDING IMPACT STATEMENT: WASTEWATER
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties ------General rates, uniform annual general charges, rates penalties
Targeted rates 14,926 15,979 16,815 17,180 18,122 19,142 20,248 21,448 22,752 24,175 25,729 Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 895 945 1,066 1,093 1,121 1,152 1,185 1,221 1,260 1,303 1,349 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 564 605 616 625 637 651 665 665 653 676 702 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 16,385 17,529 18,497 18,898 19,880 20,945 22,098 23,334 24,665 26,154 27,780 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 4,791 5,026 5,306 5,522 5,968 6,156 6,380 6,916 7,353 7,816 7,960 Payments to staff and suppliers
Finance Costs 1,775 1,828 1,901 1,406 1,269 1,412 1,341 1,171 1,348 1,460 1,534 Finance Costs
Internal charges and overheads applied 1,019 1,251 1,369 1,415 1,381 1,394 1,395 1,395 1,413 1,460 1,510 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 7,585 8,105 8,576 8,343 8,618 8,962 9,116 9,482 10,114 10,736 11,004 Total Applications of Operating Funding
u lu efi it e atin undin 8,800 9,424 9,921 10,555 11,262 11,983 12,982 13,852 14,551 15,418 16,776 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n 756 654 660 666 672 678 684 691 697 704 711 e el ment and finan ial nt i uti n
n ea e de ea e in de t 2,649 3,937 2,807 2,455 n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 3,327 4,634 3,511 3,166 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand 6,550 1,492 41 42 43 1,157 2,410 639 5,263 532 - to meet additional demand to improve levels of service 1,360 2,989 349 315 1,459 9,176 2,086 4,203 9,212 5,067 10,499 to improve levels of service to replace existing assets 157 3,222 9,577 2,319 6,975 5,036 7,390 7,268 4,793 13,575 9,652 to replace existing assets
n ea e de ea e in e e e - 146 277 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 8,067 5,420 9,899 2,821 8,754 15,310 11,826 11,757 19,185 18,929 19,942 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
89 5. STORMWATER
WHAT WE DO AND WHY
Rainfall varies widely in our District and through the seasons, sometimes flooding, sometimes in drought. We provide stormwater drainage systems that drain water from public and private property, to minimise flooding and the harm it does to people and to property. We manage the city’s 11 major stormwater catchments and those in 17 smaller settlements. Part of our job is also to predict and cater for growth and other community concerns so to help with this we develop Catchment ana ement lan Although much of our work focuses on flood protection, managing stormwater quality is becoming a closer focus for our work. Potential negative effects Where there are inadequate stormwater services there is the potential for increases to flood damage to property, incurring t and in ea in in u an e emium edu e t e im a t t i un il identifie l d u e ti le e tie t u Catchment Management and District Plans, and monitors all instances of flooding of habitable floors. n additi n t e in u fi ient t eatment t m ate a t e tential t im a t ad e el n t e en i nment un il ld t e necessary resource consents for stormwater discharges and these are monitored for compliance. Catchment Management Plans and Environmental Engineering Standards identify issues and specify treatment, respectively, in relation to Stormwater activities.
CONTRIBUTION TO COMMUNITY OUTCOMES
GROWING RESILIENT ECONOMY Effective stormwater infrastructure allows the District’s economic activities to continue to operate in all but extreme storm events. CLEAN, HEALTHY AND VALUED ENVIRONMENT Environmental impacts of stormwater runoff are managed through resource consents and impacts of development are mitigated through Catchment Management Plans and Environmental Engineering Standards. VIBRANT AND HEALTHY COMMUNITIES Effective stormwater infrastructure reduces the risk of health issues arising from ponding water and flooding. WELL MANAGED GROWTH t i u ted t u a iate lannin me ani m t en u e t e i i n u fi ient and a iate stormwater systems for the existing and growth communities. High Contribution Medium Contribution
90 LEVELS OF SERVICE
al e nment andat e man e ea u e
5.1 Council will provide a stormwater network that minimises flood risks and environmental impacts.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
5.1.1 Compliance with the TA’s resource consents for discharge from its New 0 0 0 0 stormwater system, measured by the number of: MPM a abatement notices infringement notices enforcement orders; and d convictions received by the TA in relation to those resource consents
5.1.2 Residents’ satisfaction with stormwater drainage service. ≥70% ≥70% ≥70% ≥70% ≥70%
5.1.3 The number of complaints received by a TA about the performance of its New ≤400 ≤400 ≤400 ≤400 stormwater system, expressed per 1000 properties connected to the TA’s MPM stormwater system.
5.1.4 a e num e l din e ent t at u in a te it ial aut it di t i t New 0 0 0 0 ea l din e ent t e num e a ita le l a e ted MPM Expressed per 1000 properties connected to the TA’s stormwater system.
5.1.5 The median response time to attend a flooding event, measured from the New ≤1 hr ≤1 hr ≤1 hr ≤1 hr time t at t e e ei e n tifi ati n t t e time t at e i e e nnel MPM reach the site.
Changes to levels of service No level of service targets have changed for Stormwater since the 2014-15 Annual Plan. Recent changes to the LGA require all Councils to report on a number of mandatory performance measures. In reviewing the levels of service we took into account our current targets and reviewed them along with the mandatory measures to ensure a robust set of targets against which to measure our performance. Where a mandatory measure was similar to an existing one we removed the old one, while ensuring that this would not represent any drop in overall performance in this area.
91 PROSPECTIVE FUNDING IMPACT STATEMENT: STORMWATER
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 4,976 327 1,782 1,890 1,954 2,007 2,845 3,004 2,922 4,982 4,863 General rates, uniform annual general charges, rates penalties
Targeted rates ------Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 6 6 6 6 7 7 7 7 7 8 8 Fees and charges
Internal charges and overheads recovered - 711 755 779 769 780 789 798 813 836 904 Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 62 95 95 95 95 95 95 95 95 95 95 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 5,044 1,139 2,638 2,770 2,825 2,889 3,736 3,904 3,837 5,920 5,870 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 592 510 742 816 840 865 893 924 957 992 1,031 Payments to staff and suppliers
Finance Costs 135 ------Finance Costs
Internal charges and overheads applied 401 1,183 1,261 1,303 1,282 1,300 1,314 1,327 1,351 1,390 1,489 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 1,128 1,693 2,002 2,119 2,122 2,165 2,207 2,251 2,308 2,382 2,520 Total Applications of Operating Funding
u lu efi it e atin undin 3,916 636 651 703 724 1,529 1,653 1,529 3,539 3,350 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t - 1,254 ------ n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding - 1,254 ------Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand 782 ------to meet additional demand
to improve levels of service 3,134 3,220 636 652 703 723 1,529 1,653 1,529 3,538 3,350 to improve levels of service
to replace existing assets ------to replace existing assets
n ea e de ea e in e e e - - - - - - 1 - n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 3,916 700 636 651 703 724 1,529 1,653 1,529 3,539 3,350 Total Applications of Capital Funding
u lu efi it a ital undin 554 u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
92 PROSPECTIVE FUNDING IMPACT STATEMENT: STORMWATER
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 4,976 327 1,782 1,890 1,954 2,007 2,845 3,004 2,922 4,982 4,863 General rates, uniform annual general charges, rates penalties
Targeted rates ------Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 6 6 6 6 7 7 7 7 7 8 8 Fees and charges
Internal charges and overheads recovered - 711 755 779 769 780 789 798 813 836 904 Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 62 95 95 95 95 95 95 95 95 95 95 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 5,044 1,139 2,638 2,770 2,825 2,889 3,736 3,904 3,837 5,920 5,870 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 592 510 742 816 840 865 893 924 957 992 1,031 Payments to staff and suppliers
Finance Costs 135 ------Finance Costs
Internal charges and overheads applied 401 1,183 1,261 1,303 1,282 1,300 1,314 1,327 1,351 1,390 1,489 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 1,128 1,693 2,002 2,119 2,122 2,165 2,207 2,251 2,308 2,382 2,520 Total Applications of Operating Funding
u lu efi it e atin undin 3,916 636 651 703 724 1,529 1,653 1,529 3,539 3,350 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t - 1,254 ------ n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding - 1,254 ------Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand 782 ------to meet additional demand to improve levels of service 3,134 3,220 636 652 703 723 1,529 1,653 1,529 3,538 3,350 to improve levels of service to replace existing assets ------to replace existing assets
n ea e de ea e in e e e - - - - - - 1 - n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 3,916 700 636 651 703 724 1,529 1,653 1,529 3,539 3,350 Total Applications of Capital Funding
u lu efi it a ital undin 554 u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
93 6. FLOOD PROTECTION & CONTROL WORKS
WHAT WE DO AND WHY
The Hikurangi Swamp Scheme helps to minimise flooding across the 5,600 hectares of farmland within the Hikurangi Swamp area. The aim of the Scheme is to protect the farming productivity of land within the swamp area. This is highly productive a i ultu al land t at ene ate n ide a le e n mi enefit t t e e i n e a e e n i le mana in e atin and maintaining this Hikurangi Scheme to ensure the required environmental, cultural and economic results are achieved. The Scheme is funded by targeted rates from properties within the Scheme area. Potential Significant Negative Effects Flood protection primarily covers the Hikurangi Swamp Scheme which has little riparian cover, and has the potential to increase sedimentation and nutrient loadings into waterways. To restore habitat and riparian margins in this area, Council has a Riparian and Oxbow Management Plan detailing the required remedial works. e i u an i am eme al im a t n t e nati e fi ulati n e ifi all eel e entin a ie t u t eam and downstream migration. Eel are an important cultural value to local iwi. Council is preparing a Fishery Management Plan and is actively engaged with local iwi and other stakeholders on a wider catchment basis.
CONTRIBUTION TO COMMUNITY OUTCOMES
GROWING RESILIENT ECONOMY The flood protection activity provides protection to pastoral farming land and provides resilience following flood events to an area of highly productive land. High Contribution Medium Contribution
94 LEVELS OF SERVICE
al e nment andat e man e ea u e 6.1 Council will provide a reliable and sustainable flood protection scheme which is managed to mitigate flooding within the Hikurangi Swamp Scheme area to an acceptable level.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
6.1.1 The major flood protection and control works that are maintained, repaired New Yes Yes Yes Yes and ene ed t t e e tanda d defined in t e l al aut it ele ant MPM lannin d ument u a it et ana ement lan annual amme
6.1.2 The number of infringement or abatement notices issued by Northland 0 0 0 0 0 Regional Council in relation to the scheme consent.
Changes to levels of service No level of service targets have changed for Flood Protection and Control since the 2014-15 Annual Plan. Recent changes to the LGA require all Councils to report on a number of mandatory performance measures. In reviewing the levels of service we took into account our current targets and reviewed them along with the mandatory measures to ensure a robust set of targets against which to measure our performance. Where a mandatory measure was similar to an existing one we removed the old one, while ensuring that this would not represent any drop in overall performance in this area.
95 PROSPECTIVE FUNDING IMPACT STATEMENT: FLOOD PROTECTION & CONTROL WORKS
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties ------General rates, uniform annual general charges, rates penalties
Targeted rates 820 888 959 1,036 1,119 1,208 1,305 1,410 1,522 1,644 1,776 Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 42 43 73 75 77 79 81 84 87 89 92 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 9 1 1 1 1 ------ al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 871 932 1,033 1,112 1,197 1,287 1,386 1,494 1,609 1,733 1,868 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 610 649 735 781 792 816 864 869 899 958 969 Payments to staff and suppliers
Finance Costs 186 112 109 100 86 65 47 33 - - - Finance Costs
Internal charges and overheads applied ------Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 796 761 844 881 878 881 911 902 899 958 969 Total Applications of Operating Funding
u lu efi it e atin undin 75 170 189 231 319 406 475 592 710 775 899 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t 286 n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 286 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand ------to meet additional demand
to improve levels of service ------to improve levels of service
to replace existing assets 361 30 - 105 - - 115 355 - 127 - to replace existing assets
n ea e de ea e in e e e - ------ n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 361 - - 105 - - 115 355 - 127 - Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
96 PROSPECTIVE FUNDING IMPACT STATEMENT: FLOOD PROTECTION & CONTROL WORKS
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties ------General rates, uniform annual general charges, rates penalties
Targeted rates 820 888 959 1,036 1,119 1,208 1,305 1,410 1,522 1,644 1,776 Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 42 43 73 75 77 79 81 84 87 89 92 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 9 1 1 1 1 ------ al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 871 932 1,033 1,112 1,197 1,287 1,386 1,494 1,609 1,733 1,868 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 610 649 735 781 792 816 864 869 899 958 969 Payments to staff and suppliers
Finance Costs 186 112 109 100 86 65 47 33 - - - Finance Costs
Internal charges and overheads applied ------Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 796 761 844 881 878 881 911 902 899 958 969 Total Applications of Operating Funding
u lu efi it e atin undin 75 170 189 231 319 406 475 592 710 775 899 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t 286 n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 286 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand ------to meet additional demand to improve levels of service ------to improve levels of service to replace existing assets 361 30 - 105 - - 115 355 - 127 - to replace existing assets
n ea e de ea e in e e e - ------ n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 361 - - 105 - - 115 355 - 127 - Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
97 7. COMMUNITY FACILITIES & SERVICES
Our community facilities and services are based around the more recreational, cultural and social aspects of life in our District, the things that make Whangarei a great place to work, live, play and invest. They provide an additional quality of life aspect to the undati n d in a t u tu e ad a te mana ement ate u l d aina e al ead e ed m en i ne u in to libraries, parks and reserves, community property and venues and events, these facilities have been part of our work for decades.
PARKS & RECREATION WHAT WE DO AND WHY
Council provides parks and reserves for sport and recreation, landscapes and green places that are restful and enhance the visual amenity, and burial amenities. We also provide public amenities in order to support the health and wellbeing of the community, for the comfort and convenience of visitors and residents, and protect and enhance key historic features. u a and a iated a ilitie a e i nifi ant a et i a e u ed and a e iated e ident and i it e e all objective is to create, operate, maintain, renew and dispose of assets to provide for existing and future users in the most cost- effective manner. The Reserves Act 1977 requires land administered by Council to be managed in accordance with the Act. Among other requirements, Council is to prepare and approve reserve management plans to set the direction for the management and control of administered reserves. Ongoing management is then to be consistent with those plans, or the Act in lieu of a plan. Potential negative effects The space used for public spaces like parks and recreation could otherwise be used for residential or commercial development. However, Council mitigates this through it’s land acquisition and management approach which is aligned with the District Plan, ensuring the appropriate location of parks and reserve areas
CONTRIBUTION TO COMMUNITY OUTCOMES
EASY AND SAFE TO MOVE AROUND Parks & Recreation provides various walking and cycling tracks for both recreational and transportation purposes. Tracks and open spaces are planned with a focus on the safety of the community. GROWING RESILIENT ECONOMY This outcome is supported through the provision of suitable recreation and leisure opportunities that assist in attracting new residents as well as visitors to the District. CLEAN, HEALTHY AND VALUED ENVIRONMENT The Department undertakes a range of activities that support the environment such as weed, pest and animal control activities, as well as working closely with other agencies to support their environmental protection work programmes. VIBRANT AND HEALTHY COMMUNITIES The provision of suitable recreation and leisure opportunities such as sports parks and playgrounds allows our communities to engage in healthy activities as well as enjoy positive experiences in the natural environment. Major facilities provide central points of contact for various community groups and clubs.
98 WELL MANAGED GROWTH t i u ted t u a iate lannin me ani m t en u e u fi ient and a iate e eati n and leisure opportunities exist for current and future communities. High Contribution Medium Contribution LEVELS OF SERVICE
7.1 Council will provide and maintain outdoor sporting facilities to support and promote active recreation of the community through participation in both organised and informal sporting activities.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
7.1.1 Sports parks will be provided to meet the community’s needs.* ≥166 hrs ≥177 hrs ≥175 hrs ≥177 hrs ≥181 hrs
7.2 Council will provide and maintain a range of reserves, including built facilities, to meet the recreational and leisure needs of the community as well as protecting and enhancing the natural environment for its intrinsic value.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
7.2.1 Average satisfaction rating of sports codes with sports parks. ≥80% ≥80% ≥82% ≥82% ≥84%
7.2.2 Residents’ satisfaction with neighbourhood, civic space, cultural heritage, ≥80% ≥80% ≥82% ≥82% ≥86% public gardens, and recreational and ecological linkages parks.
7.3 Council will convert or upgrade identified existing open spaces to provide a wider range of high quality recreational and leisure opportunities within the District for our community and visitors.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
7.3.1 Hectares of open space land transformed.** 0.37ha 1.2 ha 0.5 ha 0.5 ha 0.5 ha
7.3.2 e ident e e ti n t at un il i ma in u fi ient in e tment in New ≥70% ≥70% ≥70% ≥70% developing a strong sense of place for the District and its communities.
7.4 Council will provide and maintain cemeteries and a crematorium in a satisfactory manner.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
7.4.1 Residents’ satisfaction with cemeteries. ≥90% ≥90% ≥90% ≥90% ≥90%
* This measure is expressed as the number of hours available at sports parks per 1000 members of the District population during the winter season.
** This measure relates to tracks constructed on, or connecting, reserve land in addition to any walk and cycleway tracks funded by the transportation activity.
Changes to levels of service un il e e t i nifi ant in e tment in t field and a ilitie e t e a t e ea t in ea e t e num e u available at sports parks during the winter season. For this reason measure 7.1.1 has been adjusted upwards slightly. In future years the combination of funding levels for renewals and population growth will result in fairly consistent performance The amount of open space transformed for recreation and leisure purposes upon planned capital works. The target for 7.3.1 is therefore aligned with the Parks & Recreation capital works programme. Council wants to know whether the public believes there is enough investment in ’sense of place’ work, and on that basis a new mea u e a een in luded in t e
99 LIBRARIES WHAT WE DO AND WHY
Libraries provide the people in our community with opportunities for life-long learning, access to information, leisure, and reading. Public libraries provide free and open access to knowledge and services to all residents regardless of income, race or age. They are a neutral, respected gateway to information and a safe place between work and home that offers equal access for all community members. Most local authorities provide a public library service. The Local Government Act 2002 requires that where such a service is provided, residents are able to join the library free of charge. Whangarei Libraries also administer grants for, and offers professional support to, nine volunteer libraries in the District. Potential negative effects tential ne ati e e e t a e een identified i a ie
CONTRIBUTION TO COMMUNITY OUTCOMES
GROWING RESILIENT ECONOMY i a ie nt i ute i nifi antl t a ell edu ated mmunit i u t a in e ilient e n m i standard of community facilities such as libraries assists in attracting new people to the District. VIBRANT AND HEALTHY COMMUNITIES Libraries are key community facilities providing equitable access to the opportunity of life-long learning as well as ulfillin lei u e and e eati nal need High Contribution Medium Contribution
LEVELS OF SERVICE
7.5 Council will provide library services to the District via the Central Library, the mobile and branch libraries.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
7.5.1 Percentage of population who have used a library in the past year. ≥60% ≥60% ≥60% ≥60% ≥60%
7.5.2 e ident ati a ti n it t e e u e ma a ine et t e ≥95% ≥95% ≥95% ≥95% ≥95% library service provides.
Changes to levels of service No level of service targets have changed for Libraries since the 2014-15 Annual Plan.
100 COMMUNITY PROPERTY WHAT WE DO AND WHY
Council is committed to providing appropriate pensioner housing and other community venues for use by community groups, clubs and organisations to meet. The aim is to provide a property service that helps to build strong and connected communities. Where community halls are not Council-owned, operational grants may be provided to assist in the maintenance of these important community facilities. Potential negative effects tential ne ati e e e t a e een identified mmunit e t
CONTRIBUTION TO COMMUNITY OUTCOMES
VIBRANT AND HEALTHY COMMUNITIES The provision of pensioner housing supports our elderly population. Community halls contribute to the foundation of the community because they give people a place to meet and feel connected. High Contribution Medium Contribution
LEVELS OF SERVICE
7.6 Council will provide rental accommodation that meets the specific needs of eligible elderly members of the community.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
7.6.1 Percentage occupancy rate of pensioner housing. ≥98% ≥98% ≥98% ≥98% ≥98%
7.6.2 Pensioner housing residents’ satisfaction with the standard of New ≥80% ≥80% ≥80% ≥80% accommodation.
Changes to levels of service Over the life of the LTP Council plans to invest substantial funds in the renewal and maintenance of the pensioner housing portfolio, and has added the performance measure 7.6.2 to determine residents’ levels of satisfaction with their accommodation.
101 COMMUNITY SERVICES WHAT WE DO AND WHY
The aim of our Community Services work is to enhance and strengthen our communities, ensuring that people feel safe and able t a ti i ate in a ti itie t at enefit e e ne t e mmunit a et a ti itie and ime e enti n amme in with the young, the elderly and disabled as well as supporting community based organisations and managing funding processes. Potential negative effects tential ne ati e e e t a e een identified mmunit e i e
CONTRIBUTION TO COMMUNITY OUTCOMES
CLEAN, HEALTHY AND VALUED ENVIRONMENT e m ti n a fiti em al a ell a mmunit de el ment in identified mmunitie en an e u physical environment. VIBRANT AND HEALTHY COMMUNITIES All of the Department’s work is based on the support and creation of vibrant and healthy communities High Contribution Medium Contribution
LEVELS OF SERVICE
7.7 Council will promote and support community safety.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
7.7.1 Percentage of residents within the community who feel safe within the ≥85% ≥85% ≥85% ≥85% ≥85% District.
7.8 Council will support the District’s social and cultural wellbeing through its involvement in activities and programmes which support and develop the community.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
7.8.1 e enta e ant a li ant unde tand and a e ati fied it t e ≥80% ≥80% ≥80% ≥80% ≥80% grants application process.
7.9 Council is actively involved in youth, positive ageing and accessibility sector issues.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
7.9.1 Percentage of people active in these sectors who believe Council is ≥80% ≥80% ≥80% ≥80% ≥80% achieving strong engagement.
Changes to levels of service No level of service targets have changed for Community Services since the 2014-15 Annual Plan.
102 VENUES AND EVENTS WHAT WE DO AND WHY
Our Venues & Events Department provides venues and manages and produces events that contribute to the cultural and social fabric of our community. Events are held at Council-owned or controlled venues or other locations throughout the District and help to attract both domestic and international visitors to the District. This helps to create a vibrant District with varied recreational opportunities for residents and visitors who contribute to the District’s economy. Toll Stadium and Forum North include rooms and venues for hire to the local community as well as local, national and international commercial users. The events catered for include theatre, meetings, sports events, weddings and conferences. Potential negative effects tential ne ati e e e t a e een identified enue ent
CONTRIBUTION TO COMMUNITY OUTCOMES
GROWING RESILIENT ECONOMY Attracting events supports our economy by enhancing revenue streams, including spending from outside the District. VIBRANT AND HEALTHY COMMUNITIES Varied and numerous events in the District support communities to participate and engage at both the local and District level, which further supports social cohesion High Contribution Medium Contribution
LEVELS OF SERVICE
7.10 Our venues will encourage high use and satisfaction levels.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
7.10.1 Number of attendees over all facilities will increase annually. ≥3% ≥3% ≥3% ≥3% ≥3%
7.10.2 Satisfaction with the quality of venues and events. ≥80% ≥80% ≥80% ≥80% ≥80%
Changes to levels of service No level of service targets have changed for Venues & Events since the 2014-15 Annual Plan.
103 PROSPECTIVE FUNDING IMPACT STATEMENT: COMMUNITY FACILITIES & SERVICES
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 19,375 22,962 23,672 25,008 27,290 31,334 33,215 35,571 37,826 39,278 42,267 General rates, uniform annual general charges, rates penalties
Targeted rates 49 ------Targeted rates
Subsidies and grants for operating purposes 166 57 59 60 62 63 65 67 69 72 74 Subsidies and grants for operating purposes
Fees and charges 1,814 2,088 2,139 2,191 2,235 2,297 2,356 2,424 2,491 2,566 2,640 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 572 531 545 561 576 591 608 625 642 659 676 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 21,976 25,638 26,415 27,820 30,163 34,285 36,244 38,688 41,027 42,575 45,657 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 13,928 15,800 16,309 16,622 17,236 17,822 18,087 19,102 20,158 20,687 21,426 Payments to staff and suppliers
Finance Costs 3,786 4,013 4,328 4,662 4,890 4,965 5,163 5,309 5,130 4,962 4,444 Finance Costs
Internal charges and overheads applied 4,304 4,725 5,184 5,368 5,215 5,264 5,267 5,263 5,329 5,507 5,659 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 22,018 24,538 25,821 26,652 27,341 28,051 28,517 29,674 30,617 31,156 31,529 Total Applications of Operating Funding
u lu efi it e atin undin 1,100 594 1,168 2,822 6,234 7,727 9,013 10,411 11,419 14,128 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n 118 103 104 105 106 107 108 109 110 111 112 e el ment and finan ial nt i uti n
n ea e de ea e in de t 7,368 4,026 1,805 9,284 4,467 160 723 4,231 n ea e de ea e in de t
Gross proceeds from sale of assets - - 5,250 ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 7,486 4,129 7,159 9,389 4,573 267 831 4,340 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand 1,470 505 - - - 610 - 774 3,283 1,070 472 to meet additional demand
to improve levels of service 5,949 3,980 2,267 4,395 4,081 2,838 981 2,444 722 2,167 969 to improve levels of service
to replace existing assets 3,135 6,290 4,724 4,053 3,975 4,371 8,249 10,188 5,167 4,054 6,383 to replace existing assets
n ea e de ea e in e e e 762 2,109 2,302 4,471 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 7,444 5,230 7,753 10,557 7,395 6,501 8,558 13,353 8,854 9,593 12,295 Total Applications of Capital Funding
u lu efi it a ital undin 42 u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
104 PROSPECTIVE FUNDING IMPACT STATEMENT: COMMUNITY FACILITIES & SERVICES
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 19,375 22,962 23,672 25,008 27,290 31,334 33,215 35,571 37,826 39,278 42,267 General rates, uniform annual general charges, rates penalties
Targeted rates 49 ------Targeted rates
Subsidies and grants for operating purposes 166 57 59 60 62 63 65 67 69 72 74 Subsidies and grants for operating purposes
Fees and charges 1,814 2,088 2,139 2,191 2,235 2,297 2,356 2,424 2,491 2,566 2,640 Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 572 531 545 561 576 591 608 625 642 659 676 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 21,976 25,638 26,415 27,820 30,163 34,285 36,244 38,688 41,027 42,575 45,657 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 13,928 15,800 16,309 16,622 17,236 17,822 18,087 19,102 20,158 20,687 21,426 Payments to staff and suppliers
Finance Costs 3,786 4,013 4,328 4,662 4,890 4,965 5,163 5,309 5,130 4,962 4,444 Finance Costs
Internal charges and overheads applied 4,304 4,725 5,184 5,368 5,215 5,264 5,267 5,263 5,329 5,507 5,659 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 22,018 24,538 25,821 26,652 27,341 28,051 28,517 29,674 30,617 31,156 31,529 Total Applications of Operating Funding
u lu efi it e atin undin 1,100 594 1,168 2,822 6,234 7,727 9,013 10,411 11,419 14,128 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n 118 103 104 105 106 107 108 109 110 111 112 e el ment and finan ial nt i uti n
n ea e de ea e in de t 7,368 4,026 1,805 9,284 4,467 160 723 4,231 n ea e de ea e in de t
Gross proceeds from sale of assets - - 5,250 ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding 7,486 4,129 7,159 9,389 4,573 267 831 4,340 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand 1,470 505 - - - 610 - 774 3,283 1,070 472 to meet additional demand to improve levels of service 5,949 3,980 2,267 4,395 4,081 2,838 981 2,444 722 2,167 969 to improve levels of service to replace existing assets 3,135 6,290 4,724 4,053 3,975 4,371 8,249 10,188 5,167 4,054 6,383 to replace existing assets
n ea e de ea e in e e e 762 2,109 2,302 4,471 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 7,444 5,230 7,753 10,557 7,395 6,501 8,558 13,353 8,854 9,593 12,295 Total Applications of Capital Funding
u lu efi it a ital undin 42 u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
105 8. ECONOMIC GROWTH
WHAT WE DO AND WHY
This part of our work focuses on encouraging people to work, live, play and invest in our District to improve our District’s income me ti du t e in e t in e n mi de el ment t ide l al e n mi leade i in lla ati n with key partners such as central government, the community and industry, ultimately to improve people’s standard of living with better employment opportunities, amenities, facilities and improved wellbeing. Potential negative effects Economic growth which leads to increased industrial activity may cause some negative effect on our environment. The potential environmental impacts are addressed and mitigated by provisions within Council’s District Plan.
CONTRIBUTION TO COMMUNITY OUTCOMES
GROWING RESILIENT ECONOMY The Department’s activities in this area include attracting increased visitor numbers which will facilitate further growth. VIBRANT AND HEALTHY COMMUNITIES Economic growth enriches people’s lives through employment and business opportunities. High Contribution Medium Contribution
106 LEVELS OF SERVICE
8.1 Council will promote and provide a service which encourages, enables and facilitates economic activity leading to economic growth in the District.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
8.1.1 Whangarei District’s GDP growth compared to the average of like regional ≥1.5% ≥2% ≥2% ≥2% ≥2% economies.
8.2 Council will provide, through the Whangarei Visitor Centres, an accurate booking and information service which influences more visitors to stay longer and spend more.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
8.2.1 Visitor spend on bookings through the Whangarei visitor centres will show ≥1.5% ≥2% ≥2% ≥2% ≥2% an increase each year.
8.2.2 Total visitor guest nights in the Whangarei District will show an increase in ≥1.5% ≥2% ≥2% ≥2% ≥2% each year.
Changes to levels of service While Council cannot drive economic growth results by itself, it does have a critical role in providing the environment that enables them. In this Plan we have retained all existing economic growth measures and have revised all targets up slightly to reflect positive economic changes in the District over the past few years.
107 PROSPECTIVE FUNDING IMPACT STATEMENT: ECONOMIC GROWTH
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 3,031 2,614 2,633 2,687 2,731 2,841 2,816 2,863 2,930 3,006 3,088 General rates, uniform annual general charges, rates penalties
Targeted rates ------Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges ------Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 578 1,148 1,166 1,189 1,214 1,240 1,269 1,300 1,333 1,370 1,409 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 3,609 3,762 3,799 3,876 3,945 4,081 4,085 4,163 4,263 4,376 4,497 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 2,388 2,249 2,291 2,335 2,423 2,492 2,547 2,625 2,709 2,781 2,877 Payments to staff and suppliers
Finance Costs 304 363 363 363 363 363 363 363 363 363 363 Finance Costs
Internal charges and overheads applied 901 1,019 1,119 1,152 1,131 1,143 1,145 1,145 1,160 1,200 1,224 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 3,593 3,631 3,773 3,850 3,917 3,998 4,055 4,133 4,232 4,344 4,464 Total Applications of Operating Funding
u lu efi it e atin undin 16 131 26 26 28 83 30 30 31 32 33 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t ------ n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding ------Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand - 20 5 5 5 6 6 6 6 6 6 to meet additional demand
to improve levels of service ------to improve levels of service
to replace existing assets 16 110 20 21 23 78 24 24 25 26 27 to replace existing assets
n ea e de ea e in e e e - 1 1 ------ n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 16 131 26 26 28 83 30 30 31 32 33 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
108 PROSPECTIVE FUNDING IMPACT STATEMENT: ECONOMIC GROWTH
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 3,031 2,614 2,633 2,687 2,731 2,841 2,816 2,863 2,930 3,006 3,088 General rates, uniform annual general charges, rates penalties
Targeted rates ------Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges ------Fees and charges
Internal charges and overheads recovered ------Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 578 1,148 1,166 1,189 1,214 1,240 1,269 1,300 1,333 1,370 1,409 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 3,609 3,762 3,799 3,876 3,945 4,081 4,085 4,163 4,263 4,376 4,497 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 2,388 2,249 2,291 2,335 2,423 2,492 2,547 2,625 2,709 2,781 2,877 Payments to staff and suppliers
Finance Costs 304 363 363 363 363 363 363 363 363 363 363 Finance Costs
Internal charges and overheads applied 901 1,019 1,119 1,152 1,131 1,143 1,145 1,145 1,160 1,200 1,224 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 3,593 3,631 3,773 3,850 3,917 3,998 4,055 4,133 4,232 4,344 4,464 Total Applications of Operating Funding
u lu efi it e atin undin 16 131 26 26 28 83 30 30 31 32 33 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t ------ n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding ------Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand - 20 5 5 5 6 6 6 6 6 6 to meet additional demand to improve levels of service ------to improve levels of service to replace existing assets 16 110 20 21 23 78 24 24 25 26 27 to replace existing assets
n ea e de ea e in e e e - 1 1 ------ n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 16 131 26 26 28 83 30 30 31 32 33 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
109 9. PLANNING & REGULATORY SERVICES As a Territorial Authority, we are required to undertake planning, monitoring and enforcement activities that meet the requirements of a wide range of statutes. This includes issuing resource and building consents and ensuring they meet required conditions, providing health and liquor licences, monitoring and enforcing bylaws such as animal and noise control, health, liquor and parking and undertaking District Planning and non-statutory strategic planning. The functions within this activity are covered by four separate departments: Policy & Monitoring, Resource Consents, Building Compliance and Regulatory Services.
POLICY & MONITORING WHAT WE DO AND WHY
The population of Whangarei is growing, creating demand for the strategic management of the District’s resources. Policy & Monitoring develops long term, medium and short term strategies and policies that assist Council in setting future directions for the resources it manages. Other aspects support this through land use planning, environmental regulation, monitoring and reporting. Potential negative effects The stringent requirements in the District Plan may inhibit economic activity. In order to ensure that this is not overly prohibitive the District Plan is reviewed within statutory timeframes to reflect the changing nature of our District.
CONTRIBUTION TO COMMUNITY OUTCOMES
EASY AND SAFE TO MOVE AROUND The Department’s planning activities ensure appropriate support and planning for all transportation modes throughout the District. GROWING RESILIENT ECONOMY Effective District planning enables the sustainable and economic development of the District. CLEAN, HEALTHY AND VALUED ENVIRONMENT The District Plan is a key vehicle for environmental protection mechanisms in the District. VIBRANT AND HEALTHY COMMUNITIES e u t lannin un ti n u a u an de i n and ime e enti n t u en i nmental de i n supports positive environments for our communities to live in. WELL MANAGED GROWTH The Sustainable Futures 30/50 Growth Strategy is a key tool of Council to support well-managed growth. High Contribution Medium Contribution
110 LEVELS OF SERVICE
9.1 Develop, implement and maintain a District Plan in accordance with the RMA whilst reflecting the desires of the community and issues of sustainability.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
9.1.1 Plan changes are researched, proposed, consulted and reported on as 95% 100% 100% 100% 100% required by Council in accordance with the relevant statutory requirements. Changes to levels of service This measure has been increased to 100% to reflect the need to meet statutory requirements at all times.
RESOURCE CONSENTS WHAT WE DO AND WHY
Our goal mirrors that of the Resource Management Act. We aim to promote the sustainable management of natural and physical resources in the District. We do this by processing resource consents and associated applications. This includes processing resource consents within statutory timeframes, consistently and at a fair and reasonable cost; e in t a al u di i i n e tifi ate and it in tatut time ame n i tentl and at a ai and reasonable cost; and providing consistent and timely advice on District Plan and Development Contribution matters. Potential negative effects The costs and possible delays associated with processing Resource Consent applications may impact on economic growth. To lessen the impact we aim to meet strict processing deadlines and have systems in place to identify problems early.
CONTRIBUTION TO COMMUNITY OUTCOMES
CLEAN, HEALTHY AND VALUED ENVIRONMENT e e u e n ent e e u e t e l n te m maintenan e and te ti n i nifi ant tand u outstanding landscapes and other natural features that contribute to a valued environment. VIBRANT AND HEALTHY COMMUNITIES Ensuring compliance with District Plan rules and conditions of resource consents contributes to the community’s Sense of Place and enjoyment of life whilst protecting our physical environment High Contribution Medium Contribution
LEVELS OF SERVICE
9.2 Council will process resource consent and associated applications within statutory timeframes.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
9.2.1 e enta e n n n tified e u e n ent a li ati n e ed it in ≥95% ≥95% ≥95% ≥95% ≥95% statutory timeframes.
9.2.2 Percentage of Section 223 and Section 224 applications for subdivision ≥95% ≥95% ≥95% ≥95% ≥95% consents under the RMA within statutory timeframes. Changes to levels of service No level of service targets have changed for Resource Consents since the 2014-15 Annual Plan.
111 BUILDING COMPLIANCE WHAT WE DO AND WHY
Our Building Compliance Department ensures that buildings in our District are designed and constructed to agreed standards and quality. The healthy design and construction of our homes is important to us and has a direct bearing on our residents’ health and perspective on life. We promote the safe and sanitary use of living and public facilities, as well as access for people with disabilities. We will take action against owners of buildings that pose a risk to the general safety of the public. e e a tment al a e n i ilitie m nit in uildin t at ma e ea t ua e ne t en u e identified i a e addressed. Potential negative effects The costs and possible delays associated with processing Building Consents may impact on economic growth. To lessen the impact we aim to meet strict processing deadlines and have systems in place to identify problems early.
CONTRIBUTION TO COMMUNITY OUTCOMES
CLEAN, HEALTHY AND VALUED ENVIRONMENT uildin nt l en u e a te ut ut a e nfined it in tanda d t en u e n ad e e im a t n u ate a and natural environment. VIBRANT AND HEALTHY COMMUNITIES Ensuring that our homes are constructed for durability and health supports our communities. WELL MANAGED GROWTH Building compliance ensures that buildings, both commercial and residential, are durable for future residents. High Contribution Medium Contribution
LEVELS OF SERVICE
9.3 Council will responsively and accurately manage the building consents and compliance process.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
9.3.1 Percentage of building consents applications processed within statutory ≥98% ≥96% ≥96% ≥96% ≥96% timeframes.
9.3.2 Percentage of inspections completed within two days. New ≥95% ≥95% ≥95% ≥95%
Changes to levels of service 9.3.2 has been added to reflect the importance of completing inspections quickly. Council aims to complete inspections within two working days.
112 REGULATORY SERVICES WHAT WE DO AND WHY
The Regulatory Services Department undertakes monitoring and enforcement functions across a wide cross-section of statutes focusing on the protection of community health, safety and amenity. We have three teams: • Environmental Health are responsible for health and liquor licensing and monitoring • Compliance are responsible for enforcement work under the Resource Management Act 1991 and the Building Act 2004. This includes monitoring land use and building consent conditions, and investigating complaints about non-compliance with regulations and bylaws • Environmental Monitoring and Noise and Animal Management are responsible for services relating to dog and stock control, parking enforcement, excessive noise control and general bylaw enforcement. Potential negative effects The costs and possible delays associated with processing applications may impact on economic growth. To lessen the impact we aim to meet strict processing deadlines and have systems in place to identify problems early.
CONTRIBUTION TO COMMUNITY OUTCOMES
CLEAN, HEALTHY AND VALUED ENVIRONMENT VIBRANT AND HEALTHY COMMUNITIES The enforcement of bylaws and consent conditions The enforcement of bylaws particularly in the areas ensures that our environment is protected as planned. of animal and noise control ensures the safety of the people in our communities. High Contribution Medium Contribution
LEVELS OF SERVICE
9.4 Council will ensure responses to complaints relating to parking, excessive noise, dogs, stock and bylaws are carried out within contracted timeframes.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
9.4.1 Percentage of complaints responded to within contracted timeframes. ≥85% ≥85% ≥85% ≥85% ≥85%
9.5 Council will ensure compliance with land-use consents by monitoring consents issued.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
9.5.1 Percentage of land-use consent conditions monitored within 12 months of 100% 100% 100% 100% 100% the consent being granted.
9.6 Council will protect, promote and monitor public health in the areas of food premises and liquor licensing.
PERFORMANCE MEASURE 2014-15 2015-16 2016-17 2017-18 2018-25 TARGET TARGET TARGET TARGET TARGET
9.6.1 Percentage of food and liquor licensed premises inspected annually. 100% 100% 100% 100% 100%
Changes to levels of service No level of service targets have changed for Regulatory Services since the 2014-15 Annual Plan.
113 PROSPECTIVE FUNDING IMPACT STATEMENT: PLANNING & REGULATORY SERVICES
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 6,371 7,486 7,776 8,203 8,631 7,594 7,189 7,348 7,419 7,629 7,765 General rates, uniform annual general charges, rates penalties
Targeted rates ------Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 5,884 6,125 6,615 7,033 7,230 7,434 7,685 7,876 8,133 8,449 8,697 Fees and charges
Internal charges and overheads recovered - 2,099 2,225 2,297 2,256 2,290 2,316 2,342 2,386 2,456 2,513 Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 1,596 1,832 1,869 1,891 1,900 1,915 1,931 1,948 1,970 1,997 2,023 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 13,851 17,542 18,485 19,424 20,017 19,233 19,121 19,514 19,908 20,531 20,998 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 8,253 9,126 9,274 9,828 9,726 9,936 9,809 10,195 10,469 10,798 11,075 Payments to staff and suppliers
Finance Costs ------Finance Costs
Internal charges and overheads applied 5,489 8,416 9,211 9,598 9,213 9,298 9,312 9,319 9,439 9,733 9,923 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 13,742 17,542 18,485 19,426 18,939 19,234 19,121 19,514 19,908 20,531 20,998 Total Applications of Operating Funding
u lu efi it e atin undin 109 - - - 1,078 ------ u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t ------ n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding ------Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand ------to meet additional demand
to improve levels of service 109 ------to improve levels of service
to replace existing assets - - - - 1,078 ------to replace existing assets
n ea e de ea e in e e e ------ n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 109 - - - 1,078 ------Total Applications of Capital Funding
u lu efi it a ital undin - - - ------ u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
114 PROSPECTIVE FUNDING IMPACT STATEMENT: PLANNING & REGULATORY SERVICES
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 6,371 7,486 7,776 8,203 8,631 7,594 7,189 7,348 7,419 7,629 7,765 General rates, uniform annual general charges, rates penalties
Targeted rates ------Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 5,884 6,125 6,615 7,033 7,230 7,434 7,685 7,876 8,133 8,449 8,697 Fees and charges
Internal charges and overheads recovered - 2,099 2,225 2,297 2,256 2,290 2,316 2,342 2,386 2,456 2,513 Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 1,596 1,832 1,869 1,891 1,900 1,915 1,931 1,948 1,970 1,997 2,023 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 13,851 17,542 18,485 19,424 20,017 19,233 19,121 19,514 19,908 20,531 20,998 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 8,253 9,126 9,274 9,828 9,726 9,936 9,809 10,195 10,469 10,798 11,075 Payments to staff and suppliers
Finance Costs ------Finance Costs
Internal charges and overheads applied 5,489 8,416 9,211 9,598 9,213 9,298 9,312 9,319 9,439 9,733 9,923 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 13,742 17,542 18,485 19,426 18,939 19,234 19,121 19,514 19,908 20,531 20,998 Total Applications of Operating Funding
u lu efi it e atin undin 109 - - - 1,078 ------ u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t ------ n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding ------Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand ------to meet additional demand to improve levels of service 109 ------to improve levels of service to replace existing assets - - - - 1,078 ------to replace existing assets
n ea e de ea e in e e e ------ n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 109 - - - 1,078 ------Total Applications of Capital Funding
u lu efi it a ital undin - - - ------ u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
115 SUPPORT SERVICES
Support services are those activities within Council focussed on supporting the nine activity areas so that they are best positioned to deliver their various goods and services to the community. The following provides a brief background to the services provided. Māori Relationships Customer Services Human Resources The Resource Management Act 1991 This activity deals with the everyday Human Resources works across the and t e al e nment t customer interactions across Council. We business supporting and leading through la e li ati n n un il also look beyond the immediate queries/ day-to-day transactions, including to establish more formal, meaningful current needs of our customers to recruitment and payroll, to longer-term and u taina le elati n i it i identify ways of providing service which strategic matters such as employee Iwi, Hapu and Maatawaka organisations exceed those customers’ expectations. development and change management. throughout the District. The Department’s vision is twofold: to The Customer First Team supports other have the right people, motivated, engaged e i elati n i e a tment a activities through being able to provide and delivering, and to enable us to attract created to assist Council to meet these a customer viewpoint that assists in the right people into our business, it is obligations. further understanding of our customer’s important that Council is perceived as a needs. Call Centre staff are focused on To achieve these objectives, staff work good place to work. reducing the number of queries making within the organisation to provide their way to other activities by answering training and assist Council staff to build Information Services u t me ue ie at fi t int meaningful and trusting relationships contact. Information Services supports both the it i and t ide ad i e n all technical and informational function matte elatin t i d nami and Financial Services requirements of Council. From the tikanga. The activity is also charged with desktop systems to the management The Financial Services team plays a key e ifi all de el in a u taina le of data and documentation, the stewardship role. It provides support i n mi t ate i utline service provides accurate and up-to- to the organisation to manage and use how Council can work collaboratively date information and readily available it finan ial e u e n a da t da it i ani ati n t nt i ute t technology to ensure all data Council basis, as well as in the long-term. It aims the overall economic growth planned for holds can be easily stored and to provide the organisation with effective the District. accessed, whilst meeting legislative strategy, planning and use, monitoring requirements. Council’s website plays Civil Defence and e tin it finan ial and u ine a vital role as an interactive service for resources. Civil Defence provides emergency providing extensive resources of public mana ement e i e and u al fi e The revenue activity brings together information, documents and publications, services for the District. A comprehensive rates, water billing, accounts receivable n ultati n and ma in in ludin emergency management organisation and receipting functions in one team. The i t i t lan and a a d e la is in place which encompasses the team en u e an e fi ient admini t ati n The service also ensures that the management of the Rural Fire Service and maintenance of property records by underlying structures for the storage and and is focused around the four phases of ensuring property information and the fast retrieval of all corporate data are the emergency management continuum Rating Information Database are kept stable and available 24/7, with the ability n n a t e u edu ti n u t date fi ient illin e e to recover vital systems in the event of eadine e n e and e e e are undertaken for land and water rates a disaster or interruption to services. intention is to encourage greater self- as well as sundry debt and receipting This includes the ongoing development reliance in the community by developing functions for all of Council. Direct debit and enhancement of existing software and maintaining Community Response processing and follow up of overdue systems to enable Council to meet the Plans for prompt and effective recovery in amounts ensures arrears are kept to a growing consumer demands from our the event of a disaster. minimum. District for faster supply and faster access to information.
116 Governance Property (Commercial) Governance assists in organisation-wide The commercial component of Property decision-making, accountability and is responsible for all Council-owned change management. It brings together properties held as investments and able functions from across the business to provide a commercial return to Council, including legal and democracy services, and includes a mix of strategic and strategic planning, communications, non-strategic sites. Strategic investment online content and business analysis. portfolio properties will generally not be sold. Non-strategic properties may be The activity covers core statutory sold, provided due process is followed. functions of Council such as meetings, workshops, agendas and elections under Council-owned forest land has been the legal and democracy arm, and the purchased and planted as a strategic LTP, Annual Plan and Annual Report opportunity to assist with water under statutory planning. These are catchments and return funds on mature communicated to the community through trees being felled and milled. the communications, graphics and online content functions, with business analysis Infrastructure Projects and providing a vehicle for achieving greater Support e fi ien ie a t t e a ti it and Infrastructure Projects and Support the wider organisation. provides technical and administrative support to the Infrastructure and Services group. This includes planning, contract and general administration, asset management systems and databases, project/contract management, and civil defence emergency management.
117 PROSPECTIVE FUNDING IMPACT STATEMENT: SUPPORT SERVICES
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 130 513 637 General rates, uniform annual general charges, rates penalties
Targeted rates ------Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 3,460 3,943 4,217 4,288 4,360 4,445 4,650 4,759 4,851 4,958 5,039 Fees and charges
Internal charges and overheads recovered 16,777 19,348 21,256 22,101 21,313 21,503 21,514 21,504 21,773 22,476 23,049 Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 5,143 3,246 2,574 2,912 2,684 2,742 2,758 4,134 2,886 2,956 3,029 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 25,103 26,667 28,560 29,938 28,143 26,179 26,609 27,872 27,592 28,484 29,430 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 21,950 21,975 22,518 22,641 21,534 21,912 22,350 24,019 23,619 24,519 25,511 Payments to staff and suppliers
Finance Costs - 11 289 586 540 493 445 396 346 294 241 Finance Costs
Internal charges and overheads applied 1,763 1,976 2,199 2,303 2,187 2,200 2,194 2,186 2,209 2,280 2,320 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 23,713 23,962 25,006 25,530 24,261 24,605 24,989 26,601 26,174 27,093 28,072 Total Applications of Operating Funding
u lu efi it e atin undin 1,390 2,705 3,554 4,408 3,882 1,574 1,620 1,271 1,418 1,391 1,358 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t - 200 4,915 5,248 n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding - 200 4,915 5,248 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure
to meet additional demand - 324 128 26 ------to meet additional demand
to improve levels of service 200 1,362 2,424 1,898 1,092 481 502 119 238 177 105 to improve levels of service
to replace existing assets 1,190 2,190 5,914 7,735 1,981 264 272 284 290 299 310 to replace existing assets
n ea e de ea e in e e e - 3 - - - 1 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 1,390 2,905 8,469 9,656 3,073 746 773 403 527 476 416 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
118 PROSPECTIVE FUNDING IMPACT STATEMENT: SUPPORT SERVICES
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
SOURCES OF OPERATING FUNDING SOURCES OF OPERATING FUNDING
General rates, uniform annual general charges, rates penalties 130 513 637 General rates, uniform annual general charges, rates penalties
Targeted rates ------Targeted rates
Subsidies and grants for operating purposes ------Subsidies and grants for operating purposes
Fees and charges 3,460 3,943 4,217 4,288 4,360 4,445 4,650 4,759 4,851 4,958 5,039 Fees and charges
Internal charges and overheads recovered 16,777 19,348 21,256 22,101 21,313 21,503 21,514 21,504 21,773 22,476 23,049 Internal charges and overheads recovered
al aut itie uel ta fine in in ement ee and t e 5,143 3,246 2,574 2,912 2,684 2,742 2,758 4,134 2,886 2,956 3,029 al aut itie uel ta fine in in ement ee and t e receipts receipts
Total Operating Funding 25,103 26,667 28,560 29,938 28,143 26,179 26,609 27,872 27,592 28,484 29,430 Total Operating Funding
APPLICATIONS OF OPERATING FUNDING APPLICATIONS OF OPERATING FUNDING
Payments to staff and suppliers 21,950 21,975 22,518 22,641 21,534 21,912 22,350 24,019 23,619 24,519 25,511 Payments to staff and suppliers
Finance Costs - 11 289 586 540 493 445 396 346 294 241 Finance Costs
Internal charges and overheads applied 1,763 1,976 2,199 2,303 2,187 2,200 2,194 2,186 2,209 2,280 2,320 Internal charges and overheads applied
Other operating funding applications ------Other operating funding applications
Total Applications of Operating Funding 23,713 23,962 25,006 25,530 24,261 24,605 24,989 26,601 26,174 27,093 28,072 Total Applications of Operating Funding
u lu efi it e atin undin 1,390 2,705 3,554 4,408 3,882 1,574 1,620 1,271 1,418 1,391 1,358 u lu efi it e atin undin
SOURCES OF CAPITAL FUNDING SOURCES OF CAPITAL FUNDING
Subsidies and grants for capital expenditure ------Subsidies and grants for capital expenditure
e el ment and finan ial nt i uti n ------ e el ment and finan ial nt i uti n
n ea e de ea e in de t - 200 4,915 5,248 n ea e de ea e in de t
Gross proceeds from sale of assets ------Gross proceeds from sale of assets
Other dedicated capital funding ------Other dedicated capital funding
Lump sum contributions ------Lump sum contributions
Total Sources of Capital Funding - 200 4,915 5,248 Total Sources of Capital Funding
APPLICATIONS OF CAPITAL FUNDING APPLICATIONS OF CAPITAL FUNDING
Capital expenditure Capital expenditure to meet additional demand - 324 128 26 ------to meet additional demand to improve levels of service 200 1,362 2,424 1,898 1,092 481 502 119 238 177 105 to improve levels of service to replace existing assets 1,190 2,190 5,914 7,735 1,981 264 272 284 290 299 310 to replace existing assets
n ea e de ea e in e e e - 3 - - - 1 n ea e de ea e in e e e
n ea e de ea e in e tment ------ n ea e de ea e in e tment
Total Applications of Capital Funding 1,390 2,905 8,469 9,656 3,073 746 773 403 527 476 416 Total Applications of Capital Funding
u lu efi it a ital undin u lu efi it a ital undin
Funding Balance ------Funding Balance
e undin m a t tatement i e ui ed unde t e al e nment t edule and n m t lau e t e al e nment inan ial e tin e ulati n t e t e ea e i d m t and utline un il u e undin and it lan t a l t em ene all e ted untin a ti e d e n t a l t t e e a ati n t e undin m a t tatement a tated in e ti n t e al e nment t e key divergences from GAAP are the non-inclusion of depreciation and the inclusion of internal charges.
119 COUNCIL SUBSIDIARIES CCOS/CCTOS
Whangarei District Council currently operation for the purpose of making a procedures to address any changes to delivers a variety of services through fit an a ei i t i t un il a legislation. un il nt lled ani ati n responsibility for one CCTO: Northland Regional Landfill Council delivers strategic services • t land e i nal andfill imited Limited Partnership (NRLLP) or initiatives through a CCO where it Partnership. considers that this is a more effective, The NRLLP is operated under a limited e fi ient and finan iall ia le ti n Whangarei District Airport partnership agreement between the compared to other means of delivery. The Whangarei District Airport is a fully limited partners Whangarei District un il un il and t land a te e al e nment t serviceable airport for the use of visitors, Limited. The Limited Partnership is define a un il nt lled ani ati n residents and ratepayers, and is required a un il nt lled adin as a company: to meet the needs of scheduled and non- scheduled aviation operators and their ani ati n n eati n a et ned • in which equity securities carrying customers. by Council were sold to the Limited 50% or more of the voting rights at Partnership on a deferred payment basis a meeting of the shareholders of the It is a key activity that standards of over four years. Council’s Prospective company are held by one or more safety are promoted and maintained, Statement of Financial Position records local authorities; or controlled, directly recognising the Civil Aviation Authority Council’s investment in the Limited or indirectly, by one or more local and t e a et and ealt Partnership and the remaining balance of aut itie in i ne m e requirements. the loan for the sale of assets. local authorities have the right, directly The Whangarei District Airport is a Joint The day-to-day operational activities or indirectly, to appoint 50% or more of Venture with the Ministry for Transport. of the Partnership are managed by the directors of the company The principal activity is the provision of Whangarei Waste Limited as general • or an entity in respect of which one or Airport and Landing facilities. Land is partner. The main activity of the more local authorities have, whether or owned 100% by the Crown. Council’s Partnership is to provide waste disposal not jointly with other local authorities ownership consists of 100% of buildings facilities in the Whangarei District and in or persons: and lighting and 50% interest in all other the long-term to undertake post-closure assets, liabilities and net surplus. Council responsibilities after operations at the » control, directly or indirectly, of 50% operates the airport as the Airport u e a andfill ea e or more of the votes at any meeting Authority under the Airport Authorities of the members or controlling body t and it e ti e a e t The scope of activities of the Limited of the entity run the airport in a cost effective and Partnership will be: » have the right, directly or indirectly, e fi ient manne ile meetin ini t • to own and operate the Puwera to appoint 50% or more of the of Transport requirements. Day-to-day andfill in ludin aula e trustees, directors, or managers. management is effected by way of a conforming waste from Re:Sort management contract with Northland e u e e e a t t e Whangarei District Council has Aviation Limited. u e a andfill e n i ilit fi e KEY PERFORMANCE TARGETS AND • to undertake post-closure • Whangarei Waste Ltd MEASURES responsibilities including capping, • Springs Flat Contractors Ltd • e ate t finan ial ud et contouring and monitoring of the u e a andfill a te e ati n at t e • Whangarei Art Museum Trust • meet e eed i t e tifi ati n andfill ea e • Northland Event Centre Trust. Standards as laid down by the CAA for the Airport and reported by random • to own, operate and manage Re:Sort • Whangarei District Airport audit. RRP • Whangarei Quarry Gardens Trust. • To conduct a survey of airport • to conduct such other waste collection users and determine their views on and waste management and Each of these Council Controlled minimisation activities as the Parties Organisations are required to complete a Airport facilities and future facility developments. agree shall be dealt with by the Limited Statement of Intent unless an exemption Partnership from time to time. under the Local Government Act 2002 • To complete the introduction of the has been granted. Whangarei Waste Ltd, new CAA requirement to implement a KEY PERFORMANCE TARGETS AND Springs Flat Contractors Ltd, Whangarei Safety Management System. MEASURES Art Museum Trust, Northland Event i a fit mme ial Centre Trust and Whangarei Quarry • To manage the completion of the airport upgrade project. entity operating in a very competitive Gardens Trust are exempt entities. environment. Commercial sensitivity A Council Controlled Trading Organisation • To implement necessary changes precludes the publication of business i a un il nt lled to Health and Safety policies and performance measures. Organisation that operates a trading
120 LOCAL GOVERNMENT
The LGFA is not a subsidiary of Council. with the projected reduction outlined in It is a new entity, jointly owned by the the previous 2014-15 SOI. Crown and 40 local authorities including Although issuance and operating Whangarei District Council. The LGFA expenses are forecast to rise, LGFA’s raises debt funding either domestically finan ial iti n i e e ted t e and/or offshore in either NZ dollars u fi ientl t n t ena le a edu ti n or foreign currency, and provides debt in the base margin per the targets above, funding to New Zealand local authorities. subject to shareholder consultation on The LGFA will operate with the primary future options for capital structure and objective of optimising debt funding the liquidity facility. terms and conditions for participating LGFA’s annual issuance and operating Local Authorities. Among other things expenses for the period to: this includes: • 30 June 2016 will be less than $5.65 • providing debt to participating local million authorities at the lowest possible interest rates commensurate with the • 30 June 2017 will be less than $6.58 relevant maturity million • making longer-term borrowing • 30 June 2018 will be less than $7.06 available to participating local million. authorities Total lending to Participating Local • enhancing the certainty of access Authorities at: to debt markets for participating • 30 June 2016 will be at least $5,760 local authorities, subject always to million operating in accordance with sound business practice. • 30 June 2017 will be at least $6,970 million KEY PERFORMANCE TARGETS AND MEASURES • 30 June 2018 will be at least $7,610 million. The LGFA’s average cost of funds on debt issued relative to the average cost Savings on borrowing costs for Council of funds for New Zealand Government borrowers: Securities for the 12 month period to: • LGFA will demonstrate the savings • 30 June 2016 will be less than 0.50% to Council borrowers achieved in the higher ele ant finan ial ea and m a ed t e i u finan ial ea • 30 June 2017 will be less than 0.50% higher • 30 June 2018 will be less than 0.50% higher. The average margin above LGFA’s cost of funds charged to the highest rated Participating Local Authorities for the period to: • 30 June 2016 will be no more than 0.10% • 30 June 2017 will be no more than 0.10% • 30 June 2018 will be no more than 0.10%. n elati n t t e finan ial ea t e fi e edu ti n t in a e margin on long dated borrowing is in line
121 CAPITAL PROJECTS
PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
TRANSPORTATION TRANSPORTATION
Bridge Strengthening HPMV Bridge Strengthening - 1,273 1,346 ------2,619 HPMV Bridge Strengthening Bridge Strengthening
Coastal Protection Coastal Protection Structures - 78 78 80 83 84 86 89 91 94 97 860 Coastal Protection Structures Coastal Protection
Cycleways – Unsubsidised Cycleways – Unsubsidised - 105 61 - - - 553 689 473 366 - 2,247 Cycleways – Unsubsidised Cycleways – Unsubsidised Programmed Work Programmed Work
Cycleways – Subsidised Cycleways – Programmed 580 2,119 2,043 2,107 318 653 335 - - - - 8,155 Cycleways – Programmed Cycleways – Subsidised Work Work
Footpaths Footpaths New - - - 104 106 109 112 254 - - - 685 Footpaths New Footpaths
Footpaths Renewals - 168 333 340 348 357 366 377 388 400 413 3,490 Footpaths Renewals
Kamo Business District Kamo Business District ------279 287 - - - 566 Kamo Business District Kamo Business District Upgrades Upgrades Upgrades Upgrades
Land for Roads Land for Roads 500 ------500 Land for Roads Land for Roads
Mill-Nixon-Kensington Mill Rd/Nixon St/Kamo Rd 1,017 4,560 ------5,577 Mill Rd/Nixon St/Kamo Rd Mill-Nixon-Kensington Intersection Intersection
Minor Improvements to Minor Improvements to - 1,911 1,938 2,395 2,559 2,459 2,917 2,998 3,088 3,184 3,195 26,644 Minor Improvements to Minor Improvements to Roading Network Network Network Roading Network
Parking Parking Renewals - 170 122 124 127 131 134 138 142 146 151 1,385 Parking Renewals Parking
Replacement of Bridges & Replacement of Bridges & - 402 464 ------866 Replacement of Bridges & Replacement of Bridges & Other Structures Other Structures Other Structures Other Structures
Roading Drainage Drainage Renewals - 428 434 444 493 506 519 534 550 567 586 5,061 Drainage Renewals Roading Drainage
Roading Resilience Resilience Improvements ------328 - - 328 Resilience Improvements Roading Resilience Improvements Improvements
Roading Subdivision Works Subdivision Works - - - - 27 27 28 29 30 30 31 202 Subdivision Works Roading Subdivision Works Contribution Contribution Contribution Contribution
Seal Extensions Seal Extensions – House - 200 203 207 212 218 - - - - - 1,040 Seal Extensions – House Seal Extensions Frontage Sealing Frontage Sealing
Seal Extensions – - 700 ------700 Seal Extensions – Unsubsidised Unsubsidised
Seal Extensions – Wright/ - 1,500 1,545 1,601 ------4,646 Seal Extensions – Wright/ McCardle McCardle
Sealed Road Pavement Sealed Road Pavement - 3,650 7,081 6,840 7,004 7,179 8,713 8,957 9,226 9,512 9,826 77,988 Sealed Road Pavement Sealed Road Pavement Rehabilitation Rehabilitation Rehabilitation Rehabilitation
Sealed Road Resurfacing Sealed Road Resurfacing - 3,605 3,655 3,736 4,216 4,321 3,575 3,675 3,785 3,902 4,031 38,501 Sealed Road Resurfacing Sealed Road Resurfacing
Sense of Place Lower James St Upgrade - - - 518 ------518 Lower James St Upgrade Sense of Place
Southern Entrance Southern Entrance 642 ------642 Southern Entrance Southern Entrance Intersection Improvement Intersection Improvement Intersection Improvement Intersection Improvement
Streetlights LED Streetlight Upgrades - - - - - 2,175 1,676 - - - - 3,851 LED Streetlight Upgrades Streetlights
Structures Component Structures Component - 628 562 429 907 925 782 804 828 854 882 7,601 Structures Component Structures Component Replacement Replacement Replacement Replacement
a fi i n i nal a fi i n i nal - 511 518 529 690 707 726 746 769 793 819 6,808 a fi i n i nal a fi i n i nal Renewals Renewals
Transportation Planning Transportation Planning ------76 - - - 76 Transportation Planning Transportation Planning Studies & Strategies Studies & Strategies Studies & Strategies Studies & Strategies
Unsealed Road Metalling Unsealed Road Metalling - 1,064 1,079 1,102 1,337 1,371 1,408 1,447 1,490 1,537 1,587 13,422 Unsealed Road Metalling Unsealed Road Metalling
Urban Intersection Upgrades Urban Intersection Upgrades - - - - - 1,088 1,365 746 3,548 610 - 7,357 Urban Intersection Upgrades Urban Intersection Upgrades
Total Capital Expenditure Transportation 2,739 23,072 21,462 20,556 18,427 22,310 23,574 21,846 24,737 21,995 21,618 222,335 Total Capital Expenditure Transportation
122 CAPITAL PROJECTS
PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
TRANSPORTATION TRANSPORTATION
Bridge Strengthening HPMV Bridge Strengthening - 1,273 1,346 ------2,619 HPMV Bridge Strengthening Bridge Strengthening
Coastal Protection Coastal Protection Structures - 78 78 80 83 84 86 89 91 94 97 860 Coastal Protection Structures Coastal Protection
Cycleways – Unsubsidised Cycleways – Unsubsidised - 105 61 - - - 553 689 473 366 - 2,247 Cycleways – Unsubsidised Cycleways – Unsubsidised Programmed Work Programmed Work
Cycleways – Subsidised Cycleways – Programmed 580 2,119 2,043 2,107 318 653 335 - - - - 8,155 Cycleways – Programmed Cycleways – Subsidised Work Work
Footpaths Footpaths New - - - 104 106 109 112 254 - - - 685 Footpaths New Footpaths
Footpaths Renewals - 168 333 340 348 357 366 377 388 400 413 3,490 Footpaths Renewals
Kamo Business District Kamo Business District ------279 287 - - - 566 Kamo Business District Kamo Business District Upgrades Upgrades Upgrades Upgrades
Land for Roads Land for Roads 500 ------500 Land for Roads Land for Roads
Mill-Nixon-Kensington Mill Rd/Nixon St/Kamo Rd 1,017 4,560 ------5,577 Mill Rd/Nixon St/Kamo Rd Mill-Nixon-Kensington Intersection Intersection
Minor Improvements to Minor Improvements to - 1,911 1,938 2,395 2,559 2,459 2,917 2,998 3,088 3,184 3,195 26,644 Minor Improvements to Minor Improvements to Roading Network Network Network Roading Network
Parking Parking Renewals - 170 122 124 127 131 134 138 142 146 151 1,385 Parking Renewals Parking
Replacement of Bridges & Replacement of Bridges & - 402 464 ------866 Replacement of Bridges & Replacement of Bridges & Other Structures Other Structures Other Structures Other Structures
Roading Drainage Drainage Renewals - 428 434 444 493 506 519 534 550 567 586 5,061 Drainage Renewals Roading Drainage
Roading Resilience Resilience Improvements ------328 - - 328 Resilience Improvements Roading Resilience Improvements Improvements
Roading Subdivision Works Subdivision Works - - - - 27 27 28 29 30 30 31 202 Subdivision Works Roading Subdivision Works Contribution Contribution Contribution Contribution
Seal Extensions Seal Extensions – House - 200 203 207 212 218 - - - - - 1,040 Seal Extensions – House Seal Extensions Frontage Sealing Frontage Sealing
Seal Extensions – - 700 ------700 Seal Extensions – Unsubsidised Unsubsidised
Seal Extensions – Wright/ - 1,500 1,545 1,601 ------4,646 Seal Extensions – Wright/ McCardle McCardle
Sealed Road Pavement Sealed Road Pavement - 3,650 7,081 6,840 7,004 7,179 8,713 8,957 9,226 9,512 9,826 77,988 Sealed Road Pavement Sealed Road Pavement Rehabilitation Rehabilitation Rehabilitation Rehabilitation
Sealed Road Resurfacing Sealed Road Resurfacing - 3,605 3,655 3,736 4,216 4,321 3,575 3,675 3,785 3,902 4,031 38,501 Sealed Road Resurfacing Sealed Road Resurfacing
Sense of Place Lower James St Upgrade - - - 518 ------518 Lower James St Upgrade Sense of Place
Southern Entrance Southern Entrance 642 ------642 Southern Entrance Southern Entrance Intersection Improvement Intersection Improvement Intersection Improvement Intersection Improvement
Streetlights LED Streetlight Upgrades - - - - - 2,175 1,676 - - - - 3,851 LED Streetlight Upgrades Streetlights
Structures Component Structures Component - 628 562 429 907 925 782 804 828 854 882 7,601 Structures Component Structures Component Replacement Replacement Replacement Replacement
a fi i n i nal a fi i n i nal - 511 518 529 690 707 726 746 769 793 819 6,808 a fi i n i nal a fi i n i nal Renewals Renewals
Transportation Planning Transportation Planning ------76 - - - 76 Transportation Planning Transportation Planning Studies & Strategies Studies & Strategies Studies & Strategies Studies & Strategies
Unsealed Road Metalling Unsealed Road Metalling - 1,064 1,079 1,102 1,337 1,371 1,408 1,447 1,490 1,537 1,587 13,422 Unsealed Road Metalling Unsealed Road Metalling
Urban Intersection Upgrades Urban Intersection Upgrades - - - - - 1,088 1,365 746 3,548 610 - 7,357 Urban Intersection Upgrades Urban Intersection Upgrades
Total Capital Expenditure Transportation 2,739 23,072 21,462 20,556 18,427 22,310 23,574 21,846 24,737 21,995 21,618 222,335 Total Capital Expenditure Transportation
123 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
WATER WATER
Mill-Nixon-Kensington Mill Rd/Nixon St/Kamo Rd – - 50 ------50 Mill Rd/Nixon St/Kamo Rd – Mill-Nixon-Kensington Intersection Water Water Intersection
Wairua River Source and Wairua River Source & ------922 6,562 7,484 Wairua River Source & Wairua River Source and Treatment Treatment at Poroti Treatment at Poroti Treatment
Water Meters Water Meter Renewals - 350 359 368 162 222 378 331 612 507 827 4,116 Water Meter Renewals Water Meters
Water Reservoirs am e e i i ad ------2,280 - 2,280 am e e i i ad Water Reservoirs Renewal Renewal
Maungakaramea Reservoir ------598 598 Maungakaramea Reservoir – New – New
Reservoir Rehabilitation – - 300 - 315 - 334 - 355 - 380 - 1,684 Reservoir Rehabilitation – Programmed Work Programmed Work
Three Mile Bush Reservoir ------1,204 - - - - 1,204 Three Mile Bush Reservoir – New – New
Water Reticulation Bulk Meters & Pressure - - - - - 78 - - - - - 78 Bulk Meters & Pressure Water Reticulation Management Management
Minor Projects – Emergency - 250 308 315 324 334 344 355 367 380 394 3,371 Minor Projects – Emergency Works Works
Onerahi Trunk Main ------2,953 2,953 Onerahi Trunk Main Replacement Replacement
Otaika Valley to City trunk – ------2,367 - 2,533 - 4,900 Otaika Valley to City trunk – Main Stages Main Stages
Pipeline Bridges – - 20 21 21 22 22 - - - - - 106 Pipeline Bridges – Programmed Work Programmed Work
Poroti Trunk Main Upgrade ------1,224 - - 1,224 Poroti Trunk Main Upgrade
Reticulation – Programmed - 720 605 654 2,049 2,235 2,867 3,971 3,979 3,732 5,236 26,048 Reticulation – Programmed Work Work
Ruddells Raw Water Line - - - 1,052 ------1,052 Ruddells Raw Water Line Renewal Renewal
Station Road Trunk Main - - - - - 923 - - - - - 923 Station Road Trunk Main Capacity Upgrade Capacity Upgrade
Vinegar Hill Trunk Main ------1,520 - 1,520 Vinegar Hill Trunk Main Upgrade Upgrade
Waipu Trunk Main Upgrade ------803 - - - - 803 Waipu Trunk Main Upgrade
Water Treatment Plants Emergency Generators – New - 200 ------200 Emergency Generators – New Water Treatment Plants
Water Treatment Plant & - 300 308 315 324 334 573 592 612 634 656 4,648 Water Treatment Plant & Equipment Replacement Equipment Replacement
Whau Valley Dam Whau Valley Dam Chimney - - - - 2,162 ------2,162 Whau Valley Dam Chimney Whau Valley Dam Improvements Drain Drain Improvements
Whau Valley Water Treatment Whau Valley New Water 1,100 3,000 6,929 7,719 ------18,748 Whau Valley New Water Whau Valley Water Treatment Plant Treatment Plant Treatment Plant Plant
Total Capital Expenditure Water 1,100 5,190 8,530 10,759 5,043 4,482 6,169 7,971 6,794 12,888 17,226 86,152 Total Capital Expenditure Water
SOLID WASTE SOLID WASTE
Pohe Island Gas Management Pohe Island – Gas - 282 278 17 17 29 - - - - - 623 Pohe Island – Gas Pohe Island Gas Management Management Management
Transfer Station Upgrades Rural transfer stations- 479 ------479 Rural transfer stations- Transfer Station Upgrades upgrades upgrades
Total Capital Expenditure Solid Waste 479 282 278 17 17 29 - - - - - 1,102 Total Capital Expenditure Solid Waste
124 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
WATER WATER
Mill-Nixon-Kensington Mill Rd/Nixon St/Kamo Rd – - 50 ------50 Mill Rd/Nixon St/Kamo Rd – Mill-Nixon-Kensington Intersection Water Water Intersection
Wairua River Source and Wairua River Source & ------922 6,562 7,484 Wairua River Source & Wairua River Source and Treatment Treatment at Poroti Treatment at Poroti Treatment
Water Meters Water Meter Renewals - 350 359 368 162 222 378 331 612 507 827 4,116 Water Meter Renewals Water Meters
Water Reservoirs am e e i i ad ------2,280 - 2,280 am e e i i ad Water Reservoirs Renewal Renewal
Maungakaramea Reservoir ------598 598 Maungakaramea Reservoir – New – New
Reservoir Rehabilitation – - 300 - 315 - 334 - 355 - 380 - 1,684 Reservoir Rehabilitation – Programmed Work Programmed Work
Three Mile Bush Reservoir ------1,204 - - - - 1,204 Three Mile Bush Reservoir – New – New
Water Reticulation Bulk Meters & Pressure - - - - - 78 - - - - - 78 Bulk Meters & Pressure Water Reticulation Management Management
Minor Projects – Emergency - 250 308 315 324 334 344 355 367 380 394 3,371 Minor Projects – Emergency Works Works
Onerahi Trunk Main ------2,953 2,953 Onerahi Trunk Main Replacement Replacement
Otaika Valley to City trunk – ------2,367 - 2,533 - 4,900 Otaika Valley to City trunk – Main Stages Main Stages
Pipeline Bridges – - 20 21 21 22 22 - - - - - 106 Pipeline Bridges – Programmed Work Programmed Work
Poroti Trunk Main Upgrade ------1,224 - - 1,224 Poroti Trunk Main Upgrade
Reticulation – Programmed - 720 605 654 2,049 2,235 2,867 3,971 3,979 3,732 5,236 26,048 Reticulation – Programmed Work Work
Ruddells Raw Water Line - - - 1,052 ------1,052 Ruddells Raw Water Line Renewal Renewal
Station Road Trunk Main - - - - - 923 - - - - - 923 Station Road Trunk Main Capacity Upgrade Capacity Upgrade
Vinegar Hill Trunk Main ------1,520 - 1,520 Vinegar Hill Trunk Main Upgrade Upgrade
Waipu Trunk Main Upgrade ------803 - - - - 803 Waipu Trunk Main Upgrade
Water Treatment Plants Emergency Generators – New - 200 ------200 Emergency Generators – New Water Treatment Plants
Water Treatment Plant & - 300 308 315 324 334 573 592 612 634 656 4,648 Water Treatment Plant & Equipment Replacement Equipment Replacement
Whau Valley Dam Whau Valley Dam Chimney - - - - 2,162 ------2,162 Whau Valley Dam Chimney Whau Valley Dam Improvements Drain Drain Improvements
Whau Valley Water Treatment Whau Valley New Water 1,100 3,000 6,929 7,719 ------18,748 Whau Valley New Water Whau Valley Water Treatment Plant Treatment Plant Treatment Plant Plant
Total Capital Expenditure Water 1,100 5,190 8,530 10,759 5,043 4,482 6,169 7,971 6,794 12,888 17,226 86,152 Total Capital Expenditure Water
SOLID WASTE SOLID WASTE
Pohe Island Gas Management Pohe Island – Gas - 282 278 17 17 29 - - - - - 623 Pohe Island – Gas Pohe Island Gas Management Management Management
Transfer Station Upgrades Rural transfer stations- 479 ------479 Rural transfer stations- Transfer Station Upgrades upgrades upgrades
Total Capital Expenditure Solid Waste 479 282 278 17 17 29 - - - - - 1,102 Total Capital Expenditure Solid Waste
125 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
WASTEWATER WASTEWATER
Laboratory Laboratory Equipment - - 15 19 22 22 23 30 31 32 33 227 Laboratory Equipment Laboratory Renewals & Upgrades Renewals & Upgrades
Laboratory Software Upgrade - - - - 49 ------49 Laboratory Software Upgrade
Public Toilets Public Toilets 9 300 308 315 ------932 Public Toilets Public Toilets
Wastewater Asset Telemetry System Upgrade 78 ------78 Telemetry System Upgrade Wastewater Asset Management Management
Wastewater Assessment - 40 41 42 43 44 46 47 - - - 303 Wastewater Assessment
Wastewater Strategy – 180 ------180 Wastewater Strategy – Programmed Work Programmed Work
Wastewater Strategy Projects - - - - - 92 - - - - - 92 Wastewater Strategy Projects
Whangarei City Wastewater – 1,452 ------1,452 Whangarei City Wastewater – Projects Projects
Wastewater City Service Level Wastewater City Service Level - 1,638 5,042 1,157 4,880 305 - - - - - 13,022 Wastewater City Service Level Wastewater City Service Level Improvements Improvements Improvements Improvements
Wastewater Earthquake Structural Improvements – ------2,533 - 2,533 Structural Improvements – Wastewater Earthquake Assessments EQC Compliance EQC Compliance Assessments
Wastewater Structures - 50 51 32 32 - - - - 2,533 2,379 5,077 Wastewater Structures Earthquake checks Earthquake checks
Wastewater Network Hikurangi Sewer Network - - 3,488 - - 2,225 1,855 - - - - 7,568 Hikurangi Sewer Network Wastewater Network Upgrade Upgrade
Kamo Sewer Capacity - - - - 865 ------865 Kamo Sewer Capacity Increase Increase
Maunu Sewer Capacity ------2,448 2,533 - 4,981 Maunu Sewer Capacity Increase Increase
Ruakaka Rising Main ------1,835 237 - - - 2,072 Ruakaka Rising Main Renewals Renewals
Waipu Cove/Langs Beach - - - - - 556 - - - - 10,499 11,055 Waipu Cove/Langs Beach Network Improvement Network Improvement
Waipu Sewerage Network ------2,651 - 1,589 - 4,240 Waipu Sewerage Network Renewals Renewals
Waipu Trunk Main Upgrades - 2,500 ------2,500 Waipu Trunk Main Upgrades
Whangarei City Wastewater - - - - 541 556 688 710 734 2,525 2,300 8,054 Whangarei City Wastewater Reticulation Renewals Reticulation Renewals
Whangarei City Wastewater ------573 592 612 633 656 3,066 Whangarei City Wastewater Rising Mains – Renewals Rising Mains – Renewals
Whangarei Heads Sewerage - - - - - 3,221 - - 4,631 2,533 - 10,385 Whangarei Heads Sewerage System Upgrade System Upgrade
Wastewater Pump Stations Generator Renewals - - - - 43 ------43 Generator Renewals Wastewater Pump Stations
Hikurangi Wastewater Pumps - - - - - 145 - - - - - 145 Hikurangi Wastewater Pumps Renewals Renewals
Jordan Valley Wastewater - 500 ------500 Jordan Valley Wastewater Pump Station Upgrade Pump Station Upgrade
Motor Starter Assessment & - 15 15 16 16 17 17 18 18 19 20 171 Motor Starter Assessment & Upgrades Upgrades
Ngunguru Wastewater Pumps ------459 - - - - 459 Ngunguru Wastewater Pumps Renewals Renewals
Oakura Pump Station ------159 - - 159 Oakura Pump Station Renewals Renewals
126 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
WASTEWATER WASTEWATER
Laboratory Laboratory Equipment - - 15 19 22 22 23 30 31 32 33 227 Laboratory Equipment Laboratory Renewals & Upgrades Renewals & Upgrades
Laboratory Software Upgrade - - - - 49 ------49 Laboratory Software Upgrade
Public Toilets Public Toilets 9 300 308 315 ------932 Public Toilets Public Toilets
Wastewater Asset Telemetry System Upgrade 78 ------78 Telemetry System Upgrade Wastewater Asset Management Management
Wastewater Assessment - 40 41 42 43 44 46 47 - - - 303 Wastewater Assessment
Wastewater Strategy – 180 ------180 Wastewater Strategy – Programmed Work Programmed Work
Wastewater Strategy Projects - - - - - 92 - - - - - 92 Wastewater Strategy Projects
Whangarei City Wastewater – 1,452 ------1,452 Whangarei City Wastewater – Projects Projects
Wastewater City Service Level Wastewater City Service Level - 1,638 5,042 1,157 4,880 305 - - - - - 13,022 Wastewater City Service Level Wastewater City Service Level Improvements Improvements Improvements Improvements
Wastewater Earthquake Structural Improvements – ------2,533 - 2,533 Structural Improvements – Wastewater Earthquake Assessments EQC Compliance EQC Compliance Assessments
Wastewater Structures - 50 51 32 32 - - - - 2,533 2,379 5,077 Wastewater Structures Earthquake checks Earthquake checks
Wastewater Network Hikurangi Sewer Network - - 3,488 - - 2,225 1,855 - - - - 7,568 Hikurangi Sewer Network Wastewater Network Upgrade Upgrade
Kamo Sewer Capacity - - - - 865 ------865 Kamo Sewer Capacity Increase Increase
Maunu Sewer Capacity ------2,448 2,533 - 4,981 Maunu Sewer Capacity Increase Increase
Ruakaka Rising Main ------1,835 237 - - - 2,072 Ruakaka Rising Main Renewals Renewals
Waipu Cove/Langs Beach - - - - - 556 - - - - 10,499 11,055 Waipu Cove/Langs Beach Network Improvement Network Improvement
Waipu Sewerage Network ------2,651 - 1,589 - 4,240 Waipu Sewerage Network Renewals Renewals
Waipu Trunk Main Upgrades - 2,500 ------2,500 Waipu Trunk Main Upgrades
Whangarei City Wastewater - - - - 541 556 688 710 734 2,525 2,300 8,054 Whangarei City Wastewater Reticulation Renewals Reticulation Renewals
Whangarei City Wastewater ------573 592 612 633 656 3,066 Whangarei City Wastewater Rising Mains – Renewals Rising Mains – Renewals
Whangarei Heads Sewerage - - - - - 3,221 - - 4,631 2,533 - 10,385 Whangarei Heads Sewerage System Upgrade System Upgrade
Wastewater Pump Stations Generator Renewals - - - - 43 ------43 Generator Renewals Wastewater Pump Stations
Hikurangi Wastewater Pumps - - - - - 145 - - - - - 145 Hikurangi Wastewater Pumps Renewals Renewals
Jordan Valley Wastewater - 500 ------500 Jordan Valley Wastewater Pump Station Upgrade Pump Station Upgrade
Motor Starter Assessment & - 15 15 16 16 17 17 18 18 19 20 171 Motor Starter Assessment & Upgrades Upgrades
Ngunguru Wastewater Pumps ------459 - - - - 459 Ngunguru Wastewater Pumps Renewals Renewals
Oakura Pump Station ------159 - - 159 Oakura Pump Station Renewals Renewals
127 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Overflow Storage Tank – Land - - - - - 526 - - - - - 526 Overflow Storage Tank – Land Purchase Purchase
Portland Wastewater Pumps - - - - 21 ------21 Portland Wastewater Pumps Renewals Renewals
Pump Station Upgrades - 350 359 368 378 389 401 414 428 443 459 3,989 Pump Station Upgrades
Purchase New Portable - - 41 ------41 Purchase New Portable Generator Generator
Remote Monitoring ------355 - - - 355 Remote Monitoring
Ruakaka Pump Station - - - - 54 56 57 59 61 63 66 416 Ruakaka Pump Station Renewals Renewals
Ruakaka South Pump Units ------428 317 131 876 Ruakaka South Pump Units Renewals Renewals
Tutukaka Wastewater Pumps ------127 - 127 Tutukaka Wastewater Pumps Renewals Renewals
Whangarei City Wastewater ------230 237 245 253 262 1,226 Whangarei City Wastewater Pumps Renewals Pumps Renewals
Wastewater Treatment Plants Consent-Related Plant - - - - - 556 2,086 2,309 2,134 - - 7,085 Consent-Related Plant Wastewater Treatment Plants Improvements Improvements
Control Room Building ------612 - - 612 Control Room Building Upgrade Upgrade
Gas Engines New & Renewals - - - - - 267 - - - - - 267 Gas Engines New & Renewals
Hikurangi Wastewater ------190 197 387 Hikurangi Wastewater Consent Renewal Consent Renewal
Hikurangi Wastewater ------229 - - 127 262 619 Hikurangi Wastewater Upgrade Membrane Renewal Upgrade Membrane Renewal
Hikurangi Wastewater WWTP ------142 - - - 142 Hikurangi Wastewater WWTP Renewals Renewals
Ngunguru UV System ------197 197 Ngunguru UV System Upgrade Upgrade
Ngunguru Wastewater ------1,117 - - - 1,117 Ngunguru Wastewater Treatment Plant Upgrades Treatment Plant Upgrades
Ngunguru Wastewater WWTP ------1,247 1,247 Ngunguru Wastewater WWTP Renewals Renewals
Ngunguru Wetland ------507 - 507 Ngunguru Wetland Subsurface Renewal Subsurface Renewal
Oakura Wastewater Consent ------63 197 260 Oakura Wastewater Consent Renewal Renewal
Oakura Wastewater Disposal - - - - 248 ------248 Oakura Wastewater Disposal Area Increase Area Increase
Oakura Wastewater - - - - 139 ------139 Oakura Wastewater Treatment Plant Renewals Treatment Plant Renewals
Oakura Wastewater - - - - 292 ------292 Oakura Wastewater Treatment Plant Upgrade Treatment Plant Upgrade
Portland Wastewater Consent ------61 190 - 251 Portland Wastewater Consent Renewal Renewal
Ruakaka Wastewater Reuse - - - - - 1,112 688 592 - - - 2,392 Ruakaka Wastewater Reuse
Ruakaka Wastewater ------1,677 - 5,263 532 - 7,472 Ruakaka Wastewater Treatment Plant Upgrade Treatment Plant Upgrade
Treatment Plant Remote - - - 52 108 56 58 59 - - - 333 Treatment Plant Remote Monitoring Monitoring
Treatment Plant Upgrades - 591 606 622 639 657 678 700 734 760 787 6,774 Treatment Plant upgrades
128 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Overflow Storage Tank – Land - - - - - 526 - - - - - 526 Overflow Storage Tank – Land Purchase Purchase
Portland Wastewater Pumps - - - - 21 ------21 Portland Wastewater Pumps Renewals Renewals
Pump Station Upgrades - 350 359 368 378 389 401 414 428 443 459 3,989 Pump Station Upgrades
Purchase New Portable - - 41 ------41 Purchase New Portable Generator Generator
Remote Monitoring ------355 - - - 355 Remote Monitoring
Ruakaka Pump Station - - - - 54 56 57 59 61 63 66 416 Ruakaka Pump Station Renewals Renewals
Ruakaka South Pump Units ------428 317 131 876 Ruakaka South Pump Units Renewals Renewals
Tutukaka Wastewater Pumps ------127 - 127 Tutukaka Wastewater Pumps Renewals Renewals
Whangarei City Wastewater ------230 237 245 253 262 1,226 Whangarei City Wastewater Pumps Renewals Pumps Renewals
Wastewater Treatment Plants Consent-Related Plant - - - - - 556 2,086 2,309 2,134 - - 7,085 Consent-Related Plant Wastewater Treatment Plants Improvements Improvements
Control Room Building ------612 - - 612 Control Room Building Upgrade Upgrade
Gas Engines New & Renewals - - - - - 267 - - - - - 267 Gas Engines New & Renewals
Hikurangi Wastewater ------190 197 387 Hikurangi Wastewater Consent Renewal Consent Renewal
Hikurangi Wastewater ------229 - - 127 262 619 Hikurangi Wastewater Upgrade Membrane Renewal Upgrade Membrane Renewal
Hikurangi Wastewater WWTP ------142 - - - 142 Hikurangi Wastewater WWTP Renewals Renewals
Ngunguru UV System ------197 197 Ngunguru UV System Upgrade Upgrade
Ngunguru Wastewater ------1,117 - - - 1,117 Ngunguru Wastewater Treatment Plant Upgrades Treatment Plant Upgrades
Ngunguru Wastewater WWTP ------1,247 1,247 Ngunguru Wastewater WWTP Renewals Renewals
Ngunguru Wetland ------507 - 507 Ngunguru Wetland Subsurface Renewal Subsurface Renewal
Oakura Wastewater Consent ------63 197 260 Oakura Wastewater Consent Renewal Renewal
Oakura Wastewater Disposal - - - - 248 ------248 Oakura Wastewater Disposal Area Increase Area Increase
Oakura Wastewater - - - - 139 ------139 Oakura Wastewater Treatment Plant Renewals Treatment Plant Renewals
Oakura Wastewater - - - - 292 ------292 Oakura Wastewater Treatment Plant Upgrade Treatment Plant Upgrade
Portland Wastewater Consent ------61 190 - 251 Portland Wastewater Consent Renewal Renewal
Ruakaka Wastewater Reuse - - - - - 1,112 688 592 - - - 2,392 Ruakaka Wastewater Reuse
Ruakaka Wastewater ------1,677 - 5,263 532 - 7,472 Ruakaka Wastewater Treatment Plant Upgrade Treatment Plant Upgrade
Treatment Plant Remote - - - 52 108 56 58 59 - - - 333 Treatment Plant Remote Monitoring Monitoring
Treatment Plant Upgrades - 591 606 622 639 657 678 700 734 760 787 6,774 Treatment Plant upgrades
129 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Tutukaka Wastewater ------63 197 260 Tutukaka Wastewater Consent Renewals Consent Renewals
Tutukaka Wastewater - - - - - 553 - - - 254 - 807 Tutukaka Wastewater Treatment Plant Upgrade Treatment Plant Upgrade
Tutukaka Wastewater WWTP - - - 52 54 56 57 - - - - 219 Tutukaka Wastewater WWTP Renewals Renewals
Waipu Wastewater Treatment ------101 - 101 Waipu Wastewater Treatment Plant Renewals Plant Renewals
Waipu Wastewater Treatment ------1,539 - - - 1,539 Waipu Wastewater Treatment Plant Upgrade Plant Upgrade
Wastewater General – Odour - - - - - 39 - - - - - 39 Wastewater General – Odour Control Control
Whangarei City Wastewater ------229 237 245 254 262 1,227 Whangarei City Wastewater WWTP Renewals WWTP Renewals
Whangarei City Wetland ------65 424 - - 489 Whangarei City Wetland Upgrade Upgrade
Whangarei WWTP Odour - - - - 54 3,919 - - - - - 3,973 Whangarei WWTP Odour Control Control
Total Capital Expenditure Wastewater 1,719 5,984 9,966 2,675 8,478 15,369 11,886 12,110 19,268 19,174 20,151 126,780 Total Capital Expenditure Wastewater
STORMWATER STORMWATER
Stormwater Asset Stormwater Catchment 280 200 123 126 - - 161 178 - 190 197 1,455 Stormwater Catchment Stormwater Asset Management Management Plans & Management Plans & Management Assessments Assessments
Stormwater Improvements Porowini/Morningside 10 ------10 Porowini/Morningside Stormwater Improvements Stormwater Improvements Stormwater Improvements
Stormwater Projects – 2,198 500 513 526 432 445 688 710 734 760 787 8,293 Stormwater Projects – Programmed Work Programmed Work
Stormwater Quality – 32 - - - 270 278 57 59 61 63 66 886 Stormwater Quality – Programmed Work Programmed Work
Stormwater Rehabilitation ------623 706 734 2,525 2,300 6,888 Stormwater Rehabilitation Projects – Programmed Work Projects – Programmed Work
Total Capital Expenditure Stormwater 2,520 700 636 652 703 723 1,529 1,653 1,529 3,538 3,350 17,532 Total Capital Expenditure Stormwater
FLOOD PROTECTION & CONTROL WORKS FLOOD PROTECTION & CONTROL WORKS
Hikurangi Swamp Hikurangi Swamp Level ------118 - - - 118 Hikurangi Swamp Level Hikurangi Swamp Sensor Renewals Sensor Renewals
Hikurangi Swamp Non-Pump - - - 105 - - 115 - - 127 - 347 Hikurangi Swamp Non-Pump Renewals Renewals
Hikurangi Swamp Scheme – 30 ------30 Hikurangi Swamp Scheme – Programmed Works Programmed Works
Hikurangi Swamp Stop/ ------237 - - - 237 Hikurangi Swamp Stop/ Control Bank Renewals Control Bank Renewals
Total Capital Expenditure Flood Protection & Control Works 30 - - 105 - - 115 355 - 127 - 732 Total Capital Expenditure Flood Protection & Control Works
COMMUNITY FACILITIES & SERVICES COMMUNITY FACILITIES & SERVICES
PARKS & RECREATION PARKS & RECREATION
Cemeteries Cemeteries Growth - - - - - 298 - - - 257 358 913 Cemeteries Growth Cemeteries
Cemeteries Level of Service 4 - 243 - - - - 88 - - 129 464 Cemeteries Level of Service
Cemeteries Renewals 4 20 26 144 11 28 381 140 31 88 34 907 Cemeteries Renewals
Coastal Structures Coastal Structures Level of ------74 770 - - - 844 Coastal Structures Level of Coastal Structures Service Service
130 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Tutukaka Wastewater ------63 197 260 Tutukaka Wastewater Consent Renewals Consent Renewals
Tutukaka Wastewater - - - - - 553 - - - 254 - 807 Tutukaka Wastewater Treatment Plant Upgrade Treatment Plant Upgrade
Tutukaka Wastewater WWTP - - - 52 54 56 57 - - - - 219 Tutukaka Wastewater WWTP Renewals Renewals
Waipu Wastewater Treatment ------101 - 101 Waipu Wastewater Treatment Plant Renewals Plant Renewals
Waipu Wastewater Treatment ------1,539 - - - 1,539 Waipu Wastewater Treatment Plant Upgrade Plant Upgrade
Wastewater General – Odour - - - - - 39 - - - - - 39 Wastewater General – Odour Control Control
Whangarei City Wastewater ------229 237 245 254 262 1,227 Whangarei City Wastewater WWTP Renewals WWTP Renewals
Whangarei City Wetland ------65 424 - - 489 Whangarei City Wetland Upgrade Upgrade
Whangarei WWTP Odour - - - - 54 3,919 - - - - - 3,973 Whangarei WWTP Odour Control Control
Total Capital Expenditure Wastewater 1,719 5,984 9,966 2,675 8,478 15,369 11,886 12,110 19,268 19,174 20,151 126,780 Total Capital Expenditure Wastewater
STORMWATER STORMWATER
Stormwater Asset Stormwater Catchment 280 200 123 126 - - 161 178 - 190 197 1,455 Stormwater Catchment Stormwater Asset Management Management Plans & Management Plans & Management Assessments Assessments
Stormwater Improvements Porowini/Morningside 10 ------10 Porowini/Morningside Stormwater Improvements Stormwater Improvements Stormwater Improvements
Stormwater Projects – 2,198 500 513 526 432 445 688 710 734 760 787 8,293 Stormwater Projects – Programmed Work Programmed Work
Stormwater Quality – 32 - - - 270 278 57 59 61 63 66 886 Stormwater Quality – Programmed Work Programmed Work
Stormwater Rehabilitation ------623 706 734 2,525 2,300 6,888 Stormwater Rehabilitation Projects – Programmed Work Projects – Programmed Work
Total Capital Expenditure Stormwater 2,520 700 636 652 703 723 1,529 1,653 1,529 3,538 3,350 17,532 Total Capital Expenditure Stormwater
FLOOD PROTECTION & CONTROL WORKS FLOOD PROTECTION & CONTROL WORKS
Hikurangi Swamp Hikurangi Swamp Level ------118 - - - 118 Hikurangi Swamp Level Hikurangi Swamp Sensor Renewals Sensor Renewals
Hikurangi Swamp Non-Pump - - - 105 - - 115 - - 127 - 347 Hikurangi Swamp Non-Pump Renewals Renewals
Hikurangi Swamp Scheme – 30 ------30 Hikurangi Swamp Scheme – Programmed Works Programmed Works
Hikurangi Swamp Stop/ ------237 - - - 237 Hikurangi Swamp Stop/ Control Bank Renewals Control Bank Renewals
Total Capital Expenditure Flood Protection & Control Works 30 - - 105 - - 115 355 - 127 - 732 Total Capital Expenditure Flood Protection & Control Works
COMMUNITY FACILITIES & SERVICES COMMUNITY FACILITIES & SERVICES
PARKS & RECREATION PARKS & RECREATION
Cemeteries Cemeteries Growth - - - - - 298 - - - 257 358 913 Cemeteries Growth Cemeteries
Cemeteries Level of Service 4 - 243 - - - - 88 - - 129 464 Cemeteries Level of Service
Cemeteries Renewals 4 20 26 144 11 28 381 140 31 88 34 907 Cemeteries Renewals
Coastal Structures Coastal Structures Level of ------74 770 - - - 844 Coastal Structures Level of Coastal Structures Service Service
131 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Coastal Structures Renewal 370 150 107 224 - 278 72 52 183 - 764 2,200 Coastal Structures Renewal
Seawalls Renewal 300 555 522 509 712 576 570 616 254 - - 4,614 Seawalls Renewal
Neighbourhood & Public Neighbourhood & Public 30 ------702 - 732 Neighbourhood & Public Neighbourhood & Public Gardens Gardens Growth Gardens Growth Gardens
Neighbourhood & Public - - 102 ------102 Neighbourhood & Public Gardens Level of Service Gardens Level of Service
Neighbourhood & Public - 605 580 781 715 881 906 934 963 995 1,029 8,389 Neighbourhood & Public Gardens Renewals Gardens Renewals
Playgrounds & Skateparks Community Amenities - - - 105 108 111 - 117 92 125 129 787 Community Amenities Playgrounds & Skateparks Programme Programme
Playgrounds & Skateparks - - - - - 97 - - - 111 114 322 Playgrounds & Skateparks New New
Playgrounds & Skateparks 6 138 188 105 155 187 85 208 219 213 44 1,548 Playgrounds & Skateparks Renewals Renewals
Sense of Place CBD Development Stage 2/ - 1,435 - - - 996 - 258 - - - 2,689 CBD Development Stage 2/ Sense of Place Laneway completion Laneway completion
CBD Development Stage 1 752 ------752 CBD Development Stage 1
Emerald Necklace - - 205 315 - 332 342 352 363 375 388 2,672 Emerald Necklace
Hatea Activity Loop - - 307 315 323 332 342 - - 125 - 1,744 Hatea Activity Loop
Parks Interpretation 34 40 41 42 43 44 - 47 49 50 52 442 Parks Interpretation Information Information
Public Art - 20 31 42 43 44 46 47 49 50 52 424 Public Art
Ruakaka Beach New - 45 ------45 Ruakaka Beach New Accessway Accessway
Town Basin – Conversion of - - - 1,506 1,545 ------3,051 Town Basin – Conversion of Carpark to Park Carpark to Park
Urban Design – Themed 59 80 102 126 151 155 177 164 170 175 181 1,540 Urban Design – Themed Communities & Settlements Communities & Settlements
t field a ilitie Carparks – Kensington Park 74 ------74 Carparks – Kensington Park t field a ilitie Reseal Reseal
Sport & Recreation Growth 475 - - - - 216 - 774 3,283 - - 4,748 Sport & Recreation Growth
Sport & Recreation Level of 1,195 112 1,001 1,901 1,868 823 - 601 - 1,267 38 8,806 Sport & Recreation Level of Service Service
Sport & Recreation Renewals - 817 1,031 379 388 399 736 570 1,553 829 1,799 8,501 Sport & Recreation Renewals
Walkways and Tracks Walkway & Track 204 - - 21 ------225 Walkway & Track Walkways and Tracks Improvements Improvements
Walkway & Track Renewals 237 250 428 342 338 339 246 226 237 482 58 3,183 Walkway & Track Renewals
Total Capital Expenditure Parks & Recreation 3,744 4,267 4,914 6,857 6,400 6,136 3,977 5,964 7,446 5,844 5,169 60,718 Total Capital Expenditure Parks & Recreation
LIBRARIES LIBRARIES
IT Programme IT Equipment Replacement - 86 174 97 102 109 115 123 - - - 806 IT Equipment Replacement IT Programme
Radio Frequency ID System - - 205 ------205 Radio Frequency ID System
Library Books Book Purchases - 558 596 627 684 705 753 803 857 915 976 7,474 Book Purchases Library Books
Library Asset Renewals Carpet Renewals ------430 - - 430 Carpet Renewals Library Asset Renewals
Furniture Renewals - 5 5 5 5 6 6 6 6 6 7 57 Furniture Renewals
Mobile Bus Replacement - 300 ------300 Mobile Bus Replacement
Total Capital Expenditure Libraries - 949 980 729 791 820 874 932 1,293 921 983 9,272 Total Capital Expenditure Libraries
132 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Coastal Structures Renewal 370 150 107 224 - 278 72 52 183 - 764 2,200 Coastal Structures Renewal
Seawalls Renewal 300 555 522 509 712 576 570 616 254 - - 4,614 Seawalls Renewal
Neighbourhood & Public Neighbourhood & Public 30 ------702 - 732 Neighbourhood & Public Neighbourhood & Public Gardens Gardens Growth Gardens Growth Gardens
Neighbourhood & Public - - 102 ------102 Neighbourhood & Public Gardens Level of Service Gardens Level of Service
Neighbourhood & Public - 605 580 781 715 881 906 934 963 995 1,029 8,389 Neighbourhood & Public Gardens Renewals Gardens Renewals
Playgrounds & Skateparks Community Amenities - - - 105 108 111 - 117 92 125 129 787 Community Amenities Playgrounds & Skateparks Programme Programme
Playgrounds & Skateparks - - - - - 97 - - - 111 114 322 Playgrounds & Skateparks New New
Playgrounds & Skateparks 6 138 188 105 155 187 85 208 219 213 44 1,548 Playgrounds & Skateparks Renewals Renewals
Sense of Place CBD Development Stage 2/ - 1,435 - - - 996 - 258 - - - 2,689 CBD Development Stage 2/ Sense of Place Laneway completion Laneway completion
CBD Development Stage 1 752 ------752 CBD Development Stage 1
Emerald Necklace - - 205 315 - 332 342 352 363 375 388 2,672 Emerald Necklace
Hatea Activity Loop - - 307 315 323 332 342 - - 125 - 1,744 Hatea Activity Loop
Parks Interpretation 34 40 41 42 43 44 - 47 49 50 52 442 Parks Interpretation Information Information
Public Art - 20 31 42 43 44 46 47 49 50 52 424 Public Art
Ruakaka Beach New - 45 ------45 Ruakaka Beach New Accessway Accessway
Town Basin – Conversion of - - - 1,506 1,545 ------3,051 Town Basin – Conversion of Carpark to Park Carpark to Park
Urban Design – Themed 59 80 102 126 151 155 177 164 170 175 181 1,540 Urban Design – Themed Communities & Settlements Communities & Settlements
t field a ilitie Carparks – Kensington Park 74 ------74 Carparks – Kensington Park t field a ilitie Reseal Reseal
Sport & Recreation Growth 475 - - - - 216 - 774 3,283 - - 4,748 Sport & Recreation Growth
Sport & Recreation Level of 1,195 112 1,001 1,901 1,868 823 - 601 - 1,267 38 8,806 Sport & Recreation Level of Service Service
Sport & Recreation Renewals - 817 1,031 379 388 399 736 570 1,553 829 1,799 8,501 Sport & Recreation Renewals
Walkways and Tracks Walkway & Track 204 - - 21 ------225 Walkway & Track Walkways and Tracks Improvements Improvements
Walkway & Track Renewals 237 250 428 342 338 339 246 226 237 482 58 3,183 Walkway & Track Renewals
Total Capital Expenditure Parks & Recreation 3,744 4,267 4,914 6,857 6,400 6,136 3,977 5,964 7,446 5,844 5,169 60,718 Total Capital Expenditure Parks & Recreation
LIBRARIES LIBRARIES
IT Programme IT Equipment Replacement - 86 174 97 102 109 115 123 - - - 806 IT Equipment Replacement IT Programme
Radio Frequency ID System - - 205 ------205 Radio Frequency ID System
Library Books Book Purchases - 558 596 627 684 705 753 803 857 915 976 7,474 Book Purchases Library Books
Library Asset Renewals Carpet Renewals ------430 - - 430 Carpet Renewals Library Asset Renewals
Furniture Renewals - 5 5 5 5 6 6 6 6 6 7 57 Furniture Renewals
Mobile Bus Replacement - 300 ------300 Mobile Bus Replacement
Total Capital Expenditure Libraries - 949 980 729 791 820 874 932 1,293 921 983 9,272 Total Capital Expenditure Libraries
133 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
COMMUNITY PROPERTY COMMUNITY PROPERTY
Council-Owned Community Community Buildings - 240 - 24 27 144 - - - - 26 461 Community Buildings Council-Owned Community Buildings Renewals & Improvements Renewals & Improvements Buildings
Pensioner Housing Pensioner Housing Renewals - 1,229 536 486 514 509 371 103 107 110 114 4,079 Pensioner Housing Renewals Pensioner Housing & Improvements & Improvements
Total Capital Expenditure Community Property - 1,469 536 510 541 653 371 103 107 110 140 4,540 Total Capital Expenditure Community Property
COMMUNITY SERVICES COMMUNITY SERVICES
CCTV Network CCTV Upgrades & - 50 51 53 54 55 57 59 61 63 65 568 CCTV Upgrades & CCTV Network Improvements Improvements
Total Capital Expenditure Community Services - 50 51 53 54 55 57 59 61 63 65 568 Total Capital Expenditure Community Services
VENUES & EVENTS VENUES & EVENTS
Flags & Decorations Flags & Decorations 5 ------63 - 68 Flags & Decorations Flags & Decorations
Forum North Venue FN Venue – Catering Kitchen - - 46 - - - - 47 - - - 93 FN Venue – Catering Kitchen Forum North Venue Upgrades Upgrades
FN Venue – Communications/ - - - - 43 ------43 FN Venue – Communications/ Data Upgrades Data Upgrades
FN Venue – Conference - 50 128 79 ------257 FN Venue – Conference Centre Upgrades Centre Upgrades
FN Venue – Electrical - - 51 52 ------103 FN Venue – Electrical Distribution Upgrades Distribution Upgrades
FN Venue – Entrance/ - - 32 21 ------53 FN Venue – Entrance/ Lighting Enhancements Lighting Enhancements
FN Venue – Furniture - 20 20 21 22 22 23 23 24 25 26 226 FN Venue – Furniture Upgrades Upgrades
FN Venue – Health & Safety - - 31 - 32 - - 35 36 - 39 173 FN Venue – Health & Safety Upgrades Upgrades
FN Venue – Theatre Technical 101 80 82 84 86 89 91 94 97 100 103 1,007 FN Venue – Theatre Technical Equipment Upgrades Equipment Upgrades
New Theatre/Expo/ New Theatre/Expo/ ------3,645 6,101 - - - 9,746 New Theatre/Expo/ New Theatre/Expo/ Conference Conference Conference Conference
Northland Events Centre NEC – Exterior General - 20 20 21 22 22 23 24 24 25 26 227 NEC – Exterior General Northland Events Centre Renewals Renewals
NEC – Floor Covering - - 80 - - - 24 - 60 98 135 397 NEC – Floor Covering Renewals Renewals
NEC – Interior General - 20 20 21 22 22 23 24 24 25 26 227 NEC – Interior General Renewals Renewals
NEC – Interior Paint Ceilings ------91 - - - - 91 NEC – Interior Paint Ceilings
NEC – Interior Paint Walls - - - - 43 - 31 - - 17 - 91 NEC – Interior Paint Walls
NEC – Light Tower Renewals ------98 98 NEC – Light Tower Renewals
NEC – Roof Canopy ------1,015 1,015 NEC – Roof Canopy Replacement Replacement
Total Capital Expenditure Venues & Events 106 190 510 299 270 155 3,950 6,348 265 353 1,468 13,915 Total Capital Expenditure Venues & Events
Total Capital Expenditure Community Facilities & Services 3,850 6,925 6,991 8,448 8,056 7,819 9,230 13,406 9,172 7,291 7,824 89,013 Total Capital Expenditure Community Facilities & Services
134 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
COMMUNITY PROPERTY COMMUNITY PROPERTY
Council-Owned Community Community Buildings - 240 - 24 27 144 - - - - 26 461 Community Buildings Council-Owned Community Buildings Renewals & Improvements Renewals & Improvements Buildings
Pensioner Housing Pensioner Housing Renewals - 1,229 536 486 514 509 371 103 107 110 114 4,079 Pensioner Housing Renewals Pensioner Housing & Improvements & Improvements
Total Capital Expenditure Community Property - 1,469 536 510 541 653 371 103 107 110 140 4,540 Total Capital Expenditure Community Property
COMMUNITY SERVICES COMMUNITY SERVICES
CCTV Network CCTV Upgrades & - 50 51 53 54 55 57 59 61 63 65 568 CCTV Upgrades & CCTV Network Improvements Improvements
Total Capital Expenditure Community Services - 50 51 53 54 55 57 59 61 63 65 568 Total Capital Expenditure Community Services
VENUES & EVENTS VENUES & EVENTS
Flags & Decorations Flags & Decorations 5 ------63 - 68 Flags & Decorations Flags & Decorations
Forum North Venue FN Venue – Catering Kitchen - - 46 - - - - 47 - - - 93 FN Venue – Catering Kitchen Forum North Venue Upgrades Upgrades
FN Venue – Communications/ - - - - 43 ------43 FN Venue – Communications/ Data Upgrades Data Upgrades
FN Venue – Conference - 50 128 79 ------257 FN Venue – Conference Centre Upgrades Centre Upgrades
FN Venue – Electrical - - 51 52 ------103 FN Venue – Electrical Distribution Upgrades Distribution Upgrades
FN Venue – Entrance/ - - 32 21 ------53 FN Venue – Entrance/ Lighting Enhancements Lighting Enhancements
FN Venue – Furniture - 20 20 21 22 22 23 23 24 25 26 226 FN Venue – Furniture Upgrades Upgrades
FN Venue – Health & Safety - - 31 - 32 - - 35 36 - 39 173 FN Venue – Health & Safety Upgrades Upgrades
FN Venue – Theatre Technical 101 80 82 84 86 89 91 94 97 100 103 1,007 FN Venue – Theatre Technical Equipment Upgrades Equipment Upgrades
New Theatre/Expo/ New Theatre/Expo/ ------3,645 6,101 - - - 9,746 New Theatre/Expo/ New Theatre/Expo/ Conference Conference Conference Conference
Northland Events Centre NEC – Exterior General - 20 20 21 22 22 23 24 24 25 26 227 NEC – Exterior General Northland Events Centre Renewals Renewals
NEC – Floor Covering - - 80 - - - 24 - 60 98 135 397 NEC – Floor Covering Renewals Renewals
NEC – Interior General - 20 20 21 22 22 23 24 24 25 26 227 NEC – Interior General Renewals Renewals
NEC – Interior Paint Ceilings ------91 - - - - 91 NEC – Interior Paint Ceilings
NEC – Interior Paint Walls - - - - 43 - 31 - - 17 - 91 NEC – Interior Paint Walls
NEC – Light Tower Renewals ------98 98 NEC – Light Tower Renewals
NEC – Roof Canopy ------1,015 1,015 NEC – Roof Canopy Replacement Replacement
Total Capital Expenditure Venues & Events 106 190 510 299 270 155 3,950 6,348 265 353 1,468 13,915 Total Capital Expenditure Venues & Events
Total Capital Expenditure Community Facilities & Services 3,850 6,925 6,991 8,448 8,056 7,819 9,230 13,406 9,172 7,291 7,824 89,013 Total Capital Expenditure Community Facilities & Services
135 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
ECONOMIC GROWTH ECONOMIC GROWTH
Claphams Clock Museum Claphams Clocks Display - - - - - 55 - - - - - 55 Claphams Clocks Display Claphams Clock Museum Upgrade Upgrade
Claphams Clocks Fire Safety - 30 ------30 Claphams Clocks Fire Safety System Upgrade System Upgrade
Twin Coast Signage Twin Coast Signage - 20 5 5 5 6 6 6 6 6 6 71 Twin Coast Signage Twin Coast Signage
Whangarei City Entrance Whangarei City Entrance - 80 20 21 22 22 23 23 24 25 26 286 Whangarei City Entrance Whangarei City Entrance Signage i na e eautifi ati n i na e eautifi ati n Signage
Total Capital Expenditure Economic Growth - 130 25 26 27 83 29 29 30 31 32 442 Total Capital Expenditure Economic Growth
PLANNING & REGULATORY PLANNING & REGULATORY
Dog Pound Dog Pound Renewals - - - - 1,077 ------1,077 Dog Pound Renewals Dog Pound
Total Capital Expenditure Planning & Regulatory - - - - 1,077 ------1,077 Total Capital Expenditure Planning & Regulatory
SUPPORT SERVICES SUPPORT SERVICES
Airport Improvements Airport Improvements 210 ------210 Airport Improvements Airport Improvements
Civil Defence & Emergency Civil Defence Emergency - 20 20 21 22 22 23 23 24 25 26 226 Civil Defence Emergency Civil Defence & Emergency Management Management Equipment Management Equipment Management Renewals Renewals
Civil Defence Emergency - 10 10 ------20 Civil Defence Emergency Management Radios New Management Radios New
Civil Defence Emergency - 25 ------25 Civil Defence Emergency Management Repeater Management Repeater Renewal Renewal
Emergency Operations Centre - 3 3 3 2 2 - 2 2 2 2 20 Emergency Operations Centre – New Equipment – New Equipment
Emergency Operations Centre - - - - 3 3 3 4 4 4 4 26 Emergency Operations Centre Renewals Renewals
Forum North Standby - 150 ------150 Forum North Standby Generator Generator
Tsunami Signage - 10 10 11 ------31 Tsunami Signage
Tsunami Sirens New - 13 13 ------26 Tsunami Sirens New
Tsunami Sirens Renewals - - 16 17 17 17 18 18 19 20 20 162 Tsunami Sirens Renewals
Volunteer Fire Forces - - 3 - - - - 4 - - - 7 Volunteer Fire Forces Computers Renewals Computers Renewals
Commercial Property 20 Herekino St – Commercial - 170 ------170 20 Herekino St – Commercial Commercial Property Property Repairs Property Repairs
Central City Carpark Upgrades - - 205 ------205 Central City Carpark Upgrades & Improvements & Improvements
Former Z Station - 10 ------10 Former Z Station Refurbishment Refurbishment
Information Centre Upgrade - 150 ------150 Information Centre Upgrade
Old Boys Property – Road - - 51 ------51 Old Boys Property – Road Extension Extension
Old Boys Property – Waste & - - 102 ------102 Old Boys Property – Waste & Drainage Drainage
Parihaka Transmission Mast - 100 614 315 ------1,029 Parihaka Transmission Mast Upgrade Upgrade
Water Services Building - 20 ------20 Water Services Building Renewals Renewals
136 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
ECONOMIC GROWTH ECONOMIC GROWTH
Claphams Clock Museum Claphams Clocks Display - - - - - 55 - - - - - 55 Claphams Clocks Display Claphams Clock Museum Upgrade Upgrade
Claphams Clocks Fire Safety - 30 ------30 Claphams Clocks Fire Safety System Upgrade System Upgrade
Twin Coast Signage Twin Coast Signage - 20 5 5 5 6 6 6 6 6 6 71 Twin Coast Signage Twin Coast Signage
Whangarei City Entrance Whangarei City Entrance - 80 20 21 22 22 23 23 24 25 26 286 Whangarei City Entrance Whangarei City Entrance Signage i na e eautifi ati n i na e eautifi ati n Signage
Total Capital Expenditure Economic Growth - 130 25 26 27 83 29 29 30 31 32 442 Total Capital Expenditure Economic Growth
PLANNING & REGULATORY PLANNING & REGULATORY
Dog Pound Dog Pound Renewals - - - - 1,077 ------1,077 Dog Pound Renewals Dog Pound
Total Capital Expenditure Planning & Regulatory - - - - 1,077 ------1,077 Total Capital Expenditure Planning & Regulatory
SUPPORT SERVICES SUPPORT SERVICES
Airport Improvements Airport Improvements 210 ------210 Airport Improvements Airport Improvements
Civil Defence & Emergency Civil Defence Emergency - 20 20 21 22 22 23 23 24 25 26 226 Civil Defence Emergency Civil Defence & Emergency Management Management Equipment Management Equipment Management Renewals Renewals
Civil Defence Emergency - 10 10 ------20 Civil Defence Emergency Management Radios New Management Radios New
Civil Defence Emergency - 25 ------25 Civil Defence Emergency Management Repeater Management Repeater Renewal Renewal
Emergency Operations Centre - 3 3 3 2 2 - 2 2 2 2 20 Emergency Operations Centre – New Equipment – New Equipment
Emergency Operations Centre - - - - 3 3 3 4 4 4 4 26 Emergency Operations Centre Renewals Renewals
Forum North Standby - 150 ------150 Forum North Standby Generator Generator
Tsunami Signage - 10 10 11 ------31 Tsunami Signage
Tsunami Sirens New - 13 13 ------26 Tsunami Sirens New
Tsunami Sirens Renewals - - 16 17 17 17 18 18 19 20 20 162 Tsunami Sirens Renewals
Volunteer Fire Forces - - 3 - - - - 4 - - - 7 Volunteer Fire Forces Computers Renewals Computers Renewals
Commercial Property 20 Herekino St – Commercial - 170 ------170 20 Herekino St – Commercial Commercial Property Property Repairs Property Repairs
Central City Carpark Upgrades - - 205 ------205 Central City Carpark Upgrades & Improvements & Improvements
Former Z Station - 10 ------10 Former Z Station Refurbishment Refurbishment
Information Centre Upgrade - 150 ------150 Information Centre Upgrade
Old Boys Property – Road - - 51 ------51 Old Boys Property – Road Extension Extension
Old Boys Property – Waste & - - 102 ------102 Old Boys Property – Waste & Drainage Drainage
Parihaka Transmission Mast - 100 614 315 ------1,029 Parihaka Transmission Mast Upgrade Upgrade
Water Services Building - 20 ------20 Water Services Building Renewals Renewals
137 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Whangarei Art Museum ------125 - 125 Whangarei Art Museum Airconditioning Upgrade Airconditioning Upgrade
Council Premises Council Premises - 200 4,915 5,248 ------10,363 Council Premises Council Premises
Council Vehicle Replacements Council Vehicle Replacements - 200 205 210 216 221 228 235 242 250 259 2,266 Council Vehicle Replacements Council Vehicle Replacements
IT Programme Asset Management Software 155 ------155 Asset Management Software IT Programme ade an en ade an en
Computer Room Relocation 360 ------360 Computer Room Relocation
Computer Tech for Building, 60 ------60 Computer Tech for Building, Animal Control & Parking Animal Control & Parking
Corporate System Cloud - 200 563 431 216 ------1,410 Corporate System Cloud Deployment Deployment
Customer Access – Online - - 184 30 ------214 Customer Access – Online Services Services
Decision Support System - 25 138 53 ------216 Decision Support System Development Development
Desktop Computer Equipment - 120 102 53 43 89 137 117 61 50 104 876 Desktop Computer Equipment Renewals & Upgrades Renewals & Upgrades
Digitisation of Records - 352 324 332 341 351 - - - - - 1,700 Digitisation of Records
Document Management - - 51 105 140 ------296 Document Management Software Upgrade Software Upgrade
InCompass Programme 186 ------186 InCompass Programme
IT Network Upgrade to Cloud - 153 194 ------347 IT Network Upgrade to Cloud
Mobility Technology – - 140 - - - - 228 - - - - 368 Mobility Technology – Building Building
Mobility Technology – Parking ------137 - 176 - - 313 Mobility Technology – Parking
Performance Management - 174 ------174 Performance Management System Development System Development
Software Application - 150 128 26 ------304 Software Application Integration Integration
Web & Intranet Development - - - 337 ------337 Web & Intranet Development
Workflow Systems - - - 158 27 40 - - - - - 225 Workflow Systems Development Development
New Airport Evaluation New Airport Evaluation - 510 615 840 538 ------2,503 New Airport Evaluation New Airport Evaluation
Old Harbour Board Building Old Harbour Board Building - - - 1,469 1,508 ------2,977 Old Harbour Board Building Old Harbour Board Building Development Development
Total Capital Expenditure Support Services 971 2,905 8,466 9,659 3,073 745 774 403 528 476 415 28,415 Total Capital Expenditure Support Services
Grand Total 13,408 45,188 56,354 52,897 44,900 51,560 53,306 57,773 62,057 65,520 70,617 573,580 Grand Total
138 PROGRAMME PROJECT 2014-15 LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP TOTAL PROJECT PROGRAMME CARRY 1 2 3 4 5 6 7 8 9 10 $000 FORWARD 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Whangarei Art Museum ------125 - 125 Whangarei Art Museum Airconditioning Upgrade Airconditioning Upgrade
Council Premises Council Premises - 200 4,915 5,248 ------10,363 Council Premises Council Premises
Council Vehicle Replacements Council Vehicle Replacements - 200 205 210 216 221 228 235 242 250 259 2,266 Council Vehicle Replacements Council Vehicle Replacements
IT Programme Asset Management Software 155 ------155 Asset Management Software IT Programme ade an en ade an en
Computer Room Relocation 360 ------360 Computer Room Relocation
Computer Tech for Building, 60 ------60 Computer Tech for Building, Animal Control & Parking Animal Control & Parking
Corporate System Cloud - 200 563 431 216 ------1,410 Corporate System Cloud Deployment Deployment
Customer Access – Online - - 184 30 ------214 Customer Access – Online Services Services
Decision Support System - 25 138 53 ------216 Decision Support System Development Development
Desktop Computer Equipment - 120 102 53 43 89 137 117 61 50 104 876 Desktop Computer Equipment Renewals & Upgrades Renewals & Upgrades
Digitisation of Records - 352 324 332 341 351 - - - - - 1,700 Digitisation of Records
Document Management - - 51 105 140 ------296 Document Management Software Upgrade Software Upgrade
InCompass Programme 186 ------186 InCompass Programme
IT Network Upgrade to Cloud - 153 194 ------347 IT Network Upgrade to Cloud
Mobility Technology – - 140 - - - - 228 - - - - 368 Mobility Technology – Building Building
Mobility Technology – Parking ------137 - 176 - - 313 Mobility Technology – Parking
Performance Management - 174 ------174 Performance Management System Development System Development
Software Application - 150 128 26 ------304 Software Application Integration Integration
Web & Intranet Development - - - 337 ------337 Web & Intranet Development
Workflow Systems - - - 158 27 40 - - - - - 225 Workflow Systems Development Development
New Airport Evaluation New Airport Evaluation - 510 615 840 538 ------2,503 New Airport Evaluation New Airport Evaluation
Old Harbour Board Building Old Harbour Board Building - - - 1,469 1,508 ------2,977 Old Harbour Board Building Old Harbour Board Building Development Development
Total Capital Expenditure Support Services 971 2,905 8,466 9,659 3,073 745 774 403 528 476 415 28,415 Total Capital Expenditure Support Services
Grand Total 13,408 45,188 56,354 52,897 44,900 51,560 53,306 57,773 62,057 65,520 70,617 573,580 Grand Total
139 PART FOUR FORECAST FINANCIAL STATEMENTS AND INFORMATION FORECAST FINANCIAL STATEMENTS
INTRODUCTION
The Forecast Financial Statements of this LTP provide information on the budgets for all of Council and are comprised of: Prospective Financial Significant Forecasting Statements Assumptions These statements include the LTP, Annual Plans will be produced for the This information outlines the Prospective Statement of Comprehensive and finan ial ea all assumptions made in formulating the Revenue and Expense, Prospective i ill u date t e finan ial e a t finan ial in mati n t e lan e Statement of Financial Position, based on current information at that time. a um ti n a e a e ed finan ial Prospective Statement of Changes in risk – the impact of an assumption not Council has chosen to produce parent Equity and Prospective Statement of occurring – and the level of uncertainty e ti e finan ial tatement and n t Cash Flows for Council which are found associated with the assumption. For u finan ial tatement e au e t e in all annual plans and reports. These a um ti n it i finan ial i difference between parent and group is statements cover the 10 years of the LTP commentary and analysis on the impact not material enough to alter a reader’s and provide information as to planned of the assumption is provided. The price opinion on the information provided performance and management of level adjusters which are used to project it in t e finan ial tatement Council’s assets and liabilities. the impact of inflation across the 10 e e finan ial tatement m l it years of the LTP are also detailed as part Amongst other LGA requirements, the PBE FRS-42. of the assumptions. purpose of these prospective Financial Statements is: Responsibility for Financial Accounting Policies • to provide integrated decision- Statements These policies are compliant with making and coordination of Council’s Council is responsible for the prospective International Public Sector Accounting resources finan ial tatement e ented in tanda d u li enefit • to provide a long-term focus for the this LTP, and believe that appropriate ntitie and ide detail n activities of the Local Authority. assumptions have been used to produce Council applies the standards to the t e e e ti e finan ial tatement Prospective Financial Statements. e finan ial tatement uld n t e and that all disclosure requirements have relied upon other than for the purposes Reserve Funds been met. de i ed a e tual finan ial e ult The section on Reserve Funds outlines are likely to vary from those forecast Authorisation and issue of t e und un il ld e ifi within this Plan. Financial Statements purposes, and how the balances of the funds move between years one and 10 of These Prospective Financial Statements e e finan ial tatement e e this Plan. are a forecast for 10 years based on the authorised for issue by Council on 24 latest information and knowledge at June 2015. It is not intended to update Funding Impact Statement hand at the time of Council deliberations t e finan ial tatement u e uent t on submissions received on the issue. The Funding Impact Statement sets out LTP Consultation Document, and in the information required by Schedule conjunction with assumptions considered 10 of the LGA to assist ratepayers in appropriate at that time. At the time of understanding the impact of the Plan. du in t e e e ti e finan ial statements the starting point, the 2014- finan ial ea a n t m lete ut forecasts for the full year produced by Council in April 2015 based on actual results for the nine months to the end of March 2015, have been utilised. e fi t ea t e i t e ud et that Council will use to measure its a tual finan ial e man e a ain t t e finan ial ea ne ill e produced in three years time for 2018 to 2028. In between this LTP and the next
141 PROSPECTIVE STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
REVENUE REVENUE
Rates 77,340 83,950 88,758 92,731 97,822 103,038 108,658 114,794 121,459 128,732 136,673 Rates
Development and Other Contributions 2,500 2,120 2,139 2,159 2,178 2,199 2,219 2,240 2,262 2,283 2,304 Development and Other Contributions
Subsidies and Grants 15,360 21,089 19,146 18,117 16,442 18,561 18,916 18,063 20,223 19,070 19,332 Subsidies and Grants
Other Revenue* 21,146 22,703 23,084 24,058 24,241 24,755 25,452 27,314 26,595 27,327 27,980 Other Revenue
Other Gains 3,024 2,500 12,814 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Other Gains
Total Income 119,370 132,362 145,941 139,565 143,183 151,053 157,745 164,911 173,039 179,912 188,789 Total Income
EXPENDITURE EXPENDITURE
Other Expenditure 50,154 53,020 55,502 57,550 57,882 59,361 60,432 64,628 66,615 68,914 71,563 Other Expenditure
Depreciation and Amortisation 40,061 37,773 40,784 42,083 43,148 46,377 46,954 46,739 51,164 52,266 52,845 Depreciation and Amortisation
Finance Costs 8,579 8,395 9,001 9,185 9,326 9,251 9,161 8,922 8,734 8,521 8,261 Finance Costs
Personnel Costs 23,492 24,670 25,172 25,680 26,199 27,005 27,760 28,563 29,419 30,329 31,299 Personnel Costs
Total Operating Expenditure 122,286 123,858 130,459 134,498 136,555 141,994 144,307 148,852 155,932 160,030 163,968 Total Operating Expenditure
u lu efi it e e a ati n 8,504 15,482 5,067 6,628 9,059 13,438 16,059 17,107 19,882 24,821 u lu efi it e e a ati n
Taxation Charge ------Taxation Charge
u lu efi it te a ati n 8,504 15,482 5,067 6,628 9,059 13,438 16,059 17,107 19,882 24,821 u lu efi it te a ati n
OTHER COMPREHENSIVE REVENUE AND EXPENSES OTHER COMPREHENSIVE REVENUE AND EXPENSES
Gain on Infrastructure Asset Revaluation - - 37,742 - - 100,647 - - 139,448 - - Gain on Infrastructure Asset Revaluation
Total Comprehensive Revenue 8,504 53,224 5,067 6,628 109,706 13,438 16,059 156,555 19,882 24,821 Total Comprehensive Revenue
* Other Revenue over the 10 years of the LTP comprises Exchange revenue of $55,222 and Non-Exchange revenue of $198,286.
PROSPECTIVE STATEMENT OF CHANGES IN NET ASSETS / EQUITY
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Opening balance as at 1 July 1,511,841 1,506,172 1,514,676 1,567,900 1,572,967 1,579,595 1,689,301 1,702,739 1,718,798 1,875,353 1,895,235 Opening balance as at 1 July
Adjustments to revaluation reserve - - 37,742 - - 100,647 - - 139,448 - - Adjustments to revaluation reserve
Adjustments and contributions to net assets/equity 8,504 15,482 5,067 6,628 9,059 13,438 16,059 17,107 19,882 24,821 Adjustments and contributions to net assets/equity
Total recognised net assets/equity as at 30 June 1,508,927 1,514,676 1,567,900 1,572,967 1,579,595 1,689,301 1,702,739 1,718,798 1,875,353 1,895,235 1,920,056 Total recognised net assets/equity as at 30 June
142 PROSPECTIVE STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
REVENUE REVENUE
Rates 77,340 83,950 88,758 92,731 97,822 103,038 108,658 114,794 121,459 128,732 136,673 Rates
Development and Other Contributions 2,500 2,120 2,139 2,159 2,178 2,199 2,219 2,240 2,262 2,283 2,304 Development and Other Contributions
Subsidies and Grants 15,360 21,089 19,146 18,117 16,442 18,561 18,916 18,063 20,223 19,070 19,332 Subsidies and Grants
Other Revenue* 21,146 22,703 23,084 24,058 24,241 24,755 25,452 27,314 26,595 27,327 27,980 Other Revenue
Other Gains 3,024 2,500 12,814 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Other Gains
Total Income 119,370 132,362 145,941 139,565 143,183 151,053 157,745 164,911 173,039 179,912 188,789 Total Income
EXPENDITURE EXPENDITURE
Other Expenditure 50,154 53,020 55,502 57,550 57,882 59,361 60,432 64,628 66,615 68,914 71,563 Other Expenditure
Depreciation and Amortisation 40,061 37,773 40,784 42,083 43,148 46,377 46,954 46,739 51,164 52,266 52,845 Depreciation and Amortisation
Finance Costs 8,579 8,395 9,001 9,185 9,326 9,251 9,161 8,922 8,734 8,521 8,261 Finance Costs
Personnel Costs 23,492 24,670 25,172 25,680 26,199 27,005 27,760 28,563 29,419 30,329 31,299 Personnel Costs
Total Operating Expenditure 122,286 123,858 130,459 134,498 136,555 141,994 144,307 148,852 155,932 160,030 163,968 Total Operating Expenditure
u lu efi it e e a ati n 8,504 15,482 5,067 6,628 9,059 13,438 16,059 17,107 19,882 24,821 u lu efi it e e a ati n
Taxation Charge ------Taxation Charge
u lu efi it te a ati n 8,504 15,482 5,067 6,628 9,059 13,438 16,059 17,107 19,882 24,821 u lu efi it te a ati n
OTHER COMPREHENSIVE REVENUE AND EXPENSES OTHER COMPREHENSIVE REVENUE AND EXPENSES
Gain on Infrastructure Asset Revaluation - - 37,742 - - 100,647 - - 139,448 - - Gain on Infrastructure Asset Revaluation
Total Comprehensive Revenue 8,504 53,224 5,067 6,628 109,706 13,438 16,059 156,555 19,882 24,821 Total Comprehensive Revenue
* Other Revenue over the 10 years of the LTP comprises Exchange revenue of $55,222 and Non-Exchange revenue of $198,286.
PROSPECTIVE STATEMENT OF CHANGES IN NET ASSETS / EQUITY
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Opening balance as at 1 July 1,511,841 1,506,172 1,514,676 1,567,900 1,572,967 1,579,595 1,689,301 1,702,739 1,718,798 1,875,353 1,895,235 Opening balance as at 1 July
Adjustments to revaluation reserve - - 37,742 - - 100,647 - - 139,448 - - Adjustments to revaluation reserve
Adjustments and contributions to net assets/equity 8,504 15,482 5,067 6,628 9,059 13,438 16,059 17,107 19,882 24,821 Adjustments and contributions to net assets/equity
Total recognised net assets/equity as at 30 June 1,508,927 1,514,676 1,567,900 1,572,967 1,579,595 1,689,301 1,702,739 1,718,798 1,875,353 1,895,235 1,920,056 Total recognised net assets/equity as at 30 June
143 PROSPECTIVE STATEMENT OF FINANCIAL POSITION
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
ASSETS ASSETS
CURRENT ASSETS CURRENT ASSETS
Cash and cash equivalents 669 480 380 580 780 1,699 1,797 2,059 2,614 2,754 3,178 Cash and cash equivalents
Debtors and other receivables 13,465 14,237 14,595 15,028 15,425 16,287 17,021 17,806 18,698 19,451 20,424 Debtors and other receivables
Prepayments 59 302 308 314 320 327 333 340 347 354 361 Prepayments
Inventories 301 191 195 198 202 206 211 215 219 223 228 Inventories
t e finan ial a et 227 313 313 313 313 313 313 313 313 313 313 t e finan ial a et
Assets held for sale 9,869 ------Assets held for sale
Total current assets 24,590 15,523 15,791 16,433 17,040 18,832 19,675 20,733 22,191 23,095 24,504 Total current assets
NON-CURRENT ASSETS NON-CURRENT ASSETS
Land under development 1,023 ------Land under development
Investment properties 43,845 56,267 56,267 56,267 56,267 56,267 56,267 56,267 56,267 56,267 56,267 Investment properties
Biological assets 1,042 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 Biological assets
Property plant and equipment 1,611,254 1,614,016 1,668,665 1,681,486 1,686,059 1,794,763 1,803,629 1,817,306 1,970,044 1,985,927 2,006,152 Property plant and equipment
Intangible assets 1,561 2,497 3,474 3,967 3,647 3,273 3,258 3,116 3,218 3,090 3,136 Intangible assets
t e finan ial a et t e finan ial a et
- Investment in CCO's and other similar entities 8,091 7,797 7,797 7,797 7,797 7,797 7,797 7,797 7,797 7,797 7,797 - Investment in CCO's and other similar entities
- Investment in other entities 3,684 4,004 4,004 4,004 4,004 4,004 4,004 4,004 4,004 4,004 4,004 - Investment in other entities
e i ati e finan ial a et 133 441 441 441 441 441 441 441 441 441 441 e i ati e finan ial a et
Total non-current assets 1,670,633 1,686,121 1,741,747 1,755,061 1,759,314 1,867,644 1,876,495 1,890,030 2,042,870 2,058,625 2,078,896 Total non-current assets
Total assets 1,695,223 1,701,644 1,757,538 1,771,494 1,776,354 1,886,476 1,896,170 1,910,763 2,065,061 2,081,720 2,103,400 Total assets
144 PROSPECTIVE STATEMENT OF FINANCIAL POSITION
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
ASSETS ASSETS
CURRENT ASSETS CURRENT ASSETS
Cash and cash equivalents 669 480 380 580 780 1,699 1,797 2,059 2,614 2,754 3,178 Cash and cash equivalents
Debtors and other receivables 13,465 14,237 14,595 15,028 15,425 16,287 17,021 17,806 18,698 19,451 20,424 Debtors and other receivables
Prepayments 59 302 308 314 320 327 333 340 347 354 361 Prepayments
Inventories 301 191 195 198 202 206 211 215 219 223 228 Inventories
t e finan ial a et 227 313 313 313 313 313 313 313 313 313 313 t e finan ial a et
Assets held for sale 9,869 ------Assets held for sale
Total current assets 24,590 15,523 15,791 16,433 17,040 18,832 19,675 20,733 22,191 23,095 24,504 Total current assets
NON-CURRENT ASSETS NON-CURRENT ASSETS
Land under development 1,023 ------Land under development
Investment properties 43,845 56,267 56,267 56,267 56,267 56,267 56,267 56,267 56,267 56,267 56,267 Investment properties
Biological assets 1,042 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 Biological assets
Property plant and equipment 1,611,254 1,614,016 1,668,665 1,681,486 1,686,059 1,794,763 1,803,629 1,817,306 1,970,044 1,985,927 2,006,152 Property plant and equipment
Intangible assets 1,561 2,497 3,474 3,967 3,647 3,273 3,258 3,116 3,218 3,090 3,136 Intangible assets
t e finan ial a et t e finan ial a et
- Investment in CCO's and other similar entities 8,091 7,797 7,797 7,797 7,797 7,797 7,797 7,797 7,797 7,797 7,797 - Investment in CCO's and other similar entities
- Investment in other entities 3,684 4,004 4,004 4,004 4,004 4,004 4,004 4,004 4,004 4,004 4,004 - Investment in other entities
e i ati e finan ial a et 133 441 441 441 441 441 441 441 441 441 441 e i ati e finan ial a et
Total non-current assets 1,670,633 1,686,121 1,741,747 1,755,061 1,759,314 1,867,644 1,876,495 1,890,030 2,042,870 2,058,625 2,078,896 Total non-current assets
Total assets 1,695,223 1,701,644 1,757,538 1,771,494 1,776,354 1,886,476 1,896,170 1,910,763 2,065,061 2,081,720 2,103,400 Total assets
145 PROSPECTIVE STATEMENT OF FINANCIAL POSITION
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
LIABILITIES LIABILITIES
CURRENT LIABILITIES CURRENT LIABILITIES
Creditors and other payables 15,159 19,587 19,629 19,382 18,688 20,167 20,678 22,254 23,395 24,442 25,849 Creditors and other payables
Provisions 2,276 2,207 2,251 2,296 2,342 2,389 2,437 2,486 2,535 2,586 2,638 Provisions
Borrowings 39,271 10,000 20,000 10,000 20,000 23,000 17,000 17,000 17,000 17,000 17,000 Borrowings
e i ati e finan ial lia ilitie 28 41 41 41 41 41 41 41 41 41 41 e i ati e finan ial lia ilitie
Total current liabilities 56,734 31,835 41,921 31,719 41,071 45,597 40,156 41,781 42,971 44,069 45,528 Total current liabilities
NON-CURRENT LIABILITIES NON-CURRENT LIABILITIES
Creditors and other payables 84 376 376 376 376 376 376 376 376 376 376 Creditors and other payables
Provisions 2,156 2,171 2,214 2,258 2,303 2,349 2,397 2,444 2,493 2,543 2,594 Provisions
Borrowings 120,652 149,532 142,073 161,120 149,955 145,799 147,448 144,310 140,814 136,443 131,792 Borrowings
e i ati e finan ial lia ilitie 6,670 3,054 3,054 3,054 3,054 3,054 3,054 3,054 3,054 3,054 3,054 e i ati e finan ial lia ilitie
Total non-current liabilities 129,562 155,133 147,717 166,808 155,688 151,578 153,275 150,184 146,737 142,416 137,816 Total non-current liabilities
Total liabilities 186,296 186,968 189,638 198,527 196,759 197,175 193,431 191,965 189,708 186,485 183,344 Total liabilities
Net assets 1,508,927 1,514,676 1,567,900 1,572,967 1,579,595 1,689,301 1,702,739 1,718,798 1,875,353 1,895,235 1,920,056 Net assets
EQUITY EQUITY
Retained earnings 889,293 904,585 920,848 928,942 932,768 938,360 949,607 965,273 980,891 1,004,830 1,037,939 Retained earnings
Reserves and special funds 44,065 51,916 51,135 48,108 50,910 54,376 56,567 56,960 58,450 54,393 46,105 Reserves and special funds
Asset revaluation reserve 575,569 558,175 595,917 595,917 595,917 696,565 696,565 696,565 836,012 836,012 836,012 Asset revaluation reserve
Total equity attributable to Council 1,508,927 1,514,676 1,567,900 1,572,967 1,579,595 1,689,301 1,702,739 1,718,798 1,875,353 1,895,235 1,920,056 Total equity attributable to Council
146 PROSPECTIVE STATEMENT OF FINANCIAL POSITION
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
LIABILITIES LIABILITIES
CURRENT LIABILITIES CURRENT LIABILITIES
Creditors and other payables 15,159 19,587 19,629 19,382 18,688 20,167 20,678 22,254 23,395 24,442 25,849 Creditors and other payables
Provisions 2,276 2,207 2,251 2,296 2,342 2,389 2,437 2,486 2,535 2,586 2,638 Provisions
Borrowings 39,271 10,000 20,000 10,000 20,000 23,000 17,000 17,000 17,000 17,000 17,000 Borrowings
e i ati e finan ial lia ilitie 28 41 41 41 41 41 41 41 41 41 41 e i ati e finan ial lia ilitie
Total current liabilities 56,734 31,835 41,921 31,719 41,071 45,597 40,156 41,781 42,971 44,069 45,528 Total current liabilities
NON-CURRENT LIABILITIES NON-CURRENT LIABILITIES
Creditors and other payables 84 376 376 376 376 376 376 376 376 376 376 Creditors and other payables
Provisions 2,156 2,171 2,214 2,258 2,303 2,349 2,397 2,444 2,493 2,543 2,594 Provisions
Borrowings 120,652 149,532 142,073 161,120 149,955 145,799 147,448 144,310 140,814 136,443 131,792 Borrowings
e i ati e finan ial lia ilitie 6,670 3,054 3,054 3,054 3,054 3,054 3,054 3,054 3,054 3,054 3,054 e i ati e finan ial lia ilitie
Total non-current liabilities 129,562 155,133 147,717 166,808 155,688 151,578 153,275 150,184 146,737 142,416 137,816 Total non-current liabilities
Total liabilities 186,296 186,968 189,638 198,527 196,759 197,175 193,431 191,965 189,708 186,485 183,344 Total liabilities
Net assets 1,508,927 1,514,676 1,567,900 1,572,967 1,579,595 1,689,301 1,702,739 1,718,798 1,875,353 1,895,235 1,920,056 Net assets
EQUITY EQUITY
Retained earnings 889,293 904,585 920,848 928,942 932,768 938,360 949,607 965,273 980,891 1,004,830 1,037,939 Retained earnings
Reserves and special funds 44,065 51,916 51,135 48,108 50,910 54,376 56,567 56,960 58,450 54,393 46,105 Reserves and special funds
Asset revaluation reserve 575,569 558,175 595,917 595,917 595,917 696,565 696,565 696,565 836,012 836,012 836,012 Asset revaluation reserve
Total equity attributable to Council 1,508,927 1,514,676 1,567,900 1,572,967 1,579,595 1,689,301 1,702,739 1,718,798 1,875,353 1,895,235 1,920,056 Total equity attributable to Council
147 PROSPECTIVE STATEMENT OF CASH FLOWS
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
OPERATING ACTIVITIES OPERATING ACTIVITIES
CASH WAS PROVIDED FROM: CASH WAS PROVIDED FROM:
Rates 65,357 83,135 88,557 92,490 97,599 102,561 108,252 114,359 120,966 128,315 136,135 Rates
Rates received on behalf of Northland Regional Council 10,350 10,472 10,681 10,895 11,113 11,335 11,562 11,793 12,029 12,270 12,515 Rates received on behalf of Northland Regional Council
Subsidies received 15,360 20,897 19,099 18,060 16,390 18,449 18,820 17,961 20,107 18,972 19,206 Subsidies received
Other income 6,097 3,996 3,347 3,655 3,402 3,410 3,451 4,784 3,471 3,521 3,557 Other income
Receipts from customers and services 29,113 15,220 16,363 16,942 17,319 17,602 18,095 18,500 18,974 19,585 20,062 Receipts from customers and services
Interest from investments 420 63 61 58 55 53 50 47 47 47 47 Interest from investments
Dividends from investments - 250 250 250 250 250 250 250 250 250 250 Dividends from investments
Rental of property 3,692 4,810 5,082 5,168 5,260 5,356 5,584 5,714 5,822 5,957 6,048 Rental of property
CASH WAS APPLIED TO: CASH WAS APPLIED TO:
Payments to suppliers and employees 72,177 76,545 80,544 83,388 84,685 84,795 87,586 91,520 94,795 98,095 101,351 Payments to suppliers and employees
Rates paid to Northland Regional Council 10,350 10,472 10,681 10,895 11,113 11,335 11,562 11,793 12,029 12,270 12,515 Rates paid to Northland Regional Council
Interest paid on public debt 8,579 8,395 9,001 9,185 9,326 9,251 9,161 8,922 8,734 8,521 8,261 Interest paid on public debt
Net cash flow from operating activities 39,283 43,431 43,214 44,050 46,264 53,635 57,755 61,173 66,108 70,031 75,693 Net cash flow from operating activities
INVESTING ACTIVITIES INVESTING ACTIVITIES
CASH WAS PROVIDED FROM: CASH WAS PROVIDED FROM:
Proceeds from sale of property, plant and equipment - - 10,500 ------Proceeds from sale of property, plant and equipment
Maturity of investments and loans 10,000 ------Maturity of investments and loans
CASH WAS APPLIED TO: CASH WAS APPLIED TO:
u a e and de el ment fi ed a et 49,987 58,596 56,354 52,897 44,900 51,560 53,306 57,773 62,057 65,520 70,617 u a e and de el ment fi ed a et
Purchase of investments and loans provided ------Purchase of investments and loans provided
Net cash flow from investing activities Net cash flow from investing activities
FINANCING ACTIVITIES FINANCING ACTIVITIES
CASH WAS PROVIDED FROM: CASH WAS PROVIDED FROM:
n ea e de ea e in de t 63,284 14,532 2,540 9,047 n ea e de ea e in de t
Loan repayments received 261 ------Loan repayments received
CASH WAS APPLIED TO: CASH WAS APPLIED TO:
Net repayment of public debt 62,580 ------Net repayment of public debt
Loans granted 35 ------Loans granted
et a l m finan in a ti itie 930 14,532 2,540 9,047 et a l m finan in a ti itie
Net increase/(decrease) in cash, cash equivalents and bank 226 (633) (100) 200 200 919 98 262 555 140 424 Net increase/(decrease) in cash, cash equivalents and bank overdrafts overdrafts Cash, cash equivalents and bank overdrafts at the beginning of 443 1,113 480 380 580 780 1,699 1,797 2,059 2,614 2,754 Cash, cash equivalents and bank overdrafts at the beginning of the year the year Cash, cash equivalents and bank overdrafts at the end of the 669 480 380 580 780 1,699 1,797 2,059 2,614 2,754 3,178 Cash, cash equivalents and bank overdrafts at the end of the year year
148 PROSPECTIVE STATEMENT OF CASH FLOWS
ANNUAL LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR LTP YEAR PLAN 1 2 3 4 5 6 7 8 9 10 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
OPERATING ACTIVITIES OPERATING ACTIVITIES
CASH WAS PROVIDED FROM: CASH WAS PROVIDED FROM:
Rates 65,357 83,135 88,557 92,490 97,599 102,561 108,252 114,359 120,966 128,315 136,135 Rates
Rates received on behalf of Northland Regional Council 10,350 10,472 10,681 10,895 11,113 11,335 11,562 11,793 12,029 12,270 12,515 Rates received on behalf of Northland Regional Council
Subsidies received 15,360 20,897 19,099 18,060 16,390 18,449 18,820 17,961 20,107 18,972 19,206 Subsidies received
Other income 6,097 3,996 3,347 3,655 3,402 3,410 3,451 4,784 3,471 3,521 3,557 Other income
Receipts from customers and services 29,113 15,220 16,363 16,942 17,319 17,602 18,095 18,500 18,974 19,585 20,062 Receipts from customers and services
Interest from investments 420 63 61 58 55 53 50 47 47 47 47 Interest from investments
Dividends from investments - 250 250 250 250 250 250 250 250 250 250 Dividends from investments
Rental of property 3,692 4,810 5,082 5,168 5,260 5,356 5,584 5,714 5,822 5,957 6,048 Rental of property
CASH WAS APPLIED TO: CASH WAS APPLIED TO:
Payments to suppliers and employees 72,177 76,545 80,544 83,388 84,685 84,795 87,586 91,520 94,795 98,095 101,351 Payments to suppliers and employees
Rates paid to Northland Regional Council 10,350 10,472 10,681 10,895 11,113 11,335 11,562 11,793 12,029 12,270 12,515 Rates paid to Northland Regional Council
Interest paid on public debt 8,579 8,395 9,001 9,185 9,326 9,251 9,161 8,922 8,734 8,521 8,261 Interest paid on public debt
Net cash flow from operating activities 39,283 43,431 43,214 44,050 46,264 53,635 57,755 61,173 66,108 70,031 75,693 Net cash flow from operating activities
INVESTING ACTIVITIES INVESTING ACTIVITIES
CASH WAS PROVIDED FROM: CASH WAS PROVIDED FROM:
Proceeds from sale of property, plant and equipment - - 10,500 ------Proceeds from sale of property, plant and equipment
Maturity of investments and loans 10,000 ------Maturity of investments and loans
CASH WAS APPLIED TO: CASH WAS APPLIED TO:
u a e and de el ment fi ed a et 49,987 58,596 56,354 52,897 44,900 51,560 53,306 57,773 62,057 65,520 70,617 u a e and de el ment fi ed a et
Purchase of investments and loans provided ------Purchase of investments and loans provided
Net cash flow from investing activities Net cash flow from investing activities
FINANCING ACTIVITIES FINANCING ACTIVITIES
CASH WAS PROVIDED FROM: CASH WAS PROVIDED FROM:
n ea e de ea e in de t 63,284 14,532 2,540 9,047 n ea e de ea e in de t
Loan repayments received 261 ------Loan repayments received
CASH WAS APPLIED TO: CASH WAS APPLIED TO:
Net repayment of public debt 62,580 ------Net repayment of public debt
Loans granted 35 ------Loans granted
et a l m finan in a ti itie 930 14,532 2,540 9,047 et a l m finan in a ti itie
Net increase/(decrease) in cash, cash equivalents and bank 226 (633) (100) 200 200 919 98 262 555 140 424 Net increase/(decrease) in cash, cash equivalents and bank overdrafts overdrafts Cash, cash equivalents and bank overdrafts at the beginning of 443 1,113 480 380 580 780 1,699 1,797 2,059 2,614 2,754 Cash, cash equivalents and bank overdrafts at the beginning of the year the year Cash, cash equivalents and bank overdrafts at the end of the 669 480 380 580 780 1,699 1,797 2,059 2,614 2,754 3,178 Cash, cash equivalents and bank overdrafts at the end of the year year
149 SIGNIFICANT FORECASTING ASSUMPTIONS
FINANCIAL IMPACT FOR HIGH FINANCIAL LEVEL OF FINANCIAL IMPACT FOR RISK RISK ASSUMPTIONS UNCERTAINTY ASSUMPTION WITH HIGH LEVEL OF UNCERTAINTY
GENERAL ASSUMPTIONS
District growth: the number of residential High The level of subdivision and High Every 1% of Development ratepayers in Whangarei is expected to de el ment a ti it i di fi ult Contribution revenue not grow each year as more dwellings are built to forecast and carries a high achieved will lead to a reduction or properties divided – details of expected level of uncertainty. Should in income of approximately areas of growth are outlined in Council’s Development Contributions $21,000 in year 1, increased to Growth Strategy which can be viewed on revenue drop further in the approximately $23,000 in year Council’s website. future there may need to be 10, reducing available funding Development contributions: the value of a corresponding reduction in for Council activity. development contributions collected is Council expenditure. dependent on the number of subdivision lots developed and on the level of new service connections taking place. Development contributions are forecast based on historical data with a growth factor applied. Council has assumed no effect from the change in policy.
Rate increase: the following rates Medium Not applicable Medium Not applicable increases have been applied: Year one: An initial 5% increase plus the al e nment t nde and an increase of $50 to the Annual General ni m a e Years two-10: A 2% increase each year e ludin e u e ate lu t in line with Council’s Growth Model 2014, lu These increases are considered to be necessary in order to ensure rates income i u fi ient undin u e Water rates will only be increased by LGCI and growth.
Inflation: The impact of inflation has been Medium Not applicable High If inflation is 1% more or factored into producing the Prospective less than the forecast Local Financial Statements. This has been Government Cost Index of achieved by using Price Level Adjusters 2.45% in year two of the LTP, u ed m ee a e total revenue would vary by each of the years of the LTP including the approximately $1.324 million, impact of inflation from the 2014-15 year total income by approximately to year one of the LTP. These adjusters $1.239 million, and the net will be updated for each year covered in surplus would move by the current LTP during subsequent Annual approximately $85k. Plan and LTP processes using BERL data t miti ate t i i e main finan ial risk for Council is that operating and capital expenditure items rise faster than revenue items but the likelihood of this is considered to be low.
User fees: increases are based on a Medium Not applicable Medium Not applicable percentage increase for District Growth, or in line with actual expected cost increase a di l ed in t e i e le el ad u te ta le ll in t e e a um ti n i i a umed t e u fi ient undin purposes. These will be reviewed annually to ensure compliance with Council’s finan ial li ie
150 FINANCIAL IMPACT FOR HIGH FINANCIAL LEVEL OF FINANCIAL IMPACT FOR RISK RISK ASSUMPTIONS UNCERTAINTY ASSUMPTION WITH HIGH LEVEL OF UNCERTAINTY
Forestry revaluation: Council has not Low Not applicable Medium Not applicable budgeted for fair value movements in forestry due to the uncertainty of prediction. Any fair value movement will be non-cash and have an immaterial impact.
Property sales: Council has assumed there Medium If the targeted level of property Low Not applicable will be $10.5 million of property sales over sales is not achieved the capital the course of the Plan. works programme may have to be adjusted and this would impact on levels of service.
Rental income: Council has assumed Low Not applicable Low Not applicable rental increases based on inflation but timed to coincide with rental lease renewals.
Investment property revaluation: Council Low Not applicable Medium Not applicable has not budgeted for fair value movements in investment properties due to the uncertainty of prediction. Any fair value movement will be non-cash and have an immaterial impact.
Climate change: Council’s Activity Low Not applicable Medium Not applicable Management Planning Policy and Practice Document contains the following Policy Statement on Climate Change: “Whangarei District Council shall consider the effects of climate change on the activity in accordance with the latest Ministry for the Environment guidelines”. The impact on Council’s infrastructure over the 10 years of the LTP is considered acceptable when compared with the currently-used design standards for new infrastructure, providing Ministry for the Environment predictions are generally accurate.
EXPENDITURE ASSUMPTIONS
Interest rates: the average cost of Medium Interest rate risk exposure is Medium A 1% movement in interest, borrowing has been assumed to be 5.65% managed through long term after factoring in long term for existing and new debt. This is based swaps and forward rate cover. swaps would affect the on the weighted average cost of capital operating budgets by an calculated across the period of the LTP. average of $897,000 pa. This is hedged to a high degree. The debt level is assumed to increase less than 10% throughout the Plan.
Staff costs: staff costs are expected to Medium Not applicable Medium Not applicable increase by an average of 2% p.a. for the next three years, slightly higher than t e ta fin i e ad u te e remaining years of the Plan are based on t e ta fin i e ad u te a i u additional roles have been included in the Plan due to expected growth.
Depreciation funding: money to fund Medium Not applicable Medium Not applicable depreciation comes from rates. The capital e enditu e t e la e a et ene al will be funded by rates collected to cover the cost of depreciation. Any surplus depreciation component will be used to repay borrowings. Any shortfall in funding requirements will be met through subsidies, operating surplus or increased debt. Further information can be found in the Revenue and Financing Policy, the Financial Strategy and the Infrastructure Strategy.
151 FINANCIAL IMPACT FOR HIGH FINANCIAL LEVEL OF FINANCIAL IMPACT FOR RISK RISK ASSUMPTIONS UNCERTAINTY ASSUMPTION WITH HIGH LEVEL OF UNCERTAINTY
Unfunded depreciation: Council does not Low Not applicable Low Not applicable fund depreciation on transportation assets to the extent that NZTA funds renewals, and this replacement capital expenditure is based on current NZTA funding rates.
CAPEX borrowings: the borrowings for Medium Not applicable Low Not applicable capital expenditure are assumed to be repaid at the shorter of the life of the asset or 20 years for determining the funding for that asset.
CAPEX: capital expenditure projects are Medium Not applicable Medium Not applicable. assumed to be completed in the years in which they are budgeted for. Any carry forwards in a year are usually at a similar level to the previous year, resulting in a minimal net effect.
ASSET ASSUMPTIONS
Subsidies: New Zealand Transport High a lanned i nifi ant a ital High a lanned i nifi ant a ital en u idie a e een project that has a capital project that has a capital included based on Central Government subsidy associated with it is subsidy associated with it is contributions to certain Capital Expenditure not approved by NZTA then this not approved by NZTA then this – most subsidies range between 53-61%, will cause a reduction in capital will cause a reduction in capital although there are two 100% funded subsidy income and could subsidy income and could projects. All subsidies are disclosed within possibly cause an existing possibly cause an existing the operating revenue and are contingent balanced budget in a given year balanced budget in a given year on the applicable capital projects taking m a e e ti e t m a e e ti e t place. become unbalanced. become unbalanced. Council has assumed that there are no changes to the subsidy rates for the term of the plan. The granting of subsidies for e ifi amme a e ntin ent n being approved by NZTA. Council will not know whether projects for which they have applied for funding from NZTA are approved until after the LTP is adopted by Council.
Depreciation: depreciation rates for each Low Not applicable Medium Not applicable asset group have been calculated using rates included in the Accounting Policies. Depreciation rates on infrastructural assets are based on the 2014 revaluation rate average for each activity. Depreciation expense is reduced by an average rate of renewals, assuming capex built to replace existing assets will only marginally increase depreciation.
Infrastructural asset revaluation: Medium Not applicable Medium Not applicable an assumption has been made that revaluation of infrastructure assets will occur every three years, next due 1st July i i a an e m i t i al revaluations occurring as at 30 June every t i d ea ea e aluati n ea an in lati na ate a een a lied to the previous years’ asset value to arrive at an estimated depreciated replacement cost. The depreciation expense has been calculated on the new revaluation balance. Differences in value have been attributed to individual asset revaluation reserves.
Useful lives: useful lives for each asset Low Not applicable Low Not applicable group have been listed in the Accounting Policies, and are in accordance with Appendix B of the 2015 Infrastructure Strategy.
152 FINANCIAL IMPACT FOR HIGH FINANCIAL LEVEL OF FINANCIAL IMPACT FOR RISK RISK ASSUMPTIONS UNCERTAINTY ASSUMPTION WITH HIGH LEVEL OF UNCERTAINTY
Vested assets: vested asset income is Low Not applicable Low Not applicable inconsistent from year to year and as a n e uen e i di fi ult t e a t t a therefore been reflected at a flat rate of $2.5 million per year in the Plan. Vested asset income has no cash impact.
Funding sources: future replacement of Low Not applicable Low Not Applicable i nifi ant a et i a umed t e unded in line with the Revenue and Financing Policy.
Other financial assets: no movement Low Not applicable Low Not Applicable in the value of Shares held in Civic Assurance Limited and the New Zealand Local Government Funding Agency has been assumed in the forecast nor any movement in the value of investments in subsidiaries.
Investment properties: no movement Low Not applicable Low Not Applicable in the value of investment properties has been reflected in the Plan given the di fi ult e a tin utu e alue and also taking into consideration that if values were forecast to change, it would not have an impact on cash requirements.
Biological assets and derivative financial Low Not applicable Low Not Applicable assets: no movement in the value of i l i al a et and de i ati e finan ial assets has been reflected in the Plan due t di fi ult in e a tin utu e alue Any movements in these assets would have no cash impact to the Plan.
LIABILITY ASSUMPTIONS
Interest: interest calculated on debt is Medium Not applicable Medium Not applicable based on historical average monthly movements and the impact of current and forecasted interest rate hedging.
Borrowings: it is assumed that Council Low Not applicable Low Not applicable will have the facilities to secure funding as required.
Derivative financial liabilities: no Low Not applicable Low Not applicable movement in the value of derivative finan ial lia ilitie a een e le ted in t e lan due t di fi ult in e a tin utu e values. Any movements in these assets would have no cash impact to the Plan.
STRATEGIC RESOURCE CONSENTS
Resource consents: the necessary Low Not applicable Low Not applicable Resource Consents required for capital projects will be applied for in due course to align with the planned project timeframes. We assume conditions for Resource n ent ill n t e alte ed i nifi antl
OTHER ASSUMPTIONS
Council offices: the project costs to re- Medium Not applicable Medium Not applicable house Council into one building have been estimated at $10.4 million. Interest costs have been calculated on the assumption that the project will be 100% funded by borrowings. Various occupancy expenses have been reduced accordingly. The project would have a 12-year payback period.
153 FINANCIAL IMPACT FOR HIGH FINANCIAL LEVEL OF FINANCIAL IMPACT FOR RISK RISK ASSUMPTIONS UNCERTAINTY ASSUMPTION WITH HIGH LEVEL OF UNCERTAINTY
Strategic assets: Council has not planned Low Not applicable Low Not applicable for the ownership of any strategic assets to be transferred to another party. Council receives vested assets in satisfaction of various development contribution charges.
Forecasts: Business and Economic Medium Not applicable Medium Not applicable e ea imited n t u ted t e e a t in ea e in e enue e ludin ate and t al ut itie in October 2014 for use in their budgeting processes for LTPs. It is assumed these factors are appropriate for Council forecasts.
Currency movement: Council does not Low Not applicable Low Not applicable a e an i nifi ant e u e t u en movements and consequently has not taken them into account.
Emissions trading scheme (ETS): Medium Not applicable Medium Not applicable transport and electricity costs – due to the level of uncertainty around the implementation of the scheme the effect of the emissions trading scheme has been a umed at nil n i nifi ant im a t i expected in regards to the ETS, Council has not forecast any related cost implications for forestry activities.
Local Government reorganisation: Council Low Not applicable Low Not applicable has developed forecasts based on the assumption that the unitary council is not established and Council will continue to operate.
Flood and storm damage: Council does Medium Not applicable Medium Not applicable not budget for storm events, as referred to in the 2015 Infrastructure Strategy. Lack of funding provision for emergency works may result in reduced renewals as renewal funding gets diverted to fund flood damage repairs.
SUBSIDIARY ASSUMPTIONS
It is assumed that Council will receive Low Not applicable Low Not applicable annual dividends from Northland Regional andfill imited a tne i t u ut t e term of the plan.
154 ACCOUNTING POLICIES
STATEMENT OF COMPLIANCE
Reporting entity an a ei i t i t un il un il i a te it ial l al aut it e ned t e al e nment t un il n i t t e un il nt llin entit and it nt lled entitie an a ei t u eum u t t land ent ent e u t an a ei Qua a den u t an a ei a te imited t land e i nal andfill imited a tne i an a ei i t i t i t and Springs Flat Contractors Limited. • an a ei t u eum u t i a a ita le t u t t at maintain and di la a t lle ti n and i e ned t e a ita le u t t e ealand i a ull nt lled entit finan ial e tin u e – whilst Council i n t in l ed in t e da t da e atin a ti itie un il e n t e e all finan ial mana ement and enefit m t e WAM activities. • Northland Events Centre Trust is a charitable trust that operates and maintains a multi-purpose centre for sporting and cultural activities and is governed by the Charitable Trusts Act 1957 of New Zealand. Northland Events Centre Trust is a fully controlled entit finan ial e tin u e – whilst Council is not involved in the day-to-day operating activities, Council governs t e finan ial mana ement and enefit m it a ti itie • Whangarei Quarry Gardens Trust is a charitable trust that operates a recreational facility, and is governed by the Charitable Trusts Act 1957 of New Zealand. Council has representation on the board of Trustees. • an a ei a te imited ned i a a tne i ldin m an t e int entu e et een an a ei i t i t Council and Northland Waste Limited. Whangarei Waste Limited is governed by the Companies Act 1993 and operates in New Zealand only. • t land e i nal andfill imited a tne i ned i e ated unde a limited a tne i e limited a tne are Whangarei District Council and Northland Waste Limited. The main activity of the partnership is to provide waste disposal a ilitie t e an a ei i t i t t land e i nal andfill imited a tne i i e ned t e m anie t and operates in New Zealand only. • an a ei i t i t i t imited ned i a limited lia ilit m an t at ide ai t and landin a ilitie i governed by the Companies Act 1993 and operates in New Zealand only. • in lat nt a t imited ned i a limited lia ilit m an and i e ned t e m anie t and operates in New Zealand only. Pursuant to the Local Government Act 2002, Whangarei Art Museum Trust, Northland Events Centre Trust, Whangarei Quarry a den u t an a ei a te imited t land e i nal andfill imited a tne i an a ei i t i t i t and in lat nt a t imited a e un il nt lled ani ati n Principal activity The principal activity of Council is the provision of local authority services, including resource management, biosecurity, transport services, hazard management, recreation and cultural services and regional representation to ratepayers and residents of the Whangarei District. Primary objective e ima e ti e un il i t ide d e i e mmunit and ial enefit at e t an ma in a finan ial etu n un il i de i nated a a u li enefit ntit ie t e u e finan ial e tin Accounting Principles compliance meet all t e e ui ement l al e nment le i lati n e ide t et finan ial in mati n • ene all e ted untin in i le e ulated tatement inan ial iti n m e en i e n me and Expense, etc • n n m liant undin m a t tatement di l u e tatement a e ui ed edule t e al e nment inan ial e tin and uden e e ulati n 2014. e di e en e et een t e e t et in mati n a e t at t e e ulated finan ial tatement mu t ad e e t requirements.
155 The FIS is intended to make the sources and applications of Council funds more transparent to its stakeholders than might be t e a e i nl t e u ual finan ial tatement e e ided e i e i ed t e al e nment inan ial e tin and uden e e ulati n and i e ui ed t e al e nment t Statement of Compliance and Basis of Preparation STATEMENT OF COMPLIANCE e finan ial tatement a e een e a ed in a dan e it t e al e nment t i e ui e m lian e it generally accepted accounting practice in New Zealand. MEASUREMENT BASE e finan ial tatement a e een e a ed n a i t i al t a i e e t in e tment e tie e t a et e tain la e e t lant and e ui ment de i ati e finan ial in t ument and a aila le ale in e tment i a e een measured at fair value. PRESENTATION CURRENCY AND ROUNDING e finan ial tatement a e e ented in e ealand d lla and alue a e unded t t e nea e t t u and d lla unless otherwise stated. BASIS OF PREPARATION e finan ial tatement m l it e ealand ene all e ted untin in i le ntained in t e al e nment t e ti n e le i lati e definiti n i ntained in t e inan ial e tin t i in tu n define a finan ial e tin tanda d t at a e een a ed t e e ealand te nal e tin a d i in lude tanda d un il a a lied t e e tanda d in e a in t e finan ial tatement t e e i d ul t une untin tanda d in lude e ui ement and uidan e e ifi t u li enefit entitie e finan ial tatement a e e a ed unde t e i t i al t n enti n a m dified t e e aluati n • a aila le ale finan ial a et • finan ial a et and lia ilitie in ludin de i ati e in t ument at ai alue t u u lu defi it • certain classes of property, plant and equipment. The Funding Impact Statements are intended to increase transparency concerning the sources and applications of Council funds a e i ed t e al e nment inan ial e tin and uden e e ulati n and t e al e nment t 2002. e di l u e tatement tate un il lanned finan ial e man e in elati n t nati nal en ma t ena le t e a e ment et e un il i udentl mana in it e enue e en e a et lia ilitie and ene al finan ial dealin INVESTMENTS IN CONTROLLED ENTITIES n e tment in nt lled entitie eld un il a e a unted at t le an im ai ment a e in t e e a ate finan ial statements of Council. DIVIDENDS AND OTHER DISTRIBUTIONS Dividends and other distributions from controlled entities are recognised as revenue in Council’s separate Statement of Financial Performance, but only to the extent that these distributions are received from the controlled entity’s accumulated comprehensive revenue and expense arising after acquisition. Such distributions do not impact the recorded cost of the investment. Amounts due or received from controlled entities in excess of this are regarded as recovery of investment and are recognised as a reduction in the cost of the investment. At the end of each reporting period, Council assesses whether there are any indicators that the carrying value of the investment in controlled entities may be impaired. Where such indicators exist, to the extent that the carrying value of the investment exceeds its recoverable amount, an impairment loss is recognised. JOINT VENTURE A joint venture is a binding arrangement whereby two or more parties are committed to undertake an activity that is subject to joint control. Joint control is the agreed sharing of control over an activity. intl nt lled e ati n un il e ni e in it finan ial tatement t e a et it nt l t e lia ilitie and e en e it incurs, and the share of revenue that it earns from the joint venture.
156 Effect of first-time adoption of Public Benefit Entity (PBE) International Public Sector Accounting Standards (IPSAS) i i t e fi t et e ti e finan ial tatement un il t at i e ented in a dan e it untin Standards. Council has previously reported in accordance with the New Zealand Equivalent to International Financial Reporting tanda d t e t at a lied t u li enefit ntitie e a untin li ie ad ted in t e e finan ial tatement a e n i tent it t e t e e i u finan ial ea e e t in tan e en t e a untin e tin e ui ement a tanda d a e di e ent t e ui ement unde a outlined below. e an e t a untin li ie and di l u e au ed fi t time a li ati n untin tanda d a e a ll
PRESENTATION OF FINANCIAL STATEMENTS
e e a e min di e en e et een and t e e ui alent tanda d e e di e en e a e an e e t n disclosure only. Transitional provision n fi t time ad ti n tanda d a et and lia ilitie a i in m e enue m n n e an e t an a ti n t at occurred before the date of transition to PBE Standards are recognised and measured in accordance with PBE Standards as required by PBE IPSAS. Council shall recognise any resulting change by adjusting net assets/equity. Revenue recognition n de e enue in ene al t e e ni ed a e enue in t e finan ial e tin e enue mu t meet t e ll in in i al criteria: a it i a le t at a utu e e n mi enefit e i e tential ill l t t e ani ati n t e e enefit an e mea u ed elia l t an a ti n mu t e identifia le Revenue definition e enue in lude nl t e in l e n mi enefit e i e tential e ei ed and e ei a le un il n it n account. Amounts collected as an agent of the government, another government organisation or on behalf of other third parties a e e luded m e enue en idin u e i e d e n t deli e e n mi enefit e i e tential t at l t Council, and do not result in increases in assets or decreases in liabilities. Exchange and non-exchange transactions Exchange transactions are transactions in which Council receives assets or services, or has liabilities extinguished, and directly gives approximate value in form of goods, services or the use of assets to rate payers and the wider Whangarei community. Non-exchange transactions are not exchange transactions – Council receives value from rate payers and the wider Whangarei community without directly giving approximate value in exchange. Professional judgment Council has exercised professional judgement in determining whether the substance of a transaction is that of a non-exchange or an exchange transaction. e e due t t e di fi ult in la i in me e enue t eam a e an e n n e an e and limited a ti e t e e t at this early stage in applying the new PBE accounting standards, we believe our revenue recognition materially complies with the new PBE accounting standards. The following summarises Council’s assessment: REVENUE FROM EXCHANGE TRANSACTIONS The following revenue is deemed exchange revenue as the transactions relating to the revenue streams below provide an equal ma et alue in e an e and t t un il a e e e ed in ull • e t ental e enue mme ial and e idential te en i ne u in i e luded • dividends • finan e e enue inte e t • direct charges – revenue from goods and services is recognised by reference to the stage of completion of the service.
157 The revenue is recognised only to the extent that the expenses incurred are eligible to be recovered: • water supply rates • retail sales • hireage fees • a in a e ental n t in ludin a in mete e enue REVENUE FROM NON-EXCHANGE TRANSACTIONS Revenue from non-exchange transactions are broadly split into two sub-groups: • ta e u a ene al and ta eted ate – compulsory payments to Council in accordance with laws and regulations • t an e u a fine de t ant t e u idi ed e enue • revenue is deemed non-exchange revenue as the transactions relating to the revenue streams below do not provide an equal value in exchange and costs to Council are subsidised to varying degrees: » general rates – set annually and invoiced within the year. Council recognises revenue from rates when Council has struck the general rate and provided the rates assessment. General rates revenue is measured at the amount assessed, which is the fair value of the cash received or receivable » targeted rates – set annually and invoiced within the year. Council recognises revenue from targeted rates when Council has struck the targeted rate and provided the targeted rates assessment. Targeted rates revenue is measured at the amount assessed, which is the fair value of the cash received or receivable » fine u a t a fi and a in in in ement – un il e ni e e enue m fine en t e n ti e in in ement breach is served by Council » government grants – a e e ni ed en un il tain nt l t e t an e ed a et a d e i e e t and · it i a le t at t e e n mi enefit e i e tential elated t t e a et ill l t un il and an e mea u ed reliably · the transfer is free from conditions that require the asset to be refunded or returned to the Government if the conditions a e n t ulfilled » development contributions – are recognised as revenue when Council has the right to receive the funds for which the contribution was levied » other gains – are recognised as revenue at fair value » other direct charges – includes services where the price does not allow Council to fully recover the cost of providing the e i e u a e u e n ent uildin n ent ate nne ti n d li en in et and e e t e t all i subsidised by income from other activities, such as rates. Generally there are no conditions attached to such revenue: · resource and building consents · rubbish bags/labels · li en e d li u et · petrol tax · water · landfill · commission · pensioner rent. te e t i ene ate emi i n and un lle ta le ate a e al defined a n n e an e e enue Other Revenue e u ent anal i t e e enue indi ate a e an e and n n e an e e enue lit Stipulation me a et t an e e ant u it t e unde tandin t at t e ill e u ed in a a ti ula a – usually by an entity e te nal t un il e e nditi n ti ulate t at utu e e n mi enefit em died in t e a et a e e ui ed t e n umed un il a e ified – unused assets may be returned to the transferor. Revenue reduction linked to a liability A present obligation may give rise to a liability in respect to a non-exchange transaction. Present obligations may be imposed by la an t e indin a eement ti ulati n it e a d t t e a et t an e
158 In the event Council has a present obligation recognised as a liability, the carrying amount of the liability must be reduced and also a reduced amount of revenue equal to the liability reduction recognised. Concessionary loans Loans granted to or received by Council below market rates are concessionary loans. In the event a concessionary loan is anted an di e en e et een t e ai alue t e l an at ma et ate and t e a tual t an a ti n i e i e ni ed a an expense at the point of initial recognition. Note: This excludes the waiver of debt as it results from loans initially granted or received at market terms. Employee benefits m l ee enefit in lude • t te m em l ee enefit – a e ala ie and ial e u it nt i uti n aid annual lea e and aid i lea e fit a in and nu e i a a le it in t el e m nt t e end t e e i d and n n m neta enefit u a medi al a e u in a and ee u idi ed d e i e u ent em l ee • t em l ment enefit – en i n t e eti ement enefit t em l ment li e in u an e and t em l ment medical care • t e l n te m em l ee enefit – ma in lude l n e i e lea e a ati al lea e u ilee t e l n e i e enefit l n te m di a ilit enefit and i t e a e n t a a le ll it in t el e m nt a te t e end t e e i d fit a in bonuses, and deferred compensation • te minati n enefit WAGES, SALARIES, ANNUAL LEAVE AND SICK LEAVE ia ilitie a e and ala ie in ludin n n m neta enefit annual lea e and a umulated i lea e i e ni ed in u lu efi it du in t e e i d in i t e em l ee ende ed t e elated e i e and i ene all e e ted t e ettled it in m nt t e e tin date e lia ilitie t e e enefit a e mea u ed at t e am unt e e ted t e aid en the liabilities are settled. Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable. LONG-TERM EMPLOYEE ENTITLEMENTS Loyalty and performance bonuses are one-off payments to staff members who have provided 10 or more years of service to Council and have attained the prerequisite performance achievements over the preceding three years of service. The liability is assessed using current rates of pay taking into account years of service, years to entitlements and likelihood that staff will reach the point of entitlement and achieve the targeted performance level. These estimated amounts are discounted to their present value using an interpolated discount rate, using the three year SWAP rate, plus a risk premium. Borrowing costs All borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that Council incurs in connection with the borrowing of funds. Council has chosen not to capitalise borrowing costs directly attributable to the acquisition, construction or production of assets. Other gains and losses Other gains and losses include: • ai alue ain and l e n finan ial in t ument at ai alue t u u lu defi it • unrealised fair value gains and losses on the revaluation of investment properties • a e u lu defi it a iate and int entu e • realised gains and losses on the sale of PPE held at cost. Overhead cost allocation • i e t t a e t e t di e tl att i uta le t i nifi ant a ti it • ndi e t t a e t e t i ann t e identified in an e n mi all ea i le manne it a e ifi i nifi ant a ti it All indirect costs are allocated to operating activities based on cost drivers and related activity/usage information. The costs of internal services not directly charged to activities are allocated as overheads using appropriate cost drivers such as activity/ usage information including staff numbers. Landfill post closure costs un il a e at t e e land andfill a a le al li ati n unde it e u e n ent t ide n in maintenan e and m nit in e i e at t e landfill ite a te l u e i i n t l u e t i e ni ed a a lia ilit en t e obligation for post-closure arises. The provision is measured based on the present value of future cash flows expected to be incurred, taking into account future events including new legal requirements and known improvements in technology.
159 e i i n in lude all t a iated it landfill t l u e m unt ided landfill t l u e a e a itali ed t t e landfill a et e e t e i e i e t utu e e n mi enefit t e tained m nent t e a itali ed landfill a et a e depreciated over their useful lives. The discount rate used is a pre-tax rate that reflects current market assessments of the time alue m ne and t e i e ifi t un il LANDFILL CONSENTS andfill n ent a e a itali ed n t e a i t e am unt aid t un il e u e n ent t n t u t a landfill at Puwera. AFTERCARE COSTS t land e i nal andfill imited a tne i a an li ati n t m nit and mana e i t e landfill t l u e e aftercare period is estimated at 30 years and the estimated costs have been capitalised after applying an inflation factor and discounting to present value. Goods and Services Tax (GST) ll item in t e finan ial tatement a e e lu i e it t e e e ti n e ei a le and a a le i a e tated a GST inclusive. When GST is not recoverable as an input tax then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to the Inland Revenue Department is included as part of receivables or payables in t e tatement inan ial iti n m unt elatin t in e tin and finan in a ti itie a e la ified a e atin a flows in the Statement of Cash Flows. Income tax Council is not subject to income tax except for income derived from Council Controlled Organisations. Income tax charged to Council includes both current and deferred tax, and is calculated using tax rates that have been enacted or substantively enacted at balance date. Current tax is the expected income tax payable on the taxable income for the year plus any adjustment to income tax payable in respect of previous years. Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses. Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying am unt a et and lia ilitie finan ial e tin u e and t e am unt u ed ta ati n u e Deferred tax is not recognised if the temporary differences arising from goodwill are not deductible for tax purposes, the initial e niti n a et lia ilitie t at a e t eit e a untin ta a le fit di e en e elatin t in e tment in subsidiaries to the extent that they will not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance date. de e ed ta a et i e ni ed nl t t e e tent t at it i a le t at utu e ta a le fit ill e a aila le a ain t i t e a et an e utili ed e e ed ta a et a e edu ed t t e e tent t at it i n l n e a le t at t e elated ta enefit ill be realised. Current tax and deferred tax is recognised in the Statement of Comprehensive Revenue and Expenses except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Cash and cash equivalents Cash equivalents are held for the purpose of meeting short term cash commitments rather than for investment or other purposes. For an investment to qualify as a cash equivalent: • it must be readily convertible to a known amount of cash • e u e t t an in i nifi ant i an e in alue e e e an in e tment n mall ualifie a a a e ui alent nl en it a a t matu it a t ee m nt less from the date of acquisition. Equity investments are excluded from cash equivalents unless they are, in substance, cash equivalents. Bank overdrafts that are repayable on demand form an integral part of Council cash management and are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. They are included in current liabilities in the Statement of Financial Position. Financial assets un il la ifie it finan ial a et int u ate ie – t e la ifi ati n de end n t e u e i t e in e tment e e a ui ed ana ement dete mine t e la ifi ati n it in e tment at initial e niti n and e e aluate t i designation at every reporting date.
160 FINANCIAL ASSETS AT FAIR VALUE THROUGH SURPLUS OR DEFICIT Financial assets in this category include: • finan ial a et eld t adin • finan ial a et de i nated at ai alue t u u lu defi it at in e ti n ll finan ial a et finan ial lia ilitie a e la ified a eld t adin a ed e a untin a n t een unde ta en inan ial a et in t i ate in lude » finan ial in t ument u a inte e t ate a » forward rate agreements which are accounted for at trade date. After initial recognition they are measured at their fair values. Gains or losses on measurement are reflected in the Statement of Comprehensive Revenue and Expense. LOANS AND RECEIVABLES an and e ei a le a e n n de i ati e finan ial a et it fi ed dete mina le a ment t at a e n t u ted in an a ti e market. They are included in current assets, except for maturities greater than 12 months after balance date, which are included in non- current assets. Financial assets in this category include: • cash and cash equivalents • trade and other receivables • loans to community organisations • related party loans. After initial recognition, loans and receivables are measured at amortised cost using the effective interest rate method. Gains and losses due to asset impairment or de-recognition are recognised in the Statement of Comprehensive Revenue and Expense. Loans to community organisations at nil, or below market interest rates are initially recognised at the present value of their e e ted utu e a l di unted at t e u ent ma et ate etu n a imila finan ial in t ument e l an a e 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. HELD-TO-MATURITY INVESTMENTS eld t matu it in e tment a e n n de i ati e finan ial a et it fi ed dete mina le a ment and fi ed matu itie t at management has the positive intention and ability to hold to maturity. Sinking fund investments are included in this category. After initial recognition they are measured at amortised cost using the effective interest rate method less impairment. Gains and losses due to asset impairment or de-recognition are reflected in the Statement of Comprehensive Revenue and Expense. FINANCIAL ASSETS AT FAIR VALUE THROUGH EQUITY e e ate ie finan ial a et a e n n de i ati e t at a e eit e de i nated in t i ate n t la ified in an t e other categories. The investments in subsidiaries are not included in this category as they are held at cost. After initial recognition these investments are measured at their fair value with gains and losses recognised directly in equity except for impairment losses, which are recognised in the Statement of Comprehensive Revenue and Expense. On de-recognition the cumulative gain or loss previously recognised in equity is recognised in the Statement of Comprehensive Revenue and Expense. MEASUREMENT Financial assets and liabilities are initially measured at fair value plus transaction costs unless they are carried at fair value t u u lu efi it in i a e t e t an a ti n t a e e ni ed in t e tatement m e en i e e enue and Expense. Purchases and sales of investments are recognised on trade-date, the date on which Council commits to purchase or sell the asset. DE-RECOGNITION inan ial a et a e de e ni ed en t e i t t e ei e a l m t e finan ial a et a e e i ed a e een transferred and Council has transferred substantially all the risks and rewards of ownership. FAIR VALUE e ai alue finan ial in t ument t aded in a ti e ma et i a ed n u ted ma et i e at t e alan e eet date e u ted ma et i e u ed i t e u ent id i e e ai alue finan ial in t ument t at a e n t t aded in an a ti e ma et is determined using valuation techniques. Council uses a variety of methods and makes assumptions that are based on market
161 conditions existing at each balance date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the emainin finan ial in t ument IMPAIRMENT OF FINANCIAL ASSETS un il a e e at ea annual alan e date et e t e e i e ti e e iden e t at a finan ial a et u finan ial assets is impaired. Any impairment losses are recognised in the Statement of Comprehensive Revenue and Expense. In the case e uit e u itie la ified a ai alue t u e uit a i nifi ant l n ed de line in t e ai alue a e u it el its cost is considered in determining whether the security is impaired. If any such evidence exists for fair value through equity finan ial a et t e umulati e l mea u ed a t e di e en e et een t e a ui iti n t and t e u ent ai alue le an im ai ment l n t at finan ial a et e i u l e ni ed in t e tatement m e en i e e enue and en e i removed from equity and recognised in the Statement of Comprehensive Revenue and Expense. Impairment losses on equity instruments recognised in the Statement of Comprehensive Revenue and Expense are not reversed through the Statement of Comprehensive Revenue and Expense. INVESTMENTS IN DEBT AND EQUITY SECURITIES inan ial in t ument eld t adin a e la ified a u ent a et and a e tated at ai alue it an e ultant ain l recognised in the Statement of Comprehensive Revenue and Expense. General and community loans are designated as loans and receivables. They are measured at initial recognition at fair value plus directly attributable transaction costs, and subsequently carried at amortised cost less impairment losses. t e finan ial in t ument eld un il a e la ified a ein ai alue t u u lu defi it and a e tated at ai alue with any resultant gain or loss flowing through the Statement of Comprehensive Revenue and Expense. Financial instruments not included in other categories are included in the fair value through equity category which is carried at fair value with changes in fair value being recognised in equity. Financial instruments are recognised/de-recognised by Council on the date it commits to purchase/sell the investments and Council becomes a party to the contractual provisions of the instrument. Securities held-to- maturity are recognised/de-recognised on the day they are transferred to/by Council. Financial liabilities inan ial lia ilitie de i nated at ai alue t u u lu efi it a e e ded at ai alue it an eali ed and un eali ed gains or losses, including interest, recognised in the Statement of Comprehensive Revenue and Expense. an a ti n t a e e en ed a t e a e in u ed t e finan ial lia ilitie a e initiall e ni ed at ai alue lu t an a ti n t ain l i e ni ed in t e tatement m e en i e e enue and en e en t e finan ial lia ilit i de recognised through the amortisation process. Financial liabilities entered into duration of less than 12 months are recognised at their nominal value. Amortisation and losses on monetary items are recognised in the Statement of Comprehensive Revenue and Expense as is any gain or loss when the liability is de-recognised. CALCULATION OF RECOVERABLE AMOUNT The recoverable amount of Council investments in held-to-maturity securities and receivables carried at amortised cost is al ulated at t e e ent alue e timated utu e a l di unted at t e i inal e e ti e inte e t ate i e t e e e ti e inte e t ate m uted at initial e niti n t e e finan ial a et e ei a le it a t du ati n le t an ne ea a e not discounted. The recoverable amount of other assets is the greater of their market value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that e le t u ent ma et a e ment t e time alue m ne and t e i e ifi t t e a et an a et t at d e n t generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. REVERSALS OF IMPAIRMENT An impairment loss in respect of a held-to-maturity security or receivable carried at amortised cost is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised. n im ai ment l in e e t an in e tment in an e uit in t ument la ified a a aila le ale i n t e e ed t u t e tatement m e en i e e enue and en e t e ai alue a de t in t ument la ified a a aila le ale increases, and the increase can be objectively related to an event occurring after the impairment loss was recognised in the Statement of Comprehensive Revenue and Expense and Expenses, the impairment loss shall be reversed, with the amount of the reversal recognised in the Statement of Comprehensive Revenue and Expense. In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Accounting for derivative financial instruments and hedging activities e i nati n finan ial a et and finan ial lia ilitie int in t ument ate ie i dete mined t e u e t e finan ial in t ument li ie and a ti e mana ement t e elati n i it t e in t ument and t e e tin t and enefit ea de i nati n e de i nati n a lied t e entitie a e e le ted in t e finan ial tatement un il un il ma u e de i ati e finan ial in t ument t ed e it e u e t inte e t ate i a i in m e ati nal finan in and in e tment a ti itie n a dan e it t e i ana ement li un il d e n t ld i ue de i ati e finan ial
162 instruments for trading purposes, however as Council has not undertaken hedge accounting the derivatives are classed as held for trading in accordance with PBE IPSAS Accounting Standards. un il a ad ted t e ai alue a a in a untin finan ial in t ument ll de i ati e a e fi t e ni ed at ai value on the date a contract is entered into and are subsequently re-measured to their fair value. Changes in the fair value of any derivative instrument are recognised in the Statement of Comprehensive Revenue and Expense. Council is exposed to interest rate risk through the issuance of long-term debt instruments. Council seeks to minimise this exposure through its adopted in and n e tment li i e i e t e ati fi ed t l atin de t t e u e a and t e matu it file de t e ull ai alue a de i ati e finan ial in t ument i la ified a n n u ent i t e emainin matu it t e item i more than 12 months, and as current if the remaining maturity of the item is less than 12 months. Derivatives held by Council d n t uali ed e a untin a t e a e la ified a eld t adin finan ial in t ument it ai alue ain l on re-measurement to fair value recognised in the Statement of Comprehensive Revenue and Expense. Transaction costs are expensed as they are incurred. The fair value of interest rate swaps is the estimated amount that Council would receive or pay to terminate the swap at the balance date, taking into account current interest rates and the current creditworthiness of the swap counterparties. Non-current assets held for sale n u ent a et eld ale a e a et u a et and di e tl a iated lia ilitie t at ill e ld t et e it t e a et t at a e intended t e di ed ale t e i e indi iduall a a u e tie intended ale a e all e t t e t an in e tment e t e t lant and e ui ment eld it t e intenti n eali ati n t u ale e tie a e la ified a intended ale e e • t e e t i a aila le immediate ale it in ne ea la i in t e a et in it e ent nditi n u e t nl t terms that are usual and customary for the sale of such assets • Council is committed to a plan to sell the property, and an active programme to locate a buyer and complete the plan has been initiated • the property is marketed actively for sale at a price that is reasonable in relation to its current fair value • a ti n e ui ed t m lete t e lan t ell t e e t indi ate t at it i unli el t at i nifi ant an e t t e lan ill e made or that the plan will be withdrawn. e tie intended ale a e la ified a eld ale and tated at t e l e t ei a in am unt and ai alue le costs to sell if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. n im ai ment l i e ni ed an initial u e uent ite d n t e a et di al u t ai alue le t t ell ain i e ni ed an u e uent in ea e in ai alue le t t ell an a et di al u ut n t in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the ale t e n n u ent a et di al u i e ni ed at t e date de e niti n n u ent a et in ludin t e t at a e a t a di al u a e n t de e iated am ti ed ile t e a e la ified a eld ale nte e t and t e e en e att i uta le t t e lia ilitie a di al u la ified a eld ale ntinue t e e ni ed Property, plant and equipment CLASSIFICATION PROPERTY, PLANT AND EQUIPMENT (PPE) a e la ified int t e ll in t ee a et ate ie Council Operational assets: • land • buildings • motor vehicles • books and publications • fi e u nitu e and e ui ment • pensioner housing. Council Restricted assets: a and e e e ned un il ide a enefit e i e t t e mmunit ann t e di ed due t le al t e restrictions: • heritage assets • reserve land • marina facilities. Heritage assets are mainly the art collection, which is valued at the estimated current market value based on valuations at 30 June 2002 by the Art Museum Curator. Subsequent additions are recorded at cost or market value. Heritage assets are not de e iated a t e a t lle ti n tend t a e an indefinite li e and item a e ene all n t a de e ia le natu e Parks and Reserves land is recorded at historical cost.
163 Marina facilities are the Whangarei Marina and the Tutukaka Marina. The original marina assets are owned by Council and under the management of the Whangarei Harbour Marina Trust and the Tutukaka Marina Management Trust respectively. Marina a ilitie a e e ded in t e finan ial tatement at i t i al t Council Infrastructure assets ene all fi ed utilit tem ned un il a a et la in lude all item t at a e e ui ed t e net t un ti n For example, sewer reticulation includes reticulation piping and sewer pump stations: Council infrastructure assets: • land for roads • roading • stormwater • liquid waste • water • parks and reserves • solid waste • flood protection. Council Controlled Organisations infrastructure assets: • airport assets and runway • landfill a et m unt ided landfill t l u e a e a itali ed t t e landfill a et and intended t e t e t e a et t a nditi n in i it an e utili ed m nent t e a itali ed landfill a et a e de e iated e t ei u e ul li e Some infrastructure assets and land have been vested in Council as part of the sub-divisional consent process at the cost to the developer. The vested reserve land has been recognised at initial cost to the developer or market value. Vested infrastructure assets have been valued based on the actual quantities of infrastructure components vested and the current ‘in the ground’ cost of providing identical services. Land under roads has been valued at 20% of the average government value of land designated as parks and recreational areas in Whangarei District effective 30 June 2001. The discount on the average value reflects the low probability of Council realising the value of this asset, as long as the roads remain as roads. Subsequent additions are recorded at cost. Council do not intend to revalue land under roads in the future. MEASUREMENT PPE are measured initially at cost. Cost includes expenditure that is directly attributable to the acquisition of the items. The cost an item e t lant and e ui ment i e ni ed nl en it i a le t at utu e e n mi enefit e i e tential associated with the item will flow to Council, and if the item’s cost or fair value can be measured reliably. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. In the event an asset is acquired in a non-exchange transaction for nil or nominal consideration the asset is initially measured at its fair value. It used to be recorded in the Statement of Financial Performance; however PBE Accounting Standards requires it to be noted as a liability in the Statement of Financial Position, if a condition is attached. and e ati nal and e t i ted i mea u ed at t and uildin e ati nal and e t i ted and in a t u tu al a et e e t land unde ad a e mea u ed at ai alue le a umulated de e iati n ll t e a et la e a e mea u ed at t le accumulated depreciation and impairment losses. SUBSEQUENT COSTS Subsequent costs that meet the recognition criteria above are recognised in the carrying value of the item of PPE. Such cost includes the cost of replacing part of the PPE and borrowing costs for long-term construction projects if the recognition criteria a e met en i nifi ant a t e t lant and e ui ment a e e ui ed t e e la ed at inte al un il e ni e u a t a indi idual a et it e ifi u e ul li e and de e iate t em a din l i e i e en a ma in e ti n i performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria a e ati fied ll t e e ai and maintenan e t a e e ni ed in u lu defi it a in u ed MEASUREMENT SUBSEQUENT TO INITIAL RECOGNITION Subsequent to initial recognition, PPE are measured using either the cost model or the revaluation model, as described below: • infrastructure assets are measured at fair value, less accumulated depreciation and any impairment losses recognised after the date of the revaluation. Fair value for infrastructure assets is measured using depreciated replacement cost • in a t u tu al a et e e t land unde ad a e e alued it u fi ient e ula it at lea t e e t ee ea t en u e that their carrying amount does not materially differ from fair value.
164 un il e ati nal a et u a lant and e ui ment and lea ed e ui ment in ludin ma ine fi e e ui ment e el and e i le and e ita e a et mu eum e i it a e mea u ed at t net a umulated de e iati n and im ai ment l e i an e nl e e ti n i en i ne u in i i e alued a e i te ed alue e e fi e ea Between valuations, expenditure on asset improvements is capitalised at cost. REVALUATION Revaluation is performed on a class-by-class basis. If an item of property, plant and equipment is re-valued, the entire class to which the asset belongs is re-valued. aluati n a e e med it u fi ient e uen t en u e t at t e ai alue a e alued a et d e n t di e mate iall m its carrying amount. The results of revaluing are credited or debited to the asset revaluation reserve for that class of asset. Where this results in a debit balance in the revaluation reserve, the balance is expensed in the Statement of Comprehensive Revenue and Expense. Any u e uent in ea e n e aluati n t at et a e i u de ea e in alue e ni ed a an e en e ill e e ni ed fi t in the Statement of Comprehensive Revenue and Expense up to the amount previously expensed with any remaining balance being credited to the revaluation reserve for that class of asset. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset class and the net amount is restated to the re-valued amount of the asset class. CARRYING VALUE The carrying values of re-valued assets are assessed annually to ensure they do not differ materially from the assets’ fair values. In the event of a material difference, then the off-cycle asset classes are re-valued. DEPRECIATION Depreciation is charged on a straight-line basis over the useful life of the asset and is charged at rates calculated to allocate the cost or valuation of the asset less any estimated residual value over its remaining useful life: Asset depreciation rates and useful lives
OPERATIONAL ASSETS USEFUL LIFE DEPRECIATION OPERATIONAL ASSETS USEFUL LIFE DEPRECIATION (YEARS) RATE (YEARS) RATE Culverts 50-99 1%-2% Land ndefinite Footpaths 10-25 4%-10% uildin in l li a 40-100 1%-2.5% Kerbs and channels 25 4% Books and publications 2-5 20%-50% Street and road signs 10 10% Plant and equipment 6-60 1.6%-17% WATER Motor vehicles 5-10 10%-20% Pipes 40-116 0.9%-2.5% fi e u nitu e and e ui ment 2-10 10%-50% Tanks 43-200 0.5%-1% IT software 5-10 10%-20% Valves 10-89 1.1%-10% IT equipment 3 33% Treatment plant 30-80 1.25%-33% Pensioner housing 12-80 1.25%-8% LIQUID WASTE andfill a et 39 2.50% Pipes 40-130 0.8%-2.5% Airport 10-50 2%-10% Manholes 50-93 1%-2% RESTRICTED ASSETS Treatment plant 30-80 1.25%-33% Reserve land ndefinite - STORMWATER Heritage assets ndefinite - Manholes 50-80 1.25%-2% Marine structures 40 2.50% Pipes 40-112 1%-2.5% INFRASTRUCTURE ASSETS Airport runway 10-50 2%-10% Pipes 50-80 1.25%-2% Land under roads ndefinite - Parks and reserves, walkways 10-15 6%-10% ROADING and sports parks Bridges 50 2% Plant and machinery 14 7.40% Carriageways 5-40 2.5%-40%
RESIDUAL VALUES e a et e idual alue u e ul li e and am ti ati n met d a e e ie ed and ad u ted i a iate at ea finan ial ea end. For re-valued assets, any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amounts of the assets and the net amounts are restated to the re-valued amounts of the assets.
165 ADDITIONS enditu e i a itali ed en it i a le t at utu e e n mi enefit e i e tential a iated it t e item ill l to Council so the cost of the additional item can be measured reliably. The initial cost of PPE includes the purchase consideration and those costs that are directly attributable to bringing the asset into the location and condition necessary for its intended purpose. In the event an asset is acquired through a non-exchange it is recognised at fair value as at the date of acquisition. WORK IN PROGRESS The project cost of work in progress is transferred to the relevant asset class only when the project is completed. Work in progress items are not depreciated. DISPOSALS Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and l e n di al a e e ted net in t e u lu efi it en e alued a et a e ld t e am unt in luded in a et revaluation reserves in respect of those assets are transferred to accumulated funds. CAPITALISATION LEVELS • n ne item et item tin and a e fi e u nitu e and fi tu e • Any one item or set of items costing $1,000 and above for plant and equipment. • All other assets are capitalised at their cost price. • Any amounts under these thresholds are expensed through the Statement of Comprehensive Revenue and Expense. DE-RECOGNITION n a et i de e ni ed u n di al en n u t e utu e e n mi enefit e i e tential a e e e ted m it u e or disposal. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in u lu defi it Upon disposal or de-recognition, any revaluation reserve relating to the particular asset sold is transferred to accumulated Comprehensive Revenue and Expense. Intangible assets MEASUREMENT ntan i le a et e m ute t a e a ui ed e a atel a e mea u ed n initial e niti n at t e t intan i le assets acquired in a non-exchange transaction is their fair value at the date of the exchange. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. VALUATION Council applies the following testing criteria for an intangible item to be capitalised and recognised as an intangible asset: • an estimated useful life of more than one year • cost of the asset exceeding $1,000, except for internally developed software where a minimum development cost is set at $50,000, excluding research and maintenance costs, which are expensed when incurred. USEFUL LIFE e u e ul li e intan i le a et a e a e ed a eit e finite indefinite GAINS OR LOSSES Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal eed and t e a in am unt t e a et and a e e ni ed in u lu defi it en t e a et i de e ni ed SOFTWARE Council holds several computer software packages for internal use, including purchased software and software developed in- house. Purchased software is recognised and measured at the cost incurred to acquire the software. Developed software is recognised and measured during the development stage. Costs that are directly associated with the development of the software, including employee costs, are capitalised as an intangible asset. Note: Staff training costs and costs associated with maintaining computer software are recognised as expenses in surplus or defi it en in u ed LICENCES un il made u nt a ment t u a e li en e e li en e eld un il elate t t e u a e i t i al film ta e relating to local culture and important events in the history of Whangarei and its District. The licences may be renewed at little or no cost to Council.
166 a e ult t e li en e a e a e ed a a in an indefinite u e ul li e e a e n t am ti ed ut a e te ted im ai ment annually. CARBON CREDITS un il a ti i ate in t e e ealand mi i n adin eme u a ed a n edit a e e ni ed at t n a ui iti n and a n edit e ei ed m t e e nment a e e ni ed at ai alue a at t e date t an e n n e an e t an a ti n a n edit a e n t n umed in un il e ati n and t e e e a e n t am ti ed ut a e te ted for impairment annually. Council has 120 hectares of pre-1990 forest land. This land is subject to the provisions of the New Zealand ETS. The implication t i t e finan ial tatement i t ld • uld t e land e de e ted t at i t e land i an ed m e t t me t e u e a de e tati n enalt ill arise • as a result of the deforestation restriction, compensation units are being provided by the Government. Biological assets Council holds standing forestry assets that are independently re-valued annually at fair value less estimated costs to sell for one growth cycle. Fair value is determined based on the present value of expected net cash flows discounted at a current market determined rate. This calculation is based on existing sustainable felling plans and assessments regarding growth, timber prices, felling costs, and silvi-cultural costs and takes into consideration environmental, operational, and market restrictions. Gains or losses arising on initial recognition of forestry assets at fair value less costs to sell and from a change in fair value less costs to ell a e e ni ed in t e u lu defi it e t maintenan e t a e e ni ed in t e u lu defi it en in u ed Investment properties Investment properties are properties which are held either to earn rental income or for capital appreciation or for both, and generate cash flows largely independent of other assets held by the entity. Investment property does not include property held primarily for strategic purposes or to provide a social service even though such property may earn rentals or appreciate in value. n e tment e tie a e initiall e ni ed at t n e tment e tie a e e alued annuall a ualified inde endent valuer and are stated at fair value. Any gain or loss arising from a change in fair value is recognised in the Statement of Comprehensive Revenue and Expense. MEASUREMENT Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met, and excludes the costs of day-to-day maintenance of an investment property. Investment property acquired through a non-exchange transaction is measured at its fair value at the date of acquisition. RECOGNITION AND DE-RECOGNITION Subsequent to initial recognition, investment properties are measured at fair value, which is based on active market prices, ad u ted i ne e a an di e en e in t e natu e l ati n nditi n t e e ifi a et at t e e tin date ain l e a i in m an e in t e ai alue in e tment e tie a e e ni ed in u lu defi it in t e ea in which they arise. Investment properties are derecognised either when they have been disposed of or when the investment property is permanently it d a n m u e and n utu e e n mi enefit e i e tential i e e ted m it di al n ain l e n t e eti ement di al an in e tment e t a e e ni ed in u lu defi it in t e ea retirement or disposal. TRANSFERS Transfers are made to investment property when, and only when, there is a change in use, evidenced by ending of owner- occupation or commencement of an operating lease to another party. Transfers are made from investment property when, and only when, there is a change in use, evidenced by commencement of owner-occupation or commencement of development with a view to sale. LEASES The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at inception date e u tan e t e a an ement de end n et e ulfilment t e a an ement i de endent n t e u e a e ifi a et a et t e a an ement n e a i t t u e t e a et e en i t at i t i n t e li itl e ified in an a an ement
167 Inventories Inventory is measured at cost upon initial recognition. To the extent that inventory was received through non-exchange t an a ti n n t a n minal t t e t t e in ent i it ai alue at t e date a ui iti n COST Costs incurred in bringing each product to its present location and condition is accounted for as follows: • consumables – u a e t n a fi t in fi t ut a i e t u a e m i e t e u a e i e in ludin t e transfer from reserves of gains and losses on qualifying cash flow hedges of purchases of raw materials, import duties and t e ta e t e t an t e u e uentl e e a le t e entit m t e ta in aut itie t an t andlin and t e costs directly attributable to the acquisition of raw materials. Volume discounts and rebates are included in determining the cost of purchase. Council raw materials and consumables inventory includes botanical supplies and maintenance items • fini ed d and in e – t di e t mate ial and la u and a ti n a ia le and fi ed manu a tu in overheads based on normal operating capacity, but excluding borrowing costs. Costs are assigned on the basis of weighted a e a e t un il fini ed d in ent in lude item eld e ale u a un il u i a and item ld at the museum shop, as well as items held for distribution, such as recycle bins. INVENTORIES HELD FOR SALE After initial recognition, inventories held for resale are valued at the lower of cost and net realisable value. However, inventory held for distribution or deployment at no charge or for a nominal charge is measured at cost, adjusted when applicable for any loss of service potential. NET REALISABLE VALUE Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale, exchange or distribution. Cash and non-cash generating assets a untin tanda d di tin ui et een a and n n a ene atin a et e ludin in ent ie finan ial assets and investment properties: • cash generating assets are held with the primary objective of generating a commercial return • non-cash generating assets are not held with the primary objective of generating a commercial return – they are held for the u e ial enefit Council holds no cash-generating assets. MEASUREMENT Non-cash generating assets are impaired when the carrying amount of the asset exceeds its recoverable service amount. RECOVERABLE SERVICE AMOUNT The recoverable service amount is the higher of the non-cash generating asset’s fair value less cost to sell and its value in use. VALUE IN USE In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that e le t u ent ma et a e ment t e time alue m ne and t e i e ifi t t e a et n dete minin ai alue le costs of disposal, recent market transactions are taken into account. IMPAIRMENT TESTING Council must assess at each annual reporting date whether there are indications that assets may be impaired. If such indication exists, Council shall estimate the recoverable service amount. IMPAIRMENT LOSSES DISCLOSURE Council discloses the following for each class of assets: • t e am unt im ai ment l e e ni ed in annual u lu defi it du in t e e i d and t e line item t e tatement of Financial Performance in which those impairment losses are included • t e im ai ment l e e e ed in t e annual u lu efi it du in t e e i d and t e line item finan ial e man e in which those impairment losses are reversed. n t e e ent im ai ment l e ni ed e e ed an indi idual a et it a mate ial im a t n t e finan ial tatement Council discloses the following: • the events and circumstances that led to the recognition or reversal of the impairment loss • the amount of the impairment loss recognised or reversed • the nature of the asset • if recoverable service amount is fair value less costs to sell or value in use
168 • if recoverable service amount is fair value less costs to sell, the basis used to determine fair value less costs • if the recoverable service amount is value in use, the approach used to determine value in use. Council may also disclose information for the aggregate of impairment losses and the aggregate reversals of impairment losses recognised during the period: • the main classes of assets affected by impairment losses and reversals • the main events and circumstances that led to the recognition of these impairment losses and reversals. Provisions RECOGNITION Council recognises provisions in the Statement of Financial Position if Council has a present legal or constructive obligation a i in m a a t e ent and it i a le t at an ut l e n mi enefit t e am unt i an e elia l e timated will be required to settle the obligation. Provisions are recorded at the best estimate of the expenditure required to settle the obligation. Provisions to be settled beyond 12 months are recorded at their present value where the effect of time value or money is material. Council provides a full reconciliation for each provision and clearly identifying movements during the period. The reconciliation includes: • opening balance • additions • u ed am unt a ed a ain t t e i i n • elea ed am unt e e ed • unwinding of the discount • closing balance. In addition, Council also disclose an explanation detailing: • the purpose of the provision • the expected timing of any resulting outflows • an indication of uncertainties over the amount or timing of expected outflows • major assumptions used concerning future events • whether any reimbursement has been recognised, and if so, stating the value of that asset. un il e ni e i i n elatin t a e ent li ati n le al n t u ti e a a e ult a t e ent and it i a le t at an ut l e u e e ultin in e n mi enefit e i e tential a e e ui ed t ettle t e li ati n and a elia le estimate can be made of the amount of the obligation. PROVISION MEASUREMENT Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax di unt ate t at e le t u ent ma et a e ment t e time alue m ne and t e i e ifi t t e li ati n e in ea e in t e i i n due t t e a a e time i e ni ed a an inte e t e en e and i in luded in finan e t ACC ACCREDITED EMPLOYERS PROGRAMME un il el n t t e edited m l e amme t e ull el e lan e e un il a e t t e mana ement and finan ial e n i ilit em l ee elated illne e and a ident nde t e amme un il i liable for all its claims costs for a period of two years after the end of their cover period in which the injury occurred. At the end of the two-year period, Council pays a premium to ACC for the value of residual claims, and from that point the liability for ongoing claims passes to ACC. Financial guarantee contracts finan ial ua antee nt a t i a nt a t t at e ui e un il t ma e e ified a ment t eim u e t e lde t e nt a t a l it in u e au e a e ified de t ail t ma e a ment en due RECOGNITION Financial guarantee contracts are initially recognised at fair value. • a finan ial ua antee nt a t a i ued in a tand al ne a m len t t an a ti n t an un elated a t it ai alue at inception is equal to the consideration received. When no consideration is received, the fair value of the liability is initially measured using a valuation technique, such as considering the credit enhancement arising from the guarantee or the probability that Council will be required to reimburse a holder for a loss incurred discounted to present value.
169 • If the fair value of a guarantee cannot be reliably determined, a liability is only recognised when it is probable there will be an outflow under the guarantee. The portion of the guarantee that remains unrecognised, prior to discounting to fair value, is disclosed as a contingent liability. MEASUREMENT Financial guarantees are subsequently measured at the higher of: • the estimated amount determined if it is probable there will be an outflow to settle the guarantee • the amount initially recognised less, when appropriate, cumulative amortisation as revenue. Equity Equity is the community’s interest in Council and this is measured as the difference between total assets and total liabilities. uit i di a e ated and la ified int t e ll in m nent • retained earnings • restricted reserves and special funds • property revaluation reserve • asset revaluation reserve. RETAINED EARNINGS Retained earnings are earnings retained since amalgamation adjusted for transfers to other reserves. Retained earnings consist of Council’s original investment on amalgamation adjusted for appropriations from general reserves. RESTRICTED RESERVE AND SPECIAL FUNDS Restricted reserves are a component of equity generally representing a particular use to which various parts of equity have een a i ned e e e ma e le all e t i ted eated un il e all e t i ted e e e a e t e u e t t e ifi conditions and may not be revised without reference to the courts or a third party. Transfers from these reserves may be made nl e tain e ified u e en e tain e ified nditi n a e met Council created reserves are reserves established by Council decision. Council may alter them without reference to any third party or the courts. Transfers to and from these reserves are at the discretion of Council. PROPERTY REVALUATION RESERVE This reserve relates to the revaluation of property, plant, and equipment to fair value. ASSET REVALUATION RESERVE i e e e m i e t e umulati e net an e in t e ai alue t e a et la ified a ai alue t u t e Comprehensive Revenue and Expense. Related party disclosures Council is required to disclose certain information for accountability purposes, and to facilitate a better understanding of the finan ial iti n and e man e un il • existing related party relationships where control exists • disclose information about transactions between Council and its related parties in certain circumstances. REMUNERATION OF KEY MANAGEMENT PERSONNEL Key management personnel include: • all directors or members of the governing body • those persons who have the authority and responsibility for planning, directing, and controlling the activities of Council, including the Mayor, Councillors and Chief Executive. Remuneration includes: • enefit de i ed di e tl indi e tl • details of loans to key management personnel and family members, including advances, repayment and closing balances. Note: Council maintain a Register of Interests Process – an up to date and accurate register of residing councillors’ interests. This i u ed t e elated a t t an a ti n and en u e n li t inte e t a e identified RELATED PARTIES A related party transaction is a transfer of resources or obligations between related parties, regardless of whether a price is charged. Related party transactions exclude transactions with any other entity that is a related party solely because of its economic dependence on the reporting entity or the governance of which it forms part. Council shall disclose:
170 • the nature of the relationship and a description of the relevant transactions • t e am unt t e t an a ti n du in t e e i d • transactions not on normal terms and conditions • details on any balances, security, guarantees outstanding at the period end. MATERIALITY The materiality of an item is determined with reference to the nature or size of that item. When assessing the materiality of related party transactions, the nature of the relationship between the reporting entity and the related party, and the nature of the transaction, may mean that a transaction is material regardless of its size. Fundamental errors and changing accounting policies ACCOUNTING POLICIES un il all di l e all i nifi ant an e in a untin li ie in ludin detail • the nature of the change in accounting policy • t e am unt t e ad u tment ea finan ial tatement line item a e ted t e u ent e i d and ea i e i d presented, if practicable • reasons for the impracticability to make a certain adjustment. ACCOUNTING ESTIMATE un il all di l e t e natu e and am unt a an e in a untin e timate t at a a i nifi ant e e t in t e u ent and i a li a le utu e finan ial e i d it i im a ti a le t e timate and di l e t e am unt t e e e t in utu e e i d Council shall disclose that fact and the reasons for such impracticability. PRIOR PERIOD ACCOUNTING ERRORS Council shall also disclose period errors, including details of: • the nature of the error • t e am unt e ti n ea finan ial tatement line item a e ted • the amount of correction at the beginning of the earliest prior period presented • if retrospective application is impracticable, the reason for this.
171 RESERVE FUNDS
Property Reinvestment Reserve Over the life of the Plan there is no assets are valued at fair value every three intention to purchase more commercial years and pensioner housing assets A Property Reinvestment Reserve property. e e fi e ea in a dan e it a een eated t und t e finan ial e tin tanda d ongoing growth and development of the Community Development Funds Commercial Property Portfolio. The net Water Reserve The Community Development Fund proceeds of the disposal of any property reserves are held for funding of A Water Reserve was created in the in the Commercial Property Portfolio community projects. These generally finan ial ea t e le t are to be invested in the PRR and will a i t n t fit ani ati n and the timing differences between Water be available for the purchase of other range from building improvements to expenditure and Water income via investment property in the future. additional assets. Organisations that targeted rates which is currently creating Provided the funds are not required receive funds from these reserves repay a surplus. Notional interest will be for property purchases, they can be t em e a e ifi e i d time charged to activities on the opening advanced to Whangarei District Council balance of the reserve for each year of Funds that are not utilised at any time a inte nal undin eit e e ifi the LTP. can be advanced to Whangarei District projects or to temporarily replace bank Council as internal funding. Interest is It is expected that the reserve will debt. Notional Interest will be charged charged on these advances and is paid to reduce to nil during the LTP as the Water to activities on the balance of funds the Community Development Funds as expenditure occurs. advanced. investment income. To ensure the reserve retains its Other reserves Revaluation Reserve purchasing power over time, a dividend Council also holds various other minor amount will be calculated as a return on The Revaluation Reserve reflects the reserves which may only be used for the the gross PRR balance and, in general, increased value of infrastructure and u e e ified should be no less than 2% of the gross pensioner housing assets. Infrastructure PRR balance. Balances of reserves held are:
OPENING DEPOSITS EXPENDITURE ESTIMATED BALANCE $000 $000 CLOSING JULY 2015 BALANCE $000 JUNE 2025 $000
Asset Revaluation Reserve – to account for increases in the value of assets 558,175 277,837 - 836,012 Total Asset Revaluation Reserve 558,175 277,837 - 836,012 Property Reinvestment Reserve – to fund property purchases for a 26,258 5,750 - 32,008 commercial return Community Development Fund 1 – to provide funding for land for reserves 3,954 1,320 1,320 3,954 for community facilities on Council owned reserve land Community Development Fund 2 – to provide funding for community 5,781 3,744 - 9,526 facilities on non-Council reserve land Community Development Fund 3 – to provide funding for land for 295 123 - 418 performing arts activities Safer Communities Project – to fund projects for the enhancement of safer 5 - - 5 communities Fishermans Levy – to fund maintenance and upgrading of marine facilities 103 - - 103 u e mme ial fi in e el Trust Funds – e ue t eld e ifi u e 9 - - 9 Art Acquisitions – to fund acquisition of artworks 10 - - 10 Clock Purchases – to fund purchase of clocks for the Clapham Clocks 50 - - 50 Museum Creative NZ – residual balance 2 - - 2 AH Reed Reserve – residual balance 3 - - 3 Leonard Library Reserve – bequest for the purchase of library books 7 - - 7 Disaster Relief Fund – To provide relief/support following loss from a 10 - - 10 i nifi ant di a te Water Reserve* – To hold any surpluses for future funding of water activities 12,912 7,745 20,656 - Total Reserves and Special Funds 49,399 18,682 21,976 46,105
te e a ian e et een t e t tal ate e e e m ement t e ten ea t e in t e e e e ta le and t e tatement i due t milli n a ital e enditu e n ate e t a ied a d m t e inan ial ea int t e ea i i in luded in t e ate e e e ut n t t e ate
172 FUNDING IMPACT STATEMENT
This statement sets out the information required by clause 15 of Schedule 10 of the Local Government Act 2002 to assist ratepayers in understanding the impact of the Plan. This statement should be read in conjunction with the Revenue and Financing Policy prepared as part of the 2015-2025 LTP process.
FINANCIAL DISCLOSURES
The Local Government Act requires disclosure of all sources of funding in a prescribed format. The Funding Impact Statement showing the overall sources of funding, the amount of funds expected from each source, and how those funds will be applied has een in luded n a e t i d ument
RATES
These rates are based on the funding requirements set out in the plan together with the land values and property numbers included in Council’s Rating Information Database. General rates ene al ate a e et unde e ti n t e al e nment atin t un il e t et a ene al ate a ed on the land value of each rateable rating unit in the District. The general rate will be set on a differential basis based on the category of land use. Where a property is used for more than one purpose the value of the property will be apportioned between the different categories. Subject to legal rights of objection, it shall be at the sole discretion of Council to determine the use or principal use of any rating unit. General rates have been applied on the same basis to all 10 years of the 2015-2025 LTP. DIFFERENTIAL BASIS All separate rating units in the District are allocated to the most appropriate category based on the use to which the land is put. The categories are:- Category 1 – residential All rating units which are used principally for residential or lifestyle residential purposes, including retirement villages, flats etc. Category 1(a) – residential step 1 ll e a ate e idential atin unit de i ed in ate a e n t at ti n t e e t alue e e t e land alue exceeds the District average residential land value from approximately 3.5 times to approximately seven times. Category 1(b) – residential step 2 ll e a ate e idential atin unit de i ed in ate a e n t at ti n t e e t alue e e t e land alue exceeds the District average residential land value by over approximately seven times. Category 2 – multi-unit All separate rating units used principally for residential purposes, and on which is situated multi-unit type residential a mm dati n t at i u ed in i all tem a e manent e idential a mm dati n finan ial e a d in ludin but not limited to, hotels, boarding houses, motels, tourist accommodation, residential clubs, hostels, but excluding any properties which are licensed under the Sale of Liquor Act 1989. Category 3 – rural All separate rating units which are used principally for agricultural, horticultural, forestry, pastoral or aquaculture purposes, or for the keeping of bees, poultry or other livestock. This does not include properties which are used for non-economic lifestyle residential purposes, generally 20 hectares or less, and where the value of the land exceeds the value of comparable farmland. Category 4 – commercial and industrial All separate rating units used principally for commercial, industrial or related purposes, which are not categorised as multi-unit or rural; or zoned for commercial, industrial or related purposes, but not otherwise categorised. For the avoidance of doubt, this category includes properties licensed under the Sale and Supply of Alcohol Act 2012; and private hospitals and private medical centres.
173 Category 5 – miscellaneous properties All separate rating units being any other property not otherwise categorised. Uniform Annual General Charge e ni m nnual ene al a e i et unde e ti n t e al e nment atin t e ill e a ed t ea e a atel u ed in a ited a t a atin unit e e e t t i i t at e e a atin unit a m e than one use or occupation, a separate charge will apply to each portion. This charge is expected to be applied for all 10 years of the 2015-2025 LTP.
DEFINITION OF SEPARATELY USED OR INHABITED PART OF A RATING UNIT
e a atel u ed in a ited a t i defined a a lea l identified a t a e t atin unit t at i a a le e a ate u e or capable of being separately inhabited or occupied. For a commercial rating unit this includes a building or part of a building that is, or is capable of being, separately tenanted, leased or sub leased. For a residential rating unit, this includes a building or part of a building which is used, or is capable of being used, as an independent residence. An independent residence means a self contained dwelling containing separate cooking and living facilities; separate entrance; and separate toilet and bathroom facilities. Examples include: • each separate shop or business activity on a rating unit is a separate part • ea d ellin lat additi nal enta le unit atta ed n t atta ed n a e idential e t i i let a a le ein let i a e a ate in a ita le a t • indi iduall tenanted lat in ludin eti ement unit a a tment and t n u e atta ed n t atta ed multi le d ellin n i ee ld land a e e a atel in a ited a t • each block of land for which a separate title has been issued, even if that land is vacant.
GENERAL RATES FOR THE 2015-16 FINANCIAL YEAR
e am unt e enue u t m ea ate en u e t at a e ified a e e enue i e e ed m ea ate The total amount of general rates required is calculated as follows: All residential, miscellaneous and multi-unit properties 62.0% All commercial and industrial properties 28.5% All rural properties 9.5% e am unt ma e a e ed a eit e a alue a ed a fi ed uni m annual ene al a e ut t e t tal t e t am unt will be the share of total general rates required, net of any remissions. Multi-unit properties will be charged at a factor of two-times the rate in the dollar on residential and miscellaneous properties. Miscellaneous properties will be charged at the same factor as residential properties. e idential e tie t e fi t land alue i a ed at t e ull e idential ate e e t e land alue i et een $687,000.01 and $1,374,000 the rate in the dollar is 50% of the full residential rate for the portion that is over $687,000.01, and where the value exceeds $1,374,000.01 the rate in dollar is 25% of the full residential rate for the portion that is over $1,374,000.01. The factor for the other categories will depend on the level of revenue, the number of separately used or inhabited parts of a rating unit and the land values in each category. For this year the rate in the dollar was set as follows: Total general rates required are $56,800,000, GST inclusive.
174 SHARE REQUIRED FROM EACH SECTOR
Residential, miscellaneous and multi-unit properties 62.0% of $56,800,000= $35,216,000 Commercial and Industrial properties 28.5% of $56,800,000 = $16,188,000 Rural properties 9.5% of $56,800,000 = $5,396,000 $56,800,000
Based on the number of separately used or inhabited parts of a rating unit, the amount to be collected from UAGCs is deducted from the revenue requirements in each sector and the balance to be collected is based on land value. The amount required is divided by total land value to establish the cents in the dollar required to achieve the desired income. The relationship or differential between the categories will be the result of these calculations, and the multi-unit and residential steps will be calculated based on the resulting residential rate in the dollar. The sector splits were amended following the triennial revaluation as at 1 September 2012. Details of charges and the amount of revenue sought and rates in the dollar for the 2015-16 year are:-
TYPE OF RATE BASIS OF ASSESSMENT RATE OR REVENUE CHARGE (GST SOUGHT (GST INCLUSIVE) INCLUSIVE)
GENERAL RATES Uniform Annual General Per separately used or inhabited part of a rating unit $406.00 $16,800,000 Charge Residential category Per $ of land value $0.0032991 $19,945,000 Residential Step 1 Per $ of land value $0.0016496 $160,000 Residential Step 2 Per $ of land value $0.0008248 $40,000 Multi-unit category Per $ of land value $0.0065982 $125,000 Rural category Per $ of land value $0.0026691 $4,450,000 Commercial/Industrial Per $ of land value $0.0171967 $15,140,000 category Miscellaneous category Per $ of land value $0.0032991 $140,000 TOTAL GENERAL RATES $56,800,000
Targeted rates a eted ate a e et unde e ti n t e al e nment atin t a eted ate a e u ed e e a un il e i e ide a e ifi a ti it a enefit t a e ifi u e le and n e uentl it i t e e enefi ia ie t at a e a ed t e t idin t e e i e t ma a l t all ate a e a e ifi u ate a e SEWAGE DISPOSAL The activity for which the targeted rate is set is the operation and maintenance of the sewage disposal system. The targeted rate will be set and assessed per separately used or inhabited part of a rating unit connected to Council’s wastewater system on a di e ential a i a ed n t e num e t ilet an e e t e idential nne ti n i ill a a fi ed am unt e a dle t e num e t ilet an t e emi e i e n t e idential a in n m e t an t t ilet an u inal ill a a fi ed amount. Where other premises have more than two pans, the charge will be based on the number of pans or urinals. Sewage Disposal rates applies for all 10 years of 2015-2025 LTP. DISTRICT-WIDE REFUSE MANAGEMENT The activity funded by this targeted rate is primarily to provide refuse services not funded by user charges at transfer stations or t e e a a e aid ti e fi ial u i a e u e lle ted at t e e ide e ta eted ate ill e a lied on a uniform basis to all rateable properties and assessed to all separately used or inhabited parts of a rating unit. It funds kerbside and other recycling, litter bins, clearing of refuse from parks/reserves and streets, roadside rubbish, dealing with hazardous wastes, removing abandoned vehicles and the seasonal clean-ups required at beaches and other tourist locations. Some costs associated with Council’s waste minimisation programme are also included. l in luded i t e t ta fin t an e tati n t en u e a iate a te mana ement a a d u u tan e and t e e mate ial u a teel and tim e t minimi e t e item t at uld n mall e dum ed a a te t u t e landfill e e a e e i e t at enefit t e le i t i t at e t an indi idual u e t e i t i t u i lle ti n and di al services. District-wide refuse management charges are expected to be applied for all 10 years of 2015-2025 LTP.
175 WATER SUPPLY ate u l ate a e et unde e ti n t e al e nment atin t e a ti it i t e ta eted ate i set is for the catchment, storage, treatment and distribution of water throughout various parts of the District. Water consumption is charged as a targeted rate on the basis of water consumed as recorded by a water meter. For all connected properties a uniform targeted rate set under Sec 16 per SUIP of a rating unit for the annual supply charge will also apply. For those premises where consumption of water is not recorded through a meter, but they are connected to any of the District’s water supply systems, a uniform targeted rate set per SUIP of a rating unit under Sec 16 will apply. Where premises are capable of being connected as they are situated within 100 meters of any public water supply reticulation system, and capable of connection, a targeted rate per SUIP of a rating unit for availability will apply. Targeted rates for back flow prevention applies to all properties which have a back flow preventer connected. The revenue will be used for the monitoring and maintenance of the back flow preventers and will be assessed on the size of the back flow preventer. Water Supply charges apply for all 10 years of the 2015-2025 LTP. SPECIAL RATES AND ROADING SCHEMES a eted ate a e et e ifi a ti itie unde e t e al e nment atin t and a l t e tie it in a defined a ea enefit eit e t e i i n a e i e e e t e a e a a le ein nne ted t t e e i e ate t e eme n ted el e e a nt i uti n t e t a ital e a fi e ea e i d e a e Acacia Park roading remediation Acacia Park – a ea enefit This project was undertaken by Council, and all costs were to e e e ed m ate a e in t e a ea enefit a a ta eted ate e fi e ea a a fi ed am unt e atin unit i i t e final ea t i a e
Ruakaka sewerage extension ua a a ut e e a e e ten i n a ea enefit This scheme provided wastewater reticulation to the Ruakaka South area. The projects was partly subsidised by the Ministry of Health. For their share of the costs, ratepayers were given the ti n a in a lum um nt i uti n e fi e ea way of a targeted rate. The cost to non-residential properties included additional costs for treatment and disposal. This rate is assessed as an amount per SUIP of a rating unit, differentiated for residential and non-residential differential categories. This charge will also be levied in the 2016-2017 year.
176 Roading – seal extensions – Whangaruru North Road Whangaruru North Road – ea enefit The sealing of Whangaruru North Road was undertaken by Council and an agreed portion of the costs were to be recovered t e in t e a ea enefit The costs were to be recovered by way of a targeted rate over fi e ea a a fi ed am unt e atin unit i i t e fi t ea t i a e it ill a l t e fi t fi e ea t e
Roading – seal extensions – McKinley Road McKinley Road – ea enefit The sealing of McKinley Road is being undertaken by Council and an agreed portion of the costs were to be recovered by t e in t e a ea enefit The costs were to be recovered by way of a targeted rate over fi e ea a a fi ed am unt e atin unit i i t e fi t ea t i a e it ill a l t e fi t fi e ea t e
Hikurangi Swamp Rating District A targeted rate applies to properties in the Hikurangi Swamp Special Rating District. The land within this special rating district is di ided int la e a ed n enefit e e t t e eme n a e t e ta eted ate i a ed n a di e ential aduated scale according to the class of the property and the area of land within the rating unit. Some properties may have land which falls into several classes. A second targeted rate applies to properties in the Hikurangi Swamp Drainage Rating District, based on a differential graduated scale according the class of the property and the area of land within the rating unit. The revenue is used to defray the costs and charges of the schemes. The Hikurangi Swamp rates are projected to increase 8% this year to fund additional expenditure required to maintain the effectiveness of the scheme as outlined in the LTP. These rates will be applied for all 10 years of 2015-2025 LTP.
177 TARGETED RATES FOR THE 2015-2016 FINANCIAL YEAR
Details of rates and the amount of revenue sought for the 2015-2016 year is:
TYPE OF RATE BASIS OF ASSESSMENT RATE OR REVENUE CHARGE 2015- SOUGHT 2015- 2016 (GST 2016 (GST INCLUSIVE) INCLUSIVE)
SEWERAGE RATES $18,080,000
Residential Per separately used or inhabited part of a rating unit $639.00
Other – non-residential up to two pans Per separately used or inhabited part of a rating unit $639.00
Other – non-residential three or more pans Per pan or urinal $416.00
DISTRICT-WIDE REFUSE MANAGEMENT CHARGE $7,047,000
All categories Per separately used or inhabited part of a rating unit $166.00
WATER RATES $14,893,000
Consumption Charge Volume of metered water consumed per cubic metre $2.18
Supply charge Provision of service per separately used or inhabited $31.00 part of a rating unit
Availability charge Availability of service per separately used or $31.00 inhabited part of a rating unit
ni m a e unmete ed Provision of service per separately used or inhabited $426.00 part of a rating unit.
Backflow preventer charge Provision of service per connection based on the nature of connection
15/20mm connection $75.71
25mm connection $76.74
32mm connection $90.78
40mm connection $92.91
50mm connection $96.39
80/100mm connection $242.78
150mm connection $284.21
200mm connection $470.72
178 TYPE OF RATE BASIS OF ASSESSMENT RATE OR REVENUE CHARGE 2015- SOUGHT 2015- 2016 (GST 2016 (GST INCLUSIVE) INCLUSIVE)
SPECIAL RATES
ROADING SCHEMES
a ia a adin emediati n ea fi e fi e e atin unit in a e ified and defined a ea $400.00 $18,000 enefit
an a u u t ad eal ten i n ea ne e atin unit in a e ified and defined a ea $575.00 $16,675 fi e enefit
inle ad eal ten i n ea ne fi e e atin unit in a e ified and defined a ea $575.00 $22,425 enefit
MAINS EXTENSION – SEWER
ua a a ut a te ate ea u fi e Per separately used or inhabited part of a rating unit in a e ified and defined a ea enefit i i connected or capable of being connected.
Residential $2,342.95 $473,000
Non-Residential $3,466.87 $35,000
STORMWATER
Hikurangi Swamp Major Scheme Rating District Per hectare of land in the Hikurangi Swamp Special $901,000 to defray costs and charges within the Hikurangi Rating area Swamp special rating area. Class A approx 2,814 ha $149.31
Class B approx 1,499 ha $134.09
Class C approx 1,470 ha $104.53
Class D approx 1,931 ha $14.96
Class E approx 921 ha $7.53
Class F approx 32,450 ha $3.01
Hikurangi Swamp Drainage Rating District to defray Per hectare of land in the Hikurangi Swamp $110,000 costs and charges within the Hikurangi Swamp Drainage Rating District drainage rating area Class A approx 5,190 ha $17.27
Class F approx 11,956 ha $1.73
179 DISCOUNT FOR FULL PAYMENT OF ANNUAL RATES
e e t e t tal ea land ate and an a ea a e aid in ull t e due date t e fi t in talment a di unt ill a l ull details of the actual discount amount available will be included on the rates assessment/invoice. Please note: Some targeted rates may not have discount applied.
DUE DATE DISCOUNT
ull a ment annual land ate and an a ea ate ate n l n e e ei e di unt ea l a ment 20 August 2015 Discount 3.0%
DUE DATES FOR RATES PAID BY INSTALMENTS
Due dates and penalty dates for land rates A penalty will be added to each instalment or part thereof which remains unpaid after the due date for payment.
DUE DATE LATE PAYMENT DATE PENALTY PENALTY APPLIED
Instalment One 20 August 2015 Penalty 10% 25 August 2015
Instalment Two 20 November 2015 Penalty 10% 25 November 2015
Instalment Three 22 February 2016 Penalty 10% 25 February 2016
Instalment Four 20 May 2016 Penalty 10% 25 May 2016 Due dates and penalty dates for water rates Water accounts are processed monthly, two-monthly or six-monthly. The due dates of these accounts will be relative to the consumer’s cyclic billing period and will show on the water rates invoice. A penalty of 10% will apply to amounts unpaid after the applicable due date. Payment options A ratepayer may elect to pay both land and water rates weekly, fortnightly monthly, quarterly or annual by direct debit. Payments can also be made online with a debit or credit card. Additional charges may apply.
ADDITIONAL CHARGES
Additional penalty on arrears for land rates ll ate in ludin enaltie e i u l added m t e e i u atin ea ended une t at till emain un aid a at September 2015 will have a further 10% penalty added. Additional penalty on arrears for water rates u t e enalt ill e added t an ate ate in ludin enaltie e i u l added i ntinue t emain un aid at every six monthly interval after the due date. Remission and postponement policies Remission and postponement policies are applied where Council has adopted a policy to alter the amount of rates payable in e ifi i um tan e e e li ie ma e tained m u e ite n e ue t in e n ne
180 PRICE LEVEL ADJUSTERS
SOURCE YEAR 1 2015-16 YEAR 2 2016-17 YEAR 3 2017-18 YEAR 4 2018-19 YEAR 5 2019-20 YEAR 6 2020-21 YEAR 7 2021-22 YEAR 8 2022-23 YEAR 9 2023-24 YEAR 10 2024-25 20-YEAR AVERAGE
CAPITAL EXPENDITURE
Flood BERL – PIPELINES 2.10% 2.50% 2.60% 2.80% 2.90% 3.10% 3.20% 3.40% 3.50% 3.60% 3.00%
Libraries BERL – LGCI 2.24% 2.45% 2.53% 2.61% 2.75% 2.90% 3.04% 3.19% 3.36% 3.53% 3.06%
Parks & Recreation BERL – PROPERTY 2.20% 2.40% 2.50% 2.60% 2.80% 2.90% 3.00% 3.20% 3.30% 3.40% 2.90%
Property BERL – PROPERTY 2.20% 2.40% 2.50% 2.60% 2.80% 2.90% 3.00% 3.20% 3.30% 3.40% 2.90%
Solid Waste BERL – OTHER 2.30% 2.50% 2.60% 2.70% 2.90% 3.00% 3.10% 3.30% 3.40% 3.60% 3.00%
Stormwater BERL – PIPELINES 2.10% 2.50% 2.60% 2.80% 2.90% 3.10% 3.20% 3.40% 3.50% 3.60% 3.00%
Transportation BERL – ROAD 1.20% 1.40% 2.20% 2.40% 2.50% 2.70% 2.80% 3.00% 3.10% 3.30% 3.20%
Wastewater BERL – PIPELINES 2.10% 2.50% 2.60% 2.80% 2.90% 3.10% 3.20% 3.40% 3.50% 3.60% 3.00%
Water BERL – PIPELINES 2.10% 2.50% 2.60% 2.80% 2.90% 3.10% 3.20% 3.40% 3.50% 3.60% 3.00%
Others BERL – LGCI 2.24% 2.45% 2.53% 2.61% 2.75% 2.90% 3.04% 3.19% 3.36% 3.53% 3.06%
SPECIFIC OPERATING
Flood BERL – WATER 5.20% 3.80% 3.00% 3.20% 3.30% 3.50% 3.70% 3.80% 4.00% 4.20% 3.50%
Libraries BERL – LGCI 2.24% 2.45% 2.53% 2.61% 2.75% 2.90% 3.04% 3.19% 3.36% 3.53% 3.06%
Parks & Recreation BERL – PROPERTY 2.20% 2.40% 2.50% 2.60% 2.80% 2.90% 3.00% 3.20% 3.30% 3.40% 2.90%
Property BERL – PROPERTY 2.20% 2.40% 2.50% 2.60% 2.80% 2.90% 3.00% 3.20% 3.30% 3.40% 2.90%
Solid Waste BERL – OTHER 2.30% 2.50% 2.60% 2.70% 2.90% 3.00% 3.10% 3.30% 3.40% 3.60% 3.00%
Stormwater BERL – WATER 5.20% 3.80% 3.00% 3.20% 3.30% 3.50% 3.70% 3.80% 4.00% 4.20% 3.50%
Transportation BERL – ROAD 1.20% 1.40% 2.20% 2.40% 2.50% 2.70% 2.80% 3.00% 3.10% 3.30% 3.20%
Wastewater BERL – WATER 5.20% 3.80% 3.00% 3.20% 3.30% 3.50% 3.70% 3.80% 4.00% 4.20% 3.50%
Water BERL – WATER 5.20% 3.80% 3.00% 3.20% 3.30% 3.50% 3.70% 3.80% 4.00% 4.20% 3.50%
Others BERL – LGCI 2.24% 2.45% 2.53% 2.61% 2.75% 2.90% 3.04% 3.19% 3.36% 3.53% 3.06%
GENERAL OPERATING
Energy BERL – ENERGY 3.50% 3.80% 3.90% 4.10% 4.30% 4.50% 4.70% 4.90% 5.10% 5.30% 4.70%
Personnel BERL – STAFF* 2.00% 2.00% 2.00% 2.10% 2.20% 2.30% 2.40% 2.50% 2.60% 2.70% 2.40%
Other BERL – LGCI 2.24% 2.45% 2.53% 2.61% 2.75% 2.90% 3.04% 3.19% 3.36% 3.53% 3.06%
Growth GROWTH MODEL 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%
Land Rates excluding BERL – LGCI + 3.24% 3.45% 3.53% 3.61% 3.75% 3.90% 4.04% 4.19% 4.36% 4.53% 4.06% flood GROWTH
Water Rates BERL – LGCI 2.24% 2.45% 2.53% 2.61% 2.75% 2.90% 3.04% 3.19% 3.36% 3.53% 3.06%
* BERL ‘Staff’ rates have been applied to Personnel costs, other than Years one and two when a minimum rate of 2% has been used.
Sources:
BERL: Business and Economic Research Ltd – Forecast of Price Level Change Adjusters – 2014 Update
Growth Model: Whangarei District Council Growth Model 2014
181
PART FIVE POLICIES AND PLANS REVENUE AND FINANCING POLICY BACKGROUND
The Revenue and Financing Policy is a requirement of the Local Government Act 2002. The policy is supported by analysis of the funding of each activity group and recognises that the funding policy is more than just a device for raising revenue but is also one of the instruments that can be used to promote community wellbeing. The Policy is supported by ‘practice notes’ for each activity that illustrate how the Policy is applied. They are not part of the Policy itself and are simply estimates to provide guidance as to Council’s view of the appropriate level and method of funding. These practice notes can be found on our website with the Policy.
REVIEW PROCESS
Council has reviewed each individual activity and its funding in developing its Revenue and Financing Policy. As part of t at e un il a n ide ed t e natu e t e a ti it ided and t e enefit and enefi ia ie t e a ti it Considerations of the following during that deliberation were taken into account: • community outcomes – which outcome the activity primarily • exacerbator pays principle – the extent to which actions or relates to, and the rationale for doing it inactions of individuals or groups contribute to the need to undertake the activity and the costs that occur as a result • u e enefi ia a in i le – di t i uti n enefit between individuals or groups and the community as a • t and enefit undin t e a ti it di tin t m t e whole activities. • inter-generational principle – the period over which the enefit a e e e ted t a ue Consideration was then given to the overall impact of any allocation of liability for revenue needs on the community. This may e ult in an alte ati n t e e ult t e fi t te it t e undin ti n t e le el undin m an u e alte ed t ensure there are no barriers or disincentives, and that an inequitable burden is not placed on any particular community sector or group. Some questions pondered as part of that consideration were: • how will the mix of funding impact on affordability, e.g. on the • do we want to encourage or discourage a particular activity elderly or those on low incomes? or behaviour? • will the policy impact on accessibility to some services? • what is the effect on a particular sector of our community, community groups or rating categories? • can we charge the amount required, or is it restricted by legislation? • how will this impact based on current economic conditions? By way of an example, for the funding of Library services activity the result was:
ACTIVITY COMMUNITY FACILITIES & SERVICES – LIBRARIES
Primary Community Vibrant and healthy communities Outcome
Why do we do it Facilitates community access to literacy resources regardless of age, income, or ability and encourages life long learning.
enefit There are three main activities: – e eati nal edu ati nal in mati nal e t e li a ain a i ate enefit in t at it mem e i t e a e a le t a e eadin mate ial e e i a ide mmunit enefit in t e i i n reading material, the availability of reference material and protection of heritage documents. Library users; Whole community;
e i d enefit inte a ilitie ide t t and l n te m enefit a ilitie u a li a uildin a ue enefit t e en ed ene ati nal e uit future ratepayers as well.
Whose actions or inactions Books not returned mean others are disadvantaged. If lost, then replacements should be paid for. Follow recommended contribute items per capita means population growth leads to increase in need.
Assessment of options e e timated di t i uti n i ate u li enefit mean al t e t uld e aid u e i eti na item audi i ual uld e a ed in ull ine uld e a ed late etu n
184 ACTIVITY COMMUNITY FACILITIES & SERVICES – LIBRARIES
i ate enefit 50 u li enefit 50
Assessment of overall The rationale is to encourage life long learning, therefore membership fees and item hireage costs could create a barrier impacts of allocation of to that goal. revenue needs ate e enue u e a e all ated a te ta in int a unt t e elati e enefit t e e idential u al and mme ial sectors receive.
Funding options Type % Comments
User fees Minor Membership will be free to all ratepayers. A user fee for audio visual items, books to be borrowed for free enhancing access and affordability. Fines will apply for late returns. Internet access is chargeable.
General rates Major The ratepayer share of costs should be around 90%.
Development contributions Capex Payable to fund growth.
Loan funding Capex e a ilitie i e l n te m enefit and uld e unded by loans.
Depreciation Capex Used to repay loans and fund renewal expenditure.
Reserves Capex Used if appropriate and where available.
FUNDING OF OPERATING EXPENSES
Operating expenses are for the ongoing operations and for the maintenance of Council’s assets. The different mechanisms available for funding operating expenses are: General rates a e u ed t und t e e i e e e t e e i a enefit t t e le mmunit u li enefit e e t e e i no practical method for charging individual users. General rates fund a range of activities which are used by individual ratepayers to varying extents. This Council uses general rates rather than a number of targeted rates as it results in a simpler rating system. This makes it easier for ratepayers to understand how they are being rated and it is cheaper to administer. Rates are regarded as a tax, as there is no direct link between the activity or service provided and the individual ratepayer. General rates are assessed based on a property’s value and as a uniform annual general charge. Value-based general rates are assessed on land value and are differentiated by land use. The differentials to be applied are: • residential differential, including steps on high value • multi-unit differential properties • commercial and industrial differential. • rural differential Full details of the differentials used may be found in the Funding Impact Statement. e uni m annual ene al a e i a lied t ea e a atel u ed in a ited a t ea atin unit i i u ed t und a ti itie e e a fi ed a ed i deemed t e m e a iate t an ne a ed n e t alue Targeted rates a e u ed t e lu i el und a a ti ula a ti it ma e u ed e e t e enefit i e e ted t a ue t ne sector or location. The funds collected must be used for the purpose for which they are rated. Targeted rates are only used where Council considers it is an appropriate mechanism to fund that activity or where Council wishes to make clear the purpose for which the rate is collected. The revenue collected in any one year may result in a surplus, which is used to repay debt or to fund capital expenditure in future. User fees and charges a e u ed e e t e enefi ia ie an e identified and a ed e in lude n ent ee li en e ee sales of goods, hireage fees or recoveries of costs incurred. When setting fees and charges, Council will consider any indirect enefit t t e mmunit t e di t i uti n t e enefit and a ilit t a me ee ma e limited le i lati n meanin full recovery of costs is not possible. Grants and subsidies are used where they are available. Borrowing i n t ene all u ed t und e atin e en e ut i u ed t m t t e inte ene ati nal enefit t e a ital expenditure programme. Council may also use borrowing to give a grant to a community organisation to fund a community facility. Income from dividends, interest and rents is used to reduce the requirement from general revenue and is used to fund activities in the same way that rates do. In some cases where the income is from investment properties, some of the income is used to ensure the overall portfolio is maintained in terms of ongoing purchasing power. Enforcement fees are charged where possible. They are used to promote compliance rather than to raise revenue, and may not recover the full cost depending on the level of compliance and the extent to which charges are limited by statute or the court.
185 FUNDING SOURCE FOR ACTIVITIES
The result of that review, and list of activities and the mechanisms used to fund these activities, are included in the table below. efiniti n undin u e a e n unde neat t e ta le
ACTIVITY GROUP ACTIVITY FUNDING SOURCE
GENERAL TARGETED FEES OR RATES RATES SUBSIDIES
Transportation Roading network Major Potential Subsidy/petrol tax
Car parking Full
Footpaths Full
Alternate transport options Major Minor
Water Water Major Minor
Wastewater Wastewater Minor Major/potential Subsidy/Minor fees
Stormwater Stormwater Full
Flood Protection & Control Works Flood Protection & Control Works Full
Solid Waste Management Rubbish and recycling collection and disposal Minor Major
Clean District and waste minimisation Full Subsidy
Planning & Regulatory Services Resource Consents Minor Major
Building Consents Minor Major
Regulatory Services Minor Major
Policy & Monitoring Major Minor
Economic Growth Tourism and visitor information services Major Minor
Iwi Liaison Full
Economic Development Full
Community Facilities & Services Parks & Recreation Major Potential Minor
Cemeteries and crematorium Residual Major
Libraries Major Minor
Property Full
Community Services Full Subsidy
Venues & Events Minor Major Definitions Full means that all, or almost all, of the cost of the activity is funded from that source. It does not preclude the use of charges to cover a small portion of the total funding, or the use of general rates to meet the shortfall in any year. However, the revenue from these sources is a negligible part of the total funding. Major means that the majority of the activity is funded from that source. In some cases, the decision not to fully fund the activity may result from the recognition of the public good portion of that activity, or it may result from constraints which mean full recovery is not possible or desirable. Minor means a lesser portion of the activity is funded from that source. This may equate to the public good portion, or the portion which can be recovered from users. Subsidy means that a portion of the activity is funded from a government subsidy. In some cases the subsidy is a small portion t e t tal t in t e u a t an tati n it i a i nifi ant ti n t e t tal undin e ui ement Petrol Tax is the local government share of petrol tax levied by central government. It is used to contribute to the costs of maintaining roads. Potential identifie a ti itie e e a a ti ula e t a a eate enefit t nl ne a ea t e mmunit e t t e e t a e t en e e ed a a ta eted ate t t e in t at a ea enefit
186 FUNDING OF CAPITAL
Rates, either general or targeted, may be used to fund a portion of capital expenditure when it is considered appropriate to do so, and to repay debt. This will be balanced against affordability for current ratepayers and the current and future needs of the community. Borrowing is an appropriate funding mechanism to enable the effect of peaks and troughs in capital expenditure to be m t ed and t en u e t e t ma de el ment a e ne t e ultimatel enefit m t e e enditu e t i not appropriate or sustainable for all capital expenditure to be funded from borrowings. In periods of low capital expenditure, borrowing will be reduced. Proceeds from property sales will be invested in the property reinvestment reserve, and the funds may be used to purchase other commercial properties in future. Any funds in the reserve may be used to fund capital expenditure in other activities to smooth Council’s overall cashflow requirements. Proceeds from other asset sales may be used to fund capital works or to repay debt. Depreciation is an indirect source of funding as Depreciation Reserves are not created. However, Rates are set at a level that et t e al ulated n n a e e iati n t e atin u lu e e e a aila le a e t en u ed t und ene al a ital expenditure. Development contributions will be used to fund the growth component of capital expenditure. The growth in our District drives a portion of our capital work requirement to maintain Levels of Service to a larger community. As the costs of growth are driven by development, Council considers it equitable that a development should make a contribution to the costs that are being imposed. Council has a development contributions policy which sets out the level of contributions required to fund infrastructure requirements. Grants and subsidies are used when they are available. Financial contributions will be used to fund capital expenditure in accordance with the Resource Management Act 1991. Reserves including retained earnings from operating surpluses from previous years may be used to fund capital expenditure. User contributions a e t i all aid in t e m a ta eted ate an identified u di e t enefi ia ie n man a e this group would have lobbied for the inclusion of the project during a consultation process.
FUNDING SOURCE FOR CAPITAL EXPENDITURE
Because Council funds some of its activities via targeted rates, debt is allocated based on a major activity. Through its LTP it determines what capital expenditure is sustainable within the prudent guidelines outlined in the Financial Strategy. Asset management plans are maintained for all infrastructural assets and these provide detailed analysis of asset condition and asset renewal programmes required to maintain the agreed service level. Typical sources of funding for capital expenditure are:
TYPE OF ASSET PURCHASE TYPICAL FUNDING SOURCES
Replacement routine on-going plant and equipment purchases • rates • u idie and ant en a aila le Smaller plant and equipment purchases • proceeds of asset sales • reserves • depreciation • borrowing
Capital renewals • rates • u idie and ant en a aila le Larger capital projects that replace similar existing assets • proceeds of asset sales • reserves • depreciation • finan ial de el ment nt i uti n t element in a dan e it li • borrowing
New capital developments • rates • u idie and ant en a aila le e a et i a e m letel ne a e i nifi antl di e ent m the asset which they replace • proceeds of asset sales • user contributions • reserves • depreciation • finan ial de el ment nt i uti n t element in a dan e it li • borrowing
187 SIGNIFICANCE AND ENGAGEMENT POLICY
PURPOSE AND SCOPE
un il i nifi an e and n a ement li i intended t 1. ena le un il and it mmunitie t identi t e de ee i nifi an e atta ed t a ti ula i ue al a et decisions and activities 2. provide clarity about how and when communities can expect to be engaged in decisions to be made by Council 3. inform Council from the beginning of a decision-making process about the extent of public engagement expected, and the form and type of engagement required. DEFINITIONS FOR THIS POLICY Community A group of people living in the same place or having a particular characteristic in common. Consultation A process of informing the community and seeking information or feedback to inform and assist decision-making. Consultation is a formal type of ‘engagement’, and is often prescribed by legislation and time bound. Decisions e e t all t e de i i n made n e al un il in ludin t e made fi e unde dele ati n Emergency works Work undertaken to repair and restore Council infrastructure and services following natural events and/or disasters. Engagement Engagement is a process which involves all or some of the community and is focused on better understanding views and preferences relevant to Council’s decision-making or problem-solving. There is a continuum of engagement. Significance defined in e ti n t e al e nment t “in relation to any issue, proposal, decision, or other matter that concerns or is before a local authority, means the degree of importance of the issue, proposal, decision, or matter, as assessed by the local authority, in terms of its likely impact on, and likely consequences for,— (a) the district or region (b) any persons who are likely to be particularly affected by, or interested in, the issue, proposal, decision, or matter: (c) the capacity of the local authority to perform its role, and the financial and other costs of doing so”. Strategic asset defined in e ti n t e “in relation to the assets held by a local authority, means an asset or group of assets that the local authority needs to retain if the local authority is to maintain the local authority’s capacity to achieve or promote any outcome that the local authority determines to be important to the current or future well-being of the community; and includes— (a) any asset or group of assets listed in accordance with section 76 AA (3) by the local authority; and (b) any land or building owned by the local authority and required to maintain the local authority’s capacity to provide affordable housing as part of its social policy; and (c) any equity securities held by the local authority in— (i) a port company within the meaning of the Port Companies Act 1988: an airport company within the meaning of the Airport Authorities Act 1966”.
188 POLICY
4. n n ide in t e de ee i nifi an e e e i ue e ui in a de i i n un il ill a e e a d t t e ll in principles: a the potential effect on delivering on Council’s direction the parties who are likely to be particularly affected by, or interested in, the decision or proposal the likely impact/consequences of the decision or proposal from the perspective of those parties d t e finan ial and n n finan ial t and im li ati n t e de i i n al a in e a d t un il a a it t perform its role. 5. n e e i ue e ui in a de i i n t e de ee i nifi an e ill e n ide ed u in t e ite ia utlined unde t e ete minin i nifi an e e ti n t i li e e ite ia e le t t e ene al in i le et ut a e 6. Engaging with the community is considered to be key to understanding the views and preferences of people likely to be a e ted a e an inte e t in a a ti ula i ue din l i nifi an e and en a ement ill e n ide ed in t e early stages of a proposal before decision-making occurs and, if necessary, reconsidered as a proposal develops. 7. Council is required to undertake a Special Consultative Procedure as set out in section 83 of the LGA, or to carry out n ultati n in a dan e it i in e e t t e ti n t e n e tain matte e a dle et e t e a e n ide ed i nifi ant a a t t i li 8. For all other issues requiring a decision, Council will determine the appropriate level of engagement on a case by case basis. In ene al t e m e i nifi ant an i ue t e eate t e need mmunit en a ement 9. e mmunit n a ement uide atta ed identifie t e m en a ement un il ill u e t e nd t me e ifi issues. It also provides examples of types of issues and how and when communities could expect to be engaged in the decision-making process. 10. Differing levels of engagement may be required during the varying phases of decision-making on an issue, and for different stakeholders. 11. int ana ement eement em andum nde tandin an t e imila i le el a eement u a t e e ea ea t ate i elati n i eement ill e n ide ed a a ta tin int en en a in it i
DETERMINING SIGNIFICANCE
12. n dete minin t e de ee i nifi an e an i ue un il ill a l t e ll in ite ia it t e e e ti n eme en a de i i n i i nifi ant i in un il ud ement t m e t e ite ia mea u e a e t i e ed
CRITERIA MEASURE
Impact on Council’s direction Major and long-term
Change in Council’s current level of service Major and long-term
Level of public impact and/or interest Major and District-wide, or a an identified mmunit inte e t
m a t n un il a a ilit n n t Major and long-term
et finan ial t e enue im lementati n e ludin an finan ial im a t al ead in luded in an Net Capital Expenditure >10% of Total Rates in LTP/Annual Plan year commenced, and/or Net Operating Expenditure >2.5% of Total Rates in year commenced
189 IMPLEMENTATION
13. en an i ue e ui in a de i i n i dete mined a ein i nifi ant i e a in a i de ee i nifi an e a the decision will be made by Council a e t t un il ill in lude an a e ment t e de ee i nifi an e t e i ue t e de ee en a ement proposed, the engagement plan proposed and a recommendation. 14. en an i ue e ui in a de i i n i dete mined a n t ein i nifi ant a t e de i i n ill e made un il a mmittee em e fi e it dele ated aut it where the decision is made by Council or a Committee with delegated authority a report will include an assessment of t e de ee i nifi an e t e i ue and n te at i an en a ement i ed adl t e am unt and m en a ement ill e e e ted t e in ti n t t e i nifi an e alt u t e a t ele ant t t i a e ment in lude t e natu e and i um tan e t e de i i n e e t e ti n t e e e t e de i i n i made a em e fi e a tin unde dele ated aut it it ill n t e ne e a t mall d ument t e a e ment i nifi an e en a ement a u matte a e li el t e l i nifi an e 15. en un il ma e a de i i n t at i i nifi antl in n i tent it t i li t e te identified in e ti n t e will be undertaken.
ADOPTION
This Policy has been approved for adoption by the Governance Manager and the Group Manager Support Services. Policy adopted by Council Resolution on 26 November 2014
SCHEDULE 1 – STRATEGIC ASSETS
Section 5 of the LGA provides that the following are strategic assets: (a) “any asset or group of assets listed in accordance with section 76AA(3) by the local authority; and (b) any land or building owned by the local authority and required to maintain the local authority’s capacity to provide affordable housing as part of its social policy; and (c) any equity securities held by the local authority in— (i) a port company within the meaning of the Port Companies Act 1988 (ii) an airport company within the meaning of the Airport Authorities Act 1966” The following is a list of assets or group of assets that Council needs to retain if it is to maintain its capacity to achieve or promote any outcome that it determines to be important to the current and future needs of the community: • Council’s interest in a joint venture with the Crown for the Whangarei District Airport • inte e t in t e t land e i nal andfill imited a tne i • pensioner housing • t an tati n and t a fi net in ludin t at t eet li tin and a in ut e ludin land ale u a e • wastewater network and treatment plant • water treatment, storage and supply network • stormwater network • e e e and t field • Forum North complex • Hikurangi Swamp drainage scheme • libraries. For the purposes of section 97 of the LGA, Council will treat each of the above as strategic assets only where a decision affects the whole of the assets in the particular group or it would materially alter the nature of that group.
190 SCHEDULE 2 – COMMUNITY ENGAGEMENT GUIDE
Community engagement: • is a process • involves all or some of the public • is focused on decision-making or problem-solving. e nte nati nal iati n u li a ti i ati n a de el ed a u li a ti i ati n e t um t dem n t ate t e possible types of engagement with the community. This model also shows the increasing level of public impact as you progress through the spectrum from left to right – ‘inform’ through to ‘empower’. In simply ‘informing’ stakeholders there is no expectation of receiving feedback, and consequently there is a low level of public impact. At the other end of the spectrum, ‘empowering’ stakeholders to make decisions implies an increase in expectations and therefore an increased level of public impact. It will not always be appropriate or practicable to conduct processes at the ‘collaborate’ or ‘empower’ end of the spectrum. Many minor issues will not warrant such an involved approach. Time and money may also limit what is possible on some occasions. It is expected that the vast majority of matters will fall within the ‘inform’, ‘consult’ and ‘involve’ range. There are limited statutory situations which fall within the ‘empower’ range. n ene al t e m e i nifi ant an i ue t e eate t e need mmunit en a ement
Inform Consult Involve Collaborate Empower
Level of engagement
When consulting with the community, Council will: • seek out and encourage contributions from people who may be affected by or interested in a decision • provide relevant, timely and balanced information so people can contribute in a meaningful way • provide appropriate ways for people to have their say • after the decision is made, tell the community what Council’s decision is and the reasons for that decision. Forms of engagement un il ill u e t e e ial n ultati e edu e a et ut in e ti n t e e e e ui ed t d la in ludin for the following issues requiring decisions: • t e ad ti n amendment an in a dan e it e ti n t e • t e ad ti n amendment e ati n la i e ui ed unde e ti n a t e • the adoption, amendment or revocation of a Local Alcohol Policy • t e ad ti n e ie a al ed du t a ti e u tan e li • the adoption or review of a Class 4 Venue Policy under the Gambling Act 2003 • the preparation, amendment or revocation of a Waste Management and Minimisation Plan • t e ad ti n ee and a e e e e ifi all e ui ed t u e an e ial n ultati e edu e unde ele ant le i lati n i e ee and a e unde t e e u e ana ement t Unless already explicitly provided for in the LTP, Council will seek to amend its LTP, and therefore use the Special Consultative Procedure, when it proposes to: • alte i nifi antl t e intended le el e i e i i n an e e i e unde ta en n e al un il in ludin commencing or ceasing such an activity • transfer the ownership or control of strategic assets, as listed in Schedule 1. Council will consult in accordance with, or use a process or a manner that gives effect to the requirements of, section 82 of the e e e ui ed t d la in ludin t e ll in e ifi i ue e ui in de i i n • adopting or amending the Annual Plan if required under section 95 of the LGA • ad tin amendin a la i e ui ed unde e ti n t e • transferring responsibilities to another local authority under section 17 of the LGA
191 • establishing or becoming a shareholder in a Council-controlled organisation • ad tin amendin a i nifi an e and n a ement li e e un il n ide t at it d e n t a e u fi ient information about community interests and preferences to enable the purpose of the policy to be achieved. • adopting or amending a Revenue and Financing Policy, Development Contributions Policy, Financial Contributions Policy, Rates emi i n li ate t nement li a li n t e emi i n t nement ate n i ee ld land u n ultati n un il ill de el in mati n ulfillin t e e ui ement e ti n t e ill ma e t i available to the public, allow written submissions for a period of up to four weeks, and will consider all submissions presented prior to making decisions. OTHER FORMS OF ENGAGEMENT For all other issues, the following table provides an example of the differing levels of engagement that might be considered appropriate, the types of tools associated with each level and the timing generally associated with these types of decisions/levels of engagement.
LEVEL INFORM CONSULT INVOLVE COLLABORATE EMPOWER
What does it involve One-way Two-way Participatory process Working together e final de i i n communication communications designed to help to develop making is in the providing balanced designed to obtain identify issues and understanding hands of the public. and objective public feedback about views to ensure of all issues and Under the LGA, the information to assist ideas on rationale, that concerns and interests to work Mayor and Councillors understanding about alternatives and aspirations are out alternatives and are elected to make something that is proposals to inform understood and identify preferred decisions on behalf of going to happen or decision-making. considered prior to solutions. their constituents. has happened. decision-making.
Types of issues that Water restrictions Rates Review District Plan Harbour Management Electoral voting or a we might use this for Plan proposed change in tem i e t i eat
Tools Council might Website Formal submissions Workshops External working Binding referendum use Radio and hearings Focus and/or u in l in Local body elections Council News Focus and/or Advisory groups mmunit e e t Facebook Advisory groups Face-to-face one- Phone surveys/ on-one surveys/ priority polls Public meetings Inviting feedback through Facebook and website
When the community Council would Council would advise Council would Council would Council would can expect to be generally advise the the community once a generally provide the generally involve the generally provide the involved community once a draft decision is made community with a community at the community with a decision is made. by Council and would greater lead in time start to scope the greater lead in time generally provide to allow them time issue, again after to allow them time the community with to be involved in the information has been to be involved in the up to four weeks process. collected and again process. e.g. typically to participate and when options are a month or more. respond. Where being considered. desirable to meet the needs of affected parties or groups, and possible within timeframes available, Council may consider extending this period.
Engagement tools and techniques Over the time of decision-making, Council may use a variety of engagement techniques on any issue or proposal and the tools may be adapted based on a range of other factors, including history and public awareness of the issue, stakeholder involvement, and timing related to other events and budgets. Council will also take into consideration that the community can feel ‘over n ulted t a in u at e t in and et n it it a ituati n ill e add e ed a din t t t e i ue and t e phase of decision-making and the individual circumstances it presents.
192 PART SIX AUDIT REPORT INDEPENDANT AUDITOR’S REPORT To the reader: Independent auditor’s report on Whangarei District Council’s 2015/25 Long-Term Plan
I am the Auditor-General’s appointed auditor for Whangarei • the assumptions set out within the plan are based on i t i t un il t e un il e ti n t e al the best information currently available to the Council e nment t t e t e ui e an audit e t n t e and provide a reasonable and supportable basis for the un il n e m lan t e lan a e a ied ut t i preparation of the forecast information; audit using the staff and resources of Audit New Zealand. We • t e e a t finan ial in mati n a een e l completed the audit on 24 June 2015. prepared on the basis of the underlying information and the Opinion assumptions adopted and complies with generally accepted accounting practice in New Zealand; In my opinion: • the rationale for the Council’s activities is clearly presented • the plan provides a reasonable basis for: and agreed levels of service are reflected throughout the » long-term, integrated decision-making and coordination plan; of the Council’s resources; and • the levels of service and performance measures are » accountability of the Council to the community; reasonable estimates and reflect the main aspects of the Council’s intended service delivery and performance; and • the information and assumptions underlying the forecast information in the plan are reasonable; and • the relationship between the levels of service, performance mea u e and e a t finan ial in mati n a een • the disclosures on pages 39 to 41 represent a complete adequately explained within the plan. list of the disclosures required by Part 2 of the Local e nment inan ial e tin and uden e e ulati n We did not evaluate the security and controls over the 2014 and accurately reflect the information drawn from the electronic publication of the plan. District’s audited information. Responsibilities of the Council and auditor This opinion does not provide assurance that the forecasts The Council is responsible for: in the plan will be achieved, because events do not always occur as expected and variations may be material. Nor does it • meeting all legal requirements affecting its procedures, guarantee complete accuracy of the information in the plan. decisions, consultation, disclosures and other actions relating to the preparation of the plan; Basis of Opinion • e entin e a t finan ial in mati n in a dan e it We carried out our work in accordance with the Auditor- generally accepted accounting practice in New Zealand; and General’s Auditing Standards, relevant international standards and the ethical requirements in those standards.1 • having systems and processes in place to enable the preparation of a plan that is free from material We assessed the evidence the Council has to support the misstatement. information and disclosures in the plan and the application of its policies and strategies to the forecast information in the I am responsible for expressing an independent opinion on plan. To select appropriate audit procedures, we assessed the aspects of the plan, as required by sections 94 and 259C of risk of material misstatement and the Council’s systems and the Act. I do not express an opinion on the merits of the plan’s processes applying to the preparation of the plan. policy content. Our audit procedures included assessing whether: Independence • t e un il finan ial t ate and t e a iated finan ial We have followed the independence requirements of the li ie u t udent finan ial mana ement t e Auditor-General, which incorporate those of the External Council; Reporting Board. Other than our work in carrying out all legally required external audits, we have no relationship with or • t e un il in a t u tu e t ate identifie t e i nifi ant interests in the Council or any of its subsidiaries. infrastructure issues that the Council is likely to face over the next 30 years; • the information in the plan is based on materially complete Leon Pieterse, Audit New Zealand and reliable asset and activity information; On behalf of the Auditor-General, Auckland, • the Council’s key plans and policies have been consistently New Zealand applied in the development of the forecast information;
1 e nte nati nal tanda d n u an e n a ement e ealand e i ed Assurance Engagements Other Than Audits or Reviews of Historical Financial Information and The International Standard on Assurance Engagements 3400: The Examination of Prospective Financial Information.
194 PART SEVEN GENERAL INFORMATION ABBREVIATIONS AND ACRONYMS
AMP NIF Activity or Asset Management Plan Northland Intersectoral Forum BERL NRC Business and Economic Research Limited Northland Regional Council CAA NRLLP Civil Aviation Authority t land e i nal andfill imited a tne i CCO NZIFRS Council Controlled Organisation New Zealand International Financial Reporting Standards CCTO NZTA Council Controlled Trading Organisation New Zealand Transport Agency CE OCR Chief Executive fi ial a ate CO PBE Council Organisation u li enefit ntit CPI PPE Consumer Price Index Property, Plant and Equipment DCP RDF Development Contributions Policy Regional Development Fund FN RPS Forum North Regional Policy Statement GAAP RFP Generally Accepted Accounting Practice Request for Proposal GST RMA Goods and Services Tax Resource Management Act HWMAC SOI unde t a e ai au i t ent e Statement of Intent IPSAS SCP International Public Sector Accounting Standards Special Consultative Procedure LA SUIP Local Authority Separately Used or Inhabited Part LGA TA Local Government Act 2002 Territorial Authority LGCI UAGC Local Government Cost Index Uniform Annual General Charge LGFA WAMT Local Government Funding Agency Whangarei Art Museum Trust LTP WQGT Long Term Plan Whangarei Quarry Gardens Trust NEC Northland Events Centre
196 GLOSSARY
Activity General rate The goods or services that Council provides to the community. The rates charge against each rateable unit. It comprises the ni m nnual ene al a e and t e ate in t e Activity Management Plan (AMP) dollar calculated in accordance with Council rating policies. n e ati nal lan t at detail li finan ial e a tin engineering requirements and levels of service for non-asset- Inflation related Council activities. An increase in the cost to buy things and fall in what you can buy for a certain value of money. The Consumer Price Arrears nde i t e in lati n ate t at elate t u e ld i e Money that is owed and should have been paid earlier. in ea e ile t e al e nment t nde i t e Assets rate that relates to local government cost increases. Physical items owned by Council and used for the purpose of Infrastructure service provision to the community, for example property, plant Fixed utility assets including roads, sewerage, stormwater, and equipment. water and waste. Asset Management Plan (AMP) Intergenerational equity n e ati nal lan t at detail li finan ial e a tin mm n te m u ed t e e t e ead enefit engineering requirements and levels of service for asset-related across time. Much of the expenditure of a local authority is Council activities. in a t u tu e a et t at a e l n e i e li e u a Annual Plan adin net u ent ate a e uld n t e e e ted An annual plan must be prepared by a council annually t und all t e enefit utu e u e t a e ead except in an LTP year, and it must be adopted before the across current and future users. commencement of the year in which it operates. The purpose Land Value of the annual plan is set out in the Local Government Act 2002, The assessment of the probable price that would have e ti n been paid for the bare land as at the date of the last general Capital expenditure valuation. The category of funding used for building new assets or Level of service increase the value of existing assets. Describes in measurable terms the standard of services that Capital Value Council will provide for each activity undertaken. The total value of the land including improvements. This is the Local Authority (LA) probable price that would have been paid for the property if it A regional council or territorial authority had sold at the date of the last general valuation. Local Government Act 2002 (LGA) Community e e le i lati n t at define at un il u e and The people of the area covered by Council. responsibilities are to the community and how they must be Community Outcomes ulfilled and e ted n Outcomes that a local authority aims to achieve in meeting Long Term Plan (LTP) the current and future needs of communities for good-quality A 10-year plan adopted every three years that sets out the local infrastructure, local public services and performance planned activities, budgets and service provision of Council. of regulatory functions. A local authority will consider these outcomes in the course of its decision making. Official Cash Rate (OCR) The interest rate set by the Reserve Bank to meet the Council Controlled Organisation (CCO) in lati n ta et e ified in t e li a et eement e An organisation of which Council maintains at least 50% Agreement, dated September 2002, requires the Reserve Bank voting rights to or has the right to appoint at least 50% of the to keep inflation at between 1% and 3% per annum. directors or trustees. CCOs are generally operated without the e ti e ma in a u lu fit and a e u uall et u Operating rxpenditure t inde endentl mana e un il a ilitie deli e e ifi The category of expenditure incurred as a result of Council’s services. normal business operations. Council Controlled Trading Organisation (CCTO) Penalty (rates) As for a Council Controlled Organisation but with the objective A charge that is added to rates that remain outstanding after ma in a fit the due date for payment. Depreciation Rating unit The accounting expense that reflects the annual consumption ne e tifi ate itle e ual ne atin unit i ill e ei e of an asset’s economic life. one rates assessment. Development Contributions (DC) Rates postponement Payments received from developers to fund growth-related A postponement delays the payment of rates until a later time capital expenditure. These charges recover part of the cost of u a en t e e t i e entuall ld additional or upgraded infrastructure that is required to service new developments, e.g. roading, water, wastewater.
197 Rates remission Policies to provide assistance in the form of rates relief to ate a e meet e ifi ite ia Regional Council A council charged with managing the natural resources of its region including water, soil and air. Our regional council is the Northland Regional Council which represents the communities of the Far North, Kaipara and Whangarei Districts. Special Consultative Procedure (SCP) The procedure that councils are required to undertake in certain de i i n ma in i um tan e a defined t e al e nment t e ti n Strategic asset An asset or group of assets that the local authority needs to retain to maintain its capacity to promote any outcome it considers important to the current or future well-being of the community. Targeted rate ate lle ted t und a e ifi a ti it ate t at i ta eted can only be used for the purpose of which it was collected. a eted ate a e nl a ed t e le ill enefit m the activity. Territorial Authority (TA) A city council or a district council. Uniform Annual General Charge (UAGC) ate fi ed d lla am unt a lied t all e tie i i n t related to the value of the property. Valuation An estimation of a property’s worth. Council carries out property revaluations every three years.
198 INDEX
A E abbreviations, 197 economic growth, 106–109, 134–135 accounting policies, 155–171 F annual operating fund requests, 15 Fair Trade, 17 Aquatic Centre, 15 fees, 29 assets, 34 finan ial e ie ea Auditors Report, 192–195 Financial Statements, prospective, 141–149 B Financial Strategy, 9, 20–41, 45 Balance Sheet, prospective, 142–147 flood protection, 42, 51, 54, 57, 62, 67, 94–97, 130–131, 177 eautifi ati n ee en e la e footpaths, 16 benchmarks, 39–41 forecasting assumptions, 150–154 C Funding Impact Statement, 72–73, 173–180 capital expenditure, 31–33, 47, 122–139 G assumptions, 52 eneti all m dified ani m Cash Flow Statement, prospective, 148–149 glossary, 198–199 cemeteries, 17, 59 H cctv, 15 Hihiaua Cultural Centre, 15 CitySafe, 15 Hikurangi Swamp. see flood protection climate change, 18, 58 Hockey Northland, 17 coastal and harbour protection, 15 Hundertwasser Wairau Maori Arts Centre, 15 mme ial e t an t eet I commercial rates, 16 Income Statement, prospective, 142–143 community facilities and services, 98–105 indoor bowls, 16 community halls, 16. See also community property Infrastructure Strategy, 9, 13, 42–68 community outcomes, 12 integrated harbor management, 17 community property, 16, 101, 134–135 inter-generational equity, 23 consultation process, 12, 15 K Council Kamo plan change infrastructure, 15 committees, 6 Kamo Sports Charitable Trust, 15 fi e uildin L organisation chart, 6, 8 Langs Beach, 17 premises, 16 levels of service, 14, 23, 44, 60–68 Council Controlled Organisations, 38 libraries, 100, 132–133. see also community facilities and services Councillors, 6, 7 Limeburners Creek footbridge, 15 credit rating, 28 Local Government Funding Agency, 121 cycleways, 15, 16 n e m lan definiti n D M debt, 28–29, 37, 40 Matakohe Limestone Island, 17 disaster recovery, 48–49 Mayor, 4, 7 dog park, 16 mission statement, 2
199 N t field ee al a and e eati n Ngunguru cycleway, 15 in field mmunit im lu Northland Event Centre Trust, 38 Springs Flat Contractors Ltd, 38 Northland Regional Council, 10 stormwater disposal, 35, 42, 50, 53–54, 57, 62, 65, 67, 90–93, 130–131 t land e i nal andfill imited a tne i SummerSafe, 15 Northland Rugby Union, 17 support for rugby and hockey, 17 O support services, 116–119, 136–139 Oakura Recreation Ground, 16 T Old Harbour Board Building, 15, 17 Te Huinga, 10 Onerahi foreshore, 17 Te Karearea Strategic Partnership Forum, 6, 10 operational expenditure, 30 tertiary education hub, 17 Otuihau, - Whangarei Falls, 16 Theatre/expo/conference centre, 16 P tirohanga, 2 parks and recreation, 16, 17, 35, 43, 51, 56, 58, 64, 65, 67, 98–99, 130–133. see also community facilities and services transportation, 35, 74–77, 122–123. see also roading and footpaths Parua Bay School, 17 Tutukaka trailer park, 17 pensioner housing. see community property V planning and regulatory services, 110–115, 136–137 values statement, 2 population growth, 14, 35, 57 venues and events, 103, 134–135 Poroti Springs, 17 village planning, 16 price level adjustors, 181 vision statement, 2 public toilets, 16 W Q Waipu Great Barn, 16 Quarry Gardens Visitor Centre, 15 Waipu walkway and cycleway, 16 R walkways, 15, 16, 42 rates, 14, 16, 24–27, 36, 39, 45. see also funding impact statement wastewater disposal, 35, 42, 50, 53, 57, 59, 61, 65, 67, 86–89, 126–130, 175–176 referendum. see consultation process water supply, 35, 42, 49–50, 52–53, 57, 59, 60, 65, 66, 78–81, reserve funds, 28–29, 172 124–125, 176 Revenue and Financing Policy, 184 Whangaruru Coastal Community & Sports Association, 16 risk management, 36 Whangarei Art Museum Trust, 38 Riverside Drive, 17 Whangarei District Airport, 38, 120 roading and footpaths, 17, 42, 50, 55, 58, 59, 63, 65, 66, 176– Whangarei Falls, 16 177. see also transportation Whangarei Waste Ltd, 38 Ruakaka cemetery, 17 Whau Valley Parklands, 17 Ruakaka Recreation Centre, 17 Whau Valley Water Treatment Plant, 47–48, 59 rural transfer stations, 17 Y S Youth, 17 seal extensions, 17 security, 15, 134–135 sense of place, 16 service levels. see levels of service i nifi an e and n a ement li solid waste disposal, 35, 42, 51, 55–56, 58, 64, 67, 82–85, 124–125, 175 Sport Northland, 15
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